TCREUR_Public/081222.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Monday, December 22, 2008, Vol. 9, No. 253

                            Headlines

A R M E N I A

* Ba2 Bond Ratings Constrained by Low Level Economic Development


A U S T R I A

AVM KG: Claims Registration Period Ends January 29
BAUINGENIEUR SERVICES: Claims Registration Period Ends Jan. 29
COLOR-POINT LLC: Claims Registration Period Ends January 29
DARDI KG: Claims Registration Period Ends January 15
EIGBRECHT FOLIENTECHNIK: Claims Registration Period Ends Jan. 20


C Y P R U S

DELANCE LTD: S&P Keeps 'BB-' Corp. Credit Rating; Outlook Negative


F R A N C E

ALCATEL-LUCENT: Sells Thales Stake to Dassault for EUR1.57 Bil.
DELPHI CORP: To Sell Global Exhaust Business to Bienes for US$17MM
IXIS CORPORATE: Moody's Downgrades Rating on Class S Notes to Ca
NATIXIS SA: Cutting Staff by 40% Under CIB Restructuring Plan
VERSAILLES CLO: Moody's Affirms 'Ba2' Rating on EUR14 Mil. Notes

* FRANCE: To Slip Into Recession Next Year, Insee Says


G E R M A N Y

ANTIOCH COMPANY: Wants to Access US$4 Million BoA DIP Facility
ARSNOVO INTERNATIONAL: Claims Registration Period Ends Jan. 16
BALU-HAUSTECHNIK GMBH: Claims Registration Period Ends Feb. 22
COM4TEAM GMBH: Claims Registration Period Ends February 20
CONTINENTAL AG: Moody's Downgrades Senior Unsec. Ratings to 'Ba1'

DEHLER YACHTS: Goes Into Administration; 180 Jobs at Risk
ESCADA AG: S&P Junks Long-Term Corp. Credit Rating; Outlook Neg.
LINEATRE VERTRIEBS: Claims Registration Period Ends Feb. 20
TEXTILAGENTUR WICKING: Claims Registration Period Ends Jan. 19
VAC HOLDING: S&P Lowers Long-Term Corporate Credit Rating to 'B-'


I C E L A N D

GLITNIR BANKI: Rebranded Islandsbanki
KAUPTHING BANK: Iceland Requests Data on Luxembourg Units
LANDSBANKI ISLANDS: Former Luxembourg Unit Employees Stage Protest

* ICELAND: IMF Sees Progress on Financial Sector Restructuring


I R E L A N D

ALEXANDRIA CAPITAL: Moody's Lowers Ratings on Two Classes to Low-B
ELVA FUNDING: Moody's Downgrades Ratings on Six Note Classes
ELVA FUNDING: S&P Downgrades Rating on EUR100 Mil. Notes to 'B-'
HARRIER FINANCE: Moody's Downgrades Senior Debt and Note Ratings
NEW BOND STREET: S&P Junks Credit Rating of Class A Notes

RUBY FINANCE: Moody's Withdraws 'B3' Rating on EUR3 Mil. Notes
STARTS PLC: Moody's Dowgrades Ratings on Two Note Classes


I T A L Y
BANCA DI CREDITO: S&P Downgrades Counterparty Ratings to 'BB/B'
ITALFINANCE SECURITIZATION: Moody's Assigns 'Ba1' Rating on Notes


K A Z A K H S T A N

AKLIV LLP: Proof of Claim Deadline Slated for February 4
BURCH-ALMATY LLP: Creditors Must File Claims by February 4
IRS-RIG LLP: Claims Filing Period Ends February 4
JAN SHI: Creditors' Claims Due on February 4
KAZAKH OIL-PRODUCTS: Claims Registration Ends February 3

KUAT LLP: Proof of Claim Deadline Slated for February 4
NABI MULTI: Creditors Must File Claims by February 4
PRODOVOLSTVENNAYA COMPANIYA: Claims Filing Period Ends Feb. 3
RUSLAN LLP: Creditors' Claims Due on February 3
TUSMA I LLP: Claims Registration Ends February 4


K Y R G Y Z S T A N

SERVICES AVIATION: Creditors Must File Claims by February 3


L A T V I A

* LATVIA: Reaches Deal with IMF on EUR1.7 Bln Economic Program


L U X E M B O U R G

CARRERA CAPITAL: Moody's Downgrades Capital Note Rating to 'Ba1'


N E T H E R L A  N D S

BALLY TECHNOLOGIES: Opens New European Headquarters in Amsterdam
IFCO SYSTEMS: S&P Puts 'BB-' Corp. Credit Rating on WatchNeg.
ROMPETROL GROUP: S&P Keeps 'B+' Cop. Credit Rating; Outlook Neg.


R U S S I A

ARTSTROY LLC: Creditor Must File Claims by January 12
BELOVSKIY MINING: Creditors Must File Claims by February 12
COAL ENERGY: Altay Bankruptcy Hearing Set February 16
GAZPROMBANK MORTGAGE: S&P Junks Ratings on Class B and C Notes
ISTA-STROY LLC: Creditors Must File Claims by February 12

JFC GROUP: S&P Junks Corp. Credit Rating on Eroding Liquidity
KOMI-TRANS-GAS CJSC: Perm Bankruptcy Hearing Set March 18
MOSCOW OBLAST: S&P Downgrades Issuer Credit Ratings to 'SD'
MOSCOW REGIONAL: S&P Downgrades Issuer Credit Rating to 'SD'
NATIONAL FACTORING: Moody's Reviews 'Ratings for Possible Cuts

PULYUS LLC: Novosibirsk Bankruptcy Hearing Set December 22
RUS LLC: Creditors Must File Claims by January 12
SAMREK CJSC: Creditors Must File Claims by January 12
SCANDINAVIA INSURANCE: A.M. Best Affirms FSR at "B" & ICR at "bb+"
TATSINSKIY CANNERY: Creditor Must File Claims by February 12

* RUSSIA: Sets Aside Addt'l RUR150 Bln to Prop Up Real Economy


S E R B I A   &   M O N T E N E G R O

* Moody's Changes Outlook on Montenegro's Ba2 Rating to Negative


S P A I N

BONOS DE TITULIZACION: Moody's Puts 'Ba3' Rating on Class C Notes
IM SABADELL: Moody's Puts (P)Ba2 Rating on EUR121.8 Mln Notes


S W E D E N

FORD MOTOR: Will Extend Plant Shutdown to January 12


S W I T Z E R L A N D

FERD. HOHNS: Creditors Must File Proofs of Claim by January 5
GEMAKO LLC: Deadline to File Proofs of Claim Set January 2
IMAGOS LLC: Creditors Have Until January 3 to File Claims
MM FIORI: Proofs of Claim Filing Deadline is February 11
SATRAT LLC: Creditors' Proofs of Claim Due by February 7

WEBER SOLPROTECT: January 31 Set as Deadline to File Claims


U K R A I N E

DARINA LLC: Creditors Must File Claims by January 3
ENERGY OIL: Creditors Must File Claims by January 3
INSOL NIK: Creditors Must File Claims by January 3
INTRANS TECH: Creditors Must File Claims by January 3

KANKOR LLC: Creditors Must File Claims by January 3
KRAMATORSK BREWERY: Creditors Must File Claims by January 3
PRAKTIK-SERVICE LLC: Creditors Must File Claims by Jan. 3
TECHNOBUILDINGSERVICE LLC: Creditors Must File Claims by Jan. 3
UKRTECHNOSERVICE LLC: Creditors Must File Claims by January 3


U N I T E D   K I N G D O M

APOLLO LTD: Appoints Joint Liquidators from Smith & Williamson
ARLO IV: Moody's Downgrades Ratings on Three Classes to Low-B
BRITISH AIRWAYS: Merger Talks With Qantas Ends
EDEUS EUROPE: Names Joint Administrators from KPMG
FULHAM ROAD: S&P Withdraws Ratings on Six European CDO Tranches

KAUPTHING SINGER: Tynwald Okays GBP11 Mln Payment Scheme to Savers
LASER CUTTING: Taps Joint Administrators from PwC
LEWIS & MAY: Appoints Joint Administrators from Baker Tilly
MARBLE ARCH: S&P Downgrades Ratings on Class D Notes to 'BB'
RALLY CDO: Moody's Downgrades Ratings on Four Classes of Notes

TATA MOTORS: In Talks with UK Gov't Over Jaguar State Aid
TATA STEEL: Corus UK Staff to Lose Anti-Social Shift Premiums
WOOLWORTHS PLC: 807 Stores to Close by January 5
YHC DEVELOPMENTS: Names Joint Administrators from Ernst & Young


X X X X X X X X

* Car Czar May Force Bankruptcy Filing for GM & Chrysler
* 80 Automotive Suppliers at Risk of Becoming Insolvent

* BOND PRICING: For the Week Dec. 15 to Dec. 19, 2008


                         *********


=============
A R M E N I A
=============


* Ba2 Bond Ratings Constrained by Low Level Economic Development
--------------------------------------------------------------
Armenia's Ba2 government bond ratings and stable outlook are
supported by its manageable debt levels, says Moody's Investors
Service in its annual report on the country.  The ratings are
constrained by the low level of economic and institutional
development of the country, along with its concentrated economic
base and volatile neighborhood.

"Armenia has not been directly affected by the global credit
crunch although second-round effects are now being felt from the
compression of world demand and the difficult conditions in
Russia, its primary trading partner and the source of large
diaspora remittances," said Moody's Associate Vice President Joan
Feldbaum-Vidra, Moody's sovereign analyst for Armenia.

She said growth is likely to decelerate sharply in the next few
years even as the government moves forward with large public
sector investment projects financed by multilateral funds.  The
spending on such projects should help sustain the growth momentum
even as the fiscal deficits are set to shrink.

"The country's low government debt and minimal refinancing risks
are allowing its rating to maintain a stable outlook in the
current environment," said Ms. Feldbaum-Vidra.  "A weak revenue
base is the main fiscal risk, although it is ameliorated by the
very comfortable debt service profile, its good relations with its
official creditors, and the liquidity provided by the expatriate
Armenian community."

Moody's reports that Armenia's economic prospects continue to be
hampered by strained relations with Turkey and Azerbaijan, and
that the border between Turkey and Armenia is closed, increasing
the cost of both exports and imports.

"Armenia's low institutional strength is another constraint on its
ratings," said Feldbaum-Vidra.  "The authorities are very keen to
address this, recognizing that high levels of corruption and a
suboptimal business climate need to be corrected in order to
achieve long-term sustainable growth and to attract investment."

Moody's first-ever ratings for Armenia were assigned in 2006 and
include a Baa3 ceiling to foreign currency bonds and notes and a
Ba3 ceiling for foreign currency bank deposits, all with stable
outlooks.


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


AVM KG: Claims Registration Period Ends January 29
--------------------------------------------------
Creditors owed money by KG AVM (FN 291840b) have until Jan. 29,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Karl F. Engelhart
         Esteplatz 4
         1030 Wien
         Austria
         Tel: 712 33 30-0
         Fax: DW 30

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:10 a.m. on Feb. 12, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 18, 2008, (Bankr. Case No. 2 S 149/08m).


BAUINGENIEUR SERVICES: Claims Registration Period Ends Jan. 29
--------------------------------------------------------------
Creditors owed money by LLC Bauingenieur Services (FN 259265y)
have until Jan. 29, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Kurt Bernegger
         Jaquingasse 21
         1030 Wien
         Austria
         Tel: 01/799 15 80
         Fax: 01/796 59 14
         E-mail: kanzlei@bernegger-wt.com

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Feb. 12, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 18, 2008, (Bankr. Case No. 2 S 148/08i).


COLOR-POINT LLC: Claims Registration Period Ends January 29
-----------------------------------------------------------
Creditors owed money by LLC Color-Point (FN 247058x) have until
Jan. 29, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Annemarie Kosesnik-Wehrle
         Oelzeltgasse 4/6
         1030 Wien
         Austria
         Tel: 713 61 92
         Fax: DW 22
         E-mail: kanzlei@kosesnik-langer.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on Feb. 12, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 18, 2008, (Bankr. Case No. 2 S 147/08t).


DARDI KG: Claims Registration Period Ends January 15
----------------------------------------------------
Creditors owed money by KG Dardi (FN 289494b) have until
Jan. 15, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Arno Maschke
         Mariahilfer Strasse 50
         1070 Wien
         Austria
         Tel: 523 62 00
         Fax: 526 72 74
         E-mail: office@sup.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Jan. 29, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 18, 2008, (Bankr. Case No. 5 S 121/08s).


EIGBRECHT FOLIENTECHNIK: Claims Registration Period Ends Jan. 20
----------------------------------------------------------------
Creditors owed money by LLC Eigbrecht Folientechnik (FN 87164h)
have until Jan. 20, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Gerhard Nathschlager
         Eisenhandstrasse 15
         4020 Linz
         Austria
         Tel: 77 55 44-16
         Fax: 77 55 44-10
         E-mail: insolvenz@bzp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Feb. 3, 2009, for the
examination of claims at:

         Land Court of Linz
         Hall 522
         Linz
         Austria

Headquartered in Pucking, Austria, the Debtor declared bankruptcy
on Nov. 14, 2008, (Bankr. Case No. 17 S 54/08b).


===========
C Y P R U S
===========


DELANCE LTD: S&P Keeps 'BB-' Corp. Credit Rating; Outlook Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Cyprus-based Delance Ltd. to negative from stable.  All
ratings, including the 'BB-' corporate credit ratings on the
company, and those on group financing vehicle Colgrade Ltd. were
affirmed.

Delance Ltd. is the holding company of Rolf Group, Russia's
largest importer and retailer of foreign-branded cars.

"The outlook revision follows a deterioration in the outlook for
the Russian car market and a recent decision by the Russian
government to increase import duties on new cars to 30% from 25%,
which is expected to further reduce demand for most foreign
branded cars.  This in turn is expected to negatively impact Rolf
Group's operating and financial performance, which will likely
pressure the group's credit protection measures," said Standard &
Poor's credit analyst Anna Stegert.

The trading outlook for the Russian car market has become
increasingly gloomy in recent months.  GDP growth is expected to
sharply decelerate and economic output in nominal U.S. dollar
terms is likely to decline, which in turn negatively impacts the
disposable incomes of Russian consumers.  Additionally, the
depreciation of the ruble puts upward pressure on the ruble-
denominated cost of imported cars, which is generally borne by the
customer.  The increase of import duties is yet another factor
that has dented the competitiveness of foreign manufacturers in
relation to domestic producers.

The ratings continue to depend on the assumption that Rolf Group
will manage its liquidity successfully.  Such success would
entail, for example, the group maintaining its ability to roll
over short-term bilateral bank lines and extending its exclusive
distribution contract with Mitsubishi when it matures in 2009.


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


ALCATEL-LUCENT: Sells Thales Stake to Dassault for EUR1.57 Bil.
---------------------------------------------------------------
Alcatel-Lucent has signed a definitive agreement with Dassault
Aviation regarding the acquisition by Dassault Aviation of
Alcatel-Lucent's 41,262,481 shares in Thales.

The transaction will be based on a price of EUR 38 per share,
representing a total value of about EUR1.57 billion.

The closing of the transaction, foreseen for spring 2009, is in
particular subject to regulatory and administrative approvals, of
which those relative to antitrust.

                    About Dassault Aviation

Headquartered in Paris, France, Dassault Aviation SA (EPA:AM) --
http://www.dassault-aviation.com/-- operates in the global
aviation industry.  The Company specializes in the design,
manufacture and sale of combat aircraft and executive jets.  Its
portfolio of products includes Falcon aircraft for the civil
aviation market, as well as Mirage 2000 and Rafale aircrafts for
the military aviation sector.  In addition, Dassault Aviation SA
offers spare parts, tools and a range of services, such as
technical support, maintenance and repair of airframe equipment
and parts.  Alongside the aircraft sector, the Company also
focuses on space vehicles and pyrotechnical devices.  Dassault
Aviation SA has a number of subsidiaries, mainly located in the
United States and France, including Dassault Falcon Jet, Dassault
Falcon Service, Dassault Procurement Services and Sogitec
Industries.

                    About Alcatel-Lucent SA

France-based Alcatel-Lucent SA (Euronext Paris and NYSE: ALU) --
http://www.alcatel-lucent.com/-- provides product offerings that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  In the field of fixed, mobile and converged broadband
networking, Internet protocol (IP) technologies, applications and
services, the Company offers the end-to-end product offerings that
enable communications services for residential, business customers
and customers. It has operations in more than 130 countries.  It
has three segments: Carrier, Enterprise and Services.  The Carrier
segment is organized into seven business divisions: IP, fixed
access, optics, multicore, applications, code division multiple
access networks and mobile access.  Its Enterprise business
segment provides software, hardware and services that interconnect
networks, people, processes and knowledge. Its Services business
segment integrates clients' networks.  In October 2008, the
Company completed the acquisition of Motive, Inc.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 17,
2008, Standard & Poor's Ratings Services placed its 'BB-' long-
term corporate credit rating on French telecom equipment and
services supplier Alcatel Lucent on CreditWatch with negative
implications.

S&P also placed the 'BB-' long-term corporate credit rating on
subsidiary Lucent Technologies Inc. and all issue ratings on both
companies on CreditWatch with negative implications.

At the same time, S&P affirmed the respective 'B' and 'B-1' short-
term ratings on Alcatel Lucent and Lucent Technologies.

The rating agency noted that on Sept. 30, 2008, Alcatel Lucent had
on-balance-sheet gross debt of EUR5.8 billion, including the
equity component of convertible
bonds.

"The CreditWatch placement follows Alcatel Lucent's strategy and
outlook update [], including the company's forecasts of an 8% to
12% drop in its revenues in 2009, at constant currencies," said
Standard & Poor's credit analyst Patrice Cochelin.


DELPHI CORP: To Sell Global Exhaust Business to Bienes for US$17MM
------------------------------------------------------------------
Delphi Corporation said it received approval from the U.S.
Bankruptcy Court for the Southern District of New York for the
sale of assets related to the company's global exhaust business to
Bienes Turgon for US$17 million, subject to adjustments.

"Delphi's sale of its global exhaust business is a significant,
meaningful step as the company progresses with ongoing corporate
and divisional transformation plans,"  said Ron Pirtle, president,
Delphi Powertrain Systems.  "This move further refines our
powertrain product portfolio to feature core, differentiated
technologies in which Delphi possesses competitive advantages and
for which customers are calling."

Delphi selected Bienes Turgon as the lead bidder and received
court approval to proceed with the sale process for the global
exhaust business.

Delphi will carefully manage the transition of the business, and
the sale will be completed in coordination with Delphi's
customers, suppliers, employees, unions and other stakeholders.

The transaction, which is subject to certain closing conditions,
including completion of consultation procedures with certain
unions and works councils, and completion of the closing
documents, is expected to close during the first half of 2009.

Although the company is divesting its exhaust business, Delphi
Powertrain continues to provide full engine management systems
-- including air and fuel management, combustion and valvetrain
technology -- through its gas EMS product business unit.

