TCREUR_Public/090212.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, February 12, 2009, Vol. 10, No. 30

                            Headlines

A U S T R I A

KOLLROSER LLC: Claims Registration Period Ends March 5
KRNIC KEG: Claims Registration Period Ends March 11
MONEYFRUITS JSC: Claims Registration Period Ends March 5


G E R M A N Y

ASSCO ZOLLAGENTUR: Claims Registration Period Ends April 3
BAC LEBENS: Claims Registration Period Ends March 25
CONTINENTAL AG: UAE Sovereign Fund Eyes 20% Stake in the Company
DRUCKGUT GMBH: Claims Registration Period Ends April 1
EDSCHA: Sale Likely, Insolvency Administrator Says

FOERDER ARBEIT: Claims Registration Period Ends April 7
HYPO REAL ESTATE HOLDING: Gov't to Hold Talks With Flowers Today
KONZERMA KONSTRUKTION: Claims Registration Period Ends April 1
SCHAEFFLER KG: Gloomy Financing May Spur Debt-Equity Swap


I C E L A N D

LANDSBANKI ISLANDS: NY Court Grants Chapter 15 Protection


K Y R G Y Z S T A N

DRAG RACE: Creditors Must File Claims by March 6
INVEST-VT LLC: Creditors Must File Claims by March 6


R U S S I A

ADYGEYA AIRLINES: Creditors Must File Claims by April 2
CONSTRUCTION MATERIALS: Creditors Must File Claims by March 2
EVRO-STROY LLC: Court Names P. Fomenko as Insolvency Manager
INCARGO LLC: Creditors Must File Claims by March 2
LES-PROM-RESURSY LLC: Creditors Must File Claims by April 2

NOVOSIBIRSKAYA MACARONI: Court Names Insolvency Manager
NOVOSIBIRSKIY COLD-STORAGE: Bankruptcy Hearing Set June 10
OMSKIY GROATS: Creditors Must File Claims by April 2
VERKHNETAGILSKIY CONSTRUCTION: Claims Filing Deadline Set March 2
VIMPELCOM OJSC: To Issue RUR30 Billion Bonds to Refinance Debts

VOLGO-STROY LLC: Samarskaya Bankruptcy Hearing Set May 29
YENISEYSKAYA ENERGY: Creditors Must File Claims by March 2


S P A I N

MARTINSA FADESA: Posts EUR2.25 Bln 9-Mo Loss on Asset Write-Down


S W E D E N

VOLVO AB: Won't Seek French Aid, Mulls Further Job Cuts


S W I T Z E R L A N D

HANS BINDER: Creditors Must File Proofs of Claim by February 19
INTER PROTEINE: Deadline to File Proofs of Claim Set February 19
KSB KISLING: Creditors Have Until February 16 to File Claims
LEHMAN BROTHERS FINANCE: Voluntary Chapter 15 Case Summary
LM MECHANIK: Proof of Claim Filing Deadline Set February 19

OPTITE JSC: Creditors' Proofs of Claim Due by February 18
PROTEIN TRADING: February 19 Set as Deadline to File Claims


U K R A I N E

BANK KIEV: Placed in Receivership by Ukraine's Central Bank


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Revenue Up 6.2% for 9-Mos Ended December 31
BRITISH AIRWAYS: Traffic Figures Down 1.3% in January 2009
JJB SPORTS: To Put Two Subsidiaries in Administration
KLEENAIR SYSTEMS: Insolvency Practitioner to Be Appointed
REAL HOTEL: Focus to Take Over 10 Hotels; 500 Jobs Saved

ROYAL BANK: Mulls Laying Off 2,300 Workers in U.K.
SWEET OF MEDICINE: Two Pubs In Administration
XSTRATA PLC: Canadian Nickel Unit to Cut 686 Jobs at Sudbury


                         *********


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A U S T R I A
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KOLLROSER LLC: Claims Registration Period Ends March 5
------------------------------------------------------
Creditors owed money by LLC Kollroser (FN 262462z) have until
March 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Wolfgang Dlaska
         Joanneumring 11/4
         8010 Graz
         Austria
         Tel: 0316/825580-0
         Fax: 0316/825580-10
         E-mail: office@dlaska.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 2:50 a.m. on March 19, 2009, for the
examination of claims at:

         Graz Land Court by Civil Cases (638)
         Room 227
         Graz
         Austria

Headquartered in Pirka, Austria, the Debtor declared bankruptcy on
Jan. 15, 2009, (Bankr. Case No. 25 S 4/09i).


KRNIC KEG: Claims Registration Period Ends March 11
---------------------------------------------------
Creditors owed money by KEG Krnic (FN 286120s) have until
March 11, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Nikolaus Vogt
         Zeltgasse 3/13
         1080 Wien
         Austria
         Tel: 402 57 01 33
         Fax: 402 57 01-57
         E-mail: nikolaus.vogt@riess.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on March 25, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 7, 2009, (Bankr. Case No. 3 S 2/09b).


MONEYFRUITS JSC: Claims Registration Period Ends March 5
--------------------------------------------------------
Creditors owed money by JSC Moneyfruits (FN 206925b) have until
March 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Paul Wuntschek
         Advocacy LLC Klein
         Wuntschek & Partner
         Kaiser-Franz-Josef-Kai 70
         8010 Graz
         Austria
         Tel: 0316/813862
         Fax: 0316/813862-2
         E-mail: office@klein-wuntschek-partner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 2:25 p.m. on D March 19, 2009, for the
examination of claims at:

         Graz Land Court by Civil Cases (638)
         Room 227
         Graz
         Austria

Headquartered in Graz, Austria, the Debtor declared bankruptcy on
Jan. 14, 2009, (Bankr. Case No. 25 S 2/09w).


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


ASSCO ZOLLAGENTUR: Claims Registration Period Ends April 3
----------------------------------------------------------
Creditors of ASSCO Zollagentur GmbH have until April 3, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on 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 Esslingen
         Hall One
         Insolvency Tribunal
         Strohstrasse 5
         73728 Esslingen
         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:

         Markus Schneeberger
         Hasenbergsteige 5
         70178 Stuttgart
         Germany
         Tel: 0711/66907-91
         Fax: 0711/66907-69

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:

         ASSCO Zollagentur GmbH
         Attn: Swen Hermann, Manager
         Luftfrachtzentrum 610/2
         70629 Stuttgart
         Germany


BAC LEBENS: Claims Registration Period Ends March 25
----------------------------------------------------
Creditors of Bac Lebens Art GmbH have until March 25, 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 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 Hamburg
         Hall B 405
         Fourth Floor Annex
         Civil Justice Bldg.
         Sievkingplatz 1
         20355 Hamburg
         Germany

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

The insolvency manager can be reached at:

         Dr. Tjark Thies
         Domstrasse 15
         20095 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 30, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Bac Lebens Art GmbH
         Attn: Joern Poser, Manager
         Saseler Bogen 11
         22393 Hamburg
         Germany


CONTINENTAL AG: UAE Sovereign Fund Eyes 20% Stake in the Company
----------------------------------------------------------------
International Petroleum Investment Company, a sovereign wealth
fund from the United Arab Emirates, may take a stake in Schaeffler
Group or its Continental AG unit, a Financial Times Deutschland
report obtained by Bloomberg News said.

