TCREUR_Public/081216.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

           Tuesday, December 16, 2008, Vol. 9, No. 249

                            Headlines

A U S T R I A

AGRIM-PEX LLC: Claims Registration Period Ends January 7
ARIKAN GROUP: Claims Registration Period Ends January 7
FITKO TOURISMUS: Claims Registration Period Ends January 7
PLATZER LLC: Claims Registration Period Ends January 7
QUICKSTEP LLC: Claims Registration Period Ends January 1


B E L G I U M

FORTIS NV: Belgium to Review Legal Options for BNP Paribas Deal


F R A N C E

ALCATEL-LUCENT: Unveils Strategic Plan; Eyes EUR750MM Cost Savings
SPCM SA: Moody's Review Low-B Ratings for Possible Downgrade


G E R M A N Y

AIR SERVICE: Claims Registration Period Ends January 12
DECOTECH GMBH: Claims Registration Period Ends January 2
HELMS GMBH: Claims Registration Period Ends January 7
HUMMEL HOLZBAU: Claims Registration Period Ends January 5
LANDESBANK BADEN-WURTTEMBERG: Moody's Junks Ratings on Credit Swap

TAVICO GMBH: Claims Registration Period Ends January 27
TEDRIVE: Files for Insolvency for Two German Units
WABO FLIESEN: Claims Registration Period Ends January 15


I C E L A N D

ICESAVE: Dutch Central Bank Starts Paying Out Dutch Savers' Claims
KAUPTHING BANK: Court to Hear Chapter 15 Petition on January 21


I R E L A N D

ARGON CAPITAL: Moody's Cuts Ratings on EUR113 Mil. Notes to 'Ba3'
CLEAR PLC: Moody's Puts Ratings on 15 Classes of Notes for Review
CLEAR PLC: Moody's Cuts Rating on EUR113 Million Notes to 'Ba3'
KHEOPS CDP: Moody's Cuts Ratings on EUR50 Mil. Notes to 'Ba2'
SASHA: Attracts Interest of Nine Potential Investors

TUSKAR RESIDENTIAL: Bank Seizes EUR8 Mln Dun Laoghaire Site
TWO SEASONS: Goes Into Provisional Liquidation


I T A L Y

ALITALIA SPA: CAI Takes Control of Assets for EUR427 Mln


K A Z A K H S T A N

AGRO ELECTRO: Proof of Claim Deadline Slated for January 23
BALHASHSKY MYASOKOMBINATE: Creditors Must File Claims by Jan. 20
HUSEYIN SAUDA: Claims Filing Period Ends January 23
KAZ SERVICE: Creditors' Claims Due on January 23
KOLOR LLP: Claims Registration Ends January 23

KRUP TORG: Proof of Claim Deadline Slated for January 20
NEFTE-GAS MONTAGE: Creditors Must File Claims by January 23
PROMYSHLENNYE TECHNOLOGIYI: Claims Filing Period Ends Jan. 23
REM STROY TREST: Creditors' Claims Due on January 23
TPK AGRO-3: Claims Registration Ends January 20

* Moody's Reviews 'D-' BSFR on Eight Kazakh Banks for Likely Cut


K Y R G Y Z S T A N

JAN OIL: Creditors Must File Claims by January 29


L A T V I A

BALTIC INTERNATIONAL: Moody's Downgrades Deposit Ratings to 'B2'
PRIVATBANK AS: Moody's Downgrades Currency Deposit Ratings to 'B2'
TRASTA KOMERCBANKA: Moody's Affirms 'E+' BSFR; Outlook Stable


N E T H E R L A N D S

E-MAC DE: Moody's Downgrades Ratings on 17 Classes of Notes
LYCOS EUROPE: To Liquidate Business; Shareholders to Get EUR50 Mln


R U S S I A

ALMAZ 2000 LLC: Creditors Must File Claims by January 5
BARITE LLC: Creditors Must File Claims by January 5
INDUSRIAL MACHINERY: Creditors Must File Claims by January 5
PANASS-OIL LLC: Creditor Must File Claims by January 5
PCB TECHNOLOGIES: Novosibirsk Bankruptcy Hearing Set March 25

POLIKOM LLC: Creditors Must File Claims by January 5
SIB-ZOLOTO-RAZVEDKA OJSC: Creditors Must File Claims by Feb. 5
STROY-KOMPLEKT PLANT LLC: Creditors Must File Claims by Feb. 5
STROY-TEKH-GRUP LLC: Court Names Insolvency Manager
YUG-STROY LLC: Rostovskaya Bankruptcy Hearing Set January 28

* Moody's Changes Outlook on Eight Russian Banks to Stable


S L O V A K I A

SLOVENSKA SPORITELNA: Moody's Says 'C-' BSFR Not Affected


S P A I N

SANTANDER HIPOTECARIO: Moody's Cuts Rating on Cl. F Notes to Ca
TDA PASTOR: Moody's Downgrades Ratings on Series C Notes to 'B3'
VALENCIA HIPOTECARIO: Moody's Puts (P)Ba3 Rating on Series C Notes


S W E D E N

FORD MOTOR: Fitch Puts Issuer Default Ratings on Negative Watch


S W I T Z E R L A N D

BOSSHARDT BAU: Creditors Must File Proofs of Claim by Jan. 20
GENERAL MOTORS: May Lose 40% of Dealers If GMAC Goes Bankrupt
HANS GLAUSER: Deadline to File Proofs of Claim Set Jan. 31
ICELANDIC WATER: Creditors Have Until Jan. 31 to File Claims
KARAT UNTERNEHMENSBERATUNG: Claims Filing Deadline is Jan. 1

RUEGG TRANSPORTE: Creditors' Proofs of Claim Due by Feb. 17
SEALED SOLUTIONS: Feb. 17 Set as Deadline to File Claims


U K R A I N E

BOLAS LLC: Creditors Must File Claims by December 28
KREK LLC: Creditors Must File Claims by December 28
ECOMEBLIS LLC: Creditors Must File Claims by December 27
ENERGY RESOURCE: Creditors Must File Claims by December 27
INTEKS TRADE: Creditors Must File Claims by December 27

PLANT TERMINAL: Creditors Must File Claims by December 27
PROTEX LLC: Creditors Must File Claims by December 27
PROLISOK LLC: Creditors Must File Claims by December 28
TECHNO ROAD: Creditors Must File Claims by December 27
TRANS TERRA: Creditors Must File Claims by December 28


U N I T E D   K I N G D O M

BORDER WEAVING: Placed in Administration
BRITISH ENERGY: EDF Increases Stake to 88.67 Percent
EMPYREAN FINANCE: Moody's Downgrades Ratings on Three Note Classes
ENTERTAINMENT UK: Fails to Find Buyer; 700 Jobs Axed
HAM CONSTRUCTION: Appoints Joint Liquidators from Grant Thornton

HAM HOLDINGS: Names Joint Liquidators from Grant Thornton
INEOS GROUP: Moody's Confirms 'B3' Corporate Family Ratings
IONA CDO: Moody's Downgrades Ratings on Three Note Classes
J. & H. COHEN: Taps Joint Liquidators from Tenon Recovery
NYLON HOSIERY: Appoints Joint Liquidators from BDO Stoy

POSITIVE LENDING: Goes Into Administration
ROYAL BANK: Expects US$601 Million Loss on Madoff Investments
TOWNSEND HOUSE: Names Joint Liquidators from Tenon Recovery
?VIANET GROUP: Calls in Administrators; Sells Unit to Brulines


X X X X X X X X

* Senate Rejects Auto Aid for Detroit 3; Access to TARP Mulled
* Unite Says UK Government Must Not Delay Car Industry Bailout
* Tenon Recovery Expects Epidemic of UK Insolvencies in 2009

* Large Companies with Insolvent Balance Sheet


                         *********


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


AGRIM-PEX LLC: Claims Registration Period Ends January 7
--------------------------------------------------------
Creditors owed money by LLC Agrim-Pex (FN 303813i) have until
Jan. 7, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Wolfgang Leitner
         Kohlmarkt 14
         1010 Wien
         Austria
         Tel: 533 19 39
         Fax: 533 19 39 39
         E-mail: kanzlei@lp-law.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on Jan. 21, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 6, 2008, (Bankr. Case No. 4 S 165/08d).


ARIKAN GROUP: Claims Registration Period Ends January 7
-------------------------------------------------------
Creditors owed money by LLC Arikan Productivity Group (FN 71894b)
have until Jan. 7, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Ilse Korenjak
         Gusshausstrasse 6
         1040 Wien
         Austria
         Tel: 512 21 02
         Fax: 512 21 02/20
         E-mail: office@buresch-korenjak.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Jan. 21, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 10, 2008, (Bankr. Case No. 4 S 169/08t).


FITKO TOURISMUS: Claims Registration Period Ends January 7
----------------------------------------------------------
Creditors owed money by LLC Fitko Tourismus (FN 272314m) have
until Jan. 7, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Ulla Reisch
         Praterstrasse 62-64
         1020 Wien
         Austria
         Tel: 212 55 00
         Fax: 212 55 0-5
         E-mail: office.wien@ulsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Jan. 21, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 5, 2008, (Bankr. Case No. 4 S 163/08k).


PLATZER LLC: Claims Registration Period Ends January 7
------------------------------------------------------
Creditors owed money by LLC Platzer (FN 120243d) have until
Jan. 7, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Guenther Grassner
         Suedtirolerstrasse 4-6
         4020 Linz
         Austria
         Tel: 0732/77 08 15
         Fax: 0732/770816
         E-mail: lawfim@gltp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 1:30 p.m. on Jan. 20, 2009, for the
examination of claims at:

         Trade Court of Steyr
         Hall 7
         Austria

Headquartered in Rohr im Kremstal, Austria, the Debtor declared
bankruptcy on Oct. 30, 2008, (Bankr. Case No. FN 120243d).


QUICKSTEP LLC: Claims Registration Period Ends January 1
--------------------------------------------------------
Creditors owed money by LLC Quickstep (FN 270014f) have until Jan.
1, 2009, to file written proofs of claim to the court-appointed
estate administrator:

         Peter Haslinger
         Krottendorfer Gasse 4
         8700 Leoben
         Austria
         Tel: 03842-48117
         Fax: 03842-48117-11
         E-mail: office@ra-ahb.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Jan. 14, 2009, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         Leoben
         Austria

Headquartered in Admont, Austria, the Debtor declared bankruptcy
on Nov. 11, 2008, (Bankr. Case No. 17 S 51/08f).


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


FORTIS NV: Belgium to Review Legal Options for BNP Paribas Deal
---------------------------------------------------------------
The Belgian government said it will review legal options in order
to push through with its EUR14.5 billion (US$19.4 billion) sale of
Fortis NV to BNP Paribas SA, The Financial Times reports.

"We shall continue," Finance Minister Didier Reynders was quoted
by FT as saying.  "The government has the same aim as before – to
protect deposits but also a real will to press ahead with an
industrial solution for Fortis Bank."

As reported in the Troubled Company Reporter-Europe on Oct. 7,
2008, the Belgian government acquired Fortis's operations in the
country and reached an agreement  with BNP Paribas on the
subsequent transfer of a majority interest in Fortis.

In September, Belgium, along with the Netherlands, and Luxembourg,
agreed to inject EUR11.2 billion into Fortis after its shares
slumped amid concerns about the company's solvency.  The
Associated Press recalls Fortis bought EUR24 billion worth of
assets as part of a takeover of ABN Amro in 2007 and as credit
markets soured and Fortis' attempts to shore up its cash position
by selling assets failed, it entered an accelerating slide, and
depositors began departing in droves.

According to FT, in a December 12 decision, the Brussels Court of
Appeal ruled in favor of a group of shareholders seeking to block
the carve-up of Fortis.

The International Herald Tribune relates the Brussels Court
ordered a shareholder vote before Feb. 12 for the transaction to
proceed.

Fortis expected the deal with BNP Paribas to close this month.

The Court, IHT says, also appointed a panel of experts to review
the proposed transaction and said the government would have to pay
a fine of EUR5 billion, or US$6.7 billion, to shareholders if it
sold Fortis before the vote.

Meanwhile, IHT reports that shareholders of Fortis are seeking a
better deal than the one offered by BNP Paribas.

"The situation has never been better for Fortis to start
renegotiating on behalf of all stakeholders," Laurent Arnauts of
the Brussels law firm Modrikamen was quoted by IHT as saying.  Mr.
Arnauts represents the Belgian and Dutch shareholders of Fortis.

According to IHT, Mr. Arnauts said the prices at which Fortis's
banking and insurance units were sold to the Dutch government and
to the French bank BNP Paribas "were too low."

Mr. Arnauts, as cited by IHT, stated shareholders wanted a better
deal from the Dutch state and BNP, otherwise, they could consider
combining Fortis with another troubled bank, Dexia SA, or
recreating it as an insurance company.

Dexia, according to a TCR-Europe report on Oct. 2, 2008, like
Fortis, was saved by a trio of governments -- Belgium, France and
Luxembourg -- who agreed to inject a total of EUR6.4 billion in
the company.

The Wall Street Journal reported that Dexia has a profitable core
municipal loans business but is exposed to the troubled U.S.
housing market through its smaller U.S. bond insurance arm FSA.
As mortgage defaults have multiplied, worries over the insurer's
ability to meet its obligations have grown, WSJ said.

A TCR-Europe report on Nov. 18, 2008, said Dexia reported a net
loss of EUR1,544 million in the third quarter of 2008, reflecting
a major negative impact from the financial crisis of EUR2,191
million.

                         About Fortis N.V.

Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers.  The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance.  The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners.  In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited.  As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited.  In July 2008, the Company sold International Asset
Management Limited (IAM).

                          *     *     *

As reported by the Troubled Company Reporter on Oct. 9, 2008,
Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V.
long term issuer ratings to Baa2 from Baa1, and the ratings were
placed under review for possible downgrade.  Debt ratings
benefiting from subordinated and preferred guarantees from the
joint holding companies were downgraded to Baa3 and Ba1
respectively.  Certain securities benefiting from joint and
several guarantees from the holding companies and Fortis ASR
Levensverzkering N.V. were confirmed at Baa3 with a developing
outlook.  Moody's also downgraded the insurance financial strength
rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from
A3, and the backed senior unsecured debt of Fortis Capital (Asia)
Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1.  These
ratings now carry a developing outlook.  The Group's CP rating was
affirmed at P-2 and placed under review for possible downgrade.


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


ALCATEL-LUCENT: Unveils Strategic Plan; Eyes EUR750MM Cost Savings
------------------------------------------------------------------
Alcatel-Lucent on Friday, December 12, unveiled its strategic plan
to enable service providers, enterprises and end-users to take
greater advantage and gain more value out of today's web
environment as well as its next evolution.

                         Strategy

Alcatel-Lucent's plan is to combine the trusted capabilities of
the network environment with the creative communications services
of the web (Web 2.0, Web 3.0 and beyond).  This transformation
will allow billions of customers to use millions of websites from
any device guaranteeing security, quality, privacy and billing
integrity.  The overall service experience for end-users –
consumers and businesses – will be improved and greater value will
be created for every player in the industry.

This strategy requires providing an open environment, which does
not exist today, where all these trusted capabilities can be
available between the network and "over-the-top" applications
typical of Web 2.0.  It is a challenge that Alcatel-Lucent is
uniquely positioned to address, with its long-standing
relationship with network-based service providers and thousands of
enterprises worldwide, its capabilities in delivering fixed and
mobile broadband, flat-IP networks and its end-to end integration
capabilities around the globe.

In order to achieve this strategy, Alcatel-Lucent will undergo a
major strategic transformation and will take some significant
steps to realign its operations.  The company will be focusing on
three markets: service providers, enterprises, and selected
verticals and on four key areas of investment: IP, Optical, mobile
and fixed Broadband and Applications enablement.

"We will work closely with our service provider, enterprise
customers and applications providers to make this strategic
transformation happen.  We want to stimulate a sustainable
business model for the industry that will fuel innovation and the
capital investment required to expand the overall web experience
to more people and businesses.  Alcatel-Lucent is committed to
innovate, collaborate and partner to achieve this goal", said Ben
Verwaayen, CEO of Alcatel-Lucent.

                       Product Portfolio

Alcatel-Lucent will accelerate the shift of investments towards
next-generation platforms:

    * by reinforcing areas of leadership (IP, Optics, broadband
      access, IMS core, CDMA EV-DO)

    * by boosting investment in focus areas (LTE, W-CDMA,
      Enhanced packet core, Open application enablers)

    * by streamlining its product offerings on mature portfolios
      such as CDMA 1x, GSM, ATM, ADSL, DLC and legacy
      applications.

Alcatel-Lucent will be partnering, co-sourcing and participating
in the consolidation of the industry to reduce spending for WiMAX,
CPE, classic core, non-IMS based fixed NGN portfolio and some
legacy applications.

Other actions will be taken to have a more agile R&D, such as
further simplifying the Carrier Product Group from 6 to 4
divisions, completing platform rationalization program for W-CDMA
and NGN as well as consolidating global R&D centers.

                    Cost Reduction Initiatives

Alcatel-Lucent will initiate a set of strong actions designed to
reduce the company's break-even point by EUR1 billion per year in
both 2009 and 2010.  These actions will aim to:

    * Improve gross margin by reducing its manufacturing, supply
      chain and procurement costs, introducing stricter pricing
      discipline and over time, improving the product mix.

    * Enhance R&D efficiency by focusing on four key segments
     (Optical, IP, broadband and Applications enablement) and
      partnering or rationalizing spend in other areas.

    * Materially reduce SG&A expenses both in absolute terms and
      as percentage of revenue, through the de-layering of the
      organization and the elimination of sales duplication
      between product groups and regions.

As a part of these initiatives, Alcatel-Lucent expects to reduce
the number of managers by approximately 1,000 and the number of
contractors by approximately 5,000.  The company will also
complete its existing restructuring initiatives as well as seek
savings in real estate, support functions and discretionary
spending.

