TCREUR_Public/081212.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, December 12, 2008, Vol. 9, No. 247

                            Headlines

A U S T R I A

AGRAR ENERGIE: Claims Registration Period Ends December 31
ALOIS NUNNER: Claims Registration Period Ends December 31
ISMET ALIBABIC: Claims Registration Period Ends December 31
EHMANN BAU: Claims Registration Period Ends January 5
ERGEE TEXTILGRUPPE: Claims Registration Period Ends January 5


F R A N C E

DELPHI CORP: Wants Sole Right to File Plan Extended to Jan. 31
LEHMAN BROTHERS: Inks Settlement with French Units
THOMSON SA: Weaker Sales Cued Rating Cut to 'B', S&P Says


G E R M A N Y

CREATIVE-LINE BODENBELAGS: Claims Registration Ends January 14
ELECTRO METALL: Claims Registration Period Ends January 10
HIVOLIN GMBH: Claims Registration Period Ends January 9
LEHMAN BROTHERS: Deutsche Bank Sues to Recover US$72.5MM
MEGAPOLYMERS SUED: Claims Registration Period Ends January 5

TRIGA IT-SYSTEME: Claims Registration Period Ends January 2


I C E L A N D

AVIANCE: 150 Workers Accept Survival Plan


I C E L A N D

STRAUMUR-BURDARAS INVESTMENT: Fitch Retains Neg. Watch on Ratings


I R E L A N D

TABERNA EUROPE: S&P Junks Ratings on Class D & E Notes


K A Z A K H S T A N

AIS-STROY LLP: Proof of Claim Deadline Slated for Jan. 23
ARTI-OIL LLP: Creditors Must File Claims by January 23
KAZAKH MYS: Claims Filing Period Ends January 23
MARKETING CENTRE: Creditors' Claims Due on January 23
MEGA INVEST: Claims Registration Ends January 27

STROY MARKET-NOVOSEL: Claims Deadline Slated for January 23
TECHNOSEVICE 2000 K: Creditors Must File Claims by Jan. 23
TENIR INVEST: Claims Filing Period Ends January 27
TORT AUL: Creditors' Claims Due on January 23
WEST INVEST: Claims Registration Ends January 23


K Y R G Y Z S T A N

EXPRESS SPETS: Creditors Must File Claims by January 23
TALLHA & MOBEEN: Creditors Must File Claims by January 23


L A T V I A

PAREX BANKA: Stable After Gov't Intervention, New Chair Says


N E T H E R L A N D S

BETULA FUNDING: Fitch Reiterates Negative Watch


R U S S I A

BALT-GAZ-STROY LLC: Court Names Temporary Insolvency Manager
EKSPO-STROY-TEKS LLC: Creditors Must File Claims by January 5
EVRAZIA-TSENTR CJSC: Creditors Must File Claims by February 5
NORD-INVEST LLC: Court Names Temporary Insolvency Manager
POLYMER LLC: Creditors Must File Claims by February 5

STROY-SERVIS-PLUS LLC: Court Names Insolvency Manager
UIS-STROY LLC: Creditors Must File Claims by February 5
YUG-STROY LLC: Stavropolskiy Bankruptcy Hearing Set February 26
YUNIT-BANK CJSC: Creditors Must File Claims by February 5
ZLYNSKIY CANNERY: Creditors Must File Claims by January 5

* MOSCOW OBLAST: S&P Puts 'B-' Rating on Planned Sr. Unsec. Bond


S P A I N

BANCO BILBAO: Fitch Takes Rating Actions on Six Spanish CDOs
FONDO DE TITULIZACION: S&P Downgrades Ratings on UCI Classes
PYME VALENCIA: Fitch Downgrades Ratings on Two Classes to Low-B
RURALPYME 2: Moody's Downgrades Class C Rating to 'BB'


S W E D E N

* SWEDEN: Gov't Plans to Offer Loans to Car Sector


S W I T Z E R L A N D

BIELAVIA LLC: Creditors' Proofs of Claim Due by December 21
FARLEX LLC: Proofs of Claim Filing Deadline is December 21
GENERAL MOTORS: EU Unit in Talks w/ Unions On Cost Savings Plan
KRATO JSC: December 24 Set as Deadline to File Claims
LEHMAN BROTHERS FINANCE: Creditors Must File Claims by Dec. 23

LEHMAN BROTHERS INT'L.: Deadline to File Claims Set Dec. 23
OMIGO JSC: Creditors Have Until December 23 to File Claims


U K R A I N E

AGRO-PROGRESS LLC: Creditors Must File Claims by Dec. 26, 2008
AGRO-SPUTNIK LLC: Creditors Must File Claims by December 26
DNIEPROBALT LLC: Creditors Must File Claims by December 26
DONSNAB LLC: Creditors Must File Claims by December 26
KADIS LLC: Creditors Must File Claims by December 26

KRASNAYA UKRAINA: Creditors Must File Claims by December 26
RADOSIN LLC: Creditors Must File Claims by December 26
STAKHANOVSKOYE LLC: Creditors Must File Claims by Dec. 26, 2008
ZIRCONIUM REFRACTORY: Creditors Must File Claims by December 26
ZOLOTIYE PESKI-2 : Creditors Must File Claims by December 26


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Qantas Board Gives Go Signal on Merger Talks
BUCKS AUTO: Appoints Joint Liquidators from Smith & Williamson
EMI GROUP: Says it Will Not Default on Citigroup Loans
HBOS PLC: Tribunal Rejects Legal Challenge Against Lloyds Merger
JJB SPORTS: Total Group Sales Down 7.5% from July 28 to December 7

KAUPTHING SINGER: IoM Gov't Backs Bondholder Compensation Package
LANDSBANKI GUERNSEY: Savers to Meet UK Politicians Next Week
MONITOR OIL: Court Converts Case to Chapter 7 Liquidation
NEW STAR: Chairman to Step Down After Refinancing Deal w/ Banks
PULLAN CONSTRUCTION: Taps Joint Administrators from PwC

RADNEY HOLDINGS: Names Joint Liquidators from Tenon Recovery
REGAL ELECTRICAL: Taps Joint Liquidators from Tenon Recovery
SOUTH COAST: Appoints Joint Liquidators from Tenon Recovery
STEELART LTD: Names Joint Liquidators from Tenon Recovery
SUNKING FLOWERS: Taps Joint Liquidators from KPMG

YORK HOUSE: Appoints Joint Administrators from Ernst & Young

* UK: SocGen Says Covenant Breach Looms as Property Prices Fall
* UK: Charities with Frozen Accounts in Icelandic Banks Seek Help


X X X X X X X X

* Fitch Gives Negative Outlook for European Pharmaceutical Sector
* House Passes US$14 Billion Financial Aid for Detroit's Big 3

* BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors


                         *********

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


AGRAR ENERGIE: Claims Registration Period Ends December 31
----------------------------------------------------------
Creditors owed money by LLC Agrar Energie (FN 280341t) have until
Dec. 31, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Andreas Rabl
         Ringstrasse 14
         4600 Wels
         Austria
         Tel: 07242/41824
         Fax: 07242/41824-80
         E-mail: office@rakanzlei.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on Jan. 15, 2009, for the
examination of claims at:

         Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Weisskirchen an der Traun, Austria, the Debtor
declared bankruptcy on Nov. 10, 2008, (Bankr. Case No. 20 S
141/08y).


ALOIS NUNNER: Claims Registration Period Ends December 31
---------------------------------------------------------
Creditors owed money by LLC Alois Nunner (FN 66281y) have until
Dec. 31, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Wolfgang Reinisch
         Hauptplatz 28
         8430 Leibnitz
         Austria
         Tel: 03452/83 29 6
         Fax: 03452/83 29 6 - 20
         E-mail: leibnitz@reinisch-wisiak.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:10 a.m. on Jan. 7, 2009, for the
examination of claims at:

         Graz Land Court
         Room 222
         Graz
         Austria

Headquartered in Kittenberg, Austria, the Debtor declared
bankruptcy on Nov. 11, 2008, (Bankr. Case No. 26 S 134/08p).


ISMET ALIBABIC: Claims Registration Period Ends December 31
-----------------------------------------------------------
Creditors owed money by KG Ismet Alibabic have until Dec. 31,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Clemens Krabatsch
         Hafergasse 7
         4600 Wels
         Austria
         Tel: 07242/35264
         Fax: 07242/35264-14
         E-mail: kanzlei.krabatsch@inode.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:40 a.m. on Jan. 15, 2009, for the
examination of claims at:

         Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Wels, Austria, the Debtor declared bankruptcy on
Nov. 11, 2008, (Bankr. Case No. 20 S 142/08w).


EHMANN BAU: Claims Registration Period Ends January 5
-----------------------------------------------------
Creditors owed money by LLC Ehmann Bau (FN 293779d) have until
Jan. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Otto Werschitz
         CGO Masseverwalt
         Neutorgasse 47/I
         8010 Graz
         Austria
         Tel: 0316/820620
         Fax: 0316/820620-4
         E-mail: office@cgo-masseverwaltung.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Jan. 20, 2009, for the
examination of claims at:

         Graz Land Court
         Hall K
         Room 205
         Austria

Headquartered in Wundschuh, Austria, the Debtor declared
bankruptcy on Oct. 28, 2008, (Bankr. Case No. 40 S 56/08w).


ERGEE TEXTILGRUPPE: Claims Registration Period Ends January 5
-------------------------------------------------------------
Creditors owed money by LLC Ergee Textilgruppe (FN 32238i) have
until Jan. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Alois Autherith
         Utzstrasse 13
         3500 Krems
         Austria
         Tel: 02732/83485
         Fax: 02732/83485-10
         E-mail: office@autham.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 8:30 a.m. on Jan. 21, 2009, for the
examination of claims at:

         Trade court of Krems
         Hall A
         2nd Floor
         Austria

Headquartered in CT, Austria, the Debtor declared bankruptcy on
Schrems, (Bankr. Case No. 9 S 60/08h).


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


DELPHI CORP: Wants Sole Right to File Plan Extended to Jan. 31
--------------------------------------------------------------
Delphi Corp. has asked the U.S. Bankruptcy Court for the Southern
District of New York to preclude its creditors' committee from
filing a competing plan before Jan. 31, Bill Rochelle of Bloomberg
News reports.  The Delphi's reorganization plan that was confirmed
by the Bankruptcy Court in January 2008 prevents anyone other then
the committee from proposing a plan.

Mr. Rochelle also notes that the new motion, to be heard Dec. 17,
is silent about whether Delphi can emerge from Chapter 11 before
the fate of former parent General Motors Corp. is sorted out.

The hearing to consider preliminary approval of the Delphi Corp.'
and its affiliates' proposed modifications to their confirmed
First Amended Joint Plan of Reorganization is also scheduled for
hearing on Dec. 17, 2008, after the schedule was adjourned three
times.

Delphi presented to the Bankruptcy Court changes to an already
confirmed Plan after Appaloosa Management, L.P., and other
investors backed out from their commitment to provide US$2.550
billion in exit financing.  The new plan does not require
financing from plan investors, but requires more funding from
primary customer General Motors Corp., which is facing its own
liquidity crisis, and US$3.75 billion from an exit debt financing
and a rights offering.

The Preliminary Plan Modification Hearing was originally scheduled
for October 23, 2008, and contemplated Delphi's emergence from
bankruptcy by Dec. 31, 2008.  The modified plan does not require,
in addition to US$4,700,000,000 of debt exit financing,
Appaloosa's US$2,550,000,000 cash-for-equity investment, which was
the highlight of the Court-confirmed, but unconsummated, Jan. 25,
2008 PoR.  The modified plan requires debt exit financing of
US$2.75 billion plus a US$1,000,000,000 raised through a rights
offering.

Delphi, however, has signed deals with General Motors Corp. and
its DIP Lenders, led by JPMorgan Chase Bank, N.A., in order to
have access to borrowed cash until mid-2009.  Delphi, however, has
said that "in the face of the current unprecedented turbulence in
the credit markets and uncertainty in the automobile industry," it
does not anticipate emerging from chapter 11 prior to December 31,
2008, when its financing deals mature.

"Despite the efforts of the federal government to provide
stability to the capital markets and banks, the markets have
remained extremely volatile and liquidity in the capital markets
has been nearly frozen, resulting in an unprecedented challenge
for the Debtors to successfully attract emergence capital funding
for their Modified Plan, particularly in light of the current
conditions in the global automotive industry," John Wm. Butler,
Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in
Chicago, Illinois, said, in a court filing.

Under the modifications to the confirmed plan, unsecured creditors
could recover 38.8% compared with 100% under the confirmed pLan.

                    About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional headquarters
in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the solicitation
of votes on the First Amended Plan on Dec. 20, 2007.  The Court
confirmed the Debtors' First Amended Plan on Jan. 25, 2008.  The
Plan has not been consummated after a group led by Appaloosa
Management, L.P., backed out from their proposal to provide
US$2,550,000,000 in equity financing to Delphi.
(Delphi Bankruptcy News, Issue No. 151; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: Inks Settlement with French Units
--------------------------------------------------
Lehman Brothers Holdings, Inc., asks the U.S. Bankruptcy Court for
the Southern District of New York to approve a settlement
agreement with three French affiliates that operate Lehman's
investment business in France.  The three affiliates are: (i)
Banque Lehman Brothers S.A., (ii) Lehman Brothers Conseil S.A.,
and (iii) Lehman Brothers Services S.N.C.

LBHI also seeks authority to vote, in its capacity as a
shareholder of BLB, for the sale of BLB's business to Banque
Nomura France and the voluntary dissolution of BLB, both of which
are predicated, inter alia, upon the implementation of the
Settlement Agreement.

The Settlement Agreement, which provides for a settlement of
intercompany claims between LBHI and the Lehman French
Companies, is a condition precedent for the BNF Transaction. The
BNF Transaction is expected to decrease BLB's liabilities
significantly, because, among other things, BLB will no longer be
liable for certain debts that BNF is assuming.

Richard P. Krasnow, Weil, Gotshal & Manges LLP, in New York,
asserts LBHI will benefit from this reduction in BLB's
liabilities, given LBHI's potential exposure under a support
letter, dated June 15, 1994, wherein LBHI committed to the Banque
de France, the French central bank, and the Commission Bancaire,
the French banking agency, among other things, to provide BLB with
financial support when so requested by the Banque de France.