Bloomberg News relates an unidentified person in the financial
industry, as cited by Financial Times Deutschland, said IPIC is
considering taking a stake of at least 20 percent and probably
more than 25 percent in one of the companies.

As reported in the Troubled Company Reporter-Europe on Feb. 6,
2009, Fitch Ratings downgraded Continental's ratings noting
"rapidly weakening auto markets amid the severe global recession
which could further negatively impact Continental's future
performance and cash flow generation, in turn jeopardizing the
group's plan for swift de-leveraging."

Fitch downgraded Continental's Long-term Issuer Default and senior
unsecured ratings to 'BB' from 'BB+'.  The Short-term IDR was
affirmed at 'B'.  At the same time the Long-term IDR and senior
unsecured ratings have been removed from Rating Watch Negative.
The Outlook on the Long-term IDR is Negative.

The Negative Outlook, according to Fitch, reflects Continental's
ongoing sizable refinancing risk for its EUR3.5 billion tranche
maturing in August 2010, which is partly mitigated by its EUR2.5
billion revolving credit facility (committed until 2012) and cash
of nearly EUR1 billion as at end-Q308.

Fitch also noted the deteriorating credit quality of Continental's
major shareholder, Schaeffler KG, in light of its high
indebtedness associated with the acquisition of Continental
shares.

Schaeffler is now struggling to pay EUR11 billion (US$14 billion)
in debt from its purchase of a 49.9% stake in Continental on
January 8, 2009.  Its owners are now considering stake sale as
response to its application for government aid remains uncertain
and hunt for investors failed.

On January 29, 2009, the TCR-Europe reported Standard & Poor's
Ratings Services lowered its long-term corporate credit rating on
Continental to 'BB' from 'BBB-', following its analysis of
Continental's revised business plan and the renegotiation of
financial covenants.  The short-term corporate credit rating on
the group was lowered to 'B' from 'A-3'.  At the same time, the
ratings were removed from CreditWatch where they were placed with
negative implications on Dec. 15, 2008, on increasing concerns
about a possible covenant breach.  The outlook is negative.

                      About Continental AG

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


DRUCKGUT GMBH: Claims Registration Period Ends April 1
------------------------------------------------------
Creditors of Druckgut GmbH have until April 1, 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 29, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Jens-Soeren Schroeder
         Johannes-Brahms-Platz 1
         20355 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:

         Druckgut GmbH
         Attn: Marc Rausch, Manager
         Oberhafenstrasse 1
         20097 Hamburg
         Germany


EDSCHA: Sale Likely, Insolvency Administrator Says
--------------------------------------------------
German auto parts supplier Edscha is likely to be auctioned off,
Bettina Mayer at Automotive News reports citing the company's
insolvency administrator Joerg Nerlich.

Automotive News relates Mr. Nerlich said rescue talks are
constructive despite the economic crisis.  He noted talks involved
the company's customers, suppliers and banks.

The insolvency administrator believes there is a relistic chance
that the company's plants and many jobs can be saved, Automotive
News states.

                Canadian Plant to Shut Down

Bill Robinson at Niagara This Week discloses Edscha is shutting
down its Niagara Falls plant, putting 200 jobs at risk.

Doug Orr, national representative of Canadian Auto Workers union,
which represents the Edscha workers, as cited by Niagara This
Week, said the auto parts supplier is currently liquidating most
of its North American assets because of its bankruptcy proceedings
in Europe.

Niagara This Week adds Mr. Orr said it's unlikely the Niagara
Falls plant will reopen anytime soon even if Edscha reaches new
supplier agreements as it is expected the company will fill the
orders from one of its plants in Mexico.

On Feb. 5, 2009, citing Reuters, the TCR-Europe reported
Edscha filed for insolvency for its European sites on Feb. 2,
putting 4,200 jobs at risk.

According to Reuters, the debts incurred by the company's
leveraged buyout through Carlyle in late 2002 "was not
responsible" for the insolvency filing, but the massive slump in
car sales.

Washington Post recalled the insolvency of Edscha, which
manufactures door hinges, convertible roofs and driver controls
for major carmakers, follows a 50 percent drop in some of the
company's businesses during the fourth quarter of 2008.

"Edscha succumbed to the double-barreled effect of an ailing
worldwide economy and a suffering automobile industry," Washington
Post quoted Carlyle spokesman Chris Ullman as saying.

Carlyle acquired Edscha in January 2003 and grew sales from US$1
billion in 2005 to almost US$1.4 billion in the fiscal year that
ended June 2008.

The company's Asian and American operations, which employ the
remaining 1,600 workers, were not affected by the insolvency,
Reuters noted.


FOERDER ARBEIT: Claims Registration Period Ends April 7
-------------------------------------------------------
Creditors of Foerdergesellschaft Arbeit and Finanzmanagement mbH
have until April 7, 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 Hamburg
         Hall B 405
         Fourth Floor Annex
         Civil Justice Bldg.
         Sievkingplatz 1
         20355 Hamburg
         Germany

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

The insolvency manager can be reached at:

         F. Peters
         Deichstrasse 1
         20459 Hamburg
         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:

         Foerdergesellschaft Arbeit and
         Finanzmanagement mbH
         Attn: Klaus Stoltenberg, Manager
         Papenreye 27
         22453 Hamburg
         Germany


HYPO REAL ESTATE HOLDING: Gov't to Hold Talks With Flowers Today
----------------------------------------------------------------
Brian Parkin at Bloomberg News reports Germany's new Economy
Minister Karl- Theodor zu Guttenberg said he will kick-start
stalled efforts to solve the problems of Hypo Real Estate Holdings
AG.

According to the report, Minister Guttenberg told reporters in
Berlin he will hold "intensive talks" over Hypo Real with JC
Flowers & Co. LLC, the U.S.-based investor whose stake in Hypo
Real is a stumbling block to a potential government takeover of
the lender.

"I'm not a fan of nationalization and such a step needs to be
scrutinized very carefully," Bloomberg News quoted Minister
Guttenberg as saying.

