TCREUR_Public/090128.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

           Wednesday, January 28, 2009, Vol. 10, No. 19

                            Headlines

A U S T R I A

AKTIV-HAUSBAU LTD: Claims Registration Period Ends February 2
AVD-AUTOMOBILE LLC: Claims Registration Period Ends Feb. 19
BI JSC: Claims Registration Period Ends January 27
LUDWIG RIEDLER: Claims Registration Period Ends February 25
SCHOEGGL LLC: Claims Registration Period Ends February 11

URI SPIELBETRIEB: Claims Registration Period Ends February 12
VER 2 REAL: Claims Registration Period Ends February 10
WAFA IBRAHIM: Claims Registration Period Ends February 12


B E L G I U M

KBC BANK: Impairments on Portfolio Cues Moody's Rating Downgrades


D E N M A R K

ATLAS SHIPPING: Files for Chapter 15 Protection


G E R M A N Y

BOXENSTOPP MOTORRADTECHNIK: Claims Registration Ends March 23
DOLPHIN TELECOM: Claims Registration Period Ends February 19
FCC GMBH: Claims Registration Period Ends March 10
PRONOVA BAUUNTERNEHMEN: Claims Registration Period Ends March 5
VISTEON CORP: Hires Advisers for Possible Bankruptcy

ZL MOBIL TECHNIK: Claims Registration Period Ends February 11

* GERMANY: EU Commission Approves EUR6.7 Billion Guarantee for SDB


I R E L A N D

AMERICAN INT'L: Seeks Bids for Fund Management Business


I T A L Y

SESTANTE FINANCE: Moody's Concludes Reviews for Likely Rating Cuts


K A Z A K H S T A N

ALLIANCE AS: Proof of Claim Deadline Slated for March 6
BATYS INVEST B: Creditors Must File Claims by March 6
INSERVICE STROY: Claims Filing Period Ends March 6
MEGA PRODUCTS: Creditors' Proof of Claims Due on March 6
MORGAN STENLI: Claims Registration Ends March 6

NEKSUS LLP: Proof of Claim Deadline Slated for March 6
PODSHIPNIK LLP: Creditors Must File Claims by March 6
SAS KAZ TRADING: Claims Filing Period Ends March 6


K Y R G Y Z S T A N

TRUB SERVICE: Creditors Must File Claims by Feb. 24


L I T H U A N I A

FLYLAL: Lithuanian Ministry Seeks Probe Into Bankruptcy


N E T H E R L A N D S

ERICK VAN EGERAAT: Goes Into Receivership; 150 Jobs at Risk
LYONDELLBASELL INDUSTRIES: Chapter 11 Prompts S&P's 'D' Rating


R U S S I A

EKO-STROY CJSC: Creditors Must File Claims by February 16
KAPITAL-STROY LLC: Creditors Must File Claims by March 16
KARBO-KHIM OJSC: Nizhegorodskaya Bankruptcy Hearing Set April 14
KARELSKIY SURIMI: Creditors Must File Claims by March 16
NOVYY DOM CJSC: Creditors Must File Claims by February 16

PENOIZOL LLC: Creditors Must File Claims by February 16
RYAZANSKIY MACHINE: Creditors Must File Claims by March 16
SITRONICS JSC: Fitch Assigns 'B-' Senior Unsecured Rating
URAL-STROY-MEKHANIZATSIA: Creditors Must File Claims by Feb. 16
UYSKIY MEAT: Creditors Must File Claims by March 16


S W I T Z E R L A N D

CALANIT LLC: Creditors Must File Proofs of Claim by February 5
EASTERN GATE: Deadline to File Proofs of Claim Set February 4
FUHRUNG AND ABSATZ: Creditors Have Until Feb. 5 to File Claims
PISTAG VERWALTUNG: Proof of Claim Filing Deadline Set Jan. 31
RENTRAP JSC: Creditors' Proofs of Claim Due by January 31

SIDUS CAPITAL: February 5 Set as Deadline to File Claims
SIMPLE SOLUTIONS: Creditors Must File Proofs of Claim by Feb. 5


U K R A I N E

ATLANT-SERVICE-GROUP: Creditors Must File Claims by February 7
AUTO FOB: Creditors Must File Claims by February 7
BPK LLC: Creditors Must File Claims by February 7
KREDITPROMBANK: Fitch Downgrades Issuer Default Rating to 'CCC'
RADAMANT GROUP: Creditors Must File Claims by February 7

RODOVID BANK: Fitch Cuts Issuer Default Rating to 'CC' from 'CCC'
SLOBOZHANSCHINA AGRICULTURAL: Claims Deadline Set February 7
TMTMET LLC: Creditors Must File Claims by February 7
UKRGASBANK: Fitch Downgrades Issuer Default Rating to 'CCC'
VSEUKRAINSKY AKSIONERNY: Fitch Cuts Issuer Default Rating to 'CCC'

* UKRAINE: State Debt Increased in the Past Two Months


U N I T E D   K I N G D O M

ALBA 2007-1: S&P Downgrades Rating on Class E Notes to 'BB'
ARGON CAPITAL: S&P Corrects Ratings on Preference Shares
BARRATTS SHOES: Goes Into Administration; Deloitte Appointed
BERNSTEIN GROUP: Creditors Will Not Receive Dividend, KPMG Says
INEOS GROUP: Weak Liquidity Cues Moody's Junk Corporate Rating

INFORMATION TECHNOLOGY: Goes Into Administration
LAND OF LEATHER: To Begin Stock Liquidation Sales in 33 Stores
LANZET LTD: Appoints Joint Administrators from PKF
LB HOLDINGS: Names Joint Administrators from PwC
NICKEL BLANKS: Acquired by Carrs of Sheffield

POTENTIAL VEHICLE: Appoints Joint Administrators from KPMG
PRICELESS SHOES: Goes Into Administration; Deloitte Appointed
PRINTHAUS: Goes Into Administration
SOUTHERN PACIFIC: S&P Affirms BB+ Ratings on Two Classes of Notes
SYMINGTON: Goes Into Administration

TATA STEEL: Corus Unveils Strategic Measures, 3,500 Jobs at Risk

* RBS Says Half of Commodity Shippers at Risk of Breaching Loans
* UK: FTSE350 Pensions Deficit Estimated at GBP33 Bln, Mercer Says
* EUROPE: GDP Growth in the European Union to Drop by 1.8% in 2009


                         *********


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


AKTIV-HAUSBAU LTD: Claims Registration Period Ends February 2
-------------------------------------------------------------
Creditors owed money by Aktiv-Hausbau Ltd. (FN 269582w) have until
Feb. 2, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Bernhard Astner
         Schloegelgasse 1
         8010 Graz
         Austria
         Tel: 0316/832527
         Fax: 0316/814315
         E-mail: b.astner@hba.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Feb. 17, 2009, for the
examination of claims at:

         Graz Land Court
         Room 205
         2nd. Floor
         Hall K
         Austria

Headquartered in Graz - Puntigam, Austria, the Debtor declared
bankruptcy on Dec. 23, 2008, (Bankr. Case No. 40 S 72/08y).


AVD-AUTOMOBILE LLC: Claims Registration Period Ends Feb. 19
-----------------------------------------------------------
Creditors owed money by LLC AVD-Automobile (FN 296089a) have until
Feb. 19, 2009, to file written proofs of claim to the court-
appointed estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on March 5, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 23, 2008, (Bankr. Case No. 2 S 170/08z).


BI JSC: Claims Registration Period Ends January 27
--------------------------------------------------
Creditors owed money by JSC BI (FN 206148i) have until Jan. 27,
2009, to file written proofs of claim to the court-appointed
estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 12:00 p.m. on Feb. 10, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1701
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 23, 2008, (Bankr. Case No. 6 S 135/08g).


LUDWIG RIEDLER: Claims Registration Period Ends February 25
-----------------------------------------------------------
Creditors owed money by KG Ludwig Riedler (FN 172367g) have until
Feb. 25, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Peter Wilhelm
         Ringstrasse 9
         3500 Krems
         Austria
         Tel: 02732/82265
         Fax: 02732/822656
         E-mail: rechtsanwalt@ra-wilhelm.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on March 11, 2009, for the
examination of claims at:

         Land Court of Krems an der Donau
         Hall A
         2nd. Floor
         Krems an der Donau
         Austria

Headquartered in Zwettl, Austria, the Debtor declared bankruptcy
on Dec. 22, 2008, (Bankr. Case No. 9 S 71/08a).


SCHOEGGL LLC: Claims Registration Period Ends February 11
---------------------------------------------------------
Creditors owed money by LLC Schoeggl (FN 79281s) have until
Feb. 11, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Heinz Pichler
         Burggasse 61
         8750 Judenburg
         Austria
         Tel: 03572-82372
         Fax: 03572-82372-19
         E-mail: h.pichler@scwp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Feb. 25, 2009, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         1st. Floor
         Austria

Headquartered in St. Peter ob Judenburg, Austria, the Debtor
declared bankruptcy on Dec. 22, 2008, (Bankr. Case No. 17 S
70/08z).


URI SPIELBETRIEB: Claims Registration Period Ends February 12
-------------------------------------------------------------
Creditors owed money by LLC Uri Spielbetrieb u. Gastro (FN
290764w) have until Feb. 12, 2009, to file written proofs of claim
to the court-appointed estate administrator:

         Dr. Klemens Dallinger
         Schulerstrasse 18
         1010 Wien
         Austria
         Tel: 513 28 33, Fax: 513 28 33 22
         E-mail: dallinger@anwaltsteam.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 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 22, 2008, (Bankr. Case No. 5 S 147/08i).


VER 2 REAL: Claims Registration Period Ends February 10
-------------------------------------------------------
Creditors owed money by LLC Ver 2 Real Estate (FN 274520g) have
until Feb. 10, 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: 513 16 55 33
         E-mail: Hoedl@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on Feb. 24, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1607
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 22, 2008, (Bankr. Case No. 28 S 170/08s).


WAFA IBRAHIM: Claims Registration Period Ends February 12
---------------------------------------------------------
Creditors owed money by LLC Wafa Ibrahim (FN 291944f) have until
Feb. 12, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Markus Siebinger
         Krugerstrasse 17/3
         1010 Wien
         Austria
         Tel: 513 22 31
         Fax: 513 22 31-1
         E-mail: markus.siebinger@der-rechtsanwalt.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Feb. 26, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 22, 2008, (Bankr. Case No. 5 S 148/08m).


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


KBC BANK: Impairments on Portfolio Cues Moody's Rating Downgrades
-----------------------------------------------------------------
Moody's Investors Service downgraded KBC Bank's bank financial
strength rating to C+ from B- and its long-term debt and deposit
ratings to Aa3 from Aa2.  At the same time, KBC Group's long-term
debt rating was also downgraded to A1 from Aa3.  All long-term
ratings and the bank's BFSR continue to carry a negative outlook.
All short-term ratings were affirmed at Prime-1.  As a consequence
of the rating action on KBC Bank, a number of its subsidiaries
ratings have also been affected.

The rating actions follow -- but are not solely driven by -- KBC's
announcement of further impairments on its Structured Finance
portfolio (EUR1.9 billion) as well as on the group's equity
portfolio (EUR0.7 billion) beyond the impairments that had already
been announced in December 2008.  Over FY2008, KBC will have
written down over EUR5 billion and is expected to post a net loss
of around EUR2.5 billion.

Moody's acknowledges that a significant part of the potential
impairments on the structured finance portfolio have already been
recognized by KBC.  However, the group still maintains a sizable
exposure to structured finance asset classes, in particular to
those from the super senior CDO and RMBS portfolios.  In addition,
Moody's views the KBC Financial Products activities as an area of
concern in the current volatile environment although KBC has
stated that it will take measures to scale down its derivatives
activities.  The negative outlook on KBC's ratings is primarily a
reflection of those concerns and going forward Moody's will
closely review the performance and the risks entailed by KBC FP's
activities and actively monitor the effectiveness of the de-
risking measures, to determine whether the current ratings remain
compatible with the associated level of risk.

Beyond the challenges caused by the financial markets activities
the downgrade to Aa3/C+ for the bank, and to A1 for the group, was
also triggered by Moody's expectation of deteriorating operating
environments in the markets where KBC operates.  In particular,
Moody's noted significantly weakening market conditions in Central
and Eastern Europe and Russia and in Ireland.  CEER and Ireland
represented approximately 37% and 5%, respectively, of KBC's net
banking income for the first nine months of 2008.  Furthermore,
Moody's expects a more challenging macro-economic environment in
Belgium.

On the positive side supporting the C+ BFSR, Moody's notes that
KBC's liquidity position remains solid, that its capital position
provides it with a significant buffer and that the franchise in
Flanders has been strengthening in recent months, with the bank
seeing a net inflow of deposits.

KBC also announced Thursday last week that it would receive a
capital injection in the form of hybrid securities subscribed by
the Flemish Government.  Those hybrid securities are similar to
those subscribed by the Federal Government in December 2008 and
are thus expected to be considered as Core Tier 1 by the Belgian
regulator.  KBC Bank will receive EUR2 billion by the end of the
first quarter of 2009 while another EUR1.5 billion will be
available over the coming five years for the Group through a
stand-by facility.

Moody's notes that KBC has actively sought to increase its
regulatory capital since 2Q 2008, including through the EUR2
billion tier 1 issuance of May 2008, the December 2008 EUR3.5
billion capital injection from the Belgian Government and the
above-mentioned EUR2 billion capital injection from the Flemish
Government.

In respect of the group's main units, these rating actions have
been taken:

  - KBC Bank N.V.'s BFSR downgraded to C+ from B-, long-term
    deposits and senior unsecured debt ratings downgraded to Aa3
    from Aa2, junior subordinated and backed junior subordinated
    debt downgraded to A2 from A1.  All ratings continue to carry
    a negative outlook.  The Prime-1 short-term deposit ratings
    are affirmed.

  - KBC Group N.V.'s long-term senior unsecured debt rating and
    issuer rating downgraded to A1 from Aa3.  All ratings continue
    to carry a negative outlook.  The Prime-1 short-term issuer
    rating is affirmed.

In respect of the group's funding vehicles, these rating actions
have been taken:

  - Kredietbank North America Finance Corp's Prime-1 backed
    commercial paper rating is affirmed.

  - KBC International Finance N.V. backed long-term senior
    unsecured ratings downgraded to Aa3 from Aa2, and backed long-
    term subordinated and junior subordinated ratings downgraded
    to A1 from Aa3.  All ratings continue to carry a negative
    outlook.

  - KBC Bank Funding Trust II's backed preferred stock rating
    downgraded to A2 from A1.  The rating continues to carry a
    negative outlook.

  - KBC Bank Funding Trust III's backed preferred stock rating
    downgraded to A2 from A1.  The rating continues to carry a
    negative outlook.

  - KBC Bank Funding Trust IV's backed preferred stock rating
    downgraded to A2 from A1.  The rating continues to carry a
    negative outlook.