Mr. Krasnow adds that in addition to enabling the BNF Transaction
to occur, the Settlement Agreement, among other things, provides
for a release of all claims BLB could raise against LBHI under the
Support Letter and provides that BLB will waive its intercompany
claim against LBHI except to the extent that BLB does not have
sufficient assets to pay its creditors.  Moreover, the combination
of the BNF Transaction and the Settlement Agreement will
facilitate BLB's ability to wind down its affairs through a
solvent liquidation, which entails a cooperative and orderly
process for negotiating with creditors and minimizing liabilities,
rather than through an insolvent liquidation, which is likely to
result if the Settlement Agreement is not approved.

                        Claims Settled

LBHI, on the one hand, and the Lehman French Companies, on the
other hand, have asserted numerous claims against each other as of
September 12, 2008.  LBHI has asserted these claims against the
Lehman French Companies:

  -- A claim of EUR8,056,444 by LBHI against LBS resulting
     from LBHI's funding of LBS through the prepetition cash
     management system.

  -- A claim of EUR41,529,491 by LBHI against BLB resulting
     from LBHI's funding of BLB through the prepetition cash
     management system.

  -- A claim of EUR8,087,665 by LBHI against BLB resulting
     from an intercompany agreement concerning the Lehman
     employee incentive plan.

  -- A claim of EUR27,135,925 by LBHI against BLB resulting
     from a subordinated loan agreement between the parties.

BLB has asserted a claim of EUR178,021,639 against LBHI relating
to the Debtors' prepetition cash management system.

The parties dispute the validity or the amount of the claims they
asserted against each other.  The Settlement Agreement provides
that:

   1. LBHI waives the LBHI Claims in their entirety.

   2. BLB waives the BLB Claim other than EUR93,212,114, which
      is the net amount resulting from a netting of the LBHI
      Claims against the BLB Claims.  LBHI retains the right
      to object to the Remaining BLB Claim, and BLB retains
      the burden of proving that the Remaining BLB Claim is an
      allowed claim.

   3. The French Administrator will use his best efforts to
      settle all of BLB's liabilities with assets other than
      the Remaining BLB Claim.

The Settlement Agreement is null and avoid, if, among other
things, (i) LBHI and the chairman in office of BLB do not vote in
favor of the Solvent Liquidation at the general meeting of
shareholders of BLB on or prior to June 30, 2009, and (ii) the
shareholders of LBS and LBC do not vote in favor of the voluntary
dissolution of LBS and LBC on or prior to June 30, 2009

                    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 -- US$38 billion).  Lehman Brothers Japan Inc.
reported about JPY3.4 trillion ($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. 12; Bankruptcy
Creditors' Service, Inc., <http://bankrupt.com/newsstand/>or
215/945-7000).


THOMSON SA: Weaker Sales Cued Rating Cut to 'B', S&P Says
---------------------------------------------------------
Standard & Poor's Ratings Services published a report, "Why S&P
has Downgraded Thomson S.A. To 'B'," which addresses some of the
most frequently asked questions S&P received since it lowered the
ratings on Dec. 2 on the France-based technology group.

The downgrade to 'B' from 'B+' and placement of the rating on
CreditWatch with negative implications last week was the latest in
a series of downgrades of the company by S&P this year and
followed the group's release of its sales for the third quarter of
2008.

Thomson's credit quality has seriously eroded during 2008 as a
result of several cumulative factors, and the Dec. 2 action
reflects S&P's greater emphasis on aspects of the company's
financial flexibility and liquidity.

"Our concerns hinged on weaker-than-expected sales in the third
quarter amid a further general deterioration in the economic and
operating environment," said S&P's credit analyst Leandro De
Torres Zabala.

"The CreditWatch placement reflects our lack of visibility about
Thomson's headroom under its financial covenants and overall
financial flexibility at year-end 2008 and the first half of
2009," added Mr. De Torres Zabala.


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


CREATIVE-LINE BODENBELAGS: Claims Registration Ends January 14
--------------------------------------------------------------
Creditors of Creative-Line Bodenbelags GmbH have until Jan. 14,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:15 a.m. on Feb. 4, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court Nordhorn
         Hall 42
         Seilerbahn 15
         48529 Nordhorn
         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:

         Marc Daniel Schulz
         C/o Pluta Rechtsanwalts GmbH
         Ludgeristrasse 54
         48143 Muenster
         Germany
         Tel: 0251/16283-0
         Fax: 0251/16283-11
         E-mail: muenster@pluta.net

The District Court opened bankruptcy proceedings against the
company on Dec. 2, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Creative-Line Bodenbelags GmbH
         Attn: Walter Kukowski, Manager
         Hengeloer Strasse 8
         48455 Bad Bentheim
         Germany


ELECTRO METALL: Claims Registration Period Ends January 10
----------------------------------------------------------
Creditors of Electro Metall GmbH have until Jan. 10, 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. 10, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Meeting Room A234
         Second Floor
         Isle 2
         42103 Wuppertal
         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. Marc d Avoine
         Doeppersberg 19
         42103 Wuppertal
         Germany
         Tel: 0202-245070
         Fax: 0202-2450777

The District Court opened bankruptcy proceedings against the
company on Dec. 1, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Electro Metall GmbH
         Industriestr. 29
         40822 Mettmann
         Germany

         Attn: Uwe Berger, Manager
         Kammgarnweg 5
         42477 Radevormwald
         Germany


HIVOLIN GMBH: Claims Registration Period Ends January 9
-------------------------------------------------------
Creditors of Hivolin GmbH have until Jan. 9, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:50 a.m. on Feb. 16, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Duisburg
         Hall C407
         Kardinal-Galen-Strasse 124-132
         47058 Duisburg
         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:

         Thomas Lauterfeld
         Friedrich-Ebert-Str. 34
         45468 Muelheim an der Ruhr
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 1, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Hivolin GmbH
         Attn: Dr. Joachim Marx, Manager
         Schwerinstr. 34-38
         45476 Muelheim
         Germany


LEHMAN BROTHERS: Deutsche Bank Sues to Recover US$72.5MM
--------------------------------------------------------
In a complaint filed before the U.S. Bankruptcy Court for the
Southern District of New York, Deutsche Bank said that the money
had been mistakenly transferred to Lehman Brothers Holdings'
account held at Bank of America.

The money was supposed to be transferred to a certain fund as
required under its master agreement with Deutsche Bank.  The name
of the fund was not mentioned in the complaint.

Attorney for Deutsche Bank, Joshua Dorchak, Esq., at Bingham
McCutchen, in New York, said that Lehman Brothers Holdings
refused to return the sum on grounds that one of its units is
allegedly owed by the German bank about US$290 million.

"[Deutsche Bank] is aware of no contractual or other relationship
with [Lehman Brothers Holdings] that could give rise to a debt in
any amount owing from [Deutsche Bank] to [Lehman Brothers
Holdings]," he said.

Mr. Dorchak said that Deutsche Bank paid US$72.5 million to the
fund, which agreed not to file any claims against the bank on
account of the incorrect transfer.

Deutsche Bank asks the Court to correct a simple but substantial
mistake, Mr. Dorchak wrote.  Deutsche Bank, according
Mr. Dorchak, meant to transfer the US$72.5 million to another
party but sent it instead to Lehman Brothers Holdings Inc., "due
to both a clerical error at DB and a miscommunication between DB
and its counterparty."

                    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
$639 billion in assets and $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 $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; Bankruptcy Creditors' Service,
Inc., <http://bankrupt.com/newsstand/>or 215/945-7000).


MEGAPOLYMERS SUED: Claims Registration Period Ends January 5
------------------------------------------------------------
Creditors of megaPolymers Sued GmbH have until Jan. 5, 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. 17, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Karlsruhe
         Hall IV
         First Floor
         Schlossplatz 23
         76131 Karlsruhe
         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:

         Steffen Rauschenbusch
         O3
         11 + 12
         68161 Mannheim
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 1, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         MegaPolymers Sued GmbH
         Attn: Frank Volg, Manager
         Goethestr. 15a
         76275 Ettlingen
         Germany


TRIGA IT-SYSTEME: Claims Registration Period Ends January 2
-----------------------------------------------------------
Creditors of Triga IT-Systeme + Grafik GmbH have until Jan. 2,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:05 a.m. on Feb. 2, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Pinneberg
         Hall 5
         Station Route 17
         25421 Pinneberg
         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:

         Gregor Schoene
         Haferweg 22
         22769 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Nov. 30, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Triga IT-Systeme + Grafik GmbH
         Attn: Sabine Hofmann, Manager
         Siethwender Chaussee 4
         25335 Raa-Besenbek
         Germany


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


AVIANCE: 150 Workers Accept Survival Plan
-----------------------------------------
RTE Business reports that 150 workers at Aviance airport ground
handling company at Dublin airport voted to accept a survival plan
aimed at saving their jobs.

Aviance, the report recounts, announced earlier this week that it
was closing its Dublin operation in March and making all staff
redundant.

According to the Irish Times, a recent review of the company's
operations revealed that its current cost base could not be
sustained under the Dublin business model.

The company, the Irish Times adds, partly blamed the planned
closure on the economic climate.

The survival plan, which was devised to reduce the cost base
without extensive job losses, was accepted by 67% of workers.  It
involves a 15% pay cut, and significant roster changes, RTE
Business discloses.

However, staff will retain certain entitlements, including sick
pay and leave days, RTE Business notes.

The trade union Siptu negotiated the plan with the management on
Thursday, the Irish Times relates.


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


STRAUMUR-BURDARAS INVESTMENT: Fitch Retains Neg. Watch on Ratings
-----------------------------------------------------------------
Fitch Ratings says it is maintaining the Rating Watch Negative on
Iceland-based Straumur-Burdaras Investment Bank's Long-term Issuer
Default rating of 'B', Short-term IDR of 'B' and Individual Rating
of 'D/E'.  A full rating breakdown is provided at the end of this
commentary.

The decision to maintain the RWN, which was placed on Straumur's
ratings on November 5, 2008, reflects continued pressure on
Straumur's immediate liquidity, despite the repayment by the bank
of its EUR200 million syndicated loan that matured on December 9,
2008.  Initially, the RWN reflected the refinancing risk inherent
in the repayment of the syndicated loan, which represented a
significant cash consideration.  Management's actions enabled the
bank to close short-term bank refinancing of EUR133 million last
week.  While the new funding has helped to ease the immediate
pressure on Straumur's liquidity, future refinancing and liquidity
needs remain reliant on improved global financial markets and
market sentiment.  Until this happens, liquidity is contingent on
Straumur's planned asset sales and Fitch believes the bank has a
limited margin of safety over the next few months.

Given the bank's risk profile and the impact of the market
environment on its funding and liquidity, management in recent
weeks has concentrated on securing immediate liquidity needs.
Straumur faces larger debt maturities in 2010 and 2011, but a
number of smaller tranches are maturing in 2009.  Fitch has been
informed by management that Straumur is on track to dispose of
certain assets, although the agency believes this may be
challenged by current difficult conditions in the financial
markets.  In Fitch's opinion, should asset sales not be realized
in sufficient time to meet any liquidity shortfall, default is
probable - in the absence of external support - and the agency
would expect to downgrade the Long-term IDR to 'CC' and the
individual rating to 'E'.

For the first 10 months of 2008, Straumur reported a net loss of
EUR275 million on the back of substantial asset write-downs and
impairments.  The significant deterioration in asset quality
resulted from the global financial slowdown and the difficulties
faced by Icelandic companies, including the related impact of the
simultaneous failure of the three large Icelandic commercial
banks.  Further balance sheet reductions, mainly through asset
sales to support the bank's liquidity and reduce concentration
risk and equity exposures, should help to restore the soundness of
Straumur's balance sheet.  In addition, the bank has made
continued progress in developing customer-driven income streams.
Integrating and leveraging the various platforms that have been
established or acquired recently will be key to enable the bank to
achieve sustainable profitability.  The building up of the bank's
franchise in the current difficult environment will represent a
major challenge although some opportunities may continue to arise
from the changes in the market place.

Straumur's ratings are:

  -- Long-term IDR 'B'; RWN maintained

  -- Short-term IDR 'B'; RWN maintained

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- Individual rating 'D/E'; RWN maintained

  -- Senior debt 'B'; RWN maintained; Recovery Rating of 'RR4'
     affirmed

  -- Subordinated debt 'CCC+'; RWN maintained; Recovery Rating of
     'RR6' affirmed


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


TABERNA EUROPE: S&P Junks Ratings on Class D & E Notes
------------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch
negative and lowered its credit ratings on the class A-2, B, C-1,
C-2, D and E notes issued by Taberna Europe CDO II PLC.  The class
A-1 notes in this transaction have been removed from CreditWatch
negative and affirmed.

The rating actions follow two asset defaults and S&P's downgrades
of assets in the underlying portfolio.  S&P has also incorporated
into its rating analyses, the revised assumptions related to
collateralized debt obligations of hybrid securities.

As a result of these revised assumptions, coupled with S&P's
opinion of the deteriorating credit quality of the underlying
portfolio, S&P believes that there will be an increase in the
scenario default rates for the transaction.  In addition, in S&P's
cash flow analysis of the transaction, changes in credit
enhancement levels have resulted in a decrease in break-even
default rates for the tranches in the CDO.  In S&P's opinion, the
increase in SDRs and decrease in BDRs are not commensurate with
S&P's previous ratings.

Taberna Europe CDO II is a managed CDO characterized by a diverse
pool of assets. S&P understand that approximately 12% of the
portfolio currently consists of hybrid securities.  The remainder
of the portfolio is invested in corporate loans and bonds, with
limited exposure to CMBS and financial institutions.

On July 18, S&P placed all rated notes in this transaction on
creditwatch negative in anticipation of the impact of expected
changes made to the assumptions used for rating CDOs backed by
hybrid securities.

                           Ratings List

                    Taberna Europe CDO II PLC
                EUR900 Million Floating-Rate Notes

      Ratings Removed from Creditwatch Negative And Lowered

             Class        To             From
             -----        --             ----
             A-2          A           AAA/Watch Neg
             B            BBB-        AA/Watch Neg
             C-1          B+          A/Watch Neg
             C-2          B-          A-/Watch Neg
             D            CCC-        BBB/Watch Neg
             E            CCC-        BB/Watch Neg

     Ratings Removed from Creditwatch Negative and Affirmed

             Class        To             From
             -----        --             ----
             A-1          AAA         AAA/Watch Neg


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


AIS-STROY LLP: Proof of Claim Deadline Slated for Jan. 23
---------------------------------------------------------
LLP Construction Company Ais-Stroy has opted for liquidation.
Creditors have until Jan. 23, 2009, to submit written proofs of
claims to:

         LLP Construction Company Ais-Stroy
         Ugolnaya Str. 30
         Astana
         Kazakhstan


ARTI-OIL LLP: Creditors Must File Claims by January 23
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Arti-Oil insolvent.