Altogether, Alcatel-Lucent expects that, by the fourth quarter
2009 on a run rate basis, it should achieve total savings of
EUR750 million at constant exchange rate, of which approximately
one-third in the cost of goods sold and two-thirds in R&D and SG&A
expenses.

                       Guidance and Targets

For full year 2009, Alcatel-Lucent expects the market for
telecommunications equipment and related deployment services to be
down between 8% and 12% at constant exchange rate and expects to
maintain a stable market share.  As a result of the expected
decline in volumes and given that the improvement in gross margin
will only materialize towards the end of the year, the company's
initial forecast is to achieve an adjusted operating profit around
break-even in 2009.

In 2010, with the set of actions described above, Alcatel-Lucent
is targeting to achieve a gross margin in the mid thirties range
and an operating margin in the mid single-digit range.

Looking beyond, the goal of the company is to achieve a gross
margin in the mid to high thirties range and an operating margin
in the mid to high single-digit range in 2011.

"The new management team is committed to rapidly executing this
new strategy and leveraging the new streamlined organization.  We
are focused on delivering results and restoring profitability.  I
am confident we have now the strategy and the strengths to
succeed," said Ben Verwaayen, CEO of Alcatel-Lucent.

                   About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.

                           *     *     *

Alcatel Lucent continues to carry 'BB-/B' long- and short-term
corporate credit ratings from Standard & Poor's.  The ratings were
affirmed and the outlook changed from stable to negative in August
2008.

The 'BB-/B-1' long and short-term corporate credit ratings on
subsidiary Lucent Technologies Inc., and all issue ratings on both
companies were also affirmed.

Alcatel-Lucent also carries Ba3 Corporate Family and Senior Debt
ratings, Not-Prime for short term debt, as well as B2 ratings for
subordinated debt with negative outlook from Moody's.  The ratings
were affirmed in April 2008.


SPCM SA: Moody's Review Low-B Ratings for Possible Downgrade
------------------------------------------------------------
Moody's Investors Service has placed the ratings of SPCM SA under
review for possible downgrade.  The review has been prompted by
SPCM's deterioration in debt and cash flow metrics over the last
two quarters to 30th September 2008 and the issuer's announcement
that they have requested an amendment of the financial covenants
of their senior secured lending facilities from their banking
group as SPCM is most likely to breach its financial covenants at
the testing on 31st December 2008.

The review process will focus on (i) the negotiations of SPCM with
its banks with regards to an amendment of the covenant levels of
the group's senior credit facilities, and (ii) the impact of the
continued organic growth strategy on the credit metrics of the
group in a more challenging operating environment.

Moody's will also assess as part of its review the business
prospects and outlook for SPCM looking into 2009 as well as the
impact of a structural deterioration in working capital on the
credit metrics of the group.

These ratings are affected by the rating action:

  -- SPCM SA: B1 Corporate Family Rating / B1 Probability of
     Default Rating

  -- SPCM SA: B3 / (LGD 5, 83%) rating on EUR210 million Senior
     Unsecured bond

The last rating action was on July 15, 2008, when the ratings of
SPCM SA were affirmed and the outlook changed to positive.

SPCM SA is the holding of the SNF Group. SNF is on of the world's
leading producers of acrylate-based water soluble polymers used in
water treatment, as well as in mining, pulp and paper and enhanced
oil recovery.  The company is family-owned and was formed as a
result of a buy-out of the flocculants business from WR Grace back
in 1978.  SNF, headquartered in Saint-Etienne, France, reported
revenues of EUR1,059 million and an EBITDA of EUR104 million for
the fiscal year ended 31st December 2007.


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


AIR SERVICE: Claims Registration Period Ends January 12
-------------------------------------------------------
Creditors of Air Service Lippewiesen GmbH have until Jan. 12,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on 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 Dortmund
         Hall 3.201
         Gerichtsplatz 22
         44135 Dortmund
         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:

         Kaufmann Helmut Buerenkemper
         Alter Grenzweg 2
         59071 Hamm
         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:

         Air Service Lippewiesen GmbH
         Heessener Str. 24
         59065 Hamm
         Germany

         Attn: Wilhelm Tripp, Manager
         Heinrich-Heine-Str. 5
         59227 Ahlen
         Germany


DECOTECH GMBH: Claims Registration Period Ends January 2
--------------------------------------------------------
Creditors of Decotech 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 11:10 a.m. on Jan. 22, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Kaiserslautern
         Hall 13
         Bahnhofstr. 24
         67655 Kaiserslautern
         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. Harald Hess
         W.-Th.-Roemheld-Str. 14
         55130 Mainz
         Germany
         Tel: 06131/2850-0
         Fax: 06131/2850-28

The District Court opened bankruptcy proceedings against the
company on Dec. 3, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Decotech GmbH
         Sportheimstr. 12
         67661 Kaiserslautern
         Germany

         Attn: Uwe Haak, Manager
         Weiherstr. 19
         67659 Kaiserslautern
         Germany


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

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Jan. 22, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Duesseldorf
         Meeting Hall A 341
         Fourth Floor
         Muehlenstrasse 34
         40213 Duesseldorf
         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:

         Klaus Siemon
         Homberger Strasse 12
         40474 Duesseldorf
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 4, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Helms GmbH
         Attn: Thomas Schneider, Manager
         Collenbachstrasse 43
         40476 Duesseldorf
         Germany


HUMMEL HOLZBAU: Claims Registration Period Ends January 5
---------------------------------------------------------
Creditors of Hummel Holzbau 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 9:00 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 Hanau
         Area E03
         Engelhardstrasse 21
         63450 Hanau
         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:

         Karl-Heinz Trebing
         Hanauer Landstr. 287-289
         60314 Frankfurt/Mainz
         Germany
         Tel: 069/15051530
         Fax: 069/15051400

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:

         Hummel Holzbau GmbH
         Rosenstr. 19
         63450 Hanau
         Germany

         Attn: Georg Kaletsch, Manager
         Matthias-Claudius-Weg 2
         63589 Linsengericht
         Germany


LANDESBANK BADEN-WURTTEMBERG: Moody's Junks Ratings on Credit Swap
------------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of a CDS, UBS
AG, London Branch -- Credit Default Swap (Freshwater 1) entered
into by Landesbank Baden-Wurttemberg.

The transaction is a managed synthetic CDS referencing a portfolio
of corporate and sovereign entities.  The portfolio composition is
40% North American, 35% European and 25% other, including some
emerging market, jurisdiction reference entities.

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

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

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

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

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

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

The rating action is:

Landesbank Baden-Wurttemberg:

UBS AG, London Branch -- Credit Default Swap (Freshwater 1)

  -- Current Rating: Caa1
  -- Prior Rating: Aa3
  -- Prior Rating Date: 27 September 2006


TAVICO GMBH: Claims Registration Period Ends January 27
-------------------------------------------------------
Creditors of Tavico GmbH have until Jan. 27, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Feb. 24, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         Gerichtsplatz 22
         44135 Dortmund
         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:

         Achim Thomas Thiele
         Bronnerstrasse 7
         44141 Dortmund
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 1, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Tavico GmbH
         Attn: Juergen Klotzbach and
               Andre Truar, Managers
         Luetgendortmunder Str. 120
         44388 Dortmund
         Germany


TEDRIVE: Files for Insolvency for Two German Units
--------------------------------------------------
Tedrive has filed for insolvency for two German units following a
recent slump in orders, Reuters reports citing the company's
insolvency administrator, Andreas Ringstmeier.

The report relates that Tedrive, according to Mr. Ringstmeier,
aimed to restructure its business at the two units, which  make
driveshafts and steering systems, and employ a total of 1,500
workers.

The company's other production sites in Poland and Brazil however
are not affected by the German insolvency filing, the report
notes.


WABO FLIESEN: Claims Registration Period Ends January 15
--------------------------------------------------------
Creditors of WABO Fliesen GmbH have until Jan. 15, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9.00 a.m. on Feb. 12, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Kiel
         Hall 3
         Deliusstr. 22
         Kiel
         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:

         Verena Vogt
         Kirchhofallee 25
         24103 Kiel
         Germany
         Tel: 0431/5301703
         Fax: 0431/5301704

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

The Debtor can be reached at:

         WABO Fliesen GmbH
         Attn: Adman Alkis, Manager
         Im Waldwinkel 62
         24109 Kiel
         Germany


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


ICESAVE: Dutch Central Bank Starts Paying Out Dutch Savers' Claims
------------------------------------------------------------------
DutchNews.nl reports that the Dutch central bank has begun paying
out claims to Dutch depositors with bankrupt Icesave.

Citing the Financieele Dagblad, DutchNews.nl says that so far
100,000 of the 140,000 people with money in Icesave filed a claim
for compensation.

According to DutchNews.nl, Dutch savers can get back up to
EUR100,000, just over EUR20,000 of which is being paid by the
Icelandic authorities.

On Dec. 10, 2008, the TCR-Europe reported that according to
Xinhua, Dutch banks will only have to fund the difference between
the sum guaranteed by Iceland and some EUR38,000, while the
remainder, some EUR62,000, will be paid by the Dutch treasury.

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

Meanwhile, a group representing the 469 Dutch nationals who had
more than EUR100,000 in Icesave was in Iceland Friday for a
meeting of major creditors of the bank's parent company
Landsbanki, DutchNews.nl relates.

In a TCR-Europe on Nov. 25, 2008, Dow Jones Newswires disclosed
the Netherlands provided the government of Iceland with a loan of
around EUR1.3 billion that will be used to repay Dutch savers with
Icesave.

                         About Icesave

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


KAUPTHING BANK: Court to Hear Chapter 15 Petition on January 21
---------------------------------------------------------------
On Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank
hf., in a proceeding under Act No. 21/1991, pending before the
Reykjavik District Court, and foreign representative of the
Debtor, filed a petition under chapter 15 of tile 11 of the United
States Code in the United States Bankruptcy Court for the Southern
District of New York commencing the Debtor's chapter 15 case
ancillary to the Icelandic Proceeding and seeking recognition for
the Icelandic Proceeding as a "foreign main proceeding" under the
Bankruptcy Code and relief in aid of the Icelandic Proceeding.

Pursuant to the Order Scheduling Hearing on Recognition of Foreign
Main Proceeding and Specifying the Form and Manner of Service of
Notice of Chapter 15 Petition and Recognition Hearing, dated
December 1, 2008, the Bankruptcy Court has scheduled a hearing to
consider the Foreign Representative's request for recognition of
the Icelandic Proceeding as a "foreign main proceeding" pursuant
to sections 1517 of the U.S. Bankruptcy Code and related relief on
January 21, 2009 at 10:00 a.m. (Eastern time) before the Honorable
Martin Glenn in Room 501 of the United States Bankruptcy Court,
Alexander Hamilton Custom House, One Bowling Green, New York, NY
10004-1408.

Any party in interest wishing to submit a response or answer to
the relief requested by the Foreign Representative must do
pursuant to the U.S. Bankruptcy Code and the Local and Federal
Rules of Bankruptcy Procedure, including, without limitation, Rule
1011 of the Federal Rules of Bankruptcy Procedure, in writing and
setting for the bases therefore and the nature  and extent of the
respondent's interests in the Debtor's assets, and such response
or answer must be filed with the Office of the Clerk of the Court,
Alexander Hamilton Custom House, One Bowling Green, New York,
NY10004-1408, and served on the attorneys for the Foreign
Representative Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New
York, New York, 10153 U.S.A., Attn: Marcia L. Goldstein, Gary T.
Holtzer and Sharon J. Richardson, Esquires, so as to be received
by them no later than 5:00 p.m. (Eastern time) on January 8, 2009.
Replies to any such responses or answers shall be filed with the
Court with a copy to Chambers, and served upon the responding
parties so as to be received no later than 5:00 p.m. (Eastern
time) on January 15, 2009.

All parties in interest opposed to the Foreign Representative's
request for relief must appear at the Hearing at the time and
place set forth above.

The hearing may be adjourned from time to time without further
notice other than an announcement in open court at the Hearing of
the adjourned date or dates or any further adjourned hearing.

If no response or objection is timely filed and served as provided
above, the Bankruptcy Court may grant the recognition and relief
requested by the Foreign Representative without further notice or
hearing.

                      About Kaupthing Bank

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

                           *    *    *

As reported in the Troubled Company Reporter-Europe on
October 13, 2008, Fitch Ratings downgraded Kaupthing Bank hf.'s
Long-term Issuer Default rating to 'D' from 'CCC' and removed it
from Rating Watch Evolving.  This follows the announcement that
Kaupthing is now subject to similar arrangements as its two
Icelandic peers, Glitnir Banki and Landsbanki Islands, with the
Icelandic authorities effectively seizing control of the bank.

At the same time, Moody's Investors Service downgraded the bank
financial strength rating (BFSR) of Kaupthing Bank hf to E from
D+, its long-term deposit ratings to Caa1 from Baa3, the long-term
senior debt ratings to Caa2 from Ba1.  In addition, Moody's
downgraded the bank's subordinated debt to C from Ba2 and its
preferred stock to C from B1.  The bank's short-term rating was
downgraded to Not-Prime from P-3.  Moody's is maintaining
Kaupthing's long-term deposit ratings, the long-term senior debt
ratings and its BFSR on review for further possible downgrade.


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


ARGON CAPITAL: Moody's Cuts Ratings on EUR113 Mil. Notes to 'Ba3'
-----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of one class
of notes issued by Argon Capital PLC.

The transaction is a repack of CDO tranches.  Specifically Clear
PLC Series 18 notes, a managed synthetic CDO tranche and Anderson
Valley II CDO P.L.C. notes, a managed hybrid CDO.  The rating
action follows the downgrade of Clear PLC Series 18 notes to Ba3.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for repackaged securities as described in Moody's Special Reports
below:

  -- Repackaged Securities (October 2001)

  -- Moody's Refines It's Approach to Rating Structured Notes
     (July 1997)

The rating action is:

Argon Capital PLC:
Series 69: EUR113,000,000 Limited Recourse Secured Notes due 2017

  -- Current Rating: Ba3
  -- Prior Rating: A2
  -- Prior Rating Date: 29 March 2007


CLEAR PLC: Moody's Puts Ratings on 15 Classes of Notes for Review
-----------------------------------------------------------------
Moody's Investors Service has placed under review for possible
downgrade its ratings of fifteen classes of notes issued by Clear
PLC.

The transaction is a managed synthetic CDO referencing a portfolio
of 138 corporate and sovereign entities The pool consists of
approximately 45% European names and 45% North American names.
The transaction also has a significant exposure to corporate names
which continue to deteriorate in the current economic environment.
This will weigh on the ratings of the tranches in this
transaction.

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

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

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

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

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

Clear PLC

(1) Series 21: JPY1,000,000,000 Limited Recourse Secured Floating
RateCredit-Linked Notes due 2017

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: B1
  -- Prior Rating Date: 26 September 2008

(2) Series 22: US$30,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: B1
  -- Prior Rating Date: 26 September 2008

(3) Series 24: US$13,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: Ba1
  -- Prior Rating Date: 26 September 2008

(4) Series 25: US$1,000,000 Limited Recourse Secured Fixed Rate
Credit-Linked Notes due 2017

  -- Current Rating: B3, on review for possible downgrade
  -- Prior Rating: B3
  -- Prior Rating Date: 26 September 2008

(5) Series 26: US$1,500,000 Limited Recourse Secured Fixed Rate
Credit-Linked Notes due 2017

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: B1
  -- Prior Rating Date: 26 September 2008

(6) Series 27: US$3,000,000 Limited Recourse Secured Floating Rate
Credit-Linked Notes due 2017

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: B1
  -- Prior Rating Date: 26 September 2008

(7) Series 28: US$7,000,000 Limited Recourse Secured Floating Rate
Credit-Linked Notes due 2017

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: Ba1
  -- Prior Rating Date: 26 September 2008

(8) Series 29: US$40,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: Baa1, on review for possible downgrade
  -- Prior Rating: Baa1
  -- Prior Rating Date: 30 September 2008

(9) Series 30: US$30,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: Ba1
  -- Prior Rating Date: 26 September 2008

(10) Series 43: US$25,000,000 Limited Recourse Secured Variable
Rate Credit-Linked Notes due 2017

  -- Current Rating: Baa1, on review for possible downgrade
  -- Prior Rating: Baa1
  -- Prior Rating Date: 30 September 2008

(11) Series 45: US$10,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: Baa1, on review for possible downgrade
  -- Prior Rating: Baa1
  -- Prior Rating Date: 26 September 2008

(12) Series 46: US$10,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: B1
  -- Prior Rating Date: 26 September 2008

(13) Series 47: JPY 2,000,000,000 Limited Recourse Secured
Floating Rate Credit-Linked Notes due 2017

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: B1
  -- Prior Rating Date: 26 September 2008

(14) Series 50: US$13,000,000 Limited Recourse Secured Fixed Rate
Credit-Linked Notes due 2017

  -- Current Rating: Baa3, on review for possible downgrade
  -- Prior Rating: Baa3
  -- Prior Rating Date: 26 September 2008

(15) Series 52: US$18,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2017

  -- Current Rating: Ba3, on review for possible downgrade
  -- Prior Rating: Ba3
  -- Prior Rating Date: 26 September 2008


CLEAR PLC: Moody's Cuts Rating on EUR113 Million Notes to 'Ba3'
---------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of one class
of notes: Series 18 - issued by Clear PLC.

The transaction is a managed synthetic CDO referencing, a
portfolio of 127 corporate and sovereign entities.  The pool
consists of approximately 35% European names and 55% North
American names.  The rating action is are a response to credit
deterioration in the underlying portfolio.  The transaction has a
significant exposure to corporate names which continue to
deteriorate in the current economic environment.  This will weigh
on the ratings of the tranches in this transaction.