The government will hold talks with Flowers today, Feb. 12, in
Berlin, Otto Bernhardt, finance spokesman for Chancellor Angela
Merkel's Christian Democrats, said as cited by Bloomberg News.

Rescue of Hypo Real is being pulled by two forces.  Bloomberg News
relates in Feb. 4 talks in Berlin, Chancellor Merkel and Social
Democrat leader Frank-Walter Steinmeier, her challenger in Sept.
27 elections, failed to resolve differences over Hypo Real.  The
Social Democrats favor nationalizing the bank, while Chancellor
Merkel's Christian Democrats is pushing to explore alternatives,
its budget spokesman Steffen Kampeter told Bloomberg News in a
Feb. 3 interview.

The report discloses JC Flowers's founder, J. Christopher Flowers,
paid EUR1.1 billion for his stake in Hypo Real and is asking for
10 euros per share from the government.  SPD Finance Minister Peer
Steinbrueck has threatened to take over the stake unless Flowers
agrees to part with it at market value, the report says.

                         Government Aid

According to Bloomberg News, Hypo Real, which already received
EUR92 billion from the government, was forced to seek a bailout
after Depfa Bank Plc, its Dublin-based unit, failed to get short-
term funding in September when credit markets seized up.
Hypo Real now needs another EUR10 billion, a Handelsblatt report
obtained by Bloomberg News said.

As reported in the Troubled Company Reporter-Europe on Jan. 23,
2009, the German Financial Markets Stabilisation Fund ("SoFFin")
extended its framework guarantee granted to Hypo Real Estate Group
by an additional EUR12 billion, bringing the aggregate guarantee
amount to EUR42 billion.

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

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

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

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

                      About Hypo Real Estate

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


                          *     *     *

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

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

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

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

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

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


KONZERMA KONSTRUKTION: Claims Registration Period Ends April 1
--------------------------------------------------------------
Creditors of Konzerma Konstruktion von Zerkleinerungsmaschinen
GmbH have until April 1, 2009, to register their claims with
court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on April 24, 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 1240
         Luxemburger Strasse 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Dr. Marc d' Avoine
         Doeppersberg 19
         42103 Wuppertal
         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:

         Konzerma Konstruktion von Zerkleinerungsmaschinen GmbH
         Wiesenstr. 17
         51702 Bergneustadt
         Germany

         Attn: Herting Gregor, Manager
         Marktstr. 32
         51702 Bergneustadt
         Germany


SCHAEFFLER KG: Gloomy Financing May Spur Debt-Equity Swap
---------------------------------------------------------
Schaeffler KG's lenders may be forced to swap debt for shares
after the company failed to attract new money to cut borrowings,
Bloomberg News reports citing three people, who declined to be
identified because the talks are private.  Talks are continuing,
the people said.

Members of Schaeffler's founding family, Maria-Elisabeth
Schaeffler, the widow of the founder, and her son Georg, have
offered to sell a stake in the company after an unsuccessful
search for other investors, Bloomberg News says.

The company, which is now struggling to pay EUR11 billion (US$14
billion) in debt from its purchase of a 49.9% stake in Continental
AG on January 8, 2009, has called on the German government for
aid.  According to Bloomberg News, Schaeffler's previous attempt
for government aid was ruled out by Chancellor Angela Merkel.

Bloomberg News recalls Schaeffler's troubles have piled up since
its July 15 hostile bid for Continental, a company three times its
size.  According to the news agency, Schaeffler expected that
derivatives contracts and what was then a low-ball bid would
secure a stake of 30 percent to 50 percent.  Instead, 82.4 percent
of Continental's capital was tendered, adding to a 7.8 percent
holding, as investors sold amid collapsing markets, the news
agency says.

Meanwhile, a Financial Times Deutschland report, as cited by
Bloomberg News, said International Petroleum Investment Co., a
sovereign wealth fund from the United Arab Emirates, is
considering taking a stake in Schaeffler or Continental.

The fund plans to contact Schaeffler and its banks about the
potential purchase of a stake of at least 20 percent, Bloomberg
News said citing the FT Deutschland report.

Schaeffler spokesman Detlef Sieverdingbeck declined to comment on
the report, according to Bloomberg News.

In a separate report, Bloomberg News says Germany's new Economy
Minister Karl- Theodor zu Guttenberg said he will kick-start
stalled efforts to solve the problems of the Schaeffler Group.

According to Bloomberg News, Minister Guttenberg told reporters in
Berlin he will hold "intensive talks" over Schaeffler in coming
days and seek a "plausible decision" over whether to approve state
aid.

A spokesman for the Economy Ministry, Steffen Moritz, as cited by
Bloomberg News, said Schaeffler must agree to a reorganization
plan over its debt with lenders, noting the company hasn't yet
submitted a proposal on how it would use such money.

Schaeffler may need EUR3 billion to EUR5 billion, Bild said in a
Feb. 2 report obtained by Bloomberg News.

                       About Schaeffler KG

Germany-based Schaeffler KG a.k.a Schaeffler Group --
http://www.schaeffler.com/-- manufactures a vast array of
bearings, from cylindrical roller bearings to needle roller
bearings, used in the aerospace, automotive, machine tool, and
semiconductor industries.  Its three main brands are INA, FAG, and
LuK, and though the entities are treated separately within the
company, they also work collaboratively on specific product
development.  The company is owned by Maria-Elisabeth Schaeffler,
the widow of a co-founder, and her son, Georg F. W. Schaeffler.


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LANDSBANKI ISLANDS: NY Court Grants Chapter 15 Protection
---------------------------------------------------------
Landsbanki Islands hf won a ruling from the U.S. Bankruptcy Court
for the Southern District of New York that approved its Chapter 15
petition in the U.S., and recognized Iceland as home to the
"foreign main proceeding."

On December 9, 2008, Kristinn Bjarnason in his capacity as the
foreign representative of Landsbanki Islands hf., filed a Verified
Petition for Recognition of a Foreign Main Proceeding and Motion
for Permanent Injunction, and Related Relief Pursuant to 11 U.S.C.
SS 1504, 1515, 1517, 1520, and 1521, pursuant to Chapter 15 of
title 11 of the United States Code, with the United States
Bankruptcy Court for the Southern District of New York.

The Petition and Motion sought the entry of an order granting
recognition to the Icelandic Proceeding currently pending in
Iceland as a foreign main proceeding and granting injunctive and
related relief in aid thereof.

