TCREUR_Public/090211.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, February 11, 2009, Vol. 10, No. 29

                            Headlines

A U S T R I A

C GASTRONOMIEBETRIEB LLC: Claims Registration Period Ends March 4
FANTA & POSCH: Claims Registration Period Ends March 4
HOLZBAU + MONTAGE: Claims Registration Period Ends March 4
TEAM 3 GASTRONOMIE: Claims Registration Period Ends March 2
ULTIMATE PICTURES: Claims Registration Period Ends March 5


C Z E C H   R E P U B L I C

* CZECH REPUBLIC: Budget Deficit May Breach EU's Limit


F R A N C E

NATIXIS SA: Denies Need for Fresh Funds, Reuters Says


G E R M A N Y

AERODYNAMISCHE ANBAUTEILE: Claims Registration Ends March 17
B N J GMBH: Claims Registration Period Ends March 17
BOLLMANN SYSTEMS: Claims Registration Period Ends March 20
HEIDELBERGCEMENT AG: Hopes to Fix Balance Sheet by Mid-Year
HEIDELBERGCEMENT AG: Moody's Cuts Corp. and Issue Ratings to 'B1'

PAGEMA GMBH: Claims Registration Period Ends March 18
QIMONDA AG: Infineon Posts EUR404 Mln Net Loss on Insolvency
SENATOR TECHNOLOGY: Claims Registration Period Ends March 23
TELEPROFIT GMBH: Claims Registration Period Ends March 20

G R E E C E

DRYSHIPS INC: Has Preliminary Pact with Bank for Covenant Waiver


I C E L A N D

KAUPTHING BANK: To File Suit v. Oscatello Over GBP643Mln Overdraft
KAUPTHING BANK: Mulls Restructuring of Mosaic, Eyes Full Takeover
KAUPTHING BANK: Moody's Downgrades Deposit Rating to 'C'
MOSAIC FASHONS: Kaupthing Eyes Takeover, Mulls Restructuring


I R E L A N D

WATERFORD WEDGWOOD: KPS Named Preffered Bidder, Irish Times Says


I T A L Y

FERRETTI SPA: Defaults on EUR1.08 Billion Senior Loans
IT HOLDING: Moody's Downgrades Probability of Default Rating to D


K A Z A K H S T A N

AG INVEST: Proof of Claim Deadline Slated for March 21
BATAREYI NIRU: Creditors Must File Claims by March 21
COMMERCIAL REAL: Claims Filing Period Ends March 21
GROUP SEMEY: Creditors' Proofs of Claim Due on March 21
KAZAKH MORTGAGE: Moody's Puts Ba2-Rated Notes on Downgrade Review

MOTORDETAL SK: Claims Registration Period Ends March 21
STATION SAUDAKENT: Proof of Claim Deadline Slated for March 21
STROY TECH SERVICE: Creditors Must File Claims by March 21
TEPLO SNUB: Claims Filing Period Ends March 21
TEMIRBANK: Moody's Lowers Financial Strength Rating to 'E'

UK STROY SNUB: Creditors' Proofs of Claim Due on March 21


K Y R G Y Z S T A N

AVANTAGE HAIKO: Creditors Must File Claims by March 6
NIHONG INTERNATIONAL: Creditors Must File Claims by March 6


R U S S I A

EL PETROLEUM: Creditors Must File Claims by April 2
INVEST-STROY-KOM LLC: Moskovskaya Bankruptcy Hearing Set May 5
LEBEDYANSKY OJSC: Moody's Withdraws 'Ba3' Corporate Family Rating
MECHANICAL PLANT OJSC: Yakutia Bankruptcy Hearing Set June 22
MELANZH LLC: Creditors Must File Claims by April 2

MIKHAYLOVSKIY CHEMICAL: Creditors Must File Claims by March 2
MOSCOW CAPITAL: Moody's Downgrades Currency Deposit Ratings to 'C'
NOVOSIBIRSKIY PRINTING: Court Names Insolvency Manager
REGION-STROY-M LLC: Creditors Must File Claims by March 2
RENOVA HOLDING: Moody's Cuts Corporate Family Rating to 'Ba3'

RUSTUNA LLC: Creditors Must File Claims by March 2
STOLITSA LLC: Creditors Must File Claims by March 2
TRADE-OIL LLC: Creditors Must File Claims by April 2


S P A I N

CAIXA PENEDES: Fitch Downgrades Class C Notes to 'B'
FONCAIXA ICO: Moody's Assigns 'C' Rating on EUR5.2 Mil. Notes
IM GRUPO: Moody's Reviews Ratings on Notes for Possible Downgrades
SANTANDER EMPRESAS: Moody's Assigns 'C' Rating on Series F Notes


S W E D E N

SAS AB: Moody's Affirms Corporate Family Rating at 'B2'


S W I T Z E R L A N D

AC AEROTECHNIK: Creditors Must File Proofs of Claim by Feb. 20
APA-KLIMAGERATE LLC: Deadline to File Claims Set February 20
M. A. LIMMAT: Creditors Have Until Feb. 21 to File Claims
REMA METALLBAU: Proof of Claim Filing Deadline Set Feb. 21
SCHNYDER'S WYCHALLER: Creditors' Proofs of Claim Due by Feb. 20

TERMINAL TWO: February 24 Set as Deadline to File Claims
UBS AG: Full Year 2008 Net Loss Widens to CHF19,697 Million
VITRIA SWITZERLAND: Creditors Must File Claims by February 20


U K R A I N E

BILYKI COOPERATIVE: Creditors Must File Claims by Feb. 25
DIONIS FARM: Creditors Must File Claims by Feb. 25
DMITROVKA AGRICULTURAL: Court Starts Bankruptcy Procedure
INSTRACOM LLC: Creditors Must File Claims by Feb. 25
KAMIANKA DNIEPROVSKAYAG: Creditors Must File Claims by Feb. 25

KYIV AVIANT: Cabinet to Provide UAH1 Billion for Debt Refinancing
LAN PRODUCER: Court Starts Bankruptcy Supervision Procedure


U N I T E D   K I N G D O M

ALBA PLC: Fitch Downgrades Ratings on 12 Tranches
A T S EVENTS: Appoints Joint Administrators from Grant Thornton
AWT RESTAURANTS: Goes Into Administration; Four Restaurants Closed
BCPMS LTD: Taps Joint Administrators from KPMG
CAMELOT: Put Into Receivership; 29 Jobs Affected

CENTURY WEB: Taps Joint Administrators from Smith & Williamson
DAVID PAYNE: In Administration; KPMG Appointed
EDRIC AUDIO: Appoints Joint Administrators from BDO Stoy Hayward
HOMEBUYER EVENTS: Taps Joint Administrators from Grant Thornton
MANSARD MORTGAGES: Fitch Reports Amendments in Transactions

PUBLIC GALLERY: Goes Into Administration; 32 Jobs Affected
TITAN EUROPE: S&P Downgrades Rating on Class F Notes to 'D'
WOOLWORTHS GROUP: Owes More Than GBP1 Bln to Unsecured Lenders

* UK: Fitch Reports Poor Holiday Sales for Non-Food Retailers
* KPMG Says Outlook for EU Manufacturing Sector in 2009 Negative


                         *********


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


C GASTRONOMIEBETRIEB LLC: Claims Registration Period Ends March 4
-----------------------------------------------------------------
Creditors owed money by LLC C Gastronomiebetrieb (FN 220156i) have
until March 4, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Michael Neuhauser
         Esslinggasse 7
         1010 Wien
         Austria
         Tel: 90 333
         Fax: DW 55
         E-mail: wien@snwlaw.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on March 18, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 14, 2009, (Bankr. Case No. 2 S 6/09h).


FANTA & POSCH: Claims Registration Period Ends March 4
------------------------------------------------------
Creditors owed money by LLC Fanta & Posch (FN 47164i) have until
March 4, 2009, to file written proofs of claim to the court-
appointed estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on March 18, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 9, 2009, (Bankr. Case No. 4 S 196/08p).


HOLZBAU + MONTAGE: Claims Registration Period Ends March 4
----------------------------------------------------------
Creditors owed money by LLC F. M. Holzbau + Montage (FN 82051p)
have until March 4, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Brigitte Stampfer
         Stadlergasse 27
         1130 Wien
         Austria
         Tel: 877 33 30 Serie
         Fax: 877 33 30 33
         E-mail: office@ra-stampfer.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on March 18, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 9, 2009, (Bankr. Case No. 4 S 189/08h).


TEAM 3 GASTRONOMIE: Claims Registration Period Ends March 2
-----------------------------------------------------------
Creditors owed money by LLC Team 3 Gastronomie (FN 239528y) have
until March 2, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Helmut Horn
         Kalchberggasse 8
         8010 Graz
         Austria
         Tel: 0316/821114-0
         Fax: 0316/821114-79
         E-mail: helmut.horn@schmid-horn.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on March 17, 2009, for the
examination of claims at:

         Graz Land Court by Civil Cases (638)
         Room 205
         Hall K
         Graz
         Austria

Headquartered in Graz, Austria, the Debtor declared bankruptcy on
Jan. 14, 2009, (Bankr. Case No. 40 S 1/09h).


ULTIMATE PICTURES: Claims Registration Period Ends March 5
----------------------------------------------------------
Creditors owed money by LLC Ultimate Pictures (FN 114788g) have
until March 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Brigitte Stampfer
         Stadlergasse 27
         1130 Wien
         Austria
         Tel: 877 33 30 Serie
         Fax: 877 33 30 33
         E-mail: office@ra-stampfer.at

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

         Trade Court of Vienna (007)
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 9, 2009, (Bankr. Case No. 5 S 2/09t).

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


* CZECH REPUBLIC: Budget Deficit May Breach EU's Limit
------------------------------------------------------
The Czech Republic, which is expected to adopt the euro in the
next four or five years, may breach the European Union's budget
deficit limit this year if its economy contracts, Bloomberg News
reports citing Finance Minister Miroslav Kalousek.

According to the report, the Finance Ministry originally set a
fiscal gap of 1.6 percent of gross domestic product for 2009 and
later noted the shortfall may be as wide as 3 percent of GDP.

The report relates the country needs to keep the deficit of the
entire public sector below 3 percent of GDP and other EU rules to
be eligible for the currency switch.

Minister Kalousek, in an interview with Bloomberg News in Prague,
said he hopes economic growth will be around zero this year,
compared with the central bank's prediction of a 0.3 percent
contraction.

If growth "will really turn negative, then I'm afraid that I will
not be able to keep" the deficit "under 3 percent" this year,
Minister Kalousek told Bloomberg News.

The report discloses the government will present its set of
measures designed to soften the impact of the global crisis on
Czechs and companies this month.

The measures, the report notes, include cutting social security
payments by employers, enabling the return of value-added tax on
purchased vehicles and allowing companies to depreciate the costs
of investments faster until mid-2010.

The government also plans to help small and medium-size companies
get easier access to credit by sharing the risk of loans with
commercial banks, the report adds.


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


NATIXIS SA: Denies Need for Fresh Funds, Reuters Says
-----------------------------------------------------
Reuters reports Natixis SA denied a newspaper report that it needs
a fresh injection of capital but reiterated it was a candidate for
part of a second tranche of bank aid from the French state.

In an earlier report, Reuters said according to business newspaper
Les Echos, Natixis needs a new injection of capital.

"There is no urgent need for a new injection of capital.  It's a
false rumor,"
Reuters quoted a company spokesman as saying in response to the
Les Echos report.

Reuters said Les Echos also reported that the French state wanted
to play a more direct role in a planned merger between Banque
Populaire and Groupe Caisse d'Epargne, the two French mutual banks
that control around 70 percent of Natixis' capital.

According to Reuters, Natixis, which was formed from the 2006
merger of the investment banking businesses of Caisse d'Epargne
and Banque Populaire, was forced late last summer by the impact of
the credit crunch into a deeply discounted EUR3.7 billion capital
increase.

Natixis made a third quarter net loss of EUR234 million (US$299.7
million) and in December announced plans to cut 840 jobs, Reuters
adds.

                          Merger Update

Natixis said it is carrying on with the mergers of its two private
banking businesses -- Banque Privée Saint Dominique and La
Compagnie 1818 - Banquiers Privés -- in line with the schedule
decided on last year and with the full agreement of its main
shareholders, Banque Fédérale des Banques Populaires and Caisse
Nationale des Caisses d'Epargne.

In a Feb. 9 statement, Natixis appointed Paul-Louis Netter,
currently Chief Executive Officer of Banque Privée Saint
Dominique, as Chairman of the Executive Board of La Compagnie 1818
- Banquiers Privés -.

Natixis also appointed Sophie Lazarevitch, currently a member of
the Executive Board of La Compagnie 1818 – Banquiers privés -, as
Deputy Chief Executive Officer of Banque Privée Saint Dominique.

Both of them will hold concurrently both positions within Banque
Privée Saint Dominique et La Compagnie 1818 – Banquiers privés -.

                        About Natixis SA

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

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Feb. 5,
2009, Fitch Ratings placed Groupe Caisse d'Epargne, Groupe Banque
Populaire and Natixis SA's Long-term Issuer Default Ratings of
'A+' respectively on Rating Watch Negative.  The agency
simultaneously downgraded the Individual Ratings of GCE and GBP to
'C/D' from 'C' and downgraded Natixis's Individual Rating to 'E'
from 'D'.

Fitch also placed the LT IDRs of GCE's and GBP's central bodies,
Caisse Nationale des Caisses d'Epargne et de Prevoyance and Banque
Federale des Banques Populaires, on RWN.  Tier 2 qualifying
subordinated debt issued by CNCE, BFBP and Natixis,
rated 'A', was also placed on RWN.  Tier 1 qualifying subordinated
debt (deeply subordinated debt - 'titres super subordonnes')
issued by CNCE and NBP Capital Trust I's issues have been
downgraded to 'BB+' from 'A', and placed on RWN.


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


AERODYNAMISCHE ANBAUTEILE: Claims Registration Ends March 17
------------------------------------------------------------
Creditors of Aerodynamische Anbauteile Vetriebsgesellschaft mbH
have until March 17, 2009, to register their claims with court-
appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on April 28, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Reinbek
         Parkallee 6
         21465 Reinbek
         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:

         Berthold Brinkmann
         Sechslingspforte 2
         22087 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Feb. 2, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Aerodynamische Anbauteile
         Vetriebsgesellschaft mbH
         Attn: Horst Albrecht, Manager
         Kurt-Fischer St. 15
         22926 Ahrensburg
         Germany


B N J GMBH: Claims Registration Period Ends March 17
----------------------------------------------------
Creditors of B'n'J GmbH Multimarkt have until March 17, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on April 28, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Reinbek
         Parkallee 6
         21465 Reinbek
         Germany

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

The insolvency manager can be reached at:

         Dr. Steffen Koch
         Albert-Einstein-Ring 11
         22761 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Feb. 2, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         B`n`J GmbH Multimarkt
         Attn: Joern Unruh, Manager
         Heinrich-Hertz-Str. 5
         22941 Bargteheide
         Germany


BOLLMANN SYSTEMS: Claims Registration Period Ends March 20
----------------------------------------------------------
Creditors of Bollmann Systems 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 9:45 a.m. on April 7, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Konstanz
         Hall 102
         Gerichtsgasse 9
         78462 Konstanz
         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:

         Hedwig Hanhoerster
         Untere Laube 43
         78462 Konstanz
         Germany

The District Court opened bankruptcy proceedings against the
company on Feb. 2, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Bollmann Systems GmbH
         Attn: Klaas Reinders, Manager
         Zeppelin St. 14
         78244 Gottmadingen
         Germany


HEIDELBERGCEMENT AG: Hopes to Fix Balance Sheet by Mid-Year
-----------------------------------------------------------
Bloomberg News reports HeidelbergCement AG aims to conclude a
financial overhaul by mid-year and said it is selling businesses
and searching for investors.

