TCREUR_Public/090316.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

            Monday, March 16, 2009, Vol. 10, No. 52

                            Headlines

A U S T R I A

AUSTRIAN AIRLINES: To Reduce Staff Working Hours to Cut Expenses


B E L G I U M

DEXIA SA: EU Conducts In-Depth Probe on Proposed Restructuring
DEXIA SA: Fitch Downgrades Individual Rating to 'C/D'
FORTIS NV: Will Skip Dividend on Fortis Bank Related Loss


F R A N C E

FCI INTERNATIONAL: Moody's Cuts Corporate Family Rating to 'B1'


G E R M A N Y

CONTINENTAL AG: Closing Two Plants on Dire Market Trend
E D H T SCHWEISSTECHNIK: Claims Registration Period Ends March 30
KIFFE HAMM: Claims Registration Period Ends April 15
KS BAUTRAGER: Claims Registration Period Ends April 28
MARSEILLE-KLINIKEN AG: S&P Lowers Corporate Credit Rating to 'B+'

PRIME 2006-1: Fitch Junks Ratings on Class D and E Notes
STAGE MEZZANINE: Fitch Downgrades Rating on Class B Notes to 'BB'
ZWEIGLE TEXTILPRUEFMASCHINEN: Claims Registration Ends April 24


H U N G A R Y

* HUNGARY: Trade Deficit Widens to EUR191.6 Mln in January


I C E L A N D

* ICELAND: Hawkpoint to Lead Negotiations with Banking Creditors


I R E L A N D

AER LINGUS: EUR107.8 Mln Full Year Loss Prompts Ryanair's Action
DUNCANNON CRE: S&P Removes 5 Low-B-Rated Notes from Watch Negative
ELVA FUNDING: Fitch Lowers Rating on US$10 Million Notes to 'D'
IBOND SECURITIES: S&P Cuts Ratings on Two Unleveraged Trades to B
PRINCIPLES RETAIL: Irish Unit Goes Into Liquidation

WHITE TOWER: S&P Cuts Ratings on Class D and E Notes to Low-B


I T A L Y

IT HOLDING: Moody's Withdraws Ratings for Business Reasons

* ITALY: Economy Contracted 1.9% in 4th Qtr


K A Z A K H S T A N

ASPARA LTD: Creditors Must File Claims by April 17
BAYTEREK JSC: Creditors Must File Claims by April 17
BIR OIL: Creditors Must File Claims by April 17
KARAULTOBE LLP: Creditors Must File Claims by April 17
KAZAKH DISTRIBUTION: To Default on Domestic Bond Coupon Due Today

KERUEN ARMAN: Creditors Must File Claims by April 17
KSM-2005 LLP: Creditors Must File Claims by April 17
MEL PROM LLP: Creditors Must File Claims by April 17
NIET JSC: Creditors Must File Claims by April 17
SV HOLDING LLP: Creditors Must File Claims by April 17

VOSHOD-2030 LLP: Creditors Must File Claims by April


K Y R G Y Z S T A N

GLOBAL INTERNATIONAL: Creditors Must File Claims by March 27


R O M A N I A

DELTA DISTRIBUTION: Draws Up Three-Year Reorganization Plan


R U S S I A

INTEKO: Seeks RUR49 Bln in State Guarantees for Debt Refinancing
INTERNATIONAL BANK: S&P Gives Neg. Outlook; Keeps 'B-/C' Ratings
RAIL LEASING: Fitch Cuts Long-Term Issuer Default Rating to 'RD'
UC RUSAL: Alfa Bank Wants US$1 Billion Debt Paid


S P A I N

MADRID ACTIVOS: Moody's Reviews Ba3 Rating on Class E Notes


S W I T Z E R L A N D

LEHMAN BROTHERS: Court Dismisses Swiss Unit's Chapter 11 Case


U K R A I N E

AKANT LLC: Creditors Must File Claims by March 25
APEKS LLC: Creditors Must File Claims by March 25
ARTPLAST GROUP: Creditors Must File Claims by March 25
ECOLITOS LLC: Creditors Must File Claims by March 25
EOL-DON LLC: Creditors Must File Claims by March 22

GENERALI GARANT: Moody's Reviews 'Ba3' Insurer Strength Rating
INTERBAHNHOF LLC: Creditors Must File Claims by March 25
NARDIN LLC: Creditors Must File Claims by March 25
PLUS FIVE: Court Starts Bankruptcy Supervision Procedure
SPECIAL SIMINSTALLATION: Creditors Must File Claims by March 25

ULADOVKA LLC: Creditors Must File Claims by March 22


U N I T E D   K I N G D O M

AP DRIVELINE: Sold to Raicam; 167 Jobs Secured
CHROME FUNDING: Moody's Corrects Rating Actions on Tranches
CLAYMORE LUBRICANTS: Appoints Joint Administrators from PKF
ELAN LIMITED: Fitch Cuts Rating on US$30 Million Notes to 'D'
EUROPEAN MEDIATION: Court to Hear Winding-Up Petition on May 5

EXCHANGE INSURANCE: A.M. Best Changes Final Strength Rating to 'E'
GATE HAUS: Appoints Joint Administrators from PwC
GLAMPAK LIMITED: Assets Sold to Calpack Limited
ITV PLC: Mulls Rights Issue; Mr. Grade's Position Questioned
KINMEL BAY: Brings in Joint Administrators from Deloitte

LOCKLEY STAINLESS: In Administration; Deloitte Appointed
LLOYDS BANKING: UKSA Forms Shareholder Action Group
MOCKINGBIRD DISTRIBUTION: Appoints Joint Administrators from BDO
SAVEKERS LIMITED: Goes Into Administration; 34 Jobs Affected
WINDERMERE XI: Fitch Junks Ratings on Class D and E Notes

* BOND PRICING: For the Week March 9 to March 13, 2009


                         *********


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


AUSTRIAN AIRLINES: To Reduce Staff Working Hours to Cut Expenses
----------------------------------------------------------------
The Associated Press reports that Austrian Airlines said Wednesday
last week it will reduce the working hours of 2,600 employees
starting next month to cut expenses.

The report relates the company said in a statement the cost-
cutting measure, which is expected to last at least six months,
will take effect April 1.

According to the report, those affected -- all ground personnel
-- will see either a 20 percent reduction in working hours and a
10 percent pay cut, or a 10 percent reduction in working hours and
a 5 percent pay cut.

However, the report notes trainees, part-time employees and staff
who make less than EUR1,100 (US$1,407) will be exempt.

On Feb. 9, 2009, citing Reuters, the Troubled Company Reporter-
Europe reported that Austrian state holding company and key
Austrian Airlines shareholder OeIAG warned the Austrian flag
carrier could go insolvent if a planned takeover by Germany's
Lufthansa falls through.

"We are fighting hard to avoid drifting towards insolvency,"
Reuters quoted OeIAG Chief Executive Peter Michaelis as saying.
"However, I cannot rule out that possibility."

AUA, Reuters disclosed, will be seeking the European Commission's
approval on a EUR500 million (US$562 million) state aid that is
part of the Lufthansa deal.

Reuters noted that according to Mr. Michaelis, a restructuring of
AUA or a possible insolvency would be more expensive for Austrian
taxpayers than the state aid.

            Privatization and Restructuring Probe

As reported in the Troubled Company Reporter-Europe, The European
Commission on February 11, 2009, decided to open the formal
investigation procedure into the privatization and restructuring
of Austrian Airlines whereby it will be taken over by Lufthansa.
The Commission expresses doubts that the price to be paid by
Lufthansa reflects the market price for what is being sold, that
the Austrian State has acted as private investor and whether the
restructuring plan as notified is in accordance with the Community
framework for rescue and restructuring of firms in difficulty.

Following a privatization procedure Lufthansa has been selected to
buy the Austrian State's stake (41.56%) in Austrian Airlines.  The
deal comprises three elements:

    * Lufthansa pays a purchase price of EUR366.268,75

    * the State receives a debtor warrant, which may lead to an
      additional payment

    * the State pays a grant of EUR500 million, which Lufthansa
      will use for a capital increase in Austrian Airlines.

The Commission has decided to open the investigative State aid
procedure as it has doubts concerning existence of State aid and
whether this State aid can be declared compatible with the common
market.  In particular, it has doubts whether the price paid
(including the debtor warrant) reflects the market price for
Austrian Airlines at the time it was sold.  And it has doubts also
whether the sale was truly open, transparent and unconditional and
whether the State really acted as a market economy investor.

With regard to the compatibility of the aid, the Commission has
doubts on whether the amount of the aid has been kept to a minimum
and whether the restructuring plan submitted by Austria will
restore the long-term viability of the company in the shortest
possible time and without the need for additional aid in the
future.  Therefore, having examined this restructuring plan, the
Commission questions certain elements of this plan and whether
these meet the criteria for authorization of restructuring aid as
set out in the Commissions guidelines for rescue and restructuring
of firms in difficulty.  Furthermore, the Commission has doubts if
the compensatory measures proposed are sufficient to remedy the
market distortion of the aid vis-à-vis the competing airlines and
whether Austrian Airlines and Lufthansa will contribute
sufficiently to the restructuring.

The decision follows a separate but related Commission decision of
January 19, 2009 whereby the Commission authorized a guarantee on
a loan worth EUR200 million of rescue aid for Austrian Airlines.


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


DEXIA SA: EU Conducts In-Depth Probe on Proposed Restructuring
--------------------------------------------------------------
The Financial Times reports the European Commission has began an
in-depth investigation into a proposed restructuring of Dexia SA
and its planned EUR6.4 billion (US$8.2 billion) capital injection,
to ensure that EU state aid rules are not being breached.

According to FT, it was accepted in late November that a
restructuring plan for Dexia would be needed when the commission
agreed to rescue aid, in the form of a state guarantee of up to
EUR150 billion from the Belgian, French and Luxembourg
governments.  This has now been submitted, triggering the
commission’s in-depth probe, the FT says.

On Friday, the FT relates, Brussels also approved in principle a
guarantee from Belgium and France to cover Dexia's potential
losses from its lossmaking US subsidiary Financial Security
Assurance Inc., although it reserved the right to look at this in
greater detail during the investigation.

According to Bloomberg News, in November, Chief Executive Officer
Pierre Mariani agreed to sell the company's unprofitable U.S.
Bond-insurance unit to Assured Guaranty Ltd. for US$722 million.
The bond-insurance unit contributed EUR2.03 billion to Dexia's
fourth-quarter loss, Bloomberg News disclosed.  The bank plans to
complete the sale of the bond insurer at the beginning of the
second quarter, the news agency said.

As reported in the Troubled Company Reporter-Europe on Mar. 3,
2009, Dexia incurred a EUR2.6 billion loss (US$3.31 billion) in
the fourth-quarter of 2008 compared with a net income of EUR587
million in the same period a year earlier.

In the third quarter of 2008, Dexia incurred a net loss of
EUR1,544 million, reflecting a major negative impact from the
financial crisis of EUR2,191 million.

According to Bloomberg News, Dexia received EUR6.4 billion from
France, Belgium and Luxembourg in September to avert a collapse.
To help save EUR200 million in 2009, Dexia said Jan. 30. it is
cutting 900 jobs, or about 3 percent of its staff, Bloomberg News
said.

Bloomberg News said Dexia also plans to:

   --- take less risk in its trading activities
       and concentrate them in Brussels and Dublin;

   --- stop public finance operations in Australia,
       eastern Europe, Mexico and Scandinavia and
       cut lending to local governments in the U.K.
       and the U.S.; and

   --- keep its Slovakian unit as well as public
       finance operations in Italy and Iberia.

                          About Dexia SA

Dexia SA -- http://www.dexia.com/-- is a Belgian bank specialized
in retail banking and local public finance.  The Bank offers a
range of banking services for individual customers, small and
medium-sized enterprises and institutional clients.  It has four
divisions: Asset Management, Personal Financial Services, Treasury
and Financial Markets, and Investor Services.  The Asset
Management division offers products ranging from traditional and
alternative funds to socially responsible investments.  The
Personal Financial Services segment focuses on banking and
insurance products, including both life and non-life insurance
products.  Through its Treasury and Financial Markets division,
Dexia is present in the capital markets and provides support to
the entire Group.  The Investor Services segment offers various
services to shareholders, such as fund and pension administration.
Through its subsidiaries, Dexia SA is active in over 30 countries,
including Belgium, Luxembourg, Slovakia, Turkey, France, Australia
and Japan.


DEXIA SA: Fitch Downgrades Individual Rating to 'C/D'
-----------------------------------------------------
Fitch Ratings has downgraded the Individual rating of Dexia and
its three core operating subsidiaries - Dexia Credit Local, Dexia
Bank Belgium and Dexia Banque Internationale a Luxembourg - to 'C/
D' from 'C' and placed them on Rating Watch Negative.  At the same
time, the agency has affirmed their Long- and Short-term Issuer
Default Ratings at 'AA-' ('AA minus') and 'F1+' respectively.  The
Outlook on the Long-term IDR remains Stable. The Support Rating of
'1' and Support Rating Floor of 'AA-' ('AA minus') have also been
affirmed.  Hybrid securities have been downgraded to 'BB+' from
'BBB+' and remain on Rating Watch Negative.  The rating actions
have no impact on the 'AAA' rating of the covered bonds of Dexia
nor on the 'AA+' rating of Dexia issues jointly but not severally
guaranteed by the states of France, Belgium and Luxembourg.

The rating actions taken on Dexia's Individual Rating reflect the
agency's concerns on the group's future earnings capacity given
the new operating environment with scarce liquidity, difficult
capital markets and weaker economic environment.  These concerns
are accentuated by Dexia's focus on low margin businesses in
competitive markets.  The Negative Watch is expected to be
resolved once a thorough review of the bank's amended business and
risk profiles has been conducted.  In 2008, Dexia reported a
sizeable EUR3.3 billion net loss, including a EUR1.7 billion loss
booked on the disposal of the insurance activities of its US-based
financial guarantor subsidiary, Financial Security Assurance Inc.
While Dexia still owns the Financial Products activity of FSA, it
is expected to benefit from a guarantee from the French and
Belgian states currently under final discussions with the European
Commission; this would leave Dexia with a residual risk of about
EUR2 billion.  However, this residual risk is already fully taken
into account in Dexia's solvency ratios as it is 1250%-weighted in
the capital adequacy ratio calculation.  Tier 1 ratio was 10.6% at
end-2008.  Dexia implemented a 'transformation plan' late 2008,
which should de-risk and de-leverage its balance sheet in the
coming years.

The Long- and Short-term IDRs of Dexia and its three above-
mentioned subsidiaries continue to be underpinned by their Support
Rating floors of 'AA-'.  In addition to the above-mentioned
guarantee, Dexia received EUR6 billion of capital from Belgium,
France and certain core shareholders in 2008.  Dexia is now
majority controlled by the public sector.  The Support Rating
floor is based on Fitch's judgement of a potential supporter's
propensity to support a bank and of its ability to do so.

The rating action taken on Dexia's hybrid securities reflect
Fitch's view that the risk of coupon deferral has materially
increased as the bank is government-controlled and earnings are
likely to remain under pressure in the current operating
environment.  This is in line with the agency's methodology on the
rating of hybrid capital published in July 2005 which states that
banks whose ratings are driven by support have their hybrid
ratings determined by the level of their Individual rating.

Dexia is the Belgian-based publicly quoted company of the Dexia
group and fully controls the group's three main banks: Dexia
Credit Local in France, Dexia Bank Belgium and Dexia Banque
Internationale a Luxembourg.  As such, as well as being one of the
largest providers of public finance in Europe, it is one of the
main retail banks in Belgium and Luxembourg.

Dexia

  -- Long-term IDR affirmed at 'AA-', Outlook Stable

  -- Short-term IDR affirmed at 'F1+'

  -- Individual rating downgraded to 'C/D' from 'C', placed on
     Rating Watch Negative

  -- Support rating affirmed at '1',

  -- Support Rating Floor affirmed at 'AA-'

Dexia Credit Local

  -- Long-term IDR affirmed at 'AA-', Outlook Stable

  -- Senior debt affirmed at 'AA-'

  -- Subordinated debt affirmed at 'A+'

  -- Hybrid securities downgraded to 'BB+' from 'BBB+', remains on
     Rating Watch Negative

  -- Short-term IDR affirmed at 'F1+'

  -- Commercial Paper affirmed at 'F1+'

  -- Individual rating downgraded to 'C/D' from 'C', placed on
     Rating Watch Negative

  -- Support rating affirmed at '1',

  -- Support Rating Floor affirmed at 'AA-'

Dexia Banque Internationale a Luxembourg

  -- Long-term IDR affirmed at 'AA-', Outlook Stable

  -- Short-term IDR affirmed at 'F1+'

  -- Senior debt affirmed at 'AA-'

  -- Subordinated debt affirmed at 'A+'

  -- Hybrid securities downgraded to 'BB+' from 'BBB+', remains on
     Rating Watch Negative

  -- Commercial Paper affirmed at 'F1+'

  -- Individual rating downgraded to 'C/D' from 'C', placed on
     Rating Watch Negative

  -- Support rating affirmed at '1',

  -- Support Rating Floor affirmed at 'AA-'

Dexia Bank Belgium

  -- Long-term IDR affirmed at 'AA-', Outlook Stable

  -- Short-term IDR affirmed at 'F1+'

  -- Senior debt affirmed at 'AA-'

  -- Subordinated debt affirmed at 'A+'

  -- Individual rating downgraded to 'C/D' from 'C', placed on
     Rating Watch Negative

  -- Support rating affirmed at '1'-Support Rating Floor affirmed
     at 'AA-'

Dexia Funding Luxembourg

  -- Hybrid securities downgraded to 'BB+' from 'BBB+', remains on
     Rating Watch Negative

Dexia Funding Netherlands

-- Senior debt affirmed at 'AA-'
-- Subordinated debt affirmed at 'A+'

Dexia Financial Products

-- Commercial Paper affirmed at F1+

Dexia Delaware LLC

-- Commercial Paper affirmed at F1+


FORTIS NV: Will Skip Dividend on Fortis Bank Related Loss
---------------------------------------------------------
Reuters reports Fortis SA/NV said in a statement Sunday it will
not be able to pay a dividend for 2008 after it had a net loss of
EUR22.5 billion (US$28.96 billion) last year mainly due to Fortis
Bank.

