TCREUR_Public/090220.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, February 20, 2009, Vol. 10, No. 36

                            Headlines

A U S T R I A

3D PHOTO: Claims Registration Period Ends March 4
A & K Hatzigmoser: Claims Registration Period Ends March 4
ALLITEM LLC: Claims Registration Period Ends March 4
DALLINGAIR LLC: Claims Registration Period Ends March 2
LEOPOLDSTRASSE 17 LLC: Claims Registration Period Ends March 4


G E R M A N Y

AD IMCO: Claims Registration Period Ends March 1
CONSULTING FUER ENERGIE: Claims Registration Period Ends March 19
ECO-SOLAR GMBH: Claims Registration Period Ends March 25
GENERAL MOTORS: Eyes US$1.2 Billion Cost Reductions in Europe
HEAT MEZZANINE: Fitch Junks Ratings on EUR30.8 Mil. Notes

MEDIA & MARKETING: Claims Registration Period Ends March 10
QIMONDA AG: Works Council Believes a Buyer Will Be Found
QIMONDA AG: U.S. Unit Fails to Complete Severance Payments

* GERMANY: Gets EU Okay to Reduce Interest Rates to Boost Economy


G R E E C E

DRYSHIPS INC: Moving in Right Direction, Says Lender


I R E L A N D

ANGLO IRISH: EC Raises No Objections to Change of Ownership


I T A L Y

CORDUSIO RMBS: Fitch Puts 'BB'-Rated Class E 2007 Notes on RWN


K A Z A K H S T A N

ATYRAU-SHELF LLP: Creditors Must File Claims by March 20
ELECTRO IMPEX: Creditors Must File Claims by March 27
JEL DOR: Creditors Must File Claims by March 27
PMK-49 LLP: Creditors Must File Claims by March 20
SAK-2008 LLP: Creditors Must File Claims by March 20

STROY LES LLP: Creditors Must File Claims by March 27
STROYKA-2006 LLP: Creditors Must File Claims by March 27
SUN SYSTEM LLP: Creditors Must File Claims by March 20
TRANS SERVICE SRK: Creditors Must File Claims by March 27
TRANS-SERVICE TGO: Creditors Must File Claims by March 27


K Y R G Y Z S T A N

ENERGO STROY: Creditors Must File Claims by March 13


L I T H U A N I A

BITE LIETUVA: S&P Cuts Corporate Credit Rating to 'CC'


L U X E M B O U R G

MILLICOM INTERNATIONAL: S&P Withdraws 'BB' Corporate Credit Rating


N E T H E R L A N D S

PANGAEA ABS: Fitch Junks Ratings on Three Classes of 2007-1 Notes


R U S S I A

BELMYASO OAO: To Be Liquidated; Shareholders' Meeting Set March 24
BELOYARSKIY CONSTRUCTION: Creditors Must File Claims by April 6
BORETSKIY LES-PROM-KHOZ: Claims Deadline on March 15
CONSTRUCTION MATERIALS: Karelia Bankruptcy Hearing Set May 13
FIRE-PROOF MATERIALS: Creditors Must File Claims by March 15

ROST-STROY-INVEST LLC: Bankruptcy Hearing Set June 9
TEKHNO-STROM-DOR-STROY LLC: Bankruptcy Hearing Set July 30
TEKHNOLOGII LESA: Creditors Must File Claims by March 15
TRUBCHEVSKIY LES-KHOZ SUE: April 14 Set as Claims Filing Deadline
VOKHTOGA-LES LLC: Creditors Must File Claims by March 15

VTOR-CHER-MET CJSC: Creditors Must File Claims by March 15

* RUSSIA: January Unemployment Rate Highest in 4 Years


S P A I N

AYT COLATERALES: Fitch Assigns 'B' Rating on EUR10.5 Mil. Notes
TDA PASTOR: S&P Cuts Rating on Class C Notes to 'B'


S W I T Z E R L A N D

ABC NAILSTORE: Creditors Must File Proofs of Claim by Feb. 26
EXELEXI JSC: Deadline to File Proofs of Claim Set Feb. 26
FACTUM JSC: Creditors Have Until Feb. 26 to File Claims
HEGEMO JSC: Proofs of Claim Filing Deadline is Feb. 26
IDEEART LLC: Creditors' Proofs of Claim Due by Feb. 26

MS LOUNGE: Feb. 26 Set as Deadline to File Claims
T.N.A. MUNAJ: Creditors Must File Proofs of Claim by Feb. 26
UBS AG: U.S. Wants Firm to Disclose Swiss Bank Account Records
UBS AG: Agrees to Pay US$200 Million to Settle U.S. SEC Charges


T U R K E Y

ANADOLU EFES: Fitch Affirms Issuer Default Rating at 'BB'


U K R A I N E

IMAGE PRO: Creditors Must File Claims by March 1
MACHINEBUILDING SUMYSILMACH: Court Starts Bankruptcy Procedure
SHEPROS LLC: Creditors Must File Claims by March 4
TECHNOSPHERE LLC: Creditors Must File Claims by March 1
ZVENIGORODKA AGRICULTURAL: Creditors Must File Claims by March 1


U N I T E D   K I N G D O M

BUCHANAN ARMS: Appoints Joint Administrators from KPMG
CARTER BROTHERS: Names Joint Administrators from PKF
CHEVLER PACKAGING: Goes Into Administration
LIMEHOUSE DEVELOPMENTS: Taps Joint Administrators from BDO
GLOBE PUB: S&P Downgrades Rating on Class B Notes to 'BB+'

J BLACKBURN: In Administration; KPMG Appointed
MACK-LINE LTD: Appoints Joint Administrators from BDO
MARDAYNE ESTATES: Names Joint Administrators from BDO
STANTON MBS: Fitch Cuts Rating on EUR10 Mil. Notes to 'BB-'
WARNER ESTATE: Calls In Rothschild to Advise on Debt Restructuring

XSMG LTD: Taps Joint Administrators from KPMG
ZAVVI UK: Ceases Trading; 446 Jobs Axed

* UK: Business Failures Up 30% in 2008, Experian Says
* UK: R3 Sees 11 More High Street Brand Insolvencies in 2009
* EC Assesses Stability & Convergence Programs of 6 Member States
* EC Assesses Stability & Convergence Programs of 11 Member States

* BOOK REVIEW: Corporate Recovery - Managing Cos. in Distress


                         *********


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


3D PHOTO: Claims Registration Period Ends March 4
-------------------------------------------------
Creditors owed money by JSC 3D Photo (FN 294812y) have until
March 4, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Matthias Schmidt
         Dr. Karl Lueger-Ring 12
         1010 Wien
         Austria
         Tel: 01/533 16 95
         Fax: 01/535 56 86
         E-mail: schmidt@preslmayr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on March 18, 2009, for the
examination of claims at:

         Land Court of Korneuburg (119)
         Room 204
         Korneuburg
         Austria

Headquartered in Schwechat, Austria, the Debtor declared
bankruptcy on Jan. 19, 2009, (Bankr. Case No. 36 S 12/09w).


A & K Hatzigmoser: Claims Registration Period Ends March 4
----------------------------------------------------------
Creditors owed money by LLC A. & K. Hatzigmoser (FN 79597f) have
until March 4, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Robert Klein
         Spiegelgasse 10
         1010 Wien
         Austria
         Tel: 01/513 99 39
         Fax: 01/513 99 39 30
         E-mail: klein@lawcenter.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on March 18, 2009, for the
examination of claims at:

         Land Court of Korneuburg (119)
         Room 204
         Korneuburg
         Austria

Headquartered in Bruck an der Leitha, Austria, the Debtor declared
bankruptcy on Jan. 19, 2009, (Bankr. Case No. 36 S 11/09y).


ALLITEM LLC: Claims Registration Period Ends March 4
----------------------------------------------------
Creditors owed money by LLC Allitem have until March 4, 2009, to
file written proofs of claim to the court-appointed estate
administrator:

         Katharina Twaroch-Nowak
         Gusshausstrasse 23
         1040 Wien
         Austria
         Tel: 505 88 31
         Fax: 505 94 64
         E-mail: kanzlei.twaroch@kainz-wexberg.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on March 18, 2009, for the
examination of claims at:

         Land Court of Vienna (007)
         Room 1606
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Jan. 16, 2009, (Bankr. Case No. 4 S 4/09d).


DALLINGAIR LLC: Claims Registration Period Ends March 2
-------------------------------------------------------
Creditors owed money by LLC DallingAir (FN 281480t) have until
March 2, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Christian Breit
         Parkgasse 11
         4910 Ried im Innkreis
         Austria
         Tel: 07752 / 876 760
         Fax: 07752 / 876 76 17
         E-mail: christian.breit@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:20 a.m. on March 11, 2009, for the
examination of claims at:

         Land Court of Ried im Innkreis
         Hall 101
         Ried im Innkreis
         Austria

Headquartered in Eberschwang, Austria, the Debtor declared
bankruptcy on Jan. 21, 2009, (Bankr. Case No. 17 S 4/09h).


LEOPOLDSTRASSE 17 LLC: Claims Registration Period Ends March 4
--------------------------------------------------------------
Creditors owed money by LLC Leopoldstrasse 17 (FN 244271y) have
until March 4, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Ferdinand Bruckner
         Schubertstrasse 10/3/5/9
         2100 Korneuburg
         Austria
         Tel: 02262/72 9 39
         Fax: 02262/729 39 15
         E-mail: bruckner@raedrb-drz.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on March 18, 2009, for the
examination of claims at:

         Land Court of Korneuburg (119)
         Room 204
         Korneuburg
         Austria

Headquartered in Stockerau, Austria, the Debtor declared
bankruptcy on Jan. 20, 2009, (Bankr. Case No. 36 S 13/09t).


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


AD IMCO: Claims Registration Period Ends March 1
------------------------------------------------
Creditors of AD imco GmbH have until March 1, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:25 a.m. on April 1, 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. Ruediger Werres
         Friesenplatz 17 a
         50672 Koeln
         Germany
         Tel: 0221/95 14 46 – 20
         Fax: +4922195144690

The District Court opened bankruptcy proceedings against the
company on Feb. 3, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         AD imco GmbH
         Marzellenstr. 23
         50668 Koeln
         Germany

         Attn: Dieter Hanke, Manager
         Rolshover St. 174
         51105 Koeln
         Germany


CONSULTING FUER ENERGIE: Claims Registration Period Ends March 19
-----------------------------------------------------------------
Creditors of Consulting fuer Energie and Umwelttechnik GmbH have
until March 19, 2009, to register their claims with court-
appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on April 30, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Dr. Christian Heintze
         Kesselsdorfer Strasse 14
         01159 Dresden
         Germany
         Website: www.brockdorff.net

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

The Debtor can be reached at:

         Consulting fuer Energie and
         Umwelttechnik GmbH
         Attn: Kerstin Gollas, Manager
         Hermann-Loens-Str. 13a
         01328 Dresden
         Germany



ECO-SOLAR GMBH: Claims Registration Period Ends March 25
--------------------------------------------------------
Creditors of ECO-Solar 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 11.00 a.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 Dessau-Rosslau
         Hall 121
         Willy-Lohmann-Str. 33
         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. Christian Heintze, LL.M.
         Ferdinand-von-Schill-Strasse 7
         06844 Dessau-Rosslau
         Germany
         Tel: 0340/8507697
         Fax: 0340/8507698
         E-mail: dessau@brockdorff.net

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

The Debtor can be reached at:

         ECO-Solar GmbH
         Augustenstrasse 42
         06366 Koethen
         Germany

         Attn:: Falk Herrmann, Manager
         Teichstrasse 1
         06773 Gossa OT
         Schmerz
         Germany


GENERAL MOTORS: Eyes US$1.2 Billion Cost Reductions in Europe
-------------------------------------------------------------
General Motors Corp. in a Feb. 17 release said it has accelerated
restructuring plans for its European operations.

According to GM, Europe is a highly competitive environment that
is unprofitable for many vehicle manufacturers, and has a
relatively costly restructuring environment.

GM said it has engaged its European labor partners to achieve
US$1.2 billion in cost reductions, which include several possible
closures or spinoffs of manufacturing facilities in high cost
locations.  In addition, GM is restructuring its sales
organization to become more brand focused and better optimize its
advertising.

GM disclosed it is also in discussions with the German government
for operating and balance sheet support.  GM noted a sustainable
strategy for its European operations may include support from
partnerships with the German government and/or other European
governments.  The company expects to resolve solvency issues for
its European operations prior to March 31, 2009.

                        Viability Plan

General Motors presented the United States Department of Treasury
with an updated plan that details the company's long term
viability.  The plan, which provides a comprehensive review of key
aspects of GM's restructuring, is the first of two status reports
required by the loan agreement signed by GM and the U.S. Treasury
on Dec. 31, 2008.

The plan submitted Tuesday, Feb. 17, addresses the key
restructuring targets required by the loan agreement, including a
number of the critical elements of the turnaround plan that was
submitted to the U.S. government on Dec. 2, 2008.  Among these
are: U.S. market competitiveness; fuel economy and emissions;
competitive labor cost; and restructuring of the company's
unsecured debt.  It also includes a timeline for repayment of the
Federal loans, and an analysis of the company's positive net
present value (NPV).

The plan also details the future reduction of GM's vehicle brands
and nameplates in the U.S., further consolidation in its workforce
and dealer network, accelerated capacity actions and enhanced
manufacturing competitiveness, while maintaining GM's strong
commitment to high-quality, fuel-efficient vehicles and advanced
propulsion technologies.

GM's viability plan actions result in a projected GM North America
(GMNA) earnings before interest and taxes (EBIT) breakeven point
of 11.5-12.0 million units in the U.S., compared to the 12.5-13.0
million unit range indicated in the Dec. 2, 2008 plan.  The
operating and balance sheet improvements outlined in GM's
viability plan are forecasted to result in a significant
enterprise value and positive net present value, positive adjusted
EBIT in 2010 and positive operating cash flow for its North
American operations in the same year.

Overall adjusted operating cash flows are expected to approach
breakeven levels in 2011, and improve to more than US$6 billion in
the 2012-2014 period, reflecting both the full effect of GM's
global restructuring initiatives and recovering industry volumes.

GM's need for government support was driven by the global
financial market crisis, dramatically weaker economy and the
resulting precipitous decline in vehicle demand.  These conditions
have impacted the entire auto industry, which in the U.S. is down
approximately 40 percent from its peak in 2005, to the lowest per
capita sales rate in 50 years.  Though the impact has been most
severe in the U.S. and Western Europe, automakers around the world
are reporting large losses, with many seeking government
assistance to weather the downturn.

Following the steep decline in U.S. industry sales in December
2008 and January 2009, GM responded by further lowering its
forecast for 2009 U.S. industry sales to 10.5 million units (57.5
million units globally) for viability planning purposes.  These
industry planning volumes are more conservative than those being
used by most other industry sources.

"The U.S. and global auto industries are facing times of
unprecedented challenge," said GM Chairman and CEO Rick Wagoner.
"These conditions dictate that we must take very tough actions to
accelerate GM's restructuring efforts.  We've made a lot of
progress since the plan we submitted on December 2, 2008, and we
have more to do before March 31.  The plan we delivered today
[Tuesday] to the U.S. Treasury is aggressive but achievable.  It
provides a clear pathway for GM that continues to support American
manufacturing and technology innovation, which are vital to the
future of our nation's economy."

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in
Miramar, Florida.

As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of US$110.425 billion, total
liabilities of US$170.3 billion, resulting in a stockholders'
deficit of US$59.9 billion.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on General Motors Corp. to 'CCC+'
from 'B-' and removed them from CreditWatch, where they had been
placed with negative implications on Oct. 9, 2008.  S&P said that
the outlook is negative.

Fitch Ratings, as reported in the Troubled Company Reporter on
Nov. 11, 2008, placed the Issuer Default Rating of General Motors
on Rating Watch Negative as a result of the company's rapidly
diminishing liquidity position.  Given the current liquidity level
of US$16.2 billion and the pace of negative cash flows, Fitch
expects that GM will require direct federal assistance over the
next quarter and the forbearance of trade creditors in order to
avoid default.  With virtually no further access to external
capital and little potential for material asset sales, cash
holdings are expected to shortly reach minimum required operating
levels.  Fitch placed these on Rating Watch Negative:

  -- Senior secured at 'B/RR1';
  -- Senior unsecured at 'CCC-/RR5'.