Parties have shown a "lively interest" in investing in the
company, Bloomberg News cited Chief Executive Officer Bernd
Scheifele as saying during a conference call.

According to Bloomberg News, HeidelbergCement expects to find
buyers for assets including steel and concrete piping units and
has taken steps to sell lime businesses in Germany.  Assets
outside the main areas of cement, aggregates and concrete will be
sold over the next two to three years, the company said, as cited
by the news agency.

Based on the company's preliminary figures, turnover for the full
year 2008 increased to approximately EUR14.2 billion (previous
year: 10.9).

The company expects operating income to increase to more than EUR2
billion (previous year: 1.8).

As reported in the Troubled Company Reporter-Europe on Jan. 16,
2009, HeidelbergCement engaged Morgan Stanley as financial advisor
for the disposal of its non-strategic assets.

The process is independent of the financial situation at company
shareholder VEM Vermoegensverwaltung GmbH, the cement maker noted
in a statement.

According to Bloomberg News, the German company has EUR5.6 billion
(US$7.4 billion) in bonds and loans coming due in 2010, mostly
stemming from the purchase of Britain's Hanson Plc in the
industry's biggest-ever takeover.

HeidelbergCement said it aims to extend the maturities of its bank
financing.  The company also expects to benefit from the various
stimulus packages around the globe and resulting infrastructure
spending despite the current global financial and economic crisis.

In a Feb. 9 statement, HeidelbergCement said it is reorganizing
its financing structure and aims to reach a long-term solution by
the middle of 2009, in consultation with all parties.

"The financial reorganization at HeidelbergCement is independent
of the pending measures taken by the minority shareholder VEM,
with which HeidelbergCement has no credit relationship," the
company noted in the statement.

                     About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG (FRA:HEI)  --
http://www.heidelbergcement.com/-- is a global producer of
cement, concrete and building materials.  The Company's core
activities include the production and distribution of cement and
aggregates, the two raw materials for concrete.  It is also
engaged in in the provision of such products as ready-mixed
concrete, as well as concrete products and elements.  It divides
its activities into four group areas: Europe-Central Asia, North
America, Asia-Australia-Africa-Mediterranean and Group Services.
It divides its products into three lines: cement, aggregates and
concrete and building products.  Its products include sand,
gravel, crushed stone, white cement, trass cement, masonry cement,
aquament and portland cement for hydraulic engineering, as well as
light, heavy and aerated concrete building blocks, pavers,
prefabricated ceilings and walls, prefabricated cellar units and
prefabricated sewage works units, among others.  In 2007, the
Company took over Hanson Group.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 13,
2009, Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on HeidelbergCement AG to 'B+' from 'BB-'.
At the same time, S&P affirmed the 'B' short-term rating.  All the
ratings remain on CreditWatch with negative implications, where
they had been initially placed on Oct. 24, 2008.

As reported in the Troubled Company Reporter-Europe on Dec. 9,
2008, Fitch Ratings downgraded HeidelbergCement AG's Long-term
Issuer Default and senior unsecured ratings to 'BB-' (BB minus)
from 'BB+' and placed the ratings on Rating Watch Negative.  The
Short-term IDR was affirmed at 'B'.

As reported in the Troubled Company Reporter-Europe on Dec. 5,
2008, Moody's Investors Service downgraded HeidelbergCement's
corporate family and debt issuance ratings to Ba3 from Ba1.  The
outlook on the ratings is negative.


HEIDELBERGCEMENT AG: Moody's Cuts Corp. and Issue Ratings to 'B1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded HeidelbergCement's
corporate family and issue ratings to B1 from Ba3.  The ratings
have been put on review for further downgrade.

The rating action was prompted by continued uncertainty with
regards to HeidelbergCement's refinancing options and concerns
that 2009 might be a challenging year for the company's
performance given the expected weakness of the economic
environment.  At the same time the rating continues to incorporate
that HC is a world class building materials company with a solid
business profile based on diversified global footprint and good
historical profitability, which should allow the company to
generate significant free cash-flow when the economy turns around.

Moody's notes that HC has already started negotiations with
potential new shareholders as well as with its banks to improve
the company's capital structure and to extend the intermediate
term maturities together with a change in the covenant levels
under its loan agreements.  However, since the negotiations have
yet to lead to concrete results and given that the next covenant
test is only a few months away per June 30, 2009 the risks related
to a restructuring for HeidelbergCement are continuously
increasing.

Should HC successfully attract sufficient new equity and receive
agreement from its banks to amend the covenant structure and
extend the tenor of its major credit agreements, the rating could
be confirmed or reversed depending on the degree of rehabilitation
and cushion in the amended financial structure.  Absent of a clear
remedy materially HC is exposed to increasing short-term liquidity
risks given the high likelihood of a breach of its covenants per
mid 2009.

The majority of HC's debt is at the holding company level and all
debt in the capital structure is currently senior unsecured.  The
legacy Hanson debt is guaranteed by HC and the debt-issuing
entities at Hanson are providing upstream guarantees in favour of
HC, thus seeking to equalize the position of the Hanson bonds with
other senior unsecured debts issued by HC.

Moody's understands that the bond documentation might allow bank
lenders under certain conditions to be secured by assets or
upstream guarantees without triggering negative pledge clauses.
Therefore a subordination of the bonds might -- according to
Moody's LGD methodology -- lead to a differential of up to two
notches to the assigned corporate family rating should the
company's banks successfully strengthen their security package.

Given the weakness of the end markets for building materials and
the size of the debt service requirement, HC's ability to generate
positive free cash flows in the current financial year is viewed
as limited despite the introduction of economic stimulus packages
in several of the regions in which HC is active, namely the US,
the UK and Germany.  Positive effects from these packages, which
predominantly include investments in infrastructure and education,
are only expected very late in 2009 and during 2010.  Moody's also
notes that in the past public construction, such as infrastructure
construction, has only accounted for around 35% of the company's
turnover, hence, any positive effects may be dampened should
economic growth remain subdued for a longer period than expected.

The rating also takes into account continued uncertainties at the
Merckle group, which is also exposed to liquidity and leverage
concerns but the direct risks and uncertainties relating to these
vehicles are excluded.

Downgrades:

Issuer: Hanson Australia Funding Limited

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B1
     from Ba3

Issuer: Hanson Building Materials Limited

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B1
     from Ba3

Issuer: Hanson Limited

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B1
     from Ba3

Issuer: HeidelbergCement AG

  -- Probability of Default Rating, Downgraded to B1 from Ba3

  -- Corporate Family Rating, Downgraded to B1 from Ba3

  -- Senior Unsecured Medium-Term Note Program, Downgraded to B1
     from Ba3

Issuer: Heidelbergcement Finance B.V.

  -- Senior Unsecured Medium-Term Note Program, Downgraded to B1
     from Ba3

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B1
     from Ba3

Outlook Actions:

Issuer: Hanson Australia Funding Limited

  -- Outlook, Changed To Rating Under Review From Negative

Issuer: Hanson Building Materials Limited

  -- Outlook, Changed To Rating Under Review From Negative

Issuer: Hanson Limited

  -- Outlook, Changed To Rating Under Review From Negative

Issuer: HeidelbergCement AG

  -- Outlook, Changed To Rating Under Review From Negative

Issuer: Heidelbergcement Finance B.V.

  -- Outlook, Changed To Rating Under Review From Negative

Moody's last rating action on HeidelbergCement on December 3, 2008
was to downgrade the company's ratings to Ba3 with a negative
outlook .

HeidelbergCement AG is the world's third-largest cement producer.
HC generated sales of EUR13,8 billion per last 12 months
(September 2008).  With the acquisition of UK building materials
producer Hanson plc in mid-2007, HC is now the world's largest
producer of aggregates with an annual output in 2007 of 334 mt,
and the second-largest producer of ready-mixed concrete with an
output of 46 million cubic meters, behind Cemex.


PAGEMA GMBH: Claims Registration Period Ends March 18
-----------------------------------------------------
Creditors of PaGeMa GmbH have until March 18, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 1:09 p.m. on April 22, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         Gerichtsplatz 22
         44135 Dortmund
         Germany

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

The insolvency manager can be reached at:

         Thorsten Klepper
         Kleppingstrasse 20
         44135 Dortmund
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 29, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         PaGeMa GmbH
         Sandbochumer Weg 35
         59192 Bergkamen
         Germany

         Attn: Daniele Giglio, Manager
         Am Birkenbaum 21
         44339 Dortmund
         Germany


QIMONDA AG: Infineon Posts EUR404 Mln Net Loss on Insolvency
------------------------------------------------------------
Infineon reported results for the first quarter of the 2009 fiscal
year ended December 31, 2008.  Infineon prepares its result in
accordance with International Financial Reporting Standards
(IFRS).

                           Revenues

Infineon's revenues in the first quarter were EUR830 million, down
28 percent sequentially and 24 percent year-over-year.  The
sequential decrease reflects a decline in revenues in all of the
company's operating segments due to significantly lower demand as
a result of the global economic slowdown and inventory corrections
throughout the electronics supply chain.  The company's Automotive
and Wireless Solutions segments were most severely affected.
Overall, the company's revenues were slightly better than
forecasted, largely due to the stronger U.S. dollar against the
Euro.  Excluding effects of currency fluctuations, primarily
between the U.S. dollar and the Euro, and acquisitions and
divestitures, revenues decreased 32 percent sequentially and 26
percent year-over-year.

                          Net Loss

Net loss from continuing operations for the first quarter was
EUR116 million, resulting in basic and diluted loss per share from
continuing operations of EUR0.16.  For the prior quarter, net loss
from continuing operations was EUR297 million, and basic and
diluted loss per share from continuing operations was EUR0.45.

The loss from discontinued operations, net of tax, was EUR288
million for the first quarter.  This loss consisted of EUR93
million in connection with the recognition of currency translation
effects primarily related to Qimonda's sale of its interest in
Inotera to Micron and of EUR195 million in provisions and
allowances following Qimonda's filing of an application to open
insolvency proceedings.  Basic and diluted loss per share from
discontinued operations was EUR0.34.

For the first quarter, Infineon reported group net loss of EUR404
million, and basic and diluted loss per share of EUR0.50.

In line with an overall effort to focus on liquidity management,
the company reduced its investment in property, plant and
equipment and intangible assets, including capitalized development
costs to only EUR40 million for the quarter.  In addition,
Infineon reduced net working capital by EUR79 million.  Hence,
free cash outflow could be contained to negative EUR22 million for
the quarter despite cash outflow in connection with the IFX10+
program of EUR25 million.  The company also repurchased a total
nominal amount of EUR117 million of its convertible and
exchangeable bonds during the quarter.

                           Outlook

Infineon's outlook for the second quarter of the 2009 fiscal year
The drastic slowdown in world economic demand that started in the
first quarter of the 2009 fiscal year is expected to continue to
have a severe impact on overall demand levels in the second
quarter.  In addition, the company anticipates that inventory
reductions throughout the entire electronics supply chain will
continue.  As such, the company has relatively limited visibility
with respect to the revenue development, even in the second
quarter.  Within the limits of that low visibility, the company
currently expects revenues from continuing operations for the
second quarter to decrease by approximately 10 percent compared to
the first quarter.  After the significant decrease in demand in
the Automotive and Wireless Solutions segments in the first
quarter, the company expects these segments to be more resilient
in the second quarter compared to the first quarter.  By contrast,
the three other segments, Industrial & Multimarket, Chip Card &
Security and Wireline Communications, are expected to be more
severely affected by the continuing slowdown in the second
quarter.

Additional savings measures implemented under the IFX10+ program
are expected to result in substantial additional cost and cash
savings over and above the savings levels realized in the prior
quarter.  As a consequence of continued sales declines and an
aggressive reduction in factory loading in order to reduce
inventory, Infineon expects combined Segment Result margin in the
second quarter to be within the range of a negative mid-to-high
teens percentage.  Without the additional measures described
above, the impact of lower sales and factory loading on the
bottomline would have been significantly more severe.

Following Qimonda's insolvency filing, Infineon expects to
deconsolidate Qimonda in the second quarter.  In this context, the
company anticipates that it will recognize accumulated losses
related to unrecognized currency translation effects related to
Qimonda.  As of December 31, 2008, the amount of such accumulated
losses totaled approximately EUR100 million.  The recognition of
such accumulated losses will not have any impact on Infineon's
shareholders' equity.

"Despite extremely challenging market conditions, our first
quarter results held up reasonably well, largely due to very good
progress with our IFX10+ program.  We successfully focused on
liquidity management, contained cash outflows and lowered our
debt," said Peter Bauer, CEO of Infineon Technologies AG.  "In the
second quarter, market conditions will unfortunately worsen
further.  Responding to this challenge, we are reducing our cost
and CapEx levels further.  We will continue to focus on cash flows
by reducing inventory levels and fab loading even further and by
managing working capital tightly."

                          Qimonda

On January 23, 2009, Qimonda AG and its wholly owned subsidiary
Qimonda Dresden oHG filed an application at the Munich Local Court
to open insolvency proceedings.  Infineon's beneficial ownership
interest in Qimonda is 77.5 percent.  Following Qimonda's
insolvency filing, Infineon may be exposed to a number of
significant liabilities relating to the Qimonda business,
including pending antitrust and securities law claims, potential
claims for repayment of governmental subsidies received, and
employee-related contingencies.  In the first quarter of the 2009
fiscal year, Infineon has increased its provisions and allowances
by EUR195 million.  This amount covers those contingencies that
management believes are likely to occur and can be estimated with
reasonable accuracy at this time.  There can be no assurance that
such provisions and allowances recorded will be sufficient to
cover all liabilities that may ultimately be incurred in relation
to these matters.  Infineon anticipates that the majority of any
potential cash obligations the company may have in connection with
these matters would be payable, if at all, in periods after the
2009 fiscal year.

Effective March 31, 2008, Infineon reclassified the assets and
liabilities of Qimonda as held for disposal in its condensed
consolidated balance sheets.

The net book value of Infineon's interest in Qimonda in Infineon's
condensed consolidated balance sheet as of December 31, 2008 has
been recorded at the estimated fair value less costs to sell.

                         About Infineon

Infineon Technologies AG -- http://www.infineon.com-- is a
semiconductor company.  The company designs, develops,
manufactures and markets a range of semiconductors and complete
systems solutions used in a variety of microelectronic
applications, including computer systems, telecommunications
systems, consumer goods, automotive products, industrial
automation and control systems, and chip card applications.  Its
products include standard commodity components, full-custom
devices, semi-custom devices and application-specific components
for memory, analog, digital and mixed-signal applications.  The
company has operations, investments and customers located in
Europe, Asia and North America.  Infineon operates through its
five business segments: Automotive, Industrial and Multimarket,
Chip Card and Security, Wireless Solutions and Wireline
Communications. Infineon's memory products business is conducted
through its subsidiary, Qimonda AG.

                          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.


