TCREUR_Public/090129.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

           Thursday, January 29, 2009, Vol. 10, No. 20

                            Headlines

A U S T R I A

ELRO LLC: Claims Registration Period Ends February 19
EMSO LLC: Claims Registration Period Ends February 19
F. HUBER LLC: Claims Registration Period Ends February 10
MAUTNER MARKHOF: Claims Registration Period Ends Feb. 16
ME & SA: Claims Registration Period Ends February 10

MULTIFLOR LLC: Claims Registration Period Ends Feb. 10
PRO-EMOTIONS MOERTL: Claims Registration Period Ends Feb. 2


B U L G A R I A

BETA AD: Declared Insolvent by Appellate Court


F R A N C E

REMY COINTREAU: Moody's Changes Outlook on Ba2 Rating to Negative

* FRANCE: Readies EUR5 Billion Funding to Airlines


G E R M A N Y

AL FIUME: Claims Registration Period Ends March 1
BAU-TEC SEEVETAL: Claims Registration Period Ends March 26
BEAUTY GMBH: Claims Registration Period Ends March 20
CONTINENTAL AG: S&P Downgrades Corporate Credit Rating to 'BB'
EURO-YACHT-TIEFERT GMBH: Claims Registration Period Ends Feb. 23

MORE CONSULT: Claims Registration Period Ends February 17
QIMONDA AG: Owes Winbond US$28.1 Million in Accounts Receivable
QIMONDA AG: Saxony to Provide Further Aid, Reuters Says
SELDI GMBH: Claims Registration Period Ends February 28


I R E L A N D

CHARTBUSTERS: High Court Grants Court Protection
WATERFORD WEDGWOOD: Peter Goulandris Resigns as Director


I T A L Y

FERRETTI SPA: Defaults on Debt After Orders Dropped


K A Z A K H S T A N

AGRO-TRANSFER LLP: Proof of Claim Deadline Slated for March 6
ALTYNBEKOV & K: Creditors Must File Claims by March 6
BAGARA-2007 LLP: Claims Filing Period Ends March 6
KEREMET LLP: Creditors' Proofs of Claim Due on March 6
KLONDIKE LTD: Claims Registration Period Ends March 6

M-INVEST GROUP: Proof of Claim Deadline Slated for March 6
MODULE STROY: Creditors Must File Claims by March 6
SAD-GROUP LTD: Claims Filing Period Ends March 6
YAR STROY MIR: Creditors' Proofs of Claim Due on March 6


K Y R G Y Z S T A N

NAIMAN JSC: Creditors Must File Claims by February 27


N E T H E R L A N D S

ICESAVE: Dutch Banks Incur EUR230 Mln Loss on Bankruptcy


P O L A N D

VISTULA & WOLCZANKA: Repayment Deadline on US$75.5 Mln Debt Looms


R O M A N I A

* ROMANIA: May Freeze Wages, Halt Hiring to Cut Budget Deficit


R U S S I A

ANDREYEVSKAYA TIMBER: Creditors Must File Claims by March 23
CITIBANK ZAO: Fitch Assigns 'D' Individual Rating
KARITSA-LES LLC: Creditors Must File Claims by February 23
LES-PROM LLC: Creditors Must File Claims by February 23
MIRAX LLC: Fitch Downgrades Issuer Default Ratings to 'B-'

NIZHEGORODSKIY MOTOR-VAN: Creditors Must File Claims by Feb. 23
NOVOSIBIRSKIY ELECTRO: Creditors Must File Claims by February 23
SVEZA-DREV LLC: Creditors Must File Claims by February 23
VOLGOGRADSKIY ENGINE: Creditors Must File Claims by March 23
WOODWORKING PLANT LLC: Creditors Must File Claims by February 23

YEGORYEVSKIY FLAX: Creditors Must File Claims by February 23

* CITY OF BRATSK: S&P Keeps 'B-' Issuer Rating on Negative Watch
* RUSSIA: Pretax Profit of Top 30 Banks Down 7.3% in 11M08


S P A I N

BANCO SANTANDER: Offers EUR1.38 Bln to Madoff-Exposed Clients
CEMEX SAB: Restructures US$4 Billion Short-Term Debt
MBS BANCAJA: Moody's Assigns (P)B1 Rating on EUR30 Mil. Notes
NOZAR SA: Alvatransa Seeks Court Nod on Administration


S W I T Z E R L A N D

CHRISTIAN UND ELISABETH: Creditors Must File Claims by Feb. 5
CTP STAHLBAUVERTRIEB: Deadline to File Claims Set February 6
DEVON MODERNE: Creditors Have Until February 5 to File Claims
HEGA HECHT: Proof of Claim Filing Deadline Set February 6
HEINZ ZIMMERMANN: Creditors' Proofs of Claim Due by February 6

KINO CAPITOL: February 6 Set as Deadline to File Claims
MELSIA JSC: Creditors Must File Proofs of Claim by February 5


U K R A I N E

AGRO-LAN LLC: Creditors Must File Claims by February 8
AZIYA IMPORT: Creditors Must File Claims by February 8
BANK FORUM: Fitch Affirms Ratings on Risks Following Strong Growth
DEMETRIS LLC: Creditors Must File Claims by February 8
OCTOPUS LTD: Creditors Must File Claims by February 11

POLONNOYE CHINA: Creditors Must File Claims by February 8
ROVNO TRACK: Creditors Must File Claims by February 11
SMEREKA LLC: Creditors Must File Claims by February 7
SWEDBANK OJSC: Fitch Cuts Individual Rating on Rapid Loan Growth
SWITZERLAND GALLERY: Creditors Must File Claims by February 11

TRANS OIL: Creditors Must File Claims by February 11
VALERY INTERNATIONAL: Creditors Must File Claims by February 8
VEL LLC: Creditors Must File Claims by February 8
VSEUKRAINSKY: Fitch Cuts Ratings on Deteriorating Asset Quality


U N I T E D   K I N G D O M

AIRE VALLEY: Fitch Shifts Outlook on BB-Rated Tranches to Negative
BRIERLEY LTD: Appoints Joint Administrators from Baker Tilly
BRITISH AIRWAYS: Sees GBP150 Mln Loss in Year Ended March 31, 2009
CLARIS LIMITED: Moody's Slashes Ratings on EUR87-Mil Notes to Caa2
CLEAR PUB: Brings in Joint Administrators from Grant Thornton

DUNNETTS: Utensa Takes Over Operations
EMPIRE PROPERTY: Appoints Joint Administrators from KPMG
GEORGE CARTER: Calls in Joint Administrators from KPMG
ITV PLC: S&P Puts 'BB+' Credit Corporate Rating on Watch Negative
JJB SPORTS: Selling Suspended Chief's Two Helicopters

MR BAGELS: Goes Into Administration; Up to 80 Jobs at Risk
TWIST COMMUNICATIONS: Goes Into Administration
VSTORE LTD: Appoints Joint Liquidators from Baker Tilly
WHINSTONE CAPITAL: Fitch Cuts Ratings on Six Notes to 'BB-'

* UK: Slips Into a Recession, Economy Shrank 1.5% in 4Q08


U Z B E K I S T A N

UZBEKINVEST AS: Moody's Assigns 'B1' First-Time Insurance Rating

* Fitch Says Rating Outlook on EU Aerospace Sector Remains Stable

* Upcoming Meetings, Conferences and Seminars


                         *********


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


ELRO LLC: Claims Registration Period Ends February 19
-----------------------------------------------------
Creditors owed money by LLC Elro (FN 306515h) have until Feb. 19,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Matthias Schmidt
         Dr. Karl Lueger-Ring 12
         1010 Wien
         Austria
         Tel: 533 16 95
         Fax: 535 56 86
         E-mail: schmidt@preslmayr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on March 5, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 23, 2008, (Bankr. Case No. 2 S 169/08b).


EMSO LLC: Claims Registration Period Ends February 19
-----------------------------------------------------
Creditors owed money by LLC Emso (FN 261080t) have until Feb. 19,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Bernhard Eder
         Brucknerstrasse 4
         1040 Wien
         Austria
         Tel: 505 78 61
         Fax: DW 9
         E-mail: eder@rechtsanwaelte.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:40 a.m. on March 5, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 23, 2008, (Bankr. Case No. 2 S 171/08x).


F. HUBER LLC: Claims Registration Period Ends February 10
---------------------------------------------------------
Creditors owed money by LLC F. Huber (FN 281765k) have until
Feb. 10, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Ute Toifl
         Tuchlauben 12/20
         1010 Wien
         Austria
         Tel: 535 46 11
         Fax: 535 46 11 11
         E-mail: office@thr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Feb. 24, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 23, 2008, (Bankr. Case No. 4 S 197/08k).


MAUTNER MARKHOF: Claims Registration Period Ends Feb. 16
--------------------------------------------------------
Creditors owed money by JSC Mautner Markhof (FN 91094m) have until
Feb. 16, 2009, to file written proofs of claim to the court-
appointed estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on March 2, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1705
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 23, 2008, (Bankr. Case No. 3 S 155/08a).


ME & SA: Claims Registration Period Ends February 10
----------------------------------------------------
Creditors owed money by LLC ME & SA (FN 292987p) have until
Feb. 10, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Andrea Fruhstorfer
         Seilerstatte 17
         1010 Wien
         Austria
         Tel: 512 57 76
         Fax: 512 57 76 50
         E-mail: a.fruhstorfer@fg-lawyers.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:40 a.m. on Feb. 24, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1607
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 23, 2008, (Bankr. Case No. 28 S 171/08p).


MULTIFLOR LLC: Claims Registration Period Ends Feb. 10
------------------------------------------------------
Creditors owed money by LLC Multiflor (FN 206709i) have until
Feb. 10, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Daniel Lampersberger
         Esteplatz 4
         1030 Wien
         Austria
         Tel: 712 33 30-0
         Fax: 712 33 30 30
         E-mail: kanzlei@engelhart.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:50 a.m. on Feb. 24, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1607
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 23, 2008, (Bankr. Case No. 28 S 172/08k).


PRO-EMOTIONS MOERTL: Claims Registration Period Ends Feb. 2
-----------------------------------------------------------
Creditors owed money by OEG Pro-Emotions Moertl & Maier (FN
247544k) have until Feb. 2, 2009, to file written proofs of claim
to the court-appointed estate administrator:

         Dr. Roland Grilc
         Karfreitstrasse 14/III
         9020 Klagenfurt
         Austria
         Tel: 0463/54267 54217
         Fax: 0463/54267-77
         E-mail: office@grilc.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Feb. 10, 2009, for the
examination of claims at:

         Land Court of Klagenfurt
         Room 225
         Klagenfurt
         Austria

Headquartered in St. Jakob im Rosental, Austria, the Debtor
declared bankruptcy on Dec. 23, 2008, (Bankr. Case No. 40 S
76/08d).


===============
B U L G A R I A
===============


BETA AD: Declared Insolvent by Appellate Court
----------------------------------------------
Dnevnik.bg reports that the Veliko Turnovo appellate court has
declared Beta AD insolvent and overindebted two weeks after the
Cherven Bryag-based arms firm announced 160 job cuts because of
plummeting orders.

Tsvetan Bankov, the report relates, was appointed temporary
receiver for the arms firm.

The first creditors' meeting will take place on February 12, the
report discloses.

The report notes the Pleven district court previously decided to
cancel the bankruptcy procedure.


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


REMY COINTREAU: Moody's Changes Outlook on Ba2 Rating to Negative
-----------------------------------------------------------------
Moody's Investors Service changed the outlook on Remy Cointreau
S.A.'s Ba2 Corporate Family Rating and senior unsecured rating to
negative from stable, following the company's revised profit
guidance.  On January 22, 2009, Remy announced that its current
operating profit would decline by 15% in the current fiscal year
ending March 31, 2009 (on a constant currency basis) from
previously anticipated flat growth.

The change in outlook to negative reflects Moody's expectations
that reduced volumes for spirits in the US and parts of Western
Europe, not quite compensated for by sustained consumption in
China, as reported by the company for the first nine months of FYE
March 31, 2009, will weigh on the company's credit metrics.
"Moody's believes that the decline in profitability will add
pressure to Remy's credit metrics at a time when the company
incurs additional costs and execution risks from a change to a new
distribution network," says Moody's analyst Yasmina Serghini.

Moody's previously indicated that it had expected the company's
leverage to deteriorate in the near term, since Remy will pay a
significant penalty fee of approximately EUR160 million in
connection with its exit from the Maxxium distribution joint
venture at the end of March 2009.  Moreover, Moody's notes that
the company's free cash flow is likely to remain negative in the
next two years, assuming that dividend payments remain constant
versus prior years.  Moody's finally considers that Remy's
increased exposure to the premium and super premium spirits
segments and still high concentration on the US makes it more
vulnerable than its peers to the present recessionary environment.

The negative outlook reflects Moody's views that Remy's metrics
will be stretched for the rating category in the next 12 to 18
months with potential for further weakening given the challenging
consumer environment in most of its markets.  Moody's could
consider stabilizing the outlook when there is greater visibility
to Remy's profitability and Debt to EBITDA trends back towards
4.0x.  Negative pressure could develop on the rating if credit
metrics were to further deteriorate, possibly due to a weakening
in developing markets.

Furthermore, Moody's expects Remy to maintain adequate access to
liquidity, in particular its covenanted EUR500 million revolving
credit facility maturing in 2012 as well as EUR120 million of
committed bank lines, of which around EUR465 million were
available at September 30, 2008.

The last rating action on Remy Cointreau was taken on July 5,
2007, when the rating outlook was changed to stable from negative.

Headquartered in Paris, France, Remy is a major producer of cognac
and other spirits.  It had revenues of EUR817.8 million in the
fiscal year ending March 31, 2008.


* FRANCE: Readies EUR5 Billion Funding to Airlines
--------------------------------------------------
Caroline Brothers at the International Herald Tribune reports that
France will guarantee up to EUR5 billion in loans to help airlines
finance the purchase of new aircraft.

According to the report, a Finance Ministry official, who spoke on
condition of anonymity because he was not an authorized spokesman
on the subject, said the EUR5 billion, or US$6.6 billion, out of
about EUR7 billion that France is making available to help its
exporters, would be directed toward the aerospace industry "to
allow the financing of export contracts in the aeronautical
sector."

Banks with airline clients unable to afford the purchase of new
aircraft will be able to approach a newly created state-owned
institution, the Societe de Financement de l'Economie Française,
which will provide guarantees on loans for up to the EUR5 billion
limit, the spokesman was cited by the report as saying.


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


AL FIUME: Claims Registration Period Ends March 1
-------------------------------------------------
Creditors of Al Fiume GmbH have until March 1, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10.00 a.m. on 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 Nuernberg
         Meeting Hall 152/I
         Flaschenhofstr. 35
         Nuernberg
         Germany

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

The insolvency manager can be reached at:

         Stefan Waldherr
         Peuntgasse 3
         90402 Nuernberg
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 27, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Al Fiume GmbH
         Attn: Mina Willkommen and
               Piyusk Bharti, Managers
         Winklerstr. 1
         90403 Nuernberg
         Germany


BAU-TEC SEEVETAL: Claims Registration Period Ends March 26
----------------------------------------------------------
Creditors of Bau-Tec Seevetal GmbH have until March 26, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on April 16, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Lueneburg
         Hall 302
         Ochsenmarket 3
         21335 Lueneburg
         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:

         Heiko Fialski
         Johannes-Brahms-Platz 1
         20355 Hamburg
         Germany
         Tel: 040/8000480
         Fax: 040/800048111

The District Court opened bankruptcy proceedings against the
company on Jan. 23, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Bau-Tec Seevetal GmbH
         Attn: Lars Niemann, Manager
         Metzendorfer Str. 100
         21218 Seevetal
         Germany


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

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on April 23, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Ingolstadt
         Meeting Room 28 I
         Schrannenstr. 3
         85049 Ingolstadt
         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:

         Florian Fuechsl
         Leopoldstrasse 139
         80804 Muenchen
         Germany
         Tel: 089/361930-0
         Fax: 089/361930-199

The District Court opened bankruptcy proceedings against the
company on Jan. 26 2009s.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Beauty GmbH
         Ledererstr. 7
         85276 Pfaffenhofen
         Germany

         Attn: Johann Wieser, Manager
         Weissdornweg 23 a
         85276 Pfaffenhofen
         Germany


CONTINENTAL AG: S&P Downgrades Corporate Credit Rating to 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Germany-based automotive supplier
Continental AG to 'BB' from 'BBB-', following its analysis of
Continental's revised business plan and the renegotiation of
financial covenants.  The short-term corporate credit rating on
the group was lowered to 'B' from 'A-3'.  At the same time, the
ratings were removed from CreditWatch where they were placed with
negative implications on Dec. 15, 2008, on increasing concerns
about a possible covenant breach.  The outlook is negative.

"The downgrade reflects our view that Continental appears unlikely
to achieve our debt-protection requirements of funds from
operations to debt of 25% and debt to EBITDA of less than 3x,
which S&P formulated in September 2008," said Standard & Poor's
credit analyst Werner Staeblein.  "It also reflects the
refinancing risks the company faces in 2010 and the potentially
negative impact of Continental's majority ownership by Schaeffler
AG."

In view of likely lower earnings for 2009, S&P has revised its
financial expectations for 2010 and have concluded that the
expected improvement in debt-protection measures is unlikely to
materialize to the extent S&P had originally envisaged.

In December, Continental revised its earnings expectations for
2008, due to a substantial worsening of the environment in the
North American and European light vehicle markets.  It reduced its
full-year EBIT guidance for 2008 to "about 7.5%-8.0%" from "above
9.3%", originally expected at the beginning of the year.

Continental has extended its cost-cutting program, announced in
November 2008, to preserve cash.  It has postponed or stopped
capital expenditures for certain projects and will cut investments
in research and development in 2009.  S&P understands that
Continental plans to make no dividend payments in 2009.  However,
despite these measures, debt reduction will most likely take
longer than S&P had expected last September.

In January 2009, Continental renegotiated the financial covenants
for its EUR11.8 billion syndicated loan facility, which forms the
bulk of its debt.  Financial covenants for 2009 provide adequate
headroom, which may, however, become tight in 2010 if the
environment in the global auto markets deteriorates further.

The outlook is negative because of concerns that cash generated
from ongoing operations will most likely be insufficient to reduce
debt quickly.

"We expect Continental to be able to post low free operating cash
flow in 2009, and the company is likely to preserve cash by
lowering investments and cutting dividends," said Mr. Staeblein.
"At the same time, future cash flows might be further hampered by
unfavorable conditions in the auto industry."

S&P continues to expect the company to use its discretionary cash
flows to reduce debt.  The ratings do not currently contain
flexibility for larger debt-funded acquisitions, share
repurchases, or other forms of shareholder remuneration.


EURO-YACHT-TIEFERT GMBH: Claims Registration Period Ends Feb. 23
----------------------------------------------------------------
Creditors of Euro-Yacht-Tiefert GmbH have until Feb. 23, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on March 16, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Juergen Beil
         Hallerstrasse 76
         20146 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 22, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Euro-Yacht-Tiefert Gmbh
         Attn: Klaus-Dieter Tiefert, Manager
         Edionstrasse 20
         24145 Kiel
         Germany


MORE CONSULT: Claims Registration Period Ends February 17
---------------------------------------------------------
Creditors of More consult Travel & Logistic Service GmbH have
until Feb. 17, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 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 Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         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. Stephan Schlegel
         Hauptstrasse 83
         65760 Eschborn
         Germany
         Tel: 06196/779060
         Fax: 06196/7790620

The District Court opened bankruptcy proceedings against the
company on Jan. 27, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         MORE consult Travel & Logistic Service GmbH
         Attn: Volker Schumacher, Manager
         Grueneburgweg 85
         60323 Frankfurt am Main
         Germany


QIMONDA AG: Owes Winbond US$28.1 Million in Accounts Receivable
---------------------------------------------------------------
Kevin Chen at Taipei Times reports that computer memory chipmaker
Winbond Electronics Corp said that it had US$28.1 million in
unpaid accounts receivable from Qimonda AG.

Winbond Electronics said in a statement that it would stop
shipments to Qimonda and seek ways to mitigate the damage after
that company's filing for insolvency protection on Friday.
Winbond Electronics said, "As of today, the unpaid accounts
receivable for DRAM wafers shipped to Qimonda are about
NT$950 million.  In regard to the 16,000 wafers shipped to Qimonda
per month, Winbond will adopt a strategy of direct selling to deal
with the contingency."

According to Taipei Times, Winbond Electronics said that it would
maintain contact with Qimonda and keep track of related
information in the coming weeks.

        Qimonda Owes NT$3.4 Billion to Inotera Memories

Inotera Memories Inc. said in a statement that its unpaid accounts
receivable for DRAM wafers shipped to Qimonda were NT$3.4 billion.

Inotera Memories, Taipei Times relates, said that there were wafer
inventories that were intended for future shipment to Qimonda, but
it had decided to discontinue wafer starts and shipments to that
company.

                         About Qimonda

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business --  approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.

As reported by the Troubled Company Reporter on Jan. 26, 2009,
Qimonda AG and Qimonda Dresden OHG filed an application with the
local court in Munich, Germany, on January 23, 2009, to open
insolvency proceedings.  Their goal is to reorganize the companies
as part of the ongoing restructuring program.


QIMONDA AG: Saxony to Provide Further Aid, Reuters Says
-------------------------------------------------------
Sven Heitkamp at Reuters reports that the German state of Saxony
reiterated it is still willing to provide further aid to Qimonda
AG.

The report relates a government spokesman said Tuesday Saxony "is
still ready to help within its means" with a goal of keeping
technology in the state and ensuring workers retain their jobs.

Saxony's premier Stanislav Tillich met with Michael Jaffe,
Qimonda's insolvency administrator on Tuesday, the report
recounts.

The spokesman however notes no decisions were taken at the
meeting, the report says.

On Monday, January 26, Qimonda said following its insolvency
application, a comprehensive appraisal has been started in order
to quickly ascertain in what form the company's business
operations can be continued.

Qimonda said the team of the preliminary insolvency administrator
Dr. Michael Jaffe, in collaboration with the Qimonda management,
have been working intensively on this task since Friday.  Talks
are initially being held with all parties involved in Bavaria,
Saxony and Portugal.

The first job for several project teams is to assess the immediate
liquidity situation – in Germany and in Qimonda's crucial foreign
companies – as a prerequisite for any further measures.  In
addition, various options for continuing business activities in
the medium and long term are being evaluated with an open mind.
These options also include a potential process of finding
investors.

The employees at the Munich location were informed about the
current state of affairs by the preliminary insolvency
administrator in a works meeting on Monday.  The preliminary
financing of the insolvency fund has already been set in motion.
Talks are to be held at the production site in Porto and in Lisbon
at the beginning of February.  Production continues at all Qimonda
locations for the time being.

"It is still too early to make a well-founded assessment.  What is
already clear is that we are dealing with a highly complex
situation and an extremely capital-intensive business.  Therefore,
contributions from financially strong investors are required to
reach a sustainable solution," said Mr. Jaffe.

"The first generation of our Buried Wordline technology is already
surpassing our expectations.  This innovative technology is the
core of our company's future," said Thomas Seifert, Financial
Director and COO of Qimonda AG.  "We will fight to make the
competitive advantage gained in the development stage bear results
for Qimonda."

On January 23, 2009, Qimonda AG and Qimonda Dresden OHG filed an
application with the District Court of Munich to open insolvency
proceedings.  This was due to immediate illiquidity in the case of
Qimonda AG, and threatened illiquidity in the case of Qimonda
Dresden OHG.

                   Saxony's Earlier Rescue Plan
                     for Qimonda Turned Down

On Dec. 18, 2008, the TCR-Europe, citing The EE Times, reported,
Infineon Technologies AG declined to participate in the
federal state of Saxony's rescue plans for its unit Qimonda.

Infineon in a press statement on December 12, said it
appreciates both the federal state of Saxony's offer to support
Qimonda with a loan and the high regard for "Buried Wordline"
technology that the offer implies.

According to Infineon, the state of Saxony offered to grant a
loan of EUR150 million under regular market terms and conditions
to help rescue Qimonda.  Tied to this offer was the requirement
that Infineon make an "unconditional permanent contribution of
EUR150 million in cash".

However, as stated clearly to the state of Saxony at an early
point in the negotiations, this requirement exceeds Infineon's
possibilities by a wide margin, Infineon said.

"We deeply regret that the state of Saxony has not taken our
proposals into account," Infineon CEO Peter Bauer said.  "In spite
of the extremely difficult situation of the world market and the
semiconductor industry, Infineon has offered to provide a loan in
combination with the sale of a substantial package of Qimonda
shares to the state of Saxony.  This offer represents the largest
possible burden we can reasonably take on."

Infineon however noted it remains open to further negotiations
with the government of the state of Saxony.

According to Bloomberg News, the rescue aid will be used to
convert Qimonda's Dresden factory to making other types of chips.
It now needs to be approved by the European Commission, Bloomberg
stated.

Citing Qimonda spokesman Ralph Heinrich, Bloomberg disclosed the
company, which employed 3,200 people at its factory in Dresden,
the state capital of Saxony, as of Sept. 1, will cut 950 jobs
there as part of the restructuring plan.

                          About Qimonda

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business --  approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.


SELDI GMBH: Claims Registration Period Ends February 28
-------------------------------------------------------
Creditors of Seldi GmbH have until Feb. 28, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9.15 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 Wuerzburg
         Room 14
         Second Stock
         Tiepolostr. 6
         Wuerzburg
         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. Markus Schadler
         Hofstr. 3
         97070 Wuerzburg
         Germany
         Tel: 0931/452029-50

The District Court opened bankruptcy proceedings against the
company on Jan. 26, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Seldi GmbH
         Kaltenhausen Nr. 19
         97247 Eisenheim
         Germany

         Attn: Patrick Bachelart, Manager
         Ringstr. 4
         97279 Prosselsheim
         Germany


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


CHARTBUSTERS: High Court Grants Court Protection
------------------------------------------------
Mary Carolan at The Irish Times reports that Mr Justice Peter
Kelly has granted court protection to Chartbusters.

Mr Justice Kelly would appoint Neil Hughes as examiner to the
company, the report relates.  The judge, as cited by the report,
said the company is insolvent and would have a shortfall between
assets and liabilities of some EUR246,000 as a going concern and
of some EUR4.8 million if wound up.

The judge, the report says, agreed to appoint an examiner after
reports from the independent account and interim examiner
expressed the view the company had a reasonable prospect of
survival if certain conditions, including the closure of 17 of its
37 stores, are met.

According to the report, the number of expressions of interest by
potential investors had risen from 7 to 17.

The judge, the report adds, also took into account other creditors
were not opposing examinership.

The report however notes the judge accused the company's founder,
Richard Murphy, of "sharp practice" and "sleveenism" in his
treatment of a major creditor who had sought to wind up the
company.

Mr. Murphy, the report recounts, gave a post-dated check to
Winchurch Investments Ltd in an attempt to stave of the winding-up
petition brought by the company.  The report recalls Winchurch had
agreed to adjourn its winding up petition but was later informed
by Allied Irish Banks the post-dated check had been stopped
because it had been reported lost.

The judge was making Mr. Murphy personally liable for the legal
costs — estimated at some EUR20,000 — of that winding up petition,
the report states.

On Jan. 26, 2009, the TCR-Europe reported that according to RTE
Business, two of Charterbusters' creditors, Lombard Ireland and
Winchurch, opposed the examinership, claiming the group's core DVD
business is "dead".

The opposing creditors also raised concerns about aspects of the
group's management and the adequacy of the financial information
put before the court concerning the group, RTE Business disclosed.

They also complained about the group's diversification into
property acquisition and operating tanning booths, RTE Business
added.

On Jan. 9, 2009, the TCR-Europe, citing The Irish Times, reported
Mr Justice John Edwards appointed Neill Hughes, of Hughes Blake
Chartered Accountants, as interim examiner to Chartbusters, which
operates 37 home entertainment stores.

The Irish Times recalled Mr. McCarthy told Mr Justice Edwards in
the High Court that Chartbusters racked up debts of about EUR20
million.

Citing Mr. McCarthy, The Irish Times revealed the company owed
EUR12 million to Bank of Scotland (Ireland), KBC Bank, Lombard
Ireland and Friends First Finance Ltd., while landlords were being
owed EUR2 million.

ChartBusters' director Richard Murphy, as cited by The Irish
Times, said the company was currently unable to repay the interest
due on the loans and was servicing about EUR900,000 a year in
leasing payments.

The Irish Times stated group turnover had dropped to EUR12.2
million for the period to April 30, 2008, and costs, in particular
rent, had eroded profits.


WATERFORD WEDGWOOD: Peter Goulandris Resigns as Director
--------------------------------------------------------
Peter Goulandris has quit his post as director of Waterford
Wedgwood plc, RTE Business reports.

Mr. Goulandris, the report notes, is the brother-in-law of
chairman Dr Tony O'Reilly, who resigned earlier this month.

Citing Waterford Wedgwood director and former chief executive
Redmond O'Donoghue, the report discloses Dr. O'Reilly and Mr.
Goulandris - the main shareholders - had invested around EUR400
million in the company in the last four to five years.

On Jan. 15, 2009, the TCR-Europe reported that according to The
Irish Times, the two owns 52 per cent of the overall group.

The Irish Times recalled John Foley resigned as chief executive of
Waterford Crystal and stepped down from the board of Waterford
Wedgwood on January 13.

Mr. Foley also quit his post as president of Waterford Wedgwood
USA, RTE Business added.

The Irish Times noted his departure follows those of a number of
directors.

As reported in the TCR-Europe, Waterford Wedgwood plc along with
10 subsidiaries entered administration on January 5.  Angus
Martin, Neville Kahn, Nick Dargan and Dominic Wong of Deloitte
LLP, were appointed as joint administrators while David Carson,
partner of Deloitte in Ireland, was appointed Receiver of
Waterford Wedgwood plc, (the ultimate parent of the UK companies),
and a number of its trading subsidiaries.