                    About Delphi Corp.

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

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

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the solicitation
of votes on the First Amended Plan on Dec. 20, 2007.  The Court
confirmed the Debtors' First Amended Plan on Jan. 25, 2008.  The
Plan has not been consummated after a group led by Appaloosa
Management, L.P., backed out from their proposal to provide
US$2,550,000,000 in equity financing to Delphi.


IXIS CORPORATE: Moody's Downgrades Rating on Class S Notes to Ca
----------------------------------------------------------------
Moody's Investors Service has downgraded its rating of one class
of notes issued by IXIS Corporate and Investment Bank.

The transaction is an issuance under the debt issuance program of
IXIS Corporate and Investment Bank.  The Series 2495 notes are
credit linked to the Class S floating rate notes issued by Tensyr
Limited.  The rating action follows the downgrade of the Class S
Tensyr Limited notes to Ca from Aaa.

Moody's initially analyzed this transaction using primarily the
methodology and its supplements for repackaged securities as
described in Moody's Special Reports:

  -- Repackaged Securities (October 2001)

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

  -- Weighing the Added Credit Risks of Credit-Linked Securities:
     Update on Moody's Rating Approach (January 1996)

The rating action is:

IXIS Corporate and Investment Bank:

(1) Series 2495 EUR169,000,000 Total Return Notes due 2013
linked to an amount of US$218,900,000 of Class S Floating Rate
Notes issued by Tensyr Limited

  -- Current Rating: Ca
  -- Prior Rating: Aaa
  -- Prior Rating Date: 1 February 2007


NATIXIS SA: Cutting Staff by 40% Under CIB Restructuring Plan
-------------------------------------------------------------
Natixis SA's supervisory board on December 18 approved the plan
presented by its executive management to thoroughly refocus the
Corporate and Investment Banking (CIB) business on its historic
clients, plain vanilla products and a client-oriented product
offering, the company said in a statement.

Natixis said it will support the restructuring plan underway since
May 2008 by:

   -- resorbing assets with more risk;
   -- considerably reducing sources of loss as early as 2009; and
   -- stepping up cost-cutting actions.

Natixis's two main shareholders, represented by Philippe Dupont
and Bernard Comolet, confirmed their support of Natixis
management, the company said.

                     Refounding Natixis CIB

Under the transformation plan for Natixis CIB, the company will:

   -- put a stop to credit and structured credit proprietary
      investment activities.  These proprietary investment
      activities (EUR19 billion of risk weighted assets) will
      be stopped before we implement an already effective
      specific structure to optimize run-off management;

   -- halt more complex capital market activities, such as
      complex equity derivatives, complex fixed-income
      derivatives, fund derivatives.  The equity unit will be
      downsized, risk will be removed, and it will operate at
      low cost.  Simple derivatives in custody in France will
      be pooled with intermediation/brokerage activities;

   -- refocus on historic clients by promoting client operations
      (major corporates in France and selected corporates in
      Southern Europe, corporate mid caps in France,
      institutional investors in Europe and structured finance
      clients on the international level);

   -- tighten international presence: major reduction in
      Asia (most capital market activities stopped and
      simple client support service maintained) and in
      the United States (equity derivatives and vanilla
      corporate stopped), shut down of marginal offices
      (in South America),development projects abandoned
      (India and Korea);

   -- strengthen a risk discipline in all activities.

                            Job Cuts

Natixis disclosed that the transformed CIB will result in a 40%
staff cut in the more complex capital market activities, i.e 15%
fewer employees in CIB: total headcount will decrease from 5,700
employees in March 2008 to 4,860 at the end of 2009.

It will also result in a 10% reduction of direct fixed expenses
related to CIB.

Natixis said it will provide employee representative bodies with
the details of this new reorganization project in the upcoming
weeks.

                  Strategic Priorities for 2009

Natixis' priorities for 2009 consist in reducing sources of losses
as soon as possible and a major decrease in the use of risk
weighted assets.

Through these measures, Natixis said the company will be in a
position to adapt to the new economic environment resulting from
the subprime crisis and the collapse of Lehman Brothers in
September 2008 and to base its CIB on a strategic choice
targetting stability and a reduced risk profile.

                         Madoff Exposure

Natixis said in a December 15 press statement that it might have
indirectly fallen victim to the fraud for which Bernard Madoff,
well known New York financier, was arrested on December 11 by the
FBI.

Natixis pointed out it has no proprietary investments in the hedge
funds managed by Bernard Madoff Investment Securities LLC.

On the other hand, the Bank disclosed it has carried out
operations for its clients in several world renown funds where the
securities were entrusted to first class custodians, most of which
are subsidiaries of major international banks.  These custodians
in turn entrusted the custody of these securities to Bernard L.
Madoff Investment Securities LLC, a registered broker under
Securities & Exchange Commission regulation, listed on the NASDAQ.

According to the company, all statements it held from 2003 to
November 2008 show that these funds were almost all invested in US
T-bills.

Natixis said it is looking into the situation with its attorneys.

The Bank reiterated it has no direct exposure and it estimates its
maximum net indirect exposure to approximately EUR450 million.
The effective impact of this exposure will depend both on the
recovery level of the assets deposited on behalf of Natixis and
the outcome of the courses of action the Bank can revert to
including legal actions, the company said.

                        About Natixis SA

France-based Natixis SA (EPA:KN) -- http://www.natixis.com/--
formerly Natexis Banques Populaires, is involved in the banking
sector and offers five main types of services: financing and
investment banking, asset management, services, receivables
management, private equity and private banking.  Natixis also
consolidates a proportion of the earnings of the retail banking
activities of the Caisse d'Epargne Group and the Banque Populaire
Group, its main shareholders.  The Bank clientele comprises large
corporations, medium-sized companies, institutions and the Banque
Populaire retail-banking network.  The Bank operates in 68
countries located in France, Europe, the Americas, Africa, Asia
and Oceania.


VERSAILLES CLO: Moody's Affirms 'Ba2' Rating on EUR14 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of the Notes
issued by Versailles CLO M.E. I p.l.c.:

  * Aaa to the EUR7,500,000 Class S Senior Floating Rate Notes
    due 2023

  * Aaa to the EUR102,750,000 Class A-1-D Senior Delayed Draw
    Floating Rate Notes due 2023

  * Aaa to the EUR95,300,000 Class A-1-T Senior Secured Floating
    Rate Notes due 2023

  * Aaa to the EUR33,000,000 Class A-2 Senior Variable Funding
    Floating Rate Notes due 2023

  * Aa2 to the EUR22,500,000 Class B Senior Secured Floating
    Rate Notes due 2023

  * A2 to the EUR18,000,000 Class C Deferrable Secured Floating
    Rate Notes due 2023

  * Baa2 to the EUR12,200,000 Class D Deferrable Secured
    Floating Rate Notes due 2023

  * Ba2 to the EUR14,000,000 Class E Deferrable Secured Floating
    Rate Notes due 2023

The ratings address the expected loss posed to investors by the
legal final maturity.

The affirmation of the ratings has been prompted by the execution
of a Deed of Novation executed on December 15, 2008, whereby BNP
Paribas, acting through its business unit The Leveraged Funds
Group, replaces Calyon, acting through its business unit CLO
Management Europe, under the Collateral Management Agreement, the
Trust Deed , the Collateral Administration Agreement, the
Liquidity Facility Agreement and the Agency Agreement of
Versailles CLO M.E. I p.l.c. and whereby certain amendments are
made to the Collateral Management Agreement.

In November 2008, the senior noteholders of Versailles CLO M.E. I
p.l.c. voted to appoint BNP Paribas as successor collateral
manager.


* FRANCE: To Slip Into Recession Next Year, Insee Says
------------------------------------------------------
France will slip into recession in 2009, BBC News reports citing
Insee, the country's national statistics agency.

BBC relates that according to the agency, the French economy has
shrunk by 0.8% in the last three months of 2008 and will contract
by another 0.4% in the first quarter of 2009.

France, eurozone's second biggest economy, posted growth of 0.1%
between July and September, BBC recounts.

BBC notes that Insee also predicted that unemployment in France
would rise to 8% by the middle of next year, up from 7.7% at the
moment.


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


ANTIOCH COMPANY: Wants to Access US$4 Million BoA DIP Facility
--------------------------------------------------------------
The Antioch Company and its debtor-affiliates obtained permission
from the United States Bankruptcy Court for the Southern District
of Ohio to obtain US$4 million in postpetition financing from a
group of financial institutions led by Bank of America N.A., as
agent.

The three DIP Lenders have committed to fund these amounts:

     Lender                      Commitment
     -------                     ----------
     Bank of America, N.A.       US$1,428,571
     Fifth Third Bank            US$1,428,571
     National City Bank          US$1,142,857

The Debtors also seek the Court's consent to use cash collateral
securing repayment of loan to their prepetition lenders.

The DIP Loan will bear interest at Prime Rate plus 3%.  In the
event of default, the facility will incur interest at Prime Rate
plus 5%.  Interest will be computed on the basis of actual days
elapsed and a 365-day year in all cases and will be payable
monthly in arrears in cash.

According to the Debtors, proceeds of the facility and cash
collateral will be used to fund general corporate needs including
working capital, and pay fees and expenses related to the
financing and the Chapter 11 cases.

The Debtors will grant the DIP Lenders first priority senior
priming security interests and liens on all of their assets.  The
DIP Lenders claims' will have priority over and any and all
administrative expenses.

The DIP facility is subject to a US$250,000 carve-out for payment
of fees and expenses incurred by professionals of the Debtors or
any statutory committee.  The DIP agent will be paid US$40,000 in
closing fee in cash for the benefit of the lenders and a US$25,000
in arrangement fee on closing.

The DIP facility contains customary and appropriate events of
default.

The hearing to consider approval of the DIP facility has been
postponed to an unset date.  It was originally set for Dec. 18,
2009.

Michael J. Kaczka, Esq., at McDonald Hopkins LLC, relates the
Debtors, the Official Committee of Unsecured Creditors and the
Debtors' secured lenders have reached an agreement in principle
resolving certain objections to the DIP request raised by the
Committee.  The Debtors, Mr. Kaczka notes, have submitted a
proposed final order to the Court.

A full-text copy of the Debtor-in-Possession Agreement is
available for free at http://ResearchArchives.com/t/s?3675

A full-text copy of the Cash Collateral Budget is available for
free at http://ResearchArchives.com/t/s?3676

                        About Antioch Co.

The Antioch Co. -- http://www.antiochcompany.com/-- owns St.
Cloud-based Creative Memories.  The company was founded in 1926.
It consists of operating and business units located in Ohio,
Minnesota, Nevada, and Virginia.  The direct-selling division
encompasses the U.S. and Puerto Rico, Canada, Australia, New
Zealand, Germany, Japan and the United Kingdom, with expansion
planned in other European countries.  The Antioch employs more
than 1,090 people and manufactures, packages and markets more than
3,000 products to tens of thousands of independent sales
consultants and retail dealers.  As reported in the Troubled
Company Reporter on Nov. 17, 2008, The Antioch reached an
agreement with lenders to restructure its debt.  To facilitate
this agreement, Antioch and six of its subsidiaries filed
voluntary petitions for Chapter 11 protection on Nov. 13, 2008
(Bankr. S.D. Ohio Lead Case No. 08-35741).  McDonald Hopkins LLC
represents the Debtors in their restructuring efforts.  The United
States Trustee for Region 9 appointed creditors to serve on an
Official Committee of Unsecured Creditors.  In their summary of
schedules, the Debtors listed US$66,388,321 in total assets and
US$141,142,236 in total liabilities.


ARSNOVO INTERNATIONAL: Claims Registration Period Ends Jan. 16
--------------------------------------------------------------
Creditors of Arsnovo International GmbH have until Jan. 16, 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. 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 Osnabrueck
         Branch N 301
         Nebenstelle
         Kollegienwall 10
         49074 Osnabrueck
         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. Frank Krueger
         Sutthauser Str. 394
         49080 Osnabrueck
         Germany
         Tel: 0541-990330
         Fax: 0541-9903310

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

The Debtor can be reached at:

         Arsnovo International GmbH
         Attn: Ralph Mielenbrink, Manager
         Zum Rott 22
         49078 Osnabrueck
         Germany


BALU-HAUSTECHNIK GMBH: Claims Registration Period Ends Feb. 22
--------------------------------------------------------------
Creditors of BALU-Haustechnik GmbH have until Feb. 22, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on March 19, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Neumuenster
         Meeting Hall B.031
         Law Courts
         Boostedter Strasse 26
         Neumuenster
         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:

         Helmut Gattermann
         Strassenbahnring 3
         20251 Hamburg
         Germany

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

The Debtor can be reached at:

         BALU-Haustechnik GmbH
         Attn: Heino Neubieser, Manager
         Bruegger Chaussee 5
         24582 Wattenbek
         Germany


COM4TEAM GMBH: Claims Registration Period Ends February 20
----------------------------------------------------------
Creditors of COM4TEAM GmbH have until Feb. 20, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on March 13, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Syke
         Hall 112
         Hauptstr. 5A
         28857 Syke
         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:

         Jan H. Wilhelm
         Am Markt 1
         28195 Bremen
         Germany
         Tel: 0421/178765
         Fax: 0421/1787665

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

The Debtor can be reached at:

         COM4TEAM GmbH
         Attn: Sascha Kleijn, Manager
         Ruschkamp 1
         28844 Weyhe
         Germany


CONTINENTAL AG: Moody's Downgrades Senior Unsec. Ratings to 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
senior unsecured long-term ratings and to Not Prime from Prime-3
the short-term ratings of Continental AG and its subsidiaries.  At
the same time Moody's assigned a Ba1 Corporate Family Rating.
This concludes the review for downgrade initiated November 7,
2008.  The outlook on the ratings is negative.

Falk Frey, Senior Vice President and lead analyst at Moody's for
Continental AG, commented: "The downgrade of Conti's ratings
reflects another downward revision of the company's expectations
operating performance in fiscal 2008 that will result in weaker
credit metrics than anticipated and far below investment grade
levels.  Given the significant decrease in production volumes
expected in 2009 the improvement in Conti's key financial metrics
is likely to be slower than previously expected by Moody's and
debt repayment will be far behind the pace built in the rating."

Mr. Frey went on to say:" The negative outlook reflects the risks
of further weakening in Conti's credit metrics in 2009, the need
to successfully re-negotiate its financial covenants and the
uncertainty over the strategy of its potential main shareholder,
Schaeffler Group, assuming the transaction is approved by EU."

Downgrades:

Issuer: Continental AG

  -- Multiple Seniority Medium-Term Note Program, Downgraded to a
     range of Ba1 to NP from a range of Baa3 to P-3

Issuer: Continental Rubber of America Corporation

  -- Multiple Seniority Medium-Term Note Program, Downgraded to a
     range of Ba1 to NP from a range of Baa3 to P-3

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

Assignments:

Issuer: Continental AG

  -- Probability of Default Rating, Assigned Ba1
  -- Corporate Family Rating, Assigned Ba1
  -- Multiple Seniority Medium-Term Note Program, Assigned LGD3

Issuer: Continental Rubber of America Corporation

  -- Multiple Seniority Medium-Term Note Program, Assigned LGD3
  -- Senior Unsecured Regular Bond/Debenture, Assigned LGD3

Outlook Actions:

Issuer: Continental AG

  -- Outlook, Changed To Negative From Rating Under Review

Issuer: Continental Rubber of America Corporation

  -- Outlook, Changed To Negative From Rating Under Review

On December 10, Conti has again revised downwards its expectations
for fiscal year 2008, now anticipating an EBIT margin (before the
adjustment for amortization and depreciation of purchase price
allocation, integration and restructuring costs) of 7.5%-8.0%.
The former expectation was an EBIT margin of 8.5% revised from its
original expectation of more than 9.3%.  Moreover, the company has
not ruled out to take a goodwill impairment of up to
EUR1.0 billion for part of the VDO business acquired.

Moody's acknowledges Conti's additional measures to preserve free
cash flow for FY2009, including the consideration to refrain from
dividend payments for fiscal 2008, a reduction in capital
expenditures and R&D spending and the ongoing focus on working
capital management.  Moody's also notes that the company has a
sound business model and solid competitive positions in its
business segments.

The ratings could come under further downward pressure should
visibility of a further deterioration in key credit metrics in
FY2009 arise, exemplified by (i) Debt/EBITDA materially exceeding
4.0x, (ii) RCF/Net Debt falling below 15% and (iii) failure to
generate Free Cash Flow in an amount of around EUR500 million as
well as (iv) a materially negative impact on profitability and
cash flows resulting from a potential bankruptcy filing of one of
the Detroit-3.

Moody's views Conti's cash sources for the next 12 months to be
sufficient to cover its cash needs.  This view is based on the
company's cash position of nearly EUR1.0 billion as of
September 30, 2008, its sizable headroom under its EUR2.5 billion
revolving credit facility maturing August 2012 and the cash flow
generated from operations which should altogether be sufficient to
meet the needs for cash arising from debt maturities, capital
expenditures, working capital and day-to-day needs.  Moody's notes
however that Conti faces substantial refinancing risk from its
EUR3.5 billion credit facility maturing by August 2010.

Moody's last rating action on Conti was to place the Baa3 long-
term and Prime-3 short-term ratings under review for a possible
downgrade on November 7, 2008.

Headquartered in Hanover, Germany, Continental AG - with targeted
annual sales of more than EUR26.4 billion in 2008 - is one of the
top automotive suppliers worldwide in the areas chassis and safety
technology, interior and infotainment and powertrain as well as
the world's fourth-largest manufacturer of passenger and
commercial vehicle tires.  In FY2007 Conti generated consolidated
sales of EUR16.6 billion (including Siemens VDO starting
December 1, 2007).


DEHLER YACHTS: Goes Into Administration; 180 Jobs at Risk
---------------------------------------------------------
Marian Martin at BYM News reports that German yacht builder Dehler
has gone into administration, putting 180 jobs at risk.

Axel Kampmann was appointed as provisional insolvency
administrator of the company Thursday last week, the report
discloses.

According to the report, workers at Dehler instigated the opening
of insolvency proceedings in the Arnsberg District Court.

The report recounts that at the end of October, workers had been
told by Dehler CEO Wilan van den Berg that a EUR4 million bank
guarantee North Rhine Westphalia had ensured the company's future.
However, it became clear Monday last week that the bank's
requirements concerning a second managing director and other
clauses had not been fulfilled and the money would not, therefore,
be available, the report states.

The workers, the report notes, blamed mismanagement for the
company's collapse.  They claimed that although production has
been at low level for some months, there is no lack of orders
simply a lack of capital to purchase materials to fulfill those
orders, the report relates.


ESCADA AG: S&P Junks Long-Term Corp. Credit Rating; Outlook Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on German high-end women's
fashion designer and retailer ESCADA AG to 'CCC+' from 'B-' due to
the company's ongoing operating underperformance.  The outlook is
negative.