Creditors have until Jan. 23, 2009, to submit written proofs of
claims to:

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


KAZAKH MYS: Claims Filing Period Ends January 23
------------------------------------------------
Representation of LLP Corporation Kazakh Mys has opted for
liquidation.  Creditors have until Jan. 23, 2009, to submit
written proofs of claims to:

         LLP Corporation Kazakh Mys
         Alihanov Str. 4
         Karaganda
         Kazakhstan


MARKETING CENTRE: Creditors' Claims Due on January 23
-----------------------------------------------------
LLP Marketing Centre has opted for liquidation.  Creditors have
until Jan. 23, 2009, to submit written proofs of claims to:

         LLP Marketing Centre
         Abai ave. 97
         Semey
         East Kazakhstan
         Kazakhstan


MEGA INVEST: Claims Registration Ends January 27
------------------------------------------------
LLP Almaty Mega Invest has opted for liquidation.  Creditors have
until Jan. 27, 2009, to submit written proofs of claims to:

         LLP Almaty Mega Invest
         Tulebvaev/Karasai batyr Str. 130/49-27
         Almaty
         Kazakhstan


STROY MARKET-NOVOSEL: Claims Deadline Slated for January 23
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Construction Company Stroy Market-Novosel insolvent.

Creditors have until Jan. 23, 2009, to submit written proofs of
claims to:

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


TECHNOSEVICE 2000 K: Creditors Must File Claims by Jan. 23
----------------------------------------------------------
LLP Technosevice 2000 K has opted for liquidation.  Creditors have
until Jan. 23, 2009, to submit written proofs of claims to:

         LLP Technosevice 2000 K
         Micro District 18, 14-7
         Enbekshynsky
         Shymkent
         160050 South Kazakhstan
         Kazakhstan


TENIR INVEST: Claims Filing Period Ends January 27
--------------------------------------------------
LLP Tenir Invest has opted for liquidation.  Creditors have until
Jan. 27, 2009, to submit written proofs of claims to:

         LLP Tenir Invest
         Isaev Str. 161-23
         Almaty
         Kazakhstan


TORT AUL: Creditors' Claims Due on January 23
---------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Tort Aul insolvent.

Creditors have until Jan. 23, 2008, to submit written proofs of
claims to:

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


WEST INVEST: Claims Registration Ends January 23
------------------------------------------------
LLP West Invest has opted for liquidation.  Creditors have until
Jan. 23, 2009, to submit written proofs of claims to:

         LLP West Invest
         Timiryazev Str. 16-3
         Astana
         Kazakhstan


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


EXPRESS SPETS: Creditors Must File Claims by January 23
-------------------------------------------------------
LLC Construction Company Express Spets Stroy has declared
insolvency.  Creditors have until Jan. 23, 2009, to submit written
proofs of claims to:

         LLC Construction Company Express Spets Stroy
         Ibraimov Str. 190
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 67-18-70


TALLHA & MOBEEN: Creditors Must File Claims by January 23
---------------------------------------------------------
LLC Tallha & Mobeen Motors has declared insolvency.  Creditors
have until Jan. 23, 2009, to submit written proofs of claims to:

         LLC Tallha & Mobeen Motors
         Frunze Str. 89
         Novo-Pavlovka
         Sukuluksky
         Chui
         Kyrgyzstan


===========
L A T V I A
===========


PAREX BANKA: Stable After Gov't Intervention, New Chair Says
------------------------------------------------------------
In a press conference held on Monday December 8, 2008, Nils
Melngailis, the recently appointed Chairman of Parex banka
emphasized that the Bank was continuing to work normally and that
conditions in the banking sector were stabilizing following
Government intervention.

"Since my appointment on Friday I have been working intensively
with the senior management of Parex banka to form a full
understanding of the current situation.  It is now clear to me
that much recent speculation about the Bank has been very much
exaggerated.  In particular, the outflow of deposits has been
overstated and has decreased significantly.  Even so, the global
environment is obviously very challenging and we are monitoring
developments in the market closely.  In this respect one of the
most important factors for us is the outcome of the State's
negotiations with the International Monetary Fund," Mr. Melngailis
stated in the press conference.

Directly answering questions about the level of deposit
withdrawals from the Bank last week, Mr. Melngailis stressed that
these amounted to LVL50 million rather than the 200 million that
had been widely reported.  He further added that the subject of a
potential strategic investor is not a current issue: "Currently,
the foremost priority is to maintain stability at Parex banka.  We
will of course consider seriously any interesting proposals that
may be made, but our main focus is to deal with the situation
created by the global liquidity crunch."

In order to clarify the issues related to the possible amount of
support required by Parex banka, Mr. Melngailis stated that the
Bank was not seeking a specific sum from the Government: "The
situation is continuing to develop and we are as usual working
very actively with our clients and depositors.  Our success in
retaining the confidence of our clients naturally reduces the
extent, to which we look to the Government for support, but in any
case the scope of the Government's intervention is dependent on
the State's negotiations with the IMF."

Likewise, Mr. Melngailis highlighted that the most important tasks
definitely include communication with top personnel of the Bank,
employees and clients.  "Despite the events of the last three
weeks, the management and staff of Parex banka have ensured that
the Bank has remained fully functional," Mr.  Melngailis said.
Other key tasks for the Bank mentioned by Mr. Melngailis include
supporting the Government in negotiations with International
Monetary Fund and concluding negotiations with Syndicated lenders.

Mr. Melngailis is a former Executive Director of Lattelecom, the
leading communications company in the Baltics.

After leaving the position of Executive Director at Lattelecom in
April this year, Mr. Melngailis established the investment firm
Riga Capital, where he became President.  Under his leadership the
Lattelecom Group introduced and implemented an extensive
modernization project, transforming the fixed communications
operator into a modern electronic communications provider in the
fields of telecommunications, Internet and digital TV.  He also
represents the U.S. investment company Blackstone Group in the
Baltic Region.

Mr.  Melngailis was previously a Partner at the Northern Europe
division of IBM Business Consulting Services, as well as a Partner
at PriceWaterhouse Coopers in London and the responsible Partner
for the Baltics.  He was also the manager in charge at Coopers &
Lybrand auditors in Latvia.

Citing Mr. Melngailis, The Baltic Course reported Monday that the
financial investor, that could help Parex banka recover with an
investment in share capital or a loan, could be the European Bank
for Reconstruction and Development (EBRD).

                     New Management Board

The new Management Board of Parex banka took office on
December 5, 2008.

The following senior managers of Parex banka have been appointed
to the Board of the Bank: Guntis Be?avskis, Senior Vice President
and Head of Customer Services Division, Valters Abele, Head of
Credit Risk Division and Vladimirs Ivanovs, Vice President,
Customer Service Department.

The Management Board of Parex banka was elected after the
acquisition agreement was signed on December 5, 2008.  Under the
terms of the agreement, 84.83% of Parex banka's shares have been
transferred to the state-owned Mortgage and Land Bank of Latvia.
The existing minority shareholders of Parex banka will retain the
remaining 15.17% of the Bank's capital.  The new board has been
approved by the local regulator FCMC.

Founded in May 1992, JSC Parex Banka --
http://www.parexgroup.com/-- is a commercial bank with assets
exceeding 4.46 billion.   It offers its clients integrated
services in areas such as lending, payment cards, leasing, asset
management and securities trading.  It has more than 70 branches,
customer service centers and settlement group, or nearly all
regions of Latvia and the major cities.  Currently, bank branches
and customer service centers in Latvia employs more than 2,600
people.

                         *   *   *

As reported in the TCR-Europe on Dec. 9, 2008, Moody's Investors
Service downgraded the bank financial strength rating of Parex
Bank to E from E+.  The outlook on this rating is now stable.
Moody's also downgraded the bank's local and foreign
currency long-term bank deposit and debt ratings to B2 from Ba1,
and placed them on review for possible further downgrade. The
bank's Not Prime short-term rating was affirmed.

The rating actions follow the announcement of deposit withdrawal
restrictions put in place earlier this week by the Cabinet of
Ministers of the Republic of Latvia and the Financial and Capital
Market Commission.

As reported in the TCR-Europe on Dec. 5, 2008, Fitch Ratings
downgraded Latvia-based Parex Banka's Long-term Issuer Default
Rating to 'RD' from 'BB', Short-term IDR to 'RD' from 'B', and
Support rating to '5' from '3'.  Parex's Support Rating Floor has
been changed to 'No Floor' from 'BB' and Individual rating has
been affirmed at 'F'.  In addition, Fitch has downgraded the
senior unsecured ratings to 'CC' from 'BB' and assigned Recovery
Rating 'RR4'.  Fitch has removed Long-term IDR and senior
unsecured ratings from Rating Watch Negative.

The rating action follows the decision by the Latvian government
and the Financial and Capital Market Commission on Dec. 1, 2008 to
set restrictions on the fulfillment of the obligations by Parex.
This decision restricts the deposit withdrawals by certain
parties.


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


BETULA FUNDING: Fitch Reiterates Negative Watch
-----------------------------------------------
Fitch Ratings issued a press release on December 2 highlighting
the uncertainties regarding Betula 1 BV's ability to make
interests payment on the class A notes.  Fitch has now received
confirmation from the trustee, Deutsche Bank, that there are
sufficient Euro proceeds in Betula's account to make the interest
payment due on December 15.

As previously indicated, the transaction remains highly exposed to
exchange rate volatility and interest rate risk.  The transaction
remains on Rating Watch Negative pending clarification of the
replacement agent's plan for the transaction.  If no replacement
swap counterparty is found or a restructuring plan put forth in
the coming weeks, the transaction will likely be downgraded to CCC
rating category.

The transaction was initially placed on RWN on October 10, 2008,
following the placement of Landsbanki Islands hf into receivership
on October 7 and subsequent downgrade of Landsbanki's Long-term
Issuer Default Rating to 'D'.


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


BALT-GAZ-STROY LLC: Court Names Temporary Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Kaliningrad appointed V. Pasko as
Temporary Insolvency Manager for Balt-Gaz-Story (Construction).
The case is docketed under Case No. A215710/2008.  He can be
reached at:

         Inzhenernaya Str. 2/19
         Kaliningrad
         Russia


EKSPO-STROY-TEKS LLC: Creditors Must File Claims by January 5
-------------------------------------------------------------
Creditors of LLC Ekspo-Stroy-Teks Industrial Construction
Company (TIN 7701250499) have until Jan. 5, 2009, to submit proofs
of claims to:

         S. Deyev
         Insolvency Manager
         Post User Box 24
         115569 Moscow
         Russia

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A40-67607/08-95-215B.

The Debtor can be reached at:

         LLC Ekspo-Stroy-Teks
         Building 2
         Novoryazanskaya Str. 26/28
         107066 Moscow
         Russia


EVRAZIA-TSENTR CJSC: Creditors Must File Claims by February 5
-------------------------------------------------------------
Creditors of CJSC Evrazia-Tsentr Commercial Bank (Registration A
2839) have until Feb. 5, 2009, to submit proofs of claims to:

         Investment Insurance Agency
         Acting as Insolvency Manager
         Post User Box 48
         109052 Moscow
         Russia
         Tel: 8800-20008-05

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A4068202/0888-182B.

The Debtor can be reached at:

         CJSC Evrazia-Tsentr
         Building 2
         Solyanka Str. 3
         109028 Moscow
         Russia


NORD-INVEST LLC: Court Names Temporary Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Smolensk appointed P. Protsenko as
Temporary Insolvency Manager for LLC Nord-Invest (Construction).
The case is docketed under Case No. A62-623/2008.  He can be
reached at:

         Post User Box 30
         115372 Moscow
         Russia

The Debtor can be reached at:

         LLC Nord-Invest
         Office 202
         Isakovskogo Str. 5
         Smolensk
         Russia


POLYMER LLC: Creditors Must File Claims by February 5
-----------------------------------------------------
Creditors of LLC Polymer (PSRN 1067150003854) have until
Feb. 5, 2009, to submit proofs of claims to:

         Ye. Shevchuk
         Insolvency Manager
         Office 1
         Frunze Str. 7
         300041 Tula
         Russia

The Arbitration Court of Tula commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A682003/0847/B-08.

The Debtor can be reached at:

         LLC Polymer
         Building A
         Tsentralnaya Str. 17
         Kvartal 5/15
         Dubovka
         Uzlovaya
         Tulskaya
         Russia


STROY-SERVIS-PLUS LLC: Court Names Insolvency Manager
-----------------------------------------------------
The Arbitration Court of Tatarstan appointed V. Galiyev as
Insolvency Manager for LLC Stroy-Servis-Plus (Construction).
The case is docketed under Case No. A6514056/2008-SG439.  He
can be reached at:

         Post User Box 50
         420049 Kazan
         Tatarstan
         Russia

The Debtor can be reached at:

         LLC Stroy-Servis-Plus
         Almetyevsk
         Russia


UIS-STROY LLC: Creditors Must File Claims by February 5
-------------------------------------------------------
Creditors of LLC UIS-STROY (TIN 7726316712, PSRN 1027739720249)
(Construction) have until Feb. 5, 2009, to submit proofs of claims
to:

         N. Gorbunov
         Insolvency Manager
         Post User Box 101
         119313 Moscow
         Russia

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A4038606/0838-106B.

The Debtor can be reached at:

         LLC UIS-STROY
         Building 2
         Fruktovaya Str. 7
         117556 Moscow
         Russia


YUG-STROY LLC: Stavropolskiy Bankruptcy Hearing Set February 26
---------------------------------------------------------------
The Arbitration Court of Stavropolskiy will convene on Feb. 26,
2009, to hear bankruptcy supervision procedure on LLC Yug-Stroy
(Construction).  The case is docketed under Case No. A63
16812/08-S511.

The Temporary Insolvency Manager is:

         I. Konygin
         Admiralskogo Str. 51/3
         357538 Pyatigorsk
         Russia

The Debtor can be reached at:

         LLC Yug-Stroy
         Lenina Str. 189
         Zheleznovodsk
         Stavropolskiy
         Russia


YUNIT-BANK CJSC: Creditors Must File Claims by February 5
---------------------------------------------------------
Creditors of CJSC Yunit-Bank Commercial Bank have until
Feb. 5, 2009, to submit proofs of claims to:

         Investment Insurance Agency
         Acting as Insolvency Manager
         Office 6
         Floor 4
         Uritskogo Str. 19
         443030 Samara
         Russia
         Tel: 8(846)273-43-52
              8-800-200-08-05

The Arbitration Court of Samara commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A5516133/2008.

