TCREUR_Public/081229.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 29, 2008, Vol. 9, No. 256

                            Headlines

A U S T R I A

ASSINGER LLC: Claims Registration Period Ends January 5
B&Z RUPACHER: Claims Registration Period Ends January 5
K & G LLC: Claims Registration Period Ends January 5
K&M&B LLC: Claims Registration Period Ends January 5
KOCH LLC: Claims Registration Period Ends January 5

KOCH & PARTNER: Claims Registration Period Ends January 5
L.S.P. LLC: Claims Registration Period Ends January 5


C Z E C H  R E P U B L I C

KEY PLASTICS: Gets Interim Access to US$7MM Wayzata DIP Facility


G E R M A N Y

ADVANCED MULTIMEDIA: Claims Registration Period Ends January 21
AVENUE OSTEUROPA: Moody's Withdraws All Ratings
BB-KRANSERVICE GMBH: Claims Registration Period Ends January 23
CONTINENTAL AG: EU Approves Proposed Acquisition by Schaeffler
GESPENSTERSCHLOSS FILMPRODUKTION: Claims Period Ends Jan. 26

GLOBAL NETWORKS: Claims Registration Period Ends January 27
IKB DEUTSCHE: EU Commission Approves German Support Scheme
NORDLB: EU Commission Approves German Banking Rescue Aid
PREMIERE AG: Reaches Long-Term Financing Deal with News Corp
STUMPF KINOTECHNIK: Claims Registration Period Ends January 21

TECHNIC HOUSE: Claims Registration Period Ends January 23


I C E L A N D

DECODE GENETICS: Terrance McGuire Resigns from Board of Directors


I R E L A N D

FORNAX ECLIPSE: S&P Downgrades Rating on Two Note Classes to Low-B
MAGNOLIA FINANCE: Moody's Lowers Rating on JPY1 Bil. Notes to 'C'
MODERN KITCHENS: Goes Into Examinership; Struggles to Repay Loan

* IRELAND: Unveils Recapitalization Measures for Three Banks


I T A L Y

CORDUSIO SME: S&P Puts Low-B Ratings on EUR337.6MM Floating Notes

* ITALY: EC Approves Aid Scheme for Financial Institutions


K A Z A K H S T A N

KOUNRAD LLP: Proof of Claim Deadline Slated for February 5
MEDIUS-M LLP: Creditors Must File Claims by February 5
SAMARSKOYE-OIL WEST: Claims Filing Period Ends February 10
SI VRES LTD: Creditors' Claims Due on February 5


K Y R G Y Z S T A N

ESKARO-STROY LLC: Creditors Must File Claims by February 12


L A T V I A

* LATVIA: EU Commission Approves Support Scheme for Banks
* LATVIA: EU to Provide Financial Assistance of Up to EUR3.1 Bln


L U X E M B O U R G

AQUARIUS + INVESTMENTS: Moody's Withdraws Caa1 EUR10MM Note Rating
ORCO PROPERTY: Moody's Withdraws 'Caa1' Corporate Family Rating


N O R W A Y

NEMI FORSIKRING: W.R. Berkley Terminates Acquisition Talks
NEMI FORSIKRING: S&P Maintains 'BB' Insurer Strength Rating


R U S S I A

AOEIE IRKUTSKENERGO: Moody's Cuts Corp. Family Rating to 'B3'
BALTIKSTRYDOM PLUS: Bankruptcy Hearing Set February 24
FORD MOTOR: St. Petersburg Plant Halts Production
HOME CREDIT: Moody's Changes Outlook on 'D-' BFSR to Negative
KANSKAYA TABACCO: Bankruptcy Hearing Set January 13

KVANT LLC: Creditors Must File Claims by January 19
MOSTRANSAVTO: S&P Downgrades Long-Term Issuer Rating to 'SD'
OMZ OAO: S&P Suspends 'CCC+' Long-Term Corporate Credit Rating
RUSSIAN FACTORING: S&P Cuts Ratings on 2 Classes of Notes to Low-B
SIBIR-LES LLC: Creditor Must File Claims by January 19

SOV-TEKH-STROY LLC: Bankruptcy Hearing Set March 12
STINGART LLC: Moskovskaya Bankruptcy Hearing Set February 26
TRANS-STROY-INVEST CJSC: Creditors Must File Claims by Feb. 19
URALSKIY LES: Court Names Temporary Insolvency Manager

* MOSCOW OBLAST: Moody's Downgrades Currency Ratings to 'B3'
* OMSK CITY: S&P Withdraws 'B-' Long-Term Issuer Rating
* TVER OBLAST: S&P Puts 'BB- Issuer Rating on CreditWatch Negative


S P A I N

CAJA DE AHORROS: S&P Junks Ratings on Two Classes of Notes

* SPAIN: EC Approves Guarantee Scheme for Credit Institutions


S W E D E N

FORD MOTOR: Moody's Downgrades Senior Unsecured Rating to 'Caa1'
FORD MOTOR: Moody's Downgrades CFR to 'Caa3'; Outlook Negative
GENERAL MOTORS: S&P Won't Raise Credit Rating Above CCC on Loans
GENERAL MOTORS: S&P Downgrades Issue-Level Rating to 'C'


S W I T Z E R L A N D

GENERAL MOTORS: Court Cuts Legal Fees in Investors Settlement
MINJAN JSC: Creditors Must File Proofs of Claim by Jan. 1
ROCHE ADVISER: Deadline to File Proofs of Claim Set Jan. 1
TRIDENT HOLDING: Creditors Have Until Jan. 1 to File Claims
VORICO JSC: Proofs of Claim Filing Deadline is Jan. 1


U K R A I N E

AGRO-PROGRESS LLC: Creditors Must File Claims by January 7
DOKPHARM LLC: Creditors Must File Claims by January 7
DONBASS MECHANICAL: Creditors Must File Claims by January 7
INTERPIPE LTD: S&P Downgrades Corporate Credit Rating to 'SD'
KHARKOV TRACTOR: Creditors Must File Claims by January 7

LVOV INSTRUMENTS: Creditors Must File Claims by January 7
PIUK LTD: Creditors Must File Claims by January 7
TECHNOTON LLC: Creditors Must File Claims by January 7
TENDER GROUP: Creditors Must File Claims by January 7
UKRAINIAN PAPER: Creditors Must File Claims by January 7


U N I T E D   K I N G D O M

ARLO X: Moody's Cuts Rating on EUR10.5 Million Notes to 'Caa1'
BATHSIDE BAY: Appoints Joint Liquidators from Ernst & Young
BOOTH IMPERIAL: Taps Joint Liquidators from BDO Stoy Hayward
BRITISH AIRWAYS: Orders 11 New Generation Fuel Efficient Aircraft
BRITISH ENERGY: EU Clears Proposed Acquisition by France's EdF

CLARIS LIMITED: Moody's Downgrades Ratings on Two Series of Notes
ELDON STREET: Appoints Joint Administrators from PwC
ENVOLVE PARTNERSHIPS: Taps Joint Liquidators from Baker Tilly
EXCEL CAFE: Names Joint Administrators from Tenon Recovery
HIVEMEAD LTD: Taps Joint Administrators from PKF

MADOFF SECURITIES: Grant Thornton Named Provisional Liquidator
NEMUS II: S&P Downgrades Rating on Class F Notes to 'BB'
OFFICERS CLUB: TimeC Buys 118 Stores; 1000 Jobs Secured
ORCHID GROUP: 31 Pubs Sold to Spirit Group; 14 Pubs Closed
TAYLOR WIMPEY: Covenant Testing Date Deferred Until March 31

WHITTARD OF CHELSEA: In Administration; Assets Sold to EPIC
XELO IV: Moody's Cuts Rating on EUR10.5 Million Notes to 'Caa1'
XSTRATA PLC: May Breach Debt Covenants as Coal Prices Tumble
ZAVVI UK: Goes Into Administration Following Supplier's Collapse

* UK: EC Okays Changes to Banking Financial Support Measures

* BOND PRICING: For the Week Dec. 22 to Dec. 26, 2008


                         *********


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


ASSINGER LLC: Claims Registration Period Ends January 5
-------------------------------------------------------
Creditors owed money by LLC Assinger (FN 227169y) have until
Jan. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Stephan Medwed
         Sterneckstrasse 43
         9020 Klagenfurt
         Austria
         Tel: 0463/55 120
         Fax: 0463/55120-31
         E-mail: stephan.medwed@medwed.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Jan. 12, 2009, for the
examination of claims at:

         Land Court of Klagenfurt
         Room 225
         Klagenfurt
         Austria

Headquartered in St. Margareten im Rosental, Austria, the Debtor
declared bankruptcy on Nov. 20, 2008, (Bankr. Case No. 41 S
117/08s).


B&Z RUPACHER: Claims Registration Period Ends January 5
-------------------------------------------------------
Creditors owed money LLC B&Z Rupacher (by FN 277294k) have until
Jan. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Thomas Schuster
         Bamberger Strasse 5
         9400 Wolfsberg
         Austria
         Tel: 04352/36 300
         Fax: 04352/36300-6
         E-mail: office@juri-schuster.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Jan. 12, 2009, for the
examination of claims at:

         Land Court of Klagenfurt
         Room 225
         Klagenfurt
         Austria

Headquartered in Karnten, Austria, the Debtor declared bankruptcy
on Nov. 20, 2008, (Bankr. Case No. 41 S 118/08p).


K & G LLC: Claims Registration Period Ends January 5
----------------------------------------------------
Creditors owed money by LLC K & G (FN 300386w) have until Jan. 5,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Herbert Hochegger
         Brucknerstrasse 4/5
         1040 Wien
         Austria
         Tel: 505 78 61
         Fax: 505 78 61-9
         E-mail: eder@rechtsanwaelte.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Jan. 19, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 20, 2008, (Bankr. Case No. 3 S 133/08s).


K&M&B LLC: Claims Registration Period Ends January 5
----------------------------------------------------
Creditors owed money by LLC K&M&B (FN 289702h) have until Jan. 5,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Georg Unger
         Mariahilfer Strasse 50
         1070 Wien
         Austria
         Tel: 523 62 00 Serie
         Fax: 526 72 74
         E-mail: schulyok-unger@csg.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on Jan. 19, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 21, 2008, (Bankr. Case No. 3 S 139/08y).


KOCH LLC: Claims Registration Period Ends January 5
---------------------------------------------------
Creditors owed money by LLC Koch (FN 35174b) have until Jan. 5,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Thomas Zeitler
         4020 Linz
         Austria
         Tel: 0732-775544-11
         Fax: 0732-775544-10
         E-mail: insolvenz@bzp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:50 a.m. on Jan. 19, 2009, for the
examination of claims at:

         Land Court of Linz
         Room 522
         Linz
         Austria

Headquartered in Steyregg, Austria, the Debtor declared bankruptcy
on Nov. 18, 2008, (Bankr. Case No. 12 S 100/08f).


KOCH & PARTNER: Claims Registration Period Ends January 5
---------------------------------------------------------
Creditors owed money by LLC Koch & Partner (FN 242936i) have until
Jan. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Thomas Zeitler
         Eisenhandstrasse 15
         4020 Linz
         Austria
         Tel: 0732-775544-11
         Fax: 0732-775544-10
         E-mail: insolvenz@bzp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on Jan. 19, 2009, for the
examination of claims at:

         Land Court of Linz
         Room 522
         Linz
         Austria

Headquartered in Steyregg, Austria, the Debtor declared bankruptcy
on Nov. 18, 2008, (Bankr. Case No. 12 S 98/08m).


L.S.P. LLC: Claims Registration Period Ends January 5
-----------------------------------------------------
Creditors owed money by LLC L.S.P. (FN 289813x) have until Jan. 5,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Christiane Pirker
         Hasenhutgasse 9 Haus 3
         1120 Wien
         Austria
         Tel: 817 57 57, 817 57 67
         Fax: 817 57 55 17
         E-mail: Dr.Christiane.Pirker@chello.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Jan. 19, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 20, 2008, (Bankr. Case No. 3 S 137/08d).


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


KEY PLASTICS: Gets Interim Access to US$7MM Wayzata DIP Facility
----------------------------------------------------------------
The Hon. Mary F. Walrath of the United States Bankruptcy
Court for the District of Delaware authorized Key Plastics LLC
and Key Plastics Finance Corp. to access, on an interim basis,
up to US$7 million in postpetition financing under the secured
superpriority debtor-in-possession financing agreement dated
Dec. 15, 2008, with a group of financial institutions led
by Wayzata Investment Partners LLC, as administrative and
collateral agent.

Judge Walrath also authorized the Debtors to use cash collateral
securing repayment of secured loan to the lender.

Wayzata Investment agreed to provide as much as US$20 million in
financing on a final basis.

Under the agreement, the loan will incur interest at 15% and
the default rate is interest rate plus 2% per annum.  The DIP
agreement will mature on the earlier to occur of

  -- Feb. 28, 2009, unless extended by the lenders; or
  -- the effective date of any confirmed plan of reorganization.

The DIP facility is subject to a US$500,000 carve-out to pay fees
and expenses incurred by professionals.

To secure their DIP obligations, the lenders will be granted
superpriority claim against the Debtors with priority over any and
all administrative expenses.

The DIP agreement contains customary and appropriate events of
default.

A full-text copy of the Secured Superpriority Debtor-in-Possession
Financing Agreement dated Dec. 15, 2008, is available for free
at http://ResearchArchives.com/t/s?36ad

A full-text copy of the Collateral Agreement is available for free
at http://ResearchArchives.com/t/s?36ae

A full-text copy of the Guaranty Agreement is available for free
at http://ResearchArchives.com/t/s?36af

                       About Key Plastics

Headquartered in Northville, Michigan, Key Plastics LLC aka Key
Plastics Technology LLC -- http://www.keyplastics.com-- supply
plastic components to the automotive industry.  The Debtors have
24 manufacturing facilities located in the United States, Canada,
Mexico, Germany, Portugal, Spain, the Czech Republic, France,
Slovakia, Italy and China.  According to Bloomberg News, the
company filed for bankruptcy in March 23, 2000, in Detroit and
emerged a year later under the ownership of private-equity firm
Carlyle, Bloomberg said.  The company and Key Plastics Finance
Corp. filed for Chapter 11 protection on December 15, 2008 (Bankr.
D. Del. Case Nos. 08-13326 and 08-13324).  Mark D. Collins, Esq.,
Richards Layton & Finger PA, represents the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed assets and debts between US$100
million to US$500 million each.


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


ADVANCED MULTIMEDIA: Claims Registration Period Ends January 21
---------------------------------------------------------------
Creditors of Advanced Multimedia Trading and Service GmbH have
until Jan. 21, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:35 a.m. on March 4, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Potsdam
         Hall 24
         Justice Center
         Jagerallee 10 - 12
         14469 Potsdam
         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:

         Sebastian Laboga
         Einemstrasse 24
         10785 Berlin
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 16, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Advanced Multimedia Trading and Service GmbH
         Sperlingshof 34
         14624 Dallgow
         Germany

         Attn: Manfred Otto, Manager
         Lotzkat
         Sandstrasse 47
         13593 Berlin
         Germany


AVENUE OSTEUROPA: Moody's Withdraws All Ratings
-----------------------------------------------
Moody's Investors Service has withdrawn all ratings assigned to
Avenue Osteuropa GmbH, including the corporate family rating of
Caa2.  At the same time, Moody's Interfax Rating Agency, which is
majority owned by Moody's withdrew the national scale rating of
B2.ru.  Avenue does not have any outstanding notes rated by
Moody's.

Moody's has withdrawn this rating for business reasons.

Moody's last rating action on Avenue took place 19 December, 2008
when the agency downgraded the corporate family rating to Caa2
from B3 and the national scale rating to B2.ru from Baa2.ru with
negative outlook.

Avenue Group is a contractor for large-scale complex buildings as
well as a residential and commercial real estate developer and
investor in Moscow city center and its regions.  The company's
unaudited accounts reported total revenues of approximately RUR3.7
billion and total assets of RUR20.4 billion as at December 31,
2007.


BB-KRANSERVICE GMBH: Claims Registration Period Ends January 23
---------------------------------------------------------------
Creditors of BB-Kranservice GmbH have until Jan. 23, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Feb. 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 Bielefeld
         Hall 4065
         Fourth Floor
         Gerichtstrasse 66
         33602 Bielefeld
         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:

         Hans-Peter Burghardt
         Bunsenstr. 3
         32052 Herford
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 16, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         BB-Kranservice GmbH
         Junkerstr. 19-23
         32257 Buende
         Germany

         Attn: Franciscus Ludovicus Aertsen, Manager
         Everdijkruis 7
         BEL-2990 Wuustwezel
         Germany


CONTINENTAL AG: EU Approves Proposed Acquisition by Schaeffler
--------------------------------------------------------------
The European Commission has cleared under the EU Merger Regulation
the proposed acquisition of Continental AG, a German manufacturer
of car components, by Schaeffler KG, also of Germany.  After
examining the operation, the Commission concluded that the
transaction would not significantly impede effective competition
in the European Economic Area (EEA) or any substantial part of it.

Schaeffler is a manufacturer of a great number of mainly
mechanical products used in automotive, industrial and aerospace
applications.  Continental supplies electrical products and
systems to the car industry.  Continental also manufactures
industrial rubber products.

The parties' activities do not overlap but to a minor extent their
activities are vertically related, as Schaeffler supplies needle
roller bearings which are used in vehicle components produced by
Continental.

However, the Commission's investigation found that the merged
entity would not have the ability to discriminate against its
competitors in this market, as there are credible alternative
suppliers and needle roller bearings represent only a small cost
factor.

The Commission also carefully examined the potential conglomerate
issues and found that there would be no negative impact on
effective competition resulting from the combination of Schaeffler
and Continental in the supply of components for belt drive systems
and transmission systems.

In a press statement on December 19, Schaeffler said it will now
conclude the takeover without delay.  It will pay EUR75 per share
to the depositary banks of those shareholders who have tendered
their shares to Schaeffler, on or around January 8, 2009.  The
depositary banks will then credit these payments to the
shareholders' accounts.

"The takeover of Continental AG is a decision of far-reaching
strategic importance for the Schaeffler Group.  With Schaeffler
and Continental we're bringing together two excellently positioned
German technology leaders.  This merger will create one of the
most successful global automotive suppliers with outstanding
expertise in the high-growth fields of energy efficiency and
alternative powertrain systems.  It is our target to spearhead the
global market," emphasized Dr. Juergen M. Geissinger, Schaeffler
Group President & CEO.