As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corp. and General
Motors of Canada Limited Under Review with Negative Implications.
The rating action reflects the structural deterioration of the
company's operations in North America brought on by high oil
prices and a slowing U.S. Economy.


HEAT MEZZANINE: Fitch Junks Ratings on EUR30.8 Mil. Notes
---------------------------------------------------------
Fitch Ratings has downgraded the ratings of H.E.A.T Mezzanine S.A.
Compartment 2's notes, due April 2014, and removed them from
Rating Watch Negative:

  -- EUR195,223,333 class A notes (ISIN: XS0251292883): downgraded
     to 'B' from 'AAA'; removed from RWN

  -- EUR30,800,000 class B notes (ISIN: XS02512933261): downgraded
     to 'CCC' from 'A+'; removed from RWN

Fitch has simultaneously withdrawn the rating on H.E.A.T Mezzanine
S.A. Compartment 2's class A notes.

The transaction is a cash securitization of subordinated loans to
German small and medium-sized enterprises.  The notes were placed
on RWN on July 10 2008 to reflect the potential for downgrades due
to the new Global Rating Criteria for Corporate CDOs.  The
downgrades announced are driven by a substantial deterioration in
the portfolio rather than the updated rating criteria.

The current performing notional asset value is less than the
notional value of the class A and B notes.  It is theoretically
possible that this shortfall will be healed before the notes
mature due to the application of excess spread which would
amortize the notes.  However, Fitch believes that further defaults
in the portfolio are likely and that there is a real possibility
that excess spread will not be sufficient to prevent the class B
notes defaulting.

The significant deterioration of the portfolio means scenario-
based analysis is the most suitable way of determining whether the
rated notes are in line with the agency's rating definitions.  The
scenario analysis tested how robust the rated notes were against
individual obligor defaults.  The class B noteholders can
withstand the default of five average loan exposures or the two
largest obligors.  The class A noteholders can withstand the
default of nine average loan exposures or the four largest
obligors.

The portfolio now contains 38 performing obligors.  Six obligors
have defaulted and three have repaid since closing.  The largest
performing exposure accounts for 5.6% of the outstanding portfolio
amount and the top three exposures for 16.6% of the portfolio.
The recovery rates on all the defaulted companies are expected to
be low and Fitch has assumed zero recovery rates given the
mezzanine nature of the obligations.


MEDIA & MARKETING: Claims Registration Period Ends March 10
-----------------------------------------------------------
Creditors of Media & Marketing GmbH have until March 10, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10.30 a.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 Nuernberg
         Meeting Hall 152/I
         Flaschenhofstr. 35
         Nuremberg
         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:

         Alexander Bergfeld
         Peuntgasse 3
         90402 Nuremberg
         Germany

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

The Debtor can be reached at:

         Media & Marketing GmbH
         Attn: Wolfgang Apel, Manager
         Harrichstrasse 5
         90408 Nuremberg
         Germany


QIMONDA AG: Works Council Believes a Buyer Will Be Found
--------------------------------------------------------
Frances Robinson at Bloomberg News reports that Qimonda AG
supervisory board member Lothar Armbrecht said Tuesday it is
confident that insolvency lawyer Michael Jaffe will find an
investor for the company.

The report relates according to Mr. Ambrecht, who sits in the
company's works council, Qimonda has a month to find an investor
as Mr. Jaffe needs to report to the court in Munich, where it
filed for protection from creditors on Jan. 23.  Mr. Ambrecht, as
cited by the report, said potential investors may wait until the
end of this time to come forward.  He noted the insolvency lawyer
is keen to find an investor for the company as a whole and not
just its over 20,000 patents, the report adds.

According to the report, Mr. Ambrecht expects a recovery in
dynamic random access memory prices from 2010.  The report recalls
Qimonda has been hit by a 54 percent fall in the price of a
benchmark 512 megabit DRAM memory-chip during the past year,
sending its share price down 97%.

                     Works Council Seeks Help

In a Feb. 18 report, Reuters disclosed Qimonda's works council
called on German Chancellor Agela Merkel to help rescue the ailing
company.

The report recounted Martin Welzel, head of the works council at
Qimonda's plant in Dresden, said in a letter on Wednesday
"Act now, dear Mrs Chancellor, so that technological dominance in
semiconductors in Germany and Europe will not be lost."

Mr. Welzel said Germany and Europe need to work quickly to find
and investor for the company, stressing time was limited, the
report stated.

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

According to Bloomberg News, Qimonda filed for insolvency after a
plan announced in December for a loan of EUR325 million
(US$418 million) from the German state of Saxony, Infineon
Technologies AG, Europe's second-largest maker of semiconductors,
and an unidentified Portuguese bank wasn't completed in time.

                          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.


QIMONDA AG: U.S. Unit Fails to Complete Severance Payments
----------------------------------------------------------
Emily C. Dooley at Richmond Times-Dispatch reports that Qimonda
North America, a unit of Germany's Qimonda AG, is unlikely to make
future severance payments to laid-off employees.

The report relates in an e-mail statement sent Wednesday, Qimonda
North America President and Chief Financial Officer Miriam
Martinez said the company was not able to meet payroll and make
severance payments while still saving its cash.  Ms. Martinez
confirmed in the e-mail that a "number of former employees" did
not get their Feb. 13 severance checks as expected, the report
discloses.

The report however notes it is unclear how many people have not
received their promised severance payments.

According to the report, the severance payments affect employees
who were told in October that Qimonda would idle its 200-
millimeter wafer manufacturing plant by March.  The report
discloses only employees of 200 mm plant were offered
severance.

The report states former employees will have to file a lawsuit in
state court to recover the money owed to them.  Citing David D.
Schein, president and general counsel for Claremont Management
Group Inc., a human-resources consulting firm in Midlothian, the
report says the lawsuit could prompt Qimonda North America and
Qimonda Richmond into filing for bankruptcy.

"If a business is not in bankruptcy, it has to pay whatever it's
agreed to pay," the report quoted David D. Schein, president and
general counsel for Claremont Management Group Inc., a human-
resources consulting firm in Midlothian, as saying.  "I'm going to
be very surprised if Qimonda does not file for bankruptcy in the
United Sates in the next few weeks."

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

According to Bloomberg News, Qimonda filed for insolvency after a
plan announced in December for a loan of EUR325 million
(US$418 million) from the German state of Saxony, Infineon
Technologies AG, Europe's second-largest maker of semiconductors,
and an unidentified Portuguese bank wasn't completed in time.

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.


* GERMANY: Gets EU Okay to Reduce Interest Rates to Boost Economy
-----------------------------------------------------------------
The European Commission has authorised under EC Treaty rules on
state aid a German scheme aimed at providing relief to companies
encountering financing difficulties as a result of the credit
squeeze in the current economic crisis.  The scheme allows
authorities at federal, regional and local level, including public
development banks, to grant aid in the form of reduced interest
rates on loans concluded by December 31, 2010.  The scheme meets
the conditions of the Commission's Temporary Framework for state
aid measures to support access to finance in the current financial
and economic crisis, because it is limited in time, respects the
relevant thresholds and applies only to companies that were not in
difficulty on July 1, 2008.  It is therefore compatible with
Article 87(3)(b) of the EC Treaty, which permits aid to remedy a
serious disturbance in the economy of a Member State.

Competition Commissioner Neelie Kroes said "The measure offers a
significant reduction in the cost of loans, which is an effective
way of encouraging business investment and economic recovery,
without unduly distorting competition."

The German authorities designed the scheme on the basis of the
rules laid down in the Commission's Temporary Framework on state
aid to the real economy during the crisis and in particular the
conditions for aid in the form of subsidized interest rates.  The
low rates will be available for loans contracted no later than
December 31, 2010, but only on interest payments up to December
31, 2012.  After that date firms will have to pay market rates.
The scheme does not apply to firms that were already in difficulty
on July 1, 2008 (i.e. before the credit crunch).

The scheme is the fourth German measure authorized under the
Temporary Framework: it follows a EUR15 billion German loan
program ("KFW-Sonderprogramm 2009") and a framework scheme
("Bundesregelung Kleinbeihilfen") allowing to provide aid of up to
EUR500,000 per undertaking to firms in need.


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


DRYSHIPS INC: Moving in Right Direction, Says Lender
----------------------------------------------------
DryShips Inc. is "moving in the right direction" after
renegotiating loan terms with Nordea Bank Finland Plc, the lender
said, according to Bloomberg News.

"With present developments I think they are doing fine,"
Ulf Andersson, head of shipping and offshore at the bank's London
branch, said by phone on February 17, according to Bloomberg.
Further renegotiations are unlikely if ship-rental prices stay at
present levels, he said.

DryShips (NASDAQ:DRYS) said in a February 9 Form 6-K filing with
the U.S. Securities and Exchange Commission that it 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).

DryShips disclosed the covenant violations on January 28.  "Our
loan agreements require that we maintain loan to value ratios
ranging from 120% to 200% of the total amount outstanding under
the relevant agreement.  The current low drybulk charter rates and
drybulk vessel values have affected our ability to comply with
these covenants.  In addition, if the value of our vessels
deteriorates significantly, we may have to record an impairment
adjustment to our financial statements, which would adversely
affect our financial results and further hinder our ability to
raise capital.  We have received notices from certain of our
lenders that we are not in compliance with our loan to value
covenants and we are currently in discussions with these and other
lenders for waivers and amendments of certain financial and other
covenants contained in our loan agreements."

                     About DryShips Inc.

DryShips Inc. -- http://www.dryships.com-- based in Greece, is an
owner and operator of drybulk carriers that operate worldwide.  As
of the day of this release, 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 R E L A N D
=============


ANGLO IRISH: EC Raises No Objections to Change of Ownership
-----------------------------------------------------------
The European Commission has raised no objections, under EC Treaty
State aid rules, to the change of ownership of Anglo Irish Bank.
The Irish authorities notified the taking into public ownership of
Anglo Irish Bank for reasons of legal certainty.  The Commission
considers that the act of nationalization as such involves no aid.
Moreover, no further aid is being granted to Anglo Irish Bank
beyond the guarantees already in place under the Irish guarantee
scheme, approved by the European Commission on October 13, 2008.
The Irish Government has committed to notify any possible state
aid measures that it may wish to grant in future.

In the context of the current global financial crisis and recent
disclosures regarding lapses to Anglo Irish Bank's corporate
governance practices, which together undermined the financial
position of the bank, the Irish Government decided to take Anglo
Irish Bank into public ownership on January 21, 2009.  For
purposes of legal certainty, the Irish authorities notified the
change of ownership of Anglo Irish Bank to the European
Commission.

The European Commission considers that the purchase of existing
shares and the takeover of assets, when these are not accompanied
by a capital injection, assumption of liabilities or other state
measures, do not favor the financial institution, inasmuch as they
amount to a mere change of ownership.  Therefore, they do not
constitute state aid.

Moreover, no further aid is being granted to Anglo Irish beyond
the guarantees already in place under the Irish guarantee scheme,
approved by the European Commission on October 13, 2008.  The
Commission takes note of the fact that the Irish Government has
committed to notify any possible State aid measures that it may
wish to grant in future.  It will examine any future possible aid
in accordance with the principle of neutrality as regards property
ownership (Article 295 of the EC Treaty).

                  About Anglo Irish Bank

Headquartered in Dublin, Ireland, Anglo Irish Bank Corporation plc
-- http://www.angloirishbank.ie/-- operates in three core areas:
Business Lending, Treasury and Wealth Management.

                          *     *     *

As reported in the TCR-Europe on Jan. 23, 2009, Standard & Poor's
Ratings Services said that it lowered its ratings on GBP300
million 6.25% Tier 1 preference shares issued by Anglo Irish Bank
Corp. Ltd. (previously a public limited company; A-/Watch Neg/A-1)
to 'D' from 'B'.  At the same time, the 'B' issue ratings on these
preference shares were removed from CreditWatch, where they had
been placed with negative implications on Sept. 30, 2008.

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

On Jan. 21, 2009, the TCR-Europe reported that Moody's Investors
Service had downgraded the long-term bank deposit rating and
senior unsecured debt rating of Anglo Irish Bank Corporation to A2
from A1, concluding the review on these ratings initiated in
October 2008.  The bank's Prime-1 short-term bank deposit and debt
ratings were affirmed.  Anglo Irish Bank's BFSR was downgraded to
E+ (mapping to a baseline credit assessment of B2), from C+
(baseline credit assessment equivalent of A2), on review for
possible downgrade.


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


CORDUSIO RMBS: Fitch Puts 'BB'-Rated Class E 2007 Notes on RWN
--------------------------------------------------------------
Fitch Ratings has placed two tranches of Cordusio RMBS
Securitization S.r.l. - Series 2007 (Cordusio 4) on Rating Watch
negative and affirmed the transaction's other tranches.  Cordusio
4 is backed by loans originated by UniCredit Banca SpA issued in
May 2007.  At the same time, the agency has taken various rating
actions with respect to Cordusio RMBS S.r.l, Cordusio RMBS 2
S.r.l, and Cordusio RMBS 3 - UBCasa 1 S.r.l.  Cordusio 1 and 2 are
backed by loans originated by UniCredit Banca SpA issued in May
2005 and July 2006 respectively. Cordusio 3 is backed by loans
originated by Banca per la Casa SpA issued in November 2006.  A
full rating breakdown follows:

Cordusio RMBS S.r.l (Cordusio 1):

  -- Class A2 (ISIN IT0003844948): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN IT0003844955): upgraded to 'AA+' from 'AA';
     Outlook Positive

  -- Class C (ISIN IT0003844963): affirmed at 'BBB'; Outlook
     Stable

  -- Class A1 (IT0003844930): paid in full in June 2007

Cordusio RMBS 2 S.r.l (Cordusio 2):

  -- Class A2 (ISIN IT0004087174): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN IT0004087182): affirmed at 'AA'; Outlook
     revised to Positive from Stable

  -- Class C (ISIN IT0004087190): affirmed at 'BBB+'; Outlook
     Stable

  -- Class A1 (ISIN IT0004087158): paid in full in March 2008

Cordusio RMBS 3 - UBCasa 1 S.r.l (Cordusio 3):

  -- Class A2 (ISIN IT0004144892): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN IT0004144900): affirmed at 'AA'; Outlook Stable

  -- Class C (ISIN IT0004144934): affirmed at 'A+'; Outlook Stable

  -- Class D (ISIN IT0004144959): affirmed at 'BBB+'; Outlook
     revised to Negative from Stable

  -- Class A1 (ISIN IT0004144884): paid in full in December 2008

Cordusio RMBS Securitization S.r.l. - Series 2007 (Cordusio 4):

  -- Class A2 (IT0004231236): affirmed at 'AAA'; Outlook Stable

  -- Class A3 (IT0004231244): affirmed at 'AAA'; Outlook Stable

  -- Class B (IT0004231285): affirmed at 'AA'; Outlook Stable

  -- Class C (IT0004231293): affirmed at 'A'; Outlook Stable

  -- Class D (IT0004231301) 'BBB' placed on Rating Watch Negative

  -- Class E (IT0004231319) 'BB' placed on Rating Watch Negative

  -- Class A1 (IT0004231210): paid in full in December 2008

The placing of two Cordusio 4 tranches on RWN and the revision of
the outlook of class D notes of Cordusio 3 to Negative from Stable
reflect higher-than-expected defaults in the transactions.
Defaulted loans are written off using available excess spread.
Because the ExS of Cordusio 4 is declining, the ability of the
transaction to clear period defaults has reduced, resulting in a
reserve fund draw at the latest payment date.  The RF declined to
EUR2.6 million from EUR6.3 million.  The transaction had a lock-
out period that ended in December 2008; thereafter the ExS should
increase as the carry cost created by the retained amounts
disappears.  Fitch expects to resolve the RWN following the next
two IPDs, when further performance data will provide more clarity
to the evolution of the ExS and defaults.  Further reserve fund
draws, driven by continued defaults are likely to result in
negative rating action.