At the same time, the senior unsecured debt rating on ESCADA's
EUR200 million note issue due in 2012 was also lowered to 'CCC+'
from 'B-'.  The recovery rating of '3' on the notes remains
unchanged, indicating that lenders can expect meaningful (50%-70%)
recovery in the event of a payment default.

"The downgrade reflects ongoing low consumer confidence linked to
the general economic slowdown, which is increasing the execution
risk associated with management's turnaround program.  This
heightens S&P's concerns regarding ESCADA's ability to improve its
operating profitability and maintain access to its EUR60 million
bilateral credit facilities over the coming quarters," said
Standard & Poor's credit analyst Diego Festa.

In financial year ended October 2008, ESCADA's like-for-like sales
fell by a low double-digit percentage on 2007 figures, leading
EBITDA in the period to plummet by EUR49 million to EUR20 million,
according to ESCADA's preliminary figures.  Declining sales and
profitability in the past four quarters are attributed to the very
weak customer response to the company's Fall/Winter 2008 and
Spring/Summer 2009 collections.  The deterioration of
macroeconomic conditions in key markets is also a compounding
factor.  Debt measures are correspondingly very weak, evidenced by
a ratio of reported gross debt-to-EBITDA in excess of 10x on the
basis of the preliminary results.

Besides working capital needs, the operational recovery and brand
repositioning of the company require further funds to invest in
merchandising, marketing, shop refurbishment, and restructuring.
This means that further support from the shareholders is essential
to improve the company's liquidity position.

There is a possibility that the continuing decline in ESCADA's
operating profits will continue over the coming quarters,
increasing near-term pressures on the company's liquidity
position.  S&P would lower the rating if ESCADA's efforts to
achieve the planned turnaround fail to halt its falling profits,
making available sources insufficient to meet the company's needs
over the next few quarters.  A positive rating action appears
highly unlikely in the short term, given that ESCADA would need to
demonstrate sustainable profitability improvement supported by
adequate liquidity.


LINEATRE VERTRIEBS: Claims Registration Period Ends Feb. 20
-----------------------------------------------------------
Creditors of LINEATRE Vertriebs GmbH & Co. Kg. have until Feb. 20,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11.15 a.m. on Feb. 9, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Memmingen
         Meeting Hall 115
         Ground Floor
         Buxacher Strasse 6
         Memmingen
         Germany

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

The insolvency manager can be reached at:

         Dr. Dieter Schmid (Kanzlei Pluta)
         Karlstrasse 33
         89073 Ulm
         Germany
         Tel: 0731/968800
         Fax: 0731/9688051

The District Court opened bankruptcy proceedings against the
company on Dec. 10, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         LINEATRE Vertriebs GmbH & Co. Kg
         Attn: Schickel Peter and
               Dreyer-Schickel Gabriele, Managers
         Am Sandberg 15
         86865 Markt Wald
         Germany


TEXTILAGENTUR WICKING: Claims Registration Period Ends Jan. 19
--------------------------------------------------------------
Creditors of Textilagentur Wicking GmbH have until Jan. 19, 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 March 2, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Aachen
         Room D 1.409
         Adalbertsteinweg 92
         52070 Aachen
         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. Ralf Sinz
         Heissbergstr. 20-22
         52066 Aachen
         Germany
         Tel: 02411605757
         Fax: 02411605758

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

The Debtor can be reached at:

         Textilagentur Wicking GmbH
         Attn: Roland Wicking, Manager
         Uhlenhorst 20
         52223 Stolberg
         Germany


VAC HOLDING: S&P Lowers Long-Term Corporate Credit Rating to 'B-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Germany-based magnetic materials
manufacturer VAC Holding GmbH to 'B-' from 'B'.  The 'B' short-
term rating was affirmed.  The ratings remain on CreditWatch with
negative implications, where they were originally placed on
Sept. 10, 2008.

"The rating action is the result of VAC's weaker-than-expected
operating and financial performance over the past two quarters,
which has lead to a further tightening of headroom under its
financial covenants," said Standard & Poor's credit analyst Anna
Stegert.

"The CreditWatch status reflects our heightened concerns over the
company's ability to comply with financial covenants over the
coming quarters given that its performance is likely to be
affected by the significantly weaker economic environment, which
is expected to persist well into 2009 and potentially beyond," Ms.
Stegert stated.

The company's performance in 2008 was weaker than expected due to
a decline in demand from four of its nine end markets.  S&P
expects pressures on the company's profitability to increase over
the coming quarters given that it will likely not be able to
adjust its cost base to the quickly deteriorating demand.  This is
expected to constrain cash flow generation in the foreseeable
future.  For the last 12 months ended Sept. 30, 2008, adjusted FFO
to debt decreased to about 6% from 7% at year-end 2007.

As of Sept. 30, 2008, adjusted debt was about EUR347 million,
including reported debt of EUR253 million and adjustments for off-
balance-sheet obligations and debt-like liabilities of EUR115 net
of available cash amounting to about EUR21 million.  As a
consequence, fully adjusted debt to EBITDA for the 12 months ended
Sept. 30, 2008, was about 5.8x, at the same level than year-end
2007.

"At the current rating level, S&P continue to assume that the
company will be successful in renegotiating its covenants to
restore adequate headroom sustainably above 15% before the end of
the first quarter in 2009," said Ms. Stegert.  "At the same time,
the CreditWatch listing signals the significant risk related to
the renegotiation in the currently difficult operating and credit
market conditions that are expected to continue throughout 2009,
and potentially beyond."  S&P expects to resolve the CreditWatch
on VAC in the first quarter of 2009.


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


GLITNIR BANKI: Rebranded Islandsbanki
-------------------------------------
Iceland Review reports that it has been decided that as of
February 20, 2009, Glitnir banki hf will be known as Islandsbanki,
or the Bank of Iceland.

Citing Frettabladid, the report relates that according to the
bank's new director Birna Einarsdottir, the decision had been made
because the brand Glitnir was not reliable anymore.

The report notes the changes will take effect in the coming months
and cost will be kept as low as possible.

                  About Glitnir banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services to
corporation, financial institutions, investors and individuals.

Glitnir banki filed a Chapter 15 petition on November 26, 2008
(Bankr. S.D. N.Y. Case No. 08-14757).  The firm has retained Gary
S. Lee, Esq., at Morrison & Foerster LLP, in New York, as counsel.
In its Chapter 15 petition, the company estimated both its assets
and debts to be than US$1 billion each.


KAUPTHING BANK: Iceland Requests Data on Luxembourg Units
---------------------------------------------------------
Bjorgvin G. Sigurdsson, Iceland's minister for business affairs,
has demanded from Luc Frieden, his counterpart in Luxembourg, that
local authorities grant access to data on the Luxembourg units of
failed Icelandic banks to everyone involved in the investigation
of the collapse, and the events leading up to the collapse of the
Icelandic bank system, Iceland Review reported.

The report recalled Sigurdsson told Morgunbladid that the
Luxembourg unit of Kaupthing bank hf will not be sold until access
to the information has been secured.

"There are extensive interests at stake, also for Luxembourgish
authorities, that Kaupthing [in Luxembourg] will not go bankrupt.
Massive amounts are at stake, a great number of deposits and other
claims that would fall on the Luxembourgish and Belgian state with
very serious consequences for their bank systems," Mr. Sigurdsson
was quoted by the report as saying.

A spokesperson at the Luxembourgish Financial Supervisory
Authority, however, told Morgunbladid that there is nothing
preventing Icelandic and Luxembourgish authorities from
cooperating as long as laws are complied with, the report
recounted.

The report noted that if Kaupthing in Luxembourg goes bankrupt,
old Kaupthing will be held responsible for the unit.  If that
happens, the insolvency process of Kaupthing in Iceland would
become more complicated, the report stated.

According to the report, Iceland's Kaupthing requires ISK20
billion (US$170 million, EUR127 million) in equity to become
operable again.

                       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.


LANDSBANKI ISLANDS: Former Luxembourg Unit Employees Stage Protest
------------------------------------------------------------------
Iceland Review reports that around 70 former employees of
Landsbanki's Luxembourg unit and their families protested outside
the bank Wednesday last week.

According to the report, the employees demanded the term of notice
they were promised and which they are entitled to according to
law.

Citing mbl.is, the report recounts that the employees were
informed that they would receive their salaries from the bank's
bankrupt estate.  The employees, the report states, were asked to
hand in the cell phones and cars that they required for their work
and was part of their salaries Thursday last week.

Landsbanki's remaining employees, however, were not permitted to
participate in the protests, the report notes.

The Luxembourgish association of bankers, Association
Luxembourgeoise des Employes de Banque et Assurance (Aleba), is
going to assist the former Landsbanki employees and are planning
to sue the bank for unlawful layoffs, the report discloses.

The report relates that according to Luxembourgish authorities,
Landsbanki in Luxembourg had gone technically bankrupt on December
12.  The bank had 160 employees, 35 of whom were Icelandic, the
report discloses.

The report adds Frettabladid said protests were also organized
outside Landsbanki branches in Iceland, Frettabladid.

As reported in the TCR-Europe on Dec. 17, 2008, the Commission de
Surveillance du Secteur Financier in a press statement on Friday,
December 12, 2008, said that in accordance with article 61-1 of
the law of 5 April 1993 on the financial sector, as amended, the
Tribunal d'arrondissement de Luxembourg [District Court], sitting
in commercial matters, ordered the dissolution and the winding-up
of Landsbanki Luxembourg S.A.  This winding-up takes place
following the suspension of payments for the bank declared on
October 8, 2008.

Landsbanki Luxembourg S.A. is a subsidiary of the Icelandic
company Landsbanki Islands hf.  The latter has been submitted to
the Icelandic regime for the suspension of payments since
December 5, 2008.

Me Yvette Hamilius, Attorney-at-law, and Mr Franz Prost,
accountant, external auditor and partner at Deloitte S.A. have
been appointed as liquidators by this judgment.  Mrs Karin
Guillaume has been appointed as the official receiver.
Finally, in accordance with Article 61(7) of said law, the
judgment determines the manner in which the winding-up is to be
carried out.

                        About Landsbanki

Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. --
http://www.landsbanki.is/-- is a financial institution.  The Bank
filed for Chapter 15 protection on Dec. 9, 2008 (Bankr. S.D. N.Y.
Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison & Foerster
LLP, represents the Debtor.  When it filed for protection from its
creditors, it listed assets and debts of more than US$1 billion
each.


* ICELAND: IMF Sees Progress on Financial Sector Restructuring
--------------------------------------------------------------
An International Monetary Fund (IMF) mission headed by Mr. Poul
Thomsen on Thursday, December 18, 2008, concluded a four-day visit
to Iceland to review recent financial, economic, and policy
developments.  The review was part of the IMF's Emergency
Financing Mechanism procedures, which were used to expedite the
approval of the Stand-By Arrangement with Iceland on November 19,
2008.  During the visit, the mission had productive meetings with
Iceland's authorities, as well as parliamentarians and various
others representatives of the country's civil society.

In Reykjavik, at the conclusion of the visit, Mr. Thomsen said:

"Iceland's IMF-supported program is advancing well.  The key near-
term objective of stabilizing the krona is being met.  A judicious
monetary policy set the stage for an appreciation of the currency
following the liberalization of controls on current account
transactions and restoration of the interbank foreign exchange
market.  As conditions permit, the focus of monetary policy will
soon turn to developing a comprehensive and well sequenced plan to
lift capital controls and reduce interest rates.

"We also welcome the progress on fiscal policy.  The draft of the
2009 budget is in line with the program.  The authorities have
reiterated their commitment to medium-term fiscal consolidation,
and are on track to lay out a strategy to this end in the very
near future.

"Finally, there has been progress on the restructuring of the
financial sector, but the most crucial work now lies directly
ahead.  A framework has been put in place to engage creditors of
the old banks, an asset recovery strategy has been put in place,
and the groundwork has been laid for a valuation of new and old
bank assets.  Work on the valuation of assets will now need to
commence to bring recapitalization of banks to a conclusion by the
end the first quarter.

"An IMF mission will visit again in early February to conduct the
first formal review under the program."

                   IMF-Supported Program

As reported in the TCR-Europe on Nov. 20, 2008, the Executive
Board of the International Monetary Fund approved a two-year
SDR1.4 billion (about US$2.1 billion) Stand-By Arrangement for
Iceland to support the country's program to restore confidence and
stabilize the economy.  The approval makes SDR560 million (about
US$827 million) immediately available and the remainder in eight
equal installments of SDR105 million (about US$155 million),
subject to quarterly reviews.  The Stand-By Arrangement entails
exceptional access to IMF resources, amounting to 1,190 percent of
Iceland's quota, and was approved under the Fund's fast-track
Emergency Financing Mechanism procedures.

There are three main objectives of the IMF-supported program:

    * to contain the negative impact of the crisis on the
      economy by restoring confidence and stabilizing the
      exchange rate in the near-term;

    * to promote a viable domestic banking sector and safeguard
      international financial relations by implementing a sound
      banking system strategy that is nondiscriminatory and
      collaborative; and

    * to safeguard medium-term fiscal viability by limiting the
      socialization of losses in the collapsed banks and
      implementing an ambitious multi-year fiscal consolidation
      program.

Iceland's economic program envisages that the Fund's Stand-By
Arrangement will fill about 42 percent of the country's
2008-2010 financing gap.  The remainder will be met by official
bilateral creditors.

                  Recent Economic Developments

Iceland's highly leveraged economy was unprepared to withstand the
global financial turmoil.  Over the past several years, a number
of underlying imbalances built up, making the economy vulnerable
to adverse external shocks.  A long home-grown, foreign-funded
boom led to overstretched private sector balance sheets, with high
corporate and household leverage and a large share of foreign
exchange-linked and inflation-indexed debt.  The current account
deficit surged to over 15 percent in each of the past three years,
and inflation soared.  The banking sector relied on the
availability of ample foreign funding to rapidly expand abroad and
accumulated assets amounted to almost 900 percent of GDP by end-
2007.  At the same time, gross external indebtedness reached 550
percent of GDP, largely on account of the banks.

Pressures in international markets and the loss of confidence in
Iceland's financial system in October 2008 led to the collapse of
its three largest banks, Glitnir, Landsbanki, and Kaupthing.  As a
result, key asset prices plummeted: the onshore foreign exchange
market dried up, the krona depreciated by more than 70 percent in
the off-shore market, and the equity market fell by 80 percent.
Severe disruptions in the external payments system threatened to
quickly spread to the real economy.  In response, the government
took a number of initial actions while developing the
comprehensive program that is now supported by the Stand-By
Arrangement.

                      Program Summary

Under the program, the Icelandic economy is expected to adjust
sharply in the near term.  Given the high leverage in the economy
and significant dependence of the private sector on foreign
currency and inflation-indexed debt, the economy is expected to
enter into a serious recession in 2009-10.  The anticipated large
import compression will, however, lead to a rapid swing of the
current account into surplus, providing significant support to the
exchange rate going forward.  Once confidence is restored and
balance sheets readjusted, domestic demand—both investment and
consumption—is projected to rebound strongly in 2011.  Long-term
growth prospects are favorable, in line with Iceland's very strong
fundamentals, not least its highly educated labor force, favorable
investment climate and rich natural resource endowment.

To achieve this outcome, the program focuses on addressing the key
challenges at hand:

    * Preventing further sharp krona depreciation by maintaining
      an appropriately tight monetary policy in the context of a
      flexible exchange rate policy.  Restrictions on capital
      outflows will remain in the near term.

    * Developing a comprehensive and collaborative strategy for
      bank restructuring by

      (i) putting in place an efficient organizational structure
          to facilitate the restructuring process,

     (ii) proceeding promptly with the valuation of banks'
          assets,

    (iii) maximizing asset recovery in the old banks,

     (iv) ensuring the fair and equitable treatment of
          depositors and creditors of the intervened banks, and

      (v) strengthening supervisory practices and the insolvency
          framework.

    * Ensuring medium-term fiscal sustainability.  While
      automatic fiscal stabilizers will be allowed to work in
      full during 2009, the program includes the development of
      a strong medium-term fiscal consolidation plan to be
      launched in 2010.  This effort is needed to deal with the
      very substantial increase in public sector debt that is
      likely as a result of the budgetary cost of recapitalizing
      the banking system fulfilling the deposit insurance
      obligations to depositors in foreign branches of Icelandic
      banks.

Iceland joined the IMF on December 27, 1945; its quota is
SDR117.6 million (about US$173.6 million), and it has no
outstanding use of IMF credits.


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


ALEXANDRIA CAPITAL: Moody's Lowers Ratings on Two Classes to Low-B
------------------------------------------------------------------
Moody's Investors Service downgraded and left under review for
further possible downgrade its ratings of two classes of notes
issued by Alexandria Capital plc under the Series 2004-17 (Karnak
II).

The transaction is a static synthetic CDO^2 referencing five
bespoke corporate CDOs and European ABSs, mainly RMBS of 2001—2004
vintages.  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; and Tribune Company, which filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on December 8, 2008.

Previously the transaction suffered defaults of Delphi Corporation
and Quebecor World, Inc.  The transaction also has a significant
exposure to other corporate names, including General Motors
Corporation which is currently rated C, 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 and ABS CDOs as described in Moody's
Special Reports:

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

  -- 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)

  -- 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)

The rating actions are:

Alexandria Capital plc -- Series 2004-17 -- Karnak II:

(1) EUR20,000,000 "Karnak II" Class A Secured Floating Rate Notes
due 20 December 2009, Series 2004-17A

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: A1
  -- Prior Rating Date: 20 June 2008

(2) EUR20,000,000 "Karnak II" Class C Secured Floating Rate Notes
due 20 December 2009, Series 2004-17C

  -- Current Rating: Ba3, on review for possible downgrade
  -- Prior Rating: Baa1
  -- Prior Rating Date: 20 June 2008


ELVA FUNDING: Moody's Downgrades Ratings on Six Note Classes
------------------------------------------------------------
Moody's Investors Service has downgraded and left on review for
further possible downgrade its ratings of fifteen classes of notes
issued by Elva Funding PLC.

The transaction is a static synthetic CDO referencing 10 mezzanine
corporate credit default swaps and 40 European ABS assets (of
which 11 are currently outstanding).

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's corporate
portfolio in particular, which includes but is not limited to
exposures 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 and Fannie
Mae which was placed into the conservatorship of the U.S.
government on September 8, 2008.

The transaction also has a significant exposure to other corporate
names which continue to deteriorate in the current economic
environment.  This will weigh on the ratings of the tranches in
this transaction.