                        About Landsbanki

Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. --
http://www.landsbanki.is/-- is a financial institution.  The Bank
filed for Chapter 15 protection on Dec. 9, 2008 (Bankr. S.D. N.Y.
Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison & Foerster
LLP, represents the Debtor.  When it filed for protection from its
creditors, it listed assets and debts of more than USUS$1 billion
each.


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


DRAG RACE: Creditors Must File Claims by March 6
------------------------------------------------
LLC Drag Race has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim.

The company can be reached at: (0-555) 01-21-31


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

The company can be reached at: (0-550) 25-79-27


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


ADYGEYA AIRLINES: Creditors Must File Claims by April 2
-------------------------------------------------------
Creditors of OJSC Adygeya Airlines have until April 2, 2009, to
submit proofs of claims to:

         V. Ovcharenko
         Insolvency Manager
         Proletarskaya St. 269
         385000 Maykop
         Russia

The Arbitration Court of Adygeya commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A01-B-802/08–1.

The Debtor can be reached at:

         OJSC Adygeya Airlines
         Airport
         385000 Maikop
         Adygeya
         Russia


CONSTRUCTION MATERIALS: Creditors Must File Claims by March 2
-------------------------------------------------------------
Creditors of OJSC Construction Materials Plant (TIN 6672210440)
have until March 2, 2009, to submit proofs of claims to:

         V. Solomeyin
         Temporary Insolvency Manager
         Post User Box 68
         Tbilisskiy Blvd 3
         Yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
supervision procedure.  The case is docketed under Case No. A60–
39665/2008-A11.

The Debtor can be reached at:

         OJSC Construction Materials Plant
         Mashinnaya St. 42/2-55
         Yekaterinburg
         Russia


EVRO-STROY LLC: Court Names P. Fomenko as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Krasnoyarskiy appointed P. Fomenko as
Insolvency Manager for LLC Evro-Story (TIN 2460055771, PSRN
1032401799737) (Construction).  The case is docketed under Case
No. A33–15280/2008.  He can be reached at:

         Office 10
         Lenina St. 62a
         Krasnoyarsk
         Russia


INCARGO LLC: Creditors Must File Claims by March 2
--------------------------------------------------
Creditors of LLC Incargo (TIN 5501059100) (Cargo Transportation)
have until March 2, 2009, to submit proofs of claims to:

         D. Sazhin
         Temporary Insolvency Manager
         Apt. 136
         Prospect Mira106a
         Omsk-89
         Russia

The Arbitration Court of Omsk will convene on May 5, 2009, to hear
bankruptcy supervision procedure.  The case is docketed under Case
No. A46–21377/2008.

The Debtor can be reached at:

         LLC Incargo
         Irtyshskaya St. 1a
         Beregovoy
         644901 Omsk
         Russia


LES-PROM-RESURSY LLC: Creditors Must File Claims by April 2
-----------------------------------------------------------
Creditors of LLC Les-Prom-Resursy (TIN 5504118346) have until
April 2, 2009, to submit proofs of claims to:

         V. Yevdokevich
         Insolvency Manager
         Prospect K. Marksa 18/6
         644042 Omsk
         Russia

The Arbitration Court of Omskaya commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A46–24373/2008.

The Debtor can be reached at:

         LLC Les-Prom-Resursy
         Zvezdova St. 103/222
         644070 Omsk
         Russia


NOVOSIBIRSKAYA MACARONI: Court Names Insolvency Manager
-------------------------------------------------------
The Arbitration Court of Novosibirskya appointed A. Tseluyev as
Insolvency Manager for OJSC Novosibirskaya Macaroni Factory.
The case is docketed under Case No. A45–11080/03-SB/207.  He can
be reached at:

         Fabrichnaya St. 33
         630007 Novosibirsk
         Russia


NOVOSIBIRSKIY COLD-STORAGE: Bankruptcy Hearing Set June 10
----------------------------------------------------------
The Arbitration Court of Novosibirskaya will convene at
1:30 p.m. on June 10, 2009, to hear bankruptcy supervision
procedure on OJSC Novosibirskiy Cold-Storage Facility (TIN
5403101650, PSRN 1025401303113).  The case is docketed under Case
No. A45–808/2009.

The Temporary Insolvency Manager is:

         Yu. Yerdik
         Sibiryakov-Gvardeytsev St. 54
         630088 Novosibirsk
         Russia

The Court is located at:

         The Arbitration Court of Novosibirskaya
         Hall 407
         Nizhegorodskaya St. 6
         630102 Novosibirsk
         Russia

The Debtor can be reached at:

         OJSC Novosibirskiy Cold-Storage Facility
         Sibiryakov-Gvardeytsev St. 54
         630088 Novosibirsk
         Russia


OMSKIY GROATS: Creditors Must File Claims by April 2
----------------------------------------------------
Creditors of LLC Omskiy Groats Plant have until April 2, 2009, to
submit proofs of claims to:

         B. Kamakin
         Insolvency Manager
         Post User Box 9270
         644029 Omsk
         Russia

The Arbitration Court of Omskaya commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A46–11827/2008.

The Debtor can be reached at:

         LLC Omskiy Groats Plant
         12 Dekabrya St. 1
         Omsk
         Russia


VERKHNETAGILSKIY CONSTRUCTION: Claims Filing Deadline Set March 2
-----------------------------------------------------------------
Creditors of LLC Verkhnetagilskiy Construction Structures Plant
(TIN 6616006226) have until March 2, 2009, to submit proofs of
claims to:

         S. Semenov
         Temporary Insolvency Manager
         Post User Box 439
         620000 Yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
supervision procedure.  The case is docketed under Case No. A60–
34827/2008-S11.

The Court is located at:

         The Arbitration Court of Sverdlovskaya
         Lenina St. 34
         620000 Yekaterinburg
         Russia

The Debtor can be reached at:

         LLC Verkhnetagilskiy
         Construction Structures Plant
         Industrial Zone
         624160 Verkhniy Tagil
         Russia


VIMPELCOM OJSC: To Issue RUR30 Billion Bonds to Refinance Debts
---------------------------------------------------------------
OJSC Vimpel-Communications on Tuesday, Feb. 10, said that it
intends to submit to the Russian Federal Financial Markets Service
documentation required for the potential issuance of Russian
ruble-denominated bonds through LLC VimpelCom-Invest, a
consolidated Russian subsidiary of VimpelCom.  The bonds may be
issued depending on VimpelCom's funding needs within a period of
one year from the date on which the Russian Federal Financial
Markets Service registers the submitted documentation.  The
proposed amount of the issue is up to RUR30 billion, which is the
equivalent of approximately US$830.4 million at Tuesday's Central
Bank of Russia exchange rate.  The bonds will be guaranteed by
VimpelCom.