The Debtor can be reached at:

         CJSC Yunit-Bank
         Proezd named after G. Mitireva 11
         443079 Samara
         Russia


ZLYNSKIY CANNERY: Creditors Must File Claims by January 5
---------------------------------------------------------
Creditors of PE Zlynskiy Cannery Plant (TIN 3213001942) have
until Jan. 5, 2009, to submit proofs of claims to:

         L. Shvets
         Insolvency Manager
         Ostrovskogo Str. 8
         Yefremov
         301848 Tulskaya
         Russia

The Arbitration Court of Bryanskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A097729/200832.

The Debtor can be reached at:

         PE Zlynskiy Cannery Plant
         Sovetskaya Str. 97
         Zlynka
         243600 Bryanskaya
         Russia


* MOSCOW OBLAST: S&P Puts 'B-' Rating on Planned Sr. Unsec. Bond
----------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B-' long-
term debt rating and 'ruBBB-' Russia national scale rating to the
proposed RUR33 billion (US$1.2 billion) senior unsecured bond with
an amortizing repayment schedule to be issued by the Moscow Oblast
(local currency B-/Watch Neg/--; Russia national scale rating
ruBBB-/Watch Neg/--).  The ratings on the bond are on CreditWatch
with negative implications because the ratings on the oblast are
on CreditWatch with negative implications.

The oblast will use the bond to refinance most of its short-term
debt due by year-end 2008, which encompasses RUR14.6 billion in
loans from state-owned banks, the put option (RUR5.2 billion) on a
bond issued by Moscow Oblast Mortgage Agency, and guarantees of
loans raised by the oblast's companies and municipalities of about
RUR17.7 billion.

The ratings on the bond mirror those on the oblast.  The issue, to
be placed on Dec. 11, 2008, will have seven, 170-day coupon
payments of about 18% per year each, and a 39-month maturity.  In
November 2009, 15% of the principal will be redeemed, followed by
20% in October 2010, 25% in September 2011, and the remaining 40%
to be redeemed in March 2012.

S&P lowered the long-term rating on the oblast to 'B-' and placed
the rating on CreditWatch with negative implications on Oct. 27,
2008, following uncertainty about the refinancing terms of the
oblast's massive short-term direct and guaranteed debt due by the
end of 2008.

S&P will review the implications of the likely bond placement on
the oblast's overall refinancing needs and liquidity position in
the coming days.


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


BANCO BILBAO: Fitch Takes Rating Actions on Six Spanish CDOs
------------------------------------------------------------
Fitch Ratings has taken various rating actions on six Spanish
small- and medium-sized enterprise collateralised debt obligation
transactions originated by Banco Bilbao Vizcaya Argentaria (BBVA,
rated 'AA-'(AA minus)/'F1+'/Outlook Positive).  In total, 10
tranches were downgraded and 14 tranches were affirmed while 14
tranches were assigned Negative rating Outlooks and nine tranches
were assigned Stable Outlooks.  One tranche had its Negative
Outlook maintained.

Fitch assigned Negative rating Outlooks between May and September
2008 to 19 tranches issued by Spanish SME CDO transactions due to
a combination of declining performance trends and the worsening
Spanish macroeconomic environment.  In a special report published
on May 8, 2008, Fitch discussed why the agency had a negative view
for the next one-to-two years and highlighted macroeconomic trends
and concerns which, the agency believes, increase the downgrade
risk for such notes over the long term.

Since then, there has been a notable increase in delinquencies.
While significant losses have yet to materialize, Fitch expects
further deterioration due to the downturn in the Spanish economy
and the significant exposure of the transactions to the real
estate and related sectors.  While recent declines in interest
rates and augmented collection efforts may relieve some degree of
stress in the portfolios, Fitch expects performance to weaken
further over the near-term due to deteriorating macroeconomic
conditions and growing stress in the real estate and construction
sectors.  Given these expectations, the transactions listed below
were reviewed to determine if the levels of credit protection were
sufficient to maintain the current ratings.

In the analysis undertaken, assumptions on probability of default
and loss severity were made with regards to current delinquencies
as well as the performing portfolio.  With respect to default
probability, the base assumption on the current portion of the
portfolio was revised upward to reflect the non-investment grade
nature of underlying obligors and to consider how the portfolios
or loans could perform through-the cycle.  This resulted in an
increase in the base default probability to approximately 10-15%,
which was then adjusted to reflect the remaining weighted average
life of the portfolio.  The base case PD was further adjusted to
account for the existing portfolio delinquency pipeline, with
loans in later state delinquency buckets assigned progressively
higher default probabilities (up to 100% for loans greater than
six months in arrears).  On the recovery side, Fitch assumed the
'BB' recovery from the initial rating analysis from each
transaction.  These updated PD and recovery assumptions were used
to determine an updated loss expectation for each portfolio and
then compared against existing subordination available for each
tranche, with minimum coverage ratios of the updated expected loss
driving the actions noted below.  Seasoning, excess spread, as
well as industry and obligor concentration risk also factored into
Fitch's credit view.

The rating actions, the transactions' main portfolio parameters
and rating action rationales are:

BBVA-6 FTPYME, Fondo de Titulizacion de Activos

  -- Class A1 (ISIN ES0370460000) downgraded to 'AA' from 'AAA';
     assigned a Negative Outlook

  -- Class A2 (G) (ISIN ES0370460018) affirmed at 'AAA'; assigned
     a Stable Outlook

  -- Class B (ISIN ES0370460026) downgraded to 'BB' from 'AA-'(AA
     minus); assigned a Negative Outlook

  -- Class C (ISIN ES0370460034) downgraded to 'B' from 'BBB+';
     Negative Outlook maintained

As of October 31, 2008, 90+ day delinquencies stood at 2.1% of the
current portfolio, real estate and related sectors exposure at
36.3%, and the largest geographical region is Catalonia at 21.9%.
The reserve fund of EUR21.3 million provides 2% of credit
enhancement.  In comparison, the largest obligor is EUR6 million
and the top five obligors total EUR26.9 million.  The transaction
closed in 2007 and has not benefited from de-leveraging to the
same degree as older vintage transactions.  The current portfolio
is 66.3% of initial portfolio balance.  Fitch's analysis of the
delinquency pipeline and updated default forecast for the current
portion of the portfolio indicate that current levels of credit
protection for classes A1, B, and C are no longer adequate to
support the ratings.  As such, these classes have been downgraded
and assigned Negative Outlooks, or had a Negative Outlook
maintained, as noted above.

The Kingdom of Spain ('AAA'/'F1+'/Outlook Stable) guarantees the
class A2 (G) notes.

BBVA-5 FTPYME, Fondo de Titulizacion de Activos

  -- Class A1 (ISIN ES0370459002) downgraded to 'AA' from 'AAA';
     assigned a Negative Outlook

  -- Class A2 (ISIN ES0370459010) downgraded to 'AA' from 'AAA';
     assigned a Negative Outlook

  -- Class A3 (G) (ISIN ES0370459028) affirmed at 'AAA'; assigned
     a Stable Outlook

  -- Class B (ISIN ES0370459036) downgraded to 'BBB' from 'AA';
     assigned a Negative Outlook

  -- Class C (ISIN ES0370459044) affirmed at 'AAA'; assigned a
     Stable Outlook

As of October 31, 2008, 90+ day delinquencies stood at 2.9% of the
current portfolio, real estate and related sectors exposure at
31.8%, and the largest geographical region is Valencia at 16.9%.
The reserve fund of EUR29.5 million provides 2.8% of credit
enhancement.  In comparison, the largest obligor is EUR6.8 million
and the top five obligors total EUR26.3 million.  The transaction
closed in 2006 and has not benefited from de-leveraging to the
same degree as older vintage transactions.  The current portfolio
is 52.3% of initial portfolio balance.  Fitch's analysis of the
delinquency pipeline and updated default forecast for the current
portion of the portfolio indicate that current levels of credit
protection for classes A1, A2, and B are no longer adequate to
support the ratings.  As such, these classes have been downgraded
and assigned Negative Outlooks as noted above.

The Kingdom of Spain guarantees the class A3 (G) notes and the
European Investment Fund ('AAA'/'F1+'/Outlook Stable) guarantees
the class C notes.

BBVA-4 PYME, Fondo de Titulizacion de Activos

  -- Class A2 (ISIN ES0370458012) affirmed at 'AAA'; assigned a
     Negative Outlook

  -- Class B (ISIN ES0370458020) downgraded to 'AA' from 'AA+';
     assigned a Negative Outlook

  -- Class C (ISIN ES0370458038) downgraded to 'BB' from 'BBB+';
     assigned a Negative Outlook

As of October 31, 2008, 90+ day delinquencies stood at 2% of the
current portfolio, real estate and related sectors exposure at
31.2%, and the largest geographical region is Catalonia at 22.7%.
The transaction as a whole has benefited from de-leveraging that
has reached 28.8% of the initial portfolio balance.  While the
reserve fund balance of EUR15.2 million provides 3.8% of credit
enhancement to class C, the largest obligor is EUR3.7 million and
the top five obligors total EUR17.3 million.  Class C is highly
exposed to the obligor concentration risk.  Based on Fitch's
analysis of the delinquency pipeline and updated default forecast
for the current portion of the portfolio, the levels of credit
protection for classes B and C are no longer adequate to support
the ratings.  As such, the ratings have been downgraded and
assigned Negative Outlooks.  The class A2 was affirmed at 'AAA',
but assigned a Negative Outlook due to ongoing performance
concerns.

BBVA-3 FTPYME, Fondo de Titulizacion de Activos

  -- Series A1 (ISIN ES0310110004) affirmed at 'AAA'; assigned a
     Stable Outlook

  -- Series A2 (G) (ISIN ES0310110012) affirmed at 'AAA'; assigned
     a Stable Outlook


  -- Series B (ISIN ES0310110020) affirmed at 'A+'; assigned a
     Negative Outlook

  -- Series C (ISIN ES0310110038) downgraded to 'BB' from 'BBB+';
     assigned a Negative Outlook

As of October 31, 2008, 90+ day delinquencies stood at 1.3% of the
current portfolio, real estate and related sectors exposure at
30.9%, and the largest geographical region is Catalonia at 22.4%.
The transaction as a whole has benefited from de-leveraging that
has reached 26.1% of the initial portfolio balance.  While an
available subordinated line of credit of EUR10.7 million provides
4% of credit enhancement to Series C, the largest obligor is
EUR3.6 million and the top five obligors total EUR14.3 million.
The lowest-rated tranche, Series C, is highly exposed to obligor
concentration risk, as well as any increase in expected defaults
and assumed loss severity, and hence has been downgraded to below
investment grade.  Series B was assigned a Negative Outlook due to
performance concerns.

The Kingdom of Spain guarantees the Series A2 (G) notes.

BBVA-Hipotecario 3, Fondo de Titualizacion de Activos

  -- Class A2 (ISIN ES0314227010) affirmed at 'AAA'; assigned a
     Negative Outlook

  -- Class B (ISIN ES0314227028) affirmed at 'A'; assigned a
     Negative Outlook

  -- Class C (ISIN ES0314227036) downgraded to 'BB' from 'BBB+';
     assigned a Negative Outlook

As of September 30, 2008, 90+ day delinquencies stood at 1.3% of
the current portfolio, and the largest geographical region is
Andalucia at 21.8%.  The transaction has benefited to some degree
from de-leveraging that has reached 45.6% of the initial portfolio
balance.  The available subordinated line of credit of EUR24.5
million provides 3.6% of credit enhancement to class C.  However,
the class C is highly exposed to any increase in expected defaults
and assumed loss severity, and hence has been downgraded to below
investment grade.  Classes A2, B and C have also been assigned
Negative Outlooks due to future performance concerns given
deteriorating macroeconomic conditions.

BBVA-2 FTPYME - ICO, Fondo de Titulizacion de Activos

  -- Series CCA (ISIN ES0338397047) affirmed at 'AAA'; assigned a
     Stable Outlook

  -- Series CSA (ISIN ES0338397054) affirmed at 'AAA'; assigned a
     Stable Outlook

  -- Series DCA (ISIN ES0338397062) affirmed at 'AAA'; assigned a
     Stable Outlook

  -- Series DSA (ISIN ES0338397070) affirmed at 'AAA'; assigned a
     Stable Outlook

  -- Series ESA (ISIN ES0338397088) affirmed at 'A-'(A minus);
     assigned a Negative Outlook

As of October 31, 2008, the transaction, which closed in 2000, has
de-leveraged to 5.5% of the initial portfolio balance.  The 90+
day delinquencies stood at 7.2% of the current portfolio.  The
available subordinated line of credit facility of EUR7.5 million
provides 13.7% credit enhancement to Series ESA.  However, in the
absence of a clean up call, this series remains exposed to the
obligor concentration risk that increases as the transaction de-
leverages.  The largest obligor is EUR3.1 million and the top five
obligors total EUR8.7 million.  Hence, Series ESA was assigned a
Negative Outlook.

The Kingdom of Spain guarantees the Series CCA and DCA notes.


FONDO DE TITULIZACION: S&P Downgrades Ratings on UCI Classes
------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class B and C
mortgage-backed floating-rate notes issued by UCI 14, UCI 15, and
UCI 17 and the class B, C, D notes issued by UCI 16 due primarily
to poor pool performance.

At the same time, S&P affirmed the ratings on the class A notes in
those transactions, the class D notes issued by UCI 17, and the
class E notes issued by UCI 16.  S&P has also affirmed the ratings
on all classes of notes issued by U.C.I. 4, UCI 7, UCI 8, UCI 9,
UCI 10, UCI 11, and UCI 12.

The rating actions follow a full credit and cash flow analysis of
the most recent transaction information that S&P has received.
This analysis showed that the credit enhancement available for UCI
14, UCI 15, UCI 16, and UCI 17's junior classes was not sufficient
to maintain the current ratings.  This was mainly driven by
further deterioration in pool performance.

The UCI deals are Spanish residential mortgage-backed securities
transactions backed by pools of first-ranking mortgages secured
over owner-occupied residential properties in Spain, and pools of
unsecured personal or second-lien mortgage loans all associated
with the first-ranking mortgages originated by Union de
CreditosInmobiliarios, Establecimiento Financiero de Credito S.A.

Long-term arrears in the portfolios backing UCI 14, UCI 15, UCI
16, and UCI 17 are rising at a faster rate than earlier cohorts of
deals from this originator.  Arrears greater than 90 days reached
6.66% in UCI 14, 7.84% in UCI 15, 9.02% in UCI 16, and 7.41% in
UCI 17 at the last interest payment date.

S&P inputs current delinquency and default information into its
credit and cash flow analysis.  This demonstrated that the junior
notes in these deals could no longer withstand S&P's rating
stresses at their previously assigned rating levels.