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

  -- 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 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)

The rating actions are:

Elva Funding PLC:

(1) Series 2004-6 EUR5,000,000 Class A1 Secured Floating Rate
Notes due 2013

  -- Current Rating: Aa1, on review for possible downgrade
  -- Prior Rating: Aaa
  -- Prior Rating Date: 23 July 2004

(2) Series 2004-6 US$5,000,000 Class A2 Secured Floating Rate
Notes due 2013

  -- Current Rating: Aa1, on review for possible downgrade
  -- Prior Rating: Aaa
  -- Prior Rating Date: 23 July 2004

(3) Series 2004-6 EUR30,000,000 Class A3 Secured Fixed Rate Notes
due 2013

  -- Current Rating: Aa1, on review for possible downgrade
  -- Prior Rating: Aaa
  -- Prior Rating Date: 23 July 2004

(4) Series 2004-6 EUR25,000,000 Class B1 Secured Floating Rate
Notes due 2013

  -- Current Rating: A2, on review for possible downgrade
  -- Prior Rating: Aaa, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(5) Series 2004-6 US$5,000,000 Class B2 Secured Floating Rate
Notes due 2013

  -- Current Rating: A2, on review for possible downgrade
  -- Prior Rating: Aaa, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(6) Series 2004-6 EUR5,000,000 Class B3 Secured Fixed Rate Notes
due 2013

  -- Current Rating: A2, on review for possible downgrade
  -- Prior Rating: Aaa, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(7) Series 2004-6 EUR37,500,000 Class C1 Secured Floating Rate
Notes due 2013

  -- Current Rating: Baa3, on review for possible downgrade
  -- Prior Rating: Aa1, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(8) Series 2004-6 US$5,000,000 Class C2 Secured Floating Rate
Notes due 2013

  -- Current Rating: Baa3, on review for possible downgrade
  -- Prior Rating: Aa1, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(9) Series 2004-6 EUR5,000,000 Class C3 Secured Fixed Rate Notes
due 2013

  -- Current Rating: Baa3, on review for possible downgrade
  -- Prior Rating: Aa1, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(10) Series 2004-6 EUR1,000,000 Class D1 (Sub-Class A) Secured
Floating Rate Notes due 2013

  -- Current Rating: Ba2, on review for possible downgrade
  -- Prior Rating: Aa3, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(11) Series 2004-6 EUR6,500,000 Class D1 (Sub-Class B) Secured
Floating Rate/Variable Coupon Notes due 2099

  -- Current Rating: Ba2, on review for possible downgrade
  -- Prior Rating: Aa3, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(12) Series 2004-6 US$2,500,000 Class D2 Secured Floating Rate
Notes due 2013

  -- Current Rating: Ba2, on review for possible downgrade
  -- Prior Rating: Aa3, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(13) Series 2004-6 EUR2,500,000 Class D3 Secured Fixed Rate Notes
due 2013

  -- Current Rating: Ba2, on review for possible downgrade
  -- Prior Rating: Aa2, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(14) Series 2004-6 US$2,500,000 Class E1 Secured Floating Rate
Notes due 2013

  -- Current Rating: Ba3, on review for possible downgrade
  -- Prior Rating: A1, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008

(15) Series 2004-6 EUR2,500,000 Class E2 Secured Floating Rate
Notes due 2013

  -- Current Rating: Ba3, on review for possible downgrade
  -- Prior Rating: A1, on review for possible downgrade
  -- Prior Rating Date: 02 June 2008


ELVA FUNDING: S&P Downgrades Rating on EUR100 Mil. Notes to 'B-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B-' from 'AA' its
credit rating on the EUR100 million and JPY1.1 billion secured
credit-linked floating-rate notes series 2007- 3 (Euclid CDO)
class B2 notes issued by Elva Funding PLC.

These step-up credit-linked notes have a loss threshold that
increases at a predetermined point in the future.  In this
transaction, the subordination increases after seven years.  S&P
assess among other factors the likelihood of breaching the
threshold at different points in time when assigning a rating.

Following downgrades and credit events in the underlying reference
portfolio, S&P's assessment of default risk is now consistent with
a 'B-' rating.


HARRIER FINANCE: Moody's Downgrades Senior Debt and Note Ratings
----------------------------------------------------------------
Moody's downgraded the senior debt and capital note ratings of
structured investment vehicles Harrier Finance Funding and Kestrel
Funding, both vehicles sponsored and backed by WestLB AG and
managed by Brightwater Capital Management, a division of West LB
Asset Management.  Moody's actions are:

Harrier Finance Funding Limited and Harrier Finance Funding (US)
LLC (US$11.7 billion of debt securities affected)

Euro and US Medium Term Note Programmes (US$10.7 billion)

  -- Current Rating: A2 and Prime-1
  -- Prior Rating: Aa1, on review for downgrade and Prime-1

Capital Note Programme (US$988 million)

  -- Current Rating: C
  -- Prior Rating: Caa2, on review for downgrade

Kestrel Funding PLC and Kestrel Funding (US) LLC (US$3.2 billion
of debt securities affected)

Euro and US Medium Term Note Programmes (US$2.9 billion)

  -- Current Rating: A2 and Prime-1
  -- Prior Rating: Aa3, on review for downgrade and Prime-1

Capital Note Programme (US$315 million)

  -- Current Rating: C
  -- Prior Rating: Caa3, on review for downgrade

Harrier Finance and Kestrel Funding are SIVs managed by
Brightwater Capital Management, a fully owned subsidiary of WestLB
AG (A2, Prime-1).  Both vehicles were restructured in November
2007 when the sponsoring bank, WestLB AG, provided them with
funding facilities that permit the redemption of senior debt as it
falls due.

The rating actions are prompted by the continued deterioration in
market value of the asset portfolios of both vehicles.  Harrier's
portfolio market value declined to 72% of par as of 21 November
2008 from 81% on 12 September 2008 and 97% on 2 November 2007.
Kestrel's portfolio market value also declined to 72% of par as of
21 November 2008 from 80.4% on 12 September 2008 and 95.8% on 2
November 2007.

The senior debt ratings of each vehicle are jointly supported by a
commitment from WestLB and the vehicle's asset portfolio.
However, the significant declines in portfolio market value
experienced by both vehicles represent an erosion of the support
provided by the portfolio, leaving senior debt ratings fully
dependent on the performance of WestLB in meeting its obligations
under the funding facilities.  As the capital notes of both
vehicles do not benefit from sponsor support, Moody's view is that
the declines in portfolio market value are likely to lead to
losses to capital notes for both vehicles that are commensurate
with a rating of C.

                           Methodology

For a description of Moody's approach to rating financial
institutions, please see the rating methodology reports Bank
Financial Strength Rating, Global Methodology, February 2007 and
Incorporation of Joint Default Analysis into Moody's Bank Ratings,
March 2007.  To incorporate the joint support provided by WestLB's
rating and each SIV's portfolio, please see the special report
Moody's Approach to Jointly Supported Obligations, November 1997.
In analyzing the SIVs on a standalone basis, Moody's constructed a
cashflow model that incorporates various stressed pricing
scenarios in the event of a liquidation of the asset portfolio.
The model performs a monthly cashflow analysis of each vehicle
across a distribution of possible pricing scenarios for non-cash
assets.

The assets are assumed to be homogenous and non-granular. Each
vehicle's portfolio price is assumed to follow a normal
distribution with mean set at the average price, and standard
deviation determined as follows.  Moody's first computes the
decline from par of the market value of each asset portfolio.
Moody's then set the standard deviation such that the probability
of obtaining a further drop in price of the same magnitude as what
has already been observed is equal to a five-year Aaa probability
of default.

Each portfolio's price is assumed to start at the average level,
stressed to account for differences between sale and mark-to-
market values.  The model then assumes that prices deteriorate to
the price obtained from the distribution over the first four
months.  Thereafter portfolio price returns linearly to par over
twice the weighted average life of the portfolio.

At each simulated point in the future, the model considers that
maturing senior debt and any senior expenses are paid (1) from
available cash, (2) by drawing on any available committed
liquidity facilities, and (3) by liquidating assets.


NEW BOND STREET: S&P Junks Credit Rating of Class A Notes
---------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC-' from 'A' and
removed from CreditWatch negative its credit rating on the class A
notes issued by New Bond Street CDO 2 PLC following downgrades and
CreditWatch negative placements of assets in the underlying
portfolio.

The underlying portfolio comprises U.S. residential mortgage-
backed securities and U.S. collateralized debt obligations of
asset-backed securities.  In S&P's opinion, the further
deterioration in the credit quality of the underlying portfolio
leads S&P to conclude that an increase in expected loss levels for
all rating scenarios is likely, and those losses are not
commensurate with S&P's previous ratings.

The CDO is a hybrid, meaning that it has a cash CDO structure, but
the portfolio contains both cash and synthetic CDO assets.  The
current collateral in the portfolio comprises largely CDOs of ABS
and collateralized loan obligations.  All assets in the portfolio
are U.S. dollar-denominated.


RUBY FINANCE: Moody's Withdraws 'B3' Rating on EUR3 Mil. Notes
--------------------------------------------------------------
Moody's Investors Service has withdrawn its rating of one class of
notes issued by Ruby Finance Plc.

The transaction is a repack of a CLO equity piece.  Under a swap
guaranteed by Lehman Brothers Holdings Inc, on the maturity date
the swap counterparty pays the difference between the principal
amount and any amounts that may have been previously paid to
noteholders from the CLO proceeds.  The rating action follows the
withdrawal of Lehman Brothers Holdings Inc's rating.

Moody's initially analyzed this transaction using primarily the
methodology and its supplements for repackaged securities as
described in Moody's Special Reports:

  -- Repackaged Securities" (October 2001)

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

The rating action is:

Ruby Finance Plc:

(1) Series No: 2007-7 EUR3,000,000 Dynamic Capital Protected Notes
due 2023

  -- Current Rating: WR
  -- Prior Rating: B3 under review for possible downgrade
  -- Prior Rating Date: 17 September 2008


STARTS PLC: Moody's Dowgrades Ratings on Two Note Classes
----------------------------------------------------------
Moody's Investors Service announced it downgraded and left under
review for further possible downgrade its ratings of five classes
of notes issued by Starts (Ireland) plc under Amber Structured
Finance CDO.

The transaction is a synthetic CDO^2 with fixed recovery rates
referencing six managed bespoke corporate CDOs and ABSs, mainly
European RMBS of 2003—2004 vintages.  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; and
two Icelandic banks, specifically Kaupthing Bank hf and Glitnir
Banki hf.  The transaction also has a significant exposure to
other corporate names, including GMAC LLC which is currently rated
C, 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 and ABS CDOs as described in Moody's
Special Reports:

  -- 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)

  -- 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)

The rating actions are:

Starts (Ireland) plc -- Amber Structured Finance CDO:

(1) EUR19,000,000 Series 2004-1 Class A1-E1 Credit-Linked Notes
due 2009

  -- Current Rating: Baa2, on review for possible downgrade
  -- Prior Rating: Aa2
  -- Prior Rating Date: 26 September 2008

(2) EUR48,500,000 Series 2004-2 Class A2-E1 Credit-Linked Notes
due 2009

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: Aa3
  -- Prior Rating Date: 26 September 2008

(3) EUR15,000,000 Series 2004-3 Class B-E1 Credit-Linked Notes due
2009

  -- Current Rating: Caa1, on review for possible downgrade
  -- Prior Rating: Baa2
  -- Prior Rating Date: 26 September 2008

(4) EUR35,000,000 Series 2004-6 Class A2-E2 Credit-Linked Notes
due 2009

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: Aa3
  -- Prior Rating Date: 26 September 2008

(5) Series 2005-1 US$25,000,000 Class A2-D2 Floating Rate Amber
Credit-Linked Notes

  -- Current Rating: Ba2, on review for possible downgrade
  -- Prior Rating: A1
  -- Prior Rating Date: 26 September 2008


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


BANCA DI CREDITO: S&P Downgrades Counterparty Ratings to 'BB/B'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long- and short-term counterparty credit ratings on Banca di
Credito Cooperativo dell'Alta Padovana SCaRL to 'BB/B' from 'BBB-
/A-3' and placed the ratings on CreditWatch with negative
implications, primarily because of the bank's rapidly weakening
financial profile.

The long-term rating benefits from two notches of uplift above the
bank's stand-alone creditworthiness, reflecting potential for
extraordinary liquidity and capital support from the BCC system
through its operating arm Iccrea Banca SpA (A/Stable/A-1).

"The downgrade reflects the consistently rapid deterioration of
Alta Padovana's loan portfolio and the potential for further
deterioration of its credit risk profile, given high concentration
on loans to construction and local real estate developers as well
as weak risk management," said Standard & Poor's credit analyst
Francesca Sacchi.

In addition, the bank's bottom-line profitability is to remain
under pressure from rising credit risk costs and declining
revenues.  S&P has furthermore taken into account the bank's
material weakened liquidity position, given its need to refinance
a significant amount of maturing debt in 2009.

To resolve the CreditWatch placement, S&P will reassess the bank's
ability to refinance its bond maturing in 2009, as well as the
availability of the BCC system to provide liquidity support.  S&P
will also monitor inflows of problematic assets.  S&P expects to
review the bank within the next couple of months, and as a result,
S&P could affirm the ratings or lower them by one or more notches.


ITALFINANCE SECURITIZATION: Moody's Assigns 'Ba1' Rating on Notes
-----------------------------------------------------------------
Moody's Investors Service has taken this rating action on notes
issued by Italfinance Securitization Vehicle S.r.l. (amounts
reflect initial note balance):

  - EUR959,000,000 Series 2005-1-A Asset Backed Floating Rate
    Notes due March 2023, Placed Under Review for Possible
    Downgrade; previously on 9 December 2005 Assigned Aaa;

  - EUR83,000,000 Series 2005-1-B Asset Backed Floating Rate
    Notes due March 2023, Placed Under Review for Possible
    Downgrade; previously on 9 December 2005 Assigned A2;

  - EUR56,000,000 Series 2005-1-C Asset Backed Floating Rate
    Notes due March 2023, Placed Under Review for Possible
    Downgrade; previously on 9 December 2005 Assigned Baa3; and

  - EUR18,500,000 Series 2005-1-D Asset Backed Floating Rate
    Notes due March 2023, Placed Under Review for Possible
    Downgrade; previously on 9 December 2005 Assigned Ba1;

The rating action has been prompted by the worse-than-expected
collateral performance.  Moody's expects to conclude the rating
review once Moody's have received additional information and
assessed in detail the effects of the performance on the
outstanding ratings.

ITA 8 is the 12th transaction originated by Banca Italease S.p.A.
(Ba1) (60.6% directly originated by Banca Italease S.p.A. and
39.4% originated by Mercantile leasing, 100% owned by Banca
Italease S.p.A.  The securitized portfolio includes receivables
derived from auto, equipment and real estate lease contracts
(excluding the relative residual value component of the
contracts).  The collateral portfolio has experienced so far
defaults higher than Moody's initially expected.  As of December
2008 reporting date, the transaction has reported a cumulative
default rate of 2.8% of the total securitized pool (40% pool
factor) whereas Moody's initial mean default assumption was in the
range of 2.3% to 2.8% for the life of the transaction.  In
addition, the total delinquency level has increased from 8.08% to
10.21% over the last 2 periods.  The reserve fund has not suffered
any drawing since closing.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  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.


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


AKLIV LLP: Proof of Claim Deadline Slated for February 4
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Akliv insolvent.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

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


BURCH-ALMATY LLP: Creditors Must File Claims by February 4
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Burch-Almaty insolvent on June 13, 2008.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Makataev Str. 196-36
         Almaty
         Kazakhstan
         Tel: 8 (7272) 79-86-66
              8 (7272) 79-86-76
              8 701 795 30-25


IRS-RIG LLP: Claims Filing Period Ends February 4
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP IRS-RIG insolvent.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

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


JAN SHI: Creditors' Claims Due on February 4
--------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Jan Shi Chui insolvent.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Makataev Str. 196-36
         Almaty
         Kazakhstan
         Tel: 8 (7272) 79-86-66
              8 (7272) 79-86-76
              8 701 795 30-25


KAZAKH OIL-PRODUCTS: Claims Registration Ends February 3
--------------------------------------------------------
Jambyl Branch of LLP Kazakh Oil-Products has declared insolvency.
Creditors have until Feb. 3, 2009, to submit proofs of claim to:

         LLP Kazakh Oil-Products
         Suleimenov Str. 96
         Taraz
         Jambyl
         Kazakhstan


KUAT LLP: Proof of Claim Deadline Slated for February 4
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Kuat Company insolvent.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

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


NABI MULTI: Creditors Must File Claims by February 4
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau has
declared LLP Nabi Multi Service insolvent.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         3rd. Floor
         Abai Str. 10a
         Atyrau
         Kazakhstan
         Tel: 8 (71222) 32-90-02


PRODOVOLSTVENNAYA COMPANIYA: Claims Filing Period Ends Feb. 3
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Food Company Prodovolstvennaya Companiya
insolvent on Nov. 6, 2008.

Creditors have until Feb. 3, 2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Krasnoznamenny Polk Str. 37
         Petropavlovsk, 308
         North Kazakhstan
         Kazakhstan


RUSLAN LLP: Creditors' Claims Due on February 3
-----------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Corporation Ruslan insolvent.

Creditors have until Feb. 3, 2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Krasnoznamenny Polk Str. 37
         Petropavlovsk, 308
         North Kazakhstan
         Kazakhstan


TUSMA I LLP: Claims Registration Ends February 4
------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Tusma I insolvent.

Creditors have until Feb. 4, 2009, to submit proofs of claim to:

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


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


SERVICES AVIATION: Creditors Must File Claims by February 3
----------------------------------------------------------
LLC Transport Services Aviation has declared insolvency.
Creditors have until Feb. 3, 2009, to submit written proofs of
claim to:

         LLC Transport Services Aviation
         Micro District 8, 33a-31
         Bishkek
         Kyrgyzstan


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


* LATVIA: Reaches Deal with IMF on EUR1.7 Bln Economic Program
--------------------------------------------------------------
Mr. Dominique Strauss-Kahn, Managing Director of the International
Monetary Fund (IMF), in a press statement on Friday, December 19,
2008, said that an IMF staff mission and the Latvian authorities
have reached agreement, subject to approval by IMF Management and
the Executive Board, on an economic program supported by a 27-
month Stand-By Arrangement for about EUR1.7 billion (US$2.4
billion).

The agreement could go to the Executive Board for approval before
the end of this year under the Fund's fast-track Emergency
Financing Mechanism procedures, Mr. Strauss-Kahn noted.

Mr. Strauss-Kahn stated that under the program the Latvian
authorities are implementing a strong package of policy measures
aimed at stabilizing the economy.  In assembling the financial
support for the authorities' program, the IMF coordinated closely
with the European Union, the World Bank and several Nordic
countries.

He disclosed the EU will provide a loan of EUR3.1 billion (US$4.3
billion), the Nordic countries EUR1.8 billion (US$2.5 billion),
the World Bank EUR400 million (US$557.6 million), the Czech
Republic EUR200 million (US$278.8 million), and the European Bank
for Reconstruction and Development, Estonia, and Poland EUR100
million each (US$139.4 million).

The total financial package amounts to EUR7.5 billion (US$10.5
billion), he added.

Mr. Strauss-Kahn said: "The IMF-supported program aims to
alleviate immediate liquidity pressures, restore long-term
stability, and enhance competitiveness.  It is centered on the
authorities' objective of maintaining the current exchange rate
peg, recognizing that this calls for extraordinarily strong
domestic policies, with the support of a broad political and
social consensus.