  - KBC IFIMA N.V.'s backed senior unsecured rating downgraded to
    Aa3 from Aa2, backed subordinated debt rating downgraded to A1
    from Aa3. The ratings continue to carry a negative outlook.
    The Prime-1 short-term debt rating is affirmed.

  - KBC Dublin Capital Prime-1 backed commercial paper rating is
    affirmed.

  - KBC Financial Products International Ltd's backed senior
    unsecured debt rating downgraded to Aa3 from Aa2.  The rating
    continues to carry a negative outlook.  The Prime-1 short-term
    debt and commercial paper ratings are affirmed.

  - KBC Financial Products International VI Ltd's backed senior
    unsecured debt rating downgraded to Aa3 from Aa2.  The rating
    continues to carry a negative outlook.

In respect of the bank's operating subsidiaries, these rating
actions have been taken:

  - KBC Bank's Irish subsidiary KBC Bank Ireland's long-term
    deposit and senior unsecured debt ratings were downgraded to
    A2 from A1, and the subordinated debt and junior subordinated
    debt ratings were downgraded to A3 from A2.  The short-term
    Prime-1 rating was affirmed as was the C- BFSR (mapping to a
    baseline credit assessment of Baa1).  The rating outlook is
    stable.  The downgrade of the long-term ratings is a result of
    the similar rating action on KBC Bank N.V.  The A2 senior
    rating of KBC Bank Ireland reflects Moody's assessment of a
    very high probability of parental support from KBC Bank N.V.
    as well as a high probability of systemic support.

Due to the downgrade to A2 of the senior debt rating of KBC Bank
Ireland, Moody's has also downgraded the Mortgage Backed
Promissory Notes of the bank to Aa3.  The rating of the Mortgage
Backed Promissory Notes benefit from a two notch uplift from the
issuers' senior debt rating.

Moody's last rating action on KBC Bank Ireland was on December 16,
2008 when the BFSR was downgraded to C- from C.  At the same time
the A1 long-term bank deposit and senior debt ratings were
affirmed with a negative outlook, in line with the outlook on KBC
Bank N.V.

  - KBC Bank N.V.'s Czech subsidiary Ceskoslovenska obchodni
    Banka, a.s.(CSOB CZ)'s long-term local currency deposit
    ratings downgraded to Aa3 from Aa2.  The rating continues to
    carry a negative outlook.  The bank's long-term foreign
    currency deposit rating of A1 with stable outlook, BFSR of C
    with stable outlook and Prime-1 short-term deposit ratings
    were not affected by the rating action on the parent.

Moody's previous rating action on CSOB CZ was on December 9, 2008,
when the outlook on the long-term foreign currency deposit rating
was changed to stable from positive due to the same change in the
outlook on the Czech Republic's A1 ceiling for foreign currency
deposits.

  - KBC Bank N.V.'s Slovak subsidiary Ceskoslovenska obchodna
    Banka, a.s.(CSOB SK)'s foreign and local currency long-term
    deposit ratings affirmed at A2.  The outlook was changed to
    negative from stable.  The bank's Prime-1 short-term deposit
    ratings and the BFSR of D with stable outlook were not
    affected by the rating action on the parent.

Moody's previous rating action on CSOB SK was on February 27,
2008, when Moody's assigned first-time ratings to the bank.

  - KBC Bank N.V.'s Slovak subsidiary Istrobanka, a.s.'s national
    scale ratings of Aa1.sk/SK-1 and BFSR of D- with positive
    outlook were not affected by the rating action on the parent.

Moody's previous rating action on Istrobanka was on July 7, 2008,
when Moody's upgraded Istrobanka's national scale deposit rating
to Aa1.sk from A1.sk and affirmed the BFSR of D- with positive
outlook after KBC Bank N.V. concluded the acquisition of the
entity.

  - KBC Bank N.V.'s Hungarian subsidiary Kereskedelmi & Hitel bank
    Rt.'s local currency long-term deposit rating was affirmed at
    Aa3 while the outlook was changed to negative from stable.
    The bank's foreign currency long-term deposit rating of A3
    with negative outlook, BFSR of C- with stable outlook, Prime-1
    short-term local currency deposit ratings and Prime-2 short-
    term foreign currency deposit ratings were not affected by the
    rating action on the parent.

Moody's previous rating action on K&H Bank was on November 7,
2008, when its foreign currency deposit ratings were downgraded to
A3 (negative outlook)/Prime-2 from A2 (stable outlook)/Prime-1 due
to a sovereign rating action that resulted in the downgrade of
Hungary's ceiling for foreign currency deposits to A3 (negative
outlook) from A2 (stable outlook).

  - KBC Bank N.V.'s Polish subsidiary Kredyt Bank's foreign and
    local currency long-term deposit ratings were affirmed at A2.
    The outlook was changed to negative from stable.  The bank's
    Prime-1 short-term deposit ratings and the BFSR of D with
    stable outlook were not affected by the rating action on the
    parent.

Moody's last rating action on Kredyt Bank was on February 14,
2008, when Moody's affirmed its ratings with a stable outlook
following change in outlook to negative from stable on KBC Bank
N.V.'s BFSR.

  - KBC Bank N.V.'s Russian subsidiary Absolut Bank's foreign and
    local currency long-term deposit and foreign currency long-
    term senior unsecured ratings were affirmed at Baa3.  The
    outlook was changed to negative from stable.  The bank's BFSR
    of D- with stable outlook, the long-term National Scale Rating
    of Aaa.ru and the bank's Prime-3 foreign and local short-term
    deposit ratings were not affected by the rating action on the
    parent.

The negative outlook on Absolut Bank's long-term deposit and debt
ratings reflects Moody's downgrade of the parent bank's BFSR and
the negative outlook assigned to it and means that a further
downgrade of KBC's BFSR by one notch would result in a respective
one-notch downgrade of Absolut Bank's deposit and debt ratings.

Moody's previous rating action on Absolut Bank was taken on
February 14, 2008, when the rating agency affirmed the bank's
Baa3/Prime 3 long- and short-term local and foreign currency
deposit ratings and its D- BFSR, as well as Baa3 long-term foreign
currency senior unsecured debt rating of Absolut Bank with stable
outlook on all of the ratings.

The last rating action on KBC Bank N.V. and KBC Group N.V. was on
February 14, 2008, when Moody's assigned negative outlooks to KBC
Bank's BFSR and KBC Bank's and KBC Group's long-term deposit and
debt ratings, as Moody's concluded that there was a strong
likelihood that KBC's ratings could come under pressure if the
market turmoil were to develop further and specifically affect
KBC's CDO portfolio.

Based in Brussels, KBC Group had total assets amounting to
EUR383.6 billion at end-September 2008.  KBC Group's consolidated
total income for the first nine months of 2008 (IFRS) stood at
EUR4.771 billion, down 35% from EUR7.329 billion for the first
nine months of 2007.  In the same period, the net profit group
share stood at EUR141 million (9M 2007: EUR2.572 billion).


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D E N M A R K
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ATLAS SHIPPING: Files for Chapter 15 Protection
-----------------------------------------------
Copenhagen, Denmark-based Atlas Shipping A/S filed a Chapter 15
petition before the U.S. Bankruptcy Court for the Southern
District of New York.

According to Bloomberg News, the company listed as much as
US$500 million in debt and up to US$50 million in assets in its
Chapter 15 petition.  Affiliate Atlas Bulk Shipping separately
listed as much as US$50 million in debt and up to US$10 million in
assets.

Atlas Shipping A/S said Jan. 18 on its Web site that it filed a
petition for bankruptcy with the Bankruptcy Division of the
Maritime and Commercial Court in Copenhagen, Denmark.  The
Copenhagen Court entered bankruptcy orders with respect to Atlas
Shipping A/S and its affiliates Atlas Bulk Shipping A/S and Atlas
Shipping Holding A/S.

The Atlas Shipping Group has been operating as an international
contractor of tonnage and provider of transport solutions in the
dry bulk sector with tonnages ranging from 25,000 to 80,000 DWT
(Dead Weight Tons).

Since it was founded in 1996, the group has operated successfully
but due to the historic drops in freight rates the management has
had to realize that if the group continues its operations it will
not be able to fulfill its obligations as they fall due.

The Atlas Shipping Group is owned and operated by Bo Kristensen
who has been involved in the shipping business for more than 25
years.  In connection with the bankruptcy filing, Mr. Kristensen
said in connection with the bankruptcy: "It is extremely
unfortunate, not least for all our highly skilled employees and
our loyal customers, that due to the historic drop in freight
rates since August 2008, we have had to realize that within a
foreseeable timeframe the group will no longer be able to fulfill
all its financial obligations as they fall due."

In 2007 the Atlas Shipping Group had net revenues of US$789
million and a profit from operating activities of US$109 million.

Total revenue in 2008 has been close to US$1 billion, but due to
the global crisis in shipping the group has more than halved its
profit from ordinary activities, i.e. before making the
substantial loss provisions in respect of contracts.

"We unfortunately have to recognize that the present freight rates
and the charter-parties we have entered into before the crisis in
the shipping business commenced will imply a liquidity loss of
approximately US$3 [million] a week if we continue our operations
in their present form. If we continue our operations, our present
-- and considerable -- liquidity, will be spent within three
months unless the international freight rates increase
dramatically within the same period", says Bo Kristensen and
continues, "Therefore we have in consultation with our advisors
decided that in the present situation the sensible thing to do is
to file a petition for bankruptcy."

"We have informed our employees at a meeting today and we have
now, with the liquidator, Michael Ziegler of Plesner Law Firm and
liquidator Lisa Bo Larsen, Kromann Reumert, started helping our
customers get their vessels to the destinations," says Bo
Kristensen.

The Atlas Shipping Group operates 41 vessels worldwide and has a
total of 25 employees.

Please direct all inquiries to Bo Kristensen or Per Moller at +45
3927 9400.  Any inquiries in respect of the estate should be
directed to Michael Ziegler, Attorney-at-Law, Plesner Law Firm, at
+45 3312 1133 or Lisa Bo Larsen, Attorney-at-Law, Kromann Reumert,
at +45 7012 1211.


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G E R M A N Y
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BOXENSTOPP MOTORRADTECHNIK: Claims Registration Ends March 23
-------------------------------------------------------------
Creditors of Boxenstopp Motorradtechnik GmbH have until March 23,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 2:20 p.m. on April 20, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Delmenhorst
         Hall 2
         Branch 1
         Cramerstrasse 183
         27749 Delmenhorst
         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:

         Berend Boehme
         Richtweg 1
         28195 Bremen
         Germany
         Tel: 0421/515756-0
         Fax: 0421/515756-10
         E-mail: bremen@bo-oelb.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:

         Boxenstopp Motorradtechnik GmbH
         Allensteiner Str. 10
         27243 Harpstedt
         Germany

         Attn: Thomas Richter, Manager
         Einsteinstr. 18
         28309 Bremen
         Germany


DOLPHIN TELECOM: Claims Registration Period Ends February 19
------------------------------------------------------------
Creditors of Dolphin Telecom 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 11:10 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 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:

         Hans-Gerd Jauch
         Sachsenring 81
         50677 Cologne
         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:

         Dolphin Telecom GmbH
         Attn: Oliver Wilps, Manager
         Kaltenbornweg 6
         50679 Cologne
         Germany


FCC GMBH: Claims Registration Period Ends March 10
--------------------------------------------------
Creditors of FCC GmbH have until March 10, 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 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 Dortmund
         Hall 3.201
         Gerichtsplatz 22
         44135 Dortmund
         Germany

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

The insolvency manager can be reached at:

         Dr. Winfrid Andres
         Stefanstrasse 2
         44135 Dortmund
         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:

         FCC GmbH
         Oberbank 9
         44149 Dortmund
         Germany

         Attn: Murat Soyumer, Manager
         Heilsberger Weg 4
         44369 Dortmund
         Germany


PRONOVA BAUUNTERNEHMEN: Claims Registration Period Ends March 5
---------------------------------------------------------------
Creditors of Pronova Bauunternehmen und Baustoffhandel GmbH have
until March 5, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on March 30, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Hildesheim
         Hall 124
         Main Building
         Kaiserstrasse 60
         31134 Hildesheim
         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. Steffen Koch
         Sophienstr. 1
         30159 Hannover
         Germany
         Tel: 0511/3539910
         Fax: 0511/35399110
         E-mail: www.hww-kanzlei.de

The District Court opened bankruptcy proceedings against the
company on Jan. 9, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Pronova Bauunternehmen and
         Baustoffhandel GmbH
         Attn: Detlev Kupfer, Manager
         Breite Str. 5
         31174 Schellerten
         Germany


VISTEON CORP: Hires Advisers for Possible Bankruptcy
----------------------------------------------------
Visteon Corp. has hired Kirkland & Ellis LLP as bankruptcy counsel
and Rothschild Inc. as financial adviser to prepare for a possible
bankruptcy filing, John D. Stoll and Jeffrey McCracken report,
citing people familiar with the matter.

The sources said that Visteon's hiring of the experts doesn't mean
a bankruptcy filing is imminent, WSJ relates.  WSJ states that the
sources said that Visteon and its advisers are studying whether it
should file for bankruptcy pre-emptively to conserve its cash.

According to Bloomberg, Visteon, a former unit of Ford Motor Co.,
fell to a record low in New York trading after a report that the
supplier had hired advisers to prepare for a possible bankruptcy
filing.  The company's shares fell 7 cents, or 32 percent, to 15
cents at 4:15 p.m. in New York Stock Exchange composite trading.
That was the lowest close since trading began in June 2000,
according to data compiled by Bloomberg.

WSJ states that Visteon's bonds trade below 20 cents on the
dollar, indicating that investors believe that the company
wouldn't be able to pay off its debt.  Sources said that Visteon
has plenty of cash right now, but it burned through more than
US$400 million in 2008, according to WSJ.  The report says that
Visteon is worried that it could face a liquidity crisis later in
2009.

According to WSJ, a person familiar with the matter said that
Visteon's probability of filing for bankruptcy is "about 65% to
70%," mainly depending of on the outcome of high-levels talks with
Ford Motor Co.  Visteon is one of Ford Motor's biggest parts
suppliers.

Visteon, says WSJ, and will cut pay by as much as 10% for any
employee making more than US$75,000.

WSJ reports that a bankruptcy filing by Visteon could affect Ford
Motor.  Visteon, in bankruptcy protection, might be able to reject
and renegotiate parts contracts with Ford Motor that it felt were
unprofitable, according to the report.  Visteon, WSJ states, might
also be able to evade or beat back any concessions that Ford Motor
demands from its suppliers.  Visteon also supplies parts to
General Motors Corp., Chrysler LLC, Nissan Motor Co., and BMW AG.

Restructuring and Other Actions

Visteon completed its three-year improvement plan at a lower cost
and with greater savings than originally planned.  Recent actions
taken at two Western European manufacturing locations bring to 30
the total number of facilities addressed.  As of Dec. 31, 2008,
US$68 million was available in the escrow account to fund future
restructuring actions.