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

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

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

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

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

The rating action is:

Clear PLC:

Series 18: EUR113,000,000 Limited Recourse Secured Floating Rate
Credit-Linked Notes due 2017

  -- Current Rating: Ba3
  -- Prior Rating: A2, on review for possible downgrade
  -- Prior Rating Date: 1 August 2008


KHEOPS CDP: Moody's Cuts Ratings on EUR50 Mil. Notes to 'Ba2'
-------------------------------------------------------------
Moody's Investors Service downgraded seven classes of notes issued
by Kheops CDO I (Ireland) Plc - Managed CSO.

This transaction is a managed corporate synthetic CDO.

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

(1) EUR30,000,000 Series 1 Class A-1E5 Floating Rate Secured
Portfolio Credit-Linked Notes due 2010

  -- Current Rating: Aa3
  -- Prior Rating: Aaa
  -- Prior Rating Date: 23 June 2005

(2) EUR5,000,000 Series 2 Class B-2E5 Fixed Rate Secured Portfolio
Credit-Linked Notes due 2010

  -- Current Rating: A3
  -- Prior Rating: Aa1
  -- Prior Rating Date: 26 July 2007

(3) EUR1,500,000 Series 3 Class C-1E5 Floating Rate Secured
Portfolio Credit-Linked Notes due 2010

  -- Current Rating: Baa3
  -- Prior Rating: A1
  -- Prior Rating Date: 26 July 2007

(4) EUR15,000,000 Series 4 Class A-1E7 Floating Rate Secured
Portfolio Credit-Linked Notes due 2012

  -- Current Rating: Aa2
  -- Prior Rating: Aaa
  -- Prior Rating Date: 23 June 2005

(5) EUR2,000,000 Series 5 Class B-1E7 Floating Rate Secured
Portfolio Credit-Linked Notes due 2012

  -- Current Rating: A2
  -- Prior Rating: Aa1
  -- Prior Rating Date: 26 July 2007

(6) EUR5,000,000 Series 6 Class C-1E7 Floating Rate Secured
Portfolio Credit-Linked Notes due 2012

  -- Current Rating: Baa2
  -- Prior Rating: A1
  -- Prior Rating Date: 26 July 2007

(7) EUR50,000,000 Series 7 Class C-2E10 Fixed Rate Secured
Portfolio Credit-Linked Notes due 2015.

  -- Current Rating: Ba2
  -- Prior Rating: A1
  -- Prior Rating Date: 26 July 2007


SASHA: Attracts Interest of Nine Potential Investors
----------------------------------------------------
The Sasha chain of ladies clothing stores has attracted the
interest of potential investors, the Irish Times reports.

Colm Allen SC, the report relates, told Mr Justice Brian McGovern
that there had been "nine serious expressions of interest" from
investors in Sasha, which has 42 stores in Ireland.

The stores, the report notes, remain under court protection.

The judge on Friday confirmed the appointment of David Carson of
Deloitte as examiner to Denholme, an unlimited company trading as
Sasha, the report relates.  He granted the examiner an extension
to January 16 to allow him to prepare a report for the court, the
report adds.

The judge, the report recounts, appointed Mr. Carson as examiner
last month after being told the company had a reasonable prospect
of survival provided certain conditions were met, including the
finalizing of a scheme of arrangement and the securing of
additional investment.

The court heard previously that the company was currently unable,
or likely to be unable, to pay its debts, totaling some EUR10
million, the report states.

According to the report, the company's creditors include Bank of
Ireland, which is owed more than EUR2.4 million, and the Revenue
Commissioners, which is owed EUR2.18 million.

Sasha employs 380 people directly while 120 additional jobs are
indirectly dependent on it, the report discloses.


TUSKAR RESIDENTIAL: Bank Seizes EUR8 Mln Dun Laoghaire Site
-----------------------------------------------------------
Ian Kehoe at the Sunday Business Post Online reports that
the Bank of Scotland (Ireland) has seized the prominent Iceland
site in Dun Laoghaire owned by Tuskar Residential Investment
Properties (Trips), a company connected to Tuskar Asset Management
plc, which is in examinership.

The bank, the report recounts, tapped Jim Hamilton of BDO Xavier
Simpson as receiver for Trips after the High Court appointed a
liquidator to the company.  The court was told the company has no
prospect of survival, the report adds.

According to the report, the bank is owed EUR25 million in
relation to the Trips site, which consists of a half-built
commercial development.

However, the property, the report notes, is now worth just EUR8
million, according to official filings.

Mr. Hamilton, the report relates, is assessing options for the
site in an effort to extract as much value as possible for the
financial institution.

On Nov. 5, 2008, the TCR-Europe reported that according to the
Sunday Business Post Online, more than 85 investors are personally
liable for EUR18 million in losses accrued by Tuskar Asset
Management.

The report said all the investors in various group companies
connected with the Tuskar fund provided personal guarantees in the
event that the company incurred losses on its investments.

Citing court documents, the report revealed the company had
invested EUR50 million in properties and assets, but racked up
debts of EUR18 million.

The report noted a number of those who invested "significant
amounts" did so from self-administered pension funds.

The High Court, the report recalled, appointed David Hughes as
examiner to six related companies in the Tuskar Asset Management
group after it determined that the company was insolvent.


TWO SEASONS: Goes Into Provisional Liquidation
----------------------------------------------
Ian Kehoe at the Sunday Business Post Online reports that Two
Seasons has gone into provisional liquidation after being hit by
the sharp decline in the Irish retail sector.

George Maloney, an accountant with Baker Tilly Ryan Glennon, was
appointed provisional liquidator to the company following a
petition to the High Court last week, the report relates.

According to the report, the company racked up significant debts
and ran out of cash.

The company, the report discloses, owed creditors more than
EUR1 million at the end of 2006 and made a loss of EUR250,000
during the year.

A full hearing on the appointment of the liquidator will take
place in the coming days, the report notes.

Two Seasons is a chain of retail outlets in Ireland that
specializes in Christmas goods and seasonal gifts.  It is majority
owned by Patrick and Patricia McGuane.


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


ALITALIA SPA: CAI Takes Control of Assets for EUR427 Mln
--------------------------------------------------------
Compagnia Aerea Italiana s.r.l., an Italian investor consortium,
has formally took possession of the assets of Alitalia S.p.A. on
Friday, December 12, Reuters reports citing Roberto Colanino,
president of the CAI investor group.

CAI's purchase of Alitalia for EUR427 million (US$567 million) was
initially set to be wrapped up by the end of November, but had
been delayed, the report recounts.

According to the report, the Anpav and Avia unions representing
flight attendants agreed on Friday to join the major unions in
backing the deal, Reuters.

In a TCR-Europe on Dec. 15, 2008, Reuters disclosed that
Alitalia's smaller rival Air One SpA agreed Thursday last week to
sell its operations to CAI.

The purchase of Air One is part of CAI's rescue plan for Alitalia.
The transaction is expected to close by the end of the year.

Meanwhile, Reuters said the process of integrating Alitalia and
Air One to create "the new flagship carrier" will begin from
Jan. 13.

According to Reuters, Air One President Carlo Toto will reinvest
EUR60 million in the new airline.

                      Takeover Offer

As reported in the Troubled Company Reporter-Europe on Nov. 21,
2008, CAI improved its EUR1 billion offer for Alitalia's best
assets to EUR1.052 billion (US$1.33 billion) including debt.

According to Reuters, CAI had initially bid EUR275 million
(US$347.2 million) for Alitalia's flight operations and EUR100
million in a mix of cash and debt for other units, and would take
on further debt of EUR625 million.

In its revised bid, Bloomberg News said CAI will pay EUR427
million in cash, EUR100 million of which was payable on the
closing date of Nov. 30.  CAI is also assuming EUR625 million in
debt, including financing for planes.

                          About Alitalia

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

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

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

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

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


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


AGRO ELECTRO: Proof of Claim Deadline Slated for January 23
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Agro Electro Stroy insolvent.

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

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


BALHASHSKY MYASOKOMBINATE: Creditors Must File Claims by Jan. 20
----------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Balhash Meat Packing Plant Balhashsky Myasokombinate
insolvent.

Creditors have until Jan. 20, 2009, to submit written proofs of
claim to:

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


HUSEYIN SAUDA: Claims Filing Period Ends January 23
---------------------------------------------------
LLP Huseyin Sauda has declared insolvency.  Creditors have until
Jan. 23, 2009, to submit written proofs of claim to:

         LLP Huseyin Sauda
         Erubaev Str. 10-12
         Kazybek Bi
         Karaganda
         Kazakhstan


KAZ SERVICE: Creditors' Claims Due on January 23
------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Kaz Service insolvent on June 10, 2008.

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

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


KOLOR LLP: Claims Registration Ends January 23
----------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Kolor insolvent.

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

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


KRUP TORG: Proof of Claim Deadline Slated for January 20
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Krup Torg insolvent.

Creditors have until Jan. 20, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Gogol Str. 177a
         Kostanai
         Kazakhstan
         Tel: 8 (7142) 54-04-23


NEFTE-GAS MONTAGE: Creditors Must File Claims by January 23
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Nefte-Gas Montage-Aktobe insolvent.

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

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


PROMYSHLENNYE TECHNOLOGIYI: Claims Filing Period Ends Jan. 23
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Promyshlennye Technologiyi insolvent.

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

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


REM STROY TREST: Creditors' Claims Due on January 23
----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Construction Company Rem Stroy Trest insolvent on
Nov. 3, 2008.

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

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


TPK AGRO-3: Claims Registration Ends January 20
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP TPK Agro-3 insolvent.

Creditors have until Jan. 20, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Gogol Str. 177a
         Kostanai
         Kazakhstan
         Tel: 8 (7142) 54-04-23


* Moody's Reviews 'D-' BSFR on Eight Kazakh Banks for Likely Cut
----------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the bank financial strength ratings and debt and deposit
ratings of eight Kazakh banks.  In addition, Moody's also placed
on review for possible downgrade the issuer ratings of four
government-related issuers.  The affected institutions are:

  - ATF Bank: BFSR D-, LC deposit rating Baa2, LC deposit rating
    Baa2, senior unsecured debt rating Baa2 ,all ratings on review
    for downgrade;

  - Bank CenterCredit: BFSR D-, LC and FC deposit ratings Ba1,
    senior unsecured debt rating Ba1, all ratings on review for
    downgrade;

  - BTA Bank: BFSR D-, LC and FC deposit ratings Ba1, senior
    unsecured debt rating Ba1, all ratings on review for
    downgrade;

  - Caspian Bank: BFSR D-, LC and FC deposit ratings Ba3, senior
    unsecured debt rating Ba3, all ratings on review for
    downgrade;

  - Delta Bank: BFSR E+, LC and FC deposit ratings B3, all ratings
    on review for downgrade;

  - Eximbank Kazakhstan: BFSR E+, LC and FC deposit ratings B3,
    all ratings on review for downgrade;

  - Halyk Savings Bank of Kazakhstan: BFSR D, LC deposit rating
    Baa3, senior unsecured debt rating Baa3, all ratings on review
    for downgrade;

  - Kazkommertsbank: BFSR D-, LC and FC deposit ratings Ba1,
    senior unsecured debt rating Ba1, all ratings on review for
    downgrade;

  - Agrarian Credit Corporation: Issuer rating Baa2, rating on
    review for downgrade;

  - Astana Finance: Issuer rating Ba1, rating on review for
    downgrade;

  - KazAgroFinance: Issuer rating Baa2, rating on review for
    downgrade;

  - Kazakhstan Mortgage Company: Issuer rating Baa1, rating on
    review for downgrade.

In addition, Moody's has placed on review for possible downgrade
the debt and deposit ratings of eight Kazakh banks.  The BFSR's of
these banks were affirmed at the current level.  The affected
institutions are:

  - Alfa-Bank Kazakhstan: BFSR E+ affirmed, LC and FC deposit
    ratings Ba3 on review for downgrade

  - Eurasian Bank: BFSR E+ affirmed, LC and FC deposit ratings B1
    on review for downgrade

  - House Construction Saving Bank of Kazakhstan: BFSR E+
    affirmed, LC deposit rating Baa2 on review for downgrade

  - Kazinvestbank: BFSR E+ affirmed, LC and FC deposit ratings B2
    on review for downgrade

  - Nurbank: BFSR E+ affirmed, LC and FC deposit ratings B1 on
    review for downgrade

  - SB Sberbank: BFSR E+ affirmed, LC and FC deposit ratings Ba2
    on review for downgrade

  - Temirbank: BFSR E+ affirmed, LC and FC deposit ratings Ba3,
    senior unsecured debt rating Ba3 on review for downgrade

  - Tsesna Bank: BFSR E+ affirmed, LC and FC deposit ratings B1,
    senior unsecured debt rating B1 on review for downgrade

Moody's has also downgraded the issuer rating of Development Bank
of Kazakhstan to Baa1 from A2, and placed it on review for
possible further downgrade.  The Ba3 issuer rating of DBK-Leasing,
a subsidiary leasing company of Development Bank of Kazakhstan has
been affirmed.

At the same time, Moody's has affirmed the E+ BFSR and maintained
the review for possible downgrade on the deposit and debt ratings
of Alliance Bank and on the issuer ratings of Seimar Alliance
Financial Corporation, Alliance Bank's holding company.
Moody's has affirmed the Ba1/Not Prime foreign currency deposit
ratings of ATF Bank and Halyk Savings Bank, which are constrained
by the country ceiling for Kazakhstan.

These rating actions reflect Moody's assessment of increased
uncertainty regarding government support to the Kazakh banks
followed by the recent statements of high-ranked Kazakh officials
on the government's intention to restructure the banks' foreign
borrowings and the potential implications this may have to the
economy.

These rating actions also reflect growing pressure on Kazakh banks
liquidity position, financial fundamentals and franchise viability
caused by the tightening economic conditions in the country and
the growing uncertainty regarding the ability of the Kazakh banks
and GRIs to meet their obligations on foreign borrowings which
amounted to around US$45 billion at the end of Q3 2008 -- with the
substantial part of the repayments falling due in 2009-2011.
Moody's notes that the largest financial institutions affected by
this rating action account for the majority of the outstanding
foreign currency debt issued by Kazakh financial institutions.
The ratings of most of these institutions incorporate a
probability of support from the government in the event of need.

In its rating review Moody's will focus on (i) re-examining the
government support incorporated in the banks' and GRIs' deposit
and debt ratings based on the recent events , and (ii) on
analysing the impact of the deteriorating macroeconomic conditions
on Kazakh banks' and GRIs' financial fundamentals.  The likely
results of the review would be either affirmation of these ratings
where there is strong evidence that their intrinsic financial
strength and support from the government would be sufficient to
maintain them at the current level, or downgrade the ratings of
those institutions if the standalone financial strength and/or the
support assumptions are not appropriately reflecting the economic
situation and the government support policy based on current
events.

Moody's notes that the downgrade of the Development Bank of
Kazakhstan's issuer rating from A2 to Baa1 (on par with
Kazakhstan's local currency government bond ratings) was prompted
by the increased uncertainty regarding the systemic support
probability.

Moody's previous rating action on Alfa-Bank Kazakhstan was on
May 4, 2007 when the BFSR and deposit ratings were affirmed at
E+/Ba3/NP.

Moody's previous rating action on Alliance Bank was on July 30,
2008 when the long-term debt and deposit rating outlook were
placed on review for downgrade.

Moody's previous rating action on ATF Bank was on November 28,
2008 when the outlook on the bank's BFSR of D- was changed to
negative from stable.

Moody's previous rating action on Bank CenterCredit was on
November 1, 2007 when the outlook on all of the bank's ratings was
changed to negative from stable.

Moody's previous rating action on BTA Bank was on November 1, 2007
when the outlook on the BFSR of D- was changed to negative from
stable.

Moody's previous rating action on Caspian Bank was on May 4, 2007
when the deposit and debt ratings were changed to Ba3/NP from
Ba2/NP.

Moody's previous rating action on Delta Bank JSC was on
September 18, 2008 when the B3/NP/E+ ratings were assigned.

Moody's previous rating action on Eurasian Bank was implemented on
May 4, 2007 when the BFSR and deposit ratings were affirmed at
E+/B1/NP.

Moody's previous rating action on Eximbank Kazakhstan was
implemented on September 15, 2008 when deposit ratings were
downgraded to B3/NP from B2/NP.

Moody's previous rating action on Halyk Savings Bank of Kazakhstan
was implemented on November 1, 2007 when the outlook on the BFSR
of D was changed to negative from stable.

Moody's previous rating action on House Construction Saving Bank
of Kazakhstan was implemented on November 22, 2007 when the first-
time Baa2/P-2/E+ ratings were assigned.

Moody's previous rating action on Kazinvestbank was implemented on
October 29, 2007 when the first-time B2/NP/E+ ratings were
assigned.

Moody's previous rating action on Kazkommertsbank was on
November 1, 2007 when the BFSR was downgraded to D- from D.

Moody's previous rating action on Nurbank was implemented on
May 4, 2007 when the bank's long-term deposit ratings were
downgraded to B1 from Ba3.

Moody's previous rating action on SB Sberbank JSC was implemented
on May 4, 2007 when the BFSR and the deposit ratings were affirmed
at E+/Ba2/NP.

Moody's previous rating action on Seimar Alliance Financial
Corporation was implemented on July 30, 2008 when the Ba3 long-
term foreign and local currency issuer ratings placed on review
for downgrade.

Moody's previous rating action on Temirbank was implemented on
May 7, 2008 when the bank's long-term deposit and debt ratings
were downgraded to Ba3 from Ba2.

Moody's previous rating action on Tsesna Bank was implemented on
May 4, 2007 when the BFSR and the FC Deposit Ratings were affirmed
at E+/B1/NP.

Moody's previous rating action on Agrarian Credit Corporation was
implemented on November 2, 2007 when Baa2/P-2 ratings were
assigned.