SENATOR TECHNOLOGY: Claims Registration Period Ends March 23
------------------------------------------------------------
Creditors of Senator Technology GmbH have until March 23, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on April 21, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Tostedt
         Meeting Room I
         Area CE.02
         Linden 23
         21255 Tostedt
         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:

         Gregor Schoene
         Haferweg 22
         D 22769 Hamburg
         Germany
         Tel: 040/89 71 86-0
         Fax: 040/89 71 86-11

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

The Debtor can be reached at:

         Senator Technology GmbH
         Attn: Hans-Eckart Joost, Manager
         Buergermeister-Kroeger-Strasse 36
         21244 Buchholz
         Germany


TELEPROFIT GMBH: Claims Registration Period Ends March 20
---------------------------------------------------------
Creditors of Teleprofit 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 10:10 a.m. on April 4, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Cologne
         Room 142
         Luxemburger Strasse 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Dr. Henning Dohrmann
         Moltkestr. 12
         51643 Gummersbach
         Germany
         Tel: 02261/9279-0
         Fax: +49226192799

The District Court opened bankruptcy proceedings against the
company on Jan. 28, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Teleprofit GmbH
         Koelner St. 169
         51702 Bergneustadt
         Germany

         Attn: Wolfgang Lobbe, Manager
         Herweg 67
         51702 Bergneustadt
         Germany


===========
G R E E C E
===========


DRYSHIPS INC: Has Preliminary Pact with Bank for Covenant Waiver
----------------------------------------------------------------
DryShips Inc. has reached preliminary agreement with Nordea Bank
Finland Plc to obtain a covenant waiver in connection with the
US$800.0 million Primelead facility, which was used to partially
finance the acquisition of Ocean Rig ASA.  The outstanding loan
amount under the facility is US$650.0 million.

In accordance with the main terms of the waiver: (i) the Company
will pay a restructuring fee of 0.15% on the outstanding loan
amount under the facility plus an amount equal to 1.00% per annum
on the loan outstanding for the period from January 9, 2009 until
the Effective Date of the waiver agreement; (ii) US$75.0 million
of principal repayment due February 2009 will be postponed until
May 2009; (iii) the margin on the facility will increase by 1.00%
to 3.125% per annum; and (iv) regular principal payments will
resume as of August 2009.

In addition, among other things, lender consent will be required
for the acquisition of DrillShip Hulls 1837 and 1838, for new cash
capital expenditures or commitments and for new acquisitions for
cash until the loan has been repaid to below US$375.0 million.
The waiver agreement Effective Date will not exceed August 12,
2009, at which time the Company expects to be in compliance with
the restructured loan covenants. The agreement is preliminary and
is subject to formal approvals by the Company and the syndicate
banks (Nordea Bank Finland Plc, DnB NOR Bank ASA and HSH Nordbank
AG).

                        About DryShips Inc.

DryShips Inc. (DRYS) -- http://www.dryships.com-- based in
Greece, owns and operates drybulk carriers that operate worldwide.
DryShips owns a fleet of 43 drybulk carriers comprising 7
Capesize, 29 Panamax, 2 Supramax and 5 newbuilding drybulk vessels
with a combined deadweight tonnage of over 3.4 million tons, 2
ultra deep water semisubmersible drilling rigs and 2 ultra deep
water newbuilding drillships.  DryShips Inc.'s common stock is
listed on the NASDAQ Global Market where trades under the symbol
"DRYS."


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


KAUPTHING BANK: To File Suit v. Oscatello Over GBP643Mln Overdraft
------------------------------------------------------------------
Kaupthing Bank hf is to file a lawsuit against Oscatello
Investments, a British Virgin Islands holding company controlled
by property tycoon Robert Tchenguiz, for an unpaid overdraft of
GBP643 million, Julia Finch at the Guardian reports citing a claim
filed in a Reykjavik court.

The report recalls the overdraft had been extended to Oscatello in
December 2007 with direct and indirect investments in companies
including J Sainsbury and pub group Mitchell & Butlers, as
well as shares in Icelandic financial investment company Exista,
as collateral.

Mr. Tchenguiz, the report recounts, disposed his stakes in J
Sainsbury and Mitchell & Butlers in a rush sale in October to meet
loan recall demands from the bank.  He personally lost more than
GBP800 million on the share sales, the report states.

The report relates creditor-appointed management at Kaupthing are
seeking to find out why the credit approval committee at the bank
approved the loan to Mr. Tchenguiz partly with indirect
investments as collateral.

Mr. Tchenguiz however told the Guardian Oscatello is now under the
control of Kaupthing, noting he had not been cited in any legal
action.

According to the report, many of the tycoon's other ventures are
deeply intertwined with the bank.

                       About Kaupthing Bank

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

                          *     *     *

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

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


KAUPTHING BANK: Mulls Restructuring of Mosaic, Eyes Full Takeover
-----------------------------------------------------------------
Kate Walsh and Jenny Davey at The Sunday Times report that
Kaupthing bank hf is considering a financial restructuring of
Mosaic Fashions hf.

According to the report, accountants Deloitte are expected to
handle the process on behalf of Kaupthing, which is eyeing a full
takeover of Mosaic.

BDO Stoy Hayward is advising the Mosaic management team led by
Derek Lovelock, the report discloses.

Kaupthing, the report says, plans to inject fresh funds into
Mosaic, which is 49%-owned by Baugur.

The report states Baugur's stake in Mosaic is in effect worth
nothing as it is buried under about GBP450 million of debt that
was provided by Kaupthing.

On Jan. 7, 2009, the TCR-Europe, citing The Sunday Times, reported
that Mosaic was set to enter talks with Kaupthing on its working
capital needs in an attempt to secure the long-term future of the
company, which had been hit for months by the withdrawal of credit
insurance.

The report disclosed among the options considered include a debt-
for-equity swap, injecting more cash into the business or selling
the debt to one of a string of potential suitors, including Sir
Philip Green, the BHS owner, or Alchemy, the private-equity group.

According to the report, if the company failed to reach a
deal in the next few months it could enter into administration
because the management team will not want to break City rules
preventing a business from trading if it is technically insolvent.

The report recalled some suppliers were demanding upfront
payments from Mosaic, putting pressure on the company's balance
sheet.

Mosaic, the report noted, was unable to make any interest
payments on its estimated GBP400 million debt pile as its loans
are under the control of a government-appointed committee now
running Kaupthing.

                          About Mosaic

Mosaic Fashions hf -- http://www.mosaic-fashions.co.uk/-- is the
parent company of eight design-led fashion brands; Anoushka G,
Coast, Karen Millen, Oasis, Odille, Principles, Shoe Studio and
Warehouse.

                       About Kaupthing Bank

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

                          *     *     *

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

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


KAUPTHING BANK: Moody's Downgrades Deposit Rating to 'C'
--------------------------------------------------------
Moody's Investors Service downgraded the long-term deposit rating
to C from Caa1 and senior debt ratings to C from Caa2 of Kaupthing
Bank hf.  The bank's E bank financial strength rating and Not
Prime short-term local and foreign currency deposit ratings were
affirmed.  This rating action concludes the review for possible
downgrade on Kaupthing's long-term ratings.  The outlook on all
the ratings is stable.

On October 9, 2008, Moody's downgraded Kaupthing's ratings and
placed them on review for possible downgrade after Kaupthing's UK-
based subsidiary, Kaupthing Singer & Friedlander, was placed in
administration by the UK Financial Services Authority, which led
to Kaupthing defaulting on its obligations.  The bank is currently
protected from creditors by a moratorium, which will formally
expire on February 13, 2009, although Moody's understands that a
nine-month extension has been requested by the bank.

Moody's said that the rating action reflects Kaupthing's
preliminary asset valuations, which were disclosed on February 5,
2009.

The downgrades of the deposit and senior debt ratings reflect
Moody's expectation that recoveries by depositors and senior
creditors are likely to be low.  Preliminary asset valuation on
all asset classes indicates recovery rates of below 30% on senior
debt and deposits, which is consistent with the C rating.  Moody's
notes that about half of the deposits of ISK96 billion are defined
as priority claims.  Consequently, these deposits could
potentially exhibit a higher recovery rate.  Nevertheless, the
rating agency does not distinguish between different deposit
classes.

The last rating action on Kaupthing was implemented on October 9,
2008 when its long-term ratings were placed on review for possible
downgrade.

Headquarted in Reykjavik, Iceland, Kaupthing Bank hf reported
assets of ISK6,604 billion (EUR52.8 billion) at the end of June
2008.


MOSAIC FASHONS: Kaupthing Eyes Takeover, Mulls Restructuring
------------------------------------------------------------
Kate Walsh and Jenny Davey at The Sunday Times report that
Kaupthing bank hf is considering a financial restructuring of
Mosaic Fashions hf.

According to the report, accountants Deloitte are expected to
handle the process on behalf of Kaupthing, which is eyeing a full
takeover of Mosaic.

BDO Stoy Hayward is advising the Mosaic management team led by
Derek Lovelock, the report discloses.

Kaupthing, the report says, plans to inject fresh funds into
Mosaic, which is 49%-owned by Baugur.

The report states Baugur's stake in Mosaic is in effect worth
nothing as it is buried under about GBP450 million of debt that
was provided by Kaupthing.

On Jan. 7, 2009, the TCR-Europe, citing The Sunday Times, reported
that Mosaic was set to enter talks with Kaupthing on its working
capital needs in an attempt to secure the long-term future of the
company, which had been hit for months by the withdrawal of credit
insurance.

The report disclosed among the options considered include a debt-
for-equity swap, injecting more cash into the business or selling
the debt to one of a string of potential suitors, including Sir
Philip Green, the BHS owner, or Alchemy, the private-equity group.

According to the report, if the company failed to reach a
deal in the next few months it could enter into administration
because the management team will not want to break City rules
preventing a business from trading if it is technically insolvent.

The report recalled some suppliers were demanding upfront
payments from Mosaic, putting pressure on the company's balance
sheet.

Mosaic, the report noted, was unable to make any interest
payments on its estimated GBP400 million debt pile as its loans
are under the control of a government-appointed committee now
running Kaupthing.

                    About Kaupthing Bank

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

                      About Mosaic

Mosaic Fashions hf -- http://www.mosaic-fashions.co.uk/-- is the
parent company of eight design-led fashion brands; Anoushka G,
Coast, Karen Millen, Oasis, Odille, Principles, Shoe Studio and
Warehouse.


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


WATERFORD WEDGWOOD: KPS Named Preffered Bidder, Irish Times Says
----------------------------------------------------------------
Barry O'Halloran at The Irish Times reports that U.S.-based
private equity fund KPS Capital is the preferred bidder for
Waterford Wedgwood Capital plc.

The report relates according to sources, KPS was now more likely
to succeed.

KPS, the report says, is willing to restart production at the
group's headquaters in Kilbarry, Waterford.

The report recalls the Kilbarry plant ceased manufacturing after
the receiver ran out of cash.

According to the report, the Irish government could provide up to
EUR10 million in aid to the company once it restarts operations
under a new owner, which is expected to be named this week.

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.

As reported in the TCR-Europe, Waterford Wedgwood plc along with
10 subsidiaries entered administration on Jan. 5, 2009.  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

Waterford Wedgwood plc is the ultimate holding 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.


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


FERRETTI SPA: Defaults on EUR1.08 Billion Senior Loans
------------------------------------------------------
Ferretti SpA missed an interest payment on EUR1.08 billion (US$1.4
billion) of senior loans used to finance its buyout in 2007,
Bloomberg News reports citing a letter it obtained from facility
agent Royal Bank of Scotland Group Plc.

Data compiled by Bloomberg said Ferretti raised EUR1.28 billion of
senior and so-called mezzanine loans in January 2007 to fund
private equity firm Candover Investments Plc's purchase of a
majority stake through a leveraged buyout.  Reuters says Candover
bought a majority stake in Ferritti from Permira for EUR1.7
billion (US$2.2 billion) in 2007, backed by a loan arranged by
Mediobanca and Royal Bank of Scotland.

RBS's letter, according to Bloomberg News, said Ferretti failed to
make a EUR1.4 million payment on the loans Jan. 30, constituting
an "event of default."

The report relates Ferretti said in a Feb. 9 statement that the
payment is related to an interest-rate swap with RBS on the senior
loan, and that it earlier failed to pay interest on the debt's
EUR200 million lower-ranking "mezzanine" facility.

"Ferretti SpA specifies that it was not in default with respect to
the payment of interest on the senior debt and that the only
missed payment regards the interest on the mezzanine debt,"
Ferretti said in the statement cited by Bloomberg News, noting the
EUR1.4 million payment "relates to an interest-rate swap contract
in place between Royal Bank of Scotland and Ferretti."

According to the report, Ferretti sought to renegotiate the loans
and is being advised by NM Rothschild & Sons Ltd.

RBS is "working with the company to find the best solution,"
Bloomberg News quoted Piers Townsend, a London-based spokesman, as
saying.  Lenders are considering a debt restructuring proposed by
the company, RBS's Feb. 3 letter said as cited by Bloomberg News.

                          LCDS Auction

Holders of Ferretti's loan credit default swaps (LCDS) will hold
an auction on the synthetic loan protection contracts after the
luxury yacht maker defaulted on its debt in late January, Reuters
reports citing Markit.

Reuters says a date for the auction has not been set.

Ferretti, a member of the LevX series 3 senior and subordinated
indices, will be removed from the European LCDS index after the
auction, Reuters discloses.

                         About Ferretti

Ferretti SpA – http://www.ferretti-yachts.com/-- is engaged in
the luxury yacht sector in Italy.  The company is a producer of
luxury-class sport, fishing, flybridge and motor-powered nautical
vessels.  The organization comprises the Custom Line, Pershing,
CRN, Riva, Apreamare, Bertram and Ferretti brands of motor-powered
yachts used in racing competitions, as well as in leisure and
fishing activities.  The Ferretti brand offers yachts that range
from 43 to 80 feet; Custom Line offers yachts that range from 94
to 128 feet; CRN offers 100-foot cruisers; Pershing offers speed
boats that range from 37 to 88 feet; Riva offers luxury yachts
that range from 33 to 84 feet; Bertram offers fishing vessels that
range from 36 to 73 feet, and Apreamare offers leisure speed boats
that range from 22 to 39 feet.


IT HOLDING: Moody's Downgrades Probability of Default Rating to D
-----------------------------------------------------------------
Moody's Investors Service has downgraded IT Holding SpA's
Probability of Default Rating to D from Ca and the Senior Secured
rating on the EUR185 million notes due 2012 issued by IT Holding
Finance SpA from Ca to C.  The Corporate Family Rating remains
unchanged at Ca. The outlook on the ratings is stable.

Moody's PDR downgrade to D was prompted by IT Holding's February
9, 2009 decision to place the main operating subsidiary, Ittierre,
into administration under the Italian law.  "Although the
company's decision will allow the group some time to restructure
the business, under the indenture governing the EUR185 million
bond, this constitutes an event of default and, as a result, the
notes become immediately redeemable", explains Paolo Leschiutta, a
Vice President -- Senior Analyst in Moody's Corporate Finance
Group.  Moody's understands that the company's decision follows
the operating difficulties the company is facing due to adverse
market conditions and soft consumer spending and the difficulties
in obtain further support from key banks", continued Mr.
Leschiutta.  As indicated by Moody's in its December 2008 press
release when it downgraded IT Holding's CFR to Ca, failure to
secure further support from the banks could have resulted in an
event of default.

In November 2008 IT Holding's core banks provided the company with
an agreement to delay a EUR9.4 million payment that was due by the
end of October 2008 under the EUR85 million senior bank loan.  The
extension was granted until the 22nd of December.  The company
requested a further postponement of the payment as trading
activity during the last quarter of the year was affected by
weaknesses in the apparel market and was below expectations.

The CFR of Ca reflects Moody's expectation that the potential
recovery rate at the family level following the default should be
in line with the standard 50%.  However, the C (LGD5, 70%) rating
on the notes deviates from the LGD model outcome as Moody's
expects recovery rate on the notes to remain relatively low.  In
its recovery calculation, Moody's has taken into consideration on
one side the potential negative impact on asset valuation due to
difficult market condition in case of liquidation, but also the
upside potential provided by the fact that the administrator might
still look for a different solution to the liquidation.