"The program includes measures to stabilize the financial sector
and restore depositor confidence.  It will also require a
substantial tightening of fiscal policy, including a headline
fiscal deficit of less that 5 percent of GDP in 2009, compared to
a deficit of 12 percent of GDP if no additional measures were
taken, to reduce financing needs and support an improvement in
competitiveness.  Supporting structural reforms and wage
reductions, led by the public sector, will further strengthen
competitiveness and facilitate external adjustment.

"Expenditure cuts are necessary but should be structured to
support long-term growth and respect social objectives.  The IMF
supports the protection of social spending embedded in the
program.

"These strong policies justify the exceptional level of access to
Fund resources—equivalent to around 1200 percent of Latvia's quota
in the IMF—and deserve the support of the international community.

"With Latvia's commitment to strengthened economic policies, we
expect that banks and other financial institutions operating in
the country will continue to provide adequate financing, and the
key players have made commitments to this effect.

"We will continue assisting the Latvian authorities in their
courageous efforts to adjust in the midst of the global financial
turmoil and we will work closely with them and other stakeholders
as the program unfolds."


===================
L U X E M B O U R G
===================


CARRERA CAPITAL: Moody's Downgrades Capital Note Rating to 'Ba1'
----------------------------------------------------------------
Moody's downgraded the senior debt and capital note ratings of
Carrera, a structured investment vehicle, and kept the rating of
capital notes on review for downgrade.  Carrera is sponsored and
backed by HSH Nordbank AG. Details of Moody's actions are:

Carrera Capital Finance Limited and Carrera Capital Finance LLC

Euro and US Medium Term Note Programmes

  -- Current Rating: Aa3 and Prime-1
  -- Prior Rating: Aaa, on review for downgrade and Prime-1

There are currently no debt securities outstanding under this
program.  Usage of the program is at the discretion of the issuer
as market conditions permit.

Capital Note Programme (US$359 million)

  -- Current Rating: Ba1, on review for downgrade
  -- Prior Rating: Baa2

Carrera Capital is a SIV managed by HSH Nordbank Securities S.A.,
a subsidiary of HSH Nordbank AG (Aa3, Prime-1).  Carrera was
restructured in November 2007 when the sponsoring bank, HSH
Nordbank, provided committed liquidity facilities to support the
vehicle's senior debt.  Liquidity provided by HSH covers all
senior debt and consists of these components: (1) a Note Purchase
and Liquidity Facility, and (2) a Committed Repo Facility.  The
Repo Facility covers two thirds of senior debt, and has a cap on
the margin payable to the facility provider.  The Note Purchase
and Liquidity Facility makes up the balance of senior debt and is
dynamically sized in accordance with outstanding amounts of senior
debt and the size of the Repo Facility.  Both facilities expire on
13 November 2009 and can be canceled by Carrera as well as by HSH.
Upon termination of the Repo Facility by HSH as the counterparty,
the Note Purchase and Liquidity Facility amount will increase by a
corresponding amount.  If HSH as the lender under the Note
Purchase and Liquidity Facility delivers a notice stating that the
facility will not be renewed, Carrera will then draw down the
existing facility in full and use the proceeds to repay senior
debt as it falls due.

The rating action on senior debt is prompted by the continued
deterioration in Carrera's portfolio market value, which had
declined to 77% of par as of 21 November 2008 from 87% on 12
September 2008 and 98% on 2 November 2007.

The senior debt ratings are jointly supported by the obligations
of HSH Nordbank under the liquidity facilities and the vehicle's
asset portfolio.  However, the significant decline in portfolio
market value experienced by the vehicle represents an erosion of
the support provided by the portfolio, leaving senior debt ratings
fully dependent on the performance of HSH Nordbank in meeting its
obligations under the liquidity facilities.

The capital note ratings benefit from the issuer's strategy of
holding assets to maturity since liquidation would otherwise
crystallize losses for this class of investors.  This buy-and-hold
strategy, instituted by the issuer at launch in July 2006, has not
been altered in any way in response to prevailing difficult market
conditions.  Were the issuer to continue with the strategy, the
main risk to capital notes would, in Moody's view, be credit
default and recovery rate risks.  Carrera's asset portfolio has
experienced one default and several downgrades; capital note
ratings have therefore come under stress.  The manager is
exploring remedial steps to address this portfolio credit
deterioration as well as any resulting losses given default.
Moody's review will take into consideration any actions
implemented by the manager.

                           Methodology

In analyzing the SIV on a standalone basis, Moody's constructed a
cashflow model that incorporates various stressed pricing
scenarios in the event of a liquidation of the asset portfolio.
The model performs a monthly cashflow analysis of Carrera across a
distribution of pricing scenarios for non-cash assets.

The assets are assumed to be homogenous and non-granular.

Carrera's portfolio price is assumed to follow a normal
distribution with mean set at the average price, and standard
deviation determined as follows. Moody's first compute the decline
from par of the market value of the asset portfolio.  Moody's then
set the standard deviation such that the probability of obtaining
a further drop in price of the same magnitude as what has already
been observed is equal to a five-year Aaa probability of default.
The portfolio's price is assumed to start at the average level,
stressed to account for differences between sale and mark-to-
market values.  The model then assumes that prices deteriorate to
the price obtained from the distribution over the first four
months.  Thereafter portfolio price returns linearly to par over
twice the weighted average life of the portfolio.

At each simulated point in the future, the model considers that
maturing senior debt and any senior expenses are paid (1) from
available cash, (2) by drawing on any available committed
liquidity facilities, and (3) by liquidating assets.


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


BALLY TECHNOLOGIES: Opens New European Headquarters in Amsterdam
----------------------------------------------------------------
Bally Technologies, Inc. in a press statement on Monday, December
15, 2008, said that it will be opening a new European headquarters
for its sales and service operations, to be located in Amsterdam,
The Netherlands.  The Company also announced a realignment and
expansion of its European sales and service organization to meet
the needs of its expanding presence in the European gaming market.

The new Amsterdam headquarters will house the Company's main
European logistics, warehousing, financial, sales,
production/assembly, and customer-service operations.

"Our new Amsterdam European headquarters will allow us to be more
flexible, responsive, and proactive than ever before in serving
our existing customers in western Europe and growing our customer
base throughout the continent," said John Connelly, Bally's Vice
President of International and Gaming Operations. "Our senior
European sales management team, along with our outstanding
technical support and gaming service personnel, will be even
better equipped to provide our current and future customers with
the kind of superior, best-in-class support they expect from
Bally, a world leader in gaming products and systems technology."

Bally will also open a new sales and service office in Ljubljana,
Slovenia to support an expanding presence in eastern Europe.  The
Company will continue to maintain satellite sales and service
operations centers in Germany, Spain, and the United Kingdom.

In addition, in response to its rapidly expanding Systems business
throughout Europe, Bally will also relocate its Systems Research
and Development and service operations to much larger facilities
in Nice, France.

"Our new offices in Ljubljana will allow us to better serve such
existing Bally Systems customers as the HIT Group, as well as
provide the resources we need to further expand our market
penetration into central and eastern Europe," explained Connelly.
"This is in addition to our existing sales and service centers
located in Spain, England, and Germany."

Bally also appointed former Holland Casinos and Atronic gaming
executive Marcel Heutmekers to the position of Director of Europe.

                   About Bally Technologies

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Mississippi.  The company's South
American operations are located in Argentina.  The company also
has operations in France, Germany, Macau, China, India, and the
United Kingdom.

                          *    *    *

As reported in the TCR-Europe on Oct. 9, 2008, Fitch Ratings
assigned a 'BB+' rating to Bally Technologies, Inc.'s new US$300
million credit facility.  The credit facility rating is two
notches above Bally's 'BB-' Issuer Default Rating due to Fitch's
view of strong over-collateralization of that debt.  The Rating
Outlook is Positive.


IFCO SYSTEMS: S&P Puts 'BB-' Corp. Credit Rating on WatchNeg.
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'BB-'
long-term corporate credit and debt ratings on IFCO Systems N.V.,
the Netherlands-based provider of reusable plastic containers and
pallet management, on CreditWatch with negative implications.

"The CreditWatch placement reflects our heightened concerns over
the company's weakened liquidity since the beginning of the year,
mainly because extraordinary cash drawings have diminished
availability under the revolving credit facility," said Standard &
Poor's credit analyst Izabela Listowska.

Given softening market conditions, the company might find it
difficult to expand its earnings and cash flows and restore its
liquidity to levels adequate for the ratings.

The ratings continue to be constrained by the group's aggressive
financial profile; the high capital requirements to maintain and
expand the asset pool of the relatively stable but seasonal RPC
business; and the group's high exposure to the mature, cyclical,
and low-margin pallet-management business in the U.S.  The ratings
are supported by IFCO's leading niche market positions as Europe's
largest independent supplier of RPCs for the transport of fruit
and vegetables, enhanced by the acquisition of STECO, and its
position as the only recycled-pallet provider in the U.S. with a
nationwide presence.

"In resolving the CreditWatch, S&P will assess the company's
prospects for strengthening its operating performance and
liquidity," said Ms. Listowska.

S&P could lower the ratings if it appears that IFCO's financial
performance and liquidity position are unlikely to improve over
the next few quarters.  S&P expects to resolve the CreditWatch in
the next 90 days.


ROMPETROL GROUP: S&P Keeps 'B+' Cop. Credit Rating; Outlook Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Netherlands-based oil refiner and marketer The
Rompetrol Group N.V. to negative from stable.  At the same time,
the 'B+' long-term corporate credit rating was affirmed.

The outlook revision reflects S&P's view that the flexibility and
willingness of 75% shareholder, Kazakhstan-based JSC NC
KazMunayGas (KMG, BBB-/Negative/--), to continue to support
Rompetrol could decrease as a result of falling crude oil prices,
reduced availability of credit, and Rompetrol's low profitability.
It also reflects Rompetrol's vulnerable stand-alone credit quality
(the rating effectively depends on parental support) and S&P's
negative view of the refining market for 2009-2011.

"The ratings on Rompetrol continue to be supported by its
ownership by KMG.  They include three notches of extraordinary
shareholder support and reflect among other things support that
KMG has already provided in the form of shareholder loans and
crude oil shipments on extended payment terms," said Standard &
Poor's credit analyst Per Karlsson.

"Nevertheless, S&P believes that further support could prove
difficult in view of weaker crude oil prices and tougher tax
conditions in Kazakhstan, which are pressuring KMG's own cash flow
generation and that of other, more strategically important
subsidiaries that may need KMG's support," Mr. Karlsson added.

Rompetrol's stand-alone credit quality (CCC+) is vulnerable. The
company's cash flow generation is extremely weak.  Rompetrol
relies on short-term debt, implying very high liquidity risks.  On
Sept. 30, 2008, short-term debt was high at US$749 million
(according to management).  The group's liquidity position is
particularly susceptible, especially in view of S&P's expectation
that cash flow generation will weaken in 2009.  In 2007, funds
from operations amounted to only US$14 million, while capital
spending was a high US$175 million.  S&P expects some improvement
in FFO in 2008 compared with 2007.  However, S&P expects key
credit ratios to remain very weak.  S&P does not expect FFO to
cover the company's ongoing capital expenditure program.

The outlook is negative and reflects S&P's concern that in the
harsher environment S&P foresees in 2009 and 2010, Rompetrol's
cash flow generation will be substantially lower, while KMG's
capacity to support its subsidiary may come under pressure.


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


ARTSTROY LLC: Creditor Must File Claims by January 12
-----------------------------------------------------
Creditors of LLC Artstroy (Construction) have until Jan. 12, 2009,
to submit proofs of claims to:

Temporary Insolvency Manager:

         N. Surtayev
         Diksona Str.1/203
         660020 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarsk will convene at 9:00 a.m. on
Feb. 20, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. ?33–13704/2008.

The Debtor can be reached at:

         LLC Artstroy
         78 Dobrovolcheskoy brigady Str. 4
         660077 Krasnoayrsk
         Russia


BELOVSKIY MINING: Creditors Must File Claims by February 12
-----------------------------------------------------------
Creditors of LLC Belovskiy Mining Equipment Plant have until
Feb. 12, 2009, to submit proofs of claims to:

         R. Bikinin
         Insolvency Manager
         Aerodromnaya Str. 109
         Belovo
         Kemerovskaya
         Russia

The Arbitration Court of Kemerovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?27–12088/2008,–4.

The Debtor can be reached at:

         LLC Belovskiy Mining Equipment Plant
         Aerodromnaya Str. 109
         Belovo
         Kemerovskaya
         Russia


COAL ENERGY: Altay Bankruptcy Hearing Set February 16
-----------------------------------------------------
The Arbitration Court of Altay will convene on Feb. 16, 2009, to
hear bankruptcy supervision procedure on LLC Coal Energy Company.
The case is docketed under Case No. ??2 - 1069/2008.

The Temporary Insolvency Manager is:

         A. Shchedurskiy
         Post User Box 934
         656050 Barnaul
         Russia

The Debtor can be reached at:

         LLC Coal Energy Company
         Kommunisticheskiy Prospect 53
         Gorno-Altaysk
         Altay
         Russia


GAZPROMBANK MORTGAGE: S&P Junks Ratings on Class B and C Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch
negative and lowered its credit ratings on the notes issued by
Gazprombank Mortgage Funding 2 S.A. (GZP 2).

The rating actions reflect the substantial interest rate and
exchange rate risk the transaction is exposed to following Lehman
Brothers Holdings' insolvency and, in S&P's view, the limited
prospects of finding a replacement for the roles Lehman performed
in the transaction.  The exchange and interest rate risk had been
covered through a cross-currency and interest rate swap provided
by Lehman Brothers Special Financing, with a liquidity
facility provided by Lehman Commercial Paper Inc., both guaranteed
by Lehman.

A notice to noteholders published on the Irish Stock Exchange on
Dec. 8, 2008 contained an update on the attempts made to replace
Lehman as counterparty in the transaction.  In S&P's view, the
notice drew either limited interest from other counterparties to
assume the prior Lehman obligations under the swap, or required a
price to undertake these roles that could not be supported by the
structure.

The collateral underlying the GZP 2 transaction is rouble-
denominated and bears interest at a fixed rate.  The class A2, B,
and C notes are also rouble-denominated and pay a fixed interest
rate in roubles.  The class A1 notes are euro-denominated and pay
a floating rate of interest.  The transaction's exposure to
exchange and interest rate volatility is significant:
notwithstanding the de-leveraging that has occurred since closing,
the class A1 notes currently account for more than 70% of the
total liabilities of the issuer.

On the last three interest payment dates since the Lehman default,
rouble cash flows from the assets were exchanged for euros at the
spot market rate to make the corresponding euro payments due under
the class A1 notes.  However, there is no formal mechanism in the
transaction documentation to guarantee full payment of principal;
therefore S&P would expect any devaluations of the rouble against
the euro (relative to the fixed exchange rate embedded in the
swap) would cause a principal loss for the transaction.

On these latest three IPDs, devaluation of the rouble against the
euro has already caused principal shortfalls, which S&P would
expect to result in ultimate non-payment at maturity.  S&P
understands losses have been averted because the class Dz
noteholders have agreed (on a one-off basis) to divert some of
their junior remuneration to the principal priority of payments to
compensate for principal shortfalls.

S&P ran a series of cash flow model sensitivities to assess the
rating impact of the unhedged transaction, assuming different
combinations of interest rate and exchange rate stresses.  S&P
also assessed the incremental stress connected to the
unavailability of the liquidity facility, which had been
equivalent to 5% of the portfolio at any time.  The analysis did
not incorporate any review of the assumptions in the light of the
recent downgrade of Russia, which had led to the ratings on the
class A1 and A2 being lowered.  This reflects S&P's assessment
that this review of the assumptions would have had a marginal
overall impact in the context.

S&P's analysis led to its opinion that the outstanding classes of
notes cannot be rated higher than 'B'.  The rating action also
factors in S&P's assessment of the likelihood of near term note
default.  Based on the current interest rate mismatch between
assets, S&P is of the view that a modest depreciation of the
rouble should not pose any near-term risk of default on the senior
notes.

                           Ratings List

                Gazprombank Mortgage Funding 2 S.A.
      EUR147 Million And RUB2,082.8 Million Mortgage-Backed
                  Floating- And Fixed-Rate Notes
      (Gazprombank Mortgage Backed Securities Series 2007-1)

       Rating Lowered And Removed From CreditWatch Negative

                               Rating
                               ------
           Class       To                  From
           -----       --                  ----
           A1          B                 BBB/Watch Neg
           A2          B                 BBB/Watch Neg
           B           CCC               BBB-/Watch Neg
           C           CCC               BB-/Watch Neg


ISTA-STROY LLC: Creditors Must File Claims by February 12
---------------------------------------------------------
Creditors of LLC Ista-Stroy (TIN 4341016696) have until Feb. 12,
2009, to submit proofs of claims to:

         V. Bushmanova
         Insolvency Manager
         Volodarskogo Str. 145
         610002 Kirov
         Russia

The Arbitration Court of Kirovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?28-5928/2008,-147/24.

The Debtor can be reached at:

         LLC Ista-Stroy
         Lenina Str. 26b
         Kirovo-Chepetsk
         Russia


JFC GROUP: S&P Junks Corp. Credit Rating on Eroding Liquidity
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term corporate credit rating to 'CCC+ from 'B-' and Russia
national scale rating to 'ruBB' from 'ruBBB-' on Russian fruit
importer and distributor JFC Group Co. Ltd.   The outlook is
negative.

"The downgrade reflects JFC's deteriorating liquidity position.
The company faces a possible covenant breach on its three-year
US$150 million syndicated loan, for which it does not have enough
back-up liquidity sources to satisfy requests for repayment by
creditors," said Standard & Poor's credit analyst Anton Geyze.

JFC has already breached covenants on the syndicated loan, but
managed to negotiate a waiver from syndicate arrangers.  The
company nevertheless had minimal headroom under one of its
covenants for the 12 months ended Sept. 30, 2008.  Additional
waivers are likely to increase JFC's cost of funding and make
interest payments increasingly difficult for the company.

"The negative outlook reflects JFC's risks of noncompliance with
covenants under its syndicated loan facility, which might trigger
a default if the company obtains no waiver or if covenant breach
is followed by a distressed exchange offer," said Mr. Geyze.

S&P factors into the ratings JFC's immature corporate governance
and risk management, and limited transparency and visibility.

The ratings also factor in no further exercise of opportunistic
financial policy.  The current ratings reflect the existing scope
of consolidation and the corporate structure, and do not
incorporate any changes in scope of consolidation.

S&P could revise the outlook to stable if JFC increases headroom
under its covenants and makes it adequate.  S&P will also monitor
whether the group will be able to increase its liquidity cushion
in the form of undrawn amounts under its committed lines.

Covenant breach could lead to a negative rating action as well as
evaporation of support from banks that currently allow JFC to roll
over its significant short-term debt.