The proposed maturity period is five years.  The coupons are to be
paid semiannually.  Bond holders will have the right to sell their
bonds to VimpelCom-Invest earlier under conditions which will be
determined prior to the public placement.  The bonds may be issued
in three series with face values of RUR10 billion for each, and
the coupon rate for each series will be determined for the period
prior to exercise of the put-option or redemption, depending on
market conditions.  The annual interest rate will be defined as
the result of a public placement.

VimpelCom intends to use the proceeds from the bonds for
refinancing of its existing indebtedness denominated in foreign
currency and the development of VimpelCom's core business.

                     About VimpelCom

Headquartered in Moscow, Russia, VimpelCom (NYSE: VIP) --
http://www.vimpelcom.com/-- provides mobile telecommunications
services in Russia and Kazakhstan with newly acquired operations
in Ukraine, Tajikistan and Uzbekistan.  The Company operates
under the 'Beeline' brand in Russia and Kazakhstan.  In
addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS'
brands in Kazakhstan.

                        *     *     *

OJSC Vimpel Communications continues to carry Ba2 long-term
corporate family rating, Ba2 senior unsecured debt rating and Ba2
probability of default rating from Moody's with positive outlook.

Vimpelcom also carries BB+ long-term foreign issuer credit rating
and BB+ long-term local issuer credit rating from Standard &
Poor's with stable outlook.


VOLGO-STROY LLC: Samarskaya Bankruptcy Hearing Set May 29
---------------------------------------------------------
The Arbitration Court of Samarskaya will convene on May 29, 2009,
to hear bankruptcy supervision procedure on LLC Volgo-Stroy (TIN
6316044446) (Construction).  The case is docketed under Case No.
A55–16649/2008.

The Temporary Insolvency Manager is:

         A. Bratyashin
         Post User Box 4081
         443110 Samara
         Russia

The Debtor can be reached at:

         LLC Volgo-Story
         K. Libkhnekta St. 1
         Samara
         Russia


YENISEYSKAYA ENERGY: Creditors Must File Claims by March 2
----------------------------------------------------------
Creditors of OJSC Yeniseyskaya Energy Company have until
March 2, 2009, to submit proofs of claims to:

         S. Ivanov
         Temporary Insolvency Manager
         Post User Box 26663
         660036 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarskiy will convene at
11:00 a.m. on May 14, 2009, to hear bankruptcy supervision
procedure.  The case is docketed under Case No. A33–14033/2008.

The Debtor can be reached at:

         OJSC Yeniseyskaya Energy Company
         Proletarskaya St. 4
         Yeniseysk
         663180 Krasnoyarskiy
         Russia


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


MARTINSA FADESA: Posts EUR2.25 Bln 9-Mo Loss on Asset Write-Down
----------------------------------------------------------------
Reuters reports Martinsa Fadesa SA posted a EUR2.25 billion loss
in the nine months to September 2008 following an asset write-down
of EUR2.37 billion.

The loss compared to EUR230 million the company originally stated
in November, Reuters relates.

"In July a valuation of assets was not done, and the change in
results happened after receiving the valuation," Reuters quoted a
spokesman for the company as saying.

As reported in the Troubled Company Reporter-Europe on July 17,
2008, Martinsa Fadesa filed for opening of administration
procedures at the Mercantile Court of La Coruna after it failed to
a secure a EUR150 million loan -- a requirement for its EUR4
billion debt refinancing agreement with creditor banks.

The Mercantile Court of La Coruna named Antonia Magdaleno; the
Comision Nacional del Mercado de Valores named Angel Martin Torres
of KPMG; and creditor-bank Bankinter S.A. named Antonio Moreno
Rodriguez as administrators.

The property group attributed its financial troubles to "clear
recession that the Spanish economy is suffering at the moment".

Headquartered in Corunna, Spain, Martinsa Fadesa SA --
http://www.martinsafadesa.com/-- develops residential and
commercial property projects, including hotels, shopping centers
and golf courses, as well as industrial projects, among others.
The company also operates in Portugal, Romania, Hungary,
Ireland, France, Bulgaria, Mexico, the Dominican Republic, the
Czech Republic, Slovakia, and Poland.


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


VOLVO AB: Won't Seek French Aid, Mulls Further Job Cuts
-------------------------------------------------------
AB Volvo said it won't take loans from the French government for
its Renault Trucks unit as it considers further job cuts, Ola
Kinnander at Dow Jones Newswires reports.

Volvo has laid off 16,255 employees around the world since
September and has already cut the work force at Renault Trucks in
France by not renewing the temporary contracts of about 2,000
workers, according to Dow Jones.

The report discloses France, on Monday, revealed details of a plan
to bail out its auto industry, which terms include keeping any
French plants open for the duration of the loans.

Dow Jones says French car makers PSA Peugeot-Citroλn SA and
Renault SA are to receive EUR3 billion, or about US$4 billion, in
loans each, and as part of their loan agreements, both companies
have agreed not to close any French plants for the duration of the
five-year loans.

"We can't take a loan [for Renault Trucks] with the kind of
conditions they're imposing for the car makers in France," Dow
Jones quoted Volvo spokesman Marten Wikforss as saying.

Dow Jones relates Mr. Wikforss however said it was unclear whether
Volvo, if it were to take a loan for Renault Trucks, would be
subject to the same conditions that apply to the car makers.

According to Dow Jones, Volvo bought Renault's truck business,
including Mack trucks in the U.S., in 2001 in a US$1.6 billion
deal.  As part of the agreement Renault took a 15% stake in the
Swedish truck maker.  Renault now is Volvo's largest shareholder
with a 21.8% share of the capital and 21.3% share of the votes.

                      2008 Interim Results

In a February 6 statement, Volvo said its new truck inventory
during the fourth quarter decreased by 13% and the inventory with
new construction vehicles decreased by 19%, which contributed to
reducing capital tied-up in inventory by approximately SEK6
billion.

In the fourth quarter net sales decreased by 9% to SEK77 billion
(85) while for the full year net sales increased by 6% to SEK304
billion (285).

Fourth quarter operating loss amounted to SEK999 M (Income: 5,775)
while full year operating income amounted to SEK15,851 M (22,231).

Working capital in the Industrial Operations was reduced by SEK5.1
billion contributing to a positive operating cash flow of SEK1.8
billion.
The Board of Directors proposes an ordinary dividend of SEK2.00
per share.

                         About AB Volvo

Based in Gothenburg, Sweden, AB Volvo (OTC:VOLVY) --
http://www.volvo.com/-- is a supplier of commercial transport
solutions providing products, such as trucks, buses, construction
equipment, drive systems for marine and industrial applications,
as well as aircraft engine components.  The Company is also
engaged in providing financial services.  The business areas of
the Company are Volvo Trucks, Renault Trucks, Mack Trucks, Trucks
Asia, Buses, Construction Equipment, Volvo Penta, Volvo Aero and
Customer Finance.  The business units include Volvo Powertrain,
Volvo 3P, Volvo IT, Volvo Logistics and Volvo Parts.  On April 30,
2007, the Company completed the acquisition of American Ingersoll
Rand's road development division, with the exception of the
operations in India, which followed on May 4, 2007.  During the
year ended December 31, 2007, the Company completed the
acquisition of Nissan Diesel.  In January 2007, AB Volvo completed
the acquisition of 70% in Shandong Lingong Construction Machinery
Co. (Lingong).


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


HANS BINDER: Creditors Must File Proofs of Claim by February 19
---------------------------------------------------------------
Creditors owed money by LLC Hans Binder are requested to file
their proofs of claim by Feb. 19, 2009, to:

         Hans Binder
         Liquidator
         Geerenstrasse 34a
         8604 Volketswil
         Switzerland

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


INTER PROTEINE: Deadline to File Proofs of Claim Set February 19
----------------------------------------------------------------
Creditors owed money by JSC Inter Proteine are requested to file
their proofs of claim by Feb. 19, 2009, to:

         JSC Battig Treuhand
         Obergrundstrasse 17
         6002 Luzern
         Switzerland

The company is currently undergoing liquidation in Genf.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 13, 2008.


KSB KISLING: Creditors Have Until February 16 to File Claims
------------------------------------------------------------
Creditors owed money by JSC KSB Kisling are requested to file
their proofs of claim by Feb. 16, 2009, to:

         Martin Bartschi
         Liquidator
         Weidenring 32a
         4147 Aesch
         Switzerland

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


LEHMAN BROTHERS FINANCE: Voluntary Chapter 15 Case Summary
----------------------------------------------------------
Chapter 15 Debtor: Lehman Brothers Finance AG
                  aka Lehman Brothers Finance SA
                  Talstrasse 82, 8001
                  Zurich, Switzerland

Chapter 15 Case No.: 09-10583

Debtor-affiliate filing separate Chapter 15 petitions on Oct. 3,
2008:

       Entity                                     Case No.
       ------                                     --------
Lehman Brothers Finance SA                         08-13887

Type of Business: The Debtors provide investment banking services
                 to institutional, corporate, government, and
                 individual clients.  Lehman Brothers Finance AG
                 operates as a subsidiary of Lehman Brothers
                 Inc.

Chapter 15 Petition Date: February 20, 2009

Court: Southern District of New York (Manhattan)

Chapter 15 Petitioner's Counsel: Michael A. Rosenthal, Esq.
                                mrosenthal@gibsondunn.com
                                Gibson, Dunn & Crutcher LLP
                                200 Park Avenue, 47th Floor
                                New York, NY 10166
                                Tel: (212) 351-4000
                                Fax: (212) 351-4035

Estimated Assets: More than US$1 billion

Estimated Debts: More than US$1 billion


LM MECHANIK: Proof of Claim Filing Deadline Set February 19
-----------------------------------------------------------
Creditors owed money by JSC LM Mechanik are requested to file
their proofs of claim by Feb. 19, 2009, to:

         The Muhlemattstrasse 26
         4112 Battwil
         Switzerland

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


OPTITE JSC: Creditors' Proofs of Claim Due by February 18
---------------------------------------------------------
Creditors owed money by JSC OptiteC are requested to file their
proofs of claim by Feb. 18, 2009, to:

         Urs M. Bucher
         Liquidator
         Sempacherstrasse 5
         6003 Luzern
         Switzerland

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


PROTEIN TRADING: February 19 Set as Deadline to File Claims
-----------------------------------------------------------
Creditors owed money by JSC Protein Trading Corporation are
requested to file their proofs of claim by Feb. 19, 2009, to:

         JSC Battig Treuhand
         Obergrundstrasse 17
         6002 Luzern
         Switzerland

The company is currently undergoing liquidation in Luzern.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 13, 2008.


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


BANK KIEV: Placed in Receivership by Ukraine's Central Bank
-----------------------------------------------------------
Natalya Zinets at Reuters reports that Ukraine's central bank has
placed Bank Kiev in receivership, protecting it from creditors.

Citing a central bank official, the report relates "a moratorium
(on withdrawals) has been introduced".

The report discloses according to central bank data, Bank Kiev's
assets stood at UAH4.9 billion (US$633 million) as of Jan. 1,
while its capital totaled UAH590 million.

The bank's individual deposits stood at UAH2.2 billion and
corporate deposits at UAH650 million, the report adds.

Bank Kiev is Ukraine's 39th bank in terms of assets, the report
notes.

The report states several Ukrainian banks ran into liquidity
problems as the global financial crisis grips the country, leading
to an outflow of deposits and difficulties in refinancing credits.


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


BRITISH AIRWAYS: Revenue Up 6.2% for 9-Mos Ended December 31
------------------------------------------------------------
British Airways plc on Friday, Feb. 6, presented its interim
management statement for the nine months ended December 31, 2008.

British Airways' chief executive Willie Walsh, said: "These
results have been hit by further economic weakness and the fall in
sterling.  This has resulted in an operating profit of GBP89
million.

"Revenue up 6.2 per cent received significant support from
currency which more than offset volume declines.

"Costs were up by more than GBP1 billion in the period at GBP7
billion reflecting the significantly increased fuel costs and the
impact of weak sterling.  Fuel costs were up almost 50 per cent at
GBP2.2 billion.  Non-fuel costs rose by GBP335 million to GBP4.7
billion.

"We have already taken several actions to offset the unprecedented
economic conditions.  We have increased our sales activity in
markets with stronger foreign currencies to benefit from exchange
and continue to offer competitive fares in both premium and non-
premium cabins.  We continue to review every aspect of the
business to control costs while at the same time improving the
customer experience and operation."

                       Financial Review

Total revenue in the period was up 6.2 per cent year on year.

Passenger revenue at GBP6.2 billion was up 6.6 per cent on
capacity (measured in ASKs) up 0.2 per cent.  Yields were up 9.6
per cent, due to a 4.2 per cent benefit from exchange, price
increases of 5 per cent (including a 1.4 per cent benefit from a
change in estimation basis for outdated tickets) and a positive
mix impact of 0.4 per cent.  Seat factor was down 2.3 points to
78.4 per cent as the current economic downturn continues to impact
volumes.