Moody's previous rating action on Astana Finance was implemented
May 2007 when a Ba1 long-term foreign currency debt rating to the
senior unsecured obligations was assigned.

Moody's previous rating action on DBK Leasing was implemented on
October 30, 2007 when the Ba3/NP ratings were assigned.

Moody's previous rating action on Development Bank of Kazakhstan
was implemented on October 30, 2006 when the issuer rating was
upgraded to A2 from Baa1.

Moody's previous rating action on KazAgroFinance was implemented
on November 1, 2006 when the Baa2/P-2 ratings were assigned.

Moody's previous rating action on Kazakhstan Mortgage Company was
implemented on November 2, 2006 when the long-term local currency
issuer rating was upgraded to Baa1.


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


JAN OIL: Creditors Must File Claims by January 29
-------------------------------------------------
LLC Jan Oil Ltd. has declared insolvency.  Creditors have until
Jan. 28, 2009, to submit proofs of claim to:

         Kushpakov Str. 12
         Karasuu
         Osh
         Kyrgyzstan


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


BALTIC INTERNATIONAL: Moody's Downgrades Deposit Ratings to 'B2'
----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term foreign and
local currency deposit ratings of Baltic International Bank to B2
from B1, with a negative outlook.  The bank's Not-Prime short-term
foreign and local currency ratings and E+ bank financial strength
rating were affirmed.  The outlook on the BFSR is stable.

The downgrade reflects the bank's weakened profitability, asset
quality and lower level of capital adequacy, which in Moody's
opinion no longer support a B1 rating.  The rating action also
reflects the bank's very high reliance on non-resident deposits
for funding.

For the first nine months of 2008, Baltic International Bank
recorded a pre-tax, pre-provision loss of LVL0.13 million
(EUR0.18 million) compared with a profit of LVL1.4 million
(EUR2 million) in the respective period of 2007, which was
primarily due to a significant decrease in trading income.  The
bank reported a trading loss of LVL0.42 million (EUR0.6 million),
which resulted mainly from unrealized losses in its securities
portfolio.  Meanwhile, Moody's recognizes that net interest income
and net fee & commission income remained solid in the period,
growing by 27% and 32%, respectively, year-on-year.

Moody's believes that the bank is likely to experience further
deterioration in asset quality in light of the weakening economic
environment in Latvia as reflected by the negative outlook.
Weakening asset quality has already become visible in the bank's
asset quality figures.  Moody's notes that its problem loans (i.e.
individually impaired and over 90 days past due, but not impaired
loans) accounted for 11.1% of gross loans at the end of September
2008, significantly up from 6.2% at the end of 2007.

Moody's notes that Baltic International Bank's exposure to the
real estate sector (both residential and commercial) -- which is
likely to be adversely affected by the ongoing economic slowdown
-- accounts for a 23% of total lending (or 93% of Tier 1 capital).
Additional concerns relate to the bank's high single-borrower
concentration.

The bank's total capital adequacy ratio stood at 10.07% at the end
of October 2008 (Basel II), down from 15.57% at the end of 2007
(Basel I).  In Moody's view, the bank's capitalization is low in
light of the current economic slowdown, its high credit
concentration risk and concerns over asset quality development.
Baltic International Bank's funding is almost solely based on
customer deposits and as a result its liquidity profile is not
exposed to the risk of being unable to meet its debt repayments in
the near term.  However, Moody's notes that its deposit base is
highly concentrated and consists almost solely of non-resident
deposits, which in the rating agency's view are more confidence-
sensitive than domestic residential deposits.  Moody's is
concerned that, given the weakening economic environment in
Latvia, non-resident deposits could now be more vulnerable to
withdrawals.  Given the current challenging market conditions in
the Latvian banking sector, Moody's cautions that a downgrade of
Baltic International Bank's deposit ratings could be prompted by a
weakening of its asset quality, capitalization or a tightening of
its liquidity profile.

The previous rating action on Baltic International Bank was
implemented on February 4, 2004, when Moody's assigned the E+ BFSR
and the B1 long-term and Not Prime short-term deposit ratings.

Headquartered in Riga, Latvia, Baltic International Bank reported
consolidated assets of LVL154 million (EUR219 million) at the end
of September 2008.

EUR50,000,000 Series 7 Class C-2E10 Fixed Rate Secured Portfolio
Credit-Linked Notes due 2015.

  -- Current Rating: Ba2
  -- Prior Rating: A1
  -- Prior Rating Date: 26 July 2007


PRIVATBANK AS: Moody's Downgrades Currency Deposit Ratings to 'B2'
------------------------------------------------------------------
Moody's Investors Service has downgraded the long-term foreign and
local currency deposit ratings of Privatbank AS to B2 from B1.
The bank's Not-Prime short-term foreign and local currency ratings
and E+ bank financial strength rating were affirmed.  The outlook
on the long-term foreign and local currency deposit ratings and
the BFSR is negative.

Moody's downgrade of the bank's long-term global local currency
deposit rating to B2 reflects its weakened profitability, asset
quality and lower level of capital adequacy.  As a result, in
Moody's opinion the bank has become more dependent on its parent
for financial support.

"For the first nine months of 2008, Privatbank's pre-tax, pre-
provision income decreased by 40% year-on-year compared with 2007.
The decrease was mainly due to a rise in operating expenses, which
grew by 32% year-on-year.  Positively, underlying core earnings
increased, with net interest income growing by 22% and fee &
commission income by 10% year-on-year.  However, loan loss
provisions accounted for a high 68% of pre-provision income
compared with 28% in the respective period in 2007.  As a result,
pre-tax profits decreased by 73% to LVL0.3 million
(EUR0.4 million) from LVL1.1 million (EUR1.6 million) in 2007,"
explains Kimmo Rama, a Moody's Vice President-Senior Analyst.
Moody's believes that the bank is likely to experience further
deterioration in asset quality in light of the weakening economic
environment in Latvia as reflected by the negative outlook.

"Weakening asset quality has already become visible in
Privatbank's asset quality figures.  Moody's understands that its
problem loans (i.e. individually impaired and over 90 days past
due, but not impaired loans) accounted for 12.1% of gross loans at
the end of September 2008, significantly up from 4.1% at the end
of 2007," says Mr. Rama.

Moody's adds that Privatbank's exposure to the real estate sector
(mainly residential mortgages) -- which is likely to be adversely
affected by the ongoing economic slowdown -- accounts for a high
54% of total lending (or over 400% of Tier 1 capital).

The bank's total capital adequacy ratio stood at 10.7% at the end
of September 2008 (Basel II), down from 14.3% at the end of 2007
(Basel I).  In Moody's view, the bank's capitalization is low in
light of the current economic slowdown, its high credit
concentration risk and concerns over asset quality development.

Privatbank's funding is mainly based on customer deposits, which
have continued to grow favorably in 2008.  However, Moody's
recognises that its deposit base exhibits a significant reliance
on non-resident deposits which in the rating agency's view are
more confidence-sensitive than domestic residential deposits.
Moody's is concerned that, given the weakening economic
environment in Latvia, non-resident deposits could now be more
vulnerable to withdrawals.  At end-June 2008, non-resident
deposits accounted for 52% of its total customer deposits.

Privatbank is 95% owned by Ukraine's Privatbank (Ba1/NP/D-,
stable).  Moody's continues to assess the probability of parental
support from its parent bank as moderate.  However, given
Privatbank's weakened financial fundamentals, the bank has, in
Moody's opinion, become more dependent on its parent bank for
funding and support.  The rating agency also notes that the parent
bank's operating environment in Ukraine has become more
challenging, which could potentially limit the parent's ability to
provide capital support for Privatbank, should the need arise.  As
a consequence of the support assessment, there is a one-notch
uplift for Privatbank's GLC deposit rating from its B3 Baseline
Credit Assessment.

Given the current challenging market conditions in the Latvian
banking sector, Moody's cautions that a downgrade of Privatbank's
BFSR and the deposit ratings could be prompted by a weakening of
its asset quality, capitalization and/or a tightening of its
liquidity profile.

The previous rating action on Privatbank was implemented on 4 May
2007, when Moody's upgraded the bank's deposit rating to B1 from
B2 following the application of its Joint Default Analysis and
updated BFSR methodology to its bank ratings in the Ukraine.
The principal methodologies used in rating Privatbank were "Bank

Headquartered in Riga, Latvia, Privatbank reported consolidated
assets of LVL182 million (EUR258 million) at the end of September
2008.


TRASTA KOMERCBANKA: Moody's Affirms 'E+' BSFR; Outlook Stable
-------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook on the B2 long-term local and foreign currency deposit
ratings of Trasta Komercbanka, while the E+ bank financial
strength rating and Not-Prime short-term local and foreign
currency deposit ratings were affirmed.  The outlook on the BFSR
is stable.

The change in outlook was prompted by Moody's concerns about the
trend in the bank's asset quality and its very high reliance on
non-resident deposits for funding.  The rating agency cautions
that the ongoing economic downturn is now likely to be more acute
than previously anticipated and thus have a more significant
adverse effect on the bank's asset quality in the near future.

In Moody's view, the rapid credit expansion in Latvia in recent
years is likely to lead to future asset quality problems as the
bank's loan book starts to season in the context of more
challenging economic conditions.  While this has not yet been
reflected in a weakening of Trasta Komercbanka's asset quality,
the negative outlook on its B2 deposit ratings reflects Moody's
concern that such a development is likely in the short term.
"Moody's notes that Trasta Komercbanka's exposure to the real
estate sector (both residential and commercial) accounted for 24%
of total lending (or 185% of Tier 1 capital) at end-September
2008.  In addition, the bank is exposed to consumer lending, which
accounts for 10% of total lending (or 82% of Tier 1 capital).

Moody's expects both of these segments to be adversely affected by
the ongoing economic slowdown.  Additional concerns relate to the
bank's record loan growth and high single-borrower concentration,"
says Kimmo Rama, a Moody's Vice President-Senior Analyst.

Moody's recognises that Trasta Komercbanka benefits from a large
deposit base, which accounted for 85% of its total funding at end-
September 2008.  However, the bank's deposits consists almost
solely of non-resident deposits, which in the rating agency's view
are more confidence-sensitive than domestic residential deposits.

Moody's is concerned that, given the weakening economic
environment in Latvia, non-resident deposits could now be more
vulnerable to withdrawals.

Given the current challenging market conditions in the Latvian
banking sector, Moody's cautions that a downgrade of Trasta
Komercbanka's deposit ratings could be prompted by a potential
weakening of its asset quality, capitalisation and/or a tightening
of its liquidity profile.

The previous rating action on Trasta Komercbanka was implemented
on 18 July 2008, when Moody's assigned the E+ BFSR and the B2
long-term and Not Prime short-term local and foreign currency
deposit ratings.

Headquartered in Riga, Latvia, Trasta Komercbanka reported
consolidated assets of LVL344 million (EUR488 million) at end the
of September 2008.


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


E-MAC DE: Moody's Downgrades Ratings on 17 Classes of Notes
-----------------------------------------------------------
Moody's Investor Service has downgraded 17 classes of notes issued
by E-MAC DE 2005-I B.V., E-MAC DE 2006-I B.V., E-MAC DE 2006-II
B.V. and E-MAC DE 2007-I B.V.  The ratings of all the classes of
notes issued under these transactions remain on review for
possible downgrade.

The downgrades follow the rating review that was initiated on
May 30, 2008. Additionally, on 12 September 2008 some of the
classes of notes issued under each of these four transactions were
downgraded due to worse-than-expected collateral performance.
The rating actions were prompted by the exposure of these
transactions to a potential default to fulfill some of its
obligations by ResCap, which ultimately owns the entities
performing the cash management functions in these transactions.
ResCap's credit worthiness has continued to deteriorate and its
unsecured senior debt rating was downgraded to C with stable
outlook on 20 November 2008.  Yet, at this stage, in all these
transactions, no back-up agreement has been put in place for the
role of issuer administrator, which performs the tasks generally
associated with those of a cash manager.

In the four outstanding transactions of the E-MAC DE series, GMAC-
RFC Investments B.V., an indirect wholly-owned subsidiary of
ResCap, is the appointed servicer (in its role as MPT provider)
and cash manager (in its role as Issuer Administrator).  GMAC-RFC
Investments B.V. sub-delegates the day-to-day servicing of the
loan portfolio to Kreditwerk Hypotheken Management GmbH and part
of the special servicing to Rechtsanwalte Paulus Westerwelle.
GMAC-RFC Investments B.V. does part of the special servicing
itself and both sub-delegates rely on it to make all credit-
related decisions.

In the event GMAC-RFC Investments B.V. became insolvent -- as
there is no back-up cash manager -- the issuer might be unable to
allocate its available funds when payments to the various issuer
counterparties fall due.  This may result in non-payment of
interest on the notes in a timely manner. Given the increased
likelihood of this scenario (linked to the insolvency of ResCap),
Moody's considers that the current risk of a missed payment of
interest is not commensurate with a Aaa-rating and has taken
action on all Class A Notes.  The rating action also considers the
potential increased servicing costs these structures may face in
case of a servicing transfer, affecting all classes of notes.

In addition, in the event a cash manager termination event
occurred shortly before an interest payment date, the issuer would
likely not make its payments under the swaps within the grace
period.  This could, in turn, lead to a termination of the swap
agreements. Any swap termination payment payable by the issuer
would rank senior to noteholders in the waterfall.  The swap
termination could expose the notes to additional interest rate
risks not currently accounted for in Moody's analysis.

Moody's continues to monitor these four transactions and currently
has not fully concluded its rating review.  The continued review
will focus further on the risk of disruptions in transaction
payments due to the potential inability of the cash manager to
fulfill its role and the delegation of certain tasks to the sub-
delegates and special servicer.

Complete list of rating actions:

Issuer: E-MAC DE 2005-I B.V.:

  -- Class A Mortgage-Backed Notes 2005 due 2047, downgraded to
     Aa1 from Aaa, remains on review for possible downgrade;

  -- Class B Mortgage-Backed Notes 2005 due 2052, Current Rating
     Aa2, remains on review for possible downgrade;

  -- Class C Mortgage-Backed Notes 2005 due 2052, Current Rating
     A2, remains on review for possible downgrade;

  -- Class D Mortgage-Backed Notes 2005 due 2052, Current Rating
     Baa3, remains on review for possible downgrade; and

  -- Class E Mortgage-Backed Notes 2005 due 2052, downgraded to B1
     from Ba3, remains on review for possible downgrade.

  - Last rating action: 12. September 2008.

Issuer: E-MAC DE 2006-I B.V.:

  -- Class A Mortgage-Backed Notes 2006 due 2048, downgraded to
     Aa1 from Aaa, remains on review for possible downgrade;

  -- Class B Mortgage-Backed Notes 2006 due 2057, downgraded to
     Aa3 from Aa2, remains on review for possible downgrade;

  -- Class C Mortgage-Backed Notes 2006 due 2057, downgraded to A3
     from A2, remains on review for possible downgrade;

  -- Class D Mortgage-Backed Notes 2006 due 2057, Current Rating
     Baa3, remains on review for possible downgrade;

  -- Class E Mortgage-Backed Notes 2006 due 2057, downgraded to
     Ba3 from Ba2, remains on review for possible downgrade; and

  -- Subordinated Class F Notes 2006 due 2057, Current Rating Ba3,
     remains on review for possible downgrade.

  - Last rating action: 12. September 2008.

Issuer: E-MAC DE 2006-II B.V.:

  -- Class A1 Mortgage-Backed Notes 2006 due 2048, downgraded to
     Aa1 from Aaa, remains on review for possible downgrade;

  -- Class A2 Mortgage-Backed Notes 2006 due 2058, downgraded to
     Aa1 from Aaa, remains on review for possible downgrade;

  -- Class B Mortgage-Backed Notes 2006 due 2058, downgraded to
     Aa3 from Aa2, remains on review for possible downgrade;

  -- Class C Mortgage-Backed Notes 2006 due 2058, downgraded to A3
     from A2, remains on review for possible downgrade;

  -- Class D Mortgage-Backed Notes 2006 due 2058, downgraded to
     Ba1 from Baa3, remains on review for possible downgrade;

  -- Class E Mortgage-Backed Notes 2006 due 2058, downgraded to
     Ba3 from Ba2, remains on review for possible downgrade; and

  -- Class F Notes 2006 due 2058, Current Rating B2, remains on
     review for downgrade.

  - Last rating action: 12. September 2008.

Issuer: E-MAC DE 2007-I B.V.:

  -- Class A1 Mortgage-Backed Notes 2007 due 2054, downgraded to
     Aa1 from Aaa, remains on review for possible downgrade;

  -- Senior Class A2 Mortgage-Backed Notes 2007 due 2054,
     downgraded to Aa1 from Aaa, remains on review for possible
     downgrade;

  -- Class B Mortgage-Backed Notes 2007 due 2054, downgraded to
     Aa2 from Aa1, remains on review for possible downgrade;

  -- Class C Mortgage-Backed Notes 2007 due 2054, downgraded to A2
     from A1, remains on review for possible downgrade;

  -- Class D Mortgage-Backed Notes 2007 due 2054, Current Rating
     Baa2, remains on review for possible downgrade; and

  -- Class E Mortgage-Backed Notes 2007 due 2054, downgraded to
     Ba2 from Ba1, remains on review for possible downgrade.

  -- Last rating action: 12. September 2008.


LYCOS EUROPE: To Liquidate Business; Shareholders to Get EUR50 Mln
------------------------------------------------------------------
PaidContent.org reports that the shareholders of LYCOS Europe
N.V., at an extraordinary general meeting in Amsterdam on Friday,
December 12, voted to liquidate the business, resulting to the
loss of 500 jobs.

The shareholders also approved the sale the company's domain
registration business, shopping portal and Danish Web site as
going concerns, the report relates.