The RF of Cordusio 3 is at its required level, but the existing
high level of defaults and increasing arrears are creating
pressure on the ExS, increasing the probabilities of the RF to
draw in the next quarters.

Cordusio 1 and 2's arrears and defaults are within expectations
and their current loan to value has decreased standing of 38.95%
and 45.51%, respectively.  Furthermore, as they are very seasoned
deals, the sequential pay-down of the notes caused their credit
enhancement to grow, triggering the upgrade of the class B of
Cordusio 1 and the Outlook revision to Positive from Stable of the
class B of Cordusio 2

The lock-out period that existed in all four deals is a common
feature of Italian RMBS transactions.  Withholding tax is applied
to the proceeds of notes that are redeemed during the initial 18-
month period.  The lock-out period has ended in all transactions:
Cordusio 1 in December 2006, Cordusio 2 in March 2008, Cordusio 3
in June 2008, and Cordusio 4 in December 2008.

Defaulted loans are classified as loans being in arrears for at
least 360 days or "in sofferenza" by the servicer.  At the same
time of seasoning, Cordusio 1 and 2 have a lower level of defaults
than Cordusio 3 and 4.  The latest available investor report, the
defaulted loans as a percentage of current collateral are 0.68%,
0.43%, 0.99% and 0.40% for Cordusio 1, 2, 3 and 4, respectively.
Fitch has employed its credit cover multiple methodology in
reviewing the deals to assess the level of credit support
available to each class of notes.

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.


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


ATYRAU-SHELF LLP: Creditors Must File Claims by March 20
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau has
declared LLP Atyrau-Shelf insolvent.

Creditors have until March 20, 2009, to submit written proofs of
claim to:

          Abai St. 10a
          Atyrau
          Atyrau
          Kazakhstan

The court is located at:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         Satpaev St. 3
         Atyrau
         Kazakhstan


ELECTRO IMPEX: Creditors Must File Claims by March 27
-----------------------------------------------------
LLP Electro Impex Ltd. has declared insolvency.  Creditors have
until March 27, 2009, to submit written proofs of claim to:

          Aiteke bi St. 88-13
          Almaty
          Kazakhstan


JEL DOR: Creditors Must File Claims by March 27
-----------------------------------------------
LLP Jel Dor Stroy-Shar has declared insolvency.  Creditors have
until March 27, 2009, to submit written proofs of claim to:

         Pridepovskaya St. 5
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan


PMK-49 LLP: Creditors Must File Claims by March 20
--------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP PMK-49 insolvent.

Creditors have until March 20, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Tynybaev St. 42
         Shymkent
         South Kazakhstan
         Kazakhstan


SAK-2008 LLP: Creditors Must File Claims by March 20
----------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP SAK-2008 insolvent.

Creditors have until March 20, 2009, to submit written proofs of
claim to:

          Ilyaev St. 24
          Shymkent
          South Kazakhstan
          Kazakhstan

The court is located at:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Tynybaev St. 42
         Shymkent
         South Kazakhstan
         Kazakhstan


STROY LES LLP: Creditors Must File Claims by March 27
-----------------------------------------------------
LLP STROY LES has declared insolvency.  Creditors have until
March 27, 2009, to submit written proofs of claim to:

          Kievskaya St. 26-54
          110000 Kostanai
          Kostanai
          Kazakhstan


STROYKA-2006 LLP: Creditors Must File Claims by March 27
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Stroyka-2006 insolvent.

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

         The Specialized Inter-Regional
         Economic Court of Karaganda
         Alalykin St. 9
         Karaganda
         Kazakhstan


SUN SYSTEM LLP: Creditors Must File Claims by March 20
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Sun System insolvent.

Creditors have until March 20, 2009, to submit written proofs of
claim to:

         Room 319
         Tole Bi St. 295
         Almaty
         Kazakhstan

The court is located at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Baizakov St. 273b
         Almaty
         Kazakhstan


TRANS SERVICE SRK: Creditors Must File Claims by March 27
---------------------------------------------------------
LLP Trans Service SRK has declared insolvency.  Creditors have
until March 27, 2009, to submit written proofs of claim to:

         Sovetskaya St. 119/2
         151000 Tayinsha
         Tayinshynsky district
         North Kazakhstan
         Kazakhstan


TRANS-SERVICE TGO: Creditors Must File Claims by March 27
---------------------------------------------------------
LLP Trans-Service TGO Ltd. has declared insolvency.  Creditors
have until March 27, 2009, to submit written proofs of claim to:

         Aksham St.
         Sholakkorgan
         Suzaksky district
         South Kazakhstan
         Kazakhstan


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


ENERGO STROY: Creditors Must File Claims by March 13
----------------------------------------------------
LLC Construction Company Energo Stroy Service has declared
insolvency.  Creditors have until March 13, 2009, to submit
written proofs of claims to:

         LLC Construction Company Energo Stroy Service
         Abdrahmanov St. 281
         Bishkek
         Kyrgyzstan


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


BITE LIETUVA: S&P Cuts Corporate Credit Rating to 'CC'
------------------------------------------------------
Standard & Poor's Ratings Services said it lowered to 'CC' from
'CCC-' its long-term corporate credit rating on Lithuania-
headquartered mobile telecommunications operator UAB Bite Lietuva
and its 100% owner Bité Finance International B.V.  The outlook is
negative.

At the same time, S&P lowered the rating on Bite Finance
International B.V.'s EUR190 million senior secured notes to 'CC'
from 'CCC-' and affirmed the 'C' rating on the EUR110 million
subordinated notes.

The downgrade reflects the EUR38.5 million below par notes
exchange offering by the company for the EUR110 million notes.
The offer will be financed through the provision of additional
equity from the group's current shareholders led by Mid Europa
Partners.

"Standard & Poor's views the exchange offer as distressed because
the exchange value offered is well below par (35 euro cents on the
euro) and the noteholders do not have a realistic alternative to
be repaid in full," said Standard & Poor's credit analyst Helen
O'Toole.

"We will lower the corporate credit rating on Bite to 'SD'
(selective default) and the affected issue rating to 'D' upon
completion of the exchange offer.  At the same time, the rating on
the senior secured notes is likely to remain at 'CC', assuming
adequate continuing servicing," said Ms. O'Toole.

"If the exchange offer is successful, Standard & Poor's believes
Bité is likely to initially extinguish a maximum of EUR50 million
of its subordinated debt," said Ms. O'Toole.  According to the
documentation of Bite's senior revolving credit facility, if more
than EUR50 million of either the senior secured or subordinated
debt is repaid, then the EUR30 million RCF should be repaid pro
rata.  S&P understands that Bite will likely seek a waiver in the
intercreditor agreement in order to extinguish the full
EUR110 million of subordinated debt, without triggering repayment
of the RCF, but this has not been requested or granted to date.

In S&P's view, the future reduction in Bite's debt would lead to
an improvement in its leverage and would ease pressure on its
consolidated leverage covenant relating to the group's RCF.  On
the assumption that EUR50 million of subordinated debt will be
extinguished, if the transaction had occurred at Dec. 31, 2008, it
would have resulted in reported debt to EBITDA of about 7.7x.  On
the same basis, if the EUR110 million notes are fully
extinguished, the reported debt to EBITDA ratio for the same
period would improve to about 6.0x.

The exchange offer will lead to more operational flexibility as
the group's annual interest cost will decrease by approximately
EUR10 million annually or in the remaining months of 2009.  In the
mean time, in S&P's opinion, Bite is likely to continue to meet
its interest payments on its subordinated and senior secured debt.

The negative outlook reflects the fact that Bite's rating will be
lowered to 'SD' on completion of the exchange offer.

Following completion of the exchange offer and extinction of an
initial EUR50 million of the subordinated notes, based on the
current information, it is likely that the rating will be upgraded
to the 'CCC' category.  Any upgrade, however, will follow a review
of the group's revised capital structure, including the benefits
realized if the offering is successful, the group's liquidity
position, and actual and projected operating performance.


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


MILLICOM INTERNATIONAL: S&P Withdraws 'BB' Corporate Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it has withdrawn its
'BB' long-term corporate credit rating on Luxembourg-based mobile
communications group Millicom International Cellular S.A.  The
'BB' senior unsecured debt rating and '3' recovery rating on
Millicom's bonds were also withdrawn.

At Dec. 31, 2008, Millicom had about US$453 million of outstanding
rated bonds, which mature on Dec. 1, 2013.

The rating withdrawal, which has been agreed with Millicom's
management, results from Millicom's refusal to provide relevant
information to Standard & Poor's regarding Millicom's local debt
indentures (estimated to be US$1.7 billion at year-end 2008
compared with US$453 million of bonds located at the holding
company level) despite repeated requests.  S&P believes that such
information is material for the credit analysis of Millicom and
its bonds.

The importance of obtaining such information has increased as
Millicom's gross debt located at operating subsidiary level had
increased to about US$1.7 billion at year-end 2008, versus about
US$1.2 billion at the end of 2007, in line with Millicom's
strategy of raising funding at the local level.  In addition,
Millicom's liquidity has somewhat weakened over the last quarter,
mainly as the result of the US$510 million Amnet acquisition in
the second half of 2008.  Also, while Millicom's operating
performance continued to be solid in the fourth quarter of 2008,
it is S&P's view that the negative impact on its businesses and
liquidity of the spreading and deepening recession in Western
countries may increase over the next few quarters.  S&P understand
that an unremedied covenant breach or payment default could
trigger the repayment of a substantial part of Millicom's US$2.2
billion of debt, including high-yield bonds.  Without adequate and
detailed information, S&P is not in a position to maintain
Millicom's ratings.


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


PANGAEA ABS: Fitch Junks Ratings on Three Classes of 2007-1 Notes
-----------------------------------------------------------------
Fitch Ratings has downgraded seven classes of Pangaea ABS 2007-1
B.V. notes, removed the notes from Rating Watch Negative, and
assigned a Stable Outlook to three of the notes as detailed below.

  -- EUR216,116,899 class A floating-rate notes (ISIN
     XS0287257280) downgraded to 'BBB' from 'AAA'; removed from
     RWN; assigned a Stable Outlook

  -- EUR16 million class B floating-rate notes (ISIN XS0287266356)
     downgraded to 'BBB-' (BBB minus) from 'AAA'; removed from
     RWN; assigned a Stable Outlook

  -- EUR18 million class C floating-rate notes (ISIN XS0287267677)
     downgraded to 'BB' from 'AA'; removed from RWN; assigned a
     Stable Outlook

  -- EUR22 million class D floating-rate notes (ISIN XS0287268642)
     downgraded to 'CCC' from 'A'; removed from RWN

  -- EUR16 million class E floating-rate notes (ISIN XS0287271604)
     downgraded to 'CC' from 'BBB-' (BBB minus); removed from RWN

  -- EUR5 million class F floating-rate notes (ISIN XS0287272164)
     downgraded to 'C' from 'BB-' (BB minus); removed from RWN

  -- EUR4,407,587 class S1 combination notes (ISIN XS0289328394)
     downgraded to 'CCC' from 'A'; removed from RWN

The downgrades reflect Fitch's view on the credit risk of the
rated tranches following the release of the agency's revised
Structured Finance CDO rating criteria on December 16, 2008, as
well as credit deterioration to the collateral pool that has
occurred since the review in October 2008.

The application of the new SF CDO rating criteria incorporates
Fitch's view on industry and vintage concentration risks and the
propensity for low recoveries upon default, particularly for thin
tranches.  Although the application of the new criteria has
significantly impacted the transaction's ratings, credit
deterioration in the portfolio and the default of five portfolio
assets linked to Lehman Brothers in September 2008 has
particularly affected the junior tranches.

As per the trustee report dated December 15, 2008, the portfolio
contains 96 performing assets from 86 obligors, with the largest
exposure accounting for approximately 2.5% of the outstanding
portfolio amount, and the three largest obligors accounting for
7.4% of the outstanding portfolio amount.  The largest single
industry is CMBS with 37% of the portfolio volume.  The two
largest vintages are 2006 and 2007, making up 50% and 46% of the
portfolio respectively, while the three largest country
concentrations are the UK, Germany and the Netherlands
representing 22%, 20% and 20% of the portfolio respectively.

In conducting its analysis, Fitch makes a three notch downward
adjustment for any names on RWN for default analysis in its
Portfolio Credit Model.  On an adjusted basis approximately 26% of
the assets are treated as sub-investment grade.  The weighted
average portfolio quality is 'BBB-' (BBB minus) and 3% of the
portfolio is on RWN.  Four assets making up 4% of the portfolio
are currently rated 'CCC+' and below on an unadjusted basis.  Two
of these assets belong to one transaction which comprises hedge
fund investments.  Fitch expects these positions to default with
no recovery.  The other two assets are UK RMBS transactions, each
with counterparty exposure to Lehman Brothers.  For all four
assets Fitch deems a default likely and recoveries in case of
default as limited, reflected in the Distressed Recovery ratings
of 'DR6' for the US SF CDO and 'DR5' and 'DR2' for the UK RMBS
tranches respectively.

While the downgrade of the senior notes is driven by Fitch's
revised criteria, the downgrade of the junior notes is linked to
the transaction's actual performance.  As a result of the default
of five portfolio assets in September 2008, the Class D, E and F
over-collateralization tests are failing and interest will
continue to be diverted away from the junior notes to amortize the
class A notes.  Currently, Class E and F as well as the
combination notes are deferring interest.  In Fitch's view, these
two junior notes are likely to be cut off from interest flows for
some time, making the likelihood of full recovery increasingly
remote.

Pangaea is a securitization of mainly European structured finance
securities with the total note issuance of EUR305.3 million
invested in a EUR298.6 million portfolio.  The portfolio is
actively managed by Investec Principal Finance.


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


BELMYASO OAO: To Be Liquidated; Shareholders' Meeting Set March 24
------------------------------------------------------------------
The board of directors of ??? "Belmyaso" will hold an
extraordinary shareholders' meeting on March 24 to discuss the
proposed voluntary liquidation of the Russian meat company,
kommersant.ru reports.

The report discloses Belmyaso's net loss in the first half of 2008
soared to RUR44.5 million from RUR20.3 million for the same period
in 2008, while the company's revenue for January–June 2007 dropped
to RUR196.7 million from RUR388.6 million for the same period last
year.


BELOYARSKIY CONSTRUCTION: Creditors Must File Claims by April 6
---------------------------------------------------------------
Creditors of LLC Beloyarskiy Construction Structures Plant (TIN
6609010260, PSRN 1036600430261) have until April 6, 2009, to
submit proofs of claims to:

         V. Rud'ko
         Insolvency Manager
         Post User Box 518
         620000 yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A60–12763/2008-S11.

The Debtor can be reached at:

         LLC Beloyarskiy Construction Structures Plant
         Post User Box 151
         Zarechnyy
         624250 Sverdlovskaya
         Russia


BORETSKIY LES-PROM-KHOZ: Claims Deadline on March 15
----------------------------------------------------
Creditors of LLC Boretskiy-Les-Prom-Khoz (TIN 910003818, PSRN
102290127018) (Forestry) have until March 15, 2009, to submit
proofs of claims to:

         N. Stepanov
         Temporary Insolvency Manager
         Office 254
         Building 1
         Gaydara St. 4
         163000 Arkhangelsk
         Russia

The Arbitration Court of Arkhangelskaya will convene at
2:50 p.m. on Jul.3, 2009, to hear bankruptcy supervision
procedure.  The case is docketed under Case No. A05–14888/2008.

The Debtor can be reached at:

         LLC Boretskiy-Les-Prom-Khoz
         Office 49
         Building 1
         Dobrolyubova St. 1
         163012 Arkhangelsk
         Russia


CONSTRUCTION MATERIALS: Karelia Bankruptcy Hearing Set May 13
-------------------------------------------------------------
The Arbitration Court of Karelia will convene at 10:40 a.m. on
May 13, 2009, to hear bankruptcy supervision procedure on LLC
Construction Materials Production.  The case is docketed under
Case No. A26–7914/2008.