Visteon continues to take other aggressive actions in light of the
current vehicle production environment.  The company is on track
to complete, by the end of first quarter 2009, the reduction of
800 salaried employees globally, announced in October 2008.  This
action will generate an estimated per annum savings of US$60
million once completed.  For the month of January 2009, Visteon
adopted a four-day workweek schedule for about 2,000 salaried
employees at its Van Buren Township and Plymouth, Mich.,
facilities commensurate with a 20% reduction in base salaries.
This action will be reassessed based on future market conditions.
The company also has implemented other actions to reduce costs
including the suspension of 401(k) matching contributions and 2009
salary increases, the elimination of certain benefit programs, and
a reduction in new hiring.  Additional actions are being taken to
reduce capital expenditures, working capital and non-personnel
expenses.

Preliminary 2008 Financial Data

Visteon has provided preliminary estimates of certain financial
information for the fourth quarter and full year 2008.  Visteon
expects to release its final fourth-quarter and full-year 2008
financial results on Feb. 25, 2009.

Product sales for fourth quarter 2008 are estimated to be
US$1.55 billion, while full year 2008 sales are estimated at
US$9.1 billion.  Approximately 22% of total fourth quarter product
sales were in North America, with 37% in Europe and 35 percent in
Asia-Pacific.  The reduction in fourth quarter sales compared with
a year ago is largely attributable to significantly lower vehicle
production by Visteon's global customers.

Visteon continues to win new business with a broad spectrum of
customers across all regions, a reflection of the company's
significant global footprint and breadth of innovative products.
New business wins in 2008 were about US$650 million.  Many of the
innovations in Visteon's climate, interiors, electronics and
lighting products are featured on vehicles prominently displayed
at the 2009 North American International Auto Show in Detroit.
This includes significant products for both the NAIAS 2009 Car of
the Year -- Hyundai Genesis -- and the 2009 Truck of the Year,
Ford F-150.

Visteon's year-end 2008 cash balances were US$1.18 billion, which
include US$75 million drawn under the company's principal U.S.
credit line.  Visteon's debt balances at year-end 2008 were
approximately US$2.76 billion and include US$92 million for the
non-cash impact of on-balance sheet accounting treatment for the
Europe securitization facility, which was amended in fourth
quarter 2008.

                     About Visteon Corp.

Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers.  The company also has corporate offices
in Shanghai, China; and Kerpen, Germany; the company has
facilities in 26 countries and employs approximately 38,500
people.

As reported in the Troubled Company Reporter on Nov. 4, 2008,
Visteon Corporation's balance sheet at Sept. 30, 2008, showed
total assets of US$5.9 billion and total liabilities of
US$6.4 billion, resulting in shareholders' deficit of roughly
US$530 million.

The company reported a net loss of USUS$188 million on total sales
of US$2.11 billion.  For third quarter 2007, Visteon reported a
net loss of US$109 million on sales of US$2.55 billion.

Visteon reported a net loss of US$335 million for the first nine
months of 2008, compared with a net loss of US$329 million for the
same period a year ago.

                         *     *     *

The Troubled Company Reporter said on Jan. 14, 2009, that Standard
& Poor's Ratings Services lowered its corporate credit rating on
Visteon Corp. to 'CCC' from 'B-' and removed all the ratings from
CreditWatch, where they had been placed on Nov. 13, 2008, with
negative implications.  The outlook is negative.  At the same
time, S&P also lowered its issue-level ratings on the company's
debt.

TCR reported on Nov. 27, 2008, that Moody's Investors Service
lowered Visteon Corporation's corporate family and probability of
default ratings to Caa2, and Caa1, respectively.  In a related
action, Moody's also lowered the ratings of Visteon's senior
secured term loan to B3 from Ba3, unguaranteed senior unsecured
notes to Caa3 from Caa2, and guaranteed senior unsecured notes to
Caa2 from Caa1.  Visteon's Speculative Grade Liquidity remains
SGL-3.  The outlook is negative.


ZL MOBIL TECHNIK: Claims Registration Period Ends February 11
-------------------------------------------------------------
Creditors of ZL Mobil Technik Fahrzeugbau Verwaltungs GmbH have
until Feb. 11, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:00 a.m. on March 10, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Stuttgart
         Room 176
         Hauffstr. 5
         70190 Stuttgart
         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. Reinhard Th. Schmid
         Hasenbergsteige 5
         70178 Stuttgart
         Germany
         Tel: 0711/66 90 70
         Fax: 0711/66 45 068

The District Court opened bankruptcy proceedings against the
company on Jan. 7, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         ZL Mobil Technik Fahrzeugbau Verwaltungs GmbH
         Attn: Alois Zwerschina, Manager
         Schatzweg 2
         70597 Stuttgart
         Germany


* GERMANY: EU Commission Approves EUR6.7 Billion Guarantee for SDB
------------------------------------------------------------------
The European Commission has approved, under EC Treaty state aid
rules, a EUR6.7 billion SoFFin-guarantee for SdB
Sicherungseinrichtungsgesellschaft deutscher Banken mbH, a banking
entity of the German private banking industry.  The guarantee aims
to bolster the German Deposit Protection Fund and to pre-finance
future proceeds from the estates of insolvent Lehman Brothers
entities.  The Commission found the measure to be in line with its
Guidance Communication on state aid to overcome the current
financial crisis.  The guarantee is necessary to avoid a serious
disturbance in the German economy and to ensure the stability of
the German banking sector while avoiding undue distortions of
competition and is therefore compatible with Article 87.3.b. of
the EC Treaty.

Competition Commissioner Neelie Kroes said: "The Commission's very
rapid decision supports the German authorities' efforts to
stabilise financial markets.  The present decision is an example
that our rules are adaptable enough to support not only individual
banks but also the banking industry of a Member State as a whole."

On January 15, 2009, the German authorities notified a guarantee
to be granted by the German Special Fund for Financial Market
Stabilization (SoFFin).  The guarantee aims at providing
collateral for a bond in the amount of EUR6.7 billion issued by
Sicherungseinrichtungsgesellschaft deutscher Banken mbH (SdB) and
subscribed by the member banks of the Association of German Banks
(BdB).  The SoFFin-guarantee enables the subscribers the
refinancing of the bond via the German Central Bank.

SdB is a newly created banking entity, which supports the Deposit
Protection Fund of the German private commercial banks in
processing the compensation payments.  The Deposit Protection Fund
of the German commercial banks fully secures the deposits of each
and every customer at the private commercial banks up to a ceiling
of 30% of the relevant liable capital of each member banks.

On September 15, 2008, Lehman Brothers Holdings Inc., a major
global US based investment bank, filed for Chapter 11 bankruptcy
protection and triggered the insolvency of its German subsidiary
Lehman Brothers Bankhaus AG.  The Deposit Protection Fund
envisages compensating the depositors of Lehman Brothers Bankhaus
AG until end of January 2009.

The aim of the bond issue is to pre-finance the future incoming
payments the Deposit Protection Fund will receive from the
insolvency assets of the insolvent Lehman Brothers Bankhaus AG and
its parent company Lehman Brothers Holdings Inc.  The pre-
financing will provide more financial maneuvering room to the
Deposit Protection Fund with regard to the compensation of the
depositors of Lehman Brothers Bankhaus AG and potential additional
future compensation or support measures to avoid banking
insolvencies.  The measure will therefore contribute to increase
the confidence in the German private banking sector and the
effectiveness of its Protection Fund.


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


AMERICAN INT'L: Seeks Bids for Fund Management Business
-------------------------------------------------------
American International Group Inc plans to divest its Fund
Management Business, which operates 15 existing fund programs with
over US$12.4 billion in assets under management and US$5.2 billion
in equity capital commitments as of September 30, 2008.

In a statement Monday, AIG said the Fund Management Business is a
global asset advisor headquartered in New York with regional
operations in Europe, Japan, Latin America and Asia and includes
committed equity capital that has been funded or is to be funded
by AIG as a sponsor or co-investor.

Bank of America and Merrill Lynch, GRE's financial advisors, have
begun to solicit interest for the Fund Management Business.

Separately, Bloomberg News reports that according to Reuters, AIG
has received bids from investors including sovereign wealth funds
in Singapore, China and the Middle East for its aircraft leasing
unit, International Lease Finance Corp.

The report relates Reuters's sources said among the initial
bidders for the unit are Singapore's Temasek Holdings Pte, Dubai's
investment arm Istithmar World, the Kuwait Investment Authority
and China Investment Corp.

Private equity firms including Carlyle Group, TPG Capital LP and
Kohlberg Kravis Roberts & Co. are also bidding, the report says
citing Reuters.

While the timing of the auction for the unit, which could be worth
as much as US$8 billion, is unclear, the second round of bids
could come in the third week of February, Bloomberg News adds,
citing Reuters.

                            About AIG

Based in New York, American International Group, Inc. (AIG) is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions.  AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer.  In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world.  AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.

During the third quarter of 2008, requirements to post collateral
in connection with AIG Financial Products Corp.'s credit default
swap portfolio and other AIGFP transactions and to fund returns of
securities lending collateral placed stress on AIG's liquidity.
AIG's stock price declined from US$22.76 on Sept. 8, 2008, to
US$4.76 on Sept. 15, 2008.  On that date, AIG's long-term debt
ratings were downgraded by Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch
Ratings, which triggered additional requirements for liquidity.
These and other events severely limited AIG's access to debt and
equity markets.

On Sept. 22, 2008, AIG entered into an US$85 billion revolving
credit agreement with the Federal Reserve Bank of New York and,
pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000
shares of Series C Perpetual, Convertible, Participating Preferred
Stock to a trust for the benefit of the United States Treasury.
At Sept. 30, 2008, amounts owed under the facility created
pursuant to the Fed Credit Agreement totaled US$63 billion,
including accrued fees and interest.

Since Sept. 30, AIG has borrowed additional amounts under the
Fed Facility and has announced plans to sell assets and businesses
to repay amounts owed in connection with the Fed Credit Agreement.
In addition, subsequent to Sept. 30, 2008, certain of AIG's
domestic life insurance subsidiaries entered into an agreement
with the NY Fed pursuant to which the NY Fed has borrowed, in
return for cash collateral, investment grade fixed maturity
securities from the insurance subsidiaries.

On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through
its Troubled Asset Relief Program, US$40 billion of newly issued
AIG perpetual preferred shares and warrants to purchase a number
of shares of common stock of AIG equal to 2% of the issued and
outstanding shares as of the purchase date.  All of the proceeds
will be used to pay down a portion of the Federal Reserve Bank of
New York credit facility.  The perpetual preferred shares will
carry a 10% coupon with cumulative dividends.

AIG and the Fed also agreed to revise the existing FRBNY credit
facility.  The loan terms were extended from two to five years to
give AIG time to complete its planned asset sales in an orderly
manner.  The equity interest that taxpayers will hold in AIG,
coupled with the warrants, will total 79.9%.

At Sept. 30, 2008, AIG had US$1.022 trillion in total consolidated
assets and US$950.9 billion in total debts.  Shareholders' equity
was US$71.18 billion, including the addition of US$23 billion of
consideration received for preferred stock not yet issued.


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


SESTANTE FINANCE: Moody's Concludes Reviews for Likely Rating Cuts
------------------------------------------------------------------
Moody's Investors Service concluded its review for possible
downgrade of the notes issued by Sestante Finance S.r.l. in three
RMBS transactions: Sestante Finance S.r.l. Series 2004, Sestante
Finance S.r.l. Series 2005, and Sestante Finance S.r.l. Series
2006.  All ratings were placed on review for possible downgrade on
September 17, 2008, following the announcement by Lehman Brothers
Holdings Inc. that it intended to file a petition under Chapter 11
of the U.S. Bankruptcy Code on September 15.

In the Sestante RMBS transactions, Lehman Brothers Special
Financing Inc. was acting as interest rate cap provider.  On
December 4, 2008, new cap agreements have been entered into with
the new cap provider, BNP Paribas (Aa1/P-1).  These new cap
agreements entail the payment of an upfront premium by the SPV to
the cap provider.  In its rating review, Moody's has evaluated the
impact of the premium payment and the role of the cap provider.
Moody's have concluded that there are, as per Moody's current
understanding, no incremental risks stemming from these cap
arrangements that could translate into increased losses to
noteholders, ultimately affecting ratings of the notes.

The downgrade of the Class C2 issued by Sestante 2006 was prompted
by worse-than-expected collateral performance.  The rating
downgrade takes into account an increased portfolio loss
expectation resulting from higher than expected delinquency and
default levels.  With 23 months seasoning since closing, Sestante
2006 shows delinquencies 90+ days at 4.62% of the current
portfolio balance, while cumulative defaults equal 1.77% of the
original portfolio balance.  The delinquency ratio was calculated
as the proportion of loans with 3 to 11 missed installments
compared to the current amount of the non-defaulted part of the
portfolio.

Sestante 2005 has 35 months of seasoning since closing and
delinquencies 90+ days stand at 4.26% of the current portfolio
balance, while defaults equal 1.28% of the original portfolio
balance.  Sestante 2004 has 4.5% of delinquencies 90+ days of
current balance, while defaults equal 2.1% of the original
portfolio balance.

As part of its analysis, Moody's has assessed updated loan-by-loan
information of the outstanding transactions to determine the
increase in credit support needed to address the current portfolio
performance and to assess the volatility of future losses.  Taking
into account the current amount of cumulative defaults and
completing a delinquency/default roll-rate and severity analysis
for the non-defaulted portion of the portfolio, Moody's has
adjusted its loss expectations for these portfolios to these
ranges:

  - Sestante 2004: a range of 2.5%-3% (from 1.5%-2%),

  - Sestante 2005: a range of 2.5%-3% (from 1.5%-2%) and

  - Sestante 2006: a range of 2.8%-3.2% (from 1.5%-2.5%) of the
    original pool balance.

Investors should also note that the reserve fund has been drawn
for the last three consecutive periods in Sestante 2004.  Indeed,
it stands at EUR4.37 million after the January 2009 interest
payment date as opposed to the required target of EUR6.25 million.
Moody's will continue to monitor the transaction closely to assess
the impact of the reduction of the reserve fund on the issued
notes.

Under the Sestante RMBS transaction series, Meliorbanca (Baa3/P-
3/D+) securitized first-lien mortgage loans granted to
individuals, all of whom are using these loans to acquire,
construct or refurbish residential properties in Italy.  The
issued Class A, B and C1 notes were backed by a portfolio of
mortgage loans.  The Class C2 are repaid by excess spread, both in
terms of interest and principal.

                          Ratings List

Sestante Finance S.r.l. Series 2004:

  - Class A Asset-Backed Floating-Rate Notes due 8 July 2042,
    current rating Aaa, previously on 17 Sept 2008 put on review
    for possible downgrade; confirmed;

  - Class B Asset-Backed Floating-Rate Notes due 8 July 2042,
    current rating Aa3, previously on 17 Sept 2008 put on review
    for possible downgrade; confirmed;

  - Class C1 Asset-Backed Floating-Rate Notes due 8 July 2042,
    current rating A3, previously on 17 Sept 2008 put on review
    for possible downgrade; and confirmed;

  - Class C2 Asset-Backed Floating-Rate Notes due 8 July 2042,
    current rating Baa3, previously on 17 Sept 2008 put on review
    for possible downgrade; confirmed.