Downgrades:

Issuer: IT Holding Finance S.A.

  -- Senior Secured Regular Bond/Debenture, Downgraded to C (LGD5,
     70%) from Ca,

Issuer: IT Holding S.p.A

  -- Probability of Default Rating, Downgraded to D from Ca

  -- Outlook is stable.

The last rating action on IT Holding was on 22 December 2008 when
Moody's downgraded the company's CFR to Ca.

Based in Italy, IT Holding S.p.A. is a European leading operator
in the branded apparel and accessories market mainly focused on
the young lines segment.  During the first nine months ended
September 2008, IT Holding reported EUR468 million of consolidated
net revenues and EUR38.2 million of EBITDA (adjusted for
investments in collection development during the period).


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


AG INVEST: Proof of Claim Deadline Slated for March 21
------------------------------------------------------
JSC AG Invest has declared insolvency.  Creditors have until
March 21, 2009, to submit written proofs of claim to:

         JSC AG Invest
         Dostyk ave. 87v
         Almaty
         Kazakhstan
         Tel: 8 (7272) 44-76-38


BATAREYI NIRU: Creditors Must File Claims by March 21
-----------------------------------------------------
Branch of JSC Batareyi Niru has declared insolvency. Creditors
have until March 21, 2009, to submit written proofs of claim to:

         JSC Batareyi Niru
         Suyunbai St. 143
         Almaty
         Kazakhstan


COMMERCIAL REAL: Claims Filing Period Ends March 21
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared JSC Commercial Real Estate insolvent on Dec. 23, 2008.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Office 74
         Kazybek bi St. 50
         Almaty
         Kazakhstan
         Tel: 8 (7272) 72-12-50
              8 (7272) 72-18-09


GROUP SEMEY: Creditors' Proofs of Claim Due on March 21
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Transport Company Trans Group Semey insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Mashinostroiteley St. 6-63
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel:  8 (7232) 55-02-78


KAZAKH MORTGAGE: Moody's Puts Ba2-Rated Notes on Downgrade Review
-----------------------------------------------------------------
Moody's Investors Service has downgraded and placed on review for
possible downgrade these classes of Notes issued by Kazakh
Mortgage-Backed Securities 2007-1 B.V.:

  - US$123,000,000 Class A Mortgage Backed Floating Rate Notes due
    2029, current rating A3, downgraded to Baa1 on review for
    possible downgrade;

  - US$11,300,000 Class B Mortgage Backed Floating Rate Notes due
    2029, current rating Baa2, on review for possible downgrade;

  - US$7,100,000 Class C Mortgage Backed Floating Rate Notes due
    2029, current rating Ba2, on review for possible downgrade.

This action results from increased uncertainty related to the
recent depreciation of the Tenge against the US Dollar and the
resulting low but increased risk, in Moody's opinion, of
redenomination of USD-linked mortgages and loan agreements into
Tenge.  If such redenomination were to occur at an unfavourable
exchange rate, this would result in significant immediate losses
to the noteholders.  In addition, following a redenomination of
the portfolio, the transactions would suffer from an unhedged risk
with respect to the currency mismatch between the Tenge-
denominated portfolio and the US Dollar-denominated notes.

Moody's treats this risk as a low probability - high severity
event and incorporates it into its cash flow analysis.  The
probability of redenomination is determined by several factors
such as, among other things, the government's own rating, the
level of country-wide borrowing in foreign currencies, and the
actual and expected depreciation of the local currency against
these foreign currencies.  In the case of Kazakhstan, Moody's
believes the risk of redenomination is impacted by the
depreciation of the Tenge against the USD, which results in
significant stress on the individuals whose loans are linked to
US$and increases the pressure on the government to alleviate the
burden on the consumers.  The severity assumption in case of
redenomination is calculated using historical data from other
emerging securitisation markets as well as historical exchange
rate fluctuations at times of financial crises, if such has ever
occurred in the market.  Thus, even though this risk was taken
into account at the initial analysis stage and remains low,
Moody's believes that recent events have significantly increased
the probability of redenomination occurring in this jurisdiction.

Moody's will concentrate during the review process on any further
developments of the US$/ Tenge exchange rate, resulting
performance of the underlying assets, detailed discussions with
the sovereign team, and, if necessary, remodeling of
redenomination risk with updated assumptions.  In the meantime,
Moody's will continue to closely monitor the evolution of the
Tenge against the US$and the performance of the underlying
portfolio in the next quarterly periods.

Moody's previous rating action on notes issued by Kazakh Mortgage-
Backed Securities 2007-1 B.V. was on December 4, 2007 when the
ratings of the notes were affirmed following the downgrade of Bank
TuranAlem's Foreign Currency Senior Unsecured Debt Rating.


MOTORDETAL SK: Claims Registration Period Ends March 21
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Motordetal SK insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         308 Krasnoznamenny polk St. 37
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


STATION SAUDAKENT: Proof of Claim Deadline Slated for March 21
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared LLP State Utility Enterprise Machine-Technological
Station Saudakent insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Jambyl
         Suleymenov St. 17
         Taraz
         Jambyl
         Kazakhstan


STROY TECH SERVICE: Creditors Must File Claims by March 21
----------------------------------------------------------
LLP Corporation Stroy Tech Service has declared insolvency.
Creditors have until March 21, 2009, to submit written proofs of
claim to:

         LLP Corporation Stroy Tech Service
         Office 4
         Abylai han St. 60, 08
         Almaty
         Kazakhstan


TEPLO SNUB: Claims Filing Period Ends March 21
----------------------------------------------
LLP Atyrau Com Energo Teplo Snub has declared insolvency.
Creditors have until March 21, 2009, to submit written proofs of
claim to:

         LLP Atyrau Com Energo Teplo Snub
         Azattyk St. 101/4
         Atyrau
         Atyrau
         Kazakhstan


TEMIRBANK: Moody's Lowers Financial Strength Rating to 'E'
----------------------------------------------------------
Moody's Investors Service has downgraded the long-term bank
deposit and unsecured debt ratings of Temirbank to B2 from Ba3.
At the same time E+ bank financial strength rating was lowered to
E.  The bank's not Prime short-term ratings were affirmed.  Its
debt and deposit ratings remain on review for possible further
downgrade.

Moody's said that the downgrade of Temirbank's long-term deposit
and debt ratings has, in turn, been prompted by the lowering of
the bank's BFSR by one notch from E+ to E.

According to Moody's, the lowering of Temirbank's BFSR -- which
now maps to a Baseline Credit Assessment of Caa1 compared to B2
previously -- reflects the continuing rapid weakening of the
bank's liquidity profile along with a high reliance on the foreign
currency wholesale funding and the limited access for refinancing.
"In addition, the deterioration of the operating environment in
Kazakhstan -- leading to continuing asset quality erosion,
increasing FX risks and a decline in the bank's working assets -
all together, adversely affect the bank cash flow profile and
overall financial fundamentals including capital and
profitability, in particular," says Semyon Isakov, a Moscow-based
Moody's Analyst and lead analyst for this issuer.

In addition, Moody's also notes that in March 2009 Temirbank is
scheduled to repay a US$150 million Eurobond that -- amid the
devaluation of the local currency against the US dollar and tight
liquidity position of the bank -- renders the bank liquidity
profile highly vulnerable.

Moody's also notes that Temirbank's ratings currently continue to
benefit from the existing shareholder support from its controlling
parent BTA Bank, as a result of which it enjoy a two-notch uplift
from the bank's Baseline Credit Assessment.

At the same time, Temirbank's long-term deposit and unsecured debt
ratings remain on the review for possible further downgrade, that
reflects both the bank's weakening standalone financial profile as
well as the high degree of uncertainty with regard to the
shareholder support incorporated in the bank's rating.  Moody's
also says that debt and deposit ratings of Temirbank's parent, BTA
Bank, currently are on review for possible downgrade, and
therefore, if BTA Bank were to be downgraded there is also a high
likelihood of a corresponding downgrade on Temirbank's ratings.
In addition, the clearer position of Samruk-Kazyna -- the
controlling shareholder of the new BTA Bank - with regard to
Temirbank, may also affect the latter's long-term debt and deposit
ratings.

Moody's previous rating action on Temirbank was on 12 December
2008 when the long-term debt and deposit ratings were placed on
review for possible downgrade.

Headquartered in Almaty, Kazakhstan, Temirbank is the eighth-
largest bank in the country by total assets, and at end-June 2008
reported IFRS total assets of KZT321 billion (US$2.7 billion).


UK STROY SNUB: Creditors' Proofs of Claim Due on March 21
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Construction Company UK Stroy Snub insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Mashinostroiteley St. 6-63
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel:  8 (7232) 55-02-78


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


AVANTAGE HAIKO: Creditors Must File Claims by March 6
-----------------------------------------------------
LLC Avantage Haiko has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim to:

         LLC Avantage Haiko
         Sydykov Str. 119
         Bishkek
         Kygyzstan


NIHONG INTERNATIONAL: Creditors Must File Claims by March 6
-----------------------------------------------------------
LLC Nihong International has declared insolvency.  Creditors have
until March 6, 2009, to submit written proofs of claim to:

         LLC Nihong International
         Micro District 3, 7-56
         Bishkek
         Kyrgyzstan


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


EL PETROLEUM: Creditors Must File Claims by April 2
---------------------------------------------------
Creditors of CJSC El Petroleum (TIN 7710390848) (Petrochemicals
Production) have until April 2, 2009, to submit proofs of claims
to:

         L. Ponomareva
         Insolvency Manager
         Office 501
         Ploshchad' M. Gorkogo 4/2
         603000 Nizhny Novgorod
         Russia

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A40–8855/08–88–19B.

The Debtor can be reached at:

         CJSC El Petroleum
         Building 1
         Podyemnaya St. 12
         Moscow
         Russia


INVEST-STROY-KOM LLC: Moskovskaya Bankruptcy Hearing Set May 5
--------------------------------------------------------------
The Arbitration Court of Moskovskaya will convene on May 5, 2009,
to hear bankruptcy supervision procedure on LLC Invest-Stroy-Kom
(Construction).  The case is docketed under Case No. A41–21168/08.

The Temporary Insolvency Manager is:

         I. Grigoryeva
         Post User Box 166
         603000 Nizhny Novgorod
         Russia

The Debtor can be reached at:

         LLC Invest-Stroy-Kom
         Krasnaya St. 42
         Elektrostal'
         Moskovskaya
         Russia


LEBEDYANSKY OJSC: Moody's Withdraws 'Ba3' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the global scale ratings
of OJSC Lebedyansky for business reasons.  At the same time,
Moody's Interfax Rating Agency, which is majority owned by
Moody's, also withdrew the national scale rating of Lebedyansky
for the same reasons.

These ratings, which have been on review for possible upgrade, are
withdrawn:

  -- Corporate family rating at Ba3
  -- Probability of default rating at Ba3
  -- National scale rating at Aa3.ru

Moody's last rating action for Lebedyansky occurred on March 21,
2008, when the company's ratings were placed on review for
possible upgrade following PepsiCo acquisition announcement.

Lebedyansky is Russia's leading branded juice business with the
reported 2007 consolidated revenues of US$944.9 million. I n 2008,
PepsiCo purchased a major stake in the company.  On January 18,
2009, Lebedyansky's Board of Directors decided to redeem the
company's RUB1.5 billion bond, which is in circulation in the
Russian bond market, on March 3, 2009.


MECHANICAL PLANT OJSC: Yakutia Bankruptcy Hearing Set June 22
-------------------------------------------------------------
The Arbitration Court of Yakutia will convene at 3:00 p.m. on
June 22, 2009, to hear bankruptcy supervision procedure on OJSC
Mechanical Plant.  The case is docketed under Case No. A58–
5952/08.

The Temporary Insolvency Manager is:

         G. Potapov
         Post User Box 31
         Yakutsk-18
         677018 Yakutia
         Russia

The Debtor can be reached at:

         OJSC Mechanical Plant
         50 let Sovetskoy Armii 86/3
         677000 Yakutia
         Russia


MELANZH LLC: Creditors Must File Claims by April 2
--------------------------------------------------
Creditors of LLC Melanzh Textile Production Company have until
April 2, 2009, to submit proofs of claims to:

         M. Muradov
         Insolvency Manager
         Shkolnaya St. 7a
         Bogorodskaya
         153506 Ivanovo
         Russia

The Arbitration Court of Ivanovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A17–4217/2008.

The Debtor can be reached at:

         LLC Melanzh
         15 Proezd 4
         153506 Ivanovo
         Russia


MIKHAYLOVSKIY CHEMICAL: Creditors Must File Claims by March 2
-------------------------------------------------------------
Creditors of OJSC Mikhaylivskiy Chemical Reagents Plant have until
March 2, 2009, to submit proofs of claims to:

         S. Ogorodnikov
         Temporary Insolvency Manager
         Post User Box 2724
         Barnaul
         656065 Altayskiy
         Russia

The Arbitration Court of Altayskiy will convene on June 24, 2009,
to hear bankruptcy supervision procedure.  The case is docketed
under Case No. A03–13355/2008B.

The Debtor can be reached at:

         OJSC Mikhaylivskiy Chemical Reagents Plant
         Tsentralnaya St. 21
         Malinovoe ozero
         Mikhaylovskiy
         658969 Altayskiy
         Russia


MOSCOW CAPITAL: Moody's Downgrades Currency Deposit Ratings to 'C'
------------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local and
foreign currency deposit ratings of Russia's Moscow Capital Bank
to C from Caa2.  The bank's E bank financial strength rating and
Not Prime short-term local and foreign currency deposit ratings
were affirmed.  At the same time, Moody's Interfax Rating Agency
downgraded MCB's long-term national scale rating to C.ru from
B3.ru. Moscow-based Moody's Interfax is majority owned by Moody's.
All ratings are now at their lowest possible levels and the
outlook on the global scale ratings is stable.

According to Moody's, these rating actions conclude the review for
possible downgrade commenced by the rating agency on October 22,
2008, when MCB's BFSR, foreign and local currency deposit ratings
and NSR were downgraded to E/Caa2/B3.ru from E+/B3/Baa3.ru, which
was the most recent rating action taken by Moody's on MCB's
ratings.

Moody's says the downgrade of MCB's ratings to C -- the lowest
possible level -- reflects the rating agency's expectations of
losses of more than 50% of nominal value of obligations which are
likely to be incurred by the creditors holding the bank's senior
unsecured debt and deposits.  Moody's expectations as regards the
loss given default of MCB's creditors consider the fact that
individual depositors have preferential right for receiving their
deposits from the bank before satisfying claims of all other
senior unsecured creditors.  However, they do not capture the
possibility of receipt by these individual depositors of insurance
coverage from the State Corporation Deposit Insurance Agency, as
provided by Russian legislation.  Nor do these LGD calculations
refer to any potential scenario of the transfer of a part of
bank's obligations to another financial institution via the
intermediation of the DIA.

"MCB's C rating reflects Moody's expectation that absent deposit
insurance system or the possibility to transfer some portion of
MCB's assets and obligations to another bank, MCB's senior
unsecured creditors would recover less than 50% of their
investments.  This expectation is applicable to both individual
depositors enjoying preferential treatment and to all other
creditors," says Olga Ulyanova, a Moscow-based Assistant Vice
President - Analyst, and lead analyst for this issuer.

Moody's notes that on February 2, 2009 the Central Bank of Russia
withdrew MCB's banking license because of violation of laws, fall
in capital adequacy to the level below 2% and failure by the bank
to meet its obligations to creditors.