The Temporary Insolvency Manager is:

         I. Belov
         Post User Box 84
         Petrozavodsk
         185005 Karelia
         Russia

The Debtor can be reached at:

         LLC Construction Materials Production
         Vetlechebnaya St. 1
         Kondopoga
         186200 Karelia
         Russia


FIRE-PROOF MATERIALS: Creditors Must File Claims by March 15
------------------------------------------------------------
Creditors of LLC Fire-Proof Materials Plant have until March 15,
2009, to submit proofs of claims to:

         S. Khizhnenko
         Temporary Insolvency Manager
         Sovetskaya St. 77
         Partizanskoe
         Partizanskiy
         663540 Krasnoyarskiy
         Russia

The Arbitration Court of Krasnoyarskiy will convene at 2:00 p.m.
on April 23, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. AAA-17203/2008.

The Debtor can be reached at:

         LLC Fire-Proof Materials Plant
         Gorkogo St. 33
         Uyar
         663520 Krasnoyarskiy
         Russia


ROST-STROY-INVEST LLC: Bankruptcy Hearing Set June 9
----------------------------------------------------
The Arbitration Court of Vladimirskaya will convene at 2:30 a.m.
on June 9, 2009, to hear bankruptcy supervision procedure on LLC
Rost-Stroy-Invest (TIN 3327324658, PSRN 1033301802038).  The case
is docketed under Case No. A11–12448/2008-A1–263A/33B.

The Temporary Insolvency Manager is:

         N. Mikulina
         Post User Box 105
         600017 Vladimir
         Russia

The Debtor can be reached at:

         LLC Rost-Stroy-Invest
         Office 481
         Studenaya Gora St. 36
         600001 Vladimir
         Russia


TEKHNO-STROM-DOR-STROY LLC: Bankruptcy Hearing Set July 30
----------------------------------------------------------
The Arbitration Court of Saint-Petersburg will convene at
11:00 a.m. on July 30, 2009, to hear bankruptcy proceedings on LLC
Tekhno-Strom-Dor-Stroy (TIN 7825447064, PSRN 1037800025834)
(Construction).  The case is docketed under Case No. A56–
27548/2008.

The Insolvency Manager is:

         A. Boravchenkov
         Post User Box 131
         191119 Saint-Petersburg
         Russia

The Debtor can be reached at:

         LLC Tekhno-Strom-Dor-Story
         Ivana Chernykh St. 20
         198095 Saint-Petersburg
         Russia


TEKHNOLOGII LESA: Creditors Must File Claims by March 15
--------------------------------------------------------
Creditors of LLC Tekhnologii Lesa (TIN 6714026990) (Woodwork and
Timber Industry) have until March 15, 2009, to submit proofs of
claims to:

         L. Belokon'
         Insolvency Manager
         Sovetskaya St. 4
         440026 Penza
         Russia

The Arbitration Court of Smolenskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A62–2658/2008.

The Court is located at:

         The Arbitration Court of Smolenskaya
         Gagarina St. 46
         214001 Smolensk
         Russia

The Debtor can be reached at:

         LLC Tekhnologii Lesa
         3-ya Pesochnaya St. 5
         Glushchenki
         Smolenskiy
         Smolenskaya
         Russia


TRUBCHEVSKIY LES-KHOZ SUE: April 14 Set as Claims Filing Deadline
-----------------------------------------------------------------
Creditors of SUE Trubchevskiy Les-Khoz (TIN 3252005411)
(Forestry) have until April 14, 2009, to submit proofs of claims
to:

         V. Ivanov
         Insolvency Manager
         Zvenigorodskoe Shosse 3
         123022 Moscow
         Russia
         Tel: (495) 228–60–28.

The Arbitration Court of Bryanskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A09–4754/2008–32.

The Debtor can be reached at:

         SUE Trubchevskiy Les-Khoz
         Lenina St. 58
         Trubchevsk
         242220 Bryanskaya
         Russia


VOKHTOGA-LES LLC: Creditors Must File Claims by March 15
--------------------------------------------------------
Creditors of LLC Vokhtoga-Les (Lumbering) have until March 15,
2009, to submit proofs of claims to:

         A. Kapitonova
         Insolvency Manager
         Molodezhnaya St. 1a
         Nepotyagovo
         Vologodskiy
         160510 Vologodskaya
         Russia

The Arbitration Court of Vologodskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. Al3–10354/2008.

The Debtor can be reached at:

         LLC Vokhtoga-Les
         Kolkhoznaya St. 30
         Vokhtoga
         162040 Vologodskaya
         Russia


VTOR-CHER-MET CJSC: Creditors Must File Claims by March 15
----------------------------------------------------------
Creditors of CJSC Vtor-Cher-Met (TIN 3448023510; PSRN
1023404364015) (Ferrous and Non-Ferrous Metal Scrap) have until
March 15, 2009, to submit proofs of claims to:

         I. Zaytsev
         Insolvency Manager
         Post User Box 79
         119607 Moscow
         Russia

The Arbitration Court of Volgogradskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A12–19234/08-s55.

The Debtor can be reached at:

         CJSC Vtor-Cher-Met
         Shillera St. 46
         Krasnoarmeyskiy
         400022 Volgograd
         Russia


* RUSSIA: January Unemployment Rate Highest in 4 Years
------------------------------------------------------
Alex Nicholson at Bloomberg News reports Russia's unemployment
rate rose to 8.1 percent in January, the highest since March 2005.

The total number of unemployed rose by 300,000 in the month to 6.1
million people, or 8.1 percent of the working population, the news
agency says citing Moscow-based Federal Statistics Service in an
e-mailed statement.

According to the report, Russia's industrial output fell 16
percent in January as capital investment dropped 15.5 percent, the
biggest decline since December 1998.

The average monthly wage fell an annual 9.1 percent in January to
15,200 rubles (US$418.42), the biggest drop since August 1999 when
they fell 30.7 percent, the report discloses.  Disposable income
fell 6.7 percent, the statistics service said as cited by
Bloomberg News.

Rising unemployment is the "biggest problem" and the "biggest
pain" for Russia as it goes through its worst economic crisis in a
decade, Bloomberg News cited
President Dmitry Medvedev as saying in an interview on state
television on Feb. 15.

The report relates the Russian government, which on Feb. 18
forecast a 2009 economic contraction of 2.2 percent, will spend
RUR44 billion (US$1.3 billion) to create new jobs and "significant
funds" will be devoted to retraining programs.


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


AYT COLATERALES: Fitch Assigns 'B' Rating on EUR10.5 Mil. Notes
---------------------------------------------------------------
Fitch Ratings has assigned AyT Colaterales Global Empresas FTA's
Series AyT Colaterales Global Empresas Caja Granada I notes,
totaling EUR175 million, due in September 2037, final ratings:

  -- EUR135.6 million class A: 'AAA'; Outlook Stable
  -- EUR18.4 million class B: 'A'; Outlook Stable
  -- EUR10.5 million class C: 'BBB-' (BBB minus); Outlook Stable
  -- EUR10.5 million class D: 'B'; Outlook Stable

The ratings address the payment of interest on the notes according
to the terms and conditions of the documentation, subject to a
deferral trigger for the class B, C, and D notes, as well as the
repayment of principal by legal maturity.  According to the AyT
Colaterales Empresas transaction documents, the legal final
maturity date of the program, applicable to all the series of
notes issued and to be issued in the future, is defined as three
years after the longest scheduled maturity date of the program.

The transaction is a cash flow securitization of a EUR175 million
static pool of secured and unsecured loans granted by Caja General
de Ahorros de Granada (Caja Granada, rated 'A-'(A
minus)/Negative/'F2'), a Spanish savings bank, to small- and
medium-sized Spanish enterprises.  The pool consists of 1,289
loans to SME companies with a strong concentration in the province
of Granada (c. 59% of collateral value), in the Andalucia region
(totaling c. 93% of collateral value), the bank's home region.

AyT Colaterales Caja Granada I is the first standalone SME
securitization transaction to be brought to the market by Caja
Granada, and it is the fourth series issued by AyT Colaterales
Empresas.  AyT Colaterales Empresas is a securitization fund
incorporated in December 2007 to issue a number of independent
series of notes collateralized by SME loans by up to 37 different
Spanish financial institutions.  The maximum overall size of AyT
Colaterales Empresas is limited to EUR3 billion.  The issuer is
legally represented and managed by Ahorro y Titulizacion, S.A.,
S.G.F.T. (the Sociedad Gestora), a special-purpose management
company with limited liability incorporated under the laws of
Spain.

The ratings on the notes are based on the quality of the
collateral, the underwriting and servicing of the loans, available
credit enhancement, the characteristics and integrity of the
transaction's legal and financial structure and the Sociedad
Gestora's administrative capabilities.  The ratings incorporate
Fitch's most up-to-date view of Spanish SME credit risk (see the
July 29, 2007 commentary).

As announced in a separate November 6, 2007 commentary, entitled
"Fitch Clarifies Position on New Issue CDO Ratings", the agency is
reviewing its rating methodology and model assumptions for all new
issue SME CDO ratings.  Fitch is reassessing its analyitical
views, which could impact existing ratings, including the ratings
assigned to the securities in this announcement.


TDA PASTOR: S&P Cuts Rating on Class C Notes to 'B'
---------------------------------------------------
Standard & Poor's Ratings Services has taken various rating
actions on the notes issued by TDA Pastor Consumo 1, FTA.
Specifically, S&P lowered and kept on CreditWatch negative the
ratings on the class A and B notes, and lowered and placed on
CreditWatch negative the ratings on the class C notes.

The rating actions are the result of deteriorating collateral
performance leading to:

Increased delinquency levels putting pressure on the transaction's
cash flows as a result of the swap mechanism in the transaction;
andDefault levels over the medium term being higher than
previously anticipated.

As of the December 2008 interest payment date, the volume of loans
in arrears for less than 90 days past due accounted for 23.77% of
the pool balance.  Under the total return swap mechanism in the
transaction, the issuer pays all interest received from any
collections during the quarter (potentially including any
collections from loans in arrears) and receives interest
equivalent to the weighted-average coupon on the notes, plus 2.5%,
calculated on a notional equal to the performing balance of the
assets.  Consequently, the high level of technical arrears is now
resulting in a material mismatch in payments paid from and
received by the issuer.

S&P notes that loans in arrears for more than 90 days have grown
substantially since closing, and currently represent 3.25% of the
pool balance.  Early termination of the revolving period occurred
on the July IPD when this ratio rose above 2.25%.  Loans are
defined as defaulted after 18 months; given the limited seasoning
of this transaction, which closed in April 2007, the cumulative
balance currently only represents 25 bps of the initial balance.
However, S&P expects defaulted loans to increase significantly
over the near term as delinquent loans roll into default.

S&P's analysis took into the account the increase in credit
enhancement available to each class of notes due to pool
amortization.  However, in S&P's view, the increase in credit
enhancement was insufficient to maintain the original ratings that
S&P assigned.  The CreditWatch negative placements are pending
further observation of the volatility of short-term arrears over
the next quarter, and roll-rates of longer-term arrears into
defaults.  Classes A and B had previously reflected S&P's concerns
relating to Banco Pastor participating as swap counterparty in
this transaction (see article below).  However, S&P's analysis now
assumes that Banco Pastor will remain in the transaction or that
the swap will be replaced on similar terms.

                            Ratings List

       TDA Pastor Consumo 1, Fondo de Titulizacion de Activos
                 EUR300 Million Floating-Rate Notes

         Ratings Lowered and Kept on Creditwatch Negative

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

       Ratings Lowered And Placed on Creditwatch Negative

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


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


ABC NAILSTORE: Creditors Must File Proofs of Claim by Feb. 26
-------------------------------------------------------------
Creditors owed money by LLC ABC Nailstore Switzerland are
requested to file their proofs of claim by Feb. 26, 2009, to:

         Georg Ledermann
         Liquidator
         Langfeldweg 3
         2504 Biel
         Switzerland

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


EXELEXI JSC: Deadline to File Proofs of Claim Set Feb. 26
---------------------------------------------------------
Creditors owed money by JSC Exelexi are requested to file their
proofs of claim by Feb. 26, 2009, to:

         David Kanzig
         Liquidator
         Advocacy Thouvenin Rechtsanwalte
         Klausstrasse 33
         8034 Zurich
         Switzerland

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


FACTUM JSC: Creditors Have Until Feb. 26 to File Claims
-------------------------------------------------------
Creditors owed money by JSC Factum are requested to file their
proofs of claim by Feb. 26, 2009, to:

         Junkholzweg 6
         2545 Selzach
         Switzerland

The company is currently undergoing liquidation in Selzach.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 8, 2009.


HEGEMO JSC: Proofs of Claim Filing Deadline is Feb. 26
------------------------------------------------------
Creditors owed money by JSC Hegemo are requested to file their
proofs of claim by Feb. 26, 2009, to:

         Barbara Schlegel
         Wangserstrasse 46
         8887 Mels
         Switzerland

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


IDEEART LLC: Creditors' Proofs of Claim Due by Feb. 26
------------------------------------------------------
Creditors owed money by LLC IdeeArt are requested to file their
proofs of claim by Feb. 26, 2009, to:

         Gert Harries
         Liquidator
         Beckenmoosstrasse 28
         5330 Bad Zurzach
         Switzerland

The company is currently undergoing liquidation in Bad Zurzach AG.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 24, 2008.


MS LOUNGE: Feb. 26 Set as Deadline to File Claims
-------------------------------------------------
Creditors owed money by LLC MS Lounge are requested to file their
proofs of claim by Feb. 26, 2009, to:

         Martin Krieg
         Liquidator
         In der Hoh 32
         8604 Volketswil
         Switzerland

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


T.N.A. MUNAJ: Creditors Must File Proofs of Claim by Feb. 26
------------------------------------------------------------
Creditors owed money by JSC T.N.A. Munaj are requested to file
their proofs of claim by Feb. 26, 2009, to:

         Walter Suter
         Liquidator
         Sinserstrasse 116
         6330 Cham
         Switzerland

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


UBS AG: U.S. Wants Firm to Disclose Swiss Bank Account Records
--------------------------------------------------------------
The U.S. government has filed a lawsuit in Miami against Swiss
bank UBS AG, the Justice Department said yesterday in a statement.
The lawsuit asks the court to order the international bank to
disclose to the Internal Revenue Service (IRS) the identities of
the bank's U.S. customers with secret Swiss accounts.  According
to the lawsuit, as many as 52,000 U.S. customers hid their UBS
accounts from the government in violation of the tax laws.

The government alleges in the lawsuit that of those 52,000 secret
accounts, about 20,000 contained securities and about 32,000
contained cash.  According to a UBS document filed with the
lawsuit, as of the mid-2000s, those secret accounts held about
US$14.8 billion in assets.  Court documents allege that U.S.
citizens failed to report and pay U.S. income taxes on income
earned in those secret accounts.

According to the lawsuit, Swiss-based bankers actively marketed
UBS's services to wealthy U.S. customers within the United States.
UBS documents filed with the lawsuit show that UBS bankers came to
the United States to meet with U.S. clients nearly 4,000 times per
year, in violation of U.S. law.  According to court documents, the
government alleges that UBS trained its bankers to avoid detection
by U.S. authorities.  Court documents further assert that many
U.S. contacts occurred through UBS-sponsored sporting and cultural
events, designed to appeal to extremely wealthy Americans.

The lawsuit alleges that UBS engaged in cross-border securities
transactions in the United States that it knew violated U.S.
security laws.  The lawsuit also alleges that UBS helped hundreds
of U.S. taxpayers set up dummy offshore companies, to make it
easier for those taxpayers to avoid their reporting obligations
under U.S. tax laws.

"At a time when millions of Americans are losing their jobs, their
homes and their health care, it is appalling that more than 50,000
of the wealthiest among us have actively sought to evade their
civic and legal duty to pay taxes," said John A. DiCicco, Acting
Assistant Attorney General for the Justice Department's Tax
Division.  "It is time for those who are trying to hide from the
IRS to rethink their actions.  The Department of Justice is
committed to do all that it can to aid the IRS in locating those
who would seek to hide behind secret accounts and in holding them
accountable under the federal tax laws."