  -- Previous rating action date: 17 September 2008

Sestante Finance S.r.l. Series 2005:

  - Class A Asset-Backed Floating-Rate Notes due 2045, current
    rating Aaa, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed;

  - Class B Asset-Backed Floating-Rate Notes due 2045, current
    rating Aa3, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed;

  - Class C1 Asset-Backed Floating-Rate Notes due 2045, current
    rating A3, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed; and

  - Class C2 Asset-Backed Floating-Rate Notes due 2045, current
    rating Baa3, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed.

  - Previous rating action date: 17 September 2008

Sestante Finance S.r.l. Series 2006:

  - Class A1 Asset-Backed Floating-Rate Notes due 2046, current
    rating Aaa, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed;

  - Class A2 Asset-Backed Floating-Rate Notes due 2046, current
    rating Aaa, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed;

  - Class B Asset-Backed Floating-Rate Notes due 2046, current
    rating Aa3, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed;

  - Class C1 Asset-Backed Floating-Rate Notes due 2046, current
    rating A3, previously on 17 Sept 2008 put on review for
    possible downgrade, confirmed; and

  - Class C2 Asset-Backed Floating-Rate Notes due 2046 ,
    previously on 17 Sept 2008 put on review for possible
    downgrade, downgraded to Ba1 from Baa3.

  - Previous rating action date: 17 September 2008.

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


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


ALLIANCE AS: Proof of Claim Deadline Slated for March 6
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Alliance AS insolvent on Dec. 10, 2008.

Creditors have until March 6, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Timiryazev Str. 61-2
         Almaty
         Kazakhstan
         Tel: 8 (7272) 75-67-84


BATYS INVEST B: Creditors Must File Claims by March 6
-----------------------------------------------------
LLP Batys Invest B has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim to:

         LLP Batys Invest B
         Eset-Batyr Str. 103-93
         Aktobe
         Aktube
         Kazakhstan


INSERVICE STROY: Claims Filing Period Ends March 6
--------------------------------------------------
LLP Construction Company Inservice Stroy has declared insolvency.
Creditors have until March 6, 2009, to submit written proofs of
claim to:

         LLP Construction Company Inservice Stroy
         Burundaiskaya Str. 61-1
         Turksibsky
         Almaty
         Kazakhstan


MEGA PRODUCTS: Creditors' Proof of Claims Due on March 6
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Mega Products insolvent on Dec. 15, 2008.

Creditors have until March 6, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Office 508
         Maulenov Str. 92
         Almaty
         Kazakhstan
         Tel: 8 (7272) 67-63-55
              8 777 803 44-33


MORGAN STENLI: Claims Registration Ends March 6
-----------------------------------------------
LLP Morgan Stenli Kazakhstan has declared insolvency.  Creditors
have until March 6, 2009, to submit written proofs of claim to:

         LLP Morgan Stenli Kazakhstan
         Kairbekov Str. 38
         Medeusky
         Almaty
         Kazakhstan
         Tel: 8 (7272) 34-06-57
              8 (7272) 34-06-58


NEKSUS LLP: Proof of Claim Deadline Slated for March 6
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Neksus insolvent.

Creditors have until March 6, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov Str. 70
         Kostanai
         Kazakhstan


PODSHIPNIK LLP: Creditors Must File Claims by March 6
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Auto Prom Podshipnik insolvent.

Creditors have until March 6, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Peschanaya Str. 3
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan


SAS KAZ TRADING: Claims Filing Period Ends March 6
--------------------------------------------------
LLP Sas Kaz Trading Ltd. has declared insolvency.  Creditors have
until March 6, 2009, to submit written proofs of claim to:

         LLP Sas Kaz Trading Ltd.
         Micro District Samal, 4-4
         Saryarka
         Astana
         Kazakhstan


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


TRUB SERVICE: Creditors Must File Claims by Feb. 24
---------------------------------------------------
LLC Prom Trub Service has declared insolvency.  Creditors have
until Feb. 24, 2009, to submit written proofs of claim to:

         LLC Prom Trub Service
         Isanov Str. 198
         Bishkek
         Kyrgyzstan


=================
L I T H U A N I A
=================


FLYLAL: Lithuanian Ministry Seeks Probe Into Bankruptcy
----------------------------------------------- -------
AFP reports that the Lithuania's transport ministry has asked the
national prosecutor's office to probe into the collapse of
Lithuanian airline FlyLAL.

According to AFP, the ministry believes intentional mismanagement
drove the airline into bankruptcy.

In a statement, the ministry, as cited by AFP, said that it had
grounds to suspect that the carrier's leadership had knowingly
mismanaged the formerly state-owned company in order to send it
bankrupt.

However, transport minister spokeswoman Irina Sklepovic, declined
to say why the authorities' suspicions had been aroused, or why it
could have been in the interests of FlyLAL's management to send
the airline to the wall, AFP notes.

On Jan. 26, 2009, the TCR-Europe reported that according to
Reuters, FlyLAL, which was privatized in 2005, grounded its
flights last weekend after failing to find an investor, Reuters
recounted.

"Being unable to continue flights and without seeing any real
chances to renew operations, we were forced to file for
bankruptcy," CEO Vytautas Kaikaris said in a statement obtained by
Reuters.

Reuters disclosed that according to Mr. Kaikaris, the airline's
financial situation "worsened significantly at the end of 2008 and
beginning of 2009 and there were no possibilities to improve it
without additional investments".

Reuters recalled the Lithuanian government rejected a proposal to
buy the airline back for a symbolic LTL1 and cover its debts,
which stood at LTL89 million (US$33.41 million) at the end of
2008.

Citing Vilnius airport spokesman Arunas Marcinkevicius, Reuters
said the airport is currently in talks with six airlines to fill
the gap left by the former national carrier.

On Jan. 21, 2009, the TCR-Europe reported that according to
Reuters, flyLAL's rescue deal with Swiss Capital Holding failed to
materialize.

Citing airline officials, The Associated Press stated the Swiss
company failed to pay US$1 million (EUR756,000) that would have
cleared the airline's debts and potentially saved it from
bankruptcy.

flyLAL, which employs 360 people, ceased its operations from
January 17, 2009.


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


ERICK VAN EGERAAT: Goes Into Receivership; 150 Jobs at Risk
-----------------------------------------------------------
Liz Bury at Building Design reports that Erick van Egeraat's
Rotterdam-based architecture firm Erick van Egeraat Associates has
gone into receivership, putting 150 jobs at risk.

The report relates law firm De Bok Roijers Gasseling was appointed
by the Dutch courts after Mr. van Egeraat himself declared the
practice insolvent.

The firm, the report recounts, called in the receivers after a
number of major projects were put on hold due to the credit
crunch.

According to the report, the sudden cancellation of work caused a
cashflow crisis at the firm.

The firm, which also has offices in London, Budapest, Moscow and
Prague, has about 50 projects on its books, the report states.

"We are still investigating the possibility to continue some
projects they are involved in, or to find a suitable partner to
take over.  We would sell it to them under the condition that they
will finalize the building or design [of the firm's projects].  No
decisions have been made," Raymond De Bok from law firm De Bok
Roijers Gasseling was quoted by the report as saying.

Dan Stewart at building.co.uk recalls the firm had previously gone
into voluntary insolvency in 2005, blaming the British planning
system.


LYONDELLBASELL INDUSTRIES: Chapter 11 Prompts S&P's 'D' Rating
--------------------------------------------------------------
In a report published, Standard & Poor's Ratings Services
addresses frequently asked questions regarding recovery
expectations for LyondellBasell creditors.

On Jan. 7, 2009, S&P lowered its long-term corporate credit rating
on the three main U.S. subsidiaries of European holding company
LyondellBasell Industries AF S.C.A. (LyondellBasell) -- namely
Lyondell Chemical Co., Equistar Chemicals L.P., and Millennium
Chemicals Inc. -- to 'D' from 'CC'.  This action followed the
voluntary filings for Chapter 11 bankruptcy protection by these
entities, along with other U.S. subsidiaries of LyondellBasell and
a related German holding company on Jan. 6, 2009.

The long-term rating on LyondellBasell, meanwhile, remains at
'SD', indicating a selective default.  This is because
LyondellBasell and its European subsidiaries (other than the
German holding company previously referenced) are not currently in
insolvency proceedings.  Further, S&P understand that the company
is current on its payments on its senior secured bank debt, as
well as on its bonds due 2015 and its bonds due 2027 (the European
bonds).

In response to the many questions that have been raised by market
participants regarding this rating action, S&P has prepared an FAQ
article to clarify S&P's view of the effects of the debtor-in-
possession financing package on the group's recovery ratings.  The
article should be read in conjunction with S&P's publication
discussing the rating actions taken by Standard & Poor's on
Jan. 7, 2009.


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


EKO-STROY CJSC: Creditors Must File Claims by February 16
---------------------------------------------------------
Creditors of CJSC Eko-Stroy (TIN 5916015893, RVC 591601001, PSRN
1055905529393) (Construction) have until Feb. 16, 2009, to submit
proofs of claims to:

         S. Permyakov
         Temporary Insolvency Manager
         Post User Box 9755
         614112 Perm-112
         Russia

The Arbitration Court of Perm will convene on April 24, 2009, to
hear bankruptcy supervision procedure.  The case is docketed under
Case No. A5018075/2008-B7.

The Debtor can be reached at:

         CJSC Eko-Stroy
         Vostochnaya Str.55a
         Nytva
         617000 Permskiy
         Russia


KAPITAL-STROY LLC: Creditors Must File Claims by March 16
----------------------------------------------------------------
Creditors of LLC Kapital-Stroy (TIN 6168006081)(Construction) have
until March 16, 2009, to submit proofs of claims to:

         S. Shatalov
         Insolvency Manager
         Office 419
         Menzhinskogo Str. 2L
         344029 Rostov-on-Don
         Russia

The Arbitration Court of Rostovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A53-11854/2008-S1-8.

The Debtor can be reached at:

         LLC Kapital-Stroy
         Profsoyuznaya Str. 134
         Rostov-on-Don
         Russia


KARBO-KHIM OJSC: Nizhegorodskaya Bankruptcy Hearing Set April 14
----------------------------------------------------------------
The Arbitration Court of Nizhegorodskaya will convene at
3:30 a.m. on April 14, 2009, to hear bankruptcy supervision
procedure on OJSC Karbo-Khim (Wood Charcoal).  The case is
docketed under Case No. A43-29797/2008.

The Temporary Insolvency Manager is:

         O. Shelyakin
         Post User Box 6854
         614068 Perm
         Russia
         Tel: 342-236-84-92

The Court is located at:

         The Arbitration Court of Nizhegorodskaya
         Building 9
         Kremlin
         Nizhny Novgorod
         Russia

The Debtor can be reached at:

         OJSC Karbo-Khim
         Lenina Str. 24
         Syava
         Shakhunskogo
         606903 Nizhegorodskaya
         Russia


KARELSKIY SURIMI: Creditors Must File Claims by March 16
--------------------------------------------------------
Creditors of LLC Karelskiy Surimi Plant (Food Industry) (TIN
7801379680) have until March 16, 2009, to submit proofs of claims
to:

         V. Yegorenkov
         Insolvency Manager
         Post User Box 49
         Sedova Str. 23
         192148 Saint-Petersburg
         Russia
         Tel/Fax: 32844-81

The Arbitration Court of Saint-Petersburg commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A5611753/2008.

The Debtor can be reached at:

         LLC Karelskiy Surimi Plant
         Room 9N
         Birzhevaya Liniya Str. 16a
         199034 Saint-Petersburg
         Russia


NOVYY DOM CJSC: Creditors Must File Claims by February 16
---------------------------------------------------------
Creditors of CJSC Novyy Dom (TIN 7224017035) (Construction) have
until Feb. 16, 2009, to submit proofs of claims to:

         D. Seleznev
         Temporary Insolvency Manager
         Post User box 33
         620041 Yekaterinburg
         Russia

The Arbitration Court of Tumen will convene at 10:15 a.m. on
March 31, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. A70-7605/3-2008.

The Debtor can be reached at:

         CJSC Novyy Dom
         Sakko Str. 43
         Tumen
         Russia


PENOIZOL LLC: Creditors Must File Claims by February 16
-------------------------------------------------------
Creditors of LLC Penoizol (Heat- and Sound-Insulating Materials
and Items Production) have until Feb. 16, 2009, to submit proofs
of claims to:

         V. Kevarkov
         Insolvency Manager
         Apt. 15
         Generalskaya Str. 12
         620062 Yekaterinburg
         Russia

The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A76-7442/2008-55-121.

The Debtor can be reached at:

         LLC Penoizol
         Postysheva Str. 2
         454091 Chelyabinsk
         Russia


RYAZANSKIY MACHINE: Creditors Must File Claims by March 16
----------------------------------------------------------
Creditors of OJSC Ryazanskiy Machine Tool Plant have until
March 16, 2009, to submit proofs of claims to:

         A. Khromov
         Insolvency Manager
         Barnaulskaya Str. 34
         410049 Saratov
         Russia

The Arbitration Court of Ryazanskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A541392/2008.

The Debtor can be reached at:

         OJSC Ryazanskiy Machine Tool Plant
         Stankozavodskaya Str. 7
         390042 Ryazan
         Russia


SITRONICS JSC: Fitch Assigns 'B-' Senior Unsecured Rating
---------------------------------------------------------
Fitch Ratings has assigned Concern Sitronics JSC's domestic bond
issue, totaling RUB3 billion and with headline maturity of three
years, a senior unsecured foreign currency rating of 'B-'.
Sitronics is currently rated Long-term Issuer Default 'B-' (B
minus) with a Negative Outlook.

The bond constitutes senior unsecured obligations of Sitronics.
The bond prospectus does not contain any financial or other
covenants.  Bondholders have an option to put the bond 18 months
after the September 2007 placement date, which reduces the
effective maturity of this bond to one-and-a-half years (March
2009).

Sitronics' ratings continue to be underpinned by its leading
position and established franchise within the Russian micro-
electronics business.  Following a disappointing performance
during 2007, 2008 year-to-date results provided evidence of a
rebound.  The recently announced 50% slash of the 2009 capex
budget and cost cutting initiatives should support cash flow
generation.  Furthermore Sitronics's status as a material
subsidiary of Sistema Joint Stock Financial Corp.'s ('BB-' (BB
minus)/Negative) is viewed positively provided that the parent
will step in to offer financial assistance in case of need.

The Negative Outlook reflects Sitronics' weakened credit profile
and increased refinancing risk.  Fitch notes that in December 2008
Sitronics secured a US$230 million one-year credit facility with
State Corporation "Bank for Development and Foreign Economic
Affairs" (Vnesheconombank) as part of the Russian state program
aimed at supporting strategically important assets.  Proceeds will
be used to refinance loan facilities totaling US$200 million
provided by Dresdner Bank AG, and other short-term borrowings.
While the recent refinancing provided some respite from the
sizable maturities falling in 4Q08-1Q09, Fitch will continue to
closely monitor the company's efforts to secure external funding
in the challenging capital markets environment.

Sitronics is a leading provider of telecommunication solutions,
including software, equipment and systems integration, IT
solutions and microelectronic solutions in Russia and the
Commonwealth of Independent States.  It has a strong presence in
Central and Eastern Europe and a growing presence in the Middle
East and Africa.


URAL-STROY-MEKHANIZATSIA: Creditors Must File Claims by Feb. 16
---------------------------------------------------------------
Creditors of LLC Ural-Stroy-Mekhanizatsiya Engineer-Constructor
have until Feb. 16, 2009, to submit proofs of claims to:

         M. Yakovlev
         Temporary Insolvency Manager
         G.Zvezda Str. 13
         614045 Perm
         Russia

The Arbitration Court of Perm will convene at 10:00 a.m. on
April 22, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. A5018133/2008-B6.

The Debtor can be reached at:

         LLC Ural-Stroy-Mekhanizatsiya
         Novosadovaya Str. 7
         618404 Berezniki
         Russia


UYSKIY MEAT: Creditors Must File Claims by March 16
---------------------------------------------------
Creditors of LLC Uyskiy Meat Works (TIN 7420011061, PSRN
1067420016487) have until March 16, 2009, to submit proofs of
claims to:

         A. Lavrov
         Insolvency Manager
         Post User Box 406
         Zlatoust
         456219 Chelyabinskaya
         Russia

The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A76-6528/08-52-70.

The Debtor can be reached at:

         LLC Uyskiy Meat Works
         Oktyabrskaya Str. 1
         Uyskoe
         456470 Chelyabinskaya
         Russia


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


CALANIT LLC: Creditors Must File Proofs of Claim by February 5
--------------------------------------------------------------
Creditors owed money by LLC Calanit are requested to file their
proofs of claim by Feb. 5, 2009, to:

         Dr. Martin L. Muller
         Liquidator, Advocacy Pestalozzi Rechtsanwalte
         Lowenstrasse 1
         8001 Zurich
         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.


EASTERN GATE: Deadline to File Proofs of Claim Set February 4
--------------------------------------------------------------
Creditors owed money by JSC Eastern Gate Finance are requested to
file their proofs of claim by Feb. 4, 2009, to:

         Blegistrasse 5
         6340 Baar
         Switzerland

The company is currently undergoing liquidation in Baar.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 4, 2008.


FUHRUNG AND ABSATZ: Creditors Have Until Feb. 5 to File Claims
--------------------------------------------------------------
Creditors owed money by JSC Fuhrung und Absatz are requested to
file their proofs of claim by Feb. 5, 2009, to:

         Verena Kunz
         Liquidator
         Foehrenweg 9
         6343 Rotkreuz
         Switzerland

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


PISTAG VERWALTUNG: Proof of Claim Filing Deadline Set Jan. 31
---------------------- --------------------------------------
Creditors owed money by JSC Pistag Verwaltung are requested to
file their proofs of claim by Jan. 31, 2009, to:

         LLC Kolb Treuhand
         Dorfstrasse 12
         8505 Dettighofen
         Switzerland

The company is currently undergoing liquidation in Wittenbach.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 16, 2008.


RENTRAP JSC: Creditors' Proofs of Claim Due by January 31
---------------------------------------------------------
Creditors owed money by JSC Rentrap are requested to file their
proofs of claim by Jan. 31, 2009, to:

         JSC Interconsulta
         Nordstrasse 190
         8037 Zurich
         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.


SIDUS CAPITAL: February 5 Set as Deadline to File Claims
--------------------------------------------------------
Creditors owed money by JSC Sidus Capital are requested to file
their proofs of claim by Feb. 5, 2009, to:

         Matthias Trinler
         Liquidator, T-Rex Trinler Consulting
         Bosch 41
         6331 Hunenberg
         Switzerland

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


SIMPLE SOLUTIONS: Creditors Must File Proofs of Claim by Feb. 5
---------------------------------------------------------------
Creditors owed money by LLC Simple Solutions are requested to file
their proofs of claim by Feb. 5, 2009, to:

         Jost Wafler
         Kanalweg 11
         3380 Wangen an der Aare
         Switzerland

The company is currently undergoing liquidation in Biel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 5, 2008.


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


ATLANT-SERVICE-GROUP: Creditors Must File Claims by February 7
--------------------------------------------------------------
Creditors of LLC Atlant-Service-Group (EDRPOU 35379944) have until
Feb. 7, 2009, to submit proofs of claim to:

         LLC Bionis Advertising
         Liquidator
         Melnikov Str. 12
         04050 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 29, 2008.
The case is docketed as 15/81-b.

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

The Debtor can be reached at:

         LLC Atlant-Service-Group
         Apt. 1
         40 years of October Avenue, 120
         Kiev
         Ukraine


AUTO FOB: Creditors Must File Claims by February 7
--------------------------------------------------
Creditors of LLC Auto FOB Holding (EDRPOU 33632103) have until
Feb. 7, 2009, to submit proofs of claim to:

         Mr. V. Shevchenko
         Liquidator
         Apt. 199
         Kniazhy Zaton Str. 12
         02095 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 25, 2008.
The case is docketed as 44/469-b.

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

The Debtor can be reached at:

         LLC Auto FOB Holding
         Geophysicists lane, 12
         02068 Kiev
         Ukraine


BPK LLC: Creditors Must File Claims by February 7
-------------------------------------------------
Creditors of LLC Trading Company BPK (EDRPOU 35531623) have until
Feb. 7, 2009, to submit proofs of claim to:

         Mr. Alexander Ocheretiany
         Liquidator
         Apt. 7/4
         Stalsky Str. 26
         02139 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 29, 2008.
The case is docketed as 15/80-b.

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

The Debtor can be reached at:

         LLC Trading Company BPK
         Vanda Vasilevskaya Str. 18
         04116 Kiev
         Ukraine


KREDITPROMBANK: Fitch Downgrades Issuer Default Rating to 'CCC'
---------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
of four Ukrainian banks: Kreditprombank, Ukrgasbank and
Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and
Rodovid Bank to 'CC' from 'CCC'.  The agency has also downgraded
the National Long-term rating of Bank Diamant and the Individual
rating of Swedbank (Ukraine).  At the same time, the ratings of
seven other Ukrainian banks - Privatbank, First Ukrainian
International Bank, Bank Credit Dnepr, Bank Khreschatyk,
Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed.  The
Outlooks on the Long-term IDRs (where assigned) of all of the
above mentioned banks are Negative.

The rating actions follow a review of all 11 private,
domestically-owned Ukrainian banks, as well as two foreign-owned
institutions: Swedbank (Ukraine) and Bank Forum.  The downgrades
reflect the heightened liquidity and asset quality risks and
greater pressure on capital which Ukrainian banks have faced as a
result of the sharp depreciation of the UAH in Q408, as well as
the weaker outlook for the Ukrainian economy.

In Fitch's view, the downgraded banks are most exposed to these
risks in light of the growth-focused strategies pursued in recent
years and the deterioration already evident in asset quality,
capital and/or liquidity metrics at those institutions.  The
affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi
take into account those banks' niche regional franchises and
generally somewhat stronger (although still potentially
vulnerable) capital positions, while the affirmations of
Privatbank and FUIB reflect those institutions' greater franchise
strength, more significant loss absorption capacity and better-
than-average (for the Ukrainian market) risk management.  At the
same time, the Negative Outlooks on the ratings of all of the
domestically-owned banks reflect the potential for further
downgrades, including of banks which have been affirmed, as the
tough operating environment continues to negatively impact banks'
asset quality, capital and liquidity.

Fitch will publish separate commentaries on each of the banks
mentioned in this announcement.  In addition, Fitch will in the
near future review the ratings of Ukrainian state-owned banks and
foreign-owned banks not covered in this announcement, focusing in
particular on their Individual ratings.

Rating actions:

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

First Ukrainian International Bank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'A(ukr)'; Outlook
     Negative

Bank Credit Dnepr

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

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Industrialbank

  -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'

Pivdennyi Bank

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

  -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B
     minus), Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

Kreditprombank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

OJSC Ukrgasbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

Vseukrainsky Aksionerny Bank (VAB)

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Senior unsecured debt: downgraded to 'CCC' from 'B-',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus
     (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative

Rodovid Bank

  -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch
     Negative removed; Negative Outlook assigned

  -- Short-term IDR: affirmed at 'C'; Rating Watch Negative
     removed

  -- Individual rating: affirmed at 'E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'B'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Rating Watch Negative removed;
     Negative Outlook assigned

Bank Diamant

  -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Outlook Negative

Bank Forum

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B+',
     Recovery Rating affirmed at 'RR4'

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook
     Stable

OJSC Swedbank (Ukraine)

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook
     Stable


RADAMANT GROUP: Creditors Must File Claims by February 7
--------------------------------------------------------
Creditors of LLC Radamant Group (EDRPOU 35644524) have until
Feb. 7, 2009, to submit proofs of claim to:

         LLC Ukrainian Building Reserve-O
         Liquidator
         Artem Str. 37-41
         04053 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 29, 2008.
The case is docketed as 15/82-b.

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

The Debtor can be reached at:

         LLC Radamant Group
         Apt. 1
         Burmistenko Str. 11
         03040 Kiev
         Ukraine


RODOVID BANK: Fitch Cuts Issuer Default Rating to 'CC' from 'CCC'
-----------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
of four Ukrainian banks: Kreditprombank, Ukrgasbank and
Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and
Rodovid Bank to 'CC' from 'CCC'.  The agency has also downgraded
the National Long-term rating of Bank Diamant and the Individual
rating of Swedbank (Ukraine).  At the same time, the ratings of
seven other Ukrainian banks - Privatbank, First Ukrainian
International Bank, Bank Credit Dnepr, Bank Khreschatyk,
Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed.  The
Outlooks on the Long-term IDRs (where assigned) of all of the
above mentioned banks are Negative.

The rating actions follow a review of all 11 private,
domestically-owned Ukrainian banks, as well as two foreign-owned
institutions: Swedbank (Ukraine) and Bank Forum.  The downgrades
reflect the heightened liquidity and asset quality risks and
greater pressure on capital which Ukrainian banks have faced as a
result of the sharp depreciation of the UAH in Q408, as well as
the weaker outlook for the Ukrainian economy.

In Fitch's view, the downgraded banks are most exposed to these
risks in light of the growth-focused strategies pursued in recent
years and the deterioration already evident in asset quality,
capital and/or liquidity metrics at those institutions.  The
affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi
take into account those banks' niche regional franchises and
generally somewhat stronger (although still potentially
vulnerable) capital positions, while the affirmations of
Privatbank and FUIB reflect those institutions' greater franchise
strength, more significant loss absorption capacity and better-
than-average (for the Ukrainian market) risk management.  At the
same time, the Negative Outlooks on the ratings of all of the
domestically-owned banks reflect the potential for further
downgrades, including of banks which have been affirmed, as the
tough operating environment continues to negatively impact banks'
asset quality, capital and liquidity.

Fitch will publish separate commentaries on each of the banks
mentioned in this announcement.  In addition, Fitch will in the
near future review the ratings of Ukrainian state-owned banks and
foreign-owned banks not covered in this announcement, focusing in
particular on their Individual ratings.

Rating actions:

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

First Ukrainian International Bank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'A(ukr)'; Outlook
     Negative

Bank Credit Dnepr

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

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Industrialbank

  -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'

Pivdennyi Bank

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

  -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B
     minus), Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

Kreditprombank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

OJSC Ukrgasbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

Vseukrainsky Aksionerny Bank (VAB)

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Senior unsecured debt: downgraded to 'CCC' from 'B-',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus
     (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative

Rodovid Bank

  -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch
     Negative removed; Negative Outlook assigned

  -- Short-term IDR: affirmed at 'C'; Rating Watch Negative
     removed

  -- Individual rating: affirmed at 'E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'B'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Rating Watch Negative removed;
     Negative Outlook assigned

Bank Diamant

  -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Outlook Negative

Bank Forum

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B+',
     Recovery Rating affirmed at 'RR4'

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook
     Stable

OJSC Swedbank (Ukraine)

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook
     Stable


SLOBOZHANSCHINA AGRICULTURAL: Claims Deadline Set February 7
------------------------------------------------------------
Creditors of LLC Slobozhanschina Agricultural Investment Company
(EDRPOU 33389840) have until Feb. 7, 2009, to submit proofs of
claim to:

         Mr. Petro Korobko
         Temporary Insolvency Manager
         Office 301
         20 years of Victory Str. 7
         40021 Sumy
         Ukraine
         Tel: 8(0542)783830

The Arbitration Court of Sumy commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 1, 2008.
The case is docketed as 6/239-08.

         The Economic Court of Sumy
         Shevchenko Avenue 18/1
         40030 Sumy
         Ukraine

The Debtor can be reached at:

         LLC Slobozhanschina Agricultural Investment Company
         Newspaper Pravda Str. 19/106
         40011 Sumy
         Ukraine


TMTMET LLC: Creditors Must File Claims by February 7
----------------------------------------------------
Creditors of LLC TMTMET (EDRPOU 33631487) have until Feb. 7, 2009,
to submit proofs of claim to:

         Mr. V. Shevchenko
         Liquidator
         Apt. 199
         Kniazhy Zaton Str. 12
         02095 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 25, 2008.
The case is docketed as 44/470-b.

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

The Debtor can be reached at:

         LLC TMTMET
         A. Akhmatova Str. 13A
         01033 Kiev
         Ukraine


UKRGASBANK: Fitch Downgrades Issuer Default Rating to 'CCC'
-----------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
of four Ukrainian banks: Kreditprombank, Ukrgasbank and
Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and
Rodovid Bank to 'CC' from 'CCC'.  The agency has also downgraded
the National Long-term rating of Bank Diamant and the Individual
rating of Swedbank (Ukraine).  At the same time, the ratings of
seven other Ukrainian banks - Privatbank, First Ukrainian
International Bank, Bank Credit Dnepr, Bank Khreschatyk,
Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed.  The
Outlooks on the Long-term IDRs (where assigned) of all of the
above mentioned banks are Negative.

The rating actions follow a review of all 11 private,
domestically-owned Ukrainian banks, as well as two foreign-owned
institutions: Swedbank (Ukraine) and Bank Forum.  The downgrades
reflect the heightened liquidity and asset quality risks and
greater pressure on capital which Ukrainian banks have faced as a
result of the sharp depreciation of the UAH in Q408, as well as
the weaker outlook for the Ukrainian economy.

In Fitch's view, the downgraded banks are most exposed to these
risks in light of the growth-focused strategies pursued in recent
years and the deterioration already evident in asset quality,
capital and/or liquidity metrics at those institutions.  The
affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi
take into account those banks' niche regional franchises and
generally somewhat stronger (although still potentially
vulnerable) capital positions, while the affirmations of
Privatbank and FUIB reflect those institutions' greater franchise
strength, more significant loss absorption capacity and better-
than-average (for the Ukrainian market) risk management.  At the
same time, the Negative Outlooks on the ratings of all of the
domestically-owned banks reflect the potential for further
downgrades, including of banks which have been affirmed, as the
tough operating environment continues to negatively impact banks'
asset quality, capital and liquidity.

Fitch will publish separate commentaries on each of the banks
mentioned in this announcement.  In addition, Fitch will in the
near future review the ratings of Ukrainian state-owned banks and
foreign-owned banks not covered in this announcement, focusing in
particular on their Individual ratings.

Rating actions:

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

First Ukrainian International Bank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'A(ukr)'; Outlook
     Negative

Bank Credit Dnepr

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

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Industrialbank

  -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'

Pivdennyi Bank

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

  -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B
     minus), Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

Kreditprombank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

OJSC Ukrgasbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

Vseukrainsky Aksionerny Bank (VAB)

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Senior unsecured debt: downgraded to 'CCC' from 'B-',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus
     (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative

Rodovid Bank

  -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch
     Negative removed; Negative Outlook assigned

  -- Short-term IDR: affirmed at 'C'; Rating Watch Negative
     removed

  -- Individual rating: affirmed at 'E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'B'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Rating Watch Negative removed;
     Negative Outlook assigned

Bank Diamant

  -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Outlook Negative

Bank Forum

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B+',
     Recovery Rating affirmed at 'RR4'

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook
     Stable

OJSC Swedbank (Ukraine)

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook
     Stable


VSEUKRAINSKY AKSIONERNY: Fitch Cuts Issuer Default Rating to 'CCC'
------------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
of four Ukrainian banks: Kreditprombank, Ukrgasbank and
Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and
Rodovid Bank to 'CC' from 'CCC'.  The agency has also downgraded
the National Long-term rating of Bank Diamant and the Individual
rating of Swedbank (Ukraine).  At the same time, the ratings of
seven other Ukrainian banks - Privatbank, First Ukrainian
International Bank, Bank Credit Dnepr, Bank Khreschatyk,
Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed.  The
Outlooks on the Long-term IDRs (where assigned) of all of the
above mentioned banks are Negative.

The rating actions follow a review of all 11 private,
domestically-owned Ukrainian banks, as well as two foreign-owned
institutions: Swedbank (Ukraine) and Bank Forum.  The downgrades
reflect the heightened liquidity and asset quality risks and
greater pressure on capital which Ukrainian banks have faced as a
result of the sharp depreciation of the UAH in Q408, as well as
the weaker outlook for the Ukrainian economy.

In Fitch's view, the downgraded banks are most exposed to these
risks in light of the growth-focused strategies pursued in recent
years and the deterioration already evident in asset quality,
capital and/or liquidity metrics at those institutions.  The
affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi
take into account those banks' niche regional franchises and
generally somewhat stronger (although still potentially
vulnerable) capital positions, while the affirmations of
Privatbank and FUIB reflect those institutions' greater franchise
strength, more significant loss absorption capacity and better-
than-average (for the Ukrainian market) risk management.  At the
same time, the Negative Outlooks on the ratings of all of the
domestically-owned banks reflect the potential for further
downgrades, including of banks which have been affirmed, as the
tough operating environment continues to negatively impact banks'
asset quality, capital and liquidity.

Fitch will publish separate commentaries on each of the banks
mentioned in this announcement.  In addition, Fitch will in the
near future review the ratings of Ukrainian state-owned banks and
foreign-owned banks not covered in this announcement, focusing in
particular on their Individual ratings.

Rating actions:

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

First Ukrainian International Bank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'A(ukr)'; Outlook
     Negative

Bank Credit Dnepr

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

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-' (B minus);
     Outlook Negative

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus
     (ukr)); Outlook Negative

Industrialbank

  -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'

Pivdennyi Bank

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

  -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B
     minus), Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '5'

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

Kreditprombank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

OJSC Ukrgasbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB-
     (ukr)' (BBB minus (ukr)); Outlook Negative

Vseukrainsky Aksionerny Bank (VAB)

  -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus);
     Outlook Negative

  -- Senior unsecured debt: downgraded to 'CCC' from 'B-',
     Recovery Rating affirmed at 'RR4'

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus
     (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative

Rodovid Bank

  -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch
     Negative removed; Negative Outlook assigned

  -- Short-term IDR: affirmed at 'C'; Rating Watch Negative
     removed

  -- Individual rating: affirmed at 'E'

  -- Support rating: affirmed at '5'

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

  -- National Long-term rating: downgraded to 'B'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Rating Watch Negative removed;
     Negative Outlook assigned

Bank Diamant

  -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB-
     (ukr)' (BB minus (ukr)); Outlook Negative

Bank Forum

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B+',
     Recovery Rating affirmed at 'RR4'

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook
     Stable

OJSC Swedbank (Ukraine)

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     Negative

  -- Long-term local currency IDR: affirmed at 'BB-' (BB minus);
     Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '4'

  -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook
     Stable


* UKRAINE: State Debt Increased in the Past Two Months
------------------------------------------------------
Ukraine's total state debt increased in November and December last
year, Bloomberg News reports citing the country's Finance
Ministry.

In a statement, the report relates the Ukraine Finance Ministry
said total state debt increased in November by 33 percent to
US$22.1 billion from US$16.6 billion the previous month.  In
December, the total debt increased by 9 percent to US$24.1 billion
from November, according to the Ministry's statement.

Ukraine's total state debt in 2008 increased by 37 percent to
US$24.1 billion from US$17.6 billion in 2007, the statement cited
by Bloomberg News said.

According to Bloomberg News, the government initially targeted a
budget deficit of UAH18.8 billion (US$2.34 billion) or about 2
percent of gross domestic product in 2008.  It later cut the gap
below 1 percent of gross domestic product, meeting an agreement
with the International Monetary Fund which approved a US$16.4
billion loan to Ukraine to help stabilize the economy, the report
adds.


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


ALBA 2007-1: S&P Downgrades Rating on Class E Notes to 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
notes issued by ALBA 2007-1 PLC.

Specifically, the ratings on:

   -- The class B, C, D, and E notes were lowered and kept on
      CreditWatch negative;

   -- The class A2 and A3 notes were affirmed and kept on
     CreditWatch negative;

   -- The class A1a and A1b notes were affirmed and removed from
     CreditWatch negative; and

   -- The rating on the MERCs was affirmed.

On Oct. 10, 2008, S&P placed all the notes in this transaction on
CreditWatch negative.  These CreditWatch placements were due to
the loss of the liquidity facility after the renewal notice was
not delivered under the terms of the liquidity facility agreement
and the liquidity facility expired on or about June 17, 2008.

Today's downgrades of the class B, C, D, and E notes follow
deteriorating collateral performance and the expectation of
increasing losses.  The fall in U.K. house prices and the effect
of depressed sale prices on repossessions has led to significantly
increased losses and loss severities.

The reserve fund is currently 64.48% of its required amount after
three consecutive reserve fund draws.  Cumulative losses increased
to 0.57% in December 2008 from 0.22% in September.  The current
loss severity is 34.08% and S&P expects this to increase in 2009,
causing further reserve fund draws.

S&P has affirmed the ratings on the class A1a and A1b notes
because they no longer rely on the liquidity facility in order to
pass S&P's 'AAA' stress scenario.  At the same time, ratings on
all other classes remain on CreditWatch negative due to the
continuing absence of a liquidity facility.  S&P understand that
the issuer is currently in negotiations to find a replacement
liquidity facility provider.

                           Ratings List

                         ALBA 2007 - 1 PLC
          GBP841 Million and EUR190 Million Mortgage-Backed
                       Floating-Rate Notes

        Ratings Lowered and Kept on CreditWatch Negative

                             Rating
                             ------
         Class      To                    From
         -----      --                    ----
         B          AA/Watch Neg          AAA/Watch Neg
         C          A/Watch Neg           AA/Watch Neg
         D          BBB/Watch Neg         A/Watch Neg
         E          BB/Watch Neg          BBB/Watch Neg

         Ratings Affirmed and Kept on CreditWatch Negative

                    Class      Rating
                    -----      ------
                    A2         AAA/Watch Neg
                    A3         AAA/Watch Neg

      Ratings Affirmed and Removed from CreditWatch Negative

                             Rating
                             ------
         Class      To                    From
         -----      --                    ----
         A1a        AAA                   AAA/Watch Neg
         A1b        AAA                   AAA/Watch Neg

                         Rating Affirmed

                        Class      Rating
                        -----      ------
                        MERCs      AAA


ARGON CAPITAL: S&P Corrects Ratings on Preference Shares
--------------------------------------------------------
Standard & Poor's Ratings Services corrected errors relating to
two pass-through securities linked to preference shares of Lloyds
Banking Group PLC (LBG; A+/Negative/A-1) and The Royal Bank of
Scotland Group PLC (RBSG; A/Stable/A-1), respectively.  The
issuers of the securities are Saphir Finance PLC in the case of
the LBG-related issue, and Argon Capital PLC in the case of the
RBSG-related issue.

The ratings on the underlying LBG and RBSG preference shares were
lowered on Jan. 14, 2009, and Jan. 19, 2009, respectively, in line
with the ratings on their other junior subordinated issues.
However, due to administrative errors, the ratings on the Saphir
and Argon pass-through securities were not lowered on these dates.
S&P has now corrected these errors by lowering the rating on the
Saphir securities linked to LBG preference shares to 'A-' from
'A', and by lowering the rating on the Argon securities linked to
RBSG preference shares to 'BB' from 'BBB+'.  The 'BB' rating on
the Argon securities is placed on CreditWatch with negative
implications.  The corrected ratings are in line with LBG's and
RBSG's other junior subordinated issues.

                           Ratings List

                        Saphir Finance PLC
         GBP600 million fixed/floating rate noncumulative
          perpetual callable nonstep-up debt securities*

                       To              From
                       --              ----
                       A-              A

                        Argon Capital PLC
      GBP750 million 8.162% callable noncumulative perpetual
                         preference stock

                       To              From
                       --              ----
                       BB/Watch Neg    BBB+

         * Support provided by Lloyds Banking Group PLC.
   * Support provided by The Royal Bank of Scotland Group PLC.


BARRATTS SHOES: Goes Into Administration; Deloitte Appointed
-------------------------------------------------------------
Daniel Butters, Neville Kahn, and Lee Manning of Deloitte LLP, the
business advisory firm, have been appointed Joint Administrators
of Barratts Shoes and Priceless Shoes, the trading subsidiaries of
Stylo plc, the high street shoe retailer.

The statutory entities in Administration are:

   -- Stylo Barratt Shoes Limited,
   -- Stylo Barratt Properties Limited,
   -- Priceless Shoes Properties Limited,
   -- Barratts Shoes Properties Limited, and
   -- Comfort Shoes Limited.

Stylo plc, the listed parent is not in Administration.  The
Administrators are seeking agreement from creditors to place the
companies into a Company Voluntary Arrangement (CVA).  The stores
remain open and continue to trade.

Stylo -- http://www.stylo.co.uk/-- operates 400 high street shoe
stores in the UK under the Barratts and Priceless brands,
employing 5,450 staff in total.  It also has a headquarters in
Bradford, Yorkshire.

Daniel Butters, Deloitte Partner and Joint Administrator,
commented: "Stylo has faced a downturn in trading as a result of
the current difficult economic and market conditions. We have been
appointed as Administrators to Barratt and Priceless while we
contact all creditors with a proposal to rescue the companies via
a series of CVAs.  Under the CVAs, we will be asking creditors and
landlords to contractually vary their terms of trade in order to
give Barratts and Priceless the necessary breathing space to allow
them to deliver value for all stakeholders in the future.  We are
seeking to enable the rescue of Barratts and Priceless, while
giving creditors and landlords certainty over their own positions.
Ultimately, we are giving creditors and landlords a chance to vote
on the future of the companies.

"If creditors accept the proposals, the administration would
cease, after a 28 day cooling off period, and the Companies would
continue to trade under the CVAs, which would remain in place for
two years.  The Administrators would become Supervisors to ensure
that the Companies meet their obligations to creditors.  In the
meantime, the stores will continue to trade as normal."

On January 22, 2009, the Board of Stylo confirmed that it was
exploring strategic options for the business.  The Company
requested that trading in its shares on the Alternative Investment
Market of the London Stock Exchange be suspended pending
clarification of these options.

Stylo's trading update to the market on December 2, 2008
emphasized the extremely challenging retail conditions affecting
the Company.

The Board has been actively pursuing a recovery program to return
the business to profitability by reducing costs, closing
underperforming outlets, selling businesses such as Shellys,
improving the management team, reducing stock levels and
developing new formats.  Notwithstanding these actions, the
trading conditions in the retail sector have deteriorated
markedly.  The Board does not anticipate any improvement in the
trading environment in the short-term.  Against this background
the Board has concluded that current and projected sales can not
support the current cost base of the business, in particular the
high rent obligations, and therefore a more pro-active
restructuring approach is required to return the business to
profitability.

In a statement on Monday, January 26, 2009, Stylo said the
objective of the CVAs is to restore the group's business model to
viability primarily by restructuring the rental liabilities on its
property portfolio to reflect the ability of each individual store
to trade profitably.

Michael Ziff, Chairman & Chief Executive of Stylo, said:
"After much careful thought and planning, I am satisfied that we
are proposing an arrangement which will enable the business to
move forward with a stronger foundation and achieve a solution
that is in the best interests of all stakeholders."

The Ziff family confirmed its intention to make substantial
further funds available to the Group if requested to do so by the
Board.  The terms of such further investment remain subject to
final agreement between the independent directors and the Ziff
family.


BERNSTEIN GROUP: Creditors Will Not Receive Dividend, KPMG Says
---------------------------------------------------------------
James Chapelard at Crain's Manchester Business reports that
creditors of Bernstein Group Holdings Ltd will not receive
dividend after the Bolton-based kitchen and bedroom unit
manufacturer failed to comply with the terms of a voluntary
agreement made under an earlier period of administration in 2006.

Bernstein, Crain's discloses, had debts of GBP8.6 million under
that administration.

According to Crain's, the agreement, made by original
administrator KPMG, collapsed in December after the company was
unable to pay GBP50,000.  Subsequently, PricewaterhouseCoopers was
appointed new administrators of the company, Crain's adds.

Crain's notes that although the company has contributed GBP250,000
over the course of 2008, this money has been absorbed by
professional fees.

Crain's relates a report by administrators KPMG said "We have been
in dialogue with management and unfortunately there is no prospect
of future contributions being made or defaults being remedied.  As
a result, we are obliged to terminate the voluntary agreement
because the company is unable to make the final contribution of
GBP494,000, there will be no dividend to creditors."

Creditors of the company, which is continuing to trade with
limited staff, now wait to see if they receive any money from the
second administration, Crain's says.

Berstein, Crain's recalls, went into administration in December,
resulting to the loss of 140 jobs.

The administrators, as cited by Crain's, said the business has
suffered significant losses as a result of the severe housing and
retail downturn in the UK and the slowdown in consumer spending on
home improvements.

Bernstein Group Holdings Ltd manufactures flat pack and ready
assembled kitchens.


INEOS GROUP: Weak Liquidity Cues Moody's Junk Corporate Rating
--------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Ineos Group Holdings plc to Caa2 (from B3).  The ratings
assigned to the instruments raised by its subsidiaries were also
downgraded.  The outlook on the ratings remains negative.

On January 22, Ineos published an update on liquidity and market
trading in the last quarter of 2008 that suggested a substantial
weakening in the operating environment and some reduction in the
liquidity position of the group.  Lower liquidity guidance and
further deterioration in the market conditions and the outlook for
2009 has increased Moody's estimate of default probability and
resulted in the downgrade of the ratings.

The negative outlook reflects Moody's expectation of the
challenging operating environment that will continue to affect the
company's credit profile in the medium term.  In Moody's view, the
size of the liabilities and the restrictive covenants under the
senior secured facilities (temporarily waived by the lenders)
remain the major factors driving the credit profile at this stage.
The negative outlook reflects the likely need to review the
existing terms at the beginning of 2009, the uncertainty
associated with the terms and conditions of such a review, as well
as the need to strengthen the balance sheet of the group to ensure
continuous compliance with the terms of the facilities during this
period of cyclical downturn.

These ratings are affected by the rating action:

Ineos Group Holdings plc:

  - Corporate Family Rating: Caa2
  - 2016 senior g-teed notes - Ca / LGD 5 (89);

Ineos Holding Limited

  - First-lien senior g-teed bank facilities -- Caa1/ LGD 3 (35);
  - Second lien senior loans -- Caa3 / LGD 5 (79);

Ineos Vinyls Finance plc

  - Senior g-teed notes - Ca / LGD 6 (96).

Moody's last rating action on Ineos Group holding was on
December 12, 2008 when the rating agency assigned a negative
outlook to the company's ratings.

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


INFORMATION TECHNOLOGY: Goes Into Administration
------------------------------------------------
Adam Hooker at PrintWeek reports that Information Technology
Incentives (ITI) has gone into administration.

Citing Chris Hilbert, manager of the administration team at SFP,
the report relates ITI was placed into administration on Jan. 21.

ITI, the report discloses, is the parent company of digital
printer Cpod and bookbinder Chivers Period.

The report however notes it is currently unclear how the two
companies will be affected.

Cpod and Chivers employ around 12 and 20 staff respectively, the
report states.


LAND OF LEATHER: To Begin Stock Liquidation Sales in 33 Stores
--------------------------------------------------------------
The joint administrators of furniture retailer Land of Leather on
Monday disclosed plans to begin stock liquidation sales in 33
stores that are to be closed.

Lee Manning, Deloitte Partner and joint administrator, commented:
"While we are making every effort to sell Land of Leather as a
going concern, it is apparent that interested parties will not buy
all of the 109 stores.  Therefore, we have taken the decision to
begin pre-closure inventory liquidation sales at 33 of the stores.

"We have begun discounting the stock in those stores with a view
to winding down.  However, we continue to talk to prospective
buyers for the business, and all other stores remain open and
available for purchase as a going concern."

The 30 stores in the UK and three stores in Ireland employ 95
staff in total.  The administrators are looking at the possibility
of relocating some of these employees to other stores where
possible.

Lee Manning and Nick Edwards of Deloitte LLP, the business
advisory firm, were appointed as joint administrators to Land of
Leather, the furniture retailer, on January 12, 2009.  The
administrators continue to talk to interested parties with a view
to concluding a sale of the business as a going concern.

Land of Leather operates from 109 retail stores across the United
Kingdom and Ireland, and has a head office in Kent.


LANZET LTD: Appoints Joint Administrators from PKF
--------------------------------------------------
Kerry Bailey and Stephen P. Holgate of PKF (UK) LLP were appointed
joint administrators of Lanzet (UK) Ltd. on Jan. 15, 2009.

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

         Farringdon Place
         20 Farringdon Road
         London
         EC1M 3AP
         England


LB HOLDINGS: Names Joint Administrators from PwC
------------------------------------------------
Derek Anthony Howell, Anthony Victor Lomas, Steven Anthony Pearson
and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were
appointed joint administrators of LB Holdings Intermediate 2 Ltd.
on Jan. 14, 2009.

The company can be reached at:

         LB Holdings Intermediate 2 Ltd.
         25 Bank Street
         London
         E14 5LE
         England


NICKEL BLANKS: Acquired by Carrs of Sheffield
---------------------------------------------
Bob Rae at Sheffield Star reports that Carrs of Sheffield has
acquired Meadowhall-based cutlery firm Nickel Blanks for an
undisclosed sum.

Carrs, the report relates, has acquired the intellectual property,
plant, machinery, tooling, stock and work in progress of Nickel
Blanks and its subsidiaries.

The company's subsidiaries snapped up by Carrs include knife blade
forgers Jessop and Smith, handle makers and knife assemblers
Beatson Drake, blade grinders and polishers Rutland Cutlery,
polishers and platers Classic Cutlery, traditional sterling
silver, EPNS and stainless steel cutlery manufacturer Osborne,
which has a concession at top people's store Harrods, and retailer
Dynasty, which trades locally under the name Sheffield Scene.

The report recounts 70 of Nickel Blanks' employees were mostly
made redundant not long after Ian Schofield and Charles Escott
from business advisers PKF were appointed joint administrators of
the company, which collapsed for the second time within a year.

According to the report, creditors owed money after the first
collapse can expect to receive around 40p for every GBP1 they were
owed under a voluntary arrangement, while people owed money from
the second collapse can only expect 5p for every GBP1 they were
owed.

The report discloses Nokoy Services, a company connected to Nickel
Blanks' previous owners, was among the creditors owed money from
the second collapse.  It was owed around GBP1.2 million and waived
its right to a pay out from the voluntary arrangement, the report
notes.


POTENTIAL VEHICLE: Appoints Joint Administrators from KPMG
----------------------------------------------------------
Allan Watson Graham, Ian James Corfield and David John Standish of
KPMG LLP were appointed joint administrators of Potential Vehicle
Hire Ltd. on Jan. 19, 2009.

The company can be reached at:

         Potential Vehicle Hire Ltd.
         149-157 Kings Road
         Brentwood
         Essex
         CM14 4EG
         England


PRICELESS SHOES: Goes Into Administration; Deloitte Appointed
-------------------------------------------------------------
Daniel Butters, Neville Kahn, and Lee Manning of Deloitte LLP, the
business advisory firm, have been appointed Joint Administrators
of Barratts Shoes and Priceless Shoes, the trading subsidiaries of
Stylo plc, the high street shoe retailer.

The statutory entities in Administration are:

   -- Stylo Barratt Shoes Limited,
   -- Stylo Barratt Properties Limited,
   -- Priceless Shoes Properties Limited,
   -- Barratts Shoes Properties Limited, and
   -- Comfort Shoes Limited.

Stylo plc, the listed parent is not in Administration.  The
Administrators are seeking agreement from creditors to place the
companies into a Company Voluntary Arrangement (CVA).  The stores
remain open and continue to trade.

Stylo -- http://www.stylo.co.uk/-- operates 400 high street shoe
stores in the UK under the Barratts and Priceless brands,
employing 5,450 staff in total.  It also has a headquarters in
Bradford, Yorkshire.

Daniel Butters, Deloitte Partner and Joint Administrator,
commented: "Stylo has faced a downturn in trading as a result of
the current difficult economic and market conditions. We have been
appointed as Administrators to Barratt and Priceless while we
contact all creditors with a proposal to rescue the companies via
a series of CVAs.  Under the CVAs, we will be asking creditors and
landlords to contractually vary their terms of trade in order to
give Barratts and Priceless the necessary breathing space to allow
them to deliver value for all stakeholders in the future.  We are
seeking to enable the rescue of Barratts and Priceless, while
giving creditors and landlords certainty over their own positions.
Ultimately, we are giving creditors and landlords a chance to vote
on the future of the companies.

"If creditors accept the proposals, the administration would
cease, after a 28 day cooling off period, and the Companies would
continue to trade under the CVAs, which would remain in place for
two years.  The Administrators would become Supervisors to ensure
that the Companies meet their obligations to creditors.  In the
meantime, the stores will continue to trade as normal."

On January 22, 2009, the Board of Stylo confirmed that it was
exploring strategic options for the business.  The Company
requested that trading in its shares on the Alternative Investment
Market of the London Stock Exchange be suspended pending
clarification of these options.

Stylo's trading update to the market on December 2, 2008
emphasized the extremely challenging retail conditions affecting
the Company.

The Board has been actively pursuing a recovery program to return
the business to profitability by reducing costs, closing
underperforming outlets, selling businesses such as Shellys,
improving the management team, reducing stock levels and
developing new formats.  Notwithstanding these actions, the
trading conditions in the retail sector have deteriorated
markedly.  The Board does not anticipate any improvement in the
trading environment in the short-term.  Against this background
the Board has concluded that current and projected sales can not
support the current cost base of the business, in particular the
high rent obligations, and therefore a more pro-active
restructuring approach is required to return the business to
profitability.

In a statement on Monday, January 26, 2009, Stylo said the
objective of the CVAs is to restore the group's business model to
viability primarily by restructuring the rental liabilities on its
property portfolio to reflect the ability of each individual store
to trade profitably.

Michael Ziff, Chairman & Chief Executive of Stylo, said:
"After much careful thought and planning, I am satisfied that we
are proposing an arrangement which will enable the business to
move forward with a stronger foundation and achieve a solution
that is in the best interests of all stakeholders."

The Ziff family confirmed its intention to make substantial
further funds available to the Group if requested to do so by the
Board.  The terms of such further investment remain subject to
final agreement between the independent directors and the Ziff
family.


PRINTHAUS: Goes Into Administration
-----------------------------------
Adam Hooker and Simon Nias at PrintWeek report that Northampton-
based printing firm Printhaus has gone into administration.

Michael Kiely of UHY Hacker Young's London office was appointed
administrator of Printhaus on Jan. 19, the report discloses.

The report recalls Printhaus managing director Kelly Harris
earlier confirmed that a number of redundancies had been made in
December.  Mr. Harris also declined to comment on speculation that
the company was set to be acquired, the report adds.

According to the report, administration will come as a surprise to
Printhaus's clients.  The report recounts clients were sent a
letter by Mr. Harris dated December 31, in which he claimed that
the company would be kicking off the new year with "new
offerings".

The report relates the letter stated that the company had secured
external investment, "which underpins our future, and enables us
to increase the range of services we offer".

However, the report notes sources close to the company said that
no new kit has been installed at Printhaus's site.


SOUTHERN PACIFIC: S&P Affirms BB+ Ratings on Two Classes of Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised and removed from
CreditWatch positive its credit ratings on the mezzanine classes
issued by three U.K. residential mortgage-backed securities
Southern Pacific transactions:

   -- Southern Pacific Financing 04-A PLC;
   -- Southern Pacific Securities 04-1 PLC; and
   -- Southern Pacific Securities 04-2 PLC.

At the same time, S&P affirmed and removed from CreditWatch
positive the subordinate notes in each transaction.  S&P also
affirmed the senior class A notes.

Our actions follow a full credit and cash flow analysis of the
most recent information that S&P has received for each
transaction.  This analysis showed that the levels of credit
enhancement available to all classes of notes on CreditWatch
positive have improved and the underlying collateral continues to
perform as expected.

The Southern Pacific portfolios comprise predominately self-
certified (about 65%) and first-time borrowers (about 21%).  In
all these transactions, S&P has seen a reduction in the weighted-
average loan-to-value ratio, together with an increase in
seasoning.  For SPF 04-A, SPS 04-1, and SPS 04-2 the WALTV ratio
is 69.34%, 64.17%, and 69.89%, respectively, with seasoning at
54.71 months, 56.18 months, and 52.33 months.

Additionally, all three deals have significantly deleveraged.
This has substantially increased credit enhancement levels across
all tranches, providing some mitigation for the high arrears
levels.  The current pool factor is 11.32% for SPF 04-A, 8.54% for
SPS 04-1, and 12.08% for SPS 04-2.

The notes, issued in 2004, are backed by portfolios of first-
charge, second-charge, and, only if the first and second charges
are in favor of the same lender, third-charge mortgages.  These
are secured by freehold and leasehold owner-occupied properties in
the U.K. and were originated by Southern Pacific Personal Loans
Ltd. and Southern Pacific Mortgage Ltd.

                           Ratings List

       Ratings Raised and Removed from Creditwatch Positive

               Southern Pacific Financing 04-A PLC
        GBP350 Million Mortgage-Backed Floating-Rate Notes

                              Rating
                              ------
         Class        To                    From
         -----        --                    ----
         C            AAA                   AA/Watch Pos
         D            AA                    A/Watch Pos

                Southern Pacific Financing 04-1 PLC
       GBP215.2 Million, EUR325.7 Million, and US$310 Million
                Mortgage-Backed Floating-Rate Notes

                              Rating
                              ------
         Class        To                    From
         -----        --                    ----
         M            AA                    A/Watch Pos

                Southern Pacific Financing 04-2 PLC
       GBP493.5 Million, EUR210 Million and US$122.5 Million
                Mortgage-Backed Floating-Rate Notes

                              Rating
                              ------
         Class        To                    From
         -----        --                    ----
         B1b          AAA                   AA/Watch Pos
         B1c          AAA                   AA/Watch Pos
         C1a          AA                    A/Watch Pos
         C1c          AA                    A/Watch Pos

      Ratings Affirmed And Removed From Creditwatch Positive

                Southern Pacific Financing 04-A PLC
        GBP350 Million Mortgage-Backed Floating-Rate Notes

                              Rating
                              ------
         Class        To                    From
         -----        --                    ----
         E            BBB                   BBB/Watch Pos

                Southern Pacific Financing 04-1 PLC
         GBP215.2 Million, EUR325.7 Million, and US$310 Million
                Mortgage-Backed Floating-Rate Notes

                              Rating
                              ------
         Class        To                    From
         -----        --                    ----
         B            BB+                   BB+/Watch Pos

                Southern Pacific Financing 04-2 PLC
         GBP493.5 Million, EUR210 Million, and US$122.5 Million
                Mortgage-Backed Floating-Rate Notes

                              Rating
                              ------
         Class        To                    From
         -----        --                    ----
         D1a          BBB+                  BBB+/Watch Pos
         D1c          BBB+                  BBB+/Watch Pos
         E            BB+                   BB/Watch Pos

                        Ratings Affirmed

               Southern Pacific Financing 04-A PLC
        GBP350 Million Mortgage-Backed Floating-Rate Notes

                      Class        Rating
                      -----        ------
                      A            AAA
                      B            AAA

               Southern Pacific Financing 04-1 PLC
  GBP215.2 Million, EUR325.7 Million, and US$310 Million Mortgage-
                   Backed Floating-Rate Notes

                      Class        Rating
                      -----        ------
                      A2           AAA


SYMINGTON: Goes Into Administration
-----------------------------------
Retail Jeweller reports that Symington, a discount jewelry chain
based in Scotland, has gone into administration.

According to the report, attempts to restructure Symington's
parent company Martin Groundland & Company following difficult
trading failed.

The report recalls Martin Groundland & Company, which trades under
Red Contemporary Jewellery as well as Symington's, went into
administration on Jan. 16 at the request of the company's
directors.

Blair Nimmo and Tony Friar of KPMG Restructuring were appointed as
joint administrators, the report relates.

Citing Mr. Nimmo, the report discloses 78 employees have been
retained.  Mr. Nimmo said the shops will continue to trade as
normal under the control of the joint administrators while a buyer
for the business is sought.

Headquartered in Glasgow, Martin Groundland & Company Limited
operates 13 shops.  It employs 91 people.


TATA STEEL: Corus Unveils Strategic Measures, 3,500 Jobs at Risk
----------------------------------------------------------------
Corus, the European business of Tata Steel, on Monday, January 26,
disclosed a series of strategic measures that will improve its
competitive position.  The initiative focuses on three areas:
divestments, asset restructuring and a company-wide efficiency and
overhead review.

In the last quarter of 2008, Corus addressed the immediate effects
of the economic downturn through a series of measures that are
expected to yield about GBP600 million in cash benefits in the six
months to the end of March.  These measures also include taking
the opportunity to provide additional training to employees
experiencing temporary shortages of work.  The company will
continue to discuss with employee representatives options to match
payroll costs with the new production and demand levels.

The initiative is strategic and structural in nature.  Elements of
the initiative comprise long-term plans that were already under
consideration, but which have been brought forward as a result of
the slowdown.  It should bring annual improvements in operating
profit of more than GBP200 million.  It will also put around 3,500
jobs at risk around the company as a whole.  Corus currently
employs about 42,000 people.

The company will make every effort to achieve the job losses
through voluntary redundancies, while retaining critical skills in
the business.  A comprehensive range of redundancy packages and
outplacement support services will be made available to those
leaving the company.  There will be full consultations with
employees and their representatives throughout the process.

Corus CEO Philippe Varin said: "The structural changes we are
proposing have been carefully considered.  They are essential for
the future of the business.  The company will keep its focus on
priority areas such as training, research and product development,
which, together with the initiative, will ensure Corus is in the
best possible shape to compete strongly in the future."

The key features of the initiative are:

    * Divestments sale of Corus' aluminium smelters in Germany
      and the Netherlands (announced Jan. 21) and advanced
      discussions on the sale of a majority stake in Teesside Cast
      Products, which would bring clarity to the future of the
      Teesside operations beyond the current offtake agreement.

    * Asset restructuring mothballing of the Llanwern hot strip
      mill; restructuring of engineering steels into two
      businesses a specialty steels business at Stocksbridge fed
      by electric furnace steel from Rotherham and a bar business
      at Rotherham with steel sourced from the integrated works at
      Scunthorpe; and streamlining of downstream facilities in
      Distribution, Building Systems and Tubes

    * Efficiency and overhead review a company-wide efficiency
      improvement review, including a review of support functions
      such as IT, Finance and Human Resources, with a target to
      reduce costs in these areas by around 20%.

In addition, the company intends to make changes to the British
Steel Pension Scheme.  While the scheme is in a healthy position,
the company will, in line with market practice, close the Defined
Benefit scheme to new recruits, who will be offered a Defined
Contribution scheme.  Steps will also be taken to ensure that the
company contribution to future service for existing members
remains at 12%.

                       Steel Prices Halved

According to BBC News, a 40% fall in global demand for steel from
its peak of last year caused Corus's order book to drop by more
than a third.

BBC recalls steel prices have fallen by half since last September.
Breakingnews.ie says this is due to the crisis in the construction
and car-making industry.

BBC, however, notes that according to the Sunday Times, Corus is
not planning to close any of its British plants.

                           About Corus

Corus is Europe's second largest steel producer with annual
revenues of more than GBP12 billion and crude steel production of
about 20 million tonnes.  With main steelmaking operations
primarily in the UK and the Netherlands, Corus supplies steel and
related services to the construction, automotive, packaging,
mechanical engineering and other markets worldwide.  Corus is a
subsidiary of Tata Steel, one of the world's top ten steel
producers.  Following the acquisition of Corus in 2007, the
combined enterprise has an aggregate crude steel capacity of more
than 28 million tonnes and approximately 82,700 employees across
four continents.

                     About Tata Steel Limited

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

                           *     *     *

As reported in the Troubled Company Reporter-Asia on Jan. 14,
2008, Moody's Investors Service placed Tata Steel Ltd's Ba1
corporate family rating on review for possible downgrade.

The rating action follows the rating downgrade of Tata Steel UK's
rating (formerly Corus) to B1, which remains on review for
possible downgrade, and reflects the close linkages between the
credit profiles of the two entities.


* RBS Says Half of Commodity Shippers at Risk of Breaching Loans
----------------------------------------------------------------
Alaric Nightingale at Bloomberg News reported that Royal Bank of
Scotland Group plc said as many as half of publicly traded
commodity shipping lines are at risk of breaching their loan
covenants by April after a record collapse in hire rates.

Bloomberg News recounted that according to the Baltic Exchange in
London, the cost of second-hand capesizes, the largest group of
commodity carriers, plunged 70 percent last year.  Bloomberg News
recalled last year the Baltic Dry Index, a measure of shipping
costs for commodities, slumped 92 percent, causing at least four
shipowners to collapse since October.

"It's hard to avoid a breach when asset values have fallen so
significantly," Lambros Varnavides, RBS' head of of credit to the
shipping industry, told Bloomberg News in interviews in London on
Jan. 12 and 13.

According to Bloomberg News, Mr. Varnavides said about a third of
closely held coal, ore and grain shippers could also breach loan
covenants.

Mr. Varnavides, as cited by Bloomberg News, said shippers in
breach of covenants will likely have to renegotiate loans assuming
rates and values don't rebound in the next several months.  He,
however, noted that most banks will be more interested in
maintaining their relationship with shippers than seeking the
highest possible interest rates when renegotiating loans, which
are being made at 200 to 300 basis points over the London
interbank offered rate, compared with less than 100 points about
18 months ago, Bloomberg News related.

Citing Mr. Varnavides, Bloomberg News disclosed RBS has lent US$25
billion to shippers, of which US$18 billion has actually been
used.

Mr. Varnavides indicated the ratio of losses on RBS's shipping
loans is "not going to change much" in the "long run", Bloomberg
News added.  The ratio of losses on the bank's shipping loans has
averaged about 0.03 percent in the last 15 years, Bloomberg News
stated.


* UK: FTSE350 Pensions Deficit Estimated at GBP33 Bln, Mercer Says
------------------------------------------------------------------
The pension schemes of the FTSE350 recorded a funding level of 92%
equal to deficit of GBP33 billion, according to Mercer's quarterly
snapshot of the UK's pensions market.  The figure compares to the
GBP13 billion deficit reported in December 31, 2007 and
illustrates the impact of market volatility on company balance
sheets.

The research also showed that the insolvency risk for the 10% of
FTSE350 companies most in danger of defaulting has increased
four-fold in the last quarter of 2008 and by a factor of 17 over
the whole year.

According the report, AA bond yields remain high, but widely
spread, making the selection of IAS19 discount rates a challenging
task for companies reporting at December 31, 2008.  Mercer's
research continues to suggest that companies are adopting a
variety of methodologies for deriving their discount rates.

Mercer said that based on its insights into market participants'
behavior, its estimate of the aggregate funding level of the
FTSE350 is 92%, which falls between the funding level of 97% at
December 31, 2007 and the value of 90% at December 31, 2006."

Deborah Cooper, Principal at Mercer, commented, "There has been
much uncertainty around assumption setting, especially with the
diverse range of corporate bond yields at the year-end.  As
reports of falls in asset values being offset by falling
liabilities over 2008 have made headlines, a number of people have
questioned the suitability of accounting standards which rely on
these yields.

"It should however be borne in mind that models used for
accounting purposes are required to ensure different companies'
financial statements are comparable.  Even though it has come in
for some criticism in recent months, the current approach, which
relies on yields derived from AA rate corporate bonds provides a
consistent and transparent way of measuring liabilities on
corporate balance sheets."

During 2008, FTSE350 IAS19 funding levels ranged from 82% to 104%,
indicating just how volatile the measure has been and highlighting
the financial uncertainty faced by sponsors of defined benefit
pension plans in the UK.

Dr. Cooper added, "While much attention has been focused on
accounting funding levels, the key driver of demands for
additional funding will be funding levels on trustees' funding
bases.  These funding levels will vary considerably between
schemes due to the flexibility available to set scheme specific
funding targets and bases."

Mercer's report shows that deficits on the trustees' funding basis
have also increased during 2008 with the rise generally being
greater due to the typical basis being driven by gilt rather than
bond yields.

In Mercer's Pension Update at the end of June 2008, the increasing
risk of corporate insolvency was highlighted.  Regrettably this
analysis proved to be only too accurate with Wedgwood, Zavvi,
Woolworths and Whittards of Chelsea all having gone into
administration in recent weeks.

Dr Cooper continued, "The strength of sponsoring employers'
covenants should be at or near the top of trustees' agendas.  If
economic uncertainty continues, and funding levels remain weak,
trustees will have to balance putting pressure on sponsoring
employers for additional security for scheme members while, at the
same time, considering the effects on the company's financial
strength and future prospects.  It is likely that some trustees
will be seeking additional funding or security to provide a boost
to the security of member benefits, while sponsoring employers
still have some resources to hand.  This will place additional
pressure on corporate sponsors at a time when they can least
afford it.  There will also be circumstances where trustees are
prepared and able to accept reduced employer funding over the
short term.  However, agreement to this might have to be supported
by evidence that shareholders and other company creditors are also
being asked to share some of the company's pain."


* EUROPE: GDP Growth in the European Union to Drop by 1.8% in 2009
------------------------------------------------------------------
GDP growth in the European Union is expected to fall by 1.8 % in
2009 before recovering moderately to 0.5% in 2010.  This is the
result of the impact on the real economy of the intensified
financial crisis, the ensuing global downturn manifested in the
severe contraction of world trade and manufacturing output and, in
some countries, housing-market corrections.  Government
consumption and public investment, however, will provide relief.
The fact that inflationary pressures have eased also contributes
to private consumption.  The discretionary fiscal measures
announced since August 2008 will limit the contraction in GDP
growth by about 3/4 pp. this year.  The severity of the economic
downturn will have a significant impact on employment and public
finances over the forecast horizon.

"The measures to stabilize the financial market, the easing of
monetary policies and the economic recovery plans will enable us
to put a floor under the deterioration of the economy this year
and create the conditions for a gradual recovery in the second
part of 2009.  The top priority is to make those measures work
effectively: to improve the flows of credit at reasonable prices
and to implement the fiscal stimulus packages quickly to stimulate
investment and private consumption.  To boost confidence, it is
also crucial that Member States explicitly commit that they will
reverse the deterioration of public finances as soon as we return
to normal economic times so as to ensure the medium-to-long term
sustainability of public finances", said Joaquin Almunia, Economic
and Monetary Affairs Commissioner.

Economic growth is forecast to have dropped to about 1% in 2008 in
both the EU and the euro area, from just below 3% in 2007,
according to the advanced interim forecast released January 19,
2009.  In 2009, real GDP is expected to fall sharply, by 1.8% in
the EU and 1.9 in the euro area, before recovering by about % in
2010.

Global economy in recession this year

Economic activity worldwide is expected to have fallen markedly in
the last quarter of 2008.  Declines in recent survey data and
incoming orders, among others, indicate that this weakness is
likely to persist in the short term.  The economic downturn is
expected to be broad-based with negative spillovers increasingly
affecting emerging-market economies.  For 2009 as a whole, world
GDP growth is projected to slow down to 0.5% (from 3.3% in 2008
and the exceptionally strong 5% average in 2004-2007).  Starting
in the second half of 2009, global growth is expected to rise
gradually but moderately as the financial market situation
improves and the impact of the macroeconomic policy easing (not
least in the US) gains traction.  Overall, global GDP growth is
expected to be around 2 3/4% in 2010.

EU economy also hit hard

In the third quarter of 2008 GDP fell by 0.2% in both the euro
area and the EU. T his implies that the euro area entered its
first technical recession as GDP contracted for the second
consecutive quarter.  Following the further slump in survey data
across sectors and countries and the marked deterioration in other
leading indicators during the fourth quarter, the outlook is for a
continued fall in GDP throughout the first half of this year.  The
downswing is expected to be broad-based across countries as the
financial crisis, the global cycle and, in some Member States,
also a housing bust take their toll.  The fall in both private and
net foreign demand is expected to be a significant drag on GDP
growth, with only government consumption and public investment
providing relief.

In particular private investment, which was a key driving force in
the upturn, faces an abrupt slowdown on the back of a substantial
drop in capacity utilization rates, the deterioration in the
economic outlook and tighter financing conditions.

Unemployment and deficits on the rise

The labor market situation started to worsen in most Member States
in 2008.  Reacting with a certain lag to changes in GDP growth,
employment growth is expected to turn negative this year, with EU
employment falling by 3 1/2 million jobs.  As a result, the
unemployment rate is expected to increase to 8 3/4% in the EU in
2009 (and 9 1/4% in the euro area), with a further increase in
2010.

The worsened outlook is also expected to take a toll on public
finances, which will suffer from the reversal of past revenue
windfalls, a generally less tax-rich composition of growth and the
impact of important discretionary measures adopted and/or
announced by Member States (which amount to some 1% of GDP for
2009 in the EU at the time this forecast was finalized).  The
headline deficit is therefore expected to more than double this
year in the EU to 4 1/2% in 2009 (from some 1 3/4% to 4% in the
euro area).

Inflation set to fall rapidly

Inflationary pressures are abating rapidly.  The fierce upsurge in
commodity prices that drove inflation to a peak in the summer of
2008 has since been abruptly reversed, amid a rapid weakening in
growth prospects for the EU and the global economy as well as
deteriorating labor markets.  These elements set the stage for a
significant downward revision to the inflation outlook compared to
the autumn projection.  Consumer-price inflation is now expected
to fall from 3.7% in 2008 in the EU (3.3% in the euro area) to
1.2% in 2009 (1.0% in the euro area) and just below 2% in 2010 in
both regions.

Substantial uncertainties at the current juncture

This forecast is again surrounded by exceptional uncertainty as
the world economy faces its worst crisis since World War II.
Risks to the growth outlook are balanced.  To the downside, the
impact of the financial crisis (including on the housing sector)
and the severity of the negative feedback loop between the
financial and real sectors of the economy need to be considered.
On the other hand, growth could be stronger than expected if inter
alia the fiscal packages restore confidence among investors and
consumers more swiftly than assumed.  Risks to the inflation
outlook also appear balanced, following developments in commodity
prices and the deterioration of economic prospects globally.

                            *********

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 * * *