In a press statement on Friday the company said that at the
extraordinary general meeting, 74.39% of the 311,576,344 ordinary
voting shares were represented.

The company said all proposed resolutions were adopted with the
required majorities.

                     Capital Repayment

In addition to the new strategy for the business units the general
meeting approved a capital repayment of EUR50,000,000
(or EUR 0.1605 per share) to be charged to the premium reserve as
well as the proposed amendment of the articles of association.
The capital repayment is expected to be made payable on December
19, 2008.

                 Strategic Review Process

As reported in the TCR-Europe, LYCOS in a December 2 press
statement announced the results of its strategic review process.

LYCOS and its advisors have evaluated the different available
options including the sale of the company as a whole, a sale of
all or parts of the assets of LYCOS, and restructuring and partial
liquidation of the business.

As a result of this strategic review process the Management Board
and the Supervisory Board of LYCOS came to the conclusion that the
best available option of the company is to:

    (i) strive for a sale of its domains, Danish portal and
  shopping activities and

   (ii) to discontinue the portal and Web hosting activities

On December 5, 2008, the TCR-Europe reported that according to
vnunet.com, the company decided to put its European portal and web
hosting business into liquidation as its restructuring evaluation
concluded it will be very difficult for
the business to become profitable.

LYCOS, vnunet.com noted, expects its consolidated losses to
decrease substantially following the liquidation.

LYCOS, ITProPortal.com recalled, failed to find an investor in the
current frosty economic environment.  It also faced some fierce
competition in Internet search domain from the likes of Google and
Yahoo, ITProPortal.com added.

In the first three quarters, the company, ITProPortal.com
disclosed, incurred a massive net loss of EUR17.1 million on total
sales of EUR46.9 million.

                      About LYCOS Europe N.V.

Headquartered in Haarlem, the Netherlands -- LYCOS Europe N.V. --
http://www.lycos-europe.com-- is a portal provider and online
advertiser.  The company has four business units: Communication
and Communities, Portal and Search, Webhosting and Domain Names,
and Shopping.  It operates through its wholly owned subsidiaries
in the United Kingdom, Sweden, Germany, Denmark, the United
States, Armenia, Spain, the Netherlands, France, and Italy.


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


ALMAZ 2000 LLC: Creditors Must File Claims by January 5
-------------------------------------------------------
Creditors of LLC Almaz 2000 (Timber) have until Jan. 5, 2009, to
submit proofs of claims to:

         I. Dolgikh
         Insolvency Manager
         Post user Box 3034
         670024 Ulan-Ude
         Buryatia
         Russia

The Arbitration Court of Buryatia commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A10–1812/07.

The Debtor can be reached at:

         LLC Almaz 2000
         Zherdeva Str. 10a
         670042 Ulan-Ude
         Buryatia
         Russia


BARITE LLC: Creditors Must File Claims by January 5
---------------------------------------------------
Creditors of LLC Barite have until Jan. 5, 2009, to submit proofs
of claims to:

         A. Maltsev
         Insolvency Manager
         Kolkhoznaya Str. 45/36
         Abakan
         Khakasiya
         Russia

The Arbitration Court of Khakasiya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A74–2303/2008.

The Debtor can be reached at:

         LLC Barite
         Bazarnaya Str. 16a
         Chernogorsk
         Khakasiya
         Russia


INDUSRIAL MACHINERY: Creditors Must File Claims by January 5
------------------------------------------------------------
Creditors of LLC Industrial Machinery Science and Production
Enterprise have until Jan. 5, 2009, to submit proofs of claims to:

         S. Bocharova
         Insolvency Manager
         Post User Box 133
         630049 Novosibirsk
         Russia

The Arbitration Court of Tomsk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A67–845/08.

The Debtor can be reached at:

         LLC Industrial Machinery Science and
         Production Enterprise
         Bolnichnaya Str. 8
         Tomsk
         Russia


PANASS-OIL LLC: Creditor Must File Claims by January 5
------------------------------------------------------
Creditors of LLC Panass-Oil have until Jan. 5, 2009, to submit
proofs of claims to:

         V. Dmitriyev
         Temporary Insolvency Manager
         Post User Box 2004
         Central Post Office
         650000 Kemerovo
         Russia

The Arbitration Court of Tumen will convene at 9:15 a.m. on
Mar. 12, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. A70–6124/3–2008.

The Debtor can be reached at:

         LLC Panass-Oil
         Respubliki Str. 160
         625035 Tumen
         Russia


PCB TECHNOLOGIES: Novosibirsk Bankruptcy Hearing Set March 25
-------------------------------------------------------------
The Arbitration Court of Novosibirsk will convene at 3:30 p.m.
on Mar. 25, 2009, to hear bankruptcy supervision procedure on LLC
PCB Technologies.  The case is docketed under Case No. A 45–
17828/2008–55/13.

The Court is located at:

         The Arbitration Court of Novosibirsk
         Nizhegorodskaya Str. 6
         630102 Novosibirsk
         Russia


The Temporary Insolvency Manager is:

         O. Sysoyeva
         Sovetskaya Str. 10/46
         630099 Novosibirsk
         Russia

The Debtor can be reached at:

         LLC PCB Technologies
         Dachnaya Str. 60
         630082 Novosibirsk
         Russia


POLIKOM LLC: Creditors Must File Claims by January 5
----------------------------------------------------
Creditors of LLC Polikom Timber Company (TIN 110104817) have
until Jan. 5, 2009, to submit proofs of claims to:

         N. Vasilenko
         Temporary Insolvency Manager
         K. Maksa Str 38/21
         603159 Nizhniy Novgorod
         Russia

The Arbitration Court of Komi commenced bankruptcy supervision
procedure.  The case is docketed under Case No. A29–3920/2008.

The Debtor can be reached at:

         LLC Polikom
         Ordzhonikidze Str. 16
         Syktyvkar
         Komi
         Russia


SIB-ZOLOTO-RAZVEDKA OJSC: Creditors Must File Claims by Feb. 5
--------------------------------------------------------------
Creditors of OJSC Sib-Zoloto-Razvedka Integrated Geological
Research Expedition have until Feb.5, 2009, to submit proofs of
claims to:

         V. Yumanov
         Temporary Insolvency Manager
         Post User Box 11940
         660028 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarskiy commenced bankruptcy
supervision procedure.  The case is docketed under Case No. A33–
10656/2008.

The Debtor can be reached at:

         OJSC Sib-Zoloto-Razvedka
         Krasnoy Gvardii Str. 24
         660075 Krasnoyarsk
         Russia


STROY-KOMPLEKT PLANT LLC: Creditors Must File Claims by Feb. 5
--------------------------------------------------------------
Creditors of LLC Stroy-Komplekt Plant (TIN 1327157058, RVC
132701001) (Construction) have until Jan. 5, 2009, to submit
proofs of claims to:

         S. Bolzin
         Insolvency Manager
         Ilinka Str. 5/2
         Moscow
         Russia

The Arbitration Court of Mordovia commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A39–2387/2008–96/7.

The Debtor can be reached at:

         LLC Stroy-Komplekt Plant
         Lyambirskoe Shosse 5
         Saransk
         Mordovia
         Russia


STROY-TEKH-GRUP LLC: Court Names Insolvency Manager
---------------------------------------------------
The Arbitration Court of Tumen appointed V. Dmitriyev as
Insolvency Manager for LLC Stroy-Tekh-Grup (Construction).  The
case is docketed under Case No. A70–7339/3–2007.  He can be
reached at:

         Post User Box 2004
         Central Post Office
         650000 Kemerovo
         Russia

The Debtor can be reached at:

         LLC Stroy-Tekh-Grup
         Tsiolkovskogo Str. 15/3
         625002 Tumen
         Russia


YUG-STROY LLC: Rostovskaya Bankruptcy Hearing Set January 28
------------------------------------------------------------
The Arbitration Court of Rostovskaya will convene at 10:00 a.m.
on Jan. 28, 2009, to hear bankruptcy supervision procedure on LLC
Yug-Stroy (TIN 6163059202) (Construction).  The case is docketed
under Case No. A53–11674/08-S1–30.

The Temporary Insolvency Manager is:

         S. Fedorenko
         Teatralny Prospect 63
         344022 Rostv-on-Don
         Russia

The Debtor can be reached at:

         LLC Yug-Stroy
         Prospect Koroleva 16b
         Rostov-on-Don
         Russia


* Moody's Changes Outlook on Eight Russian Banks to Stable
----------------------------------------------------------
Moody's Investors Service has changed the outlook on the Baa1
long-term foreign currency deposit ratings of eight Russian banks
and the A2 senior unsecured foreign currency debt ratings of three
Russian banks to stable from positive.  All other ratings and
existing outlooks of the banks have been affirmed.

These rating actions have been triggered by the change in outlook
on key Russian sovereign ratings to stable from positive.  The
outlook change affected Russia's Baa1 country ceiling for foreign
currency deposits, the A2 country ceiling for foreign currency
bonds and the Russian Federation's Baa1 local and foreign currency
bond ratings.  The A1 country ceilings for local currency bonds
and deposits were affirmed with a stable outlook.  The sovereign
rating actions primarily reflect the heightened pressure that has
been exerted upon Russia's external liquidity position as the
global credit crisis has deepened and, more importantly, the
equivocal policy response that such pressures have triggered.

Accordingly, for these eight banks whose Baa1 foreign currency
deposit ratings remain constrained by the Baa1 ceiling for foreign
currency deposits, the outlook on these ratings was changed to
stable from positive, in line with the outlook change on this
ceiling:

  - Sberbank: BFSR D+, LC deposit rating A1, FC deposit rating
    Baa1, senior unsecured debt rating A2

  - Bank VTB, JSC: BFSR D-, LC deposit rating A1, FC deposit
    rating Baa1, senior unsecured debt rating A2

  - Bank VTB North-West: BFSR D-, LC deposit rating A2, FC deposit
    rating Baa1

  - VTB24: BFSR D-, LC deposit rating A1, FC deposit rating Baa1,
    senior unsecured debt rating A2

  - Russian Agricultural Bank BFSR E+, LC deposit rating A3, FC
    deposit rating Baa1, senior unsecured debt rating A3

  - Vnesheconombank BFSR E+, LC deposit rating A3, FC deposit
    rating Baa1

  - Gazprombank BFSR D-, LC deposit rating A3, FC deposit rating
    Baa1, senior unsecured debt rating A3

  - Bank of Moscow BFSR D, LC deposit rating A3, FC deposit rating
    Baa1, senior unsecured debt rating A3

In addition, the outlook on the A2 long-term senior unsecured
foreign currency debt ratings of these banks was changed to stable
from positive, following the similar rating action on Russia's A2
country ceiling for foreign currency bonds:

  - Bank VTB
  - Bank VTB 24
  - Sberbank


===============
S L O V A K I A
===============


SLOVENSKA SPORITELNA: Moody's Says 'C-' BSFR Not Affected
---------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the A1 long-term local and foreign currency deposit
ratings of Slovenska sporitelna (Slovakia) and the A2/Prime-1
local currency deposit ratings of Erste Bank Hungary.  The rating
actions follow Moody's decision to place on review for possible
downgrade the ratings of their parent bank, Austria's Erste Group
Bank AG (rated Aa3/Prime-1/C).  The ratings of the Erste Group
Bank's other rated subsidiaries -- Ceska sporitelna (Czech
Republic, rated Aa3/P-1/C) and Banca Comerciala Romana (Romania,
rated Baa1/P-2/D) -- were not affected by the rating action on the
parent.

"The deposit ratings of Slovenska sporitelna and Erste Bank
Hungary benefit from substantial uplift from their baseline credit
assessments due to Moody's assessment of the probability of
parental and systemic support.  However, a possible downgrade of
the parent's BFSR would also reflect its weaker ability to support
its subsidiaries and therefore might result in a rating downgrade
of Slovenska sporitelna and Erste Bank Hungary," says Gabriel
Kadasi, Analyst in Moody's Financial Institutions Group.

These ratings of Slovenska sporitelna were not affected by the
rating action on the parent: bank financial strength rating of C-
and short-term local and foreign currency deposit ratings of
Prime-1.  Neither were affected these ratings of Erste Bank
Hungary: bank financial strength rating of D+ and foreign currency
deposit ratings of A3 (negative)/Prime-2.

The last rating action on Slovenska sporitelna was implemented on
20 April 2007 when Moody's assigned local currency bank deposit
ratings of A1/Prime-1 and upgraded its long-term foreign currency
deposit ratings to A1 from A2.

The last rating action on Erste Bank Hungary was implemented on 07
November 2008, when Moody's changed the bank's foreign currency
deposit ratings to A3 (negative)/Prime-2 from A2 (stable)/Prime-1
following a downgrade of Hungary's ceiling for foreign currency
deposits.

Headquartered in Bratislava, Slovakia, Slovenska sporitelna
reported IFRS consolidated net income of EUR77.8 million in H1
2008 and total assets EUR10.8 billion at the end of H1 2008.
Headquartered in Budapest, Hungary, Erste Bank Hungary reported
IFRS consolidated net income of EUR97.8 in 2007 and total assets
of EUR8.25 billion at the end of 2007.


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


SANTANDER HIPOTECARIO: Moody's Cuts Rating on Cl. F Notes to Ca
---------------------------------------------------------------
Moody's Investors Service has taken these rating action on the
Notes issued by Santander Hipotecario 2, FTA:

  - Class A, Current Rating: Aaa, downgraded to Aa1;

  - Class B, Current Rating: Aa2, downgraded to Aa3;

  - Class C, Current Rating: A2, downgraded toA3;

  - Class D, Current Rating: Baa2, downgraded to Ba1;

  - Class E, Current Rating: Ba3, downgraded to B3; and

  - Class F, Current Rating: Caa2, downgraded to Ca.

  - Last rating action date for Santander Hipotecario 2, FTA: 23
    July 2008.

For this review, "Moody's Updated Methodology for Rating Spanish
RMBS" was used.  As explained in the press release issued on July
2008 in relation to the methodology update, the refinements to
Moody's Spanish MILAN model result in higher credit enhancement
levels for Spanish RMBS pools, especially those with riskier
features, such as higher loan-to-value ratios and higher-risk
products.  Santander Hipotecario 2, FTA was one of the deals
flagged by Moody's as having such features.  All Classes of Notes
were placed on review for possible downgrade on 23 July 2008.  The
actions conclude a detailed review of the transaction.

Santander Hipotecario 2, FTA closed in June 2006.  In this
transaction, the originator (Banco Santander S.A., Aa1/P-1)
securitised a portfolio of 13,384 first ranking mortgage loans
secured on residential properties located in Spain, for an overall
amount of EUR 1.96 billion.  The collateral consisted of loans
with a loan-to-value over 80%.  These high LTV loans represented
62.6% of the outstanding pool balance as of October 2008 reporting
date.

This transaction includes an interest rate swap to hedge interest
rate risk in the transaction, securing weighted average interest
rate on the notes plus 0.65% excess spread and covering the
servicing fee in case Banco Santander S.A. is replaced as
servicer.

The portfolio is showing worse-than-expected collateral
performance leading to above market average delinquencies.  After
27 months since issuance, corresponding to October 2008 reporting
date, the aggregate of (1) acquisitions, (2) net losses in
relation to acquisitions (corresponding to the difference between
outstanding debt and acquisition amount), and (3) defaulted loans
(these being defined as 18 months in arrears) are equal to 0.66%
of the original pool balance, and the 90+ arrears (excluding
outstanding defaults) correspond to approximately 2.18% of the
current pool balance.

The reserve fund has not been at target level for the last two
periods following the insufficient excess spread to cover
artificial write-off of (1) loans more than 18 months delinquent
and (2) acquisitions.  This typical Spanish RMBS mechanism speeds
up the off-balance sheet treatment of a non-performing loan
compared to waiting for the "natural write-off"; thus, the amount
of notes collateralized by non-performing loans is minimized, and,
consequently, the negative carry.

During the last two quarters excess spread has not been sufficient
to provision for artificial write-offs, resulting in drawings of
the reserve fund which currently stands at 81.51% of target level.
Moody's expects that available funds will increase as recoveries
from written-off loans are collected.  Following an updated loan-
by-loan analysis, and on the basis of the performance experienced
by the portfolio so far, Moody's has updated the portfolio's
expected loss assumption modeled from a range of 0.98%-1.18% to
1.90%-2.10% (as a percentage of original pool balance).  Moody's
further raised its credit support expectations for the rating
levels assigned.

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

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


TDA PASTOR: Moody's Downgrades Ratings on Series C Notes to 'B3'
----------------------------------------------------------------
Moody's Investors Service has downgraded the notes issued by TDA
Pastor Consumo 1, Fondo de Titulización de Activos:

  -- Series A notes, Current Rating: Aaa, downgraded to Aa2;

  -- Series B notes, Current Rating: A1, downgraded to Baa2;

  -- Series C notes, Current Rating: Baa3, downgraded to B3.

  -- Date of Last Rating Action: April 2007 - no action since
     closing.

The rating action was prompted by the worse-than-expected
portfolio performance and the expectation of a less favorable
macro economic environment in Spain.  The rating action takes into
account Moody's revised assumptions for the mean default rate,
standard deviation and recovery rate.  TDA Pastor Consumo 1, FTA
is the first consumer loan-backed securitization transaction
carried out by Banco Pastor, S.A. (A2/P-1/C).

In October, the Issuer reported the early termination of the
revolving period.  This event was triggered by the fact that the
principal outstanding balance of delinquent loans for more than 90
days reached 2.45%, exceeding the trigger level set at 2.25%.  The
regular amortization was expected to start in April 2009.  As of
28 October 2008, the cumulative amount of written-off loans
remained small due to the limited seasoning of the transaction at
0.14% of the original portfolio balance.  The reserve fund was
fully funded.  A loan is written-off once it has been more than 18
months delinquent or loans which are considered not collectible.