BA's cargo business has seen a strong nine months.  Revenue
improved by 18.8 per cent to GBP537 million.  Volume, measured in
cargo tonne kilometres (CTKs), was down 1.7 per cent, driven by a
significant softening in the last quarter.  This was offset by
yield improvements due to exchange and fuel surcharge increases.

Total group operating costs were up 18.1 per cent, with unit costs
up 20.4 per cent, due to the dramatic increase in fuel costs and
weakening sterling.

The average market price of fuel, measured in US dollars, was up
40.7 per cent over the same period last year.  BA's fuel bill was
up 48.4 per cent, despite a fuel hedging profit of GBP194 million,
reflecting the collapse of sterling against the US dollar.

Other costs were up GBP335 million to GBP4,713 million.  The
underlying increase, excluding currency impacts of GBP237 million
due to weakening sterling, was GBP98 million including a GBP40
million charge for severance taken in September.

Cash at the end of December was GBP1.6 billion, GBP278 million
lower than at March 2008.  BA's net debt was GBP2.2 billion, up
GBP0.9 billion since the year end, GBP0.6 billion of this increase
due to exchange.  Committed facilities of GBP2.4 billion have been
secured for aircraft purchases out to December 2012.  This
includes GBP0.2 billion for the Embraer aircraft ordered in
December.  BA also has general purpose committed facilities of
GBP0.7 billion.

As previously announced, during the nine month period BA has taken
a charge for the abolition of industrial building allowances.
Excluding this one-off charge, the tax rate for the period would
have been 27 per cent.

The Group adopted both IFRIC 13 ('Customer Loyalty Programmes')
and IFRIC 14 ('Limit on a Defined Benefit Asset, Minimum Funding
Requirements and Their Interaction') on April 1, 2008.  The
results for the year ended March 31, 2008 have been restated
accordingly.

                        Capacity

During the period BA launched new routes from Heathrow to
Hyderabad and from Gatwick to St Kitts.  Shorthaul services from
Gatwick to Newquay, Sarajevo, Poznan and Dresden were suspended.

Other reductions have come mainly from reduced frequencies on
shorthaul routes where the airline operates several services so as
not to compromise the network.

                    Competitive Cost Base

The current weak economic environment drives a need for
significant cost reduction, as revenue growth will be difficult.
In the period BA completed a management restructuring and
associated voluntary severance program.

The airline has opened discussions with the trade unions about pay
and productivity, which is required to improve the financial
performance of the company.

                      Trading Outlook

BA said the industry continues to face very difficult trading
conditions on the back of a weak economic environment.

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

BA's fuel bill for the year is still expected to be some GBP3
billion.  The airline said it is well placed to benefit from
falling fuel prices going into next year.

Including the impact of restructuring costs and exchange, BA's
non-fuel costs are now expected to rise 8 per cent (5 per cent
last guidance).

BA's capital guidance remains unchanged at GBP550 million.
The airline's overall guidance is for an operating loss of around
GBP150 million for the year.

                     About British Airways

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

                          *     *     *

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


BRITISH AIRWAYS: Traffic Figures Down 1.3% in January 2009
----------------------------------------------------------
British Airways plc reported traffic and capacity statistics for
January 2009.
   
In January 2009, passenger capacity, measured in Available-Seat-
Kilometers, was 2.6 per cent below January 2008.  Traffic,
measured in Revenue-Passenger-Kilometers, fell by 1.3 per cent.
This resulted in a passenger load factor increase of 1.0 points
versus last year, to 73.2 per cent.  Traffic comprised a 13.7 per
cent decrease in premium traffic and a 1.4 per cent rise in non-
premium traffic.

Cargo, measured in Cargo-Ton-Kilometers, fell by 16.7 per cent.

                    About British Airways

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

                          *     *     *

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


JJB SPORTS: To Put Two Subsidiaries in Administration
-----------------------------------------------------
JJB Sports plc said that notice of intention to appoint an
administrator in respect of the two subsidiaries, Original Shoe
Company Limited and Qubefootwear Limited, comprising its Lifestyle
division, has been filed in court.

OSC is a retailer of branded lifestyle clothing and footwear
operating out of 64 stores and Qube is a retailer of fashion
footwear operating out of 13 stores.  As previously  announced,
the Board of JJB has for some months been reviewing its options in
respect of the future of the Lifestyle division and a preliminary
approach for the  division, referred to in the Company's
announcement of October 15, 2008, did not result in a transaction.

The LifeStyle division continues to trade at a substantial loss
and the directors of each of OSC and Qube have decided to file
notice of intention to appoint Messrs. Fleming, Costley-Wood and
Nimmo of KPMG LLP as administrators of OSC and Qube, respectively.
The Board of JJB remains hopeful that a third party may become
interested in acquiring the businesses.

The filing of notice of intention to appoint administrators (and
any subsequent administration) of OSC and Qube by their boards of
directors is provided for in the terms of the Company's extended
standstill arrangement with its lenders and does not affect any of
the Company's other trading businesses.

JJB confirmed that it has received a number of non-binding
indications of interest for this business and that discussions are
continuing.

However, JJB noted there can be no certainty that any of these
indicative indications of interest will result in a transaction or
as to the terms of any such transaction.

According to Sarah O'Connor of The Financial Times, the two shoe
chains lost GBP15 million last year.

The FT relates JJB hoped to sell the chains, along with its
better-performing health club business, to help pay off its GBP60
million debt.

                    About JJB Sports

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

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

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

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

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

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

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

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


KLEENAIR SYSTEMS: Insolvency Practitioner to Be Appointed
---------------------------------------------------------
KleenAir Systems International Plc has resolved to appoint an
insolvency practitioner to advise both the company and its main
operating subsidiary KleenAir Systems Limited as the company no
longer had the prospect of meeting its liabilities due to its
inability to secure additional working capital.

The company has accordingly requested that trading in its ordinary
shares be suspended pending clarification of its financial
position.

The company also advises that the company's broker has given
notice of its resignation.

KleenAir Systems International plc
http://www.kleenairsystems.co.uk–- is a United Kingdom-based
company engaged in the development of vehicle emission reduction
devices.  As of September 30, 2007, the company held 100% of
KleenAir Systems Limited.


REAL HOTEL: Focus to Take Over 10 Hotels; 500 Jobs Saved
--------------------------------------------------------
Air and Travel Business News reports that Focus Hotels Management
Ltd is to take over 10 hotels previously leased by the Real Hotel
Company, safeguarding 500 jobs.

According to the report, Focus will now operate RHC's hotels in
Altrincham, Wigan, Wolverhampton, Hull, Hatfield, Chester,
Northampton, Stafford, Blackburn and Telford.