Domiciled in Moscow, Russia, Moscow Capital Bank reported total
IFRS assets of US$985 million, total shareholders' equity of US$92
million and a net income of US$20 million as at December 31, 2007.


NOVOSIBIRSKIY PRINTING: Court Names Insolvency Manager
------------------------------------------------------
The Arbitration Court of Novosibirskaya appointed V. Semenikhin as
Insolvency Manager for OJSC Novosibirskiy Printing and
Publishing Integrated Works (TIN 54006288300, PSRN
1045402496952).  The case is docketed under Case No. A45–
6597/2007.  He can be reached at:

         Ordzhonokidze Str 43
         630099 Novosibirsk
         Russia

The Debtor can be reached at:

         OJSC Novosibirskiy Printing and
         Publishing Integrated Works
         Krasny prospect 22
         630007 Novosibirsk
         Russia


REGION-STROY-M LLC: Creditors Must File Claims by March 2
---------------------------------------------------------
Creditors of LLC Region-Stroy-M (Construction) have until
March 2, 2009, to submit proofs of claims to:

         M. Zalogov
         Insolvency Manager
         Gruzinskaya St. 12b/34
         603005 Nizhny Novgorod
         Russia

The Arbitration Court of Mordovia commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A39–4496/2008–150/6.

The Debtor can be reached at:

         LLC Region-Stroy-M
         Lenina Prospect 91
         Saransk
         Mordovia
         Russia


RENOVA HOLDING: Moody's Cuts Corporate Family Rating to 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Renova Holding Ltd to Ba3 from Ba2 and maintained the
ratings under review for downgrade.  The rating action follows the
increase during 2008 in the investment company's leverage as a
result of new debt incurred to finance several acquisitions giving
rise to sizable debt service obligations during this fiscal year
at a time when the projected cash flow generation of the holding
is likely to be reduced by lower dividend flows resulting in the
group becoming possibly more reliant upon the timely execution of
divestitures to meet those obligations.

While Moody's notes that the company maintained substantial cash
balances at the end of 2008 and is taking steps to proactively
manage its liquidity position and debt service obligations, the
rating agency is concerned about a likely substantial decline in
the dividend stream from the core holdings over the next 12-24
months with the cash coverage metric under the Investment Holding
Companies methodology used to assess Renova's credit profile
likely falling towards 2 times in the medium term.  Moody's also
notes that the group will need to meet sizable debt service
payments that, in the absence of new committed lines, raise the
group's reliance on a timely execution of disposals in the current
difficult credit environment.  These considerations, together
taking into account its forecast liquidity profile, resulted in
Moody's assessment that the probability of default assumption
incorporated into the Renova's corporate family rating has
increased resulting in the assignment of a B2 Probability of
Default rating at this time.

Of further consideration is the impact of the decline in the
equity markets in the last quarter of 2008 and estimated
comparable reduction in the valuations of Renova's sizable
unlisted assets on the headroom that had existed under the group's
Market Value-based Leverage metrics.  At current market valuations
of the listed core assets, Moody's estimates that the market value
leverage of Renova is weakening towards 50% taking into account
scheduled repayments, that, if sustained, would be more in line
with a single-B rating category.  However, the Ba3 Corporate
Family Rating is supported at this time by the expectation of
relatively high family recovery rates in the event of a default
underpinned by the current market valuations of the core listed
assets.

The ratings remain under review for downgrade as the rating agency
continues to monitor the group's progress with the divestments and
provision of back-up facilities to support the medium-term
liquidity position.  Moody's notes that the ratings may be
downgraded should the Market Value-based Leverage ratio increase
further undermining expected family recovery rates, or if delays
in the implementation of the divestment programme or provision of
committed back-up lines result in further increases in Moody's
probability of default assumptions.

Moody's previous rating action on Renova was on the December 22,
2008 when the rating agency placed the Ba2 corporate family rating
under review for downgrade.

Renova Holding Ltd is a Bahamas-based investment holding company
with principal investments in TNK-BP, UC RUSAL, a number of
Russian power generation and distribution companies, as well as
chemical, machinery, telecoms and media and real estate companies
in Russia and Europe.  At the end of the first half of 2008, the
fair value of its portfolio was estimated at US$19.3 billion, with
the core investments concentrated in Russia.


RUSTUNA LLC: Creditors Must File Claims by March 2
--------------------------------------------------
Creditors of LLC Rustuna (Seafood Production) have until March 2,
2009, to submit proofs of claims to:

         A. Mikhaylov
         Temporary Insolvency Manager
         Apt. 6
         Krasnaya St. 29
         236000 Kaliningrad
         Russia

The Arbitration Court of Kaliningradskaya will convene on
Apr. 27, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. A21–8742/2008.


STOLITSA LLC: Creditors Must File Claims by March 2
---------------------------------------------------
Creditors of LLC Stolitsa Oil Company (TIN 1831077170, PSRN
1021801148621) have until March 2, 2009, to submit proofs of
claims to:

         V. Klyukin
         Temporary Insolvency Manager
         Office 32
         Pushkinskaya St. 114
         426076 Izhevsk
         Udmurtia
         Russia

The Arbitration Court of Udmurtia will convene on May 26, 2009, to
hear bankruptcy supervision procedure.  The case is docketed under
Case No. A71–11792/2008 G2.

The Debtor can be reached at:

         LLC Stolitsa
         Studencheskaya St. 48a
         48621 Izhevsk
         Udmurtia
         Russia


TRADE-OIL LLC: Creditors Must File Claims by April 2
----------------------------------------------------
Creditors of LLC Trade-Oil (TIN 7321308625) (Construction) have
until April 2, 2009, to submit proofs of claims to:

         S. Gromoglasov
         Insolvency Manager
         Post User Box 602
         603000 Nizhny Novgorod
         Russia

The Arbitration Court of Ulyanovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A72–3374/02–21/10-B.

The Debtor can be reached at:

         LLC Trade-Oil
         Solnechnaya St. 30
         Isheyevka
         433310 Ulyanovskaya
         Russia


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


CAIXA PENEDES: Fitch Downgrades Class C Notes to 'B'
----------------------------------------------------
Fitch Ratings has downgraded the ratings of two classes and
affirmed the rating of one class of Caixa Penedes PYMES 1 TdA,
Fondo de Titulizacion de Activos, and simultaneously assigned or
maintained rating Outlooks,:

  -- Class A (ISIN ES0357326000) affirmed at 'AAA'; assigned a
     Negative Outlook

  -- Class B (ISIN ES0357326018) downgraded to 'BBB' from 'A';
     assigned a Negative Outlook

  -- Class C (ISIN ES0357326026) downgraded to 'B' from 'BBB';
     Negative Outlook maintained

As of December 31, 2008, 90+ day delinquencies stood at 3.4% of
the current portfolio.  Further, the portfolio is highly
concentrated in real estate and related sectors with the current
exposure at 49%, and the largest geographical region is Barcelona
at 68.9%.  The transaction is also exposed to borrower
concentration with the largest borrower accounting for 1.4% of the
portfolio and the top five borrowers totaling EUR31 million or 5%.
The transaction closed in 2007 and has not benefited from de-
leveraging to the same degree as older vintage transactions.  The
current portfolio is 78.5% of initial portfolio balance, which has
led to a small increase in credit enhancement on the notes.  The
reserve fund of EUR13.4 million provides 2.2% of credit
enhancement.  Fitch's analysis of the delinquency pipeline and an
updated default forecast for the current portion of the portfolio
indicated that the credit protection for classes B and C was no
longer adequate to support the prior ratings and these classes
have thus been downgraded.  Class B has been assigned a Negative
Outlook, while class C has had a Negative Outlook maintained.  The
Negative Outlook assigned to class A reflects the transaction's
exposure to the delinquency pipeline and a longer term view on the
possibility of negative rating migration over the next 1 to 2
years due to the worsening of Spain's macroeconomic environment.

Fitch assigned Negative rating Outlooks between May and September
2008 to 19 tranches issued by Spanish small- and medium-sized
enterprise collateralized debt obligations due to a combination of
declining performance trends and the worsening macroeconomic
climate.  In a special report published on May 8, 2008, Fitch
discussed why the agency had a negative view for the next one-to-
two years and highlighted macroeconomic trends and concerns which,
the agency believes, increase the downgrade risk for such notes
over the long term.

Since then, Spanish macroeconomic conditions have deteriorated
sharply and there has been a notable increase in delinquencies
across SME CDO transactions.  Fitch expects further deterioration
due to the economic downturn and ongoing correction in the real
estate and related sectors, which is expected to accelerate over
the near-term.  However, many originators have begun to reinforce
collections efforts by adding staff and employing more proactive
collection strategies.  Given Fitch's expectation for further
credit deterioration in the SME segment, the agency continues to
review rated transactions to ensure the credit protection in place
is sufficient to maintain existing ratings.

In the analysis undertaken, assumptions on probability of default
and loss severity were made with regards to current delinquencies
as well as the performing portfolio.  With respect to default
probability, the base assumption on the current portion of the
portfolio was revised upward to reflect the non-investment grade
nature of underlying borrowers and to consider how the portfolio
or loans could perform through-the cycle.  This resulted in an
increase in the base default probability to approximately 10-15%,
which was then adjusted to reflect the remaining weighted average
life of the portfolio.  The base case PD was further adjusted to
account for the existing portfolio delinquency pipeline, with
loans in later state delinquency buckets assigned progressively
higher default probabilities (up to 100% for loans greater than
six months in arrears).  On the recovery side, Fitch assumed the
'BB' recovery from the initial rating analysis.  These updated PD
and recovery assumptions were used to determine an updated loss
expectation and then compared against existing subordination
available for each tranche, with minimum coverage ratios of the
updated expected loss driving the actions noted above.  Seasoning,
excess spread, as well as industry and borrower concentration risk
also factored into Fitch's credit view.

This transaction is a cash-flow securitization of a EUR790 million
static pool of secured and unsecured loans granted by Caixa
d'Estalvis del Penedes ('A-'(A minus)/Stable/'F2') to SMEs and
self-employed borrowers in Spain.  The issuer will be legally
represented and managed by Titulizacion de Activos S.G.F.T., S.A.
(the Sociedad Gestora), a limited liability company incorporated
under the laws of Spain, whose activities are limited to the
management of securitization funds.


FONCAIXA ICO: Moody's Assigns 'C' Rating on EUR5.2 Mil. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned these definitive ratings to
the series of residential mortgage-backed securitization bonds
issued by FONCAIXA ICO FTVPO 1 Fondo de Titulización de Activos, a
Spanish Asset Securitisation Fund created by Gesticaixa, S.G.F.T,
S.A.:

  -- Aaa to the EUR5.6 million Series AS notes
  -- Aaa to the EUR478.0 million Series A(G) notes
  -- Aa1 to the EUR20.8 million Series B notes
  -- A3 to the EUR15.6 million Series C notes
  -- C to the EUR5.2 million Series D notes

The ratings address the expected loss posed to investors by the
legal final maturity (November 2031).  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the rated final legal
maturity date on Classes A/B/C, and for ultimate payment of
interest and principal at par on or before the rated final legal
maturity date on Class D.  Moody's ratings address only the credit
risks associated with the transaction. Other non-credit risks have
not been addressed, but may have a significant effect on yield to
investors.

The FONCAIXA ICO-FTVPO 1 transaction consists of the
securitization of a pool of first-lien residential mortgage loans
originated and serviced by La Caixa (Aa1/P-1), one of the leading
Spanish banks and with a proven track record in the securitization
market.  FONCAIXA ICO-FTVPO 1, FTA is a RMBS transaction carried
out with the guarantee of the ICO (Aaa/P-1).  The loans included
in the securitization fund must comply with certain conditions of
the ICO FTVPO program.  The product being securitized is around
100% VPO properties.  VPOs are residential properties that are
offered at a lower price than the market value as a result of the
various forms of government aid.  This price reduction is possible
thanks to the subsidies provided by the government to the
construction companies, which enables them to reduce the final
purchase price of the property.

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) a 12-month artificial write-off mechanism; (3)
interest rate swap to hedge interest rate risk in the transaction
that also provides the weighted average interest rate on the
notes, plus 50 bps; and (4) Relatively good collateral in terms of
weighted average LTV (68.72%) and seasoning (3.35 years)
However, the transaction poses several challenging features,
namely: (1) no data on employment type; (2) The deferral of
interest payments on each of Series B, C and D benefits the
repayment of the series senior to each of them, but increases the
expected loss on Series B, C and D themselves; and (3) The pro-
rata amortisation of Series B, C and D leads to reduced credit
enhancement of the senior series in absolute terms.  These
increased risks were reflected in the ratings ofthe notes.

As of January 2008, the provisional portfolio comprised 14,446
loans.  The loans have been originated between 1999 and 2007, with
a weighted average seasoning of 3.35 years.  The interest rate is
floating for all the loans.  All the loans are secured by a first-
lien mortgage guarantee.  The total weighted average loan-to-value
is 68.72%

Moody's initially analysed and monitors this transaction using the
rating methodology for EMEA RMBS transactions as described in the
Rating Methodology reports.  Moody's based the definitve ratings
primarily on: (i) an evaluation of the underlying portfolio of
loans; (ii) analysis of the collateral historical performance;
(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 curve for this portfolio include a
Milan Aaa CE of 3.35% and an expected loss 0.42%.

The Spanish Government announced on November 4, 2008 a package of
aid to assist unemployed, self employed and pensioneer 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.


IM GRUPO: Moody's Reviews Ratings on Notes for Possible Downgrades
------------------------------------------------------------------
Moody's Investors Service has placed the ratings of the notes
issued by IM GRUPO BANCO POPULAR FTPYME II, FTA under review for
possible downgrade:

  - EUR1463 million Series A1 notes, Placed Under Review for
    Possible Downgrade; previously, on July 03, 2007 Assigned Aaa;

  - EUR200.3 million Series A2 notes, Placed Under Review for
    Possible Downgrade; previously, on July 03, 2007 Assigned Aaa;

  - EUR47 million Series B notes, Placed Under Review for
    Possible Downgrade; previously, on July 03, 2007 Assigned Aa2;

  - EUR23 million Series C notes, Placed Under Review for
    Possible Downgrade; previously, on July 03, 2007 Assigned A2.

  - EUR45 million Series D notes, Placed Under Review for Possible
    Downgrade; previously, on July 03, 2007 Assigned Baa3;

  - EUR39 million Series E notes, Placed Under Review for
    Possible Downgrade; previously, on July 03, 2007 Assigned
    Caa3.

Date of previous rating action: no previous rating action since
initial rating assignment in July 2007.

The rating of the EUR221.7 million Series A3(G) notes, Aaa, is not
placed on review for possible downgrade as it benefits from the
guarantee of the Government of Spain for interest and principal
payments.  However the expected loss associated with Series A3(G)
notes without the Spanish Government guarantee - which was
consistent with a Aaa rating at closing of the transaction -- may
need to be adjusted during the current rating review.

Moody's has also taken actions on the ratings of the notes issued
by IM GRUPO BANCO POPULAR FTPYME I, FTA.

The rating action has been prompted by the worse-than-expected
collateral performance.  Moody's expects to conclude the rating
review after receipt of additional information and a detailed
assessment of the effects of the deteriorating performance on the
outstanding ratings.  As part of the review process, Moody's will
also consider the terms and conditions of the Spanish Government
guarantee on the Series A3(G) notes.

As of November 2008, the outstanding 90+ delinquencies (i.e.
delinquencies equal or greater than 90 days) were equal to 2.23%
of the current portfolio balance compared to 1.03% as of the
previous quarterly reporting date.  The cumulative defaults were
equal to 0.18% of the original portfolio balance compared to 0.09%
as of the previous quarterly reporting date.  As part of the
review, Moody's consider also the exposure of the transaction to
the real estate sector (either through security in the form of a
mortgage or debtors operating in the real estate sector).  The
deterioration of the Spanish economy has been reflected in the
negative sector outlook Moody's published on the Spanish SMEs
securitization transactions.

IM GRUPO BANCO POPULAR FTPYME II FTA is a securitization of loans
to small- and medium-sized enterprises carried out by Grupo Banco
Popular under the FTPYME program.  At closing, the portfolio
consisted of 5,911 loans.  The loans were originated between 1993
and 2007, with a weighted average seasoning of 1.9 years and a
weighted average remaining term of 7.1 years.  The concentration
in the "building and real estate" sector according to Moody's
industry classification was approximately 37% as of closing.

As of November 2008, the number of loans in the portfolio was
equal to 4,530 and the weighted average remaining term was equal
to 6.9 years.  The concentration in the "building and real estate"
sector according to Moody's industry classification was
approximately 30% as of November 2008.

Moody's assigned definitive ratings in July 2007.  Moody's ratings
address the expected loss posed to investors by the legal final
maturity of the notes.  Moody's ratings address only the credit
risks associated with the transaction.  Other non-credit risks
have not been addressed, but may have a significant effect on
yield to investors.


SANTANDER EMPRESAS: Moody's Assigns 'C' Rating on Series F Notes
----------------------------------------------------------------
Moody's Investors Service has assigned these definitive ratings to
the Spanish enterprise loan-backed securities issued by Fondo de
Titulización de Activos, Santander Empresas 6:

  - Aaa to the EUR1,510.6 million Series A notes;
  - Aa2 to the EUR236.5 million Series B notes;
  - A2 to the EUR177.5 million Series C notes;
  - Baa2 to the EUR130.8 million Series D notes;
  - Ba2 to the EUR219.6 million Series E notes;and
  - C to the EUR221.9 million Series F notes.

Fondo de Titulización de Activos, Santander Empresas 6 is a
securitization of loans granted to Spanish enterprises carried out
by Banco Santander, S.A.

In Moody's view, strong features of this deal include, among
others: (i) a swap agreement guaranteeing an excess spread of
0.60% and covering the servicing fee if Banco Santander is
substituted as servicer of the pool; (ii) a 12-month artificial
write-off mechanism; (iii) with respect to the Aaa rated notes,
the fully sequential amortisation of the subordinated notes
(series B, C, D and E); and (iv) a geographically well-diversified
pool.

However, the transaction has several challenging features, namely:
(i) the high debtor concentration in the pool (top ten borrowers
represent 12.1% of the provisional pool); (ii) the high percentage
of Real Estate Developers included in the pool (22.2%) and low
percentage of loans secured by a first-lien mortgage guarantee
(19.75%); and (iii) the negative impact of the interest deferral
trigger on the subordinated series.  Moody's has incorporated
these risks into its quantitative analysis of the transaction.
As of January 2009, the provisional pool of underlying assets
comprised portfolio of 7,348 loans granted to 6,664 borrowers, all
of which are Spanish enterprises.  The loans were originated
between 1998 and July 2008, with a weighted-average seasoning of
0.92 years and a weighted-average remaining life of 5.75 years.
93.2% of the pool has a floating rate of interest, while the re st
has a fixed rate.  The weighted-average interest rate is 5.54%.

Only 19.75% of the outstanding of the portfolio is secured by a
first-lien mortgage guarantee over different types of properties,
with a weighted-average loan to value equal to 80.2%.
Geographically, the pool is concentrated in Madrid (20.6%),
Catalonia (20.5%) and Andalusia (12.5%), and is around 41%
concentrated in the "buildings and real estate" sector according
to Moody's industry classification.  At closing, none of the loans
will have amounts more than 30 days past due, and the percentage
of loans less than 30 days in arrears can not exceed 5% of the
definitive pool.

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

The value tested as mean default was in the range of 9.0% - 10.0%.
The mean value assumed for the recovery distribution was in the
range of 25% - 35%.

Moody's ratings address the expected loss posed to investors
(excluding, as concerns Series F, the payment of interest
corresponding to the "Parte Extraordinaria" as defined in the
legal documentation) by the legal final maturity (January 2042).
In Moody's opinion, the structure allows for timely payment of
interest and ultimate payment of principal at par with respect to
the Series A, B, C, D and E notes, and for ultimate payment of
interest (excluding, as concerns Series F, the payment of interest
corresponding to the "Parte Extraordinaria" as defined in the
legal documentation) and principal at par with respect to the
Series F notes, on or before the final legal maturity date.

Moody's ratings address only the credit risks associated with the
transaction.  Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.


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


SAS AB: Moody's Affirms Corporate Family Rating at 'B2'
-------------------------------------------------------
Moody's has affirmed SAS AB's B2 Corporate Family Rating,
Probability of Default and Senior Unsecured ratings, and the Caa1
subordinate rating (with a baseline credit assessment of 16 --
equivalent to a B3 rating); the outlook is negative.

The rating affirmation recognizes the significant initiatives
recently undertaken by the company to improve future
profitability.  These include the announcement of an extensive new
restructuring strategy, 'Core SAS', a rights issue that will
improve liquidity, and also the recent divestment of airBaltic as
well as the pending divestment of its loss-making Spanair
subsidiary in the first quarter of 2009.  Moody's believes that
these initiatives, while offering substantial potential benefits
over the medium term, have been announced amidst a period of
weakened credit metrics and liquidity.  As such, their successful
implementation would likely be beneficial for the company's credit
profile over the medium term, but will also be required in order
to avoid further negative pressure on the ratings.

The principal components of the 'Core SAS' strategy include making
the airline more focused on its Nordic home market, as well on
business routes, thus implying the closure of a number of leisure
routes and a further removal from service of about 14 aircraft.
The company expects to achieve further cost savings of SEK4
billion during the implementation period of 2009-2011, of which
SEK1.3 billion from existing collective agreements.  Moreover, the
company has announced an SEK6 billion rights issue, to be
completed in April 2009, to which existing shareholders will
subscribe pending respective parliamentary approval, with the
remainder being underwritten by three banks.  The company expects
these initiatives to achieve a significant improvement in pretax
earnings and a reduction in net debt during the implementation
period.  Finally, Moody's expects that the divestment of Spanair
will benefit earnings insofar as it accounted for the bulk of
losses in 2008, but notes that the company's income before
recurring items remained loss-making without Spanair as well.

Moody's views positively the extension of SAS's credit lines by at
least two years, subject to certain conditions, notably the
successful completion of the rights issue.  However, Moody's notes
also that liquidity in the fourth quarter weakened on account of
negative free cash flows, even excluding discontinued operations,
due also to higher capex and negative working capital, leaving
reported 'financial preparedness' (cash plus undrawn facilities,
as defined by the company) at SEK8.8 billion at end-year 2008,
versus SEK11.4 billion at the end of September 2008 and c.SEK15
billion at the end of 2007.  As a result, Moody's believes that
there remains limited flexibility for liquidity to weaken further,
but expects that it will improve with the rights issue and if Core
SAS is successfully implemented.

At the end of FY2008, Moody's estimates that gross leverage, as
adjusted by Moody's, to be in the range of 8x, which remains high
for the rating category.  Moody's understands, however, that the
majority of the rights issue proceeds will be used towards
reducing the drawn amounts under the credit facilities which
should improve gross leverage on a pro-forma basis.  The negative
outlook continues to reflect the weakening of credit metrics in
the past year amidst an ongoing difficult operating environment.
Moody's nevertheless believes that if the Core SAS strategy
achieves its goals of cost cutting and a significant improvement
in profitability, this would likely be positive for the company's
credit profile.  More specifically, if gross debt/EBITDA were to
fall towards 6x with no adverse trend in liquidity, this could be
positive for the rating or outlook.  Conversely, a failure to
arrest the negative earnings trend before non-recurring items in
2008 during the current fiscal year, or to successfully complete
the pending rights issue and maintain a satisfactory liquidity
profile, could result in renewed negative pressure on the ratings
or outlook.

SAS's ratings were assigned by evaluating factors Moody's believe
are relevant to the credit profile of the issuer, such as i) the
business risk and competitive position of the company versus
others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of SAS's core industry and SAS's ratings are believed to
be comparable to those of other issuers of similar credit risk.
The last rating action for SAS was implemented on 7 November 2008,
when the Corporate Family Rating was lowered to B2 from B1 with a
negative outlook.

Headquartered in Stockholm, Sweden, SAS is the fourth largest
passenger airline in Europe with about 29 million passengers flown
and total revenues of SEK53.2 billion in 2008 (excluding Spanair).


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


AC AEROTECHNIK: Creditors Must File Proofs of Claim by Feb. 20
--------------------------------------------------------------
Creditors owed money by JSC AC Aerotechnik are requested to file
their proofs of claim by Feb. 20, 2009, to:

         The Flugplatz Buochs
         Halle 3
         6374 Buochs
         Switzerland

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


APA-KLIMAGERATE LLC: Deadline to File Claims Set February 20
------------------------------------------------------------
Creditors owed money by LLC APA-Klimagerate are requested to file
their proofs of claim by Feb. 20, 2009, to:

         Peter K. Kraus
         JSC Revitrag Treuhand
         Metallstr. 9a
         6304 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 17, 2008.


M. A. LIMMAT: Creditors Have Until Feb. 21 to File Claims
---------------------------------------------------------
Creditors owed money by LLC M. A. Limmat are requested to file
their proofs of claim by Feb. 21, 2009, to:

         LLC M. A. Limmat
         Brunaustr. 5a
         8951 Fahrweid
         Switzerland

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


REMA METALLBAU: Proof of Claim Filing Deadline Set Feb. 21
----------------------------------------------------------
Creditors owed money by LLC Rema Metallbau are requested to file
their proofs of claim by Feb. 21, 2009, to:

         Altstadt-Treuhand Rene Harder
         Marktgasse 20
         Mail Box 2050
         9001 St. Gallen
         Switzerland

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


SCHNYDER'S WYCHALLER: Creditors' Proofs of Claim Due by Feb. 20
---------------------------------------------------------------
Creditors owed money by LLC Schnyder's Wychaller are requested to
file their proofs of claim by Feb. 20, 2009, to:

         Hannes Schnyder
         Gaicht 7
         2513 Twann
         Switzerland

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


TERMINAL TWO: February 24 Set as Deadline to File Claims
--------------------------------------------------------
Creditors owed money by LLC Terminal Two are requested to file
their proofs of claim by Feb. 24, 2009, to:

         Dr. Ruedi Lang
         Obere Zaune 14
         Mail Box 408
         8024 Zurich
         Switzerland

The company is currently undergoing liquidation in Schaffhausen.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 19, 2008.


UBS AG: Full Year 2008 Net Loss Widens to CHF19,697 Million
-----------------------------------------------------------
UBS AG's net loss for full-year 2008 widened to CHF19,697 million
from of CHF5,247 million in the prior year.

Net losses from continuing operations totaled CHF19,327 million,
compared with losses of CHF5,111 million in the prior year.

UBS attributed the losses to negative revenues in its fixed
income, currencies and commodities (FICC) area.

For the 2008 fourth quarter, UBS incurred a net loss of CHF8,100
million, down from a net profit of CHF296 million.

Net loss from continuing operations was CHF7,997 million compared
with a profit of CHF433 million.

The Investment Bank recorded a pre-tax loss of CHF7,483 million,
compared with a pre-tax loss of CHF2,748 million in the prior
quarter.  This result was primarily due to trading losses, losses
on exposures to monolines and impairment charges taken against
leveraged finance commitments.  An own credit charge of CHF1,616
million was recorded by the Investment Bank in fourth quarter
2008, mainly due to redemptions and repurchases of UBS debt during
this period.

                          More Job Cuts

UBS said it will further reduce its headcount to 15,000 by the end
of the year.

UBS's personnel numbers reduced to 77,783 on December 31, 2008,
down by 1,782 from September 30, 2008, with most staff reductions
at its investment banking unit.

                          About UBS AG

Based in Zurich, Switzerland, UBS AG (VTX:UBSN) --
http://www.ubs.com/-- is a global provider of financial services
for wealthy clients.  UBS's financial businesses are organized on
a worldwide basis into three Business Groups and the Corporate
Center.  Global Wealth Management & Business Banking consists of
three segments: Wealth Management International & Switzerland,
Wealth Management US and Business Banking Switzerland.  The
Business Groups Investment Bank and Global Asset Management
constitute one segment each.  The Industrial Holdings segment
holds all industrial operations controlled by the Group.  Global
Asset Management provides investment products and services to
institutional investors and wholesale intermediaries around the
globe.  The Investment Bank operates globally as a client-driven
investment banking and securities firm.  The Industrial Holdings
segment comprises the non-financial businesses of UBS, including
the private equity business, which primarily invests UBS and
third-party funds in unlisted companies.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 1,
2008, Moody's Investors Service downgraded its rating on UBS AG-
London Branch's GBP153,727,000 Credit Default Swap (with scheduled
termination date on October 2014) to "B2" from "A3".

According to Moody's, the rating action is the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under Chapter
11 of the U.S. Bankruptcy Code on Sept. 15, 2008, Washington
Mutual Inc., which was seized by federal regulators on Sept. 25,
2008 and subsequently virtually all of its assets were sold to
JPMorgan Chase, Fannie Mae and Freddie Mac, which were placed into
the conservatorship of the U.S. government on Sept. 8, 2008 and
one Icelandic bank, specifically Kaupthing Bank hf.

On Nov. 26, 2008, the TCR reported Moody's Investors Service
downgraded its rating on UBS AG-Jersey Branch's Series 6116 CHF
50,000,000 Fixed Rate Notes (due 2017 linked to the credit of a
portfolio of Reference Entities managed by JPMorgan Asset
Management UK Limited) to "Caa3" from "A2".

According to Moody's, the rating action is the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Fannie
Mae and Freddie Mac, which were placed into the conservatorship of
the U.S. government on Sept. 8, 2008 and two Icelandic banks,
specifically Kaupthing Bank hf and Glitnir Banki hf.


VITRIA SWITZERLAND: Creditors Must File Claims by February 20
-------------------------------------------------------------
Creditors owed money by LLC Vitria Switzerland are requested to
file their proofs of claim by Feb. 20, 2009, to:

         Peter K. Kraus
         JSC Revitrag Treuhand
         Metallstr. 9a
         6304 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 17, 2008.


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


BILYKI COOPERATIVE: Creditors Must File Claims by Feb. 25
---------------------------------------------------------
Creditors of Cooperative Society Bilyki (EDRPOU 01763272) have
until Feb. 25 2009, to submit proofs of claim to:

         Arbitral Manager I. Gritsenko
         Insolvency Manager
         Post Office Box 1841
         36007 Poltava
         Ukraine

The Economic Court of Poltava region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No 23/81.
The Court is located at:

         The Economic Court of Poltava region
         Zigin St. 1
         36000 Poltava
         Ukraine

The Debtor can be reached at:

         Cooperative Society Bilyki
         Mate Zalki square 6
         Bilyki
         Kobeliatsky district
         39220 Poltava region
         Ukraine


DIONIS FARM: Creditors Must File Claims by Feb. 25
---------------------------------------------------
Creditors of Farm Dionis (EDRPOU 23351989) have until Feb. 25,
2009, to submit proofs of claim to:

         Arbitral Manager O. Polischuk
         Insolvency Manager
         Vorovsky St. 5/1
         83045 Donetsk
         Ukraine

The Economic Court of Donetsk region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No 42/125B.

