TCREUR_Public/081114.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, November 14, 2008, Vol. 9, No. 227

                            Headlines

A U S T R I A

BRAUN S. SOEHNE: Claims Registration Period Ends December 1
ERICH FEICHTINGER: Claims Registration Period Ends December 1
INLINGUA LANGUAGE: Claims Registration Period Ends November 25
SDG LLC: Claims Registration Period Ends November 25
VEIOVIS LLC: Claims Registration Period Ends December 1


B E L A R U S

BELARUSBANK: Fitch Affirms 'B-' Long-Term Issuer Default Rating
BPS-BANK: Fitch Affirms Long-Term Foreign Currency IDR at 'B-'


F I N L A N D

STORA ENSO: Weak Profitability Cues S&P to Cut Rating to 'BB+'


F R A N C E

* Moody's Says Market Turmoil Won't Affect French RLG Ratings


G E R M A N Y

BAU-FLEX GMBH: Claims Registration Period Ends November 27
COME STA: Claims Registration Period Ends November 25
HERCULES IMMOBILIEN: Claims Registration Period Ends Nov. 25
PROFILE HOTEL: Claims Registration Period Ends November 26
SCHEIBE-ALSBACHER BAUGESELLSCHAFT: Claims Period Ends Nov. 24

VV-BAU-SERVICE GMBH: Claims Registration Period Ends Nov. 26


I R E L A N D

HOLT FUNDING: S&P Slashes Rating on Class A Notes to 'B' From A+


I T A L Y

ALITALIA SPA: Gets EU Commission Go-Ahead to Sell Assets


K A Z A K H S T A N

AGUILA INTERNATIONAL: Creditors Must File Claims by December 24
BAGAD LLP: Creditors' Claims Deadline Slated for December 24
FUNDAMENT STROY+: Creditors' Claims Filing Period Ends Dec. 24
INTER ENERGO STROY: Creditors Must Register Claims by Dec. 24
KAZAKHTELECOM: Fitch Holds 'BB' Long-Term IDR; Outlook Negative

LOTT GROUP: Creditors' Claims Due on December 24
MONTAGE SERVICE-A: Creditors Must File Claims by December 24
REGIONALNY AVTOBUSNY: Claims Deadline Slated for December 24
RIDDER STROY: Creditors' Claims Filing Period Ends Dec. 24
SERVICE COMPLECT-R: Creditors Must Register Claims by Dec. 24


K Y R G Y Z S T A N

JYBEK OJSC: Claims Registration Period Ends on December 5
KARASUISKOYE PMK: Claims Registration Period Ends on December 5


L U X E M B O U R G

BREEZE 2: Fitch Changes Outlook on 'BB+' Rating to Negative
BREEZE 3: Fitch Changes Outlook on Two Notes to Negative


L A T V I A

PAREX BANKA: Fitch Cuts Long-Term Issuer Default Rating to 'BB'


P O L A N D

BRE BANK: Moody's Changes Outlook on 'D' BFSR to Stable
GETIN BANK: Moody's Changes Outlook on 'D' BFSR to Negative

* Moody's Reports Negative Outlook for Polish Banking System


R U S S I A

AVTO-AGREGAT OJSC: Creditors Must File Claims by January 7
BAGDARINSKAYA MINING: Court Names Temporary Insolvency Manager
BELVEDER CJSC: Creditor Must File Claims by December 7
BRYANSK REINFORCED: Kursk Bankruptcy Hearing Set January 14
ECONATSBANK: Loses Banking License

EVRO-KARTON CJSC: Creditor Must File Claims by December 7
INVEST-ENERGO-FINANCE LLC: Creditors Must File Claims by Dec. 7
LOUKHSKOE ELECTRIC: Creditors Must File Claims by January 7
MIRA BANK: Central Bank Revokes Banking License
OIL-PETROL LLC: Creditor Must File Claims by December 7

PIK GROUP: Fitch Junks Long-term Issuer Default Rating
SIBIR AIR: Under Bankruptcy Supervision Procedure
STROBIS LLC: Chelyabinskaya Bankruptcy Hearing Set January 12

* Fitch Changes Outlooks on 12 Russian Banks to Negative


S L O V E N I A

MESNA INDUSTRIJA: Gets Five Unbinding Offers


S P A I N

FONDO DE TITULIZACION: Moody's Puts 'C' Rating on Class D Notes
IM FTGENCAT: S&P Puts 'B' Preliminary Rating on Class C Notes
MADRID RMBS I: Moody's Cuts Rating on Class E Notes to B1
MADRID RMBS II: Moody's Cuts Class E Notes' Rating to B3
MADRID RMBS III: Moody's Cuts Rating on Class E Notes to B3

SOL MELIA: Moody's Cuts Ratings to Ba1; Gives Negative Outlook


S W I T Z E R L A N D

BINNIE & PARTNER: Creditors Must File Proofs of Claim by Nov. 27
GLOBE FINANZ-INVEST: Deadline to File Claims Set Nov. 27
JERHUB JSC: Creditors Have Until Nov. 28 to File Claims
MERCURA FINANZ-INVEST: Claims Filing Deadline is Nov. 27
MUELLER GOURMET: Creditors' Proofs of Claim Due by Nov. 28

PRO WATCH: Nov. 27 Set as Deadline to File Claims
RWWP HOLDING: Creditors Must File Proofs of Claim by Nov. 27
SALADIN INFORMATIK: Deadline to File Proofs of Claim Set Nov. 28


U K R A I N E

ARGAMAX-44 LLC: Creditors Must File Claims by November 23
CHERNOMORSKY SHIPYARD: Creditors Must File Claims by Nov. 23
DONBASS OJSC: Creditors Must File Claims by November 23
INTERPACK LLC: Creditors Must File Claims by November 23
KHARKOV ENERGYREPAIR: Creditors Must File Claims by Nov. 23

KRYZHOPOL CHEESE-MAKING: Creditors Must File Claims by Nov. 23
KUFA LLC: Creditors Must File Claims by November 23
MATEO LLC: Creditors Must File Claims by November 23
PANORAMA LLC: Creditors Must File Claims by November 23
UKREUROBUD LLC: Creditors Must File Claims by November 23


U N I T E D   K I N G D O M

ALUNNA TUBES: Goes Into Administration; 170 Jobs at Risk
B.I. REALISATIONS: Names Joint Liquidators from PwC
BOALLOY FASTRUCK: Taps Joint Liquidators from PwC
CABLE & WIRELESS: S&P Holds B Rating; Changes Outlook to Positive
CATHEDRAL COURT: Appoints Joint Administrators from Pwc

COLMIL LTD: Designates Joint Administrators from Grant Thornton
COMMSCOPE INC: Precision to Close Three Warwickshire Sites
EUROHOME UK: Fitch Downgrades Ratings on Eight Tranches
GATMORE INVESTMENT: S&P Downgrades Counterparty Rating to 'BB'
HOT SPRING: Brings in Administrators from Vantis

LUCITE INT'L: Mitsubishi Rayon to Acquire Business for US$1.6BB
LUCITE INT'L: S&P Keeps 'B' Rating; Revises Watch to Positive
MGT REALISATIONS: Appoints Joint Liquidators from PwC
MICAP PLC: Brings in Joint Administrators from PKF
MORTGAGES PLC: Fitch Lowers Ratings on Two Tranches

RICHARD LLOYD: Taps Joint Administrators from Baker Tilly
SOUTHEAST LTD: Calls in Joint Administrators from BDO Stoy
T & S ACCESSORIES: Taps Joint Administrators from Tenon

* PPF Took Five Insolvent UK Pension Schemes in October 2008
* S&P Reports Loan Breaches Double Among Europe's High-Yield Firms
* Fitch Reports European Corporates' Demands Upon Banks' Capital
* EU Commission Adopts Proposal to Regulate Credit Rating Agencies
* Fitch Comments on European Commission Credit Rating Proposals

* S&P Says Bursting Maturing Debt Pipeline Raises Doubt in Europe
* Moody's Reports European Speculative Default Rate to Reach 9.7%
* Moody's Reports Stable Outlook for EMEA Electric & Gas Utilities
* Moody's Says Global Speculative Default Rate to Reach 10.4%
* S&P Says Speculative-Grade Credit Spread Tightens to 1,379 BPS

* S&P Says Market Perception of Creditworthiness Affects Insurers
* S&P Says IG Members' Negative Actions Focus on Fin'l Flexibility

* BOOK REVIEW: Crafting Solutions for Troubled Businesses:


                         *********


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A U S T R I A
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BRAUN S. SOEHNE: Claims Registration Period Ends December 1
-----------------------------------------------------------
Creditors owed money by LLC I. Braun S. Soehne & Co. Kg.
(FN 52951w) have until Dec. 1, 2008, to file written proofs of
claim to the court-appointed estate administrator:

         Dr. Christian Rumplmayr
         Stadtplatz 36
         4840 Voecklabruck
         Austria
         Tel: 07672/75931
         Fax: 07672/75953
         E-mail: mail@rumplmayr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:20 a.m. on Dec. 11, 2008, for the
examination of claims at:

         Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Voecklabruck, Austria, the Debtor declared
bankruptcy on Oct. 13, 2008, (Bankr. Case No. 20 S 130/08f).


ERICH FEICHTINGER: Claims Registration Period Ends December 1
-------------------------------------------------------------
Creditors owed money by KEG Erich Feichtinger (FN 144628p) have
until Dec. 1, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Berthold Martin Breitwieser
         Johann Strauss Str. 1
         4701 Bad Schallerbach
         Austria
         Tel: 07249/48286-0
         Fax: 07249/48286-4
         E-mail: kanzlei@ra-breitwieser.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:40 a.m. on  Dec. 11, 2008, for the
examination of claims at:

         Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Hinzenbach, Austria, the Debtor declared
bankruptcy on Oct. 9, 2008, (Bankr. Case No. 20 S 128/08m).


INLINGUA LANGUAGE: Claims Registration Period Ends November 25
--------------------------------------------------------------
Creditors owed money by LLC inlingua Language Competence Center
(FN 267735d) have until Nov. 25, 2008, to file written proofs of
claim to the court-appointed estate administrator:

         Walter Dorn
         Bahnhofstrasse 16
         9500 Villach
         Germany
         Tel: 04242/26 7 48
         Fax: 04242/26 7 48-48
         E-mail: md@advocates.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Dec. 2, 2008, for the
examination of claims at:

         Land Court of Klagenfurt
         Room 225
         Klagenfurt
         Austria

Headquartered in Villach, Austria, the Debtor declared bankruptcy
on Oct. 23, 2008, (Bankr. Case No. 40 S 64/08i).


SDG LLC: Claims Registration Period Ends November 25
----------------------------------------------------
Creditors owed money by LLC SDG (FN 183428y) have until Nov. 25,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Franz Mueller
         Georg-Ruck-Strasse 9
         3470 Kirchberg/Wagram
         Germany
         Tel: 02279/2227
         Fax: 02279/2227-9
         E-mail: office@derguterat.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:50 a.m. on Dec. 16, 2008, for the
examination of claims at:

         Land Court of St. Poelten
         Room 216
         St. Poelten
         Austria

Headquartered in Altenberg, Austria, the Debtor declared
bankruptcy on ct. 22, 2008, (Bankr. Case No. 14 S 167/08m).


VEIOVIS LLC: Claims Registration Period Ends December 1
-------------------------------------------------------
Creditors owed money by LLC Veiovis (FN 298435a 8055) have until
Dec. 1, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Hubert Koellensperger
         Schubertstrasse 20
         4600 Wels
         Austria
         Tel: 07242/44546-0
         Fax: 07242/42849
         E-mail: office@wels-law.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on Dec. 11, 2008, for the
examination of claims at:

         Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Wels, Austria, the Debtor declared bankruptcy on
Oct. 9, 2008, (Bankr. Case No. 20 S 127/08i).


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B E L A R U S
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BELARUSBANK: Fitch Affirms 'B-' Long-Term Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings affirmed Belarusbank's Long-term foreign currency
Issuer Default rating at 'B-'.

The rating action reflects Fitch's current opinion that the impact
of international financial market turmoil and a likely global
recession on Belarus's public finances, economy and banking sector
will probably be within the tolerance level of the 'B-' ratings
currently assigned to the country's state-owned banks.  Fitch also
notes that external events have as yet had a limited negative
influence on BBK's performance and financial position.

BBK's stand-alone credit profile benefits from its dominant
position in key sectors of the domestic market and the stability
of its customer base.  Improved internal capital generation since
2006 on the back of a reduced tax burden and adequate asset
quality to date (loans overdue by 90 days at end-H108: 1.4%) are
also viewed as a positive for the bank's stand-alone financial
position.  Customer funding is mainly composed of retail deposits
(end-H108: 52%) and government funding (23%), while foreign
funding generally represents a small portion of the bank's
liabilities, limiting refinancing risk.

BBK is actively engaged in state lending programs, in particular
in the retail sector, with some of them bearing concessional in
terest rates.  BBK's corporate loan book is widely represented by
the leading domestic state-owned enterprises from the manufactur
ing industry.  Although concentrations are high, most of the large
companies are state-owned and may be able to receive support from
the government, in case of need.  Nevertheless, Fitch notes that
the challenging operating environment, low loan impairment reserve
coverage, weak cost efficiency and only moderate capitalization
are constraints for BBK's stand-alone credit profile.

Ongoing global deleveraging has highlighted the Belarusian
economy's weak external liquidity and high dollarization.  Fitch
notes that the Belarusian authorities have already reached an
agreement with Russia to receive a USD2bn long-term loan and
opened negotiations with the IMF for a support package.  The
agreement with Russia and potential support from the IMF could
bolster the sovereign's financial position, and therefore its
ability to provide support to the country's state-owned banks, but
the ability to provide such support could be constrained by
further negative shocks.

In Fitch's view, BBK currently merits a 'B-' Long-term IDR based
on its stand-alone financial strength.  Furthermore, the rating is
underpinned by the bank's Support Rating Floor.  The latter
reflects the Belarusian authorities' likely very high propensity
to support state-owned banks, but also constraints on the
sovereign's ability to provide such support, in particular in view
of the considerable size of the banks and their foreign currency
obligations relative to the sovereign's foreign currency reserves.
BBK's ratings could come under downward pressure if Belarusian
public and/or external finances deteriorate significantly and the
operating environment worsens, which could result in both a weaker
stand-alone profile of the bank and the reduced ability of the
sovereign to provide support.

BBK is the largest universal bank in Belarus in terms of assets,
holding a 41% market share at end-H108.  BBK has a strong presence
in both retail and corporate segments: at end-H108 the bank had a
59% market share in retail deposits, 70% of the retail lending
market, and 32% of corporate lending.  A total 99.8% of the bank's
equity is held by the state.

Rating actions:

  -- Long-term foreign currency IDR: affirmed at 'B-' (B minus);
     Outlook Stable

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

  -- Support rating: affirmed at '5'

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

  -- Support Rating Floor: affirmed at 'B-' (B minus)


BPS-BANK: Fitch Affirms Long-Term Foreign Currency IDR at 'B-'
--------------------------------------------------------------
Fitch Ratings has affirmed Belarus-based BPS-Bank's (BPS)
Long-term foreign currency Issuer Default rating (IDR) at 'B-'
(B minus).

The rating action reflects Fitch's current opinion that the impact
of international financial market turmoil and a likely global
recession on Belarus's public finances, economy and banking sector
is likely will probably be within the tolerance level of the
'B-'(B minus) ratings currently assigned to the country's
state-owned banks.  Fitch also notes that external events have as
yet had a limited negative influence on BPS's performance and
financial position.

BPS's performance has strengthened since 2006, supported by
improving cost-efficiency, strong fee generation and a reduced tax
burden.  In H108, BPS's operating ROAA (3.4%) and ROAE (42.3%)
were the highest among the country's state-owned banks.  The level
of non-performing loans (defined as more than 90-days overdue) was
at a low 0.2% at end-H108, with comfortable loan impairment
coverage of 18x.  BPS's creditworthiness is also supported by its
moderate reliance on foreign funding and limited refinancing risk.
However, the challenging operating environment, high loan book
concentrations, the short-term corporate funding base and modest
capitalization are constraints for BPS's stand-alone credit
profile.

Ongoing global deleveraging has highlighted the Belarusian
economy's weak external liquidity and high dollarization.  Fitch
notes that the Belarusian authorities have already reached an
agreement with Russia to receive a US$2 billion long-term loan and
opened negotiations with the IMF for a support package.  The
agreement with Russia and potential support from the IMF could
bolster the sovereign's financial position, and therefore its
ability to provide support to the country's state-owned banks, but
the ability to provide such support could be constrained by
further negative shocks.

In Fitch's view, BPS currently merits a 'B-' Long-term IDR based
on its stand-alone financial strength. Furthermore, the rating is
underpinned by the bank's Support Rating Floor.  The latter
reflects the Belarusian authorities' likely very high propensity
to support state-owned banks, but also constraints on the
sovereign's ability to provide such support, in particular in view
of the considerable size of the banks and their foreign currency
obligations relative to the sovereign's foreign currency reserves.
BPS's ratings could come under downward pressure if Belarusian
public and/or external finances deteriorate significantly and the
operating environment worsens, which could result in both a weaker
stand-alone profile of the bank and the reduced ability of the
sovereign to provide support.

BPS is the fourth largest bank in Belarus in terms of assets, with
market shares in system assets and retail deposits of 8% and 9%,
respectively, at end-H108.  BPS is 86.3% owned by the State
Property Committee of the Republic of Belarus, with the remaining
5.3% held by state-owned enterprises (SOEs) and 8.4% broadly
dispersed among individuals and private companies.

Rating actions:

   -- Long-term foreign currency IDR: affirmed at 'B-' (B minus);
      Outlook Stable

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

   -- Support rating: affirmed at '5'

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

   -- Support Rating Floor: affirmed at 'B-' (B minus)


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STORA ENSO: Weak Profitability Cues S&P to Cut Rating to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term issuer credit ratings on Finland-based forest product
company Stora Enso Oyj to 'BB+' from 'BBB-' and its short-term
issuer credit ratings to 'B' from 'A-3', reflecting weak
profitability and cash generation.  The outlook is stable.  At the
same time, the Nordic national scale short-term rating was lowered
to K-4 from K-3.

The ratings on Stora Enso's unsecured debt were also lowered to
'BB+' from 'BBB-', bringing them into line with the corporate
credit rating.  At the same time, S&P assigned a recovery rating
of '3' to US$300 million 7.25% notes due 2036, US$507.9 million
6.404% notes due 2016, US$468.8 million 7.375% notes due 2011, and
outstanding unsecured notes under SEK10 billion and EUR4 billion
senior unsecured medium-term note programs.  The recovery rating
indicates S&P's expectation of meaningful (50%-70%) recovery in
the event of payment default.  Although the nominal recovery
percentage is higher than the rating threshold, the recovery
rating is capped according to S&P's criteria for unsecured debt of
issuers rated in the 'BB' category.

"Stora Enso's profitability and cash flow generation have weakened
considerably in 2008.  Key financial ratios have become weak for
the previous 'BBB-' rating," said Standard & Poor's credit analyst
Andreas Zsiga.

The company's performance could improve given prospects for price
increases as well as falling cost pressure and foreign exchange
headwind.  However, such improvements are uncertain given the
weakening economic outlook.  Importantly, these improvements are
coming from very low levels.  Consequently, S&P has revised S&P's
view on Stora Enso's business and financial risk profiles to
reflect weaker and more volatile profitability and cash
generation.

The stable outlook reflects S&P's assumption that Stora Enso's
financial performance will improve somewhat from its current weak
level.


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* Moody's Says Market Turmoil Won't Affect French RLG Ratings
-------------------------------------------------------------
French Regional and Local Governments, which already face higher
interest payments, will now also have to contend with banks
restricting their financing to the sector as a result of worsening
market conditions.  Thanks notably to the sound financial and debt
indicators posted by the RLGs, as Moody's well as France's recent
initiative to facilitate access to credit, there is limited risk
of a sudden generalized deterioration of the RLGs' finances in the
context of the current market turmoil, says Moody's Investors
Service.  At this stage, the rating agency does not expect any
significant implications for its 10 French RLG ratings.

"Most French RLGs are entirely dependent on bank financing, which
makes them sensitive to the banks' refinancing terms," explains
Sebastien Hay, Vice President, Senior Credit Officer in Moody's
International Public Finance group.  The current legal framework
discourages large cash holdings as RLGs are required to limit
their cash in non-interest-bearing accounts with the state
treasury.  "Thus, Moody's believes the restriction of credit, if
it Moody's were to last, could pose serious challenges to local
governments, particularly those that are of modest size and have
limited budgetary room for maneuver," cautions Mr. Hay.

To help overcome this latest challenge, France recently asked its
financial arm ("Caisse des Depots") to provide EUR2.5 billion in
loans to French RLGs, with an additional EUR2.5 billion provided
by other banks.  "Moody's views this initiative favorably as the
cash will provide much-needed relief, representing approximately a
quarter of the RLGs' borrowing needs in 2008," says Mr. Hay.

Going forward, French RLGs will likely face lower revenue growth
due to the slow evolution in state grants and a steady decline in
proceeds from property transactions.  "However, while these
factors will pose constraints on the RLGs in 2009, Moody's
believes that the overall financial and debt indicators, currently
at sound levels, provide the RLGs with some room for maneuver and
help them navigate a challenging economic environment, as Moody's
ll as enable them to maintain their position against their
international peers in the same rating category," says Mr. Hay.

The French RLG system encompasses more than 39,000 entities.
Moody's currently rates 10 French RLGs: City of Paris
(Aaa/stable); Ile-de-France region (Aaa/P-1/stable); Rhone-Alpes
region (Aaa/P-1/stable); City of Villeurbanne (Aa1/stable);
Departement of La Manche (Aa1/stable); City of Lyon (Aa2/P-
1/stable); City of Saint Mande (Aa2/stable); Region of Champagne-
Ardenne (Aa2/stable); Inter-municipality of Cergy-Pontoise
(Aa3/stable); and City of Clichy-sous-Bois (A1/stable).


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BAU-FLEX GMBH: Claims Registration Period Ends November 27
----------------------------------------------------------
Creditors of Aeonos Marketing & Product Services GmbH & Co. KG.
have until Nov. 27, 2008, to register their claims with court-
appointed insolvency manager Manfred Vellmer.

Creditors and other interested parties are encouraged to attend
the meeting at 9:18 a.m. on Dec. 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 Muenster
         Meeting Hall 112 B
         Gerichtsstr. 2-6
         48149 Muenster
         Germany

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

The insolvency manager can be reached at:

         Manfred Vellmer
         Adalbertstr. 8
         48565 Steinfurt
         Germany
         Tel: 02552/638710
         Fax: +4925526387111

The District Court of Muenster opened bankruptcy proceedings
against BAU-FLEX GmbH on Sept. 22, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         BAU-FLEX GmbH
         Nevinghoff 16
         48147 Muenster
         Germany

         Attn: Mark Franciscus Koppers, Manager
         Conwenbergstraat 62
         NL =96 6535 Nymegen
         Germany


COME STA: Claims Registration Period Ends November 25
-----------------------------------------------------
Creditors of Come Sta GmbH have until Nov. 25, 2008, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Jan. 7, 2009, 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 Dresden
         Hall D132
         Olbrichtplatz 1
         01099 Dresden
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Joerg Spies
         Glashuetter Strasse 104
         01277 Dresden
         Germany
         Web site: www.pkl.com

The District Court of Dresden opened bankruptcy proceedings
against the company on Oct. 17, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Come Sta GmbH
         Attn: Karolin Reitzi-Santen, Manager
         Neumarkt 9
         01067 Dresden
         Germany


HERCULES IMMOBILIEN: Claims Registration Period Ends Nov. 25
-------------------------------------------------------------
Creditors of Hercules Immobilien GmbH have until Nov. 25, 2008, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.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 Memmingen
         Meeting Hall 115
         Buxacher Strasse 6
         Memmingen
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Dr. Christoph Herbst
         Franz-Joseph-Str. 9
         80801 Muenchen
         Germany
         Tel. 089/2878810
         Fax: 089/287881-29

The District Court of Memmingen opened bankruptcy proceedings
against the company on Oct. 17, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Hercules Immobilien GmbH
         Attn: Wolfgang Hammerschmidt, Manager
         Hauptstr. 26
         87757 Kirchheim
         Germany


PROFILE HOTEL: Claims Registration Period Ends November 26
----------------------------------------------------------
Creditors of Profile Hotel Systeme GmbH have until Nov. 26, 2008,
to register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:15 a.m. on Dec. 15, 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

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Torsten Gutmann
         Lueders Partnerschaftsgesellschaft
         Zum Blauen See 5
         31275 Lehrte
         Germany
         Tel: 05132-8268-38
         Fax: 05132/8268-96

The District Court of Hildesheim opened bankruptcy proceedings
against the company on Oct. 8, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Profile Hotel Systeme GmbH
         Marktstr. 40
         31162 Bad Salzdetfurth
         Germany

         Attn: Axel Backwinkel, Manager
         Karl-Spitzweg-Str. 2
         31162 Bad Salzdetfurth
         Germany


SCHEIBE-ALSBACHER BAUGESELLSCHAFT: Claims Period Ends Nov. 24
-------------------------------------------------------------
Creditors of Scheibe-Alsbacher Baugesellschaft mbH have until
Nov. 24, 2008, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 1:30 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 Essen
         Meeting Hall 293
         Second Floor
         Zweigertstr. 52
         45130 Essen
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Henning Bungart
         Zweigertstr. 43
         45130 Essen
         Germany

The District Court of Essen opened bankruptcy proceedings against
the company on Oct. 14, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Scheibe-Alsbacher Baugesellschaft mbH
         Kampenstrasse 13
         45147 Essen
         Germany

         Attn: Falk Pommer, Manager
         Hauptstrasse 76 e
         98749 Scheibe-Alsbach
         Germany


VV-BAU-SERVICE GMBH: Claims Registration Period Ends Nov. 26
------------------------------------------------------------
Creditors of vv-bau-service GmbH have until Nov. 26, 2008, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Jan. 7, 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 Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Bettina Schmudde
         Koenigstrasse 1
         01097 Dresden
         Germany
         Web site: www.whitecaseinso.de

The District Court of Dresden opened bankruptcy proceedings
against the company on Oct. 14, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         vv-bau-service GmbH
         Woehlerstr. 5
         01139 Dresden
         Germany

         Attn: Matthias Friedrich, Manager
         Geboren 1980
         Adam-Kuckhoff-Str. 27
         06108 Halle
         Germany


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I R E L A N D
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HOLT FUNDING: S&P Slashes Rating on Class A Notes to 'B' From A+
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B' from 'A+' and
kept on CreditWatch negative its credit rating on the class A
notes issued by Holt Funding 2008-1 Ltd.

This rating action primarily reflects S&P's concerns that the
transaction is now exposed to currency risks that were not
envisaged in S&P's original analysis.  In October, the Icelandic
banking supervisor placed into receivership the transaction's
currency swap counterparty, Glitnir Bank.

The transaction's issuance is denominated in euros, but S&P
understands that approximately 62.8% of the collateral pool is
denominated in other currencies, including Icelandic krona.  As a
result, Holt Funding now has unhedged currency exposure.

S&P is also concerned by the transaction's exposure to Icelandic
obligors, given such obligors' potentially reduced ability to meet
payment obligations following restrictions imposed on foreign
currency trading by the Icelandic government.  Based on
information provided by the collateral administrator, S&P
understands that Icelandic obligors account for 37.6% of the
current portfolio.

S&P is also concerned regarding the ability of the transaction's
cash flows to fund future interest payments on the rated notes.
Based on information provided by the collateral administrator, S&P
understands that principal proceeds will be used to part-fund
interest payments on the class A notes at the November 15 interest
payment date.

S&P placed the notes on CreditWatch negative on Oct. 7 following
S&P's Sept. 29 rating action on Glitnir.  Glitnir was subject to
further rating actions on Oct. 9, which resulted in S&P lowering
its rating to 'D'. Glitnir acted as swap counterparty and
liquidation agent for this transaction.

Under S&P's counterparty and supporting party criteria, S&P no
longer consider Glitnir to be an eligible counterparty for the
transaction.  Under the terms of the documentation, the
transaction parties agreed to undertake to either find a suitably
rated counterparty to replace Glitnir, or find a co-obligor or
guarantor.  The timeframe for the replacement is 60 calendar days
and this expires on Nov. 28.

S&P understands that the transaction parties are currently seeking
a replacement swap counterparty.

Holt Funding 2008-1 closed on May. 12, 2008, and is a static cash
flow transaction collateralized by a pool of corporate loans.


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I T A L Y
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ALITALIA SPA: Gets EU Commission Go-Ahead to Sell Assets
--------------------------------------------------------
The European Commission, on Wednesday, November 12, concluded that
the sale of Alitalia's assets does not constitute State aid
provided that the Italian authorities fully comply with the
undertakings they have given.  The sale is planned in the context
of the special administration procedure which will lead to the
winding-up of the Italian airline.  The Commission has therefore
given Italy the go-ahead to start selling the assets.  The
decision follows the Commission's earlier decision to close the
official State aid investigation procedure it started on June 11,
2008 to look into a EUR300 million loan from Italy to Alitalia.
The Commission's conclusion was that the loan was unlawful aid and
incompatible with the common market.

Mr Tajani, Vice-President of the Commission responsible for
transport, said: "Today's decisions will help to clarify the
situation of Italia, which is experiencing serious difficulties
and has been placed under special administration.  With the
special administrator, Mr. Fantozzi, due to start selling the
airline's assets prior to its liquidation, the Commission is
monitoring this procedure while putting in place guarantees that
transactions will be made at market prices.  This is the purpose
of appointing a monitoring trustee.  With these decisions, I am
convinced that a new, more dynamic air transport market will be
able to develop in Italy.  This process will lead to the emergence
of a private airline, smaller in size but more efficient.  In
previous cases, even very recent ones, involving airlines facing
similar difficulties, I have seen that airlines can not only
recover and flourish but also compete successfully in the
interests of passengers and of the aviation industry, which is
essential for competition in Europe."  By finding that the EUR300
million bridging loan is unlawful and requesting that it be paid
back, the Commission is ensuring the proper application of State
aid rules.

Alitalia's finances, which have been very difficult in the last
few years, were crippled following the failure of various
industrial initiatives and attempts to revive the company.  This
situation resulted in the suspension of payments and the start of
the special administration procedure on August 29, 2008.

The Commission has concluded that the sale of Alitalia's assets is
not State aid if the sale takes place on market terms -=96 provided
that the Italian authorities live up to their commitments.  The
Commission considers that the procedure as notified by Italy is
guaranteed to maximize the value of assets sold which is in the
creditors' interest.

The procedure for sale of the assets provides for several
different levels of monitoring which will ensure that the sale is
on market terms.  It will nevertheless be supervised by a
monitoring trustee who will ensure compliance with the decision
and the commitments given.  The monitoring trustee will be
appointed very quickly (in two days) and will in particular ensure
that assets are disposed of on market terms.  The monitoring
trustee will be required to compile an exhaustive report on this
point in the two weeks following appointment.  If the Commission
is dissatisfied with any aspect of the procedure, it can still
take the initiative and re-open the case.

The solution thus devised is similar to that which ended with the
winding-up of Sabena and more recently Olympic Airlines.

Under the above procedure, the special administrator has received
more than 60 expressions of interest, 36 of which have been
confirmed and have been received from national as well as other EU
and international operators.  Compagnia Aerea Italiana (CAI) has
made a bigger bid than others.  The Commission notes that there is
no continuity between Alitalia and CAI, Furthermore, CIA will
conduct its passenger air transport activity on the basis of its
own business plan, which has been drawn up with specific
operational targets in terms of fleet management, personnel and
flight times and on market terms.
The Commission also notes that CAI will carry 69% of the air
passengers for which Alitalia currently accounts.

Lastly, after conducting a detailed investigation into the
conditions attached to a EUR300 million loan awarded by the
Italian authorities to Alitalia on April 23, 2008, the Commission
concluded that the loan was unlawful State aid and incompatible
with the common market.  Alitalia had already received rescue and
restructuring aid in the past.  Italy therefore has to take the
necessary action to recover that State aid from Alitalia.

                          About Alitalia

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

As reported in the TCR-Europe on November 7, 2008, Alitalia-Linee
Aeree Italiane, S.p.A. filed for Chapter 15 protection with the
U.S. Bankruptcy Court in the Southern District of New York.
Italy's national airline experienced financial difficulties for a
number of years caused, in large measure, by a combination of
competition from low-cost air carriers, poor management and
onerous union obligations, according to papers filed with the
court.

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

In the petition filed October 29, 2008, Prof. Augusto Fantozzi,
the appointed administrator, said the airline's financial
difficulties have been and exacerbated by spiraling fuel prices.

                 Italian Bankruptcy Filing

On Aug. 29, 2008, Alitalia declared insolvency and filed for
commencement of extraordinary administration procedure at the
Tribunal of Rome.  Italian Prime Minister Silvio Berlusconi
appointed Mr. Fantozzi as extraordinary commissioner.
Under the Bankruptcy Bill, the Administrator has supplanted the
directors and other management of Alitalia.


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K A Z A K H S T A N
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AGUILA INTERNATIONAL: Creditors Must File Claims by December 24
---------------------------------------------------------------
Branch of LLP Aguila International Inc. has opted for liquidation.
Creditors have until Dec. 24, 2008, to submit written proofs of
claims to:

         LLP Aguila International Inc.
         Ilyisky Tract Str. 17
         Turksibsky
         Almaty
         Kazakhstan


BAGAD LLP: Creditors' Claims Deadline Slated for December 24
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Bagad insolvent on Oct. 1, 2008.

Creditors have until Dec. 24, 2008, to submit written proofs of
claims to:

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


FUNDAMENT STROY+: Creditors' Claims Filing Period Ends Dec. 24
--------------------------------------------------------------
LLP Construction Company Fundament Stroy+ has opted for
liquidation.  Creditors have until Dec. 24, 2008, to submit
written proofs of claims to:

         LLP Construction Company
         Fundament Stroy+
         Turgenev Str. 100-61
         Aktobe
         Aktube
         Kazakhstan


INTER ENERGO STROY: Creditors Must Register Claims by Dec. 24
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Construction Company Inter Energo Stroy insolvent on
Oct. 13, 2008.

Creditors have until Dec. 24, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional Economic
         Court of Karaganda
         Jambyl Str. 9
         Karaganda
         Kazakhstan


KAZAKHTELECOM: Fitch Holds 'BB' Long-Term IDR; Outlook Negative
--------------------------------------------------------------
Fitch Ratings changed JSC Kazakhtelecom's Outlook to Negative from
Stable.  Its foreign currency Long-term Issuer Default rating is
affirmed at 'BB' and the Short-term foreign currency IDR at 'B'.
Fitch has also assigned the company a National Long-term rating of
'A(kaz)' with a Negative Outlook.

The change of Outlook reflects Fitch's concerns over continued
significant negative free-cash-flow generation.  This is driven by
Kaztel mobile subsidiary's, MTS, rapid rate of cash utilization
and Kaztel's high capital expenditure relative to its EBITDA
generation.  Although Kaztel has undertaken measures to cut
capital expenditure, Fitch believes they are not significant
enough to reverse negative free-cash-flow generation over the
medium term.

There continues to be uncertainty regarding the timeframe for MTS
to reach EBITDA breakeven.  Fitch appreciates the cost control and
capex reduction measures undertaken by Kaztel, but takes the view
that the risk of the subsidiary under-performing has risen due to
increased competition in the mobile market and a worsening
macroeconomic environment.  In Fitch's view the subsidiary will
have a significant negative impact on Kaztel's performance metrics
such as leverage, free cash-flow and EBITDA.

Fitch expects leverage (net debt/EBITDA including associate
dividends) to increase to 1.4x-1.5x in 2008 from 1.1x at end-2007.
In 2009-2010 there is a risk of further leverage growth to above
1.9x, which would be the maximum for the current rating level.

Kaztel's overall business is fairly robust and shows resilience in
the economic downturn evidenced in Kazakhstan (rated 'BBB-' (BBB
minus), Outlook Negative) since 2007.  The incumbent's LTM to Q308
results show healthy EBITDA performance, with a consolidated
EBITDA margin of 40.1% and a consolidated operating EBITDA margin
of 33%.  However, additional regulatory tariff reduction measures
in the fixed-line voice segment and MTS's under-performance are
likely to put pressure on Kaztel's margins.

Kaztel's available liquidity sources are adequate to meet existing
short-term maturities in 2008-2009.  However, the incumbent faces
a major refinancing risk in July 2010 when its largest bank debt
facility of US$350 million matures.  In Fitch's view, given
existing banking sector instability in Kazakhstan, Kaztel's rating
can be sustained if the company takes refinancing measures in ad
vance, i.e. in 2009.  In the agency's opinion the October 2008
merger of Kaztel's parent, SAMRUK, and Kazyna (both are
state-owned holding companies) followed by a capital injection
from the state of USD10bn to support the economy may benefit
Kaztel as well.

Kaztel is a major fixed-line operator in Kazakhstan with dominant
market shares in fixed-line voice and broadband segments.  The
state holds an indirect 51% controlling interest through National
Welfare Fund Samruk-Kazyna.


LOTT GROUP: Creditors' Claims Due on December 24
------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Lott Group insolvent on Sept. 22, 2008.

Creditors have until Dec. 24, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Room 319
         Tole bi Str. 295
         Almaty
         Kazakhstan
         Tel: 8 (7272) 56-81-63
              8 (7272) 27-31-15


MONTAGE SERVICE-A: Creditors Must File Claims by December 24
------------------------------------------------------------
LLP UG Montage Service-A has opted for liquidation.  Creditors
have until South Kazakhstan region, Dec. 24, 2008, to submit
written proofs of claims to:

         LLP UG Montage Service-A
         Kazybek bi Str. 49/41
         Shymkent
         Kazakhstan


REGIONALNY AVTOBUSNY: Claims Deadline Slated for December 24
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
region has declared LLP Regionalny Avtobusny Park po Obslujivaniyu
Naseleniya (Regional Bus Park on Citizens Service) insolvent.

Creditors have until Dec. 24, 2008, to submit written proofs of
claims to:

         LLP Regionalny Avtobusny Park po
         Obslujivaniyu Naseleniya
         (Regional Bus Park on Citizens Service)
         Seifullin Str. 37
         Uralsk
         West Kazakhstan
         Kazakhstan


RIDDER STROY: Creditors' Claims Filing Period Ends Dec. 24
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Ridder Stroy Service insolvent on Oct. 2, 2008.

Creditors have until Dec. 24, 2008, to submit written proofs of
claims to:

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


SERVICE COMPLECT-R: Creditors Must Register Claims by Dec. 24
-------------------------------------------------------------
LLP Construction Company Stroy Service COmplect-R has opted from
liquidation.  Creditors have until Dec. 24, 2008, to submit
written proofs of claims to:

         LLP Construction Company
         Stroy Service COmplect-R
         Kazybek bi Str. 49/41
         Shymkent
         South Kazakhstan
         Kazakhstan


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K Y R G Y Z S T A N
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JYBEK OJSC: Claims Registration Period Ends on December 5
---------------------------------------------------------
OJSC Jybek has declared insolvency. Creditors have until
Dec. 5, 2008, to submit written proofs of claims to:

         OJSC Jybek
         Mendeleyev Str. 153b
         Bishkek
         Kyrgyzstan


KARASUISKOYE PMK: Claims Registration Period Ends on December 5
---------------------------------------------------------------
Branch of JSC Osh Stroy Karasuiskoye PMK has declared insolvency.
Creditors have until Dec. 5, 2008, to submit written proofs of
claims to:

         JSC Osh Stroy Karasuiskoye PMK
         Lenin Str. 316
         Osh
         Kyrgyzstan
         Tel: (+996 3222) 5-57-22


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L U X E M B O U R G
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BREEZE 2: Fitch Changes Outlook on 'BB+' Rating to Negative
-----------------------------------------------------------
Fitch Ratings revised the Outlook on CRC Breeze Finance S.A.'s
(Breeze 2) class A and B notes to Negative from Stable.  Their
ratings are affirmed at 'BBB' and 'BB+' respectively.

  -- EUR283.2 million class A (XS0253493349): affirmed at 'BBB';
     Outlook revised to Negative from Stable

  -- EUR43.4 million class B (XS0253496441): affirmed at 'BB+';
     Outlook revised to Negative from Stable

Breeze 2 is a Luxembourg special-purpose vehicle which issued
three classes of notes on May 8 2006 for an aggregate amount of
EUR470 million to finance the acquisition and the remaining
construction costs of a portfolio of wind farms in Germany and
France as well as to fund various reserve accounts.  The notes
will be repaid from the cash flows generated by the sale of the
energy produced by the wind farms.

The Negative Outlook reflects Fitch's concerns about the potential
negative impact on Breeze 2's cost and revenue profile of a
technical issue causing cracks in the foundations of a number of
Vestas V80 and V90 wind turbines.  The issue is common to a large
number of wind farms in Germany and its complexity makes it
extremely difficult to allocate responsibility or to predict
whether a turbine will be impacted in the future.  A technical as
sessment performed on the Breeze 2 portfolio identified that seven
foundations (out of the 60 constructed based on Vestas design) may
need improvement work within the next three years, although this
number could increase.

Vestas recently commenced a five year semi-annual monitoring
program on the 60 potentially affected turbines.  Vestas has
offered to wind farm owners to take corrective measures to
reinstate foundations to their original condition, if needed.
Fitch takes a positive view of Vestas' engagement, but the
uncertainties surrounding the extent of the problem, the possible
solutions and the reliance of insurance coverage on such
foundations, mean that the ratings on the notes may come under
pressure.

As of closing in May 2006, 17 wind farms, representing
approximately 58% of planned capacity, were under construction.
Several projects suffered commissioning delays mainly due to late
turbine deliveries.  The lost revenues were covered by the
liquidated damages paid to the projects as compensation for such
delays.  Following the commissioning of the 5.6 MW French wind
farm Roudouallec in September 2008, the entire portfolio is now in
full operation.

The wind farm portfolio has performed within expectations in terms
of average technical availability, at approximately 97%.  Energy
production during 2007 was approximately 3.5% below Fitch's base
case, which is based on a P90 output forecast with portfolio
effect.  The energy output during the first nine months of 2008
was some 6.8% below the agency's base case.  Although annual
output may substantially differ from semi-annual results, Fitch
has been informed that 2008 has so far been a below-average wind
year and that full year energy production is expected to remain
below
expectations.  Available data, after correcting energy output for
actual wind conditions, suggest that the original energy
production forecast may have overestimated the long-term average
output of the wind farm portfolio.  In Fitch's view, however, the
limited length of available production data for a number of wind
farms in the portfolio does not yet enable to draw reasonably
certain conclusions on this aspect.

Breeze 2 began amortizing the notes in May 2007, after an initial
one year interest-only period.  Despite the slightly lower than
expected energy production and higher operating costs, debt
service coverage ratios at 1.66x and 1.3x for the class A and B
bonds respectively were broadly in line with Fitch's base case
expectations.  This was due to the liquidated damages paid for the
construction delays and by additional, mainly interest, income due
to delayed investment payments.  As the transaction ages and
additional performance data become available Fitch expects to
review its assumptions regarding, in particular, long-term average
energy production and operating expenses.

With respect to the German corporate tax reform in 2008 Fitch has
been informed by the issuer's fiscal adviser that changes to the
tax law do not result in a material deviation in the structure's
tax burden until 2023.  Even after 2023, the increase in tax
payments, in Fitch's view, will not cause a material change in the
transaction's risk profile.


BREEZE 3: Fitch Changes Outlook on Two Notes to Negative
--------------------------------------------------------
Fitch Ratings revised its rating Outlook on Breeze Finance S.A.'s
(Breeze 3) class B notes to Negative from Stable.  The agency has
affirmed the ratings on the class A and B notes.

  -- EUR279.9 million Class A (XS0294895999) affirmed at 'BBB';
     Outlook Stable

  -- EUR81.8 million Class B (XS0294895726) affirmed at 'BB';
     Outlook revised to Negative from Stable

Breeze 3 is a Luxembourg SPV that on April 19, 2007, issued three
classes of notes for an aggregate issuance amount of EUR455 mil
lion to finance the acquisition and the completion of a portfolio
of 45 wind farms in Germany and France, as well as establishing
various reserve accounts.  The notes will be repaid from the cash
flow generated by the sale of the energy produced by the wind
farms, mainly under regulated tariffs.

The revision of the rating Outlook on the Class B notes reflects
the negative consequences on the issuer's cashflows of the
cancellation on August 6 2008 of the decree regulating the tariff
payable to French wind farms.  As a result of such event, the 3
French wind farms Xambes, Conteville and Combusins (which entered,
or are about to enter, operation after such date) will receive the
electricity market price (currently around 1.2 euro cents per kWh)
rather than the expected regulated tariff (approximately 8.5 euro
cents per kWh).  The effect is most significant on the Class B
notes.  This situation is considered temporary as Fitch has been
informed that the cancellation was due to a formal mistake in the
decree and that the French Government is expected to pass in
coming months a new regulation mirroring the one previously in
force.  The stress is further mitigated by the fact that the 3
affected wind farms only represent some 8% of the portfolio
installed capacity.

Additional concerns affecting the Breeze 3 wind farm portfolio
arise from a technical issue causing cracks in the foundations of
a number of Vestas V90 turbines.  The issue is common to a large
number of wind farms in Germany and its complexity makes it
extremely difficult to allocate responsibility or to predict
whether a turbine will be impacted in the future.  The consequence
of this issue on the Breeze 3 portfolio was the withdrawal of
insurance coverage on the foundations of 17 Vestas V90 turbines
for damages not caused by external factors.  Fitch gains comfort
from the fact that none of these foundations (which represent less
than 10% of the portfolio installed capacity) currently display
any cracks and from the active management of the issue by the
operator of the Breeze 3 portfolio.

As of closing in April 2007, nine wind farms (20.3% of planned
capacity) were yet to enter operation.  The portfolio is now
almost fully operational, as the commissioning of the only
remaining project, Conteville, is expected to occur within end of
November.

Energy production during the period going from July 2007 to June
2008 was 3% above Fitch's expectations, which are based on a P90
energy production estimate with portfolio effect.  Fitch will
continue to monitor the portfolio's performance in order to assess
whether the original production forecasts, on which the agency's
assumptions are based, reflect the long-term average energy
output.

Availability during the period was lower than anticipated at
96.4%.  This was due both to the teething issues experienced by
some wind farms which entered operation during the course of the
year as well as to a number of technical issues which hampered the
performance of various projects.  According to Breeze 3 the
original 97% technical availability assumption was too aggressive
for the turbines in the portfolio, with availability in the 95 to
96% range appearing more reasonable.  Fitch has used this revised
level in its updated forecasts for Breeze 3.

Operating expenses during 2007 were above projections by
approximately EUR1.8 million.  This was partly due to some one-off
payments such as legal and tax consultant fees relating to the
restructuring of the German borrower.  Operating expenses are
expected to come closer to the original business plan amount,
although they are likely to remain some EUR500,000 above initial
expectations.  Breeze 3 began amortizing the notes in October
2008, after an initial one year interest-only period.  As such, no
meaningful debt service coverage ratio figures are yet available.

Breeze III Energy GmgH and Co KG (the German borrower) underwent a
restructuring of its shareholding structure in December 2007 in
order to avoid the adverse tax effect due to changes to the German
corporate tax reform.  Although it isn't yet possible to state
with certainty that the enacted re-structuring measures will
achieve the goal of neutralizing the negative impact on the deal's
economics, Fitch has been advised that this is considered to be
predominantly likely by the borrower's legal counsel.
Furthermore, based on the information provided, Fitch views
neutrally the corporate restructuring, as this does not negatively
affect the transaction in terms of security for the notes or
bankruptcy remoteness of the German borrower.


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PAREX BANKA: Fitch Cuts Long-Term Issuer Default Rating to 'BB'
---------------------------------------------------------------
Fitch Ratings issued a revised release clarifying that the guaran
tee is for the refinancing of EUR775 million syndication loans,
and not the EUR775 million syndication loans as previously stated.

Fitch Ratings has downgraded Latvia-based Parex Banka's Long-term
Issuer Default Rating to 'BB' from 'BB+' and Individual rating to
'F' from 'C/D'.  In addition, Fitch has placed the Long-term IDR
on Rating Watch Negative.  The senior unsecured ratings are also
downgraded to 'BB' and put on RWN.  Fitch has affirmed the bank's
Short-term IDR at 'B', Support rating at '3' and Support Rating
Floor at 'BB'.

The rating action follows the nationalization of the bank (51% of
total shares) after the bank's application for support from the
government as a result of resident and non-resident deposit with
drawals between October 1 and November 7 that amounted to 12% of
total customer deposits.  It also follows the downgrade of the
sovereign ratings of Latvia to Long-term foreign IDR 'BBB-' from
'BBB', Long-term local currency IDR 'BBB' from 'BBB+' and Country
Ceiling to 'A-' from 'A'.

The ratings are now at the support rating floor and reflect the
support Parex received from the government in the form of liquidi
ty injection and guarantee for refinancing of EUR775 million of
syndication loans that are coming due in 2009 (EUR275 million in
February 2009 and EUR500 million in June 2009).  The government is
also looking to sell the bank to a strategic investor; however,
Fitch believes it will be difficult given the current global oper
ating environment.  The Individual rating reflects Fitch's opinion
that if the bank had not received support from the government it
would have defaulted.

On Nov. 8th, 2008 Parex Banka became a subsidiary of the state-
owned Mortgage and Land Bank when it acquired 51% of the shares of
the bank.  The previous owners, Valery Kargin and Viktor Krasovit
sky, who held 86% of the bank, will continue to work for the bank
and 35% of their shares are pledged to Mortgage and Land Bank.
The remaining 14% minority shareholders are not affected.  While
the bank has received liquidity support from the government and
guarantees for its maturing syndications, the resident and non-
resident deposit outflow has not stopped and Fitch is closely mon
itoring the situation.

While Parex is the largest non-resident service provider bank in
Latvia, it has strengthened its domestic franchise dramatically in
the last few years.  However, with the sharp economic slowdown in
Latvia and the Baltics as a whole, it is also seeing an increase
in its impaired lending.  Although the non-resident business has
been generating stable fees and commission income, cost of funds
is increasing as well as impairment charges and non-interest ex
penses.  The capitalization is only adequate and the bank is fac
ing very challenging times.

Parex was the second-largest bank by assets in Latvia at the end
of third-quarter 2008.  It is a universal bank offering the full
range of banking products directly and through specialized sub
sidiaries.


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BRE BANK: Moody's Changes Outlook on 'D' BFSR to Stable
-------------------------------------------------------
Moody's Investors Service changed the outlook on the D bank
financial strength rating (BFSR) of BRE Bank to stable from
positive.  BRE Bank's long-term and short-term local and foreign
currency deposit ratings were confirmed at A2 and Prime-1,
respectively, concluding the review for possible downgrade
initiated on these ratings in September.

Moody's affirmed the D- BFSR of the bank's subsidiary, BRE Bank
Hipoteczny with stable outlook, but concluded the review on its
long-term local and foreign currency deposit ratings by
downgrading them to Baa1 (stable outlook) from A3.

In the case of BRE Bank, the change in outlook on the BFSR
reflects the recent negative trends in the operating environment.
In Moody's view, the volatility in the availability of funding and
increased cost of risk are likely to constrain the potential for
further improvement in the bank's financial fundamentals.  This
would make it difficult for the bank to maintain its strong
organic growth and thus an upgrade is unlikely.  However, in
confirming its supported long-term ratings, Moody's recognizes
that BRE Bank enjoys a well-established diversified independent
franchise in Poland and wide retail funding base.

As a result, Moody's considers that BRE Bank's supported ratings
have a lower degree of dependence, compared with the wholesale
funded BRE Hypo, on their German parent Commerzbank and can absorb
the sensitivity of the recent downgrade of Commerzbank's BFSR to C
from C+.

Therefore given the higher degree of dependence as well as the
lower BFSR, in the case of BRE Hypo, the supported long-term local
and foreign currency ratings were directly affected by the
downgrade in the ultimate parent Commerzbank's BFSR and resulted
in their downgrade.  Nonetheless, in affirming BRE Hypo's BFSR,
Moody's noted the bank's wholesale-funded exposure to the real
estate market but considered that the current BFSR is comfortably
positioned in the D- category, one of the lowest for Polish banks,
which is able to absorb a degree of fluctuation in financial
performance.  The rating agency also takes comfort from the fact
that BRE Hypo's asset quality has been consistently good with
conservative underwriting criteria.

Moody's previous rating action on BRE Bank was the placing of its
long-term and short-term deposit and debt ratings on review for
possible downgrade in September 2008.

Moody's previous rating action on BRE Bank Hipoteczny was the
placing of its long-term local and foreign currency deposit
ratings on review for possible downgrade in September 2008.

These ratings were downgraded:

   -- BRE Bank Hipoteczny's long-term local and foreign currency
      deposit ratings to Baa1 from A3

This outlook was changed:

   -- BRE Bank's outlook on the D BFSR to stable from positive

These ratings were confirmed:

   -- BRE Bank's A2 local and foreign currency deposit ratings and
      foreign currency debt rating

   -- BRE Bank's Prime-1 short-term deposit rating

These ratings were affirmed:

   -- BRE Bank Hipoteczny's BFSR of D- with stable outlook and
      short-term deposit rating of Prime-2

This specific debt category was not covered: BRE Bank Hipoteczny's
covered bond rating of A2 with rating on review for possible
downgrade

Headquartered in Warsaw, BRE Bank reported consolidated IFRS net
income of PLN640 million in H1 2008 and total assets of PLN64.7
billion at end-June 2008.

Headquartered in Warsaw, BRE Bank Hipoteczny reported IFRS net
income of PLN19 million in H1 2008 and total assets of PLN3.9
billion at end-June 2008.


GETIN BANK: Moody's Changes Outlook on 'D' BFSR to Negative
-----------------------------------------------------------
Moody's Investors Service has changed the outlook on Getin Bank's
Ba2 long-term local and foreign currency deposit ratings and D
bank financial strength rating to negative from stable.

The change in outlook was prompted by Moody's concerns that recent
adverse trends in the Polish operating environment will make it
more difficult for the bank to maintain its above-average growth
rates and profitability ratios.  Getin Bank concentrates on
consumer and mortgage lending (particularly foreign-exchange-
denominated loans), which may be at higher risk in the event of a
potential slowdown in the economy.

Moody's is also concerned that, although Getin Bank has
significantly grown its customer deposit base, its lending
expansion has been based on borrowed funds and the large portion
of foreign exchange assets creates potential risks in terms of
asset/liability mismatching.  Moody's notes that close to 97% of
Getin's mortgage portfolio was denominated in the Swiss Franc and
its loan-to-deposit ratio was at 122% as at H1 2008.  However,
Moody's notes that if Moody's included deposits from public sector
this would bring the loan-to-deposit ratio to 105%, for the same
period.

Nonetheless, Moody's acknowledges that the bank's efficiency and
profitability remain among the best in its peer group and may act
as a cushion in the event of a mild downturn.  Getin's internal
capital growth was at 30% better than the peer group average as at
H1 2008 and its risk weighted profitability of 5.4% compared
Moody's well with the peer group average of rated Polish banks at
3.9%.

Getin Bank's ratings had remained unchanged since being assigned
at their current level in October 2005.

Headquartered in Katowice, Getin Bank reported net profit of
PLN195 million (EUR58.2 million) under Polish Accounting Standards
for the six months to the end of June 2008, with total assets of
almost PLN17.9 billion (EUR5.34 billion).


* Moody's Reports Negative Outlook for Polish Banking System
------------------------------------------------------------
The fundamental credit outlook for the Polish banking system is
negative, reflecting the increased probability that the financial
fundamentals of the country's banks will suffer as a result of the
ongoing turmoil in the global financial sector, which has already
spread into Central and Eastern Europe.  It also reflects an
anticipated increase in funding pressures in the current climate,
prompting banks to adopt more defensive liquidity strategies, and
an expected contraction in growth, says Moody's Investors Service
in its new Banking System Outlook for Poland.

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

"During the first half of 2008, Polish banks to some extent
managed to sustain the performance trends from the previous years
of growth and expansion.  Most of them continued to concentrate on
their domestic activities, focusing on the expansion in the retail
and SME segments.  This was a positive factor that initially
sheltered them from the financial turmoil spreading in the Moody's
stern world and affecting most of their foreign parents," explains
Irakli Pipia, a Moody's Assistant Vice-President,Analyst and co-
author of the report.

However, as the availability of long-term funding and foreign
exchange hedging facilities has dried up in the second half of the
year, the original growth strategies have become increasingly
questionable.  "In the current market conditions, the availability
of wholesale funding has shrunk notably and interbank lending
remains frozen.  As a result, competition for retail deposits has
become even fiercer, hiking up average funding costs, and is
likely to contribute to margin pressures in the coming year," Mr
Pipia says.

Asset quality trends have been positive since the beginning of the
year but, given the recent regional and global economic
volatility, Moody's expects borrowers to increasingly start
experiencing payment problems.  These trends are most likely to be
most pronounced in the real estate segment and, in particular, in
this segment's foreign exchange lending component.  The rating
agency believes the current downturn will provide a 'litmus test'
for the underwriting standards of Polish banks and challenge the
reliability and benefits of the support they receive from their
international parents.

Moody's takes comfort from the fact that all of the rated Polish
banks are Moody's well-established domestic players with minimum
or no exposure to high-risk International structured transactions.
Profitability and efficiency ratios have been improving so far and
the majority of rated banks remain adequately capitalized,
reflecting the strategic interests of their respective parents.
The system-wide availability of retail funding is comfortable,
compared to Moody's stern Europe, and the operating and regulatory
environments have improved in recent years.

"Moody's anticipates that current developments are likely to lead
to a cautious approach to lending, defensive strategies with
regard to liquidity and liability management, and reduced
profitability.  In the coming year, attracting retail deposits
will become a key priority for Polish banks and those with
developed branch networks, balanced product portfolios and sales
strategies are most likely to sustain their franchise values
relatively intact," cautions Gabriel Kadasi, Analyst and report
co-author.


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AVTO-AGREGAT OJSC: Creditors Must File Claims by January 7
----------------------------------------------------------
Creditors of OJSC Avto-Agregat have until Jan. 7, 2008, to submit
proofs of claims to:

         A. Popov
         Insolvency Manager
         Post User Box 345
         115230 Moscow-230
         Russia

The Arbitration Court of Ivanovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A17=961793/06=9610B.

The Debtor can be reached at:

         OJSC Avto-Agregat
         2nd. Shuyskaya Str. 1
         Kineshma
         Ivanovskaya
         Russia


BAGDARINSKAYA MINING: Court Names Temporary Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Buryatia appointed S. Shlykova as
Temporary Insolvency Manager for CJSC Bagdarinskaya Mining and
Geological Company.  The case is docketed under Case No. A78=96
2141/2008.  He can be reached at:

         Korabelnaya Str. 32/312
         Ulan-Ude
         Buryatia
         Russia


BELVEDER CJSC: Creditor Must File Claims by December 7
------------------------------------------------------
Creditors of CJSC Belveder (Construction) have until
Dec. 7, 2008 to submit proofs of claims to:

         A. Avilov
         Temporary Insolvency Manager
         Office 313
         Suvorova Str. 111a
         440000 Penza
         Russia

The Arbitration Court of Kirovskaya will convene on
Feb. 24, 2008, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. A28=967542/2008=96218/10.

The Debtor can be reached at:

         CJSC Belveder
         Zagorodnaya Str. 3
         610046 Kirov
         Russia


BRYANSK REINFORCED: Kursk Bankruptcy Hearing Set January 14
-----------------------------------------------------------
The Arbitration Court of Kursk will convene on Jan. 14, 2009, to
hear bankruptcy supervision procedure on LLC Bryansk Reinforced
Concrete Construction.  The case is docketed under Case No. A35=96
4385/2008 S-19.

The Temporary Insolvency Manager is:

         S. Mikhaylova
         Seregina Str. 20
         305018 Kursk
         Russia

The Debtor can be reached at:

         LLC Bryansk Reinforced Concrete Construction
         Solovyina Str. 72
         305038 Kursk
         Russia


ECONATSBANK: Loses Banking License
----------------------------------
Toni Vorobyova and Greg Mahlich at Reuters report the Russia's
central bank revoked the banking licenses of Mira Bank,
Econatsbank and International Bank of Solidarity.

Reuters discloses Mira Bank and Econatsbank lost their licenses as
they failed to fulfill federal laws which govern banking activity,
as well as central bank rules, the inability to meet creditors'
demands and make mandatory payments.

The central bank, as cited by Reuters, said Econatsbank also had
problems with its accounts.

Reuters, however, notes that depositors will be able to apply to
the Deposit Insurance Agency to get their money back.  The first
RUR700,000 (US$25,610) of a deposit is 100 percent guaranteed, the
report states.

According to Reuters, the global credit crunch is taking its toll,
leading to consolidation among Russia's 1,000-plus banks and
failure for some of the smaller institutions.


EVRO-KARTON CJSC: Creditor Must File Claims by December 7
---------------------------------------------------------
Creditors of CJSC Evro-Karton (Cellulose, Wood pulp, Paper
Production) have until Dec. 7, 2008 to submit proofs of claims
to:

         Ye. Yemelin
         Temporary Insolvency Manager
         Office 313
         Suvorova Str. 111a
         440000 Penza
         Russia

The Arbitration Court of Permskaya will convene on
Jan. 29, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. A50=9610955/2008-B-3.

The Debtor can be reached at:

         CJSC Evro-Karton
         Klary Tsetkin Str.14
         Perm
         Russia


INVEST-ENERGO-FINANCE LLC: Creditors Must File Claims by Dec. 7
---------------------------------------------------------------
Creditors of LLC Invest-Energo-Finance (TIN 7714180231)
(Brokerage Services) have until Dec. 7, 2008, to submit proofs of
claims to:

         P. Goncharov
         Insolvency Manager
         Post User Box 1
         119261 Moscow
         Russia

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A40=9611471/08=9636-34B.

The Debtor can be reached at:

         LLC Invest-Energo-Finance
         Building 1a
         Pravdy Str. 7/9
         125124 Moscow
         Russia


LOUKHSKOE ELECTRIC: Creditors Must File Claims by January 7
-----------------------------------------------------------
Creditors of ME Loukhskoe Electric Utility have until
Jan. 7, 2008, to submit proofs of claims to:

         S. Ivanov
         Insolvency Manager
         Office 32
         Gogolya Str.54
         Petrozavodsk
         Karelia
         Russia

The Arbitration Court of Karelia commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A26=96864/2008.

The Debtor can be reached at:

         ME Loukhskoe Electric Utility
         Pervomayskaya Str. 9
         Loukhi
         Karelia
         Russia


MIRA BANK: Central Bank Revokes Banking License
-----------------------------------------------
Toni Vorobyova and Greg Mahlich at Reuters report the Russia's
central bank revoked the banking licenses of Mira Bank,
Econatsbank and International Bank of Solidarity.

Reuters discloses Mira Bank and Econatsbank lost their licenses as
they failed to fulfill federal laws which govern banking activity,
as well as central bank rules, the inability to meet creditors'
demands and make mandatory payments.

The central bank, as cited by Reuters, said Econatsbank also had
problems with its accounts.

Reuters, however, notes that depositors will be able to apply to
the Deposit Insurance Agency to get their money back.  The first
RUR700,000 (US$25,610) of a deposit is 100 percent guaranteed, the
report states.

According to Reuters, the global credit crunch is taking its toll,
leading to consolidation among Russia's 1,000-plus banks and
failure for some of the smaller institutions.


OIL-PETROL LLC: Creditor Must File Claims by December 7
-------------------------------------------------------
Creditors of LLC Oil-Petrol (TIN 1701038420, PSRN 1051700520849)
have until Dec. 7, 2008 to submit proofs of claims to:

         A. Sunduy
         Temporary Insolvency Manager
         Apt. 85
         Bay-Khaakskaya Str. 8
         Kyzyl
         667011 Tyva
         Russia

The Arbitration Court of Tyva will convene on Jan. 12, 2009, to
hear bankruptcy supervision procedure.  The case is docketed
under Case No. A-69=962563/08=969.

The Debtor can be reached at:

         LLC Oil-Petrol
         Bukhtuyeva Str. 1/2/3
         Kyzyl
         667011 Tyva
         Russia


PIK GROUP: Fitch Junks Long-term Issuer Default Rating
------------------------------------------------------
Fitch Ratings downgraded Russian housebuilder OJSC PIK Group's
Long-term Issuer Default rating to 'CCC' from 'BB-' and Short-term
IDR to 'C' from 'B' due to liquidity concerns.  All ratings have
also been placed on Rating Watch Evolving.

The downgrade reflects Fitch's concern that PIK will not be able
to honor upcoming debt maturities.  The company faces sizable
maturities in the very near-term and currently has insufficient
liquidity to meet these.

As indicated in Fitch's ratings action on September 19, 2008
(which placed PIK's ratings onto Rating Watch Negative), PIK's
liquidity position is poor due to its high level of short-term
debt and low level of back-up liquidity (cash and long-term
committed undrawn facilities).  PIK's liquidity position has
worsened since September, due to the turmoil affecting Russia's
financial markets and a weakening residential real estate market,
leaving the housebuilder unable to raise substantial new debt
finance to refinance its upcoming maturities.

Furthermore, operational cash flow in October was significantly
lower than expected, primarily because of a delay in PIK receiving
sizable cash receipts from the City of Moscow (rated 'BBB+') for
wholesale housing sales.  The timing and size of future payments
from the City of Moscow remains uncertain.

Fitch is aware of ongoing efforts by PIK to raise significant new
debt financing from certain Russian state-owned banks.  Although
no firm agreement has been reached, some talks are at an advanced
stage, according to PIK's management.  Fitch believes there is a
willingness on the part of the banks to provide funding to PIK,
although there is considerable uncertainty over whether funds will
be available quickly enough for PIK to meet its near-term
maturities.  PIK's ability to meet its near-term maturities is
essentially out of its control, with the company's solvency now
reliant on the decisions of third parties.

The RWE reflects the possibility that the ratings could either be
upgraded or downgraded in the near-term.  An upgrade of the
Long-term IDR - likely to be restricted to one notch -- could
occur if sizaable funds covering substantially all of PIK's
short-term debt are received in the near-term.  A downgrade of the
Long-term IDR - possibly by more than one notch - could occur if
sufficient funds to cover PIK's immediate maturities are not
obtained within the very near-term, therefore leaving PIK
increasingly likely to default.


SIBIR AIR: Under Bankruptcy Supervision Procedure
-------------------------------------------------
The Arbitration Court Of Krasnoyarsky have commenced a
bankruptcy supervision procedure against OJSC Sibir Air Carrier
(TIN 2465037247, PSRN 1022400661634).  The Case is docketed
under No. A33=9613427/2008.

The Debtor can be reached at:

         OJSC Sibir Air Carrier
         Cheremshanka Airport
         Yemelyanovskiy
         663020 Krasnoyarskiy
         Russia


STROBIS LLC: Chelyabinskaya Bankruptcy Hearing Set January 12
-------------------------------------------------------------
The Arbitration Court of Chelyabinskaya will convene at
11.00 a.m. on Jan. 12, 2009, to hear bankruptcy supervision
procedure on LLC Strobis (TIN 7445021336 ) (Construction).  The
case is docketed under Case No. A72=9620502/2008=9634=96109.

The Temporary Insolvency Manager is:

         Ye. Bogdanov
         Chkalova Str. 21
         390029 Ryazan
         Russia

The Debtor can be reached at:

         LLC Strobis
         Floor 13
         Voroshilova Str. 13/1
         455045 Magnitogorsk
         Russia


* Fitch Changes Outlooks on 12 Russian Banks to Negative
-------------------------------------------------------
Fitch Ratings corrected its earlier ratings release to show the
correct ownership of ZAO Raiffeisenbank:

Fitch Ratings has changed the Outlooks on 12 Russian banks, four
European banking subsidiaries of Russian Bank VTB and two Russian
leasing companies to Negative from Stable and affirmed their
ratings.  This action follows the revision of the Outlook on
Russia's IDRs to Negative from Stable.

The change in Outlooks on the IDRs of ZAO Unicredit Bank, Absolut
Bank, ZAO Raiffeisenbank, Orgresbank and Rosbank reflects the
potential downward revision of Russia's Country Ceiling (currently
'A-' (A minus)), following the change in Russia's Outlook.  The
Country Ceiling of Russia captures transfer and convertibility
risks and limits the extent to which support from the foreign
shareholders of these banks can be factored into their Long-term
foreign currency IDRs.  Their Long-term local-currency IDRs, where
assigned, also take account of Russian country risks.

ZAO Unicredit Bank is 100%-owned by UniCredit S.p.A.
('A+'/Negative), Absolut Bank is majority (95%)-owned by Belgium-
based KBC Bank (rated 'AA-' (AA minus)/ Rating Watch Negative),
ZAO Raiffeisenbank is 99.967 %-owned by Raiffeisen International
Bank-Holding AG, which in turn is 68.5%-owned by Austria's
Raiffeisen Zentralbank Osterreich AG, Orgresbank is 75.01 %-owned
by Nordea Bank AB ('AA-' (AA minus)/Stable) and Rosbank is 57.57%-
owned by France's Societe Generale (rated 'AA-' (AA
minus)/Stable).  The Long- and Short-term IDRs and Support ratings
of these banks reflect the high probability of support being
forthcoming from their majority shareholders, in case of need.

The change in Outlooks on the Long-term IDRs of Vnesheconombank,
Sberbank, Bank VTB, Russian Agricultural Bank and Rosagroleasing
reflect the increased likelihood of a deterioration in the
government's ability to provide support in case of need, as
reflected in the change of the Outlooks for the sovereign Long-
term IDRs.  The Russian state owns 77.5% and 60.3% (of ordinary
shares), respectively, of Bank VTB and Sberbank.  Russian
Agricultural Bank and Rosagroleasing are fully owned by the
government.  Vnesheconombank is a state corporation established by
the Russian Federation and was assigned the role of a national
development bank by federal law in May 2007.

The change in Outlooks on the Long-term IDRs of Bank VTB North-
West, Bank VTB24, VTB Leasing, VTB Bank (Austria), VTB Bank
(France), VTB Bank Europe and Russian Commercial Bank (Cyprus)
follows the revision of the Outlook for their parent, Bank VTB,
indicating a possible weakening of the latter's ability to support
them due to, in its turn, possible deterioration in support from
the Russian state.

The change in Outlook on the Long-term IDR of Bank of Moscow (BOM)
follows today's revision of the Outlook on the City of Moscow's
Long-term IDRs to Negative form Stable, also following the change
of the Outlooks for the Russian sovereign IDRs.  The City of
Moscow owns 44% of BOM directly and controls a further 15% through
Capital Insurance Group.

   * Absolut Bank
Long-term foreign currency IDR: affirmed at 'A-' (A minus);
Outlook revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '1'
Individual rating: affirmed at 'D'

   * Bank VTB (JSC)
Long-term local currency IDR: affirmed at 'BBB+'; Outlook revised
to Negative from Stable
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '2'
Individual rating: affirmed at 'C/D'
Support Rating Floor: affirmed at 'BBB+'

   * Bank of Moscow
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3'
National Long-term rating: affirmed at 'AA+(rus)'; Outlook Stable
Support rating: affirmed at '2'
Individual rating: affirmed at 'D'

   * CJSC Bank VTB24
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '2'
Individual rating: affirmed at 'D'

   * JSC Bank VTB North-West
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
Support rating: affirmed at '2'
Individual rating: affirmed at 'D'

   * JSC Rosagroleasing
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3
National Long-term rating: affirmed at 'AA+(rus)'; Outlook Stable
Support rating: affirmed at '2'
Support Rating Floor: affirmed at 'BBB'

   * Orgresbank
Long-term foreign currency IDR: affirmed at 'A-' (A minus);
Outlook revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '1'
Individual rating: affirmed at 'D'

   * Rosbank
Long-term foreign currency IDR: affirmed at 'A-' (A minus);
Outlook revised to Negative from Stable
Long-term local currency IDR: affirmed at 'A-' (A minus); Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '1'
Individual rating: affirmed at 'C/D'

   * Russian Agricultural Bank
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '2'
Individual rating: affirmed at 'D'
Support Rating Floor: affirmed at 'BBB+'

   * Russian Commercial Bank (Cyprus) Ltd
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3'
Support rating: affirmed at '2'

   * Sberbank - Savings Bank of the Russian Federation
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
Support rating: affirmed at '2'
Individual rating: affirmed at 'C'
Support Rating Floor: affirmed at 'BBB+'

   * Vnesheconombank
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
Support rating: affirmed at '2'
Support Rating Floor: affirmed at 'BBB+'

   * VTB Bank (Austria) AG
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3'
Support rating: affirmed at '2'
Individual rating: affirmed at 'C/D'

   * VTB Bank (France) SA.
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3'
Support rating: affirmed at '2'
Individual rating: affirmed at 'C/D'

   * VTB Bank Europe plc.
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3'
Support rating: affirmed at '2'
Individual rating: affirmed at 'C/D'

   * VTB Leasing
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
revised to Negative from Stable
Long-term local currency IDR: affirmed at 'BBB+'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
Short-term local currency IDR: affirmed at 'F2'
Support rating: affirmed at '2'

   * ZAO Raiffeisenbank
Long-term foreign currency IDR: affirmed at 'A-' (A minus);
Outlook revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '1'
Individual rating: affirmed at 'C/D'

   * ZAO Unicredit Bank
Long-term foreign currency IDR: affirmed at 'A-' (A minus);
Outlook revised to Negative from Stable
Long-term local currency IDR: affirmed at 'A-' (A minus); Outlook
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F2'
Short-term local currency IDR: affirmed at 'F2'
Support rating: affirmed at '1'
Individual rating: affirmed at 'C/D'


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S L O V E N I A
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MESNA INDUSTRIJA: Gets Five Unbinding Offers
--------------------------------------------
UniCredit Bank has received five unbinding offers for insolvent
meat processing company Mesna industrija Primorske (MIP), Limun.hr
reports, citing Finance.si as its source.  UniCredit is tasked
with finding a strategic partner for the business.

Mario Volk, general manager and one of the owners of MIP, claimed
all submitted offers include recapitalization, although he noted
they come under different conditions, the report discloses.

Mr. Volk, the report relates, attributed the company's insolvency
to rapid gouging of raw material prices, stagnation in purchasing
power, and dispersion of producers on a small market.  "All these
factors have caused us to reduce production, which naturally
affected sales," the report quoted Mr. Volk as saying.

MIP is based in Nova Gorica, Slovenia.


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S P A I N
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FONDO DE TITULIZACION: Moody's Puts 'C' Rating on Class D Notes
---------------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
these classes of Notes issued by TDA CAM 11 Fondo de Titulizacion
de Activos, a Spanish Asset Securitisation Fund:

  -- Aaa to the EUR334.8 million Series A1 notes
  -- Aaa to the EUR517.9 million Series A2 notes
  -- Aaa to the EUR403.2 million Series A3 notes
  -- Aaa to the EUR229.1 million Series A4 notes
  -- Aa1 to the EUR33 million Series B notes
  -- Baa3 to the EUR132 million Series C notes
  -- C to the EUR66 million Series D notes

Moody's assigned provisional ratings on Nov. 10, 2008.

The transaction represents the securitization of Spanish
residential mortgage loans originated by CAM (Caja de Ahorros del
Maditerraneo, A2/Prime-1).  The assets supporting the Notes are
prime mortgage loans secured on residential properties located in
Spain.  The portfolio will be serviced by CAM.

The ratings of the Notes are based upon the analysis of the
characteristics of the mortgage pool backing the Notes, the
protection the Notes receive from credit enhancement against
defaults and arrears in the mortgage pool, the legal and
structural integrity of the issue and the credit quality of the
parties involved in the transaction.

Compared to the previous TDA CAM series, this transaction includes
looser arrears triggers for the pro-rata amortization of the
series as Moody's well as for the Reserve Fund amortization.

The definitive ratings address the expected loss posed to
investors by the legal final maturity.  The structure allows for
timely payment of interest (for Classes A, B and C) and ultimate
payment of principal on Classes A, B, C and D at par on or before
the legal final maturity date.  Moody's ratings address only the
credit risks associated with the transaction.  Other non-credit
risks have not been addressed but may have a significant effect on
the yield to investors.

The Spanish Government announced on November 4, 2008, a package of
aid to assist unemployed, self employed and retired borrowers
through a form of mortgage subsidy aid.  It is unclear how this
package will be implemented, and also if it is implemented, how
the transaction will be affected, although both liquidity and
credit implications are possible on this portfolio.  However, any
implications on the ratings will ultimately depend on the actual
financial aid conditions which will be approved.


IM FTGENCAT: S&P Puts 'B' Preliminary Rating on Class C Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary credit
ratings to the EUR500 million floating-rate notes to be issued by
IM FTGENCAT SABADELL 4, Fondo de Titulizacion de Activos.

The originator is Banco de Sabadell S.A. (Banco Sabadell), which
at closing will sell to IM FTGENCAT SABADELL 4 a EUR500 million
closed portfolio of secured and unsecured loans granted to Spanish
small to midsize enterprise (SMEs).

IM FTGENCAT SABADELL 4 will be Banco Sabadell's 15th
securitization transaction of its loans originated to SME
corporate clients.  The transaction features some structural
enhancements provided by the swap agreement, amortization of the
notes, the reserve fund, and a guarantee by Catalonia on the class
A2 (G) notes, as this transaction qualifies for the FTGENCAT
program.

The transaction structure is nearly identical to the previous
Sabadell transaction, IM FTPYME Sabadell 7.  The only difference
in the new transaction is the concentration in the Catalonian
region, as this is a prerequisite to the guarantee from Catalonia.

To fund this purchase, Intermoney Titulizacion S.G.F.T., S.A. as
trustee will issue four classes of floating-rate, quarterly-paying
notes on behalf of IM FTGENCAT SABADELL 4.

The class A2 (G) notes will benefit from an irrevocable and
unconditional guarantee for principal and interest payments from
the Autonomous Community of Catalonia (AA/Negative/=97).  On receipt
of a notice of a shortfall in the available funds to meet either
the interest or principal repayment obligations, or both, the
Catalonian Regional Department of Economy and Finance must cover
the shortfall within a maximum of 90 days.

The ratings on the notes to be issued by IM FTGENCAT SABADELL 4
reflect the subordination of the respective classes of notes below
them, the reserve fund, the presence of the interest rate swap
(which provides excess spread of 25 basis points), comfort
provided by various other contracts, and the rating on Banco
Sabadell S.A. (A+/Negative/A-1).

RATINGS LIST

IM FTGENCAT SABADELL 4, Fondo de Titulizacion de Activos
EUR500 Million Floating-Rate Notes

   Class          Prelim.        Prelim.
                  rating         amount (Mil. EUR)
   -----          -------        -----------------
   A1             AAA                235.0
   A2(G)          AAA                194.1
   B              A                   39.3
   C              B                   31.6

The class A2 (G) notes will be protected by a guarantee from the
Autonomous Community of Catalonia.  The standalone preliminary
rating on the class A2 (G) notes is 'AAA'.


MADRID RMBS I: Moody's Cuts Rating on Class E Notes to B1
---------------------------------------------------------
Moody's Investors Service has taken these rating actions on the
Notes issued by Madrid RMBS I, FTA:

   -- Class A1, Current rating: Aaa, rating confirmed;
   -- Class A2, Current rating: Aaa, downgraded to Aa1;
   -- Class B, Current rating: Aa2: downgraded to A1;
   -- Class C, Current rating: A2: downgraded to Baa2.
   -- Class D, Current Rating: Baa2, downgraded to Ba2; and
   -- Class E, Current Rating: Ba2, downgraded to B1.

Last rating action date for Madrid RMBS I, FTA: July 23, 2008.

As explained in the press release issued in July 2008 in relation
to the methodology update, the refinements to Moody's Spanish
MILAN model result in higher credit enhancement levels for Spanish
RMBS pools, especially those with riskier features, such as higher
loan-to-value ratios and higher-risk products. Madrid RMBS I, FTA
was one of the transactions flagged by Moody's as having such
features.  All Classes of Notes were placed on review for possible
downgrade on July 23, 2008.  The rating action concludes a
detailed review of the transaction.

Madrid RMSB I, FTA closed in November 2006.  In this transaction,
the Originator (Caja Madrid, Aa3/P-1) securitized a portfolio of
11,090 first-ranking mortgage loans secured on residential
properties located in Spain, for an overall amount of EUR2.0
billion.  The collateral consisted exclusively of loans with a
loan-to-value ratios (LTV) over 80 percent.  These high LTV loans
represent 98.57 percent of the outstanding pool balance as of
October 2008.

This transaction includes partial hedging of interest rate risk,
which was taken into account in the initial as well as ongoing
analysis.  Class A1 and A2 Notes amortize sequentially.
Sequential amortization turns to pro-rata if the outstanding
amount of loans more than six months in arrears exceeds 25 percent
of the original portfolio balance.

The portfolio is showing worse-than-expected collateral
performance leading to above market average delinquencies.  22
months after closing, the cumulative defaults are equal to 3.19%
of the original portfolio balance, and the 90+ delinquencies
(excluding outstanding defaults) correspond to approximately 4.18%
of the current portfolio balance.

The reserve fund has not been at target level for the last three
interest payment periods following the insufficient excess spread
to cover artificially written-off of loans more than 6 months
delinquent.  This typical Spanish RMBS mechanism speeds up the
off-balance sheet of a non-performing loan compared to waiting for
the "natural write-off"; thus, the amount of notes collateralized
by non-performing loans is minimized, and, consequently, the
negative carry.

During the last three quarters excess spread has not been
sufficient to provision for artificial write-offs resulting in
drawings of the reserve fund (currently at 64.38% of target
level).  Moody's expects that available funds will increase as
recoveries from written-off loans are collected.  Following an
updated loan-by-loan analysis, and on the basis of the performance
experienced by the portfolio so far, Moody's has updated the
portfolio's expected loss assumption modeled from a range of
1.18%-1.38% to 2.40%-2.60%, both as a percentage of original pool
balance.  Moody's further raised its credit support expectations
for the rating levels assigned.

Moody's notes that the Spanish Government announced on 4 November
2008 a support program to assist unemployed, self-employed and
pensioner borrowers.  At this stage, Moody's is awaiting further
clarifications on the program to determine any potential liquidity
and/or credit implications possible for this transaction.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes (July 2049).  Moody's
ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.


MADRID RMBS II: Moody's Cuts Class E Notes' Rating to B3
--------------------------------------------------------
Moody's Investors Service has taken these rating actions on the
Notes issued by Madrid RMBS II, FTA:

   -- Class A1, Current rating: Aaa, rating confirmed;
   -- Class A2, Current rating: Aaa, rating confirmed;
   -- Class A3, Current rating: Aaa, downgraded to Aa2;
   -- Class B, Current rating: Aa1, downgraded to A2;
   -- Class C, Current rating: A2, downgraded to Baa2;
   -- Class D, Current Rating: Baa3, downgraded to Ba3 and
   -- Class E, Current Rating: Ba3, downgraded to B3.

Last rating action date for Madrid RMBS II, FTA: July 23, 2008.

As explained in the press release issued on July 2008 in relation
to the methodology update, the refinements to Moody's Spanish
MILAN model result in higher credit enhancement levels for Spanish
RMBS pools, especially those with riskier features, such as higher
loan-to-value ratios and higher-risk products.  Madrid RMBS II FTA
was one of the deals flagged by Moody's as having such features.
All classes of Notes were placed on review for possible downgrade
on July 23, 2008.  The actions conclude a detailed review of the
transaction.

Madrid RMSB II, FTA closed in December 2006.  In this transaction,
the Originator (Caja Madrid, Aa3/P-1) securitized a portfolio of
9,884 first ranking mortgage loans secured on residential
properties located in Spain, for an overall amount of EUR1.8
billion.  The collateral consisted exclusively of loans with a
loan-to-value (LTV) over 80 per cent.  These high LTV loans
represent 97.6% of the outstanding pool balance as of October
2008.

This transaction includes partial hedging of interest rate risk,
which was taken into account in the initial as well as ongoing
analysis.  Class A1, A2 and A3 Notes amortize sequentially.
Sequential amortization turns to pro-rata if the outstanding
amount of loans more than six months in arrears exceeds 25 per
cent of the original portfolio balance.

The portfolio is showing worse-than-expected collateral
performance leading to above market average delinquency.  After 21
months since closing, cumulative defaults equal 4.64% of the
original pool balance, and the 90+ delinquencies (excluding
outstanding defaults) correspond to approximately 4.15% of the
current pool balance.

The reserve fund has not been at target level for the last five
periods following the insufficient excess spread to cover
artificially write-off of loans more than 6 months delinquent.
This typical Spanish RMBS mechanism speeds up the off-balance
sheet of a non-performing loan compared to waiting for the
"natural write-off"; thus, the amount of notes collateralized by
non-performing loans is minimized, and, consequently, the negative
carry.

During the last five quarters, excess spread has not been
sufficient to provision for artificial write-offs resulting in
drawings of the reserve fund (currently at 38.08% of target
level).  Moody's expects that available funds will increase as
recoveries from written-off loans are collected.  Following an
updated loan-by-loan analysis, and on the basis of the performance
experienced by the portfolio so far, Moody's has increased the
portfolio's expected loss assumption modeled from a range of
1.90%-2.10% to 2.90%-3.10%, both as a percentage of original pool
balance.  Moody's further raised its credit support expectations
for the rating levels assigned.

Moody's notes that the Spanish Government announced on November 4,
2008 a support program to assist unemployed, self-employed and
pensioner borrowers.  At this stage, Moody's is awaiting further
clarifications on the program to determine any potential liquidity
and/or credit implications possible for this transaction.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes (August 2049).  Moody's
ratings address only the credit risks associated with the
transaction.  Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.


MADRID RMBS III: Moody's Cuts Rating on Class E Notes to B3
-----------------------------------------------------------
Moody's Investors Service confirmed and downgraded these Notes
issued by Madrid RMBS III, FTA:

   -- Class A1, Current Rating: Aaa, rating confirmed;
   -- Class A2, Current Rating: Aaa, rating confirmed;
   -- Class A3, Current Rating: Aaa, downgraded to Aa2;
   -- Class B, Current Rating: Aa2, downgraded to A2;
   -- Class C, Current Rating: A2, downgraded to Baa2;
   -- Class D, Current Rating: Baa2, downgraded to Ba2 and
   -- Class E, Current Rating: Ba3, downgraded to B3.

Last rating action date for Madrid RMBS III, FTA: July 23, 2008.

As explained in the press release issued in July 2008 in relation
to the methodology update, the refinements to Moody's Spanish
MILAN model result in higher credit enhancement levels for Spanish
RMBS pools, especially those with riskier features, such as higher
loan-to-value ratios and higher-risk products.   Madrid RMBS III
FTA was one of the deals flagged by Moody's as having such
features.   All classes of Notes Moody's were placed on review for
possible downgrade on July 23, 2008.  This action concludes a
detailed review of the transaction.

Madrid RMSB III FTA closed in July 2007.  In this transaction, the
Originator (Caja Madrid, Aa3/P-1) securitized a portfolio of
16,086 first ranking mortgage loans secured on residential
properties located in Spain, for an overall amount of
EUR3.0 billion.  The collateral consists exclusively of loans with
a loan-to-value over 80 per cent.  These high LTV loans represent
98.51% of the outstanding pool balance as of October 2008.

This transaction includes partial hedging of interest rate risk,
which was taken into account in the initial as Moody's well as
ongoing analysis.  Class A1, A2 and A3 amortize sequentially.
Sequential amortization turns to pro-rata if the outstanding
amount of loans more than six months in arrears exceeds 25 per
cent of the original portfolio balance.

The portfolio is showing worse-than-expected collateral
performance leading to above market average delinquency.  After 14
months since issuance, the cumulative defaults are equal to 2.98%
of the original pool balance, and the 90+ arrears (excluding
outstanding defaults) correspond to approximately 4.70% of the
current pool balance.

The reserve fund has not been at target level for the last two
periods following the insufficient excess spread to cover
artificially write-off of loans more than 6 months delinquent.
This typical Spanish RMBS mechanism speeds up the off-balance
sheet of a non-performing loan compared to waiting for the
"natural write-off"; thus, the amount of notes collateralized by
non-performing loans is minimized, and, consequently, the negative
carry.

During the last two quarters excess spread has not been sufficient
to provision for artificial write-offs resulting in drawings of
the reserve fund (currently at 59.19% of target level).  Moody's
expects that available funds will increase as recoveries from
written-off loans are collected.  Following an updated loan-by-
loan analysis, and on the basis of the performance experienced by
the portfolio so far, Moody's has updated the portfolio's expected
loss assumption modeled from a range of 1.80%-2.00% to 2.90%-
3.10%, both as a percentage of original pool balance.  Moody's
further raised its credit support expectations for the rating
levels assigned.

Moody's notes that the Spanish Government announced on Nov. 4,
2008 a support program to assist unemployed, self-employed and
pensioner borrowers.  At this stage, Moody's is awaiting further
clarifications on the program to determine any potential liquidity
and/or credit implications possible for this transaction.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes (February 2050).  Moody's
ratings address only the credit risks associated with the
transaction.  Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.


SOL MELIA: Moody's Cuts Ratings to Ba1; Gives Negative Outlook
--------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3, and
subsequently withdrawn the issuer rating of Sol Melia S.A.  At the
same time, Moody's has assigned a Ba1 corporate family rating and
a Ba1 probability of default rating to Sol Melia.  The rating
outlook is negative.

The downgrade reflects Moody's expectation that the company will
not be able to reach and maintain credit metrics in line with the
Baa3 rating, in particular a debt-to-EBITDA ratio below 4x and
retained cash flow to net debt above 15% across cycles.

Moody's understands that the company's operating performance has
been suffering from the deteriorating market conditions,
particularly in its hotel business in Spain, as Moody's well as
from the absence of asset rotation activities.  On a group level
in Q3 2008, occupancies fell to 68% from 71% in Q3 2007, which
translated into a lower RevPAR of EUR55.2 on average and a 19%
decline of EBITDA to EUR221 million.  Net debt remained at the
high EUR890 million level, up from EUR840 million at the end of
FY2007.  "The recent deterioration in operating performance comes
on the back of an already Moody's weak positioning of the rating
due to the higher than anticipated leverage at FY2007," explains
Marika Makela, an Assistant Vice President, Analyst in Moody's
Corporate Finance Group.  "Therefore, the rating cannot
accommodate any further deterioration in credit metrics."

The rating outlook is negative, reflecting Moody's concerns on the
impact of the challenging operating environment on the company's
already high leverage, and the tightening headroom under the
financial covenants contained in Sol Melia's credit facilities.
"Moreover, at this junction of the hotel cycle, it may take some
time before the company's credit metrics materially improve.
Further negative pressure on the rating could develop if leverage
as measured by debt to EBITDA approaches 5.0x," cautions Ms.
Makela.

Moody's believes Sol Melia's liquidity profile is sufficient to
cover the EUR150 million convertible bond maturing in November
2008. Liquidity is supported by cash balances and short-term
deposits of EUR234 million at the end of June 2008, and a
syndicated loan of EUR200 million that has a MAC clause and
leverage and interest cover covenants under which the company had
sufficient leeway at the June 2008 testing.  A further EUR140
million of debt falls due in 2009.

"Moody's continues to recognize management's intention to link
investment spending to the company's overall cash flow
generation," says Ms. Makela.  "As a consequence, Moody's would
expect Sol Melia to continue to scale back capital expenditures in
the context of any further weakening in operating performance."

The last rating action was implemented on June 16, 2008 when
Moody's confirmed the Baa3 senior unsecured rating of Sol Melia
but changed the outlook to negative, concluding the review for
possible downgrade initiated on March 3, 2008.

Headquartered in Palma, Mallorca, Sol Melia is the 12th-largest
hotel operator in the world in terms of number of rooms and is
represented across the luxury, upscale and mid-scale segments of
the hotel market.  Sol Melia operates both city hotels and
resorts, and has been developing its timeshare business through
its Sol Melia Vacation Club brand.  Sol Melia generated revenues
of EUR1.3 billion at FYE2007.


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S W I T Z E R L A N D
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BINNIE & PARTNER: Creditors Must File Proofs of Claim by Nov. 27
----------------------------------------------------------------
Creditors owed money by LLC Binnie & Partners are requested to
file their proofs of claim by Nov. 27, 2008, to:

         JSC Bernet & Lehner Treuhand
         Liquidator
         Bankstrasse 7
         8750 Glarus
         Switzerland

The company is currently undergoing liquidation in Glarus.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 16, 2008.


GLOBE FINANZ-INVEST: Deadline to File Claims Set Nov. 27
--------------------------------------------------------
Creditors owed money by JSC Globe Finanz-Invest are requested to
file their proofs of claim by Nov. 27, 2008, to:

         Philippe Inderbitzin
         Allmeindstrasse 14
         6440 Brunnen
         Switzerland

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


JERHUB JSC: Creditors Have Until Nov. 28 to File Claims
-------------------------------------------------------
Creditors owed money by JSC Jerhub are requested to file their
proofs of claim by Nov. 28, 2008, to:

         Alois Murer
         Allmendstrasse 13
         6374 Buochs
         Switzerland

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


MERCURA FINANZ-INVEST: Claims Filing Deadline is Nov. 27
--------------------------------------------------------
Creditors owed money by JSC Mercura Finanz-Invest are requested to
file their proofs of claim by Nov. 27, 2008, to:

         Philippe Inderbitzin
         Allmeindstrasse 14
         6440 Brunnen
         Switzerland

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


MUELLER GOURMET: Creditors' Proofs of Claim Due by Nov. 28
----------------------------------------------------------
Creditors owed money by LLC Mueller Gourmet Catering are requested
to file their proofs of claim by Nov. 28, 2008, to:

         Komani Marjan
         Liquidator
         Uitikonerstr. 23
         8952 Schlieren
         Switzerland

The company is currently undergoing liquidation in Uznach.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 23, 2008.


PRO WATCH: Nov. 27 Set as Deadline to File Claims
-------------------------------------------------
Creditors owed money by LLC Pro Watch are requested to file their
proofs of claim by Nov. 27, 2008, to:

         Margerita Hertwich
         Liquidator
         Inzlingerstr. 61
         4125 Riehen
         Switzerland

The company is currently undergoing liquidation in Arlesheim.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 28, 2008.


RWWP HOLDING: Creditors Must File Proofs of Claim by Nov. 27
------------------------------------------------------------
Creditors owed money by JSC RWWP Holding are requested to file
their proofs of claim by Nov.  27, 2008, to:

         Peter Voigt
         Liquidator
         Weihermattstrasse 8
         8902 Urdorf
         Germany

The company is currently undergoing liquidation in Urdorf.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 5, 2008.


SALADIN INFORMATIK: Deadline to File Proofs of Claim Set Nov. 28
----------------------------------------------------------------
Creditors owed money by LLC Saladin Informatik are requested to
file their proofs of claim by Nov. 28, 2008, to:

         Stefan Saladin
         Guldistudstrasse 25
         8632 Tann
         Switzerland

The company is currently undergoing liquidation in Duernten.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 19, 2004.


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U K R A I N E
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ARGAMAX-44 LLC: Creditors Must File Claims by November 23
---------------------------------------------------------
Creditors of LLC Argamax-44 (code EDRPOU 33495604) have until
Nov. 23, 2008, to submit proofs of claim to:

         Mr. Victor Kirik
         Liquidator
         Ap. 127
         Verbitsky Str. 28
         02121 Kiev
         Ukraine
         Tel: 8-050-937-25-33

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 18, 2008.
The case is docketed as 15/629-b.

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

The Debtor can be reached at:

         LLC Argamax-44
         Promyshlennaya Str. 2
         02088 Kiev
         Ukraine


CHERNOMORSKY SHIPYARD: Creditors Must File Claims by Nov. 23
------------------------------------------------------------
Creditors of State Joint Stock Holding Company Chernomorsky
Shipyard (code EDRPOU 14312980) have until Nov. 23, 2008, to
submit proofs of claim to:

         Mr. Shentsev Igor
         Temporary Insolvency Manager
         Ap. 26
         Kirov Avenue, 26
         49101 Dniepropetrovsk
         Ukraine

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on June 17, 2008.
The case is docketed as 11/222/08.

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

The Debtor can be reached at:

         State Joint Stock Holding Company
         Chernomorsky Shipyard
         Industrialnaya Str. 1
         54011 Nikolaev
         Ukraine


DONBASS OJSC: Creditors Must File Claims by November 23
-------------------------------------------------------
Creditors of OJSC Donbass Industrial Chemical Assembly (code
EDRPOU 01414672) have until Nov. 23, 2008, to submit proofs of
claim to:

         Mr. Vasily Piteliak
         Temporary Insolvency Manager
         Ap. 4
         Sovetskaya Str. 10
         Bakhchisaray
         AR Krym
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 15, 2008.
The case is docketed as 45/113B.

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

The Debtor can be reached at:

         OJSC Donbass Industrial Chemical Assembly
         Chubar Str. 4
         Slaviansk
         84100 Donetsk
         Ukraine


INTERPACK LLC: Creditors Must File Claims by November 23
--------------------------------------------------------
Creditors of LLC Interpack (code EDRPOU 31330879) have until
Nov. 23, 2008, to submit proofs of claim to:

         Mr. Polischuk Alexander
         Temporary Insolvency Manager
         Ap. 1
         Vorovsky Str. 5
         83045 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on March 31, 2008.
The case is docketed as 27/95B.

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

The Debtor can be reached at:

         LLC Interpack
         Ap. 58
         Kuybishev Str. 246-a
         83122 Donetsk
         Ukraine


KHARKOV ENERGYREPAIR: Creditors Must File Claims by Nov. 23
-----------------------------------------------------------
Creditors of OJSC Kharkov Energyrepair Enterprise (code EDRPOU
05471276) have until Nov. 23, 2008, to submit proofs of claim to:

         Mr. O. Volkov
         Liquidator
         Metrostroyevsky Lane, 29-A
         61016 Kharkov
         Ukraine

The Arbitration Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent on  Oct. 15, 2008.
The case is docketed as B-48/98-08.

         The Economic Court of Kharkov
         Derzhprom 8th Entrance
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Debtor can be reached at:

         OJSC Kharkov Energyrepair Enterprise
         50 Years of USSR Avenue, 149
         Kharkov
         Ukraine


KRYZHOPOL CHEESE-MAKING: Creditors Must File Claims by Nov. 23
--------------------------------------------------------------
Creditors of OJSC Kryzhopol Cheese-Making Plant (code EDRPOU
00444470) have until Nov. 23, 2008, to submit proofs of claim to:

         Mr. Oleg Boyko
         Liquidator
         Kozitsky Str. 46,
         21050 Ukraine
         Tel: 8(04332)57-54-73

The Arbitration Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 18, 2008.
The case is docketed as 5/150-08.

         The Economic Court of Vinnica
         Hmelnickiy Str. 7
         21036 Vinnica
         Ukraine

The Debtor can be reached at:

         OJSC Kryzhopol Cheese-Making Plant
         K. Marks Str. 157
         Kryzhopol
         24600 Vinnica
         Ukraine


KUFA LLC: Creditors Must File Claims by November 23
---------------------------------------------------
Creditors of LLC Kufa (code EDRPOU 31990881) have until Nov. 23,
2008, to submit proofs of claim to:

         Mr. V. Latskan
         Liquidator
         Ap. 52
         Dovzhenko Str. 16V
         Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 12, 2008.
The case is docketed as 44/363-b.

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

The Debtor can be reached at:

         LLC Kufa
         Obolonsky Avenue, 23-A
         04205 Kiev
         Ukraine


MATEO LLC: Creditors Must File Claims by November 23
----------------------------------------------------
Creditors of LLC Mateo (code EDRPOU 31902439) have until
Nov. 23, 2008, to submit proofs of claim to:

         Mr. V. Latskan
         Liquidator
         Ap. 52
         Dovzhenko Str. 16V
         Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on June 10, 2008.
The case is docketed as 28/115-b.

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

The Debtor can be reached at:

         LLC Mateo
         Kurenevsky Lane, 19/5
         04073 Kiev
         Ukraine


PANORAMA LLC: Creditors Must File Claims by November 23
-------------------------------------------------------
Creditors of LLC Panorama (code EDRPOU 31521297) have until
Nov. 23, 2008, to submit proofs of claim to:

         Mr. V. Latskan
         Liquidator
         Ap. 52
         Dovzhenko Str. 16V
         Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 12, 2008.
The case is docketed as 44/266-b.

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

The Debtor can be reached at:

         LLC Panorama
         Obolonsky avenue, 23-A
         04205 Kiev
         Ukraine


UKREUROBUD LLC: Creditors Must File Claims by November 23
---------------------------------------------------------
Creditors of LLC Ukreurobud (code EDRPOU 33347203) have until
Nov. 23, 2008, to submit proofs of claim to:

         Mr. V. Latskan
         Liquidator
         Ap. 52
         Dovzhenko Str. 16V
         Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 12, 2008.
The case is docketed as 44/261-b.

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

The Debtor can be reached at:

         LLC Ukreurobud
         Obolonsky Avenue, 23-A
         04205 Kiev
         Ukraine


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U N I T E D   K I N G D O M
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ALUNNA TUBES: Goes Into Administration; 170 Jobs at Risk
--------------------------------------------------------
ALUnna Tubes Ltd. has gone into administration after running into
manufacturing problems and heavy financial losses over the last
ten months, Redditch Advertiser reports.

The company, the report relates, brought in Deloitte as
administrators.

"Unfortunately, ALUnna Tubes has not generated the level of sales
needed to cover its cost base," Dominic Wong, joint administrator
and partner in the Birmingham office of business advisory firm
Deloitte, was quoted by Redditch Advertiser as saying.

Mr. Wong, as cited by the report, disclosed some of ALUnna's 170
employees are likely to be made redundant in the coming days while
the administrators seek a potential buyer for the business, which
was sold by its previous owner The Luxfer Group earlier this year.
He noted the company had already begun a redundancy consultation
process with its workforce before the administration, the report
discloses.

ALUnna Tubes Ltd. manufactures extruded and precision drawn
aluminium tube products on its 40 acre site in Studley Road,
Redditch.


B.I. REALISATIONS: Names Joint Liquidators from PwC
---------------------------------------------------
Garth Calow and Russell Cash of PricewaterhouseCoopers LLP were
appointed joint liquidators of B.I. Realisations Ltd. on Oct. 23,
2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through PricewaterhouseCoopers LLP at:

         101 Barbirolli Square
         Lower Mosley Street
         Manchester
         M2 3PW
         England

The company manufactures trailer chassis and commercial vehicle
bodies.


BOALLOY FASTRUCK: Taps Joint Liquidators from PwC
-------------------------------------------------
Garth Calow and Russell Cash, PricewaterhouseCoopers LLP, were
appointed joint liquidators of Boalloy Fastruck Ltd. on Oct. 23,
2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through PricewaterhouseCoopers LLP at:

         101 Barbirolli Square
         Lower Mosley Street
         Manchester
         M2 3PW
         England

The company manufactures trailer chassis and commercial vehicle
bodies.


CABLE & WIRELESS: S&P Holds B Rating; Changes Outlook to Positive
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on U.K.-based telecommunications provider Cable & Wireless
PLC to positive from developing following the group's announcement
that it intends to demerge its business units.  The 'BB-' long-
term and 'B' short-term corporate credit ratings on C&W were
affirmed.

At the same time, the 'BB-' senior unsecured debt rating on the
GBP200 million notes due 2012 issued by C&W, and on the GBP200
million guaranteed notes due 2019 issued by related entity Cable &
Wireless International Finance B.V., were affirmed.  The recovery
rating on the bonds is unchanged at '3', indicating Standard &
Poor's expectation of meaningful (50%-70%) recovery in the event
of a payment default.

"The outlook revision primarily reflects the positive effect that
a demerger of the Cable & Wireless EAUS (Europe, Asia, and U.S.)
business unit and the International business unit will have on the
group's credit profile, as S&P understands from the company that
the two series of GBP200 million rated bonds would remain
supported by the operationally stronger International unit," said
Standard & Poor's credit analyst Helen O'Toole.

The outlook revision also acknowledges the improving trend in cash
generation at C&W's EAUS business.  Gross adjusted debt at
Sept. 30, 2008, was GBP817.5 million.

The EAUS business continues to show good growth, thanks to the
turnaround strategy launched in 2006 that focuses on a smaller
number of larger business customers.  This, together with the move
toward more profitable data and ongoing cost reductions, enabled
reported EBITDA margins to increase to 13.2% (GBP262 million)
compared with 8.0% a year earlier.  The International business
continued to perform well, with the broadband and mobile divisions
the clear growth drivers.

Should the integration of Thus deliver the expected benefits and
operating trends remain steady, there could be room for an
upgrade.

In the event that the demerger plans are dropped by C&W, S&P would
assess the implications in terms of its business and financial
strategy and the related consequences on the group's credit
profile.  Beyond these aspects, S&P expects no surprises in terms
of negative operating and cash flow trends.  S&P also expects a
continuously supportive liquidity position.  Should these
expectations not be met, the ratings or outlook would most likely
be negatively affected.


CATHEDRAL COURT: Appoints Joint Administrators from Pwc
-------------------------------------------------------
David James Kelly and Ian David Green of PricewaterhouseCoopers
were appointed joint administrators of Cathedral Court (Blackburn)
Ltd. on Oct. 30, 2008.

The company can be reached at:

         Cathedral Court (Blackburn) Ltd.
         Toad Hall, Blackburn Road
         Blackburn, Lancashire
         BB2 7AJ
         England


COLMIL LTD: Designates Joint Administrators from Grant Thornton
---------------------------------------------------------------
On Oct. 30, 2008, Joseph P. McLean and Keith Hinds of Grant
Thornton UK LLP were appointed joint administrators of:

   -- Colmil (Holdings) Ltd.
   -- Colmil Plant and Equipment Company Ltd.
   -- CoLMIL (Sales) Ltd.

These companies can be reached at:

         Abbotsford Road
         Gateshead
         Tyne and Wear
         NE10 0LF
         England


COMMSCOPE INC: Precision to Close Three Warwickshire Sites
----------------------------------------------------------
Precision Antenna, a unit of CommScope Inc., will close three
sites in Warwickshire by 2009, Birmingham Post reports.

According to the report, the closure of the company's sites at
Stratford-upon-Avon, Bidford and Long Marston will result to the
loss of 345 jobs.  However, the report notes the closure will take
place gradually to allow the company to honor existing contracts
and to give staff time to find new jobs.

CommScope, the report says, plans to move manufacturing to China,
India and the Czech Republic to save money.

Based in Stratford-upon-Avon, Precision Antenna is a satellite
dish manufacturer.

Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) --
http://www.commscope.com/-- is a provider of infrastructure
solutions for communication networks.  CommScope is also a
manufacturer of coaxial cable for broadband cable television
networks and a provider of environmentally secure cabinets for
DSL and FTTN applications.  CommScope has facilities in Brazil,
Australia, China and Ireland.

                        *     *     *

CommScope Inc. continues to carry 'BB-' corporate credit and 'B'
subordinated debt ratings from Standard & Poor's.  The ratings
were affirmed by S&P in October 2007.


EUROHOME UK: Fitch Downgrades Ratings on Eight Tranches
-------------------------------------------------------
Fitch Ratings has downgraded eight tranches of Eurohome UK Mort
gages plc.  The Outlooks were revised on four tranches to Negative
from Stable.  The recent rating action is caused by a combination
of the deterioration in the housing and mortgage market and trans
action performance.  The high weighted average loan-to-value ratio
of the loans in these transactions places them at considerable
risk to the current rapid fall in house prices.

In the agency's opinion, the underlying loans in these pools will
be particularly affected by the contraction in the mortgage market
as both high LTV products, as well as buy-to-let mortgage prod
ucts, have been removed from the mortgage market for borrowers
with any form of credit impairment.  In May 2008, these concerns
prompted Fitch to assign Negative Outlooks to all notes rated 'A-'
(A minus) and below. The rating actions are:

Eurohome UK Mortgages 2007-1 plc:

  -- Class A: affirmed at 'AAA'; Outlook revised to Negative from
     Stable

  -- Class M1: affirmed at 'AA'; Outlook revised to Negative from
     Stable

  -- Class M2: downgraded to 'BBB+' from 'A'; Outlook revised to
     Negative from Stable

  -- Class B1: downgraded to 'BB' from 'BBB'; Outlook remains
     Negative

  -- Class B2: downgraded to 'B-' (B minus) from 'BB'; Outlook
     remains Negative

  -- Class C: downgraded to 'CCC' from 'BB'; Distressed Recovery
     Rating of 'DR4' assigned

  -- MERCS affirmed at 'AAA'; Outlook Stable

Eurohome UK Mortgages 2007-2 plc:

  -- Class A1(A): affirmed at 'AAA'; Outlook Stable

  -- Class A1(B): affirmed at 'AAA'; Outlook Stable

  -- Class A2: affirmed at 'AAA'; Outlook Stable

  -- Class A3: affirmed at 'AAA'; Outlook revised to Negative from
     Stable

  -- Class M1: affirmed at 'AA-' (AA minus); Outlook revised to
     Negative from Stable

  -- Class M2: downgraded to 'BBB+' from 'A-' (A minus); Outlook
     remains Negative

  -- Class B1: downgraded to 'BB' from 'BBB-' (BBB minus); Outlook
     remains Negative

  -- Class B2: downgraded to 'B-'(B minus) from 'BB'; Outlook
     remains Negative

  -- Class C: downgraded to 'CCC' from 'BB'; Distressed Recovery
     Rating of 'DR4' assigned

In Q308, loans in arrears by more than three months continued to
increase, reaching 8.45% (Eurohome 2007-1) and 14.41% (Eurohome
2007-2) of the current portfolios outstanding.  The effects of the
first repossessions have been reported in the investor reports,
showing cumulative losses at 0.14% (Eurohome 2007-1) and 0.01%
(Eurohome 2007-2) of the portfolios at close.  With the current
volume of repossessed loans in the two portfolios (2.19% and 1.95%
of the current outstanding portfolios of Eurohome 2007-1 and Euro
home 2007-2 respectively) and the decline in house prices seen to
date, Fitch expects that further losses are likely to come through
in the forthcoming interest payment dates.  Reported weighted av
erage loss severities for the two transactions as of August 2008
were: 24.86% (Eurohome 2007-1) and 16.09% (Eurohome 2007-2).

The increasing volume of loans in arrears, in combination with the
number of loans in repossession seen to date, has led to a further
decline in excess spread generated.  According to the latest in
vestor reports, the reserve funds on both transactions have still
not been replenished to target amounts.  The investor report for
Eurohome 2007-1 reported a further reserve fund draw, to the
amount of GBP430,351, i.e. 6.83% of the target amount.  Although
the reserve fund on Eurohome Mortgages 2007-2 topped up by an ad
ditional GBP209,786, Fitch expects to see draws, as losses contin
ue to be realized.

The Distressed Recovery ratings on the excess spread notes reflect
Fitch's concern on the likelihood of principal payments being made
to the class C noteholders.

The class A1 and A2 notes of Eurohome 2007-2 are affirmed with
Stable Outlooks predominantly due to the level of credit support
available to these tranches in comparison to the other senior
notes in the transactions.  Should the performance of this deal
continue to deteriorate, further rating actions will be taken as
deemed appropriate.

The rating actions also reflect Fitch's concern about the quality
of the underlying collateral of the two pools.  Most of the loans
in the pool are considered highly adverse loans.  The weighted av
erage current LTV ratios on the two pools are reported at 82.74%
(Eurohome 2007-1) and 80.9% (Eurohome 2007-2).  In the current en
vironment with the decline in house prices, losses on such loans
are likely to increase over time.  Over 80% of the loans in the
two pools are interest-only and almost 90% are still on their
teaser rates.  In addition, the two portfolios contain a high por
tion of buy-to-let loans (52.7% in Eurohome 2007-1 and 28.9% in
Eurohome 2007-2).


GATMORE INVESTMENT: S&P Downgrades Counterparty Rating to 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term counterparty credit rating on Gartmore Investment Management
Ltd. to 'BB' from 'BB+'.  At the same time, the 'B' short-term
counterparty credit rating was affirmed.  The outlook is negative.

"The rating action reflects weakening leverage metrics and sizable
net redemptions.  Combined with tough equity markets, S&P expects
core earnings to become more pressured into 2009," said Standard &
Poor's credit analyst Nigel Greenwood.

Moreover, performance fees from hedge funds, which had previously
been strong, are now modest while investment performance across
its retail range is mixed.

Leverage metrics are on a weakening trend that is expected to
continue into 2009.  As a result of falling assets under
management S&P expects underlying management fee EBITDA (which is
S&P's primary earnings focus being the most conservative measure
as it excludes performance fees) to be lower in 2008 compared with
2007.  As a result, interest coverage (gross) is expected to be
nearer 2.5x in 2008 compared with 3.1x in 2007 while net debt to
management fee EBITDA is expected to rise to more than 4x in 2008
from 3.1x in 2007.  Unlike prior years, performance fees from
hedge funds will be modest in 2008 and net debt will remain high.

The prospects for earnings and leverage metrics in 2009 are
automatically weaker as lower AUM gradually feeds through to
management fee pressures.  Management continues to take a prudent
approach, but Gartmore is already a lean organization with limited
scope for further efficiencies without harming its franchise.

"The negative outlook reflects S&P's expectation that Gartmore's
business and financial risk will remain elevated while mixed
investment performance, weak sales, and industry pressures amid
falling equity markets persist," added Mr. Greenwood.

The ratings could be lowered if these pressures linger through
2009, especially if Gartmore's management fee EBITDA interest
coverage falls to less than 1.5x and/or net debt to management fee
EBITDA rises above 6x.  In addition, a sharp weakening in the
investment performance of its key European funds would accelerate
these pressures.

An outlook revision back to stable, which is deemed unlikely in
the near-term given weak equity markets and industry lag
pressures, requires evidence of better investment performance,
improving gross sales, more manageable net redemptions, and an
improvement in leverage metrics.


HOT SPRING: Brings in Administrators from Vantis
------------------------------------------------
Glyn Mummery and Jeremy French, client partners at Vantis Business
Recovery Services, a division of Vantis, the UK accounting, tax
and business advisory group, have been appointed on the
administration of Hot Spring, the UK dealership of hot tubs and
swim spas, headquartered in Chelmsford.

Hot Spring entered into administration on November 5, 2008.  The
UK franchise business imports goods into the UK from US based
manufacturer, Watkins, a leading global manufacturer of spas and
outside living products.  Hot Spring will continue trading for a
period of 4 weeks, with the full support of Watkins, while a buyer
is sought for the operation.  All service and maintenance
guarantees will be honored throughout the administration period,
and all deposit orders for hot tubs will be delivered.

Twelve of Hot Spring's 30 retail outlets in the UK will remain
open during the administration, as well as the business' 4
distribution centers.  Forty of the company's 117 employees have
unfortunately been made redundant.

Commenting on the administration, Glyn Mummery said: "Hot Spring
operates in the luxury retail market, which has been hit hard by
the downturn in the economy.  Due to cash flow pressures it was
sadly forced into insolvency.  However, we are confident of the
Hot Spring brand as the American manufacturer is committed to the
UK market."


LUCITE INT'L: Mitsubishi Rayon to Acquire Business for US$1.6BB
---------------------------------------------------------------
Lucite International Group Ltd. is to be acquired Mitsubishi Rayon
Co., Ltd. for a total cash consideration of approximately US$1.6
billion.  The acquisition, which is subject to approval by the
relevant regulatory authorities, is expected to be completed by
the end of January 2009.

Lucite is the world's leading manufacturer of methyl methacrylate
(MMA) and owner of the globally renowned Lucite(R) and Perspex
brands(R).  The Company was formed from an amalgamation of the
acrylics businesses of ICI and DuPont in 1993 and has been
majority owned by the private equity investor, Charterhouse
Capital Partners LLP, since 1999.  Lucite owns the new low cost
and proprietary MMA production route, known as Alpha technology.
The Company has invested in the development of this new
technology, which fundamentally changes the economics of MMA
manufacturing, and the first Alpha plant has begun to manufacture
MMA in Singapore in the last few days and will be fully
operational by the end of this year.

The acquisition will make Mitsubishi Rayon the global leader in
this market and confirms its position as the leading acrylics
manufacturer in the fast growing Asian markets.  The acquisition
will lift Mitsubishi Rayon's annual sales to approximately JPY600
billion, putting it well on the way towards achieving its target
of JPY1 trillion annual sales.  In the year ended
December 31, 2007, Lucite generated revenues of GBP849 million and
earnings before interest, tax, depreciation and amortization
(EBITDA) of GBP114 million.

Ian Lambert, Chief Executive of Lucite, said: "The Board of Lucite
International welcomes the acquisition of the Group by Mitsubishi
Rayon.  We believe the new combined enterprise will create an
opportunity for significant cross learning, productivity and
efficiency gains that will benefit our customers and stakeholders.
We look forward to working with Mitsubishi Rayon to realize the
full potential from the combination of our two companies.

"We would also like to take this opportunity to recognize the
support of Charterhouse Capital Partners who have enabled the
group to sustain the highest standards of safe operation and to
grow by, for example, investing in new facilities in China and the
development of our revolutionary Alpha technology including the
latest investment in Singapore.

Masanao Kambara, President of Mitsubishi Rayon, added: "The
acquisition of Lucite will give us an unprecedented range of
production technologies in the industry, enabling us to adapt more
flexibly to raw material trends and better serve our customers.
In addition, the two companies' proprietary technological
expertise is also expected to lead to improved cost efficiency,
bearing fruit in the form of further growth in the enlarged
group's revenues and earnings.  We are delighted to have concluded
our agreement with the Board of Lucite and welcome them to the
Mitsubishi Rayon group."

Lucite was advised by Deutsche Bank and Merrill Lynch and
Mitsubishi Rayon by Credit Suisse Group and Mitsubishi UFJ
Securities.

                About Lucite International

Headquartered in Southampton, England, Lucite International --
http://www.lucite.com/-- is a global leader in the design,
development and manufacture of acrylic-based products.  The
Company has an annual turnover in excess of US$1.5billion and
employs a workforce of over 2100 people serving customers in over
100 countries worldwide.

                     *     *     *

As reported in the TCR-Europe on Oct. 24, 2008, Standard & Poor's
Ratings Services placed on CreditWatch with negative implications
its 'B' long-term corporate credit rating on U.K.-based methyl
methacrylate monomers producer and distributor Lucite
International Group Holdings Ltd.


LUCITE INT'L: S&P Keeps 'B' Rating; Revises Watch to Positive
-------------------------------------------------------------
Standard & Poor's Ratings Services maintains its 'B' long-term
corporate credit rating on United Kingdom-based methyl
methacrylate monomers producer and distributor Lucite
International Group Holdings Ltd. on CreditWatch but revised the
implications to positive from negative.  The CreditWatch revision
follows the announcement by Japan-based Mitsubishi Rayon Co. Ltd.
(MRC; not rated) to acquire Lucite in a US$1.6 billion cash offer
including the prepayment of Lucite's debt subject to regulatory
approval.  The rating was placed on CreditWatch with negative
implications on Oct. 22, 2008, due to a weakening operating
performance and liquidity concerns.

At the same time, the CreditWatch status of the senior secured
debt ratings on the bank loans was revised to positive from
negative.  The recovery rating on the bank loans remains unchanged
at '2', indicating Standard & Poor's expectation of substantial
(70%-90%) recovery for senior secured lenders in the event of a
payment default.

"The CreditWatch placement reflects S&P's belief that both the
acquirer and the combined entity have a stronger rating profile
than Lucite has," said Standard & Poor's credit analyst Sophia
Dedemadis.

As of March 31, 2008, MRC had US$4.2 billion in revenues and
reported funds from operations to debt of 35.5%.  The combined
entity would become a leading producer of monomers with production
assets and access to the main MMA production technologies.  The
acquisition price includes the repayment of Lucite's existing
debt, which was GBP803 million including payment-in-kind debt
as of June 30, 2008.  Given the change-of-control clause in the
loan documents, which triggers repayment in the event of an
acquisition, it is S&P's understanding that Lucite's bank group
has provided covenant relief to facilitate the acquisition
process.  MRC has announced that the transaction will be financed
via funds by Bank of Tokyo-Mitsubishi UFJ Ltd. (A+/Stable/A-1).
S&P do not have the details of the financing nor have S&P reviewed
the sale agreement, which was approved by both Lucite's and MRC's
boards before the announcement.

The ratings had been on CreditWatch with negative implications due
to Lucite's deteriorating operating results and the subsequent
negative effect on liquidity.  If the acquisition is not
completed, the upward rating potential would disappear and
therefore S&P would revise the ratings to reflect only Lucite's
credit quality.

S&P will resolve the CreditWatch once all regulatory approvals are
obtained and any terms and conditions under the agreement are met
resulting in a successful completion of the acquisition.  At that
time, if sufficient information has been provided, S&P will
evaluate the business profile, financial structure, and corporate
structure of the combined entity to determine the extent of the
upward potential of the rating.


MGT REALISATIONS: Appoints Joint Liquidators from PwC
-----------------------------------------------------
Garth Calow and Russell Cash, PricewaterhouseCoopers LLP were
appointed joint liquidators of MGT Realisations Ltd. on
Oct. 23, 2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through PricewaterhouseCoopers LLP at:

         101 Barbirolli Square
         Lower Mosley Street
         Manchester
         M2 3PW
         England

The company manufactures trailer chassis and commercial vehicle
bodies.


MICAP PLC: Brings in Joint Administrators from PKF
--------------------------------------------------
Kerry Bailey and Jonathan Newell of PKF (UK) LLP were appointed
joint administrators of Micap Plc on Oct. 28, 2008.

The company can be reached at:

         Micap Plc
         Pemberton Business Centre
         Enterprise House, Richmond Hill
         Pemberton, Greater Manchester
         WN5 8AA
         England


MORTGAGES PLC: Fitch Lowers Ratings on Two Tranches
---------------------------------------------------
Fitch Ratings downgraded two tranches and affirmed eight tranches
of two Mortgages plc transactions, UK non-conforming RMBS.  The
Outlooks were revised on four tranches to Negative from Stable,
while the Outlook on class B of Mortgages No. 6 plc was revised to
Positive from Stable due to the strong build-up in credit enhance
ment and de-leveraging effect.  The rating actions are:

Mortgages No. 6 plc:

  -- Class A2 (ISIN XS0206259888): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN XS0206260464): affirmed at 'AA+'; Outlook
     revised to Positive from Stable

  -- Class C (ISIN XS0206260894): affirmed at 'A+'; Outlook Stable

  -- Class D (ISIN XS0206261603): affirmed at 'BBB+'; Outlook
     revised to Negative from Stable

  -- Class E (ISIN XS0206261942): downgraded to 'BB+' from 'BBB';
     Outlook revised to Negative from Stable

Mortgages No. 7 plc:

  -- Class A2 (ISIN XS0225922110): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN XS0225922383): affirmed at 'AA+'; Outlook
     Stable

  -- Class C (ISIN XS0225922466): affirmed at 'A+'; Outlook Stable

  -- Class D (ISIN XS0225922623): affirmed at 'BBB+'; Outlook
     revised to Negative from Stable

  -- Class E (ISIN XS0225922896): downgraded to 'BB' from 'BB+';
     Outlook revised to Negative from Stable

The downgrades and revision of Outlooks to Negative on the junior
tranches of the two transactions follow Fitch's concern about the
increasing level of arrears and repossessions.  According to the
latest investor reports, loans in arrears by more than three
months continued to increase, reaching 23.5% (Mortgages 6) and
20.19% (Mortgages 7) of the current portfolios outstanding.
Consequently, the notes that had been redeeming on a pro rata
basis have reverted to a sequential pay down after breaching the
arrears trigger of 20% of the current portfolio outstanding.  On
the other hand, this should help build up the credit enhancement
levels of the senior tranches, which has been reflected in Fitch's
revision of Outlook on the class B notes of Mortgages 6 to
Positive from Stable.

The two transactions have reported cumulative losses at 0.54%
(Mortgages 6) and 0.43% (Mortgages 7) of the portfolio at close.
Meanwhile, using the data available on sold repossessions, Fitch
has calculated cumulative weighted average loss severities at
9.28% and 8.74% on Mortgages 6 and 7 respectively.  In its
analysis, the agency has taken into consideration the current
volume of repossessed loans where the properties remain unsold
(currently at 3.11% and 4.24% of the outstanding portfolios of
Mortgages 6 and Mortgages 7, respectively), as well as the
declining house prices seen to date, to assess future losses.
Fitch believes that the continued decline in available excess
spread, which was reported at GBP265,629 (Mortgages 6) and
GBP364,989 (Mortgages 7), in combination with further losses,
could result in potential reserve fund draws.

According to the latest investor reports, the reserve funds on
both transactions were at their required amounts.  In the case of
Mortgages 6 it was at GBP2.95m while in Mortgages 7, it was at
GBP5.32m after amortization was halted due to the 20% three-month
plus arrears trigger.  Fitch believes that the amortization of
this reserve fund is unlikely to re-occur in the near future.

Both transactions have also been placed under additional stress
due to the lack of an effective hedge between Bank of England Base
Rate and Libor.  The loans in both portfolios pay a rate linked to
BBR, whereas the notes pay a rate linked to Libor.  The current
dislocation between BBR and Libor means that the absence of an
effective hedge is resulting in a reduction in excess spread for
both transactions


RICHARD LLOYD: Taps Joint Administrators from Baker Tilly
---------------------------------------------------------
Guy Edward Brooke Mander and Graham Paul Bushby of Baker Tilly
Restructuring and Recovery LLP were appointed joint administrators
of Richard Lloyd Ltd. on Oct. 24, 2008.

The company can be reached at:

         Richard Lloyd Ltd.
         Cromwell Works
         Tenbury Wells
         Worcestershire
         WR15 8LF
         England

The company sells motor spare parts.


SOUTHEAST LTD: Calls in Joint Administrators from BDO Stoy
----------------------------------------------------------
Shay Bannon and Martha Thompson of BDO Stoy Hayward LLP were
appointed joint administrators of Southeast Ltd. on
Oct. 29, 2008.

The company can be reached through BDO Stoy Hayward at:

         55 Baker Street
         London
         W1U 7EU
         England

The company is a property developer.


T & S ACCESSORIES: Taps Joint Administrators from Tenon
-------------------------------------------------------
Robert C. Keyes and Paul W. Ellison of Tenon Recovery were
appointed joint administrators of T & S Accessories Ltd. on
Oct. 31, 2008.

The company can be reached through  Tenon Recovery at:

         Aquarium, 1-7 King Street
         Reading
         Berkshire
         RG1 2AN
         England


* PPF Took Five Insolvent UK Pension Schemes in October 2008
------------------------------------------------------------
The PPF took five more schemes under its wing last month,
resulting in a further 1,313 people around the UK now receiving
compensation -=96 or will do so in the future.

The Pension schemes that transferred to the PPF last month were:

    * Holmes Group Retirement Benefits Scheme
    * The McCowans Limited 1989 Pension Scheme
    * North Eastern Farmers Limited Pension Plan
    * Radix Employees Defined Contribution Plan
    * Tomkinsons Carpets Limited Pension Scheme

To date:

    * 66 schemes are now in the PPF

    * 20, 262 people are receiving or will receive compensation
      in the future

    * The PPF paid out more that GBP3.2million in compensation
      between October 2 and November 1

    * The average yearly compensation is GBP4,700 per person

    * The oldest recipient is 103, and the youngest is six
      years old

    * The PPF now has a total of 265 schemes in its assessment
      period and a total of 120, 722 members.

              About the Pension Protection Fund

The PPF -- http://www.pensionprotectionfund.org.uk/-- is a
statutory fund run by the Board of the Pension Protection Fund, a
statutory corporation established  under the provisions of the
Pensions Act 2004.

The PPF's main function is to provide compensation to members of
eligible defined benefit pension schemes, when there is a
qualifying insolvency event in relation to the employer, and where
there are insufficient assets in the pension scheme to cover the
Pension Protection Fund level of compensation.


* S&P Reports Loan Breaches Double Among Europe's High-Yield Firms
------------------------------------------------------------------
The financing difficulties being experienced by speculative-grade
companies will likely intensify as much of Europe enters into
recession and private equity companies are no longer able to
justify supporting portfolio companies with new equity, says a
research report published by Standard & Poor's Ratings Services.
The report reveals that covenant breaches, requests for waivers,
and related restructurings of loans to highly-leveraged companies
in Europe have risen over the past year, reflecting slowing
economic growth and weaker operating performance.

"For the 12 months to Oct. 30, 2008, S&P found there were 38
covenant breaches, waiver requests, or related restructurings in
S&P's sample of speculative-grade issuers, compared with 18 in the
previous 12 months--an increase of over 100%," said Standard &
Poor's leveraged finance research analyst Taron Wade.  "In
addition, the time from financing to experiencing problems with
covenant tests has decreased dramatically in 2007 and 2008,
compared with 2006."

Covenant breaches can be early warning signs that companies are
experiencing difficulties.  Financial covenants are included in
loan documentation and provide minimum levels of cash flow
coverage and interest coverage or maximum levels of leverage and
capital expenditure.  Failing to meet these conditions over a
defined period can constitute a default, giving lenders the
opportunity to reset lending terms, or in a worse-case scenario
ask for their money back.

The report outlines the findings of a study of more than 800
speculative-grade industrial companies in Europe (that is, those
rated 'BB+' or lower), using publicly-available sources and
information obtained through S&P's public ratings process and
S&P's private credit estimate portfolio.  Sponsor-related activity
makes up about 90% of leveraged loan issuance on average, and
therefore approximately 90% of companies examined.

Weaker operating performance has been the common theme for
companies with covenant difficulties.  When private equity
purchased portfolio companies during the boom years many predicted
aggressive and steady EBITDA growth rates, which helped to justify
high purchase multiples.  But S&P understands that the turbulence
in the economic environment since the liquidity crunch began in
mid-2007 has made meeting these projections very difficult for
many companies, particularly those operating in sectors dependent
on consumer demand or in highly cyclical or seasonal businesses.

"The acceleration in companies breaching covenants or needing
resets is indicative of the very difficult economic conditions
that highly leveraged companies are facing," added Ms. Wade.  "In
S&P's view, the next two to three years will be very difficult for
investors in this asset class as not only breaches, but defaults,
accelerate as well."


* Fitch Reports European Corporates' Demands Upon Banks' Capital
----------------------------------------------------------------
Fitch Ratings says in a new report that European banks are likely
to prioritize their deployment of capital and as a result
corporate borrowers may be at risk.  Competing demands for limited
capital include further potential write-offs in banks' trading
books, given continued illiquid markets; banks' Q408 and
prospective 2009 loan-loss provisioning given the deteriorating
economic environment; and finally the potential draw down of
banks' commitments to lend to corporate borrowers under undrawn
revolving credit facilities.  Given the more immediate nature of
further potential write-offs in banks' trading books, and their
Q408 and prospective 2009 loan-loss provisioning, Fitch is
concerned that many banks may want to directly or indirectly ra
tion RCF usage.

To date, after internal cash generation, European corporates have
relied upon committed RCFs for surety of liquidity in times of
financial strain and also the less tangible promise of
"relationship banking" based on banks' past willingness and abili
ty to fund companies in distress.  Current market dynamics suggest
that relationship banking will not override the reality of banks'
rationing of scarce capital and the arrival of governments as
direct shareholders.  Furthermore, given new government influence
over banks, will banks have the unfettered discretion to maintain
funding levels to existing corporates, let alone rescue distressed
(whether bank-induced liquidity-distressed or economic
environment-distressed) corporates, if those corporates and/or
their sectors are not domestic political priorities?

Despite variables, such as the availability and pricing of funds
from the capital markets (equity, bonds, commercial paper across
different currencies and markets) and the extent to which
corporates' operational performance requires draw down under these
facilities, Fitch does not expect all committed RCFs to be fully
drawn down over the near future.  However, in a worst case
scenario the agency calculates, if un-drawn committed lending is
drawn down in full over the near term, additional capital may be
required for European banks above that recently injected by
governments.  The IMF has published its estimate of global bank
committed corporate lines at EUR6,000 billion.  Fitch has
calculated that committed lending from the top 20 EMEA banks as at
December 2007 totaled at least EUR3,000 billion.  Working with the
Financial Institutions team within Fitch, using Basel II
approaches to assess asset quality and Fitch's assumptions as to
these EMEA banks' existing allocation of capital to their
commitment to lend, the agency calculates that if the above
GBP3,000 billion amount is drawn, these banks will require up to
EUR60 billion to EUR80 billion of additional capital to maintain
existing levels of capitalization.

Having profiled companies' cash flow to debt maturities, and
assumed de facto closed bond markets, Fitch believes that few
investment-grade European corporates are at risk of default due to
near-term (pre-2010) refinancing risk - provided that the existing
contractually available lines remain available for drawdown.
However, in the current environment, Fitch believes there is a
real risk that any distressed large corporates would face a
heightened risk that additional support from banks may not be
procured.  It also expects that banks' favored corporates for
lending will include (1) the top 200-300 corporates with global
operations; (2) entities with a good investment-grade credit risk
profile, well managed, preferably including cash-in-hand; and (3)
companies which are able to offer auxiliary income (swaps, forex,
cash management, potential bond or M&A activity) or other forms of
fee-based income for the banks.

The agency also notes that assuming spreads contract and pricing
conditions offer a practical alternative, the European corporate
bond market could greatly expand and develop as capital-
constrained banks no longer constitute the main funding to
European corporates.  However, in the event of an absence of
available bank lending, if a capital market solution does not
prove amenable to corporate borrowers, management and stakeholders
may have to seek government support.  Having rescued their banks,
Fitch believes it is plausible that certain European countries may
offer support to companies which they consider key to their
economies.


* EU Commission Adopts Proposal to Regulate Credit Rating Agencies
------------------------------------------------------------------
The European Commission has put forward a proposal for a
Regulation on credit rating agencies.  This proposal is part of a
package of proposals to deal with the financial crisis and adds to
Commission's proposals on Solvency II, Capital Requirements
Directive, Deposit Guarantee Schemes and accounting.  The new
rules are designed to ensure high quality credit ratings which are
not tainted by the conflicts of interest which are inherent to the
ratings business.