"The difficult current market situation shows that it was the
right decision to bring together two leading international
automotive suppliers.  In view of the massive changes in our
environment it is necessary to rapidly combine the strengths of
both companies in the automotive sector and to exploit synergies
resulting from new products, processes and in the purchasing
sector without delay.  This is the order of the day and we have to
comply with it to be able to emerge from the crisis with clearly
renewed strength and develop joint performance capacity in order
to create new, future-proof products and solutions," said Dr.
Geissinger.

The shares tendered for sale can be traded up until January 2,
2009.

Headquartered in Hanover, Germany, Continental AG (OTC:CTTAY) --
http://www.conti-online.com/-- is an automotive industry
supplier.  The Company focuses its activities on the development,
production and distribution of products that improve driving
safety, driving dynamics and ride comfort.  It operates in six
main divisions.  Chassis and Safety provides active and passive
driving safety, safety and chassis sensor systems, as well as
chassis components.  Powertrain offers gasoline and diesel
systems, actuators, motor drives and fuel supply, as well as
hybrid electric vehicles systems.  Interior manufactures
information management modules and wireless  mobile devices.
Passenger and Light Truck Tires provides tires for passenger cars,
light trucks, motorcycles and bicycles.  Commercial Vehicle Tires
offers tires for trucks, as well as industrial and off-the-road
vehicles.  ContiTech specializes in the rubber and plastics
technology, offering functional parts, components and systems for
the automotive industry and other sectors.

                      *     *     *

As reported in the TCR-Europe on Dec. 17, 2008, Fitch Ratings
downgraded Continental AG's Long-term Issuer Default and senior
unsecured ratings to 'BB+' from 'BBB-' (BBB minus) and its Short-
term IDR to 'B' from 'F3'.  The Long-term IDR and senior unsecured
ratings have been placed on Rating Watch Negative.


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

Creditors and other interested parties are encouraged to attend
the meeting at 10:55 a.m. on Feb. 23, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Dr. Sven-Holger Undritz
         Jungfernstieg 51
         20354 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 15, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Gespensterschloss Filmproduktion GmbH
         Attn: Dr. Robert Houcken, Manager
         Am Studio 20
         12489 Berlin
         Germany


GLOBAL NETWORKS: Claims Registration Period Ends January 27
-----------------------------------------------------------
Creditors of Global Networks Management GmbH have until Jan. 27,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on March 10, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Insolvency Tribunal
         Hall 3.011
         Fuerstenstr. 21-23
         09130 Chemnitz
         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:

         Bernward Widera
         Buettenstrasse 4
         08058 Zwickau
         Germany

The District Court opened bankruptcy proceedings against the
company on Dec. 15, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Global Networks Management GmbH
         Attn: Tilo Unger, Manager
         Marktstr. 1
         08523 Plauen
         Germany


IKB DEUTSCHE: EU Commission Approves German Support Scheme
----------------------------------------------------------
The European Commission has approved, under EC Treaty state aid
rules, a guarantee, that Germany is granting to IKB Deutsche
Industriebank AG to cover the bank's medium-term refinancing needs
in the financial crisis.  The support aims to ensure that IKB's
restructuring is not impeded by insufficient liquidity.  The
Commission found the measure appropriate to stabilize the bank, in
line with its Guidance Communication on state aid in the financial
crisis as well as its rescue and restructuring guidelines.  The
guarantee is necessary to avoid a serious disturbance in the
German economy and to ensure the continuity of IKB's business
activities.  As it is limited in time and scope to the minimum
necessary to restore the financing, requires an adequate fee level
and ensures the economic viability of IKB, it is compatible with
Article 87.3.b of the EC Treaty.

Competition Commissioner Neelie Kroes said: "The present decision
is an example that our rules are flexible enough to support banks
in the financial crisis even if they have previously received
restructuring aid."

IKB has asked for a guarantee from the German authorities which
they intend to grant in line with the German support scheme for
financial institutions.  However because of its previous
restructuring, an individual notification was required.  On
December 16, 2008, the German authorities notified their plans to
support IKB.

Due to the current financial crisis, IKB experienced difficulties
concerning its refinancing capabilities.  The German authorities
therefore intend to grant a guarantee of at most EUR5 billion on
IKB's newly issued debt.  Germany will receive a market-orientated
remuneration in accordance with the recommendations of the
European Central Bank.

The measure has been previously approved by SoFFin, the Fund
administering the German support scheme for financial institutions
which the Commission has already deemed to be in line with its
Guidance Communication on state aid during the financial crisis.
The Commission acknowledged that the measure comprises state aid
and assessed whether the measure, which occurs in the phase of
restructuring of IKB, would be in line with the rescue and
restructuring guidelines.  It raised no objections, however,
because the support was motivated by purely external events and is
temporary and necessary to help the company to ensure the
restoring of viability.

              About IKB Deutsche Industriebank

IKB Deutsche Industriebank AG -- http://www.ikb.de/-- is a
Germany-based banking company, which specializes in the field of
long-term financing.  It offers a range of financial products and
services directed at medium-sized companies.  The Bank operates
internationally in four business segments: Corporate Lending,
engaged in the credit transactions, mobile leasing, private equity
sectors, as well as offerings of such capital market products as
corporate bonds loans sectors for clients; Real Estate Financing,
which provides customized financing solutions for real estate
projects; Structured Finance, which offers such services as
acquisitions and industrial project financing, and Portfolio
Investments that is involved in the investments in equity
products.  As of March 31, 2008, IKB Deutsche Industriebank AG's
subsidiaries included AIVG Allgemeine Verwaltungsgesellschaft mbH,
IKB Autoleasing GmbH, IKB Finance BV, ZAO IKB Leasing, ISTOS
Grundstueck-Vermietungsgesellschaft mbH & Co. KG, among others.


NORDLB: EU Commission Approves German Banking Rescue Aid
--------------------------------------------------------
The European Commission has approved, under EC Treaty state aid
rules, a guarantee package, that Germany intends to grant to
NordLB to cover the bank's medium-term refinancing needs in the
financial crisis.  The Commission found the measure appropriate to
stabilize the bank, in line with its Guidance Communication on
state aid in the financial crisis.  The guarantee is necessary to
avoid a serious disturbance in the German economy.  The measure is
limited in time and scope, ensures a market- oriented remuneration
and foresees sufficient behavioral safeguards to avoid abuses.
The guarantee is therefore compatible with Article 87.3.b of the
EC Treaty.

Competition Commissioner Neelie Kroes said: "The guarantee program
for NordLB was well designed and complete; therefore, we have been
able to approve it very quickly."

On December 18, Germany notified a guarantee program for NordLB.
The measure is necessary to ensure the bank's refinancing and
lending capacity, in the wake of the financial crisis.

The specificity of the program lies in the fact that the debt for
which the guarantee is received is highly collateralized, which
goes beyond what has been seen in other cases.  The guarantee
program is structured around a special purpose vehicle that
supplies financing to NordLB via securities with a maximum
maturity of three to five years, backed by a very good,
diversified guarantee pool of assets that is constantly reviewed.
In so far that the maximum maturity may go up to five years this
is justified by the structure of NordLB's liabilities.

The German Lander of Lower Saxony and Saxony-Anhalt would provide
state guarantees on the securities and would receive a market-
oriented remuneration, in line with the recommendations of the
European Central Bank.  The Commission found that the program
involved state aid to NordLB.  However, the Commission concluded
that several provisions ensured the adequacy and proportionality
of the measures, in line with the Commission's Guidance
Communication on state aid during the financial crisis.

In particular, the period during which securities may be issued
under the guarantee program is limited to six months and the scope
of the guarantee is limited to new, short or medium term debt.
Finally, Germany made the commitment to report on the
implementation of the guarantee every six months and, in case the
guarantee is drawn, to submit a restructuring plan for NordLB
within six months.


PREMIERE AG: Reaches Long-Term Financing Deal with News Corp
------------------------------------------------------------
News Corporation has reached an agreement with Premiere AG and its
bank syndicate on a new financing structure.

The new financing structure will replace Premiere's current debt
financing and provide additional equity to fund its new strategic
plan.

Under the new financing structure, the existing debt facilities
will be refinanced by EUR525 million of new long-term bank
facilities and News Corporation will backstop capital increases
intended to provide Premiere with gross equity proceeds of EUR450
million as follows:

    * A first equity capital increase is intended to satisfy
      Premiere's short-term funding needs.  It involves the
      issue of up Premiere's short-term funding needs.  It
      involves the issue of up to approximately 10.2 million
      shares out of its existing authorized capital via a rights
      issue and will raise at least EUR25 million.  News
      Corporation will purchase a certain number of shares not
      subscribed for by other shareholders to ensure gross
      proceeds to Premiere of not less than EUR25 million, while
      ensuring that its ownership level will not exceed 29.9
      percent.  The bank syndicate has also agreed to provide up
      to EUR25 million short-term financing in January 2009.
      This interim funding is intended to provide a minimum of
      EUR50 million to satisfy Premiere's funding needs through
      the completion of the second equity capital increase.

    * A second equity capital increase is intended to raise an
      additional amount such that Premiere will receive total
      gross proceeds of EUR450 million from the two equity
      capital increases.  The second equity capital increase
      will also be structured as a rights issue and is expected
      to close in the second quarter of calendar year 2009.

News Corporation has agreed to backstop the second capital
increase, subject to certain conditions, the most important of
which are the availability of the new long-term bank facilities
and an exemption from the Federal Financial Supervisory Office
("BaFin") from the requirement to make a mandatory public offer
for Premiere in the event News Corporation's equity share in
Premiere reaches or exceeds 30 percent.  News Corporation's
commitment is also conditional on approval of the second capital
increase by an extraordinary meeting of Premiere shareholders
which is planned for the first quarter of 2009 as well as certain
customary closing conditions.

According to Brand Republic, loss-making Premiere is in breach of
its lending covenants and needs to raise the cash to see it
through to profitability.

                      EBITDA Outlook

In a TCR-Europe report on October 7, 2008, Premiere said in a
statement its EBITDA result for full year 2008 is expected to be a
loss in the range of EUR40 million to EUR70 million.  This
expected result excludes a possible one-time gain from further
sales of broadcast rights to the 2010 World Cup.

As a result of the EBITDA outlook, Premiere commenced
discussions with its banks regarding a restructuring of debt
facilities and is confident to reach an agreement.

              CFO Alexander Teschner Steps Down

The report disclosed that in October, Alexander Teschner, CFO of
Premiere, asked the Supervisory Board for release from his office.
The Supervisory Board accepted his resignation with immediate
effect.

Citing Mike Esterl and Aaron O. Patrick of The Wall Street
Journal, the report recounted Premiere has struggled since losing
its hold on broadcasting rights to Germany's soccer league.
According to the WSJ reporters, the pay-TV company also is
competing with more than two dozen free TV channels in Germany,
including several state broadcasters that enjoy public financing
while an economic slowdown and rising inflation also are making
German consumers more cautious.

                   About News Corporation

New York-based News Corporation (NYSE: NWS, NWS.A; ASX: NWS,
NWSLV) -- http://www.newscorp.com/-- is a diversified global
media company with operations in eight industry segments: filmed
entertainment; television; cable network programming; direct
broadcast satellite television; magazines and inserts; newspapers
and information services; book publishing; and other.  The
activities of News Corporation are conducted principally in the
United States, Continental Europe, the United Kingdom, Australia,
Asia and Latin America.  The company had total assets as of
September 30, 2008 of approximately US$61 billion and total annual
revenues of approximately US$33 billion.

                     About Premiere AG

Headquartered in Unterfoehring, Germany, Premiere AG --
http://info.premiere.de/-- operates a subscription television
network in Germany and Austria.  Its network is available via
satellite and cable.  The company's service offers channels to
cater for all audiences, including themed channels dedicated to
broadcasting feature films, live sporting events, foreign language
content and children's programming, among others.  A variety of
subscription packages are available for customers interested in
subscribing to certain or all channels within Premiere's
portfolio. One of Premiere's core competencies is Pay-Per-View
television.  Its Premiere Direkt channel broadcasts, sporting
events and adult entertainment, which can be ordered by telephone,
short message service (SMS) text message or over the Internet.  In
addition, the company offers Internet live streaming, including
sport and film/series.  The company also markets advertising space
and promotional opportunities.


STUMPF KINOTECHNIK: Claims Registration Period Ends January 21
--------------------------------------------------------------
Creditors of Stumpf Kinotechnik GmbH have until Jan. 21, 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 4, 2009, at which time the
insolvency manager will present her first report.

The meeting of creditors will be held at:

         The District Court of Darmstadt
         Hall 4.310
         Fourth Floor
         Building D
         Mathildenplatz 15
         64283 Darmstadt
         Germany

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

The insolvency manager can be reached at:

         Julia Kappel-Gnirs
         Bleichstr. 2-4
         60313 Frankfurt
         Germany
         Tel: 069-913092-0
         Fax: 069-913092-30

The District Court opened bankruptcy proceedings against the
company on Dec. 12, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Stumpf Kinotechnik GmbH
         Siemensstrasse 16
         64546 Moerfelden-Walldorf
         Germany

         Attn: Magdalene Zadrozny, Manager
         Gartenstrasse 19
         61476 Kronberg/Taunus
         Germany


TECHNIC HOUSE: Claims Registration Period Ends January 23
---------------------------------------------------------
Creditors of Technic House Trading GmbH have until Jan. 23, 2009,
to register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:00 a.m. on Feb. 11, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court Nordhorn
         Hall 42
         Seilerbahn 15
         48529 Nordhorn
         Germany

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

The insolvency manager can be reached at:

         Andreas Sontopski
         Gnoiener Platz 10
         48493 Wettringen
         Germany
         Tel: 02557/93840
         Fax: 02557/938450

The District Court opened bankruptcy proceedings against the
company on Dec. 12, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Technic House Trading GmbH
         Attn: Pieter Wiemers, Manager
         Jahnstrasse 7
         48529 Nordhorn
         Germany


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


DECODE GENETICS: Terrance McGuire Resigns from Board of Directors
-----------------------------------------------------------------
deCODE genetics, Inc., disclosed in a regulatory filing with the
Securities and Exchange Commission that Terrance G. McGuire
resigned as a director of the company.  deCODE is not aware of any
disagreement between it and Mr. McGuire relating to deCODE's
operations, policies or practices.

deCODE genetics Inc. (Nasdaq: DCGN) -- http://www.decode.com/--
operates as a biopharmaceutical company that applies discoveries
in human genetics to develop drugs and diagnostics for common
diseases.  The company serves pharmaceutical companies,
biotechnology firms, pharmacogenomics companies, government
institutions, universities, and other research institutions
primarily in the United States, Europe, and internationally.  The
company was founded in 1996 and is headquartered in Reykjavik,
Iceland.

deCODE genetics Inc.'s balance sheet at Sept. 30, 2008, showed
total assets of US$100.2 million and total liabilities of
US$304.0 million, resulting in a shareholders' deficit of roughly
US$203.8 million.

Net loss for the quarter ending Sept. 30, 2008, was US$17.9
million, compared to US$24.2 million for the third quarter 2007.
Net loss for the first nine months of 2008 was US$62.9 million,
compared to US$63.1 million for the first nine months of last
year.  In addition to operating loss, net loss figures for the
periods presented include interest expense and, in the 2008
periods, unrealized loss resulting from the revaluation of the
company's auction rate securities investments.  The nine-month
figure for 2007 also includes a one-time payment deCODE received
related to the settlement of an intellectual property suit.

At Sept. 30, 2008, the company had liquid funds available for
operating activities of US$11.8 million, as compared to
US$23.7 million at June 30, 2008, and US$64.2 million at Dec. 31,
2007.  The net utilization of liquid funds in the three and nine-
month periods ended Sept. 30, 2008, was US$12.0 million and
US$52.4 million.  At Sept. 30, 2008, the company had US$35.5
million in cash, cash equivalents and investments, comprised of
the US$11.8 million in cash and cash equivalents, well as US$5.5
million in restricted investments in U.S. Treasury Bills and
US$18.2 million in illiquid, non-current investments in auction
rate securities.

The company is undertaking a review of its long-term business
strategy with the goal of sharpening the focus of its business,
selling assets, securing partnerships, and utilizing the resources
generated to support product development and marketing efforts in
its core business.  The company has utilized a 30-day grace period
for the scheduled October 15 interest payment on its 3.5% Senior
Convertible Notes due 2011 and is reviewing methods for making
this payment.  Given its current liquid assets, and without paying
the interest on its Notes from its present funds, the company must
obtain further financial resources through either the
implementation of strategic alternatives, corporate partnerships,
or the sale of or loans secured by its auction rate securities in
order to continue operations beyond the end of this year.  The
company is focused on reducing expenses and speeding the
evaluation of its strategic options in order to obtain the
resources to do so.


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


FORNAX ECLIPSE: S&P Downgrades Rating on Two Note Classes to Low-B
------------------------------------------------------------------
Standard & Poor's Rating Services lowered its credit ratings on
the class E, F, and G notes issued by FORNAX (ECLIPSE 2006-2) B.V.
Class E was also placed on CreditWatch negative, and classes F and
G remained on CreditWatch negative.  The ratings on the other
classes in the transaction are unaffected.

The notes issued by FORNAX (ECLIPSE 2006-2) are secured by 13
loans, which are secured by properties in Austria, Belgium,
France, Germany, Italy, and Spain.

The class F and G notes were placed on CreditWatch negative on the
Nov. 14, 2008 because of S&P's material concerns about the
creditworthiness of the ATU Germany and ATU Austria loans.

In view of the specialized nature of the assets supporting the ATU
loans, S&P expects that principle losses are likely to be
experienced given general market value declines and deteriorating
vacant possession values.  Moreover, S&P has a number of concerns
about the credit quality of the remaining loans.  This is because,
based on the lease expiry profile, leases may be terminated over
the next three years and, as many of the properties are let to a
single or a few tenants only, there are scenarios in which re-
lettings may prove challenging.  This leads S&P to expect that
operating income will be subject to greater stress and could
potentially decline.

S&P expects these notes to remain on CreditWatch for an extended
period of time while S&P monitor the transaction.