The Court is located at:

         The Economic Court of Donetsk region
         Artem St. 157
         83048 Donetsk
         Ukraine

The Debtor can be reached at:

         Farm Dionis
         Pushkin St. 36
         Bolshaya Novoselka
         Velikonovoselkovsky district
         Donetsk region
         Ukraine


DMITROVKA AGRICULTURAL: Court Starts Bankruptcy Procedure
---------------------------------------------------------
The Economic Court of Zaporozhye region commenced bankruptcy
supervision procedure on OJSC Agricultural Enterprise Dmitrovka
(EDRPOU 20592639).  The case is docketed under Case No. 16/339/08.

The Temporary Insolvency Manager is:

         Arbitral Manager A. Petrenko
         Komsomolskaya St. 30
         69063 Zaporozhye
         Ukraine
         Tel: 8(061)764-32-25

The Court is located at:

         The Economic Court of Zaporozhye region
         Shaumian St. 4
         69001 Zaporozhye
         Ukraine

The Debtor can be reached at:

         OJSC Agricultural Enterprise Dmitrovka
         Office 308
         Pobeda St. 63
         69035 Zaporozhye
         Ukraine


INSTRACOM LLC: Creditors Must File Claims by Feb. 25
----------------------------------------------------
Creditors of LLC Instracom (EDRPOU 31841591) have until Feb. 25,
2009, to submit proofs of claim to:

         Arbitral Manager S. Diachenko
         Insolvency Manager
         Bauman Street 4
         Irpen
         Kiev region
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 15/84-b.
The Court is located at:

         The Economic Court of Kiev
         B. Hmelnitskiy street 44-b
         01030, Kiev
         Ukraine

The Debtor can be reached at:

         LLC INSTRACOM
         Chapayev St. 4-g
         01030 Kiev
         Ukraine


KAMIANKA DNIEPROVSKAYAG: Creditors Must File Claims by Feb. 25
--------------------------------------------------------------
Creditors of OJSC Kamianka Dnieprovskaya Breadreceiving Enterprise
(EDRPOU 25478151) have until Feb. 25, 2009, to submit proofs of
claim to:

         O. Zabrodin
         Insolvency Manager
         Post Office Box 6335
         Zaporozhye
         Ukraine

The Economic Court of Zaporozhye region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No 19/198/06.

The Court is located at:

         The Economic Court of Zaporozhye region
         Shaumian St. 4
         69001 Zaporozhye
         Ukraine

The Debtor can be reached at:

         OJSC Kamianka-Dnieprovskaya
         Breadreceiving Enterprise
         Usachev St. 3
         Kamianka-Dnieprovskaya
         71300 Zaporozhye region
         Ukraine


KYIV AVIANT: Cabinet to Provide UAH1 Billion for Debt Refinancing
-----------------------------------------------------------------
The Cabinet of Ministers in Ukraine has decided to grant
UAH1 billion to the Avian Kyiv Aviation Plant to refinance the
state-run enterprise's debts and increase its statutory fund,
Ukrainian News reports citing the country's Industrial Policy
Minister Volodymyr Novytskyi.

Ukrainian News relates according to Minister Novytskyi, these
funds would allow dampening of the social tension at the
enterprise, repay the debts to the employees and settle
the problems with customs clearance of the imported equipment.

The first tranche of UAH40 million will be channeled as soon as
all required procedures are done, Ukrainian News states citing the
minister.

In a Feb. 4 report, finchannel.com recounts Ukrainian Prime
Minister Yulia Tymoshenko accused Party of Regions leader Victor
Yanukovych of driving Kyiv Aviant and the Kharkiv Aircraft Plant
into bankruptcy.

The prime minister claimed each of the aircraft-building
enterprises has arrears up to UAH2 billion, and the arrears cannot
be paid off, finchannel.com recalls.

"The money were channeled as an advanced payment for planes, but
they were spent by previous directors of the plants appointed by
the Party of Regions, and the plants were completely destroyed.
We replaced the leadership, and the new directors began setting
the plans  on their feet," the report quoted the prime minister as
saying.


LAN PRODUCER: Court Starts Bankruptcy Supervision Procedure
-----------------------------------------------------------
The Economic Court of Odessa region commenced bankruptcy
supervision procedure on Producer Cooperative Lan (EDRPOU
00454043).  The case is docketed under Case No. 21/135-08-4782.

The Temporary Insolvency Manager is:

        Arbitral Manager V. Egorova
        Post Office Box 42
        65011 Odessa
        Ukraine
        Tel: 8(096)3555699

The Court is located at:

         The Economic Court of Odessa region
         Office 4
         Shevchenko Avenue 29
         65009 Odessa
         Ukraine

The Debtor can be reached at:

         Producer Cooperative Lan
         Kontseba
         Savransky district
         66211 Odessa region
         Ukraine


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


ALBA PLC: Fitch Downgrades Ratings on 12 Tranches
-------------------------------------------------
Fitch Ratings has downgraded 12 tranches of the ALBA PLC Series of
UK nonconforming RMBS transactions.  The agency has simultaneously
removed the Rating Watch Negative on ALBA 2007-1 PLC's tranches.

The rating actions Fitch has taken on Alba 2006-1 and 2006-2 were
a direct result of the overall performance deterioration seen
within the mortgage pools observed across all transactions within
the UK nonconforming markets.  The ongoing recession has caused
financial difficulties for borrowers and has led to increased
arrears levels.  Although the arrears experienced with the ALBA
PLC Series transactions are some of the lowest in the UK
nonconforming sector, there has been a significant increase over
the last two quarters.  Rising arrears levels have led to an
increased level of repossessions, which in turn have seen higher
loss severities when sold due to declining houses prices. For ALBA
2006-I PLC, 2006-2 PLC and 2007-I PLC, the loss severity was
25.88%, 30.80% and 34.08% respectively at their Q408 interest
payment dates.  Fitch expects weighted average loss severity
values to continue to increase over the next year as the full
extent of house price declines feeds through to sales of
repossessed properties.

As of the latest IPD, none of the reserve funds within the ALBA
PLC Series transactions are at their targets.  This means that
credit enhancement levels have fallen, reducing the protection
available to the notes.  The agency expects further reserve fund
draws over the next year due to the high level of losses being
realised.

ALBA 2007-I PLC's tranches were placed on RWN on October 10, 2008
due to the issuer's announcement that its liquidity facility
agreement had expired.  Since expiration, it has gone through two
IPDs without a replacement.  Fitch expects the liquidity facility
to play an important role given the current status of the reserve
fund.  If the reserve fund is depleted, the transaction will need
a new liquidity facility to cover potential interest payment
shortfalls on the notes.  In its review of the transaction, Fitch
has taken into account the absence of a liquidity facility.  If a
replacement liquidity facility provider is found the transaction
will be reassessed.  However, given the time that has elapsed
since expiry, Fitch has reviewed the transaction assuming no
replacement.  The absence of a liquidity facility was the main
driver behind the downgrade of the class A2, A3 and B notes of
Alba 2007-1.

ALBA PLC Series' ratings are:

Alba 2006-1 plc:

  -- Class A3a (ISIN XS0254830499): affirmed at 'AAA'; Outlook
     Stable

  -- Class A3b (ISIN XS0254831893): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN XS0254833089): affirmed at 'AA'; Outlook Stable

  -- Class C (ISIN XS0254833758): affirmed at 'A'; Outlook revised
     to Negative from Stable

  -- Class D (ISIN XS0254834053): downgraded to 'BB' from 'BBB';
     Outlook revised to Negative from Stable

  -- Class E (ISIN XS0254834301): downgraded to 'CCC' from 'BB';
     Distressed Recovery Rating of 'DR4' assigned

  -- MERCS (ISIN XS0255419284): affirmed at 'AAA'; Outlook Stable

Alba 2006-2

  -- Class A2 (ISIN XS0271529538): affirmed at 'AAA'; Outlook
     Stable

  -- Class A3a (ISIN XS0271529967): affirmed at 'AAA'; Outlook
     Stable

  -- Class A3b (ISIN XS0272876623): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN XS0271530114): affirmed at 'AAA'; Outlook
     Stable

  -- Class C (ISIN XS0271530544): affirmed at 'AA'; Outlook
     revised to Negative from Stable

  -- Class D (ISIN XS0271530973): downgraded to 'BBB+' from 'A';
     Outlook revised to Negative from Stable

  -- Class E (ISIN XS0271531435): downgraded to 'B' from 'BBB';
     Outlook revised to Negative from Stable

  -- Class F (ISIN XS0272877514): downgraded to 'CC' from 'BB';
     Distressed Recovery Rating of 'DR5' assigned

  -- MERCS (ISIN XS0272869172): affirmed at 'AAA'; Outlook Stable

Alba 2007-1 Plc

  -- Class A1a (ISIN XS0301704077): affirmed at 'AAA'; removed
     from Rating Watch Negative, assigned Stable Outlook

  -- Class A1b (ISIN XS0301704234): affirmed at 'AAA'; removed
     from Rating Watch Negative, assigned Stable Outlook

  -- Class A2 (ISIN XS0301704747): downgraded to 'AA+' from 'AAA';
     removed from Rating Watch Negative, assigned Stable Outlook

  -- Class A3 (ISIN XS0301721832): downgraded to 'AA+' from 'AAA';
     removed from Rating Watch Negative, assigned Stable Outlook

  -- Class B (ISIN XS0301706288): downgraded to 'AA+' from 'AAA';
     removed from Rating Watch Negative, assigned Negative Outlook

  -- Class C (ISIN XS0301707096): downgraded to 'A+' from 'AA-'
     (AA minus); removed from Rating Watch Negative, assigned
     Negative Outlook

  -- Class D (ISIN XS0301708060): downgraded to 'BBB' from 'A-' (A
     minus); removed from Rating Watch Negative, assigned Negative
     Outlook

  -- Class E (ISIN XS0301708573): downgraded to 'B' from 'BBB';
     removed from Rating Watch Negative, assigned Negative Outlook

  -- Class F (ISIN XS0301708813): downgraded to 'CC' from 'BB';
     removed from Rating Watch Negative, assigned a Distressed
     Recovery Rating of 'DR6'

  -- MERC (ISIN XS0301962444): affirmed at 'AAA' Outlook Stable

Rating Outlooks for European structured finance tranches provide
forward-looking information to the market.  An Outlook indicates
the likely direction of any rating change over a one- to two-year
period.


A T S EVENTS: Appoints Joint Administrators from Grant Thornton
---------------------------------------------------------------
Daniel Robert Whiteley Smith and John Neville Whitfield of Grant
Thornton UK LLP were appointed joint administrators of A T S
Events Ltd. on Jan. 27, 2009.

The company can be reached at:

         A T S Events Ltd.
         Fourth Floor
         Meridien House
         69-71 Clarendon Road
         Watford
         WD17 1DS
         England


AWT RESTAURANTS: Goes Into Administration; Four Restaurants Closed
------------------------------------------------------------------
BBC News reports AWT Restaurants Ltd, the holding company of
celebrity chef Anthony Worrall Thompson, has gone into
administration, resulting in the closure of four restaurants and
the loss of 60 jobs.

The report relates Mr. Worall Thompson said the decision to go
into administration was taken after his bank declined to provide
GBP200,000 of additional funding for the company, which ran into
cash flow difficulties following falling sales.

"We did a cash-flow forecast for the end of the year and it was
fine" the report quoted Mr. Worall Thompson as saying.  "But we
needed looking after for the first four months of the year and the
banks just didn't want to play, not without me giving horrendous
personal guarantees that I wasn't prepared to do.  I am getting to
an age where I can't afford to lose my house."

Mr. Worrall Thompson, as cited by the report, said he "experienced
an unexpected but decisive fall in revenue across the businesses
from September 2008".

According to the report, the celebrity chef turned to personal
savings to help keep control of two other restaurants, Windsor
Grill in Berkshire, and the Kew Grill in south-west London, and a
delicatessen, Windsor Larder.


BCPMS LTD: Taps Joint Administrators from KPMG
----------------------------------------------
David Standish and Jane Moriarty of KPMG LLP were appointed joint
administrators of BCPMS (Europe) Ltd. on Jan. 27, 2009.

The company can be reached at:

         BCPMS (Europe) Ltd.
         50 Bullescroft Road
         Edgware
         Middlesex
         HA8 8RW
         England


CAMELOT: Put Into Receivership; 29 Jobs Affected
------------------------------------------------
BBC News reports Camelot, Prime Resorts' theme park and hotel in
Charnock Richard, near Chorley, has been put into receivership,
resulting in the loss of 29 jobs.

According to the report, visitor numbers had been in decline at
the park, which only operated for 20 weeks out of the year.

However, the report notes receivers Grant Thornton are optimistic
about finding a buyer for the hotel, although the park looks
unlikely to reopen in April following its winter break.

The report recounts managers have been pursuing plans to close the
park, which employed 21 permanent staff during the winter months,
and build new village on the site.

Citing Les Ross, a partner in Grant Thornton, the report discloseS
Camelot Theme Park has struggled for a number of years to compete
with larger attractions such as Blackpool Pleasure Beach and Alton
Towers, while the hotel, which employed 80 people, has suffered a
significant reduction in corporate bookings due to the economic
downturn.

The report relates the receivers said discussions are ongoing as
to the future of site, including the new village proposals.


CENTURY WEB: Taps Joint Administrators from Smith & Williamson
--------------------------------------------------------------
Gregory Andrew Palfrey and David John Blenkarn of Smith &
Williamson Limited were appointed joint administrators of Century
Web Offset Ltd. on Jan. 26, 2009.

The company can be reached at:

         Century Web Offset Ltd.
         Century House
         Kernick Industrial Estate
         Penryn
         Cornwall
         TR10 9EP
         England


DAVID PAYNE: In Administration; KPMG Appointed
----------------------------------------------
Administrators from KPMG Restructuring were appointed to
Bromsgrove-based David Payne Homes Limited by the company's
directors on February 6, 2009.

The business which has designed and built homes for nearly 50
years has appointed administrators having failed to secure
sufficient funding to meet its ongoing requirements.

Mark Orton, joint administrator from KPMG Restructuring in
Birmingham, said: "For the time being the business will continue
to trade while we look to evaluate the options available.  There
is no doubt that this sector is experiencing the full force of the
current economic conditions.  However, given its reputation for
quality and design excellence, we are working to preserve as much
of the business as we can.

"Our immediate priorities will be talking with the employees as
well as contacting suppliers and people who are in the process of
buying a new home from the company."

David Payne Homes Limited has eight sites, six of which have
construction underway – Barnards Meadow in Malvern; Humblebee
Hollow in Winchombe; The Pedmore in Stourbridge; Taylors Place in
Dudley; Cherryoak rise in Rubery and Imperial Gardens in
Kidderminster.

The business employed 37 people, 20 of which were made redundant
by the company shortly before KPMG's appointment.  The
administrators will be working with the remaining staff to
continue to trade the business.

                    About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms.  As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


EDRIC AUDIO: Appoints Joint Administrators from BDO Stoy Hayward
----------------------------------------------------------------
Martha H. Thompson and Christopher K. Rayment of BDO Stoy Hayward
LLP were appointed joint administrators of Edric Audio Visual Ltd.
on Jan. 23, 2009.

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

         Kings Wharf
         20-30 Kings Road
         Reading
         Berkshire
         RG1 3EX
         England


HOMEBUYER EVENTS: Taps Joint Administrators from Grant Thornton
---------------------------------------------------------------
Daniel Robert Whiteley Smith and John Neville Whitfield of Grant
Thornton UK LLP were appointed joint administrators of Homebuyer
Events Ltd. on Jan. 27, 2009.

The company can be reached at:

         Homebuyer Events Ltd.
         Meridien House
         69-71 Clarendon Road
         Watford
         Hertfordshire
         WD17 1DS
         England


MANSARD MORTGAGES: Fitch Reports Amendments in Transactions
-----------------------------------------------------------
Fitch Ratings has been informed by the servicer of the Mansard
Mortgages transactions, Rooftop Mortgages Limited, that amendments
to the transaction documentation have been made.  In the current
environment with rising unemployment, the servicer is attempting
to prevent borrowers falling into arrears and contain the volume
of repossessed loans by amending the documentation to facilitate
greater flexibility in considering borrower requests to switch
their mortgage product.

The changes made to the transaction documentation permit the
servicer to convert existing loan agreements, upon the request of
the borrower, to one of the three product types already present in
the three pools of securitized mortgages.  The product types that
the borrowers can convert to are: interest-only, repayment and
part-and-part loans.  The servicer is also permitted to extend the
maturity of these loans to up to two years prior to the maturity
of the respective Mansard transaction.  To maintain the quality of
the portfolios, the issuer has set limits to the amount of
converted loans that can be present in these pools, and each loan
conversion request must meet the set terms and conditions.
Although potentially negative, this alone is unlikely to affect
the ratings.

Fitch took rating actions on the three transactions on January 29,
2009, when eight tranches were downgraded, solely due to
performance concerns.  The ratings on the three transactions are:

Mansard Mortgages 2006-1 Plc

  -- Class A2a (ISIN XS0272297358) 'AAA'; Outlook Stable
  -- Class M1a (ISIN XS0272298752) 'AA'; Outlook Negative
  -- Class M2a (ISIN XS0272299131) 'BBB'; Outlook Negative
  -- Class B1a (ISIN XS0272304311) 'BB'; Outlook Negative
  -- Class B2a (ISIN XS0272305045) 'CC'; Recovery Rating 'DR4'

Mansard Mortgages 2007-1 Plc

  -- Class A1a (ISIN XS0293436910) 'AAA'; Outlook Stable

  -- Class A2a (ISIN XS0293438965) 'AAA'; Outlook Stable

  -- Class M1a (ISIN XS0293458054) 'AA'; Outlook Negative

  -- Class M2a (ISIN XS0293460381) 'A-' (A minus); Outlook
     Negative

  -- Class B1a (ISIN XS0293442215) 'BB'; Outlook Negative

  -- Class B2a (ISIN XS0293446711) 'CC'; Recovery Rating 'DR4'

Mansard Mortgages 2007-2 Plc

  -- Class A1a (ISIN XS0333305299) 'AAA'; Outlook Stable
  -- Class A2a (ISIN XS0333306933) 'AAA'; Outlook Stable
  -- Class M1a (ISIN XS0333308475) 'AA'; Outlook Negative
  -- Class M2a (ISIN XS0333311693) 'A'; Outlook Negative
  -- Class B1a (ISIN XS0333313988) 'BB'; Outlook Negative
  -- Class B2a (ISIN XS0333340361) 'CC'; Recovery Rating 'DR3'


PUBLIC GALLERY: Goes Into Administration; 32 Jobs Affected
-----------------------------------------------------------
Will Henley at Building Design reports that The Public Gallery
Ltd, the company responsible for managing interactive gallery The
Public, has gone into administration, resulting in the loss of 32
jobs.

Citing a statement on the company's Web site, Building Design
discloses Bob Bailey and Guy Mander of Baker Tilly Restructuring
and Recovery LLP were appointed joint administrators of the
company on Feb. 4.

Building Design relates the company told Design Week it was no
longer "financially sustainable" and could not deliver the
artistic and cultural aspects of the building.

The company, as cited by Building Design, said "Following the
recent assessments and given the current economic climate it has
not been possible for the Arts Council to create a rescue package
that would enable The Public Gallery to cover its loss of trading
income."

BBC News recalls the Arts Council said last month it would pull
its GBP520,000 annual funding for the company after Sandwell
Council had asked for it to double its contribution.

The Arts Council however said it would be giving a one-off GBP3
million grant to try to open the whole arts complex to the public,
BBC notes.

According to Building Design, the Arts Council had already spent
GBP30 million on the project.

Building Design recounts the GBP63 million council-owned building
The Public opened last June.  However, the gallery space has
itself has never opened due to technical reasons, Building Design
adds.


TITAN EUROPE: S&P Downgrades Rating on Class F Notes to 'D'
-----------------------------------------------------------
Standard & Poor's Rating Services lowered to 'D' its rating on the
class F notes issued by Titan Europe 2006-5 PLC.  At the same
time, the rating on the class E notes was lowered to 'BB-' and
remains on CreditWatch negative.  The ratings on the other classes
in this transaction remain unaffected.

Titan Europe 2006-5 is backed by seven loans, all of which are
secured by properties in Germany.

In August 2008, three entities related to the loan sponsor (Level
One) entered into insolvency-type proceedings, causing a default
under the terms of the loan.  In September, the loan was
transferred into special servicing.

On Oct. 28, 2008, S&P lowered its 'B' rating on the class F notes
to 'CCC-/Watch Neg' following a small note-interest shortfall, and
because S&P considered that a small principal loss is the most
likely outcome for the DIVA loan.

The DIVA loan is the largest loan in the pool and is secured by
multifamily housing properties, predominantly situated in Berlin.
According to the servicer's reports, the rental income from the
properties has in fact improved by about 5% since closing, and
interest coverage was last reported at 1.34x for the securitized
portion of the loan.

Nonetheless, S&P has been informed that there has been a debt
service shortfall outstanding under the DIVA loan since the
October 2008 interest payment date.  On that IPD, costs not
covered by the liquidity facility (including special servicing
fees of approximately EUR20,000) caused a shortfall for the class
F notes.

Another costs shortfall of EUR227,000 occurred on the January 2009
IPD.  The total shortfall is now 2.1% of the note balance,
comprising the previous deferred interest, interest on the
deferred interest, special servicing fees, and interest on the
previous liquidity drawing.

S&P's are aware of a number of possible workout scenarios,
including the exercise of a purchase option by the junior lender,
which could mean that the class F notes are fully repaid by their
legal final maturity.  In this regard, the coverage on the senior
loan and the ability to divert payments from the junior loan to
the senior loan are particularly positive features.

S&P's note also that some rental payments due under the leases are
reported to have been held back due to the insolvency events and
may be recovered in due course.

Nevertheless, given the recent substantial shortfall of note
interest on the class F notes, S&P has lowered its rating to 'D'.
Also, as the risk has increased for an ultimate principal
shortfall on the class E notes, S&P has lowered its rating on that
class to 'BB-'.  Resolution of this CreditWatch placement will
depend on the amounts received by the servicer in future, which
in turn relies on the development of the insolvency-related
proceedings.

S&P's ratings address timely payment of interest and consequently
the rating agency lowered the rating on the class F notes to 'D'
even though under the terms and conditions of the notes the missed
interest payment can be deferred.

Related Research

  -- Principles-Based Rating Methodology For Global Structured
     Finance Securities

  -- Revised Framework For Applying Counterparty And Supporting
     Party Criteria

  -- European CMBS Loan Level Guidelines

  -- European CMBS Loan Level Guidelines: Updated Loan Level
     Questionnaire

  -- European Legal Criteria for Structured Finance Transactions


WOOLWORTHS GROUP: Owes More Than GBP1 Bln to Unsecured Lenders
--------------------------------------------------------------
Catherine Salmond at Edinburgh Evening News reports that
Woolsworths Group plc owed more than GBP1 billion to unsecured
lenders, including staff and suppliers.

According to the report, secured lenders led by GMAC and Burdale,
will get the full GBP335 million owed to them, while unsecured
lenders will receive nothing.

The report discloses more than 30,000 employees will not receive
any redundancy money from the retailer and their pension fund is
also likely to be hit hard.

The report however notes Woolworth's clearance sales may have
helped generate GBP63 million for the company's pension fund,
although there will still be a GBP200 million hole which will have
to be met by the Pension Protection Fund.

Meanwhile, Deloitte said it was planning to conduct a probe into
the actions of Woolworths' directors after creditors claimed they
should have stopped trading earlier, the report relates.

"Creditors could see it was making a loss and some asked why
wasn't it stopped earlier," the report quoted joint administrator
Neville Kahn as saying.  "We're going to investigate that.  More
than one creditor asked us to make sure we looked at that
position."

The outcome of Deloitte's investigations is expected to be
revealed in a month's time, the report states.

                      Administration Order

On January 27, 2009, the High Court granted an application that an
order of administration be made in respect of Woolworths Group
plc.

As announced on November 27, 2008, the termination of the
group's discussions for the sale of its retail business led to
the administration of its two major subsidiaries, Woolworths plc
and Entertainment UK Ltd.  Accordingly, Neville Kahn, Daniel
Butters and Nicholas Dargan were appointed as joint administrators
to both companies on that date.

The joint administrators were also appointed as administrators to
the group.

                         About Deloitte

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

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

                    About Woolworths Group plc

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


* UK: Fitch Reports Poor Holiday Sales for Non-Food Retailers
-------------------------------------------------------------
Fitch Ratings says that poor holiday trading results reported by
many UK non-food retailers reflect not only the consumer downturn
but also longer-term competitive issues and underlying changes in
the way people shop.  Indeed, for a number of retailers, including
Next plc and Kingfisher Plc, weak sales trends preceded the
current downturn, dating back as early as 2005.

The British Retail Consortium reported that UK retailers' LFL
sales were down 3.3% in the month of December 2008 and that sales
of discretionary items such as apparel and home-related goods
suffered the most.  Many non-food retailers reported LFL sales
over the holiday period in the negative high single-digit range.
The reasons behind these weak sales trends vary according to
sector.  In the apparel segment, discounter sellers such as
Primark are taking share from traditional department stores and
other high-street shops.  DIY retailers are being impacted by a
structural shift away from do-it-yourself towards do-it-for-me as
well as sharp declines in UK home values.  Among electricals
retailers, DSG international plc and Kesa Electricals are
contending with a secular shift in the electricals market from
brick and mortar stores to the internet and a slowdown in the
digital product cycle.

Retailers are responding in various ways, including adding lower-
priced items to their merchandise offerings, introducing new
services, and improving store appearances and layouts.  However,
with operating cash flow constrained by the recession and,
potentially, a weaker pound, it is difficult for retailers to
quickly transform and adapt their businesses.  Investments to re-
model stores will not yield much return until consumer spending
recovers, though these investments position retailers for an
eventual turnaround, perhaps in 2010.  Finally, the real estate
downturn, combined with long lease terms in retail parks, makes it
difficult for big box retailers to close less profitable
locations.

In general, these retailers are retrenching by cutting costs,
disposing of non-core assets and preserving cash.  Kingfisher
recently completed the sale of its Italian business, strengthening
its balance sheet and providing a boost to its liquidity.  DSG
continues to explore strategic alternatives for its weaker
European businesses, as it focuses on turning around its
struggling UK operation.  Fitch's January 2009 downgrade of DSG to
'B' with a Negative Outlook reflects the expectation for
substantially weaker credit metrics and the potential for covenant
compliance issues in 2009.

The credit outlook for the UK non-food retail sector remains
negative, as reflected by Negative Outlooks on Marks and Spencer
Group plc (M&S; 'BBB'), Kingfisher ('BBB-' (BBB minus)) and DSG
('B').  Next ('BBB') has a Stable Outlook, albeit with limited
headroom.  The preponderance of Negative Outlooks reflects the
uncertainties brought on by the current downturn, the longer-term
competitive concerns outlined above, and previous actions such as
share repurchases (at Next, M&S and DSG) that have reduced the
headroom in these companies' existing ratings.

Looking ahead, weak sales trends in 2008 will make for easier
comparisons in 2009, suggesting LFL sales will, at a minimum, be
less negative in the coming holiday season.  However, even should
sales trends begin to stabilize over the next year, the volatility
in the pound present new challenges for the sector, raising the
cost of imported goods.  This will be felt over the course of 2009
as currency hedges expire, and will lead to a combination of
higher prices and gross margin contraction should the pound
continue its downward trend.  As such, earnings will continue to
suffer even should top-line sales begin to recover.


* KPMG Says Outlook for EU Manufacturing Sector in 2009 Negative
----------------------------------------------------------------
Outlook for EU manufacturing sector turns sharply negative at
start of 2009.

The winter 2009 KPMG Business Outlook Survey, which surveys over
3,700 manufacturing firms across the EU, shows confidence in the
sector has collapsed in the face of the global economic downturn.
EU manufacturers' confidence regarding the outlook for business
activity over the next twelve months has retreated swiftly from
six months' earlier, with the net balance falling into negative
territory for the first time since the survey began in January
2006.  The latest net balance figure of -10.2 contrasts markedly
with the high of +56.3 recorded two years ago, while the remaining
ten survey variables all posted record lows and negative readings.
Anecdotal evidence from the latest survey highlighted
deteriorating economic conditions as the main threat to business
revenues, along with a resulting downturn in orders.

Of the eleven EU countries included in the survey, the Czech
Republic and Greece posted the worst expectations for business
activity, revenues and new orders.  The UK, Italy and Poland all
registered marginally positive net balances for business activity
but negative readings for business revenues, suggesting aggressive
discounting to retain volumes of sales.

One of the stand-out themes of the latest findings compared to the
previous outlook survey is the stark reversal of inflation
expectations, as concerns over stagflation have evaporated.  The
input price net balance nose-dived from +65.1 to -27.6, reflective
of the recent slump in commodity prices.  All nine industry
sectors covered registered negative input price net balances, led
by Mechanical Engineering and Basic Metals.

The output prices net balance experienced a similarly steep
decline, plunging from +42.6 to -21.0.  All nine industry sectors
registered negative net balances, led by Basic Metals and Food &
Drink.

The negative outlook for manufacturing employment registered in
the previous survey worsened in January, as the net balance sank
further to -35.4.  Planned cuts to workforces primarily reflect
expectations of falling activity and revenues which, despite lower
input prices, are expected to impact negatively on profits and
business investment.

The profits net balance fell further below zero in January,
recording a new low of -26.8.  In contrast to the previous survey
findings, which singled out rising input prices as the main threat
to profits, the latest results showed that concerns over weak
domestic and global demand were underpinning the latest negative
profit expectations.  Low-cost international competition is also
seen as a key threat to profitability, as it was during the
previous outlook period.

Capital spending by EU manufacturers is forecast to decline over
the next twelve months.  The net balance fell sharply to -28.5,
from +6.8 six months previously.  Investment in research &
development will also suffer, with the net balance falling to
-13.8, from +6.4 last July.  Manufacturers will also attempt to
cut costs by streamlining warehouses more aggressively than six
months ago.  The inventory:output ratio is forecast to fall, as
shown by a net balance of -27.2, down from -11.1 last July.

Commenting on the latest survey findings, Andrew Smith, Chief
Economist at KPMG, said: "The downturn in sentiment reinforces the
emerging picture of a prolonged and painful recession in the EU
manufacturing sector.  Profits are set to decline as demand
weakens and businesses cut prices to boost sales volumes, even if
cost pressures are now subsiding.  Consequently, the outlook for
both investment and unemployment has deteriorated significantly.

"In conjunction with the deteriorating picture for the EU service
sector, these results dispel any lingering hopes that the region
could escape the worst effects of the credit crunch."

                   About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms.  As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.

                            *********

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,
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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.

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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *