TCREUR_Public/090123.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, January 23, 2009, Vol. 10, No. 16

                            Headlines

A U S T R I A

AUSTRIAN AIRLINES: EU Commission Authorizes EUR200 Mln Rescue Aid
EUO LLC: Claims Registration Period Ends February 12
EUROCHEM LLC: Claims Registration Period Ends February 18
MERLIN LLC: Claims Registration Period Ends February 11
PEMAR LLC: Claims Registration Period Ends February 12

PROJEKTGRUPPE LICHTKUNST: Claims Registration Period Ends Feb. 9
STADE MEDIZIN: Claims Registration Period Ends February 5
WIESER DACH: Claims Registration Period Ends February 11
WK-BAU LLC: Claims Registration Period Ends February 11


F I N L A N D

FREESTAR TECHNOLOGY: Changes Name to Rahaxi, Amends Stock Plan
KAUPTHING BANK: EU Commission Approves Finish State Guarantee


F R A N C E

* FRANCE: Banks to Get EUR10.5 Billion Government Aid
* FRANCE: Commission Okays Temporary Aid Scheme for Businesses


G E R M A N Y

BALI RESTAURANT: Claims Registration Period Ends February 13
DISC TECHNOLOGIE: Claims Registration Period Ends February 13
EASTERN SPRING: Claims Registration Period Ends February 12
HEAT MEZZANINE: Fitch Cuts Ratings on Two Notes to Low-B
HYPO REAL ESTATE HOLDING: Gets Add'l EUR12 Bln Debt Guarantee

MEDIA CONSULT: Claims Registration Period Ends February 10
QUAMT VERWALTUNGS: Claims Registration Period Ends February 26
SYBA SYSTEMBAU: Claims Registration Period Ends February 19
WOLF-GARTEN GMBH: Placed In Administration


I R E L A N D

ANGLO IRISH: Government Nationalization Cues S&P's 'D' Rating
LAMBAY CAPITAL: Moody's Junks Rating on GBP300 Mil. Securities
LAMBAY CAPITAL: Fitch Lowers Rating on GBP300 Mil. Notes to 'BB-'
NEW BOND: S&P Junks Rating on Class A2 Notes from 'AA+'
O'REILLY & CO: Goes Into Liquidation

TITAN EUROPE: S&P Cuts Ratings on Class D and E Notes to Low-B


I T A L Y

CHRYSLER LLC: Fiat Deal to Proceed If Co. Gets US$3BB Gov't Loans
CHRYSLER LLC: Moody's Says Fiat Alliance Won't Affect Junk Rating
CHRYSLER LLC: S&P Says 'CC' Ratings Not Affected By Fiat Alliance
FIAT SPA: Sales Decline, Debt Soars to US$7.67 Bln in 2008
TISCALI SPA: Cuts 250 Jobs in Italy, British Ops Up for Sale


K A Z A K H S T A N

AUTO INVEST: Proof of Claim Deadline Slated for February 27
BESLAN & K: Creditors Must File Claims by February 26
JAINAK BN: Claims Filing Period Ends February 27
JIDEK-S LLP: Creditors' Proofs of Claim Due on February 27
KAZTEMIRTRANS JSC: Moody's Reviews Issuer Rating for Likely Cut

KTZ JSC: Moody's Reviews Issuer Rating for Possible Downgrade
LOKADA LTD: Claims Registration Period Ends February 27
MONTAGE SERVICE: Proof of Claim Deadline Slated for February 27
STR PROJECTS: Creditors Must File Claims by February 27
UNIVERSAL-PLUS LLP: Claims Filing Period Ends February 27

VODNIK LLP:  Creditors' Proofs of Claim Due on February 27
WOOD BANK: Claims Registration Ends February 27


K Y R G Y Z S T A N

NIPPON CONCEPT: Creditors Must File Claims by February 20


L A T V I A

* LATVIA: European Union Council Approves EUR3.1 Billion Loan


L U X E M B O U R G

BERNARD L. MADOFF: 17 Luxembourg Funds Forced to Halt Redemptions


P O R T U G A L

PORTUGAL: Commission Okays EUR500,000 Aid Scheme for Businesses


R U S S I A

DAGESTAN OJSC: Creditors Must File Claims by Mar. 16
DOMOSTROY LLC: Ryazan Bankruptcy Hearing Set June 9
EXPERIMENTAL MECHANICAL: Creditors Must File Claims by Feb. 16
FORD MOTOR: Production Resumed at St. Petersburg Plant
LOKOMOTIV-TRANS-SEVER LLC: Creditors Must File Claims by March 16

METEO-PRIBOR KIMOVSKIY: Creditors Must File Claims by March 16
MIKO OIL CJSC: Creditors Must File Claims by March 16
RUSAL UC: Appoints Oleg Deripaska as Chief Executive
SIBIRSKAY TIMBER: Creditors Must File Claims by February 16
SMOLENSKAYA NEFTEPROMYSHLENNAYA: Claims Filing Ends March 16

TUVINSKIE AIRWAYS FSUE: Creditors Must File Claims by March 16

* Fitch Reports Negative Credit Outlook for Russian Construction


S E R B I A   &   M O N T E N E G R O

* SERBIA: IMF Approves EUR402.5 Mln Stand-By Arrangement


S P A I N

CEMEX SAB: S&P Downgrades Corporate Credit Rating to 'BB+'
EMPRESAS HIPOTECARIO: S&P's Ratings on Two Notes Tumble to 'D'


S W E D E N

TELEFONAKTIEBOLAGET LM ERICSSON: Cuts Jobs as Net Income Drops


S W I T Z E R L A N D

COATEC HOLDING: Creditors Must File Proofs of Claim by Feb. 5
HOSTELIA JSC: Creditors Must File Proofs of Claim by Jan. 31
LISDA LLC: Deadline to File Proofs of Claim Set January 31
MENTAL GUIDE: Creditors Have Until February 5 to File Claims
TELIT COMMUNICATION: Proof of Claim Filing Deadline is Jan. 30

VISENDA LLC: Creditors' Proofs of Claim Due by February 2
WICK & WEHRLI: February 5 Set as Deadline to File Claims
WICKLI BAUPLANUNGEN: Creditors Must File Claims by Feb. 19
WINDPOWER TRUST: Deadline to File Proofs of Claim Set Jan. 30
ZYKLUS GARTENBAU: Creditors Have Until Feb. 15 to File Claims


U K R A I N E

AVISTA LLC: Creditors Must File Claims by January 25
DATA GROUP-NIKOLAYEV: Creditors Must File Claims by January 25
GEOTEKS LLC: Creditors Must File Claims by January 25
METAL INDUSTRY: Creditors Must File Claims by January 25
NIKOPOL PLANT: Creditors Must File Claims by January 25

PMB-1 LLC: Creditors Must File Claims by January 25
PODOLEVSKAYA LLC: Creditors Must File Claims by January 28
RA-TEL LLC: Creditors Must File Claims by January 25
SANTA M LLC: Creditors Must File Claims by January 25
TARTAS LLC: Creditors Must File Claims by January 25

UKRPROMBANK: Placed in Receivership
VO METAL: Creditors Must File Claims by January 25

* UKRAINE: Cabinet, NBU Mulls Bank Refinancing Plan


U N I T E D   K I N G D O M

BISHOPSGATE ASSET: Moody's Withdraws 'Ba2' Rating on Notes
CO-OPERATIVE BANK: Fitch Affirms Support Rating Floor at 'BB+'
CTF MIDLANDS: Names Joint Administrators from Smith & Williamson
ESP TECHNOLOGIES: Appoints Liquidators from Smith & Williamson
FISHWORKS: Goes Into Administration; 90 Jobs Affected

FOUR SEASONS: Has Six Months to Restructure Defaulted Loans
GEORGE CARTER: Enters Administration; KPMG Appointed
GRAND PRIX RACEWEAR: Taps Joint Administrators from PKF
HAMMONDS SUPPORT: Goes Into Administration; Deloitte Appointed
KAUPTHING SINGER: Action Group Seeks GBP550Mln Loan from IoM Gov't

KAUPTHING SINGER: Tynwald Approves Early Payment Scheme
JOHN NICHOLLS: Goes Into Administration
LANDSBANKI GUERNSEY: Action Group Backs Creating Creditors Panel
LUXFER HOLDINGS: Moody's Cuts Probability of Default Rating to B3
MACKINTOSH & PARTNERS: Names Joint Liquidators from Tenon

MAPELEY: May Become Insolvent
MIDAS CAPITAL: Expects to Get Temporary Debt Waiver from Bankers
REAL HOTEL: Goes Into Administration; BDO Stoy Hayward Appointed
SABRE PRINT: Taps Joint Liquidators from PKF
VAN AAKEN: Appoints Joint Liquidators from Tenon Recovery

* BOOK REVIEW: Crafting Solutions for Troubled Businesses


                         *********


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


AUSTRIAN AIRLINES: EU Commission Authorizes EUR200 Mln Rescue Aid
-----------------------------------------------------------------
The European Commission on Monday, January 19, 2009, decided to
authorize rescue aid for the Austrian flag carrier.  The aid will
be in the form of a guarantee on a loan facility worth some
EUR200 million to keep the company operating until the Commission
can take a position on another issue involving possible State aid
linked to its privatization.

The Commission has examined the rescue aid for Austrian Airlines
notified by Austria and has authorized it after checking that it
complies with Community rules, notably:

    * the aid is in the form of a loan guarantee for EUR200
      million granted at market rates.

    * the amount of aid is limited to what is needed to manage the
      company;

The decision deals only with a short-term measure to tackle
liquidity problems that Austrian Airlines has encountered as a
result of the financial crisis.

Having examined the information provided by the Austrian
authorities the Commission has concluded that the rescue aid is
warranted and complies with the applicable provisions of the
Community framework for rescue and restructuring of firms in
difficulty.

The decision adopted does not concern the planned sale of Austrian
Airlines to Lufthansa or the long term plans of the airline which
have also been notified to the Commission by Austria as possible
State aid and are still being examined.

Headquartered in Vienna, The Austrian Airlines Group --
http://www.austrianairlines.co.at/-- divides its activities into
three segments: scheduled services, charter and complementary
services.


EUO LLC: Claims Registration Period Ends February 12
----------------------------------------------------
Creditors owed money by LLC Euo (FN 302458t) have until Feb. 12,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Guenther Hoedl
         Schulerstrasse 18
         1010 Wien
         Austria
         Tel: 513 16 55
         Fax: DW 33
         E-mail: Hoedl@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:55 a.m. on Feb. 26, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 12, 2008, (Bankr. Case No. 2 S 163/08w).


EUROCHEM LLC: Claims Registration Period Ends February 18
---------------------------------------------------------
Creditors owed money by LLC Eurochem (FN 115172x) have until
Feb. 18, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Andreas Alzinger
         Kärntner Ring 12
         1010 Wien
         Austria
         Tel: 515 50 333
         Fax: 515 50 50
         E-mail: a.alzinger@baierboehm.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:10 a.m. on March 4, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 707
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 16, 2008, (Bankr. Case No. 2 S 164/08t).


MERLIN LLC: Claims Registration Period Ends February 11
-------------------------------------------------------
Creditors owed money by LLC Merlin (FN 256966t) have until
Feb. 11, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Felix Stortecky
         Schulerstrasse 18
         1010 Wien
         Austria
         Tel: 01/513 88 37
         Fax: 01/513 88 37 22
         E-mail: office@stortecky.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on Feb. 25, 2009, for the
examination of claims at:

         Land Court of Korneuburg
         Room 204
         Korneuburg
         Austria

Headquartered in Leopoldsdorf bei Wien, Austria, the Debtor
declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 36 S
135/08g).


PEMAR LLC: Claims Registration Period Ends February 12
------------------------------------------------------
Creditors owed money by LLC Pemar (FN 307943h) have until Feb. 12,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Maximilian Schludermann
         Reisnerstrasse 32/12
         1030 Wien
         Austria
         Tel: 715 50 45
         Fax: 715 50 474
         E-mail: office@anwalt-vienna.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on Feb. 26, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 11, 2008, (Bankr. Case No. 2 S 161/08a).


PROJEKTGRUPPE LICHTKUNST: Claims Registration Period Ends Feb. 9
---------------------------------------------------------------
Creditors owed money by LLC Projektgruppe Lichtkunst (FN 265281w)
have until Feb. 9, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Gernot Klocker
         Mozartstrasse 18
         6850 Dornbirn
         Austria
         Tel: 05572/386869
         Fax: 05572/386869-3
         E-mail: office@kgk.co.at

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

         Land Court of Feldkirch
         Room 45
         Feldkirch
         Austria

Headquartered in Altach, Austria, the Debtor declared bankruptcy
on Dec. 15, 2008, (Bankr. Case No. 13 S 46/08g).


STADE MEDIZIN: Claims Registration Period Ends February 5
---------------------------------------------------------
Creditors owed money by LLC Stade Medizin (FN 247861b) have until
Feb. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Feb. 19, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 16, 2008, (Bankr. Case No. 5 S 142/08d).


WIESER DACH: Claims Registration Period Ends February 11
--------------------------------------------------------
Creditors owed money by LLC Wieser Dach (FN 274998i) have until
Feb. 11, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Karl Maier
         Hauptplatz 12
         8720 Knittelfeld
         Austria
         Tel: 03512-83428
         Fax: 03512-83428-50
         E-mail: office@ra-maier.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Feb. 25, 2009, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         1st. Floor
         Austria

Headquartered in Judenburg, Austria, the Debtor declared
bankruptcy on Dec. 16, 2008, (Bankr. Case No. 17 S 68/08f).


WK-BAU LLC: Claims Registration Period Ends February 11
-------------------------------------------------------
Creditors owed money by LLC WK-Bau (FN 30476v) have until Feb. 11,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Ilse Korenjak
         Gusshausstrasse 6
         1040 Wien
         Austria
         Tel: 01/512 21 02
         Fax: 01/512 21 02 20
         E-mail: office@buresch-korenjak.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Feb. 25, 2009, for the
examination of claims at:

         Land Court of Korneuburg
         Room 204
         Korneuburg
         Austria

Headquartered in Maria Lanzendorf, Austria, the Debtor declared
bankruptcy on Dec. 11, 2008, (Bankr. Case No. 36 S 134/08k).


=============
F I N L A N D
=============


FREESTAR TECHNOLOGY: Changes Name to Rahaxi, Amends Stock Plan
--------------------------------------------------------------
FreeStar Technology Corporation disclosed in a regulatory filing
with the Securities and Exchange Commission that it filed an
amendment to its articles of incorporation with the Secretary of
State of Nevada to change the company's name to Rahaxi, Inc.  The
company stated that the amendment was also made to implement a
1-for-3 reverse stock split of its common stock.

The amendment was approved by holders of a majority of the
outstanding shares of the company through a proxy statement or
written consent solicitation that was mailed to stockholders and
filed with the SEC.

The amendment to the company's Articles of Incorporation to
implement the reverse stock split and name change became effective
on Nov. 21, 2008.

At that time, each 3 outstanding shares of common stock of the
company will be combined into and become 1 outstanding share of
common stock of the company.  No fractional shares will be issued
in connection with the reverse stock split, all fractional shares
that would have resulted from the reverse split shall be rounded
up to the next whole share.

In a separate filing, the company stated that the board of
directors of Rahaxi, Inc., fka FreeStar Technology Corporation,
adopted an amendment to the company's 2007 Stock Incentive Plan.

The amendment increased the number of shares available under the
Stock Incentive Plan by an additional 35 million shares of Common
Stock for a total of 58,333,333 shares authorized thereunder (on a
post one for three reverse stock split on Nov. 21, 2008).

A full-text copy of the 2007 Stock Incentive Plan is available for
free at: http://ResearchArchives.com/t/s?3855

                 About FreeStar Technology Corp.

Based in Dublin, Ireland, FreeStar Technology Corp. (OTC BB: FSRT)
-- http://www.freestartech.com/-- nka Rahaxi, Inc provides
electronic payment processing services, including credit and debit
card transaction processing, point-of-sale related software
applications and other value-added services.  The company was
incorporated in the State of Nevada.  The company also has offices
in Helsinki, Finland; Stockholm, Sweden; Geneva, Switzerland; and
Santo Domingo, the Dominican Republic.

Freestar Technology's balance sheet at Sept. 30, 2008, showed
total assets of US$3,466,150 and  total liabilities of
US$5,648,246, resulting stockholders' deficit of US$2,182,096.

For three months ended Sept. 30, 2008, the company posted net loss
of US$3,351,972 compared with net loss of US$5,639,278 for the
same period in the previous year.

As of Sept. 30, 2008, the company has total current assets of
US$1,615,817 and total current liabilities of US$5,072,241,
resulting in a working capital deficiency of US$3,456,424.  The
company has cash and cash equivalents of US$506,915 at Sept. 30,
2008, and an accumulated deficit of US$100,921,784.

                       Going Concern Doubt

New York-based RBSM LLP expressed substantial doubt about FreeStar
Technology Corp.'s ability to continue as a going concern after
auditing the company's consolidated financial statements for the
year ended June 30, 2007.  The auditing firm said the company is
experiencing difficulty in generating sufficient cash flow to meet
its obligations and sustain its operations.


KAUPTHING BANK: EU Commission Approves Finish State Guarantee
-------------------------------------------------------------
The European Commission has approved under EC Treaty state aid
rules a Finnish state guarantee accompanying a private sector
arrangement to the benefit of depositors in the Finnish branch of
the insolvent Kaupthing Bank hf.  The measure guarantees the banks
who ensured full compensation of Kaupthing's Finnish depositors
against legal risks.  The Commission found the measure to be in
line with its Guidance Communication on state aid to overcome the
financial crisis.  In particular, the measure is necessary to
preserve confidence in the financial markets and is limited to the
minimum necessary to achieve this objective.  The Commission
therefore concluded that the scheme was an adequate means to
remedy a serious disturbance of the Finnish economy and as such in
line with Article 87.3.b of the EC Treaty.

Competition Commissioner Neelie Kroes said: "The state guarantee
combined with the Finnish banks' initiative will help to maintain
depositors' confidence and stability in the Finnish banking
sector.  The Commission decision demonstrates once again the value
of state aid policy in this time of financial crisis."

The failure of the Icelandic Kaupthing hf. triggered also the
failure of its Finnish branch.  As a result, the branch's
depositors were unable to make immediate withdrawals or might have
lost part of their deposits.  Fearing a broader loss of confidence
among Finnish depositors in general, the main Finnish banks
offered to compensate depositors in full.

The three commercial banks involved, - Nordea Bank Finland plc,
OP-Pohjola Group Central Cooperative and Sampo Bank plc, and a
special purpose vehicle took over the credit claims and other
assets of Kaupthing Bank hf. and settled all the deposit claims in
Finland.  The Finnish State provided a guarantee to the
participants, to cover the legal risks, i.e. potential economic
losses suffered from recovery claims or equivalent insolvency
claims.

While this guarantee includes state resources, the measure clearly
helps to implement a private arrangement to restore the confidence
in the Finnish banking sector and more generally in the Finnish
economy.  Public confidence is, beside adequate liquidity, one of
the essential conditions for the proper functioning of the banking
sector.  Hence, if the issue of lack of confidence were not
addressed, it would result not only in difficulties for the
banking sector, but also, due to the financial sector's pivotal
role in providing financing to the rest of the economy, have a
systemic and harmful spillover effect on the Finnish economy as a
whole.

In addition, in the light of planned co-operation between the
Finnish and Icelandic authorities, the risk of recovery claims
materializing appears low.  This, in turn, minimizes the legal
risk of claims and thus the amount of potential indemnity payments
by the state.

Therefore, the Commission concluded that the guarantee would not
give rise to disproportionate distortions of competition within
the Single Market.

                    About Kaupthing Bank

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

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

Citing a court filing by Olafur Gardarsson, Reuters disclosed
Kaupthing has about US$14.8 billion of principal assets, including
US$222 million located in the United States, and US$26
billion of principal indebtedness.


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


* FRANCE: Banks to Get EUR10.5 Billion Government Aid
-----------------------------------------------------
France will provide a further EUR10.5 billion (US$13.5 billion) in
aid to the country's biggest lenders in exchange for their top
executives giving up bonuses, Bloomberg News reports.  Last month,
the report recalls, the government pumped EUR10.5 billion into its
six largest financial institutions.

The new funds, which is intended to boost every bank's Tier 1
ratio by 50 basis points, will be made available "shortly," said a
finance ministry statement cited by Bloomberg News.

According to the report, the finance ministry said banks will have
a choice to issue by Aug. 31 either subordinated debt, the
instrument used in the last aid package, or preferential shares
without voting rights.  Preferential shares will be better
remunerated for the government, with a rate up to twice as high as
for debt, the ministry said.

French President Nicolas Sarkozy, the report relates, has been
pressuring banks in recent days, saying repeatedly that they
shouldn't pay bonuses to management or dividends to shareholders.

"We ask banks that make a profit to finance the economy" and not
reward shareholders, Finance Minister Christine Lagarde was cited
by Bloomberg News as saying.  The state wants banks to use 2008
earnings to boost shareholder equity while the more profitable
banks may still pay a dividend, she said.


* FRANCE: Commission Okays Temporary Aid Scheme for Businesses
--------------------------------------------------------------
The European Commission has authorized, under EC Treaty state aid
rules, the first in a series of aid measures for businesses
adopted by France to tackle the current economic crisis.  The
scheme will allow state, regional or local authorities and certain
public bodies to grant aid of up to EUR500,000 in 2009 and 2010 to
businesses which find themselves in difficulty as a result of the
current economic crisis or are experiencing financing problems
because of the credit squeeze.

Competition Commissioner Neelie Kroes said that the measure would
give a shot in the arm to businesses affected by the current
economic situation without leading to undue distortions of
competition.  The effectiveness of the French authorities'
response had enabled the Commission to come to a decision very
quickly.

The scheme meets the conditions imposed by the Commission's
temporary framework giving Member States additional possibilities
for providing businesses with improved access to financing during
the economic and financial crisis.  It is therefore, compatible
with Article 87(3)(b) of the EC Treaty, which permits aid intended
to remedy a serious disturbance in the economy of a Member State.

The scheme is based on the provisions of the temporary framework
that deal with compatible aid of a limited amount.  In particular,
the maximum amount of aid does not exceed EUR500,000 per company
and the scheme applies only to businesses which were not in
difficulty on July 1, 2008 or which were not in difficulty then
but became so subsequently as a result of the economic crisis.

This scheme is the first measure authorized for France under the
new temporary framework for state aid adopted in principle by the
Commission on December 17, 2008.  France is the second country,
after Germany, to avail itself of this new temporary framework.


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


BALI RESTAURANT: Claims Registration Period Ends February 13
------------------------------------------------------------
Creditors of Bali Restaurant X.Sense GmbH have until Feb. 13,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:25 a.m. on March 13, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Hall 1240
         Luxemburger Strasse 101
         50939 Cologne
         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. Ruediger Werres
         Friesenplatz 17 a
         50672 Koeln
         Germany

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

The Debtor can be reached at:

         BALI Restaurant X.Sense GmbH
         Attn: Ting Soan Tio, Manager
         Bruesseler Platz 2
         50672 Koeln
         Germany


DISC TECHNOLOGIE: Claims Registration Period Ends February 13
-------------------------------------------------------------
Creditors of Disc Technologie Center GmbH have until Feb. 13,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on March 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 Schwerin
         Hall 7
         Demmlerplatz 14
         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:

         Dirk Decker
         Obotritenring 98
         19053 Schwerin
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 1, 1009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Disc Technologie Center GmbH
         Attn: Steen Knuppert-Hansen, Manager
         Gewerbestrasse 1
         23942 Dassow
         Germany


EASTERN SPRING: Claims Registration Period Ends February 12
-----------------------------------------------------------
Creditors of EASTERN SPRING Outdoor Traveller Shop GmbH have until
Feb. 12, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9.30 a.m. on March 19, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Nuernberg
         Meeting Hall 152/I
         Flaschenhofstr. 35
         Nuernberg
         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 Roemer
         Äußere Sulzbacher Str. 155,
         90491 Nuernberg
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 8, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Eastern Spring Outdoor Traveller Shop GmbH
         Attn: Bogdan Fegus-Sandulescu, Manager
         Laufertorgraben 4
         90489 Nuernberg
         Germany


HEAT MEZZANINE: Fitch Cuts Ratings on Two Notes to Low-B
--------------------------------------------------------
Fitch Ratings has downgraded the ratings of H.E.A.T Mezzanine S.A.
Compartment 3 notes due February 2015 and removed them from Rating
Watch Negative:

  - EUR229,740,000 class A notes (ISIN: XS0286893572): downgraded
    to 'A' from 'AAA'; off RWN; Outlook Stable

  - EUR31,000,000 class B notes (ISIN: XS0286893903): downgraded
    to 'BB' from 'A'; off RWN; Outlook Stable

  - EUR25,500,000 class C notes (ISIN: XS0286894208): downgraded
    to 'B' from 'BBB'; off RWN; Outlook Stable

Fitch has simultaneously withdrawn the ratings of all H.E.A.T
Mezzanine S.A. Compartment 3 notes as the arranger notified Fitch
in December 2008 that it would no longer provide updated portfolio
information following noteholder consent to waive the issuer's
obligation to maintain a Fitch rating.

The notes were placed on RWN on July 10, 2008 reflecting the
potential downgrades due to the new Global Rating Criteria for
Corporate CDOs.  The downgrade action taken reflects the effect of
these new criteria as well as the deterioration in the portfolio.
For this review Fitch used the latest investor report dated 31
October 2008 containing details about repaid loan agreements,
portfolio companies on the monitoring list and merged companies.
Additionally, the credit assessment of the individual portfolio
companies by Creditreform Rating AG based mostly on 2006 financial
year-end financial figures provided to Fitch in November 2007 was
integrated into the analysis.

Having tracked the performance of 11 Fitch-rated German Mezzanine
SME CLOs, which were initially assessed by means of mapping, Fitch
notes that the average credit quality of the borrowers in these
transactions lies one notch below the initial credit assessment.
In resolving the RWN status of the H.E.A.T Mezzanine S.A.
Compartment 3 notes, Fitch assumed the same average portfolio
migration (one notch lower) and combined this assumption with the
available portfolio information.

This transaction is a cash securitization of subordinated loans to
German small and medium-sized enterprises.  As of the review in
January 2009, based on the latest portfolio information available
to Fitch, the portfolio contained 58 obligors (59 assets).  Two
portfolio companies have merged and are therefore regarded by
Fitch as one borrower.  The largest exposure accounted for 4.8% of
the outstanding portfolio amount and the top three obligors for
12.5% of the portfolio.

Since closing in February 2007 two loan agreements have been
terminated with full repayment of the loan notional, and in one
case also including the make-whole amount.  As of the last payment
date, the balance of the principal deficiency ledger had been
reduced to zero.  There is uncertainty about the issuer's actions
regarding the change of control in two further portfolio
companies.

Overall, in Fitch's view, the portfolio has deteriorated.  There
has been one default event.  Several companies on the issuer's
monitoring list are experiencing financial difficulties ranging
from liquidity constraints to restructuring and search for a new
investor.  Additionally, the issuer's actions are pending
regarding another company whose management is discussing waiver of
loan nominal or reduction of interest payments with the issuer.

The securitized debt instruments comprising the portfolio are
deeply subordinated.  As a result, Fitch assumes no recovery in
its analysis.  In addition to default simulations using its
Portfolio Credit Model, Fitch has performed cash-flow analysis to
stress possible interest rate and default timing patterns.  The
transaction benefits from excess spread and a principal deficiency
mechanism for excess spread trapping.  The structure is most
sensitive to front-loaded default timing.  The influence of
interest rate changes is limited due to an interest rate hedge
referencing the outstanding note balance.  Based on the analysis,
the credit enhancement derived from both subordination and excess
spread was not sufficient to justify the previous ratings of the
notes.


HYPO REAL ESTATE HOLDING: Gets Add'l EUR12 Bln Debt Guarantee
-------------------------------------------------------------
The German Financial Markets Stabilisation Fund ("SoFFin") has
extended its framework guarantee granted to Hypo Real Estate Group
by an additional EUR12 billion, bringing the aggregate guarantee
amount to EUR42 billion, Hypo Real Estate Holding AG, the holding
company for the Group, said in a statement Tuesday.

Hypo Real Estate Bank AG, part of Hypo Real Estate Group, can use
the additional guarantees to be issued by SoFFin to collateralize
debt securities to be issued, which must be due for repayment by
June 12, 2009 at the latest.

Hypo Real Estate Bank AG will pay to SoFFin a pro-rata commitment
commission of 0.1% on the undrawn portion of the framework
guarantee, and a 0.5% p.a. fee on guarantees drawn upon.

Negotiations between Hypo Real Estate and SoFFin regarding more
extensive and longer-term liquidity and capital support measures
for the Group have not yet been finalised.

About two weeks ago, SoFFin extended its EUR30 billion framework
guarantee for the Group from January 15, 2009 until April 15,
2009.  Under the extended guarantee, Hypo Real Estate Bank AG can
use the SoFFin guarantees to collateralize debt securities to be
issued, which must be due for repayment by April 15, 2009 at the
latest.  Hypo Real Estate Bank AG will then pay to SoFFin a pro-
rata commitment commission of 0.1% of the undrawn portion of the
framework guarantee.  The fee for guarantees drawn will be 0.5%
p.a. (previously 1.5% p.a.).

Bloomberg News relates the Group received a EUR50 billion bailout
in October after its Dublin-based Depfa unit failed to get short-
term funding from the German government, central bank and
financial institutions.

                      About Hypo Real Estate

Germany-based Hypo Real Estate Holding AG (FRA:HRXG) --
http://www.hyporealestate.com/-- is a German holding company for
the Hypo Real Estate Group.  It is an international real estate
financing company, combining commercial real estate financing
products with investment banking.  The Company divides its
operations into three business units: Commercial Real Estate,
which provides real estate financing on the international and
German market; Public Sector & Infrastructure Finance, and Capital
Markets & Asset Management.  Hypo Real Estate Group operates
through a number of subsidiaries, including, among others, Hypo
Real Estate Bank International AG that focuses on Pfandbrief-based
commercial real estate financing in all international markets, and
offers large-volume investment banking and structured finance
transactions; Hypo Real Estate Bank AG that focuses on the
commercial real estate financing and refinancing business in
Germany, and DEPFA Bank plc in Dublin, Ireland, which is a
provider of public finance.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 2,
2008, Dominion Bond Rating Service downgraded its long-term
ratings for Hypo Real Estate Holding AG (Holding) and related
entities (together Hypo Real Estate or the Group), including the
Senior Unsecured Long-Term Debt rating for Holding, which was
downgraded to A (low) from "A".  Concurrently, all ratings have
been placed Under Review with Negative Implications.

DBRS's rating action followed the announcement of Hypo Real
Estate's Q3 2008 results, the announcement of an additional EUR20
billion short-term debt guarantee and of additional information
about the Group's liquidity challenges, earnings outlook and
pending application for more comprehensive external support.

The downgrade and the Under Review Negative status reflect DBRS's
concern that Hypo Real Estate's franchise has been weakened by its
ongoing liquidity challenges.  The Group's lack of access to
market funding currently restricts its ability to write new
business and requires it to seek more comprehensive support,
demonstrating the weakening of its intrinsic fundamentals, the
rating agency said.

A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group
incurred a consolidated pre-tax loss of EUR3.105 billion for the
third quarter of 2008 compared with a pre-tax profit of EUR237
million in the corresponding previous year period.  The quarterly
loss is mainly attributable to the writeoff of goodwill
and other intangible assets attributable to the initial
consolidation of DEPFA Bank Plc (EUR2.482 billion).

On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's
Ratings Services lowered its long-term counterparty credit ratings
on the seven rated entities of Hypo Real Estate (HRE) group to
'BBB' from 'BBB+', namely, Germany-based commercial real estate
lenders Hypo Real Estate Bank International AG and Hypo Real
Estate Bank AG, public-finance lenders Depfa Deutsche
Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and
Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank
Bank International S.A.

"These rating actions reflect the group's strained financial
profile, weak funding position, and concerns about the viability
of its business model," said Standard & Poor's credit analyst
Volker von Kruechten.  "We expect HRE to restructure and downsize,
which may cause further pressure on earnings and capital, owing to
the difficult market environment and a deteriorating credit
cycle."


MEDIA CONSULT: Claims Registration Period Ends February 10
----------------------------------------------------------
Creditors of Media Consult Werbeagentur GmbH have until Feb. 10,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on March 19, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Bochum
         Hall A29
         Ground Floor
         Main Building
         Viktoriastrasse 14
         44787 Bochum
         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:

         Moritz Hansberg
         Huestrasse 34
         44787 Bochum
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 6, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Media Consult Werbeagentur GmbH
         Hattinger Str. 405
         44795 Bochum
         Germany

         Attn: Hans-Guenter Macho, Manager
         Lothingstr. 8
         42289 Wuppertal
         Germany


QUAMT VERWALTUNGS: Claims Registration Period Ends February 26
--------------------------------------------------------------
Creditors of Quamt Verwaltungs-GmbH have until Feb. 26, 2009, to
register their claims with court-appointed insolvency manager.

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

The meeting of creditors will be held at:

         The District Court of Stade
         Hall 113
         Main Building
         Wilhadikirchhof 1
         21682 Stade
         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. Jur. Achim Ahrendt
         Albert-Einstein-Ring 11
         22761 Hamburg
         Germany
         Tel: 040/899 56-0
         Fax: 040/899 56-41

The District Court opened bankruptcy proceedings against the
company on Jan. 8, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Quamt Verwaltungs-GmbH
         Sophie-Scholl-Weg 6
         21684 Stade
         Germany

         Attn: Mathias Müggenburg, Manager
         Bremervoerder Strasse 79 a
         21682 Stade
         Germany


SYBA SYSTEMBAU: Claims Registration Period Ends February 19
-----------------------------------------------------------
Creditors of Syba Systembau GmbH have until Feb. 19, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on April 2, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden
         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:

         Olaf Seidel
         Am Schiesshaus 1-3
         01067 Dresden
         Website: www.worako.de

The District Court opened bankruptcy proceedings against the
company on Jan. 8, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Syba Systembau GmbH
         Attn: Holger Schlage, Manager
         Hohe Strasse 8
         01662 Meissen
         Germany


WOLF-GARTEN GMBH: Placed In Administration
------------------------------------------
DIYWEEK.net reports that Wolf-Garten GmbH has been placed in
administration after running into severe cash flow problems.

According to the report, 200 jobs at the company's Betzdorf
factory are at risk, although directors remain optimistic that the
business won't go under.

"There are a number of conversations underway with possible
strategic investors," Manfred Eckermeier, a company spokesman, was
quoted by the report as saying.

However, the UK division of the company is currently unaffected by
the situation in Germany, the report notes.

The report relates personnel at the Worcester office have been
told to continue working and that it is business as usual until
further information is provided from the German parent company.

Established in 1922 Wolf-Garten GmbH supplies garden tools and
equipment to 35 countries internationally.


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


ANGLO IRISH: Government Nationalization Cues S&P's 'D' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its
ratings on GBP300 million 6.25% Tier 1 preference shares issued by
Anglo Irish Bank Corp. Ltd. (previously a public limited company;
A-/Watch Neg/A-1) to 'D' from 'B'.  At the same time, the 'B'
issue ratings on these preference shares were removed from
CreditWatch, where they had been placed with negative implications
on Sept. 30, 2008.

The 'B' issue ratings on Anglo's other undated perpetual
instruments are unchanged.

The lowering of the ratings on the GBP300 million 6.25% Tier 1
preference shares to 'D' reflects their nationalization by the
government of Ireland, along with all the common equity in Anglo.
The preference shares, unlike Anglo's other undated subordinated
debt, carry voting rights in some circumstances and are included
in the nationalization legislation approved by the Irish
parliament.  Nationalization of the preference shares means that
the investors in the instruments suffer a loss of principal and
all future coupons.  They will receive compensation, but S&P
expects this to be limited.

The 'B' issue ratings on Anglo's other undated perpetual
instruments reflect S&P's view of the increased probability of
payment deferral on these instruments following Anglo's
nationalization.  S&P notes that the government in its statement
announcing the nationalization of Anglo stated that Anglo would
"continue to service its obligations and will repay its debts at
maturity," and that this included obligations to bondholders.
Nevertheless, S&P considers that there is heightened payment
deferral risk following the government's seizure of control of
Anglo's stock.  S&P considers it possible that the European
Commission, in the course of approval of a potential state-aid
package for Anglo at a future date, may prohibit Anglo from
servicing its hybrid debt obligations.

The CreditWatch placement on the ratings on Anglo reflect S&P's
view of the significant uncertainties about Anglo's future,
notably the government's plans in relation to Anglo's strategy,
and Anglo's funding plans and capital requirements.  S&P will
resolve the CreditWatch status following discussions with the
Irish authorities and Anglo's management in the coming weeks.
Given the Irish government's strong statements of support, S&P
does not expect to lower the counterparty credit rating on Anglo
by more than one notch in the event of a downgrade.


LAMBAY CAPITAL: Moody's Junks Rating on GBP300 Mil. Securities
--------------------------------------------------------------
Moody's Investors Service announced it has downgraded its rating
of the GBP300,000,000 Perpetual Tier-One Pass-Through Securities
issued by Lambay Capital Securities PLC.

The rating action is the result of the downgrade to C of the
rating of the preference shares of Anglo Irish Bank Corporation
plc.  The Notes are secured by preference shares issued by AIBC
and holders of the Notes will have effectively similar credit risk
exposure to that of the AIBC preference shares.  The transaction
structure allows for a pass-through of cash flows (coupon and
principal redemption, if called) on the AIBC preference shares to
the Notes holders.

Full detailed analyses and information on Anglo Irish Bank
Corporation plc's credit ratings can be found on www.moodys.com.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for repackaged securities as described in Moody's Special Reports
below:

  -- Repackaged Securities (October 2001)

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

The rating action is:

Lambay Capital Securities PLC:

(1) GBP300,000,000 Perpetual Tier-One Pass-Through Securities

  -- Current Rating: C
  -- Prior Rating: A3, on review for possible downgrade
  -- Prior Rating Date: 12 November 2008, A3 placed under review
     for possible downgrade


LAMBAY CAPITAL: Fitch Lowers Rating on GBP300 Mil. Notes to 'BB-'
-----------------------------------------------------------------
Fitch Ratings has downgraded Lambay Capital Securities Plc's
GBP300 million perpetual tier-one pass-through securities to 'BB-'
(BB minus) from 'A' and placed them on Rating Watch Negative.

The rating addresses the full repayment of interest and principal
to noteholders.

Lambay Capital Securities plc is a limited liability company
incorporated in Ireland.  The rating of the notes is credit-linked
to the rating of the GBP300 million Series A fixed- and floating-
rate non-cumulative callable preference shares of Anglo Irish Bank
Corporation Plc ('A-'((A minus))/Stable/'F1+'), which were
downgraded to 'BB-' (BB minus) on January 16, 2009 and placed on
RWN.  The notes are secured over the aforementioned shares.
The perpetual tier-one pass-through securities have no maturity
and are callable upon the redemption of the preference shares.
The interest payments on the notes are equal to the net dividend
received and are passed through to the investors.


NEW BOND: S&P Junks Rating on Class A2 Notes from 'AA+'
-------------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit rating on the class X notes issued
by New Bond Street CDO 1 PLC.  The rating on the class A1 notes
was lowered and kept on CreditWatch negative, while the rating on
the class A2 notes was lowered and removed from CreditWatch
negative.

The portfolio has experienced negative rating migration following
the CreditWatch negative placements and lowering of the ratings on
U.S. collateralized debt obligations of asset-backed securities in
the underlying portfolio.  This has led to an increase in the
scenario default rates for the class A1 and A2 notes, and the
current credit enhancement in the transaction is therefore, in
S&P's opinion, insufficient to support the current ratings.

In addition, on Jan. 19, 2009, S&P received notice that the issuer
did not have sufficient funds to pay all of the interest due on
the senior notes.  S&P is seeking clarification of which note(s)
did not receive full interest payments.  If S&P rate these notes,
it is likely that S&P would lower the rating on the affected
note(s) to 'D'.

S&P will closely monitor the performance of the transaction and
the outcome of the event of default on the transaction before
resolving these CreditWatch placements.

                           Ratings List

                    New Bond Street CDO 1 PLC
             US$1.0026 Billion Floating-Rate Notes

        Ratings Lowered and Placed on CreditWatch Negative

                               Rating
                               ------
             Class       To             From
             -----       --             ----
             X          A/Watch Neg     AAA

      Ratings Lowered and Remaining on CreditWatch Negative

                               Rating
                               ------
             Class       To             From
             -----       --             ----
             A1          BB+/Watch Neg  AAA/Watch Neg

      Ratings Lowered and Removed from CreditWatch Negative

                               Rating
                               ------
             Class       To             From
             -----       --             ----
             A2         CC             AA+/Watch Neg



O'REILLY & CO: Goes Into Liquidation
------------------------------------
Laura Noonan at Independent.ie reports that plumbing company
O'Reilly & Co (Roscommon) has gone into liquidation after 36 years
of trading.

Tom Kavanagh of Kavanagh Fennell was appointed liquidator, the
report relates.

According to the report, the company racked up debts of more than
EUR2.1 million, while its assets are expected to realize just
EUR422,000, leaving a deficit of more than EUR1.73 million.

The report discloses the company's statement of affairs showed
co-owners Ciaran Casey and Seamus O'Reilly were among the biggest
unsecured creditors, with Mr. Casey owed EUR231,800 and Mr.
O'Reilly owed EUR190,000.


TITAN EUROPE: S&P Cuts Ratings on Class D and E Notes to Low-B
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered and kept on CreditWatch
negative its credit ratings on the class D and E notes issued by
Titan Europe 2007-3 Ltd.  The other notes in the transaction
remain unaffected.

The downgrades address S&P's increasing loss expectations for some
of the loans backing the deal.

The notes issued by Titan Europe 2007-3 are backed by 19 loans
secured on commercial properties spread throughout the U.K.

                          Ratings List

                    Titan Europe 2007-3 Ltd.
GBP778.82 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered and Kept On CreditWatch Negative
           
        Class          To                   From
        -----          --                   ----
        D              BB/Watch Neg         BBB/Watch Neg
        E              B-/Watch Neg         B+/Watch Neg



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


CHRYSLER LLC: Fiat Deal to Proceed If Co. Gets US$3BB Gov't Loans
---------------------------------------------------------------
Chrysler LLC's alliance with Fiat SpA will proceed if Chrysler
gets US$3 billion more in financial aid from the U.S. government,
John D. Stoll and Stacy Meichtry report, citing people familiar
with the matter.

As reported by the Troubled Company Reporter on Jan. 21, 2009,
Fiat is in talks with Chrysler about acquiring a stake in the U.S.
car maker and forming a partnership to let the Italian auto maker
build and sell its small cars in the U.S.  Fiat is likely to take
a 35% stake in Chrysler by the middle of the year.

WSJ relates that the Fiat-Chrysler deal is contingent on Chrysler
getting additional government loans.  Chrysler spokesperson Shawn
Morgan said that Chrysler believes the US$3 billion in loans are
necessary for its viability, the report states.

Chrysler almost ran out of cash before the U.S. Treasury agreed in
December 2008 to lend the company US$4 billion, WSJ says.
Chrysler, WSJ report, must submit a plan by Feb. 17 that shows how
it intends to return to profitability, as part of the Treasury's
terms for loans and to qualify for an additional US$3 billion in
aid.

According to WSJ, having Fiat as a partner helps Chrysler offer a
longer-term vision, but it does little to ease its current cash
crunch.  The report says that Chrysler's plants have been closed
temporarily since December, and dealers have been cutting orders
as sales dropped steeply in the last few months.  Citing people
familiar with the matter, the report states that Chrysler barely
generated any revenue and would need more government loans to
continue operations beyond the first quarter.

WSJ reports that Chrysler could face tough questions about why the
government should provide it more loans when neither its majority
owner, Cerberus, nor its new partner, Fiat, are doing the same.
According to the report, Sen. Bob Corker said that he is worried
that by investing more money in Chrysler, the government is
allowing Cerberus, which is privately held, to be in a better
position to offload its stake in Chrysler.

                      About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K., Argentina,
Brazil, Venezuela, China, Japan and Australia.

                      *     *     *

As reported in the Troubled Company Reporter on Dec. 3, 2008,
Dominion Bond Rating Service downgraded the ratings of Chrysler
LLC, including Chrysler's Issuer Rating to CC from CCC (high).
Chrysler's First Lien Secured Credit Facility and Second Lien
Secured Credit Facility have also been downgraded to CCC and CC
(low) respectively.  All trends are Negative.  The ratings action
reflects Chrysler's challenge to maintain sufficient liquidity
balances amid severe industry conditions that have deteriorated
alarmingly over the past few months and are not expected to
improve in the near term.  With this ratings action, Chrysler is
removed from Under Review with Negative Implications, where it was
placed on Nov. 7, 2008.

As reported in the Troubled Company Reporter on Aug. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings on Chrysler
LLC, including the corporate credit rating, to 'CCC+' from 'B-'.

On July 31, 2008, TCR said that Fitch Ratings downgraded the
Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'.  The
Rating Outlook is Negative.  The downgrade reflects Chrysler's
restricted access to economic retail financing for its vehicles,
which is expected to result in a further step-down in retail
volumes.  Lack of competitive financing is also expected to result
in more costly subvention payments and other forms of sales
incentives.  Fitch is also concerned with the state of the
securitization market and the ability of the automakers to access
this market on an economic basis over the near term, given the
steep drop in residual values, higher default rates, higher loss
severity being experienced and jittery capital market.

As reported in the TCR on Dec. 3, 2008, Dominion Bond Rating
Service downgraded on Nov. 20, 2008, the ratings of Chrysler LLC,
including Chrysler's Issuer Rating to CC from CCC (high).
Chrysler's First Lien Secured Credit Facility and Second Lien
Secured Credit Facility have also been downgraded to CCC and CC
(low) respectively.  All trends are Negative.  The ratings action
reflects Chrysler's challenge to maintain sufficient liquidity
balances amid severe industry conditions that have deteriorated
alarmingly over the past few months and are not expected to
improve in the near term.  With this ratings action, Chrysler is
removed from Under Review with Negative Implications, where it was
placed on Nov. 7, 2008.


CHRYSLER LLC: Moody's Says Fiat Alliance Won't Affect Junk Rating
-----------------------------------------------------------------
Moody's Investors Service said that the Ca Corporate Family Rating
(CFR) and Negative outlook of Chrysler LLC (Chrysler) remain
unchanged following the announcement of a non-binding agreement to
establish a global alliance between Chrysler and Fiat S.p.A.

Chrysler's Ca CFR and negative outlook continue to reflect the
likelihood that the company will face either some form of debt
exchange that Moody's would view as a default or a bankruptcy
filing.

The proposed agreement with Fiat could help to address the
weaknesses in Chrysler's product portfolio by providing it with
access to Fiat's line-up of smaller, more fuel efficient vehicles.
However, the alliance is unlikely to provide any near-term relief
from Chrysler's most pressing near-term challenges. These include
the company's sizable pace of cash consumption, a liquidity
position that can not cover cash requirements during 2009 without
government bailout loans, and the steep decline in the US
automotive market.

Chrysler has been able to avoid a liquidity shortfall only because
of the US$4 billion in emergency loans already approved by the US
government on December 19, 2009, and additional loans may be
needed.  The continued extension of government loans beyond
March 31, 2009 will require the submission of a restructuring plan
by Chrysler that demonstrates, to the government's satisfaction,
that the company is viable.

Terms of the proposed alliance would have to be consistent with
the terms of the government loans to Chrysler and are subject to
approval by the US Treasury.  The current terms of the government
loans contemplate that a degree of shared sacrifice by all
constituents -- including creditors, management, and the UAW --
will be a key component of Chrysler's plan. Chrysler has not
specifically identified the mechanism for implementing the balance
sheet restructuring, nor has it disclosed any specific proposals
to debt holders. Nevertheless, the terms of the government loan
are suggestive of a debt forgiveness that would be viewed as a
distressed exchange by Moody's if implemented.

The last rating action on Chrysler was a downgrade of the
company's Corporate Family Rating to Ca on December 3, 2008.

Chrysler Automotive, LLC is headquartered in Auburn Hills,
Michigan.


CHRYSLER LLC: S&P Says 'CC' Ratings Not Affected By Fiat Alliance
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on U.S.
automaker Chrysler LLC (CC/Negative/--) and finance affiliate
DaimlerChrysler Financial Services Americas LLC (CCC-/Watch Dev/
--) are not immediately affected by the announcement that Fiat
SpA (BBB-/Negative/A-3) may acquire a 35% equity interest in
Chrysler as part of a broad alliance.  Under the non-binding
agreement, no upfront cash will be paid by Fiat to Chrysler.  The
two companies will share vehicle platforms and Fiat will provide
access to its small engine capability.

"We view Fiat's possible stake and resulting collaboration as just
one component of Chrysler's viability plan, which is to be
submitted to the U.S. government by Feb. 17.  Chrysler would need
to address some related issues, including Chrysler's existing
agreement with Nissan Motor Co. Ltd. for a Nissan-produced,
Chrysler-branded small car to be sold in the U.S., as well as the
future of Daimler AG's existing 20% stake in Chrysler," S&P says.

"Our most serious concern regarding Chrysler remains the pressure
on the company's liquidity during 2009 from the very weak state of
most global automotive markets and the constrained state of the
capital markets.  We believe that the Chrysler-Fiat alliance could
create substantial cost savings over time, but that significant
execution risks exist, including the possible need for incremental
liquidity to accelerate benefits.

"We would be skeptical that a Chrysler-Fiat partnership alone
could address our primary concern for Chrysler, which is a dearth
of current liquidity.  However, we believe that the viability plan
that Chrysler plans to submit will propose changes to the debt
structure and labor agreements that could help reduce cash use.
We continue to expect that Chrysler could approach its lenders for
a reduction in debt or an exchange at a substantial discount to
par -- which we consider tantamount to a default -- and our 'CC'
rating reflects that opinion."


FIAT SPA: Sales Decline, Debt Soars to US$7.67 Bln in 2008
----------------------------------------------------------
Fiat SpA has EUR5.94 billion (US$7.67 billion) in industrial debt
as at the end of 2008, a huge increase from EUR355 million at the
end of 2007, Stacy Meichtry at The Wall Street Journal reports.

The report relates according to several people familiar with the
matter, Fiat has been in talks with several banks, including
Italian banks Unicredit Spa and Intesa Sanpaolo Spa, over the past
few weeks over the possibility of large medium-term credit
facilities.

The group of banks is negotiating with Fiat to provide up to EUR5
billion (US$6.46 billion) in loans, two people familiar with the
matter was cited by the Journal as saying.

Adding to Fiat's woes is the declining car sales amid the global
economic slowdown, the report says.

According to the Journal, Fiat's net income plunged 71% in the
last three months of 2008 to EUR163 million, down from EUR570
million a year earlier, while revenue fell 17.2% to EUR13.09
billion in the quarter.  For all of 2008, Fiat's net profit fell
16.2% to EUR1.7 billion, the report notes.

Warning that sales will fall further, Fiat halted a share-buyback
program, lowered its forecast for 2009 and planned to cut its
dividend, the Journal discloses.

Forbes.com reports the carmaker cut its profit outlook for 2009 to
EUR1.0 billion (US$1.3 billion) from a previous forecast of
between EUR1.5 and EUR2.3 billion (US$1.9 and US$3.0 billion).

                          Chrysler Deal

As reported by the Troubled Company Reporter on Jan. 21, 2009,
Fiat is in talks with Chrysler LLC about acquiring a stake in the
U.S. car maker and forming a partnership to let the Italian auto
maker build and sell its small cars in the U.S.  Fiat is likely to
take a 35% stake in Chrysler by the middle of the year.

The Journal relates both auto makers say Fiat doesn't plan to
inject any money into Chrysler as part of the potential deal.

However, the deal is contingent on Chrysler getting US$3 billion
more in financial aid from the U.S. Government, the Journal said
in an earlier report citing people familiar with the matter.

Meanwhile, Bloomberg News adds to this report that Fiat Chief
Executive Officer Sergio Marchionne may still regard a European
alliance as his top priority.

According to Bloomberg News, Mr. Marchionne said he's "willing to
start a dialogue" with any company that favors consolidation.

The CEO acknowledged that many in the industry view a Fiat-Peugeot
combination as a "marriage made in heaven," stating he needs to
proceed "softly and quietly" toward his goals, Bloomberg News
relates.

                        About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K., Argentina,
Brazil, Venezuela, China, Japan and Australia.

                         About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.


TISCALI SPA: Cuts 250 Jobs in Italy, British Ops Up for Sale
------------------------------------------------------------
Tiscali SpA plans to cut 250 jobs at its domestic unit as part of
its new business plan, Reuters reports citing a company statement.

Bloomberg News relates, citing daily MF, Tiscali has about 850
staff at its Italian unit.

According to Reuters, Tiscali's business plan, to be discussed
with trade unions, will include a voluntary redundancy plan.  "The
plan for the Italian unit foresees an overall reduction in
operating costs and of its structure for about 40 million euros,"
the company said in the statement cited by Reuters.

The company is scheduled to meet with unions on Feb. 3, daily MF
said in a report obtained by Bloomberg News.

Tiscali is also seeking to sell its British activities and talks
on the sale are still underway, Reuters says.  In November,
Reuters recalls Tiscali said it was in talks with British Sky
Broadcasting Group PLC about selling its British assets.

Headquartered in Cagliari, Italy, Tiscali SpA (BIT:TIS) --
http://www.tiscali.com/-- is an Internet communications company
providing broadband and narrowband access for consumer and
business applications, as well as communications services and
content.  The company's portfolio includes Internet access in the
form of dial-up, broadband, satellite and leased lines, and
hosting services, such as co-location, shared hosting and managed
hosting.  Tiscali also offers streaming media, telephony and such
services as virtual private networks (VPN), allowing companies to
communicate with remote branches.  Its consumer products and
services include Internet access, voice, media, Internet Protocol
Television (IPTV) and value-added services, such as e-mail, Net
calendar, Net fax, Net phone, mail, instant messaging and Web
hosting.  It is operational in Europe through its subsidiaries and
joint ventures.  As of June 30, 2008, Tiscali had approximately
3.2 million active users in Italy and the United Kingdom.


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


AUTO INVEST: Proof of Claim Deadline Slated for February 27
-----------------------------------------------------------
LLP Auto Invest has declared insolvency. Creditors have until
Feb. 27, 2009, to submit written proofs of claim to:

         LLP Auto Invest
         Alihanov Str. 37-101
         Karaganda
         Kazakhstan


BESLAN & K: Creditors Must File Claims by February 26
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Beslan & K insolvent.

Creditors have until Feb. 26, 2009, to submit written proofs of
claim to:

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


JAINAK BN: Claims Filing Period Ends February 27
------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Jainak BN insolvent.

Creditors have until Feb. 27, 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


JIDEK-S LLP: Creditors' Proofs of Claim Due on February 27
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Jidek-S insolvent.

Creditors have until Feb. 27, 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


KAZTEMIRTRANS JSC: Moody's Reviews Issuer Rating for Likely Cut
---------------------------------------------------------------
Moody's Investors Service has placed JSC Kaztemirtrans' Baa3
issuer rating on review for possible downgrade.  The review was
launched simultaneously with the review of JSC National Company
Kazakhstan Temir Zholy as KTT is a wholly-owned subsidiary of KTZ
and is managed as integral part of the KTZ group.

Moody's comments that the rating of KTT is based upon the
fundamentals of the company, its role within the KTZ group and the
support it therefore indirectly benefits from the state because of
this affiliation.  The review on KTT's rating reflects risks of a
worsening economic and financial environment going forward, which
may affect the operations of the group and impact its ability to
fund its capital expenditures program.  At the same time, though
Moody's notes KTT's important role for KTZ and hence for the
economy of Kazakhstan, the support and dependence assumptions
embodied in KTT's rating under Moody's rating methodology for
Government Related Issuers might need to be reassessed in
conjunction with those for KTZ to take into account the increasing
reliance of key domestic businesses on the government financial
support.

In accordance with Moody's rating methodology for GRIs, the Baa3
rating of KTT reflects the Baa1 local currency rating of the
Kazakhstan government and the combination, which is now reassessed
by Moody's, of these inputs:

  - Baseline credit assessment of 14 (on a scale of 1 to 21, where
    1 represents the lowest risk and 14 corresponds to the
    B1 category)

  - Moderate dependence assessment

  - High support

Moody's review will mainly focus on i) 2009 tariff decisions for
KTT and the company's ability to adjust its investment program and
financing policy in line with tariff decisions and changing market
conditions, and ii) forms, timeliness and certainty of the
government support available to the KTZ group and hence to the
company in case of need.

The previous rating action on KTT was implemented on May 28, 2008,
when Moody's assigned a Baa3 issuer rating to the company.
Headquartered in the city of Astana, KTT is a 100%-owned
subsidiary of KTZ, which is the 100% state-controlled vertically
integrated railway business in the Republic of Kazakhstan.  The
sole shareholder of KTZ is the state represented by JSC National
Welfare Fund SamrukKazyna.  KTT owns and operates the largest
railcar fleet in Kazakhstan, generating its revenues largely from
leasing railcars out to the KTZ group.  The latter provides about
94% of KTT's 2007 revenues of KZT30.6 billion (approximately
US$250 million).


KTZ JSC: Moody's Reviews Issuer Rating for Possible Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade JSC National Company Kazakhstan Temir Zholy's A3 issuer
rating and the A3 rating of the senior unsecured eurobonds,
amounting to USD800 million, issued by Kazakhstan Temir Zholy
Finance B.V., a special purpose financial company, and guaranteed
by KTZ and its operating subsidiaries.

The review reflects risks of a worsening economic and financial
environment for KTZ going forward, which may affect the operations
of the company and impact its ability to fund its current capital
expenditures program.  At the same time though Moody's notes KTZ's
strategic importance for the economy of the Republic of
Kazakhstan, the government support and default dependence
assumptions embodied in the rating under Moody's rating
methodology for Government Related Issuers might need to be
reassessed to take into account the developments in the financial
markets and the increasing reliance of key domestic businesses on
the government financial support.  In particular, Moody's comments
that its support assessment for the company is likely to remain
high, however, it notes that the assessment of default dependence
between the company and the government may increase, resulting in
a smaller uplift from an intrinsic creditworthiness of the company
reflected in a BCA to a final rating.

In accordance with Moody's rating methodology for GRIs, the A3
rating of KTZ reflects the Baa1 local currency rating of the
Kazakhstan government and the combination, which is now reassessed
by Moody's, of these inputs:

  - Baseline credit assessment ("BCA") of 11 (on a scale of 1 to
    21, where 1 represents the lowest risk and 11 corresponds to
    the Ba1 category)

  - Moderate dependence assessment

  - High support

Moody's review will mainly focus on i) 2009 tariff decisions for
KTZ and the company's ability to adjust its long-term investment
program and financing policy in line with tariff decisions and
changing market conditions, and ii) forms, timeliness and
certainty of the government support available for the company in
case of need.

The previous rating action on KTZ was implemented on June 12,
2006, when Moody's upgraded the company and its eurobonds to A3
following actions on the Kazakhstan sovereign rating and country
ceiling.

KTZ is the 100% state-controlled vertically integrated rail group
operating the national rail network of the Republic of Kazakhstan.
The sole shareholder of KTZ is the state represented by JSC
National Welfare Fund SamrukKazyna.  KTZ is the monopoly provider
of rail infrastructure services and has the leading position in
the railway market in Kazakhstan.  The company has more than 135
thousand employees.  Its reported 2007 consolidated revenues
amounted to KZT423.6 billion.


LOKADA LTD: Claims Registration Period Ends February 27
-------------------------------------------------------
LLP Lokada Ltd. Semey has declared insolvency.  Creditors have
until Feb. 27, 2009, to submit written proofs of claim to:

         LLP Lokada Ltd. Semey
         17 liniya Str. 49b
         Vostochny
         Semey
         East Kazakhstan
         Kazakhstan


MONTAGE SERVICE: Proof of Claim Deadline Slated for February 27
---------------------------------------------------------------
LLP Prom Montage Service has declared insolvency.  Creditors have
until Feb. 27, 2009, to submit written proofs of claim to:

         LLP Prom Montage Service
         Almazov Str. 71-39
         Uralsk
         West Kazakhstan
         Kazakhstan


STR PROJECTS: Creditors Must File Claims by February 27
-------------------------------------------------------
LLP Str Projects has declared insolvency.  Creditors have until
Feb. 27, 2009, to submit written proofs of claim to:

         LLP Str Projects
         Severnaya promzona Str. 87
         Atyrau
         Kazakhstan
         Tel: 8 (7122) 76-31-27


UNIVERSAL-PLUS LLP: Claims Filing Period Ends February 27
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Universal-Plus insolvent.

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

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


VODNIK LLP:  Creditors' Proofs of Claim Due on February 27
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Vodnik insolvent.

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

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


WOOD BANK: Claims Registration Ends February 27
-----------------------------------------------
LLP Wood Bank Co. Ltd. has declared insolvency.  Creditors have
until Feb. 27, 2009, to submit written proofs of claim to:

         LLP Wood Bank Co. Ltd.
         Satpaev Str. 40
         Almaty
         Kazakhstan


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


NIPPON CONCEPT: Creditors Must File Claims by February 20
---------------------------------------------------------
LLC Nippon Concept has declared insolvency.  Creditors have until
Feb. 20, 2009, to submit written proofs of claim to:

         LLC Nippon Concept
         Krasnaya Str. 26
         Bishkek
         Kyrgystan

The company can be reached at: (+996 312) 65-35-36


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


* LATVIA: European Union Council Approves EUR3.1 Billion Loan
-------------------------------------------------------------
The Council of the European Union on Tuesday, January 20, 2009,
adopted decisions  approving the granting of a loan of EUR3.1
billion to Latvia to enable it to deal with the country's current
financial crisis.

The loan is part of a EUR7.5 billion package of assistance to
support Latvia's balance of payments in the medium term.  The
package also includes EUR1.7 billion from the International
Monetary Fund as well as contributions from the World Bank, the
European Bank for Reconstruction and Development and other
European countries: Czech Republic, Denmark, Estonia, Norway,
Poland, Sweden and Finland.

The EU loan will be made available over a three-year period, with
a maximum average maturity of seven years.

The assistance will help Latvia cope with pressure on its capital
and financial markets, which results from a deterioration in
market sentiment and concerns about the health of its economy,
given the imbalances related to its external debt, weakening
public finances and high rates of cost and price inflation.  The
Latvian banking sector has experienced serious liquidity and
confidence problems, and the level of foreign currency reserves
has decreased as the central bank intervened to preserve the
currency peg.

The loan is conditional on the Latvian authorities taking measures
to stem immediate liquidity pressures, to restore long-term
stability by strengthening the banking sector and to correct
fiscal imbalances.  Latvia has agreed to pursue domestic policies
to improve competitiveness, whilst maintaining a narrow-band
exchange rate at its existing central rate.

These measures include an immediate and sustained fiscal
consolidation, a comprehensive bank resolution strategy, a
strengthened crisis management capacity for Latvia's regulatory
authorities, as well as structural reforms and other measures.

The Council decisions are based on the EU's support facility for
medium-term assistance to the balances of payments of non-euro-
area member states in the event of financial difficulty.

The Council granted a similar loan to Hungary at its meeting on
November 4( doc.  15103/08 ), and on December 2 raised the ceiling
for assistance available under the support facility, from EUR12
billion to EUR25 billion ( doc. 16565/1/08 REV 1 ).


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


BERNARD L. MADOFF: 17 Luxembourg Funds Forced to Halt Redemptions
-----------------------------------------------------------------
Seventeen Luxembourg funds and sub funds suspended redemptions on
concerns the Bernard L. Madoff investment scam will damage the
country's fund industry, Bloomberg News reports.

Luxembourg, the world's second-largest mutual fund market after
the U.S., was the first nation to implement a set of harmonized
rules passed by the European Union in 1985, according to Bloomberg
News.

The report discloses the funds at issue are mostly Undertakings
for Collective Investment in Transferable Securities, or UCITS.

Almost 3,400 registered Luxembourg funds hold assets of more than
EUR1.6 trillion (US$2 trillion), a value that's 30 percent of the
EUR5.2 trillion funds in Europe, Bloomberg News says citing data
from the country's fund industry association.

"Considering the size of our industry, it's not surprising that
Luxembourg funds also invested money (directly or indirectly) with
Madoff and are now among his victims," Luxembourg Fund Industry
Association's deputy director-general, Charles Muller, was quoted
by Bloomberg News as saying.  "Lessons have to be learned to avoid
such situations from happening again."

According to an e-mail message Luxembourg's financial regulator
Commission de Surveillance du Secteur Financier sent to Bloomberg
News, these Luxembourg-registered sub-funds and funds have
suspended their net asset valuations, the subscription and
redemptions of their shares since the Madoff fraud:

   *U.S. Absolute Return of Herald (Lux)
   *U.S. Equity Plus of Luxembourg Investment Fund
   *American Selection of Luxalpha Sicav
   *Arbitrage of Norvest
   *Balanced sub-fund, Growth sub-fund et Xtra Alternative
   Investments Sub-fund of GLOBAL FUND SELECTION Sicav
   *Global One of Carat (Lux) Sicav
   *LRI Invest Alpha Stable EUR
   *BG Global Classic, BG Global Dynamic, BG Global Challenge, BG
   Global Balance, BG Global Discovery, BG Stable Value of BG
   Umbrella Fund
   *One (c) of the fund MARS
   *Best Selection of Pareturn

                     About Bernard L. Madoff

Bernard L. Madoff Investment Securities LLC was a market maker in
US stocks, including all of the S&P 500 and more than 350 Nasdaq
stocks.  The firm moved large blocks of stock for institutional
clients by splitting up orders or arranging off-exchange
transactions between parties.  It also performed clearing and
settlement services.  Clients included brokerages, banks, and
other financial institutions.  In addition, Madoff Securities
managed assets for high-net-worth individuals, hedge funds, and
other institutional investors.

The firm is being liquidated in the aftermath of a fraud scandal
involving founder Bernard L. Madoff.

As reported by the Troubled Company Reporter on Dec. 15, 2008, the
Securities and Exchange Commission 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
losses from Madoff's fraud were at least US$50 billion.

Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S.
District Court for the Southern District of New York granted the
application of the Securities Investor Protection Corporation for
a decree adjudicating that the customers of BLMIS are in need of
the protection afforded by the Securities Investor Protection Act
of 1970.  Irving H. Picard, Esq., was appointed as trustee for the
liquidation of BLMIS, and Baker & Hostetler LLP was appointed as
counsel.


===============
P O R T U G A L
===============


PORTUGAL: Commission Okays EUR500,000 Aid Scheme for Businesses
---------------------------------------------------------------
The European Commission has, under the state aid rules of the EC
Treaty, authorised the first in a series of aid measures for
businesses planned by Portugal to deal with the current economic
crisis.  This measure will enable aid of up to EUR500,000 to be
granted in 2009 and 2010 to businesses in difficulty as a
consequence of the current economy crisis or facing funding
problems because of the credit crunch.  The scheme meets the
conditions imposed by the Commission's temporary framework giving
Member States additional possibilities for providing businesses
with improved access to financing during the economic and
financial crisis.  It is therefore compatible with Article
87(3)(b) of the EC Treaty, which permits aid intended to remedy a
serious disturbance in the economy of a Member State.

Competition Commissioner Neelie Kroes said: "This measure will
help alleviate the difficulties faced by Portuguese businesses
affected by the current situation without giving rise to any undue
distortions of competition.  Thanks to the excellent cooperation
of the Portuguese authorities, it was possible to approve the
measure very quickly."

The scheme is based on the provisions of the temporary framework
that deal with compatible aid of a limited amount.  In particular,
the maximum amount of aid does not exceed EUR500,000 per company
and the scheme applies only to businesses which were not in
difficulty on July 1, 2008.

This scheme is the first measure authorized for Portugal under the
new temporary framework for state aid adopted in principle by the
Commission on December 17, 2008.  Portugal is the third country,
after Germany and France, to avail itself of this new temporary
framework.


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


DAGESTAN OJSC: Creditors Must File Claims by Mar. 16
----------------------------------------------------
Creditors of OJSC Dagestan Wine and Cannery Plant have until
March 16, 2009, to submit proofs of claims to:

         M. Baymurzayev
         Insolvency Manager
         Gagarina Str. 56/88
         Makhachkala
         Russia

The Arbitration Court of Dagestan commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?15–570/08.

The Debtor can be reached at:

         OJSC Dagestan Wine and Cannery Plant
         Manas
         Karabudakhkentskiy
         Dagestan
         Russia


DOMOSTROY LLC: Ryazan Bankruptcy Hearing Set June 9
---------------------------------------------------
The Arbitration Court of Ryazan will convene at 11:00 a.m. on
June 9, 2009, to hear bankruptcy supervision procedure on LLC
Domostroy (Construction).  The case is docketed under Case No.
?54–4990/2008.

The Temporary Insolvency Manager is:

         I. Khlystov
         Post User Box 155
         390035 Ryazan
         Russia

The Debtor can be reached at:

         LLC Domostroy
         Gorkogo Str. 17
         390000 Ryazan
         Russia


EXPERIMENTAL MECHANICAL: Creditors Must File Claims by Feb. 16
--------------------------------------------------------------
Creditors of LLC Experimental Mechanical Plant have until Feb. 16,
2009, to submit proofs of claims to:

         S. Stolyarova
         Insolvency Manager
         Post user Box 18
         600005 Vladimir
         Russia

The Arbitration Court of Vladimir commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?11–10033/2008-?1–222B.

The Debtor can be reached at:

         LLC Experimental Mechanical Plant
         Vladimir
         Russia


FORD MOTOR: Production Resumed at St. Petersburg Plant
------------------------------------------------------
RIA Novosti reports that a Ford factory near Russia's second city
of St. Petersburg resumed work Wednesday after it shut down on
December 24.

"The plant is resuming work in the normal regime," the Ford press
office, as cited by the report, said.

The report recalls the company decided to halt production late in
December in connection with the New Year vacations, the ongoing
global financial crisis and the necessity to cut output and costs
due to an expected slump in 2009 sales in Russia.

According to the report, the company paid its workers two-thirds
of their salaries during the extended holidays in line with
Russia's Labor Code .

The factory, which produces Ford Focus cars, earlier announced it
planned to produce 125,000 cars in 2009, the report discloses.

                       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-'.


LOKOMOTIV-TRANS-SEVER LLC: Creditors Must File Claims by March 16
----------------------------------------------------------------
Creditors of LLC Lokomotiv-Trans-Sever (Industrial Railway
Transport) have until March 16, 2009, to submit proofs of claims
to:

         P. Ostroumov
         Insolvency Manager
         Building 8Gasheka Str. 8/10
         125047 Moscow
         Russia

The Arbitration Court of Saint-Petersburg will convene at
10:30 a.m. on Nov.23, 2009, to hear bankruptcy proceedings.  The
case is docketed under Case No. ?56–7757/2008.

The Court is located at:

         The Arbitration Court of Saint-Petersburg
         Suvorovskiy prospect 50/52
         191015 Saint-Petersburg
         Russia


METEO-PRIBOR KIMOVSKIY: Creditors Must File Claims by March 16
--------------------------------------------------------------
Creditors of OJSC Meteo-Pribor Kimovskiy Plant (TIN 7115001155)
(Radio, Radio-Navigation and Radar Equipment Production) have
until March 16, 2009, to submit proofs of claims to:

         R. Kutlin
         Insolvency Manager
         Arsenalnaya Str. 1
         300002 Tula
         Russia

The Arbitration Court of Tula commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?68–954/08–22B.

The Debtor can be reached at:

         OJSC Meteo-Pribor Kimovskiy Plant
         Shakhtinskiy
         Kimovsk
         Tulskaya
         Russia


MIKO OIL CJSC: Creditors Must File Claims by March 16
-----------------------------------------------------
Creditors of CJSC MiKo Oil have until March 16, 2009, to submit
proofs of claims to:

         A. Kiselev
         Insolvency Manager
         Bezverkhova Str. 5
         628408 Surgut
         Khanty-Mansiysk
         Russia

The Arbitration Court of Khanty-Mansiysk will convene at 9:00 a.m.
on Dec. 14, 2009, to hear bankruptcy proceedings.  The case is
docketed under Case No. ?75–3151/2008.

The Court is located at:

         The Arbitration Court of Khanty-Mansiysk
         Office 401
         Lenina Str. 54/1
         Khanty-Mansiysk
         Russia

The Debtor can be reached at:

         CJSC MiKo
         Omskaya Str. 4/38
         628600 Nizhnevartovsk
         Khanty-Mansiysk
         Russia


RUSAL UC: Appoints Oleg Deripaska as Chief Executive
----------------------------------------------------
Oleg Deripaska was appointed CEO of United Company RUSAL on Sunday
January 18, 2009.  His candidacy was proposed by EN+ and supported
by other shareholders of RUSAL.

Alexander Bulygin, who has until recently been the CEO of RUSAL,
will move to chair the Board of Directors of EN+ Group, the main
shareholder of RUSAL.  In this position, he will oversee matters
of integration of the Russian metal and mining assets, be
responsible for raising the efficiency of En+ Group, as well as
coordinate the interests of RUSAL shareholders on the Norilsk
Nickel Board of Directors.

Commenting on the management changes, Oleg Deripaska said:
"Alexander Bulygin has headed RUSAL for more than five years.
Under his management the company, which was the largest Russian
aluminium producer, became the leader of the world's aluminium
industry, a truly global company with diversified and one of the
most competitive operations in the global metal and mining sector.
I am confident that Alexander's experience in consolidating assets
and executing large deals will be applied in full in his new
role."

Mr. Deripaska was already the CEO of RUSAL for a three year period
after the company was established in 2000.  In the following years
he took an active part in the company's development as a member of
the Board of Directors.  Now his role as CEO will be focused on
providing for the sustainable development of the company under the
conditions of the global financial crisis and implementing a
series of crisis management measures.

On Nov. 28, 2008, the TCR-Europe reported that according to
Reuters, RusAl said it will be able to pay on time a deferred
US$700 million tranche to billionaire Mikhail Prokhorov for the
purchase of his stake in Norilsk Nickel.

Citing Vedomosti newspaper, Reuters stated RusAl had agreed with
Mr. Prokhorov to defer again the tranche originally due on
Oct. 24.

Reuters disclosed Vedomosti said, RusAl, which had already agreed
with Mr. Prokhorov to move the original deadline of the payment to
Nov. 15, is to make the payment in two tranches, by Dec.1 and
Feb.1.

                         About RusAl

Headquartered in Moscow, Russia, Russky Alyuminiyum -
http://www.rusal.ru/en/-- is the world's largest producer of
aluminium and alumina, was established in March 2007 following the
merger of assets of three companies: RUSAL, previously the third
largest global aluminium company; SUAL, one of the world's top ten
players in the aluminium business; and the alumina assets of
Glencore (Switzerland).


SIBIRSKAY TIMBER: Creditors Must File Claims by February 16
-----------------------------------------------------------
Creditors of LLC Sibirskaya Timber Company (TIN 3804025650) have
until Feb. 16, 2009, to submit proofs of claims to:

         S. Kamayev
         Temporary Insolvency Manager
         Post User Box 281
         Karla Marksa Str. 26b
         664003 Irkutsk
         Russia

The Arbitration Court of Irkutsk will convene on April 29, 2009,
to hear bankruptcy supervision procedure.  The case is docketed
under Case No. ?19-14293/08-8-60.

The Debtor can be reached at:

         LLC Sibirskaya Timber Company
         Prom. Ploshchadka 10150101
         Bratsk
         665716 Irkutskaya
         Russia


SMOLENSKAYA NEFTEPROMYSHLENNAYA: Claims Filing Ends March 16
------------------------------------------------------------
Creditors of LLC Smolenskaya Neftepromyshlennya Kompaniya have
until March 16, 2009, to submit proofs of claims to:

         A. Popov
         Insolvency Manager
         Post user Box 345
         115230 Moscow-230
         Russia

The Arbitration Court of Smolenskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A62–3092/08.

The Debtor can be reached at:

         LLC Smolenskaya Neftepromyshlennya Kompaniya
         Przhevalskogo Str. 9/27/5
         Smolensk
         Russia


TUVINSKIE AIRWAYS FSUE: Creditors Must File Claims by March 16
--------------------------------------------------------------
Creditors of FSUE Tuvinskie Airways have until March 16, 2009, to
submit proofs of claims to:

         A. Sherykhanov
         Insolvency Manager
         Airport Building
         Kyzyl
         667008 Tyva
         Russia

The Arbitration Court of Tyva commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?69–650/07–10.

The Debtor can be reached at:

         FSUE Tuvinskie Airways
         Airport Building
         Kyzyl
         667008 Tyva
         Russia


* Fitch Reports Negative Credit Outlook for Russian Construction
----------------------------------------------------------------
Fitch Ratings says that the credit outlook for Russian
construction and property companies will continue to be negative
in 2009 as the property market extends its downturn and financing
remains tight.

"The property market downturn in Russia, which started in late
2008, is expected to intensify in 2009.  Main factors driving the
downturn are slowing Russian GDP growth, corporates' and
individual homebuyers' lower access to funds to finance property
purchases, reduced investor activity, and increasingly negative
sentiment overall," says Artem Frolov, Associate Director in
Fitch's EMEA Construction and Property team.  "Both volumes and
prices are expected to fall significantly, and Fitch estimates
Russian property prices will decrease by 20%-40% in 2009,
depending on the region and sector."

Along with a fall in demand, 2009 is likely to see a severe
reduction in supply within the primary property market.  Many
property developers will be unable to finance planned projects
given their low levels of internal cash resources, due to negative
free cash flows, low cash balances, and a lack of access to
external funding, with banks and investors increasingly unwilling,
or simply unable, to provide new debt and equity financing.
"Build-and-sell" developers are now less able to part-finance
projects with pre-sales, as customers become increasingly
reluctant to make cash deposits on non-completed projects for fear
that developers are unable to deliver the final product.  Although
asset and project disposals, as well as investment partners, could
provide financing, these could be challenging to achieve in the
current difficult climate.  Scaling back operating expenses is
expected to only release limited additional funds - insufficient
to meet considerable construction costs.

Following a severe contraction in lending to the Russian property
sector in 2008, Fitch believes the financing environment is
unlikely to materially improve in 2009.  New public debt issuance
will be especially challenging to achieve.  Access to bank
financing - a major source of funding for the sector over the past
several years - will continue to be highly rationed, due to
liquidity constraints within the domestic banking system and with
the reduced activity of foreign banks in the sector.  Similarly,
financing via the equity market is unlikely to be a feasible
option during 2009.  Companies that are able to obtain financing
from state-controlled banks or from supportive parent companies,
such as Sistema-Hals JSC, are likely to fare better.  Fitch notes
that only one company in its rated universe of Russian developers,
OJSC LSR Group, was explicitly included in the recent government
list of corporates qualifying for potential federal support.  This
implies that a large-scale state bailout of the sector is
unlikely.

The historical reliance on short-term debt to finance long-term
projects will leave some property and construction companies
facing substantial debt maturities during 2009.  In many cases,
the prospect for repaying or refinancing these debts is uncertain
because of weakening operating cash flows, the difficult
environment for asset sales, limited availability of new debt and
low levels of back-up liquidity including cash and long-term
undrawn committed credit facilities.  The risk could be even
higher for companies with substantial foreign currency-denominated
debt.

These companies are particularly vulnerable to further rouble
depreciation, unless they have a sufficient proportion of
operating cash inflows denominated in or linked to foreign
currency.  Fitch also notes that the expected fall in
profitability and asset values during 2009 could lead to covenant
problems, which in turn could intensify liquidity pressures by
triggering the early repayment of certain debt packages.

Credit profiles within the sector have been under pressure since
the spring of 2008, as reflected in a number of negative ratings
actions in the past year.  Fitch currently rates four top-tier
Russian construction and property companies: JSC OPIN
('B'/Stable), Sistema-Hals JSC ('B'/Negative), OJSC LSR Group
('B'/Rating Watch Negative), and Mirax Group LLC ('B'/Rating Watch
Negative).  Given the negative trends across the sector, further
negative rating actions remain a possibility during 2009.


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


* SERBIA: IMF Approves EUR402.5 Mln Stand-By Arrangement
--------------------------------------------------------
The Executive Board of the International Monetary Fund on Friday,
January 16, 2009, approved a 15-month SDR350.8 million Stand-By
Arrangement (about EUR402.5 million or US$530.3) to support the
authorities' program aimed at maintaining macroeconomic and
financial stability.  The approval makes SDR233.9 million (about
EUR268.4 million or US$353.3) immediately available.  However, the
Serbian authorities intend to treat the arrangement as
precautionary, and not to draw on Fund resources unless the need
arises.

The authorities' program aims at safeguarding macroeconomic and
financial stability, in view of the global financial turmoil.  It
focuses on measures aimed at maintaining market confidence,
complementing the large buffers in the financial system.  Policies
include upfront fiscal restraint, with the 2009 deficit limited to
1¾ percent of GDP; containing inflation, while maintaining a
managed float to facilitate external adjustment; strengthening
crisis preparedness; and reforms to boost the economy's supply
side.

Following the Executive Board discussion, Mr. Murilo Portugal,
Deputy Managing Director and Acting Chair, issued the following
statement:

"Serbia's recent stretch of robust growth and moderate underlying
inflation—underpinned by large capital inflows—has been
accompanied by the build-up of sizable external imbalances and
vulnerabilities.  With the global financial turmoil spilling over
to Serbia, a rebalancing of the economy through a sharp slowing of
credit and domestic demand seems necessary.

"The authorities' program—supported by the SBA—is an appropriate
response to the current challenges, and seeks to safeguard
macroeconomic and financial stability through a comprehensive
policy package.  Determined implementation of this program should
poise the Serbian economy to resume more balanced and sustained
real income growth.

"Strong fiscal measures are being taken to achieve the tighter
2009 deficit target.  Because of the procyclical fiscal policy
stance since 2006, limited budgetary financing options, and the
need to ensure the credibility of the program, there is no scope
now for countercyclical fiscal loosening.  The slowdown in public
wage and pension growth, as well as other savings measures,
preserve fiscal space for much-needed infrastructure investment.

"Monetary policy will continue to focus on inflation within a
strengthened framework, supported by a managed float with foreign
exchange interventions limited to ensuring orderly market
conditions.  Given the uncertain economic environment, the
monetary stance will need to be adjusted flexibly.

"Past prudential policies are now paying off in providing a strong
first line of defense against spillovers from the financial
turmoil.  These policies have succeeded in building large
liquidity and capital buffers in the banking system, although they
may also have encouraged risky cross-border borrowing.  The
authorities need to strengthen the financial stability framework,
mainly by improving the monitoring of risks and setting up
comprehensive contingency plans.

"Structural policies need to address the economy's weak supply
side, with a view to delivering balanced and sustainable catch-up
growth toward EU income levels.  The program calls for
privatizing, restructuring, or liquidating a wide range of state-
and socially owned- enterprises, as well as lowering the cost of
doing business, to help expand the undersized private sector.

"The authorities have started to implement their program
steadfastly.  This gives confidence that the Serbian economy, with
the support of the international community, will succeed in
overcoming the present difficulties," Mr. Portugal said.

                 Recent Economic Developments

The global financial turmoil began to spill over to Serbia in the
fourth quarter of 2008, as for the region as a whole.  The stock
market plummeted; sovereign spreads soared; households withdrew
some of their deposits; and, amid high volatility and frequent NBS
interventions to maintain foreign exchange market liquidity, the
dinar depreciated.  Growth, which so far was strong, seemed to be
losing momentum. A t the same time, the reversal of the region-
wide food and energy price shocks eased headline inflation
pressures.  These outcomes were accompanied by the build-up of an
increasingly unbalanced external position.  The current account
deficit could reach 18 percent of GDP in 2008, although it has so
far been easily financed by capital inflows, resulting in rising
international reserves.

Consequently, external stability risks have increased
substantially in the current international environment.  These
reflect Serbia's unsustainably large external deficit; the private
sector's high external indebtedness; high euroization; and
indications of weak export competitiveness.  Financial stability
risks have also increased, but the banking sector's liquidity and
capital buffers are comforting.

                      Program Summary

The authorities' program, supported by the SBA, responds to the
abrupt deterioration in the short-term outlook: trading partner
growth and prices of key Serbian exports, particularly metals, are
projected to slow sharply in 2009; and formerly plentiful capital
inflows can no longer be taken for granted, further constraining
domestic and cross-border credit growth.

The program's objective is to safeguard macroeconomic and
financial stability through strengthened policies, designed to
underpin an orderly rebalancing of the economy.  The policy
package focuses on four main features:

    * Tightening of the fiscal stance in 2009-10, with the 2009
      general government deficit limited to 1 3/4 percent of GDP,
      followed by further fiscal consolidation in 2010.  This
      involves strict incomes policies for containing public
      sector wage and pension growth and a streamlining of non-
      priority recurrent spending, which helps create fiscal space
      to expand infrastructure investment.

    * Strengthening the inflation targeting framework while
      maintaining a managed floating exchange rate regime.

    * Making good use of the accumulated financial sector buffers,
      while enhancing financial crisis preparedness.

    * Implementing structural policies to address the roots of the
      economy's low capacity to produce, save, and export.  The
      main elements of the fiscal package include

The program's macroeconomic framework assumes a decline of foreign
inflows and domestic credit, which should lead to a slowdown in
domestic demand, output growth, and inflation, and a narrowing of
external imbalances.  Real GDP growth is projected to decelerate
to 3 1/2 percent in 2009 but should rebound in 2010.  With the
inflation-reducing effects of commodity price declines and slowing
activity being counteracted by pressures on the exchange rate,
inflation is projected to slow only gradually to 8 percent by end-
2009.

Serbia joined the IMF on December 14, 1992; its quota is SDR467.7
million (about EUR541 million or US$707 million) and it has no
outstanding use of IMF credit.  Its latest arrangement with the
IMF was an Extended Fund Facility, completed on February 28, 2006.


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


CEMEX SAB: S&P Downgrades Corporate Credit Rating to 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Cemex S.A.B. de C.V. and
Cemex's key operating subsidiaries (Cemex Espana, S.A., Cemex
Mexico S.A. de C.V., and Cemex Inc.) to 'BB+' from 'BBB-', and
placed the ratings on CreditWatch with negative implications,
meaning that the rating could either be lowered or affirmed
following the completion of S&P's review.  The long-term Mexican
national scale rating on Cemex also was lowered, to 'mxAA-' from
'mxAA'.  At the same time, S&P lowered its rating on Cemex's
fixed-to-floating callable perpetual debentures to 'BB' from
'BB+'.

The rating downgrades reflect S&P's expectations that Cemex's
financial performance for 2009 will be under further pressure
given the weakening of economic growth prospects in Cemex's
principal markets and around the world.  About 74% of the
company's revenue is concentrated in the U.S., Mexico, and Spain
-- all of which S&P expects to record negative growth in this
year, which will translate into lower volumes and cash flow
generation compared with 2008.

As a result, S&P believes that the financial target of the ratio
of funds from operations-to-adjusted net debt in 2009 will be
below S&P's expected 2008 ratio of 15%.

"Although Cemex has succeeded in its debt-refinancing efforts
(covering almost 60% of the total debt maturing in 2009) and
consented to amending the leverage ratio covenant in its existing
loan facilities, S&P believes that maturities in 2009 will still
be relatively high compared with Cemex's expected cash flow
generation and cash position," said Juan Pablo Becerra, of
Standard & Poor's Corporate & Infrastructure Ratings group.
"Additionally, S&P considered Cemex´s liquidity as weak."

The CreditWatch placement reflects S&P's concerns that Cemex will
experience further deterioration in its key financial ratios, as
well as the fact that the company will have to rely on asset
disposals to cover part of its maturities in 2009.  "Additionally,
S&P is concerned that Cemex's asset sales may be hampered by
depressed asset prices and the near-freeze in the credit markets,"
added Mr. Becerra.  "We expect to resolve the CreditWatch
listing upon a full review of the issuer's plans to address its
maturities in 2009."


EMPRESAS HIPOTECARIO: S&P's Ratings on Two Notes Tumble to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
the notes issued by Empresas Hipotecario TDA CAM 3, Fondo de
Titulizacion de Activos (Empresas Hipotecario TDA CAM 3), FTPYME
TDA CAM 4, Fondo de Titulizacion de Activos (FTPYME TDA CAM 4),
and EMPRESAS HIPOTECARIO TDA CAM 5, Fondo de Titulizacion de
Activos (Empresas Hipotecario TDA CAM 5).

Specifically, S&P:

  -— Lowered the rating on FTPYME TDA CAM 4's class B notes;

  —- Lowered and removed from CreditWatch negative the ratings on
     Empresas Hipotecario TDA CAM 3's and TDA FTPYME CAM 4's class
     C notes, and Empresas Hipotecario TDA CAM 5's class B and C
     notes;

  —- Placed Empresas Hipotecario TDA CAM 3's class B notes on
     CreditWatch negative;

  —- Kept on CreditWatch negative the 'AAA' rated notes in all
     three transactions; and

  —- Affirmed FTPYME TDA CAM 4's and Empresas Hipotecario TDA CAM
     5's class D notes.

S&P placed the class C notes issued by Empresas Hipotecario TDA
CAM 3 and FTPYME TDA CAM 4 and the class B and C notes in Empresas
Hipotecario TDA CAM 5 on CreditWatch negative on Oct. 21, 2008,
following an initial analysis of the performance of those deals.
At that time, the collateral performance had highlighted factors
that had increased the possibility of negative rating actions for
certain junior classes.

The rating actions follow a full credit and cash flow analysis of
the most recent transaction information and loan-level data that
S&P has received for these particular Spanish small and midsize
enterprise, originated by Caja de Ahorros del Mediterraneo.

The collateral in these transactions shows a high geographical
concentration in the Valencia region that represents 39.81% of the
outstanding collateral in Empresas Hipotecario TDA CAM 3, 52.81%%
in FTPYME TDA CAM 4, and 45.90% in Empresas Hipotecario TDA CAM 5.
While these deals show an industry concentration in real estate
and construction sectors slightly lower than the typical Spanish
SME deals that S&P has rated, its analysis of the data provided
suggests that each securitized pool contains a higher-than-average
portion of loans granted to developers.  Those loans, in S&P's
opinion, are more exposed to an expected rapid deterioration in
performance in the current economic environment.

                 Empresas Hipotecario TDA CAM 3

This transaction is backed by a less granular pool than those
backing TDA FTPYME CAM 4 and TDA Empresas Hipotecario 5.
According to the latest available information, the collateral
includes 430 loans and the top 10 borrowers represent 19.54% of
the current outstanding balance.  As a result, the deal's
performance is more sensitive to individual loan defaults, and S&P
reflected this concentration in S&P's analysis.

90+ day delinquent loans currently represent 2.24% of the
outstanding balance, or EUR11.24 million.  Gross cumulative
defaults represent only 0.16% of the original outstanding balance;
however, given the current economic environment, S&P expects
defaults to increase in the near to medium term.  S&P's credit and
cash flow analysis demonstrated that the class C notes can no
longer maintain their current rating.  In addition, the results
illustrated that the probability of a negative rating action for
the class B notes has increased.

                         FTPYME TDA CAM 4

Loans in arrears for more than 90 days have almost doubled to
EUR16.58 million as of Nov. 30, 2008, from EUR8.90 million as of
March 2008.  Gross cumulative defaults represent only 0.36% of the
original balance; however, given the current economic environment,
S&P expects a significant portion of the 90+ day arrears to
default in the near to medium term.

This could potentially increase the likelihood of a breach of the
deferral of interest trigger.  The deferral of interest triggers
are based on cumulative defaults reaching 4.85% of the initial
collateral balance for the class C notes, and 8.00% for the class
B notes.  S&P considers that a breach of the trigger could
potentially result in the junior and mezzanine notes experiencing
an interest shortfall, while senior notes would deleverage more
quickly.  S&P's credit and cash flow analysis demonstrates that
the credit enhancement available to the class B and C notes is, in
S&P's opinion, insufficient to maintain the current ratings.

                  Empresas Hipotecario TDA CAM 5

This transaction closed in October 2007. According to the latest
available information, 90+ day arrears reached 2.51% of the
outstanding collateral.  Gross cumulative defaults increased to
0.4% of the original collateral balance, or EUR5.6 million—
slightly higher than those observed for TDA FTPYME CAM 4, which
closed in December 2006.  This suggests that TDA Empresas
Hipotecario CAM 5 is experiencing a more rapid deterioration in
collateral performance, with a significant portion of loans in
arrears rolling into default.  S&P expects this trend to continue
over the near to medium term.  This will increase the likelihood
of a breach of the deferral of interest trigger, potentially
resulting in the junior and mezzanine notes experiencing an
interest shortfall, while the senior notes will be repaid faster.
In TDA Empresas Hipotecario CAM 5, this trigger is based on
cumulative defaults reaching 7.3% of the initial collateral
balance for class C notes and 10.4% for the class B notes.

The outcomes of S&P's credit and cash flow analysis showed that
the class B and C notes no longer pass S&P's 'A-' and 'BBB'
stresses, respectively, so S&P has lowered the ratings on these
notes to the level at which they passed S&P's rating stresses
—'BBB' and 'BB-', respectively.

The CreditWatch negative placement of the 'AAA' rated notes in all
three transactions is not driven by collateral performance issues,
but continues to reflect unresolved issues relating to the
substitution of Caja de Ahorros del Mediterraneo as swap
counterparty.

Following CAM's downgrade to 'A-2' on Dec. 10, 2008, it has been
replaced as treasury account provider for these transactions by
Confederacion Espanola de Cajas de Ahorros (AA-/Negative/A-1+).

                          Ratings List

                        Rating Lowered

        FTPYME TDA CAM 4, Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes

                                  Rating
                                  ------
         Class            To                 From
         -----            --                 ----
         B                BBB+               A

      Ratings Lowered and Removed from Creditwatch Negative

Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos
        EUR750 Million Mortgage-Backed Floating-Rate Notes

                                  Rating
                                  ------
         Class            To                 From
         -----            --                 ----
         C                BB                 BBB/Watch Neg

        FTPYME TDA CAM 4, Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes

                                  Rating
                                  ------
         Class            To                 From
         -----            --                 ----
         C                BB-                BBB-/Watch Neg

Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos
              EUR1,430.8 Million Floating-Rate Notes

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

              Rating Placed On Creditwatch Negative

Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos
        EUR750 Million Mortgage-Backed Floating-Rate Notes

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

                     Ratings Remaining On Creditwatch Negative

Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos
        EUR750 Million Mortgage-Backed Floating-Rate Notes

                         Rating
                         ------
                 To                 From
                 --                 ----
                 A2                 AAA/Watch Neg

       FTPYME TDA CAM 4, Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes

                         Rating
                         ------
                 To                 From
                 --                 ----
                 A2                 AAA/Watch Neg
                 A3                 AAA/Watch Neg

Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos
              EUR1,430.8 Million Floating-Rate Notes

                         Rating
                         ------
                 To                 From
                 --                 ----
                 A1                 AAA/Watch Neg
                 A2                 AAA/Watch Neg
                 A3                 AAA/Watch Neg

                         Ratings Affirmed

        FTPYME TDA CAM 4, Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes

                         Rating
                         ------
                 To                 From
                 --                 ----
                 D                  CCC-

Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos
              EUR1,430.8 Million Floating-Rate Notes

                         Rating
                         ------
                 To                 From
                 --                 ----
                 D                  CCC-


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


TELEFONAKTIEBOLAGET LM ERICSSON: Cuts Jobs as Net Income Drops
--------------------------------------------------------------
Telefonaktiebolaget LM Ericsson's ("Ericsson") net income for the
fourth quarter 2008 declined 31% to SEK3.9 billion from SEK5.6
billion in the same period in 2007, impacted by restructuring
charges and a dramatic drop in the contribution from Sony Ericsson
Mobile Communication Ltd., its handset venture with Sony Corp.

According to Bloomberg News, last week, Sony Ericsson reported a
net loss of EUR187 million (US$245 million) in the quarter.  The
unit expects to remain unprofitable for the first half of this
year, the news agency relates.

Ericsson's sales for the current quarter increased 23% to SEK67.0
billion from SEK54.5 billion in 2007 fourth quarter due to
currency exchange rate swings, especially towards the end of the
year.

After exceeding cost reduction targets launched in 2008, Ericsson
said it will continue to reduce costs, across all parts of the
company at the same pace as in 2008 with restructuring charges of
SEK6-7 billion, targeting annual savings of SEK10 billion from the
second half of 2010.

"To date, our infrastructure business is hardly impacted at all,
but it would be unreasonable to think that this would be the case
also throughout 2009," Bloomberg News quoted Ericsson Chief
Executive Officer Carl-Henric Svanberg as saying during a press
meeting in Stockholm Wednesday.  "We will prepare for tougher
times to defend our margins."

In February 2008, the company announced a cost reduction plan of
SEK4 billion in annual savings, including estimated charges of the
same size.  All activities with related charges were launched by
the third quarter, and it was announced that further charges would
be made in the fourth quarter.

Charges in the fourth quarter amount to SEK2.3 billion and for the
full year 2008 to SEK6.7 billion.  This resulted in annual savings
of approximately SEK6.5 billion from year-end.

Ericsson's cost saving plans will continue in 2009.  Restructuring
charges are estimated to be SEK6-7 billion and annual savings of
SEK10 billion are expected by the second half of 2010, with an
equal split between cost of sales and operating expenses.

Ericsson proposed a dividend of SEK1.85 per share for 2008,
representing some SEK6.0 billion, payable on April 27, 2009.  The
proposed dividend is down from SEK2.50 paid out the previous year,
Bloomberg News notes.

Also, the company will layoff some 5,000 employees, of which about
1,000 in Sweden, primarily in Stockholm.  Bloomberg News says last
year, Ericsson announced 4,000 job cuts.  The company's global
headcount was almost 79,000 at the end of 2008.

Headquartered in Stockholm, Sweden, Telefonaktiebolaget LM
Ericsson (NASDAQ:ERIC) a.k.a Ericsson -- http://www.ericsson.com/
-- is a provider of telecommunications equipment and related
services to operators of mobile and fixed networks worldwide.
Over 1,000 networks in more than 175 countries utilize its
equipment.  The company supplies the network equipment and
services that enable telecommunication, end-to-end solutions for
mobile and fixed communication.  The company has four business
segments: Networks, which includes communications infrastructure
and related deployment services; Professional Services, which
includes managed services, services for network systems
integration, consulting and education and customer support
services; Multimedia, which includes networked media and
messaging, enterprise applications, revenue management, service
delivery platforms (SDP) and mobile platforms, and Phones, which
includes the 50/50 joint venture with SONY corporation, Sony
Ericsson Mobile Communications, offering a range of mobile
handsets and other mobile devices.


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


COATEC HOLDING: Creditors Must File Proofs of Claim by Feb. 5
-------------------------------------------------------------
Creditors owed money by JSC Coatec Holding are requested to file
their proofs of claim by Feb. 5, 2009, to:

         E. Bruderer
         Bahnhofstrasse 34
         Mail Box: 8702 Zollikon
         Switzerland

The company is currently undergoing liquidation in Zollikon.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 27, 2008.


HOSTELIA JSC: Creditors Must File Proofs of Claim by Jan. 31
------------------------------------------------------------
Creditors owed money by JSC Hostelia are requested to file their
proofs of claim by Jan. 31, 2009, to:

         Dornacherstrasse 8
         6003 Luzern
         Switzerland

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


LISDA LLC: Deadline to File Proofs of Claim Set January 31
----------------------------------------------------------
Creditors owed money by LLC Lisda are requested to file their
proofs of claim by Jan. 31, 2009, to:

         Trust Company Germann Treuhand
         Frutigenstrasse 21
         3600 Thun
         Switzerland

The company is currently undergoing liquidation in Thun.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 28, 2008.


MENTAL GUIDE: Creditors Have Until February 5 to File Claims
------------------------------------------------------------
Creditors owed money by LLC Mental Guide are requested to file
their proofs of claim by Feb. 5, 2009, to:

         Hanspeter Liechti
         Heinrichsgasse 19
         4055 Basel
         Switzerland

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


TELIT COMMUNICATION: Proof of Claim Filing Deadline is Jan. 30
--------------------------------------------------------------
Creditors owed money by JSC Telit Communication are requested to
file their proofs of claim by Jan. 30, 2009, to:

         Bachstrasse 56
         8200 Schaffhausen
         Switzerland

The company is currently undergoing liquidation in Schaffhausen.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 28, 2008.


VISENDA LLC: Creditors' Proofs of Claim Due by February 2
---------------------------------------------------------
Creditors owed money by LLC Visenda are requested to file their
proofs of claim by Feb. 2, 2009, to:

         LLC Intelligent Business Solutions
         Baarerstrasse 94
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 2, 2008.


WICK & WEHRLI: February 5 Set as Deadline to File Claims
--------------------------------------------------------
Creditors owed money by LLC Wick & Wehrli Oldtimerfahrzeugtechnik
are requested to file their proofs of claim by Feb. 5, 2009, to:

         JSC TREVAG Treuhand und Verwaltung
         Buelach
         Ackerstrasse 2
         8180 Buelach
         Switzerland

The company is currently undergoing liquidation in Niederhasli.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 25, 2008.


WICKLI BAUPLANUNGEN: Creditors Must File Claims by Feb. 19
----------------------------------------------------------
Creditors owed money by LLC Wickli Bauplanungen are requested to
file their proofs of claim by Feb. 19, 2009, to:

         Karl Wickli
         Haldenstrasse 23a
         9642 Ebnat-Kappel
         Switzerland

The company is currently undergoing liquidation in Ebnat-Kappel.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 11, 2008.


WINDPOWER TRUST: Deadline to File Proofs of Claim Set Jan. 30
-------------------------------------------------------------
Creditors owed money by JSC Windpower Trust are requested to file
their proofs of claim by Jan. 30, 2009, to:

         Stefan Toffol
         JSC Toffol & Schibli Treuhand
         Rue de la Banque 3
         Mail Box: 360
         1701 Fribourg
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 18, 2008.


ZYKLUS GARTENBAU: Creditors Have Until Feb. 15 to File Claims
-------------------------------------------------------------
Creditors owed money by LLC Zyklus Gartenbau are requested to file
their proofs of claim by Feb. 15, 2009, to:

         Werner Blattler
         Grosswis 1770
         9534 Gahwil
         Switzerland

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


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


AVISTA LLC: Creditors Must File Claims by January 25
----------------------------------------------------
Creditors of LLC Avista (EDRPOU 31517935) have until Jan. 25,
2009, to submit proofs of claim to:

         Trading House External Trading Service
         Kikvidze Str. 18
         01103 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 4, 2008.
The case is docketed as 24/500-b.

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

The Debtor can be reached at:

         LLC Avista
         Apt. 701
         Industrialnaya Str. 27
         03056 Kiev
         Ukraine


DATA GROUP-NIKOLAYEV: Creditors Must File Claims by January 25
--------------------------------------------------------------
Creditors of LLC Data Group-Nikolayev (EDRPOU 34565913) have until
Jan. 25, 2009, to submit proofs of claim to:

         Mrs. Alla Bezabchuk
         Liquidator / Insolvency Manager
         P.O.B. 14
         54056 Nikolaev
         Ukraine

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 16, 2008.
The case is docketed as 5/589/08.

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

The Debtor can be reached at:

         LLC Data Group-Nikolayev
         Varnenskaya Str. 14
         Nikolaev
         Ukraine


GEOTEKS LLC: Creditors Must File Claims by January 25
-----------------------------------------------------
Creditors of LLC Geoteks (EDRPOU 35222105) have until Jan. 25,
2009, to submit proofs of claim to:

         LLC Studio Art-Keramik
         Liquidator
         Apt. 82
         Artem Str. 103
         04050 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 16, 2008.
The case is docketed as 23/298-b.

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

The Debtor can be reached at:

         LLC Geoteks
         Mayakovsky avenue, 91-B
         02232 Kiev
         Ukraine


METAL INDUSTRY: Creditors Must File Claims by January 25
--------------------------------------------------------
Creditors of LLC Metal Industry (EDRPOU 32723917) have until
Jan. 25, 2009, to submit proofs of claim to:

         Mrs. Julie Tatarinova
         Temporary Insolvency Manager
         Rabkorovskaya Str. 47
         49082 Dnipropetrovsk
         Ukraine
         Tel: 8(056)740-32-54

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed as B 15/341-08.

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

The Debtor can be reached at:

         LLC Metal Industry
         Shevchenko lane, 3
         49000 Dnipropetrovsk
         Ukraine


NIKOPOL PLANT: Creditors Must File Claims by January 25
-------------------------------------------------------
Creditors of CJSC Nikopol Plant of Steel Pipes Utist (EDRPOU
30926951) have until Jan. 25, 2009, to submit proofs of claim to:

         Mrs. Julie Tatarinova
         Temporary Insolvency Manager
         Rabkorovskaya Str. 47
         49082 Dnipropetrovsk
         Ukraine
         Tel: 8(056)740-32-54

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed as B 15/337-08.

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

The Debtor can be reached at:

         CJSC Nikopol Plant of Steel Pipes Utist
         Trubnikov avenue, 56
         Nikopol
         53201 Dnipropetrovsk
         Ukraine


PMB-1 LLC: Creditors Must File Claims by January 25
---------------------------------------------------
Creditors of LLC PMB-1 (EDRPOU 35301773) have until Jan. 25, 2009,
to submit proofs of claim to:

         Mrs. Alla Bezabchuk
         Liquidator / Insolvency Manager
         P.O.B. 14
         54056 Nikolaev
         Ukraine

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 16, 2008.
The case is docketed as 5/591/08.

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

The Debtor can be reached at:

         LLC PMB-1
         Naberezhnaya Str. 42
         Galitsynovoye
         Zhovtneve
         Nikolaev
         Ukraine


PODOLEVSKAYA LLC: Creditors Must File Claims by January 28
----------------------------------------------------------
Creditors of declared LLC Agricultural Firm Podolevskaya (EDRPOU
32414467) have until Jan. 28, 2009, to submit proofs of claim to:

         Mr. Dmitry Tsimberov
         Temporary Insolvency Manager
         Apt. 52
         Bakulin Str. 9/13
         Kharkov
         Ukraine

The Arbitration Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as B-39/194-08.

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

The Debtor can be reached at:

         LLC Agricultural Firm Podolevskaya
         Skripnik Str. 6
         Skripnik Str. 6
         Barvinkovo
         64701 Kharkov
         Ukraine


RA-TEL LLC: Creditors Must File Claims by January 25
----------------------------------------------------
Creditors of LLC Ra-Tel (EDRPOU 25620175) have until Jan. 25,
2009, to submit proofs of claim to:

         Mr. Dmitry Poddubko
         Temporary Insolvency Manager
         Apt. 45
         Mir square, 42
         Chernigov
         Ukraine

The Arbitration Court of Chernigov commenced bankruptcy
proceedings against the company after finding it insolvent on Dec.
15, 2008.  The case is docketed as 4/176b.

         The Economic Court of Chernigov
         Mir Avenue 20
         14000 Chernigov
         Ukraine

The Debtor can be reached at:

         LLC Ra-Tel
         Odintsov Str. 17-A
         14030 Chernigov
         Ukraine


SANTA M LLC: Creditors Must File Claims by January 25
-----------------------------------------------------
Creditors of LLC Santa M (EDRPOU 35938888) have until Jan. 25,
2009, to submit proofs of claim to:

         Mrs. Alla Bezabchuk
         Liquidator / Insolvency Manager
         P.O.B. 14
         54056 Nikolaev
         Ukraine

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 16, 2008.
The case is docketed as 5/590/08.

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

The Debtor can be reached at:

         LLC Santa M
         Lenin avenue, 183/6
         Nikolaev
         Ukraine


TARTAS LLC: Creditors Must File Claims by January 25
----------------------------------------------------
Creditors of LLC Tartas (EDRPOU 35467003) have until Jan. 25,
2009, to submit proofs of claim to:

         LLC Grevin Trade
         Liquidator
         Bratislavskaya Str. 8
         02156 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 15, 2008.
The case is docketed as 23/295-b.

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

The Debtor can be reached at:

         LLC Tartas
         Office 1
         Vladimirskaya Str. 7
         01025 Kiev
         Ukraine


UKRPROMBANK: Placed in Receivership
-----------------------------------
Reuters reports that Ukraine's central bank placed Ukrprombank,
the country's 15th largest bank by assets, in receivership
Wednesday, January 21.

The receivership, the report says, protects the bank from its
creditors for six months.

Ukrprombank is headquartered in Kiev, Ukraine.


VO METAL: Creditors Must File Claims by January 25
--------------------------------------------------
Creditors of LLC VO Metal Resource (EDRPOU 31161290) have until
Jan. 25, 2009, to submit proofs of claim to:

         Mr. Sergey Bagmet
         Temporary Insolvency Manager
         Apt. 77
         Yuzhno-Koltsevaya Str. 25
         Zaporozhje
         Ukraine

The Arbitration Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent on
Nov. 10, 2008.  The case is docketed as 19/301/08.

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

The Debtor can be reached at:

         LLC VO Metal Resource
         Yuzhnoye highway Str. 69-B
         Zaporozhje
         Ukraine


* UKRAINE: Cabinet, NBU Mulls Bank Refinancing Plan
---------------------------------------------------
The Cabinet of Ministers and the National Bank of Ukraine are
intending to draw up and agree an order of refinancing to
commercial banks, Ukrainian News reports citing Borys Sobolev, the
deputy secretary of the National Security and Defense Council.

The report relates that in a meeting on Wednesday, January 21, the
Cabinet of Ministers passed a decision to authorize the Economy
Ministry and the Council of investors with the Cabinet of
Ministers to finalize the draft resolution concerning the order of
refinancing.

The Cabinet of Ministers and the National Bank of Ukraine plans to
issue a joint resolution on the matter within a week, the report
notes.


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


BISHOPSGATE ASSET: Moody's Withdraws 'Ba2' Rating on Notes
----------------------------------------------------------
Moody's Investors Service announced it has withdrawn its rating of
one class of notes issued by Bishopsgate Asset Finance Limited.

Moody's has withdrawn this rating for business reasons.

The rating action is:
Bishopsgate Asset Finance Limited:

(1) Series 1 GBP203,680,000 Guaranteed Asset Backed Fixed Rate
Notes due August 2044

  -- Current Rating: WR
  -- Prior Rating: Ba2
  -- Prior Rating Date: 20 June 2008, downgraded to Ba2 from Baa3
     under review for possible downgrade


CO-OPERATIVE BANK: Fitch Affirms Support Rating Floor at 'BB+'
--------------------------------------------------------------
Fitch Ratings has placed The Co-operative Bank's Long-term Issuer
Default Rating of 'A', Individual Rating of 'B/C' and Short-term
IDR of 'F1' on Rating Watch Negative.  Fitch has simultaneously
affirmed CB's Support Rating of '3' and Support Rating floor of
'BB+'.  The rating action has no impact on CB's covered bond
rating of 'AAA'.  At the same time, Fitch has also placed
Britannia Building Society's (Britannia) senior debt rating of 'A'
on RWN and affirmed Britannia's other ratings.

The rating action is based on the institutions' announcement on 21
January 2009 of their intention to merge their businesses
following this week's change in legislation, which now permits
such a combination.  As a result of the transaction, Britannia
will form a large part of the combined institution which will be
owned by Co-operative Financial Services. CFS itself is part of
the Co-operative Group.  Britannia's members will become members
of CG.

The RWN on CB's Long- and Short-term IDRs and Individual Rating
reflects the agency's view that CB's credit and funding risk
profile will weaken as a result of the merger.  In particular,
CB's historically strong deposit/loan ratio will be somewhat
diluted by the addition of Britannia's larger wholesale funding
component.  Fitch considers that certain portions of Britannia's
specialist residential mortgage lending may be more susceptible to
the weaker operating environment than CB's current residential
mortgage portfolio.  Fitch also notes CB's smaller size relative
to Britannia.  However, Fitch understands that CB's liquidity and
funding position has historically been strong and should support
the new entity's funding and liquidity position.  Fitch will
analyse the combined bank's liquidity and credit risks in greater
detail in the coming months before the transaction is completed
which could lead to CB's Short-term IDR being affirmed or
downgraded to 'F2'.

The affirmation of Britannia's issuer ratings and Outlook reflects
the fact that Britannia will contribute the bulk of loans to the
new bank.  Its funding position should improve as the combined
entity will benefit from a larger customer deposit base and a
smaller wholesale funding ratio (as calculated by Fitch).  The
conversion of Britannia from a building society into a commercial
bank will result in share accounts no longer ranking behind non-
member deposits and other unsubordinated liabilities in the event
of liquidation.  As a result, the conversion will result in an
equalisation of senior debt ratings with Britannia's Long-term
IDR, hence the RWN assigned to its senior debt rating.

"The merger between The Co-operative Bank and Britannia Building
Society creates a larger mutual financial institution which has
greater UK market shares in residential mortgages and saving
deposits," said Andrea Jaehne, Director of Fitch's financial
institutions group.  "It will also offer a wider range of products
to a larger and more diversified customer base, while
strengthening The Co-operative Bank's solid niche franchise."

Both businesses will maintain their brand names over the
integration period.  The combined bank will have a nationwide
presence with more than 300 branches serving some eight million
customers.  The new bank aims to create annual synergies of at
least GBP60m by the third year, mainly through cost savings.  The
loan book of the new bank will be split into corporate lending,
including commercial property, and retail lending.  Residential
mortgages account for the majority of retail loans.  Based on
November 2008 figures, nearly two-thirds of residential mortgages
consist of prime owner-occupied mortgages, with the remainder
being split almost equally among buy-to-let, self-certification
and adverse mortgages.  Fitch views all of the specialist mortgage
products as riskier than prime owner occupied mortgages,
especially in light of falling house prices, increasing
unemployment and a deteriorating economic environment.

The new bank's loan book will be mainly funded through customer
deposits.  The new bank should retain the good liquidity position
of both institutions.  Capitalization is expected to be adequate
in light of the new bank's risks and currently expected moderate
profitability in the initial years following the merger.  Fitch
notes that, as a result of new legislation, for regulatory
purposes Britannia's permanent interest bearing shares will no
longer be treated as a Tier 1 instrument, but as Tier 2 capital.
These capital securities will continue entirely to account as
capital in Fitch's analysis of the equity of the new institution.

The Co-operative Bank plc:

  -- Long-term IDR of 'A' placed on RWN

  -- Short-term IDR of 'F1' placed on RWN

  -- Individual Rating of 'B/C' placed on RWN

  -- Support Rating affirmed at '3'

  -- Support Rating Floor affirmed at 'BB+'

  -- Britannia Building Society:

  -- Long-term IDR affirmed at 'A-' (A minus); Outlook Negative

  -- Short-term IDR affirmed at 'F2'

  -- Individual Rating affirmed at 'C'

  -- Support Rating affirmed at '3'

  -- Support Rating Floor affirmed at 'BB+'

  -- Senior unsecured debt rating of 'A' placed on Rating Watch
     Negative

  -- Subordinated notes and permanent interest bearing shares
     affirmed at 'BBB+'


CTF MIDLANDS: Names Joint Administrators from Smith & Williamson
----------------------------------------------------------------
Anthony Cliff Spicer and Henry Anthony Shinners of Smith &
Williamson Ltd. were appointed joint administrators of CTF
Midlands Ltd. on Jan. 12, 2009.

The company can be reached at:

         CTF Midlands Ltd.
         Star House
         Star Mill
         Rochester
         Kent
         ME1 1UX
         England


ESP TECHNOLOGIES: Appoints Liquidators from Smith & Williamson
--------------------------------------------------------------
John Tancock and Adrian Paul Dante of Smith & Williamson Ltd. were
appointed joint liquidators of ESP Technologies Group Ltd. on
Jan. 9, 2009, for the creditors' voluntary winding-up proceeding.

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


         First Floor
         89 King Street
         Maidstone
         Kent
         ME14 1BG
         England


FISHWORKS: Goes Into Administration; 90 Jobs Affected
-----------------------------------------------------
Mike Jervis and Colin Haig of PricewaterhouseCoopers LLP were
appointed as joint administrators of Fishworks on January 20,
2009.

Subsequently, four Fishworks sites (Bath; Richmond; Swallow
Street, London; Marylebone Street, London), were sold to Boparan
Ventures Limited.

Fishworks is a specialist fish restaurant chain and has 10
restaurants and fishmongers operating in the UK.  Like many
restaurant chains Fishworks has been affected by the current
economic climate, making trading conditions difficult.

Boparan Ventures Limited, a private company based in Sutton
Coldfield, purchased 4 sites operated by Fishworks, securing the
continued employment of approximately 95 members of staff across
the UK.

Mike Jervis, joint administrator and partner at
PricewaterhouseCoopers LLP said: "Through an extensive accelerated
merger and acquisition process, we reached out to around 50
potential buyers and received 5 competitive bids.  We are
delighted to be able to announce this sale, resulting in the
preservation of over 90 jobs and a continuation of the brand,
particularly at this challenging time in the sector."

The six sites excluded from the sale (Bristol, Christchurch,
Chelsea, Islington, Primrose Hill, Chiswick) will unfortunately be
closed with immediate effect.  There are 90 job losses in total.


FOUR SEASONS: Has Six Months to Restructure Defaulted Loans
-----------------------------------------------------------
Four Seasons Health Care Ltd's lenders gave the company six more
months to restructure GBP1.2 billion (US$1.7 billion) of defaulted
senior loans, Bloomberg News reports.

In a statement, Four Seasons said it is continuing negotiations
with its lenders towards agreeing a consensual restructuring of
the company's debt.  To facilitate the finalization of these
negotiations, the company said it entered into a new standstill
agreement with its senior lenders until July 22, 2009, on the same
terms as the existing standstill agreement.

The company said it has tabled an alternative restructuring
proposal for the loans.  Details of the proposal were not
provided.

According to the company, preliminary results for the year ended
December 31, 2008, show that its EBITDA for the year will have
increased to over GBP100 million.

Four Seasons Health Care Ltd. -- http://www.fshc.co.uk/-- with
more than 15,000 people in its care, the company is one of the
largest care home (nursing home) operators in the U.K.  The
company runs some 300 nursing homes, and its Huntercombe division
operates about eight specialized health care centers (which
provide mental health and rehabilitation services) in England,
Scotland, North Ireland, and the Isle of Man.  Allianz Capital
Partners, the private equity arm of Allianz Group, acquired the
company from Alchemy Partners for GBP775 million in 2004.


GEORGE CARTER: Enters Administration; KPMG Appointed
----------------------------------------------------
Administrators from KPMG were appointed to West Midlands-based
George Carter (Pressings) on January 19, 2009.

The company, which employs 110 people at its site in Willenhall,
manufactures pressings and carries out powder coating, primarily
for the commercial vehicle market.

Andy McGill, joint administrator from KPMG Restructuring in
Birmingham said: "The trading position of George Carter
(Pressings) came under pressure following a reduction in demand
from the commercial vehicle sector – the business' primary
customer.

"It is with regret that we have had to make a number of
redundancies in order to stem the losses but we have had a number
of expressions of interest from potential purchasers and we are
hopeful that a buyer will be found for the business."

According to the administrators, a quick sale will be necessary in
order to preserve a future for the business.

The firm employed 110 people – 31 redundancies have been made.


GRAND PRIX RACEWEAR: Taps Joint Administrators from PKF
-------------------------------------------------------
Ian J. Gould and Brian J. Hamblin of PKF (UK) LLP were appointed
joint administrators of Grand Prix Racewear Ltd. on Jan. 13, 2009.

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

         New Guild House
         45 Great Charles Street
         Queensway
         Birmingham
         B3 2LX
         England


HAMMONDS SUPPORT: Goes Into Administration; Deloitte Appointed
--------------------------------------------------------------
Michael Fahy at Crain's Manchester Business reports that Hammonds
Support Services Ltd has gone into administration.

The report relates Adrian Berry and Dan Butters from the Leeds
office of accountancy firm Deloitte were appointed joint
administrators of HSSL.

Citing the administrators, the report discloses 230 of the
company's 243 employees lost their jobs.

The report states that according to Mr. Berry, HSSL "has been hit
hard by both the collapse of the residential property market and
the significant reduction of re-mortgage work they undertake as
fewer borrowers are re-mortgaging at the end of fixed period
mortgage deals."

Mr. Berry, the report notes, attributed the significant reduction
of re-mortgage work to the reduction in the Bank of England base
rate and lenders' Standard Variable Rate of interest.

"The two together have caused a significant reduction in the
volume of work undertaken and resulted in HSSL incurring losses
which it has been unable to withstand," Mr. Berry was quoted by
the report as saying.

HSSL is the parent firm of volume conveyancing business Hammonds
Direct.  Hammonds Direct however is not subject to insolvency
proceedings and neither business is linked with Hammonds LLP, the
report says.

Hammonds Direct, the report recounts, restructured its business in
2001 and transferred to HSSL the processing aspects of its
activities which were not required to be carried out by
solicitors.

The report meanwhile adds the administrators were currently in
talks to sell all or part of HSSL as a going concern.


KAUPTHING SINGER: Action Group Seeks GBP550Mln Loan from IoM Gov't
------------------------------------------------------------------
Simon at The Herald reports that the KSFIOM depositors action
group has called on the Isle of Man government to loan Kaupthing
Singer & Friedlander Isle of Man GBP550 million to help repay
depositors.

According to The Herald, expatriate savers and UK savers stand to
lose GBP821 million in the bank's liquidation.

The court liquidation hearing has twice been postponed to enable
high-level discussions aimed at resolving the issue to continue,
The Herald recalls.

The Herald recounts it was reported last month the mainly
expatriate British customers could expect to get back at most
GBP350 million, to be subscribed by the island's government and
its banks towards funding a previously unfunded depositor
protection scheme.

"There is a hole of GBP550 million to fill - massive, unthinkable
in the old world of just a few months ago, but today when compared
to the current UK government's second tranche payment it looks
more like pocket money," Stephen Thomas, a spokesman for the
action group, was quoted by The Herald as saying.  "This outlay
would be the equivalent of GBP6870 per islander, compared with the
estimated GBP33,000 per taxpayer that Gordon Brown's latest scheme
is costing UK taxpayers.  While the UK is committing more than
two-thirds of its annual GDP to preserve employment in this
sector, such a move would cost the IoM just half of its GDP."

Mr. Thomas noted half of this might reasonably be expected to be
repaid by the Icelandic bank, The Herald adds.

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

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

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

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


KAUPTHING SINGER: Tynwald Approves Early Payment Scheme
-------------------------------------------------------
Tynwald on Tuesday, January 20, 2009, approved the Kaupthing
Singer and Friedlander (Isle of Man) Limited Early Payment Scheme.
This was developed by the Isle of Man Treasury following Tynwald
approval in principle for such a scheme in December 2008.

On December 17, 2008, Tynwald approved the development of an Early
Payment Scheme for depositors with KSF IOM together with the
release of GBP11 million from the Reserve Fund to meet depositor
claims.

The scheme, funded from Isle of Man Government reserves, will make
GBP1,000 per account holder available as an initial measure
pending the finalization of a more comprehensive solution.

According to iomtoday.co.im, Peter Karran (LibVan, Onchan) was the
only Tynwald member to vote against the scheme.

The market value of government reserves as at December 31, 2008,
was GBP317.7 million, iomtoday.co.im discloses.

However, iomtoday.co.im notes, Treasury Minister Allan Bell
admitted the payment had limited support, but said it would make a
difference to the 30 per cent of depositors who had deposits up to
GBP4,000 in the collapsed bank.

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

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

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

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


JOHN NICHOLLS: Goes Into Administration
---------------------------------------
Sophie Griffiths at building.co.uk reports that John Nicholls
Builders has gone into administration after 47 years of trading.

The company, the report relates, has appointed international
accountancy firm Mazars as its administrator.

Tim Ball, joint administrator and Mazars partner, blamed the
economic downturn and a significant reduction in orders for the
company's collapse, the report discloses.

"The business was unable to continue trading, resulting in the
redundancies of the majority of staff," Mr. Ball was quoted by the
report as saying.

Mr. Ball, as cited by the report, said "We are speaking with
various parties regarding options for the business, and are
progressing discussions with interested parties regarding the sale
of current contracts."

Based in Truro, Cornwall, John Nicholls Builders is a chartered
building company.


LANDSBANKI GUERNSEY: Action Group Backs Creating Creditors Panel
----------------------------------------------------------------
The Landsbanki Guernsey Depositors' Action Group is backing a
proposal to set up an informal creditors committee,
channelonlive.tv reports.

According to the report, Landsbanki Guernsey's administrator,
Deloitte, wants to establish a creditors committee to meet with
them on behalf of the other depositors.

The action group, as cited by the report, said they're in favor of
that part of their proposals.

               About Landsbanki Guernsey Ltd.

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

Landsbanki Guernsey was placed into administration on Oct. 7,
2008.  The administration follows the deepening problems of the
Icelandic economy and, in particular, of the Icelandic banking
system.

Rick Garrard and Lee Manning of Deloitte & Touche LLP were
appointed as joint administrators of the bank on Oct. 7 and
Oct. 10 respectively.  The affairs, business and property of the
Bank are being managed by the joint administrators.


LUXFER HOLDINGS: Moody's Cuts Probability of Default Rating to B3
-----------------------------------------------------------------
Moody's Investors Service downgraded the probability of default
rating of Luxfer Holdings to B3 from B2 and placed all ratings on
review for downgrade.

The downgrade of the PDR is due to the delay in refinancing
Luxfer's GBP45 million asset-based bank facility, which matures on
April 26, 2009.  Moody's had expected the facility to have been
refinanced in December 2008.  Luxfer now expects the refinancing
to happen in the first half of February.  However, ongoing turmoil
in global financial markets and the strained position of many
banks mean that there continues to be greater uncertainty over the
process than would otherwise be the case under normal market
conditions.

The decision to only downgrade the PDR while leaving the Corporate
Family Rating of B2 unchanged reflects the view that while default
risk has increased, in the event of a default, recovery for
creditors would be above the prior 50% family recovery rate
assumption.  This reflects Moody's assumptions on the underlying
value of the business -- which continues to perform well --
together with the relatively low leverage (the company reported
LTM net Debt/Ebitda of 3.1x at September 30, 2008).

At that date the bank facility was drawn by GBP22.9 million, up
from GBP20.6 million on 30 June 2008.  Failure to refinance would
likely lead to a default unless alternate liquidity became
available.  Luxfer reported only GBP2 million cash at September
30, 2008, and it does not have significant assets that could be
liquidated quickly.  Nor is an equity injection from existing
shareholders to avoid default likely at this time.

Operationally, Luxfer has maintained its good performance in
difficult markets, as evidenced by its financial results which saw
revenue for the first nine months of 2008 of GBP 194 million (up
22% from 9M 2007) and stable margins.  This steady performance --
together with the asset-based secured nature of any new facility,
which is attractive to lenders - should help facilitate the
refinancing process.  However, the same features in the existing
facility may allow current ABL lenders to terminate and suffer
relatively low loss, even if the termination were to cause Luxfer
to default.

Despite leverage not being particularly high, Luxfer has limited
financial flexibility due to its relatively small size and the
need to maintain investment and associated capital expenditure.
The company benefits from exposure to a broad range of industrial
customers, but given the global economic outlook the prospects for
material near-term debt reduction appear low.

Moody's also notes Luxfer's announcement in November 2008 of a
strategic review to explore options to realize value for
shareholders, 87% of whom are creditors who received equity as
part of a capital reorganization in 2007 (the balance 13% being
held by management).  Although the company's options may be
limited for some time by the adverse global financial environment,
the announcement does increase uncertainty as to the future
capital structure of the group.

The ratings have been placed on review for downgrade to reflect
the continued uncertainty regarding the refinancing process.  If
Luxfer fails to refinance in the expected timescale, Moody's is
likely to take downward rating action to reflect the greater
probability of default as the maturity date of the existing
facility approaches.  Moody's may also take downward rating action
depending on the final terms of the facility, if refinancing is
successful; or depending on the outcome of the strategic review.
The last rating announcement for Luxfer was on October 16, 2008,
when the company's rating outlook was changed to negative.

Headquartered in Manchester, England, Luxfer specializes in the
design and manufacture of high-pressure gas cylinders, and
aluminium, zirconium, and magnesium based engineering products for
use in the aerospace, automotive, medical and general engineering
industries.  Revenue for the year ending December 2007 was GBP 213
million.


MACKINTOSH & PARTNERS: Names Joint Liquidators from Tenon
---------------------------------------------------------
A. J. Pear and I. Cadlock of Tenon Recovery were appointed joint
liquidators of Mackintosh & Partners Ltd. on Jan. 7, 2009, for the
creditors' voluntary winding-up proceeding.

The company can be reached through Tenon Recovery at:

         Third Floor
         Lyndean House
         43/46 Queens Road
         Brighton
         East Sussex
         BN1 3XB
         England


MAPELEY: May Become Insolvent
-----------------------------
Devono reports that commercial property group Mapeley is at risk
of becoming insolvent.

According to the report, the company said it does not have
sufficient money to stay afloat and needs to raise GBP48 million.

Citing the Sunday Times, the report relates Mapeley told investors
"If the transaction does not proceed ... Mapeley Group may become
insolvent or unable to continue trading."

Mapeley, the report discloses, owns and manages 2.3 million sq
metres of commercial property and has a contract with the Inland
Revenue.


MIDAS CAPITAL: Expects to Get Temporary Debt Waiver from Bankers
---------------------------------------------------------------
Midas Capital plc said that at the year end its net debt stood at
GBP29.8 million and the business is trading in line with
expectations and remains cash generative.

Midas noted it has met all of its interest and principal payments
on time, but in view of the well reported market conditions is
working closely with its bankers and expects to reach agreement
shortly on a temporary waiver of its covenants until April 30,
2009 with a view to restructuring its borrowing arrangements.

Midas said negotiations are proceeding satisfactorily and the bank
has confirmed that Midas continues to enjoy its full support.  The
company is also considering possible strategic options to
strengthen its balance sheet and is in discussions with a number
of interested parties.

Reuters relates that at 1440 GMT on Wednesday, January 21, 2009,
shares in the group fell 60 percent at 14.7 pence.

Midas Capital plc -- http://www.iimia.co.uk/-- is the ultimate
parent company.  MDS plc has three divisions involved in Fund
Management, Wealth Management and Corporate Finance and Broking.
MDS plc is headquartered in Exeter, with offices in Liverpool,
Bournemouth, Falmouth, Guernsey, Plymouth, Northampton, Reading
and Capetown.  Intelli Corporate Finance Ltd has offices in London
and Edinburgh.


REAL HOTEL: Goes Into Administration; BDO Stoy Hayward Appointed
-----------------------------------------------------------------
Shay Bannon and Tony Nygate of BDO Stoy Hayward LLP were appointed
joint administrators of The Real Hotel Company Limited on
Wednesday, January 21, 2009.

Companies also placed in administration are: RHC Properties
(No 1) Limited, RHC Properties (No 3) Plc, Connaught Restaurants
Limited, New Cobden Hotel Limited, Parapix Limited, Oltrix
Limited, Southcrest Hotels Limited, Ashbrake Limited, Floatels
(UK) Limited, Fortply Limited, Friendly Hotels (Coryton) Limited,
Glentod Limited, Opaljewel Limited, RHC Properties (No 2) Limited,
Holdeed Limited, New Friendly Hotels Limited, Rosenest Limited and
Friendly Sleep Inn 2 Limited.

The Scotsman relates the appointment of BDO Stoy Hayward follows
last week's suspension of shares in the parent company amid
uncertainty over its financial position.

The Real Hotel Company Limited -- http://www.realhotelcompany.com/
-- currently operates over 50 owned, leased or managed hotels in
the UK, France, Germany and Belgium as well as the New Connaught
Rooms.

The Real Hotel Group Plc (RHG) is the ultimate holding company for
the Group which operates The Real Hotel Company and purplehotels.
The shares trade on AIM.

The Real Hotel Group Plc's country of incorporation and main
country of operation is The United Kingdom of Great Britain and
Northern Ireland.


SABRE PRINT: Taps Joint Liquidators from PKF
--------------------------------------------
Edward T. Kerr and Ian J. Gould of PKF (UK) LLP were appointed
joint liquidators of Sabre Print Ltd. on Jan. 12, 2009, for the
creditors' voluntary winding-up proceeding.

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

         Pannell House
         159 Charles Street
         Leicester
         LE1 1LD
         England


VAN AAKEN: Appoints Joint Liquidators from Tenon Recovery
---------------------------------------------------------
T. J. Binyon and S. J. Parker of Tenon Recovery were appointed
joint liquidators of Aaken Developments Ltd. on Jan. 10, 2009, for
the creditors' voluntary winding-up proceeding.

The company can be reached through Tenon Recovery at:

         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


* BOOK REVIEW: Crafting Solutions for Troubled Businesses
---------------------------------------------------------
Full Title: Crafting Solutions for Troubled Businesses: A
           Disciplined Approach to Diagnosing and
           Confronting Management Challenges
Author:     Stephen J. Hopkins and S. Douglas Hopkins
Publisher:  Beard Books
Hardcover:  316 pages
List Price: US$74.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587982870/internetbankrupt

So the first thing to do when dealing with a troubled business
is to find the guilty and lop someone's head off!  Don't be so
quick to react, advise co-authors Stephen J. Hopkins and S.
Douglas Hopkins in their thoughtful, well-researched book,
Crafting Solutions for Troubled Businesses.

The father-son team of Steve and Doug Hopkins are principals of
Kestrel Consulting LLC, a firm they founded in March 2004.

Each has more than 25 years of experience working with troubled
businesses and providing turnaround advisory and interim
management services.

Steve got his first taste of a troubled business when, as chief
financial officer of an 80-year-old chemical company, Bill
Nightingale of Nightingale & Associates assisted him in taking
the company through a Chapter 11 filing.  The company
subsequently emerged from bankruptcy with payment in full to all
creditors.

Steve then joined Nightingale, staying for 23 years and serving
initially as a principal and eventually as president from 1994
to 2000.  Doug began working at Nightingale in 1978 as a part-
time resource for special projects.  After working in this
capacity for 10 years, Steve joined Nightingale full time in the
1980s and became a principal in 1994.  Both Steve and Doug have
served in various C-level roles in troubled companies, including
CEO, CFO, COO, and CRO.

To write this book, the Hopkinses drew upon their vast
experience in dealing with troubled companies.  They took 100 of
the largest projects they have been involved in and applied a
"disciplined analysis" to diagnose problem situations and
produce successful outcomes.

The projects -- helpfully set apart by shaded boxes --
demonstrate the authors' theories and methods in dealing with
troubled businesses.

The authors also analyze some well-known cases like Enron,
WorldCom, and Sunbeam to help the reader connect the dots in a
very real sense and use the book for actionable advice.

The book is divided into five parts:

  1) Conceptual Approach and Key Issues,
  2) Managing the Crisis,
  3) The Diagnosis Process,
  4) Alternatives and Action Plans, and
  5) Lessons Learned in 100 Completed Assignments.

Each part has multiple chapters expanding on these themes, and
each chapter concludes with a recap of what was discussed.  For
speed readers and the time crunched, these recaps are an
excellent way of extracting from the book the essence of what
the authors are advocating.

So what about lopping off that head?  The authors contend that
management's role is much less pivotal than is commonly
believed.

The real issue when working with a troubled business is
determining the viability of the business.  To do that, the
underlying causes must be identified at different stages of the
corporate lifecycle.

The authors categorize troubled businesses as Undisciplined
Racehorses, Overburdened Workhorses, and Aging Mules.  Only
through a step-by-step diagnosis can the core problems be dealt
with.  Pursuing a turnaround may not always be a viable and, in
fact, in only one-third of the 100 cases the authors worked on
did the company achieve a true operational turnaround.

Crafting Solutions to Troubled Businesses should be on the must-
read list of anyone involved in dealing with, consulting for, or
operating a troubled business.

                            *********

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

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

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

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

                            *********


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

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

Copyright 2009.  All rights reserved.  ISSN 1529-2754.

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

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

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


                 * * * End of Transmission * * *