KOMI-TRANS-GAS CJSC: Perm Bankruptcy Hearing Set March 18
---------------------------------------------------------
The Arbitration Court of Perm will convene on Mar. 18, 2009, to
hear bankruptcy supervision procedure on CJSC Komi-Trans-Gas.  The
case is docketed under Case No. ?50–14115/2008,-B6.

The Temporary Insolvency Manager is:

         Yu. Svetlakov
         Bereznikovaskaya Str. 75a/12
         618400 Berezniki
         Russia

The Debtor can be reached at:

         CJSC Komi-Trans-Gas
         Geroyev Khasana Str. 7a
         Perm
         Russia


MOSCOW OBLAST: S&P Downgrades Issuer Credit Ratings to 'SD'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
issuer credit ratings on Moscow Oblast to 'SD' from 'B-',
indicating a selective default.  Also S&P lowered the Russia
national scale rating to 'SD' from 'ruBBB-'.  At the same time,
Moscow Oblast's senior unsecured debt ratings on bonds on which
RUR82.6 billion is outstanding were affirmed at 'B-/ruBBB-'.  They
remain on CreditWatch, but the implications were revised to
developing from negative.

According to Standard & Poor's definition, a selective default is
representative of an issuer defaulting selectively--that is,
defaulting on one issue or class of issues, but honoring others in
a timely fashion.  S&P's default definitions include payment
defaults on both rated and unrated financial obligations.

S&P has lowered the issuer credit rating on the oblast to 'SD' as,
on Dec. 15, 2008, it failed to honor its RUR5.2 billion put option
on the bond placed by Moscow Regional Mortgage Agency (MRMA, not
rated), which it 100% owns.  The default was triggered by a court
decision to freeze all payments on the bond as part of an
investigation procedure against a third party, the bond arranger.
Consequently, the court has frozen all transactions with the bond,
including its repayment.

"We view this case as exceptional," said Standard & Poor's credit
analyst Valerie Montmaur.  "Although the oblast has always
declared its willingness to service its put option, the amount of
which is included in the oblast budget for 2008, and had
accumulated cash reserves that exceeded the amount due before the
due date, the legal impediment restricts its ability to honor its
obligations."

Should the ban on transactions with MRMA's bonds be lifted and the
oblast honor its obligations as planned, S&P would review the SD
status.

Notwithstanding, Moscow Oblast has confirmed that it continues to
service its six rated bonds.  S&P therefore considers this default
as selective and have affirmed the ratings on the senior unsecured
debt at 'B-'.

These debt ratings remain on CreditWatch, reflecting the
uncertainty about the oblast's ability to successfully refinance
and redeem the debt obligations of its companies due in the near
term.

However, S&P's revision of the CreditWatch implications to
developing from negative reflects that, so far, the oblast has
serviced all its debts in a timely manner, including direct and
guaranteed debt that has fallen due in recent days, owing to the
successful placement of RUR20 of a planned RUR33 billion bond
issue in December 2008, as well as additional credit line
arrangements with Russian banks.  The developing implications
indicate that the ratings could be raised, affirmed, or lowered.

"We plan to resolve the CreditWatch within next few weeks after
S&P has reviewed the outcome of the oblast's total tax-supported
debt refinancing scheme, which S&P expects it to complete by the
end of 2008, and once S&P gains more visibility on the oblast's
debt burden and financial performance in the medium term," said
Ms. Montmaur.

If the oblast takes on material additional short-term debt to
provide additional support to its companies, this could lead to a
further deterioration in its creditworthiness and to consequent
downgrades of its senior unsecured debt ratings to the 'CCC' or
even 'CC' category.

Conversely, S&P could affirm or raise the oblast's senior
unsecured debt ratings if it succeeds in refinancing its tax-
supported debt in 2008 as planned, extending the debt maturities
and easing the debt burden in the medium term.  The oblast's
capacity to curb its operating expenditure growth in 2009-2010 and
ensure strong budgetary performance in times of persistent
refinancing risks, would also be a key consideration for a
positive rating actions.


MOSCOW REGIONAL: S&P Downgrades Issuer Credit Rating to 'SD'
------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
issuer credit rating on Russia-based Moscow Regional Investment
Trust Co. to 'SD' from 'CC', indicating a selective default.  S&P
also lowered its Russia national scale rating on MRITC to 'SD'
from 'ruCC'.  At the same time, MRITC's senior unsecured debt
rating on two bonds on which Russian ruble (RUR)5.2 billion is
still outstanding was affirmed at 'CC/ruCC' and remains on
CreditWatch with negative implications, where it was originally
placed on Sept. 26, 2008.

According to Standard & Poor's definition, a selective default is
representative of an issuer defaulting selectively--that is,
defaulting on one issue or class of issues, but honoring others in
a timely fashion.  S&P's default definitions include payment
defaults on both rated and unrated financial obligations.

"We have lowered the issuer credit rating on MRITC to 'SD' because
the company missed payment on two unrated banks loans totaling
RUR4 billion, which fell due on Dec. 15, 2008," said Standard &
Poor's credit analyst Valerie Montmaur.  "MRITC has confirmed,
however, that the payments on the two rated senior unsecured bonds
remain current, which is why S&P consider this default as
selective."

MRITC is owned by Moscow Oblast (B-/Watch Neg/--; Russia national
scale rating ruBBB-/Watch Neg/--).  It receives extraordinary
support from the oblast because it arranges financing for the
construction of public infrastructure and manages other public
assets.  The oblast has provided guarantees on most of MRITC's
direct debt obligations and is committed to honor them as
guarantor.

However, under Russian legislation, regions and municipalities may
grant only subordinate guarantees, which Standard & Poor's views
as untimely and conditional.  As a result, the ratings on MRITC's
debt obligations reflect the creditworthiness of the company, and
not that of the guarantor.

The defaulted loan is one of MRITC's obligations guaranteed by the
oblast.  The creditor had planned to roll over the loans, but
finally decided to call upon them on the due date.  Because this
decision was taken unexpectedly, MRITC didn't have enough cash on
its accounts to honor these obligations.  S&P expects Moscow
Oblast to eventually assume its responsibility as a guarantor and
repay these loans, either directly through its budget or via the
company.

"If the oblast repays these loans on behalf of MRITC as planned,
or MRITC is able to renegotiate its loans, thereby restoring its
ability to service all its direct debt obligations on a timely
basis, S&P may revise the ratings on MRITC," said Ms. Montmaur.
S&P understand that one loan of RUR1 billion has already been
repaid and that an extension of the remaining RUR3 billion loan
may be provided shortly.


NATIONAL FACTORING: Moody's Reviews 'Ratings for Possible Cuts
--------------------------------------------------------------
Moody's Investors Service has placed the B2 long term local and
foreign currency ratings of National Factoring Company CJSC and
its E+ bank financial strength rating on review for possible
downgrade.  At the same time, Moody's Interfax Rating Agency,
which is majority-owned by Moody's, has downgraded NFC's long-term
National Scale Rating to Baa1.ru from A3.ru and placed it on
review for possible downgrade.

Moody's rating actions reflect the increased uncertainties with
regard to the company's ability to finance its operations given
its high reliance on wholesale market funding and the continuing
deterioration in market conditions.  By end-May 2009, NFC is due
to repay approximately RUR1.7 billion, or around 35% of its
current liabilities, in funding from third parties, not counting
its Central Bank of Russia short term facility of around
RUB1.3 billion (or around 25% of NFC's liabilities) under the
central bank's limit.  Moody's recognizes that NFC has access to
funding from its sister institution Uralsibbank but cautions that
this is not sizable enough to support the current volumes of its
operations and that a high reliance on a single party, although
related, still carries a degree of uncertainty over the
sustainability of the funding base.  As a result, Moody's believes
that NFC's franchise and bottom-line profitability are likely to
suffer.

Moody's also notes that the bank is likely to experience a
substantial deterioration in asset quality as the majority of its
portfolio is represented by small and medium-sized companies, some
of which operate in the sectors, which are currently among those
most vulnerable to the continuing deterioration in macroeconomic
conditions.

Moody's expects to conclude the review in the coming months after
more clarity is obtained on the ability of the bank to refinance
its obligations, trend in asset quality deterioration and their
influence on performance as well as liquidity profile.

Moody's last rating action on NFC was on December 7, 2007, when
the ratings were assigned at B2/Not-Prime/E+/A3.ru with stable
outlooks.

Based in Moscow, NFC is one of the largest companies in the
Russian factoring sector.  It reported total consolidated assets
of US$406 million and total equity of US$91 million under IFRS as
of June 30, 2008.


PULYUS LLC: Novosibirsk Bankruptcy Hearing Set December 22
----------------------------------------------------------
The Arbitration Court of Novosibirsk will convene on Dec. 22,
2008, to hear bankruptcy proceedings on LLC Pulyus.  The case is
docketed under Case No. ?45–21739/02-SB/4724.

The Insolvency Manager is:

         A. Zaykov
         Post User Box 11
         Vokzalnaya Magistral 16
         630099 Novosibirsk
         Russia

The Debtor can be reached at:

         LLC Pulyus
         Gorbanya Str. 33
         Novosibirsk
         Russia


RUS LLC: Creditors Must File Claims by January 12
-------------------------------------------------
Creditors of LLC Rus Garment Factory (TIN 2635076239) have until
Jan. 12, 2009, to submit proofs of claims to:

         A. Khalizov
         Insolvency Manager
         Apt. 252
         Pirogova Str. 15
         355040 Stavropol
         Russia

The Arbitration Court of Stavropol commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?63–12393/08-S5–28.

The Debtor can be reached at:

         LLC Rus
         Kulakova Prospect 8
         355035 Stavropol
         Russia


SAMREK CJSC: Creditors Must File Claims by January 12
-----------------------------------------------------
Creditors of CJSC Samrek (Construction) have until Jan. 12, 2009,
to submit proofs of claims to:

         G. Kayumova
         Insolvency Manager
         Post User Box 5100
         614030 Perm
         Russia

The Arbitration Court of Perm commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?50–5028/2008,-B-5.

The Debtor can be reached at:

         CJSC Samrek
         Tselinnaya Str. 23
         614056 Perm
         Russia


SCANDINAVIA INSURANCE: A.M. Best Affirms FSR at "B" & ICR at "bb+"
------------------------------------------------------------------
A.M. Best Co. has affirmed the financial strength rating of B
(Fair) and the issuer credit rating of "bb+" of Scandinavia
Insurance Company Limited Liability Company (SIC) (Russia). The
outlook for both ratings is stable.

The ratings of SIC reflect its supportive level of risk-adjusted
capitalization and moderate operating performance. Offsetting
factors are SIC's volatile underwriting performance and declining
business profile.

In A.M. Best's opinion, SIC's risk-adjusted capitalization is
supportive of the current rating, with its capital position
benefiting from a reduction in premium and reserve risk, following
a continued decline in gross premiums written from RUR487 million
in 2005 (US$17 million) to RUR185 million (US$8 million) expected
in 2008.  The deterioration in SIC's profile is the result of the
company restructuring its portfolio, eliminating unprofitable
business and thereby concentrating on its key marine business,
where it has its main expertise.  A.M. Best expects SIC to grow up
to 20% in each of the next two years from a low premium base,
developing and servicing its clients in the local St. Petersburg
market.

The company's operating performance has been moderate with pre tax
profits of RUR58 million (US$2 million) expected in 2008, mainly
arising from investment income.  Underwriting performance has been
volatile, largely arising from fluctuations in the company's
reserves following its changing profile and expense allocation
within group companies.  A.M. Best anticipates the combined ratio
to remain below 95% over the next two years, with its loss ratio
expected to improve to 64% in 2008.

Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health
care service industries, including insurance companies, banks,
hospitals and health care system providers.


TATSINSKIY CANNERY: Creditor Must File Claims by February 12
------------------------------------------------------------
Creditors of OJSC Tatsinskiy Cannery (TIN 6134000074) have until
Feb. 12, 2009, to submit proofs of claims to:

         A. Semenyakov
         Insolvency Manager
         Post User Box 3199
         344092 Rostov-on-Don
         Russia

The Arbitration Court of Rostovskaya will convene on Jan. 23,
2009, to hear bankruptcy proceedings.  The case is docketed under
Case No. ?53–9744/08-S1–8.

The Debtor can be reached at:

         OJSC Tatsinskiy Cannery
         Lenina Str. 81
         Tatsinskaya
         347060 Rostovskaya
         Russia


* RUSSIA: Sets Aside Addt'l RUR150 Bln to Prop Up Real Economy
--------------------------------------------------------------
The Russia government plans to spend an extra RUR150 billion
(US$5.4 billion) to prop up the real sector of the economy amid
the global financial crisis, RIA Novosti reports citing Finance
Minister Alexei Kudrin.

The report relates Mr. Kudrin said in a government meeting that
together with the earlier approved RUR175 billion (US$6.3 billion)
rescue package, support for the real economy will total RUR325
billion (US$11.7 billion)

Mr. Kudrin, however, stressed the Russia's economy had not yet
slipped into recession, the report notes.  He said that the
Russian government had forecast GDP growth of up to 3% in 2009,
the report adds.


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


* Moody's Changes Outlook on Montenegro's Ba2 Rating to Negative
----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the
Government of Montenegro's Ba2 foreign currency bond rating to
negative from stable.

"The Montenegrin economy is being assailed by a triple shock,"
says Kenneth Orchard, Vice-President/Senior Analyst in Moody's
Sovereign Risk Group.  "The global credit crunch has reduced
liquidity in the banking system, the collapse of aluminum prices
is threatening the viability of the country's largest exporter,
and the termination of the international property boom will lead
to a sharp deceleration in foreign direct investment."

Moody's believes the combination of adverse shocks is likely to
have a severe impact on the country's economy, and will weaken the
government's financial strength to an extent that will be
difficult to reverse over the medium term.

Moody's recognizes that a currency crisis per se is impossible, as
Montenegro uses the euro as its official currency.  Nevertheless,
a credit crisis cannot be completely ruled out because using a
currency for which there is no lender of last resort places the
full burden of economic and financial stability upon the
government, specifically upon fiscal policy.

"Unlike in most other countries, the Montenegrin central bank is
unable to provide liquidity support to the banking system in times
of stress because it cannot create euros," explains Mr. Orchard.
"In this context, the government of Montenegro recently agreed to
make a loan to the country's second-largest bank, which was facing
serious liquidity problems."

According to Moody's, the 50% decline in international aluminum
prices over the past five months could also lead directly to
additional stress on the government's balance sheet.  A single
aluminum smelter and associated bauxite mine are responsible for
approximately 15% of Montenegro's GDP and 50% of the country's
merchandise exports.

"Moody's notes that Montenegro's high electricity costs are
resulting in the smelter and mine being commercially unviable at
current market prices for aluminum," says Mr. Orchard.  "Given the
importance of the smelter to the local economy, the government may
be forced to re-nationalize the company if the current owners
decide to close down production.  Such intervention would
inevitably lead to higher public sector debt and a deterioration
of the budget balance."

Moody's also recognizes that property-related foreign direct
investment -- a major driver of economic growth and source of
external financing for the large current account deficit over the
past few years -- is set to fall with the end of the international
property boom.  Lower FDI inflows and external bank financing will
likely force a difficult downward adjustment in domestic demand.

Moody's believes that the triple shock will cause a severe
economic slowdown, increasing pressure on the government's budget
and liquidity.  Montenegro's government debt burden is currently
about average compared to other countries in the region, and its
debt is mostly owed to residents and official creditors at low
interest rates.  However, a higher debt burden would weaken the
government's balance sheet in relative terms, which could move the
credit metrics outside its peer group and potentially lead to a
one-notch downgrade.

On the other hand, Moody's could return the outlook to stable if
the economy and government finances prove to be more resilient to
the recession than expected, and the government engineers a
private sector solution for the banking system and aluminum
industry such that the government's balance sheet is left
relatively unscathed.

In a related action, the outlook on the Ba3 foreign currency bank
deposit ceiling was also changed from stable to negative.

The last rating action on Montenegro was implemented on 12 March
2008, when Moody's assigned first-time ratings to Montenegro of a
Baa1 country ceiling for long-term foreign currency debt and a Ba2
issuer rating for the foreign currency debt obligations of the
government.


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


BONOS DE TITULIZACION: Moody's Puts 'Ba3' Rating on Class C Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive credit ratings
to three classes of "Bonos de Titulizacion de Activos" issued by
VALENCIA HIPOTECARIO 5 Fondo de Titulizacion de Activos, a Spanish
Asset Securitisation Fund that has been created by Europea de
Titulizacion, S.G.F.T, S.A.:

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

Moody's 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 .

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) an 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.
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.


IM SABADELL: Moody's Puts (P)Ba2 Rating on EUR121.8 Mln Notes
-------------------------------------------------------------
Moody's Investors Service has assigned these provisional ratings
to the debt to be issued by IM Sabadell Empresas 3, FTA:

  - (P)Aaa to the EUR1,409.4 million Series A notes;
  - (P)A3 to the EUR208.8 million Series B notes; and
  - (P)Ba2 to the EUR121.8 million Series C notes.

IM Sabadell Empresas 3, FTA is a securitization fund created with
the aim of purchasing a pool of loans granted by Banco de
Sabadell, S.A. (Aa3/P-1/B-) to Spanish enterprises and self-
employed individuals, out of the scope of any public guarantee
program.

According to Moody's, this deal benefits from strong features,
including: (i) a strong swap agreement guaranteeing an excess
spread of 0.25%; (ii) an excess spread-trapping mechanism through
a 12-month "artificial write-off"; (iii) a reserve fund that will
be fully funded upfront to cover a potential shortfall in interest
and principal; (iv) a trigger whereby if Banco de Sabadell's
rating falls below Baa3, a back-up servicer is appointed; and (v)
eligibility criteria that will limit the amount of loans in
arrears (up to 30 days) at closing date and will prevent the
securitization of loans corresponding to the restructuring or
refinancing of debts.

However, Moody's notes that the deal also has weaknesses,
including: (i) high borrower concentration, with the top borrower
representing 9.35% of the issuance amount; (ii) lack of pool
information to assess the pool concentration by group of borrowers
and the occupancy type of mortgaged properties; (iii) regional
concentration in Catalonia (40%); (iv) the deferral of interest
payments on each of Series B and C, which increases the expected
loss on these subordinated series; and (v) the pro-rata
amortization of the B and C Series of notes, which leads to
reduced credit enhancement of the senior series in absolute terms.
These features were reflected in Moody's credit enhancement
calculation.

As of November 2008, the provisional pool of underlying assets
comprised a portfolio of 4,665 loans granted to 4,327 borrowers,
all of which are Spanish corporates or self-employed individuals.
The loans were originated between 1998 and September 2008, and
have a weighted-average seasoning of 2.0 years and a weighted-
average remaining term of 9.2 years.  The weighted-average
interest rate is 5.7%, with the majority of the loans linked to
floating reference rates.  49.5% of the outstanding of the
portfolio is secured by a first-lien mortgage guarantee over
different types of properties (25% residential properties and 9%
land), with a weighted-average loan to value equal to 52%.
Geographically the pool is concentrated in Catalonia (40%), a
natural consequence of the location of the originator.  The pool
is around 39% concentrated in the "buildings and real estate"
sector according to Moody's industry classification.