S&P conducted the same credit and cash flow analysis on UCI 4, UCI
7, UCI 8, UCI 9, UCI 10, UCI 11, and UCI 12 and concluded that S&P
is able to affirm the ratings on all of these notes.  The ratings
on these transactions are currently supported by higher credit
enhancement levels provided by a cash reserve and subordinated
tranches due to transaction amortization, and lower long-term
arrears than the later deals.

UCI 18 closed relatively recently, in February 2008.  At this
stage, S&P is closely monitoring the evolution of early-stage
distressed loans and will review the transaction in more detail
should long-term arrears trends show similar patterns to the
preceding deals.

                           Ratings List

       Ratings Lowered and Removed from Creditwatch Negative

             Fondo de Titulizacion de Activos UCI 14
       EUR1,450 Million Mortgage-Backed Floating-Rate Notes

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

             Fondo de Titulizacion de Activos UCI 15
      EUR1,451.6 Million Mortgage-Backed Floating-Rate Notes

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

             Fondo de Titulizacion de Activos UCI 16
      EUR1,819.8 Million Mortgage-Backed Floating-Rate Notes

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

             Fondo de Titulizacion de Activos UCI 17
      EUR1,415.4 Million Mortgage-Backed Floating-Rate Notes

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

                Ratings Affirmed

            Fondo de Titulizacion Hipotecaria U.C.I. 4
       EUR180.3 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        AA+

            Fondo de Titulizacion de Activos UCI 7
         EUR455 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        AA

            Fondo de Titulizacion de Activos UCI 8
       EUR600 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        AA-

            Fondo de Titulizacion de Activos UCI 9
        EUR1.25 Billion Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        AA
                          C        A

            Fondo de Titulizacion Hipotecaria UCI 10
       EUR700 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        A

            Fondo de Titulizacion de Activos UCI 11
        EUR850 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        A
                          C        BBB

            Fondo de Titulizacion Hipotecaria UCI 12
       EUR900 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA
                          B        A
                          C        BBB

            Fondo de Titulizacion de Activos UCI 14
       EUR1,450 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA

            Fondo de Titulizacion de Activos UCI 15
     EUR1,451.6 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A        AAA

            Fondo de Titulizacion de Activos UCI 16
     EUR1,819.8 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A1       AAA
                          A2       AAA
                          E        CCC-

            Fondo de Titulizacion de Activos UCI 17
      EUR1,415.4 Million Mortgage-Backed Floating-Rate Notes

                          To       From
                          --       ----
                          A1       AAA
                          A2       AAA
                          D        CCC-



PYME VALENCIA: Fitch Downgrades Ratings on Two Classes to Low-B
---------------------------------------------------------------
Fitch Ratings has downgraded the ratings of two classes and
affirmed three classes of PYME Valencia 1, FTA, and simultaneously
assigned or maintained rating Outlooks,:

  -- Class A2 (ISIN ES0372241002) affirmed at 'AAA'; assigned a
     Negative Outlook

  -- Class B (ISIN ES0372241028) affirmed at 'A'; assigned a
     Negative Outlook

  -- Class C (ISIN ES0372241051) downgraded to 'BB' from 'BBB';
     assigned a Negative Outlook

  -- Class D (ISIN ES0372241036) downgraded to 'B' from 'BB';
     Negative Outlook maintained

  -- Class E (ISIN ES0372241044) affirmed at 'CC'

The review was prompted by an increase in the amount of delinquent
loans in the transaction and concerns about Spain's macroeconomic
environment.  As of September 30, 2008, 90+ day delinquencies
stood at 2.7% of the current portfolio.  Further, the portfolio is
highly concentrated in real estate and related sectors with the
current exposure at 59.7%, and the largest geographical region is
Valencia at 60.7%.  The transaction is also exposed to obligor
concentration with the largest obligor accounting for 2% of the
portfolio and the top five obligors totaling EUR50.9 million or
9.2%.  The transaction closed in 2007 and has not benefited from
de-leveraging to the same degree as older vintage transactions.
The current portfolio is 64.9% of the initial portfolio balance,
which has led to a small increase in credit enhancement on the
notes.  The reserve fund of EUR15.3 million provides 2.7% of
credit enhancement.  While current levels of credit protection for
classes A2 and B remain sufficient to maintain the current rating,
the transaction is exposed to the delinquency pipeline, and these
notes have thus been assigned Negative Outlooks.  Fitch's analysis
of the delinquency pipeline and updated default forecast for the
current portion of the portfolio indicates that the credit
protection for classes C and D has declined markedly which is why
the notes have been downgraded to below investment grade with
Negative Outlooks as noted above.

Fitch assigned Negative rating Outlooks between May and September
2008 to 19 tranches issued by Spanish small- and medium-sized
enterprise collateralized debt obligation transactions due to a
combination of declining performance trends and the worsening
Spanish macroeconomic environment.  In a special report published
on May 8, 2008, Fitch discussed why the agency had a negative view
for the next one-to-two years and highlighted macroeconomic trends
and concerns which, the agency believes, increase the downgrade
risk for such notes over the long term.

Since then, there has been a notable increase in delinquencies.
While significant losses have yet to materialize, Fitch expects
further deterioration due to the downturn in the Spanish economy
and the significant exposure of the transaction to the real estate
and related sectors.  While recent declines in interest rates and
augmented collection efforts may relieve some degree of stress in
the portfolio, Fitch expects performance to weaken further over
the near-term due to deteriorating macroeconomic conditions and
growing stress in the real estate and construction sectors.  Given
these expectations, the transaction was reviewed to determine if
the levels of credit protection were sufficient to maintain the
current ratings.

In the analysis undertaken, assumptions on probability of default
and loss severity were made with regards to current delinquencies
as well as the performing portfolio.  With respect to default
probability, the base assumption on the current portion of the
portfolio was revised upward to reflect the non-investment grade
nature of underlying obligors and to consider how the portfolio or
loans could perform through-the cycle.  This resulted in an
increase in the base default probability to approximately 10-15%,
which was then adjusted to reflect the remaining weighted average
life of the portfolio.  The base case PD was further adjusted to
account for the existing portfolio delinquency pipeline, with
loans in later state delinquency buckets assigned progressively
higher default probabilities (up to 100% for loans greater than
six months in arrears).  On the recovery side, Fitch assumed the
'BB' recovery from the initial rating analysis.  These updated PD
and recovery assumptions were used to determine an updated loss
expectation and then compared against existing subordination
available for each tranche, with minimum coverage ratios of the
updated expected loss driving the actions noted above.  Seasoning,
excess spread, as well as industry and obligor concentration risk
also factored into Fitch's credit view.

This transaction is a cash flow securitization of secured and
unsecured loans granted by Banco de Valencia ('A-'((A
minus))/'F2'/Outlook Stable) to SMEs in Spain.  PYME Valencia 1,
FTA, a limited liability SPV incorporated under Spanish law, will
be legally represented and managed by Europea de Titulizacion,
SGFT, SA, whose activities are limited to the management of
securitization funds.


RURALPYME 2: Moody's Downgrades Class C Rating to 'BB'
------------------------------------------------------
Fitch Ratings has downgraded the rating of one class and affirmed
four classes of Ruralpyme 2 FTPYME, Fondo de Titulizacion de
Activos.  The agency has simultaneously assigned rating Outlooks:

  -- Class A1 (ISIN ES0374352005) affirmed at 'AAA'; assigned a
     Negative Outlook

  -- Class A2 (G) (ISIN ES0374352013) affirmed at 'AAA'; assigned
     a Stable Outlook

  -- Class B (ISIN ES0374352021) affirmed at 'A'; assigned a
     Negative Outlook

  -- Class C (ISIN ES0374352039) downgraded to 'BB' from 'BBB-'
     (BBB minus); Negative Outlook maintained

  -- Class D (ISIN ES0374352047) affirmed at 'CC'

The Kingdom of Spain ('AAA'/'F1+'/Outlook Stable) guarantees the
class A2 (G) notes.

The review was prompted by an increase in the amount of delinquent
loans in the transaction and concerns about Spain's macroeconomic
environment.  As of October 31, 2008, 90+ day delinquencies stood
at 2.3% of the current portfolio.  Further, the portfolio is
concentrated in real estate and related sectors with the current
exposure at 22.2%, and the largest geographical region is Aragon
at 28.9%.  The transaction is also exposed to obligor
concentration with the largest obligor accounting for 1.5% of the
portfolio and the top five obligors totaling EUR22.8 million or
6%.  The transaction closed in 2006 and has not benefited from de-
leveraging to the same degree as older vintage transactions. The
current portfolio is 63.5% of initial portfolio balance, which has
led to a small increase in credit enhancement on the notes.  The
reserve fund of EUR24 million provides 6.3% of credit enhancement.
While current levels of credit protection for classes A1 and B
remain sufficient to maintain their current ratings, the
transaction is exposed to the delinquency pipeline, and these
notes have thus been assigned Negative Outlooks.  Fitch's analysis
of the delinquency pipeline and updated default forecast for the
current portion of the portfolio indicate that the credit
protection for class C has declined markedly which is why the
tranche has been downgraded to below investment grade and assigned
a Negative Outlook as noted above.

Fitch assigned Negative rating Outlooks between May and September
2008 to 19 tranches issued by Spanish small- and medium-sized
enterprise collateralized debt obligation transactions due to a
combination of declining performance trends and the worsening
Spanish macroeconomic environment.  In a special report published
on May 8, 2008, Fitch discussed why the agency had a negative view
for the next one-to-two years and highlighted macroeconomic trends
and concerns which, the agency believes, increase the downgrade
risk for such notes over the long term.

Since then, there has been a notable increase in delinquencies.
While significant losses have yet to materialize, Fitch expects
further deterioration due to the downturn in the Spanish economy
and the significant exposure of the transaction to the real estate
and related sectors.  While recent declines in interest rates and
augmented collection efforts may relieve some degree of stress in
the portfolio, Fitch expects performance to weaken further over
the near-term due to deteriorating macroeconomic conditions and
growing stress in the real estate and construction sectors.  Given
these expectations, the transaction was reviewed to determine if
the levels of credit protection were sufficient to maintain the
current ratings.

In the analysis undertaken, assumptions on probability of default
and loss severity were made with regards to current delinquencies
as well as the performing portfolio. With respect to default
probability, the base assumption on the current portion of the
portfolio was revised upward to reflect the non-investment grade
nature of underlying obligors and to consider how the portfolio or
loans could perform through-the cycle.  This resulted in an
increase in the base default probability to approximately 10-15%,
which was then adjusted to reflect the remaining weighted average
life of the portfolio.  The base case PD was further adjusted to
account for the existing portfolio delinquency pipeline, with
loans in later state delinquency buckets assigned progressively
higher default probabilities (up to 100% for loans greater than
six months in arrears).  On the recovery side, Fitch assumed the
'BB' recovery from the initial rating analysis.  These updated PD
and recovery assumptions were used to determine an updated loss
expectation and then compared against existing subordination
available for each tranche, with minimum coverage ratios of the
updated expected loss driving the actions noted above.  Seasoning,
excess spread, as well as industry and obligor concentration risk
also factored into Fitch's credit view.

The transaction represents a cash-flow securitization of a static
portfolio of loans to Spanish SMEs granted by 14 rural credit
cooperatives.  Ruralpyme 2 is a special purpose vehicle
incorporated under the laws of Spain with limited liability.  Its
sole purpose is to acquire the portfolio of loans as collateral
for the issuance of fixed-income securities.  The assets of
Ruralpyme 2 were acquired on its behalf by Europea de Titulizacion
SGFT, S.A., a special purpose management company with limited
liability and incorporated under the laws of Spain.


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


* SWEDEN: Gov't Plans to Offer Loans to Car Sector
--------------------------------------------------
The Swedish government planned to offer loans and loan
guarantees worth several billion Swedish crowns to the country's
car sector, Adam Cox and Victoria Klesty of Reuters report citing
Swedish daily Dagens Industri.

Reuters relates that an unidentified source cited by Dagens
Industri said "It is not a question of subsidies or of the
government going in as an owner, but of loans and loan guarantees
on good terms."

However, a government spokesman declined to comment on the report,
Reuters notes.

According to Reuters, Ford and General Motors are important to the
wider Swedish economy not only because of the thousands of workers
they  employ directly, but also because of the many companies that
supply the firms.


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


BIELAVIA LLC: Creditors' Proofs of Claim Due by December 21
-----------------------------------------------------------
Creditors owed money by LLC Bielavia are requested to file their
proofs of claim by Dec. 21, 2008, to:

         Stefanie T.S. Falciani
         Liquidator
         Bruggstrasse 106
         2503 Biel/Bienne
         Switzerland

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


FARLEX LLC: Proofs of Claim Filing Deadline is December 21
----------------------------------------------------------
Creditors owed money by LLC Farlex are requested to file their
proofs of claim by Dec. 21, 2008, to:

         Terrassenweg 1a
         6301 Zug
         Switzerland

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


GENERAL MOTORS: EU Unit in Talks w/ Unions On Cost Savings Plan
---------------------------------------------------------------
Jamie Dunkley at the Daily Telegraph reports that General Motors
is in talks with union leaders in Europe over a EUR750 million
(GBP652 million) cost saving plan.

According to the report, the company said discussions were
"ongoing" at its Russelsheim office in Germany.

A spokesman for GM Europe however said details of the plan would
not be revealed until next year, the report notes.

Measures under consideration are thought to include changes to
shift patterns, shorter working weeks, pay cuts and redundancies,
the report relates.

GM Europe, which reported revenue of US$37.4 billion in 2007,
currently employs about 55,000 people, with 5000 working in the UK
by Vauxhall at its Merseyside and Luton plants, the report
discloses.

                      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.


KRATO JSC: December 24 Set as Deadline to File Claims
-----------------------------------------------------
Creditors owed money by JSC Krato are requested to file their
proofs of claim by Dec. 24, 2008, to:

         Dr. Ferdinand Meyer
         Liquidator
         Forchstrasse 452
         Mail Box: 1432
         8032 Zurich
         Switzerland

The company is currently undergoing liquidation in Zollikon.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 3, 2008.


LEHMAN BROTHERS FINANCE: Creditors Must File Claims by Dec. 23
--------------------------------------------------------------
Creditors owed money by JSC Lehman Brothers Finance are requested
to file their proofs of claim by Dec. 23, 2008, to:

         Talstrasse 82
         8001 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 29, 2008.


LEHMAN BROTHERS INT'L.: Deadline to File Claims Set Dec. 23
-----------------------------------------------------------
Creditors owed money by JSC Lehman Brothers International Europe
are requested to file their proofs of claim by Dec. 23, 2008, to:

         Talstrasse 82
         8001 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 29, 2008.


OMIGO JSC: Creditors Have Until December 23 to File Claims
----------------------------------------------------------
Creditors owed money by JSC Omigo are requested to file their
proofs of claim by Dec. 23, 2008, to:

         LLC IBS
         Baarerstrasse 94
         6300 Zug
         Switzerland

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


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


AGRO-PROGRESS LLC: Creditors Must File Claims by Dec. 26, 2008
---------------------------------------------------------------
Creditors of LLC Agro-Progress (code EDRPOU 30843865) have until
Dec. 26, 2008, to submit proofs of claim to:

         Mrs. Tatiana Viknianskaya
         Temporary Insolvency Manager
         V. Aleksandri Str. 151/d
         Chernovcy
         58000, Ukraine
         Tel: 8(050)5228757

The Arbitration Court of Chernovcy commenced bankruptcy
proceedings against the company after finding it insolvent on
Sept. 10, 2008.  The case is docketed as 10/206/B.

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

The Debtor can be reached at:

         LLC Agro-Progress
         Terebleche
         Glybotsky
         Chernovcy
         Ukraine


AGRO-SPUTNIK LLC: Creditors Must File Claims by December 26
-----------------------------------------------------------
Creditors of LLC Agro-Sputnik (code EDRPOU 35176410) have until
Dec. 26, 2008, to submit proofs of claim to:

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

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 21, 2008.
The case is docketed as 5/497/08.

The Debtor can be reached at:

         LLC Agro-Sputnik
         Sadovaya Str. 1-a
         Nikolaev
         Ukraine


DNIEPROBALT LLC: Creditors Must File Claims by December 26
----------------------------------------------------------
Creditors of LLC Dnieprobalt (code EDRPOU 25478292) have until
Dec. 26, 2008, to submit proofs of claim to:

         Mr. Ivan Pogorely
         Liquidator/Insolvency Manager
         P.O.B. 2112
         69091 Zaporozhje
         Ukraine
         Tel: 8(061)270-43-44
              8(061)233-05-89
              8(050)454-22-03

The Arbitration Court of Chernovcy commenced bankruptcy
proceedings against the company after finding it insolvent on
Nov. 11, 2008.  The case is docketed as 12/275/08.

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


DONSNAB LLC: Creditors Must File Claims by December 26
------------------------------------------------------
Creditors of LLC Donsnab (code EDRPOU 32227514) have until
Dec. 26, 2008, to submit proofs of claim to:

         Mr. Aleksey Liaskovets
         Temporary Insolvency Manager
         P.O.B. 3398
         69006 Zaporozhje
         Ukraine

The Arbitration Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent on
Nov. 3, 2008.  The case is docketed as 16/321/08.

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The Debtor can be reached at:

         LLC Donsnab
         Chekistov Str. 39/48
         69054 Zaporozhje
         Ukraine


KADIS LLC: Creditors Must File Claims by December 26
----------------------------------------------------
Creditors of LLC Firm Kadis (code EDRPOU 23619802) have until
Dec. 26, 2008, to submit proofs of claim to:

         Mr. Alexander Kodrian
         Temporary Insolvency Manager
         Apt. 128
         Chkalov Str. 108
         Nikolaev
         Ukraine

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 28, 2008.
The case is docketed as 5/498/08.

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

The Debtor can be reached at:

         LLC Firm Kadis
         Heroes of Stalingrad Avenue, 1-B
         Nikolaev
         Ukraine


KRASNAYA UKRAINA: Creditors Must File Claims by December 26
-----------------------------------------------------------
Creditors of Agricultural LLC Krasnaya Ukraina (code EDRPOU
30813249) have until Dec. 26, 2008, to submit proofs of claim to:

         Mr. Oleg Shypitko
         Liquidator/Insolvency Manager
         Apt. 131
         Parkovaya Str. 85
         Kramatorsk
         84300 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 19, 2008.
The case is docketed as 45/120B.

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

The Debtor can be reached at:

         Agricultural LLC Krasnaya Ukraina
         Lenin Str. 19
         Vasilyevka
         Starobelsky
         Donetsk 87252
         Ukraine


RADOSIN LLC: Creditors Must File Claims by December 26
------------------------------------------------------
Creditors of LLC CJSC Production-Trading Firm Radosin (code EDRPOU
30491162) have until Dec. 26, 2008, to submit proofs of claim to:

         Mr. Y. Ignatchenko
         Liquidator
         Prague Str. 5
         Kiev
         Ukraine
         Tel: 8(050)216-47-61
              8(044)494-46-61

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 20, 2008.
The case is docketed as 49/217-B.

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

The Debtor can be reached at:

         LLC CJSC Production-Trading Firm Radosin
         Bratislavskaya Str. 8
         Kiev
         Ukraine


STAKHANOVSKOYE LLC: Creditors Must File Claims by Dec. 26, 2008
---------------------------------------------------------------
Creditors of LLC Stakhanovskoye (code EDRPOU 31083527) have until
Dec. 26, 2008, to submit proofs of claim to:

         Mrs. Nathalie Prudka
         Liquidator/Insolvency Manager
         40 Years of Soviet Ukraine Str. 82a
         69035 Zaporozhje
         Ukraine

The Arbitration Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent on Nov.
10, 2008.  The case is docketed as 19/155/08.

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The Debtor can be reached at:

         LLC Stakhanovskoye
         Valery Lobanovsky Str. 6-A
         69006 Zaporozhje
         Ukraine


ZIRCONIUM REFRACTORY: Creditors Must File Claims by December 26
---------------------------------------------------------------
Creditors of LLC Zirconium Refractory Materials Plant (code EDRPOU
31240890) have until Dec. 26, 2008, to submit proofs of claim to:

         Mr. Alexander Vozdvizhensky
         Liquidator
         a/b 1799
         49027 Dnipropetrovsk
         Ukraine
         Tel: (056)744-21-37
              (056)770-22-92

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
Nov. 13, 2008.  The case is docketed as B 15/29/5-07.

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

The Debtor can be reached at:

         LLC Zirconium Refractory Materials Plant
         Stepovaya Str. 1B
         Volnogorsk
         51700 Dnipropetrovsk
         Ukraine


ZOLOTIYE PESKI-2 : Creditors Must File Claims by December 26
------------------------------------------------------------
Creditors of LLC Zolotiye Peski-2 (code EDRPOU 32785795) have
until Dec. 26, 2008, to submit proofs of claim to:

         Mrs. Nathalie Gapina
         Temporary Insolvency Manager
         Apt. 4
         Gogol Str. 11
         73000 Herson
         Ukraine

The Arbitration Court of Herson commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 29, 2008.
The case is docketed as 5/238-B-08.

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

The Debtor can be reached at:

         LLC Zolotiye Peski-2
         Lenin Str. 202-a
         Genichesk
         75500 Herson
         Ukraine


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


BRITISH AIRWAYS: Qantas Board Gives Go Signal on Merger Talks
-------------------------------------------------------------
The Australian reports that Qantas Airways Ltd.'s board has given
airline executives a green light to continue talks on the AU$8
billion merger with British Airways Plc.

As published in the Troubled Company Reporter-Europe on Dec. 9,
2008, Bloomberg News reported Qantas Chief Executive Officer Alan
Joyce said "significant matters" need to be resolved before a
merger with British Airways can be achieved.

These include "an appropriate merger ratio," issues connected with
British Airways' pension fund and the global economic outlook, Mr.
Joyce said, as cited by Bloomberg News.

According to Bloomberg News, analysts at Citigroup Inc. said in a
Nov. 21 report concern about pension fund liabilities has delayed
progress on British Airways' proposed tie-up with Spain's Iberia
Lineas Aereas de Espana SA.

As reported in the Troubled Company Reporter-Europe on Nov. 19,
2008, Iberia  planned of an all-share merger with British Airways
and has told investors it may take a bigger share of the combined
group.  However, Iberia chairman Fernando Conte noted there are
still some difficulties with the deal including British Airways's
pension deficit.

Bloomberg News disclosed British Airways, which will complete a
tri-annual actuarial review of its pension program in 2009, said
Sept. 18 that the annual funding deficit widened to GBP1.5 billion
(US$2.2 billion) as of March 31, the end of its last fiscal year.

A TCR-Europe report on Dec. 4, 2008, said British Airways
confirmed it is exploring a potential merger with Qantas Airways
via a dual-listed company structure.

British Airways' discussions with Iberia meanwhile are also
continuing.

British Airways however said there is no guarantee that any
transaction will be forthcoming and a further announcement will be
made in due course, if appropriate.

                      About British Airways

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

                          *     *     *

As reported in the TCR-Europe on Nov. 18, 2008, Moody's Investors
Service placed all ratings of British Airways plc (Baa3 Corporate
Family Rating - CFR); Ba1 senior unsecured and the Ba2 rating of
the perpetual guaranteed preferred securities on review for
possible downgrade.


BUCKS AUTO: Appoints Joint Liquidators from Smith & Williamson
--------------------------------------------------------------
Stephen John Tancock and Stephen John Adshead of Smith &
Williamson Ltd. were appointed joint liquidators of Bucks Auto
Components Ltd. on Nov. 26, 2008.

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

         First Floor
         89 King Street
         Maidstone
         Kent
         ME14 1BG
         England


EMI GROUP: Says it Will Not Default on Citigroup Loans
------------------------------------------------------
Nick Clark at The Independent reports that EMI Group plc dismissed
speculation that it could default on its GBP2.7
billion loans with Citigroup early next year.

It is believed that the group needed more cash to avoid breaching
covenants in three months, the report relates.

According to the report, private equity firm Terra Firma, which
bought the group for GBP2.4 billion in 2007, has a covenant check
scheduled for March.

However, sources on both sides maintained the group will not
default on the loans, the report discloses.

Citing a source close to Terra Firma, the report states internal
forecasts predict the group will generate enough cash to avoid
going cap in hand to its owners.

"EMI had a solid first half, and if performance continues in the
same way then there is no reason why it should run into problems.
The covenant light facility has seven years to go, and March is
nothing more than a covenant test," the source was quoted by the
report as saying.

In September Terra Firma, the report recounts, had to inject
between GBP65 million and GBP75 million into the group to avoid a
potential default.

However, the report notes banking sources remain confident over
the group's ability to pay, adding that at the time of the
investment three months ago it had raised "a fair amount of equity
in excess of what it needed at the time".

                       About EMI Group plc

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries, with
licensees in a further 20 and employs around 5,500 people.  The
group has operations in Brazil and China among others.  In
August 2007 EMI was acquired by private equity firm Terra Firma.

At March 31, 2007, EMI Group's consolidated balance sheet
revealed GBP1.5 billion in total assets, GBP2.65 billion in
total liabilities resulting to GBP1.15 billion in shareholders'
deficit.


HBOS PLC: Tribunal Rejects Legal Challenge Against Lloyds Merger
----------------------------------------------------------------
The Competition Appeal Tribunal on Wednesday rejected a legal
challenge to Lloyds TSB Group plc's proposed takeover of
HBOS plc brought by a group of customers, shareholders and
businessmen called the Merger Action Group, BBC News reports.

According to the report, the tribunal in London was asked to
decide whether the government had been right to bypass competition
concerns in allowing HBOS to be rescued.

The two-day tribunal hearing in London was held under Scottish
law, the report notes.

HBOS shareholders will vote on the takeover deal today, the report
discloses.

                  MAG Reacts on Court's Decision

In a press statement on Wednesday, the Merger Action Group said it
was disappointed to lose its legal challenge against the
Government's decision to ignore competition law to push through
the Lloyds TSB's proposed takeover of HBOS.

But the group was heartened that the tribunal found they were
right and proper people to bring the action which had been raised
under public interest concerns.

During the two-day hearing, the tribunal heard that MAG had won
the backing of some 630 members of the public, while First
Minister Alex Salmond and Mr Peter Vicary-Smith, chief executive
of Which? - Europe's largest independent consumer body with more
than 700,000 members -- were among others who had written to the
tribunal in support of the appeal.

Although the hearing was held in London, it was conducted under
Scots Law because the applicants were mainly Scotland-based and
the impact of the merger if it goes ahead will be felt more keenly
north of the Border than elsewhere.

Mr Ian Forrester QC, for MAG, told the tribunal that the
association was "a group of responsible individuals pursuing a
real and legitimate interest".

He said they shared the concerns of the Office of Fair Trading
[OFT] which, in a report before Lord Mandelson's made his
decision, warned that the merger could lead to a significant
lessening of competition.  The OFT said the takeover should
be referred to the Competition Commission for further
investigation.

However, Lord Mandelson disregarded this advice after both Gordon
Brown and Alistair Darling had earlier spoken publicly in favor of
the merger.

Mr. Forrester said the proposed merger should have been open to
public scrutiny, but that "the Government had a clear policy" that
the deal should go ahead.

                  MAG to Conclude Legal Challenge

In a press statement on Thursday MAG said it felt it had done all
it practically could to highlight the widespread public concern
over the Government's decision to waive competition law to push
through the takeover of HBOS by Lloyds TSB.

Accordingly, MAG has decided to conclude its legal challenge and
will not be appealing to the Court of Session following the
Competition Appeal Tribunal's ruling.

The group of businessmen, supported by more than 750 bank
shareholders, customers and other concerned members of the public,
said it had no wish to interfere with today's meeting in
Birmingham when HBOS shareholders will be asked to vote on the
takeover, and had taken great care to facilitate a
truncated tribunal timetable in order to meet this deadline.

MAG spokesman Malcolm Fraser, an Edinburgh architect, said: "We
are glad we took the stand we did, and that we were able to
highlight issues in advance of any vote.  It is now up to
shareholders to decide what is in the best interests of
themselves, the banks and their staff and customers.
"We are satisfied that our legal challenge against Lord
Mandelson's extraordinary decision to approve this takeover
without referring it to the Competition Commission was right,
proper and responsible.

"And we take great heart from the fact that in its judgment, the
Competition Appeal Tribunal corroborated this view even though, on
very strict and narrow legal grounds, it ruled against us.

"We have also been very encouraged by the huge groundswell of
public and political support for our cause, which in itself is
very rewarding given that our only motive in bringing forward this
appeal was to protect and stand up for the public interest.

"We have had no issue with either of the banks involved this was
purely and simply done in the public interest and to address the
concerns and fears of many people in Scotland that it was a
decision made for political expediency.

"Many people will no doubt find it hard to believe that the prior
public statements made by the Chancellor and the Prime Minister
placed no burden on Lord Mandelson's decision, but nonetheless we
respect the ruling of Sir Gerald Barling QC and his two fellow
panel members, who diligently adjudicated on the evidence provided
to them.

"In deciding not to exercise our right to appeal to the Court of
Session, we also have to take into account that we are a
relatively small group with limited resources.  Nevertheless, we
have no regrets or doubts that we were promoting a just cause, and
do not apologize for doing what we believed to be right.'
The group is now exploring its options on whether to continue in a
modified form or to disband.

"We have yet to decide whether there may be a future role for
MAG," said Mr Fraser.  "We are aware that there are a number of
people and organizations who are urging us to continue.  We shall
make an announcement on that in early course."

The question of legal costs in connection with the two-day hearing
at CAT has yet to be resolved between lawyers acting for MAG and
those representing Lord Mandelson.

MAG said that they appreciated indications from the two banks
involved, as interveners, that they would not pursue the group for
costs, but MAG is awaiting a decision from Department of Business,
Enterprise and Regulatory Reform [BERR].

Mr. Fraser said: "The Tribunal is not in the business of
dissuading challenges by relatively small applicants, and in the
past has even awarded costs to losing parties acting in the public
interest, as were we.

"Nonetheless, we feel it is right to pay our own costs in regard
to our action, and hope that the UK Government will do likewise.
We did not want to use our costs as a bargaining position
regarding our appeal, which is why we have notified all
parties that we are waiving our right of appeal with immediate
effect."

MAG's legal action has been funded largely through public
donations to a fighting fund which was set up at the start of the
campaign.

                          Takeover Deal

As reported in the TCR-Europe on Nov. 24, 2008, Lloyds TSB
shareholders overwhelmingly supported the proposed takeover of
HBOS.

Lloyds TSB shareholders voted 95.98% in favor of the takeover,
which if pushed through will create a banking giant with
145,000 staff and 3,000 branches.

The shareholders also approved plans to raise GBP5.5 billion by
issuing new shares and special preference shares.

On Nov. 19, 2008, the TCR-Europe reported that HBOS urged its
shareholders to vote in favor of its merger with Lloyds TSB.

HBOS warned the bank could face nationalization if shareholders
turn down a proposed takeover by Lloyds TSB as it would need
significantly more capital, making the loss of private sector
status more likely.

HBOS shareholders are scheduled to vote on the GBP12 billion
(US$18 billion) takeover by Lloyds TSB on December 12.

                       About HBOS Plc

HBOS Plc (LON: HBOS) -- http://www.hbosplc.com/-- is a United-
Kingdom based company.  It is the holding company of the HBOS
Group.  It operates through five divisions: retail, corporate,
insurance & investment, international and treasury & asset
management.  The company's retail range of products includes
personal and business banking products and services to 23 million
customers.


JJB SPORTS: Total Group Sales Down 7.5% from July 28 to December 7
------------------------------------------------------------------
JJB Sports plc published its Interim Management Statement relating
to the period from July 28, 2008 to December 7, 2008.

                       Trading Update

During this period, total Group sales (excluding the Original Shoe
Company and Qube), on a like-for-like basis, (on operating units
that have been trading for over 52 weeks) were 7.5% lower than the
same period last year.  This consisted of a 6.7% increase in
revenue for health clubs and a 8.9% decrease in retail sales.

The core retail gross margin achieved during the same period was
210 basis points higher than last year.

The stock holding in the retail business is 28% lower than last
year.

Given the difficult trading conditions, the Company said it
started its sale early, two weeks ago, and so far it is pleased
with the increased sales achieved, albeit at reduced gross margin.
Achievement of market expectations of profit before tax and
exceptional items will depend on continuing the good sales
performance in the traditional January sales' period.

As announced on December 1, 2008 the Company exchanged contracts
for the assignment of the leases of four retail stores for a
consideration of GBP3.4 million and as announced on October 20,
2008 placed 11,944,360 new JJB ordinary shares with proceeds
totaling approximately GBP3.4 million.

                Update of Potential Disposals

Further to the announcement on December 4, 2008, discussions
continue in relation to JJB's Fitness Clubs and JJB's non-core
assets and businesses.  A number of inquiries have been received
regarding the Fitness Clubs business in recent weeks and the Board
has requested that Lazard engage with potentially interested
parties.  The preliminary approach for the LifeStyle division
referred to in its announcement of October 15, did not result in a
transaction.  The LifeStyle division continues to trade at a loss
and the Board continues to consider its options in respect of the
future of this business.

         Update on the Company's Banking Arrangement

The Company's lenders Barclays, HBOS and Kaupthing have agreed
that the Kaupthing GBP20 million bridging facility need not be
repaid in full on the due date of December 14, 2008, but the
Company said it was still to repay GBP20 million pro rata across
the three banks yesterday, December 10, 2008.  The banks are
continuing constructive discussions with the Company and are
reviewing the Company's plans and forecasts with a view to
agreeing a basis for providing continuing support.

Roger Lane-Smith, Non-executive Chairman of JJB, said: "During the
period we have made good progress on a number of fronts in the
face of the difficult trading conditions that have afflicted the
entire high street.  The economic outlook is challenging but I am
confident that the work we are doing will put JJB in the best
possible shape to trade through it."

                   About JJB Sports

Headquartered in Wigan, England, JJB Sports plc --
http://www.jjbcorporate.co.uk/-- is engaged in the retailing of
sportswear and sporting equipment.  The company also operates a
chain of fitness clubs, which has a smaller number of indoor
soccer centers attached to them.  It also operates a television
broadcasting and marketing business, which specializes in the
marketing of golf products and fitness equipment through Sky
Television.

On Oct. 2, 2008, TCR-Europe reported that Deloitte & Touche LLP
raised going concern issues about JJB Sport plc's interim
report and condensed financial statements for the 26 weeks to July
27, 2008.

Deloitte pointed to material uncertainties that may cast
significant doubt on the group's ability to continue as a going
concern.  These material uncertainties comprise:

    * ongoing availability of the original facilities given the
      actual and projected covenant breaches;

    * the ability to repay the bridging facility from asset
      sales or seasonal cash flows;

    * achieving the sale of non-core businesses and/or assets
      within the timescales and at the values projected; and

    * the achievability of forecasts and key assumptions within
      the forecasts.

Deloitte warned there is a risk that the material uncertainties as
to the group's ability to continue as a going concern may not be
resolved satisfactorily.


KAUPTHING SINGER: IoM Gov't Backs Bondholder Compensation Package
-----------------------------------------------------------------
Hannah Stodell at Money Marketing reports that the Isle of Man
government backed a compensation package to bondholders with cash
deposits in Kaupthing Singer & Friedlander Isle of Man.

According to the report, over GBP800 million of savings were tied
up with KSF IoM, nearly GBP400 million of which was in cash
deposits within offshore bonds.

The compensation package, the report discloses, will consist of a
levy from the government and local banks under the DCS and monies
raised by the provisional liquidator from the sale of KSF assets.

The maximum government contribution to the scheme will be GBP150
million, while the banks will have a maximum total contribution
cap of GBP200 million, the report states.

The report adds the government is also understood to be looking to
provide emergency payouts of around GBP1,000 to help small
depositors who are in desperate straits, although these
discussions are thought to be at an early stage.

AILO meanwhile is continuing to work closely with the Manx
Insurance Association and the IoM government to get the best
possible outcome for policyholders whose advisers recommended
investment in KSF.

AILO, as cited by the report, said all depositors, including life
insurance company policyholders can expect to do "significantly
better" from the resulting rescue package.

The provisional liquidator is currently working to quantify claims
on KSF IoM assets and is due to hold an update hearing on Jan. 15,
the report notes.

As reported in the TCR-Europe on Dec. 3, 2008 Mike Simpson,
provisional liquidator of Kaupthing Singer & Friedlander Isle of
Man said that at a hearing at the Isle of Man High Court on Nov.
27, 2008, before Deputy Deemster Corlett, the joint petition of
the bank and the Financial Supervision Commission was adjourned
until 10:00 a.m., January 29, 2009 at the request of the Isle of
Man Treasury.


LANDSBANKI GUERNSEY: Savers to Meet UK Politicians Next Week
------------------------------------------------------------
The Landsbanki Guernsey Depositors Action Group will meet with
Chief Minister Lyndon Trott and Treasury and Resources Minister
Charles Parkinson next week in a bid to recover savers' money in
full, channelonline.tv reports.

The action group claimed the government of Guernsey is doing
nothing to support the depositors, the report recounts.

Guernsey, the report notes, has unveiled a Depositors Compensation
Scheme, but it's not retrospective and not one penny of it will go
to Landsbanki savers.

Neil Dickens from The Landsbanki Guernsey Depositors Action Group,
as cited by the report, said they are also gathering information
on the events that led up to the bank going into administration,
not least the role that the GFSC took in this.

He warned the group will push hard until they see a resolution
where depositors can receive 100 per cent of their money back,
the report relates.

As reported in the TCR-Europe on Oct. 21, 2008, the administrators
of Landsbanki Guernsey announced a proposal to
make a part-payment to depositors equivalent to 30 pence in the
GBP1.

                  About Landsbanki Guernsey Ltd.

Landsbanki Guernsey Ltd. -- http://www.landsbanki.co.gg/-- is
engaged in retail banking.  It is a subsidiary of Iceland-based
financial institution Landsbanki Islands hf.

Lansbanki Guernsey was placed into administration on Oct. 7, 2008.
The administration, which follows the deepening problems of the
Icelandic economy and, in particular, of the Icelandic banking
system, is on a temporary basis until Jan. 6, 2009 or earlier
order of the Royal Court.

The affairs, business and property of the bank are being managed
by the joint administrators, Rick Garrard and Lee Manning of
Deloitte, the business advisory firm.


MONITOR OIL: Court Converts Case to Chapter 7 Liquidation
---------------------------------------------------------
Tiffany Kary of Bloomberg News reports that the Hon. Martin Glenn
of the United States Bankruptcy Court for the Southern District
converted the Chapter 11 case of Monitor Oil Plc to Chapter 7
liquidation proceeding at behest of the ad hoc committee of
bondholders.

According to Judge Glenn, other than hearings, the ruling was
based on a December 8 letter from the Debtor's attorneys
withdrawing the company's objection to a liquidation instead of a
Chapter 11 restructuring Ms. Kary says.  In the letter, the
company dropped it objection given the failure of bondholders to
reach an agreement with second-lien lenders, she notes.

Ms Kary says Judge Glenn ordered the Debtor to file its schedule
of unpaid debts incurred after it filed for bankruptcy within 15
days and a final report 30 days days from Dec. 9, 2008.

Bloomberg said that the bondholders say the case can no longer
survive as a Chapter 11 reorganization or any business with
reasonable prospect of rehabilitation.  The case, according to
them, has languished, incurring administrative expenses with no
immediate prospect of payment at risk to the estate-compensated
professionals involved and the expense of the Debtor's unsecured
creditors, according to the Troubled Company Reporter on Nov. 12,
2008.

                       About Monitor Oil

Headquartered in the Cayman Islands, Monitor Oil, Plc --
http://www.monitoroil.com/-- an oil and gas service company that
provides oil and gas production solutions, offshore services and
engineering services.  The Monitor Group has operations in London,
England; Aberdeen, Scotland; Stavanger, Norway; Caldicot, Wales;
Shanghai, China and New York, United States.

The company and two of its affiliates, Monitor Single Lift 1,
Ltd., and Monitor US FinCo, Inc., filed for Chapter 11 Protection
on Nov. 21, 2007 (Bankr. S.D.N.Y. Case No. 07-13709).  Eric Lopez
Schnabel, Esq., at Dorsey & Whitney, L.L.P., represents the
Debtor.  The U.S. Trustee for Region 2 appointed five creditors to
serve on an Official Committee of Unsecured Creditors in the
Debtors' cases.  Ira L. Herman, Esq., at Thompson & Knight, LLP,
represents the Committee.  As of Dec. 31, 2007, the company
disclosed total assets of US$98,340,000 and total debts of
US$56,125,000.


NEW STAR: Chairman to Step Down After Refinancing Deal w/ Banks
---------------------------------------------------------------
John Duffield, the chairman and the founder of New Asset
Management, will step down from the fund management company after
reaching a rescue refinancing deal with its five lending banks,
The Daily Telegraph reports.

Mr. Duffield, the report recounts, was last week forced to agree
to a GBP240 million debt-for-equity swap to prevent the company
from collapse.

The banks which negotiated the debt-for-equity swap include HBOS,
HSBC, Lloyds TSB and Royal Bank of Scotland, and National
Australia Bank.  Under the deal, they will take a 75% stake in
exchange for GBP240 million of the company's GBP260 million debt,
the report discloses.

New Star shareholders will meet in January to vote on the proposed
debt-for-equity swap, the report notes.

The banks, the report says, are trying to secure a quick sale of
the company, which is now capitalized at just GBP5 million.   They
are thought to be talking to rival asset managers Aberdeen,
Neptune, Gartmore and Jupiter, the report reveals.

According to the report, any sale will see shareholders receive a
pittance with the banks taking the lions share of the sale price
in return for their debt.

UBS, New Star's adviser, has received several calls from
interested buyers, the report relates.

On Dec. 4, 2008, the TCR-Europe reported that according to the
Daily Telegraph, the Financial Services Authority rejected the
request of New Star to suspend trading in its shares.

The company, the report disclosed, asked for its ordinary shares
to be temporarily suspended, while it held negotiations with its
bank syndicate.

In November, the company suspended the trading of its GBP470
million international property fund after a rush of redemptions
caused liquidity problems.

The company, the report revealed, has more than GBP230 million
worth of debt on its balance sheet after a special dividend paid
to shareholders in 2007.  Its assets under management dropped from
GBP19.8 billion at the end of June, to around GBP13 billion amid
falling markets and a wave of redemptions by nervous investors.

The fund manager, the report added, re-negotiated its banking
covenants last month.  It also confirmed Stephen Whittaker, its
chief investment officer, after the underperformance of its UK
Growth fund.

In a TCR-Europe report on Nov. 4, 2008, the Scotsman said that an
analyst warned that when the FTSE 100 is between about 4,000 and
4,400, the company could breach its banking covenants.  The
analyst added "a key driver of value in the fund management sector
is funds under management.  If equities drop it impacts revenues."

Meanwhile, another analyst cautioned that if New Star did breach
its covenants it would have to pay 1.5% more interest on its loans
"substantially raising costs, such that it could become loss-
making," the report stated.

New Star Asset Management -- http://www.newstaram.com/-- is a UK
fund manager, offering a wide range of investment products for
retail and institutional investors


PULLAN CONSTRUCTION: Taps Joint Administrators from PwC
-------------------------------------------------------
Nicholas Edward Reed and Ian David Green of PricewaterhouseCoopers
LLP were appointed joint administrators of Pullan Construction
Ltd. on Nov. 28, 2008.

The company can be reached at:

         Pullan Construction Ltd.
         Manor Works
         Beeston
         Leeds
         LS11 8QT
         England


RADNEY HOLDINGS: Names Joint Liquidators from Tenon Recovery
------------------------------------------------------------
Duncan R. Beat of Tenon Recovery was appointed liquidator of
Radney Holdings Ltd. on Nov. 26, 2008, for the creditors'
voluntary winding-up procedure.

The company can be reached through Tenon Recovery at:

         75 Springfield Road
         Chelmsford
         Essex
         CM2 6JB
         England


REGAL ELECTRICAL: Taps Joint Liquidators from Tenon Recovery
------------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Regal Electrical & Mechanical
Services Ltd. on Nov. 26, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached through Tenon Recovery at:

         Tenon House
         Ferryboat Lane
         Sunderland
         SR5 3JN
         England


SOUTH COAST: Appoints Joint Liquidators from Tenon Recovery
-----------------------------------------------------------
Duncan R. Beat of Tenon Recovery was appointed liquidator of
South Coast Plant Ltd. on Nov. 26, 2008, for the creditors'
voluntary winding-up procedure.

The company can be reached through Tenon Recovery at:

         75 Springfield Road
         Chelmsford
         Essex
         CM2 6JB
         England


STEELART LTD: Names Joint Liquidators from Tenon Recovery
---------------------------------------------------------
S. J. Parker and J. K. Rolls of Tenon Recovery were appointed
joint liquidators of Steelart (U.K.) Ltd. on Nov. 24, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached through Tenon Recovery at:

         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


SUNKING FLOWERS: Taps Joint Liquidators from KPMG
-------------------------------------------------
Richard James Philpott and Mark Jeremy Orton of KPMG LLP were
appointed joint liquidators of Sunking Flowers Ltd. on Nov. 21,
2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through KPMG LLP at:

         Peat House
         1 Waterloo Way
         Leicester
         LE1 6LP
         England


YORK HOUSE: Appoints Joint Administrators from Ernst & Young
------------------------------------------------------------
Robert Hunter Kelly and Charles Graham John King of Ernst & Young
LLP, were appointed joint administrators of York House
Construction Ltd. on Nov. 26, 2008.

The company can be reached at:

         York House Construction Ltd.
         Gatherley Road
         Brompton on Swale
         Richmond
         North Yorkshire
         DL10 7JH
         England


* UK: SocGen Says Covenant Breach Looms as Property Prices Fall
---------------------------------------------------------------
Ben Harrington of the Daily Telegraph reported Monday that
Societe Generale said several of Britain's largest property
companies may have to carry out rights issues next year to avoid
covenant breaches as commercial property prices are expected to
drop by 45%.

Citing Marc Mossi of SocGen, the report disclosed three of the
majors may need a total GBP700 million of new capital to fulfill
their debt covenants or, more probably, to create some breathing
space for their day-to-day business.

SocGen downgraded Hammerson and Liberty from hold to sell and gave
them price targets of 410p and 420p respectively, the report
noted.


* UK: Charities with Frozen Accounts in Icelandic Banks Seek Help
-------------------------------------------------------------
John Plummer at Third Sector Online Sector reports that the
Treasury has turned down a proposal put forward by shadow Treasury
minister Mark Hoban to set up a temporary funding facility for
charities with money frozen in failed Icelandic banks.

The temporary funding facility, according to Mr. Hoban, would help
to keep charities operating until the administrator decided how
money from the failed banks would be distributed, the report
discloses.

However, Treasury minister Angela Eagle, the report notes,
rejected the idea as she does not believe that it "would be an
effective use of public funding, simply because there is no
additional source for such a grant fund to be drawn from".

Maria Miller, the shadow minister for children, suggested finding
additional short-term funding to tackle the "significant and
overwhelming financial crisis" the hospice Naomi House  faced, but
Ms. Eagle said there were many creditors and many larger charities
with problems, the report recounts.

CharityFinance reported last week thirty charities that have funds
deposited in the collapsed Iceland-owned bank Kaupthing Singer &
Friedlander (KSF) demanded that the government underwrite the
GBP47 million they collectively had invested in the bank.

The charities, which have formed an action group named Save Our
Savings, led by Cats Protection and Naomi House Children's
Hospice, secured representation on the KSF creditors committee to
fight for the return of their money, CharityFinance revealed.

At a creditors meeting on December 1 in London, the coalition
attracted enough votes to bag one of the five seats on the
creditors committee, the report recalled.


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


* Fitch Gives Negative Outlook for European Pharmaceutical Sector
-----------------------------------------------------------------
Fitch Ratings says that, whilst underlying credit fundamentals
remain strong, the outlook for the European pharmaceutical
industry is negative due to a number of key industry challenges
facing the sector.

These include the upcoming patent expiry cliff during 2010-2013,
where the agency notes that, in particular, GlaxoSmithKline and
Sanofi-Aventis are proportionally over exposed with their product
lines compared to their European rated peers; government cost
containment measures on healthcare spending that are likely to be
increased due to the current economic crisis; the continued longer
approval times for new drugs due to greater skepticism on drug
safety standards; and finally continued competitive pressures from
generic drug makers.

To counter these challenges, Fitch believes that European
pharmaceutical companies might be tempted to respond with debt
financed acquisitions during 2009, which would create downward
pressure on ratings.

"In the short-term, European pharmaceutical companies' cost
cutting measures should compensate for the margin pressure
resulting from these industry challenges whilst, in the medium-to
long-term, Fitch notes that lower operating profitability and cash
flow generation is likely to be seen for all market players," says
Britta Holt, Director in Fitch Ratings.

European pharmaceutical players are likely to continue with cost
cutting measures, while governmental cost containment policies are
expected to lead to more risk-sharing deals for European
pharmaceutical companies in order to insure reimbursement of their
products.  Additionally, tough generic competition is expected to
lead to a continued high number of authorized generic drugs coming
on to the market.

Fitch believes that acquisitions are likely to be pursued in order
to prepare for the upcoming patent cliff (by acquiring pipeline)
or in order to increase diversification into other, less high risk
but less profitable, healthcare areas, as seen by Novartis
(Alcon).  In order to ensure solid sales growth, European
pharmaceutical companies are also likely to increase their
presence in the higher growth, but lower profitability developing
markets.

Overall, the rated European pharmaceutical companies are expected
to continue to benefit from their well diversified product
portfolios, good geographical diversification with a relatively
low percentage of US sales at risk through patent expiries by
2013, relatively full product pipelines and high profitability.
Although tough industry challenges will have to be faced over the
next years, the European pharmaceutical industry is expected to
continue to remain one of Fitch's highest rated industries in
Europe, due to superior cash flow generation, high cash balances,
strong liquidity and solid growth prospects, driven by high unmet
medical needs, favorable demographics, technology advances and the
existence of chronic diseases.

Among European drug makers rated publicly by Fitch, only
GlaxoSmithKline PLC (AA- (AA minus) /F1) has a Negative Outlook,
reflecting the group's large share buyback program, and ongoing
acquisition appetite.  Roche's Holding Ltd's ('AA' /F1+) ratings
were placed on Rating Watch Negative in July, following the
group's announcement of its US$44 billion bid for US
pharmaceutical company Genentech. AstraZeneca Plc's, Sanofi-
Aventis SA's (AA- (AA minus)/F1+) and Bayer's ('A-' (A minus)/F2)
Stable Outlooks reflect the relative headroom in their current
ratings.   With the exception for a potential acquisition of a
non-Nestle minority stake in Alcon, Novartis's (AA/F1+) ratings
fully reflect the Alcon acquisition, although Fitch notes the
company now does not have headroom for any further material
acquisitions.


* House Passes US$14 Billion Financial Aid for Detroit's Big 3
--------------------------------------------------------------
Greg Hitt at The Wall Street Journal reports that The House of
Representatives has passed the bill on the government financial
assistance being requested by General Motors Corp., Ford Motor
Co., and Chrysler LLC.

According to WSJ, the Democrats and the Bush administration hoped
for a Senate vote as early as Dec. 11 and enactment by week's end.
Republicans in the Senate objected the bill, which could affect
the bailout, says the report.  The report quoted Sen. Richard
Shelby as saying, "I'm going to oppose the package because I think
this is just the down payment on billions and billions to come.
These are failed or failing companies."  Sen. John Cornyn,
according to the report, said that he and other Republicans have
concerns on whether the proposed "car czar," who would supervise
the bailout program, would be able to force concessions needed to
return the industry to financial stability.  Some Republicans said
that they might support the bailout especially if the car czar is
given stronger authority to dictate terms of a restructuring.

           The Auto Federal Financial Assistance Bill

The bill states that the U.S. president will designate one or more
officers from the Executive Branch with appropriate expertise in
areas like economic stabilization, financial aid to commerce and
industry, financial restructuring, energy efficiency, and
environmental protection, to facilitate the restructuring
necessary to achieve the long-term financial viability of the
automakers.  The president will also appoint may appoint
additional persons with expertise.

The president's designee will determine by Jan. 1, 2009,
appropriate measures for assessing the progress of each eligible
automobile manufacturer toward transforming the plan submitted by
the automakers to the Congress on Dec. 2, 2008, into a
restructuring plan to be submitted by March 31, 2009, aimed at
achieving and sustaining long-term viability, international
competitiveness, and energy efficiency of the automakers.

Up to $14 billion in loans will be provided.  Loans shall mature
in seven years, or the President's designee may determine a longer
period.  The loans will have (a) 5% interest during the five-year
period beginning on the date on which the designee disburses the
loan; and (b) 9% interest after the end of the five-year period.
Payments will be made semi-annually.  The loans shall be
prepayable without penalty at any time.

Borrowers must then allow the designee access to their books,
papers, records, or other data; and those of their subsidiaries,
affiliates, or entity holding an ownership interest of 50% or
more.  They must provide information requested by the designee and
promptly inform the designee of any asset sale, investment,
contract, commitment, or other transaction proposed to be entered
into that has a value in excess of US$100 million, and any other
material change in the financial condition of the automakers.

If the borrowers fail to make adequate progress towards meeting
the restructuring progress assessment measures established by the
designee, or if after March 31, 2009, the borrowers fail to submit
an acceptable restructuring plan or fail to comply with any
conditions or requirement applicable under the Act or applicable
fuel efficiency and emissions requirements, or the borrowers fail
to make adequate progress in the implementation of their
restructuring plan, repayment of any loan may be accelerated to an
earlier date, and any other financial assistance may be cancelled
by the designee;

The designee may not provide any loan unless he or she receives
from the borrowers:

    -- securities which are traded on a national securities
       exchange, a warrant giving the right to the designee to
       receive nonvoting common stock or preferred stock or a
       voting stock in the company; and

    -- a warrant for common or preferred stock or an instrument
       that is the economic equivalent of such a warrant in the
       holding company of the eligible borrower, or any company
       that controls a majority stake in the borrower.

The designee shall require the borrowers to meet appropriate
standards for executive compensation and corporate governance,
which include, among other things:

    -- limits on compensation that exclude incentives for senior
       executive officers of the borrower

    -- provision for the recovery of any bonus or incentive
       compensation paid to a senior executive officer based on
       statements of earnings, gains, or other criteria that are
       later found to be materially inaccurate;

    -- prohibition to make any golden parachute payment to a
       senior executive officer

A copy of the bill is available for free at:

               http://ResearchArchives.com/t/s?3607


* BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors
-----------------------------------------------------------------
Publisher: Beard Books
Softcover: 788 pages for both volumes
Price: US$34.95 each volume; US$49.95 set
Review by Henry Berry

http://www.amazon.com/exec/obidos/ASIN/189312228X/internetbankrupt

http://www.amazon.com/exec/obidos/ASIN/1893122298/internetbankrupt

Voluntary Assignments for the Benefit of Creditors is a 1999
update of the classic nineteenth-century work on the important
financial and business instrument known as "voluntary
assignments."  The author of the original edition was Alexander M.
Burrill, a noted legal scholar who also wrote a law dictionary and
several other texts.  Voluntary Assignments for the Benefit of
Creditors is now in its sixth edition, with Avery-Webb authoring
the update.

As defined by the authors, voluntary assignments for the benefit
of creditors are "transfers, without compulsion of law, by
debtors, of some or all of their property to an assignee or
assignees, in trust to apply the same, or the proceeds thereof, to
the payment of some or all of their debts, and to return the
surplus, if any, to the owner."  Voluntary assignments offer
businesspersons from small business owners to corporate executives
great flexibility in raising capital.  Considering the many ways
that businesses can enter into voluntary assignments, the
different ways of valuing properties "assigned," and the changing
value of these properties over time, the law governing voluntary
assignment is complex.

The authors tackle the subject of voluntary assignments in all its
breadth and depth.  During the 1800s, when Burrill's work first
came out, there were innumerable cases dealing with voluntary
assignments.  The case law of the 1800s remains authoritative,
informative, and instructive today.

To render it comprehensible, the authors break down the subject
matter into its many facets, thereby allowing lawyers and others
to quickly reference areas of interest.  These cases are listed
alphabetically, and comprise more than fifty pages in a front
section titled "Table of Cases."  Cases are also referred to in
the text proper and in copious footnotes.  The format of the text,
including the footnotes, is the standard followed by many legal
texts and handbooks, notably the multi-volume American
Jurisprudence.  The sections are numbered consecutively in forty-
five chapters.  There are 458 sections in all.  The sections are
relatively short, even though the subject of voluntary assignments
is complex and there is bountiful case law.

Readers can peruse general topics such as execution of the
assignment, construction of assignments, sale of the assigned
property, and the rights, duties, and powers of the assignee. More
specific, detailed topics can be accessed using the index.  There
are two appendices. The first contains synopses of the statutes of
every state and territory on voluntary assignments.  The second
appendix contains nearly thirty standard forms that can be used
for various aspects of assignments.

Although voluminous and rigorous in its commentary and legal
citations, the two-volume Voluntary Assignments for the Benefit of
Creditors is neither dense nor ungainly.  Like a good lawyer
breaking down a case so it can be comprehended by a jury of
average persons, so does Burrill and Avery-Webb deal with the
topic of voluntary assignments.

Born in 1868 in Tennessee, James Avery-Webb (d. 1953) had a career
as a prominent attorney in New York City.

                            *********

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
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


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