The Waterford Wedgwood subsidiaries also in administration are:

   Waterford Wedgwood UK Plc
   Wedgwood Limited
   Josiah Wedgwood & Sons Limited
   Josiah Wedgwood & Sons (Exports) Limited
   Waterford Wedgwood Retail Limited
   Royal Doulton Ltd
   Royal Doulton (UK) Limited
   Royal Doulton Overseas Holdings Ltd
   Stuart & Sons Limited
   Statum Limited

The companies are involved in the manufacture, wholesale and
retail of Waterford crystal, Wedgwood fine china and Royal Doulton
fine china products around the world.  In the UK there are
approximately 1,900 staff working across manufacturing and retail
and Worldwide there are approximately another 5800 employees
covering the USA, Germany, Ireland, Canada, Australia, Indonesia,
Japan and Pan Asia.

In a statement, administrator Deloitte said that in recent years,
the companies benefited from significant shareholder support as
exhaustive efforts were made by the management team to restructure
the businesses.  However, as trading conditions deteriorated, it
became apparent that a restructuring of the businesses could not
be achieved in an acceptable timescale.

Consequently management began looking at the alternative strategy
of trying to find a buyer for the businesses which would also have
involved a comprehensive financial restructuring.  While
considerable progress was made, no firm offer was secured.  The
current global economic conditions have continued to affect the
business and the Companies have needed the protection of
administration.

Waterford Wedgwood plc, (the ultimate holding company), is an
Irish company with manufacturing operations in Ireland.  The Irish
businesses in total employ approximately 800 people.  The group
also has manufacturing operations in the UK, Indonesia and
Germany.

The UK head office is located in London and employs 6 people.  The
Irish head office is located in Waterford, Ireland  and employs 14
people

Manufacturing is undertaken in Barlaston in the UK, the Irish
Republic and Indonesia.  The approximate number of manufacturing
employees in each location is 600, 450 and 1500 respectively.

In the UK, there are 19 retail stores which employ 170 people.  In
addition there are approximately 120 retail concessions.  The
retail operations are spread throughout the UK.  There are also
retail outlets around the world but these are operated by separate
overseas companies which are continuing to trade and which are not
in insolvency.

As reported in the TCR-Europe on Jan. 9, 2009, the joint
administrators of Waterford Wedgwood UK Plc and the
receiver of Waterford Wedgwood Plc, respectively, entered
into a letter of intent with KPS Capital Partners, LP, a New York-
based private equity limited partnership, in connection with the
proposed acquisition by KPS of assets of the group worldwide,
including certain assets of Waterford, Wedgwood, and Royal
Doulton, among others.

The joint administrators and receiver are working with KPS to
expeditiously agree the terms upon which a transaction can be
completed in the interests of stakeholders.


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


FERRETTI SPA: Defaults on Debt After Orders Dropped
---------------------------------------------------
Martin Arnold at The Financial Times reports that Italian yacht
builder Ferretti SpA has defaulted on its debts, citing sinking
sales.

The yacht builder, the report recounts, called in Rotchschild this
month to advise on talks with its banking syndicate, led by Royal
Bank of Scotland and Mediobanca, about restructuring its
EUR1 billion-plus debts.

The report relates Ferretti, which was acquired by private equity
group Candover for about EUR1.7 billion in October 2006 from
Permira, defaulted on an interest payment Friday last week.

Citing people familiar with the matter, the report discloses the
yacht builder said it was hit by "a short-term liquidity squeeze"
caused by falling orders, slowing stage payments for yachts under
construction and rising cancellations.

The report recalls Ferretti experienced a sharp drop in orders at
the Monaco and Fort Lauderdale yacht shows in October following
the collapse of Lehman Brothers in September as wealthy customers
have stopped spending freely.

The default, the report says, could hamper Candover's plans to
raise a new EUR5 billion fund this year.

Candover, the report recalls, ditched a planned flotation of
Ferretti, owner of the Pershing, Riva and CRN brands, on the Milan
stock exchange a few months ago.

Founded in 1968, Ferretti specializes in luxury yachts.  It has
3,300 staff, 1,000 of which work near Forli in Italy.


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


AGRO-TRANSFER LLP: Proof of Claim Deadline Slated for March 6
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Agro-Transfer insolvent on Dec. 23, 2008.

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

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Jumabaev Str. 109-302
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


ALTYNBEKOV & K: Creditors Must File Claims by March 6
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Altynbekov & K insolvent.

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

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


BAGARA-2007 LLP: Claims Filing Period Ends March 6
--------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Bagara-2007 insolvent.

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

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


KEREMET LLP: Creditors' Proofs of Claim Due on March 6
------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Keremet insolvent.

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

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel:  8 (7232) 24-06-50


KLONDIKE LTD: Claims Registration Period Ends March 6
------------------------------------------------------
LLP Klondike Ltd. has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim to:

         LLP Klondike Ltd.
         Suleimenov Str. 58
         Kyzylorda
         Kazakhstan


M-INVEST GROUP: Proof of Claim Deadline Slated for March 6
----------------------------------------------------------
LLP M-Invest Group has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim to:

         LLP M-Invest Group
         Amangeldy Str. 98/71
         Kurmangazy
         Almaty
         Kazakhstan


MODULE STROY: Creditors Must File Claims by March 6
---------------------------------------------------
LLP Construction Company Module Stroy has declared insolvency.
Creditors have until March 6, 2009, to submit written proofs of
claim to:

         LLP Construction Company Module Stroy
         Atambaev Str. 29
         Atyrau
         Kazakhstan


SAD-GROUP LTD: Claims Filing Period Ends March 6
------------------------------------------------
LLP Sad-Group Ltd. has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim to:

         LLP Sad-Group Ltd.
         Timiryazev Str. 42
         Almaty
         Kazakhstan


YAR STROY MIR: Creditors' Proofs of Claim Due on March 6
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Construction Company Yar Stroy Mir 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 North Kazakhstan
         Jumabaev Str. 109-302
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


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


NAIMAN JSC: Creditors Must File Claims by February 27
-----------------------------------------------------
JSC Naiman has declared insolvency.  Creditors have until Feb. 27,
2009, to submit proofs of claim at:

         JSC Naiman
         Lenin Str. 221
         Osh
         Kyrgyzstan
         Tel: (+996 3222) 2-92-86


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


ICESAVE: Dutch Banks Incur EUR230 Mln Loss on Bankruptcy
--------------------------------------------------------
Dutch banks suffered a loss of around EUR230 million (about US$294
million) as a result of Icesave's bankruptcy, Xinhua reports
citing the Dutch Central bank.

Xinhua relates that according to the central bank, Dutch banks
paid back EUR212 million (US$271 million) to its customers, while
an additional EUR230 million (US$294 million dollars) went to the
administration costs of making these paybacks.

According to Xinhua, some 144,000 individuals and organizations in
the Netherlands have a combined EUR2 billion  (US$2.56 billion
dollars) deposited with Icesave.

On Dec. 10, 2008, the TCR-Europe, citing Xinhua, reported that the
Dutch government agreed to pay out part of Dutch savers' lost
deposits with Icesave, whose parent Landsbanki was put under
government control in October.

Under the terms of the guarantee scheme initially agreed by Dutch
Finance Minister Wouter Bos and his Icelandic counterpart, the
first EUR20,887 of each savings account will be paid by Iceland
while the Netherlands will reimburse the rest, to a maximum of
EUR100,000, Xinhua recalled.

The balance between EUR20,887 and EUR100,000 was originally
expected to be funded by Dutch banks, each paying a sum in line
with the size of their share in the market, Xinhua recounted.
However, Xinhua noted this was vehemently opposed by Dutch
banks, especially market leader Rabobank, which has a 40 percent
share in the Dutch savings market.

Mr. Bos, as cited by Xinhua, said that Dutch banks will only have
to fund the difference between the sum guaranteed by Iceland and
some EUR38,000, while the remainder, some EUR62,000, will be paid
by the Dutch treasury.

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

                         About Icesave

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


===========
P O L A N D
===========


VISTULA & WOLCZANKA: Repayment Deadline on US$75.5 Mln Debt Looms
-----------------------------------------------------------------
Polish apparel maker Vistula & Wolczanka SA won't sell a stake to
raise capital for debt repayment because of the weak market
situation, Bloomberg News reports citing Puls Biznesu.

According to the report, Puls said the company has 63 days to
repay PLN250 million (US$75.5 million) to Fortis Bank and is now
seeking a loan for up to 10 years, otherwise, it may "cease to
exist".

Vistula had PLN500 million revenue last year, Bloomberg News
notes.


=============
R O M A N I A
=============


* ROMANIA: May Freeze Wages, Halt Hiring to Cut Budget Deficit
--------------------------------------------------------------
Romania's government may freeze public sector wages for six months
and halt hiring to trim the budget deficit, Bloomberg News reports
citing the vice president of one of the governing parties.

According to the report, the European Union estimates Romania's
2009 budget gap at 7.5 percent of GDP if the government takes no
measures to narrow it.

The report relates the government predicts Romania's economic
growth will slow to 2.5 percent this year from an annual 9.1
percent rate in the third quarter last year as demand for Romanian
exports wanes and companies fire more workers.

Budget talks between ministers and leaders of the Social Democrat
Party and Liberal Democrat Party, who form the governing
coalition, will continue for the two days, Bloomberg News cited
Liberal Democrat Vice President Gheorghe Flutur as saying.

The report discloses government ministers and senior politicians
have debated since last week how to keep the 2009 budget gap at no
more than 2 percent of gross domestic product compared with about
5 percent of GDP last year.

"We discussed several possibilities," Bloomberg News quoted
Mr. Flutur as saying.  He said the government plans to present a
budget plan after a Cabinet meeting today, January 29.

Bloomberg News recalls Romanian Prime Minister Emil Boc said
Jan. 23 that the 2009 budget will allocate 20 percent of all
spending to investments in areas such as infrastructure to
stimulate the economy.


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


ANDREYEVSKAYA TIMBER: Creditors Must File Claims by March 23
------------------------------------------------------------
Creditors of LLC Andreyevskaya Timber Company have until Mar. 23,
2009, to submit proofs of claims to:

         M. Nikolayev
         Insolvency Manager
         Post User Box 51
         Lyzina Str. 28
         664009 Irkutsk
         Russia

The Arbitration Court of Irkutsk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A19-9425/08–63.


CITIBANK ZAO: Fitch Assigns 'D' Individual Rating
-------------------------------------------------
Fitch Ratings has assigned Russia's ZAO Citibank a Long-term
Issuer Default Rating of 'A-' (A minus) with a Negative Outlook.

ZAO Citibank's Long-term IDR is driven by potential support from
its ultimate shareholder, Citigroup Inc. (Citigroup,
'A+'/Stable/'F1+').  Fitch believes that, in addition to
Citigroup's strong ability to provide support (as reflected in its
ratings), Citigroup would exhibit a very high propensity to
support its Russian subsidiary given ZAO Citibank's ownership
structure (100% owned by Citigroup via US-based subsidiaries), the
close integration of ZAO Citibank within the rest of the group and
the importance of the international franchise to the broader
Citigroup.

The Negative Outlook reflects the potential downward revision of
Russia's Country Ceiling ('A-'(A minus)).  Russia's Country
Ceiling captures transfer and convertibility risks and limits the
extent to which support from Citigroup can be factored into ZCB's
Long-term IDR.

ZAO Citibank's Individual Rating of 'D' reflects the high degree
of concentration on both sides of its balance sheet, reliance on
short-term funding, the volatility of customer deposits, and the
potential impact of the deteriorating operating environment on
future asset quality and liquidity.  However, ZCB's Individual
Rating also factors in its good asset quality and profitability to
date, significant holdings of liquid assets and its advanced (for
the Russian market) standards of risk management.  Capitalization
is currently adequate.

Current accounts comprised as much as 80% of total customer
accounts (69% of total liabilities) at end-Q308.  Customer account
outflow was a significant 17% during October-November 2008.
However, this had been reversed in full by mid-January 2009, by
which time liquid assets (cash and equivalents and very short-term
interbank placements) covered 71% of customer funding.

ZCB is a universal bank with total assets of US$7.5 billion at
end-Q308.  It was the 20th largest Russian bank by total assets at
that date with a market share of about 1%.  ZCB's corporate
business focuses on the local subsidiaries of Citigroup's global
customers and larger Russian companies.  ZCB's consumer business,
launched in 2002, targets middle class customers.

ZCB's ratings have been assigned are:

  -- Long-term IDR: 'A-' (A minus); Outlook Negative
  -- Short-term IDR: 'F2'
  -- Support Rating: '1'
  -- National Long-term Rating: 'AAA(rus)'; Outlook Stable
  -- Individual Rating: 'D'


KARITSA-LES LLC: Creditors Must File Claims by February 23
----------------------------------------------------------
Creditors of LLC Karitsa-Les (Timber) have until Feb. 23, 2009, to
submit proofs of claims to:

         A. Kondratyev
         Insolvency Manager
         Office 23
         Borshodskaya Str. 46
         Cherepovets
         162600 Vologodskaya
         Russia

The Arbitration Court of Vologodskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A13-10351/2008.

The Debtor can be reached at:

         LLC Karitsa-Les
         Kolkhoznaya Str. 30
         Vokhtoga
         Gryazovetskiy
         Vologodskaya
         Russia


LES-PROM LLC: Creditors Must File Claims by February 23
-------------------------------------------------------
Creditors of LLC Les-Prom (Forestry) have until Feb. 23, 2009, to
submit proofs of claims to:

         I. Tifanov
         Insolvency Manager
         Building 1
         Volodarskogo Str. 36
         163000 Arkhangelsk
         Russia

The Arbitration Court of Arkhangelskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A05–10666/2008.

The Debtor can be reached at:

         LLC Les-Prom
         Pochtovaya Str. 2A
         Verkhnyaya Toyma
         Arkhangelskaya
         Russia


MIRAX LLC: Fitch Downgrades Issuer Default Ratings to 'B-'
----------------------------------------------------------
Fitch Ratings has downgraded Russian construction and property
company LLC Mirax Group's Long-term foreign and local currency
Issuer Default Ratings to 'B-' (B minus) from 'B', respectively,
and downgraded the company's National Long-term rating to 'BB-
(rus)' (BB minus) from 'BBB-(rus)' (BBB minus).  The Short-term
IDR of 'B' and the company's other ratings remain on Rating Watch
Negative.  The agency has simultaneously withdrawn all LLC Mirax
Group's ratings and assigned them to Mirax Group Holding B.V.

The change in the rated entity reflects group structure changes
completed in 2008, which resulted in Mirax Group Holding B.V
replacing LLC Mirax Group as the parent company of the
consolidated group, with LLC Mirax Group becoming a subsidiary.
Fitch's analysis has concluded that the group restructuring has
had a neutral impact on the credit profile of the group.

The downgrade of the ratings primarily reflects heightened
concerns about Mirax's weak liquidity position.  The company has
substantial debt coming due in 2009 (US$601 million equivalent),
with up to US$395 million potentially maturing in Q109, which
could possibly include a US$180 million 2011 Credit Linked Note
should investors choose to exercise a put option valid from 20
March 2009.  Mirax currently has insufficient back-up liquidity to
meet debt repayments of this magnitude, with cash of US$109
million as of December 31, 2008 and no committed undrawn back-up
facilities.

Mirax's management is trying to implement a series of emergency
measures to offset these liquidity shortfalls.  These include
potential asset sales and a possible equity injection from
majority shareholder Sergei Polonsky during Q109 (dependent on the
success of his own asset disposals), as well the collection of
approximately US$600 million of accounts receivable during 2009.
However, these actions alone may not raise enough cash to cover
Mirax's short-term debt maturities, especially if the 2011 CLN put
option is exercised in Q109.  The company is therefore also
talking to some of its lenders in an attempt to roll-over a large
portion of its short-term bank debt as well as engaging the 2011
CLN holders in an attempt to postpone the exercising of the put
option.

However, none of these measures have yet to be formally achieved,
and their success therefore cannot be guaranteed, especially given
the current market climate.  The Russian real estate market
continues to weaken, with clear evidence of falling prices and
volumes emerging as economic conditions worsen and lending to the
sector contracts.  This in Fitch's opinion will make asset sales
difficult, reduce the willingness of lenders to roll-over debt and
potentially slow down the receipt of accounts receivables.  Fitch
also notes that Mirax was not included on the Russian government's
list of corporates qualifying for potential state support,
published in December 2008.

Given the uncertainty surrounding Mirax's ability to successfully
implement its emergency measures, all ratings remain on RWN.
Fitch will likely review Mirax's liquidity position again in
February 2009, at which point the company's ratings could be
downgraded, possibly by more than one notch, if Mirax has failed
to significantly improve its liquidity position.

Although the downgrade of Mirax's ratings has been heavily driven
by its current liquidity situation, it also reflects other
concerns, including worries about value leakage from the group.
According to the H108 accounts, as of June 30, 2008 Mirax had made
RUR14.6 billion (US$441 million) of loans to companies owned by
Mirax's shareholders.  This indicates that significant cash
resources have been diverted from the group to the shareholders.
This appears to be to the detriment of Mirax's creditors, as the
loans have denied the company access to significant amounts of
cash at a time of tight liquidity.  Fitch is concerned that
stringent mechanisms do not exist to prevent something similar
happening again in the future.

Fitch also has concerns about currency risks.  Approximately 88%
of Mirax's debt is denominated in US$, while income tends to be
denominated in RUR, thereby exposing Mirax to the risk of inflated
debt levels if the rouble were to depreciate further.  A degree of
natural hedging does exist, given that approximately 70-80% of
Mirax's sales are US$-linked (sales prices are set in US$ but
received in RUR), although if the RUR continues depreciating it
may prove uncompetitive to continue such a policy, as effectively
the final sales price would be inflated in RUR terms at a time
where market prices are falling.


NIZHEGORODSKIY MOTOR-VAN: Creditors Must File Claims by Feb. 23
---------------------------------------------------------------
Creditors of CJSC Nizhegorodskiy Motor-Van Plant have until
Feb. 23, 2009, to submit proofs of claims to:

         V. Mayorov
         Temporary Insolvency Manager
         Papanina Str. 14/116
         150065 Yaroslavl
         Russia

The Arbitration Court of Nizhegorodskaya commenced bankruptcy
supervision procedure.  The case is docketed under Case No. A43-
30616/2008-27-215.


NOVOSIBIRSKIY ELECTRO: Creditors Must File Claims by February 23
----------------------------------------------------------------
Creditors of OJSC Novosibirskiy Electro-Technical Reinforcing
Steel Plant have until Feb. 23, 2009, to submit proofs of claims
to:

         V. Yakovlev
         Insolvency Manager
         Post User Box 102
         656056 Barnaul
         Russia

The Arbitration Court of Altay commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A02-1249/2008.

The Debtor can be reached at:

         OJSC Novosibirskiy Electro-Technical
         Reinforcing Steel Plant
         Choros-Gurkina Str. 29
         Novosibirsk
         Russia


SVEZA-DREV LLC: Creditors Must File Claims by February 23
---------------------------------------------------------
Creditors of LLC Sveza-Drev (Forestry) have until Feb. 23, 2009,
to submit proofs of claims to:

         P. Baranov
         Insolvency Manager
         Sudostroitelnaya Str. 17
         Cherepovets
         162603 Vologodskaya
         Russia

The Arbitration Court of Vologodskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A13–9643/2008.

The Debtor can be reached at:

         LLC Sveza-Drev
         Sudostroitelnaya Str. 17
         Cherepovets
         162603 Vologodskaya
         Russia


VOLGOGRADSKIY ENGINE: Creditors Must File Claims by March 23
------------------------------------------------------------
Creditors of OJSC Volgogradskiy Engine-Building Plant have until
March 23, 2009, to submit proofs of claims to:

         Ye. Slushkin
         Insolvency Manager
         Post User Box 1034
         400105 Volgograd
         Russia

The Arbitration Court of Volgogradskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A12–13054/2008.

The Debtor can be reached at:

         OJSC Volgogradskiy Engine-Building Plant
         Shosse Aviatorov 8
         400048 Volgograd
         Russia


WOODWORKING PLANT LLC: Creditors Must File Claims by February 23
----------------------------------------------------------------
Creditors of LLC Woodworking Plant (TIN 3525148210) have until
Feb. 23, 2009, to submit proofs of claims to:

         N. Kulikova
         Temporary Insolvency Manager
         Office 19
         Chernyshevskogo Str. 30
         160014 Vologda
         Russia

The Arbitration Court of Vologodskaya will convene at 10:30 a.m.
on March 17, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. A13-8741/2008.

The Court is located at:

         The Arbitration Court of Vologodskaya
         Hall 4
         Gertsena Str. 1a
         Vologda
         Russia

The Debtor can be reached at:

         LLC Woodworking Plant
         Leningradskiy tupik 10
         Vologda
         Russia


YEGORYEVSKIY FLAX: Creditors Must File Claims by February 23
------------------------------------------------------------
Creditors of OJSC Yegoryevskaya Flax-Processing Plant have until
Feb. 23, 2009, to submit proofs of claims to:

         O. Baranov
         Temporary Insolvency Manager
         Post User Box 0705
         170007 Tver
         Russia

The Arbitration Court of Tverskaya will convene at 10:00 a.m. on
March 16, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. A66-8942/2008.

The Debtor can be reached at:

         OJSC Yegoryevskaya Flax-Processing Plant
         Pervomayskiy
         Kashinskiy
         Tverskaya
         Russia


* CITY OF BRATSK: S&P Keeps 'B-' Issuer Rating on Negative Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services announced that it was keeping
its 'B+' long-term issuer credit and 'ruA+' Russia national scale
ratings on the City of Bratsk on CreditWatch, where they had been
placed with negative implications on Oct. 30, 2008, on increased
refinancing risks.  At the same time, S&P affirmed the ratings.

Bratsk is located in Irkutsk Oblast (B+/Watch Neg/--), which has a
new governor since late 2008.

"The ratings remain on CreditWatch due to the continuing high
risks related to uncertainties about the financial policy of the
new administration, combined with the worsening macroeconomic
situation in Russia," said Standard & Poor's credit analyst Irina
Pilman.

S&P expects Bratsk's debt service to be higher in 2009 than in
2008.  The concentration of payments on refinanced debt of
RUR275 million (equivalent to 7.1% of total revenues budgeted for
2009) in late November and in December 2009 will exacerbate
refinancing risks.

The city's financial flexibility remains low, as oblast and
federal subsidies made up 36.9% of total revenues in 2008 and are
scheduled to comprise a similar level in the 2009 budget.  If
subsidies from the oblast are not timely and are not transferred
in full in the course of the year, the city's liquidity risks
could increase.

At year-end 2008, Bratsk had cash amounting to RUR212.6 million
(which equals only about three weeks of operating expenditures).
Moreover, the cash is designated for certain expenditures in 2009
and is not deemed to be free according to Standard & Poor's
definition.

S&P plans to resolve the CreditWatch placement within the next two
months, after S&P obtains a better understanding of the city's
revised financial plan and debt policy for 2009–2010.

"We could lower the ratings if S&P consider that the revenue plan
and debt policy will be unlikely to prevent a sharp contraction of
the city's budget or alleviate upcoming liquidity risks," said Ms.
Pilman.

S&P could affirm the ratings if the city provides a plan for 2009–
2010 that details sources of revenues and expenditure cuts likely
to alleviate the expected budget contraction, as well as
refinancing the city's debt.


* RUSSIA: Pretax Profit of Top 30 Banks Down 7.3% in 11M08
----------------------------------------------------------
Russia's 30 largest banks saw their pretax profit for the first 11
months of 2008 dropped by 7.3% to RUR293.3 billion(US$8.9
billion)on the same period of 2007, RIA Novosti reports citing the
Central Bank.

The report however notes their assets grew in January-November
2008 by 32.5% to RUR18.5 trillion (US$561 billion).

The top 30 includes state savings bank Sberbank, VTB, Gazprombank,
Raiffeisen Bank and Rosbank, the report discloses.


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


BANCO SANTANDER: Offers EUR1.38 Bln to Madoff-Exposed Clients
-------------------------------------------------------------
Banco Santander SA offered EUR1.38 billion to its private banking
clients who were affected by the Madoff scam through investments
in its subfund, Optimal Strategic US Equity fund.

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

The Spanish bank's offer gives private banking clients the right
to exchange their investments in Optimal Strategic for preferred
securities with an annual coupon of 2% and callable by Santander
after 10 years.

Charles Penty and Katherine Burton at Bloomberg News said in a
Jan. 28 report that Santander's settlement offer may elicit
similar proposals from firms such as Bank Medici AG, the Vienna-
based firm that funneled US$3.2 billion to Madoff, the most among
European banks, and Geneva-based Union Bancaire Privee, with
US$700 million.

"Other banks are going to see this and customers are going to say,
'What about us? Are you going to make a similar offer to us?'"
Marvin Pickholz, a litigation attorney at Duane Morris in New York
and former U.S. Securities and Exchange Commission enforcement
official, was quoted by Bloomberg News as saying.

The transaction, Santander said, will result in a EUR500 million
pre-tax cost which has been fully-booked against its accounts for
2008.

The bank said December 14 it has EUR2.33 billion exposure to the
Madoff scam, of which EUR2.01 billion belong to institutional
investors and international private banking customers.  The
remaining EUR320 million, the large majority of which are
structured products partially indexed to the performance of
Optimal Strategic, are part of the investment portfolios of the
bank's private banking customers in Spain, who are qualifying
investors.

Santander said it also has a proprietary position of EUR17 million
through another investment fund.

Various reports say investors sued the bank Monday in U.S. federal
court in Miami alleging gross negligence and breach of fiduciary
duty.

According to the Associated Press, the lawsuit, which is seeking
class-action status, contends there was a "plethora of red flags"
that should have alerted the bank that Madoff was running what the
lawsuit says was Ponzi scheme.

"Many clients have lost all their money on this financial scandal,
money they had earlier deposited with the bank that they trusted,"
The Wall Street Journal quoted Luis Bericat, a lawyer at Cremades
& Calvo-Sotelo, as saying.  The law firm is representing dozens of
Santander clients who lost money through products invested with
Mr. Madoff, the Journal says.

Santander meanwhile said it "has acted at all times with the due
diligence in the management of its clients' investments in the
Optimal Strategic fund."

"The Santander Group would like to note that Madoff Securities was
a broker dealer authorized, registered and supervised by the SEC
and was also authorized as an investment advisor by the U.S.
Financial Industry Regulatory Authority (FINRA).  As the SEC has
publicly noted, Madoff Securities was regularly subject to
inspections by this supervisory agency during the last number of
years, without its reputation or standing being at all doubted by
the market or the U.S. supervisory authorities," the bank said in
a January 27 statement.

The bank said it is considering appropriate legal actions.

Meanwhile, Bloomberg News reports the bank will close seven hedge
funds run by its Optimal Investment Services unit.

According to Bloomberg News, Santander's Geneva-based Optimal said
in a separate statement it plans to shut down the Arbitrage,
Multi-Strategy, European Opportunities, US Opportunities, Asian
Opportunities, Global Opportunities and Global Trading funds.

Headquartered in Madrid, Spain, Banco Santander, S.A. (NYSE:STD)
-- http://www.santander.com/-- is a financial group that offers a
range of financial products.  At the primary level, the Bank's
operating units are segmented by geographical areas, such as
Continental Europe, United Kingdom and Latin America.  The primary
level of segmentation includes the Financial Management and Equity
Stakes segment.  The Continental Europe segment covers all retail
banking (including Banif, the specialized private bank), wholesale
banking and asset management, and insurance conducted in Europe,
with the exception of the operations of the Bank's subsidiary,
Abbey National plc (Abbey).  The United Kingdom (Abbey) segment
includes the operations of Abbey, which focuses on retail banking
in the United Kingdom.  The Latin America segment includes the
financial activities conducted via the Bank's subsidiaries.  In
May 2008, it sold Antonveneta to Banca Monte dei Paschi di Siena.
On October 14, 2008, the Company bought the remaining 75.65% it
did not own in Sovereign Bancorp.


CEMEX SAB: Restructures US$4 Billion Short-Term Debt
----------------------------------------------------
CEMEX, S.A.B. de C.V. said it has successfully completed its
refinancing plan.

The Wall Street Journal relates the cement maker had restructured
US$4 billion in short-term debt, a day before it is expected to
post its first quarterly loss in a decade.  The Journal says based
on median estimate of seven analysts polled by Dow Jones
Newswires, the company, heavily exposed to the U.S. housing
market, is expected to show a net loss of US$242 million in the
last quarter of 2008.  CEMEX is scheduled to release its quarterly
results today, Thursday, January 29.

CEMEX had previously announced that it had selected five banks to:

   i) negotiate new long-term syndicated facilities
      to replace existing short-term bilateral facilities;

  ii) extend the maturity by one year of a portion of the
      US$3.0 billion Rinker Group Limited acquisition
      syndicated loan facility due in December 2009; and

iii) amend the leverage ratio covenant, among other
      conditions, of certain existing syndicated loan
      facilities.

The final key components of the refinancing plan include:

    * US$2.3 billion of short-term bilateral
      facilities originally scheduled to mature
      in 2009 and early 2010 were refinanced in two
      long-term syndicated facilities.  The final
      maturity for the amounts refinanced in these new
      long-term facilities is February 2011, with
      US$607 million amortizing in 2009 and
      US$536 million amortizing in 2010.

    * CEMEX extended to December 2010 US$1.7 billion
      of the US$3 billion syndicated loan facility
      which was originally due in December of 2009.

    * CEMEX amended and increased in December 2008,
      among other terms, the leverage ratio provisions
      in its existing syndicated facilities.  The new
      leverage ratio requirement at the CEMEX, S.A.B.
      de C.V. level is a Net Debt of no more than
      4.5 times the trailing-twelve-month EBITDA in
      December 31, 2008, increasing to 4.75 times in
      June 30, 2009, and gradually decreasing to
      3.5 times by September 30, 2011 and thereafter.

Rodrigo Treviño, CEMEX's Chief Financial Officer, said: "We are
pleased with the outcome of this refinancing, as it demonstrates
the health of CEMEX's business model and it is evidence of the
support of our banks.  This was another important step to
strengthen our capital structure and to lengthen the maturity
profile of our debt."

CEMEX, S.A.B. de C.V. (NYSE: CX) -- http://www.cemex.com/-- is a
holding company primarily engaged, through its operating
subsidiaries, in the production, distribution, marketing and sale
of cement, ready-mix concrete, aggregates and clinker.  The
company is a global cement manufacturer with operations in North
America, Europe, South America, Central America, the Caribbean,
Africa, the Middle East, Oceania and Asia.  As of December 31,
2007, the company's main cement production facilities were located
in Mexico, the United States, Spain, the United Kingdom, Germany,
Poland, Croatia, Latvia, Venezuela, Colombia, Costa Rica, the
Dominican Republic, Panama, Nicaragua, Puerto Rico, Egypt, the
Philippines and Thailand.  On August 28, 2007, CEMEX completed the
acquisition of 100% of the Rinker Group Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 23, 2009, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Cemex S.A.B. de C.V. and
Cemex's key operating subsidiaries (Cemex Espana, S.A., Cemex
Mexico S.A. de C.V., and Cemex Inc.) to 'BB+' from 'BBB-', and
placed the ratings on CreditWatch with negative implications,
meaning that the rating could either be lowered or affirmed
following the completion of S&P's review.  The long-term Mexican
national scale rating on Cemex also was lowered, to 'mxAA-' from
'mxAA'.  At the same time, S&P lowered its rating on Cemex's
fixed-to-floating callable perpetual debentures to 'BB' from
'BB+'.

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


MBS BANCAJA: Moody's Assigns (P)B1 Rating on EUR30 Mil. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned these provisional ratings
to the series of residential mortgage-backed securitization bonds
to be issued by MBS BANCAJA 6 Fondo de Titulizacion de Activos, a
Spanish Asset Securitisation Fund created by Europea de
Titulizacion, S.G.F.T, S.A.:

  - (P)Aaa to the EUR904.0 million Series A notes
  - (P)Aa3 to the EUR37.5 million Series B notes
  - (P)Baa1 to the EUR28.5 million Series C notes
  - (P)B1 to the EUR30.0 million Series D notes

The ratings address the expected loss posed to investors by the
legal final maturity (May 2052).  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal on Classes A, B, C and D at par on or before
the rated final legal maturity date.  The ratings do not address
the full redemption of the notes on the expected maturity date.
Moody's ratings address only the credit risks associated with the
transaction.  Other non-credit risks have not been addressed but
may have a significant effect on the yield to investors
The MBS BANCAJA 6 FTA transaction is a cash securitization of
loans granted to individuals and secured by a first lien mortgage
guarantee, with different types of mortgage properties and loan
purposes.  All of the mortgage loans were originated by Bancaja,
which will continue to service them.

According to Moody's, this deal benefits from several strengths,
including these: (1) a reserve fund that is fully funded at
closing to cover any potential shortfall in interest and
principal; (2) an 18-month artificial write-off mechanism; and (3)
a relatively good portfolio quality in terms of weighted average
LTV.

However, the transaction poses several challenging features,
namely: (1) 46.88% correspond to second homes and for a further
6.24% there is no data available on this characteristic; (2) the
transaction is not protected by a swap so it is exposed to
interest rate risk; (3) 13.11% of the portfolio corresponds to
debt consolidation; (4) 30.39% of the portfolio is provided to
self employed borrowers and; (5) there is geographical
concentration in the region of Valencia (50.19%); and (6) pro-rata
amortization of the notes is allowed under certain scenarios.
These increased risks were reflected in the ratings assigned.

As of December 31, 2008, the provisional portfolio comprised 9,739
loans.  The loans have been originated between 2003 and 2008, with
a weighted average seasoning of 1.19 years.  The interest rate,
which is floating for all the loans is referenced to 12 months
Euribor.  The weighted average interest rate of the pool is
currently 5.90%.  All the loans are secured by a first-lien
mortgage guarantee.  The total weighted average loan-to-value is
60.90%

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

Moody's based the provisional ratings primarily on: (i) an
evaluation of the underlying portfolio of loans; (ii) historical
performance and bank' internal ratings information; (iii) the swap
agreements hedging the interest rate risk; (iv) the credit
enhancement provided by the reserve fund, the subordination of the
notes, and the excess spread; and (v) the legal and structural
integrity of the transaction .  The key parameters used to
calibrate the loss distribution for this portfolio include a MILAN
Aaa CE of 11.32 % and an Expected Loss of 2.50%

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

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings represent Moody's preliminary
opinion.  Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavor to assign
definitive rating to the Notes.  A definitive rating may differ
from a provisional rating.


NOZAR SA: Alvatransa Seeks Court Nod on Administration
------------------------------------------------------
Alvatransa, a creditor of Spain's Nozar SA, has asked a judge to
put the company into administration, Robert Hetz and Ben Harding
at Reuters report citing court documents.

Reuters relates statement from the Madrid commercial court said
the judge is studying the request.

Citing the website of newspaper El Mundo, Reuters discloses that
Nozar, the unlisted firm controlled by the Nozaleda family, racked
up debts of EUR4 billion.

Reuters notes El Mundo said that should Nozar suspend debt
payments, it would mark the second largest corporate default in
Spanish history.

On March 11, 2008, the TCR-Europe reported that according to
Bloomberg, Alvatransa asked a commercial court in Madrid, Spain to
initiate insolvency proceedings against Nozar.

Avaltansa was demanding repayment from Nozar of a EUR312,622
(US$480,062) debt, Bloomberg stated.


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


CHRISTIAN UND ELISABETH: Creditors Must File Claims by Feb. 5
-------------------------------------------------------------
Creditors owed money by JSC Christian und Elisabeth Matti are
requested to file their proofs of claim by Feb. 5, 2009, to:

         Christian Matti
         Liquidator
         Ebnit
         3792 Saanen
         Switzerland

The company is currently undergoing liquidation in Gstaad.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 9, 2008.


CTP STAHLBAUVERTRIEB: Deadline to File Claims Set February 6
------------------------------------------------------------
Creditors owed money by JSC CTP Stahlbauvertrieb are requested to
file their proofs of claim by Feb. 6, 2009, to:

         Dr. Ernst A. Brandenberg
         Poststrasse 9
         6300 Zug
         Switzerland

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


DEVON MODERNE: Creditors Have Until February 5 to File Claims
-------------------------------------------------------------
Creditors owed money by JSC Devon Moderne Juwelen are requested to
file their proofs of claim by Feb. 5, 2009, to:

         Dr. Marco Lanter
         Lanter Rechtsanwalte
         Seefeldstrasse 19
         8032 Zurich
         Switzerland

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


HEGA HECHT: Proof of Claim Filing Deadline Set February 6
---------------------------------------------------------
Creditors owed money by JSC Hega Hecht Gastro Unternehmungen are
requested to file their proofs of claim by Feb. 6, 2009, to:

         The JSCOBT
         Rorschacher Strasse 63
         9004 St. Gallen
         Switzerland

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


HEINZ ZIMMERMANN: Creditors' Proofs of Claim Due by February 6
--------------------------------------------------------------
Creditors owed money by LLC Consulting Heinz Zimmermann are
requested to file their proofs of claim by Feb. 6, 2009, to:

         JSC JCA Treuhand
         Badenerstrasse 9
         5200 Brugg
         Switzerland

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


KINO CAPITOL: February 6 Set as Deadline to File Claims
-------------------------------------------------------
Creditors owed money by JSC Kino Capitol are requested to file
their proofs of claim by Dec. 2, 2008, to:

         The JSCOBT
         Rorschacher Strasse 63
         9004 St. Gallen
         Switzerland

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


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

         Jsckendris Private
         Steinengraben 5
         4051 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 15, 2008.


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


AGRO-LAN LLC: Creditors Must File Claims by February 8
------------------------------------------------------
Creditors of LLC Agro-Lan (EDRPOU 33483793) have until Feb. 8,
2009, to submit proofs of claim to:

         Mr. Andrew Bondar
         Temporary Insolvency Manager
         P.O.B. 14
         03110 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 26, 2008.
The case is docketed as B2/258-08.

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

The Debtor can be reached at:

         LLC Agro-Lan
         Zavodskaya Str. 1
         Staroye
         Borispol
         08362 Kiev
         Ukraine


AZIYA IMPORT: Creditors Must File Claims by February 8
------------------------------------------------------
Creditors of LLC Aziya Import Service (EDRPOU 33654944) have until
Feb. 8, 2009, to submit proofs of claim to:

         Mr. O. Shypitsin
         Liquidator / Insolvency Manager
         Apt. 52
         Leninsky Avenue, 29
         83102 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 23, 2008.
The case is docketed as 45/231b.

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

The Debtor can be reached at:

         LLC Aziya Import Service
         Liubavin Str. 1
         83015 Donetsk
         Ukraine


BANK FORUM: Fitch Affirms Ratings on Risks Following Strong Growth
------------------------------------------------------------------
Fitch Ratings comments on the affirmation of the ratings of
Ukraine's Bank Forum.  The rating affirmation was part of a more
general review of Ukrainian bank ratings, which took into account
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.

Forum's Issuer Default and Support ratings reflect the potential
support available from its majority owner, Germany's Commerzbank
group (Commerz; Commerzbank AG is rated 'A'/Stable), in case of
need.  Ukraine's Country Ceiling of 'B+' limits the extent to
which potential support can be factored into the ratings.  In
Q108, Commerz purchased a 60%+1 share of Forum and could acquire
an additional 25% through an option which is valid up to March
2011.  The Negative Outlook on Forum's Long-term IDRs reflects the
potential for Ukraine's Country Ceiling to be downgraded together
with the country's sovereign ratings.

The Individual rating reflects risks stemming from the bank's
recent strong growth and the worsening operating environment, as
well as the very high proportion of foreign currency lending,
relatively high loan concentrations and recent deposit outflow.
However, the rating also acknowledges Forum's strengthened risk
management following the acquisition by Commerz and the bank's
more favorable funding, liquidity and capitalization positions
compared to other Ukrainian banks whose Individual ratings were
downgraded to 'E' yesterday.

In line with the general trend in the banking sector, the quality
of Forum's loan book worsened in H208, reflecting the seasoning of
the portfolio and the deteriorating economic environment.  Loans
overdue by more than 90 days amounted to 4.3% of gross loans at
end-2008 (end-H108: 2.8%).  Foreign funding which matured in 2008
was largely replaced by funding from Commerz, and by end-2008, the
share of Commerz funds increased significantly and made up 36% of
total non-equity funding.  Net of FX effects, customer funding
fell approximately 23% in Q408; at end-2008 liquid assets (cash;
net short-term interbank placements; placements with the National
Bank of Ukraine net of obligatory reserves; and unpledged
government securities) covered approximately 18% of customer
funding.  The Basel I Tier 1 and total capital ratios were 13.8%
and 18%, respectively, at end-Q308.  Pressure on capitalization in
Q408, resulting from the sharp UAH depreciation, was partially
offset by a UAH640m equity injection, and at end-2008 the Basel I
total capital ratio stood at 13%.

Forum is a medium-sized bank, ranked 14th by assets in Ukraine at
end-Q308.  The bank's only other major shareholder apart from
Commerz is a local businessman, Leonid Yurushev.

The rating actions on 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


DEMETRIS LLC: Creditors Must File Claims by February 8
------------------------------------------------------
Creditors of LLC Demetris (EDRPOU 32071580) have until Feb. 8,
2009, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 10, 2008.
The case is docketed as 49/261-b.

The Debtor can be reached at:

         LLC Demetris
         Vladimirsky uzviz Str. 2-B
         01001 Kiev
         Ukraine


OCTOPUS LTD: Creditors Must File Claims by February 11
------------------------------------------------------
Creditors of LLC Octopus Ltd. (EDRPOU 35031509) have until
Feb. 11, 2009, to submit proofs of claim to:

         LLC Edelweiss Star-Service
         Liquidator
         Melnikov Str. 12
         04050 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 24, 2009.
The case is docketed as 24/556-b.

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

The Debtor can be reached at:

         LLC Octopus Ltd.
         Melnikov Str. 12
         04050 Kiev
         Ukraine


POLONNOYE CHINA: Creditors Must File Claims by February 8
---------------------------------------------------------
Creditors of CJSC Polonnoye China (EDRPOU 31311112) have until
Feb. 8, 2009, to submit proofs of claim to:

         Economic Court of Hmelnitskij
         Independency Square, 1
         29000 Hmelnitskij
         Ukraine

The Arbitration Court of Hmelnitskij commenced bankruptcy
proceedings against the company after finding it insolvent on
Dec. 10, 2008.  The case is docketed as 4/260-B.

The Debtor can be reached at:

         CJSC Polonnoye China
         Privokzalnaya Str. 50
         Polonnoye
         30500 Hmelnitskij
         Ukraine


ROVNO TRACK: Creditors Must File Claims by February 11
------------------------------------------------------
Creditors of LLC Rovno Track (EDRPOU 25314952) have until Feb. 11,
2009, to submit proofs of claim to:

         Mr. V. Sokotun
         Temporary Insolvency Manager
         Makarov Str. 56/41
         Rovno
         Ukraine

The Arbitration Court of Rovno commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 28, 2008.
The case is docketed as 4/61.

         The Economic Court of Rovno
         Yavornitskiy Str. 59
         33001 Rovno
         Ukraine

The Debtor can be reached at:

         LLC Rovno Track
         Aviatorov Str. 5
         Bolshaya Omeliana
         Rovno
         Ukraine


SMEREKA LLC: Creditors Must File Claims by February 7
-----------------------------------------------------
Creditors of LLC Smereka (EDRPOU 31516774) have until Feb. 7,
2009, to submit proofs of claim to:

         Mrs. I. Dragun
         Liquidator
         Sobornaya Str. 34/14
         33028 Rovno
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 24, 2008.
The case is docketed as 24/317-b.

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

The Debtor can be reached at:

         LLC Smereka
         Zhylianskaya Str. 120-B
         01032 Kiev
         Ukraine


SWEDBANK OJSC: Fitch Cuts Individual Rating on Rapid Loan Growth
----------------------------------------------------------------
Fitch Ratings comments on the downgrade of Ukraine-based OJSC
Swedbank's Individual rating to 'E' from 'D/E'.  The rating action
was taken as part of a more general review of Ukrainian bank
ratings, and took into account the heightened liquidity and asset
quality risks and greater pressure on capital which Ukrainian
banks have faced following the sharp depreciation of the UAH in
Q408, as well as the weaker outlook for the Ukrainian economy.

"The downgrade of the Individual rating reflects the heightened
credit risk profile of the bank in light of continued extremely
rapid loan growth in 2008, the high proportion of loans
denominated in foreign currency, the recent sharp devaluation of
the UAH and the deterioration in the operating environment," says
Zarema Lyanova, Associate Director in Fitch's Bank team.  The
downgrade also considers the bank's dependence on parent Swedbank
AB ('A+'/Outlook Negative) for funding.  At the same time, the
liquidity and capital positions have been supported by the parent.

OJSC Swedbank's loan book continued to grow at a rapid pace (170%)
during 9M08, when credit expansion was slowing in the banking
sector as a whole, meaning that the portfolio is currently highly
unseasoned.  Combined with the high share of foreign currency
loans at end-2008 (80% - higher than most peers) this leaves the
bank highly exposed to the deteriorating operating environment.
In addition, the loan book has high single borrower concentrations
and exposure to the real estate sector (the latter at 15% of loans
at end-9M08).  Loans overdue by 60 days or more were already at a
significant 4.5% of total loans at OJSC Swedbank (unconsolidated)
at end-Q308.  In addition, Fitch understands there is a high
proportion of restructured loans on the balance sheet of OJSC
Swedbank's subsidiary, Swedbank Invest.

Funding is dominated by facilities from the parent, which
accounted for the majority of interbank funding (this in turn
representing 60% of OJSC Swedbank's unconsolidated liabilities) at
end-November 2008.  Customer funding accounted for just 24% of
liabilities at the same date, making OJSC Swedbank less exposed
than peers to risks relating to potential deposit outflow.
Capital has been supported by the parent, and the regulatory total
capital ratio was 15% at the beginning of January 2009, but this
should be viewed in light of the heightened credit risk profile
and the significant tier 2 component of capital.

At end-9M08, OJSC Swedbank was the 20th-largest bank by total
assets in Ukraine with a market share of around 1.5% in loans and
1% in deposits.  OJSC Swedbank is 99.99%-owned by Swedbank AB,
Sweden's fourth-largest banking group by total assets.  OJSC
Swedbank's IDRs, Support and National ratings are driven by the
potential for support from Swedbank AB.

Rating actions:

  -- 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


SWITZERLAND GALLERY: Creditors Must File Claims by February 11
--------------------------------------------------------------
Creditors of LLC Switzerland Gallery (EDRPOU 33405982) have until
Feb. 11, 2009, to submit proofs of claim to:

         Mr. Dmitry Salatiuk
         Liquidator
         P.O.B. 381
         03150 Kiev
         Ukraine
         Tel: 8(044)239-2390

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 6, 2008.
The case is docketed as 44/370-b.

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

The Debtor can be reached at:

         LLC Switzerland Gallery
         Pobeda Avenue, 18
         01133 Kiev
         Ukraine


TRANS OIL: Creditors Must File Claims by February 11
----------------------------------------------------
Creditors of LLC Trans Oil (EDRPOU 32326439) have until Feb. 11,
2009, to submit proofs of claim to:

         Mr. Roman Rachok
         Liquidator
         Oboronnaya Str. 24
         91033 Lugansk
         Ukraine


The Arbitration Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 15, 2008.
The case is docketed as 12/77b.

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

The Debtor can be reached at:

         LLC Trans Oil
         Stepovaya Str. 54
         91000 Lugansk
         Ukraine


VALERY INTERNATIONAL: Creditors Must File Claims by February 8
--------------------------------------------------------------
Creditors of LLC Valery International Group (EDRPOU 33015140) have
until Feb. 8, 2009, to submit proofs of claim to:

         Mrs. Paseka Tatiana
         Temporary Insolvency Manager
         P.O.B. 32
         73000 Herson
         Ukraine

The Arbitration Court of Herson commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 22, 2008.
The case is docketed as 12/265-B-08.

         The Economic Court of Herson
         Gorkiy Str. 18
         73000 Herson
         Ukraine

The Debtor can be reached at:

         LLC Valery International Group
         Apt. 2
         Mikhaylovich Str. 37
         Herson
         Ukraine


VEL LLC: Creditors Must File Claims by February 8
-------------------------------------------------
Creditors of LLC Vel (EDRPOU 25115260) have until Feb. 8, 2009, to
submit proofs of claim to:

         Mr. V. Piskursky
         Liquidator / Insolvency Manager
         Apt. 49
         V. Tereshkova Str. 10
         83117 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 22, 2008.
The case is docketed as 5/178b.

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

The Debtor can be reached at:

         LLC Vel
         Apt. 50
         Shevchenko Boulevard, 2
         Donetsk
         Ukraine


VSEUKRAINSKY: Fitch Cuts Ratings on Deteriorating Asset Quality
---------------------------------------------------------------
Fitch Ratings comments on the downgrade of the Long-term Issuer
Default rating of Ukraine's Vseukrainsky Aktsionerny Bank to 'CCC'
from 'B-' (B minus).  The agency also announced that it is
maintaining the Negative Outlook on the bank's Long-term IDR.  The
rating actions were taken as part of a more general review of
Ukrainian bank ratings, and took into account the heightened
liquidity and asset quality risks and greater pressure on capital
which Ukrainian banks have faced following the sharp depreciation
of the UAH in Q408, as well as the weaker outlook for the
Ukrainian economy.

The downgrade reflects VAB's rapidly deteriorating asset quality
following recent rapid growth, its low impairment reserve
coverage, its tight capitalization and the more general
deterioration in the operating environment.

Loans past due by over 90 days increased significantly during 2008
and made up 7.8% of the gross portfolio at end-2008 (end-Q308:
6.5%; end-2007: 1.8%).  Fitch considers the loan impairment
reserve coverage of NPLs of 45% at end-2008 as low, particularly
given the prospect of further impairment increase (loans which
became past due during Q408 would not yet have gone 90 days
overdue by year-end) and falling values of collateral.  Lending in
foreign currency (the bulk in US$) amounted to a high 66% share of
the total loan portfolio at end-2008.  At end-2008, the total
regulatory capital ratio was 11.6%, which Fitch regards as weak in
light of ongoing asset quality deterioration and low reserve
coverage.  VAB has announced plans to increase capital by US$60
million (equal to about half of end-2008 equity) during 2009 in
order to offset the recent negative impact on capitalization of
the UAH devaluation; however, Fitch understands that new capital
is unlikely to be contributed before Q209.

Fitch estimates that, net of FX effects, customer funding fell
approximately 13% in Q408, which is broadly in line with the
sector average.  At end-2008, liquid assets (cash; net short-term
interbank placements; placements with the National Bank of Ukraine
net of obligatory reserves; and unpledged government securities)
covered approximately 17% of customer funding.  Refinancing risk
relating to foreign borrowings appears moderate in 2009, with
VAB's major foreign liability, a US$125 million eurobond, maturing
in June 2010.

Continued deterioration in VAB's asset quality and capital
position could result in further rating downgrades.  A
stabilization of the macroeconomic environment, timely
contribution of new capital and stabilization of asset quality
trends could reduce pressure for negative rating action.
VAB's main shareholders are TBIF, a Dutch-based investment company
with operations in central and eastern Europe (48.9%), and a local
entrepreneur, Sergei Maximov, and his family (48.9%).

Rating actions on Vseukrainsky Aksionerny Bank (VAB):

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

  -- Senior unsecured debt: downgraded to 'CCC' from 'B-' (B
     minus), 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.


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


AIRE VALLEY: Fitch Shifts Outlook on BB-Rated Tranches to Negative
------------------------------------------------------------------
Fitch Ratings has changed the Outlooks on three 'BB' tranches and
nine 'BBB' tranches issued through the Aire Valley master trust
program to Negative from Stable.  The transaction is backed by
residential mortgage loans and buy-to-let loans originated by
Mortgage Express, a wholly owned subsidiary of Bradford & Bingley
plc.

Fitch tested the ratings of all outstanding notes issued though
Aire Valley against its expected UK housing market deterioration,
factoring in a decline in UK house prices of approximately 30%
from their peak in October 2007 in addition to increasing
defaults.

"In the event of the agency's anticipated downturn, the lower-
rated tranches issued through Aire Valley are susceptible to
negative rating migration.  This factor, in combination with the
sharp deterioration in the underlying collateral performance and
non-conforming nature of the assets, has led to the Negative
Outlook on the 'BB' and 'BBB' tranches," says Francesca Zwolinsky,
Director in Fitch's RMBS team.

Credit performance of the underlying mortgage collateral of the
Aire Valley trust has deteriorated significantly during 2008.  As
of the last investor report for January 2009, mortgages that were
90 days past the due date comprised some 4.13% of the current
collateral balance, compared to 0.92% as at end-December 2007.
Although arrears performance has worsened for the UK mortgage
market as a whole, the credit performance of the underlying
mortgage collateral backing Aire Valley has deteriorated at a
faster pace in comparison to its master trust peers, exacerbated
by the non-conforming nature of the collateral, which exposes Aire
Valley to higher defaults and loss severities.

As of December 2008, approximately 77% of the Aire Valley pool
comprised BTL loans, while the remaining 23% of the pool were
owner-occupied mortgage loans to borrowers who had self-certified
their income.  Fitch's analysis shows that BTL loans have a
higher-than- average geographical concentration and relatively
higher exposure to new-build flats.  Moreover, a large number of
BTL investors invest for capital gains in expectation of house
price increases.  Any house price correction could tempt a large
number of these investors in similar areas with comparable
properties to exit the market concurrently, thereby intensifying
house price declines.

In addition, self-certified borrowers are inherently more
susceptible to default as demonstrated by the relatively worse
performance of these loans to date and the rate at which their
performance is deteriorating in comparison to prime conforming
residential mortgages.

Aire Valley's higher-than-average exposure to high LTV mortgages
is an additional source of downside risk to performance,
specifically as these borrowers are particularly exposed to house
price declines, potentially leaving them in a position of negative
equity with the effect of widening losses in the event of
repossession.  Fitch expects a continuation of the recent trend of
negative house price adjustments and, as such, would anticipate
the proportion of loans with a high current LTV to increase all
other things remaining equal.

Future performance is likely to be further jeopardized given that
B&B is currently prohibited from assigning new loans to the pool
as replenishment has the effect of diluting arrears.

Aire Valley has experienced a marked decline in the annual
prepayment rate over the past 12 months to 8.32% in January 2009
from 16.94% in December 2007.  This emphasizes the difficulty that
these borrowers are having in refinancing following the widespread
tightening of underwriting criteria and, in some cases, the
complete withdrawal of these mortgages from several lenders'
product ranges.  Although the sharp reduction in the prepayment
rate reduces the speed at which the trust size declines, and hence
a non-asset trigger is breached, it will have the effect of
slowing the rate at which credit enhancement can accumulate and
may cause certain classes of notes to be repaid less rapidly than
expected.  This in turn could result in certain notes extending
past their step-up dates in the absence of being refinanced

The rating actions are:

Aire Valley Mortgages 2004-1 plc

  -- Series 3 Class A1 (ISIN XS0201883328): affirmed at 'AAA';
     Outlook Stable

  -- Series 3 Class A2 (ISIN XS0201883674): affirmed at 'AAA';
     Outlook Stable

  -- Series 3 Class B1 (ISIN XS0201883914): affirmed at 'AA';
     Outlook Stable

  -- Series 3 Class B2 (ISIN XS0201884300): affirmed at 'AA';
     Outlook Stable

  -- Series 3 Class C1 (ISIN XS0201884649): affirmed at 'BBB';
     Outlook revised to Negative from Stable

  -- Series 3 Class C2 (ISIN XS0201885026): affirmed at 'BBB';
     Outlook revised to Negative from Stable

  -- Series 3 Class D1 (ISIN XS0201885455): affirmed at 'BB';
     Outlook revised to Negative from Stable

  -- Series 3 Class D2 (ISIN XS0202219258): affirmed at 'BB';
     Outlook revised to Negative from Stable

Aire Valley Mortgages 2005-1 plc

  -- Series 2 Class A1 (ISIN XS0217567766): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A2 (ISIN XS0217568061): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A3 (ISIN XS0217568145): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class B1 (ISIN XS0217568491): affirmed at 'AA';
     Outlook Stable

  -- Series 2 Class B2 (ISIN XS0217568814): affirmed at 'AA';
     Outlook Stable

  -- Series 2 Class C2 (ISIN XS0217569119): affirmed at 'BBB';
     Outlook revised to Negative from Stable

Aire Valley Mortgages 2006-1 plc

  -- Series 1 Class A (ISIN XS0264186585): affirmed at 'AAA';
     Outlook Stable

  -- Series 1 Class B1 (ISIN XS0264187393): affirmed at 'AA';
     Outlook Stable

  -- Series 1 Class B2 (ISIN XS0264191742): affirmed at 'AA';
     Outlook Stable

  -- Series 1 Class B3 (ISIN XS0264194258): affirmed at 'AA';
     Outlook Stable

  -- Series 1 Class C2 (ISIN XS0264192716): affirmed at 'BBB';
     Outlook revised to Negative from Stable

  -- Series 2 Class A1 (ISIN XS0264192989): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A2 (ISIN XS0264197517): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A3 (ISIN XS0264197780): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class B2 (ISIN XS0264193284): affirmed at 'AA';
     Outlook Stable

  -- Series 2 Class B3 (ISIN XS0264197863): affirmed at 'AA';
     Outlook Stable

  -- Series 2 Class C2 (ISIN XS0264193797): affirmed at 'BBB';
     Outlook revised to Negative from Stable

Aire Valley Mortgages 2007-1 plc

  -- Series 1 Class A1 (ISIN XS0298402883): affirmed at
     'AAA'/'F1+'; Outlook Stable

  -- Series 1 Class A2 (ISIN XS0298403691): affirmed at 'AAA';
     Outlook Stable

  -- Series 1 Class A3 (ISIN XS0298409466): affirmed at 'AAA';
     Outlook Stable

  -- Series 1 Class B (ISIN XS0298410126): affirmed at 'AA';
     Outlook Stable

  -- Series 1 Class C (ISIN XS0298410555): affirmed at 'BBB';
     Outlook revised to Negative from Stable

  -- Series 2 Class A1 (ISIN XS0298411017): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A2 (ISIN XS0298412841): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A3 (ISIN XS0298413229): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class B (ISIN XS0298413658): affirmed at 'AA';
     Outlook Stable

  -- Series 2 Class C (ISIN XS0298415273): affirmed at 'BBB';
     Outlook revised to Negative from Stable

Aire Valley Mortgages 2007-2 plc

  -- Class 1A1 (ISIN XS0329886526): affirmed at 'AAA'; Outlook
     Stable

  -- Class 1A2 (ISIN XS0329904956): affirmed at 'AAA'; Outlook
     Stable

  -- Class 1A3 (ISIN XS0329905508): affirmed at 'AAA'; Outlook
     Stable

  -- Class 1B (ISIN XS0329906225): affirmed at 'AA'; Outlook
     Stable

  -- Class 1C (ISIN XS0329907116): affirmed at 'BBB'; Outlook
     revised to Negative from Stable

Aire Valley Mortgages 2008-1 plc

  -- Series 1 Class A1 (ISIN XS0378258833): affirmed at 'AAA';
     Outlook Stable

  -- Series 1 Class A2 (ISIN XS0378263163): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A1 (ISIN XS0378266000): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class A2 (ISIN XS0378268717): affirmed at 'AAA';
     Outlook Stable

  -- Series 2 Class C (ISIN XS0378269871): affirmed at 'BBB';
     Outlook revised to Negative from Stable

  -- Series 2 Class D (ISIN XS0378270887): affirmed at 'BB';
     Outlook revised to Negative from Stable

Fitch will continue to monitor the performance of Aire Valley
closely and will make further commentary as and when appropriate.