According to Reuters, Fortis Bank expected to post a net loss of
about EUR6 billion (US$7.55 billion) for the fourth quarter of
2008, EUR1 billion higher than its January forecast of EUR5
billion, and had already announced losses set to total some EUR20
billion for last year.

Reuters relates Fortis SA/NV said the solvency of its operational
insurance activities was "in no way affected" by the losses and
said the solvency of its operating companies remained "more than
adequate."

As reported in the Troubled Company Reporter-Europe on March 10,
2009, Fortis agreed with BNP Paribas SA and the Belgian State to
revise, for the second time, terms of a plan to break up its
business.

According to Reuters, under the new agreement, BNP Paribas is
poised to buy 75 percent of Fortis Bank subject to Fortis group
shareholders agreeing to the deal at meetings planned on April 8
and 9.  The shareholders blocked the previous terms of this deal
last month, Reuters says.

As reported in the Troubled Company Reporter-Europe, the Brussels
Court of Appeals, in January, blocked an agreement for BNP Paribas
to buy all of Fortis's insurance unit because it wasn't approved
by Fortis shareholders.

On December 12, the Brussels Court of Appeal ruled in favor of a
group of shareholders seeking to block the carve-up of Fortis by a
trio of governments and the sale of assets to France's BNP
Paribas.

In September, Belgium, along with the Netherlands, and Luxembourg,
agreed to inject EUR11.2 billion into Fortis after its shares
slumped amid concerns about the company's solvency.  The deals
left Fortis with only its international insurance business, a 66%
stake in a EUR10.4 billion portfolio of structured credit products
and financial assets and liabilities of various financing
vehicles.

The bank's deal then with Belgium involved subsequent transfer of
75% of the Belgian state's 100% interest in Fortis to BNP Paribas.
Under that original deal, BNP Paribas will also acquire 100% of
Fortis Insurance Belgium for a total consideration of EUR5.73
billion in cash.

The Brussels Court ordered a shareholder vote before Feb. 12 for
the transaction to proceed and said the government would have to
pay a fine of EUR5 billion to shareholders if it sold Fortis
before the vote.

The Court also appointed a panel of experts to review the proposed
dismantling of Fortis.

                       About Fortis holding

Fortis holding (Fortis SA/NV and Fortis N.V.) consists of (1)
Fortis Insurance Belgium (2) Fortis Insurance International, and
(3) financial assets and liabilities of various financing
vehicles.  The international insurance activities (Fortis
Insurance International) are located in the UK, France, Hong Kong,
Luxembourg (Non-Life), Germany, Turkey, Russia, Ukraine and in
joint ventures in Luxembourg (Life), Portugal, China, Malaysia,
India and Thailand.  Fortis holding is not involved in banking
activities.

                        About Fortis N.V.

Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers.  The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance.  The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners.  In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited.  As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited.  In July 2008, the Company sold International Asset
Management Limited (IAM).

                          *     *     *

As reported by the Troubled Company Reporter on Oct. 9, 2008,
Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V.
long term issuer ratings to Baa2 from Baa1, and the ratings were
placed under review for possible downgrade.  Debt ratings
benefiting from subordinated and preferred guarantees from the
joint holding companies were downgraded to Baa3 and Ba1
respectively.  Certain securities benefiting from joint and
several guarantees from the holding companies and Fortis ASR
Levensverzkering N.V. were confirmed at Baa3 with a developing
outlook.  Moody's also downgraded the insurance financial strength
rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from
A3, and the backed senior unsecured debt of Fortis Capital (Asia)
Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1.  These
ratings now carry a developing outlook.  The Group's CP rating was
affirmed at P-2 and placed under review for possible downgrade.


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F R A N C E
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FCI INTERNATIONAL: Moody's Cuts Corporate Family Rating to 'B1'
---------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of FCI International S.A.S to B1 from Ba3.  The probability of
default rating was downgraded to B2 from B1, and the bank facility
ratings were downgraded to B1 from Ba3.  The ratings outlook
remains negative.

The downgrades reflect Moody's concerns over the continuing
deterioration in FCI's operating performance, and the potential
impact on the company's liquidity profile.  Operating performance
began to deteriorate in Q4 2008 and is now affecting each of FCI's
divisions.  The global severe downturn in the automotive industry
and, to a lesser extent, reduced consumer demand in the
electronics division are materially reducing group Ebitda.  Recent
numbers indicates that FCI's electrical and micro-connectors
divisions, which had continued to grow up to the end of 2008, now
also generate lower Ebitda compared to the same period in 2008.

Although FCI is reducing its costs, capex and working capital to
improve its cash flow position, the severity of the global
economic downturn and the possible extent of Ebitda reduction mean
that FCI could be free cash flow negative through 2009 --although
current restructuring efforts and costs being incurred should help
alleviate poor market conditions.  However, forward visibility in
FCI's end-user markets remains extremely limited.

All FCI's external financial debt is bank loans. Some limited
amounts are due for repayment in 2009.  Although the major Tranche
B repayments of about EUR480 million -- exact amounts subject to
EUR/US$ fluctuation -- are not due until 2013, the company
anticipates repayment of about EUR36 million in each of 2010, 2011
and 2012. FCI's available liquidity is evenly split between cash
and its undrawn bank revolver.  However, a situation of ongoing
negative free cash flow would correspondingly increase liquidity
pressure.  The bank facilities have covenants that are typical for
LBO transactions, and these may also come under some pressure in
2009 should Ebitda remain below the company's expectations.

The ongoing negative outlook reflects Moody's continued
uncertainty over when FCI's operating performance and cash flow
might stabilize, and the liquidity pressures that the company
could face this year.  Further rating action may follow if there
is further pressure on the company's liquidity profile, either
through continued negative free cash flow or through potential
covenant breaches.

The last credit rating announcement for FCI was on December 15,
2008, when the outlook was changed to negative from stable.

FCI, based in Versailles, France, is the world's fourth largest
connector manufacturer with 2007 revenue of EUR1.33 billion.  In
2005, Bain Capital acquired FCI in an LBO for a total
consideration of EUR934 million.


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G E R M A N Y
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CONTINENTAL AG: Closing Two Plants on Dire Market Trend
-------------------------------------------------------
Continental AG said some 780 employees will be affected as it
moves to discontinue commercial vehicle tire production at its
plant in Hanover, Germany.  The plant has a capacity of 1.4
million units as of December 31, 2009.

The company will also reduce production at its plant in Puchov,
Slovakia by 20%.

Both moves will lower commercial vehicle tire production
throughout Europe by a total of 27 percent.

In Clairoix, France, Continental will end production at its tire
factory there, affecting 1,120 employees.  The plant has the
highest production costs of any passenger tire factory in Europe,
according to the company.  Continental aims to reduce yearly PLT
production capacity at the plant by 8 million units and would
be completely discontinued by March 31, 2010.

A steep drop in original equipment sales and a marked
deterioration on replacement markets have resulted in production
overcapacities for passenger and commercial vehicle tires, the
company said in a March 11 statement.

In view of the steadfastly dire market trend, the company expects
that its tire plants in Europe alone will fall roughly 15 million
passenger car and approximately 1.7 million commercial vehicle
tires short of full capacity utilization in 2009.

"In the fourth quarter of 2008, the commercial vehicle original
equipment tire business declined by 20% in Europe.  This trend has
accelerated dramatically in the first two months of the current
year.  The European commercial vehicle tire replacement market
likewise plummeted by over 15% in the last quarter of 2008.  The
European original equipment business in the passenger tire sector
declined by 20% in the fourth quarter of 2008 and by even more
than 30% in the first two months of the current year.  The
passenger tire replacement market also shows a considerable
weakening of demand," Dr. Hans-Joachim Nikolin, Continental
Executive Board member in charge of the tire divisions, said.

                            Net Loss

As reported in the Troubled Company Reporter-Europe on Feb. 23,
2009, Continental incurred a net loss of EUR1,123.5 million in
full year 2008 from a net income of EUR1,020.6 million in 2007
primarily as a result of goodwill impairment.

The increase in raw material prices also had a negative impact of
approximately EUR325 million in 2008 compared with the average
prices for 2007, the company said in a Feb. 19 statement.

Consolidated sales in 2008 increased 45.8% to EUR24,238.7 million
compared with sales of EUR16,619.4 million for the same period in
2007, due chiefly to the company's acquisition of Siemens VDO.

                        No 2008 Dividend

Due to the net loss it incurred for the year, Continental said it
won't be paying any dividend for fiscal 2008.

                         Credit Ratings

As reported in the Troubled Company Reporter-Europe on Feb. 25,
2009, Moody's Investors Service downgraded Continental AG's
corporate family rating to Ba2 from Ba1.  The outlook on the
ratings remains negative.

On Feb. 6, 2009, the TCR-EUR reported Fitch Ratings downgraded
Continental AG's Long-term Issuer Default and senior unsecured
ratings to 'BB' from 'BB+'.  The Short-term IDR was affirmed at
'B'.  At the same time the Long- term IDR and senior unsecured
ratings have been removed from Rating Watch Negative.  The Outlook
on the Long-term IDR is Negative.

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

                      About Continental AG

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


E D H T SCHWEISSTECHNIK: Claims Registration Period Ends March 30
-----------------------------------------------------------------
Creditors of E.D.H.T. Schweisstechnik GmbH have until March 30,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on April 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 Giessen
         Hall 415
         Building B
         Gutfleischstrasse 1
         35390 Giessen
         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. Hans Joerg Laudenbach
         Carlo Mierendorff Strasse 15
         35398 Giessen
         Germany
         Tel: 0641/98292-18
         Fax: 0641/98292-16

The District Court opened bankruptcy proceedings against the
company on Feb. 24, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         E.D.H.T. Schweisstechnik GmbH
         Gallusstrasse 7
         35305 Gruenberg
         Germany

         Attn: Wolfgang Elies, Manager
         Ringstrasse 4
         76571 Gaggenau
         Germany


KIFFE HAMM: Claims Registration Period Ends April 15
----------------------------------------------------
Creditors of Kiffe Hamm Beteiligungs GmbH have until April 15,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:45 a.m. on April 2, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Dr. Christoph Schulte-Kaubruegger
         Koenigswall 21
         44137 Dortmund
         Germany

The District Court opened bankruptcy proceedings against the
company on March 5, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Kiffe Hamm Beteiligungs GmbH
         Attn: Manfred Martens, Manager
         Werler Str. 171-177
         59063 Hamm
         Germany


KS BAUTRAGER: Claims Registration Period Ends April 28
------------------------------------------------------
Creditors of KS Bautrager GmbH have until April 28, 2009, to
register their claims with court-appointed insolvency manager.

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

The meeting of creditors will be held at:

         The District Court of Leipzig
         Hall 145
         Enforcement Court
         Bernhard Goering Strasse 64
         04275 Leipzig
         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. Florian Stapper
         Karl-Heine-Strasse 16
         04229 Leipzig
         Germany
         Tel: 0341/984110
         Telefax: 0341/9841111
         E-mail: leipzig@stapper-korn.de

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

The Debtor can be reached at:

         KS Bautrager GmbH
         Breitenfelder Str. 9
         04150 Leipzig
         Germany

         Attn: Hasan Canakci, Manager
         Frischer Mut 10
         68305 Mannheim
         Germany


MARSEILLE-KLINIKEN AG: S&P Lowers Corporate Credit Rating to 'B+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Germany-based private health-care
provider Marseille-Kliniken AG to 'B+' from 'BB-', owing to its
still highly leveraged financial profile, which is incompatible
with the 'BB' rating category.  The outlook is stable.

The rating action reflects S&P's view that Marseille is unlikely
to meet S&P's ratio guideline of 5.5x adjusted debt-to-earnings
before interest, taxes, depreciation, and amortization, and rents
(EBITDAR) for the 'BB' rating category by its fiscal year-end on
June 30, 2009.  By the end of December 2008, Marseille's debt-to-
EBITDAR ratio was about 7x, compared with about 8x in 2007.  "We
believe that in the current recessionary environment in Germany,
the company is likely to achieve fiscal year-end credit metrics
far below the levels typical of a 'BB-' rating," said Standard &
Poor's credit analyst Olaf Toelke.

In addition, in S&P's opinion Marseille's intended divestiture of
the company's rehabilitation division is also likely to be delayed
by current market trends.

The rating continues to reflect S&P's view of Marseille's well-
established position in highly fragmented markets and the
predictable growth in future nursing-care needs.  The market is,
however, subject to regulation, public price-setting, and
reimbursement negotiations with public welfare and insurance
funds.

Marseille, based in Berlin, is one of Germany's few private
nursing-care and rehabilitation service providers.  It generated
sales of EUR117 million in the first half of its fiscal year
(July-December 2008), up by 6%.

"The stable outlook reflects S&P's view on Marseille's well-
established and growing position in the difficult, regulated
German private nursing-care market," said Mr. Toelke.  "It also
reflects our belief that Marseille will continue to improve its
credit metrics in the near term."

The outlook further reflects S&P's assumption that any incremental
debt will not lead to a deterioration of credit metrics, allowing
the company to strengthen both its free cash flow generation and
its capital base.


PRIME 2006-1: Fitch Junks Ratings on Class D and E Notes
--------------------------------------------------------
Fitch Ratings has downgraded PRIME 2006-1 Funding Limited
Partnership's notes due August 2015 and removed them from Rating
Watch Negative:

  -- EUR115,099,978.24 Class A notes (ISIN: XS0278567994):
     downgraded to 'BBB-' (BBB minus) from 'AAA'; removed from
     RWN, assigned a Stable Outlook,

  -- EUR15,000,000 Class B notes (ISIN: XS0278569776): downgraded
     to 'BB' from 'AA'; removed from RWN, assigned a Stable
     Outlook,

  -- EUR20,000,000 Class C notes (ISIN: XS0278570519): downgraded
     to 'B' from 'A'; removed from RWN, assigned a Stable Outlook,

  -- EUR13,900,000 Class D notes (ISIN: XS0278571756): downgraded
     to 'CCC' from 'BBB'; removed from RWN, assigned 'RR5',

  -- EUR13,000,000 Class E notes (ISIN: XS0278572135): downgraded
     to 'CCC' from 'BB'; removed from RWN, assigned 'RR5'.

This transaction is a cash securitization of two types of
subordinated loan agreements to German medium-sized enterprises.
One type of the loan agreements features a loss participation
mechanism, whereas the other incorporates a deferral option for
fixed annual interest.  The notes were initially placed on RWN on
October 9, 2008 to reflect the potential for downgrades as a
result of Fitch's new Global Rating Criteria for Corporate CDOs
(published on April 30, 2008).  The downgrade action taken
reflects the effect of these new criteria as well as the negative
credit migration in the portfolio since closing in December 2006.

A special feature of this transaction is its high single obligor
concentration.  The largest exposure accounts for 7.8% of the
portfolio amount and the top five obligors for 39.1% of the
portfolio, making this transaction the most concentrated among
German mezzanine SME CLOs.  Based on the credit enhancement and
excess spread available, class E or class D notes could absorb the
default of the two largest obligors (15.6%), class C notes could
absorb the three largest obligors (23.4%), class B notes the four
largest obligors (31.3%) and class A notes could absorb the
default of the five largest obligors (39.1%).

As of the review in March 2009, based on the latest portfolio
information available, the portfolio shows a significant downward
rating migration since closing in December 2006.  As indicated by
originators' internal ratings, there have been 18 downgrades
(thereof four severe downgrades), five affirmations and five
upgrades.  One obligor comprising 1.3% of the portfolio did not
make full interest payment on the last payment date in September
2008 due to insufficient distributable equity.

Notwithstanding the overall pool deterioration, there have been no
defaults, no reductions of notional due to loss participations,
and no deferrals of fixed annual interest since closing.  One loan
agreement representing 2.3% of the initial portfolio has been
terminated and fully prepaid, and the resulting entry in the
principal deficiency ledger (PDL) was reduced to zero on the last
payment date in September 2008.

The securitized debt instruments comprising the portfolio are
deeply subordinated. As a result, Fitch assumes no recovery in its
analysis.  In addition to default simulations using its Portfolio
Credit Model, Fitch has performed cash-flow analysis to stress
possible interest rate and default timing patterns.  The structure
is most sensitive to front-loaded default timing.  The transaction
benefits from excess spread and a principal deficiency mechanism
for excess spread trapping.  However, in high stress scenarios the
excess spread trapping is limited due to the PDL positioning after
interest payments to class A to E noteholders as well as interest
and principal repayment of the working capital loan.  The
influence of interest rate changes is limited due to an interest
rate hedge referencing the performing portfolio balance.  Based on
the analysis, the credit enhancement derived from both
subordination and excess spread was not sufficient to justify the
previous ratings of the notes.


STAGE MEZZANINE: Fitch Downgrades Rating on Class B Notes to 'BB'
-----------------------------------------------------------------
Fitch Ratings has downgraded StaGe Mezzanine Societe en Commandite
Simple's notes, due December 2013, and removed them from Rating
Watch Negative:

  -- EUR112.8 million class A notes (ISIN: XS0257999176):
     downgraded to 'A-'(A minus) from 'AAA'; removed from RWN,
     assigned a Stable Outlook,

  -- EUR20 million class B notes (ISIN: XS0258004190): downgraded
     to 'BB' from 'A'; removed from RWN, assigned a Stable
     Outlook.

This transaction is a cash securitization of subordinated loans to
German medium-sized enterprises.  The notes were initially placed
on RWN on July 10, 2008 to reflect the potential for downgrades as
a result of Fitch's new Global Rating Criteria for Corporate CDOs
(published on April 30, 2008).  The downgrade action taken
reflects the effect of these new criteria as well as the
deterioration in the portfolio since closing in June 2006.

As of the review in March 2009, based on the latest portfolio
information available, the portfolio contained 46 performing
obligors.  The largest exposure accounted for 5.3% of the
performing portfolio amount and the top five obligors 24% of the
portfolio.  Based on the credit enhancement and excess spread
available, class B notes could absorb the default of borrowers on
the five largest loans, and class A notes could withstand the
default of obligors on the eight largest exposures, amounting to
34% of the current pool notional.

Since closing in June 2006, there have been two insolvencies
amounting to EUR15 million.  In addition, two other loan
agreements with total notional of EUR5 million have been
terminated and fully prepaid.  As a result of these insolvencies
and terminations, there have been four principal deficiency events
amounting to EUR20 million or 11.4% of the initial portfolio
balance.  The balance of the principal deficiency ledger was fully
repaid as of the December 2008 payment date.  One further loan
agreement amounting to EUR6 million was terminated in February
2009 due to the liquidation of the respective company without full
prepayment and a debit of EUR6 million to the principal deficiency
ledger will be made on the March 2009 payment date.  However, the
recovery proceeds of EUR3.3 million will be applied on the March
2009 payment date towards the reduction of the principal
deficiency ledger in accordance with the priority of payments.

Overall, in Fitch's view, the portfolio has deteriorated.  In
addition to the two insolvencies and the liquidated company
mentioned above, several companies on the issuer's monitoring list
are experiencing financial difficulties ranging from liquidity
constraints to restructuring.

The securities debt instruments comprising the portfolio are
deeply subordinated.  As a result, Fitch assumes no recovery in
its analysis.  In addition to default simulations using its
Portfolio Credit Model, Fitch has performed cash-flow analysis to
stress possible interest rate and default timing patterns.  The
structure is most sensitive to front-loaded default timing.  The
transaction benefits from excess spread and a principal deficiency
mechanism for excess spread trapping.  The influence of interest
rate changes is limited due to an interest rate hedge referencing
the performing asset balance.  Based on the analysis, the credit
enhancement derived from both subordination and excess spread was
not sufficient to justify the previous ratings of the notes.


ZWEIGLE TEXTILPRUEFMASCHINEN: Claims Registration Ends April 24
---------------------------------------------------------------
Creditors of Zweigle Textilprüfmaschinen GmbH & Co. KG have until
April 24, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on May 26, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Tuebingen
         Room 1.01
         Branch Office
         Schulberg 14
         72074 Tuebingen
         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:

         Beate Goehring
         Schubertstr. 25
         72800 Eningen u.A.
         Germany
         Tel: 07121/988211
         Fax: 07121/988219

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

The Debtor can be reached at:

         Zweigle Textilprüfmaschinen GmbH & Co. KG
         Ferdinand-Lasalle-Strasse 54
         72770 Reutlingen
         Germany

         Attn: Frank Molfenter, Manager
         Kanzleistrasse 43
         72764 Reutlingen
         Germany


=============
H U N G A R Y
=============


* HUNGARY: Trade Deficit Widens to EUR191.6 Mln in January
----------------------------------------------------------
Zoltan Simon at Bloomberg News reports Hungary's trade deficit
widened in January from the same month the previous year as the
country entered a recession, cutting exports more than imports.

Citing preliminary data from the country's statistics office, the
report says the shortfall was EUR191.6 million (US$244.8 million),
compared with a gap of EUR79.4 million in the previous month and a
deficit of EUR93.3 million in the year-earlier period.

The country's exports in January plummeted 31 percent from a year
earlier in euro terms, while imports declined 28.9 percent, the
report relates.

According to the report, Hungary's economy contracted an annual
2.3 percent in the fourth quarter and has been in a recession
since the third quarter.  The government expects the economy to
shrink as much as 3.5 percent this year, the report says.


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


* ICELAND: Hawkpoint to Lead Negotiations with Banking Creditors
----------------------------------------------------------------
The Government of Iceland has taken steps to strengthen and
streamline the process of negotiations between the three new banks
created in the wake of the collapse of the main Icelandic
commercial banks (Glitnir, Kaupthing and Landsbanki) and the
creditors of the old banks.

On behalf of the Government, as owner, and the new banks, the
Ministry of Finance will lead and coordinate these negotiations.
The Ministry has hired Thorsteinn Thorsteinsson, an experienced
former banker, to lead this process.

The Ministry has also appointed Hawkpoint, the London-based
corporate advisory firm, to lead the negotiations on the
Government's behalf with representatives of the old banks'
creditors.

The objectives of the Government of Iceland in these negotiations,
inter alia, are:

    * To ensure appropriate treatment of creditors in all three
      old banks including transparency and timely flow of
      information in the negotiation process.

    * The application of international best practices.

    * To secure a stable post-settlement Icelandic banking system
      that will be able to fulfil its obligations under the
      compensation instruments to be issued by the new banks.

    * To engage in regular consultation and cooperation with the
      old banks' Resolution Committees and their advisors to take
      account of their views.

    * To seek an agreement that secures approval of the creditors
      and will facilitate regaining access to the international
      capital markets for the Government of Iceland and the new
      banks.

The negotiations and structuring of the compensation between the
new banks and old banks will utilize the detailed valuation
exercises currently being conducted by Deloitte and Oliver Wyman.


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


AER LINGUS: EUR107.8 Mln Full Year Loss Prompts Ryanair's Action
----------------------------------------------------------------
Aer Lingus Group Plc incurred a EUR107.8 million (US$136.5
million) net loss in 2008 compared with net income of EUR105.3
million in 2007 after a EUR141 million one-time expense to cover
employee severance packages and the cost of defeating Ryanair
Holdings Plc's takeover offer.  The company's earnings was also
hurt by deteriorating consumer sentiment, currency fluctuations,
restructuring costs and higher fuel prices.

Revenue in 2008 rose 5.6 percent to EUR1.36 billion.  The company
aims to save about EUR52 million this year from a cost-cutting
drive including freezing salaries.

The airline warned it may not meet its previous forecast of a pre-
tax profit in 2009.  The Wall Street Journal relates to maintain
volumes, Aer Lingus predicted 2009 revenue will fall, average
fares will drop by at least 10% and cargo revenue is expected to
decline as much as 30% from a year earlier.

Chief Financial Officer Sean Coyle told the Journal in an
interview that the trans-Atlantic market is "the weakest part of
our business" and was under review, but said he wasn't yet sure if
the airline would cut flights or reduce fares.

Aer Lingus's strategy now was to roll out short-haul bases in the
U.K. and Continental Europe, Mr. Coyle said as cited by the
Journal.

                    Ryanair to File Complaint

Bloomberg News reports Ryanair, the largest investor in Aer
Lingus, said it plans to make a formal complaint to the London and
Irish stock exchanges about "misleading" advice given by the
carrier to shareholders in regulatory filings about its
profitability.

A forecast of profitability was "false," Ryanair said as cited by
the news agency.

In August 2007, Ryanair increased its stake in Aer Lingus to
approximately 29.4%.

Chief Executive Officer Dermot Mannion told reporters he's
"absolutely confident" the airline didn't mislead investors,
Bloomberg News relates.

Bloomberg News recalls Aer Lingus fended off a second takeover
attempt by Ryanair in January.

                   About Aer Lingus Group Plc

Dublin, Ireland-based Aer Lingus Group Plc (ISE:AERL) ---
http://www.aerlingus.com/--- and its subsidiaries operate as a
low fare airline primarily providing passenger and cargo
transportation services from Ireland to the United Kingdom and
Europe (short haul) and also to the United states (long haul).
The Company also provides cargo transportation services on its
passenger aircraft, primarily on its long-haul routes, as well as
a range of ancillary services to its passengers.


DUNCANNON CRE: S&P Removes 5 Low-B-Rated Notes from Watch Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class X and RCF notes issued by Duncannon CRE CDO I PLC.  S&P
also affirmed and removed from CreditWatch negative all other
classes in the transaction.

These rating actions follow the actions taken on Dec. 22, 2008,
and from S&P's detailed review of the portfolio's performance.

Given the portfolio's exposure to junior debt and the U.K.
property market, if real estate values and financing continue to
worsen, further rating actions could be taken.

S&P expects to publish a full transaction update in the coming
weeks.
                           Ratings List

                      Duncannon CRE CDO I PLC
    EUR808.75 Million Senior and Mezzanine Deferrable-Interest
                        Floating-Rate Notes

                         Ratings Lowered

                                Ratings
                                -------
        Class        To                   From
        -----        --                   ----
        X            AA                   AAA
        RCF          AA                   AAA

      Ratings Affirmed and Removed from CreditWatch Negative

                                Ratings
                                -------
        Class        To                   From
        -----        --                   ----
        A            AA                   AA/Watch Neg
        B            A                    A/Watch Neg
        C-1          BBB                  BBB/Watch Neg
        C-2          BBB-                 BBB-/Watch Neg
        D-1          BB+                  BB+/Watch Neg
        D-2          BB                   BB/Watch Neg
        D-3          BB-                  BB-/Watch Neg
        E-1          B                    B/Watch Neg
        E-2          B-                   B-/Watch Neg


ELVA FUNDING: Fitch Lowers Rating on US$10 Million Notes to 'D'
---------------------------------------------------------------
Fitch Ratings has downgraded Elva Funding Plc's Series 2007-1
US$10 million secured credit-linked floating-rate notes, due June
2014 (ISIN: XS0293094008), to 'D' from 'C' following confirmation
that the notes have been completely written down due to credit
events in the underlying portfolio.

Fitch expects no recovery on the notes.


IBOND SECURITIES: S&P Cuts Ratings on Two Unleveraged Trades to B
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
six series of unleveraged index trades issued by iBond Securities
PLC.

Following downgrades and CreditWatch placements of entities in the
underlying reference portfolios, the portfolio weighted-average
rating has been lowered on the various notes issued by iBond
Securities.  This rating does not address the likelihood of loss.
However, S&P note that iBond Securities series 6A has suffered a
default in the reference portfolio.

Index trades can be leveraged or unleveraged. In general,
unleveraged index trades have a probability of loss that is worse
than at the 'CCC–' rating level.  S&P does not make any
distinction between investment grade and speculative grade
indices, thus, for unleveraged index trades S&P assigns the
portfolio weighted-average rating, which indicates the "average
credit quality" to which an investor in an index is exposed.

The analysis of a leveraged trade is identical to a typical
synthetic collateralized debt obligation.

The ratings on the notes issued by iBond Securities are
specifically linked to the performance of a static pool of
corporate names from the iBoxx and iTraxx 100 index.  The iBoxx
100 index is part of the iBoxx group of indices and the iTraxx 100
index is part of the iTraxx group of indices.

                          Ratings List

                       iBond Securities PLC

                          Ratings Lowered


      EUR500 Million iBoxx Corporate Component Floating-Rate
              Credit-Linked Secured Notes, Series 4B

                               Rating
                               ------
                        To             From
                        --             ----
                        BB+            BBB-

     EUR500 Million iBoxx Diversified Component Floating-Rate
               Credit-Linked Secured Notes, Series 4C

                               Rating
                               ------
                        To             From
                        --             ----
                        BBB-           BBB

    EUR250 Million iBoxx Crossover Floating-Rate Credit-Linked
                     Secured Notes, Series 4D

                               Rating
                               ------
                        To             From
                        --             ----
                        B+             BB+

     EUR500 Million iTraxx Europe Floating-Rate Credit-Linked
                      Secured Notes Series 5A

                               Rating
                               ------
                        To             From
                        --             ----
                        BB+            BBB

        EUR500 Million iTraxx Europe Crossover Fixed-Rate
               Credit-Linked Secured Notes Series 5C

                               Rating
                               ------
                        To             From
                        --             ----
                        B              BB-

        EUR500 Million iTraxx Europe Crossover Fixed-Rate
              Credit-Linked Secured Notes Series 6A

                               Rating
                               ------
                        To             From
                        --             ----
                        B              BB-


PRINCIPLES RETAIL: Irish Unit Goes Into Liquidation
---------------------------------------------------
Principles Retail Ireland Limited (PRIL), the Irish unit of UK-
based Principles Retail Limited, has gone into liquidation,
resulting in the loss of 216 jobs, Breakingnews.ie reports.

The report relates the High Court on Thursday approved the
appointment of David Carson of Deloitte as provisional liquidator
to PRIL.

Principles Retail Limited operates 32 outlets in the Republic of
Ireland, the report states.

              Buyer Not Found for Parent Firm

On March 10, 2009, the Troubled Company-Reporter Europe, citing
The Associated Press, reported that administrators for Principles
Retail Limited failed to find a buyer for the chain, putting
as many as 2,300 jobs at risk.

"Given current market conditions, we have been unable to find a
suitable buyer to take the business on as a going concern," the AP
quoted Lee Manning, joint admininstrator, as saying.
"Unfortunately there will be significant redundancies over the
coming weeks."

The AP disclosed Mr. Manning said 66 of the company's stores will
close.  According to the joint administrator, 110 head office
staff have already lost their jobs, the AP noted.

Mr. Manning, as cited by the AP, said Debenhams department store
chain will be taking on most of the company's stock, as well as
121 concessions within its stores.  He added further 172
concessions in other locations will also continue to operate "for
the time being".

The Principles brand trades from over 400 outlets of which 94 are
single stores and the remainder concession outlets.

As reported in the Troubled Company Reporter-Europe, on March 2,
2009, Neville Kahn, Lee Manning and Phil Bowers of Deloitte, the
business advisory firm, were appointed joint administrators over
Mosaic Fashions Limited, Mosaic Fashions Finance Limited and a
number of other Group companies, including:

    * Warehouse Fashion Limited
    * Oasis Stores Limited
    * Coast Stores Limited
    * Karen Millen Limited
    * Anoushka G Fashions Limited
    * Principles Retail Limited
    * The Shoe Studio Group


WHITE TOWER: S&P Cuts Ratings on Class D and E Notes to Low-B
-------------------------------------------------------------
Following a review of the White Tower Europe 2007-1 PLC CMBS
transaction, Standard & Poor's Ratings Services has lowered the
ratings on the class D and E notes.  The ratings on the other
notes issued by White Tower Europe 2007-1 are currently
unaffected.

These rating actions reflect S&P's concerns over the
creditworthiness and maturity profile of some of the loans in the
pool.  S&P will be publishing a full transaction update shortly.

                           Ratings List

                  White Tower Europe 2007-1 PLC
  EUR349.55 Million Commercial Mortgage-Backed Floating-Rate Notes

                         Ratings Lowered

                    Class       To         From
                    -----       --         ----
                    D           BB         BBB
                    E           B          BB

Classes D and E are subject to an available funds cap mechanism.


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


IT HOLDING: Moody's Withdraws Ratings for Business Reasons
----------------------------------------------------------
Moody's Investors Service has withdrawn the ratings of IT Holding
S.p.A. Moody's has withdrawn the company's ratings for business
reasons.  Moody's notes that on 24 February 2009 the Italian
Minister of Economic Development placed IT Holding S.p.A. and its
main subsidiaries into administration, "Amministrazione
straordinaria", according to the Italian law.  This decision
follows the filing announced on February 9, 2009 for
"amministrazione straordinaria" of ITTIERRE S.p.A., one of the
main operating subsidiaries of the group.

These ratings are withdrawn:

  -- Corporate family rating at Ca
  -- Probability of default rating at D
  -- Senior subordinated rating at C (LGD5, 70%)

The last rating action on IT Holding was on February 9, 2009, when
Moody's downgraded the company's Probability of Default Rating to
D from Ca and the Senior Secured rating on the EUR185 million
notes due 2012 issued by IT Holding Finance S.p.A. from Ca to C.

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


* ITALY: Economy Contracted 1.9% in 4th Qtr
-------------------------------------------
Italy's economy shrank 1.9 percent in the fourth quarter from the
previous quarter, Lorenzo Totaro at Bloomberg News reports citing
data from Rome-based statistics office Istat.

Sales of Italian goods abroad fell 7.4 percent, investment dropped
6.9 percent and consumer spending contracted 0.6 percent, Istat
said as cited by the report.

State pension and welfare agency INPS meanwhile said on March 10
that the number of Italians seeking unemployment benefits in
January and February rose more than 46 percent from the same
period of 2008 to 370,561, the report relates.


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


ASPARA LTD: Creditors Must File Claims by April 17
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Aspara Ltd. insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

          Gogol St. 177a
          Kostanai
          Kostanai
          Kazakhstan

The Court is located at:

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


BAYTEREK JSC: Creditors Must File Claims by April 17
----------------------------------------------------
JSC Joint-Stock Investment Fund of Immovables Real Estate Bayterek
has declared insolvency.  Creditors have until April 17, 2009, to
submit written proofs of claim to:

          Husainov St. 225-321
          Almaty
          Kazakhstan


BIR OIL: Creditors Must File Claims by April 17
-----------------------------------------------
LLP Bir Oil Company has declared insolvency.  Creditors have until
April 17, 2009, to submit written proofs of claim to:

          Turkebaev St. 143
          Almaty
          Kazakhstan
          Tel: 8 (7272) 91-72-24


KARAULTOBE LLP: Creditors Must File Claims by April 17
------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Karaultobe insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Chapaev St. 2
         Podstepnoye
         Terektinsky district
         West Kazakhstan
         Kazakhstan
         Tel: 8 (71132) 36-4-72

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan
         Seifullin St. 37
         Uralsk
         West Kazakhstan
         Kazakhstan


KAZAKH DISTRIBUTION: To Default on Domestic Bond Coupon Due Today
-----------------------------------------------------------------
Reuters' Olzhas Auyezovl reports that the Kazakh Stock Exchange
said Thursday last week Kazakh Distribution Company would not be
able to pay a semiannual coupon on its KZT1 billion (US$6.6
million) bond due today, March 16.

Reuters, citing the stock exchange, discloses KDC promised to pay
the amount by March 31.

"The payment... will be made by March 31 due to the current
crisis," KDC said in a statement obtained by Reuters.

KDC is a food and beverages retailer.


KERUEN ARMAN: Creditors Must File Claims by April 17
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Keruen Arman 2004 insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Gogol St. 177a
         Kostanai
         Kazakhstan

The Court is located at:

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


KSM-2005 LLP: Creditors Must File Claims by April 17
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP KSM-2005 insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Tauelsyzdyk St. 53
         Taldykorgan
         Almaty
         Kazakhstan


MEL PROM LLP: Creditors Must File Claims by April 17
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Kostanai Mel Prom insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

          Rabochaya St. 186
          Kostanai
          Kostanai
          Kazakhstan
          Tel: 8 (7172) 38-80-98

The Court is located at:

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


NIET JSC: Creditors Must File Claims by April 17
------------------------------------------------
JSC Joint-Stock Investment Fund of Risk Invest Niet has declared
insolvency.  Creditors have until April 17, 2009, to submit
written proofs of claim to:

          Husainov St. 225-321
          Almaty
          Kazakhstan


SV HOLDING LLP: Creditors Must File Claims by April 17
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP SV Holding insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Auelbekov St. 139a-228
         Kokshetau
         Akmola
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Gorky St. 37
         Kokshetau
         Akmola
         Kazakhstan


VOSHOD-2030 LLP: Creditors Must File Claims by April
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Voshod-2030 insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

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


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


GLOBAL INTERNATIONAL: Creditors Must File Claims by March 27
------------------------------------------------------------
Creditors of LLC Global International Asia Co. Ltd. have until
March 27, 2009, to submit proofs of claim to:

         Molodaya Gvardiya ave. 2/1
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 65-11-65


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


DELTA DISTRIBUTION: Draws Up Three-Year Reorganization Plan
-----------------------------------------------------------
Catalin Lupoaie at ZF.ro reports that Romanian ceramic tile
distributor Delta Distribution has drawn up a reorganization plan
after having been declared insolvent.

Under the three-year plan, the company will give up its low-price
segment that will result in a 30% drop in turnover this year to
RON105 million, the report discloses.  In 2008 the company had a
turnover worth some RON150 million (EUR40 million), flat from
2007.

The company, which has closed six stores as part of the plan,
intends to shed around 100 jobs, the report notes.

The report recalls in late January Austria-based ceramic tile
producer Lasselsberger filed an insolvency petition against Delta
Distribution, seeking repayment of around EUR10 million of the
company's debts.


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


INTEKO: Seeks RUR49 Bln in State Guarantees for Debt Refinancing
----------------------------------------------------------------
Inteko, a construction company owned by Russia's richest woman
Yelen Baturina, is seeking RUR49 billion (US$1.4 billion) in state
guarantees as it struggles to refinance its spiraling debt, RIA
Novosti reports citing business daily Kommersant.

The report discloses according to Kommersant, Inteko owes around
RUR34 billion (US$970 million) to banks, mainly to Sberbank,
Gazprombank, the Bank of Moscow, and VTB, and needs another RUR15
billion (US$428 million) for working capital financing.

The report notes a large part of Inteko's debt has formed as a
result of stakes bought by the company in major state-controlled
companies, including  Gazprom, Sberbank, and oil company Rosneft,
using bank loans.  The report recalls in 2006 the stakes were
valued at US$3.15 billion but have since lost much of their value,
resulting in large margin calls.

The report relates Kommersant said the company's request for state
guarantees has been submitted to the Economics Ministry.  Ms.
Baturina is offering to hand over part of her company's assets to
the state if the  bailout is agreed, the report discloses citing
Kommersant.


INTERNATIONAL BANK: S&P Gives Neg. Outlook; Keeps 'B-/C' Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Russia-based International Bank of Saint-Petersburg to negative
from stable.  At the same time, S&P affirmed the 'B-/C' long and
short-term counterparty credit ratings and 'ruBBB-' Russia
national scale rating on the bank.

"The outlook revision reflects the deteriorated operating
environment in which IBSP operates, putting pressure on its
financial profile and performance," said Standard & Poor's credit
analyst Ekaterina Trofimova.

While all Russian banks are exposed to similar conditions, the
risks that IBSP faces S&P believes are exacerbated through its
limited customer franchise, high single-name concentration, low
capitalization, and financial flexibility.  These negative rating
factors are only partially mitigated by IBSP's good name
recognition in its home region of St. Petersburg, sizeable liquid
assets, moderate market risk, and foreign-currency denominated
loans.

The ratings reflect the bank's stand-alone credit profile, and do
not factor in extraordinary external support -- either from its
owner or the government.

IBSP ranks among Russia's 70 largest banks, with reported total
assets of RUR40.5 billion (US$1.4 billion) on December 31, 2008.

The negative outlook integrates the worsening operating
environment for IBSP and the ensuing pressure on its financial
profile and performance.

"We could lower the ratings on IBSP if in particular conditions
deteriorate to a greater degree than S&P currently expect, and
especially if liquidity erodes significantly," said Ms. Trofimova.

Near-term ratings upside appears remote to us, at least until S&P
see domestic market pressures ease considerably.  Any potential
upward rating action or outlook revision to stable, all other
things being equal, would also be based on IBSP's demonstrated
ability to withstand market conditions, improve capitalization and
profitability, and reduce single-name concentrations to closer to
levels at peers.


RAIL LEASING: Fitch Cuts Long-Term Issuer Default Rating to 'RD'
----------------------------------------------------------------
Fitch Ratings has downgraded Russia-based Rail Leasing's Long-term
Issuer Default Rating to 'RD' from 'C'.

The downgrade follows RL's payment default on a bank loan, which
the company is currently trying to restructure.  The rating of the
company will remain on 'RD' until RL has restructured the
obligation on which it defaulted and, in Fitch's opinion, is able
to comply with new terms negotiated with its creditors.

Rail Leasing was established in 2004 under its original name VKM
Leasing.  The company specializes in the finance leasing of
wagons.  The company is indirectly owned by three individuals, two
of whom are senior managers of RL.

The rating actions are:

  -- Long-term foreign currency IDR: downgraded to 'RD' from 'C'
  -- Short-term foreign currency IDR: downgraded to 'D' from 'C'


UC RUSAL: Alfa Bank Wants US$1 Billion Debt Paid
------------------------------------------------
Bloomberg News reports Alfa Bank, Russia's biggest private lender,
is seeking to recover about US$1 billion of debt from companies
controlled by Oleg Deripaska after rejecting a payment moratorium
that other banks agreed to.

The report relates Mr. Deripaska's United Company RUSAL, an
aluminum producer, on March 6 reached a so-called standstill
agreement to stop repayments for two months on US$7.4 billion of
loans from more than 70 banks.

Last month, the report recalls the Island of Jersey's Royal Court
froze GBP13.7 million (US$19 million) of assets belonging to EN+,
the Jersey-based company through which Mr. Deripaska controls
Rusal.

The lawsuit in Jersey was filed by an Alfa Bank unit, Amsterdam
Trade Bank NV, the report says.

EN+ spokesman Petr Lidov meanwhile told Bloomberg News by phone
from Moscow that the company is in talks with the Alfa Bank unit
that filed the suit in Jersey.

                      2-Month Debt Reprieve

As reported in the Troubled Company Reporter-Europe on March 10,
2009, RUSAL said it has signed a standstill agreement in relation
to the restructuring of its debt to the international lending
banks.  The standstill will be effective for a period of two
months with the possibility of extension for a further month and
will provide RUSAL with additional liquidity.

The agreement covers more than 30 transactions, including
syndicated and bi-lateral loan agreements, bank guarantees and
letters of credit, which involve more than 70 banks, according to
the statement.

The agreement obtained support from majority of RUSAL's
international lending banks and Russian lenders as well, the
company's statement said.

At present, RUSAL's debt is US$14 billion, including US$7.4
billion owed to its international banks.

Credit Suisse Group, BNP Paribas SA, Merrill Lynch & Co., ABN Amro
Holding NV, Citigroup Inc., Natixis, Commerzbank AG, ING Groep NV
and Calyon are among Rusal’s creditors, according to data compiled
by Bloomberg.

In December 2008, RUSAL initiated a dialogue with its
international lending banks who formed a coordinating committee to
continue discussions with the Company and its advisers about
potential amendments of the Company's credit facilities in view of
the situation in the aluminum market.

The agreement follows RUSAL's recent comprehensive program
designed to reduce costs, optimize the production process, cut
production costs and increase the overall efficiency of the
business.

"We are pleased that our lenders have endorsed our pro-active
steps to address the exceptional trading conditions and the
current global economic crisis.  The agreement highlights the
long-term support that exists for RUSAL amongst the international
banks and the Russian financial community and demonstrates the
constructive nature of the ongoing negotiations between RUSAL and
its lenders," said Oleg Deripaska, the CEO of RUSAL.

                        About UC RUSAL

Headquartered in Moscow, Russia, United Company RUSAL --
http://www.rusal.com/-- is an aluminum producer.  Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite.  Its aluminum business
include packaging and foil operations in addition to a network of
smelters.  Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit.  RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.


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


MADRID ACTIVOS: Moody's Reviews Ba3 Rating on Class E Notes
-----------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the ratings of five classes of Notes issued by Madrid
Activos Corporativos I Fondo de Titulizacion de Activos, a static
Balance Sheet collateralized loan obligation transaction.

The rating actions reflect the revision of certain key assumptions
that the agency uses to rate and monitor corporate CDOs.  These
revised assumptions incorporate Moody's expectation that European
corporate default rates are likely to greatly exceed their
historical long-term averages and reflect the heightened
interdependence of credit markets in the current European economic
contraction.

Specifically, the changes announced include: (1) a 30% increase in
the assumed likelihood of default for corporate credits in CDOs
and (2) an increase in the default correlation applied to
corporate portfolios as generated through a combination of higher
default rates and increased asset correlations.

These revised assumptions are described in greater detail in the
press release published on January 15, 2009.  Moody's notes that
the European corporate loan sector currently has a negative
outlook and has shown signs of increasing weakness in terms of
credit performance.  The sector is further stressed by the
anticipated limited refinancing opportunities for EMEA non-
financial corporate issuers over the next six to twelve months.

The rating actions are:

  -- Class A notes, Placed on Review for Possible Downgrade;
     previously on 26 February 2008 assigned Aaa

  -- Class B notes, Placed on Review for Possible Downgrade;
     previously on 26 February 2008 assigned Aa3

  -- Class C notes, Placed on Review for Possible Downgrade;
     previously on 26 February 2008 assigned A1

  -- Class D notes, Placed on Review for Possible Downgrade;
     previously on 26 February 2008 assigned Baa2

  -- Class E notes, Placed on Review for Possible Downgrade;
     previously on 26 February 2008 assigned Ba3


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


LEHMAN BROTHERS: Court Dismisses Swiss Unit's Chapter 11 Case
-------------------------------------------------------------
Judge James Peck of the U.S. Bankruptcy Court for the Southern
District of New York dismissed the Chapter 11 case of Lehman
Brothers Finance AG, also known as Lehman Brothers Finance SA.

In an order dated March 12, 2009, Judge Peck said that the
commencement of LBF's Chapter 15 case and the recognition of its
bankruptcy proceeding in Switzerland as a foreign main proceeding
warrant the dismissal of its Chapter 11 case.

Judge Peck held that the lawsuit filed by Declan Kelly in October
2008 against LBF will continue to be administered by the Court in
connection with LBF's Chapter 15 case and the Chapter 11 cases of
Lehman Brothers Holdings Inc. and its units.

Prior to the entry of the order, Millennium International, Ltd.,
asked the Court to deny PwC's motion arguing that LBF is not
entitled to recognition as a foreign main proceeding pursuant to
Section 1517(b) of the U.S. Bankruptcy Code.

Millennium asserted that continuing LBF's Chapter 11 case will be
far more efficient and cost effective so that the U.S. Bankruptcy
Court can, among others, address claims objections and disputes
over the interpretation of LBF's English language contracts,
rather than subjecting creditors to the Swiss Proceeding
conducted in German.

Millennium, an investment fund incorporated under the laws of the
Cayman Islands, is a party to an ISDA transaction with LBF.

PwC, in response to Millennium's objection, maintained that LBF's
Chapter 11 case should be dismissed and its Swiss Proceeding
should be recognized as a foreign main proceeding.  PwC related
that LBF managed its affairs from its headquarters in
Switzerland, where its primary assets were booked and operations
were undertaken.

PwC asserted that Millennium will not be prejudiced by the
immediate entry of the recognition order because the recognition
order can be modified or terminated if it is shown that the
grounds for granting it were fully or partially lacking or have
ceased to exist.  Moreover, PwC said Millennium has already filed
a claim in the Swiss proceeding.

                    Lehman Brothers' Collapse

Founded in 1850, Lehman Brothers Holdings Inc. --
http://www.lehman.com-- was the fourth largest investment bank in
the United States, offering a full array of financial services in
equity and fixed income sales, trading and research, investment
banking, asset management, private investment management and
private equity.  Its worldwide headquarters in New York and
regional headquarters in London and Tokyo are complemented by a
network of offices in North America, Europe, the Middle East,
Latin America and the Asia Pacific region.

Lehman filed for chapter 11 on Sept. 15, 2008 (Bankr. S.D.N.Y.
Case No. 08-13555) after Barclays PLC and Bank of America Corp.
backed out of a deal to acquire the company, and the U.S. Treasury
refused to provide financial support that would have eased out a
sale.  Lehman's bankruptcy petition listed US$639 billion in
assets and US$613 billion in debts, effectively making the firm's
bankruptcy filing the largest in U.S. History.  Several affiliates
filed bankruptcy petitions thereafter.

On Sept. 19, 2008, Lehman Brothers, Inc., was placed in
liquidation pursuant to the provisions of the Securities Investor
Protection Act (Case No. 08-CIV-8119).  James W. Giddens was
appointed trustee for the SIPA liquidation of the business of LBI.

Lehman Brothers Finance AG, aka Lehman Brothers Finance SA, filed
a petition under Chapter 15 of the U.S. Bankruptcy Code on
February 10, 2009.  Lehman Brothers Finance, a subsidiary of
Lehman Brothers Inc., estimated both its assets and liabilities at
more than $1 billion.

LBHI's U.S. bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, has been placed into administration,
together with Lehman Brothers Ltd., LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to wind down the business of LBI
(Europe) on Sept. 15, 2008.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.  The
two units have combined liabilities of JPY4 trillion --
US$38 billion.  Akio Katsuragi, a former Morgan Stanley executive,
runs Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited suspended
operations upon the bankruptcy filing of their U.S. counterparts.

                           Asset Sales

Barclays Bank Plc has acquired Lehman's North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.  Nomura Holdings Inc., the
largest brokerage house in Japan, on Sept. 22 reached an agreement
to purchased Lehman Brothers Holdings, Inc.'s operations in Europe
and the Middle East less than 24 hours after it reached a deal to
buy Lehman's operations in the Asia Pacific for US$225 million.
Nomura paid only US$2 dollars for Lehman's investment banking and
equities businesses in Europe, but agreed to retain most of
Lehman's employees.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)


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


AKANT LLC: Creditors Must File Claims by March 25
-------------------------------------------------
Creditors of LLC Akant (EDRPOU 30729105) have until March 25,
2009, to submit proofs of claim to M. Titarenko, Insolvency
Manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 44/395.

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 Akant
         Sosiura St. 68
         02090 Kiev
         Ukraine


APEKS LLC: Creditors Must File Claims by March 25
-------------------------------------------------
Creditors of LLC Apeks (EDRPOU 34294760) have until March 25,
2009, to submit proofs of claim to M. Titarenko, Insolvency
Manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 44/423.

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 Apeks
         Office 15
         Konstantinovskaya St. 54
         04071 Kiev
         Ukraine


ARTPLAST GROUP: Creditors Must File Claims by March 25
------------------------------------------------------
Creditors of LLC Artplast Group (EDRPOU 31751970) have until
March 25, 2009, to submit proofs of claim to:

         S. Tregubenko
         Insolvency Manager
         Office 81
         Krasnopolskaya St. 3-a
         04080 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No B18/015-09.

The Court is located at:

         The Economic Court of Kiev
         Komintern Street 16
         01032 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Artplast Group
         Industrial place 'Karat' 2
         Novie Petrovtsy
         Vyshgorod
         07354 Kiev
         Ukraine


ECOLITOS LLC: Creditors Must File Claims by March 25
----------------------------------------------------
Creditors of LLC Ecolitos (EDRPOU 35745095) have until March 25,
2009, to submit proofs of claim to Insolvency Manager L.
Moskalenko.

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 2/7-09-249.

The Court is located at:

         The Economic Court of Odessa
         Shevchenko Avenue 29
         65019 Odessa
         Ukraine

The Debtor can be reached at:

         LLC Ecolitos
         Lustdorf Road St. 114
         65101 Odessa
         Ukraine


EOL-DON LLC: Creditors Must File Claims by March 22
---------------------------------------------------
Creditors of LLC Eol-Don (EDRPOU 33966908) have until March 22,
2009, to submit proofs of claim to:

         J. Karaush
         Insolvency Manager
         Tumanian Boulevard 21/3
         83077 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 42/105-b.

The Court is located at:

         The Economic Court of Donetsk
         Artem Street 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Eol-Don
         Zhmura St. 1
         83007 Donetsk
         Ukraine


GENERALI GARANT: Moody's Reviews 'Ba3' Insurer Strength Rating
--------------------------------------------------------------
Moody's Investors Service has announced that it placed Ukrainian
insurer Generali Garant on review for a possible downgrade.  The
reviews affects the Baa2 local currency insurance financial
strength rating, the Ba3 foreign currency IFSR and the Aaa.ua
National scale rating.

The review reflects the recent action on the Ukraine Sovereign
ratings on 24th February when the foreign and local currency
government bond ratings (B1) and the foreign currency country
ceilings for bonds (Ba3) and bank deposits (B2) where placed on
review for possible downgrade.  The review also reflects concerns
about the standalone strength of Generali Garant and the worsening
business environment in the Ukraine, and to some extent the
support factored into the rating from Generali Garant's owners,
which include Assicurazioni Generali (rated Aa3 IFSR).

In terms of the stand-alone strength of Generali Garant, Moody's
said that although exposure has reduced in recent years, Generali
Garant does invest in local stock and investment markets and has
seen losses during 2008 where the Ukraine stock market has fallen
by approximately 76%.  In addition, Generali Garant's largest line
of business, as in most non-life insurers in the Ukraine, is motor
insurance, and the liquidity freeze in the Ukraine bank sector has
curtailed lending for new cars which is a significant driver of
motor insurance premium.  Moody's review for Generali Garant's
stand-alone strength therefore focus on capitalization and the
extent to which this may deteriorate further through additional
asset impairments.  In addition, the ability of the company to
absorb a period of falling premium volumes, whilst maintaining
insurance profitability, will be a core element to Moody's review.

In terms of the supported rating, Moody's notes that Generali has
entered into agreements on future transfer of its ownership of
Generali Garant from Generali Holding Vienna to Generali PPF
Holding B.V. as part of the consolidation of all its CEE and CIS
business operations under one holding company.  Generali PPF
Holding B.V. is owned 51% by Assicurazioni Generali and 49% by PPF
Col B.V. Nevertheless, the transaction is not yet in force and
Generali Garant is ultimately controlled by Assicurazioni Generali
through Generali Holding Vienna AG at the moment.  While Generali
is committed to Ukraine as a region, in Moody's opinion this
change could reduce the ability of Generali to inject further
capital into Generali Garant while not diluting the ownership
percentages of the 3rd parties.  On a positive side, Moody's notes
the reinsurance support Generali provides and the Generali name
being taken by Generali Garant.  Moody's review will evaluate the
extent to which support from Generali is likely to continue to be
extended to Generali Garant, given the changes in ownership
described above.

Generali Garant published audited IFRS statements up to 2006 . It
continues to publish audited Ukrainian GAAP statements and reports
internally to Generali using a modified form of IFRS.  Disclosure
under local GAAP is not so transparent in comparison with IFRS,
and valuation of some asset classes differs significantly from
IFRS.

These ratings were placed on review for possible downgrade:

* Generali Garant -- local currency insurance financial strength
  rating of Baa2;

* Generali Garant -- foreign currency insurance financial strength
  rating of Ba3;

* Generali Garant -- national scale rating of Aaa.ua

The last rating action was on December 9, 2008 when the Ba3
foreign currency rating of Generali Garant has confirmed with a
Stable outlook and the Baa2 local currency rating was affirmed
with a Negative outlook

Based in Kiev, Ukraine, Generali Garant is ultimately controlled
by Assicurazioni Generali SpA.  In 2007, Generali Garant reported
Gross Premiums Written of UAH527.8 million compared to UAH360.6
million in 2006.  Shareholders' equity under local GAAP was
UAH83.5 million as at December 31, 2007.


INTERBAHNHOF LLC: Creditors Must File Claims by March 25
--------------------------------------------------------
Creditors of LLC Interbahnhof (EDRPOU 35830599) have until
March 25, 2009, to submit proofs of claim to A. Eschenko,
Insolvency Manager.

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 2/6-09-248.

The Court is located at:

         The Economic Court of Odessa
         Shevchenko avenue 29
         65019 Odessa
         Ukraine

The Debtor can be reached at:

         LLC Interbahnhof
         Lustdorf road St. 114
         65101 Odessa
         Ukraine


NARDIN LLC: Creditors Must File Claims by March 25
--------------------------------------------------
Creditors of LLC Nardin (EDRPOU 35564140) have until March 25,
2009, to submit proofs of claim to:

         O. Tomashevsky
         Insolvency Manager
         Office 72
         Rabochaya St. 7
         Nikolayev
         Ukraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 5/63/09.

The Court is located at:

         The Economic Court of Nikolayev
         Admiralskaya Street 22-a
         54009 Nikolayev
         Ukraine

The Debtor can be reached at:

         LLC Nardin
         Office 26
         Svetlaya St. 14
         Nikolayev
         Ukraine


PLUS FIVE: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------
The Economic Court of Lugansk commenced bankruptcy supervision
procedure on LLC Plus Five (EDRPOU 31444917).

The Temporary Insolvency Manager is:

         A. Bokhan
         Yunosti St. 11
         Teplogorsk
         Lugansk
         Ukraine

The Court is located at:

         The Economic Court of Lugansk
         Great Patriotic War Square 3a
         91000 Lugansk
         Ukraine

The Debtor can be reached at:

         LLC Plus Five
         Pervaya Slavianskaya St. 1v
         91031 Lugansk
         Ukraine


SPECIAL SIMINSTALLATION: Creditors Must File Claims by March 25
---------------------------------------------------------------
Creditors of LLC Special Siminstallation (EDRPOU 00855243) have
until March 25, 2009, to submit proofs of claim to Insolvency
Manager O. Lutsik.

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 2/8-09-281.

The Court is located at:

         The Economic Court of Odessa
         Shevchenko Avenue 29
         65019 Odessa
         Ukraine

The Debtor can be reached at:

         LLC Special Siminstallation
         Lustdorf Road St. 114
         65101 Odessa
         Ukraine


ULADOVKA LLC: Creditors Must File Claims by March 22
----------------------------------------------------
Creditors of LLC Uladovka (EDRPOU 33966908) have until March 22,
2009, to submit proofs of claim to:

         V. Glebov
         Insolvency Manager
         Hmelnitsky Highway 23
         Vinnitsa
         Ukraine

The Economic Court of Vinnitsa commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 5/11-09.

The Court is located at:

         The Economic Court of Vinnitsa
         Hmelnitsky highway 7
         21036 Vinnitsa
         Ukraine

The Debtor can be reached at:

         LLC Uladovka
         Shkolnaya St. 10
         Uladovka
         Letin
         22320 Vinnitsa
         Ukraine


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


AP DRIVELINE: Sold to Raicam; 167 Jobs Secured
----------------------------------------------
AP Driveline Technologies Limited' administrators, David Bennett,
Colin Haig and Matthew Hammond of PricewaterhouseCoopers LLP, have
sold a significant proportion of the company's business and
assets.  The company's Clutch, Flywheel and Damper business has
been sold to Raicam Clutch Limited, a newly formed UK subsidiary
of Raicam Industrie SRL.  The sale preserves almost 170 jobs at
the company's manufacturing facility in Leamington Spa.

Since their appointment to AP Driveline on January 12, 2009, the
administrators from PricewaterhouseCoopers have been trading the
company as normal while seeking a buyer as a going concern.

David Bennett, joint administrator and director at
PricewaterhouseCoopers LLP said: "We are delighted to be able to
secure this business sale and provide some much needed stability
for customers, suppliers and employees alike in these uncertain
times.  The support of these stakeholders has been crucial over
the last two months and without their continued support the rescue
of the Clutch related business would not have been possible. I
would like to thank them for their assistance throughout this
difficult period.

"These are very challenging times within the automotive sector,
which makes the sale of the business even more satisfying."

As reported in the Troubled Company-Reporter Europe on Jan. 15,
2009, David Bennett, director and joint administrator at
PricewaterhouseCoopers LLP, said: "AP Driveline has suffered as a
result of the current economic challenges facing the automotive
industry.  A substantial fall in the level of volumes in a short
period of time has meant that AP Driveline had limited options and
has therefore sought the protection of administration."

                About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.

                   About AP Driveline Limited

Based in Leamington Spa AP Driveline Limited is a manufacturer of
clutches for the automotive sector supplying some of the major car
companies.  The company has a turnover of approximately GBP18
million per annum and employs 237 staff.


CHROME FUNDING: Moody's Corrects Rating Actions on Tranches
-----------------------------------------------------------
Moody's Investors Service has taken rating actions on certain
tranches from Chrome Funding Ltd - Series Must 50/5.  These
actions are a correction to rating actions announced February 20,
2008 where the time to maturity of the transaction was incorrectly
treated.  The impacted tranches are:

Chrome Funding Ltd - Series Must 50/5

(1) Class A1-A Floating Rate Secured Portfolio Credit-linked Notes

  -- Correct rating: Baa2
  -- Previous incorrect rating: Ba1

(2) Class A1-B

  -- Correct rating: Baa2
  -- Previous incorrect rating: Ba1

(3) Class A2-A Floating Rate Secured Portfolio Credit-linked Notes

  -- Correct rating: Ba3
  -- Previous incorrect rating: Caa1
  -- Correct rating: Ba3

(4) Class A2-B

  -- Previous incorrect rating: Caa1

(5) Class B Floating Rate Secured Portfolio Credit-linked Notes

  -- Correct rating: B3
  -- Previous incorrect rating: Caa3

Corrected press release follows:

Moody's Investors Service has downgraded its ratings of 231 Notes
issued by 55 collateralized debt obligation transactions which
have significant exposure to asset-backed securities and to
corporate names.  Moody's also confirmed the ratings of 9 Notes.

The rating actions are a response to credit deterioration in the
underlying portfolio due to: expectations of increased losses in
the underlying RMBS and ABS assets, corporate name defaults and
general corporate deterioration; and to updates in the key
assumptions Moody's makes when rating these transactions.

The rating actions listed below reflect Moody's revised loss
projections for RMBS securities, Moody's updated key assumptions
for rating structured finance CDOs, and Moody's updated key
assumptions for rating corporate synthetic CDOs.

Moody's said that the rating actions take into account the updated
key modelling parameter assumptions that Moody's uses to rate and
monitor ratings of corporate CDOs.  Specifically, the changes
announced include: (1) a 30% increase in the assumed likelihood of
default for all corporate credits in synthetic CDOs, (2) an
increase in the degree to which ratings are adjusted according to
other credit indicators such as rating Reviews and Outlooks and
(3) an increase in the default correlation it applies to corporate
portfolios as generated through a combination of higher default
rates and an increase in investment grade and financial sector
asset correlations.

Moody's also explained that the rating actions take into account
the application of revised and updated key modelling parameter
assumptions that Moody's uses to rate and monitor ratings of SF
CDOs.  The revisions affect the three key parameters in Moody's
model for rating SF CDOs: asset correlation, default probability
and recovery rate.

Moody's initially analyzed and continues to monitor these
transactions using primarily the methodology and its supplements
for CDOs as described in Moody's Special Reports below, as well as
the revised parameters mentioned above:

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

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

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

  -- Subprime RMBS Loss Projection Update (September 2008)

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

The rating actions are:

ABSolute III Synthetic CDO Limited

  -- Class A, Downgraded to B2; previously on 22 December 2008
     Downgraded to Aa3 and Placed Under Review for Possible
     Downgrade

  -- Class B1, Downgraded to Caa3; previously on 22 December 2008
     Downgraded to A3 and Placed Under Review for Possible
     Downgrade

  -- Class B2, Downgraded to Caa3; previously on 22 December 2008
     Downgraded to A3 and Placed Under Review for Possible
     Downgrade

Alexandria Capital plc - Series 2004-17 - Karnak II

  -- Series 2004-17 A, Downgraded to Caa1; previously on 18
     December 2008 Downgraded to Ba1 and Placed Under Review for
     Possible Downgrade

  -- Series 2004-17 C, Downgraded to Caa3; previously on 18
     December 2008 Downgraded to Ba3 and Placed Under Review for
     Possible Downgrade

ARLO IV 2006 - Lemar & Rosenheim I CDO

  -- Series 2006 (Lemar I - Class B-2E)  EUR10,000,000 Secured
     Limited Recourse Credit-Linked Notes due 2013, Downgraded to
     Caa3; previously on 18 December 2008 Downgraded to Ba3 and
     Placed Under Review for Possible Downgrade

  -- Series 2006 (Lemar I - Class B-3E) EUR10,000,000 Secured
     Limited Recourse Credit-Linked Notes due 2013, Downgraded to
     Caa3; previously on 18 December 2008 Downgraded to B1 and
     Placed Under Review for Possible Downgrade

  -- Series 2006 (Lemar I - Class C-2E) EUR10,000,000 Secured
     Limited Recourse Credit-Linked Notes due 2013, Downgraded to
     Ca; previously on 18 December 2008 Downgraded to Caa1 and
     Placed Under Review for Possible Downgrade

  -- Series 2006 (Rosenheim I - Class B-3E) EUR5,000,000 Secured
     Limited Recourse Credit-Linked Notes due 2013, Downgraded to
     Caa3; previously on 18 December 2008 Downgraded to B1 and
     Placed Under Review for Possible Downgrade

ARLO IV 2006 - Lemar & Rosenheim II CDOs

  -- Series 2006 (Lemar II - Class B-1E) EUR5,000,000 Secured
     Limited Recourse Credit-Linked Notes due 2013, Downgraded to
     Ca; previously on 18 December 2008 Downgraded to Caa3 and
     Placed Under Review for Possible Downgrade

Arosa Funding Limited - Series 2003-2

  -- Class A, Downgraded to Ca; previously on 22 December 2008
     Downgraded to Caa3 and Placed Under Review for Possible
     Downgrade

  -- Class B1, Downgraded to Ca; previously on 22 December 2008
     Downgraded to Caa3 and Placed Under Review for Possible
     Downgrade

  -- Class B2, Downgraded to Ca; previously on 22 December 2008
     Downgraded to Caa3 and Placed Under Review for Possible
     Downgrade

Arosa Funding Limited - Series 2003-3

  -- Class A1, Downgraded to Ca; previously on 22 December 2008
     Downgraded to B3 and Placed Under Review for Possible
     Downgrade

  -- Class A2, Downgraded to Ca; previously on 22 December 2008
     Downgraded to B3 and Placed Under Review for Possible
     Downgrade

Arosa Funding Limited - Series 2003-4

  -- Series 2003-4, Downgraded to Caa3; previously on 22 December
     2008 Downgraded to B1 and Placed Under Review for Possible
     Downgrade

Arosa Funding Limited - Series 2004-5

  -- Class A1, Downgraded to Ba3; previously on 16 December 2008
     Downgraded to A2

  -- Class A2, Downgraded to Ba3; previously on 16 December 2008
     Downgraded to A2

  -- Class B1, Downgraded to Caa2; previously on 16 December 2008
     Downgraded to Ba1

  -- Class B2, Downgraded to Caa2; previously on 16 December 2008
     Downgraded to Ba1

  -- Class C, Downgraded to Caa3; previously on 16 December 2008
     Downgraded to B1

Arosa Funding Limited - Series 2006-6

  -- EUR20,000,000 Secured Credit-Linked Floating Rate Notes due
     2013, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba1 and remains Under Review for Possible
     Downgrade

Asgard CDO plc

  -- CHF6,000,000 Series A Swiss Franc Floating Rate Credit
     Linked Secured Notes due 2011, Downgraded to Ba3; previously
     on 18 December 2008 Downgraded to A1 and Placed Under Review
     for Possible Downgrade

  -- EUR327,000,000 Series A   -- EUR o Floating Rate Credit
     Linked Secured Notes due 2011, Downgraded to Ba3; previously
     on 18 December 2008 Downgraded to A1 and Placed Under Review
     for Possible Downgrade

  -- GBP2,000,000 Series A Sterling Floating Rate Credit Linked
     Secured Notes due 2011, Downgraded to Ba3; previously on 18
     December 2008 Downgraded to A1 and Placed Under Review for
     Possible Downgrade

  -- GBP2,000,000 Series B Sterling Floating Rate Credit Linked
     Secured Notes due 2011, Downgraded to B1; previously on 18
     December 2008 Downgraded to A2 and Placed Under Review for
     Possible Downgrade

  -- NZD10,000,000 Series B New Zealand Dollar Floating Rate
     Credit Linked Secured Notes due 2011, Downgraded to B1;
     previously on 18 December 2008 Downgraded to A2 and Placed
     Under Review for Possible Downgrade

  -- US$20,000,000 Series B Dollar Floating Rate Credit Linked
     Secured Notes due 2011, Downgraded to B1; previously on 18
     December 2008 Downgraded to A2 and Placed Under Review for
     Possible Downgrade

  -- EUR125,000,000 Series B EUR o Floating Rate Credit
     Linked Secured Notes due 2011, Downgraded to B1; previously
     on 18 December 2008 Downgraded to A2 and Placed Under Review
     for Possible Downgrade

  -- US$10,000,000 Series C Dollar Floating Rate Credit Linked
     Secured Notes due 2011, Downgraded to B2; previously on 18
     December 2008 Downgraded to A3 and Placed Under Review for
     Possible Downgrade

  -- CHF5,000,000 Series C Swiss Franc Floating Rate Credit
     Linked Secured Notes due 2011, Downgraded to B2; previously
     on 18 December 2008 Downgraded to A3 and Placed Under Review
     for Possible Downgrade

  -- EUR7,500,000 Series D EUR o Fixed Rate Credit Linked Secured
     Notes due 2011, Downgraded to B3; previously on 18 December
     2008 Downgraded to Baa2 and Placed Under Review for Possible
     Downgrade

Baker Street Finance Limited / Baker Street US$Finance Limited

  -- Class A-1a Floating Credit Linked Notes, Downgraded to Caa2;
     previously on 19 December 2008 Downgraded to A2 and remains
     on Review for Possible Downgrade

  -- Class A-1b Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Baa1 and remains
     on Review for Possible Downgrade

  -- Class A-1c loating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Baa2 and remains
     on Review for Possible Downgrade

  -- Class A1-US$Floating Credit-Linked Notes-1, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Baa2 and remains
     on Review for Possible Downgrade

  -- Class A2 Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Ba2 and remains
     on Review for Possible Downgrade

  -- Class A2-US$Floating Credit-Linked Notes-2, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Ba2 and remains
     on Review for Possible Downgrade

  -- Class B Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class B-US$Floating Credit-Linked Notes-3, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class C Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class C-US$Floating Credit-Linked Notes-4, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class D Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class D-US$Floating Credit-Linked Notes-5, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class E Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class E-US$Floating Credit-Linked Notes-6, Downgraded to Ca;
     previously on 14 October 2008 Downgraded Caa3 and remains on
     Review for Possible Downgrade

  -- Class F Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class F-US$Floating Credit-Linked Notes-7, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class G Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class G-US$Floating Credit-Linked Notes-8, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class H Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class H-US$Floating Credit-Linked Notes-9, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

Brooklands EUR o Referenced Linked Notes 2001-1 Ltd

  -- A, Downgraded to B3; previously on 19 November 2008
     Downgraded to Aa3 and Placed Under Review for Possible
     Downgrade

  -- B, Downgraded to Ca; previously on 19 November 2008
     Downgraded to B1 and Placed Under Review for Possible
     Downgrade

Brooklands EUR o Referenced Linked Notes 2004-1 Ltd

  -- Class A1-a Floating Rate Notes due 2054, Downgraded to Ba1;
     previously on 22 December 2008 Downgraded to Aa3 and Placed
     Under Review for Possible Downgrade

  -- Class A1-b Floating Rate Notes due 2054, Downgraded to Ba1;
     previously on 22 December 2008 Downgraded to Aa3 and Placed
     Under Review for Possible Downgrade

  -- Class A2 Floating Rate Notes due 2054, Downgraded to B3;
     previously on 22 December 2008 Downgraded to A1 and Placed
     Under Review for Possible Downgrade

CDC Ixis Capital Markets - Credit-Linked Note linked to Chrome
Funding Must 50/5

  -- EUR 10,000,000 Series 1388 Fixed Rate Credit-linked Notes,
     Downgraded to Ca; previously on 22 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

Chrome Funding Ltd - Series Must 50/5

  -- Class A1-A Floating Rate Secured Portfolio Credit-linked
     Notes, Confirmed at Baa2; previously on 22 December 2008
     Downgraded to Baa2 and remains on Review for Possible
     Downgrade

  -- Class A1-B, Confirmed at Baa2; previously on 22 December 2008
     Downgraded to Baa2 and remains on Review for Possible
     Downgrade

  -- Class A2-A Floating Rate Secured Portfolio Credit-linked
     Notes, Confirmed at Ba3; previously on 22 December 2008
     Downgraded to Ba3 and remains on Review for Possible
     Downgrade

  -- Class A2-B, Confirmed at Ba3; previously on 22 December 2008
     Downgraded to Ba3 and remains on Review for Possible
     Downgrade

  -- Class B Floating Rate Secured Portfolio Credit-linked Notes,
     Confirmed at B3; previously on 22 December 2008 Downgraded to
     B3 and remains on Review for Possible Downgrade

  -- Class C1 Floating Rate Secured Portfolio Credit-linked Notes,
     Downgraded to Ca; previously on 22 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

  -- Class C2 Floating Rate Secured Portfolio Credit-linked Notes,
     Downgraded to Ca; previously on 22 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

  -- Class D Floating Rate Secured Portfolio Credit-linked Notes,
     Downgraded to Ca; previously on 22 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

Clifton Street Finance Limited

  -- Class A-1, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class A-2, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba3 and remains on Review for Possible
     Downgrade

  -- Class B, Downgraded to Ca; previously on 19 December 2008
     Downgraded to B3 and remains on Review for Downgrade

  -- Class C, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class D, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class E, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

Cloverie Plc - Rotonda CDO: Series 2004-40 to 50 & 52

  -- Series 2004-41 Portfolio Credit Linked Note, Downgraded to
     Ba1; previously on 01 December 2008 Downgraded to A2 and
     Placed Under Review for Possible Downgrade

  -- Series 2004-42 Portfolio Credit Linked Note, Downgraded to
     Ba1; previously on 01 December 2008 Downgraded to A2 and
     Placed Under Review for Possible Downgrade

  -- Series 2004-43 Portfolio Credit Linked Note, Downgraded to
     Baa2; previously on 01 December 2008 Downgraded to Aa2 and
     Placed Under Review for Possible Downgrade

  -- Series 2004-44 Portfolio Credit Linked Note, Downgraded to
     Baa2; previously on 01 December 2008 Downgraded to Aa2 and
     Placed Under Review for Possible Downgrade

  -- Series 2004-45 Portfolio Credit Linked Note, Downgraded to
     B1; previously on 01 December 2008 Downgraded to Baa2 and
     Placed Under Review for Possible Downgrade

  -- Series 2004-48 Portfolio Credit Linked Note, Downgraded to
     Caa1; previously on 01 December 2008 Downgraded to Ba1 and
     Placed Under Review for Possible Downgrade

  -- Series 2004-50 Portfolio Credit Linked Note, Downgraded to
     Ba1; previously on 01 December 2008 Downgraded to A2 and
     Placed Under Review for Possible Downgrade

Cloverie Plc - Rotonda CDO: Series 2004-51

  -- Series 2004-51 Portfolio Credit Linked Note, Downgraded to
     B1; previously on 01 December 2008 Downgraded to Baa2 and
     Placed Under Review for Possible Downgrade

Cloverie Plc - Rotonda CDO: Series 2004-53

  -- Series 2004-53 Portfolio Credit Linked Note, Downgraded to
     Ba1; previously on 01 December 2008 Downgraded to A2 and
     Placed Under Review for Possible Downgrade

Cloverie Plc - Rotonda CDO: Series 2004- 56, 59, 61, 63

  -- Series 2004-56 Portfolio Credit Linked Note, Downgraded to
     A3; previously on 22 December 2008 Downgraded to Aa3 and
     remains on Review for Possible Downgrade

Cloverie PLC: Rotonda CDO Series 2004-59

  -- Series No: 2004-59 US$60,000,000 Class A Floating Rate
     Portfolio Credit Linked Notes due 2009, Downgraded to Ba2;
     previously on 22 December 2008 Downgraded to A1 and Placed
     Under Review for Possible Downgrade

Corsair (Jersey) No. 3 Limited (Alhambra)

  -- Series 1, Downgraded to Ca; previously on 23 October 2008
     Downgraded to B1

Corsair (Jersey) No 3 Limited Series 7 (Alhambra)

  -- Series 7 Floating ate Portfolio Credit Linked Notes due 2013,
     Downgraded to Ca; previously on 22 December 2008 Downgraded
     to B2 and Placed Under Review for Possible Downgrade

Corsair (Jersey) No 4 Limited - Series 11

  -- Series 11 Floating Rate Step-down Secured Portfolio CLN,
     Downgraded to Ba1; previously on 19 December 2008 Downgraded
     to A3 and Placed Under Review for Possible Downgrade

Curzon Funding Limited Series 2005-1 (HORIZON CDO Series)

  -- Series 2005-1 Horizon Class A Variable Coupon Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to A2 and remains on Review for Possible Downgrade

  -- Series 2005-1 Horizon Class B Variable Coupon Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to B1 and remains on Review for Possible Downgrade

  -- Series 2005-1 Horizon Class C Variable Coupon Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

  -- Series 2005-1 Horizon Class D Variable Coupon Notes,
     Downgraded to Ca; previously on 19 November 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

Curzon Funding Limited Series 2005-2 (Horizon IIIE)

  -- Series 2005-2 Horizon IIIE Class A Variable Coupon Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to A2 and remains on Review for Possible Downgrade

  -- Series 2005-2 Horizon IIIE Class B Variable Coupon Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to B1 and remains on Review for Possible Downgrade

  -- Series 2005-2 Horizon IIIE Class C Variable Coupon Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

  -- Series 2005-2 Horizon IIIE Class D Variable Coupon Notes,
     Downgraded to Ca; previously on 19 November 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

Curzon Funding Limited Series 2006-1 (Horizon CDO VI)

  -- Series 2006-1 Class A Variable Coupon Notes, Downgraded to
     Ca; previously on 19 December 2008 Downgraded to Ba2 and
     remains on Review for Possible Downgrade

  -- Series 2006-1 Class B Variable Coupon Notes, Downgraded to
     Ca; previously on 19 December 2008 Downgraded to B2 and
     remains on Review for Possible Downgrade

  -- Series 2006-1 Class C Variable Coupon Notes, Downgraded to
     Ca; previously on 19 December 2008 Downgraded to Caa2 and
     remains on Review for Possible Downgrade

  -- Series 2006-1 Class D Variable Coupon Notes, Downgraded to
     Ca; previously on 19 December 2008 Downgraded to Caa3 and
     remains on Review for Possible Downgrade

Curzon Funding Limited Series 2006-3 (Horizon CDO VIII)

  -- Series 2006-3 Class A Floating Coupon Notes, Downgraded to
     Ca; previously on 19 December 2008 Downgraded to B1 and
     remains on Review for Possible Downgrade

  -- Series 2006-3 Class B Floating Coupon Notes, Downgraded to
     Ca; previously on 19 December 2008 Downgraded to Caa3 and
     remains on Review for Possible Downgrade

KBC Investments Cayman Islands Ltd - Super Senior CDS Dorset
Street Finance Limited

  -- Super Senior Swap Dorset Street Finance Limited, Downgraded
     to B2; previously on 19 December 2008 Downgraded to A1 and
     remains on Review for Possible Downgrade

Dorset Street Finance Limited

  -- Class A1 Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Baa3 and remains
     on Review for Possible Downgrade

  -- Class A2 Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Ba2 and remains
     on Review for Possible Downgrade

  -- Class B Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Ba3 and remains
     on Review for Possible Downgrade

  -- Class C Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class D Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class E Floating Credit Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class F Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class G Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class H Floating Credit Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

Eirles Two Limited Series 87 - TAPAS 2004-1 Portfolio

  -- Eirles Two Limited Series 87 Floating Rate Portfolio Credit
     linked Secured Notes due 2011, Downgraded to Caa1; previously
     on 16 December 2008 Downgraded to Baa1 and remains on Review
     for Possible Downgrade

Eirles Two Limited Series 88 - ABS Select Portfolio

  -- Eirles Two Limited Series 88 Floating Rate Portfolio Credit
     Linked Secured Notes due 2011, Downgraded to Caa2; previously
     on 16 December 2008 Downgraded to Baa2 and Placed Under
     Review for Possible Downgrade

  -- Eirles Two Limited Series 120 US$50,000,000 Floating Rate
     Secured Notes due 2011

  -- Series 120 US$50,000,000 Floating Rate Secured Notes due
     2011, Downgraded to Ba3; previously on 18 December 2008
     Downgraded to A1 and Placed Under Review for Possible
     Downgrade

Elva Funding plc Series 2004-6

  -- Class A1 Notes, Downgraded to Ba1; previously on 18 December
     2008 Downgraded to Aa1 and Placed Under Review for Possible
     Downgrade

  -- Class A2 Notes, Downgraded to Ba1; previously on 18 December
     2008 Downgraded to Aa1 and Placed Under Review for Possible
     Downgrade

  -- Class A3 Notes, Downgraded to Ba1; previously on 18 December
     2008 Downgraded to Aa1 and Placed Under Review for Possible
     Downgrade

  -- Class B1 Notes, Downgraded to B2; previously on 18 December
     2008 Downgraded to A2 and remains on Review for Possible
     Downgrade

  -- Class B2 Notes, Downgraded to B2; previously on 18 December
     2008 Downgraded to A2 and remains on Review for Possible
     Downgrade

  -- Class B3 Notes, Downgraded to B2; previously on 18 December
     2008 Downgraded to A2 and remains on Review for Possible
     Downgrade

  -- Class C1 Notes, Downgraded to Caa2; previously on 18 December
     2008 Downgraded to Baa3 and remains on Review for Possible
     Downgrade

  -- Class C2 Notes, Downgraded to Caa2; previously on 18 December
     2008 Downgraded to Baa3 and remains on Review for Possible
     Downgrade

  -- Class C3 Notes, Downgraded to Caa2; previously on 18 December
     2008 Downgraded to Baa3 and remains on Review for Possible
     Downgrade

  -- Class D1 Notes, Downgraded to Ca; previously on 18 December
     2008 Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class D2 Notes, Downgraded to Ca; previously on 18 December
     2008 Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class D3 Notes, Downgraded to Caa3; previously on 18 December
     2008 Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class E1 Notes, Downgraded to Ca; previously on 18 December
     2008 Downgraded to Ba3 and remains on Review for Possible
     Downgrade

  -- Class E2 Notes, Downgraded to Ca; previously on 18 December
     2008 Downgraded to Ba3 and remains on Review for Possible
     Downgrade

Fulham Road Finance Limited

  -- Class A, Downgraded to B1; previously on 24 November 2008
     Downgraded to A1 and remains on Review for Possible Downgrade

  -- Class B, Downgraded to B3; previously on 24 November 2008
     Downgraded to A3 and remains on Review for Possible Downgrade

  -- Class C, Downgraded to Caa2; previously on 24 November 2008
     Downgraded to Baa3 and remains on Review for Possible
     Downgrade

  -- Class D, Downgraded to Caa3; previously on 24 November 2008
     Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class E, Downgraded to Caa3; previously on 24 November 2008
     Downgraded to B1 and remains on Review for Possible Downgrade

  -- Class F, Downgraded to Ca; previously on 24 November 2008
     Downgraded to B3 and remains on Review for Possible Downgrade

Hanover Street Finance Limited

  -- Class A1 Floating Rate Credit-Linked Notes, Downgraded to
     Caa2; previously on 19 December 2008 Downgraded to Baa1 and
     remains on Review for Possible Downgrade

  -- Class A2 Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Baa3 and remains
     on Review for Possible Downgrade

  -- Class B Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Ba3 and remains
     on Review for Possible Downgrade

  -- Class C Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class D Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class E Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class F Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class G Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class H Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class I Floating Rate Credit-Linked Notes-1, Downgraded to
     Ca; previously on 14 October 2008 Downgraded to Caa3 and
     remains on Review for Possible Downgrade

Heather Finance Limited 2004-8 (CoRDS)

  -- Series 2004-8 JPY1,100,000,000 Secured Credit-Linked Floating
     Rate Notes, Downgraded to Caa2; previously on 22 December
     2008 Downgraded to Baa3 and Placed Under Review for Possible
     Downgrade

Iliad Investments P.L.C. Series 14

  -- Class A, Downgraded to Ca; previously on 10 November 2008
     Downgraded to Caa1 and Placed Under Review for Possible
     Downgrade

  -- Class B, Downgraded to Ca; previously on 10 November 2008
     Downgraded to Caa2 and Placed Under Review for Possible
     Downgrade

  -- Class C, Downgraded to Ca; previously on 10 November 2008
     Downgraded to Caa3 and Placed Under Review for Possible
     Downgrade

Merak CDO Limited Series 2003-01

  -- Class B Credit-Linked Notes due 2010, Downgraded to Baa2;
     previously on 22 December 2008 Downgraded to Aa3 and Placed
     Under Review for Possible Downgrade

Merak CDO Limited Series 2003-02

  -- Class C Credit-Linked Notes due 2010, Downgraded to Baa3;
     previously on 22 December 2008 Downgraded to A2 and Placed
     Under Review for Possible Downgrade

Merak CDO Limited - Series 2003-3

  -- Class B, Downgraded to Ba1; previously on 22 December 2008
     Downgraded to A1 and Placed Under Review for Possible
     Downgrade

  -- Class C, Downgraded to Ba3; previously on 22 December 2008
     Downgraded to A3 and Placed Under Review for Possible
     Downgrade

Morgan Stanley Capital Services Inc. - Credit Derivative
Transactions

  -- GR_1 to GR_20

  -- GR_1 MSCS Credit Derivative Transaction, Downgraded to Caa3;
     previously on 02 November 2007 Downgraded to Baa2

  -- GR_2 MSCS Credit Derivative Transaction, Downgraded to B1;
     previously on 07 June 2007 Downgraded to A2

  -- GR_3 MSCS Credit Derivative Transaction, Downgraded to Ba3;
     previously on 07 June 2007 Downgraded to A1

  -- GR_4 MSCS Credit Derivative Transaction, Downgraded to B3;
     previously on 02 April 2008 Downgraded to A2

  -- GR_5 MSCS Credit Derivative Transaction, Downgraded to B3;
     previously on 02 April 2008 Upgraded to A1

  -- GR_6 MSCS Credit Derivative Transaction, Downgraded to Caa1;
     previously on 02 April 2008 Downgraded to Baa2

  -- GR_7 MSCS Credit Derivative Transaction, Downgraded to Caa2;
     previously on 02 April 2008 Downgraded to A3

  -- GR_8 MSCS Credit Derivative Transaction, Downgraded to Ba3;
     previously on 30 July 2008 Downgraded to A1

  -- GR_9 MSCS Credit Derivative Transaction, Downgraded to Caa1;
     previously on 02 April 2008 Downgraded to Baa1

  -- GR_10 MSCS Credit Derivative Transaction, Downgraded to B3;
     previously on 30 July 2008 Downgraded to A3

  -- GR_11MSCS Credit Derivative Transaction, Downgraded to Ba3;
     previously on 30 July 2008 Downgraded to A3

  -- GR_12 MSCS Credit Derivative Transaction, Downgraded to Caa2;
     previously on 07 June 2007 Downgraded to Baa1

  -- GR_13 MSCS Credit Derivative Transaction, Downgraded to Caa3;
     previously on 07 June 2007 Downgraded to A1

  -- GR_14 MSCS Credit Derivative Transaction, Downgraded to B1;
     previously on 30 July 2008 Downgraded to A2

  -- GR_15 MSCS Credit Derivative Transaction, Downgraded to B2;
     previously on 07 June 2007 Downgraded to A2

  -- GR_16 MSCS Credit Derivative Transaction, Downgraded to B3;
     previously on 30 July 2008 Downgraded to Baa3

  -- GR_17 MSCS Credit Derivative Transaction, Downgraded to Caa1;
     previously on 02 April 2008 Downgraded to A3

  -- GR_18 MSCS Credit Derivative Transaction, Downgraded to Caa2;
     previously on 07 June 2007 Downgraded to Aa3

  -- GR_19 MSCS Credit Derivative Transaction, Downgraded to Ba2;
     previously on 07 June 2007 Downgraded to Baa2

  -- GR_20 MSCS Credit Derivative Transaction, Downgraded to Caa1;
     previously on 30 July 2008 Downgraded to A2

  -- GR_21 MSCS Credit Derivative Transaction, Downgraded to B1;
     previously on 07 June 2007 Downgraded to A2

Oxford Street Finance Limited

  -- Class A1, Downgraded to Caa2; previously on 19 December 2008
     Downgraded to Baa2 and remains on Review for Possible
     Downgrade

  -- Class A2, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba1 and remains on Review for Possible
     Downgrade

  -- Class B, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba3 and remains on Review for Possible
     Downgrade

  -- Class C, Downgraded to Ca; previously on 19 December 2008
     Downgraded to B2 and remains on Review for Possible Downgrade

  -- Class D, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Caa2 and remains on Review for Possible
     Downgrade

  -- Class E, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class F, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class G, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class H, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

Pembridge Square Finance Limited

  -- EUR17,000,000 Class A1 Floating Rate Credit Linked Notes,
     Downgraded to Caa3; previously on 19 December 2008 Downgraded
     to Baa2 and remains on Review for Possible Downgrade

  -- EUR80,000,000 Class A2 Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to Baa3 and remains on Review for Possible Downgrade

  -- EUR70,000,000 Class B Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to B1 and remains on Review for Possible Downgrade

  -- EUR60,000,000 Class C Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

  -- EUR50,000,000 Class D Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 19 December 2008 Downgraded
     to Caa3 and remains on Review for Possible Downgrade

  -- EUR40,000,000 Class E Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 14 October 2008 Downgraded to
     Caa3 and remains on Review for Possible Downgrade

  -- EUR25,000,000 Class F Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 14 October 2008 Downgraded to
     Caa3 and remains on Review for Possible Downgrade

  -- EUR22,000,000 Class G Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 14 October 2008 Downgraded to
     Caa3 and remains on Review for Possible Downgrade

  -- EUR16,000,000 Class H Floating Rate Credit Linked Notes,
     Downgraded to Ca; previously on 14 October 2008 Downgraded to
     Caa3 and remains on Review for Possible Downgrade

Rally CDO Limited

  -- US$42,000,000 Class A Floating Rate Notes due 2010,
     Downgraded to Ba3; previously on 18 December 2008 Downgraded
     to Aa1 and Placed Under Review for Possible Downgrade

  -- US$18,000,000 Class B Floating Rate Notes due 2010,
     Downgraded to Caa2; previously on 18 December 2008 Downgraded
     to A3 and Placed Under Review for Possible Downgrade

  -- US$12,000,000 Class C Floating Rate Notes due 2010,
     Downgraded to Caa3; previously on 18 December 2008 Downgraded
     to Ba1 and Placed Under Review for Possible Downgrade

  -- US$6,000,000 Class D Floating Rate Notes due 2010, Downgraded
     to Ca; previously on 18 December 2008 Downgraded to B2 and
     Placed Under Review for Possible Downgrade

Regent Street Finance Limited

  -- Class A1 Floating Rate Credit-Linked Notes, Downgraded to
     Caa1; previously on 19 December 2008 Downgraded to A2 and
     remains on Review for Possible Downgrade

  -- Class A2 Floating Rate Credit-Linked Notes, Downgraded to
     Caa2; previously on 19 December 2008 Downgraded to Baa1 and
     remains on Review for Possible Downgrade

  -- Class B Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Baa3 and remains
     on Review for Possible Downgrade

  -- Class C Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Ba3 and remains
     on Review for Possible Downgrade

  -- Class D Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class E Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class F Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 19 December 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class G Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

  -- Class H Floating Rate Credit-Linked Notes, Downgraded to Ca;
     previously on 14 October 2008 Downgraded to Caa3 and remains
     on Review for Possible Downgrade

Rijn Finance Company B.V. Series 1.4 (Alhambra)

  -- Series 1.4 Tranche A Fixed Rate, Downgraded to Ca; previously
     on 23 October 2008 Downgraded to B3

  -- Series 1.4 Tranche A Floating Rate, Downgraded to Ca;
     previously on 23 October 2008 Downgraded to B3

  -- Series 1.4 Tranche B Fixed Rate, Downgraded to Ca; previously
     on 23 October 2008 Downgraded to Caa2

  -- Series 1.4 Tranche B Floating Rate, Downgraded to Ca;
     previously on 23 October 2008 Downgraded to Caa2

Ryder Square Limited - Evergreen

  -- Series No: 3 EUR29,000,000 Evergreen-ABS Secured Credit
     Linked Notes due 2009, Downgraded to Baa1; previously on 22
     December 2008 Downgraded to A1 and Placed Under Review for
     Possible Downgrade

  -- Series No: 4 EUR38,000,000 Evergreen-ABS Secured Credit
     Linked Notes due 2009, Downgraded to Ba1; previously on 22
     December 2008 Downgraded to Baa2 and Placed Under Review for
     Possible Downgrade

Skylark Limited Series 2004-3 (US$Saqqara)

  -- US$-denominated Saqqara Class A Floating Rates Credit Linked
     Notes, confirmed at Aa3; previously on 22 December 2008
     Downgraded to Aa3 and Placed Under Review for Possible
     Downgrade

Starts (Ireland) plc - Amber Structured Finance CDO

  -- Class A1-E1 Credit-Linked Notes, Downgraded to Caa1;
     previously on 18 December 2008 Downgraded to Baa2 and Placed
     Under Review for Possible Downgrade

  -- Class A2-E1 Credit-Linked Notes, Downgraded to Caa3;
     previously on 18 December 2008 Downgraded to Ba1 and Placed
     Under Review for Possible Downgrade

  -- Class A2-E2 Credit-Linked Notes, Downgraded to Caa3;
     previously on 18 December 2008 Downgraded to Ba1 and Placed
     Under Review for Possible Downgrade

  -- Class B-E1 Credit-Linked Notes, Downgraded to Ca; previously
     on 18 December 2008 Downgraded to Caa1 and Placed Under
     Review for Possible Downgrade

Starts (Ireland) plc Series 2005-1 (Amber Structured Finance CDO)

  -- Series 2005-1 US$25,000,000 Class A2-D2 Floating Rate Amber
     Credit-Linked Notes due 2010, Downgraded to Caa3; previously
     on 18 December 2008 Downgraded to Ba2 and Placed Under Review
     for Possible Downgrade

Sydney Street Finance Limited

  -- Class A-1, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class A-2, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Ba3 and remains on Review for Possible
     Downgrade

  -- Class B, Downgraded to Ca; previously on 19 December 2008
     Downgraded to B3 and remains on Review for Possible Downgrade

  -- Class C, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class D, Downgraded to Ca; previously on 19 December 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class E, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class F, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

  -- Class G, Downgraded to Ca; previously on 24 November 2008
     Downgraded to Caa3 and remains on Review for Possible
     Downgrade

Triplas Series II Synthetic CDO Limited

  -- Class A, Downgraded to A3; previously on 22 December 2008
     Downgraded to A1 and remains on Review for Possible Downgrade

  -- Class B, Downgraded to Baa3; previously on 22 December 2008
     Downgraded to A3 and remains on Review for Possible Downgrade

  -- Class C, Downgraded to Ba2; previously on 22 December 2008
     Downgraded to Baa3 and remains on Review for Possible
     Downgrade

  -- Class D, Downgraded to B1; previously on 22 December 2008
     Downgraded to Ba2 and remains on Review for Possible
     Downgrade

  -- Class E, Downgraded to B2; previously on 22 December 2008
     Downgraded to Ba3 and remains on Review for Possible
     Downgrade

Triplas III Limited

  -- B, Downgraded to Ca; previously on 17 December 2008
     Downgraded to Baa3 and Placed Under Review for Possible
     Downgrade

  -- C, Downgraded to Ca; previously on 17 December 2008
     Downgraded to Ba3 and Placed Under Review for Possible
     Downgrade

  -- D, Downgraded to Ca; previously on 17 December 2008
     Downgraded to B1 and Placed Under Review for Possible
     Downgrade

Triplas IV Limited

  -- EUR10,300,000 Class C1 Secured Floating Rate Credit-Linked
     Notes due 2011, Downgraded to Caa2; previously on 22 December
     2008 Downgraded to Ba1 and remains on Review for Possible
     Downgrade

  -- EUR17,000,000 Class A Secured Floating Rate Credit-Linked
     Notes due 2011, Downgraded to Ba1; previously on 22 December
     2008 Downgraded to A3 and remains on Review for Possible
     Downgrade

  -- EUR17,000,000 Class B Secured Floating Rate Credit-Linked
     Notes due 2011, Downgraded to B3; previously on 22 December
     2008 Downgraded to Baa2 and remains on Review for Possible
     Downgrade

  -- EUR2,000,000 Class C2 Secured Floating Rate Credit-Linked
     Notes due 2011, Downgraded to Caa2; previously on 22 December
     2008 Downgraded to Ba1 and remains on Review for Possible
     Downgrade

  -- EUR750,000 Class D Secured Floating Rate Credit-Linked Notes
     due 2011, Downgraded to Caa2; previously on 22 December 2008
     Downgraded to Ba2 and remains on Review for Possible
     Downgrade

Vespucci Investments Plc

  -- Class A, Confirmed at Aa3; previously on 22 December 2008
     Downgraded to Aa3 and Placed Under Review for Possible
     Downgrade

  -- Class B, Confirmed at Aa3; previously on 22 December 2008
     Downgraded to Aa3 and Placed Under Review for Possible
     Downgrade

  -- Class C, Confirmed at A1; previously on 22 December 2008
     Downgraded to A1 and Placed Under Review for Possible
     Downgrade


CLAYMORE LUBRICANTS: Appoints Joint Administrators from PKF
-----------------------------------------------------------
Edward T. Kerr and Ian J. Gould of PKF (UK) LLP were appointed
joint administrators of Claymore Lubricants (Midlands) Ltd. on
Feb. 27, 2009.

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

         Pannell House
         159 Charles Street
         Leicester
         LE1 1LD
         England


ELAN LIMITED: Fitch Cuts Rating on US$30 Million Notes to 'D'
------------------------------------------------------------
Fitch Ratings has downgraded E.L.A.N Limited's Series 2007-2 US$30
million secured credit-linked floating-rate notes, due June 2014
(ISIN: XS0293093968), to 'D' from 'C' following confirmation that
the notes have been completely written down due to credit events
in the underlying portfolio.

Fitch expects no recovery on the notes.


EUROPEAN MEDIATION: Court to Hear Winding-Up Petition on May 5
--------------------------------------------------------------
The Secretary of State for Business, Enterprise & Regulatory
Reform has presented a petition in the High Court to wind up
European Mediation Limited in the public interest.

The company offers to assist victims of fraud to obtain
compensation for their losses.  The petition to wind up the
company was presented following an investigation carried out by
Companies Investigation Branch under section 447 of the Companies
Act 1985 (as amended).  The Official Receiver has been appointed
as Provisional Liquidator of the company.  The case is now subject
to High Court action and no further information will be available
until the petition is heard on May 5, 2009.

The registered office of European Mediation Limited is at 6
Pearson Close, Rochdale, Lancashire, OL16 3UL.  The company was
incorporated in August 2008.

All public enquiries concerning the affairs of the company should
be made to:

         The Official Receiver
         Public Interest Unit
         PO Box 326
         17-21 Chorlton Street
         Manchester
         M60 3ZZ
         Tel: 0161 934 4182
         Email: piu.north@insolvency.gsi.gov.uk


EXCHANGE INSURANCE: A.M. Best Changes Final Strength Rating to 'E'
------------------------------------------------------------------
A.M. Best Co. has changed the financial strength rating to E
(Under Regulatory Supervision) from C (Fair) and the issuer credit
rating to "rs" from "ccc" of The Exchange Insurance Company
Limited (Exchange).  This action removes the under review with
negative implications status originally assigned to the ratings in
November 2008.

The ratings of Exchange have been changed because the company has
been placed into administration and due to the cessation of its
normal activities as an insurance company.

Exchange's management continue discussions with potential
investors to sell the company.  A successful conclusion to these
talks will lead to a review of the ratings.


GATE HAUS: Appoints Joint Administrators from PwC
-------------------------------------------------
Stephen Andrew Ellis and Ian David Green of PricewaterhouseCoopers
LLP were appointed joint administrators of Gate Haus Ltd. on
Feb. 25, 2009.

The company can be reached at:

         Gate Haus Ltd.
         The Barracks
         Wakefield Road
         Pontefract
         West Yorkshire
         WF8 4HH
         England


GLAMPAK LIMITED: Assets Sold to Calpack Limited
-----------------------------------------------
Glampak Limited's joint administrators, Jason Godefroy and
Geoffrey Bouchier of MCR, have sold certain assets of Glampak
Limited.  Due to legal and confidentiality reasons, specific
details of the sale cannot be made available.

"We are pleased to confirm the sale of certain assets of Glampak,"
commented Jason Godefroy.  "The sale represents the outcome of the
tireless efforts of the parties to deal with the complex issues
involved in order to reach an agreement which will benefit the
region and the packaging industry as a whole.  I trust that the
agreement will mean that the needs of former customers can be met
by Calpack Limited who are likely to be able to offer fully
integrated corrugated packaging solutions."

Mr. Godefroy continued: "Although our investigations are
continuing, it appears that the company had been severely affected
by the administration of Wedgewood, which at the time was a major
customer of the company.  Combined with a number of other factors,
the company suffered cash flow problems, which ultimately led to
the administration."

Calpack Limited  has been set up by The Parmar family, an African
registered company with good credentials and a wealth of
experience in the packaging industry. The director will be Jigna
Parmar.

The Parmar family have stated that they are focusing on optimising
the potential mainly as a trade finishing company.  Calpack will
specialize in providing fully integrated corrugated packaging
solutions.

Suzanne Cooper, a spokesperson for Calpack commented "This
announcement means that a large number of Glampak customers will
have their orders fulfilled, and these customers will have renewed
peace of mind that their requirements can be met going forward."

The sales department advised "Calpack Limited welcomes any queries
that customers may have and can be contacted by calling 01443 431
544

Mr. Rasmussen also of Calpack added: "We are delighted with the
patience and loyalty shown by Glampak's customers and are pleased
to be able to work with them to provide a solution to their
packaging requirements.  We have worked closely with the
Administrator, and now with the suppliers of Glampak to make the
transition as simple and smooth a procedure as possible."

Glampak Limited went into Administration on January 21, 2009.


ITV PLC: Mulls Rights Issue; Mr. Grade's Position Questioned
------------------------------------------------------------
The Financial Times' Salamander Davoudi and Kate Burgess report
that ITV plc is mulling a rights issue to help raise capital to
ease its GBP730 million debt burden.

However, the FT notes that for the rights issue to push through,
Michael Grade may have to quit his post as executive chairman.

According to the FT, investors have long questioned Mr Grade's
dual role as both chairman and chief executive, preferring the two
positions to be separate.

"Shareholders are pretty keen to get a chief executive, and if the
company were to try to raise capital it probably would be a pre-
condition," the FT quoted one investor as saying.  "The company
certainly needs capital and it can't do it with the current
management team."

The company, whose joint brokers are Credit Suisse and UBS, is
hoping that a rights issue can be avoided through cost savings and
asset sales, the FT states.

                          About ITV plc

ITV plc -- http://www.itvplc.com/–- is a United Kingdom-based
advertising funded broadcaster.  The Company also operates as an
advertising funded media owner in the United Kingdom across all
media, including television, radio, press, cinema, outdoor and the
Internet.  As a producer, ITV makes hours of network television.
Its digital channels include ITV2, ITV3, ITV4 and Citv.  ITV also
makes programs for the BBC, Channel 4, five, Sky and other
broadcasters.  ITV produces programs watched on screens from San
Francisco to Sydney.  In addition, it produces a range of products
related to ITV programs, such as digital video disks (DVDs) and
computer games.  Its online properties include itv.com,
itvlocal.com and Friends Reunited

                          *     *     *

As reported in the Troubled Company Reporter-Europe on March 9,
2009, Standard & Poor's Ratings Services lowered its long-term
corporate credit and senior unsecured debt ratings on U.K. private
TV broadcaster ITV PLC to 'BB-' from 'BB+'.  The outlook is
stable.

Simultaneously, the ratings were removed from CreditWatch where
they had been placed with negative implications on Jan. 27, 2009.

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

On March 9, 2009, the TCR-Europe reported that Moody's Investors
Service downgraded ITV plc's senior unsecured ratings, Corporate
Family Rating and Probability of Default rating, to Ba2 (from
Ba1).  The rating outlook for ITV is negative.


KINMEL BAY: Brings in Joint Administrators from Deloitte
--------------------------------------------------------
John Charles Reid and Dominic Lee Zoong Wong of Deloitte LLP were
appointed joint administrators of Kinmel Bay Developments Ltd. on
March 2, 2009.

The company can be reached through Deloitte LLP at:

         4 Brindley Place
         Birmingham
         B1 2HZ
         England


LOCKLEY STAINLESS: In Administration; Deloitte Appointed
--------------------------------------------------------
Dominic Wong and Richard Hawes of Deloitte, the business advisory
firm, were appointed as Joint Administrators to Lockley Stainless
Limited and its subsidiary, CPC Stainless Limited, on March 10,
2009.

Richard Hawes, partner and Joint Administrator, commented:
"Lockley invested substantial capital for a new service center in
2008, which combined with falling commodity prices and sales
volumes, have resulted in profitability and cashflow problems.
These problems have been exacerbated by current economic
difficulties. We will continue to trade the business while a buyer
is sought.  We are hopeful that a suitable buyer will be found for
what is the UK's only independent, stainless steel service centre.

"CPC traded stainless steel in East Anglia.  Prior to our
appointment the Company took steps to close the business.  Buyers
will now be sought for the remaining assets."

                  About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.

                       About Lockley

Lockley trades sheet stainless steel and operates a new purpose
built stainless steel service centre in Wolverhampton.  The
service centre decoils, cuts and polishes sheet stainless steel to
customer requirements.  Lockley and its subsidary, CPC, employ a
total of 25 employees.


LLOYDS BANKING: UKSA Forms Shareholder Action Group
---------------------------------------------------
U.K. Shareholders Association (UKSA) said Sunday it is forming a
"Shareholders' Action Group" to represent the interests of Lloyds
Banking Group Plc shareholders (both from former Lloyds TSB Group
and HBOS Plc shareholders) in response to the volume of complaints
the association has received.  The assocation said it is
considering actions against the bank.

In a statement, UKSA said the views of the original LloydsTSB
shareholders seem to have been ignored in favour of the wishes of
the Government and the interests of HBOS shareholders when the
merger with HBOS was proposed.

"Many LloydsTSB shareholders advised the directors that it was a
mistake, including experts familiar with the property sector and
who had good knowledge of the problems linked to the HBOS
commercial property loan book.  But this advice was ignored," the
assocation said.

According to the statement, the association learnt that due
diligence was not as extensive as would have been normal for such
a large deal, the FSA was aware that provisions might increase
substantially and the subsequent revelations have eroded much of
the wealth of shareholders.  A "bad" bank has simply been combined
with a "good" bank to make one larger "bad" bank, UKSA said.

"Now, recognizing further losses, we have Lloyds taking insurance
on its questionable assets (most of which stem from HBOS) from the
Government at enormous expense and with further dilution of
shareholders.  UKSA suggests that again the directors are making a
mistake.  The prime motivation for this seems to be the desire of
the Government to increase lending by the bank, which may be in
the interest of the wider economy, but is to the disadvantage of
shareholders unless done on proper commercial terms.  UKSA also
suggests that there are better alternatives that the company and
the Government should have considered, that would
not have prejudiced shareholders to the same extent," UKSA said in
the statement.

                     General Banking Campaign

UKSA also launched a campaign to cover the more general issues
associated with the credit crunch, the recapitalisation of banks
and the Government's actions in respect of the banking sector.

"We wish to enable investors to regain some of their lost capital
and income which has arisen because of the negligence, breach of
fiduciary duty, misrepresentation and poor regulation which we
believe has been demonstrated in this sector of the UK economy.
Our focus will therefore be on what should be put in place to stop
these events happening again in future," the association said.

                    US$367 Bln Asset Insurance

As reported in the Troubled Company Reporter-Europe on Mar. 9,
2009, Bloomberg News said Lloyds obtained GBP260 billion (US$367
billion) in state guarantees increasing the U.K. government's
stake in the bank to as much as 75 percent from 43 percent.

Under the agreement, Lloyds will pay GBP15.6 billion for asset
protection, or 5.2 percent of the insured assets, in the form of
non-voting shares, Bloomberg News said citing the bank in a
statement.

Lloyds also agreed to increase lending to businesses and
homeowners by GBP28 billion over the next 24 months, the same
report said.

In return, the report said Lloyds will get government insurance
for GBP74 billion of residential mortgages, GBP18 billion of
unsecured personal loans, GBP151 billion of corporate and
commercial loans and GBP17 billion of treasury assets.

The report said Lloyds will be responsible for the initial GBP25
billion of losses on the insured assets and will cover 10 percent
of any additional losses, with the Treasury responsible for the
rest.

The government will also underwrite a GBP4 billion share sale and
convert existing preference shares into equity, the report
disclosed.

According to Bloomberg News, about 83 percent of the assets Lloyds
is insuring came from HBOS.  Lloyds acquired HBOS's deteriorating
quality of loans when it bought the firm in a government-brokered
deal, the report said.

The report recalled in September, Lloyds agreed to buy HBOS for
about GBP7.7 billion as the government sought to prevent HBOS from
collapsing after credit markets froze.  Last month, HBOS posted a
pretax loss of GBP7.5 billion, the report noted.

                     About Lloyds Banking Group PLC

Lloyds Banking Group Plc (LON:LLOY) –-
http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group
plc, is United Kingdom-based financial services company, whose
businesses provide a range of banking and financial services in
the United Kingdom and a limited number of locations overseas.
The operations of Lloyds TSB Group in the United Kingdom were
conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds
TSB Scotland plc and Cheltenham & Gloucester plc during the year
ended December 31, 2007.  Cheltenham & Gloucester plc (C&G) is the
Company's specialist mortgage arranger.  Following the transfer of
its mortgage lending and deposits to Lloyds TSB Bank, during 2007,
C&G arranges mortgages for Lloyds TSB Bank rather than for its own
account.  International business is conducted mainly in the United
States and continental Europe.  Lloyds TSB Group's services in
these countries are offered through branches of Lloyds TSB Bank.
In January 2009, the Company acquired HBOS plc.


MOCKINGBIRD DISTRIBUTION: Appoints Joint Administrators from BDO
----------------------------------------------------------------
David Harry Gilbert and Anthony David Nygate of BDO Stoy Hayward
LLP were appointed joint administrators of Mockingbird
Distribution Ltd. on Feb. 27, 2009.

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

         55 Baker Street
         London
         W1U 7EU
         England


SAVEKERS LIMITED: Goes Into Administration; 34 Jobs Affected
------------------------------------------------------------
Birmingham Post's Tom Scotney reports that Savekers Limited has
gone into administration following a collapse in orders.

The administration is being handled by John Kelly and James Martin
of the Birmingham office of recovery specialists Begbies Traynor,
the report discloses.

The company, the report relates, has already made 34 out of its
workforce of 60 redundant.

The report recalls the company approached AWM's Advantage
Transition Bridge Fund in December for a GBP250,000 loan after the
economic downturn hit the sales of the GBP4 million business.

Savekers' chief executive Dani Saveker, as cited by the report,
said "Our main market sectors are construction, retail and
leisure, all of which have been hit.  We successfully underwent a
stringent due diligence process to secure a GBP250,000 loan with
every hope of this helping the business.  But the incoming orders
suddenly dropped meaning that our hopes to trade through the
credit crisis were lost."

The company, the report recounts, is currently in talks with
interested parties with the hope of a sale.  It will continue
to trade as a going concern while a buyer is being sought, the
report notes.

Based in Perry, Savekers primarily makes architectural metalwork
and shop fittings, and its products are popular with offices,
hotels, bars and restaurants, shops, banks, building societies and
post offices, the report states.


WINDERMERE XI: Fitch Junks Ratings on Class D and E Notes
---------------------------------------------------------
Fitch Ratings has downgraded Windermere XI plc's commercial
mortgage-backed notes due April 2017:

  -- GBP534.7 million Class A: downgraded to 'A+' from 'AAA';
     Outlook revised to Negative from Stable

  -- GBP53.5 million Class B: downgraded to 'BBB-' (BBB minus)
     from 'AA'; Outlook revised to Negative from Stable

  -- GBP41.8 million Class C: downgraded to 'B+' from 'A'; remains
     on RWN

  -- GBP31.4 million Class D: downgraded to 'CCC' from 'BBB';
     removed from RWN; Recovery Rating 'RR5' assigned

  -- GBP7.5 million Class E: downgraded to 'CCC' from 'BB';
     removed from RWN; Recovery Rating 'RR5' assigned

This transaction is the securitization of eight commercial
mortgage loans originated by Lehman Brothers Commercial Paper Inc,
which closed in April 2007.  Since closing, the Fleetwalk loan (4%
of the original loan balance) prepaid; combined with scheduled
amortization this has reduced the outstanding securitized balance
to GBP665 million from GBP707.8 million at closing.  With the
exception of the Trent Road and Government Income Portfolio loan,
all the loans have a B-note component.

Although only some of the assets have been re-valued since
closing, Fitch estimates that their values are likely to have
declined by up to 45% from closing based on prevailing market
conditions and declines in property income generated from some of
the properties securing the loans.  Fitch believes these capital
value declines to have significantly weakened the creditworthiness
of the loans securitized in this transaction; this is reflected in
the weighted-average Fitch loan-to-value ratio of 103.8%, compared
to the reported WA LTV of 68.9%.

The largest loan in the pool, the Devonshire House loan (27.5% of
the pool), is secured by a prime office property in London's
Mayfair.  Although the loan benefits from almost full occupancy,
it suffers from a short WA lease term of 3.6 years, compared to a
remaining loan term of 5.3 years.  This risk is further
exacerbated by the fact that, since closing, top-up payments from
a GBP5 million reserve have been necessary to make interest
payments, as the property income is not sufficient.  Two leases
were surrendered in the quarter to October 2008, and a rent
holiday was requested by another tenant.  Data as of the January
interest payment date is not yet available; however, it is
expected that operating income will fall further, although the
cash reserve will ensure that interest payments continue to be
met.  The property was last revalued in July 2008, resulting in an
8% fall in value since closing.  Fitch estimates an A-note Fitch
LTV of 87.1%, compared to 63.6% at closing.

The Long Acre loan (17.5% of the pool) is secured by a single
office property in London's Covent Garden.  The loan has a WA
lease term of 3.8 years and its largest tenant is Virgin Media,
representing 20% of passing rent.  Since closing, the loan has met
its whole loan interest payments in full and has maintained its
interest coverage ratio at the whole loan covenant level of 1x.
The GBP0.6 million cash reserve established at closing has been
run down to only GBP9,000, although the borrower also benefits
from a GBP1 million letter of credit.  The property was revalued
in January 2008 at GBP167 million, a 4.6% decline since closing.
Fitch estimates that market value is likely to have since fallen
further, resulting in an A-note Fitch LTV of 104.5%, compared to a
reported A-note LTV of 66%.

The Shrewsbury loan, secured by three shopping centres in the West
Midlands, is in the process of being transferred to special
servicing.  Of the loan's passing rent, 7.7% is attributable to
tenants currently in administration, with three tenants moving
into administration in the last quarter, the largest of these
being Woolworths (6.8% of passing rent).  Although the loan made
its interest payments in full at the January IPD, ICR projections
imply that the loan will be in breach of its whole loan ICR
covenant of 1.05x at the April IPD unless replacement tenants can
be found.

The remaining loans continue to meet their debt service
obligations but are also likely to have been adversely affected by
ongoing value declines.

At closing, the transaction included an issuer-level fixed-to-
floating interest rate swap with Lehman Brothers Special
Financing, Inc as counterparty (guaranteed by Lehman Brothers
Holdings Inc).  Following the insolvency of Lehman Brothers,
payments from the swap counterparty to the issuer have not been
received.  Thus far, this has had no impact on note interest
payments due to the current interest rate environment.  Although
Fitch expects the swap to be replaced in full, the Class C notes
remain on RWN to reflect this uncertainty.

Fitch will continue to monitor the performance of the transaction.


* BOND PRICING: For the Week March 9 to March 13, 2009
------------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

CYPRUS
------
Abh Financial Lt          8.200    06/25/12     USD      69.88
                          8.200    06/25/12     USD      69.78
Alfa MTN Invest           9.250    06/24/13     USD      72.54

FRANCE
------
Alcatel SA                4.750    01/01/11     EUR      12.89
                          6.380    04/07/14     EUR      56.68
Axa SA                    7.130    12/15/20     GBP      75.19
                          8.600    12/15/30     USD      72.00
Calyon                    6.000    06/18/47     EUR      44.10
Soc Air France            2.750    04/01/20     EUR      18.62
Wavecom SA                1.750    01/01/14     EUR      30.73

GERMANY
-------
Bayer AG                  5.000    07/29/2105   EUR      73.06

GREECE
------
Antenna TV SA             7.250    02/15/15     EUR      63.13

HUNGARY
-------
Agrokor                   7.000    11/23/11     EUR      67.02

IRELAND
-------
Allied Irish Bks          5.250    03/10/25     GBP      63.11
                          5.630    11/29/30     GBP      59.13
Alfa Bank                 8.630    12/09/15     USD      56.54
                          8.640    02/22/17     USD      49.38
Ardagh Glass              7.130    06/15/17     EUR      65.63
                          7.130    06/15/17     EUR      65.85
Banesto Finance Plc       6.120    11/07/37     EUR       6.12
Bank of Ireland           4.630    02/27/19     EUR      60.55

ITALY
-----
Banca Italease            3.000     06/30/11    EUR      73.75
                          3.000     09/30/11    EUR      71.13

LUXEMBOURG
----------
Acergy SA                 2.250    10/11/13     USD      65.06
Ak Bars Bank              9.250    06/20/11     USD      69.41
Alrosa Finance            8.880    11/17/14     USD      66.82
                          8.880    11/17/14     USD      65.64
Bank of Moscow            7.340    05/13/13     USD      60.15
                          7.340    05/13/13     USD      61.60
                          7.500    11/25/15     USD      52.01
                          6.810    05/10/17     USD      43.25
Beverage Pack             8.000    12/15/16     EUR      70.79
                          8.000    12/15/16     EUR      70.38
                          9.500    06/15/17     EUR      44.75
                          9.500    06/15/17     EUR      45.48

NETHERLANDS
-----------
ABN Amro Bank NV          6.000    03/16/35     EUR      49.63
Achmea Hypobk             4.300    04/03/24     EUR      76.40
                          4.000    12/27/24     EUR      71.63
Aegon NV                  6.130    12/15/31     GBP      69.00
Air Berlin Finance BV     1.500    04/11/27     EUR      34.53
Alfa Bk Ukraine           9.750    12/22/09     USD      56.46
ALB Finance BV            9.000    11/22/10     USD      19.99
                          9.750    02/14/11     GBP      19.99
                          8.750    04/20/11     USD      19.97
                          7.880    02/01/12     EUR      18.98
ASML Holding NV           5.750    06/13/17     EUR      65.46
ASM Intl NV               4.250    12/06/11     USD      71.50
                          4.250    12/06/11     USD      65.75
Astana Finance            7.880    06/08/10     EUR      29.99
ATF Capital BV            9.250    02/21/14     USD      41.93
                          9.250    02/21/14     USD      53.70
Centercrdt Intl           8.000    02/02/11     USD      50.78
                          8.630    01/30/14     USD      36.71
Hit Finance BV            4.880    10/27/21     EUR      73.99
JSC Bank Georgia          9.000    02/08/12     USD      34.75

SPAIN
-----
Ayt Cedulas Caja          3.750    06/30/25     EUR      73.72
Banco Bilbao Viz          4.380    10/20/19     EUR      71.05

UNITED KINGDOM
--------------
Annes Gate Ppty           5.660    06/30/31     GBP      75.23
Anglian Water
  Finance Plc             2.400    04/20/35     GBP      48.63
Ashtead Holdings          8.630    08/01/15     USD      56.13
                          8.630    08/01/15     USD      56.75
Aspire Defence            4.670    03/31/40     GBP      62.52
                          4.670    03/31/40     GBP      61.90
Aviva Plc                 5.250    10/02/23     EUR      47.28
                          6.880    05/22/38     EUR      46.97
                          6.880    05/20/58     GBP      67.85
Azovstal                  9.130    02/28/11     USD      37.55
Barcklays Bk Plc          9.750    09/30/09     GBP      52.59
                          5.750    09/14/26     EUR      74.20
Beazley Group             7.250    10/17/26     GBP      69.04
British Airways Plc       8.750    08/23/16     GBP      73.88
British Land Co           5.360    03/31/28     GBP      76.31
                          5.360    03/31/28     GBP      73.64
                          5.010    09/24/35     GBP      71.57
Broadgate Finance Plc     4.850    04/05/31     GBP      73.55
                          5.000    10/05/31     GBP      66.87
                          5.100    04/05/33     GBP      59.29
                          4.820    07/05/33     GBP      70.87
CGNU Plc                  6.130    11/16/26     GBP      59.72
Heating Finance           7.880    03/31/14     GBP      38.75

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *