TCREUR_Public/081210.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, December 10, 2008, Vol. 9, No. 245

                            Headlines

A U S T R I A

ACE MEDIEN: Claims Registration Period Ends December 30
DARIUS LLC: Claims Registration Period Ends December 30
IMPULS LLC: Claims Registration Period Ends January 1
MEDITHERM INFRARED: Claims Registration Period Ends Dec. 30
STUBENBERGER LLC: Claims Registration Period Ends January 1


C Z E C H   R E P U B L I C

PORCELA PLUS: Court Opens Bankruptcy Proceedings


F R A N C E

AKERYS HOLDINGS: Moody's Cuts Rating on EUR300 Mln Notes to Ca
KORREDEN SA: Moody's Downgrades Corporate Family Rating to 'Caa3'
STADE FINANCE: FGIC Rating Cuts Cue S&P's Junk Rating on Notes


G E R M A N Y

ABENDKURIER BETEILIGUNGS: Claims Registration Period Ends Jan. 27
CAPITAL COMMUNICATION: Claims Registration Period Ends Dec. 30
GEISTERINSEL FILMPRODUKTION: Claims Registration Ends Jan. 26
KOMPAKT GMBH: Claims Registration Period Ends January 7


I R E L A N D

ARGON CAPITAL: S&P Junks Rating on EUR17.961 Million Notes
EIRLES TWO: Moody's Junks Rating on EUR100 Mln Super Senior Notes
FUTURA GAEL: Sunway-Led Consortium Eyes Takeover
WATERFORD WEDGWOOD: Talks with Institutional Investors Continue


K A Z A K H S T A N

B-OIL LLC: Proof of Claim Deadline Slated for January 23
ER STROY NUR: Creditors Must File Claims by January 27
IDEAL-SANTECH STROY: Claims Filing Period Ends January 27
GLOBAL ENERGY: Creditors' Claims Due on January 23
NUR XXI: Claims Registration Ends January 27

SHIN STROY: Proof of Claim Deadline Slated for January 27
UG KAZ BUILDING: Creditors Must File Claims by January 27


K Y R G Y Z S T A N

GOLDEN FUEL: Creditors Must File Claims by January 16
GASOLINA LLC: Creditors Must File Claims by January 16
STROY TECH LLC: Creditors Must File Claims by January 16


N E T H E R L A N D S

ICESAVE: Dutch Gov't Agrees to Pay Part of Dutch Savers' Money
MOTIF CAPITAL: Moody's Lowers Rating on EUR45 Mln CDO Notes to Ba3


R U S S I A

GRANIT-2 LLC: Creditor Must File Claims by December 28
LEHMAN BROTHERS: Sells Loans Deal W/ Russian Unit to Nomura Europe
LIK CJSC: Samara Bankruptcy Hearing Set February 17
PRIOKSKIY CONSTRUCTION: Ryazan Bankruptcy Hearing Set March 10
SOCHI-OIL-STROY LLC: Court Names Temporary Insolvency Manager

STROY-GRAD LLC: Creditors Must File Claims by January 28
TEKSIB LLC: Tumen Bankruptcy Hearing Set March 19
TRANSLINE VN: Creditors Must File Claims by January 28

* RUSSIA: S&P Cuts Foreign Currency Credit Rating, Outlook Neg.


S P A I N

DON PISO: Seeks Creditor Protection Following Parent's Collapse


S W E D E N

FORD MOTOR: Volvo to Axe 3,400 Jobs in Sweden and Abroad
FORD MOTOR: Seeks to Extricate Itself From Rivals' Woes
FORD MOTOR: September 30 Balance Sheet Upside-Down by US$2 Billion
FORD MOTOR: Names Jost Capito as Global Performance Director


S W I T Z E R L A N D

BOUTIQUE CANA: Creditors Must File Proofs of Claim by Dec. 19
CAFFE FORTE: Deadline to File Proofs of Claim Set Dec. 19
COMPATRIA FINANCE: Creditors Have Until Dec. 19 to File Claims
GENERAL MOTORS: Gov't & UAW May Get Stake in Firm
GENERAL MOTORS: International Operations Still Profitable

OBJECTIVE 2020: Proofs of Claim Filing Deadline is Dec. 19
PROGENTA JSC: Creditors' Proofs of Claim Due by Dec. 19


U K R A I N E

ATLANTA BUILDING: Creditors Must File Claims by December 21
EDELWEISS LLC: Creditors Must File Claims by December 21
EXPRIM LLC: Creditors Must File Claims by December 21
FRESH-LINE LLC: Creditors Must File Claims by December 21
FUND-RESERVE LLC: Creditors Must File Claims by December 21

MEDIA COMPASS: Creditors Must File Claims by December 21
MIKADO LLC: Creditors Must File Claims by December 21
PACK-SERVICE LLC: Creditors Must File Claims by December 21
PHANDI LLC: Creditors Must File Claims by December 21
S.O.V. LTD: Creditors Must File Claims by December 21

SANTRIS LLC: Creditors Must File Claims by December 21
UKRAINIAN INDUSTRIAL-INVESTMENT: Claims Deadline on December 21

* UKRAINE: Gazprom Seeks Payment of US$2.4 Billion Debt


U N I T E D   K I N G D O M

BLUEPRINT INTERIOR: Appoints Joint Liquidators from Tenon
DOLPHIN HOTEL: Appoints Joint Administrators from KPMG
DONN FOUR: Names Joint Administrators from BDO Stoy
DONN THREE: Taps Joint Administrators from BDO Stoy
EMPYREAN FINANCE: Moody's Downgrades Ratings on 10 Note Classes

EUROMASTR PLC: S&P Downgrades Rating on Class E Notes to 'B'
EXPRESS COMPOSITES: Appoints Joint Administrators from PwC
FEBREY LTD: Names Joint Liquidators from Grant Thornton
ICESAVE: FSCS Urges Remaining 24,000 Savers to Reclaim Money
INVENSYS PLC: Taps Sir Nigel Rudd as Chairman

LAVELLE DESIGN: Names Joint Administrators from Grant Thornton
LEHMAN BROTHERS: Inks Pact with PwC on Winding Down of U.K Assets
SILVER GROUP: Taps Joint Liquidators from Tenon Recovery
SIMPLY SAUSAGES: Taps Joint Liquidators from Smith & Williamson
STERLING SCAFFOLDING: Names Joint Administrators from Tenon

UKLI LTD: Names Joint Liquidators from Deloitte


X X X X X X X X

* S&P Notes EU Metals, Mining Sector Debt Recovery Prospect Risks
* Moody's: European Speculative-Grade Default Rate to Reach 12.5%
* S&P Says Recent Corporate Events Affect Up to 75% European CDOs


                         *********


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


ACE MEDIEN: Claims Registration Period Ends December 30
-------------------------------------------------------
Creditors owed money by LLC Ace Medien & Verlag (FN 304289i) have
until Dec. 30, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Peter Sommerer
         Nottendorfer Gasse 11
         1030 Wien
         Austria
         Tel: 503 17 90
         Fax: 503 17 90 444
         E-mail: office@sommerer.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Jan. 13, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 30, 2008, (Bankr. Case No. 4 S 157/08b).


DARIUS LLC: Claims Registration Period Ends December 30
-------------------------------------------------------
Creditors owed money by LLC Darius (FN 134440g) have until
Dec. 30, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Peter Bubits
         Elisabethstrasse 2
         2340 Moedling
         Austria
         Tel: 02236/42210
         Fax: 02236/42 210-25
         E-mail: peter.bubits@bkb-partner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Jan. 13, 2009, for the
examination of claims at:

         Trade Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Guntramsdorf, Austria, the Debtor declared
bankruptcy on Oct. 29, 2008, (Bankr. Case No. 11 S 112/08v).


IMPULS LLC: Claims Registration Period Ends January 1
-----------------------------------------------------
Creditors owed money by LLC Impuls (FN 196175v) have until
Jan. 1, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         LLC Kreissl & Pichler & Walther Rechtsanwalte
         Rathausplatz 4
         8940 Liezen
         Austria
         Tel: 03612-22997
         Fax: 03612-22997-83
         E-mail: hkp1@hkp1.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Dec. 17, 2008, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         Leoben
         Austria

Headquartered in Liezen, Austria, the Debtor declared bankruptcy
on Nov. 13, 2008, (Bankr. Case No. 17 S 59/08g).


MEDITHERM INFRARED: Claims Registration Period Ends Dec. 30
-----------------------------------------------------------
Creditors owed money by LLC Meditherm Infrared (FN 301593w) have
until Dec. 30, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Daniel Lampersberger
         Esteplatz 4
         1030 Wien
         Austria
         Tel: 712 33 30-0
         Fax: 712 33 30-30
         E-mail: kanzlei@engelhart.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:40 a.m. on Jan. 13, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1607
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 11, 2008, (Bankr. Case No. 28 S 141/08a).


STUBENBERGER LLC: Claims Registration Period Ends January 1
-----------------------------------------------------------
Creditors owed money by LLC Stubenberger (FN 217746s) have until
Jan. 1, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Erwin Bajc
         Mittergasse 28
         8600 Bruck an der Mur
         Austria
         Tel: 03862-51462
         Fax: 03862-51462-10
         E-mail: rechtsanwaelte@bzt.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 12:30 p.m. on Jan. 14, 2009, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         Leoben
         Austria

Headquartered in Knittelfeld, Austria, the Debtor declared
bankruptcy on Nov. 10, 2008, (Bankr. Case No. 18 S 66/08v).


===========================
C Z E C H   R E P U B L I C
===========================


PORCELA PLUS: Court Opens Bankruptcy Proceedings
------------------------------------------------
The municipal court in Prague has opened bankruptcy proceedings
against Porcela Plus, which employs 2,000 people, Czech News
Agency reports.

Porcela Plus receiver Jiri Mayer backed the move as he does not
believe a change in the company's organizational structure would
help, the report relates.

Porcela Plus, which owns china maker Karlovarsky porcelan, has
been in insolvency since October 20 due to the lack of operating
capital, the report recounts.

The book value of Porcela Plus assets is at over CZK1.6 billion,
60 percent of which is a stake in Karlovarsky porcelan, the report
states.

Porcela Plus, which also has two subsidiaries in Slovakia, has
goods for CZK183.8 million in its stores and shops, the report
reveals.  The company is owed CZK423.8 million by buyers.

The report however notes that the value of Porcela Plus assets is
roughly twice as high as the claims which 80 creditors filed in
the past weeks.

According to the report, the highest claims, totaling CZK1.685
billion, were registered by the firms BCT and Karlovarsky porcelan
and Concordia, while banks claim a further CKZ1.225 billion.  Of
them, the biggest creditor is HSBC bank with an over CZK1 billion
claim, the report says.

Karlovarsky porcelan, the report discloses, is also in bankruptcy
proceedings.  The fate of the company will be decided today,
December 10.


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


AKERYS HOLDINGS: Moody's Cuts Rating on EUR300 Mln Notes to Ca
--------------------------------------------------------------
Moody's Investors Service has downgraded to Caa3 from Caa1 the
corporate family rating and probability of default rating of
Korreden S.A., which is the ultimate holding company for the
French residential property developer Akerys, and to Ca from Caa2
the rating of the EUR300 million of Senior Floating-Rate Notes
dues 2014 issued by Akerys Holdings SA, a finance subsidiary of
Korreden.  The Loss Given Default assessment is LGD5 (76.32%).
The outlook for these ratings is stable.

The two-notch downgrade reflects the increased likelihood of
default due not only to the sharply deteriorating economic
conditions, which should continue to pressure sales volumes in the
French buy-to-let housing market; but also due to the company's
lack of financial flexibility caused by its highly leveraged
capital structure - total debt to total book capitalization is
above 70%.  While Akerys' management acted quickly to protect the
company from the steep drop in customer demand by reducing
inventory levels and cutting overheads, there is an increasing
possibility that the capital of the business may have to be
restructured because the high level of debt threatens the
company's viability.

Akerys' level of reservations and notarized sales, both indicators
of future revenues, fell dramatically in Q1 2009 by 40% and 43%
respectively when compared to Q1 2008, which had already fallen by
one-third from the previous year.  This indicates about twice the
level of decline in sales volumes previously incorporated into
Moody's financial forecast and the timing of a possible recovery
in the housing market is extremely difficult to predict at
present.  At this reduced level of activity, Moody's believes that
the company will eventually suffer from a lack of liquidity
through its inability to generate positive cash flows from
operations and burn through its cash resources over the next four
quarters.

In the agency's view, the overall recovery in the event of default
for the group's creditors and lenders will be approximately 50%;
however, due to the structurally subordinated position of the note
holders, they are not expected to make a meaningful recovery of
funds.

Debt affected:

  -- Akerys Holdings SA backed senior secured notes to Ca from
     Caa2.

The last rating action for Korreden SA was October 30, 2008 when
the corporate family rating was downgraded to Caa1 from B2 and
placed on review for a possible further downgrade.  Moody's
analytical approach to Korreden SA is in accordance with Moody's
rating methodology for homebuilders (please refer to Rating
Methodology: Homebuilding, December 2004), which maps to a B1.

Headquartered in Toulouse, France, Akerys is the largest player in
the buy-to-let segment of the French homebuilding market with
7,335 housing units sold in 2007/08.  The Korreden group's main
shareholder is investment holding company Qualis SCA (not rated),
with a 78% interest.  In the financial year to June 30, 2008, the
group reported revenues of EUR790 million.


KORREDEN SA: Moody's Downgrades Corporate Family Rating to 'Caa3'
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Caa3 from Caa1 the
corporate family rating and probability of default rating of
Korreden S.A., which is the ultimate holding company for the
French residential property developer Akerys, and to Ca from Caa2
the rating of the EUR300 million of Senior Floating-Rate Notes
dues 2014 issued by Akerys Holdings SA, a finance subsidiary of
Korreden.  The Loss Given Default assessment is LGD5 (76.32%).
The outlook for these ratings is stable.

The two-notch downgrade reflects the increased likelihood of
default due not only to the sharply deteriorating economic
conditions, which should continue to pressure sales volumes in the
French buy-to-let housing market; but also due to the company's
lack of financial flexibility caused by its highly leveraged
capital structure - total debt to total book capitalization is
above 70%.  While Akerys' management acted quickly to protect the
company from the steep drop in customer demand by reducing
inventory levels and cutting overheads, there is an increasing
possibility that the capital of the business may have to be
restructured because the high level of debt threatens the
company's viability.

Akerys' level of reservations and notarized sales, both indicators
of future revenues, fell dramatically in Q1 2009 by 40% and 43%
respectively when compared to Q1 2008, which had already fallen by
one-third from the previous year.  This indicates about twice the
level of decline in sales volumes previously incorporated into
Moody's financial forecast and the timing of a possible recovery
in the housing market is extremely difficult to predict at
present.  At this reduced level of activity, Moody's believes that
the company will eventually suffer from a lack of liquidity
through its inability to generate positive cash flows from
operations and burn through its cash resources over the next four
quarters.

In the agency's view, the overall recovery in the event of default
for the group's creditors and lenders will be approximately 50%;
however, due to the structurally subordinated position of the note
holders, they are not expected to make a meaningful recovery of
funds.

Debt affected:

  -- Akerys Holdings SA backed senior secured notes to Ca from
     Caa2.

The last rating action for Korreden SA was October 30, 2008 when
the corporate family rating was downgraded to Caa1 from B2 and
placed on review for a possible further downgrade.  Moody's
analytical approach to Korreden SA is in accordance with Moody's
rating methodology for homebuilders (please refer to Rating
Methodology: Homebuilding, December 2004), which maps to a B1.

Headquartered in Toulouse, France, Akerys is the largest player in
the buy-to-let segment of the French homebuilding market with
7,335 housing units sold in 2007/08.  The Korreden group's main
shareholder is investment holding company Qualis SCA (not rated),
with a 78% interest.  In the financial year to June 30, 2008, the
group reported revenues of EUR790 million.


STADE FINANCE: FGIC Rating Cuts Cue S&P's Junk Rating on Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the notes
issued by Stade Finance a.r.l. to 'CCC' from 'BB'.  The notes were
also removed from CreditWatch negative, where they were placed on
June 10, 2008.

This action follows the lowering of the financial strength rating
on Financial Guaranty Insurance Co. to 'CCC' from 'BB', and the
removal of the rating from CreditWatch negative, on Nov. 24, 2008.
FGIC provides financial guarantees for payments on the rated notes
in cases where transaction cash flows are insufficient to make
payments.

As of Dec. 8, S&P continues to receive no information that would
allow us to maintain an underlying rating on the transaction.
Therefore, the rating on the notes issued by Stade Finance will
continue to reflect the rating of FGIC, pending receipt of under
lying performance information that might allow us to
maintain an underlying rating.  If S&P does not to receive such
information, S&P will ultimately consider withdrawing the rating.

The Stade Finance transaction closed in July 1998 and aimed to
provide refinancing to the Consortium Stade de France, owner of a
30-year concession for the construction and operation of the Stade
de France in Paris.


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


ABENDKURIER BETEILIGUNGS: Claims Registration Period Ends Jan. 27
-----------------------------------------------------------------
Creditors of Abendkurier Beteiligungsgesellschaft mbH have until
Jan. 27, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:40 a.m. on Feb. 20, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Leer
         Hall 101
         Woerde 5
         26789 Leer
         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:

         Ulf Spieker
         Schützenstrasse 4a
         26670 Uplengen-Remels
         Germany
         Tel: 04956/928510
         Fax: 04956/9285120

The District Court opened bankruptcy proceedings against the
company on Nov. 27, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Abendkurier Beteiligungsgesellschaft mbH
         Muehlenstrasse 135 - 139
         26789 Leer
         Germany

         Attn: Dirk Riedesel, Manager
         Am Stadtpark 35
         26871 Papenburg
         Germany


CAPITAL COMMUNICATION: Claims Registration Period Ends Dec. 30
--------------------------------------------------------------
Creditors of Capital Communication GmbH have until Dec. 30, 2008,
to register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 12, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Luebeck
         Hall 256
         Am Burgfeld 7
         23568 Luebeck
         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:

         Walter Broehan
         Muehlenstrasse 56
         23552 Luebeck
         Germany

The District Court opened bankruptcy proceedings against the
company on Nov. 28, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Capital Communication GmbH
         Attn: Peter Frank, Manager
         Hebbelstr. 8
         22085 Hamburg
         Germany


GEISTERINSEL FILMPRODUKTION: Claims Registration Ends Jan. 26
-------------------------------------------------------------
Creditors of Geisterinsel Filmproduktion GmbH have until Jan. 26,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Feb. 23, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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. Sven-Holger Undritz
         Jungfernstieg 51
         20354 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Nov. 27, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Geisterinsel Filmproduktion GmbH
         (formerly S.H.I.P. HAMBURG Filmproduktion 1 GmbH)
         Attn: Dr. Robin Houcken, Manager
         Jenfelder Allee 80
         22043 Hamburg
         Germany


KOMPAKT GMBH: Claims Registration Period Ends January 7
--------------------------------------------------------
Creditors of Kompakt GmbH have until Jan. 7, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Jan. 28, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Offenbach am Main
         Hall 166N
         Kaiserstrasse 16-18
         63065 Offenbach am Main
         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:

         Julia Kappel-Gnirs
         Bleichstr. 2 - 4
         60313 Frankfurt am Main
         Germany
         Tel: 069/91 30 92 29
         Fax: 069/91 30 92 30

The District Court opened bankruptcy proceedings against the
company on Nov. 26, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Kompakt GmbH
         Attn: Abdurrahman Kuru, Manager
         Einsteinstr. 9
         63303 Dreieich
         Germany


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


ARGON CAPITAL: S&P Junks Rating on EUR17.961 Million Notes
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC' from 'B-' its
credit rating on the EUR17.961 million limited-recourse secured
variable-rate notes series 40 issued by Argon Capital PLC.

S&P has lowered the rating after the rating on the underlying
obligor was lowered.  The underlying obligor provides collateral
to the transaction and its long-term rating acts as a supporting
rating to the series 40 notes.


EIRLES TWO: Moody's Junks Rating on EUR100 Mln Super Senior Notes
-----------------------------------------------------------------
Moody's Investors Service has downgraded EUR145 million of
Leveraged Super Senior transactions with spread plus loss
triggers.

These transactions have been further impacted by the most recent
spread movements for corporate and financial names underlying the
transactions.  Spreads on the underlying portfolios have continued
widening over the last month, with the weighted average credit
spread of the underlying portfolios now being in the 670 basis
points range for Eirles Two Limited Series 187 and 330 basis
points range for Motif Capital B.V. Series 2005-7.

The current ratings are mainly driven by the probability that the
portfolio spreads will reach the spread triggers, which would most
likely lead to an unwind of the structure and an approximate 100%
loss to investors.  The average credit ratings on the underlying
portfolios are in the Ba2 range for Eirles Two Limited Series 187
and Baa3 range for Motif Capital B.V. Series 2005-7.

The rating actions are:

Eirles Two Limited:

EUR100,000,000 Series 187 Floating Rate Credit Linked Leveraged
Super Senior Secured Notes due 2010

  -- Current Rating: Caa3, under review for possible downgrade
  -- Prior Rating: Baa2, under review for possible downgrade
  -- Prior Rating Action Date: 27 October 2008

Motif Capital B.V.:

Series 2005-7 EUR45,000,000 Long-Short Variable Redemption Limited
Recourse Leveraged CDO Notes due June 2012

  -- Current Rating: Ba3, under review for possible downgrade
  -- Prior Rating: Baa2, under review for possible downgrade
  -- Prior Rating Action Date: 27 October 2008

Moody's monitors these transactions using primarily the
methodology described in Moody's Rating Methodology titled A
Description of Moody's Tool for Monitoring Leveraged Super Senior
Transactions (August 2008).


FUTURA GAEL: Sunway-Led Consortium Eyes Takeover
------------------------------------------------
Ian Kehoe at the Sunday Business Post Online reports that an
international consortium, led by Irish-owned travel group Sunway,
is said to be in talks to acquire Dublin charter airline Futura
Gael.

According to the report, it is understood the consortium, which is
believed to include Turkish charter airline Pegasus and a
significant British investor, has tabled a multimillion-euro bid
to rescue Futura Gael.

It is thought the consortium has emerged as the lead bidder,
the report discloses.  A number of senior members of the existing
Futura Gael management team are also part of the consortium, the
report states.

The rescue plan however is subject to High Court approval, and
must also be ratified by aviation regulators to ensure that it is
awarded an aviation license, the report notes.

KPMG corporate recovery partner Kieran Wallace, who has been in
talks with a number of prospective investors in recent weeks,  was
granted an extension of the examinership period by the High Court
last Monday to conclude a deal, the report recounts.

Mr. Wallace, the report says, must return to the court on December
19 to outline the final scheme of arrangement.

Citing a petition filed with the court, the report reveals
The Irish operation of Futura Gael racked up debts of about EUR10
million.

As reported in the TCR-Europe on Oct. 16, 2008, Mr. Justice Peter
Kelly appointed Kieran Wallace of KPMG as examiner to Futura Gael
after he was convinced that the grounded charter airline has a
reasonable prospect of survival.  The Commission for Aviation
Regulation revoked the airline's license.

Mr. Wallace and an independent accountant told the judge that the
airline might survive provided certain conditions were met, the
report noted.

The airline, the report recalled, had ceased operations on
September 8 after its Spanish parent, Futura, ran into
difficulties because of the high price of oil.

Based in Swords, Dublin, Futura Gael was the Irish arm of the
Majorca-based Futura Group, which operated 38 aircraft and had
revenues of EUR335 million.


WATERFORD WEDGWOOD: Talks with Institutional Investors Continue
---------------------------------------------------------------
Waterford Wedgwood plc in a press statement on Friday said that
its senior lenders have agreed to an extension of the forbearance
referred to in the December 1, 2008 announcement for the period
through December 12, 2008 while discussions with interested
institutional investors continue to be advanced.

The company disclosed it is also progressing discussions with its
senior lenders and their advisers to further extend the
forbearance period, with appropriate intermediate milestones for
the period of any such extension.

Assuming progress regarding new investment in the company
continues to be made, the directors have reason to believe these
senior lender discussions will reach a satisfactory conclusion,
the company said.

In its interim financial report for a 26 week period ending
October 4, 2008, the company noted that failure to obtain further
forbearance from the senior lenders would compromise its ability
to continue as a going concern.

As reported in the TCR-Europe on Dec. 3, 2008, the company
deferred semi-annual coupon payment on its 9 7/8% EUR166,028,000
Mezzanine Notes.  The company has the benefit of a 30 day grace
period, starting on December 1, 2008, in respect of such coupon
payment.

                   About Waterford Wedgwood

Headquartered in Dublin, Ireland, Waterford Wedgwood plc
-- http://www.waterfordwedgwood.com/-- designs, manufactures
and markets branded luxury lifestyle tabletop products,
including high quality crystal, fine bone china, fine porcelain
and earthenware.  The company's portfolio of established luxury
lifestyle brands includes Waterford, Wedgwood, Royal Doulton and
Rosenthal.

                        *     *     *

As reported in the TCR-Europe on Dec. 3, 2008, Standard & Poor's
Ratings Services said that it lowered to 'SD' from 'CCC' its long-
term corporate credit rating on Ireland-based luxury table- and
dinnerware manufacturer Waterford Wedgwood PLC.  At the same time,
S&P lowered to 'D' from 'CC' the rating on the EUR166 million
subordinated mezzanine notes due 2010.  The recovery rating of '6'
remains unchanged, and indicates S&P's expectation of negligible
(0%-10%) recovery.

As reported by the TCR-Europe on Dec. 3, 2008, Moody's Investors
Service downgraded Waterford Wedgwood plc Corporate Family Rating
to Caa3 from Caa1, the Probability of Default Rating to Ca from
Caa2 and the senior subordinated rating on the EUR166 million
notes due in 2010 to Ca from Caa3.  The ratings were also placed
under review for further possible downgrade.  The action reflects
the company's decision not to make the semi-annual coupon payment
on the subordinated notes.

On Dec. 3, 2008, the TCR-Europe reported that Fitch Ratings
downgraded Waterford Wedgwood plc's Long-term Issuer Default
Rating to 'C' from 'CCC'.  The Short-term IDR is currently at 'C'.
Both ratings are placed on Rating Watch Negative.  The agency has
simultaneously taken these rating actions on two of Waterford's
debt instruments:

  -- Senior tranche B downgraded to 'CCC' from 'B-'(B minus);

  -- Recovery Rating downgraded to 'RR3' from 'RR2'; placed
     on RWN

  -- EUR166 million mezzanine notes due 2010 downgraded to 'C'
     from 'CC';

  -- Recovery Rating affirmed at 'RR6'


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


B-OIL LLC: Proof of Claim Deadline Slated for January 23
--------------------------------------------------------
LLC B-Oil has declared insolvency.  Creditors have until
Jan. 23, 2009, to submit written proofs of claim to:

         LLC B-Oil
         Brusilovsky Str. 56-52
         Almaty
         Kazakhstan
         Tel: 8 (7272) 91-72-24


ER STROY NUR: Creditors Must File Claims by January 27
------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLC Er Stroy Nur insolvent.

Creditors have until Jan. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan


IDEAL-SANTECH STROY: Claims Filing Period Ends January 27
---------------------------------------------------------
LLC Ideal-Santech Stroy has declared insolvency.  Creditors have
until Jan. 27, 2009, to submit written proofs of claim to:

         LLC Ideal-Santech Stroy
         Auezov Str. 3-3
         Otegen Batyr
         Ilyisky
         Almaty
         Kazakhstan


GLOBAL ENERGY: Creditors' Claims Due on January 23
--------------------------------------------------
LLC Global Energy Service Company has declared insolvency.
Creditors have until Jan. 23, 2009, to submit written proofs of
claim to:

         LLC Global Energy Service Company
         Moldagulova Str. 18-2
         Aktobe
         Aktube
         Kazakhstan


NUR XXI: Claims Registration Ends January 27
--------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLC NUR XXI insolvent.

Creditors have until Jan. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Room 228
         Auelbekov Str. 139a
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (7162) 25-79-32


SHIN STROY: Proof of Claim Deadline Slated for January 27
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLC Construction Company Shin Stroy insolvent.

Creditors have until Jan. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Room 228
         Auelbekov Str. 139a
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (7162) 25-79-32


UG KAZ BUILDING: Creditors Must File Claims by January 27
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLC Ug Kaz Building insolvent.

Creditors have until Jan. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan


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


GOLDEN FUEL: Creditors Must File Claims by January 16
-----------------------------------------------------
LLC Golden Fuel KG has declared insolvency.  Creditors have until
Jan. 16, 2009, to submit written proofs of claim to:

         Pobeda Ave. 45
         Balykchy
         Issyk-Kul
         Kyrgyzstan


GASOLINA LLC: Creditors Must File Claims by January 16
------------------------------------------------------
LLC Gasolina has declared insolvency.  Creditors have until
Jan. 16, 2009, to submit written proofs of claim.

The company can be reached at: (+996 312) 31-44-91


STROY TECH LLC: Creditors Must File Claims by January 16
--------------------------------------------------------
LLC Construction Company Stroy Tech has declared insolvency.
Creditors have until Jan. 16, 2009, to submit written proofs of
claim to:

         LLC Construction Company Stroy Tech
         Kulatov Str. 1a
         Bishkek
         Kyrgyzstan


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


ICESAVE: Dutch Gov't Agrees to Pay Part of Dutch Savers' Money
--------------------------------------------------------------
Xinhua reported last week that the Dutch government has agreed to
pay out part of Dutch savers' lost deposits with Icesave, whose
parent Landsbanki was put under government control in October.

Under the terms of the guarantee scheme initially agreed by Dutch
Finance Minister Wouter Bos and his Icelandic counterpart, the
first EUR20,887 of each savings account will be paid by Iceland
while the Netherlands will reimburse the rest, to a maximum of
EUR100,000, the report recalled.

The balance between EUR20,887 and EUR100,000 was originally
expected to be funded by Dutch banks, each paying a sum in line
with the size of their share in the market, the report recounted.
However, the report noted this was vehemently opposed by Dutch
banks, especially market leader Rabobank, which has a 40 percent
share in the Dutch savings market.

Mr. Bos, as cited by the report, said Tuesday last week that Dutch
banks will only have to fund the difference between the sum
guaranteed by Iceland and some EUR38,000, while the remainder,
some EUR62,000, will be paid by the Dutch treasury.

About 120,000 Dutch savers have some EUR1.6 billion (about US$2.02
billion ) in deposits with Icesave, which has since been frozen,
the report stated.

                        About Icesave

Icesave is the UK branch of Landsbanki Islands hf.  It is an EEA
bank that is authorized by the Fjarmalaeftirlitio (FME), the
financial services regulator in Iceland.


MOTIF CAPITAL: Moody's Lowers Rating on EUR45 Mln CDO Notes to Ba3
------------------------------------------------------------------
Moody's Investors Service has downgraded EUR145 million of
Leveraged Super Senior transactions with spread plus loss
triggers.

These transactions have been further impacted by the most recent
spread movements for corporate and financial names underlying the
transactions.  Spreads on the underlying portfolios have continued
widening over the last month, with the weighted average credit
spread of the underlying portfolios now being in the 670 basis
points range for Eirles Two Limited Series 187 and 330 basis
points range for Motif Capital B.V. Series 2005-7.

The current ratings are mainly driven by the probability that the
portfolio spreads will reach the spread triggers, which would most
likely lead to an unwind of the structure and an approximate 100%
loss to investors.  The average credit ratings on the underlying
portfolios are in the Ba2 range for Eirles Two Limited Series 187
and Baa3 range for Motif Capital B.V. Series 2005-7.

The rating actions are:

Eirles Two Limited:

EUR100,000,000 Series 187 Floating Rate Credit Linked Leveraged
Super Senior Secured Notes due 2010

  -- Current Rating: Caa3, under review for possible downgrade
  -- Prior Rating: Baa2, under review for possible downgrade
  -- Prior Rating Action Date: 27 October 2008

Motif Capital B.V.:

Series 2005-7 EUR45,000,000 Long-Short Variable Redemption Limited
Recourse Leveraged CDO Notes due June 2012

  -- Current Rating: Ba3, under review for possible downgrade
  -- Prior Rating: Baa2, under review for possible downgrade
  -- Prior Rating Action Date: 27 October 2008

Moody's monitors these transactions using primarily the
methodology described in Moody's Rating Methodology titled A
Description of Moody's Tool for Monitoring Leveraged Super Senior
Transactions (August 2008).


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


GRANIT-2 LLC: Creditor Must File Claims by December 28
------------------------------------------------------
Creditors of LLC Granit-2 (TIN 5102001588) (Construction) have
until Dec. 28, 2008 to submit proofs of claims to:

         S. Ivanov
         Temporary Insolvency Manager
         Kirova Str. 1/338
         450077 Ufa
         Russia

The Arbitration Court of Murmansk will convene on Apr.1, 2009, to
hear bankruptcy supervision procedure.  The case is docketed
under Case No. A42-5769/2008.


LEHMAN BROTHERS: Sells Loans Deal W/ Russian Unit to Nomura Europe
------------------------------------------------------------------
Lehman Brother Holdings, Inc., sought approval to assign and sell
to Nomura Europe Holdings Plc, its loan agreement with 000 Lehman
Brothers, a non-debtor Lehman affiliate created to serve as a
platform to provide a broad array of investment banking services
into Russia, including equity and fixed income sales and trading
and investment banking advisory activities.

The agreement dated Sept. 25, 2007 was inked by the bankrupt
company and 000 LB, an affiliate incorporated in the Russian
Federation, to provide about US$22.5 million to fund 000 LB's
operations in Russia.

Attorney for BLHI, Lori Fife, Esq., at Weil Gotshal & Manges, in
New York, said the proposed sale will solve the financial problem
being faced by 000 LB as well as preserve the interest of LBHI
under their agreement.

The filing of LBHI's bankruptcy reportedly halted the development
of 000 LB's broker-dealer business.  000 LB presently does not
have sources of trading revenue and is unlikely to fulfill its
duties under the loan agreement, including payment of about
US$3.8 million it owes to Lehman Brothers Holdings.

"000 LB's balance sheet currently demonstrates 000 LB is likely in
the zone of insolvency.  000 LB's ability to repay [Lehman
Brothers Holdings] amounts owed under the loan facility is at best
uncertain, and, most likely, doubtful," Ms. Fife said in a court
filing.

                     The Purchase Agreement

LBHI tapped six bidders including Nomura Europe Holdings, to
purchase the loan agreement.  The five bidders, however,
eventually withdrew from the negotiating table.

Ms. Fife said that Nomura Europe Holdings signed a contract with
LB Russia Holdings Inc., which owns 000 LB, for the sale of the
000 LB loan agreement for US$499,999.

The purchase agreement dated Nov. 24, provides these terms:

  (1) Lehman Brothers Holdings will sell, assign, transfer and
      convey absolutely and unconditionally to Nomura Europe
      Holdings the loan agreement free and clear of interests.

  (2) Nomura Europe Holdings will assume and agree, subject to
      valid claims and defenses, to pay as well as discharge
      Lehman Brothers Holdings, its successors and assigns
      from all obligations and liabilities resulting from the
      loan agreement.

  (3) The obligations of LBHI, 000 LB, and Nomura Europe Holdings
      under the purchase agreement is conditioned upon the
      closing of a private, out-of-court sale by LBRHI to Nomura
      Europe Holdings of a 100% participation interest in the
      charter capital of 000 LB.

  (4) If the purchase agreement is terminated in accordance with
      its terms, then the purchase agreement will be
      automatically terminated.

  (5) From Nov. 24 until the date of satisfaction of the
      conditions, LBHI will not (i) make any demands on 000 LB
      for payment of any amounts outstanding under the loan
      agreement or take any other steps to enforce its rights
      under the loan agreement; or (ii) sell, assign, transfer
      or convey its rights or interests in the loan without the
      written consent of Nomura Europe Holdings.

A hearing to consider approval of the proposed sale is scheduled
for Dec. 16, at 10:00 a.m.  Creditors and other concerned parties
have until Dec. 11, at 4:00 p.m. to file their objections.

                     About Lehman Brothers

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

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).  Several other affiliates followed
thereafter.

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

On Sept. 19, 2008, the Honorable Gerard E. Lynch, Judge of the
United States District Court for the Southern District of New
York, entered an order commencing liquidation of Lehman Brothers,
Inc., pursuant to the provisions of the Securities Investor
Protection Act in the case captioned Securities Investor
Protection Corporation v. Lehman Brothers Inc., Case No. 08-CIV-
8119 (GEL).  James W. Giddens has been appointed as trustee for
the SIPA liquidation of the business of LBI

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.  Nomura Holdings Inc., the
largest brokerage house in Japan, on Sept. 22 reached an agreement
to purchased Lehman Brothers Holdings, Inc.'s operations in Europe
and the Middle East less than 24 hours after it reached a deal to
buy Lehman's operations in the Asia Pacific for US$225 million.
Nomura paid only US$2 dollars for Lehman's investment banking and
equities businesses in Europe, but agreed to retain most of
Lehman's employees.

              International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.  The
two units of Lehman Brothers Holdings, Inc., which has filed for
bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of
JPY4 trillion -- USUS$38 billion).  Lehman Brothers Japan Inc.
reported about JPY3.4 trillion (US$33 billion) in liabilities in
its petition.  Akio Katsuragi, a former Morgan Stanley executive,
runs Lehman's Japan units.

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

(Lehman Brothers Bankruptcy News, Issue No. 11; Bankruptcy
Creditors' Service, Inc., <http://bankrupt.com/newsstand/>or
215/945-7000).


LIK CJSC: Samara Bankruptcy Hearing Set February 17
---------------------------------------------------
The Arbitration Court of Samara will convene on Feb. 17, 2009, to
hear bankruptcy supervision procedure on CJSC LiK (TIN
6313003515) (Polyethylene Items Production).  The case is
docketed under Case No. A55–14949/2008.

The Temporary Insolvency Manager is:

         D. Korobkov
         Post User Box 9520
         443013 Samara
         Russia

The Debtor can be reached at:

         CJSC LiK
         Ulyanskaya Str. 18
         443001 Samara
         Russia


PRIOKSKIY CONSTRUCTION: Ryazan Bankruptcy Hearing Set March 10
--------------------------------------------------------------
The Arbitration Court of Ryazan will convene on March 10, 2009, to
hear bankruptcy supervision procedure on LLC Priokskiy
Construction Plant.  The case is docketed under Case No. 54–
3623/2008s1.

The Temporary Insolvency Manager is:

         O. Kulapina
         Rakhmaninova Str. 1
         Penza
         Russia

The Debtor can be reached at:

         LLC Priokskiy Construction Plant
         Nikolodvorskaya Str. 22
         Ryazan
         Russia


SOCHI-OIL-STROY LLC: Court Names Temporary Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Krasnodarskiy appointed V. Rybachenko as
Temporary Insolvency Manager for LLC Sochi-Oil-Stroy (TIN
232009,4347) (Construction).  The case is docketed under Case No.
A-32–20479/2007–1/502B.  He can be reached at:

         Oktyabrskaya Str. 24
         350000 Krasnodar
         Russia

The Debtor can be reached at:

         LLC Sochi-Oil-Stroy
         Konstitutsii Str. 48
         354000 Sochi
         Russia


STROY-GRAD LLC: Creditors Must File Claims by January 28
--------------------------------------------------------
Creditors of LLC Stroy-Grad Construction Company (TIN
7842323894, PSRN 1057812757100) have until Jan. 28, 2009, to
submit proofs of claims to:

         M. Asaul
         Insolvency Manager
         Post User Box 17
         194354 Saint-Petersburg
         Russia

The Arbitration Court of Saint-Petersburg commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A56–10797/2008.

The Debtor can be reached at:

         LLC Stroy-Grad
         Moskovskiy Prospect 212
         196066 Saint-Petersburg
         Russia


TEKSIB LLC: Tumen Bankruptcy Hearing Set March 19
-------------------------------------------------
The Arbitration Court of Tumen will convene at 9.00 a.m. on
March 19, 2009, to hear bankruptcy supervision procedure on LLC
TEKSIB.  The case is docketed under Case No. A70-5995/3-08.

The Temporary Insolvency Manager is:

         D. Surmetov
         Post User Box 2173
         625032 Tumen-32
         Russia

The Debtor can be reached at:

         LLC Teksib
         Nemtsova Str. 22
         Tumen
         Russia


TRANSLINE VN: Creditors Must File Claims by January 28
------------------------------------------------------
Creditors of LLC Transline VN have until Jan. 28, 2009, to submit
proofs of claims to:

         Yu. Romanov
         Insolvency Manager
         Office 21
         Khutynskaya Str. 5
         173020 Velikiy Novgorod
         Russia

The Arbitration Court of Novgorodskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A44–2124/2008.

The Debtor can be reached at:

         LLC Transline VN
         Magistralnaya Str.13
         173008 Velikiy Novgorod
         Russia


* RUSSIA: S&P Cuts Foreign Currency Credit Rating, Outlook Neg.
---------------------------------------------------------------
The Financial Times reports Standard and Poor's lowered Russia's
foreign currency credit rating by one notch from BBB+ to BBB
because of the "rapid depletion" of the country's foreign exchange
reserves and the "difficulty of meeting the country's external
financing needs".  S&P's outlook for the rating is negative.

According to FT, Russia's reserves have fallen by US$128 billion
since August to US$455 billion, as the country battles the capital
flight that began following the war with Georgia and escalated as
the oil price fell and the global crisis worsened.

FT relates S&P said Russia could be forced to spend all US$200
billion now parked in its two sovereign wealth funds on
recapitalizing the banking system and covering fiscal deficits in
2009 and 2010.

The agency expects Russia to run a current account deficit next
year of 2.6 per cent of gross domestic product due to the oil
price fall, putting further pressure on the balance of payments,
FT notes.


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


DON PISO: Seeks Creditor Protection Following Parent's Collapse
---------------------------------------------------------------
Spanish Property Insight reports that estate agency Don Piso
sought protection from its creditors after parent company Habitat
Inmobiliaria filed for administration.

Don Piso, the report says, ran into difficulties following the
downturn in the Spanish property market.

Citing the Spanish daily La Vanguardia, the report relates
Don Piso lost EUR444 million in 2007, and with sales in 2008
plummeting by more than 60%, was forced to close all its own
office and move to a franchise-only model.

According to the report, at the height of its expansion in 2006,
Don Piso had 260 branch offices around Spain, 140 of which were
franchise operations.

Habitat, the report recounts, bought Group Ferrovial's real estate
division, including Don Piso for EUR2.2 billion in 2006.

The report adds six other companies belonging to Habitat also
sought protection from their creditors.

As reported in the TCR-Europe, Habitat filed for administration on
Friday, November 28.

Habitat, the report disclosed, racked up debts of EUR2.3 billion
(US$3 billion).

Habitat however said property sales would continue as normal and
it would work with administrators to reach a deal with creditors,
which include La Caixa, Caja Madrid and BBVA, the report noted.

At the end of June the company owed EUR232.3 million to La Caixa,
EUR218 million to Caja Madrid, and EUR190 million to bank BBVA,
the report revealed.


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


FORD MOTOR: Volvo to Axe 3,400 Jobs in Sweden and Abroad
--------------------------------------------------------
Xinhua reports that following negotiations with the trade union,
Volvo Cars Corp., owned by Ford Motor Co., said Monday it will axe
3,400 jobs in Sweden and abroad.

In a statement the company, which has a 25,000-strong workforce,
said 2,721 employees in Sweden and an additional 680 employees
abroad will leave the company, majority of them will have been
released from work at the end of the year, the report relates.

"I feel satisfied with the fact that our cost reduction program
has been successful and it has enabled us to stay with a lower
number of redundancies," Stephen Odell, President and CEO of Volvo
Car Corporation, was quoted by the report as saying.

Volvo is also terminating 1,215 consultant contracts, the report
adds.

                      About Ford Motor Co.

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

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

                      *     *     *

As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3.  The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative.  In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.

As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.


FORD MOTOR: Seeks to Extricate Itself From Rivals' Woes
-------------------------------------------------------
Sharon Terlep at Dow Jones Newswires reports that Ford Motor Co.
is making efforts to differentiate itself from General Motors
Corp. and Chrysler LLC, as the U.S. automakers seek government
financial assistance.

According to Dow Jones, Ford Motor said that it has sufficient
cash to survive an economic downturn that made it hard for
companies to access credit and led to declines in auto sales.  The
report says that Ford Motor is asking for a US$9 billion backup
line of credit in case conditions deteriorate even more than
anticipated.

Dow Jones quoted Ford Motor spokesperson Mark Truby as saying, "We
think it's important for people to understand that the Ford story
is different -- in terms of liquidity, in terms of the quality,
safety and fuel economy of our vehicles and the progress we have
made reducing our brands and merging our global operations.  The
Detroit Three are not one company."

Dow Jones relates that Sen. Christopher Dodd said in CBS's Face
the Nation program on Sunday, "Ford is fairly healthy, so we don't
want to brand all of these companies exactly the same way."

Sen. Dodd suggested that GM CEO Rick Wagoner "move on," says Dow
Jones.  The senator, according to the report, also supported a
merger of GM and Chrysler.

Dow Jones states that the US$15 billion loan package that would
deliver help by Dec. 15 would be less than the US$34 billion the
automakers requested, but would come before year-end.

                   The Bailout Plan Draft

According to WSJ, a legislative draft for financial assistance to
GM, Ford Motor Co., and Chrysler LLC states that the government
would get equity warrants equal to 20% of the US$15 billion
emergency loans.  The draft was already sent to the White House,
says WSJ.  The draft indicated that the provision would allow
taxpayers to benefit if shares in the three companies were to
appreciate, serving as protection of public funds being used to
help out the companies, WSJ relates.  The taxpayer, states the
report, would be repaid first once the companies' financial
fortunes turn around.

WSJ relates that the loans would come from a US$25 billion program
that the Congress created in 2007 to lend money to the car makers
to let them invest in cleaner technology.

According to WSJ, the White House would appoint a "car czar" -- an
individual with executive experience -- to oversee the loan
program.  That officer, says the report, would monitor executive
compensation.  The report states that under the proposed loan
program, these could be taken out:

    -- bonuses to the top 25 senior workers at each of the
       companies,

    -- golden parachutes for senior employees leaving the
       companies, and

    -- dividends for investors in the three companies while
       money is owed to the taxpayer.

WSJ relates that the loans would mature in seven years, with a 5%
interest rate charged for the first five years, and 9% charged
thereafter.

The president could also appoint additional advisers, who would
establish appropriate procedures to guarantee that the plans
submitted to Congress by Ford Motor, GM, and Chrysler form a
viable long-term restructuring plan, WSJ reports.  Progress of the
restructuring would be reviewed within 45 days and the three
automakers must have a long-term restructuring program by the end
of the first quarter of 2009.

Citing a White House official, WSJ reports that the George W. Bush
administration had concerns with aspects of the draft for the
bailout.

Corey Boles at WSJ reports that additional oversight of GM, Ford
Motor, and Chrysler would be undertaken by the General
Accountability Office, the Congress' investigative arm.  The
report says that the three automakers would be required to open
their books to the GAO and any other information that the agency
required, and a special inspector general would be appointed to
conduct more supervision of the companies.

According to WSJ, the car czar would review any investment
decisions that exceed US$25 million.  The companies, says WSJ,
would have to withdraw from participation in lawsuits challenging
proposed state laws on emissions standards.  Ford Motor, Chrysler,
and GM are involved in those legal challenges, the report states.

WSJ says that GM, Ford Motor, and Chrysler would be compelled to
divest any corporate aircraft they own or lease.  WSJ relates that
the companies must conduct a study on using any excess capacity at
their factories to make vehicles to sell to public transit
authorities.

Some lawmakers suggested over the weekend that the CEOs of the
three automakers resign, but that wasn't mentioned in the draft
legislation, WSJ reports.

According to WSJ, Sen. Robert Corker opposed the bill, claiming
that it lacked "teeth," while other senators including Rep. Barney
Frank, the lead negotiator for House Democrats on the bill, said
he was confident a final agreement could be reached.

                 UAW Wants Seat on GM's Board

WSJ relates that Marc McQuillen, president of UAW Local 2404 in
Charlotte, said that the union wants an equity stake in at least
GM and likely a seat on the company's board, in return for
modifying terms of a health-care agreement and suspending the Jobs
Bank to help the automakers secure loans from the government.
Changes to the UAW contract would have to take place by March 31,
2009, says the report.

UAW's top GM bargaining official, Cal Rapson, told leaders earlier
this month that a Special Attrition Package program would be
offered next year, WSJ states, citing Mr. McQuillen.  According to
the report, that program would be implemented if the government
approves some of the bailout money for buying workers out.

                   Democrats Propose Car Czar

Bankruptcy Law360 reports that Democrats in Congress sent a draft
proposal of a US$15 billion bridge loan for General Motors Corp.,
Ford Motor Co. and Chrysler LLP to the White House for review
Monday.  The proposal, the report says, includes the appointment
of a "car czar" to oversee restructuring of the auto industry.

American Bankruptcy Institute says a comprehensive bailout for the
Detroit 3 could cost as much as US$125 billion, and even the
companies themselves are hard pressed to dispute that figure.

ABI also relates that a GM Restructuring is likely to be painful
even if it receives a federal bailout.  According to ABI, the
federal oversight likely to be implemented will hit its investors,
creditors, dealers and workers almost as hard as if GM had filed
for bankruptcy protection.

                     About Ford Motor Co.

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

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

                     *     *     *

As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3.  The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative.  In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.

As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.


FORD MOTOR: September 30 Balance Sheet Upside-Down by US$2 Billion
----------------------------------------------------------------
Ford Motor Company's balance sheet data at Sept. 30, 2008, showed
total assets of US$242.0 billion and total liabilities of
US$244.0 billion and a stockholders' deficit of about US$2
billion.

Ford Motor reported net loss of US$129 million for the third
quarter of 2008 compared to net loss of US$380 for the third
quarter of 2007.

Ford Motor's third quarter pre-tax operating loss from continuing
operations, excluding special items, was US$2.7 billion, down from
a US$194 million profit a year ago.

Ford Motor's third quarter revenue was US$32.1 billion, down from
US$41.1 billion a year ago.  The decline reflects lower volume,
the sale of Jaguar Land Rover, changing product mix and lower net
pricing, partly offset by favorable changes in currency exchange
rates.

For the nine months ended Sept. 30, 2008, the company reported net
loss of US$8.6 billion compared with net income of US$88 million
for the same period in the previous year.

               Liquidity and Capital Resources

Debt and Net Cash

At Sept. 30, 2008, the company's Automotive sector had total debt
of US$26.1 billion, compared with US$27 billion at Dec. 31, 2007.
At Sept. 30, 2008, its Automotive sector had negative net cash of
about US$7.2 billion, compared with positive net cash of US$7.6
billion at the end of 2007.  The US$14.8 billion reduction in net
cash reflects a US$15.7 billion reduction in gross cash, offset
partially by about US$900 million in lower debt.

Credit Facilities

At Sept. 30, 2008, the company has US$12.3 billion of
contractually-committed credit facilities with financial
institutions, including US$11.5 billion pursuant to a senior
secured credit facility established in December 2006 and about
US$800 million of Automotive unsecured credit facilities.

Automotive gross cash, including cash and cash equivalents, net
marketable securities and loaned securities, was US$18.9 billion
on Sept. 30, down from US$26.6 billion at the end of the second
quarter.  The decrease reflects Automotive pre-tax operating
losses, changes in working capital and other timing differences,
and upfront subvention payments to Ford Credit.

Ford Motor's Automotive cash flow during the third quarter was
significantly affected by a number of unique factors during the
quarter, including the decision to reduce truck production to
allow for an orderly sell-down of dealer inventories to make way
for new models.  Overall, Ford Motor's third quarter production
levels were more than 100,000 units below retail sales and nearly
500,000 units below the second quarter levels.  This had a
substantial impact on profits, and the decline in production
resulted in about a US$3 billion reduction in payables during the
quarter.

The company also disclosed additional actions to reduce costs and
improve Automotive gross cash to enable Ford Motor to continue to
implement its product-led transformation plan despite the
continued weakness in the worldwide automotive market and economic
environment.

Improvement actions include: an additional 10% reduction in North
American salaried personnel-related costs; a reduction in capital
spending enabled by efficiencies in Ford Motor's worldwide
engineering and product development; a reduction in manufacturing,
information technology, and advertising costs due to the company's
"One Ford" worldwide operations; and a reduction of inventories.
Ford also said it would continue to explore divestitures of non-
core assets and utilize equity-for-debt swaps and other
incremental sources of financing to strengthen the company's
balance sheet.

At the same time, Ford reiterated its continued investment in the
smaller, more fuel-efficient, high-quality products that will
result in a more balanced portfolio.  Ford Motor confirmed that
nearly all planned product programs remain on track and on time --
aside from a few select vehicles that will be deferred until
industry volumes recover.  Ford Motor will, however, reduce
spending for large vehicles in declining segments.

In addition, Ford Motor said it will continue working with a
number of governments around the world to maximize the
availability of funding to provide further protection against the
uncertain economic environment that the entire automotive industry
is facing.

A full-text copy of the 10-Q filing is available for free at
http://ResearchArchives.com/t/s?35dd

                      About Ford Motor Co.

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

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

                      *     *     *

As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3.  The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative.  In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.

As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.


FORD MOTOR: Names Jost Capito as Global Performance Director
------------------------------------------------------------
Ford Motor Company has appointed Jost Capito to the newly-created
position of Global Performance Vehicles and Motorsport Business
Development Director.  Mr. Capito will take up his new position in
January 2009.

In his new role, Mr. Capito will be responsible for the global
development of Ford Motor's performance vehicles business.  The
North American SVT and European TeamRS performance vehicle
organizations will come together, both reporting to Mr. Capito, to
focus on the development of global performance vehicles, and the
implementation of consistent vehicle attributes and DNA in future
Ford Motor performance models.

Additionally, Mr. Capito will assume responsibility for global
motorsport business strategy and aligning Ford Motor's global
motorsport plans and programs.  He will lead the development of
motorsport opportunities for Ford's future global car products
around the world, advising and working closely with the company's
regional Motorsports directors.

Mr. Capito joined Ford of Europe in October 2001 as director of
Special Vehicle Engineering. Between 2003 and 2007, he assumed
responsibility for Ford of Europe's motorsport and performance
vehicle programs, leading the company's successful World Rally
Championship efforts and winning Manufacturers' Championship
titles for the BP Ford Abu Dhabi World Rally team in 2006 and
2007.  In November 2007, Capito was appointed Vehicle Line
Director for Ford of Europe's Performance Vehicles, and since then
has led the development of the eagerly-awaited new Focus RS road
car which will be launched in Europe in the first quarter of 2009.
He was also responsible for European Fiesta ST and Focus ST
performance models.

Mr. Capito is 50 years old, and currently lives with his family in
the U.K.  In his new position, he will relocate to Ford Motor's
World Headquarters in Dearborn, Michigan.

"Performance vehicles and motorsport have been important to Ford
since the company was founded more than a century ago. With Jost's
immense experience in both areas, performance vehicles and
motorsport, we expect that tradition to continue and be
strengthened within our One Ford strategy," said Hermann
Salenbauch, Director of Advanced Product Creation and Performance
Vehicles, Ford Motor Company.

        Obama Says Auto Industry Collapse Unacceptable

Nadine Elsibai at Bloomberg News reports that President-elect
Barack Obama said that allowing the U.S. auto industry to collapse
would be "unacceptable."  Reports say that General Motors Corp.,
Ford Motor, and Chrysler have submitted turnaround plans to the
Congress as a requirement for the government financial aid they
are seeking.

"I have said repeatedly that to allow the auto industry in the
United States to collapse precisely at a time that we are seeing
record joblessness is unacceptable.  What I've also said is that
it makes no sense for us to shovel more money into the problem if
you have not seen an auto industry that is committed to
restructuring," Bloomberg quoted Mr. Obama as saying.

The Congress is doing the right thing by asking for changes in the
auto industry as a condition for a bailout, The Associated Press
relates, citing Mr. Obama.

According to Bankruptcy Law360, lawyers say a bankruptcy by GM
could top the US$1 billion in legal fees generated by the Enron
collapse.  Bankruptcy Law360 also notes that two law professors
who specialize in researching attorneys' fees in bankruptcy
proceedings, said court-awarded fees could reach as high as
US$800 million for GM alone.

Bankruptcy Law360 relates that the costs of bankruptcy for GM,
Ford Motor, and Chrysler have been the subject of speculation
since the companies began making their cases for federal
assistance to avoid seeking Chapter 11.

American Bankruptcy Institute on Friday said the CEOs of General
Motors, Ford and Chrysler returned to Capitol Hill Thursday to
find themselves confronting considerable frustration from
lawmakers and the realization that even their strongest supporters
might not be able to muster the votes for a bailout package.

                      About Ford Motor Co.

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

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

                      *     *     *

As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3.  The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative.  In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.

As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.


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


BOUTIQUE CANA: Creditors Must File Proofs of Claim by Dec. 19
-------------------------------------------------------------
Creditors owed money by LLC Boutique Cana are requested to file
their proofs of claim by Dec. 19, 2008, to:

         Anna Dillier-Krummenacher
         Rutimattli 3
         6072 Sachseln
         Switzerland

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


CAFFE FORTE: Deadline to File Proofs of Claim Set Dec. 19
---------------------------------------------------------
Creditors owed money by LLC Caffe Forte are requested to file
their proofs of claim by Dec. 19, 2008, to:

         Martin Anderson
         Liquidator
         Hasenrainstrasse 86
         4102 Binningen
         Switzerland

The company is currently undergoing liquidation in Frenkendorf.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 6, 2008.


COMPATRIA FINANCE: Creditors Have Until Dec. 19 to File Claims
--------------------------------------------------------------
Creditors owed money by LLC Compatria Finance are requested to
file their proofs of claim by Dec. 19, 2008, to:

         Manuel De Arriba
         Schaffhauserstrasse 366
         8050 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 19, 2008.


GENERAL MOTORS: Gov't & UAW May Get Stake in Firm
-------------------------------------------------
Corey Boles and John D. Stoll at The Wall Street Journal report
that the U.S. government and the United Auto Workers union might
get a stake in General Motors Corp.

WSJ reports that the draft for a US$15 billion loan package for
Chrysler LLC, Ford Motor Co., and General Motors Corp. was already
sent to the White House for consideration.  Dow Jones states that
the US$15 billion loan package that would deliver help by Dec. 15
would be less than the US$34 billion the automakers requested, but
would come before year-end.

                   The Bailout Plan Draft

According to WSJ, a legislative draft for financial assistance to
GM, Ford Motor Co., and Chrysler LLC states that the government
would get equity warrants equal to 20% of the US$15 billion in
emergency loans.  The draft was already sent to the White House,
says WSJ.  The draft indicated that the provision would allow
taxpayers to benefit if shares in the three companies were to
appreciate, serving as protection of public funds being used to
help out the companies, WSJ relates.  The taxpayer, states the
report, would be repaid first once the companies' financial
fortunes turn around.

WSJ relates that the loans would come from a US$25 billion program
that the Congress created in 2007 to lend money to the car makers
to let them invest in cleaner technology.

According to WSJ, the White House would appoint a "car czar" -- an
individual with executive experience -- to oversee the loan
program.  That officer, says the report, would monitor executive
compensation.  The report states that under the proposed loan
program, these could be taken out:

    -- bonuses to the top 25 senior workers at each of the
       companies,

    -- golden parachutes for senior employees leaving the
       companies, and

    -- dividends for investors in the three companies while
       money is owed to the taxpayer.

WSJ relates that the loans would mature in seven years, with a 5%
interest rate charged for the first five years, and 9% charged
thereafter.

The president could also appoint additional advisers, who would
establish appropriate procedures to guarantee that the plans
submitted to Congress by Ford Motor, GM, and Chrysler form a
viable long-term restructuring plan, WSJ reports.  Progress of the
restructuring would be reviewed within 45 days and the three
automakers must have a long-term restructuring program by the end
of the first quarter of 2009.

Citing a White House official, WSJ reports that the George W. Bush
administration had concerns with aspects of the draft for the
bailout.

Corey Boles at WSJ reports that additional oversight of GM, Ford
Motor, and Chrysler would be undertaken by the General
Accountability Office, the Congress' investigative arm.  The
report says that the three automakers would be required to open
their books to the GAO and any other information that the agency
required, and a special inspector general would be appointed to
conduct more supervision of the companies.

According to WSJ, the car czar would review any investment
decisions that exceed US$25 million.  The companies, says WSJ,
would have to withdraw from participation in lawsuits challenging
proposed state laws on emissions standards.  Ford Motor, Chrysler,
and GM are involved in those legal challenges, the report states.

WSJ says that GM, Ford Motor, and Chrysler would be compelled to
divest any corporate aircraft they own or lease.  WSJ relates that
the companies must conduct a study on using any excess capacity at
their factories to make vehicles to sell to public transit
authorities.

Some lawmakers suggested over the weekend that the CEOs of the
three automakers resign, but that wasn't mentioned in the draft
legislation, WSJ reports.

According to WSJ, Sen. Robert Corker opposed the bill, claiming
that it lacked "teeth," while other senators including Rep. Barney
Frank, the lead negotiator for House Democrats on the bill, said
he was confident a final agreement could be reached.

                 UAW Wants Seat on GM's Board

WSJ relates that Marc McQuillen, president of UAW Local 2404 in
Charlotte, said that the union wants an equity stake in at least
GM and likely a seat on the company's board, in return for
modifying terms of a health-care agreement and suspending the Jobs
Bank to help the automakers secure loans from the government.
Changes to the UAW contract would have to take place by March 31,
2009, says the report.

UAW's top GM bargaining official, Cal Rapson, told leaders earlier
this month that a Special Attrition Package program would be
offered next year, WSJ states, citing Mr. McQuillen.  According to
the report, that program would be implemented if the government
approves some of the bailout money for buying workers out.

                   Democrats Propose Car Czar

Bankruptcy Law360 reports that Democrats in Congress sent a draft
proposal of a US$15 billion bridge loan for General Motors Corp.,
Ford Motor Co. and Chrysler LLP to the White House for review
Monday.  The proposal, the report says, includes the appointment
of a "car czar" to oversee restructuring of the auto industry.

American Bankruptcy Institute says a comprehensive bailout for the
Detroit 3 could cost as much as US$125 billion, and even the
companies themselves are hard pressed to dispute that figure.

ABI also relates that a GM Restructuring is likely to be painful
even if it receives a federal bailout.  According to ABI, the
federal oversight likely to be implemented will hit its investors,
creditors, dealers and workers almost as hard as if GM had filed
for bankruptcy protection.

                      About General Motors

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

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

As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of US$110.425 billion, total
liabilities of US$170.3 billion, resulting in a stockholders'
deficit of US$59.9 billion.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on General Motors Corp. to 'CCC+'
from 'B-' and removed them from CreditWatch, where they had been
placed with negative implications on Oct. 9, 2008.  S&P said that
the outlook is negative.

Fitch Ratings, as reported in the Troubled Company Reporter on
Nov. 11, 2008, placed the Issuer Default Rating of General Motors
on Rating Watch Negative as a result of the company's rapidly
diminishing liquidity position.  Given the current liquidity level
of US$16.2 billion and the pace of negative cash flows, Fitch
expects that GM will require direct federal assistance over the
next quarter and the forbearance of trade creditors in order to
avoid default.  With virtually no further access to external
capital and little potential for material asset sales, cash
holdings are expected to shortly reach minimum required operating
levels.  Fitch placed these on Rating Watch Negative:

-- Senior secured at 'B/RR1';
-- Senior unsecured at 'CCC-/RR5'.

As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corp. and General
Motors of Canada Limited Under Review with Negative Implications.
The rating action reflects the structural deterioration of the
company's operations in North America brought on by high oil
prices and a slowing U.S. economy.


GENERAL MOTORS: International Operations Still Profitable
---------------------------------------------------------
Ken Bensinger at The Los Angeles Times reports that while General
Motors Corp.'s revenue in the U.S. has declined 24% in the last
three full years and has forced the company to seek for a
government financial aid, the company's international operations
remains profitable.

"Those overseas businesses over the last several years almost
uniformly have been quite profitable, and they have, in almost
every case, been able to send dividends back to help us address
funding issues in the U.S," the LA Times quoted GM Chairperson and
CEO Rick Wagoner as saying.

According to the LA Times, GM has a bigger presence abroad than in
the U.S., and has more workers in those countries than nationally.
GM can boast a 28% increase in revenue in its international
operation, the report says.

The LA Times quoted Kimberly Rodriguez, a partner at Grant
Thornton, as saying, "A major argument for keeping GM out of
bankruptcy is the strength of its foreign footprint."  Ms.
Rodriguez admitted that if GM's U.S. operations fail, "there will
certainly be problems for the company worldwide," due to the
deeply intertwined nature of GM's global operations, according to
the report.

The LA Times relates that GM's foreign units are separate
corporate entities, and would be shielded from a U.S. Chapter 11
filing.  They could continue operations without concerns of a U.S.
court seizing their assets, says the LA Times.

GM, according to the LA Times, said that if it doesn't get
financial support, its U.S. operations would collapse and this
could set off a chain reaction that would put U.S. parts suppliers
out of business, throw off production schedules overseas, and
freeze up GM's foreign plants.

The U.S. is GM's largest single market in terms of revenue, with
US$115 billion in sales in 2007, says the LA Times.

        Obama Says Auto Industry Collapse Unacceptable

Nadine Elsibai at Bloomberg News reports that President-elect
Barack Obama said that allowing the U.S. auto industry to collapse
would be "unacceptable."  Reports say that GM, Ford Motor Corp.,
and Chrysler LLC have submitted turnaround plans to the Congress
as a requirement for the government financial aid they are
seeking.

"I have said repeatedly that to allow the auto industry in the
United States to collapse precisely at a time that we are seeing
record joblessness is unacceptable.  What I've also said is that
it makes no sense for us to shovel more money into the problem if
you have not seen an auto industry that is committed to
restructuring," Bloomberg quoted Mr. Obama as saying.

The Congress is doing the right thing by asking for changes in the
auto industry as a condition for a bailout, The Associated Press
relates, citing Mr. Obama.

According to Bankruptcy Law360, lawyers say a bankruptcy by GM
could top the US$1 billion in legal fees generated by the Enron
collapse.  Bankruptcy Law360 also notes that two law professors
who specialize in researching attorneys' fees in bankruptcy
proceedings, said court-awarded fees could reach as high as
US$800 million for GM alone.

Bankruptcy Law360 relates that the costs of bankruptcy for GM,
Ford Motor, and Chrysler have been the subject of speculation
since the companies began making their cases for federal
assistance to avoid seeking Chapter 11.

American Bankruptcy Institute on Friday said the CEOs of GM, Ford
Motor, and Chrysler returned to Capitol Hill Thursday to find
themselves confronting considerable frustration from lawmakers and
the realization that even their strongest supporters might not be
able to muster the votes for a bailout package.

                      About General Motors

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

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

As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of US$110.425 billion, total
liabilities of US$170.3 billion, resulting in a stockholders'
deficit of US$59.9 billion.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on General Motors Corp. to 'CCC+'
from 'B-' and removed them from CreditWatch, where they had been
placed with negative implications on Oct. 9, 2008.  S&P said that
the outlook is negative.

Fitch Ratings, as reported in the Troubled Company Reporter on
Nov. 11, 2008, placed the Issuer Default Rating of General Motors
on Rating Watch Negative as a result of the company's rapidly
diminishing liquidity position.  Given the current liquidity level
of US$16.2 billion and the pace of negative cash flows, Fitch
expects that GM will require direct federal assistance over the
next quarter and the forbearance of trade creditors in order to
avoid default.  With virtually no further access to external
capital and little potential for material asset sales, cash
holdings are expected to shortly reach minimum required operating
levels.  Fitch placed these on Rating Watch Negative:

-- Senior secured at 'B/RR1';
-- Senior unsecured at 'CCC-/RR5'.

As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corp. and General
Motors of Canada Limited Under Review with Negative Implications.
The rating action reflects the structural deterioration of the
company's operations in North America brought on by high oil
prices and a slowing U.S. economy.


OBJECTIVE 2020: Proofs of Claim Filing Deadline is Dec. 19
----------------------------------------------------------
Creditors owed money by JSC Objective 2020 are requested to file
their proofs of claim by Dec. 19, 2008, to:

         JSC Panotrust Treuhand & Beratung
         Kappelergasse 14
         Mail Box: 4536
         8001 Zurich
         Switzerland

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


PROGENTA JSC: Creditors' Proofs of Claim Due by Dec. 19
-------------------------------------------------------
Creditors owed money by JSC Progenta are requested to file their
proofs of claim by Dec. 19, 2008, to:

         JSC Panotrust Treuhand & Beratung
         Kappelergasse 14
         Mail Box: 4536
         8001 Zurich
         Switzerland

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


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


ATLANTA BUILDING: Creditors Must File Claims by December 21
-----------------------------------------------------------
Creditors of LLC Atlanta Building Service (code EDRPOU 35264302)
have until Dec. 21, 2008, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 11, 2008.
The case is docketed as 44/375-b.

The Debtor can be reached at:

         LLC Atlanta Building Service
         Kikvidze Str. 11
         01103 Kiev
         Ukraine


EDELWEISS LLC: Creditors Must File Claims by December 21
--------------------------------------------------------
Creditors of LLC Trading Company Edelweiss (code EDRPOU 35745446)
have until  Dec. 21, 2008, to submit proofs of claim to:

         LLC Real Estate Agency Zeus
         Liquidator
         Kikvidze Str. 18
         01103 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 11, 2008.
The case is docketed as 44/393-B.

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

The Debtor can be reached at:

         LLC Trading Company Edelweiss
         Pushkinskaya Str. 2
         01004 Kiev
         Ukraine


EXPRIM LLC: Creditors Must File Claims by December 21
-----------------------------------------------------
Creditors of LLC Exprim (code EDRPOU 33751552) have until
Dec. 21, 2008, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 6, 2008.
The case is docketed as 44/371-b.

The Debtor can be reached at:

         LLC Exprim
         Oranzhereynaya Str. 3
         04112 Kiev
         Ukraine


FRESH-LINE LLC: Creditors Must File Claims by December 21
---------------------------------------------------------
Creditors of LLC Fresh-Line (code EDRPOU 31903851) have until
Dec. 21, 2008, to submit proofs of claim to:

         State Tax Inspection
         Sviatoshyn District of Kiev
         Verkhovinnaya Str. 9
         03115 Kiev
         Ukraine
         Tel: 591-62-96

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 43/194.

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

The Debtor can be reached at:

         LLC Fresh-Line
         Academic Tupolev Str. 17
         04128 Kiev
         Ukraine


FUND-RESERVE LLC: Creditors Must File Claims by December 21
-----------------------------------------------------------
Creditors of LLC Fund-Reserve (code EDRPOU 25389772) have until
Dec. 21, 2008, to submit proofs of claim to:

         Mr. Gennady Marchuk
         Liquidator
         Pasechnaya Str. 185/7
         79032 Lvov
         Ukraine

The Arbitration Court of Kie commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 22, 2008.
The case is docketed as 50/226.

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

The Debtor can be reached at:

         LLC Fund-Reserve
         Smolnaya Str. 9
         03131 Kiev
         Ukraine


MEDIA COMPASS: Creditors Must File Claims by December 21
--------------------------------------------------------
Creditors of LLC Media Compass (code EDRPOU 33603140) have until
Dec. 21, 2008, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 6, 2008.
The case is docketed as 44/369-b.

The Debtor can be reached at:

         LLC Media Compass
         Melnikov Str. 12
         04050 Kiev
         Ukraine


MIKADO LLC: Creditors Must File Claims by December 21
-----------------------------------------------------
Creditors of LLC Mikado (code EDRPOU 34979059) have until
Dec. 21, 2008, to submit proofs of claim to:

         Mrs. A. Kandaurova
         Liquidator
         Apt. 40
         Kibalchich Str. 5A
         02183 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 19, 2008.
The case is docketed as 44/356-b.

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

The Debtor can be reached at:

         LLC Mikado
         Apt. 84
         40 Years of October Avenue, 74A
         03039 Kiev
         Ukraine


PACK-SERVICE LLC: Creditors Must File Claims by December 21
-----------------------------------------------------------
Creditors of  LLC Pack-Service (code EDRPOU 31281303) have until
Dec. 21, 2008, to submit proofs of claim to:

         Mr. Ivan Gusar
         Liquidator
         P.O.B. 29
         01030 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 18, 2008.
The case is docketed as 50/299.

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

The Debtor can be reached at:

         LLC Pack-Service
         Volinskaya Str. 40
         03151 Kiev
         Ukraine


PHANDI LLC: Creditors Must File Claims by December 21
-----------------------------------------------------
Creditors of LLC Phandi (code EDRPOU 30777269) have until
Dec. 21, 2008, to submit proofs of claim to:

         State Tax Inspection
         Sviatoshyn District of Kiev
         Verkhovinnaya Str. 9
         03115 Kiev
         Ukraine
         Tel: 591-62-96

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 23/489-b.

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

The Debtor can be reached at:

         LLC Phandi
         Sviatoshynskaya Str. 3
         03134 Kiev
         Ukraine


S.O.V. LTD: Creditors Must File Claims by December 21
-----------------------------------------------------
Creditors of LLC S.O.V. Ltd. (code EDRPOU 30677733) have until
Dec. 21, 2008, to submit proofs of claim to:

         State Tax Inspection
         Sviatoshyn District of Kiev
         Verkhovinnaya Str. 9
         03115 Kiev
         Ukraine
         Tel: 591-62-96

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 43/195.

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

The Debtor can be reached at:

         LLC S.O.V. Ltd.
         Apt. 2
         Pobeda Avenue, 67
         03062 Kiev
         Ukraine


SANTRIS LLC: Creditors Must File Claims by December 21
------------------------------------------------------
Creditors of LLC Santris (code EDRPOU 35690214) have until
Dec. 21, 2008, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 6, 2008.
The case is docketed as 44/372-b.

The Debtor can be reached at:

         LLC Santris
         Kikvidze Str. 12-A
         01103 Kiev
         Ukraine


UKRAINIAN INDUSTRIAL-INVESTMENT: Claims Deadline on December 21
---------------------------------------------------------------
Creditors of LLC Ukrainian Industrial-Investment Company (code
EDRPOU 31280818) have until Dec. 21, 2008, to submit proofs of
claim to:

         Mr. Ivan Gusar
         Liquidator
         P.O.B. 29
         01030 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on April 2, 2008.
The case is docketed as 43/202.

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

The Debtor can be reached at:

         LLC Ukrainian Industrial-Investment Company
         Apt. 414
         Gnat Yura Str. 9
         03164 Kiev
         Ukraine


* UKRAINE: Gazprom Seeks Payment of US$2.4 Billion Debt
-------------------------------------------------------
Ukraine is in dispute with Russia's Gazprom over unpaid debts and
future gas prices, The Financial Times reports.

The report says Gazprom believes it is owed about US$2.4 billion
for unpaid gas bills up to the end of November, and has been paid
only a "marginal" amount following an agreement last month for
Ukraine to pay off some of its debt.

According to FT, Ukraine is a vital transit country for the EU's
gas supplies. Russian imports supply about 25 per cent of the EU
market and about 80 per cent of that gas flows through Ukraine.

Gazprom, FT relates, says it has been making every effort to avoid
cutting off Ukraine's gas, including allowing some of the payments
to be deferred.

Alexander Medvedev, Gazprom's deputy chief executive, told the
Financial Times that talks with Ukraine were "far away from a
settlement", and suggested the country should not be allowed to
:steal the gas".

FT discloses that officials at Naftogaz, Ukraine's national gas
company, struggled on Monday to predict how debts owed to Gazprom
would be settled or when a price agreement for next year would be
signed.

"The global financial crisis, namely the sliding Ukrainian
currency, has complicated our efforts to settle this debt.  We are
currently in talks with Ukrainian and foreign banks to refinance
this debt," Naftogaz said, as cited by FT.

Meanwhile, FT reports that Gazprom is seeking to finalize an
October deal that would raise the price paid by Ukraine to EU
levels by 2011.  The details of the transition are still not
agreed.  FT says Ukraine is paying US$179.50 per thousand cubic
meters of gas, compared with an expected EU price of about US$400
in the first half of next year.


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


BLUEPRINT INTERIOR: Appoints Joint Liquidators from Tenon
---------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Blueprint Interior Design
Associates Ltd. on Nov. 13, 2008.

The company can be reached through Tenon Recovery at:

         Tenon House
         Ferryboat Lane
         Sunderland
         Tyne & Wear
         SR5 3JN
         England


DOLPHIN HOTEL: Appoints Joint Administrators from KPMG
------------------------------------------------------
Jane Bronwen Moriarty and Richard John Hill of KPMG LLP were
appointed joint administrators of Dolphin Hotel (Southampton) Ltd.
on Nov. 27, 2008.

The company can be reached at:

         Dolphin Hotel (Southampton) Ltd.
         35 High Street
         Southampton
         Hampshire
         SO14 2HN
         England


DONN FOUR: Names Joint Administrators from BDO Stoy
---------------------------------------------------
Martha H. Thompson and Christopher K. Rayment of BDO Stoy Hayward
LLP were appointed joint administrators of Donn Four Ltd. on  Nov.
21, 2008.

The company can be reached through BDO Stoy Hayward LLP at:

         Kings Wharf
         20-30 Kings Road
         Reading
         Berkshire
         RG1 3EX
         England


DONN THREE: Taps Joint Administrators from BDO Stoy
---------------------------------------------------
Martha H. Thompson and Christopher K. Rayment of BDO Stoy Hayward
LLP were appointed joint administrators of Donn Four Ltd. on
Nov. 21, 2008.

The company can be reached through BDO Stoy Hayward LLP at:

         Kings Wharf
         20-30 Kings Road
         Reading
         Berkshire
         RG1 3EX
         England


EMPYREAN FINANCE: Moody's Downgrades Ratings on 10 Note Classes
---------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of ten
classes of notes issued by Empyrean Finance.

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under
Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008,
Washington Mutual Inc., which was seized by federal regulators on
September 25, 2008 and subsequently virtually all of its assets
were sold to JPMorgan Chase, Fannie Mae and Freddie Mac, which
were placed into the conservatorship of the U.S. government on
September 8, 2008, Landsbanki Islands hf and Glitnir Banki hf, for
each of which a receivership committee was appointed on October 7,
2008 and Kaupthing Bank hf, for which a receivership committee was
appointed on Wednesday, October 8, 2008.  The transaction also has
a significant exposure to other corporate names which continue to
deteriorate in the current economic environment.  This will weigh
on the ratings of the tranches in this transaction.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports below:

  -- Moody's Approach to Rating Synthetic CDOs (July 2003)

  -- Moody's Approach to Rating Digital Credit Default Swaps (July
     2004)

  -- Moody's Revisits Its Assumptions Regarding Corporate Default
     (and Asset) Correlations for CDOs (November 2004)

  -- Understanding Collateral Risks of Funded Synthetics in CDOs
     (June 2006)

The rating actions are:

Empyrean Finance (Ireland) PLC:

(1) AU$6,000,000 Class A-1A7 Floating Rate Secured Portfolio
Credit-Linked Notes due 2013

  -- Current Rating: Baa1
  -- Prior Rating: Aaa
  -- Prior Rating Date: 25 January 2006

(2) EUR20,000,000 Class A-1E7 Floating Rate Secured Portfolio
Credit-Linked Notes due 2013

  -- Current Rating: Baa1
  -- Prior Rating: Aaa
  -- Prior Rating Date: 25 January 2006

(3) AU$24,000,000 B-1A7 Floating Rate Secured Portfolio Credit-
Linked Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007

(4) EUR11,500,000 B-2E7 Fixed Rate Secured Portfolio Credit-Linked
Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007

(5) US$5,000,000 Class B-2U7 Fixed Rate Secured Portfolio Credit-
Linked Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007

(6) US$20,000,000 C-1U7 Floating Rate Secured Portfolio Credit-
Linked Notes due 2013

  -- Current Rating: B3
  -- Prior Rating: Aa2
  -- Prior Rating Date: 16 February 2007

Empyrean Finance (Cayman Islands) Limited:

(1) US$7,500,000 Class B-1U7 Senior Floating Rate Secured
Portfolio Credit-Linked Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007

(2) US$10,000,000 Class B-1bU7 Senior Floating Rate Secured
Portfolio Credit-Linked Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007

Empyrean Finance (Ireland) No.1 Limited:

(1) GBP139,200,000 Class B-2G7 Fixed Rate Secured Portfolio
Credit-Linked Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007

Empyrean Finance (Jersey) Limited:

(1) GBP135,000,000 B-2G7J 5.45 Per Cent. Fixed Rate Senior
Secured Notes due 2013

  -- Current Rating: Ba2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 16 February 2007


EUROMASTR PLC: S&P Downgrades Rating on Class E Notes to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class C, D, and E
notes series 2007-1V issued by EuroMASTR PLC.  All the other notes
in this transaction have been affirmed.

The downgrades follow a full credit and cash flow analysis of the
most recent loan-level information.  This analysis showed that the
credit enhancement available for the class C, D, and E notes was
insufficient to maintain the existing ratings on these notes.

The performance of the transaction has deteriorated in recent
quarters.  As of the September 2008 investor report, total
delinquencies (including repossessions) were 34.0%, of which 11.6%
were more than 120 days in arrears.  Repossessions increased in Q3
to 3.25% from 1.39%.

Due to the current and continuing decline in U.K. house prices,
S&P expects to see higher losses on average for those loans that
ultimately default.  This will place strain on excess spread.  S&P
expects the more recently originated U.K. residential mortgage-
backed securities transactions to be particularly susceptible to
this pressure.

S&P will continue to monitor the performance of this transaction.
The next interest payment date is on Dec. 16, 2008.

The notes, issued in June 2007, are backed by a portfolio of
first-ranking nonconforming residential mortgages secured over
owner-occupied and buy-to-let properties in England and Wales.

                          Ratings List

                          EuroMASTR PLC
      GBP200.75 Million Mortgage-Backed Floating-Rate Notes
                         Series 2007-1V

      Ratings Lowered And Removed From CreditWatch Negative

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

                       Ratings Affirmed

                                     Rating
                                     ------
                        To          From
                        --          ----
                        A1          AAA
                        A2          AAA
                        B           AA
                        MERCS       AAA


EXPRESS COMPOSITES: Appoints Joint Administrators from PwC
----------------------------------------------------------
On Nov. 25, 2008, Stephen Mark Oldfield and Robert William
Birchall of PricewaterhouseCoopers LLP were appointed joint
administrators of:

   -- Express Composites Ltd.,
   -- 3G Doors Ltd.,
   -- Ex-Press Plastics (Process Equipment) Ltd., and
   -- Friars 520 Ltd.

These companies can be reached at:

         Room 5
         Hethel Engineering Centre
         Chapman Way
         Hethel
         Norwich
         NR14 8FB
         England


FEBREY LTD: Names Joint Liquidators from Grant Thornton
-------------------------------------------------------
Nigel Morrison and Trevor O'Sullivan of Grant Thornton were
appointed joint liquidators of Febrey Ltd. on Nov. 21, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Febrey Ltd.
         Hartwell House
         55-61 Victoria Street
         Bristol
         BS1 6FT
         England


ICESAVE: FSCS Urges Remaining 24,000 Savers to Reclaim Money
------------------------------------------------------------
BBC News reports that about 24,000 people are yet to reclaim their
savings in Icesave.

The Financial Services Compensation Scheme is urging the remaining
savers to claim their money by December 30 this year, otherwise
they will have to send in paper application forms to get their
money, which could take a further six weeks to process, the report
relates.

The FSCS, the report recounts, started the repayment process in
November.

According to the report, so far 174,000 people have used the
online system.

"The accelerated online process we have created has enabled the
vast majority of Icesave customers to claim their compensation,"
Jonathan Clark, the FSCS director of claims, was quoted by the
report as saying.  "Those who have not yet claimed can do so by
logging on to their Icesave accounts and following the
instructions in the second email, which is posted on our website."

The FSCS, the report states, has now handed GBP3.2 billion back to
Icesave customers.

Citing the Daily Telegraph, the TCR-Europe on Nov. 6, 2008,
reported that all Icesave accounts were frozen in the UK on
October 7, when its parent bank, Landsbanki, went into
receivership in Iceland.  After it emerged that the Icelandic
compensation scheme had insufficient funds to meet its guarantees,
the UK Government, the TCR-Europe report recalled, stepped in,
declaring it would protect all UK savers in full.

                     About Icesave

Icesave is the UK branch of Landsbanki Islands hf (trading under
the registered name Icesave).  It is an EEA bank that is
authorized by the Fjarmalaeftirlitio (FME), the financial services
regulator in Iceland.


INVENSYS PLC: Taps Sir Nigel Rudd as Chairman
---------------------------------------------
Invensys plc in a press statement on Thursday, December 4, 2008,
said that Sir Nigel Rudd will be joining the Board of Invensys plc
as a non-executive director and Deputy Chairman on January 1,
2009.  It is intended that he will become Chairman with effect
from the date of the retirement of the present Chairman, Martin
Jay which, as previously announced, is due to take place following
the Annual General Meeting in July 2009.

Mr. Rudd is Chairman of BAA Limited and Pendragon PLC and a non-
executive director of Barclays Bank PLC (and Deputy Chairman), BAE
Systems plc and Sappi Limited.  His previous chairmanships include
Alliance Boots, Pilkington, Williams and Kidde.

"I am delighted that I will be able to hand over to such an
experienced individual as Nigel when I retire from the Board next
year.  His extensive industrial knowledge together with his
considerable record of being chairman of major public companies
are ideally suited to help Invensys on the next stage of its
journey," Mr. Jay commented.

"Invensys is now at an interesting point as it moves to build upon
the sound financial and operational foundation that has been
created.  I look forward to working with the Board and the
executive team in the next stage of the Company's development,"
Mr. Rudd commented.

                  About Invensys Plc

Based in London, United Kingdom, Invensys Plc --
http://www.invensys.com/-- is a global automation, controls and
process solutions Group operating in more than 60 countries
worldwide.  The company operates through six units: Controls,
Process Systems, Rail Systems, APV, Wonderware, and Eurotherm.

As reported in the TCR-Europe on May 28, 2007, at March 31,
2007, the Company's balance sheet GBP2 billion in
total assets and GBP2.1 billion in total liabilities, resulting
in a GBP140 million stockholders' deficit.

                         *    *    *

Invensys PLC's GBP400 million credit facility carries a 'BB+'
senior unsecured debt rating from Standard & Poor's Ratings
Services.  The rating was placed in August 2008.

Invensys also carries a Ba1 corporate family rating from Moody's
Investors Service.  The rating was upgraded by Moody's to its
current level from Ba3 in June 2008.  Moody's said the outlook is
stable.


LAVELLE DESIGN: Names Joint Administrators from Grant Thornton
--------------------------------------------------------------
On Nov. 25, 2008, Leslie Ross and David Michael Riley of Grant
Thornton UK LLP were appointed joint administrators of:

   -- Lavelle Design Ltd.,
   -- Unity Garments Ltd., and
   -- Uniwear International Ltd.

The company can be reached at:

         The Old Mill
         9 Soar Lane
         Leicester
         Leicestershire
         LE3 5DE
         England


LEHMAN BROTHERS: Inks Pact with PwC on Winding Down of U.K Assets
-----------------------------------------------------------------
Lehman Brothers Holdings, Inc., obtained approval from the U.S.
Bankruptcy Court for the Southern District of New York to enter
into what it called a transition services agreement with its
European units.

LBHI signed the agreement dated Nov. 13, with partners at
PriceWaterhouseCoopers LLC, administrators of its units based in
the United Kingdom, in a bid to continue availing their services,
which it said are still critical to its operations as well as to
those of its subsidiaries in bankruptcy.

The U.K.-based Lehman units include Lehman Brothers Europe
Limited, Lehman Brothers International Europe, Lehman Brothers
Holdings Plc, and Lehman Brothers Ltd.  These companies had been
placed in administration following the bankruptcy filing of LBHI.

Neuberger Berman Holdings LLC, a non-debtor affiliate of LBHI, is
also a party to the agreement.

Shai Waisman, Esq., at Weil Gotshal & Manges, in New York, said in
a court filing that LBHI and its units in bankruptcy require the
agreement primarily to unwind their assets in the United Kingdom.

The bankrupt companies reportedly hold a large book of business in
the United Kingdom, consisting of more than one million trading
positions and billions of dollars in receivables to the estates.

Mr. Waisman said that Lehman Brothers Holdings cannot trade or
evaluate those trading positions without the assistance of its
U.K.-based units and their employees familiar with managing the
business.

"Only those employees fully understand the positions and the
counterparties involved and it would prove extremely costly and
unfeasibly slow to unwind these positions through other
personnel," he said, adding that more "critical" personnel would
likely resign from the U.K. Lehman units without the transition
services agreement.

The U.K.-based Lehman units also control data about LBHI's
business in Europe.  LBHI reportedly lost access to the
information system and was sealed off from their trading positions
after those units were put under administration.

Mr. Waisman said that LBHI's bankruptcy filing meanwhile affected
its services to its U.K.-based units, which are now seeking the
company's continued assistance through the transition services
agreement.

"The [transition services agreement] strikes an even-handed
balance among the parties, and is in the best interests of these
estates and their creditors," he said.

The key terms of the agreement are:

  (1) The U.K.-based Lehman units and LBHI will continue to
      render those services they previously provided to each
      other prior to the bankruptcy filing.

  (2) The U.K.-based Lehman units will make available to LBHI
      their employees to assist the company and vice-versa.

  (3) LBHI can access its U.K.-based units' information system
      and vice-versa for a period of 24 months starting Nov. 13.
      Each company is required to grant an irrevocable, royalty-
      free license to the intellectual property in any software
      or technology it used in operating its business during the
      period Sept. 22, 2007, and Sept. 15, 2008.

  (4) Each company is required to make available its facilities,
      infrastructure and employees necessary for the delivery of
      the needed services.  For a period of 24 months after
      Nov. 13, each company will make available the services of
      its employees and contractors who have material knowledge
      of its operations and assets, as well as its books and
      records about its operations.

  (5) The U.K.-based Lehman units are required to cooperate
      with LBHI in establishing new companies or in obtaining
      authorizations from a government or regulatory agency.

  (6) During the period Sept. 15 to Nov. 13, the remuneration
      costs for any employees of the U.K.-based Lehman units
      who work in Lehman's investment management business or
      private equity business will be charged to LBHI, together
      with an amount equal to 20% of those remuneration costs as
      payment for the services.

      For a period of six months starting Nov. 13, each company
      will be charged the remuneration costs of all its
      employees; an amount equal to 20% of those remuneration
      costs as payment for the services; and additional costs
      agreed by the companies.  After this period, the company
      availing the service will be charged at a cost equal to
      the reasonable fully loaded costs and expenses to the
      company providing the service incurred as a direct result
      of the recipient's requirements, plus 15% of such cost.

  (7) The recipient will indemnify and hold harmless the company
      providing the services for any claim or damage owed to
      third parties.  The company providing the services will
      not have liabilities to the recipient in connection with
      services rendered under the agreement, except for those
      resulting from its gross negligence or willful misconduct.
      The liability and indemnification should not exceed the
      aggregate amount of 125% of the charges paid or payable to
      the company for its services.

  (8) Until the bankruptcy court approves the agreement, the
      U.K.-based Lehman units are not required to fulfill its
      obligations under the agreement, with the exception of
      disbursing the bonuses and remuneration costs for
      employees where Neuberger pre-funds those disbursements.

A full-text copy of the transition services agreement is available
without charge at:

       http://bankrupt.com/misc/LehmanEur_TransitionSvcsDeal.pdf

Prior to the Court's decision, Thomson Reuters PLC and Thomson
Reuters Corporations filed an objection, demanding LBHI to
identify the products and services that would be shared under the
transition services agreement.

Reuters complained that LBHI did not describe in detail what
products and services would be exchanged under the deal, leaving
them wondering whether or not they include the products and
services they are providing to the bankrupt company under their
contracts.

Thomson Reuters and LBHI are parties to various intellectual
property content, license, maintenance, support and other
agreements.  Reuters objects to the sharing of the products and
services its providing to Lehman Brothers Holdings with its U.K.-
based units without their consent and that they would demand
payment for any of their services and products that might be
included in the transition services agreement.

                     About Lehman Brothers

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

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).  Several other affiliates followed
thereafter.

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

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
United States District Court for the Southern District of New
York, entered an order commencing liquidation of Lehman Brothers,
Inc., pursuant to the provisions of the Securities Investor
Protection Act in the case captioned Securities Investor
Protection Corporation v. Lehman Brothers Inc., Case No. 08-CIV-
8119 (GEL).  James W. Giddens has been appointed as trustee for
the SIPA liquidation of the business of LBI

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.  Nomura Holdings Inc., the
largest brokerage house in Japan, on Sept. 22 reached an agreement
to purchased Lehman Brothers Holdings, Inc.'s operations in Europe
and the Middle East less than 24 hours after it reached a deal to
buy Lehman's operations in the Asia Pacific for US$225 million.
Nomura paid only US$2 dollars for Lehman's investment banking and
equities businesses in Europe, but agreed to retain most of
Lehman's employees.

              International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.  The
two units of Lehman Brothers Holdings, Inc., which has filed for
bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of
JPY4 trillion -- US$38 billion).  Lehman Brothers Japan Inc.
reported about JPY3.4 trillion (US$33 billion) in liabilities in
its petition.  Akio Katsuragi, a former Morgan Stanley executive,
runs Lehman's Japan units.

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

(Lehman Brothers Bankruptcy News, Issue No. 11; Bankruptcy
Creditors' Service, Inc., <http://bankrupt.com/newsstand/>or
215/945-7000).


SILVER GROUP: Taps Joint Liquidators from Tenon Recovery
--------------------------------------------------------
C. B. Barrett and T. Dixon of Tenon Recovery were appointed joint
liquidators of Silver Group Fuels Ltd. on Nov. 21, 2008, for the
creditors' voluntary winding-up proceeding.

The company can be reached through Tenon Recovery at:

         Clive House
         Clive Street
         Bolton
         BL1 1ET
         England


SIMPLY SAUSAGES: Taps Joint Liquidators from Smith & Williamson
---------------------------------------------------------------
Stephen John Tancock and Stephen John Adshead of Smith &
Williamson Ltd. were appointed joint liquidators of Simply
Sausages Retail Ltd. on Nov. 11, 2008, for the creditors'
voluntary winding-up proceeding.

The company can be reached through Smith & Williamson Ltd. at:

         First Floor
         89 King Street
         Maidstone
         Kent
         ME14 1BG
         England


STERLING SCAFFOLDING: Names Joint Administrators from Tenon
-----------------------------------------------------------
Steve P. Ross and Ian W. Kings of Tenon Recovery were appointed
joint administrators of Sterling Scaffolding Ltd. on Nov. 18,
2008.

The company can be reached through Tenon Recovery at:

         Tenon House
         Ferryboat Lane
         Sunderland
         Tyne & Wear
         SR5 3JN
         England


UKLI LTD: Names Joint Liquidators from Deloitte
-----------------------------------------------
L. A. Manning and C. M. Siddle of Deloitte LLP  were appointed
joint liquidators of UKLI Ltd. on Nov. 21, 2008, for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         UKLI Ltd.
         Hill House
         1 Little New Street
         London
         EC4A 3TR
         England


===============
X X X X X X X X
===============


* S&P Notes EU Metals, Mining Sector Debt Recovery Prospect Risks
-----------------------------------------------------------------
Assessing recovery prospects in the European metals and mining
sector is increasingly important in light of the recent steep
falls in metals prices.  Steel, base metals, and bulk commodity
prices are sharply lower due to slowing demand in metals-consuming
sectors such as construction and autos across both developed and
emerging markets, according to a commentary article published by
Standard & Poor's Ratings Services.

"The recovery prospects for debt issued by speculative-grade
European metals and mining firms are exposed by a particularly
high level of unsecured lending," said S&P's credit analyst Marc
Lewis.  "This is the result of loose credit standards in recent
years, but additional risks come from unfavorable insolvency
regimes and currency mismatches, which affect a high proportion of
rated issuers based in Russia and Ukraine."


* Moody's: European Speculative-Grade Default Rate to Reach 12.5%
-----------------------------------------------------------------
The European issuer-weighted speculative-grade default rate for
the 12 months to the end of November 2008 was 1.3%, unchanged from
the revised level as at the end of October, according to Moody's
Investors Service.  It is expected to climb to 2.6% by the end of
this year and to 12.5% a year from now.

On a global basis, Moody's speculative-grade default rate rose to
3.1% at the end of November from a revised level of 2.9% at end of
October.  A year ago, the global default rate was 0.9%.  The US
default rate also increased in November, to 3.4% from 3.3% one
month previously.

Moody's default rate forecasting model predicts that the global
speculative-grade default rate will rise to 4.2% by the end of
2008 and increase further to 10.4% by November 2009, with the US
rate reaching 4.6% by the end of 2008 and 10.7% in a year's time.
"Corporate default rates will likely climb sharply throughout 2009
as the ongoing credit crisis leaves few options for companies
needing to refinance maturing debt or amend loan agreements that
move out of compliance with covenants," says Kenneth Emery,
Moody's Director of Corporate Default Research.  "Moody's expects
distressed debt exchanges to comprise a growing share of total
defaults as they remain one of the few available options for
companies to reduce debt service burdens."

"The European default rate is expected to rise more quickly and
sharply than the US default rate due to relatively more recent
rating downgrades and negative outlooks among European issuers,"
adds Emery.

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 51.8% at the end of November
2008, up from 48.5% at the end of October and the highest level
since Moody's launched the index in 1996.

Worldwide, a total of eight Moody's-rated corporate issuers
defaulted in November.  All but one are based in North America
(five in the US and two in Canada); the only exception is Cap Cana
S.A., which is based in the Dominican Republic.

This brings the year-to-date global total of defaulted companies
to 80, compared to only 17 in the same period last year.  Of the
80 defaulters, 66 are from North America and nine are from Europe.

As a percentage of dollar volume outstanding, the global
speculative-grade default rate edged higher to 2.5% in November
from 2.4% in October.  The corresponding European rate was 0.9% in
November, unchanged from the previous month.

In the leveraged loan market, a total of three Moody's-rated
issuers defaulted on loans in November.  The trailing 12-month
loan default rate among US leveraged loan issuers remained
unchanged at 2.9% from October to November.


* S&P Says Recent Corporate Events Affect Up to 75% European CDOs
-----------------------------------------------------------------
A recent surge in the number of downgrades among European
synthetic collateralized debt obligations was partly due to the
high degree of overlap between different transactions' portfolios,
according to a report published by Standard & Poor's Ratings
Services.

"Three years ago S&P reported that rating dynamics in the European
synthetic CDO sector can be highly dependent on idiosyncratic
events among corporate credits," said surveillance credit analyst
Andrew South.  "Recent bankruptcies and government-backed
restructurings of seven entities in the financial services sector
have triggered numerous credit events in synthetic CDOs,
providing a pertinent case study for this effect."

While these seven entities represent only about 0.4% of the
investment-grade financial services issuers S&P rate, the effect
on synthetic CDO ratings has been widespread, with about 75% of
European synthetic CDOs -- roughly 1,200 transactions --
referencing at least one of these seven entities.

Mr. South explained, "The rating on a single CDO tranche may well
be raised or lowered following a rating action in the reference
portfolio.  Therefore, if the corporate name in question is widely
referenced in the CDO market, similar rating actions in a large
number of CDO transactions are equally possible."

He added that this doesn't necessarily mean that individual CDO
tranches have higher default risk than equivalently-rated
securities in other asset classes, but it does mean that an
investor's portfolio of CDO tranches may have different overall
risk characteristics.

"In our view, an investor who holds multiple CDO tranches would be
well advised to look through to the underlying portfolios to
understand the extent of any diversification benefits," Mr. South
noted.

                            *********

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 * * *