Moody's rating action is primarily based on the information made
available through investor reports.  Taking into account the
current amount of 90+ days delinquencies and completing a roll-
rate and severity analysis for the non-delinquent portion of the
portfolio, Moody's has adjusted its initial default rate
expectations to 5.4% of original balance and standard deviation of
1.62%.  This compares to a 2.5% mean default and 0.75% standard
deviation at closing.  Moody's has also lowered its expected
recovery rate on defaulted loans to 30% from 35% at closing.  The
constant prepayment rate assumed in the cash flow model was
reduced to 10%.  Additionally, Moody's has lowered its assumption
relating to the excess spread available to cover losses, as a
result of the higher than originally expected total delinquencies
level.

Indeed, in this transaction, the excess spread is provided through
the swap between the Issuer and the swap counterparty (Banco
Pastor).  Under the swap agreement, the Issuer pays to the swap
counterparty the interest received from the portfolio of loans
since the previous payment date, whereas the Swap counterparty
pays to the Issuer the sum of the weighted average coupon on the
notes plus 250 bppa over a notional calculated as the daily
average of the outstanding amount of non delinquent loans (more
than 1 day in arrears) since the last payment date.  The available
excess spread is therefore very sensitive to the total arrears
level reported.  Should the total arrears reported increase
significantly, the level of excess spread would be negatively
impacted which may result in further pressure on the rating of the
Notes.

In Moody's opinion, the revised assumptions are in line with the
expected performance of the portfolio.

The ratings address the expected loss posed to investors by the
legal final maturity (28 January 2021).  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.


VALENCIA HIPOTECARIO: Moody's Puts (P)Ba3 Rating on Series C Notes
------------------------------------------------------------------
Moody's Investors Service has assigned provisional credit ratings
to three series of "Bonos de Titulización de Activos" issued by
VALENCIA HIPOTECARIO 5 Fondo de Titulización de Activos, a Spanish
Asset Securitisation Fund that has been created by Europea de
Titulización, S.G.F.T, S.A.. Moody's has assigned these
provisional ratings:

  -- (P)Aaa to the EUR468 million Series A notes
  -- (P) Aa1 to the EUR5 million Series B notes
  -- (P)Ba3 to the EUR27 million Series C notes

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

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

Moody's initially analyzed and monitors this transaction using the
rating methodology for EMEA RMBS transactions as described in the
Rating Methodology reports.

The key parameters used by Moody's to calibrate the loss
distribution curve are a Milan Aaa CE range of 8.50 - 8.70% and an
Expected Loss range of 2.65 - 2.85%.

Moody's based its rating on (1) a evaluation of the underlying
portfolio of mortgage loans securing the structure, and on (2) the
transaction's structural protections which include the subordinate
position of the Series B and C Subordinate notes with respect to
the Series A notes, the strength of the cash flows, which include
the reserve fund and any excess spread available to cover losses.
Moody's issues provisional ratings in advance of the final sale of
securities and these ratings represent Moody's preliminary
opinion.  Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavour to assign
definitive rating to the Notes.  A definitive rating may differ
from a provisional rating.

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


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


FORD MOTOR: Fitch Puts Issuer Default Ratings on Negative Watch
---------------------------------------------------------------
Fitch Ratings has placed the Issuer Default Ratings of the U.S.
auto suppliers listed below on Rating Watch Negative, based on the
impact of a potential bankruptcy filing by General Motors (and
Fitch's view that this would be followed by a bankruptcy at Ford).
Given its smaller profile, it is unlikely that a bankruptcy filing
by Chrysler would have the same impact.  Industry bankruptcies
could result from either the failure of the auto legislation
currently under consideration in the U.S. Congress, or the failure
of the Detroit Three to develop viable restructuring plans in the
several months prior to the expiration of the bridge loans
included in the current legislation.

In 2009, auto suppliers are already facing a steep global downturn
in auto production, including a deeply depressed production
forecast in the U.S. and Europe.  In the event of a General Motors
bankruptcy, Fitch believes that the resulting contraction in auto
production, the supply chain, trade credit and capital-access
would cause widespread shutdowns and bankruptcies throughout the
supply chain.  Given the cliff-risk nature of the risks involved,
Fitch has tried to detail below the extent of the potential rating
actions that would be taken in the event of a GM bankruptcy.  In
any event, Fitch will continue to take individual rating actions
in the sector as events unfold over the next several weeks and
months.  Fitch notes that even if the OEMs avoid bankruptcy, major
restructurings of their operations will occur, causing material
changes in the operations of their Tier I suppliers.  These
restructurings could also lead to ratings actions, providing
further rationale for placing these suppliers on Rating Watch
Negative.

The auto suppliers placed or remain on Rating Watch Negative and
the ratings most likely to result in the event of a GM bankruptcy
are:

   Companies Current IDR/Prospective IDR

    -- American Axle 'B'/'CC';
    -- ArvinMeritor 'B'/CCC';
    -- Hayes-Lemmerz 'B'/CCC';
    -- Johnson Controls 'A-'/'BBB+';
    -- Tenneco 'BB-/B-';
    -- TRW 'BB'/'B-';
    -- Visteon 'CCC'/'CC'
    -- Companies not included in the rating actions:
    -- Cummins 'BBB+';
    -- Goodyear 'BB-';
    -- Navistar 'BB-'

Despite improved diversification by most Tier 1 suppliers, across
manufacturers, geographies and product lines, the decline in
supplier revenues and operating cash flow through 2009 resulting
from a GM bankruptcy would likely produce covenant violations
across the vast majority of suppliers.  Of equal concern, Tier 2
and three suppliers are likely to experience widespread
bankruptcies through loss of volume, lack of receivables
financing, and restricted financial and trade credit.  Fitch
expects that a collapse of trade credit throughout the supply
chain would put at risk the domestic operations of these
suppliers, as well as their financial viability.  TRW and Tenneco
remain better positioned given their global operations, but Fitch
expects that these two companies, at a minimum, would require
renegotiations with their bank group.

Ratings on Rating Watch Negative are:

American Axle & Manufacturing Holdings, Inc.

-- IDR 'B';

American Axle & Manufacturing, Inc

-- IDR 'B';

ArvinMeritor

-- IDR 'B';
-- Secured 'BB';
-- Senior unsecured 'B/RR4'.

Hayes-Lemmerz International, Inc

-- IDR 'B'.

Hayes-Lemmerz Finance Luxembourg S.A

-- IDR 'B';
-- Senior unsecured 'B-/RR5';
-- Senior secured 'BB/RR1'.

HLI Operating Company Inc.

-- IDR 'B';
-- Senior secured 'BB/RR1'.

Johnson Controls

-- IDR 'A-'.

York International

-- IDR 'A-'.

Tenneco

-- IDR 'BB-';
-- Senior unsecured 'BB-';
-- Subordinated 'B';
-- Senior secured notes 'BB';
-- Senior secured credit facilities 'BB+'.

TRW Automotive Holdings Corp

-- IDR 'BB'.

TRW Automotive, Inc

-- IDR 'BB';
-- Secured 'BB+';
-- Senior unsecured 'BB-'.

Visteon Corp

-- IDR 'CCC';
-- Senior secured 'B/RR1';
-- senior unsecured 'CC/RR6'.


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


BOSSHARDT BAU: Creditors Must File Proofs of Claim by Jan. 20
-------------------------------------------------------------
Creditors owed money by LLC Bosshardt Bau are requested to file
their proofs of claim by Jan. 20, 2009, to:

         Urs Bosshardt
         Alte Bergstrasse 4
         Kindhausen
         8604 Volketswil
         Switzerland

The company is currently undergoing liquidation in Uster.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 26, 2008.


GENERAL MOTORS: May Lose 40% of Dealers If GMAC Goes Bankrupt
-------------------------------------------------------------
A bankruptcy filing by GMAC LLC may cause General Motors Corp. to
lose as many as 40% of its 6,500 U.S. dealerships, Greg Bensinger
at Bloomberg News reports, citing a retailer for GM.

Bloomberg relates that GMAC is GM dealers' largest source of
financing for purchasing vehicles, representing about 75% of U.S.
inventory.  The report says that tighter GMAC loan rules
discouraged about 40% of potential buyers, helping drag GM sales
to a 22% decline this year.

Bloomberg quoted Martin NeSmith, a liaison to the lender as a
member of GM's National Dealer Council, as saying, "There's so
many dealers on the edge, if GMAC goes out of business 30 to 40
percent of dealers won't be able to get financing from anywhere
else.  They'll go out of business."

As reported by the Troubled Company Reporter on Dec. 11, 2008,
GMAC Financial Services threatened bondholders that it would
abandon its effort to become a bank holding company if it doesn't
get the required support from them.  GMAC failed to lure enough
bondholders to US$38 billion debt exchange offer and so the
company
failed to raise enough capital for it to become a bank holding
company.  GMAC must raise US$2 billion of new capital and have at
least US$30 billion in total regulatory capital.  By becoming a
bank, GMAC will be able to access the Treasury's US$700 billion
rescue fund.  It will also allow GMAC to sell bonds backed by the
Federal Deposit Insurance Corp., giving it new funding.  GMAC was
shut out of the public market for bonds backed by auto loans for
the past six months.  GMAC asked bondholders in November to tender
their securities for at least 55 cents in cash or a combination of
new notes and preferred stock, which would count as regulatory
capital.  GMAC's debt exchange offer is extended to GMAC and
Residential Capital LLC investors.  GMAC extended for the third
time the delivery deadline for debt holders to Dec. 12.

Aparajita Saha-Bubna and Liz Rappaport at The Wall Street Journal
report that some bondholders said that the plan doesn't ask enough
sacrifice from GMAC's owners -- GM and an investor group led by
Cerberus Capital Management LP.  According to the report, the
bondholders want equity holders to put in their share of new
capital.

According to WSJ, the proposed debt exchange is necessary to GMAC,
which may face bankruptcy protection if it isn't completed.

                     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.


HANS GLAUSER: Deadline to File Proofs of Claim Set Jan. 31
----------------------------------------------------------
Creditors owed money by LLC Hans Glauser Carrosserie are requested
to file their proofs of claim by Jan. 31, 2009, to:

         Fluckiger & Bartschi
         Markus Bartschi
         Thunstrasse 68
         3074 Muri b. Bern
         Switzerland

The company is currently undergoing liquidation in Muri bei Bern.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 10, 2008.


ICELANDIC WATER: Creditors Have Until Jan. 31 to File Claims
------------------------------------------------------------
Creditors owed money by LLC Icelandic Water are requested to file
their proofs of claim by Jan. 31, 2009, to:

         Weidmann & Rudolf
         Bundesplatz 16
         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. 15, 2008.


KARAT UNTERNEHMENSBERATUNG: Claims Filing Deadline is Jan. 1
------------------------------------------------------------
Creditors owed money by JSC Karat Unternehmensberatung are
requested to file their proofs of claim by Jan. 1, 2009, to:

         JSC Steiger Engineering
         Rotfluhstrasse 50
         8702 Zollikon
         Switzerland

The company is currently undergoing liquidation in Zollikon.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 17, 2008.


RUEGG TRANSPORTE: Creditors' Proofs of Claim Due by Feb. 17
-----------------------------------------------------------
Creditors owed money by LLC Josef Ruegg Transporte are requested
to file their proofs of claim by Feb. 17, 2009, to:

         P. Fuchs
         Liquidator
         Wettenschwilerstrasse 7
         8645 Jona
         Switzerland

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


SEALED SOLUTIONS: Feb. 17 Set as Deadline to File Claims
--------------------------------------------------------
Creditors owed money by JSC sealed solutions are requested to file
their proofs of claim by Feb. 5, 2009, to:

         Bruno K. Hofstetter
         Management & Security Consulting
         Lisiloostrasse 19
         8215 Hallau
         Switzerland

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


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


BOLAS LLC: Creditors Must File Claims by December 28
----------------------------------------------------
Creditors of LLC Bolas (EDRPOU 23271345) have until
Dec. 28, 2008, to submit proofs of claim to:

         Mr. Andrew Sibal
         Liquidator
         Sadovaya Str. 27/119
         79000 Lvov
         Ukraine

The Arbitration Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 21, 2008.
The case is docketed as 8/90.

         The Economic Court of Lvov
         Lichakivska Str. 128
         79010 Lvov
         Ukraine

The Debtor can be reached at:

         LLC Bolas
         Bortniansky Str. 55/3
         79039 Lvov
         Ukraine


KREK LLC: Creditors Must File Claims by December 28
---------------------------------------------------
Creditors of LLC Krek (EDRPOU 19335312) have until Dec. 28, 2008,
to submit proofs of claim to:

         Mr. Andrew Nadlonok
         Liquidator
         Zubrovskaya Str. 25a/33
         79000 Lvov
         Ukraine

The Arbitration Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 21, 2008.
The case is docketed as 8/89.

         The Economic Court of Lvov
         Lichakivska Str. 128
         79010 Lvov
         Ukraine

The Debtor can be reached at:

         LLC Krek
         Koniushynnaya Str. 7
         79040 Lvov
         Ukraine


ECOMEBLIS LLC: Creditors Must File Claims by December 27
--------------------------------------------------------
Creditors of LLC Ecomeblis (EDRPOU 34445392) have until
Dec. 27, 2008, to submit proofs of claim to:

         Mrs. Svetlana Safronova
         Liquidator
         Apt. 1
         Richelieu Str. 74
         Odessa
         Ukraine

The Arbitration Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 7/196-08-3365.

         The Economic Court of Odessa
         Shevchenko Avenue 29
         65032 Odessa
         Ukraine

The Debtor can be reached at:

         LLC Ecomeblis
         Apt. 72
         B. 6
         Ac. Korolev Str. 81
         Odessa
         Ukraine


ENERGY RESOURCE: Creditors Must File Claims by December 27
----------------------------------------------------------
Creditors of LLC Energy Resource (EDRPOU 20345132) have until
Dec. 27, 2008, to submit proofs of claim to:

         Mr. A. Kozhukhar
         Liquidator/Insolvency Manager
         Apt. 21
         Shakespeare Str. 13
         Donetsk
         Ukraine
         Tel: 8(062)348-85-52
              8(062)348-85-53

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 20, 2008.
The case is docketed as 27/63B.

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

The Debtor can be reached at:

         LLC Energy Resource
         Schors Str. 1
         Zhdanovka
         Donetsk
         Ukraine


INTEKS TRADE: Creditors Must File Claims by December 27
-------------------------------------------------------
Creditors of LLC Inteks Trade (EDRPOU 32887266) have until
Dec. 27, 2008, to submit proofs of claim to:

         Mr. I. Chorny
         Liquidator
         P.O.B. 89
         01024 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 20, 2008.
The case is docketed as 24/480-b.

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

The Debtor can be reached at:

         LLC Inteks Trade
         Petrovskaya Str. 15
         04071 Kiev
         Ukraine


PLANT TERMINAL: Creditors Must File Claims by December 27
---------------------------------------------------------
Creditors of OJSC Plant Terminal (EDRPOU 14312660) have until
Dec. 27, 2008, to submit proofs of claim to:

         Mr. Sergey Severin
         Liquidator
         Apt. 709
         Hmelnickiy Highway Str. 2
         21036 Vinnica
         Ukraine
         Tel: 8(0432)520-355

The Arbitration Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 10/1-08.

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

The Debtor can be reached at:

         OJSC Plant Terminal
         600 years Str. 17
         Vinnica
         Ukraine


PROTEX LLC: Creditors Must File Claims by December 27
-----------------------------------------------------
Creditors of LLC Protex (EDRPOU 35264852) have until Dec. 27,
2008, to submit proofs of claim to:

         Private Enterprise Contra
         Liquidator
         Darvin Str. 10
         01103 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 20, 2008.
The case is docketed as 24/474-b.

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

The Debtor can be reached at:

         LLC Protex
         Kikvidze Str. 26
         01103 Kiev
         Ukraine


PROLISOK LLC: Creditors Must File Claims by December 28
-------------------------------------------------------
Creditors of LLC Prolisok (EDRPOU 13833374) have until Dec. 28,
2008, to submit proofs of claim to:

         Mr. Bogdan Sobenko
         Liquidator
         Antonovich Str. 29/12
         79000 Lvov
         Ukraine

The Arbitration Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 21, 2008.
The case is docketed as 8/124.

         The Economic Court of Lvov
         Lichakivska Str. 128
         79010 Lvov
         Ukraine

The Debtor can be reached at:

         LLC Prolisok
         Borislav Str. 1
         Truskavets
         82200 Lvov
         Ukraine


TECHNO ROAD: Creditors Must File Claims by December 27
------------------------------------------------------
Creditors of LLC Science-Production Enterprise Techno Road Project
(EDRPOU 32825916) have until Dec. 27, 2008, to submit proofs of
claim to:

         Mr. Sergey Avilov
         Liquidator
         Apt. 175
         Gagarin Str. 29
         Brovary
         Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 20, 2008.
The case is docketed as 24/472-b.

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

The Debtor can be reached at:

         LLC Science-Production Enterprise
         Techno Road Project
         Novopechersky Lane, 19/3
         01042 Kiev
         Ukraine


TRANS TERRA: Creditors Must File Claims by December 28
------------------------------------------------------
Creditors of LLC Trans Terra (EDRPOU 31731885) have until Dec. 28,
2008, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 20, 2008.
The case is docketed as 24/478-b.


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


BORDER WEAVING: Placed in Administration
----------------------------------------
Border Weaving Company Ltd, based in Selkirk, has been placed in
administration.

The company was launched earlier this year after the owners
acquired Selkirk's oldest mill, Heather Mills, from The Edinburgh
Woollen Mill Group.  Border Weaving Company specializes in
manufacturing high quality textiles mainly for export.

The company employs 31 staff.  The administration has been
principally caused by cash flow problems, a contraction in export
markets and withdrawal of credit insurance.  The Directors have
appointed Kenny Craig and Dilip Dattani of Tenon Recovery as joint
administrators.