Internal Market and Services Commissioner Charlie McCreevy said:
"I want Europe to adopt a leading role in this area.  Our proposal
goes further than the rules which apply in other jurisdictions.
These very exacting rules are necessary to restore the confidence
of the market in the ratings business in the European Union "

The proposal lays down conditions for the issuance of credit
ratings which are needed to restore market confidence and increase
investor protection.  It introduces a registration procedure for
credit rating agencies to enable European supervisors to control
the activities of rating agencies whose ratings are used by credit
institutions, investment firms, insurance, assurance and
reinsurance undertakings, collective investment schemes and
pension funds within the Community.

Credit rating agencies will have to comply with rigorous rules to
make sure (i) that ratings are not affected by conflicts of
interest, (ii) that credit rating agencies remain vigilant on the
quality of the rating methodology and the ratings and (iii) that
credit rating agencies act in a transparent manner.  The proposal
also includes an effective surveillance regime whereby European
regulators will supervise credit rating agencies.

New rules include the following:

    * Credit rating agencies may not provide advisory services.

    * They will not be allowed to rate financial instruments if
      they do not have sufficient quality information to base
      their ratings on

    * They must disclose the models, methodologies and key
      assumptions on which they base their ratings

    * They will be obliged to publish an annual transparency
      report

    * They will have to create an internal function to review
      the quality of their ratings

    * They should have at least three independent directors on
      their boards whose remuneration cannot depend on the
      business performance of the rating agency.  They will be
      appointed for a single term of office which can be no
      longer than five years.  They can only be dismissed in
      case of professional misconduct.  At least one of them
      should be an expert in securitization and structured
      finance.

Some of the proposed rules are based on the standards set in the
International Organisation of Securities Commissions (IOSCO) code.
The proposal gives those rules a legally binding character.  Also,
in those cases where the IOSCO standards are not sufficient to
restore market confidence and ensure investor protection the
Commission has proposed stricter rules.
The Commission started work to propose legislation in this area in
the summer of 2007 when there were first indications of
malpractice in the ratings business.  This proposal is the outcome
a thorough and comprehensive impact assessment as well as
extensive consultations.  Important input has been given by the
Committee of European Securities Regulators and the European
Securities Markets Expert Group, Member States, the ECB, major
credit rating agencies and other stakeholders (industry
associations from the insurance, securities and banking sectors,
information providers, etc.).

                          Background

In October 2007 EU Finance Ministers agreed to a set of
conclusions on the crisis (the 'Ecofin Roadmap') which included a
proposal to assess the role played by credit rating agencies and
to address any relevant deficiencies.  The EU Council of 20 June
and 16 October 2008 called for a legislative proposal to
strengthen the rules on credit rating agencies and their
supervision at EU level, considering it a priority to restore
confidence and proper functioning of the financial sector.


* Fitch Comments on European Commission Credit Rating Proposals
---------------------------------------------------------------
As the stress in the global financial markets has evolved over the
last year, Fitch Ratings has worked closely and constructively
with policy makers and regulators as they have reviewed the role
of the credit rating agencies in financial markets.  Fitch
recognizes that strengthened market confidence in the opinions of
rating agencies is an important aspect of working through these
challenging times.

Fitch has regularly voiced support for a globally consistent
approach to the regulation of credit rating agencies, ideally one
that is based upon the market consensus represented by IOSCO's
recently revised code of conduct for rating agencies.

The proposals by the European Commission are the next step in this
process.  Fitch welcomes the Commission's commitment to 'setting
up a regulatory framework in the EU comparable to that applied in
the US and based on the same principles.'  Fitch is also pleased
to see a provision in the proposal explicitly prohibiting
interference by the regulatory authorities in the content of
Fitch's credit opinions.

While Fitch will continue to search for common ground on a few key
provisions in the proposals, Fitch will engage in a balanced and
constructive way with the Commission, the European Council and the
European Parliament as the approval process moves forward.


* S&P Says Bursting Maturing Debt Pipeline Raises Doubt in Europe
-----------------------------------------------------------------
Funding pressures in Europe have escalated sharply since September
as stress in the global financial system has accelerated, said an
article published by Standard & Poor's.  Against this backdrop,
S&P estimate that a cumulative total of US$2.1 (EUR1.6) trillion
of debt rated by Standard & Poor's Ratings Services will mature in
Europe beginning in the fourth quarter of 2008 and ending in 2011.

Given the soaring cost of capital, the sizable pipeline of debt
coming due suggests substantial refinancing risk, according to the
article.

"However, the ultimate credit impact needs to be placed in the
context of a financial landscape increasingly peppered with
government guarantees that are still taking shape," said Diane
Vazza, head of Standard & Poor's Global Fixed Income Research
Group.  For example, part of the US$2.3 (EUR1.7) trillion
committed by some European countries on Oct. 13 to shore up the
banking system is likely to be earmarked for guaranteeing medium-
term issuance and may thereby offset refinancing pressure, even if
private markets fail to revive fully.

"Other mitigating factors allude to some protection for covered
bonds, which historically have been a safe and cost-effective
funding mechanism for secured debt, where refinancing could be
less problematic because covered bonds are already eligible for
refinancing with central banks," said Ms. Vazza.

With a 72% share of the total, the financial segment accounts for
a significant majority of the US$2.1 (EUR1.6) trillion.  Although
nonfinancials have a much smaller share, maturity exposure is high
in capital-intensive sectors, such as telecommunications and
utilities, which have a cumulative total of US$121 (EUR95) billion
and US$79 (EUR62) billion, respectively, coming due in the same
timeframe.  Not all countries in Europe are equally placed in
terms of refinancing risk, with Germany leading the pack based on
cumulative exposure, with US$696 (EUR544) billion, largely
stemming from the financial segment.


* Moody's Reports European Speculative Default Rate to Reach 9.7%
-----------------------------------------------------------------
The European issuer-weighted corporate speculative-grade default
rate for the 12 months to the end of October 2008 rose to 1.0%
from 0.7% at end-September, according to Moody's Investors
Service.  It is expected to climb to 2.2% by year end and to reach
9.7% a year from now.

On a global basis, Moody's speculative-grade default rate edged
higher to 2.8% at end-October from a revised level of 2.7% at end-
September.  One year ago, the global default rate was 1.1%.  The
US default rate also increased in October, to 3.3% from a revised
3.1% one month previously.

Moody's default rate forecasting model predicts that the global
speculative-grade default rate will rise to 4.3% by the end of
2008 and more than double to 10.4% by October 2009, with the U.S.
rate hitting 11.4%.

"European default rates are not expected to climb as sharply as US
and global default rates due to the relatively higher ratings
currently assigned to European issuers," says Kenneth Emery,
Moody's Director of Corporate Default Research.

For Europe, Moody's model predicts a rise in the speculative-grade
default rate to 2.2% by end-2008.  For the US, the predicted end-
2008 rate is 4.9%.

Moody's model indicates that in Europe the durable consumer goods
sector is likely to encounter the highest default rate in the
coming year.  In the US, the most troubled sector will, according
to the model, be consumer transportation.

Moody's distressed index closed at 48.5% as at end-October 2008,
more than 60% higher than 29.7% at end-September and the highest
level since 1996 when the index began.

Worldwide, a total of ten Moody's-rated corporate issuers
defaulted in October.  Three of them Moody's re domiciled in the
US and another three in Iceland, while there was one issuer from
each of the UK, Mexico, Japan and Hong Kong.  Five of the ten
defaulted issuers Moody's re rated investment grade one year ago.

This brings the year-to-date global total of defaulted companies
to 71, compared to only 16 in the same period last year.  Of the
71 defaulters, 59 are from North America and eight are from
Europe.

As a percentage of dollar volume outstanding, the global
speculative-grade default rate closed at 2.4%, unchanged from its
revised level from September.  The corresponding European rate was
also unchanged from previous month at 0.9%.  The current European
default rate is down from 1.0% in October 2007.

In the leveraged loan market, a total of four Moody's-rated
issuers defaulted in October.  None of these four issuers are
included in Moody's loan default rate as their loans are unrated.
The trailing 12-month loan default rate among US leveraged loan
issuers remained unchanged at 2.9% from September to October.


* Moody's Reports Stable Outlook for EMEA Electric & Gas Utilities
------------------------------------------------------------------
The outlook for the EMEA electric and gas utilities sector is
stable, reflecting the companies' strong fundamentals and ability
to generate cash flow, Moody's Investors Service says in a new
report.  The stable outlook also reflects the companies' flexible
approach to planned investment programs to help maintain their
ratings.  The report expresses Moody's expectations for
fundamental credit conditions in the industry for the next 12-18
months.

"Moody's believes most European utilities' earnings and cash flows
should remain relatively resilient over this period, even as the
economic downturn takes hold in many of their markets," says
Monica Merli, Managing Director in Moody's Infrastructure Finance
Group.  Indeed, utilities' earnings, cash flows and financial
profiles are expected to be underpinned by resilient demand,
locked-in prices and the ability to trim capex budgets.

Moody's believes large capex programs remain a key ratings driver
for the utilities companies, as many need to maintain and upgrade
their aging networks and diversify generation capacity.  "However,
Moody's does expect that some companies will examine their
required returns more critically, given the ongoing tight credit
markets and Moody's weakening economies," acknowledges Ms. Merli.

In Moody's view, the impact from rising political risk is likely
to be moderated by security of supply considerations and the
importance of supporting infrastructure investments during an
economic downturn.  "In any event, Moody's already factors in a
higher degree of regulatory and political risk into its ratings
for companies in more sensitive areas, like Central and Eastern
Europe," explains Ms. Merli.  "But Moody's will continue to
monitor for rating impact in case these risks translate into a
more onerous burden for companies."

Overall, Moody's views the liquidity profile of rated EMEA
utilities as sound.  "While it may gradually erode over the coming
year under pressure from tougher economic conditions and financial
markets, Moody's still expects it to remain adequate," says Ms.
Merli.

Moody's currently rates 71 utilities corporate families in the
EMEA electric and gas utilities sector, some of which are groups
where there are multiple subsidiary ratings within.


* Moody's Says Global Speculative Default Rate to Reach 10.4%
-------------------------------------------------------------
Moody's Investors Service's default rate forecasting model now
predicts that the global speculative-grade issuer-weighted
corporate default rate will climb to 4.3% by the end of this year
and rise sharply to 10.4% a year from now.

"Speculative-grade corporate default rates are expected to climb
sharply throughout 2009 as Moody's baseline forecast now
incorporates a deep and protracted US recession.  Corporate
default rates in this cycle will likely match or exceed the peak
levels reached in the previous two US recessions of 1990-91 and
2000-01," says Moody's Director of Corporate Default Research
Kenneth Emery.

Moody's global speculative-grade default rate edged higher to 2.8%
in October, from September's revised level of 2.7% and 1.1% a year
ago.  Measured on a dollar volume basis, the default rate remained
unchanged at 2.4% from September's revised level.  A year ago, the
global dollar-weighted bond default rate stood at 0.7%.

For both U.S. and European speculative-grade issuers, Moody's
forecasting model foresees default rates increasing to 4.9% and
2.2%, respectively, by the end of this year and 11.2% and 9.7% a
year from now.

The U.S. speculative-grade default rate increased from a revised
level of 3.1% in September to 3.3% in October.  At this time last
year, the U.S. default rate was 1.1%.  Measured on a dollar-
weighted basis, the default rate finished at 2.7%, unchanged from
last month's revised figure.  At this time last year, the U.S.
dollar-weighted bond default rate stood at 0.6%.

Across industries over the coming year, Moody's default rate
forecasting model indicates that the Consumer Transportation
sector will be the most troubled in the U.S. and the Durable
Consumer Goods sector will have the highest default rate in
Europe.

Moody's speculative-grade corporate distress index--which measures
the percentage of rated issuers that have debt trading at
distressed levels--rose more than 60% from September's 29.7% to
48.5% in October, marking the highest level since Moody's launched
the index in 1996.  A year ago, the index was much lower at 4.6%.

There Moody's were a total of ten rated corporate debt defaulters
in October.  Three are from U.S. and Iceland, respectively and one
each from United Kingdom, Mexico, Japan, and Hong Kong.

Year-to-date, a total of 71 Moody's-rated corporate issuers have
defaulted this year, compared with 16 defaults for the same period
last year.  Of the 71 defaulters, 59 are from the U.S. and Canada
and eight are from Europe

In the leveraged loan market, a total of four Moody's-rated
issuers defaulted in October.  None of these four issuers are
included in Moody's loan default rate as their loans are unrated.
The trailing 12-month U.S. leveraged loan default rate remained
unchanged at 2.9% from September to October.  A year ago, the
leveraged loan default rate was much lower at 0.3%.


* S&P Says Speculative-Grade Credit Spread Tightens to 1,379 BPS
----------------------------------------------------------------
The Standard & Poor's investment-grade spread widened marginally
yesterday, expanding 4 basis points, to 493 bps from 489 bps.  The
speculative-grade spread, on the other hand, contracted 22 bps, to
1,379 bps from 1,401 bps.  Most rating category spreads contracted
as well, with 'AA' at 397 bps, 'A' at 454 bps, 'BB' at 909 bps,
and 'B' at 1,453 bps.  The 'BBB' and 'CCC' spreads widened, to 590
bps and 2,550 bps, respectively, the latter hitting a new five-
year high.

Most industry spreads tightened as well, with financial
institutions at 652 bps, banks at 583 bps, and telecommunications
at 699 bps, an average of 5 bps tighter than Friday's figures.
Industrials, on the other hand, widened slightly to 820 bps from
818 bps, and utilities remained unchanged at 502 bps.

With speculative-grade defaults on the rise, a higher
preponderance of credit downgrades, and a general malaise about
the future of the economy, S&P expects spreads to remain at their
elevated levels for some time until confidence is restored to the
market.


* S&P Says Market Perception of Creditworthiness Affects Insurers
------------------------------------------------------------------
In a confidence-sensitive industry, many insurers have seen their
financial strength acutely affected by market perception of their
credit quality, according a report published by Standard & Poor's
Ratings Services.  "Ratings are based on fundamental analysis;
however, when assessing creditworthiness, the speed with which
confidence can be lost in an insurer is an important consideration
for us," Said Standard & Poor's Credit Analyst Mark Puccia.  When
a crisis strikes, insurers that lack sufficient resources to cover
all contingent calls on liquidity could quickly be insolvent,
despite having otherwise healthy business operations and strong
capital.  American International Group is an example where the
combination of mark-to-market losses on securities backed by its
credit default swaps and rating-related triggers required the
company to post significant collateral.  S&P previously recognized
AIG's potential mortgage-related losses and collateral
requirements, but the rapid decline in asset values and market
confidence exceeded S&P's expectations, causing the rating action.
This created a huge liquidity strain on what S&P had viewed as a
healthy company: This limited its ability to access funding.

S&P consistently have considered triggers, material adverse
condition clauses, and other covenants when assessing an insurer's
financial strength.  Even in normal times, S&P evaluates how an
insurer is positioned to handle stress scenarios, balancing
sources of liquidity available in these scenarios against its
liability structure and potential liquidity calls.  S&P believes
triggers elevate default risk, and therefore it is appropriate
that ratings address this added risk.  While two companies may be
virtually identical in terms of operations and balance sheet, if
one has material contingent liquidity calls and very tight
triggers, S&P usually will consider it to have a higher credit
risk.


* S&P Says IG Members' Negative Actions Focus on Fin'l Flexibility
------------------------------------------------------------------
While many members of the International Group of Protection &
Indemnity Clubs have been hit by the recent turmoil in the global
financial markets, Standard & Poor's Ratings Services believes
that the IG's very strong financial flexibility will enable most
of the clubs to replenish their free reserves over the rating
horizon.  The IG's very strong competitive position supports S&P's
view.  It arises from the IG's quasi-monopoly, which makes the
market less attractive to potential entrants.  Consequently, any
negative rating actions on any of the IG members are likely to be
limited.  However, if any particular club within the IG were to
suffer a deterioration in its competitive position or prospective
financial flexibility, this would likely lead to downward pressure
on its ratings.  A failure to adequately address the erosion of
free reserves derived purely from investment losses is less likely
to lead to negative rating actions.  S&P does not expect any
positive rating actions over the next two years.

Historically, most of the clubs have had aggressive investment
strategies geared toward equities.  More recently, some clubs have
invested significant amounts in hedge funds.  By the beginning of
2008, some reduction of risk had already taken place, and during
October this process accelerated, with more clubs reducing or
almost exiting their equity portfolios and reconsidering their
investments in hedge funds.

Nevertheless, some of the clubs do potentially face reductions of
between 20%-30% of their free reserves at the next financial year-
end, purely because of realized and unrealized investment losses.
Standard & Poor's views those clubs that have actively managed
their investment risks to a level within their risk appetite
favorably.

Were it not for the IG's very strong competitive position and very
strong financial flexibility (defined as the ability to impose
significant premium increases and make unbudgeted supplementary
calls at renewal), most clubs would have already faced downward
pressure on their ratings.

By contrast, out of the interactively rated non-IG marine mutuals,
S&P have recently lowered the ratings on Norwegian Hull Club to A-
/Stable/-- from A/Negative/--, and revised the outlook on
Sunderland Marine Mutual Insurance Co. Ltd. (BBB+/Stable/--) to
stable from positive.  In both cases, the rating action followed
reductions in capital.

The ongoing financial turmoil and the uncertainty surrounding the
potential impact of large claims falling within the IG pool and
subpool, most of which tend to be reported between the last and
first quarters of the calendar year, mean that the clubs will need
to pay closer attention to next February's renewal to replenish
their free reserves.  This is despite having achieved average
general increases at the last five annual renewals of
approximately 50% in aggregate.  Of course, no club could have
foreseen the magnitude of October's financial turmoil on Feb. 20,
2008.  S&P's conversations with the clubs to date indicate that
most of the clubs which have not yet announced their general
increases for next year will be asking for general increases of
more than 10%, or even making unbudgeted supplementary calls.

Although S&P expects more IG clubs to announce high general
increases, it remains to be seen how shipowners will react to the
next renewal given the current economic downturn, which is already
showing adverse consequences for the shipping sector.  The dry
bulk and container sectors have already been hit very hard and
consequently the clubs will face more resistance to premium
increases from these operators, particularly from the fixed
premium charterers whose business has historically been
profitable.

Overall, the quality of the clubs' membership will play an
important role in achieving adequate pricing levels.
Nevertheless, in general S&P derives comfort from the IG clubs'
approach to the next renewal as it will assist most clubs in
bringing capital-adequacy levels, as measured according to S&P's
proprietary model, to a level that is more consistent with their
published ratings.  However, those clubs that impose significantly
higher general increases or make unbudgeted supplementary calls
will face pressure on their prospective competitive position
within the IG.  This may in turn lead to negative rating actions,
not only because of deterioration in these clubs' competitive
position within the IG but also because of reduced prospective
financial flexibility.


* BOOK REVIEW: Crafting Solutions for Troubled Businesses:
              A Disciplined Approach to Diagnosing and
              Confronting Management Challenges
----------------------------------------------------------
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List Price: US$74.95

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Crafting Solutions for Troubled Businesses: A Disciplined Approach
to Diagnosing and Confronting Management Challenges, by Stephen J.
Hopkins and S. Douglas Hopkins, will change the way you think
about the problems of businesses in distress.

The book will be of great value to turnaround management
practitioners, lenders facing loan covenant defaults, Board
Members of struggling companies who need a basis for evaluating
and assisting their management to realistically confront problems,
and private equity firm management facing problems with portfolio
companies or seeking to identify turnaround investment
opportunities.

                            *********

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.  Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites
O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, Marie
Therese V. Profetana and Peter A. Chapman, Editors.

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

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

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

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


                 * * * End of Transmission * * *