Moody's has based the provisional ratings primarily on these
factors: (i) an evaluation of the underlying portfolio of loans;
(ii) historical performance and other statistical information;
(iii) the swap agreement hedging the interest rate risk; (iv) the
credit enhancement provided through the GIC accounts, the excess
spread, the reserve fund and the subordination of the notes; and
(v) the legal and structural integrity of the transaction.

Moody's issues provisional ratings in advance of the final sale of
securities, and these ratings only reflect Moody's preliminary
credit opinions regarding the transaction.  Upon a conclusive
review of the final pool of assets and the final documentation,
Moody's will endeavor to assign a definitive rating to the notes.
A definitive rating, if any, may differ from a provisional rating.

The provisional ratings address the expected loss posed to
investors by the legal final maturity (October 2044).  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal at par with respect to the notes on
or before the final legal 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.


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


FORD MOTOR: Will Extend Plant Shutdown to January 12
----------------------------------------------------
Ford Motor Co. decided to extend the shutdown of some of 10 of its
assembly plants for an extra week in January, citing slow sales,
The Associated Press reports.

The AP relates that Ford Motor spokesperson Angie Kozleski said
that the normal two-week holiday shutdown will be extended to
Jan. 12, 2009, at all operating assembly plants except the plant
in Claycomo and the Dearborn truck plant, which will both resume
operations on Jan. 5, 2009.  The two plants, says The AP, make the
F-150 pickup truck.  Claycomo also makes the Ford Escape and
Mercury Mariner, the report states.

According to The AP, Ford Motor will also extend the shutdown at
some engine, transmission and parts stamping plants, or shut
portions of them.

        Ford Not in Loan Pact Talks With Credit Unions

Sharon Terlep at The Wall Street Journal reports that while
General Motors Corp. and Chrysler LLC have entered into loan
agreements with credit unions, Ford Motor isn't in talks on a
similar deal, as it believes its finance arm, Ford Financial, can
meet buyers' needs.

                      About Ford Motor Co.

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

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

                        *     *     *

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

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


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


FERD. HOHNS: Creditors Must File Proofs of Claim by January 5
-------------------------------------------------------------
Creditors owed money by JSC Ferd. Hohns are requested to file
their proofs of claim by Jan. 5, 2009, to:

         Schlosshaldenstrasse 8
         9300 Wittenbach
         Switzerland

The company is currently undergoing liquidation in Wittenbach.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 10, 2008.


GEMAKO LLC: Deadline to File Proofs of Claim Set January 2
----------------------------------------------------------
Creditors owed money by LLC Gemako are requested to file their
proofs of claim by Jan. 2, 2009, to:

         Hans Borner
         Liquidator
         Eugen-Huber-Strasse 163
         8048 Zurich
         Switzerland

The company is currently undergoing liquidation in Stans.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 21, 2008.


IMAGOS LLC: Creditors Have Until January 3 to File Claims
---------------------------------------------------------
Creditors owed money by LLC Imagos are requested to file their
proofs of claim by Jan. 3, 2009, to:

         Claudia Lasser
         Liquidator
         Schaffhauserstrasse 2
         8400 Winterthur
         Switzerland

The company is currently undergoing liquidation in Winterthur.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 12, 2008.


MM FIORI: Proofs of Claim Filing Deadline is February 11
--------------------------------------------------------
Creditors owed money by LLC MM Fiori are requested to file their
proofs of claim by Feb. 11, 2009, to:

         Trust and Consulting Company
         Basso & Partner
         Mail Box 14
         6440 Brunnen
         Switzerland

The company is currently undergoing liquidation in Aesch.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 30, 2008.


SATRAT LLC: Creditors' Proofs of Claim Due by February 7
--------------------------------------------------------
Creditors owed money by LLC SatRAT are requested to file their
proofs of claim by Feb. 7, 2009, to:

         Kirchbergstrasse 98
         3400 Burgdorf
         Switzerland

The company is currently undergoing liquidation in Burgdorf.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 11, 2008.


WEBER SOLPROTECT: January 31 Set as Deadline to File Claims
-----------------------------------------------------------
Creditors owed money by LLC Weber Solprotect are requested to file
their proofs of claim by Jan. 31, 2009, to:

         Ralph Weber
         Liquidator
         Bergstrasse 54
         8303 Bassersdorf
         Switzerland

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


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


DARINA LLC: Creditors Must File Claims by January 3
---------------------------------------------------
Creditors of LLC Trading House Darina (EDRPOU 32504120) have until
Jan. 3, 2009, to submit proofs of claim to:

         Mr. Vladimir Novoseltsev
         Liquidator / Insolvency Manager
         Dobrovolskiy Str. 38/2
         Cherkassy
         Ukraine
         Tel: 8(096)666-63-60

The Arbitration Court of Cherkassy commenced bankruptcy
proceedings against the company after finding it insolvent on
Nov. 4, 2008.

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Trading House Darina
         Shevchenko boulevard, 197
         18000 Cherkassy
         Ukraine


ENERGY OIL: Creditors Must File Claims by January 3
---------------------------------------------------
Creditors of LLC Energy Oil (EDRPOU 32830376) have until Jan. 3,
2009, to submit proofs of claim to:

         Mr. Viacheslav Letskan
         Liquidator
         Apt. 42
         Dovzhenko Str. 16V
         03057 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 2, 2008.
The case is docketed as 43/540.

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

The Debtor can be reached at:

         LLC Energy Oil
         Melnikov Str. 2/10
         Kiev
         Ukraine


INSOL NIK: Creditors Must File Claims by January 3
--------------------------------------------------
Creditors of LLC Insol Nik (EDRPOU 34565960) have until Jan. 3,
2009, to submit proofs of claim to:

         Mr. O. Tomashevsky
         Liquidator / Insolvency Manager
         Office 72
         Rabochaya Str. 7
         Nikolaev
         Ukraine
         Tel: 8(0512)44-72-27

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 5/510/08.

         The Economic Court of Nikolaev
         Admiralskaya Str. 22a
         65009 Nikolaev
         Ukraine

The Debtor can be reached at:

         LLC Insol Nik
         Lenin avenue, 107/1
         Nikolaev
         Ukraine


INTRANS TECH: Creditors Must File Claims by January 3
-----------------------------------------------------
Creditors of LLC Intrans Tech (EDRPOU 35722434) have until Jan. 3,
2009, to submit proofs of claim to:

         Mr. O. Tomashevsky
         Liquidator / Insolvency Manager
         Office 72
         Rabochaya Str. 7
         Nikolaev
         Ukraine
         Tel: 8(0512)44-72-27

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 5/504/08.

         The Economic Court of Nikolaev
         Admiralskaya Str. 22a
         65009 Nikolaev
         Ukraine

The Debtor can be reached at:

         LLC Intrans Tech
         Sadovaya Str. 6-D
         Nikolaev
         Ukraine


KANKOR LLC: Creditors Must File Claims by January 3
---------------------------------------------------
Creditors of LLC Kankor (EDRPOU 30826237) have until Jan. 3, 2009,
to submit proofs of claim to:

         Mr. O. Tomashevsky
         Liquidator / Insolvency Manager
         Office 72
         Rabochaya Str. 7
         Nikolaev
         Ukraine
         Tel: 8(0512)44-72-27

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 5/511/08.

         The Economic Court of Nikolaev
         Admiralskaya Str. 22a
         65009 Nikolaev
         Ukraine

The Debtor can be reached at:

         LLC Kankor
         Heroes of Stalingrad avenue, 113-A
         Nikolaev
         Ukraine


KRAMATORSK BREWERY: Creditors Must File Claims by January 3
-----------------------------------------------------------
Creditors of CJSC Kramatorsk Brewery (EDRPOU 0539653) have until
Jan. 3, 2009, to submit proofs of claim to:

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

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 42/210B.

The Debtor can be reached at:

         CJSC Kramatorsk Brewery
         Mayakovsky Str. 3
         Kramatorsk
         Donetsk
         Ukraine


PRAKTIK-SERVICE LLC: Creditors Must File Claims by Jan. 3
---------------------------------------------------------
Creditors of LLC Praktik-Service (EDRPOU 33997742) have until
Jan. 3, 2009, to submit proofs of claim to:

         Private Enterprise Legal Bureau Kharchenko
         Liquidator:
         Melnikov Str. 12
         04050 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 25, 2008.
The case is docketed as 44/366-b.

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

The Debtor can be reached at:

         LLC Praktik-Service
         P. Lumumba Str. 15
         01042 Kiev
         Ukraine


TECHNOBUILDINGSERVICE LLC: Creditors Must File Claims by Jan. 3
---------------------------------------------------------------
Creditors of declared LLC Building House Technobuildingservice
(EDRPOU 34881328) have until Jan. 3, 2009, to submit proofs of
claim to:

         LLC Meta Agro
         Liquidator
         Apt. 31
         Kikvidze Str. 12a
         01103 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 25, 2008.
The case is docketed as 44/416-b.

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

The Debtor can be reached at:

         LLC Building House Technobuildingservice
         Office 197
         Yanvarskogo Vosstaniya Str. 3-b
         01010 Kiev
         Ukraine


UKRTECHNOSERVICE LLC: Creditors Must File Claims by January 3
-------------------------------------------------------------
Creditors of Llc Firm Ukrtechnoservice (EDRPOU 23920648)have until
Jan. 3, 2009, to submit proofs of claim to:

         Mr. V. Vakulenko
         Liquidator
         Apt. 5-A
         Shakespeare Str. 12-A
         61045 Kharkov
         Ukraine
         Tel: 773-01-30

The Arbitration Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 19, 2008.
The case is docketed as B-50/100-08.

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

The Debtor can be reached at:

         LLC Firm Ukrtechnoservice
         Kovtun Str. 1
         Kharkov
         Ukraine


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


APOLLO LTD: Appoints Joint Liquidators from Smith & Williamson
--------------------------------------------------------------
Neil Francis Hickling of Smith & Williamson Limited was appointed
liquidator of Apollo (Birmingham) Ltd. on Dec. 3, 2008, for the
creditors' voluntary winding-up proceeding.

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

         No. 1 St. Swithin Street
         Worcester
         WR1 2PY
         England


ARLO IV: Moody's Downgrades Ratings on Three Classes to Low-B
-------------------------------------------------------------
Moody's Investors Service announced it has downgraded and left on
review for further possible downgrade its ratings of four classes
of notes issued by ARLO IV Limited (Lemar and Rosenheim I CDO).

This transaction is a managed synthetic CDO credit-linked to a
portfolio that comprises 10% of corporate entities and 90% of ABS
securities, of which almost half have already amortized.  The
corporate portion being subject to substitutions by the
Replacement Selector and the ABS portion is static and has fixed
recovery rates of 95%.  Moreover, the current lowest subordination
in this transaction is 0.41%.

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 Fannie
Mae and Freddie Mac, which were placed into the conservatorship of
the U.S. government on September 8, 2008; and two Icelandic banks,
specifically Kaupthing Bank 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 and ABS CDOs as described in Moody's
Special Reports:

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

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

  -- 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)

The rating actions are:

Arlo IV Limited - Lemar and Rosenheim I CDO:

(1) Series 2006-1 (Lemar I -- Class B-2E) EUR10,000,000 Secured
Limited Recourse Credit-Linked Notes due 2013

  -- Current Rating: Ba3, on review for possible downgrade
  -- Prior Rating: Aa2
  -- Prior Rating Date: 17 April 2008

(2) Series 2006-1 (Lemar I -- Class B-3E) EUR10,000,000 Secured
Limited Recourse Credit-Linked Notes due 2013

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: A1
  -- Prior Rating Date: 17 April 2008

(3) Series 2006-1 (Rosenheim I -- Class B-3E) EUR5,000,000
Secured Limited Recourse Credit-Linked Notes due 2013

  -- Current Rating: B1, on review for possible downgrade
  -- Prior Rating: A1
  -- Prior Rating Date: 17 April 2008

(4) Series 2006-1 (Lemar I -- Class C-2E) EUR10,000,000 Secured
Limited Recourse Credit-Linked Notes due 2013

  -- Current Rating: Caa1, on review for possible downgrade
  -- Prior Rating: A3
  -- Prior Rating Date: 17 April 2008


BRITISH AIRWAYS: Merger Talks With Qantas Ends
----------------------------------------------
British Airways Plc's merger talks with Australia's Qantas Airways
Ltd have ended.

Despite the potential longer term benefits to both British Airways
and Qantas, the airlines have not been able to come to agreement
over the key terms of a merger at this time, the U.K.-based
airline said in a statement.

Both airlines will however continue to work together on their
joint business between the UK and Australia and as part of the
oneworld alliance.

Bloomberg News relates the merger talks were called off after the
carriers failed to agree on who would control the new company.

The negotiations were halted after British Airways Chief Executive
Officer Willie Walsh and his Qantas counterpart Alan Joyce
couldn't reach agreement on the ownership split, Tony Cane, a
spokesman for British Airways, was cited by Bloomberg News as
saying.

Disclosure of the negotiations "had created unrealistic
expectations about a ratio that could never have been delivered
given the two relative values of the airlines," Mr. Cane told
Bloomberg News.

British Airways confirmed on December 2, 2008 that it is exploring
a potential merger with Qantas Airways via a dual-listed company
structure.

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

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

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

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

British Airways will continue talks over a merger with Iberia, Mr.
Cane told Bloomberg News on December 18.

                      About British Airways

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

                          *     *     *

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


EDEUS EUROPE: Names Joint Administrators from KPMG
--------------------------------------------------
Allan Watson Graham and Christine Mary Laverty of KPMG LLP were
appointed joint administrators of Edeus Europe Ltd. on Dec. 8,
2008.

The company can be reached through KPMG LLP at:

         2 Cornwall Street
         Birmingham
         B3 2DL
         England


FULHAM ROAD: S&P Withdraws Ratings on Six European CDO Tranches
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
six European synthetic collateralized debt obligation tranches
issued by Fulham Road Finance Ltd.

S&P withdrew the ratings on the class A to F notes following
notification on Dec. 10, 2008 of a noteholders' resolution passed
on June 13, 2005 to approve the substitution of Standard & Poor's
as the rating agency in respect of the notes.

                          Ratings List

                       Ratings Withdrawn


                     Fulham Road Finance Ltd.
         EUR255 million floating-rate credit-linked notes

                                   Rating
                                   ------
               Class       To                  From
               -----       --                  ----
               A           NR                  AAA
               B           NR                  AA+
               C           NR                  AA-
               D           NR                  A-
               E           NR                  BBB
               F           NR                  BB+


KAUPTHING SINGER: Tynwald Okays GBP11 Mln Payment Scheme to Savers
------------------------------------------------------------------
iomtoday.co.im reports that Tynwald last week approved in
principle a scheme to provide a payment of GBP1,000 payment to
depositors of Kaupthing Singer and Friedlander (Isle of Man).

Tynwald, iomtoday.co.im relates, voted for the scheme in principle
20 votes to one in the House of Keys and by six votes to 0 in the
Legislative Council.

Peter Karran (Lib Vannin, Onchan), however, voted against the
scheme, iomtoday.co.im discloses.

Mr. Karran, as cited by iomtoday.co.im, said he was "very
concerned" that a "dangerous principle" had been set that could
"come back to visit us in the long term".

According to iomtoday.co.im, the GBP11 million cost of the scheme
would be funded out of reserves but the GBP1,000 would be taken
off any further settlement reached for each depositor.

iomtoday.co.im notes payments are expected to be made in the
latter part of January.

Manx Radio recounts Treasury Minister Allan Bell stressed the
payment wouldn't trigger the Depositors' Compensation Scheme and
wouldn't be duplicated in any future payments.

     About Kaupthing Singer & Friedlander (Isle of Man) Ltd.

Kaupthing Singer & Friedlander (Isle of Man) Ltd. --
http://www.kaupthingsingers.co.im/-- is the UK subsidiary of
Iceland-based Kaupthing Bank hf.

On Oct. 9, 2008, the Isle of Man Court made a provisional
liquidation order in relation to Kaupthing Singer & Friedlander
(Isle of Man).  Subsequently, Michael Simpson of
PricewaterhouseCoopers was appointed as provisional liquidator of
the bank.

On Oct. 8, 2008, The Isle of Man Financial Supervision Commission
suspended the banking license of Kaupthing Singer & Friedlander
(Isle of Man).


LASER CUTTING: Taps Joint Administrators from PwC
-------------------------------------------------
Lyn L. Vardy and Stephen A Ellis of PricewaterhouseCoopers LLP,
were appointed joint administrators of The Laser Cutting Company
Ltd. on Dec. 9, 2008.

The company can be reached at:

         The Laser Cutting Company Ltd.
         58-64 Catley Road
         Darnall
         Sheffield
         S9 5JF
         England


LEWIS & MAY: Appoints Joint Administrators from Baker Tilly
-----------------------------------------------------------
Alan Lovett and Andrew Sheridan of Baker Tilly Restructuring and
Recovery LLP were appointed joint administrators of Lewis & May
Properties Ltd. on Dec. 8, 2008.

The company can be reached at:

         Lewis & May Properties Ltd.
         Holme Cottage
         Church Lane
         Ruscombe
         Reading
         Berkshire
         RG10 9UA
         England


MARBLE ARCH: S&P Downgrades Ratings on Class D Notes to 'BB'
------------------------------------------------------------
Following a review of Lehman Brothers' participation in Marble
Arch Residential Securitisation No.4 PLC (MARS 4), Standard &
Poor's Ratings Services has lowered and removed from CreditWatch
negative its rating on the class D notes.  S&P has also removed
from CreditWatch negative and affirmed the ratings on the class A,
B, and E notes.  The class C notes remain on CreditWatch negative.

MARS 4 had draws on its reserve funds in March, June, and
September 2008, largely due to the step-up of the A3c detachable
rate coupon and increased losses.  In July 2008, S&P lowered the
rating on the E1c notes to 'B' from BB/Watch Neg.

Lehman Brothers Holdings Inc. is the Bank of England base rate
swap guarantor and the fixed/floating swap guarantor in this
transaction.  S&P placed all the notes issued by MARS 4 on
CreditWatch negative on Sept. 17 following rating actions on
Lehman Brothers.

The BBR and fixed/floating swaps both materially affected the
deal, most noticeably when LIBOR is stressed upward from its
current level.  While the class A, B, and E notes have sufficient
credit enhancement to withstand the absence of the swaps at their
respective rating levels, the class D notes are significantly
impaired.  Therefore, S&P has lowered the rating on the class the
D notes to 'BB' from BBB/Watch Neg.

S&P believes the rating on the class C notes could also be
lowered.  However, the effect of the swaps is not as pronounced
for this class and any rating action will depend on whether or not
the swaps are replaced and the terms of any possible replacement.
The class C notes remain on CreditWatch negative until these
issues are resolved.

                           Ratings List

          Marble Arch Residential Securitisation No. 4 PLC
        EUR100.55 Million, GBP518.2 Million, and US$479 Million
               Mortgage-Backed Floating-Rate Notes
              With An Overissuance Of GBP14.28 Million
             Mortgage-Backed Floating-Rate Notes And
     GBP0.42 Million Mortgage-Backed Deferrable-Interest Notes

       Ratings Lowered And Removed From CreditWatch Negative

                               Rating
                               ------
           Class         To               From
           -----         --               ----
           D1a           BB               BBB/Watch Neg
           D1c           BB               BBB/Watch Neg

      Ratings Removed From CreditWatch Negative And Affirmed

                               Rating
                               ------
           Class         To               From
           -----         --               ----
           A2b           AAA              AAA/Watch Neg
           A2c           AAA              AAA/Watch Neg
           A3c           AAA              AAA/Watch Neg
           A3cDacs       AAA              AAA/Watch Neg
           B1a           AA               AA/Watch Neg
           B1b           AA               AA/Watch Neg
           B1c           AA               AA/Watch Neg
           E1c           B                B/Watch Neg

            Ratings Remaining On CreditWatch Negative

                               Rating
                               ------
           Class         To               From
           -----         --               ----
           C1a           A/Watch Neg      A/Watch Neg
           C1c           A/Watch Neg      A/Watch Neg


RALLY CDO: Moody's Downgrades Ratings on Four Classes of Notes
--------------------------------------------------------------
Moody's Investors Service has downgraded and left on review for
further possible downgrade its ratings of four classes of notes
issued by Rally CDO Limited.

The transaction is a synthetic CDO^2 referencing, US ABS (90% of
the reference portfolio) including RMBS and four corporate CDOs
(10% of the reference portfolio).  The rating actions are a
response to credit deterioration in the underlying corporate
portfolio and, to a lesser extent, to downgrades in the ABS
portfolio.

The reference portfolio 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; Tribune Company, which announced on December 8,
2008 that it is voluntarily restructuring its debt obligations
under the protection of Chapter 11 of the US Bankruptcy Code;
General Motors Corporation whose senior unsecured rating was
downgraded to C by Moody's on December 3, 2008 following the
submission of a restructuring plan to the Senate Banking Committee
and House of Representatives Financial Services Committee on
December 2, 2008; and GMAC LLC whose senior unsecured rating was
downgraded to C by Moody's on November 20, 2008 following GMAC's
launch of debt exchange offerings.

The transaction also has 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:

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

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

  -- 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)

The rating actions are:

Issuer: Rally CDO Limited

(1) US$42,000,000 Class A Floating Rate Notes due 2010

  -- Current Rating: Aa1, on review for possible downgrade
  -- Prior Rating: Aaa
  -- Prior Rating Date: 28 February 2005

(2) US$18,000,000 Class B Floating Rate Notes due 2010

  -- Current Rating: A3, on review for possible downgrade
  -- Prior Rating: Aa2
  -- Prior Rating Date: 11 June 2008

(3) US$12,000,000 Class C Floating Rate Notes due 2010

  -- Current Rating: Ba1, on review for possible downgrade
  -- Prior Rating: A3
  -- Prior Rating Date: 11 June 2008

(4) US$6,000,000 Class D Floating Rate Notes due 2010

  -- Current Rating: B2, on review for possible downgrade
  -- Prior Rating: Ba1
  -- Prior Rating Date: 11 June 2008


TATA MOTORS: In Talks with UK Gov't Over Jaguar State Aid
---------------------------------------------------------
BBC News reports that Business Secretary Lord Mandelson confirmed
that the UK government has held talks with Jaguar Land Rover over
the possibility of state aid for the carmaker.

He, however, noted no decision had yet been made, and there was
not "an open chequebook", the report relates.

"We are analyzing very carefully what is going on in the [car]
sector, and we will make good judgments in good time if it is
appropriate for the government to take any action or if it is
possible for us to do so," Lord Mandelson was quoted by the report
as saying.  "I have had discussions with the owners and management
of Jaguar Land Rover in particular, because they argue that they
are under particular strain."

He stressed Tata, owner of Jaguar Land Rover, had first and
primary responsibility for the carmaker's financial requirements,
the report recounts.

Tata Motors Ltd, which bought Jaguar Land Rover from Ford Motor Co
in June for GBP1.7 billion, declined to comment on talks with the
government, the report adds.

On Dec. 3, 2008, the TCR-Europe reported that according to
BreakingNews.ie Jaguar Land Rover will slash half of its workforce
by the end of the year amid severe global car market conditions.

BreakingNews.ie disclosed the company will lay off around 850 IT
and engineering staff at plants in Castle Bromwich, Solihull,
Whitley, and Gaydon, all in the West Midlands of England.

The company, BreakingNews.ie revealed, employs about 16,000 staff
at plants in the West Midlands and at Halewood, Merseyside.

As reported in the TCR-Europe on Nov. 11, 2008, in the first nine
months of the year combined sales by the two brands fell by 4.7
per cent to 214,480 vehicles.  Jaguar sales grew by 12.9 per cent
but Land Rover lost 9.7 per cent, the report stated.

                        About Tata Motors

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on July
9, 2008, Standard & Poor's Ratings Services kept its 'BB'
corporate credit rating on India's Tata Motors Ltd. On CreditWatch
with negative implications, pending finalization of
the long-term financing plans for funding the company's purchase
of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--).  At
the same time, Standard & Poor's ratings on all Tata Motors' rated
debt remain on CreditWatch with negative implications.

The rating on Tata Motors was lowered on April 4, 2008, to 'BB',
from 'BB+', after the announcement of the agreement with Ford
Motor Co. for the purchase of Jaguar and Land Rover.  Tata Motors
paid about US$2.3 billion in cash for Jaguar and Land
Rover (comprising brands, plants, and intellectual property
rights).  Ford  contributed US$600 million to the Jaguar-Land
Rover (JLR) pension plans.

As reported in the Troubled Company Reporter-Asia Pacific on Dec.
2, 2008, Moody's Investors Service downgraded the corporate family
rating of Tata Motors Ltd to B1 from Ba2.  The outlook remains
negative.

"The rating change reflects the slowdown in demand seen in both
Tata Motors Ltd's domestic and overseas markets.  This translates
into pressure on profitability, and happens at a time when the
company has increased its leverage.  Tata Motors Ltd's financial
flexibility is therefore significantly weakened," Elizabeth Allen,
a Moody's Vice President/Senior Credit Officer said.


TATA STEEL: Corus UK Staff to Lose Anti-Social Shift Premiums
-------------------------------------------------------------
BBC News reports that staff at the Scunthorpe and Teeside plants
of Corus, part of Tata Steel, agreed to a reduction in shift
premiums.

According to the report, 1,400 staff at the two plants will lose
some of the premiums paid for anti-social shifts such as working
overnight after Corus decided to cut production due to falling
steel sales.

The staff will see their pay cut by as much 11.5% as a result of
the reduction in shift premiums, the report states.

Last week, unions at Corus rejected a UK-wide 10% cut in wages,
the report recounts.

Citing a Corus spokesman, the report discloses the company will be
introducing new shift patterns for about a fifth of the workforce
at Scunthorpe from the middle of January.

"Some Scunthorpe employees who receive a shift premium for working
anti-social hours will receive less of a shift premium from
January," the spokesman was quoted by the report as saying.

He, however, noted the pay cut is a temporary measure, the report
relates.

                     About Tata Steel Limited

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/--  is a diversified steel producer.
It has operations in 24 countries and commercial presence in
over 50 countries.  Its operations predominantly relate to
manufacture of steel and ferro alloys and minerals business.
Other business segments comprises of tubes and bearings.  Tata
Metaliks Limited, which is engaged in the business of
manufacturing and selling pig iron, became a subsidiary of the
Company with effect from Feb. 1, 2008.

                         *     *     *

Tata Steel Limited continues to carry a "BB" Standard & Poor's
rating on its of US$750 million and US$500 million senior
unsecured bank loans.

As reported in the Troubled Company Reporter-Asia Pacific on
October 24, 2008, Moody's Investors Service changed Tata Steel
Ltd's outlook on its Ba1 corporate family rating to negative from
stable.  This reflects the change in outlook for Tata Steel UK's
rating (formerly Corus) from stable to negative and the close
linkages between the credit profiles of the two entities.

"The change in outlook reflects the more challenging operating
conditions now facing Tata Steel UK as a result of the likely
deterioration in demand in Europe and the UK in the next 18
months, with declining steel prices and reduced production
volumes," said Ivan Palacios, a Moody's AVP Analyst and lead
analyst for Tata Steel.


WOOLWORTHS PLC: 807 Stores to Close by January 5
------------------------------------------------
The joint administrators to Woolworths Plc has confirmed that the
807 Woolworths stores will close by January 5, 2009, unless a
buyer for the business can be found.  Negotiations for the sale of
the Woolworths retail business as a going concern continue, but
have not yet resulted in a buyer being found.  The stores will be
closed in tranches of 200, with the first tranche set to close to
the public on December 27, and thereafter on
December 30, January 2 with the final stores closing to the public
on January 5, 2009.

Woolworths currently employs 22,000 permanent members of staff and
5,000 temporary and seasonal staff.  The staff will be retained
for a period following the store closures.  The distribution
centers supporting the stores employ about 500 staff and are
likely to close before the end of December.  The Administrators
are working closely with the Redundancy Payments Office and Job
Centre Plus to provide support for all staff, which will include a
fast track process for paying redundancy entitlements.

The administrators revealed that over 300 of the stores are under
offer from a range of third parties, and that there is
considerable interest in the other 500 stores.  The administrators
have also received interest in and offers for the Woolworths brand
name, and the Ladybird and Chad Valley brands.

The closing down sale will see new discounts introduced on over 40
million items with discounts of 20-60% across items in all stores.
50 million new stock items including DVDs, CDs and toys will be
received into stores this week and further discounts will be
applied in due course.

Neville Kahn, joint administrator comments: "While negotiations
for the sale of Woolworths' retail arm remain ongoing, and we
continue to speak to new interested parties, regrettably we have
had to begin a store closure program.  We are extremely grateful
to the staff and management for their support throughout this
difficult time.

"We are confident that we will sell the leases of the 300 stores
currently under offer and are hopeful that our ongoing discussions
with other parties will also prove successful."

Woolworths was placed into administration on November 27, 2008.

                        About Deloitte

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

Deloitte & Touche LLP is the United Kingdom member firm of DTT.

                 About Woolworths Group plc

Headquartered in London, England, Woolworths Group plc (LON:WLW)
-- http://www.woolworthsgroupplc.com/-- is a general merchandise
retailer, and entertainment wholesaler and publisher.  The
Company's business is divided into Retail, and Entertainment
Wholesale and Publishing segments.  Woolworths, Streets Online
Limited, WMS Card Services Limited and Flogistics Limited are
included within the Retail segment, with Entertainment UK Limited,
Disc Distribution Limited and 2entertain Limited being the
constituents of Entertainment Wholesale and Publishing segment.
The stores comprise Woolworths outlets located in small towns and
city suburbs, targeted at meeting basic everyday shopping
requirements, as well as larger stores located on shopping streets
in regional shopping centers.  The product offer covers toys,
children's clothing, events, confectionery, home and
entertainment, and larger stores include a range of home and
children's clothing.


YHC DEVELOPMENTS: Names Joint Administrators from Ernst & Young
----------------------------------------------------------------
Robert Hunter Kelly and Charles Graham John King of Ernst & Young
LLP were appointed joint administrators of YHC Developments Ltd.
on Dec. 4, 2008.

The company can be reached through Ernst & Young LLP at:

         1 Bridgewater Place
         Water Lane
         Leeds
         LS11 5QR
         England


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


* Car Czar May Force Bankruptcy Filing for GM & Chrysler
--------------------------------------------------------
Citing Senator Carl Levin, John Hughes at Bloomberg reports that
the U.S. Treasury may adopt a plan that would let a car czar or
the Treasury secretary force General Motors Corp. and Chrysler LLC
into bankruptcy if the two companies fail to prove that they can
survive without government financial assistance.

Bloomberg relates that the Treasury plan would resemble a measure
that the Congress passed last week that was rejected by the
Senate.  According to the report, Sen. Levin said that GM and
Chrysler would be required to submit viability plans by March 31,
2009, or lose any government support.  The report quoted Senator
Levin as saying, "The power rests in the hands of either the czar
or the Secretary of the Treasury to force bankruptcy by
March 31."

Sen. Levin, states Bloomberg, said that Treasury Secretary Henry
Paulson and his successor would "in effect" be the car czar
because the Treasury Department would supervise the financial
assistance program.  The administration was moving with
"deliberative speed" in considering possible financing for U.S.
automakers, the report says, citing Mr. Paulson.

According to Bloomberg, White House spokesperson Tony Fratto said,
"There will be conditions to any taxpayer financing.  There will
be rigorous oversight to make sure that these companies are doing
what they promised to do, and we want to make sure that everyone
is making the concessions that they're going to have to commit to
make."

              GM-Chrysler Merger Talks Resume

General Motors Corp. has resumed talks with Chrysler LLC on a
possible merger, after Cerberus Capital Management LP said that it
is willing to sell part of its stake in Chrysler, The Wall Street
Journal reports, citing people familiar with the matter.

According to WSJ, Cerberus Capital restarted the talks as cash in
GM and Chrysler become scarce.

Sources said that GM and Chrysler ended the negotiations in early
November, Naoko Fujimura and Dave McCombs at Bloomberg News
relate.

Shawn Langlois at MarketWatch reports that GM spokesperson Tony
Cervone denied the merger negotiations, saying, "We are not in
merger talks with Chrysler.  We stated in November that any talks
related to a potential merger were tabled so we could focus on our
liquidity situation.  That remains the case."  MarketWatch states
that Chrysler spokesperson Shawn Morgan also dismissed the reports
as rumor.


* 80 Automotive Suppliers at Risk of Becoming Insolvent
------------------------------------------------------
Maria Sheahan at Reuters reports that German weekly
Automobilwoche, citing consultancy Roland Berger's industry expert
Marcus Berret, said some 80 automotive suppliers around the world
are at risk of becoming insolvent in the near future.

Reuters relates that according to the magazine, German supplier ZF
Friedrichshafen's chief executive Hans-Georg Haerter said in
particular companies that were bought by private equity firms
could face trouble ahead.

"It will be very sobering for many suppliers when the bills for
October, November and especially December are paid in coming
weeks," Mr. Haerter was quoted by Reuters as saying.


* BOND PRICING: For the Week Dec. 15 to Dec. 19, 2008
-----------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

BELGIUM
-------
Barry Calle SVCS         6.000    07/13/17 EUR    73.68

CYPRUS
------
Abh Financial Lt          8.200    06/25/12 USD    62.33
Alfa MTN Invest           9.250    06/24/13 USD    64.88

FRANCE
------
Alcatel S.A.              4.750    01/01/11     EUR      13.07
                          6.380    04/07/14 EUR    70.08
Altran Technologies S.A.  3.750    01/01/09     EUR      12.87
Axa SA                    8.600    12/15/30 USD    64.03
Calyon                    6.000    06/18/47     EUR      43.25
Credit Agricole           3.750    10/20/20 EUR    71.76
                          4.050    12/22/20 EUR    73.94
Soc Air France            2.750    04/01/20     EUR      18.20
Wavecom S.A.              1.750    01/01/14     EUR      24.31

GERMANY
-------
Bayer AG                  5.000    07/29/2105 EUR    74.15

HUNGARY
-------
Agrokor                7.000     11/23/11 EUR    70.42

IRELAND
-------
Allied Irish Bks          5.250    03/10/25     GBP      71.14
                          5.630    11/29/30 GBP    68.53

Alfa Bank                 8.625    12/09/15 USD     40.92
                          8.635    02/22/17 USD       37.56
Ardagh Glass              7.130    06/15/17 EUR     64.25
Banesto Finance Plc       6.120    11/07/37 EUR     6.12


LUXEMBOURG
----------
Acergy SA                 2.250    10/11/13 USD    57.03
AK Bars Bank              8.250    06/28/10     USD      97.75
                          9.250    06/20/11 USD    97.63
Alrosa Finance            8.880    11/17/14 USD    57.82
Bank of Moscow            7.340    05/13/13 USD    61.98
                          7.500    11/25/15 USD    39.95
                          6.810    05/10/17 USD    36.30
Beverage Pack             8.000    12/15/16 EUR    54.21
                          9.500    06/15/17 EUR    38.21

NETHERLANDS
-----------
ABN Amro Bank N.V.        6.250    06/29/35 EUR    50.79
Aegon N.V.          6.130    12/15/31 GBP    70.29
Air Berlin Finance B.V.   1.500    04/11/27 EUR    20.51
Alfa Bk Ukraine    9.750    12/22/09 USD   100.14
ALB Finance B.V.          8.750    04/20/11 USD      47.54
                          7.880    02/01/12 EUR    36.39
ASM International N.V.    4.250    12/06/11 USD    63.79
                          4.250    12/06/11 USD    59.00
ASML Holding N.V.         5.750    06/13/17     EUR      59.51
Astana Finance            7.880    06/08/10     EUR      98.61
                          9.000    11/16/11 USD    95.19
ATF Capital BV            9.250    02/21/14     USD      57.78
BK Ned Gemeenten      0.500    06/27/18 CAD    67.57
Centercrdt Intl           8.000    02/02/11     USD      54.87
                          8.630    01/30/14 USD    38.41
                          8.630    01/30/14 USD    38.76
Hit Finance B.V.         4.880    10/27/21 EUR    71.08


RUSSIA
------
Sistema Capital           8.880    01/28/11 USD    71.11

SPAIN
-----
Abertis Infra    4.375    03/30/20 EUR    74.88
Auvisa                    4.790    12/15/27 EUR    65.09

UNITED KINGDOM
--------------
Alfa-Bank CJSC   12.000    08/11/11 USD    62.46
Amlin Plc               6.500    12/19/26 GBP    65.89
Anglian Water
  Finance Plc             2.400    04/20/35     GBP      46.43
Aspire Defence            4.670    03/31/40 GBP    61.56
                          4.670    03/31/40 GBP     1.24
Aviva Plc            5.250    10/02/23 EUR    75.32
                          6.880    05/22/38 EUR    63.87
                          6.880    05/20/58 GBP    78.68
Barclays Bank Plc        11.650    05/20/10     USD      60.50
                          5.600    02/22/21 USD    74.48
Beazley Group             7.250    10/17/26 GBP    65.35
BL Super Finance          4.480    10/04/25 GBP    75.03
British Airways Plc       8.750    08/23/16 GBP    81.08
British Land Co    5.010    09/24/35 GBP    74.38
Broadgate Finance Plc     4.850    04/05/31 GBP    81.84
                          5.100    04/05/33 GBP    65.01
CGNU Plc                  6.130    11/16/26 GBP    69.91

                            *********

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 * * *