"We are committed to moving forward with the summons enforcement
process.  This action sends a strong signal to taxpayers hiding
their money offshore.  The IRS will be aggressive in pursuing
people who shirk their obligations under the tax law.  These
people owe it to their fellow citizens to pay their fair share of
taxes," said IRS Commissioner Doug Shulman.  "As Commissioner, I
am committed to bringing to bear the full arsenal of IRS resources
to pursue egregious offshore tax abuse.  International tax issues
are a top priority, and we will continue to aggressively pursue
people hiding assets offshore.  For people who are hiding money
offshore, this serves as a wake-up call that they need to get
right with their government.  Taxpayers should talk to a tax
professional and come forward under our voluntary disclosure
process.  Having the IRS find you could mean a much heavier price
than coming forward on your own."

                 UBS Says Requested Information
            Protected by Swiss Financial Privacy Laws

UBS "expected" the civil action and said it has substantial
defenses to the enforcement of the John Doe summons and intends to
vigorously contest the enforcement of the summons in the civil
proceeding, as is permitted under the terms of the Deferred
Prosecution Agreement entered into on February 18.

"Objections to the enforcement of the IRS summons are based upon
U.S. law, the terms of UBS's Qualified Intermediary Agreement with
the IRS, Swiss financial privacy and other laws, and the
principles of international comity that require U.S. courts to
take into account foreign laws," the Swiss bank said in a February
19 statement.

"The IRS's John Doe summons seeks information regarding a
substantial number of undisclosed accounts maintained by U.S.
persons at UBS in Switzerland, whose information is protected from
disclosure by Swiss financial privacy laws," the UBS statement
added.

                         Net Loss Widens

As reported in the Troubled Company Reporter-Europe on Feb. 11,
2009, UBS'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.


UBS AG: Agrees to Pay US$200 Million to Settle U.S. SEC Charges
---------------------------------------------------------------
The U.S. Securities and Exchange Commission said it filed Feb. 18
an enforcement action against UBS AG, charging the firm with
acting as an unregistered broker-dealer and investment adviser.

The SEC's complaint, filed in the U.S. District Court for the
District of Columbia, alleges that UBS's conduct facilitated the
ability of certain U.S. clients to maintain undisclosed accounts
in Switzerland and other foreign countries, which enabled those
clients to avoid paying taxes related to the assets in those
accounts.

UBS agreed to settle the SEC's charges by consenting to the
issuance of a final judgment that permanently enjoins UBS and
orders it to disgorge US$200 million.

In connection with a related criminal investigation, UBS has
entered into a deferred prosecution agreement with the Department
of Justice pursuant to which UBS will pay an additional US$180
million in disgorgement, as well as US$400 million in tax-related
payments.

"The broker-dealer and investment adviser registration provisions
provide important protections for investors.  UBS avoided
compliance with U.S. securities laws for many years, at the same
time they were engaged in other illegal conduct, which makes this
one of the most egregious cases of its kind," said Scott W.
Friestad, Deputy Director of the SEC's Division of Enforcement.

As alleged in the SEC's complaint, from at least 1999 through
2008, UBS acted as an unregistered broker-dealer and investment
adviser to thousands of U.S. persons and offshore entities with
United States citizens as beneficial owners.  UBS had at least
11,000 to 14,000 of such clients and held billions of dollars of
assets for them.  The U.S. cross-border business provided UBS with
revenues of US$120 million to US$140 million per year.

The SEC also alleges that UBS conducted that cross-border business
largely through client advisers located primarily in Switzerland,
who were not associated with a registered broker-dealer or
investment adviser.  These client advisers traveled to the U.S.,
on average, two to three times per year on trips that generally
varied in duration from one to three weeks.  In many instances,
the client advisers attended exclusive events such as art shows,
yachting events, and sporting events that were often sponsored by
UBS, for the purpose of soliciting and communicating with United
States cross-border clients.  UBS also used other U.S.
jurisdictional means such as telephones, facsimiles, mail and e-
mail to provide securities services to its U.S. cross-border
clients.

The SEC further alleges that UBS was aware that it was required to
be registered with the SEC.  UBS took action to conceal its use of
U.S. jurisdictional means to provide securities services.  Among
other things, client advisers typically traveled to the U.S. with
encrypted laptop computers that they used to provide account-
related information, to show marketing materials for securities
products, and occasionally to communicate orders for securities
transactions to UBS in Switzerland.  Client advisers also received
training on how to avoid detection by U.S. authorities of their
activities in the U.S.

As charged in the SEC's complaint, as a result of its conduct, UBS
violated Section 15(a) of the Securities Exchange Act of 1934 and
Section 203(a) of the Investment Advisers Act of 1940.  To settle
these charges, UBS has consented to the entry of a final judgment
that (1) permanently enjoins UBS from further violation of those
provisions; (2) orders it to pay US$200 million in disgorgement,
to be paid together with an additional US$180 million in
disgorgement that will be paid as part of a settlement of a
related criminal investigation; and (3) orders UBS to comply with
its undertakings to terminate its U.S. cross-border business and
to retain an independent consultant to conduct an examination of
UBS's termination of the business.

The SEC said its investigation is ongoing.

                          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.


===========
T U R K E Y
===========


ANADOLU EFES: Fitch Affirms Issuer Default Rating at 'BB'
---------------------------------------------------------
Fitch Ratings has taken various rating actions with respect to
Turkish brewer Anadolu Efes Biracilik ve Malt Sanayii A.S. (Efes):

  -- Long-term foreign currency Issuer Default Rating: affirmed at
     'BB'; Outlook remains Stable

  -- Long-term local currency IDR: affirmed at 'BB+'; Outlook
     revised to Negative from Stable

  -- National Long Term Rating: affirmed at 'AA+ (tur)'; Outlook
     revised to Negative from Stable

  -- The company's Long-term foreign currency IDR of 'BB' is
     constrained by Turkey's Country Ceiling.

"The change of Outlook reflects Fitch's concerns about the
exposure of Efes's leverage to the deteriorating consumer
environment and to the weakness of the currencies in which it
operates, as well as a moderate degree of refinancing risk," said
Giulio Lombardi, Senior Director in Fitch's European Leisure and
Consumer Products Group.

In affirming the ratings, Fitch has taken into account Efes's
virtually unchallenged leadership position in the Turkish beer
market (over 85% share) and its ability, through stable cash flow,
to support its 70%-owned international subsidiary, Efes Breweries
International, during its past expansion and within the current
challenging environment.  Turkey's beer market has grown
consistently in volume at a compounded annual growth rate of
almost 6% over 2001-2008.  Efes is a profitable and well-managed
regional brewer.  It focuses on the Eastern European beer markets
and has also benefited from a proven ability to adjust to
macroeconomic downturns such as the crisis that struck Turkey in
2000-2001.

Fitch expects Turkey and Russia, the key contributors to Efes'
EBITDA (accounting for approximately 70% and 20% of FY08 EBITDA
respectively), to suffer a contraction of GDP and impaired
consumer confidence and disposable income during 2009 and possibly
beyond. Additionally, the agency notes that the majority of Efes'
debt is denominated in USD, which has significantly appreciated
against the Turkish lira (YTL) and the Russian rouble.

Efes's Net Debt/EBITDA was 1.2x at FYE07.  The agency estimates
that this measure could rise marginally at FYE08 as a result of
the investment program and the acquisitions conducted by EBI and
because of adverse currency movements.  According to various
scenarios conducted by the agency, Fitch believes that Efes's
leverage could either remain at this level for FYE09 or
deteriorate closer to 2.0x - a level that could be incompatible
with the current local currency IDR of 'BB+'.

Fitch includes two put options for the purchase of minority stakes
by EBI in assessing Efes's debt.  However, the agency excludes
Efes's 50.3% share of Coca Cola Icecek's (CCI; 'BB'/Stable)
borrowings and profits from its leverage ratio as The Coca-Cola
Company Inc. ('A+'/Stable) maintains veto rights on important
business and financial decisions of CCI.  Almost half of the gross
debt of the company's beer operations (estimated at under US$1
billion as of FYE08) is due in 2009, with another approximately
US$100 million due in 2010.  There is therefore a certain degree
of refinancing risk for 2009 and 2010.  The debt, which, is mostly
at the level of EBI, includes a US$300 million syndicated facility
guaranteed by the parent Anadolu Efes as well as drawings under
short term, uncommitted lines.  Refinancing risk is mitigated by
the large cash balances held both by Anadolu Efes and by EBI at
FYE08 as well as by cash flow generation.  Fitch therefore
believes that the company's risk of refinancing its debt should be
manageable.

In affirming Efes's ratings, Fitch has taken some comfort from the
company's past performance when Turkey's economic output
contracted and it expects much of the possible adverse effects on
Efes's FY09 cash flow to be mitigated by the current decline in
raw material prices and by a scaling down of group capex.


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


IMAGE PRO: Creditors Must File Claims by March 1
------------------------------------------------
Creditors of LLC Image Pro Ltd. (EDRPOU 35253217) have until
March 1, 2009, to submit proofs of claim to the Insolvency Manager
LLC Sted.

The Economic Court of Kiev has begun bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 49/15-?.

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 Image Pro Ltd.
         Melnikov St. 12
         04050 Kiev
         Ukraine


MACHINEBUILDING SUMYSILMACH: Court Starts Bankruptcy Procedure
--------------------------------------------------------------
The Economic Court of Sumy has begun bankruptcy supervision
procedure on OJSC Sumy Plant of Agricultural Machinebuilding
Sumysilmach (EDRPOU 00901588).

The Temporary Insolvency Manager is:

         Arbitral manager O. Maliovany
         Sumy and Kiev divisions St. 24/2
         40024 Sumy
         Ukraine

The Court is located at:

         The Economic Court of Sumy
         Shevchenko Avenue 18/1
         40011 Sumy
         Ukraine

The Debtor can be reached at:

         OJSC Sumy Plant OF Agricultural
         Machinebuilding Sumysilmach
         Kharkov St. 6
         40024 Sumy
         Ukraine


SHEPROS LLC: Creditors Must File Claims by March 4
--------------------------------------------------
Creditors of LLC SHEPROS (EDRPOU 31310889) have until March 4,
2009, to submit proofs of claim to Insolvency Manager I. Gusar

The Economic Court of Kiev has begun bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 15/28-?.

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 SHEPROS
         Magnitogorskaya St. 1A
         02094 Kiev
         Ukraine


TECHNOSPHERE LLC: Creditors Must File Claims by March 1
-------------------------------------------------------
Creditors of LLC Technosphere (EDRPOU 24093609) have until
March 1, 2009, to submit proofs of claim to:

         State tax inspection in Pechersky
         Insolvency manager
         Leskovaya St. 2
         Kiev
         Ukraine

The Economic Court of Kiev has begun bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 15/686-?.

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 TECHNOSPHERE
         Leskovaya St. 2
         01011 Kiev
         Ukraine


ZVENIGORODKA AGRICULTURAL: Creditors Must File Claims by March 1
----------------------------------------------------------------
Creditors of OJSC Zvenigorodka Agricultural Machine-Technological
Station (EDRPOU 30257002) have until March 1, 2009, to submit
proofs of claim to:

         Arbitral manager V. Yatchuk
         Insolvency Manager
         Paris Commune St. 104
         Russkaya Poliana
         19602 Cherkassy
         Ukraine

The Economic Court of Cherkassy has begun bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 14/2823.

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko boulevard 307
         18000 Cherkassy
         Ukraine

The Debtor can be reached at:

         OJSC Zvenigorodka Agricultural
         Machine-Technological Station
         Ozernaya
         Zvenigorodka
         20226 Cherkassy
         Ukraine


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


BUCHANAN ARMS: Appoints Joint Administrators from KPMG
------------------------------------------------------
Gerard Anthony Friar and Blair Carnegie Nimmo of KPMG LLP were
appointed joint administrators of Buchanan Arms Management Ltd. on
Jan. 29, 2009.

The company can be reached at:

         Buchanan Arms Management Ltd.
         220 The Vale
         London NW11 8SR
         England


CARTER BROTHERS: Names Joint Administrators from PKF
----------------------------------------------------
Kerry Franchina Bailey and Jonathan David Newell of PKF (UK) LLP
were appointed joint administrators of Carter Brothers Transport
Ltd. on Feb. 3, 2009.

The company can be reached at:

         Carter Brothers Transport Ltd.
         20 Silica Road
         Amington Industrial Estate
         Amington
         Tamworth
         Staffordshire B77 4DT
         England


CHEVLER PACKAGING: Goes Into Administration
-------------------------------------------
Liz Wells at packagingnews.co.uk reports that Chevler Packaging
has gone into administration.

The company called in administrator Richard Hawes from Deloitte on
Feb. 10, the report relates.

The report recalls in February 2007, the company shut down its
cartonboard operations after failing to find a buyer.

Based in Buckinghamshire, Chevler Packaging manufactures plastic
and paper packaging, the report discloses.


LIMEHOUSE DEVELOPMENTS: Taps Joint Administrators from BDO
----------------------------------------------------------
Shay Bannon and Martha H Thompson of BDO Stoy Hayward LLP were
appointed joint administrators of London & Limehouse Developments
Ltd. on Feb. 3, 2009.

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

         55 Baker Street
         London W1U 7EU
         England


GLOBE PUB: S&P Downgrades Rating on Class B Notes to 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its ratings on the notes issued by Globe Pub
Issuer PLC following its review of the transaction's performance
and recent meeting with the management team.

The rating actions follow Globe Tenanted Pub Company Ltd.'s (Globe
Borrower's) weaker-than-expected results in the quarter that ended
Nov. 29, 2008, after an already weak performance in previous
quarters.  It also reflects S&P's lowering of the business risk
assessment and subsequent revised cash flow stresses under S&P's
rating scenarios.  In S&P's opinion, Globe Borrower's operating
cash flow and profitability are likely to deteriorate further in
the current difficult retail environment characterized by weaker
consumer spending.

Globe Borrower has been hit harder than its rated peers, mainly
due to its weak food offering and a lower-quality estate.  Drink
sales declines in Globe Borrower pubs are running higher than the
industry average, with a 15% decline in beer barrelage sold
compared with a 9% industry average and well above those seen in
other securitized transactions.  In S&P's opinion, this is because
Globe Borrower has not benefited from the drinks volumes brought
in by diners.  S&P does not foresee any improvement in Globe
Borrower's operating environment in the short term.  In S&P's
opinion, the risks embedded in this transaction are no longer
commensurate with an investment-grade rating.

As a result of an EBITDA decline, the debt-service coverage ratio
fell to 1.26x in the quarter ending November 2008—this was below
the 1.35x trigger, leading to the requirement of an "independent
consultant" to be appointed under the terms of the transaction.

S&P also believes it is likely that in the next financial quarter
Globe Borrower will breach its financial covenant, which, if not
cured, would lead to a borrower event of default.  As of Q2 2009,
the key ratios remained onside.  However, S&P has noticed that in
particular the rolling two-quarter EBITDA ratio was precipitously
close to breach, at 1.26x versus a covenant of 1.25x.

S&P further notes that if the DSCR was calculated quarterly it
would have been 1.20x for the last quarter.  Given the present
stressed operating environment, it is S&P's view that the
operating performance in this transaction will continue to
deteriorate in the short to medium term.  As such, it is also
S&P's belief that there is a high likelihood that this covenant
will be breached in Q3 2009.

It should, however, be noted that a borrower event of default is
not the same as an issuer event of default.  S&P's analysis
already contemplates the noteholders' ability to indirectly take
control of the securitized pubs and operate them through a
replacement operator, notwithstanding the insolvency of the
original borrower.  As such, S&P's rating rates through insolvency
of the borrower.

If an unremedied breach persists, a borrower event of default is
deemed to have occurred.  In this case an administrative receiver
is expected to be appointed at the borrower level to manage the
business.  In S&P's opinion, there are incentives for the
administrative receiver to operate the securitized assets, despite
the very weak performance.  Globe Borrower's securitized estate
is still cash-generative, having generated about GBP1 million of
cash in the last quarter, helped by positive working-capital
movements.

                           Ratings List

                       Globe Pub Issuer PLC
    GBP257 Million Fixed- and Floating-Rate Asset-Backed Notes

      Ratings Lowered and Removed from CreditWatch Negative

                             Rating
                             ------
         Class       To                   From
         -----       --                   ----
         A1[1]       BB                   BBB+/Watch Neg
         B1[1]       B                    BB+/Watch Neg

[1] Subject to a step-up fee from September 2013 (for the class B1
notes) and September 2021 (for the class A1 notes).  As part of
Standard & Poor's analysis, the step-up fee was modeled fully
subordinate to the payments on the class A1 and B1 notes and not
rated.


J BLACKBURN: In Administration; KPMG Appointed
----------------------------------------------
Paul Flint and Brian Green of KPMG's Restructuring practice were
appointed as joint administrators to J Blackburn Ltd, a printing
and direct mail business on February 16, 2009, and on February 18,
2009 sold part of the company to the management team.

The Leeds based business, which trades as Blackburns, employed
approximately 300 people across both divisions.  The company,
which has an annual turnover of GBP30 million, was making trading
losses which resulted in cashflow problems and the appointment of
administrators.

The direct mail part of the business has been bought out of
administration by the management team led by joint managing
directors, Andrew Cowman and Nick Atkinson, in a deal that will
protect 151 jobs.

The administrators have had to make 114 redundancies in the
printing operation however, and are trading it on a limited basis,
with 33 employees, and are keen to talk to any party that may have
an interest in the business and assets.

Paul Flint, joint administrator and KPMG Restructuring director,
said: "I am very pleased to have achieved a sale that preserves a
good number of jobs in a difficult market while of course it is
disappointing that some redundancies were unavoidable.

This sale allows the management team to trade the direct mail part
of the company, giving the business and its employees the prospect
of future prosperity."


MACK-LINE LTD: Appoints Joint Administrators from BDO
-----------------------------------------------------
Simon Girling and Graham Randall of BDO Stoy Hayward LLP were
appointed joint administrators of Mack-Line Ltd. on Feb. 3, 2009.

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

         One Victoria Street
         Bristol BS1 6AA
         England


MARDAYNE ESTATES: Names Joint Administrators from BDO
-----------------------------------------------------
Dermot Justin Power and Patrick A. Lannagan of BDO Stoy Hayward
LLP were appointed joint administrators of Mardayne Estates Ltd.
on Feb. 6, 2009.

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

         Commercial Buildings
         11-15 Cross Street
         Manchester M2 1BD
         England


STANTON MBS: Fitch Cuts Rating on EUR10 Mil. Notes to 'BB-'
-----------------------------------------------------------
Fitch Ratings has downgraded four classes of Stanton MBS I plc's
notes, and affirmed the class A1 notes.  The agency has removed
all five classes from Rating Watch Negative, and assigned a Stable
Outlook to the notes as detailed below.

  -- EUR139.9 million class A1 (ISIN XS0202635040): affirmed at
     'AAA'; removed from RWN; assigned a Stable Outlook

  -- EUR27.5 million class A2 (ISIN XS0202637418): downgraded to
     'A' from 'AAA'; removed from RWN; assigned a Stable Outlook

  -- EUR15 million class B (ISIN XS0202637848): downgraded to
     'BBB' from 'AA'; removed from RWN; assigned a Stable Outlook

  -- EUR12 million class C (ISIN XS0202638499): downgraded to
     'BBB-' (BBB minus) from 'A'; removed from RWN; assigned a
     Stable Outlook

  -- EUR10 million class D (ISIN XS0202639208): downgraded to
     'BB-' (BB minus) from 'BBB'; removed from RWN; assigned a
     Stable Outlook

The downgrades reflect Fitch's view on the credit risk of the
rated tranches following the release of the agency's revised
Structured Finance CDO rating criteria on December 16, 2008, as
well as credit deterioration to the collateral pool.  Stanton MBS
I is a securitization of European structured finance assets with a
total note issuance of EUR297.3 million.

The application of the new SF CDO rating criteria incorporates
Fitch's view on industry and vintage concentration risks and the
propensity for low recoveries upon default, particularly for thin
tranches.  While the class B, C and D overcollateralization tests
were failing prior to the February 2009 payment date, the
waterfall payments have resulted in the class B and C OC tests
being cured and the class A1 notes consequently being de-
leveraged, with principal outstanding declining to EUR139.9
million from EUR213.5 million.  The downgrades of classes A2, B, C
and D were all driven by Fitch's revised criteria.  The
affirmation of the class A1 notes was as a result of the
aforementioned de-leveraging: at EUR139.9 million the A1 notes are
significantly overcollateralized by the EUR 221.5 million of
assets; furthermore breakeven analysis indicates that the notes
could withstand the default of the 23 riskiest issuers.

In conducting its analysis, Fitch made a three-notch downward
adjustment for any names on RWN under the default analysis of its
Portfolio Credit Model.  On an adjusted basis approximately 78.7%
of the assets are treated as sub-investment grade.  The weighted
average portfolio quality is 'BBB-'(BBB minus)/'BB+' and 3.4% of
the portfolio is on RWN by rating driver.  There are no defaulted
assets currently, but one asset representing 1.6% of the portfolio
is rated at 'CCC'.

As per the trustee report dated January 28, 2009, the portfolio
contains 76 assets from 65 obligors, with the largest obligor
accounting for approximately 4.8% of the outstanding portfolio,
and the three largest obligors accounting for 11.1% of the
outstanding portfolio amount.  The largest single asset class is
RMBS with 63.5% of the portfolio volume.  The two largest vintages
are 2004 and 2006 making up 31.1% and 23.7% of the portfolio
respectively, while the four largest country concentrations are
the United Kingdom, the Netherlands, Italy and Germany making up
33.3%, 23.8%, 13.8% and 11.9% of the portfolio respectively.
The portfolio is actively managed by Cambridge Place Investment
Management LLP, a specialist investment manager, focused on asset-
backed securities and related instruments.


WARNER ESTATE: Calls In Rothschild to Advise on Debt Restructuring
------------------------------------------------------------------
Graham Ruddick at The Daily Telegraph reports that Warner Estate
Holdings plc has called in Rothschild to consider a restructuring
of its debts amid concerns that it could breach banking covenants.

The update sent the company's shares down 3 - or 13pc - to 20.5p
on Tuesday, Feb. 17, the report relates.

Warner, as cited by the report, said Rothschild will "assist in
the discussions with its lenders" and "advise the board on the
most appropriate capital structure for the group".  The company
added "Discussions continue with each lender on a range of options
to resolve valuation-related covenant issues and the board will
provide further information on progress in due course."

                   Commercial Property Values

The Daily Telegraph recalls seven months ago the company was
forced to renegotiate its banking covenants, blaming the rapid
fall in commercial property values.

In a Feb. 17 release, Warner said that since Sept. 30, and in line
with the overall trend in the UK property investment market, it
has continued to experience further declines in the value of its
property portfolio.  The company noted this has further increased
the pressure on its valuation related banking covenants.

According to the company, the significant fall in interest rates
has had a material impact on the interest rate hedging of its
facilities.  The company said these hedges, when "marked to
market" as at Dec. 31, 2008, were GBP20.8 million "out of the
money" as against the Sept. 30 net liability of GBP2 million.

The company disclosed GBP75 million of hedging, representing
GBP14.8 million of the GB20.8 million liability, has been
cancelled for just under GBP12 million, to be settled on May 29,
2009.  Falling interest rates, combined with the cancellation of
these hedges, have reduced its average cost of debt to 3.94%
(September 2008: 4.71%), the company said.

                            Net Debt

According to the report, the company reduced its debt from GBP349
million to GBP323 million in the final quarter of 2008 through
property disposals.  The company's largest lenders are Royal Bank
of Scotland and HBOS, the report states.

                      About Warner Estate

Headquartered in London, Warner Estate Holdings plc –
http://www.warnerestate.co.uk–-  is engaged in property
investment together with the management of properties in the
United Kingdom.


XSMG LTD: Taps Joint Administrators from KPMG
---------------------------------------------
Myles Antony Halley and David John Standish of KPMG LLP were
appointed joint administrators of XSMG Ltd. on Feb. 9, 2009.

The company can be reached at:

         XSMG Ltd.
         Navigation House
         Berthon Shipyard
         Bath Road
         Lymington
         Hants
         SO41 3YL
         England


ZAVVI UK: Ceases Trading; 446 Jobs Axed
----------------------------------------
The joint administrators from Ernst & Young said that a further
360 zavvi jobs are expected to be saved following sale agreements
reached with HMV Music Limited and Head Entertainment LLP, with
effect from 10pm on February 17, 2009.

Tom Jack, joint administrator of zavvi UK, commented "This is a
fantastic result for the employees and customers of the stores
concerned."

"Another five stores have been sold to HMV, meaning 111 employees
will transfer across to HMV immediately and over the course of the
next two weeks these zavvi stores will be rebranded as HMV.  In
total, HMV has purchased 19 stores in the UK and Ireland securing
jobs for 380 employees."

Mr. Jack added "Five stores (160 employees) have also been sold to
Head Entertainment LLP, with a further three stores (89 employees)
expected to complete by February 20, 2009.  This would ensure the
transfer in total of another 249 jobs in a deal that also includes
the sale of all remaining zavvi Limited stock."

Head, a business led by Les Whitfield and former zavvi Chief
Executive Simon Douglas, is expected to continue to trade the
stores using the stock purchased in this deal and from other
sources going forward.

The sale of all remaining stock means that zavvi trading will now
cease, resulting in the closure of the remaining zavvi stores by
February 20, 2009 and the loss of 446 jobs.

Mr. Jack said "I would like to thank all of zavvi's staff and
customers for their commitment and continued support for the
business throughout the Administration.  While it has not been
possible to secure a sale of the business as a going concern, we
are delighted to have been able to secure continued employment for
629 zavvi employees."

The joint administrators were advised by DLA Piper, Manchester.

Tom Jack, Simon Allport and Alan Hudson of Ernst & Young LLP were
appointed joint administrators of zavvi UK on December 24, 2008,
with the exception of zavvi Entertainment Group Limited which
entered administration on January 13, 2009.  On December 30, 2008,
David Hughes of Ernst & Young was appointed provisional liquidator
of Zavvi Ireland.


* UK: Business Failures Up 30% in 2008, Experian Says
-----------------------------------------------------
Experian, the global information services company, published its
insolvency data for 2008 on February 10.  Its analysis shows that
there were 23,879 business failures over the 12 months to the end
of December 2008, representing a 30% increase on 2007.  In terms
of cities, London and Birmingham were the UK's insolvency hotspots
in the final quarter of the year with 1,221 and 381 businesses
respectively failing in the two cities.

The latest Insolvency Report and Distress Index from Experian's
Business Information division highlights that from October to the
end of December 2008, 7,238 businesses failed.  This represents a
52% increase compared to Q4 2007, which saw 4,751 failures.

Tony Pullen, Managing Director of Experian's Business Information
division, commented: "Relying on sparse financial information and
out of date accounts to make business-critical decisions could
have devastating consequences for organizations.  More than 65
firms failed every day in 2008 and this underlines why it is vital
that organizations use real-time data insight to determine whether
or not to do business with a company.

"We recommend that companies use this valuable information to
their advantage as an early warning system to alert them to
customers or suppliers heading into difficulties.  Warning signs
can include a major reduction in share capital, late filing of
accounts through to adverse notices, such as County Court
Judgements.  We also advise clients to use payment performance
data to identify companies' payment patterns and worsening payment
trends, which are strong indicators of reduced cashflow, which can
then lead to possible insolvency.  This level of insight will not
only indicate whether a customer is likely to pay, but also when –
a powerful tool in today's climate."

                       Sector Analysis

Of the 34 sectors monitored, 25 saw increases in insolvencies in
2008, compared to just nine over the course of 2007.  Only five
sectors – Oil, Plastics & Rubber, Printing Paper & Packaging,
Pharmaceuticals and Insurance – did not see an increase in the
final quarter of the year compared to the same period in 2007.

The Property sector was significantly impacted in 2008.  It saw
the highest increase in the number of insolvencies over the year –
an additional 1,233 on top of 2007's figure bringing the year's
total to 1,935 (an increase of 176%).   Failures in the Business
Services sector increased by 1,156 during 2008 to reach 5,412 –
representing an increase of 27%.   The third highest increase in
failures came in the Building & Construction sector, with 2,391
firms failing, up 28% on 2007's figure.

                    Regional Overview

All 14 regions monitored by Experian saw an increase in
insolvencies in Q4 2008 compared to Q4 2007 and also during 2008
versus 2007.  While the South East saw the highest number of
failures in 2008, with 4,990 firms going under (up by 794 or 19%),
it was the North West that saw the biggest leap in failures.
Almost 1,000 more businesses failed in the region in 2008 compared
to 2007 - up by 41% to 3,437 failures from 2,441.

Scotland experienced both the lowest percentage and actual
increase in insolvencies in 2008 compared to 2007.  Over the year,
there were 983 corporate failures, 101 more than in 2007 and an
increase of 12%.

The UK's major cities – London, Birmingham, Manchester and Leeds -
led the rankings for the number of insolvencies in the final
quarter of the year.  Only three cities – Liverpool, Derby and
Oxford – experienced a decline in the number of business failures
in Q4 2008 compared to Q4 2007.

                    Types of Insolvency
2008 saw a 143% increase in receiverships compared to the previous
year, a clear sign of the caution in the banking sector and the
fact that they are quicker to call in debt.

Voluntary liquidations are still the most common type of business
failure.  In 2008 some 11,255 businesses were put into liquidation
by their shareholders, representing an increase of 24%.


* UK: R3 Sees 11 More High Street Brand Insolvencies in 2009
------------------------------------------------------------
R3, the insolvency trade body, said insolvency practitioners in
England and Wales predict that even after the recent flurry of
high street insolvencies, including household names like
Woolworths and Whittards, there will be eleven more to come in the
next three months alone.

The R3 survey of its members, who include 97% of all licensed
insolvency practitioners in the UK, was conducted in January by
polling company ComRes.  The results show that the high street
brand insolvencies are part of the growing number of corporate
insolvencies which practitioners expect to see peak at 19,796 in
2009.  This is a 26% increase on predictions insolvency
practitioners made for 2008.

Nick O'Reilly, R3 President, explained: "Our survey shows that UK
insolvency practitioners believe that we have not yet seen the
worst.  An overwhelming majority of insolvency practitioners
believe that this downturn will be deeper than the 1990s
recession; over two thirds think this one will last longer, and
three quarters think more businesses will close this time around."

"There will always be a number of businesses which are not viable
for reasons unrelated to the economy.  But the number one reason
that insolvency practitioners gave for the increase in corporate
insolvencies was the economic downturn, followed by a change in
banks' lending practices.  This shows we are set to lose
businesses which otherwise might not have been vulnerable; with
every business loss there is a loss of the "core" of the business,
not just physical assets but intellectual property as well.
Rebuilding these businesses could take a very long time."

However it is not all bad news.  The respondents to the survey
believe that the numbers of corporate insolvencies will peak in
2009 with a slightly lower total of 19,202 insolvencies predicted
for 2010.  Over two thirds of respondents believe that the economy
will recover in 2010-2011.


* EC Assesses Stability & Convergence Programs of 6 Member States
-----------------------------------------------------------------
The European Commission on Wednesday, February 18, examined the
updated Stability and Convergence Programmes (SCPs) of Ireland,
Greece, Spain, France, Latvia and Malta.  Against the background
of the ongoing sharp economic downturn, budgetary positions are
estimated to have deteriorated markedly in 2008 and to continue
deteriorating in 2009 in Ireland, Spain, France and Latvia.  In
Spain and France this also reflects significant economic stimulus
packages adopted in line with the European Recovery Plan that
called for timely, targeted and temporary fiscal measures in
Member States with fiscal room for maneuver.  Ireland and Malta
have taken a number of measures to support the economy as part of
a broader consolidation effort, which seems adequate in light of
the macro-fiscal and competitiveness challenges in these
countries.  Greece has not adopted fiscal stimulus measures, an
adequate posture in view of still positive growth and its high
debt and large economic imbalances. Latvia also refrained from
adopting short-term fiscal stimulus measures given the need to re-
balance its economy and restore investor confidence.  As all six
countries had a budget deficit of more than 3% in 2008, the
Commission also adopted reports under the corrective arm of the
Stability and Growth Pact.  In accordance with Article 104.3 of
the Treaty, the reports analyse the reasons for the breach of the
3% reference value, taking due regard of the economic background
and other relevant factors.  The Commission examined another 11
SCPs Wednesday, but in all cases the budgetary position remains
within the limits of the Pact.

"As a result of the sharp global financial and economic crisis EU
public finances are under stress.  The crisis brought about a
decline in tax revenues and a rise in expenditure (e.g. in
unemployment benefits).  Public finances deteriorated further as
many Member States adopted fiscal measures to support demand and
job creation this year, as recommended by the Commission and the
Council in the European Recovery Plan.  The application of the
revised Stability and Growth Pact will help return to sound and
sustainable public finances once the recession is over and growth
resumes.  Our analysis shows that fiscal stimulus measures were
adopted across the EU mostly by countries with a budgetary margin
of maneuver and/or with low debt or external imbalances.

The measures are also generally timely, targeted and temporary.
However for the Member States where the general government deficit
climbed above the 3% reference value in 2008, the Commission today
[Wednesday] adopted excessive deficit reports.  Exceptional
circumstances are considered where appropriate.  In all other
cases the Commission will use the full flexibility imbedded in the
revised Stability and Growth Pact when considering the next steps
under the excessive deficit procedure in the weeks to come", said
Economic and Monetary Affairs Commissioner Joaquín Almunia.

                         Ireland

After more than a decade of strong economic growth, Ireland is now
going through a severe recession.  The downturn was caused by the
financial crisis, the sharp correction in the housing market and
the recession in Ireland's main trading partners, the US and the
UK.  These developments have led to a very sharp deterioration of
Ireland's public finances, with the government balance going from
a small surplus in 2007 to an estimated deficit of 6.3% of GDP in
2008 and widening to 9.5% in 2009.

The Irish Stability Programme envisages a progressive reduction of
the deficit to below the 3% of GDP reference value in 2013,
assuming a recovery of economic activity after 2010.  The measures
adopted by the government can be regarded as welcome and adequate
given the high deficit and a sharply increasing debt position (to
above the 60% reference value from 2010) and are in line with the
European Recovery Plan.  But the growth scenario is somewhat
optimistic and the consolidation measures presently lack detail.
Further risks stem from the measures in place to support the
financial sector, in particular bank guarantees and, concerning
the debt ratio, the possibility of further capital injections or
nationalizations of banks.

In view of the Commission assessment, Ireland is invited to (i)
limit the widening of the deficit in 2009 and specify and
rigorously implement a substantial broad-based fiscal
consolidation program for 2010 and beyond; (ii) in order to limit
risks to the adjustment, strengthen the binding nature of the
medium-term budgetary framework as well as closely monitor
adherence to the budgetary targets throughout the year; (iii) in
view of the significant projected increase in age-related
expenditure, and also of the increase in debt albeit from a low
level expected over the program period, improve the long-term
sustainability of public finances by implementing further pension
reform measures in addition to pursuing fiscal consolidation.

As the deficit in Ireland reached 6.3% in 2008, thus exceeding the
3% reference value, the Commission also adopted a report under
104.3 of the EU Treaty which lays down an excessive deficit
procedure (EDP).  This is because while the excess over the
reference value can be qualified as exceptional, it is not close
to the reference value and it is not temporary.  At 40.6% of GDP
in 2008, general government gross debt remains below the 60% of
GDP reference value but is expected to exceed that value from
2010.

                           Greece

Greece has experienced strong economic growth at 4% per year over
the current decade.  In 2008 its GDP grew well above the euro area
average and in 2009 it was still seen in positive territory in the
Commission's January forecasts.  However, domestic and external
macroeconomic imbalances have widened considerably, which has led
to very high public and foreign debt.  The ongoing global economic
and financial crisis is taking its toll on the economy and putting
pressure on the debt burden.

The budget deficit exceeded 3% in 2007 and 2008 and, according to
the Greek Stability Programme, it will reach 3.7% in 2009 before
falling to 3.2% of GDP in 2010 and 2.6% by 2011.  Greece has no
room for fiscal impulse given its very high debt and current
account imbalance.  It has not adopted a stimulus package.  The
consolidation strategy in 2010 and 2011, outlined in the
Programme, relies on expenditure restraint and to a lesser extent
on increasing tax revenues, but the plans currently lack in detail
on concrete measures.

In view of the Commission assessment, Greece is invited to: (i)
strengthen substantially the fiscal consolidation path already in
2009, especially if economic conditions turn out better than
expected in the program, through well-specified permanent measures
curbing current expenditure, including a prudent public sector
wage policy, thereby contributing to necessary reduction in the
debt-to-GDP ratio; (ii) ensure that fiscal consolidation measures
are also geared towards enhancing the quality of public finances,
within the framework of a comprehensive reform program, in the
light of the necessary adjustment of the economy, with a view to
recovering competitiveness losses and addressing the existing
external imbalances; (iii) implement swiftly the policies to
reform the tax administration and improve the functioning of the
budgetary process by increasing its transparency, spelling out the
budgetary strategy within a longer time perspective and set up
mechanisms to monitor, control and improve the efficiency of
primary current expenditure; (iv) in view of the mounting level of
debt and the projected increase in age-related expenditure,
improve the long-term sustainability of public finances, by
continuing the on-going reforms in the healthcare and pension
system.

The deficit exceeded 3% in 2007 and the general government debt
stood at 94.8% of GDP that year, according to the data notified by
the Greek authorities in October 2008 and validated by Eurostat,
confirmed also in the January 2009 update of the Stability
Programme.  Therefore, the Commission adopted a report under
Article 104.3 of the Treaty, which marks the start of the EDP.
According to the Commission's January forecast, the deficit net of
one-offs attained 3.6% of GDP in 2008 (or 3.4% of GDP including
one-offs).  The excess over the 3% reference value is not
temporary.  The excess over the 3% reference value is also not
exceptional, as it does not result from a severe economic downturn
in the sense of the Treaty and the Stability and Growth Pact.

                             Spain

Spain is undergoing a sharp contraction of economic activity as a
result of the global economic and financial crisis and a severe
correction in the housing sector, both taking their toll on public
finances and on employment.  Since the first half of 2008, the
Spanish authorities have also adopted various discretionary
measures to stimulate economic activity, in line with the EU
Recovery Plan, including tax cuts and investment projects,
amounting to 2 1/4% of GDP in 2009, as well as a series of
structural reforms.

In 2008, for the first time in several years, Spain is estimated
by the Commission and in its Stability Programme sent mid January
to have recorded a budget deficit estimated at 3.4% of GDP.  The
program puts the figure this year at -5.8% before a gradual fall
to below 4% in 2011.  However, the favorable macroeconomic
assumptions may imply a lower contribution of economic growth to
fiscal consolidation than envisaged and the adjustment path is not
fully backed up with concrete measures, except for the
discontinuation of the 2009 stimulus package.  In this context, a
careful assessment of the budgetary impact of discretionary
measures will be crucial to ensure the improvement of the medium-
term budgetary position, as well as of the long-term
sustainability of public finances.

Public debt, which had been reduced to 36.2% of GDP in 2007, is
expected to grow to above 50% in 2010.

Based on this evaluation, the Commission proposes three policy
invitations for Spain, which focus on: (i) Implement the measures
in line with the EERP as planned, while avoiding a further
deterioration of public finances in 2009, and carry out with
determination the planned structural adjustment in 2010 and
beyond, backing it up with measures, and strengthening the pace of
budgetary consolidation if cyclical conditions are better than
projected, (ii)

In view of the ongoing fiscal deterioration and of the projected
impact of ageing on government expenditure, iImprove the long-term
sustainability of public finances by implementing the adopted
measures aimed at curbing the increase in age-related expenditure;
(iii) Ensure that fiscal consolidation measures are also geared
towards enhancing the quality of the public finances as planned in
the light of the needed adjustment of the economy to address
existing imbalances.

In parallel with its assessment of the program, the Commission is
adopting a report under Article 104.3 of the Treaty – on the basis
of the breach of the 3% of GDP reference value in 2008. While the
deficit remained close to the 3% reference value, the deficit
cannot be said to be the result of a severe economic downturn as
GDP growth was still positive (over 1%).  The excess over the 3%
is also not temporary as, according to the program, it will remain
above that level until 2011.

                        France

The global financial and economic crisis has also significantly
reduced economic growth in France in 2008 and the economy is set
to contract by a level close to the euro area average in 2009.  In
response, the French government unveiled in December a recovery
plan amounting to 1.3% of GDP, which will increase the deficit by
0.8% of GDP in 2009 and 0.1% of GDP in 2010.  The plan can be
considered as targeted, timely and temporary and in line with the
EU Recovery Plan.

The French budget deficit is estimated to have reached 3.2% in
2008, according to recent government information sent to the
Commission and to increase to 4.4% in 2009 before falling to below
3% in 2011, according to the new projections.  The higher figures
rely on the same macroeconomic scenario as notified at the end of
December.

The program foresees a consolidation of public finances through a
restrictive stance, especially in 2010.  Risks are linked in
particular to the markedly favorable macroeconomic assumptions and
the current uncertain environment, but they also reflect the high
deficits recorded when economic conditions were more favorable.

In view of the above assessment, France is invited to (i)
implement in 2009 the measures in line with the EU Recovery Plan
as planned while maintaining the objective of avoiding a further
deterioration of public finances; (ii) implement the planned
structural adjustment in 2010 and strengthen the pace of budgetary
consolidation once the economy recovers, in order to ensure that
the deficit is brought rapidly below the reference value thereby
setting the debt to GDP ratio on a declining path; (iii) further
improve expenditure rules by making them binding to all government
tiers, reinforcing their monitoring and enforcement mechanisms and
taking additional measures in the context of the General Review of
Public Policies.  Implement the structural reform program in
particular as regards the sustainability of the pension system.

The Commission has also adopted a report in application of the
Stability and Growth Pact for France.  This is because, although
the deficit in 2008 is likely to have been close to the 3%
reference value, it does not result from exceptional circumstances
in the sense of the Treaty and the Stability and Growth Pact, and
is not temporary as it is expected to remain above 3% in the
following two years.

                          Latvia

Latvia is currently in a severe economic downturn following years
of above-potential economic growth.  The global financial crisis
has amplified the shock of the reversal of Latvia's own lending
and house price boom by tightening credit availability and
conditions, which in turn reinforced the steep decline of domestic
demand.

The fiscal targets presented in the Convergence Programme are in
line with those in the country's economic stabilization plan,
adopted in December, which foresees tax increases and expenditure
cuts and is supported by international financial assistance
(EUR7.5 billion in total of which EUR3.1 billion from the EU).
Having exceeded 3% of GDP in 2008, the program targets general
government deficits of around 5% in 2009 and 2010, before falling
below 3% in 2011.

In view of the above assessment, the commitments made in the
framework of international financial assistance and also given the
need to ensure sustainable convergence and a smooth participation
in ERM II, Latvia is invited to: (i) submit to Parliament by the
end of March 2009 the details of the supplementary budget adopted
on December 12, 2008; take further measures if needed to achieve
the targeted general government deficit in 2009 and continue the
targeted fiscal consolidation thereafter; (ii) rigorously
implement public sector nominal wage reductions to facilitate the
alignment of whole-economy wages with productivity, thereby
improving cost competitiveness; (iii) strengthen fiscal governance
and transparency, by improving the medium-term budgetary framework
and reinforcing spending controls, and strengthen financial market
regulation and supervision; (iv) strengthen the supply side of the
economy by wide-ranging structural reforms and by making efficient
use of available EU structural funds.

In parallel with its assessment of the program, the Commission is
adopting a report under Article 104.3 of the Treaty.  While the
deficit is expected to have been close to the reference value in
2008, the excess over the reference value cannot be considered
temporary as it would widen in 2009 and remain well above 3% of
GDP in 2010.  The general government debt, while still below the
60% reference value, is projected on a rapidly growing trend,
increasing fourfold from less than 10% in 2007 to 45.4% of GDP in
2010.

                         Malta

Against a backdrop of weakening economic growth, the budget
deficit is estimated to have reached 3.3% in 2008, according to
the Stability Programme submitted early December (3.5% according
to the Commission's January forecast).  But the program and the
Commission also envisage a return to budgetary consolidation from
2009 onwards.  The measures adopted by the government in response
to the downturn are in line with the EU Recovery Plan and can be
regarded as adequate given the deficit and debt ratios as well as
the competitiveness challenge.  However, there are risks to the
achievement of the deficit and debt targets over the program
period stemming from the favorable macroeconomic scenario, the
reliance on volatile revenue, the possibility of expenditure
slippages and the lack of information on the consolidation
measures in the outer years.

The debt ratio is targeted to fall gradually over the program
period to below the 60% but is subject to the risks mentioned
above.

In view of the Commission assessment, Malta is invited to (i)
resume fiscal consolidation as envisaged in the program and ensure
that the general government debt ratio is reduced accordingly, by
spelling out the measures underlying the planned consolidation in
the outer years; (ii) strengthen the medium-term budgetary
framework and enhance the efficiency and effectiveness of public
spending, including by accelerating the design and implementation
of a comprehensive healthcare reform.

As the 2008 deficit is above the reference value, the Commission
also adopted a report under the excessive deficit procedure.  It
concludes that, although the 2008 deficit remains close to the
reference value and the planned excess can be considered
temporary, the excess cannot be qualified as exceptional within
the meaning of the Treaty and the Stability and Growth Pact as it
reflects specific expenditure decisions rather than the impact of
the economic downturn.  However, on balance the examination of all
the relevant factors seems positive.


* EC Assesses Stability & Convergence Programs of 11 Member States
------------------------------------------------------------------
The European Commission on Wednesday, February 18, examined the
updated Stability and Convergence Programmes of 17 EU countries
including Bulgaria, the Czech Republic, Denmark, Germany, Estonia,
Hungary, the Netherlands, Poland, Sweden, Finland and the United
Kingdom.  These assessments are seen against the background of a
sharp economic slowdown.  A majority of the countries concerned
(the Czech Republic, Denmark, Germany, the Netherlands, Poland,
Sweden, Finland and the United Kingdom) have adopted fiscal
stimulus measures in 2009 to cope with the economic crisis, in
line with the Economic Recovery Plan proposed by the Commission
and endorsed by EU leaders.  In the UK, the expansionary measures
coupled with the adverse impact of the downturn have significantly
weakened the country's budgetary position.  Hungary has made
considerable progress to put its public finances on a sounder
footing and needs to sustain this effort to secure investor
confidence.  Similarly, in Bulgaria and Estonia, the fiscal policy
stance is appropriately geared towards diminishing macro-economic
imbalances.

"We are going through a very serious crisis that is taking its
toll on public finances.  Fortunately, many countries have entered
the crisis with public finances in a solid position, allowing them
to the respond to the European Council's call for stimulus
measures in 2009.  Implemented swiftly and effectively, these
measures should help to create, together with the bank rescue
plans and the significant easing of monetary policy, the
conditions for a gradual recovery in the second half of the year.
If in 2010, as we believe, economic activity gathers momentum,
fiscal policy needs to revert to a consolidation path.  This is
also important for Member States which are in a relatively
favorable position in order to avoid a permanent deterioration in
the sustainability of their public finances.  In this context it
is important that the Stability and Growth Pact remains the
framework within which the Commission and the Council advices
Member States on their conduct of fiscal policy ", said Economic
and Monetary Affairs Commissioner Joaquín Almunia .

                           Bulgaria

The program's medium-term budgetary strategy aims at maintaining a
sound budgetary position reflected in the high targeted general
government surpluses of 3% of GDP throughout the program period
(2008-2001).

GDP growth has been high in Bulgaria at over 6% per year since
2003, accompanied by a widening external deficit and high
inflation.  As the impact of the global economic slowdown and
financial crisis unfolds, Bulgaria faces the challenge of
sustaining growth while addressing the existing macroeconomic
imbalances through maintaining tight fiscal and income policies.

Bulgaria's fiscal policy is geared towards maintaining investor
confidence and preserving macro-economic stability.  The
government's focus on structural measures to strengthen the
economy's resilience also represents a timely and adequate
response to the current economic outlook.

In view of the above assessment and also given the need to ensure
sustainable convergence, Bulgaria is invited to: (i) continue
maintaining a sound fiscal position by restraining expenditure
growth, with a view to help contain existing external imbalances
and counteract possible revenue shortfalls; (ii) contain public
sector wage growth in order to contribute to overall wage
moderation and improve competitiveness; and (iii) further
strengthen the efficiency of public spending, in particular
through full implementation of program budgeting, reinforced
administrative capacity and reforming the areas of labor and
product markets, education and healthcare, in order to increase
productivity and reduce the external deficit.

                     The Czech Republic

Starting from relatively low government deficit and debt levels,
the program targets a general government deficit of 1.6% and 1.5%
of GDP in 2009 and 2010 respectively, based on favorable growth
assumptions.

Against the background of the recent improvement in public
finances, the Czech Republic adopted a sizeable fiscal stimulus
package.  This package is in line with the EU Recovery Plan, in
being timely and well-target to sectors of the economy likely to
be most severely affected by the slowdown.  It will be important
to reverse them once economic conditions improve.

While pension and health care reforms have been introduced that
will reduce expenditure, concerns remain regarding long term
fiscal sustainability due to a rapidly ageing population.

In view of the Commission assessment, and also given the need to
ensure sustainable convergence, the Czech Republic is invited to:
(i) implement the measures in line with the EERP as planned.; (ii)
reverse the adverse budgetary impact of the fiscal stimulus once
the economy recovers and back-up the budgetary strategy with
specific measures for reducing expenditure in 2010-2011 and (iii)
continue with the necessary pension and health care reforms, given
the projected increase in age-related expenditures, in order to
improve the long-term sustainability of public finances.

                           Denmark

After a period of strong economic activity and sizaable budgetary
surpluses, Denmark's economic slowdown in 2008 was rapid and
pronounced, as the cyclical downturn has been exacerbated by the
global economic and financial crisis.

At the current juncture and given the comfortable fiscal position,
the overall fiscal stance is considered adequate in view of the
discretionary fiscal expansion in 2009 and the relatively strong
automatic stabilizers at play.

The government debt has been nearly halved in the present decade
to a low of 26.3% of GDP in 2007, thanks to high budgetary
surpluses benefiting from a strong fiscal framework.

In view of the Commission assessment, Denmark is invited to (i)
implement the planned measures in line with the European Recovery
Plan and (ii) identify the required structural reform measures to
achieve its budgetary targets in the outer years of the program.

                           Finland

After GDP growth above potential in 2006 and 2007 (4.9% and 4.2%
respectively), the Finnish economy decelerated rapidly in 2008 and
is expected to be negative this year.  The Finnish Programme
submitted mid December still envisaged GDP growth of 0.6 % in
2009, but this appears optimistic given the deteriorated outlook
in the past months.

The fundamentals of the Finnish economy are sound, though, with a
significant surplus in both the current account and the public
finances.  Thanks to a prudent fiscal policy in the good times,
Finland is expected to continue recording surpluses in general
government finances during the program period although they could
turn less important than projected.

The program envisages a large fiscal stimulus over 2009 and 2010,
complemented by new measures announced in January.  This appears
appropriate, provided that action will also be taken to ensure
fiscal retrenchment once the economic crisis abates in order to
preserve the long term sustainability of the public finances.  The
public debt is expected to increase somewhat from an estimated
figure of less than 33% in 2008.

In view of the Commission assessment, Finland is invited to: (i)
implement the measures in line with the Recovery Plan and; (ii)
reverse the adverse budgetary impact of the fiscal stimulus
measures once the economy recovers in order to preserve the long-
term sustainability of public finances.

                         Germany

After successfully reaching a close-to-balance budget in 2007 and
2008, Germany faces a deterioration in its public finances due to
overall worsened economic situation and as a result of the steps
undertaken to counter the sharp slowdown caused by the global
economic and financial crisis.

The Stability Programme completed at the end of January, foresees
a budget deficit of 3% of GDP in 2009 and 4% of GDP in 2010.
Budgetary consolidation would be resumed after 2010 with the
deficit falling to 2½% in 2012.  Given the sharp deterioration in
the global economy and distress in the financial sector, the
budgetary strategy is subject to downside risks.

Using the room of maneuver afforded by the budgetary consolidation
during the good times, Germany adopted a sizeable fiscal stimulus
package between the autumn 2008 and January 2009 in line with the
EU Recovery Plan.  The stimulus focuses on income support, public
and private investment, access to financing, avoiding lay-offs,
improving qualifications and providing measures that support the
automotive industry.  It is a timely and targeted response to the
economic crisis, commensurate with the scale of the downturn.

But it is also important to ensure a return to a credible fiscal
consolidation path once the economy recovers.  In this sense, the
envisaged new constitutional rule limiting federal government
structural deficits to 0.35% of GDP and the debt repayment
schedule are important steps.  Given increasing public debt,
recent ad hoc changes to the pension adjustment formula and
uncertainty as to the impact of the health-care reform, preserving
the achievements made to improve long-term sustainability is
critical.

Therefore, Germany is invited to (i) implement the measures in
line with the Recovery Plan  as planned and reverse the budgetary
impact of the fiscal stimulus measures in order to support
budgetary consolidation once the economy recovers; (ii) strengthen
the institutional fiscal framework by implementing the new
budgetary rule as currently envisaged in order to underpin  the
necessary consolidation course after 2010; (iii) give renewed
attention to measures strengthening the long-term sustainability
of public finances and ensure that the deviation from the pension
adjustment formula in 2008 is reversed as envisaged.

                            Estonia

After many years of strong growth, Estonia is experiencing a
severe downturn.  The global financial crisis and weakening
external demand have added to the reversal of the cycle and
speeded up the contraction of the economy.  While external and
internal imbalances are now clearly subsiding, the loss of cost
competitiveness accumulated over the years of wage growth well in
excess of productivity growth hinders an orderly economic
adjustment.

Following the updated Convergence Programme's submission in early
December, more recently-announced measures aim at keeping the
general government deficit below 3% of GDP.  The expenditure cuts,
which include a reduction of the public sector wage bill, are
intended to support the adjustment process and strengthen the
competitiveness of the economy.  This is a welcome development
that anticipates the policy invitations put forward by the
Commission.  Recent modernization of the labor law is also a
timely step to improve the responsiveness of labor market.  The
Estonian authorities should now ensure that these measures are
implemented.

In view of the Commission assessment and also given the need to
ensure sustainable convergence and a smooth participation in ERM
II, Estonia is invited to: (i) strengthen the consolidation of
public finances in the short term to keep the general government
deficit below 3% of GDP and take necessary measures to underpin
the consolidation in the medium term; (ii) implement prudent
public sector wage policies to support the adjustment of the
economy and to strengthen competitiveness; (iii) reinforce the
medium-term budgetary framework, particularly by improving
expenditure planning and efficiency.

                          Hungary

In spite of distinct improvements in its high imbalances,
including the reduction in its budget deficit from 9.3% in 2006 to
below 3½% in 2008, Hungary has been particularly exposed to the
financial crisis due to still high levels of government and
external debt.  Thus, to restore investor confidence Hungary
adopted a policy of further fiscal adjustment and tighter deficit
targets.

The updated Convergence Programme submitted in December is based
on the economic policy program adopted by the government in
response to the financial crisis and supported by international
financial assistance, including a EUR6.5 billion loan from the
European Union.

The program foresees a continuation of the front-loaded budgetary
consolidation strategy, with another important reduction in 2009
to 2.6% of GDP.  Thereafter, it plans a more moderate progress
towards a deficit of 2.2% in 2011.  In view of the recent
substantially deteriorated macroeconomic outlook and the related
budgetary risks, the government adopted on February 15 an
additional corrective package of 0.7% of GDP and slightly revised
its 2009 deficit target upwards.

The sustainability of public finances hinges on the continuation
of structural reforms, as recently announced, to the extent that
they increase long-term growth, help meet budgetary targets, and
reduce the country's vulnerabilities.

Given this assessment, Hungary is invited, (i) in view of the
risks, maintain adequate buffers, take the necessary measures to
keep the budget deficit below 3% of GDP and ensure that adequate
progress in budgetary consolidation is made, thereby setting the
debt-to-GDP ratio on a declining path towards the 60% of GDP
threshold. (ii) ensure full implementation of the fiscal
responsibility law and continue the expenditure moderation through
additional structural reforms and strengthen financial market
regulation and supervision.  Finally, (iii) Hungary is invited to
further improve the long-term sustainability of public finances
namely through a continuation of the reforms in the pension
system.

                          The Netherlands

Economic activity is expected to decrease sharply in 2009, as the
Netherlands is set to be severely hit by the sharp fall  in world
trade and the financial crisis.

The Stability Programme submitted in November and updated on
December 18 aimed at achieving and maintaining stable budgetary
surplus between 2008 and 2011, but this scenario is subject to
risks linked to the evolution of economic growth and gas prices as
well as the risks associated with the sizeable guarantees given to
the financial sector.  However, and despite the increase in the
public debt to 57% of GDP at the end of 2008 (due to the rescue
plans to the financial sector), the main challenges lie in
addressing the low confidence in the financial sector and
supporting investment.

The Dutch government adopted two support packages, in November
2008 and January 2009, aimed at fostering private investment,
protecting employment and improving credit supply.  The measures
are in line with the European Recovery Plan (timely, temporary and
targeted), but their budgetary impact is rather limited.

In view of this assessment, the Netherlands is invited to
implement measures in line with the European Recovery Plan.

                         Poland

Poland's strong GDP growth is expected to slow markedly in 2009
mainly due to the impact of the global financial crisis, through
the deterioration in global trade flows, the slowdown in FDI
activity and the limited availability of external financing.

The updated Convergence Programme sent at the end of December
targets a general government deficit of 2½% of GDP in 2009, based
on rather favorable growth assumptions.  Further ahead, the
program targets a budget deficit of 2.3% of GDP in 2010 based on
expenditure restraint about which there is presently little
information.

Poland is planning adequate fiscal stimulus measures, some of
which are not temporary, which will stimulate both aggregate
demand in the short term and strengthen the supply side of the
Polish economy in a longer term.  In line with the European
Recovery Plan, the fiscal stimulus measures adopted by Poland
mostly contemplate increased public investment in infrastructure
as well as some cuts in income taxes which reduce the tax wedge.

In view of the Commission assessment and also given the need to
ensure sustainable convergence, Poland is invited to: (i)
implement the stimulus measures in line with the Recovery Plan  as
planned, while ensuring that the deficit remains below 3% of GDP
in 2009; (ii) back up the budgetary strategy with specific
deficit-reducing measures for 2010 and 2011; (iii) reinforce the
budgetary framework through better control over expenditure,
including the swift implementation of the amended public finance
act and performance budgeting.

                          Sweden

After a prolonged period of relatively strong economic growth,
Sweden is experiencing a sharp economic slowdown, which will
negatively affect its budget balance this year.

However, the medium-term budgetary position of Sweden is sound.
Large surpluses in good times have created space to allow fiscal
policy to play an active role in the current downturn, not only by
boosting demand in the short term but also by strengthening the
economy's long-term growth potential.

The fiscal stance has appropriately become expansionary in 2009.
However, there are short-term risks to the fiscal balance, and
there is a need to strengthen the fiscal framework to ensure that
the government balance improves once the economy picks up again.

In view of the Commission assessment, Sweden is invited to (i)
implement the measures in response to the EERP as planned; (ii)
reverse the adverse budgetary impact of the fiscal stimulus
measures once the economy recovers.

                     The United Kingdom

The United Kingdom's convergence program update, submitted on
December 18, confirms a rapid deterioration in the UK's budgetary
position that has considerably strained the sustainability of its
public finances.  The probably significantly weaker-than-envisaged
outlook in the near term also entails the risk of higher
government deficits throughout the program period.

Following the rapid worsening in the macroeconomic situation, the
government deficit is estimated in the program at 5 1/2% of GDP in
2008/09 and is forecast to peak at 8.2% in 2009/10.  The budgetary
projections include the cost of the fiscal stimulus package
announced in November 2008.

As recommended in the EU Recovery Plan, the stimulus package is
temporary and timely, with measures targeted towards supporting
domestic demand in 2009.  However, taking into account the
probability of a worse-than-expected deterioration in the
budgetary position in the near term and the heightened risks to
fiscal sustainability, there is need for a more ambitious
consolidation effort in the medium term.

After the expansionary fiscal measures in 2009/10, the UK
authorities plan some consolidation from 2010/11 onwards, but
there are risks to the achievement of this consolidation and the
deficit in 2013/14 would still be above 3% of GDP.  Improvements
would depend on a significant economic recovery as well as the
achievement of spending targets. The debt ratio, which was close
to 40% of GDP in 2007/08, is now expected to rise to almost 70% of
GDP by the end of the program period.

In view of the Commission assessment, the United Kingdom is
invited to (i) proceed in financial year 2009/10 with the stimulus
measures consistent with the European Recovery Plan while avoiding
any further deterioration of public finances; (ii) strengthen the
pace of budgetary consolidation from 2010/11 onwards to ensure a
rapid correction of the excessive deficit; (iii) define a fiscal
framework consistent with an improvement of the long-term
sustainability of its public finances.


* BOOK REVIEW: Corporate Recovery - Managing Cos. in Distress
-------------------------------------------------------------
Authors: Stuart Slatter and David Lovett
Publisher: Beard Books
Softcover: 352 pages
List Price: US$34.95
Review by Henry Berry

According to the authors, "turnaround management is everyday
management."  There are no miraculous remedies for bringing a
company out of its troubles; no formulas to apply that will
guarantee recovery.  Management has to be alert and flexible to
adapt to ever-changing business conditions both outside and within
a company.

Although turnaround management (or "crisis management" as the
authors also call it) is often regarded as a specialized type of
management or a gifted set of management skills, Slatter and
Lovett argue that any good manager should have the skills to be
able to move his or her company toward recovery.  Managers often
fail because they do not recognize or acknowledge the warning
signs of a crisis, not because they lacked the relevant management
skills.

Corporate Recovery does not teach managers how to become "crisis
managers."  While the book does provide guidance on what
management skills are required if a company slips into a crisis,
for the most part the authors take a broader view.  Crisis
management involves applying traditional management techniques in
an environment where the patient is seriously ill, both cash and
time are in short supply, and rapid recovery is required.  The
authors suggest that these same skills are necessary when a
company has been acquired and is inevitably undergoing some
changes, improvement of short-time financial performance is
sought, and a company is trying to head off a crisis rather than
pull itself out of one.

The authors give attention to both external and internal factors
and their interrelationship.  The reader is taken chapter by
chapter through all of the stages of distress in a company, from
early warning signs through pervasive problems to moving onto
solid ground and emerging from a turnaround.  The book does not
offer merely an academic analysis of the distinguishing factors of
each stage.  The authors provide relevant, effective action for
each stage of distress.  Different stages require different
actions.  Under circumstances of distress, the enthusiasm and
morale that are signs of a healthy company in normal times cannot
fix the causes of the problems.  Ordinary leadership skills such
as setting a good example and inspiring loyalty will not effect a
turnaround.  Fundamental in a successful turnaround is the actions
taken by a company's key decisionmakers.  Only they are in a
position to make the crucial decisions that can bring an
organization out of distress.

Corporate Recovery is an incomparable guide for managers of
companies in distress.  The book brings clarity to what is often a
clouded, disturbing, and stressful situation, even for the most
experienced decisionmakers.  This book can help an organization's
decisionmakers ward off or minimize hazards to its well being.
For ones who find themselves already in worrisome crisis
situations, it can be an invaluable handbook, no matter what stage
of the crisis.

Slatter is founding member of the Society of Turnaround
Professionals.  He works with corporations on turnarounds and
provides training for managers and executives.  Lovett has
extensive experience in turnarounds and heads his own firm helping
companies improve their operations and financial performance and
restore or increase corporate value.

                            *********

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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