Kenny Craig said: "We will complete a number of outstanding orders
while marketing the business for sale as a going concern.  Border
Weaving Company has a good client base, a highly trained,
experienced workforce.  We think that the company could be of
interest to a business already operating in the textile sector and
looking to grow through acquisition, or to an entrepreneur
interested in moving into high value textile manufacturing."

Additionally, the directors of Riverside Spinning Mills, a sister
company of Border Weaving Company, have called a creditors meeting
with a view to appointing liquidators.  The company, which
specializes in the spinning market, has been incurring
considerable losses for some time.  There has been a marked drop
in orders, a cancellation of credit insurance and withdrawal of
working capital.  After exhausting efforts to find a buyer, the
directors now wish to appoint Kenny Craig and Dilip Dattani as
joint liquidators, to undertake an orderly closure of the business
and sale of the assets.  Riverside Spinning Mills employs 21
staff.

                  About Tenon Recovery

Tenon Recovery -- http://www.tenondebtsolutions.co.uk/-- is the
third largest corporate appointment taker in the UK. Specializing
in turnaround, recovery, restructuring and insolvency in both the
corporate and personal sectors, Tenon Recovery is led by 43
directors supported by 350 staff operating from a network of 30
offices across the UK.


BRITISH ENERGY: EDF Increases Stake to 88.67 Percent
----------------------------------------------------
Electricite de France SA has raised its stake in British Energy
Group plc to 88.67% following its public takeover offer, the
Associated Press reported Monday last week.

According to AP, EDF will extend its 774 pence-per-share
(US$11.63) offer for BE until January 5.

The original offer period ended Friday, December 5, AP noted.

Lake Acquisitions, as cited by the Scotsman, said that, by 1:00
p.m. on Friday, December 5, it had received "valid acceptances" in
respect of 644,291,988 British Energy shares – representing 62.19%
of the issued share capital in the firm.

That, combined with its existing 26.48% stake in the British
nuclear power plant operator, took the French energy company's
holding to 88.67%, the Scotsman stated.

                         Takeover Offer

EDF, AP recounted, unveiled its GBP12.5 billion (US$18.7 billion)
cash offer for British Energy in September.

The deal, which won the approval of the French and British
governments, was reached after EdF sweetened a bid that the
British company had turned down in July, AP disclosed.

EdF, AP recalled, offered 774 pence (US$11.63) for every ordinary
share of British Energy - an increase of nine pence per share from
its previous bid in July.

                            About EDF

The EDF Group is an integrated energy company with a presence in a
wide range of electricity related businesses: generation,
transmission, distribution, sale and energy trading.  The EDF
Group is France's historic electricity operator and has a strong
position in the three other main European markets (Germany, the UK
and Italy), making it one of Europe's main electricity concerns as
well as a recognized player in the gas industry. With worldwide
installed power capacity totaling 126.7GW (124.5GW in Europe, 63GW
from nuclear generation) and global generation of 610.6TWh
(418.0TWh from nuclear generation) in 2007, it has the largest
generating capacity of all the major European energy corporations
with the lowest level of carbon dioxide emissions due to the
significant proportion of nuclear and hydroelectric power in its
generation mix.  The EDF Group employs over 158,000 people
worldwide.  The EDF Group supplies gas, electricity and associated
services to more than 38 million customer accounts worldwide
(including more than 28 million in France and 5.5 million in the
UK).

Lake Acquisitions is a wholly-owned subsidiary of EDF established
for the purpose of making the Offers.

                       About British Energy

Headquartered in Livingston, Scotland, British Energy Limited
-- http://www.british-energy.com/--  is the UK's largest
electricity generator, employing over 6,000 people.  The British
Energy Group owns and operates eight nuclear power stations in the
UK: seven of these are Advanced Gas-cooled Reactor (AGR) stations,
located at Dungeness, Hartlepool, Heysham (two stations), Hinkley
Point, Hunterston, Torness and the only civil Pressurised Water
Reactor (PWR) station in the UK, located at Sizewell in Suffolk.
British Energy also owns and operates the Eggborough coal-fired
power station in Yorkshire.  British Energy's total current
capacity is 10.6GW (of which 8.7GW from nuclear generation) with
delivered output of 58.4TWh (of which 50.3TWh comprises nuclear
output) for the year ended March 2008.  British Energy is the
lowest carbon emitter of the UK's major electricity generators.

                          *     *     *

As reported in the TCR-Europe on Sept. 26, 2008, Fitch Ratings
placed British Energy Group plc's and British  Energy Bond Finance
plc's (BEBF, formerly British Energy Holdings
plc) 'BB+' Long-term Issuer Default Ratings on Rating Watch
Positive.  BEBF's amortizing bonds - rated 'BB' - are also put on
RWP.  The rating actions follow the announcement of a proposed
takeover by France's EDF SA ('AA-'/ 'F1+'/Rating Watch Negative).


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

The transaction is a managed synthetic CDO referencing a portfolio
of corporate debt.

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

The rating actions are:

Empyrean Finance (Cayman Islands) Limited:

(1) US$55,000,000 Class B-1U7B Senior Floating Rate Secured
Portfolio Credit-Linked Notes due 2013

  -- Current Rating: Caa2
  -- Prior Rating: A1
  -- Prior Rating Date: 28 March 2007

Empyrean Finance (Ireland) PLC:

(1) US$9,000,000 Class C-1U7B Floating Rate Secured Portfolio
Credit-Linked Notes due 2013

  -- Current Rating: Caa3
  -- Prior Rating: A2
  -- Prior Rating Date: 28 March 2007

(2) USD15,000,000 Class C1-1U7h Floating Rate Secured Portfolio
Credit-linked Notes due 2014

  -- Current Rating: Ca
  -- Prior Rating: A2
  -- Prior Rating Date: 30 July 2007


ENTERTAINMENT UK: Fails to Find Buyer; 700 Jobs Axed
----------------------------------------------------
The joint administrators of Entertainment UK Ltd (EUK), the
wholesale distributor of entertainment products, are to scale down
efforts to sell the business as a going concern, having been
unable to find a buyer.  EUK will continue to operate with a
reduced workforce of 375 employees, while the administrators
continue to realize value from the assets of the business.  As a
result, 700 employees have been made redundant.

Dan Butters, joint administrator and reorganization services
partner at Deloitte, said: "Regrettably, despite our continued
efforts, we have been unable to identify a suitable buyer for the
business.  While we will continue to consider offers for the sale
of the business as a going concern, we will now focus on realizing
value from the company's assets.

"Unfortunately, it has been necessary to make 700 redundancies at
the company's head office and distribution centers in Middlesex.
We will retain a core team of 375 employees."

The administrators are working closely with Job Centre Plus to
provide support and advice to employees who have been made
redundant, and the Insolvency Service's Redundancy Payments
Service has put together a team to quickly approve claims for
employee entitlements.

Mr. Butters added: "We are extremely grateful to the staff and
management for their support throughout this difficult time.  We
would also like to thank the Job Centre and Insolvency Service for
their cooperation and help."

The joint administrators confirmed that Bertrams Books, a fully
owned subsidiary of EUK, and 2Entertain, a joint venture between
EUK and BBC Worldwide, will continue to trade as usual.

Entertainment UK and Woolworths plc were placed into
administration on November 27, 2008.  Dan Butters, Nick Dargan and
Neville Kahn of Deloitte, the business advisory firm, were
appointed as joint administrators.

As reported in the TCR-Europe, the boards of Woolworths plc and
Entertainment UK resolved to file petitions for administration in
the High Court as they have concluded that there is no longer any
prospect of the businesses being able to operate as a going
concern after discussions relating to the potential sale of
Woolworths Group plc's retail business have ended.

                        About Deloitte

Deloitte - http://www.deloitte.com/-- provides audit, consulting,
financial advisory, risk management and tax services to selected
clients.


HAM CONSTRUCTION: Appoints Joint Liquidators from Grant Thornton
----------------------------------------------------------------
Joseph P. McLean and Keith Hinds of Grant Thornton UK LLP were
appointed joint liquidators of Ham COnstruction Ltd. on Nov. 21,
2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through Grant Thornton UK LLP at:

         No. 1 Whitehall Riverside
         Leeds
         LS1 4BN
         England


HAM HOLDINGS: Names Joint Liquidators from Grant Thornton
---------------------------------------------------------
Joseph P. McLean and Keith Hinds of Grant Thornton UK LLP were
appointed joint liquidators of Ham Holdings on Nov. 21, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached through Grant Thornton UK LLP at:

         No. 1 Whitehall Riverside
         Leeds
         LS1 4BN
         England


INEOS GROUP: Moody's Confirms 'B3' Corporate Family Ratings
-----------------------------------------------------------
Moody's Investors Service has confirmed and assigned a negative
outlook to the B3 Corporate Family Rating of Ineos Group Holdings
plc and all ratings of its subsidiaries.  The rating action
follows the Company's announcement that it has received a waiver
of some of the covenants until 31 May 2009.  Moody's notes that
the Company undertook to comply with an amended leverage covenant
at the end of 2008 (of Total Net Debt/Adjusted EBITDA of not
higher than x5.25) and provide an updated business plan to the
lenders, which in Moody's view could become the basis for the
review of the covenant package in 2009.

The negative outlook reflects Moody's expectation of the
challenging operating environment that will continue to affect the
company's credit profile in the medium term.  Taking into account
the reduction in fixed costs executed by the group in anticipation
of the current downturn in the cycle, Ineos is expected to remain
cash flow generative and continue to manage its liquidity
proactively.  In Moody's view, the size of the liabilities and the
restrictive covenants under the senior secured facilities remain
the major factors determining the credit profile at this stage.

The negative outlook reflects the likely need to review the
existing covenant package at the beginning of 2009, the
uncertainty associated with the terms and conditions of such a
review, as well as the need to strengthen the balance sheet of the
group to ensure continuous compliance with the terms of the
facilities in the downturn period.

This action concludes the review of the ratings initiated on 18
November 2008.

These ratings are affected by the rating action:

Ineos Group Holdings plc:

  - Corporate Family Rating: B3

  - EUR1,750 m and US$750 m 2016 senior g-teed notes - Caa2 / LGD
    5 (89);

Ineos Holding Limited

  - EUR4,310 m and USD1,930 m first-lien senior g-teed bank
    facilities - B2/ LGD 3 (34);

  - EUR650 m second lien senior loans - Caa2 / LGD 5 (79);

Ineos Vinyls Finance plc

  - EUR160 m senior g-teed notes - Caa2 / LGD 6 (96).

Ineos Group Holdings plc is a diversified and integrated chemicals
group headquartered in Southampton, the United Kingdom.  Ineos
reported 2007 Revenues of EUR27.5 billion and EBIT of
EUR1.2 billion.


IONA CDO: Moody's Downgrades Ratings on Three Note Classes
----------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of three classes of notes issued by Iona CDO I Limited, and left
two of those classes on review for further possible downgrade.

The transaction is a managed synthetic CDO referencing, among
other assets subprime RMBS and ABS CDOs of the 2004, 2005 and 2006
vintages.  The rating actions are a response to credit
deterioration in the underlying portfolio due, in a significant
proportion, to expectations of increased losses in the underlying
RMBS and ABS CDO assets A significant proportion of the assets are
now rated sub-investment grade.

Moody's announced on September 18, 2008 that it is revising its
expected loss assumptions of subprime and prime RMBS, specifically
of the second half 2005 -- first half 2007 vintages.  Moody's
stated that for purposes of monitoring its ratings of ABS CDOs
with exposure to second half 2005 -- first half 2007 subprime
RMBS, it will rely on certain projections of the lifetime average
cumulative losses for vintages of RMBS set forth in a recent
Moody's Special Report.

Moody's also announced in a press release on November 17, 2008
that it is revising its expectations of lifetime losses on pools
backing US Alt-A residential mortgage-backed securities issued in
2006 and 2007.  Moody's explained that it will utilise these
revised loss projections when monitoring ABS CDO ratings.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for ABS CDOs as described in Moody's Special Reports below:

  -- Moody's Approach to Rating Multisector CDOs (September 2000)

  -- Moody's Approach To Rating Synthetic Resecuritizations
     (October 2003)

  -- Moody's Revisits its Assumptions Regarding Structured Finance
     Default (and Asset) Correlations for CDOs (June 2005)

  -- Moody's Modeling Approach to Rating Structured Finance Cash
     Flow CDO Transactions (September 2005)

The rating actions are:

Iona CDO I Limited:

(1) US$78,000,000 Class A Secured Floating Rate Credit-Linked
Notes due 2049

  -- Current Rating: Ba2, on review for possible downgrade
  -- Prior Rating: Aaa
  -- Prior Rating Action Date: 25 August 2004

(2) US$40,500,000 Class B Secured Floating Rate Credit-Linked
Notes due 2049

  -- Current Rating: Caa3, on review for possible downgrade
  -- Prior Rating: Aa2
  -- Prior Rating Action Date: 25 August 2004

(3) US$18,000,000 Class C Deferrable Interest Secured Floating
Rate Credit-Linked Notes due 2049

  -- Current Rating: Ca
  -- Prior Rating: Baa2
  -- Prior Rating Action Date: 25 August 2004


J. & H. COHEN: Taps Joint Liquidators from Tenon Recovery
---------------------------------------------------------
Jeremy Woodside and Christopher Ratten of Tenon Recovery were
appointed joint liquidators of J. & H. Cohen (Manchester) Ltd. on
Dec. 1, 2008, for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         J. & H. Cohen (Manchester) Ltd.
         15 Railway Road
         Leigh
         Lancs
         WN7 4AA
         England


NYLON HOSIERY: Appoints Joint Liquidators from BDO Stoy
-------------------------------------------------------
C. K. Rayment and M. Dunham of BDO Stoy Hayward LLP were appointed
joint liquidators of Nylon Hosiery Company Ltd. on Nov. 26, 2008,
for the creditors' voluntary winding-up proceeding.

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

         125 Colmore Row
         Birmingham
         B3 3SD
         England


POSITIVE LENDING: Goes Into Administration
------------------------------------------
Joe McGrath and Sharon Flaherty at the Financial Times report that
Positive Lending has gone into administration, blaming the
downward spiral in market conditions.

Citing Paul McGonigle, managing director of the company, the
report relates that it had been forced to cut staff numbers in the
last few months as a result of quiet market trading conditions.

The company, the report adds, also failed to agree new tenancy
terms with lenders for its premises in Bournemouth.

"We never found an agreement that could work for Positive Lending
and we were put in the position that we could not trade," Mr.
McGonigle was quoted by the FT as saying.

According to the report, Mr. McGonigle has sold the brand name of
Positive Lending to a member of the business.  He however noted
that no introducing brokers will be affected by the transfer and
will not see a financial loss as a result of the changes, although
the company will not be able to pay all creditors before cessation
of the business, the report states.

Mr. McGonigle will assist in a consultancy role for a short period
to oversee the transition, after which time he will pursue other
personal ventures, the report discloses.

Positive Lending is a mortgage introducer based in the United
Kingdom.


ROYAL BANK: Expects US$601 Million Loss on Madoff Investments
-------------------------------------------------------------
Royal Bank of Scotland Group Plc ("RBS") said it could lose as
much as GBP400 million (US$601 million) on investments tied to
Bernard Madoff's investment firm, Bloomberg News reports.

The International Herald Tribune relates that Mr. Madoff was
arrested for allegedly running a multibillion-dollar fraud scheme,
which, as Mr. Madoff himself estimated, resulted in a loss of
about US$50 billion.

Bloomberg News relates that the firm's collapse hit investors from
around the world including Banco Santander SA who said it lost
US$3.1 billion and Nomura Holdings Inc. who lost US$302 Million.

Separately, The Independent reports that RBS is unlikely to go
ahead with a sale of its insurance units unless market conditions
markedly improve in coming weeks.

According to The Independent, the bank will take the stalled
auction, which has been going since April, into the new year in
the hope that it can be salvaged.

                    GBP20 Bil. Cash Injection

As reported in the Troubled Company Reporter-Europe on Oct. 15,
2008, Bloomberg News said RBS obtained a GBP20 billion (US$34
billion) lifeline from the British government in exchange for 60%
of the bank, subject to investors' agreement to purchase stock at
65.5 pence apiece.

However, according to the International Herald Tribune, the bank's
investors shunned the lender's share sale resulting in the British
government taking majority control.

IHT said investors only signed up for 0.24 percent of the shares,
and the government had to take up the rest, leaving it with a 57.9
percent stake in RBS.

The government also agreed to buy a separate block of preferred
shares bringing its investment in RBS to about GBP20 billion, or
US$31 billion, IHT disclosed.

IHT recalled investors balked at buying RBS shares after they
dropped below the share issue offer price of 65.5 pence a share
this month.  Before that, IHT said
some investors considered buying the shares to avoid the
government taking a stake in the bank because it meant RBS would
be constrained by strict limits on dividend and bonus payments.
But they failed to do so when it became less expensive to buy the
shares on the open market than through the share issue, the same
report noted.

                              Losses

RBS will not be paying cash bonuses to executive directors this
year and next after writing down GBP5.9 billion of assets this
year and posting a loss of GBP761 million in the first half of the
year amid rising defaults and a slumping housing market in Britain
and the U.S.

The bank, according to Bloomberg News, may also take losses of as
much as EUR500 million (US$673 million) on holdings tied to
Icelandic banks, which were rescued by the island country's
government.

                   About Royal Bank of Scotland

Headquartered in Edinburgh, Scotland, The Royal Bank of Scotland
Group plc (RBS) -- http://www.rbs.com/-- is a holding company of
The Royal Bank of Scotland plc (Royal Bank) and National
Westminster Bank Plc (NatWest), which are United Kingdom-based
clearing banks.  The Company's activities are organized in six
business divisions: Corporate Markets (comprising Global Banking
and Markets and United Kingdom Corporate Banking), Retail Markets
(comprising Retail and Wealth Management), Ulster Bank, Citizens,
RBS Insurance and Manufacturing.  On Oct. 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.


TOWNSEND HOUSE: Names Joint Liquidators from Tenon Recovery
-----------------------------------------------------------
S. J. Parker and T. J. Binyon of Tenon Recovery were appointed
joint liquidators of Townsend House Ltd. on Nov. 28, 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


?VIANET GROUP: Calls in Administrators; Sells Unit to Brulines
-------------------------------------------------------------
Having carefully considered the financial position and prospects
of the company, the Board of Vianet Group plc on Thursday,
December 11, 2008, appointed Colin Dempster and Andrew Davison of
Ernst & Young LLP as administrators of the company with immediate
effect.

On November 21, 2008 the company announced that it had requested a
suspension of trading in its shares with effect from the
commencement of trading on Monday, November 24, 2008 pending
clarification of the company's financial position.  It
subsequently updated the market on December 8, 2008 that it
expected that the disposal of its sole trading subsidiary Vianet
Ltd would be completed shortly.

The administrators on Thursday agreed the disposal of Vianet Ltd
to Brulines Group plc for an undisclosed sum.  Vianet Ltd is a
leading provider of vending telemetry and wireless connectivity
services across a wide range of applications.  In the financial
year ended December 31, 2007 Vianet Ltd made a loss of
GBP1,439,000 and had net liabilities of GBP14,327,000.  This
included an inter-company debt to Vianet Group plc of
GBP14,653,000, which as at today's date is GBPnil following a
capitalization of the current inter-company debt.

As a result of the disposal, Vianet Group plc will no longer have
any trading activities and will have unaudited net liabilities of
approximately GBP1.54 million (before taking account of the
disposal proceeds which will be materially lower than the net
liabilities balance).  The net proceeds of the disposal will be
applied to Vianet Group plc's creditors by the administrators as
part of the winding up of the company.

Vianet Ltd will continue to trade as normal and looks forward to
developing its business, products and markets with the increased
financial security that its new parent may afford.

Brewin Dolphin has tendered its resignation as the company's
nominated adviser and broker with immediate effect following the
appointment of the administrators.  If within one month of the
company ceasing to have a nominated adviser the company has failed
to appoint a replacement, the admission of its AIM securities will
be canceled.

Headquartered in Dunfermline, United Kingdom, Vianet Group plc --
http://www.vianet.co.uk-- is primarily engaged in the development
and provision of mobile data-connectivity, cashless-payment
systems and remote data management vending solutions.
The Company's services are often referred to as Smart services.
The Company's wholly owned subsidiaries include Vianet Ltd, which
is engaged in the remote data collection and vOpen Ltd, which is a
dormant company.


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


* Senate Rejects Auto Aid for Detroit 3; Access to TARP Mulled
--------------------------------------------------------------
Greg Hitt, Jeffrey McCracken, and John D. Stoll at The Wall Street
Journal report that the U.S. Senate has rejected the US$14 billion
financial assistance for General Motors Corp., Chrysler LLC, and
Ford Motor Co.

As reported by the Troubled Company Reporter on Dec. 11, 2008, The
House of Representatives passed the bill on the government
financial assistance being requested by GM, Ford Motor, and
Chrysler.  The bill states that the U.S. president will appoint
one or more officers from the Executive Branch to facilitate the
restructuring necessary to achieve the long-term financial
viability of the automakers.

WSJ relates that the bill failed due to a dispute within the
Senate over the wages paid to the companies' workers.  Citing
Senate Majority Leader Harry Reid, the report says that the Senate
would be in recess, and would stand in pro forma session until
January 2009.

According to WSJ, only a few Republicans had been willing to back
the rescue package, while others raised concerns about government
intervention in the marketplace and demanded that the bill be
strengthened to exact concessions from the industry.

          Access to US$700BB Financial-Rescue Plan

John D. McKinnon, Deborah Solomon, and Greg Hitt at WSJ report
that the White House said on Friday that it would consider letting
GM, Chrysler, and Ford Motor access the US$700 billion financial-
rescue plan.  The government's US$700 billion Troubled Asset
Relief Program was approved in October and was intended for
financial institutions.

Citing a person familiar with the matter, WSJ relates that the
loans to be offered could be lesser than the US$14 billion
financial assistance.  According to the report, the source said
that it could be closer to US$8 billion and GM would be a
recipient.  The report says that GM is hoping for about
US$10 billion.

WSJ states that Chrysler's parent Cerberus Capital Management was
criticized for not bailing out its own company, while Ford Motor
said that it doesn't need a short-term lifeline and is seeking for
loans in case the market worsens.

       Canadian Gov't May Provide Financial Assistance

The Canadian government is considering providing financial aid to
units of GM, Ford Motor, and Chrysler, Alexandre Deslongchamps and
Hugo Miller at Bloomberg News report, citing Canadian Finance
Minister Jim Flaherty.

"Our government is open to helping the industry.  This is a day-
by-day thing, obviously, in terms of developments in the United
States," Bloomberg quoted Minister Flaherty as saying.

According to Bloomberg, GM has asked for CUS$800 million
assistance from Canada by year-end, an additional CUS$1.2 billion
line of credit through March 2009, and then CUS$400 million in the
second quarter of 2009.

Bloomberg states that MF Global Ltd. broker Aaron Fennell found
the assistance as "a waste of time because they'll probably end up
in some sort of bankruptcy within weeks."


* Unite Says UK Government Must Not Delay Car Industry Bailout
--------------------------------------------------------------
The failure in the US to agree a package of financial support for
the troubled car manufacturers must not delay UK Government
assistance for the car industry in this country, warns the UK's
biggest union Unite.

According to Tony Woodley, joint general secretary of Unite said:
"While it is clearly very disappointing that talks to secure
financial assistance for the Big Three car manufacturers in the US
have stalled, failure to reach a deal there must not mean a
moment's delay in this country.

"The UK car industry is facing unprecedented tough times with the
collapse of the financial market spreading vulnerability right
through the supply chain and placing tens of thousands of jobs in
jeopardy.  This must mean unprecedented intervention from
Government, just as they did with the banks.

"It is beyond comprehension that a deal will not eventually be
forthcoming in the US - the livelihoods of millions of people are
depending on this deal being struck.  But while we are not looking
for US-style bailouts for the UK and EU car industry, where we
have viable, productive companies producing the products the
market wants, without urgent Government-led intervention this
market turmoil will drag our car and components industry down.

"Government must step in with both a strategy for support and a
package of short-term financial assistance to tide this crucial
industry over in these tough times.  We urge Gordon Brown to again
show leadership and courage by putting in place a support
infrastructure in the UK.  This will send the right message across
the Atlantic because a vote of confidence in the UK car industry
will undoubtedly spill over into confidence in the US parent
companies."

Tony Woodley has been pressing Government to establish a GBP13
billion fund to inject liquidity into manufacturing, alongside a
clear strategy for supporting the UK car and components industry.
Such a move would echo the intervention by the German government
to support their manufacturing base.


* Tenon Recovery Expects Epidemic of UK Insolvencies in 2009
------------------------------------------------------------
Tenon Recovery, the turnaround, recovery, restructuring and
insolvency specialist has received calls for assistance from a
record number of businesses in the retail, restaurant, motor
industry, property and leisure industries in November and
December, up almost 200% on the same period last year.

Of particular concern is the extent to which profit margins are
being slashed to entice consumers to spend their cash.  Little fat
is being left to weather the near hibernation conditions forecast
for the tough first quarter period of the New Year.

The difficulties are arising against a background of almost 15
years of growth with many of today's executives having little
experience of operating in a downturn.  As discretionary spend is
cut, unemployment levels rise, supplier payment terms are
stretched and personal and business credit tightens, expertise is
required to help many companies charter their way through the
storm.

Carl Jackson, head of Tenon Recovery, said:

"We believe the symptoms we are seeing now are a precursor to a
potential epidemic of insolvencies in 2009.  It is quite usual for
some non seasonal businesses to turn off the lights in the run up
to Christmas as they know they will not be able to survive in the
New Year but we have never seen such a broad spread of businesses
fail so early."

"However, good advice and tight financial planning mean that there
could be other options.  We're advising all companies to get a
winter 'health check' to diagnose any snuffles so they can be put
right before they become fatal to the company."

The primary characteristics of a troubled business include: weak
equity base, low profit/losses, leveraged often due to a recent
transaction, weak management, weak management information systems,
dependence on one client, customer or person, rising stock/work in
progress, substantial debtors, self developed property, drip
redundancies, high fixed cost base, and fast growth causing
overtrading.

To help companies know whether they are fit for survival or need
immediate help, Tenon Recovery's health check covers five core
areas: management information, management control, key
relationship management, systems & processes, and financial
wellbeing.

Carl Jackson added: "This is important not only for businesses but
the UK economy in general –- there are currently some 4.7 million
SMEs (small and medium sized enterprises) in the UK employing
around 13.5 million people.  A continuing increase in the number
of small business insolvencies would have a significant impact on
the UK economy and it is very important to make sure that this
does not happen."

"By identifying these key areas and developing a checklist for
entrepreneurs, we hope to impress on small businesses the need to
plan – there is no such thing as being too prepared, particularly
in the current circumstances which are likely to get worse before
they get better.  Survival depends on many factors but among the
most critical is the willingness to take advice early and from
quality advisers."

                   About Tenon Recovery

Tenon Recovery -- http://www.tenondebtsolutions.co.uk/-- is the
third largest corporate appointment taker in the UK. Specializing
in turnaround, recovery, restructuring and insolvency in both the
corporate and personal sectors, Tenon Recovery is led by 43
directors supported by 350 staff operating from a network of 30
offices across the UK.


* Large Companies with Insolvent Balance Sheet
----------------------------------------------
                                Shareholders    Total   Working
                                    Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (110)         174     (168)
Sky Europe                            (4)         213      (54)


BELGIUM
-------
Sabena S.A.                          (85)       2,215     (279)


CYPRUS
------
Allbury Travel                        (5)         275     (100)
Libra Holidays                        (5)         275     (100)

CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192      (59)
Setuza A.S.                          (61)         139      (62)


DENMARK
-------
Elite Shipping                       (28)         101        3
Roskilde Bank                       (533)       7,877      N.A.


FRANCE
------
BSN Glasspack                       (101)       1,151      159
Grande Paroisse S.A.                (927)         629      347
Immob Hoteliere                      (67)         301      (17)
Lab Dosilos                          (28)         110      (44)
Matussiere et Forest S.A. MTF        (78)         294      (38)
Pagesjaunes GRP           PAJ     (3,023)       1,377     (453)
Rhodia SA                           (342)       6,507      712
SDR Centrest                        (132)        (252)     N.A.
Selcodis S.A.             SPVX       (21)         141      (36)
Trouvay Cauvin                        (0)         134        9


GERMANY
-------
Alno AG                   ANO        (21)         340      (88)
Brokat AG                            (27)         144      109
CBB Holding AG            COB        (43)         905      N.A.
Cinemaxx AG               MXC        (38)         178      (47)
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (27)
EECH Group AG                          0          109       57
EM.TV AG                  EV4G.BE    (22)         849       19
Kaufring AG               KAUG       (19)         151      (48)
Kunert AG                            (28)         102       29
Maternus Kliniken AG      MAK.F      (17)         182      (99)
Nordsee AG                            (8)         195      (14)
P & T Technology                       0          109       57
Primacom AG               PRC        (14)         730      (68)
Rinol AG                               0          168       (6)
Sander AG                             (6)         128       32
Sinnleffers AG                        (4)         454     (182)
Spar Handels- AG          SPAG      (442)       1,433     (294)
TA Triumph-Adler          TWN        (66)         484      (77)
Vivanco Gruppe                       (10)         131       28


GREECE
------
Empedos SA                           (34)         175      (57)
Noussa Spin                          (11)         450     (107)
Petzetakis-PFC            PETZP      (15)         294     (143)
Radio A.Korassidis        KORA      (101)         181     (165)
   Commercial
Themeliodome                         (56)         232     (128)
United Textiles                      (11)         450     (107)


HUNGARY
-------
Brodograde Indus                   (322)         264      (366)
IPK Osijek DD OS                    (15)         124       (82)
OT Optima Teleko                    (26)         119         7


ICELAND
-------
Decode Genetics                    (187)         111        48


IRELAND
-------
Elan Corp PLC             ELN      (388)       1,599       705
Waterford Wed Ut          WTFU     (506)         821       364


ITALY
-----
Binda S.p.A.              BND        (11)         129      (23)
Cirio Finanziaria S.p.A.            (422)       1,583      N.A.
Gruppo Coin S.p.A.        GC        (152)         791      (61)
Compagnia Italia          ICT       (138)         527     (318)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,213      N.A.
Fullsix                               (4)         114      (18)
I Viaggi del
   Ventaglio S.p.A.       VVE        (73)         540     (127)
Lazzio S.p.A.                        (15)         261      (40)
Olcese S.p.A.             OLCI.MI    (13)         180      (80)
Parmalat Finanziaria
   S.p.A.                        (18,4219)       4,121  (16,919)
Snia S.p.A.               SN         (25)         488       31
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (30)


LUXEMBOURG
----------
Carrier1 International S.A.          (95)         472      393


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
James Hardie Ind.                   (238)       2,357      184
United Pan-Euro Air       UPC     (5,505)       5,113   (9,170)


NORWAY
------
Interoil Exploration      IOX        (25)         210      (11)
Petroleum-Geo Services    PGO        (18)         400     (758)


POLAND
------
Toora                               (289)          147     (86)


PORTUGAL
--------
Lisgrafica Impressao
   e Artes Graficas SA    LIG         (4)          117     (27)


ROMANIA
-------
Oltchim RM Valce          OLT         (7)         673     (170)
Rafo Onesti               RAF       (430)         353     (616)


RUSSIA
------
Akcionernoe Brd                     (117)         135      (24)
East Siberia Brd          VSNK      (113)         148      (11)
Gukovugol                            (58)         144     (148)
OAO Samaraneftegas                  (332)         892     (611)
Vanadiy-Tula-Brd                     (12)         105       (3)
Vimpel Ship               SOVP      (116)         135      (24)
Zil Auto                  ZILLP     (240)         478     (447)


SWITZERLAND
-----------
Fortune Management                  (119)         265      (54)

TURKEY
------
Egs Ege Giyim VE                      (7)         147      (25)
Iktisat Financial                    (46)         108      N.A.
Mudurnu Tavukcul                     (65)         160     (115)
Nergis Holding                       (77)         299       38
Sifas                                (17)         117       21
Yasarbank                          (4,025)      2,644      N.A.

UKRAINE
-------
Dniprooblenergo           DNON       (51)         433     (200)
Donetskoblenergo          DOON      (367)         631     (469)


UNITED KINGDOM
--------------
Advance Display                   (3,016)       2,590     (411)
Airtours Plc                        (379)       1,818     (932)
Alldays Plc                         (120)         252     (290)
Amer Bus Sys                        (497)         121     (497)
Amey Plc                  AMY        (49)         932      (76)
Anker Plc                            (22)         115       16
Atkins (WS) Plc           ATK        (46)       1,345       58
Black & Edgingto                    (140)         203       23
BNB Recruitment                      (10)         104       38
Booker Plc                BKRUY      (60)       1,298      (13)
Bradstock Group           BDK         (2)         269        7
British Energy Ltd                (5,823)       4,921      534
British Energy Plc        BGY     (5,823)       4,921      534
British Sky Broadcast               (334)       8,126     (388)
Carlisle Group                       (12)         204       30
Compass Group             CPG       (668)       2,972     (440)
Danka Bus                           (497)         121     (497)
Dawson Holdings                      (18)         226      (63)
Dignity Plc               DTY         (9)         648       71
E-II Holdings                       (199)         651      149
Easynet Group             ESY.L      (45)         323       68
Electrical and Music
   Industries Group       EMI     (2,266)       2,950     (582)
European Home                        (14)         111      (70)
Farepak Plc                          (14)         111      (70)
Gartland Whalley                     (11)         145      (13)
Hilton Food Group                    (21)         256      (12)
Kleeneze Plc                         (14)         111      (70)
Ladbrokes Plc             LAD       (814)       2,403     (706)
Lambert Fenchurch Group               (1)       1,827        5
Leeds United                         (73)         144      (48)
M 2003 Plc                        (2,204)       7,204   (1,078)
Mytravel Group            MT.L      (380)       1,818     (931)
New Star Asset                      (398)         293       21
Next Plc                            (119)       3,161     (125)
Orange Plc                ORNGF     (594)       2,902       12
Orbis Plc                             (4)         128       (5)
Patientline Plc                      (55)         125      (10)
Preedy Alfred                       (119)       3,161     (125)
Rank Group Plc                      (132)       1,066     (175)
Regus Plc                            (46)         367      (97)
Rentokil Initial                      (8)       4,178     (886)
Saatchi & Saatchi         SSI       (119)         705      (66)
Samsonite Corp.                     (199)         651     (149)
SFI Group                 SUF       (108)         178     (265)
Skyepharma Plc            SKP       (140)         203       23
Smiths News Plc                     (124)         201      (92)
Styles & Wood                        (57)         107       (9)
Telewest
   Communications Plc     TLWT    (3,702)       7,581  (10,042)
Thorn Emi Plc                     (2,266)       2,950     (582)
Topps Tiles Plc                     (111)         195       18
Trio Finance                         (14)         592      N.A.
UTC Group                            (12)         204       30
Virgin Mobile                       (392)         166     (176)
Watson & Philip                     (120)         252     (290)

                            *********

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

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

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

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

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites
O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, Marie
Therese V. Profetana and Peter A. Chapman, Editors.

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

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

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

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


                 * * * End of Transmission * * *