"We are delighted to have agreed a deal to operate these hotels,"
the report quoted Peter Cashman, chief executive of Focus, as
saying.

"Having been a founder Director of Friendly Hotels, which later
became the Real Hotel Company, and working with Alun Edwards and
Tony Mylchreest, themselves former Operations Directors, we are
familiar with all the hotels and look forward to delivering the
long term development plans to take the business forward."

As reported in the TCR-Europe on Jan. 23, 2009, Shay Bannon and
Tony Nygate of BDO Stoy Hayward LLP were appointed joint
administrators of The Real Hotel Company Limited on Jan. 21, 2009.

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

The appointment of BDO Stoy Hayward follows the suspension of
shares in the parent company amid uncertainty over its financial
position, The Scotsman disclosed.

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

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

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


ROYAL BANK: Mulls Laying Off 2,300 Workers in U.K.
--------------------------------------------------
Dow Jones Newswires reports The Royal Bank of Scotland Group PLC
said it has begun a consultation process that could lead to 2,300
jobs being cut in the U.K.

According to the report, the bank said this figure represents 2%
of the group's 106,000 jobs in the U.K., and that it wouldn't
affect customer-facing branch staff.

"We recognize that any news of this nature is unwelcome at any
time.  It is essential, however, that we consistently review our
business to ensure that we are able to operate as efficiently as
possible, especially in the current economic circumstances," Dow
Jones quoted Alan Dickinson, head of RBS U.K., as saying.

Mr. Dickinson, as cited by the report, said the bank will be
consulting with the trade union Unite and that the group will keep
compulsory redundancies to a minimum.

              About The Royal Bank of Scotland Group plc

The Royal Bank of Scotland Group plc (RBS) -- http://www.rbs.com/
-- (NYSE:RBS) is a holding company of The Royal Bank of Scotland
plc (Royal Bank) and National Westminster Bank Plc (NatWest),
which are United Kingdom-based clearing banks.

The Company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.

On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company
jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco
Santander S.A. (the Consortium Banks) and controlled by RBS,
completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO).
In July 2008, the Company disposed its entire interest in Global
Voice Group Ltd.  In January 2009, the Company sold its entire
interest in Bank of China.


SWEET OF MEDICINE: Two Pubs In Administration
---------------------------------------------
Ewan Turney at Morning Advertiser reports that two of Sweet
Medicine's A Touch of Novelli pubs, the White Horse and the French
Horn, have gone into administration.

The two pubs run by TV chef Jean Christophe Novelli have ceased
trading after Sweet Medicine ran into financial difficulties over
a dispute with investors.

Mr. Novelli, as cited by the report, said he had sold his shares
in September.


XSTRATA PLC: Canadian Nickel Unit to Cut 686 Jobs at Sudbury
------------------------------------------------------------
Xstrata Nickel disclosed plans to restructure its Sudbury
operations in response to ongoing challenging market conditions.
The restructuring follows the announcement in November 2008 of the
accelerated closure of the end-of-life Craig and Thayer-Lindsley
operations at Sudbury, both of which will cease operations with
immediate effect.

As a result of the restructuring, the Fraser Mine Complex will be
placed on care and maintenance and associated support and
administrative functions will be reorganized.  The Strathcona
Mill, with annual capacity of 2.7 million tonnes of ore, will be
reduced to two work shifts from four as a result of reduced feed.
In addition, the Fraser Morgan development project will be
deferred.  This project will be evaluated on an ongoing basis and
may be re-initiated when economic conditions allow.

The announcement does not impact the world-class Nickel Rim South
project in the Sudbury basin.  The project remains on schedule to
ramp up to 60% of its ultimate 1.25 million tonne per annum
production capacity in 2009, equivalent to approximately 7,400
tonnes of nickel.  Nickel Rim South will become a low-cost,
cornerstone operation in Sudbury, generating annual production of
approximately 18,000 tonnes of recoverable nickel by early 2010.
Xstrata Nickel has invested C$627 million for the project's first
phase, which came in on time and on budget, and has approved the
remaining project capital expenditure of C$300 million for the
completion of mine development and infrastructure.  Nickel Rim
South is a long-life operation that is expected to provide a high-
value ore feed while significantly reducing Sudbury's unit costs.

Total production from the Sudbury Smelter is expected to remain at
a similar level compared to 2008 production as shortfalls arising
from the cessation of Sudbury Mines will be offset by concentrates
from Nickel Rim South and Xstrata Nickel Australasia.
Concentrates will also continue to be processed from Xstrata
Nickel's Montcalm and Raglan operations, together with third-party
feed.

Ian Pearce, Xstrata Nickel Chief Executive commented: "Our
leadership team is taking proactive and decisive measures during
challenging times.  The continued decline of the economic
environment and deteriorating commodity markets, coupled with high
operating costs particularly at our older mines, are negatively
impacting our Sudbury operations.  The actions announced today aim
to reposition our Sudbury complex into the bottom quartile of the
cost curve, ensure our operations remain financially robust even
during a potentially long period of depressed commodity prices and
establish a strong foundation for further growth in the region.

"Our Sudbury complex is an important part of Xstrata Nickel and we
remain fully committed to continuing to operate at Sudbury for
many years to come.  Nickel Rim South remains a top priority and
development work on the project continues without interruption."

As a result of the restructuring, 686 permanent employee positions
will be made redundant, affecting both union and salaried
employees in operational and non-operational roles.  A three-day
stoppage of operations was initiated on Monday, Feb. 9,  to allow
the restructuring to occur.

Marc Boissonneault, Vice-President of Xstrata Nickel Sudbury
Operations said: "There are no decisions more difficult than those
which directly impact our employees, particularly to this degree.
We recognize that this restructuring of our operations will affect
our employees, their families, our unions and other key
stakeholders.  With this, our first priority is to ensure that
displaced employees are treated fairly and with respect.  This
will include a three-day pause of the organization, professional
outplacement services and expanded Employee Assistance Programs
offering counselling and support over the coming months.

"We are making these tough decisions to sustain our business in
the immediate and longer term.  Ultimately these actions will
result in more robust and viable operations at Sudbury that
continue to create value and jobs for the local community over the
medium and long term."

                         About Xstrata

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

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

On Dec. 29, 2008, the TCR-Europe reported that according to The
Daily Telegraph, Xstrata plc could breach its debt covenants as
analysts expect tumbling coal prices to hit 2008 and 2009
earnings.

UBS analysts Grant Spore and Paul Gallowa warned Xstrata is likely
to breach its debt covenants of three times gross debt to EBITDA
on US$10 billion of bank loans, the report disclosed.

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

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


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