                         Ratings List

                   FORNAX (ECLIPSE 2006-2) B.V.
    EUR545.13 Million Commercial Mortgage-Backed Variable and
                       Floating-Rate Notes

       Ratings Lowered And Placed On CreditWatch Negative

       Class           To                      From
       -----           --                      ----
       E               BBB-/Watch Neg          A


        Ratings Lowered And Kept On CreditWatch Negative

       Class           To                      From
       -----           --                      ----
       F               BB-/Watch Neg           BBB/Watch Neg
       G               B-/Watch Neg            BB/Watch Neg


MAGNOLIA FINANCE: Moody's Lowers Rating on JPY1 Bil. Notes to 'C'
-----------------------------------------------------------------
Moody's Investors Service has downgraded its rating of these
series of notes issued by Magnolia Finance IV plc
Series 2006-18 JPY1,000,000,000 Riders Notes

  -- Current rating: C,
  -- Prior rating: Caa3, under review for possible downgrade
  -- Prior rating action: 20 November 2008, downgraded from Caa1
     to Caa3 and left under review for possible downgrade.

This rating action follows the unwinding of the transaction due to
a Knock Out Event that occurred on December 5, 2008 and led to
noteholders losing about 95% of their investment.  According to
the transaction documentation, a Knock-Out event occurs when the
market value of the portfolio falls below 10%.


MODERN KITCHENS: Goes Into Examinership; Struggles to Repay Loan
----------------------------------------------------------------
Ray Managh at Herald.ie reports that Dublin-based Modern Kitchens
Manufacturing Ltd has gone into examinership.

Herald.ie relates the High Court was told Monday last week
that MKML is struggling to repay a EUR9.65 million bank loan.

Mr Justice Peter Charleton has appointed an interim examiner to
run the affairs of MKML and its parent company, E Van Investments
Ltd, Herald.ie discloses.

Herald.ie recounts E Van Investments became a holding company in
March 2007 and owed the Anglo Irish Bank EUR9.65 million -- part
of a EUR12 million borrowing that E Van Investments used to buy
MKML, which launched its retail unit in 2001 with the Kitchen
World brand.

According to Herald.ie, the capacity of MKML to fund the loan
obligations of E Van Investments had been significantly
compromised after its contract business experienced a downturn
because of the construction decline.

Herald.ie notes the price paid by E Van Investments for MKML had
been based on their strong contract business.  It had been
anticipated that the development of Kitchen World would take place
alongside the contract business, Herald.ie states.

Citing a lawyer for the two companies, Herald.ie reveals by
December 2007, MKML suffered a turnover loss of EUR56,638.

The lawyer added customers of Kitchen World who planned placing
deposits on new kitchen and wardrobes would have reassuring
guarantees under an examinership, Herald.ie says.


* IRELAND: Unveils Recapitalization Measures for Three Banks
------------------------------------------------------------
Following on from Government Decisions of November 28 and
December 14 on the recapitalization of financial institutions, the
Minister for Finance on December 21 announced specific decisions
in relation to three major financial institutions.

Commenting on the announcement; The Taoiseach said: "The objective
of these decisions is to ensure that the financial system in
Ireland meets the everyday financial needs of individuals,
businesses and the overall economy.  As part of this
recapitalization package, I am very pleased that a number of
measures to support small to medium businesses and mortgage
holders have also been announced."

"In relation to Anglo Irish Bank, the Minister for Finance
announces an initial investment of EUR1.5 billion of core tier 1
capital to assist in restructuring the bank's capital.  The
Government will continue to reinforce the position of Anglo Irish
Bank and will make further capital available if required so that
it remains a sound and viable institution.  The investment will be
in the form of EUR1.5 billion of perpetual preference shares with
a fixed annual dividend of 10%.  The preference shares carry 75%
of the voting rights of Anglo Irish Bank.  The investment is
subject to the approval of the ordinary shareholders at a general
meeting which will be convened as soon as possible.  On the basis
of positive contact with the European Commission, the Minister
said he was confident that the Anglo proposal will meet with EU
State Aid requirements when formally notified in due course.

"Good progress continues to be made in the capital discussions
with other institutions.  In particular, subject to shareholder
and regulatory approval, the Government has agreed with Bank of
Ireland and Allied Irish Banks plc that they will each issue EUR2
billion of perpetual preference shares to the State with a fixed
annual dividend of 8%.  These shares will have voting rights in
respect of change of control and any changes in the capital
structure.  They will also confer 25% of the voting rights in
respect of appointments of directors and 25% of the directors on
the board, currently including any directors to be appointed in
connection with the Government's Guarantee Scheme.

"All the institutions may redeem the preference shares within 5
years at the issue price or after 5 years at 125% of the issue
price.  The preference shares are non-convertible and will be
treated as core tier 1 capital by the Financial Regulator and are
replaceable only with other core/equity tier 1 capital.

"The capital injection for Anglo Irish Bank is likely to take
place following an Extraordinary General Meeting in mid-January,
and for Allied Irish Bank and Bank of Ireland, by the end of the
first quarter of 2009.

"The Government has a substantial pool of additional capital
available to underwrite and otherwise support the issuance of core
tier 1 capital by the relevant institutions.  The Government need
not be the principal source of this additional capital and
encourages each institution to access private sources of capital.
Nonetheless, the Government is prepared to underwrite further
issuance of core tier 1 capital and both Allied Irish Banks plc
and Bank of Ireland have indicated an interest in such an
underwriting in an amount of up to EUR1 billion each.

"The measures have been designed having regarded to the recent
European Commission Recapitalisation Communication and are subject
to State aid approval.

                     Credit Package

"The provision of credit to the economy is the most immediate and
pressing issue for business and for the Government.  The future
health of our economy is inextricably linked with the supply of
credit and a situation where banks are unwilling or are perceived
to be unwilling to lend is damaging not only for the economy but
also for the banks themselves.  Banks have an important part to
play in addressing this issue and a key objective of the
Government's recapitalization initiative is to ensure the
continued flow of funds through the banks to individuals and
businesses in the real economy.

"In response to my earlier meetings with the banks many had
already announced specific programs to boost lending to small and
medium enterprises.  AIB and Bank of Ireland have announced new
business support and start up funds and have provided commitments
to support first time buyers and consumers.  While these
announcements are welcome the Government believes that it is
appropriate as part of the agreed recapitalization program that
the banks should further build on the commitments given in the
banks guarantee scheme through specific credit policies targeted
at small medium enterprises, first time buyers and consumers
generally.

"The recapitalization will provide the banks with the stability
required to continue to lend to meet the needs of the Irish
economy.  The banks will be expected to contribute to the economy
in a verifiable manner in relation to credit and in relation to
the maintenance of a payments system which is socially inclusive.
They will be expected to adopt an approach to customer
relationships in a way which recognizes that customers need
support through difficult as well as good times.  The banks assure
the Government that they will continue to grow lending to small
and medium sized enterprises and have agreed to the following
credit package:

    * Small and Medium Enterprises: The recapitalized banks will
      provide at least an additional 10% capacity for lending to
      small to medium enterprises in 2009 from which lending
      will be subject to demand from viable enterprises. (SMEs
      are to be defined in accordance with the requirements
      under EU State aid Regulations.)

    * Code of practice for business lending: Business lending by
      the recapitalized banks will be supported by a new code of
      practice for business lending which will be developed by
      the Financial Regulator.  The recapitalized banks have
      committed to work closely with the Financial Regulator and
      the IBF to develop this code which will be introduced
      before end of January 2009.  The code will provide for
      issues such as appropriate notice before change of banking
      facilities, arrangements to work with small businesses in
      difficulty and reassurance that sustainable and productive
      business propositions will not be declined loan
      facilities.

    * Mortgages/First time buyers: The recapitalized banks will
      provide an additional 30% capacity for lending to first
      time buyers in 2009.  Take up will be subject to demand
      and the banks have committed to actively promote mortgage
      lending at competitive rates with increased transparency
      on the criteria to be met.

    * Mortgage Arrears: The banks will take action to assist
      householders who are in arrears.  The recapitalized banks
      already comply fully with the voluntary IBF Code on
      mortgage arrears and repossession and refer customers to
      the Money, Advice and Budgeting Service where appropriate.
      The banks have confirmed that those in default on their
      home loans will treated with respect and that they will
      work with mortgage holders to ensure that repossession is
      truly an option of last resort.  Furthermore the
      recapitalized banks have confirmed to Government that they
      will wait at least six months from the time arrears first
      arise before the enforcement of any legal action on
      repossession of a customer's primary residence.

    * Basic bank account: The recapitalized banks have committed
      to broaden the provision of basic or introductory bank
      accounts and will promote these accounts to socio-economic
      groups where the holding of bank accounts is less
      prevalent and to those who find that a current account
      does not suit their basic banking needs.  The Department
      of Social and Family Affairs will continue its engagement
      with the financial institutions with a view to increasing
      availability and demand for basic bank accounts.  Each
      bank can develop the form of its basic bank account in
      discussion with the Financial Regulator and in all cases
      it will provide cash card facilities.  In support of this
      initiative the Government will arrange that stamp duty
      will not apply to cash cards for basic bank accounts.
      Detailed targets for basic bank accounts will be
      negotiated with each institution.

    * Environmental Improvements: Each recapitalized bank will
      introduce a EUR100 million fund to support environment
      friendly investments with a view to reducing energy usage,
      facilitating switching to renewable energies with a view
      to reducing Ireland's carbon footprint.

    * Financial education: The recapitalized banks will provide
      funding and other resources, in cooperation with the
      Financial Regulator, to support and develop financial
      education for consumers and potential consumers.  The
      resources to be made available will take account of the
      Financial Regulator's Financial Capability Study and the
      Report of the Steering Group on Financial Education.

    * Customer Communications: The recapitalized banks will
      continue to improve the transparency of the terms and
      conditions of products, of charges, of marketing and of
      sales processes and procedures.  Proposals in this regard
      will be submitted to the Financial Regulator in January
      2009."


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


CORDUSIO SME: S&P Puts Low-B Ratings on EUR337.6MM Floating Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its credit ratings
to the EUR337.6 million floating-rate credit-linked notes issued
by Cordusio SME 2008-1 Ltd.  At the same time, Cordusio SME 2008-1
issued EUR144 million unrated notes.

The transaction is a partially funded synthetic balance-sheet
collateralized loan obligation, referencing a portfolio of bank
loans granted by UniCredit Corporate Banking SpA to small to
midsize enterprises in Italy.  The transaction aims to provide
regulatory capital relief to UCCB.

This is the first synthetic CLO of SME loans originated by UCCB
that S&P has rated.

The purpose of this transaction is to transfer the credit risk
associated with a pool of loans to Italian SMEs.  At closing, UCCB
entered into a junior guarantee to transfer to the issuer the
junior credit risk related to the reference obligations.  UCCB
also entered into a senior swap to transfer the remaining risk
related to the reference obligations.  The issuer hedged its
exposure through the issuance of various classes of notes.  The
proceeds of the notes were transferred to a euro-denominated cash
deposit with UniCredit SpA.

Payments of interest on the rated notes depend on UCCB's ability
to make premium payments under the terms of the junior guarantee.

                          Ratings List

                    Cordusio SME 2008-1 Ltd.
       EUR481.646 Million Floating-Rate Credit-Linked Notes

          Class          Rating         Amount (Mil. EUR)
          -----          ------         -----------------
          A              AAA                60.0
          B              AA                 89.1
          C              A                  81.9
          D              BBB                76.5
          E              BB+                15.0
          F1             BB                  6.8
          F2             BB                  8.3
          G              NR                144.0

                        NR Not rated.



* ITALY: EC Approves Aid Scheme for Financial Institutions
----------------------------------------------------------
The European Commission has approved an Italian aid scheme aimed
at supporting the financing of the real economy by providing
capital instruments to fundamentally sound financial institutions.
After intensive exchanges with the Italian authorities, the
Commission found the scheme, as amended, to be in line with its
Guidance Communications on state aid to overcome the financial
crisis .  In particular, the measures are limited in time and
scope, require market oriented remuneration and contain enough
incentives to redeem the state participation over time, as well as
sufficient safeguards to avoid abuses.  The Commission therefore
concluded that the scheme is an adequate means to restore a
serious disturbance of the Italian economy and as such compatible
with Article 87.3.b of the EC Treaty.

Competition Commissioner Neelie Kroes said: "The Italian
recapitalization scheme provides effective means of strengthening
confidence in the markets and, above all, of financing the real
economy in a period of crisis, while at the same time establishing
safeguards to limit distortions of competition".

The Italian recapitalization measures provide for the possibility
for Italy to subscribe subordinated debt instruments, to be
counted as bank core tier 1 capital.  The global budget will be
around EUR15-EUR20 billion.

Only fundamentally sound banks as determined by their credit
default swaps spread level, their ratings and the additional
assessment to be made by the Bank of Italy will be eligible for
the recapitalization.

Capital endowment will be within 2% of the banks' risk weighted
assets and in principle within a level of 8% of tier 1 capital.

The distortive effect of the recapitalization is minimized by
various remuneration conditions including fixed step-up clauses,
increases in remuneration linked to dividend payments and a link
of the remuneration with the financing cost of the Italian state.
In order to give banks an incentive to redeem the state
participation once the crisis is over and to allow a return to
normal market functioning, a redemption price higher than the
nominal value and increasing over time has been introduced.
Conditions relating to dividend policy, management remuneration,
behavioral commitments and an ethical code are also included in
the conditions of the recapitalization.  The Bank of Italy will
regularly monitor how the funds will be put to use to sustain
lending to the real economy.

The measure is fully in line with the newly adopted Commission
guidance on bank recapitalization.

The Commission found the scheme and the commitments to constitute
an appropriate means to restore confidence in the creditworthiness
of Italian financial institutions and to stimulate lending to the
real economy.  The measures are well-designed and interventions
will be limited to what is necessary to achieve the stabilization
of the Italian financial sector.

A report on the functioning of the scheme will be submitted to the
Commission every six months.  The possible need to either prolong
the scheme beyond six months from its adoption or to introduce
amendments will be notified to the Commission.  This will enable
the Commission to verify that the measures are maintained only as
long as the financial crisis so justifies.


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


KOUNRAD LLP: Proof of Claim Deadline Slated for February 5
----------------------------------------------------------
LLP Mining Company Kounrad has declared insolvency.  Creditors
have until Feb. 5, 2009, to submit written proofs of claim to:

         LLP Mining Company Kounrad
         Office 722
         Kazybek bi Str. 65
         Almalinsky
         050000 Almaty
         Kazakhstan


MEDIUS-M LLP: Creditors Must File Claims by February 5
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Medius-M insolvent.

Creditors have until Feb. 5, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan
         Tel: 8 (7132) 21-30-32


SAMARSKOYE-OIL WEST: Claims Filing Period Ends February 10
----------------------------------------------------------
LLP Samarskoye-Oil West has declared insolvency.  Creditors have
until Feb. 10, 2009, to submit written proofs of claim to:

         LLP Samarskoye-Oil West
         Micro District Samal-2, 81-3
         Almaty
         Kazakhstan


SI VRES LTD: Creditors' Claims Due on February 5
------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Si Vres Ltd. insolvent on Nov. 24, 2008.

Creditors have until Feb. 5, 2009, to submit written proofs of
claim to:

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


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


ESKARO-STROY LLC: Creditors Must File Claims by February 12
-----------------------------------------------------------
LLC Construction Company Eskaro-Stroy has declared insolvency.
Creditors have until Feb. 12, 2009, to submbit claims to:

         LLC Construction Company Eskaro-Stroy
         Profsoyuznaya Str. 140
         Bishkek
         Kazakhstan
         Tel: (+996 312) 30-73-94


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


* LATVIA: EU Commission Approves Support Scheme for Banks
---------------------------------------------------------
The European Commission has approved under EC Treaty state aid
rules a Latvian support scheme to stabilize financial markets by
providing guarantees to eligible banks to ensure their access to
financing.  The Commission found the measure to be in line with
its Guidance Communication on state aid to overcome the financial
crisis.  In particular, the scheme ensures non-discriminatory
access, is limited in time and scope, requires market oriented
remuneration and contains sufficient safeguards to avoid abuses.
The Commission therefore concluded that the scheme was an adequate
means to remedy a serious disturbance of the Latvian economy and
as such in line with Article 87.3.b of the EC Treaty.

Competition Commissioner Neelie Kroes said: "The Latvian scheme
demonstrates again the great strength of the Commission in this
crisis: the ability to supervise Member States' support schemes
with enough flexibility to take into account national
particularities, whilst ensuring enough coherence to maintain a
level playing field for all European banks."

The guarantee will cover all liabilities with the exception of
interbank deposits, subordinated liabilities and collateralized
liabilities such as covered bonds which have a maximum maturity of
three years.  Instruments guaranteed under this scheme may be
issued within six months following this decision.  Moreover, in
exceptional cases only, the Latvian measures also provide for the
takeover of distressed banks.  In the first instance, the scheme
has a ceiling which corresponds to 10% of the Latvian GDP.  Only
solvent banks are allowed to enter the scheme.

The Commission decision covers a period of six months, following
which Latvia should terminate the scheme or re-notify its
extension to the Commission.

The scheme contains elements of state aid but foresees safeguards
aimed at ensuring that the state intervention is proportionate,
limited to what is necessary to stimulate interbank lending and
adequate to reach this goal, in accordance with EU state aid
rules, as outlined in the Commission's Guidance Communication.

In particular, the scheme provides for non-discriminatory access
as it will be open to all solvent Latvian banks, including Latvian
subsidiaries of foreign banks.  To benefit from the guarantee,
participating banks are required to pay a market-oriented fee, in
line with recommendations from the European Central Bank.

Moreover, beneficiaries will be subject to behavioral commitments
to avoid an abusive use of the state support.  These include
limitations on marketing and conditions for staff remuneration or
bonus payments.  In addition, Latvia made the commitment to notify
restructuring or liquidation plans for each beneficiary that
defaulted on its liabilities and as a consequence would cause the
guarantee to be drawn.  Finally, Latvia will report periodically
to the Commission on the implementation of the scheme.

In light of these commitments and conditions, the Commission
concluded that the scheme would be an adequate means to restore
confidence in the Latvian financial markets and to boost interbank
lending.  The safeguards will ensure that the state support is
limited to what is necessary to stabilize the Latvian financial
sector and that negative spill-over effects are minimized.


* LATVIA: EU to Provide Financial Assistance of Up to EUR3.1 Bln
----------------------------------------------------------------
The Presidency of the Ecofin Council and the European Commission
in a joint statement on December 19, said that in light of the
major imbalances facing the Latvian economy, accentuated by the
financial market strains, and given the Latvian authorities' firm
commitment to implement a major program of economic adjustment,
the European Union intends to provide medium-term financial
assistance to Latvia of up to EUR3.1 billion.

The support will be provided in conjunction with the International
Monetary Fund (EUR1.7 billion), the Nordic countries (Sweden,
Denmark, Finland and Norway) (EUR1.8 billion together) and the
World Bank (EUR0.4 billion).  The European Bank of Reconstruction
and Development, the Czech Republic, Poland and Estonia will also
provide a total of EUR0.5 billion, bringing the total to up to
EUR7.5 billion over the period to the first quarter of 2011.

The financial assistance will be conditional on the implementation
of a comprehensive economic policy program.  The financial
assistance and the policy program are designed to enable the
economy to withstand short-term liquidity pressures while
improving competitiveness and supporting an orderly correction of
imbalances in the medium term, hence bringing the economy back on
a sound and sustainable footing.  This will also help meet the
conditions for the adoption of the euro.

The program is based on maintaining Latvia's existing exchange
rate peg, which will remain a key policy anchor going forward,
thereby underpinning systemic stability.

Key elements of the economic policy package are an immediate and
sustained fiscal consolidation to limit the budget deficit to 5%
of GDP in 2009, falling further to 3% of GDP in 2011.  Supporting
wide-ranging structural reforms and wage reductions, led by the
public sector, will contribute to restoring Latvia's cost
competitiveness.

Furthermore, in order to limit the vulnerabilities stemming from
the high private sector debt levels and limit the negative
consequences on indebted households, the program also foresees
measures to facilitate restructuring of domestic and external
debt.

The economic policy conditionality will be set in a forthcoming
Council decision and further spelled out in a Memorandum of
Understanding to be concluded shortly with the Latvian
authorities.  The Commission in collaboration with the Economic
and Financial Committee will monitor regularly and closely that
the economic policy conditions attached to the financial
assistance are fully implemented and may request additional
measures when and if circumstances so require.

The Presidency of the Ecofin Council and the Commission also urge
the large financial institutions operating in Latvia to continue
providing adequate funding of their operations there as well as
appropriate financing of the economy.

"In this context we very much welcome the confirmation of the
long-term commitment of foreign parent banks to Latvia and to
support their subsidiaries in the country," they said.

         EU Assistance Will Take Form of a BoP Loan

The proposed medium-term financial assistance to Latvia will
consist of a European Community loan, which has yet to be approved
by the Commission.  This is expected to happen early in January.
It will then require approval by the EU finance ministers.  Such
support is provided under Council Regulation 332/2002 which
provides for a medium-term financial assistance facility for non-
euro area EU Member States' balance of payments (BoP).

                          Background

The EU in November also agreed to grant a BoP loan to Hungary of
EUR6.5 billion.  On a proposal by the Commission, the Council
decided to increase early December the overall financial
assistance ceiling in Regulation 332/2002 to EUR25 billion from an
original EUR12 billion.


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


AQUARIUS + INVESTMENTS: Moody's Withdraws Caa1 EUR10MM Note Rating
------------------------------------------------------------------
Moody's Investors Service has withdrawn its rating on this Class
of notes issued by Aquarius + Investments PLC.

Series DE EUR10,000,000 RECIPES Notes

  -- Current rating: WR
  -- Prior rating: Caa2, under review for possible downgrade
  -- Prior rating action date: 31 October 2008, downgraded from
     Caa1 to Caa2.

Moody's has withdrawn this rating because the transaction has been
restructured and all investors requested that the rating be
withdrawn.


ORCO PROPERTY: Moody's Withdraws 'Caa1' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings assigned to
Orco Property Group S.A., including the corporate family rating of
Caa1, the national scale rating of Ba2.cz.  Orco does not have any
outstanding notes rated by Moody's.

Moody's has withdrawn this rating for business reasons.  Please
refer to Moody's Withdrawal Policy on www.moodys.com: "Moody's
Guidelines for the Withdrawal of Ratings."

Moody's last rating action on Orco took place 6 August, 2008 when
the agency downgraded the corporate family rating to Caa1 from B3
and the national scale rating to Ba2.cz from Ba1.cz with negative
outlook.


Headquartered in Luxembourg, Orco Property Group S.A. is a
diversified residential and commercial property developer and
investment manager in Central and Eastern Europe and ranks as the
third-largest residential developer in Prague, Czech Republic.
The group had total assets of EUR2.99 billion at September 30,
2008.


===========
N O R W A Y
===========


NEMI FORSIKRING: W.R. Berkley Terminates Acquisition Talks
----------------------------------------------------------
W. R. Berkley Corporation (NYSE: WRB) in a press statement on
Tuesday, December 23, 2008, said that it has terminated its
negotiations to acquire NEMI Forsikring ASA.

A press release announcing the letter of intent regarding the
potential acquisition was previously issued on November 11,
2008.  W. R. Berkley noted that it devoted substantial time and
resources in performing its due diligence investigation, but was
unable to structure an appropriate transaction.

Founded in 1967, W. R. Berkley Corporation is an insurance holding
company that is among the largest commercial lines
writers in the United States and operates in five segments of the
property casualty insurance business: specialty insurance,
regional property casualty insurance, alternative markets,
reinsurance, and international.

Headquartered in Oslo, Norway, Nemi Forsikring ASA --
http://www.nemiasa.no/-- operates as a multiline general
insurance company.  The company offers a range of insurance
products and services to the utilities, commercial, marine hull,
fish farming, and aviation markets, as well as to the owners and
transporters of goods in Norway and internationally.  It also
offers customized insurance solutions to larger companies, trade
associations, purchase organizations, institutions, and
municipalities.

                    *     *     *

As reported in the TCR-Europe on Nov. 25, 2008, Standard & Poor's
Ratings Services said that it revised its CreditWatch implications
on Norway-based non-life insurer NEMI Forsikring ASA to positive
from negative.  The 'BB' insurer financial strength and long-term
counterparty credit ratings remain on CreditWatch.

The revised CreditWatch status follows the announcement by
Connecticut-based insurer W.R. Berkley Corp. (WRB; BBB+/Stable/--)
that it has signed a letter of intent to acquire 100% of NEMI from
Iceland-based insurer Tryggingamidstodin hf.(TM; BB/Watch Neg/--).
WRB's core insurance operating companies are rated 'A+' with a
stable outlook.


NEMI FORSIKRING: S&P Maintains 'BB' Insurer Strength Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it maintains its 'BB'
insurer financial strength and long-term counterparty credit
ratings on Norway-based non-life insurer NEMI Forsikring ASA on
CreditWatch, but has revised the implications to negative from
positive.  The ratings were originally placed on CreditWatch on
Oct. 7, 2008, following a related action on NEMI's parent,
Iceland-based insurer Tryggingamidstodin hf. (TM; BB/Watch
Neg/--).

"The revised CreditWatch placement follows yesterday's
announcement by Connecticut-based insurer W.R. Berkley Corp. that
it has terminated its negotiations to acquire 100% of NEMI from
TM," said Standard & Poor's credit analyst Peter McClean.
"Consequently, the CreditWatch implications on NEMI revert to the
negative status originally assigned on Oct. 7, 2008."

The CreditWatch reflects the continuing uncertainty regarding the
future ownership and financial position of both TM and NEMI.

"We remain unable to predict with any certainty when S&P expects
to resolve the CreditWatch or the extent of any possible
downgrade.  S&P shall continue to monitor developments closely and
take actions as appropriate," added Mr. McClean.

The ratings on NEMI continue to reflect its marginal financial
flexibility, offset by good, although weakened, capitalization and
operating performance.


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


AOEIE IRKUTSKENERGO: Moody's Cuts Corp. Family Rating to 'B3'
-------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of AOEiE Irkutskenergo to B3 from B2.  At the same time,
Moody's Interfax Rating Agency, which is majority owned by
Moody's, has downgraded the company's national scale rating to
Baa3.ru from Baa1.ru.  The ratings are on review for further
possible downgrade.

The downgrade follows Moody's review of the company's ratings,
which was launched on November 19, 2008 due to the rating agency's
concerns over the increasing liquidity pressures facing
Irkutskenergo.  The review has been focused on Irkutskenergo's
ability to execute its plan to open several one-year bank
facilities and to agree on a long-term facility in December 2008.
The downgrade reflects Moody's view that the company has not
managed to closely follow its plan to strengthen liquidity and
prepare fully and reasonably in advance in December to address its
January 2009 refinancing needs.  Moody's expects Irkutskenergo to
continue its negotiations with banks about new credit lines, but
believes that delays in accessing new funding may continue.
Moody's understands that the company's ability to honor its debt
obligations is subject to direct financial support from the
company's shareholders.  The current rating incorporates Moody's
expectation that such support will soon be provided by the
company's controlling beneficiary shareholders.  These
shareholders, which are the same as those of US RUSAL and
represented by En+ Group, are expected to arrange additional
funding for Irkustkenergo.  The funding should include a related
party loan and cash proceeds from a reduction of accounts
receivable from RUSAL, the company's largest industrial customer.

Moody's notes that Irkutskenergo continues to face difficulties in
making payments, which have been delayed, to its minority
shareholders who voted against the company reorganization.
Irkutskenergo should have bought back their shares, in the amount
of RUR3.1 billion by November 19, 2008.  The company has
negotiated an extension on the payments to the end of January with
those shareholders that have not yet received their money.  The
delayed payments to the minority shareholders are not a default
under Moody's methodology, but signal the company's stressed
liquidity profile and raise further concerns about its ability to
timely address the January 2009 refinancing issues.

Moody's is concerned by the company's stressed liquidity and thus
has kept the ratings on review for further possible downgrade.  In
mid-December 2008, the company's debt (all short-term) of
RUR10 billion as well as a portion maturing before the end of
January 2009 significantly exceeded cash accounts of around
RUR800 million and unused short-term committed credit lines of
around RUR1 billion.

Moody's review will focus on (i) Irkutskenergo's ability to timely
receive the expected financial support from its shareholders, (ii)
its progress in having new bank facilities opened, while at the
same time increasing the maturity of its debt profile, and (iii)
advances in addressing the outstanding payment requirements of
minorities.

The company's ratings could be further downgraded if no support
from the shareholders materializes in the short term.
Moody's previous rating action for Irkutskenergo was implemented
on November 19, 2008 when Moody's downgraded the company to
B2/Baa1.ru and placed the ratings on review for further possible
downgrade.

Headquartered in the City of Irkutsk (Russian Federation),
Irkutskenergo was initially an integrated electric utility
business focusing on the Irkutsk region.  The company has been
restructured, with its transmission and distribution grid business
spun off to operate as an independent entity from 1 January 2009.
The company has three hydroelectric power plants with an installed
capacity of 9.0GW and 12 combined heat and power plants with a
total capacity of 3.9GW.  The company generated approximately 63%
of its 2007 RUR28.8 billion revenues from sales of electricity and
30% from sales of heat.  Irkutskenergo's controlling beneficiary
shareholders are the same as those of UC RUSAl, the largest
aluminium business in Russia and an international leader in the
metals sector.  The Russian state -- represented by the Federal
Property Agency -- has a 40% stake in the company.


BALTIKSTRYDOM PLUS: Bankruptcy Hearing Set February 24
------------------------------------------------------
The Arbitration Court of Kaliningrad will convene on Feb. 24,
2009, to hear bankruptcy supervision procedure on LLC Baltik
Sroydom Plus (TIN 3908028704, PSRN 1043900815090) (Construction).
The case is docketed under Case No. ?218359/2008.

The Temporary Insolvency Manager is:

         S. Birkle
         Post User Box 15
         Alyabyeva Str. 12
         236000 Kaliningrad
         Russia

The Debtor can be reached at:

         LLC Baltik Sroydom Plus
         Kamskaya Str.63
         236000 Kaliningrad
         Russia


FORD MOTOR: St. Petersburg Plant Halts Production
-------------------------------------------------
RIA Novosti reports that a Ford factory near St. Petersburg in
Russia has halted production until January 21.

The report relates that the company said it made the decision,
which came into effect on Wednesday, December 24, in connection
with the New Year vacations, the ongoing global financial crisis
and the necessity to reduce production due to the expected drop in
car sales in the country next year.

According to the report, the company will be paying its workers
two-thirds of their salaries during the forced outage in line with
Russia's Labor Code.

The factory, which produces Ford Focus cars, was opened in the
summer of 2002 and employs some 2,200 workers, the report
discloses.

The report notes the plant earlier planned to produce 125,000 cars
next year.

                      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-'.


HOME CREDIT: Moody's Changes Outlook on 'D-' BFSR to Negative
-------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook on these global scale ratings of Home Credit & Finance
Bank: D- bank financial strength rating; Ba3 long-term local and
foreign currency deposit ratings; and Ba3 long-term senior
unsecured rating.  Moody's also affirmed HCFB's Not Prime short-
term local and foreign currency deposit ratings, with stable
outlook.

Concurrently, Moody's Interfax Rating Agency affirmed the bank's
Aa3.ru long-term national scale rating.  The NSR carries no
specific outlook.  Moscow-based Moody's Interfax is majority owned
by Moody's, a leading global rating agency.

"The bank's business model of wholesale-funded consumer lender is
possibly one of the worst affected under current circumstances of
tightened access to capital markets and rising problem loans due
to the tough economic environment.  The rating action reflects
Moody's expectations of growing pressure on the bank's asset
quality -- albeit currently adequate -- and unavoidable shrinkage
in business volumes in the near term unless HCFB is successful in
diversifying its funding base.  However, Moody's notes that the
bank currently has an adequate liquidity position to meet its
obligations and its capital ratio remains strong," says Maxim
Bogdashkin, a Moscow-based Moody's Analyst, and the lead analyst
for HCFB.

According to Moody's, a downgrade of HCFB's BFSR and deposit
ratings might occur as a result of a significant deterioration in
the bank's liquidity position, higher than expected credit losses
in its loan book or higher than expected contraction in the bank's
business volumes, thus weakening the bank's franchise.

A reversal of the negative rating outlook to stable could be
driven by successful diversification and management of the bank's
funding base, and growth of HCFB's profitability, provided that
asset quality and liquidity indicators remain strong.  However,
Moody's notes that these targets appear difficult to achieve in
the current economic environment.

Moody's last rating action on HCFB was on 30 July 2008, when the
rating agency assigned a Ba3 long-term foreign currency rating to
the bank's senior unsecured Loan Participation Notes.

Domiciled in Moscow, Russia, HCFB reported total assets -- under
IFRS -- of US$3.8 billion; capital of US$700 million and net
income of US$92.9 million as of Q3 2008.


KANSKAYA TABACCO: Bankruptcy Hearing Set January 13
---------------------------------------------------
The Arbitration Court of Krasnoyarskiy will convene at 10:00 a.m.
on January 13, 2009, to hear bankruptcy supervision procedure on
LLC Kanskaya Tabacco Processing Plant (TIN 2461014351).  The case
is docketed under Case No. ?338298/2008.

The Temporary Insolvency Manager is:

         S. Romanova
         Post User Box 152
         Babayevskaya Str. 20
         Kumertau
         453303 Bashkortostan
         Russia

The Court is located at:
         The Arbitration Court of Krasnoyarskiy
         Office 22
         Lenina Str.143
         Krasnoyarsk
         Russia

The Debtor can be reached at:

         LLC Kanskaya Tabacco Processing Plant
         Dubenskogo Str. 6/323
         660032 Krasnoyarsk
         Russia


KVANT LLC: Creditors Must File Claims by January 19
---------------------------------------------------
Creditors of LLC Kvant (Metalwork) have until Jan. 19, 2009, to
submit proofs of claims to:

         M. Popova
         Insolvency Manager
         Malkova Str. 5
         Sovetsk
         613340 Kirovskaya
         Russia

The Arbitration Court of Udmurtia commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?712560/2007 G15.

The Debtor can be reached at:

         LLC Kvant
         Proezd Dzerzhinskogo 2
         Izhevsk
         Russia


MOSTRANSAVTO: S&P Downgrades Long-Term Issuer Rating to 'SD'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term issuer credit rating on Russian public transport company
Mostransavto to 'SD' (selective default) from 'CC'.  At the same
time Standard & Poor's lowered its long-term debt rating on the
company's RUR7.5 billion senior unsecured bond to 'D' from 'CC'.
Standard & Poor's also lowered its Russia national scale ratings
on the company and debt issue to 'ruSD' and 'ruD', respectively,
from 'ruCC'.  All ratings were removed from CreditWatch, where
they had been placed with negative implications on Sept. 26, 2008.

"The downgrades follow Mostransavto's delay in paying a portion of
the approximate RUR480 million coupon and RUR975 million principal
installment on its rated RUR7.5 billion (nominal value) bond on
Dec. 23, 2008, when due," said Standard & Poor's credit analyst
Valerie Montmaur.

The bond was placed by fully-owned special purpose vehicle OOO
Mostransavto-Finance on Dec. 25, 2007.

Based on Standard & Poor's understanding, the payments have been
delayed due to the ongoing resolution of some complex transactions
between one of the bondholders and Moscow oblast-owned companies.
As soon as this situation is resolved, Mostransavto will make
payment, since it has already reserved the
necessary cash to honor these obligations.

"We will subsequently revise our ratings on the company," said Ms.
Montmaur.  "Despite these payment delays, Mostransavto has
confirmed that it continues to honor its obligations with respect
to its RUR4.1 billion of unrated loans, and it is for this reason
that S&P considers the default to be selective."

Mostransavto is 100% owned by the Moscow Oblast ('SD'; Russia
national scale rating 'ruSD'), which provides the company with
ongoing financial support in the form of operating subsidies and
guarantees, and services a part of the company's leasing and debt
payments directly from the regional budget.  Another positive
factor is Mostransavto's near-monopoly position in the regional
public transport market, which could strengthen through ongoing
investments.


OMZ OAO: S&P Suspends 'CCC+' Long-Term Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said it had suspended its
'CCC+' global scale long-term corporate credit rating and its
'ruBB' Russia national scale rating on Russia-based heavy-
engineering holding company OAO OMZ (Uralmash-Izhora Group).

"This follows the continued absence and postponement of an
estimated release date for the company's International Financial
Reporting Standards audited financial statements for the fiscal
year ended Dec. 31, 2007, and consequently its interim 2008
accounts," said Standard & Poor's credit analyst Varvara
Nikanorava.  "The delay creates uncertainty regarding the
company's true financial condition, with an unknown effect on
credit quality."

The last detailed consolidated financial information from the OMZ
group was published following the quarter ended June 30, 2007.
According to the company, the delay in release of the financial
statements for full-year 2007 is technical in nature, due to
first-time accounting for the joint venture with Metalloinvest,
which the company entered into during 2007.

Standard & Poor's may suspend a rating in circumstances if there
is an expectation that the rating is likely to be reinstated.  The
rating suspension does not imply that OMZ is not servicing its
obligations, or that company operations have deteriorated, but
rather that important information has not been provided by the
company.  S&P will likely reinstate the ratings on the company
after public release and analysis of the audit of the annual 2007
and interim 2008 financial statements along with other information
that S&P typically requires to maintain the ratings.


RUSSIAN FACTORING: S&P Cuts Ratings on 2 Classes of Notes to Low-B
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on all classes of notes
issued by Russian Factoring No. 1 S.A.  These ratings were then
withdrawn at the request of the issuer.

These rating actions are driven mainly by the lack of visibility
from the servicer on the operational situation following
deterioration of its financial position, coupled with significant
deterioration in the pool performance of this deal and the
inability to provide the deal with required credit enhancement.

On the basis of the monthly cash management report relating to the
Dec. 15 interest payment date, the required notes total credit
enhancement percentage was more than twice the required amount at
closing causing the breach of an early amortization trigger.  At
the same time there has been a sharp reduction of collections on
the underlying portfolio combined with deterioration in
Eurokommerz's creditworthiness.

We are concerned about the current financial position of
Eurokommerz and its ability to service the transaction debt going
forward.  S&P understand that the financial difficulties faced by
Eurokommerz are worsening rapidly.  On December 11 and 19, the
company defaulted on coupon payments on its domestic bonds for
the total amount of RUR440 million.  The company said has informed
S&P that it has no financial means to make these payments.

At the same time, the performance of Russian Factoring No. 1 has
deteriorated significantly.  As per the latest investor report,
collections had dropped dramatically to lower than RUR1 billion
from about RUR6 billion in August, and RUR7 billion in September
2008.

The most recent delinquency ratio, comprising all assets overdue
by more than 30 days, has more than doubled since the 4.3%
recorded as of end-November 2008.

Finally the credit enhancement available after the last payment
date was equal to 34.0% for the senior notes and 29.8% for the
mezzanine facility.  This compares poorly with S&P's current
required credit enhancement of over 60% for the senior tranches,
and over 50% for the junior tranches.  The required credit
enhancement is derived dynamically and its significant increase
follows rising MOSPRIME, the reference rate to which the interest
due on the liabilities of the issuer is linked.

The transaction closed on December 2007.  The notes and the
mezzanine loan are backed by factoring receivables originated by
Eurokommerz, a factoring company based in Russia.

                            Rating List

       Ratings Lowered And Removed From CreditWatch Negative

                  Russian Factoring No. 1 S.A.
       RUR5.3 billion senior- and mezzanine facility notes

           Class          To              From
           -----          --              ----
           Senior         BB             BBB/Watch Neg
           Mezzanine      B              BB/Watch Neg

                        Ratings withdrawn

                   Russian Factoring No. 1 S.A.
        RUR5.3 billion senior- and mezzanine facility notes


           Class          To              From
           -----          --              ----
           Senior         NR              BB
           Mezzanine      NR              B


SIBIR-LES LLC: Creditor Must File Claims by January 19
------------------------------------------------------
Creditors of LLC Sibir-Les (Forestry) have until Jan. 19, 2009, to
submit proofs of claims to:

         Ye. Pichuyev
         Temporary Insolvency Manager
         Aerovokzalnaya Str. 19/302
         660022 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarskiy will convene at 10:00 a.m.
on Mar. 17, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. ?3312082/2008.

The Court is located at:

         The Arbitration Court of Krasnoyarskiy
         Office 9
         Lenina Str. 143
         Krasnoyarsk
         Russia

The Debtor can be reached at:

         LLC Sibir-Les
         Kolesnichenko Str. 4/74
         Kodinsk
         Kezhemskiy
         663491 Krasnoyarskiy
         Russia


SOV-TEKH-STROY LLC: Bankruptcy Hearing Set March 12
---------------------------------------------------
The Arbitration Court of Krasnoyarskiy will convene at 10:00 a.m.
on March 12, 2009, to hear bankruptcy supervision procedure on LLC
Sov-Tekh-Stroy (TIN 2463062270) (Construction).  The case is
docketed under Case No. ???-12698/2008.

The Temporary Insolvency Manager is:

         S. Romanova
         Post User Box 152
         Babayevskaya Str. 20
         Kumertau
         453303 Bashkortostan
         Russia

The Court is located at:

         The Arbitration Court of Krasnoyarskiy
         Office 9
         Lenina Str.143
         Krasnoyarsk
         Russia

The Debtor can be reached at:

         LLC Sov-Tekh-Stroy
         Akadem-gorodka Str. 50/38
         660036 Krasnoyarsk
         Russia


STINGART LLC: Moskovskaya Bankruptcy Hearing Set February 26
------------------------------------------------------------
The Arbitration Court of Moskovskaya will convene at 10:00 a.m. on
Feb. 26, 2009, to hear bankruptcy supervision procedure on LLC
Stingart (TIN 5017027553) (Construction).  The case is docketed
under Case No. ?-4114596/08.

The Temporary Insolvency Manager is:

         O. Bessoltsova
         Office 61
         Potapovskiy Perulok 9/11
         101000 Moscow
         Russia

The Debtor can be reached at:

         LLC Stingart
         Lenina Str. 5/2/232
         Istra
         Moskovskaya
         Russia


TRANS-STROY-INVEST CJSC: Creditors Must File Claims by Feb. 19
--------------------------------------------------------------
Creditors of CJSC Trans-Stroy-Invest (TIN 4218021165, PSRN
1024201755181)(Construction) have until  Feb. 19, 2009, to submit
proofs of claims to:

         V. Krasnoperov
         Insolvency Manager
         Karbysheva Str. 8
         654029 Novokuznetsk
         Russia

The Arbitration Court of Kemerovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?272161/20084.

The Debtor can be reached at:

         CJSC Trans-Stroy-Invest
         Antonovskaya Str.116
         654031 Novokuznetsk
         Russia


URALSKIY LES: Court Names Temporary Insolvency Manager
------------------------------------------------------
The Arbitration Court of Sverdlovskaya appointed T. Ivanova as
Temporary Insolvency Manager for LLC Uralskiy Les (Woodworking).
The case is docketed under Case No. ?6034683/08-S11.  He can be
reached at:

         Post User Box 366
         620014 Yekaterinburg
         Russia

The Debtor can be reached at:

         LLC Uralskiy Les
         Zavodskaya Str. 1a
         Chernoyarka
         Serov
         Sverdlovskaya
         Russia


* MOSCOW OBLAST: Moody's Downgrades Currency Ratings to 'B3'
------------------------------------------------------------
Moody's Investors Service has downgraded the foreign and local
currency ratings of the Oblast of Moscow to B3 from B1.  The
rating action reflects the Oblast's weakening stand-alone capacity
to manage its tight debt repayment schedule going forward.
Tightened market conditions with a dramatically increasing cost of
funding and overall restricted access to financial markets could
cause further hardships to the region's debt service capacity.
The ratings remain on review for possible downgrade.

"Going forward, the region's capacity to generate additional
budget revenue for debt service will be constrained by the current
downturn in the local and national economies, leading to a
shortfall in tax proceeds," explains Alexander Proklov, a Moscow-
based Moody's Vice President-Senior Analyst and lead analyst for
this issuer.  The resulting increased budgetary financing needs
are coming at a time of tightening market conditions that
constrain the ability of the Region to access the financial
markets and massively increase its cost of funding.  "The
situation is further compounded by the region's large refinancing
needs over the next 12 months, which will cause significant
liquidity pressures in 2009," adds Mr. Proklov.

The rating review will focus on three issues.  First, Moody's
intends to conduct a more detailed assessment of the liquidity
needs of the region in the context of its new budget for 2009.
Second, the review will consider the extent and predictability of
federal government support, directly and through state-owned
banks.  This support will be an important factor in determining
the Oblast's creditworthiness in the future.  Finally, Moody's
will analyze the factors leading to the missed put option payment
and its efforts to restructure its indirect debt exposure.

The last rating action was implemented by Moody's on 31 October
2008, when Moody's downgraded the Oblast's foreign and local
currency issuer ratings to B1 from Ba2.  The ratings were
originally placed on review for possible downgrade on 6 October
2008.

The principal methodologies used in rating Moscow Oblast were
"Regional and Local Governments Outside the US" and "The
Application of Joint-Default Analysis to Regional and Local
Governments", which can be found at www.moodys.com in the Credit
Policy & Methodologies directory, in the Ratings Methodologies
sub-directory.  Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found
in the Credit Policy & Methodologies directory.

Moscow Oblast is located in the area surrounding the City of
Moscow.  With 6.6 million inhabitants, it accounts for 4.5% of the
total population of Russia, and its contribution to the national
GDP is 4% of the total.  The region posted average annual gross
regional product growth of 7% in 2003-07.


* OMSK CITY: S&P Withdraws 'B-' Long-Term Issuer Rating
-------------------------------------------------------
Standard & Poor's Ratings Services said that it has withdrawn its
'B-' long-term issuer credit rating and its 'ruBBB' Russia
national scale rating on the City of Omsk, at the city's request.
The outlook at the time of the withdrawal was negative.

"The ratings were constrained by the city's high exposure to
refinancing risk, weak budgetary performance, low liquidity, and
limited financial flexibility," said Standard & Poor's credit
analyst Felix Ejgel.

These risks were partially mitigated by the city's solid
industrial development and the strong weight in revenues of
personal income and property taxes, which are less volatile during
an economic slowdown.


* TVER OBLAST: S&P Puts 'BB- Issuer Rating on CreditWatch Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services said it placed on CreditWatch
with negative implications its 'BB-' global scale long-term issuer
credit rating and 'ruAA-' Russia national scale rating on Tver
Oblast, located in the Russian Federation (foreign currency
BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia
national scale 'ruAAA').

"The CreditWatch placement reflects higher risks posed by the
likely weakening of the oblast's budgetary performance, combined
with its increasing exposure to short-term debt, particularly
under the conditions of its forthcoming proposed medium-term bond
issue of about RUR2.5 billion," said Standard & Poor's credit
analyst Irina Pilman.

The oblast's management intends to borrow at the best possible
conditions by placing its proposed issue as a three-year
amortizing bond.  However, it is possible that the bond may be
issued with a put option in 2009.  Should this be the case, and
taking into account the rising cost of borrowing, S&P forecast
that debt service would increase to about 18.3% of total revenues
in 2009.  This would make the oblast excessively exposed to short-
term debt refinancing by year-end 2009 for its current rating
level.  If the bond is placed without a put option, debt service
will be 10% of total revenues in 2009, which S&P would consider
manageable.

"We will resolve the CreditWatch once S&P has obtained more
visibility not only on the terms and conditions of the bond, which
Tver aims to issue over the coming days, but also on the oblast's
willingness and capacity to adjust its 2009 budget, taking into
account the expected sharp decline in revenues," said Ms. Pilman.

If the oblast succeeds in placing its proposed medium-term bond in
the coming days without any put options, and if it can also adjust
its budget in order to reach a zero operating balance in 2009, S&P
will likely affirm the rating.  However, S&P would likely lower
the ratings or revise the outlook if the bond is placed with the
put option due in 2009, and/or if adjustments to the 2009 budget
prove insufficient to eschew a significant deterioration of
financial performance below current levels.


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


CAJA DE AHORROS: S&P Junks Ratings on Two Classes of Notes
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class B to E notes issued by MADRID RMBS II, Fondo de
Titulizacion de Activos and MADRID RMBS III, Fondo de Titulizacion
de Activos.  At the same time, S&P removed from CreditWatch
negative the ratings on MADRID RMBS II's class B and C notes and
MADRID RMBS III's class B notes.

The ratings on the class A1, A2, and A3 notes are unaffected.

The rating actions have resulted from increased delinquencies,
defaults, and further cash reserve draws in both transactions.

S&P has conducted a full credit and cash flow analysis of the most
recent transaction information that S&P has received.  The results
of S&P's analysis show that the credit enhancement available for
MADRID RMBS II's and MADRID RMBS III's class B to E notes was
insufficient to maintain the current ratings.

The notes, issued in December 2006 and July 2007, respectively,
are backed by two portfolios of residential mortgage loans secured
over residential properties in Spain.  The loans were originated
and are serviced by Caja de Ahorros y Monte de Piedad de Madrid
(A+/Negative/A-1).

The mortgage portfolios underlying these transactions continue to
generate high levels of delinquencies, which have been steady
rising since closing and do not appear to levelling off.  At 4.63%
and 5.18% of the current mortgage portfolio in Madrid RMBS II and
III, respectively, the level of 90+ day delinquencies is well
above the average for other Spanish residential mortgage-backed
securities transactions with a similar seasoning.

Recent performance data, combined with the characteristics of the
portfolio suggest that delinquencies could continue to come
through at a fast pace over the next few interest payment dates.
Both portfolios are characterized by high weighted-average loan-
to-value ratios.

A significant portion of loans in arrears has migrated over time
to a default status.  The combination of the relatively high level
of 90+ day delinquencies and the limited equity in those loans is
likely to lead to further defaults and potentially reduced
recoveries.

Defaults in this transaction are defined as arrears greater than
six months. Both transactions feature a structural mechanism that
traps excess spread to provision for defaults. As a result of this
mechanism, as well as a relatively fast take-up of delinquencies
and rollouts to defaults, Madrid RMBS II has drawn on its cash
reserve on several payment dates. On the latest interest
payment date, it drew around EUR23.86 million, taking the level of
its cash reserve to zero.

Madrid RMBS III has drawn under its reserve fund on three interest
payment dates in a row.  Drawings under the cash reserve have been
increasing over time: On the last payment date the transaction
drew close to 50% (EUR49.9 million) of the initial EUR108 million
cash reserve.  The outstanding amount of the cash reserve after
the latest payment date is EUR14 million, 13% of its target
amount.

When the cumulative default rates in Madrid RMBS II reach 8% of
the initial balance, the priority of payments is altered to pay
interest on class E notes after the senior classes amortize but
before the cash reserve is replenished.  Madrid RMBS III features
a similar structural mechanism: In this case the trigger is set at
8.94% of the initial balance.

As at the last investor report, the level of cumulative defaults
for Madrid RMBS II and III was 5.77% and 3.86%, respectively.
S&P's rating actions factor in the relative likelihood of
nonpayment of interest from realized defaults and S&P's higher
default risk assessment for the residual portfolios.

                         Ratings List

          MADRID RMBS II, Fondo de Titulizacion de Activos
  EUR1.8 Billion Residential Mortgage-Backed Floating-Rate Notes

      Ratings Lowered And Removed From CreditWatch Negative

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

                         Ratings Lowered

                                  Rating
                                  -------
                Class      To                 From
                -----      --                 ----
                D          B                  BB
                E          CCC                B

         MADRID RMBS III, Fondo de Titulizacion de Activos
    EUR3 Billion Residential Mortgage-Backed Floating-Rate Notes

       Ratings Lowered And Removed From CreditWatch Negative

                                  Rating
                                  -------
                Class      To                 From
                -----      --                 ----
                B          A                  AA/Watch Neg

                          Ratings Lowered

                                  Rating
                                  -------
                Class      To                 From
                -----      --                 ----
                C          BBB                A-
                D          B                  BB
                E          CCC                B


* SPAIN: EC Approves Guarantee Scheme for Credit Institutions
-------------------------------------------------------------
The European Commission has approved under EC Treaty State aid
rules a Spanish scheme to support the financial sector by
providing guarantees to eligible financial institutions.  The
Commission found the measure to be in line with its Guidance
Communication on State aid to overcome the financial crisis.  In
particular, the scheme is non-discriminatory, limited in time and
scope, provides for behavioral constraints to avoid abuses and is
subject to a market-oriented remuneration from the beneficiaries.
The Commission therefore concluded that the scheme is an adequate
means to remedy a serious disturbance of the Spanish economy and
as such in line with Article 87.3.b of the EC Treaty.

Competition Commissioner Neelie Kroes said: "In the current
financial crisis it is important to address the liquidity problems
of banks as they can adversely affect lending to the real economy.
The Spanish scheme takes into account national particularities of
the banking market in Spain while ensuring the coherence necessary
to maintain a level playing field for all European banks."

The state guarantee would cover, against remuneration, the
issuance of notes, bonds and obligations admitted to the official
secondary market in Spain.  While the maturity of the financial
instruments covered would be in principle between three months and
three years, guarantees could be extended to instruments with a
maturity of up to five years in exceptional circumstances.  The
scheme's overall budget is capped at EUR100 billion, which can be
increased to EUR200 billion, if the market conditions request it.
Only solvent banks have access to the guarantee scheme.  The
Commission decision covers a period of six months following to
which Spain should terminate the scheme or renotify its extension
to the Commission.  The scheme contains elements of state aid but
foresees various safeguards aimed at ensuring that the state
intervention is proportionate, limited to what is necessary and
adequate instruments to reach this goal, in accordance with the EU
state aid rules, as laid down in the Commission's guidance
document.

In particular, the scheme provides for non-discriminatory access,
as it will be open to all solvent Spanish credit institutions
having a share of at least 1/1000 of the credit market, in as much
as the guaranteed instruments have been issued during the past
five years.  The guarantee is limited in time and scope, as both
its global budget and individual guarantees are capped.  For
instance, each bank may receive guarantees linked to its
historical market share and the state can limit the guarantee
amount when the risk in regard to the benefiting credit
institution is deemed too high.  To benefit from the guarantee,
participating banks are required to pay a market-oriented fee, in
line with recommendations from the European Central Bank.

Moreover, beneficiaries will be subject to a series of behavioral
commitments, to avoid an abusive use of the state support.  These
include restrictions on expansion and marketing. Finally, Spain
committed to notify restructuring plans for each beneficiary that
had effectively drawn on the guarantee and to report periodically
to the Commission on the implementation of the scheme.

In light of these commitments and conditions, the Commission
concluded that the scheme is an adequate means to address a
serious disturbance in the Spanish economy, in particular in
combination with the already approved Fund for the Acquisition of
Financial Assets from financial institutions which also targeted
funding problems of Spanish banks and had the goal of supporting
lending to the real economy.  The strict safeguards will ensure
that the state support is limited to what is necessary to
stabilize the Spanish financial sector and that negative spill-
over effects are minimized.


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


FORD MOTOR: Moody's Downgrades Senior Unsecured Rating to 'Caa1'
----------------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured rating
of Ford Motor Credit LLC to Caa1 from B3 after the Corporate
Family Rating of its ultimate parent, Ford Motor Company, was
downgraded to Caa3 from Caa1.  The outlook for the ratings of both
firms is negative.

One consideration in the downgrade of Ford Credit's ratings is the
increased potential that Ford could restructure its liabilities
through a distressed debt exchange and the ramifications of such
an action for Ford Credit.  A distressed offering could be seen by
Ford as a necessary condition to negotiating labor contract
concessions equal to those obtained by GM and Chrysler in
connection with their receiving support from the U.S. government.

Moody's believes that there is a low probability that such a
distressed offering by Ford would also involve Ford Credit's
creditors.  However, until there is greater clarity regarding the
operating prospects of the Detroit automakers, the auto finance
affiliates, including Ford Credit, could continue to face
heightened credit market uncertainty, thereby constraining their
financial and operating flexibility.

The Ford Credit downgrade also reflects the potential that
extended credit market dislocations, coupled with the global
economic downturn, could have the effect of permanently weakening
the longer-term operating fundamentals of the auto finance
captives of the Detroit automakers.  Should capital market access
and funding costs not return to historic norms, Ford Credit's
future business activities would likely narrow in scope, its
earnings and margins would erode, and its ability to absorb
cyclical credit losses would weaken.

Ford Credit continues to address current market conditions by
undertaking actions to preserve liquidity and capital levels.  In
Moody's view, Ford Credit has sufficient cash resources to support
near-term operating and debt repayment requirements, when
considering the firm's cash balances, operating cash flow, and
cash generated by expected further declines in earning asset
levels.  Moody's expects Ford Credit's leverage profile to remain
adequately positioned.

Moody's links the ratings of Ford Credit with those of Ford due to
the business and ownership connections that tie the two firms'
performance and prospects.  However, Moody's believes that the
risk of lower potential recovery that would accompany a Ford
distressed debt exchange is not likely to pertain to creditors of
Ford Credit.  Therefore, the recovery differential between the two
sets of creditors is supportive of the wider ratings notching
between Ford and Ford Credit that results from the rating actions.
Ford Credit's negative ratings outlook, mirroring the negative
outlook at Ford, is based upon continuing operating uncertainties
in the auto sector, as well as declining asset quality trends and
adverse funding conditions facing Ford Credit.

The last rating action was on November 7, 2008 when the ratings of
Ford Motor Credit LLC were downgraded to B3 from B2 with a
negative outlook.

Ratings affected by the actions include:

Issuer: Ford Motor Credit LLC:

-- Senior unsecured: to Caa1 from B3, Subordinate shelf: to
    (P)Caa3 from (P)Caa2

Issuer: FCE Bank Plc:

-- Senior unsecured: to Caa1 from B3

Issuer: Ford Credit Australia Ltd.:

-- Backed senior unsecured: to Caa1 from B3

Issuer: Ford Credit Canada Limited:

-- Backed senior unsecured: to Caa1 from B3

Issuer: Ford Motor Credit Co. of New Zealand Ltd.:

-- Backed senior unsecured: to Caa1 from B3

Issuer: Ford Credit Capital Trusts I, II, and III:

-- Backed preferred shelf: to (P)Caa3 from (P)Caa2

Ford Motor Credit LLC is the Dearborn, Michigan-based captive
finance arm of Ford Motor Company.  The company reported third
quarter 2008 total assets of US$155 billion.


FORD MOTOR: Moody's Downgrades CFR to 'Caa3'; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service lowered the Corporate Family Rating and
Probability of Default Rating of Ford Motor Company to Caa3 from
Caa1 and lowered the company's Speculative Grade Liquidity rating
to SGL-4 from SGL-3.  The outlook is negative.  The downgrade
reflects the increased risk that Ford will have to undertake some
form of balance sheet restructuring in order to achieve the same
UAW concessions that General Motors and Chrysler are likely to
achieve as a result of the recently-approved government bailout
loans.  Such a balance sheet restructuring would likely entail a
loss for bond holders and would be viewed by Moody's as a
distressed exchange and consequently treated as a default for
analytic purposes.

Bruce Clark, Senior Vice President with Moody's said, "In return
for its loans to GM and Chrysler, Washington is going to demand
that all stake holders step up and make sacrifices.  This will
mean wage and benefit concessions from the UAW, and haircuts to
debt for creditors."  Clark went on to explain, "Even if Ford ends
up not needing government loans because of its stronger liquidity
position, the company must have UAW parity with GM and Chrysler.
But, the UAW is unlikely to make concessions to Ford unless Ford's
creditors also bear some pain in the form of a debt
restructuring."

The terms of the recently-approved US$17.4 billion in short-term
government financing for GM and Chrysler include important
operational and financial targets.  Substantial progress in
achieving these targets will be important to: the government's
decision to extend these loans beyond March 31, 2009; the
provision of any additional funds that might be needed; and, the
restoration of the companies' operational competitiveness.  These
targets include substantial wage and benefit concessions by the
UAW and a reduction in debt by as much as two-thirds through a
debt for equity exchange.  Moody's expects that considerable
progress will be made in both of these targeted areas.

Ford has maintained that it is not facing a near-term liquidity
shortfall, and it is not seeking short-term financial assistance
from the government. Rather, it has requested the provision of up
to US$9 billion in bridge financing that would be available should
market and demand conditions during 2009 be worse than the company
anticipates.  Nevertheless, if GM and Chrysler achieve UAW
concessions in conjunction with a forced reduction in debt,
Moody's believes it will be critical for Ford to obtain similar
labor concessions in order to remain competitive.  However, Ford
is unlikely to receive those concessions in the absence of some
form of debt reduction that would entail a loss to bond holders.

Moody's expects that the framework of the government loans
extended to GM and Chrysler will create considerable labor and
cost of capital motivations for Ford to undertake a debt
restructuring even if the company does not have to draw on bailout
funds from the government.  Moreover, it is possible that the
provision of the committed borrowing facility that Ford is
requesting from the government could have labor concession and
debt reduction provisions similar to those contained in the loans
granted to GM and Chrysler.

Ford's liquidity position at September 30, 2008 consisted of
US$18.9 billion in cash and US$10.7 billion in undrawn committed
credit facilities.  The company believes that this liquidity
profile, combined with the cash saving initiatives it is
undertaking, should enable it to fund itself through 2009.
However, the weak outlook for the US economy, depressed consumer
confidence, and falling automotive demand in the US and Europe
could severely strain the company's liquidity position during
2009.  Ford's current operating plan anticipates that US light
vehicle sales will approximate 12.2 million units during 2009.
This planning assumption is significantly higher than the 10.3
million seasonally adjusted annual rate of US automotive shipments
for November.  As a result of these mounting operating pressures
Ford's Speculative Grade Liquidity rating was lowered to SGL-4,
indicating weak liquidity during the coming 12 to 15 months. These
same operating pressures result in the negative rating outlook.

The last rating action on Ford was an affirmation of the company's
Caa1 Corporate Family Rating on December 3, 2008.

Ford Motor Company, headquartered in Dearborn, Michigan, is a
leading global automotive manufacturer.


GENERAL MOTORS: S&P Won't Raise Credit Rating Above CCC on Loans
----------------------------------------------------------------
Standard & Poor's Ratings Services said that despite the nearly
US$21 billion in emergency loans announced by the U.S. and
Canadian governments to help General Motors Corp. and Chrysler LLC
avert near-term bankruptcies, S&P is not likely to raise the
credit ratings on these companies above the 'CCC' category in the
near future.  S&P lowered the corporate credit rating on Chrysler
to 'CC' from 'CCC+', reflecting S&P's view of the likelihood of a
distressed exchange offer for the company's secured debt.  S&P
also revised its post-default recovery expectations on GM's
unsecured debt because of the collateral to be pledged and the
relative priority of the new government loans, leading S&P to
lower the issue-level ratings on this debt.

The U.S. government announced Friday it would provide a total of
US$9.4 billion in loans to GM in two payments, on Dec. 29, 2008,
and Jan. 16, 2009; another US$4 billion could become available on
Feb. 17, 2009.  The U.S. government will lend US$4 billion to
Chrysler on Dec. 29, 2008.  On Saturday, the Canadian and Ontario
governments announced they would together provide about
US$3.3 billion to the Canadian units of GM and Chrysler in stages
over the next two months.  Sweden and Germany have also pledged to
aid their local units of the Michigan-based automakers.

S&P views the actions as necessary to give GM and Chrysler
sufficient liquidity to run their automotive operations for a few
more months, as opposed to facing severe liquidity shortfalls and
heightened risks of bankruptcies by early January 2009.  In
addition, S&P see these loans as underscoring the willingness of
the U.S. and other governments to prevent an abrupt and disorderly
collapse of the automotive industry, which would heighten
pressures on an already weak economy.

However, S&P does not believe governments are willing to provide
open-ended support to these companies.  President Bush, in
announcing the U.S. loan package, said the assistance will provide
a "brief window" for restructuring outside of bankruptcy court,
and if they are unable to do so, the loans "will provide time for
companies to make the legal and financial preparations necessary
for an orderly Chapter 11 process."

In addition, S&P believes the bankruptcy risk remains high for GM
and Chrysler, as well as for Ford Motor Co., for the rest of next
year because of a range of fundamental challenges that will not be
alleviated by the government funding and, in S&P's view, will keep
cash outflows high or potentially erode liquidity.  In S&P's view,
these challenges include:

-- Very weak auto sales in the U.S. and falling demand in Europe
    and other global markets. S&P expects U.S. light-vehicle
    sales to decline to 11.1 million units in 2009, from an
    expected 13.1 million in 2008.  Monthly sales in the U.S.
    could remain even lower on a seasonally adjusted annual basis
    in December and early 2009 after averaging about 10.4 million
    units per month in October and November;

-- The need to promptly carry out--as part of the deal to
    receive federal loans--a series of complex restructuring
    actions, including negotiating lower wages and benefits and
    revised work rules with unions, cutting more plant capacity,
    rationalizing dealer networks, and potentially extracting
    savings from suppliers;

-- Potential for further market share losses caused by continued
    or increased customer concerns about these companies' long-
    term financial viability;

-- Constrained credit markets, which have sharply reduced the
    ability of GMACLLC and DaimlerChrysler Financial Services
    Americas LLC to finance new purchases of GM or Chrysler cars.
    S&P is also increasingly concerned about their ability to
    provide adequate inventory financing for dealers. The federal
    loans announced on Friday do not directly bolster the
    struggling finance affiliates;

-- Potential supplier failures caused by sharply lower
    automobile volumes and extended holiday shutdowns of assembly
    plants.  Even if the worst-case scenario of an abrupt
    bankruptcy by GM or Chrysler is avoided, weaker suppliers
    still face major liquidity challenges for the foreseeable
    future; and

-- In GM's case, the unresolved exposure to bankrupt major
    supplier Delphi Corp. Delphi has been unable to emerge from
    bankruptcy protection and recently obtained a forbearance
    agreement from debtor-in-possession lenders to keep funding
    in place until June 30, 2009.  However, if Delphi is unable
    to extend this agreement or find alternative funding, S&P
    believes it may be forced to cease operations, which would
    put enormous pressure on GM's ability to maintain its North
    American operations.

The incoming Obama Administration may provide more extensive loans
to GM and Chrysler, provided that the companies present a plan for
financial viability to the government by Feb. 17, 2009, as
stipulated in the preliminary loan documents.  However, S&P can
envision scenarios under which such funding could be provided as
part of a prearranged bankruptcy filing.  Under terms of the
current loans, GM must reduce its unsecured indebtedness by at
least two-thirds through an exchange offer for equity or new debt.

Chrysler does not have unsecured debt but said Friday it intends
to work with its secured lenders to obtain concessions.  Although
it did not provide specific details, S&P interpret this to mean
that Chrysler will offer to exchange some or all of its secured
debt for equity or new debt at a steep discount to face value.
S&P likely would consider such an offer to be a distressed
exchange and, as such, tantamount to a default.

Ford is not currently seeking loans from the government because it
has an undrawn US$10.7 billion revolving credit facility, although
it has asked the U.S. government for a US$9 billion credit line to
help ensure that its liquidity remains sufficient through 2009 if
industry conditions remain very weak.  If Ford were to receive
such a large credit line, depending on its terms S&P could revise
its recovery ratings and potentially lower S&P's issue-level debt
ratings to reflect worsened recovery prospects.  However, S&P
notes that its recovery ratings on Ford's unsecured debt are
currently at the lowest level of '6', indicating S&P's expectation
of very low (0 to 10%) recovery in the event of a default.

S&P's recovery ratings on U.S. automaker debt are based on
simulated default scenarios that each include, among other things,
the assumption of a bankruptcy filing, multi-year reorganization,
and eventual emergence from bankruptcy.  S&P's expected recovery
prospects for secured and unsecured debtholders vary by automaker,
largely reflecting the company-specific mix of secured and
unsecured debt in the capital structure rather than vastly
different fundamentals for each company.

Regarding the rated auto supplier universe, S&P placed the ratings
on 15 companies on CreditWatch on Nov. 14, 2008, because of their
significant exposure to the Michigan-based automakers.  S&P
expects to complete S&P's review of these companies in January
2009.  Although the immediate risk of a GM or Chrysler bankruptcy
now seems reduced, the risk remains high in 2009 in S&P's view,
and production levels will likely be low enough -- even without an
automaker bankruptcy -- to inflict further severe distress on the
supply base.  Accordingly, S&P believes few auto supplier ratings
will be affirmed at current levels, and many ratings may be
lowered by more than one notch.


GENERAL MOTORS: S&P Downgrades Issue-Level Rating to 'C'
--------------------------------------------------------
Standard & Poor's Ratings Services said it has lowered its issue-
level ratings on the unsecured debt of General Motors Co. and
General Motors of Canada Ltd. to 'C' from 'CC'.  At the same time,
S&P revised its recovery rating on GM's debt to '6' from '4',
indicating that lenders can expect to receive negligible (0 to
10%) recovery in the event of a payment default.

The rating actions reflect GM's planned receipt of up to
US$13.4 billion of U.S. government loans, plus another
approximately US$2.5 billion from the Canadian and Ontario
governments.  In addition, Germany and Sweden have signaled that
they may make loans to GM units in those countries, which would
further diminish the value to unsecured creditors of the equity in
foreign subsidiaries.

"We expect these U.S. and Canadian government loans to be backed
by a security package that includes currently unencumbered assets,
which would lead to a significant decrease in value for unsecured
debtholders in the event of a bankruptcy or payment default," said
Standard & Poor's credit analyst Robert Schulz.

The likelihood of GM's initiating a distressed exchange offer on
its unsecured debt is already reflected in the company's corporate
credit rating of CC/Negative/--, which has not changed.  In
addition, issue-level ratings on GM's US$4.48 billion senior
secured revolving credit facility and US$1.5 billion term loan
remain at 'CCC,' two notches above the corporate credit rating.
The recovery rating on the secured debt remains at '1,' indicating
expectations of very high (90% to 100%) recovery in the event of a
payment default.


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


GENERAL MOTORS: Court Cuts Legal Fees in Investors Settlement
-------------------------------------------------------------
The Associated Press reports that U.S. District Judge Gerald
Rosen in Detroit has reduced legal fees in General Motors Corp.'s
US$303 million settlement with investors.

The AP states that the lawyers represented people who invested in
GM stock or bonds over a six-year period.  The AP relates that two
lead lawyers and five law firms, who represented the people who
invested in GM stock or bonds over a six-year period, asked for a
19% share in the settlement -- almost US$60 million -- which Judge
Rosen found excessive.  According to The AP, the judge instead
allowed the lawyers to get 15%, or US$45 million, which Judge
Rosen said would add up to a rate of US$1,825 per hour.

The complainants, according to The AP, claimed that they suffered
due to GM's accounting mistakes and misleading statements about
the health of the firm.  Their lawyers said that the case was very
risky due to GM's financial condition and that there was no
guarantee of victory, The AP relates.

                  SUV Plant in Dayton Closes

The AP reports that GM's sport-utility vehicle plant in the Dayton
suburb of Moraine has closed, after operating for 27 years.  The
AP states that Tuesday was the final day of production at the
plant.

According to The AP, GM said in June that it planned to close the
plant as high gasoline prices drove consumers away from SUVs.  The
AP says that about 1,080 hourly people worked at the plant.  About
572 workers will be working at GM's Moraine engine plant, which
the company co-owns with Isuzu.

            Restructuring Will Wipe Out Stockholders,
                   Credit Suisse Analyst Says

Greg Bensinger and Angela Greiling Keane at Bloomberg New report
that Credit Suisse Group AG analyst Christopher Ceraso said that
the restructuring needed to win government bailout could wipe out
GM's stockholders.

Bloomberg quoted Mr. Ceraso as saying, "Over the next two months,
as bondholders, union representatives and company management meet
to hammer out concessions, we think it will become increasingly
clear that the enormous sacrifice of value on the part of the
union and bondholders will require the complete or near-complete
elimination of the existing GM equity."

The U.S. government will also claim as much as 20% of GM's equity
value in exchange for the loans, Bloomberg states, citing Mr.
Ceraso.

Bloomberg relates that Mr. Ceraso cut his rating on GM shares to
"underperform" from "neutral".  Bloomberg states that on Dec. 22,
Mr. Ceraso cut in half the one-year target price on GM to US$1.

Citing Mr. Ceraso, Bloomberg says that GM may still end up in
bankruptcy if debtholders and labor groups fail to reach an
agreement.

                     About General Motors

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

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

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

                         *     *     *

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

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

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

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


MINJAN JSC: Creditors Must File Proofs of Claim by Jan. 1
---------------------------------------------------------
Creditors owed money by JSC Minjan are requested to file their
proofs of claim by Jan. 1, 2009, to:

         Ofer Becker
         Bellariastrasse 61
         8038 Zurich
         Switzerland

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


ROCHE ADVISER: Deadline to File Proofs of Claim Set Jan. 1
----------------------------------------------------------
Creditors owed money by LLC Roche Adviser are requested to file
their proofs of claim by Jan. 1, 2009, to:

         JSC RohrerTreuhand
         Nelkenstrasse 2
         6060 Sarnen
         Switzerland

The company is currently undergoing liquidation in Sarnen.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 14, 2008.


TRIDENT HOLDING: Creditors Have Until Jan. 1 to File Claims
------------------------------------------------------------
Creditors owed money by LLC Trident Holding are requested to file
their proofs of claim by Jan. 1, 2009, to:

         JSC Grivo
         Bahnhofstrasse 94
         8001 Zurich
         Switzerland

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


VORICO JSC: Proofs of Claim Filing Deadline is Jan. 1
-----------------------------------------------------
Creditors owed money by JSC Vorico are requested to file their
proofs of claim by Jan. 1, 2009, to:

         JSC Datwyler Treuhand
         Grundstrasse 72b
         8712 Stafa
         Switzerland

The company is currently undergoing liquidation in Stafa.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Feb. 7, 2007.


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


AGRO-PROGRESS LLC: Creditors Must File Claims by January 7
----------------------------------------------------------
Creditors of LLC Agro-Progress (EDRPOU 30713734) have until Jan.
7, 2009, to submit proofs of claim to:

         Mrs. Tatiana Viknianskaya
         Temporary Insolvency Manager
         Tel: 8(050)5228757

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

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

The Debtor can be reached at:

         LLC Agro-Progress
         Terebleche
         Glybotsky
         Chernovcy
         Ukraine


DOKPHARM LLC: Creditors Must File Claims by January 7
-----------------------------------------------------
Creditors of LLC Delta-Pharm-Plus Subsidiary Company Dokpharm
(EDRPOU 32008000) have until Jan. 7, 2009, to submit proofs of
claim to:

         Mr. Maxim Kolosar
         Temporary Insolvency Manager
         Apt. 77
         Energeticheskaya Str. 54
         Novy Svet
         Starobeshevsky
         87230 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 26, 2008.
The case is docketed as 45/225B.

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

The Debtor can be reached at:

         LLC Delta-Pharm-Plus Subsidiary Company Dokpharm
         Batischev Str. 26
         83004 Donetsk
         Ukraine


DONBASS MECHANICAL: Creditors Must File Claims by January 7
-----------------------------------------------------------
Creditors of Labour Red Banner Order Cjsc Building-Assembly Firm
Donbass Mechanical Assembly (EDRPOU 01415393) have until Jan. 7,
2009, to submit proofs of claim to:

         Mrs. Tatiana Pashkova
         Temporary Insolvency Manager
         Apt. 50
         Kuybishev Str. 240
         83122 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 12, 2008.
The case is docketed as 27/172B.

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

The Debtor can be reached at:

         Labour Red Banner Order Cjsc Building-Assembly
         Firm Donbass Mechanical Assembly
         Eupatoriyskaya Str. 8
         87515 Mariupol
         Donetsk
         Ukraine


INTERPIPE LTD: S&P Downgrades Corporate Credit Rating to 'SD'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered to
'SD' (selective default) from 'CC' its long-term corporate credit
rating on Ukrainian steel pipe producer Interpipe Ltd.

S&P also lowered the issue-level rating on the company's
US$200 million debt to 'D' from 'C', and the Ukrainian national
scale rating to 'SD' from 'uaCC'.  The recovery rating of '5' on
Interpipe's unsecured notes remains unchanged.

The downgrade reflects the announcement by Millen Financial Ltd.
(not rated) that it will proceed with the payment of the bonds
validly tendered at 47% of par, with a settlement, as well as
S&P's understanding that some bonds have been tendered, which
reflects the effective completion of the tender offer.

The rating action is in line with S&P's previous indications: As
S&P noted when S&P lowered the corporate credit rating to 'CC' on
Dec. 16, 2008, S&P considers this well-below-par offer to be tied
to a distressed company and, as such, tantamount to a default,
bearing in mind that Millen is ultimately owned by the same
shareholders as Interpipe.

S&P will re-evaluate the corporate credit rating shortly; based on
the information S&P has at the moment, S&P does not expect to
assign a long-term rating higher than 'CCC+' in the short term.


KHARKOV TRACTOR: Creditors Must File Claims by January 7
--------------------------------------------------------
Creditors of LLC Kharkov Tractor Plant Trading House (EDRPOU
32563935) have until Jan. 7, 2009, to submit proofs of claim to:

         Mr. V. Vakulenko
         Temporary Insolvency Manager
         Stadionnaya Str. 22
         Sakhnovschina
         Kharkov
         Ukraine

The Arbitration Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 13, 2008.
The case is docketed as B-39/133-08.

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

The Debtor can be reached at:

         LLC Kharkov Tractor Plant Trading House
         Moscow Avenue, 275
         Kharkov
         Ukraine


LVOV INSTRUMENTS: Creditors Must File Claims by January 7
---------------------------------------------------------
Creditors of declared LLC Lvov Instruments Plant
(EDRPOU 30275220) have until Jan. 7, 2009, to submit proofs of
claim to:

         Mr. Oleg Kobelnik
         Liquidator
         Dovbush Str. 21
         Pustomity
         81100 Lvov
         Ukraine

The Arbitration Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 7, 2009.
The case is docketed as 31/271.

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

The Debtor can be reached at:

         LLC Lvov Instruments Plant
         General Kurmanovich Str. 2
         79040 Lvov
         Ukraine


PIUK LTD: Creditors Must File Claims by January 7
-------------------------------------------------
Creditors of LLC Piuk Ltd. (EDRPOU 35633783) have until Jan. 7,
2009, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 13, 2008.
The case is docketed as 44/396-b.

The Debtor can be reached at:

         LLC Piuk Ltd.
         Panfilovtsev Str. 1
         01015 Kiev
         Ukraine


TECHNOTON LLC: Creditors Must File Claims by January 7
------------------------------------------------------
Creditors of LLC Technoton (EDRPOU 30996395)have until Jan. 7,
2009, to submit proofs of claim to:

         Mrs. Svetlana Kovina
         Liquidator
         Apt. 65
         Olkhovsky quarter, 14
         91015 Lugansk
         Ukraine

The Arbitration Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 22/50b.

         The Economic Court of Lugansk
         Geroiv VVV Square 3a
         91000 Lugansk
         Ukraine

The Debtor can be reached at:

         LLC Technoton
         Gastello Str. 39
         Lugansk
         Ukraine


TENDER GROUP: Creditors Must File Claims by January 7
-----------------------------------------------------
Creditors of LLC Tender Group (EDRPOU 35761599) have until Jan. 7,
2009, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 18, 2008.
The case is docketed as 44/391-b.

The Debtor can be reached at:

         LLC Tender Group
         Panfilovtsev Str. 1
         01015 Kiev
         Ukraine


UKRAINIAN PAPER: Creditors Must File Claims by January 7
--------------------------------------------------------
Creditors of LLC Science-Production Enterprise Ukrainian Paper
Packaging (EDRPOU 32209097) have until Jan. 7, 2009, to submit
proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 19, 2008.
The case is docketed as 23/155-b.

The Debtor can be reached at:

         LLC Science-Production Enterprise
         Ukrainian Paper Packaging
         Apt. 1
         Grigorenko avenue, 38
         02140 Kiev
         Ukraine


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


ARLO X: Moody's Cuts Rating on EUR10.5 Million Notes to 'Caa1'
--------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of one class
of notes issued by ARLO X Limited.

This transaction is managed synthetic single tranche CDO.
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; Fannie Mae
and Freddie Mac, which were placed into the conservatorship of the
U.S. government on September 8, 2008; and one Icelandic bank,
specifically Kaupthing Bank hf.  The transaction also has a
significant exposure to other corporate names which continue to
deteriorate in the current economic environment.  This will weigh
on the ratings of the tranches in this transaction.

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

  -- 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)

The rating action is:

ARLO X Limited

(1) Series 2007 (CDO Blau) EUR10,500,000 Secured Limited Recourse
Credit-Linked Notes due 2014

  -- Current Rating: Caa1
  -- Prior Rating: Baa2
  -- Prior Rating Date: 17 April 2008, downgraded to Baa2 from A2


BATHSIDE BAY: Appoints Joint Liquidators from Ernst & Young
-----------------------------------------------------------
On Dec. 10, 2008, Elizabeth Anne Bingham and Kerry Lynne Trigg of
Ernst & Young LLP were appointed joint liquidators for the
creditors' voluntary winding-up proceeding of:

   -- Bathside Bay Properties Ltd.,
   -- Mv Skywind Ltd.,
   -- Fast Ferries Ltd.,
   -- Seacat Ltd.,
   -- Hoverspeed Gb Ltd. and
   -- Sea Containers Ferries Ltd.

These companies can be reached through Ernst & Young LLP at:

         1 More London Place
         London
         SE1 2AF
         England


BOOTH IMPERIAL: Taps Joint Liquidators from BDO Stoy Hayward
-------------------------------------------------------------
Dermot Power and Matthew Dunham of BDO Stoy Hayward LLP were
appointed joint liquidators of Booth Imperial Ltd. on
Nov. 24, 2008, for the creditors' voluntary winding-up proceeding.

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

         Commercial Buildings
         11-15 Cross Street
         Manchester
         M2 1BD
         England


BRITISH AIRWAYS: Orders 11 New Generation Fuel Efficient Aircraft
-----------------------------------------------------------------
British Airways plc has placed firm orders for a fleet of 11 new
generation fuel efficient aircraft that will offer passengers
unrivaled levels of space and comfort on board.

The airline's wholly owned subsidiary BA CityFlyer is to take
delivery of the first of its new Embraer aircraft, which will fly
exclusively from London City Airport, from September 2009.

Firm orders have been placed for six Embraer 170 and five Embraer
190SR efficiency jets, known as E-jets, with options for three
more in an investment worth US$376 million, based on current list
prices.

They will replace the current fleet of 10 Avro RJ100 and two RJ85
aircraft operated by BA CityFlyer.  The new aircraft will be
greener and more fuel efficient with significantly lower carbon
dioxide emissions.  This was a key consideration in the order.

The Embraer 190SRs and Embraer 170s will operate on routes from
London City Airport to Scotland, Ireland and Europe.

A "double-bubble" fuselage design means there is more personal
space for passengers and with four-abreast seating throughout the
aircraft, everyone will have the choice of either a window or
aisle seat.

Peter Simpson, managing director of BA CityFlyer, said: "We are
very excited about this new fleet of fuel efficient aircraft which
will not only help us to meet our environmental objectives but
also provide more space and comfort for our customers.

"This significant investment in new aircraft further demonstrates
British Airways' commitment to services into and out of London
City for our customers.

"Having the combination of the Embraer 170s and 190SRs in the same
fleet will give us greater flexibility, enabling us to match
capacity with demand on routes within our existing and future
network."

                      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.


BRITISH ENERGY: EU Clears Proposed Acquisition by France's EdF
--------------------------------------------------------------
The European Commission has approved under the EU Merger
Regulation the proposed acquisition of British Energy (BE) by
Electricite de France (EdF).  The Commission's decision is
conditional upon EdF's commitment to divest the power generation
plant at Sutton Bridge in the UK (owned by EdF) and at Eggborough
(owned by BE), to sell certain minimum volumes of electricity in
the British wholesale market, to unconditionally divest a site
potentially suitable for building a new nuclear power station
located at either Dungeness or Heysham in the UK at the
purchaser's choice and to end one of the merged entity's three
grid connection agreements with the National Grid at Hinkley Point
in the UK.  The Commission concluded that the transaction, as
modified by these commitments, would not significantly impede
effective competition in the European Economic Area (EEA) or any
substantial part of it.

Electricite de France S.A. (EdF) is a company incorporated under
the laws of France active in the generation and wholesale trading
of electricity and in the transmission, distribution and retail
supply of electricity to all groups of customers.  In the UK, it
is active mainly in coal and gas power generation, wholesale,
supply and distribution of electricity.

British Energy (BE) is a UK-based company active in the markets
for the generation and wholesale of electricity and supply to
industrial and commercial customers.  BE has a predominantly
nuclear power generation portfolio.

The activities of EdF and BE overlap at the levels of generation
and wholesale as well as the supply of electricity to industrial
and commercial customers.

Although the combined entity would not have extremely high market
shares, the Commission found during its investigation that the
transaction, as initially notified, would have been likely to
raise serious competition concerns in four main areas.

Firstly, due to the combination of the flexible generation
portfolio of EdF and the base-load generation portfolio of BE's
nuclear power plants, the Commission was concerned that the
proposed transaction could have made it easier for the merged
entity to withdraw electricity supplies from the market in order
to increase price.

Secondly, the Commission was concerned that the combination of the
short generation position of EdF and the long generation position
of BE was likely to lead to an increased internal use of
electricity that would otherwise have been sold to the market.
This would have led to a reduction of liquidity which could have
had negative effects in both the wholesale and the retail supply
markets.

Thirdly, the Commission was concerned that there are a limited
number of sites likely to be suitable for the construction of a
first wave of new nuclear reactors in the framework of the UK
policy on building new nuclear power stations.  BE owns many of
the sites most likely to be suitable for new nuclear build, while
EdF owns key land at two such locations.  The transaction, as
originally notified would therefore lead to a high concentration
in the ownership of sites most likely to be suitable for new
nuclear build.

Finally, the combination of EdF and BE's current rights to
connections to the electricity transport network would have
enabled the merged entity to hold connection rights beyond its
combined capacity expansion plans, with the risk of unduly
delaying power generation projects of its competitors.

To address the above concerns, the parties submitted remedies.
Further to the results of the market test of these remedies and in
its own assessment, the Commission found that the remedies
proposed were not sufficient to remove the competition concerns
with respect to the two first areas of concern.  However,
subsequently, the parties submitted an improved remedy package
comprising the commitments to divest EdF's power generation plant
at Sutton Bridge and BE's generation plant at Eggborough, to sell
certain minimum volumes of electricity in the wholesale market for
a certain period of time when the combined entity would have had
the ability to internalize the use of electricity that it
produces, to divest a site potentially suitable for building a new
nuclear power station located at either Dungeness or Heysham and
to end one grid connection agreement with National Grid at Hinkley
Point.

The Commission concluded that the revised remedy package was
sufficient to remove all identified competition concerns.

                    About British Energy

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

                        *     *     *

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


CLARIS LIMITED: Moody's Downgrades Ratings on Two Series of Notes
-----------------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of two series of notes issued by Claris Limited.

These transactions are managed synthetic CDOs referencing a
portfolio of 124 corporate credits.

According to Moody's, the rating action is the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under Chapter
11 of the U.S. Bankruptcy Code on September 15, 2008 and the
Icelandic Kaupthing Bank hf.  The transaction also has a
significant exposure to other corporate names, such as GMAC LLC,
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)

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

The rating actions are:

Claris Limited:

(1) Series 82 EUR50,000,000 Algebra Floating Rate Credit Linked
Notes due 2017

  -- Current Rating: Baa2
  -- Prior Rating: Aa3
  -- Prior Rating Action Date: 28 December 2006, assigned Aa3

(2) Series 85 US$70,000,000 Algebra Floating Rate Credit Linked
Notes due 2017

  -- Current Rating: Ba2
  -- Prior Rating: A2
  -- Prior Rating Action Date: 5 December 2006, assigned A2


ELDON STREET: Appoints Joint Administrators from PwC
----------------------------------------------------
Anthony Victor Lomas, Dan Yoram Schwarzmann and Derek Anthony
Howell of PricewaterhouseCoopers LLP were appointed joint
administrators of Eldon Street Holdings Ltd. on Dec. 9, 2008.

The company can be reached at:

         Eldon Street Holdings Ltd.
         25 Bank Street
         London
         E14 6LE
         England


ENVOLVE PARTNERSHIPS: Taps Joint Liquidators from Baker Tilly
-------------------------------------------------------------
Andrew Martin Sheridan and Guy Edward Brooke Mander of Baker Tilly
Restructuring and Recovery LLP were appointed joint liquidators of
Envolve Partnerships For Sustainability on Dec. 4, 2008, for the
creditors' voluntary winding-up proceeding.

The company can be reached through Baker Tilly Restructuring and
Recovery LLP at:

         Hartwell House
         55-61 Victoria Street
         Bristol
         BS1 6AD
         England


EXCEL CAFE: Names Joint Administrators from Tenon Recovery
----------------------------------------------------------
T. J. Binyon and S. J. Parker of Tenon Recovery were appointed
joint administrators of Excel Cafe Bars Ltd. on Dec. 5, 2008.

The company can be reached at:

         Excel Cafe Bars Ltd.
         Falcon Court
         9 Saints Martins Way
         London
         SW17 0JH
         England


HIVEMEAD LTD: Taps Joint Administrators from PKF
------------------------------------------------
Ian Schofield and Charles Escott of PKF (UK) LLP were appointed
joint administrators of Hivemead Ltd. on Nov. 25, 2008.

The company can be reached through PKF (UK) LLP at:

         Pannell House
         6 Queen Street
         Leeds
         LS1 2TW
         England


MADOFF SECURITIES: Grant Thornton Named Provisional Liquidator
--------------------------------------------------------------
Poppy Trowbridge at Bloomberg News reports that Grant Thornton
U.K. LLP has been appointed provisional liquidator of Madoff
Securities International Ltd, the U.K. unit of Bernard Madoff's
firm.

Citing an e-mailed statement from the accountancy firm dated
Dec. 19, Bloomberg discloses Mark Byers, Andrew Hosking and Steve
Akers, all partners at Grant Thornton, will act as joint
liquidators.

Bloomberg relates that Grant Thornton said it "will be assessing
the assets and liabilities of the company, and will be cooperating
with the Financial Services Authority in the U.K. and the various
authorities in the United States".

According to the Daily Telegraph, 28 staff at the London fund have
been made redundant after liquidators were called in.

Amy Wilson at the Daily Telegraph writes it is understood the
fund's traders could not carry on doing business because all their
capital belonged to Mr. Madoff, who is now under house arrest over
an alleged US$50 billion investment fraud, and his family.

The fund, the Daily Telegraph says, was 88% owned by Mr. Madoff
while other family members owned the rest.

The fund did not take any client money and was run as a
proprietary hedge fund for the family, the Daily Telegraph notes.
Its assets stood GBP113 million in 2007, mainly in cash.

                    About Bernard L. Madoff

Bernard L. Madoff Investment Securities LLC is a leading
international market maker.  The firm has been providing quality
executions for broker-dealers, banks, and financial institutions
since its inception in 1960.  During this time, Madoff has
compiled an uninterrupted record of growth, which has enabled us
to continually build our financial resources.  With more than
US$700 million in firm capital, Madoff currently ranks among the
top 1% of US Securities firms.

As reported by the Troubled Company Reporter on Dec. 15, 2008, the
Securities and Exchange Commission has charged Bernard L.
Madoff and his investment firm, Bernard L. Madoff Investment
Securities LLC, with securities fraud for a multi-billion dollar
Ponzi scheme that he perpetrated on advisory clients of his firm.
The estimated the losses from Madoff's fraud were at least
US$50 billion.

As reported by the TCR on Dec 16, 2008, the Securities Investor
Protection Corporation, which maintains a special reserve fund
authorized by Congress to help investors at failed brokerage
firms, announced on Mon., Dec. 15, that it is liquidating Bernard
L. Madoff Investment Securities LLC of New York, N.Y., under the
Securities Investor Protection Act.


NEMUS II: S&P Downgrades Rating on Class F Notes to 'BB'
--------------------------------------------------------
Standard & Poor's Rating Services lowered to 'BB' from 'BBB' and
placed on CreditWatch negative its credit rating on the class F
notes issued by NEMUS II (Arden) PLC.  The 'BBB' rating on the
class E notes was also placed on CreditWatch negative.  The
ratings on the other classes issued by NEMUS II (Arden) are
unaffected.

The notes are backed by six loans secured by commercial properties
throughout the U.K. and Jersey.

The Carlton House loan is the fifth-largest loan in the collateral
pool, with a current outstanding balance of GBP11,960,000.  It is
secured by three office and retail properties in Sutton Coldfield,
West Midlands.  This loan was recently transferred into special
servicing following an event of default.  Liquidity will be
available to cover additional expenses, such as special
servicing fees, if required. However, drawings for the class F
notes are limited.  There are scenarios in which shortfalls in
interest or principal could be experienced in the future.

Our concerns have increased about the creditworthiness of the
Castle and Oriel loans. The Castle property leases may expire over
the next three years and the current macroeconomic environment may
adversely affect the reletting potential of these properties.
Both the Castle and Oriel loans mature in 2011, and given
significant market value declines in the U.K. as well as the
prevailing macroeconomic conditions, the refinance risk for these
loans has increased.

S&P expects these notes to remain on CreditWatch for an extended
period of time while S&P monitor the transaction.

Further information on this transaction is available to
subscribers of RatingsDirect, the real-time Web-based source for
Standard & Poor's credit ratings, research, and risk analysis, at
www.ratingsdirect.com.  Alternatively, call one of the following
Standard & Poor's numbers: Client Support Europe (44) 20-7176-
7176; London Press Office (44) 20-7176-3605; Paris (33)
1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-
5914; or Moscow (7) 495-783-4017.

                           Ratings List

                       NEMUS II (Arden) PLC
GBP260.87 Million Commercial Mortgage-Backed Floating-Rate Notes

               Rating Placed On CreditWatch Negative

               Class       To                  From
               -----       --                  ----
               E           BBB/Watch Neg       BBB

         Rating Lowered And Placed On CreditWatch Negative

               Class       To                  From
               -----       --                  ----
               F           BB/Watch Neg        BBB


OFFICERS CLUB: TimeC Buys 118 Stores; 1000 Jobs Secured
-------------------------------------------------------
Ian Green, Steve Ellis and Nick Reed of PricewaterhouseCoopers
LLP, were appointed as joint administrators of The Officers Club
Ltd and Petroleum Ltd on December 23, 2008.

The Officers Club is a high street menswear retailer with 150
stores throughout the United Kingdom including those operating
under the Petroleum brand, with head offices in Cramlington,
Northumberland.  Like many retail clothing chains The Officers
Club has been facing stiff competition, making trading conditions
even more difficult.

TimeC 1215 Ltd, a company backed by David Charlton, the chief
executive of The Officers Club, has purchased the business and
assets of 118 out of the 150 stores operated by the companies,
securing the continued employment of over 1000 members of staff
across the UK.

Ian Green, joint administrator and partner at
PricewaterhouseCoopers LLP in Leeds said: "We are delighted to be
able to announce this sale, resulting in the preservation of over
1000 jobs, particularly at this challenging time in the retail
sector.  The sale to TimeC 1215 Ltd represents a significantly
better result for the creditors of the companies than any other
alternative."

David Charlton, Director of TimeC 1215 Ltd said: "We are very
pleased to be able to secure this deal and protect the employment
of over 1000 people in the stores and head office.  We welcome the
opportunity to take the business forward and look forward to a
successful future."

The 32 stores excluded from the sale will be closed with immediate
effect.

               About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


ORCHID GROUP: 31 Pubs Sold to Spirit Group; 14 Pubs Closed
----------------------------------------------------------
David Chubb, Mike Jervis and Colin Haig, partners at
PricewaterhouseCoopers LLP and joint administrators of The Orchid
Group, in a press statement on Tuesday, December 23, 2008, said
that they have effected a sale of 31 of the remaining pubs in the
group to Spirit group as a going concern.  The Dragonfly in
Cheltenham has also been sold to an individual buyer as a going
concern.  This brings the total number of pubs saved from closure
to 272.

Unfortunately, it has not been possible to sell 14 of the
remaining pubs as a going concern, and accordingly the
administrators have no option but to begin closure of these pubs
with immediate effect.  The administrators, however, noted this
does mean the staff at these pubs will be made redundant.
Customers who had bookings with these establishments over the
festive season should endeavor to make alternative arrangements.

"We are still exploring options for the remaining 3 pubs in the
portfolio," the administrators said.

The pubs that are now closing are:

   -- Oban Inn, Oban;
   -- Bridgewater, Salford;
   -- Malt and Hoops and Cool Bar, Bournemouth;
   -- Ferry, Norwich;
   -- Falcon Tavern, Huntingdon;
   -- Millers, Saltford;
   -- Bear, Reading;
   -- Royal Hart, Ashford;
   -- St Mark's Tavern, Surbiton;
   -- Queen B, Chelmsford;
   -- Grand Hotel, Southend-on-Sea;
   -- Bar Room Bar @Tankard, Lambeth;
   -- Three Tuns, Canterbury; and
   -- Hand and Flower, Hammersmith.

Messrs. Chubb, Jervis and Haig of PricewaterhouseCoopers LLP were
appointed joint administrators to The Orchid Group on December 13,
2008.  Immediately following their appointment, they announced a
sale of 240 of the company's 289 pub portfolio to a new company
led by Orchid's existing management.  This sale saved 5,300 jobs
across the UK.

          About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


TAYLOR WIMPEY: Covenant Testing Date Deferred Until March 31
------------------------------------------------------------
Taylor Wimpey plc in a press statement on Wednesday,
December 24, 2008, said that it has reached agreement with the
providers of its bank facilities and its private placement
noteholders to defer the testing date of certain financial
covenants.

Taylor Wimpey said: "As a result of this deferral we will not be
required to test these covenants based on the 2008 year end
figures or be required to report on the company's compliance with
them until March 31, 2009.

"The group continues to be in full compliance with all its
existing covenants.  However, without this deferral and as
previously indicated, it is likely that we would have been in
breach of our interest cover covenants in January 2009 under the
original testing schedule for the year to December 31, 2008.

"Discussions with our debt providers continue on a constructive
basis.  We remain confident that a robust, stable medium term
financing solution for the Group, which takes into account the
requirements of all relevant stakeholders, will be achieved
prior to the end of this deferral period.

"We will update the market on current trading in our trading
statement on January 13, 2009 and will provide further information
on the progress of the financing discussions
to the market as appropriate."

                       About Taylor Wimpey

Headquartered in London, Taylor Wimpey plc --
http://www.taylorwimpey.com/-- builds homes in the U.K., North
America, Spain and Gibraltar.  Taylor Wimpey also operates in the
construction sector under the Taylor Woodrow brand.

                       *     *     *

As reported in the TCR-Europe on Nov. 21, 2008, Fitch Ratings
downgraded Taylor Wimpey plc's Long-term Issuer Default rating and
senior unsecured ratings to 'CCC' from 'B' and Short-term IDR to
'C' from 'B'.  All ratings are being maintained on Rating Watch
Negative.  Fitch simultaneously affirmed the 'RR4' Recovery Rating
on TW's senior unsecured debt instruments.

Fitch said the rating downgrades reflect the heightened default
risk facing TW as its next covenant testing date approaches (now
understood to be January 1, 2009, rather than mid-February 2009).
Due to the ongoing weakness in the UK housing market, TW is likely
to breach interest coverage covenants when next tested.  Although
the company continues to talk to its creditors in an effort to
renegotiate its covenant package, it has publicly stated that an
agreement is unlikely before the January test date.


WHITTARD OF CHELSEA: In Administration; Assets Sold to EPIC
-----------------------------------------------------------
Angela Swarbrick and Alan Hudson of Ernst & Young LLP were
appointed joint administrators of Whittard of Chelsea Ltd and
Boaters Coffee Co Ltd on Tuesday, December 23, 2008.

Whittard of Chelsea, established in 1886, employs circa 950
employees.  The company, headquartered in Stockwell, London, is a
specialist retailer of teas, coffees and related gifts that trades
from approximately 130 stores across the UK.  Boaters Coffee Co is
specifically wholesalers and retailers of flavored coffee
products.

The joint administrators upon appointment subsequently sold the
business and assets of the companies to EPIC Private Equity for an
undisclosed sum.  The businesses will continue to operate as a
going concern, and all stores will remain open for trading as
usual.

Angela Swarbrick, joint administrator, commented: "Whittard of
Chelsea and Boaters Coffee Co have been experiencing trading
difficulties because of uncertain economic conditions; this has
unfortunately resulted in the companies being unable to trade
outside of administration.  Fortunately a deal was able to be done
that sees the businesses of the companies able to continue to
trade and the Whittard of Chelsea name, with it's 122 year
heritage, remain on the high-street."

                 About Ernst & Young

Ernst & Young LLP -- http://www.ey.com/--  provides assurance,
tax, transaction and advisory services.


XELO IV: Moody's Cuts Rating on EUR10.5 Million Notes to 'Caa1'
---------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of one class
of notes issued by Xelo IV Public Limited Company
This transaction is managed synthetic single tranche CDO.

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; Fannie Mae
and Freddie Mac, which were placed into the conservatorship of the
U.S. government on September 8, 2008; and one Icelandic bank,
specifically Kaupthing Bank hf.  The transaction also has a
significant exposure to other corporate names which continue to
deteriorate in the current economic environment. This will weigh
on the ratings of the tranches in this transaction.

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

  -- 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)

The rating action is:

Xelo IV Public Limited Company

(1) Series 2007 (CDO Weiss) EUR 10,500,000 Secured Limited
Recourse Credit-Linked Notes Due 2014

  -- Current Rating: Caa1
  -- Prior Rating: A2
  -- Prior Rating Date: 02 April 2007, assigned A2


XSTRATA PLC: May Breach Debt Covenants as Coal Prices Tumble
------------------------------------------------------------
Ben Harrington at the Daily Telegraph reports Xstrata plc could
breach its debt covenants as analysts expect tumbling coal prices
to hit 2008 and 2009 earnings.

According to the report, UBS analysts Grant Spore and Paul
Galloway believe "consensus earnings before interest, tax,
depreciation and amortization (EBITDA) for 2008/09 of around
US$11.1 billion (GBP8.4 billion) are still too high and are likely
to come down further in the next few weeks".

The analysts warned Xstrata is likely to breach its debt covenants
of three times gross debt to EBITDA on US$10 billion of bank
loans, the report relates.

The covenants, the report notes, are tested every six months.

In the note entitled A Business Model on Ice, the analysts, as
cited by the report, said "the speed of the downturn in commodity
prices has left Xstrata with too much debt on its balance sheet".

Messrs. Spore and Galloway cut their rating on the company to
"neutral" from "buy" and slashed their price target from GBP19 to
800p, the report discloses.

                         About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a global diversified
mining group, listed on the London and Swiss Stock Exchanges, with
its headquarters in Zug, Switzerland.

Xstrata's businesses maintain a meaningful position in seven major
international commodity markets: copper, coking coal, thermal
coal, ferrochrome, nickel, vanadium and zinc, with a growing
platinum group metals business, additional exposures to gold,
cobalt, lead and silver, recycling facilities and a suite of
global technology products, many of which are industry leaders.
The Group's operations and projects span 18 countries.  Xstrata
employs approximately 56,000 people, including contractors.


ZAVVI UK: Goes Into Administration Following Supplier's Collapse
----------------------------------------------------------------
Tom Jack, Simon Allport and Alan Hudson of Ernst & Young LLP were
appointed joint administrators of zavvi UK (zavvi Group Ltd, zavvi
Retail Ltd, V R Services Ltd, Piccadilly Entertainment Stores Ltd,
Ablegrand Ltd, Ablegrand 2 Ltd) on Wednesday, December 24, 2008.
In addition, Tom Jack and Andrew Dann of Ernst & Young LLP were
appointed as liquidators of zavvi Online  (Guernsey) Ltd.  At this
time zavvi Ireland is not subject to any formal insolvency
proceedings.

The zavvi Group is the UK's largest independent entertainment
retailer trading from 125 stores across the UK (114) and Ireland
(11) currently employing 2,363 permanent staff and 1,052 temporary
staff.  The group was formed from a management buy out (MBO) of
the Virgin Megastore division of the Virgin Group in September
2007.

On November 27, 2008 Entertainment UK Ltd, the group's main
supplier, went into administration.  Since this time the group has
been unable to source stock in the usual way and has been forced
to enter into new trading arrangements.  The directors understand
it is unlikely that EUK will be sold as a going concern and the
zavvi Group has continued to experience significant difficulty in
obtaining stock on favorable credit terms.  This has resulted in
considerable working capital difficulties as a result of the
failure of EUK, in addition to continuing operating losses.

Tom Jack, joint administrator, commented "Since EUK went into
administration, and perhaps before, the impact of problems at EUK
on the zavvi Group has been significant.  Minimal deliveries, no
returns and worse trading terms are just some of the areas
impacted.  In the absence of a buyer for EUK, and with dire
trading conditions on the high street, the zavvi Group has seen a
material fall in sales and the directors have now been forced to
place parts of the group into administration."

Mr. Jack added "The administrators intend to continue to trade
zavvi UK with a view to selling all or part of its business as a
going concern.  We are grateful for the continued support of all
employees during this difficult time and would like to thank
everyone at zavvi for their commitment and hard work as the
business continues to trade."

Simon Douglas and Steve Peckham, the group's founders, added "We
would like to thank all of our employees for their commitment and
support since the launch of zavvi.  We have done all that is
possible to keep the business trading, but the problems
encountered with EUK, and particularly its recent failure, has
been too much for the business to cope with."

                 About Ernst & Young

Ernst & Young LLP -- http://www.ey.com/--  provides assurance,
tax, transaction and advisory services.


* UK: EC Okays Changes to Banking Financial Support Measures
------------------------------------------------------------
The European Commission has approved, under EC Treaty state aid
rules, modifications to the UK support measures to the banking
industry, initially approved by the Commission on October 13,
2008.  The amendments mainly concern the fee payable on guaranteed
liabilities and the widening of the range of currencies in which
the guaranteed instruments can be issued.  The modifications will
bring the UK scheme in line with those in other Member States and
support the provision of credit to the UK economy.  The Commission
therefore concluded that the UK support measures, as amended, are
compatible with the common market.

Competition Commissioner Neelie Kroes said: "The excellent
cooperation with the UK authorities and streamlined procedures
have once again led to a quick and effective Commission decision.
On this basis we have approved the amendment of the UK scheme in a
period of fast evolving financial markets in order to support
banks to provide sufficient credit to the UK economy".

On December 18, 2008, the UK notified a set of modifications it
intended to make to the UK support measures to the banking
industry.  These amendments were aimed at adapting the package to
the Commission's Communication on recapitalization and to bring it
in line with schemes in other Member States.

Concerning the UK Recapitalisation Scheme, the Commission
accepted, in line with its Communication on recapitalization that
fundamentally sound banks do not need to provide a restructuring
plan, but may instead provide a report that illustrates that they
remain fundamentally sound and how they plan to repay the state
capital.

Concerning the UK Guarantee Scheme the main amendments concern the
following basic features:

    * The UK will, as of January 1, 2009, also guarantee debt
      instruments issued in Japanese yen, Australian dollars,
      Canadian dollars and Swiss francs. Previously, the
      eligible debt was limited to instruments in sterling, US
      dollars or euros.

    * The fee payable on guaranteed liabilities will be based on
      a per annum rate of 50 basis points plus 100% of the
      institution's median five-year Credit Default Swap (CDS)
      spread during the period July 2, 2007 to July 1, 2008.
      This fee will apply retrospectively to all guaranteed
      issues under the original scheme since its launch on
      October 13, 2008.

    * As in the original Guarantee Scheme, the initial term of
      the instruments guaranteed under the amended scheme will
      remain no longer than three years.  However, participating
      institutions will now be able to roll over the guarantee
      on some individual instruments for an additional two
      years, ending in April 2014.  The proportion of the
      guaranteed liabilities that can be rolled over in this
      fashion shall not exceed one third of the overall
      guaranteed liabilities.

In addition, the requirement of a balance sheet growth limitation
to certain thresholds in the Guarantee and Recapitalisation Scheme
will no longer apply to those banks that can be considered as
fundamentally sound.

The Commission is satisfied that as a result of its dialogue with
the UK authorities, the UK support measures to the banking
industry have been adjusted to changing market conditions.  The
adjusted package takes into account the latest guidance of the
Commission.


* BOND PRICING: For the Week Dec. 22 to Dec. 26, 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
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public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
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Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
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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.

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Each Friday's edition of the TCR includes a review about a book of
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available at your local bookstore or through Amazon.com.  Go to
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                            *********


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,
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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.

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                 * * * End of Transmission * * *