BRIERLEY LTD: Appoints Joint Administrators from Baker Tilly
------------------------------------------------------------
Guy Edward Brooke Mander and Lynn Robert Bailey of Baker Tilly
Restucturing and Recovery LLP were appointed joint administrators
of Brierley Ltd. on Jan. 16, 2009.

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

         St. Philips Point
         Temple Row
         Birmingham
         B2 5AF
         England


BRITISH AIRWAYS: Sees GBP150 Mln Loss in Year Ended March 31, 2009
------------------------------------------------------------------
British Airways plc said Monday further economic weakness in
January and the outlook for February and March combined with the
fall in sterling, are impacting its outlook for the year ended
March 31,  2009.

BA said the results for the third quarter to December 31, 2008 are
expected to show an operating loss of around GBP50 million which
is after a GBP56 million non-cash charge relating to the
retranslation of certain foreign currency obligations.

At current exchange rates, the year to March 31, 2009 is now
expected to be an operating loss of some GBP150 million.

BA said revenue guidance for the year remains unchanged as being
up at least 4% year on year with yields benefiting from exchange
more than offsetting volume declines.  Traffic volumes remain in
line with the market.

However, BA noted, costs are being equally impacted by foreign
exchange and non-fuel costs are now expected to rise by 8% year on
year compared to previous guidance of 5%.

Fuel cost guidance is largely unchanged at around GBP3 billion as
the lower price of fuel is being offset by a lower fuel hedging
benefit for the year and currency impacts.

The airline's traffic statistics for January and its third quarter
results will be announced on February 6, 2009.

                            Shares Hit

BBC News relates the profits warning sent BA shares down 8.5% to
133.8 pence on Monday, January 26, 2009.

              Iberia All-Share Merger Talks Weakened

According to The Daily Telegraph, BA's negotiating hand in its
all-share merger talks with Spain's Iberia has been further
weakened after it issued the profits warning.

The Daily Telegraph notes BA's warning came as chief executive
Willie Walsh is due to meet Iberia chairman Fernando Conte this
week.

Mark McVicar, a Dresdner Kleinwort analyst, as cited by The Daily
Telegraph, said: "One day's share price movement doesn't scupper
the Iberia deal but, in the short term, ratios are going against
it."

On Nov. 19, 2008, the TCR-Europe reported that according to The
Daily Telegraph, Iberia told investors it may take a bigger share
of the combined group.

The Daily Telegraph recalled Iberia shareholders initially
expected to take about one-third of the combined carrier when the
planned merger was first disclosed in July, although Caja Madrid,
which holds a 23% stake in the Spanish carrier, insisted Iberia
investors should get 40%.

BA chief executive Willie Walsh however maintained the natural
merger ratio is in the 65:35 to 60:40 range, The Daily Telegraph
stated.

                      About British Airways

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

                          *     *     *

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


CLARIS LIMITED: Moody's Slashes Ratings on EUR87-Mil Notes to Caa2
------------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of two
classes of notes issued by Claris Limited and one class of notes
issued by Societe Generale Acceptance N.V.

The transactions issued under Claris Limited and SGA are managed
synthetic CDOs referencing corporate exposures and ABS exposures.
According to Moody's, the rating actions are the result of these:

  -- further deterioration in the credit quality of the
     transactions' reference portfolio, which includes but is not
     limited to exposure to Tribune Company, Abitibi-Consolidated
     Inc., Ford Motor Company, GMAC LLC, and Residential Capital,
     LLC.  The transactions also have a significant exposure to
     other corporate names which continue to deteriorate in the
     current economic environment.  This weighs on the ratings of
     the tranches in these transactions.

  -- the application of revised key modeling parameter
     assumptions that Moody's uses to rate and monitor ratings of
     Structured Finance CDOs.  The revisions affect three key
     parameters in Moody's model for rating SF CDOs: asset
     correlation, default probability and recovery rates.  Moody's
     announced the changes to these assumptions in a press
     release.

  -- On January 15, 2009, Moody's published a press release in
     which it announced a revision and update to certain key
     assumptions that it uses to rate and monitor corporate
     synthetic CDOs.  The rating actions incorporate these new
     assumptions.

  -- the rating actions taken in November and December 2008 on
     Claris Limited series 43 and 45 did not reflect the trading
     losses affecting the corporate inner CDOs, and the
     appropriate weight of ABS exposures, which together would
     have had a multi-notch impact.

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

  -- Moody's Approach to Rating Corporate Collateralized Synthetic
     Obligations (December 2008)

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

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

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

  -- Modeling Recovery Rates in European CDOs (August 2002)

  -- Moody's modifies approach to rating structured finance
     securities wrapped by financial guarantors (October 2008)

The rating actions are:

Issuer: Claris Limited:

(1) EUR72,000,000 Series 43/2005 Voltaire Floating Rate Credit
Linked Notes

  -- Current Rating: Caa2
  -- Prior Rating: A2, on review for possible downgrade
  -- Prior Rating Date: 19 December 2008, downgraded to A2 on
     review for possible downgrade from Aa2

(2) EUR15,000,000 Series 45/2005 Voltaire Fixed Rate Credit Linked
Notes

  -- Current Rating: Caa2
  -- Prior Rating: A2, on review for possible downgrade
  -- Prior Rating Date: 19 December 2008, downgraded to A2 on
     review for possible downgrade from Aa2

Issuer: SGA Societe Generale Acceptance N.V.:

(1) Series 9945/05-12 Tranche 1 Voltaire Floating Rate Credit-
Linked Note

  -- Current Rating: Caa3
  -- Prior Rating: Ba2, on review for possible downgrade
  -- Prior Rating Date: 19 December 2008, downgraded to Ba2 on
     review for possible downgrade from Baa2.


CLEAR PUB: Brings in Joint Administrators from Grant Thornton
-------------------------------------------------------------
John Whitfield and Neil Tombs of Grant Thornton U.K. LLP were
appointed joint administrators of The Clear Pub Company Ltd. on
Jan. 15, 2009.

The company can be reached at:

         The Clear Pub Company Ltd.
         55 Colmore Row
         Birmingham
         B3 2AS
         England


DUNNETTS: Utensa Takes Over Operations
--------------------------------------
HousewiresLive.net reports that Utensa has taken over Dunnetts
(Birmingham) a week after the bakeware manufacturer called in
administrators.

The report relates that according to Utensa managing director
Robin Clark it was now "business as usual", although he noted
customers will be dealing with Utensa rather than Dunnetts, the
report says.

Citing Mr. Clark, the report discloses Utensa, which owns Dunetts'
plant and tools, is in the process of taking over the
manufacturing operations of the company.

The report recounts Dunnetts, which was founded in 1885, laid off
between 55 to 60 people Thursday last week.  Utensa, however,
plans to employ about 20 people, the report adds.

According to the report, Mr. Clark said Dunnetts' collapse was
"due to their over-reliance on one of the larger grocers".


EMPIRE PROPERTY: Appoints Joint Administrators from KPMG
--------------------------------------------------------
Mark Granville Firmin and Richard Dixon Fleming of KPMG LLP were
appointed joint administrators of Empire Property (U.K.) Ltd. on
Jan. 19, 2009.

The company can be reached at:

         Empire Direct Plc
         The Clock Buildings
         Roundhay Road
         Harehills
         Leeds
         LS8 2SH
         England


GEORGE CARTER: Calls in Joint Administrators from KPMG
----------------------------------------------------
Andrew Stephen McGill and Mark Jeremy Orton of KPMG LLP were
appointed joint administrators of George Carter (Pressings) Ltd.
on Jan. 19, 2009.

The company can be reached through KPMG LLP at:

         2 Cornwall Street
         Birmingham
         B3 2DL
         England


ITV PLC: S&P Puts 'BB+' Credit Corporate Rating on Watch Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed its
'BB+' long-term corporate credit and senior unsecured debt ratings
on U.K. private TV broadcaster ITV PLC on CreditWatch with
negative implications.

At the same time, S&P affirmed its 'B' short-term corporate credit
rating on ITV.  The '4' recovery rating on all of the group's
outstanding bonds is unchanged.  The '4' recovery rating indicates
S&P's expectation of average (30%-50%) recovery for unsecured
creditors in the event of a payment default.

"The CreditWatch placement reflects our concern that, on the back
of an ongoing marked deterioration of the U.K. macro-economic
environment, ITV's advertising revenues and profitability may be
significantly weaker than S&P previously expected for 2008 and,
most notably, for 2009," said Standard & Poor's credit analyst
Melvyn Cooke.

As a result, despite some cost-saving initiatives, S&P believes
that the risks that ITV's credit measures may fall out of range
with the current rating expectations have meaningfully increased.

S&P aims to resolve the CreditWatch placement shortly after ITV's
publication of its 2008 annual results on March 4, 2009.  In
resolving the CreditWatch, S&P will focus on the group's
advertising revenue prospects for the current year; the amount and
timing of the various cost-saving measures; potential financial
policy initiatives to protect cash flow generation; pension
deficit assumptions for 2009; the updated funding strategy; and an
update on the contract rights renewal and public service
broadcasting reviews.

"We could lower the ratings by one or two notches, depending on
the above factors and the expected leverage, profitability, and
cash flow profile in 2009," said Mr. Cooke.  "However, at this
stage S&P is not ruling out a rating affirmation, if ITV was able
to demonstrate a satisfactory and comprehensive plan to protect
credit measures commensurate with its 'BB+' ratings."


JJB SPORTS: Selling Suspended Chief's Two Helicopters
-----------------------------------------------------
Danny Fortson at The Sunday Times reported that Sir David Jones,
chairman JJB Sports plc, has ordered the sale of the two
helicopters used by its suspended chief executive Chris Ronnie.

According to the report, JJB agreed to sell one of its Agusta 109
helicopters to a Middle Eastern buyer for GBP4 million.  It
expects to sell the second within a matter of weeks for another
GBP1 million.

"One helicopter would be indulgent even for a major company —
having two is simply inexcusable," the report quoted an industry
source as saying.

As reported in the TCR-Europe on Jan 22, 2009, JJB's board  on
Tuesday, January 20, suspended Mr. Ronnie, pending the outcome of
an ongoing investigation being conducted by its legal advisers
into certain matters.

                            FSA Probe

On Jan. 16, 2009, the TCR-Europe reported that according to The
Daily Telegraph, the Financial Services Authority launched an
investigation into share disposals at JJB.

According to the report, the FSA's action came after the retailer
revealed that Guro Leisure, a company in which Mr. Ronnie holds a
50% stake, had offloaded a 27.5% stake in JJB without disclosing
the disposal.

Mr. Ronnie, the report recalled, acquired the 27% stake from JJB
founder and Wigan Football Club owner Dave Whelan in June 2007
with a loan from Kaupthing Singer & Friendlander, which was placed
into administration in October last year,

The bank, the report stated, is understood to have foreclosed on
the loan last year and taken the shares as security.  However,
neither the bank nor Mr. Ronnie disclosed the move.

The reasons why Kaupthing foreclosed on the loan and why the
change in share ownership was not disclosed remain unclear, the
report noted.

JJB, as cited by the report, said "Mr. Ronnie has informed the
company that he is not aware of the date or place of the relevant
transaction or of the price per share in respect of the
transaction but that he understands that the legal and beneficial
ownership of the shares and accordingly the voting rights
attaching to the same were transferred pursuant to the loan
documents."

JJB, the report recounted, was notified Monday, January 12, that
KSF holds 65.5 million JJB shares.

The retailer was informed by Mr. Ronnie that Guro Leisure had
handed 68.9 million JJB shares to KSF, the report related.

PwC, KSF's administrator, now holds 65.5 million JJB shares and is
the company's major shareholder after the bank's collapse, says
the report.  Meanwhile, the location of the remaining 3.4 million
shares remains unclear, the report added.

                         About JJB Sports

Headquartered in Wigan, England, JJB Sports plc --
http://www.jjbcorporate.co.uk/-- is a sportswear and sporting
equipment retailer.  The company also operates a chain of fitness
clubs, which has a smaller number of indoor soccer centers
attached to them.  It also operates a television broadcasting and
marketing business, which specializes in the marketing of golf
products and fitness equipment through Sky Television.

On Oct. 2, 2008, the TCR-Europe reported that Deloitte & Touche
LLP raised going concern issues about JJB Sport plc's interim
report and condensed financial statements for the 26 weeks to
July 27, 2008.

Deloitte pointed to material uncertainties that may cast
significant doubt on the group's ability to continue as a going
concern.  These material uncertainties comprise:

    * ongoing availability of the original facilities given the
      actual and projected covenant breaches;

    * the ability to repay the bridging facility from asset
      sales or seasonal cash flows;

    * achieving the sale of non-core businesses and/or assets
      within the timescales and at the values projected; and

    * the achievability of forecasts and key assumptions within
      the forecasts.

Deloitte warned there is a risk that the material uncertainties as
to the group's ability to continue as a going concern may not be
resolved satisfactorily.


MR BAGELS: Goes Into Administration; Up to 80 Jobs at Risk
----------------------------------------------------------
FoodManufacture reports that Mr Bagels has gone into
administration, putting up to 80 jobs at risk.

The report relates corporate restructuring and turnaround firm MCR
has been appointed administrator.

According to the report, the company already shed 26 jobs.  The
report notes more jobs could go if a buyer for the business is not
found.

Based in East London, Mr Bagels makes savory and sweet bagels.  It
was set up as a bagel retailer and bakery in North London in 1988
by brothers Paul and Avi Kahalani, and became a limited company in
1996, the report discloses.


TWIST COMMUNICATIONS: Goes Into Administration
----------------------------------------------
Anna Blackaby at Birmingham Post reports that Twist Communications
has gone into administration.

The report relates Sutton Coldfield-based advertising firm WAA
stepped in to absorb Twist's client base, which include Mitchells
& Butlers, PerfectHome, Moneyway and Interactive Telecom.  Three
of the former Twist team were subsequently offered employment at
WAA, the report notes.

WAA chief executive Andrew Wilson blamed the economic downturn for
the company's demise, the report discloses.

WAA chief executive Andrew Wilson, as cited by the report, said:
"A number of unforeseen external events coincided, and with no
support available from the company's banks, the directors were
forced to place the company into administration."

Based in Coleshill, Twist Communications, which was founded in
2006, was a full-service agency providing advertising, direct
marketing, branding and multimedia services.


VSTORE LTD: Appoints Joint Liquidators from Baker Tilly
-------------------------------------------------------
Mark Ranson and Adrian Allen of Baker Tilly Restructuring and
Recovery LLP were appointed joint liquidators of Vstore Ltd. on
Jan. 9, 2009, for the creditors' voluntary winding-up proceeding.

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

         2 Whitehall Quay
         Leeds
         LS1 4HG
         England


WHINSTONE CAPITAL: Fitch Cuts Ratings on Six Notes to 'BB-'
-----------------------------------------------------------
Fitch Ratings has downgraded Whinstone Capital Management
Limited's and Whinstone 2 Capital Management Limited's notes.  The
agency has also changed the Outlook on these notes to Negative.

These transactions are synthetic securitizations which reference
the reserve funds acting as credit enhancement for the notes
issued from the Granite master trust program which is backed by
residential mortgage loans originated by Northern Rock.

Fitch tested the ratings of all outstanding notes issued though
Whinstone and Whinstone 2 against its expected UK housing market
deterioration, factoring in a decline in UK house prices of
approximately 30% from their peak in October 2007 in addition to
increasing defaults.

This analysis showed that in such a scenario, Whinstone and
Whinstone 2 are susceptible to negative rating migration.  This
factor, in combination with the continued deterioration in the
underlying collateral performance of Granite backing Whinstone and
Whinstone 2, has prompted the downgrade.

The Whinstone notes reference the performance of the reserve funds
acting as credit enhancement for the five outstanding capitalist
issuances from the Granite Finance Funding Limited platform of
Granite.  The first layer of protection for the Whinstone notes is
a threshold amount equal to the Funding reserve fund, which is
defined as 1% of the aggregate outstanding balance of the notes of
all the Funding issuers.  The Whinstone 2 notes reference the
performance of the Granite Finance Funding 2 Limited reserve fund
and the Granite Master Issuer reserve fund.  Credit enhancement
for the notes issued by Whinstone 2 is provided by a static
threshold amount of GBP101 million.

In November 2008, the reserve funds providing credit enhancement
for Granite Mortgages 04-2 plc, Granite Mortgages 04-3 plc and GMI
were required to be increased following the occurrence of an
arrears step-up trigger event.  These stepped-up amounts provide
additional support for the Whinstone transactions to the extent
that the required increase is met by the trapping of excess
spread.  Nevertheless, the current level of credit enhancement
available to the Whinstone notes is not sufficient to prevent
rating migration in the event of the agency's expected housing
market deterioration.  Moreover, the speed at which future credit
enhancement for the tranches accrues will slow in the event of any
deceleration in the Granite prepayment rate which could arise
following the government's announcement on January 19, 2009 that
NR will no longer pursue a policy of rapidly reducing its mortgage
book.

Arrears performance of the underlying mortgage collateral backing
Granite has deteriorated significantly during 2008 with mortgages
90 days past the due date comprising 2.69% of the current
collateral balance as of the latest investor report for November
2008, compared to 0.52% as at end-December 2007.  Although arrears
performance has worsened for the UK mortgage market as a whole,
the credit performance of the underlying mortgage collateral
backing Granite has deteriorated at a faster pace in comparison to
its master trust peers.  This has been exacerbated by the
shrinking of the mortgage book as the higher quality end of the
portfolio re-mortgaged with other lenders, in addition to the
strengthening of NR's mortgage arrears capitalization policy
whereby the ability to capitalize arrears where borrowers have
made less than three monthly payments has been removed.  This
situation is likely to be compounded by the non-asset trigger
breach which prohibits NR assigning new loans to the trust as
replenishment has the effect of diluting the level of arrears.

Fitch expects this performance trend to continue, driven by
Granite's higher-than-average exposure to both high LTV mortgages
and the 'Together' product.  In addition, adverse selection has
arisen as a result of the aggressive redemption policies pursued
by NR in 2008 to help repay facilities provided by the UK
authorities.

The rating actions are:

Whinstone Capital Management Limited

  -- Class B1 (ISIN XS0234448289): downgraded to 'BBB' from
     'BBB+'; Outlook revised to Negative from Positive

  -- Class B2 (ISIN XS0234448529): downgraded to 'BBB' from
     'BBB+'; Outlook revised to Negative from Positive

  -- Class B3 (ISIN XS0234449501): downgraded to 'BBB' from
     'BBB+'; Outlook revised to Negative from Positive

  -- Class C1 (ISIN XS0234450939): downgraded to 'BB-' (BB minus)
     from 'BB+'; Outlook revised to Negative from Positive

  -- Class C2 (ISIN XS0234451234): downgraded to 'BB-' (BB minus)
     from 'BB+'; Outlook revised to Negative from Positive

  -- Class C3 (ISIN XS0234451820): downgraded to 'BB-' (BB minus)
     from 'BB+'; Outlook revised to Negative from Positive

Whinstone 2 Capital Management Limited

  -- Class C1 (ISIN XS0255934720): downgraded to 'BB-' (BB minus)
     from 'BB'; Outlook revised to Negative from Stable

  -- Class C2 (ISIN XS0255936188): downgraded to 'BB-' (BB minus)
     from 'BB'; Outlook revised to Negative from Stable

  -- Class C2 currency swap obligations: downgraded to 'BB-' (BB
     minus) from 'BB'; Outlook revised to Negative from Stable

Fitch will continue to monitor Whinstone and Whinstone 2 closely
and will make further commentary as and when appropriate.


* UK: Slips Into a Recession, Economy Shrank 1.5% in 4Q08
---------------------------------------------------------
The United Kingdom officially slipped into a recession Friday last
week, Breakingnews.ie reports.

Citing the Office for National Statistics, the report discloses
the British economy shrank by 1.5% in the fourth quarter of last
year.

The report relates that according to the ONS, the plunge is worse
than the declines seen in the recession of the early 1990s and the
biggest fall in more than 28 years.

British GDP, the report recounts, declined 0.6% in the previous
three months, a "technical" recession, as defined by two
successive quarters of negative output.

The report states the ONS estimates also showed GDP growth for
2008 as a whole fell to 0.7%, the poorest full-year output since
1992.

Bank of England governor Mervyn King earlier warned that the
recession was tightening its grip, the report recalls.  Mr. King,
as cited by the report, said the economy was expected to continue
contracting into the first half of the year with "further marked
falls in output".

The report notes it is expected the economy could shrink by 2% or
even 3% in what could be the biggest decline since the Second
World War.

The report adds all sectors across the economy are now suffering.


===================
U Z B E K I S T A N
===================


UZBEKINVEST AS: Moody's Assigns 'B1' First-Time Insurance Rating
----------------------------------------------------------------
Moody's Investors Service announced that it had assigned a first-
time insurance financial strength rating of B1 to Uzbekinvest A.S.
The rating outlook is stable.

Uzbekinvest is a State-owned insurer in Uzbekistan with the
mission of 'Assisting in stimulation of foreign investments
attraction into the economy of Uzbekistan and growth of export
potential through reliable insurance protection against political,
natural and combined risks'.  However, provision of this insurance
is only a small part of the business, with direct insurance within
the domestic market comprising the vast majority of premium
Uzbekinvest was established in April 1994, and reorganized into
the national import-export insurer in February 1997.  The company
is 100% owned by the Republic of Uzbekistan through a 83.3% direct
shareholding and 16.7% through the National Bank for Foreign
Activity of Uzbekistan (Ba3/NP/Stable BFSR:E+)

Moody's notes the main standalone strengths of Uzbekinvest are its
extremely strong capitalization in relation to insurance risk, its
dominant position in Export-Credit insurance and strong position
in domestic insurance provision.  Its ownership by the State
provides competitive advantage and the State guarantee of export-
credit risks are viewed positively, as is Uzbekinvest's
relationship with AIG both locally and in the UK based joint-
venture which provides underwriting and other technical support
Moody's notes the main challenges are i) exposure to Uzbekistan
which is a small economy with little risk diversification and with
a developing legal, regulatory and political structure ii)
developing the risk management functions as the size and
complexity of the business grows.

Moody's added that upward rating pressure may evolve over time
from 1) continued improvements in underwriting and risk management
systems and controls 2) through improvements in the Uzbekistan
economic environment.

On the other hand, the rating may experience downward pressure
from 1) a change in the relationship with AIG, in particular in
respect of reductions in the provision of local support in
Uzbekistan or changes to the joint-venture in London and, 2)
significant deterioration in the Uzbekistan economic environment,
3) changes to the investment policy, particularly if there are
significant shifts to lower-rated bonds or increased local
equity/property market investments

At December 31, 2007 Uzbekinvest had net assets of UZS196 billion
(US$152 million) and gross written premium of UZS16.3 billion.
Net Income (before minorities) was UZS11.7 billion.

This rating was assigned:

  -- Uzbekinvest a.s. B1 insurance financial strength rating,
     stable outlook


* Fitch Says Rating Outlook on EU Aerospace Sector Remains Stable
-----------------------------------------------------------------
Fitch Ratings says, in a newly-published global aerospace and
defense outlook report, that the rating outlook for the European
aerospace and defense sector in 2009 remains stable, despite the
challenges facing the industry as a result of the global economic
slowdown.  The outlook, barring company-specific events,
anticipates stable credit profiles for most companies in the
sector.

"While there will be significant challenges in 2009 for companies
operating in the commercial aerospace industry, Fitch believe that
the chief European players in the sector are well-positioned to
withstand the anticipated downturn," says Tom Chruszcz, Director
in Fitch's Industrials team.  "Most companies have sufficient
headroom in their present ratings to accommodate the impact of
likely weakness in the operating environment."

In Europe, Fitch expects stable credit quality in the A&D industry
to be supported by solid order backlogs, substantial liquidity and
moderate leverage levels.  While there are few significant debt
maturities upcoming in 2009 such as Thales' EUR700 million bond in
December, Fitch does not anticipate any companies in its rated A&D
universe to experience problems in either refinancing existing, or
issuing new, debt, as the credit markets remain largely open to
the sector

During 2008, orders for large commercial aircraft at Boeing and
Airbus exceeded deliveries for the fifth year in a row.  The two
manufacturers have a combined backlog of over 7,400 aircraft,
representing more than seven years of deliveries at current
production rates.  However, the present decline in air travel
resulting from the global economic slowdown, as well as the
increasingly challenging aircraft financing market, means that
book to bill ratios in 2009 are unlikely to exceed 1x for the
first time since 2003, while deliveries will likely be in line
with pro-rata 2008 levels of 955 units*.  The Fitch downside case
scenario assumes a 10% decline in production in H209, which could
reduce 2009 deliveries to around 900 units.  A more severe
downturn which might impact A&D companies' credit profiles in 2009
is not expected by Fitch given the size of the backlogs and the
long lead times in aircraft production.

The European defense market continues to be characterized by
strong budgetary pressures, particularly outside the two largest
defense markets of the UK and France.  In 2009, defense budgets in
Europe are unlikely to grow in real terms, meaning that growth-
focused companies will have to look outside of these markets for
top-line expansion.  Industry consolidation will remain high on
the agenda of most European companies in 2009, and Fitch believes
that significant M&A transactions are a possibility, particularly
in growth segments like defense electronics.

European companies reviewed include Thales SA ('A-' (A
minus)/Stable/'F2'), Rolls-Royce Group plc ('A-' (A
minus)/Stable/'F2'), EADS ('BBB+'/Stable/'F2'), BAE Systems plc
('BBB+'/Stable/'F2'), Finmeccanica SpA ('BBB'/Positive/'F2') and
JSC Sukhoi Civil Aircraft ('BB+'/Negative/'B').


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Feb. 5-7, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Caribbean Insolvency Symposium
       Westin Casurina, Grand Cayman Island, Alabama
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 25-27, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Valcon
       Four Seasons, Las Vegas, Nevada
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 2, 2009
ASSOCIATION OF INSOLVENCY AND RESTRUCTURING ADVISORS
    Chicago Regional Conference
       Union League Club of Chicago, Chicago, Illinois
          Contact: 1-541-858-1665; http://www.airacira.org/

Mar. 13, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Bankruptcy Battleground West
       Beverly Wilshire, Beverly Hills, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 14-16, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Conrad Duberstein Moot Court Competition
       St. John's University School of Law, New York City
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 1-4, 2009
AMERICAN BANKRUPTCY INSTITUTE
    27th Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 16-19, 2009
COMMERICAL LAW LEAGUE OF AMERICA
    2009 Chicago/Spring Meeting
       Westin Hotel on Michigan Ave., Chicago, Ill.
          Contact: (312) 781-2000; http://www.clla.org/

Apr. 17-18, 2009
NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
    NABT Spring Seminar
       The Peabody, Orlando, Florida
          Contact: http://www.nabt.com/

Apr. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Consumer Bankruptcy Conference
       John Adams Courthouse, Boston, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 27-28, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Corporate Governance Meetings
       Intercontinental Hotel, Chicago, Illinois
          Contact: www.turnaround.org

Apr. 28-30, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Spring Conference
       Intercontinental Hotel, Chicago, Illinois
          Contact: www.turnaround.org

May 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Nuts and Bolts for Young Practitioners
       Alexander Hamilton Custom House, New York City
          Contact: 1-703-739-0800; http://www.abiworld.org/

May 4, 2009
AMERICAN BANKRUPTCY INSTITUTE
    New York City Bankruptcy Conference
       New York Marriott Marquis, New York City
          Contact: 1-703-739-0800; http://www.abiworld.org/

May 7-8, 2009
RENASSANCE AMERICAN MANAGEMENT, INC.
    6th Annual Conference on
    Distressted Investing - Europe
       The Le Meridien Piccadilly Hotel, London, U.K.
          Contact: 1-903-595-3800 or
                   http://www.renaissanceamerican.com/

May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
    27th Annual Spring Meeting
       Gaylord National Resort & Convention Center
       National Harbor, Maryland
          Contact: http://www.abiworld.org/

May 12-15, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Litigation Skills Symposium
       Tulane University, New Orleans, La.
          Contact: http://www.abiworld.org/

May 14-16, 2009
ALI-ABA
    Chapter 11 Business Reorganizations
       Langham Hotel, Boston, Massachusetts
          Contact: http://www.ali-aba.org

June 11-14, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
    BANKRUPTCY PROFESSIONALS
       8th International World Congress
          TBA
             Contact: http://www.insol.org/

July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Mt. Washington Inn
          Bretton Woods, New Hampshire
             Contact: http://www.abiworld.org/

July 29-Aug. 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Westin Hilton Head Island Resort & Spa,
       Hilton Head Island, S.C.
          Contact: http://www.abiworld.org/

Aug. 6-8, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Conference
       Hotel Hershey, Hershey, Pa.
          Contact: http://www.abiworld.org/

Sept. 10-11, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Complex Financial Restructuring Program
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
    17th Annual Southwest Bankruptcy Conference
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Oct. 2, 2009
AMERICAN BANKRUPTCY INSTITUTE
    ABI/GULC "Views from the Bench"
       Georgetown University Law Center, Washington, D.C.
          Contact: http://www.abiworld.org/

Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Paris Las Vegas, Las Vegas, Nev.
          Contact: http://www.abiworld.org/

Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
    21st Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

                            *********

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 * * *