TCREUR_Public/090521.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Thursday, May 21, 2009, Vol. 10, No. 99

                            Headlines

A U S T R I A

ARCHITEKT PROFESSOR: Claims Registration Period Ends June 3
CAFE KONDITOREI: Claims Registration Period Ends June 3
MARE GMBH: Claims Registration Period Ends June 3
VIENNA INTERNATIONAL: Claims Registration Period Ends June 2
WALTER KINN: Claims Registration Period Ends June 3


B E L G I U M

FORTIS BANK: S&P Cuts Issue Rating on Hybrid Securities to 'C'


F R A N C E

SOCIETE GENERALE: To Draw on Further US$2.3-Bln State Loan Soon
THOMSON SA: Moody's Changes Default Probability Rating to 'Ca/LD'
VALEO SA: Ex-CEO May Lose Severance Pay on Criminal Complaint


G E R M A N Y

ARCANDOR AG: State Funding May Not Come, Metro Pushes Merger
COMMUNICATION TECHNOLOGY: Claims Registration Period Ends July 9
EUROHYPO: Moody's Cuts Rating on Participation Certificates to B2
INSELHOF GMBH: Claims Registration Period Ends June 5
KAI SERVICE: Claims Registration Period Ends July 6

KLEOPATRA LUX: Moody's Affirms 'Caa1' Corporate Family Rating
LBI-BAD LAASPHER: Claims Registration Period Ends June 10
LIFELINE GMBH: Claims Registration Period Ends June 19
MS MODULSYSTEMS: Claims Registration Period Ends June 4
NEUMANN & POHLKOETTER: Claims Registration Period Ends June 8

PEGASUS PHARMA: Claims Registration Period Ends June 10
PLUS SYSTEMS: Claims Registration Period Ends June 16
POLYALPAN AE: Claims Registration Period Ends June 5
PRINTMEDIAPART VERWALTUNGS: Claims Registration Ends June 4


H U N G A R Y

* Moody's Downgrades BFSRs on Four Hungarian Banks to 'D'


I R E L A N D

BANK OF IRELAND: Chairman to Step Down; Posts EUR7 Mln Loss
BIFROST INVESTMENT: Moody's Lowers Ratings on Two CDS to 'Ca'
EIRLES TWO: Moody's Cuts Rating on EUR100 Mil. Notes to 'Ba2'
KINTYRE CLO: Standard & Poor's Junks Rating on Class E Notes


I T A L Y

CIR-COMPAGNIE INDUSTRIALI: S&P Cuts Corp. Credit Rating to 'BB'
TELECOM ITALIA: Sets Size of Planned 8-Yr US$1.1 Bln Bond


K A Z A K H S T A N

ADAMANT LTD: Creditors Must File Claims by June 19
ALLIANCE BANK: ISDA Says In Default; Misses Principal Payment
EKO OIL: Creditors Must File Claims by June 19
GLOTUR INVEST: Creditors Must File Claims by June 19
KAZ INVENTORY: Creditors Must File Claims by June 19

KAZAKHGOLD GROUP: Fitch Lowers LT Issuer Default Rating to 'C'


K Y R G Y Z S T A N

PROGRESSIVE TECHNOLOGY: Creditors Must File Claims by June 5


L U X E M B O U R G

LUXEMBOURG INVESTMENT: Placed Under Liquidation


N E T H E R L A N D S

FORTIS BANK: S&P Changes CreditWatch on 'BB-' Rating to Developing
STORK BV: Moody's Changes Outlook to Negative, Affirms 'B1' Rating


N O R W A Y

NORSKE SKOG: S&P Cuts Long-Term Issuer Credit Ratings to 'B+'
NORSKE SKOG: S&P Corrects Error Regarding Issue Ratings Outlook


P O L A N D

PKN ORLEN: Moody's Cuts Rating to Ba1 on Deteriorating Performance


R U S S I A

AK BARS: Moody's Reviews 'D-' BFSR for Possible Downgrade
BALT-TRANS-STROY LLC: Creditors Must File Claims by June 7
BERDSKIY CJSC: Creditors Must File Claims by June 7
SIBIRSKO-MOSKOVSKIY LLC: Creditors May File Claims
STROY-DINAMIKA LLC: Creditors Must File Claims by June 7

SUE ULYANOVSKIY: Court Names M. Almakaev as Insolvency Manager
TATNEFT OAO: Net Profit Up 130% Year-on-Year in Jan-March 2009
TNK-BP INTERNATIONAL: S&P Puts 'BB' Ratings on Positive Watch
URENGOY-NEFTE-GAZ CJSC: Creditors Must File Claims by June 7


S L O V A K   R E P U B L I C

CHEMKO STRAZSKE: Put Into Liquidation by Shareholders


S P A I N

AYT COLATERALES: Fitch Assigns 'BB-' Rating on Class D Notes
SANTANDER EMPRESAS: S&P Assigns 'CCC-' Rating on Class F Notes


S W I T Z E R L A N D

CLEVER MENU GMBH: Creditors Must File Proofs of Claim by May 25
METREC AG: Claims Filing Deadline is May 25
MUELLER INDUSTRIE: Creditors Must File Claims by May 25
TEAM RELOCATIONS: Claims Filing Deadline is May 25
TECHCONSULT AG: Creditors Must File Proofs of Claim by May 25


U K R A I N E

ELANTRA LLC: Court Starts Bankruptcy Supervision Procedure
FUTARI-HOLDING: Creditors Must File Claims by June 5
PLEYADY LLC: Creditors Must File Claims by June 4
SIRIUS PLUS: Creditors Must File Claims by May 29
TECHNOPROKS LLC: Creditors Must File Claims by June 5

TEK-MASKO LLC: Creditors Must File Claims by June 5
UKRTATNAFTA: Court Turns Down Ruling on Liquidation

* UKRAINE: Jan-April 2009 Net Losses of Banks Totaled Hr 9.2 Bln


U N I T E D   K I N G D O M

AROSA FUNDING: Moody's Cuts Rating on EUR100 Mil. Notes to 'Ba3'
BAY TRADING: Bought Out of Administration by Rinku Group
BLUE STALLION: Appoints Joint Administrators from Grant Thornton
BRITTANIA BULK: Creditors Meeting Set for Tomorrow
BURDEW CONTRACT: Taps Joint Administrators from PwC

CHROME FUNDING: Moody's Junks Ratings on Three Classes of Notes
CLEAR BLUE: Appoints Joint Administrators from Grant Thornton
CRUCIAL PLAN: Placed Into Compulsory Liquidation
FM GROUP: Buys Back GBP75 Mln Western Harbour Residential Project
GKN HOLDINGS: Moody's Affirms Corporate Family Rating at 'Ba1'

IMPACT OFFICE: Taps Joint Administrators from Tenon Recovery
LADBROKES PLC: Group Profit Down 34% for 4-Mos Ended April 30
LLOYDS BANKING: To Cut 625 Jobs in the UK
MARWOODS2 LTD: Appoints Joint Administrators from PKF
NORTEL NETWORKS: Invest NI Demands Repayment of GBP7.4MM Grant

OLLY'S UK: In Administration; Leonard Curtis Appointed
POWERLITE LTD: Names Joint Administrators from PKF
SONS OF GWALIA: Scheme of Arrangement Hearing Set on May 26
SOVEREIGN MARINE: Creditors' Meeting Scheduled on June 17
TYNESIDE LEISURE: In Administration; Begbies Traynor Appointed

WILLIAM VERRY: Taps Joint Administrators from BDO
WOVEN RUGS: Appoints Joint Administrators from BDO

* CAPMARK FINANCIAL: Compliance to Leverage Ratio Covenant Waived
* Frank Sekula Joins Jefferies in London as Restructuring Head

* Upcoming Meetings, Conferences and Seminars


                         *********


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


ARCHITEKT PROFESSOR: Claims Registration Period Ends June 3
-----------------------------------------------------------
Creditors owed money by Architekt Professor Hannes Lintl GmbH have
until June 3, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Johanna Abel-Winkler
         Franz-Josefs-Kai 49/19
         1010 Vienna
         Austria
         Tel: 533 52 72
         Fax: 533 52 72-15
         E-mail: office@abel-abel.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on June 17, 2009, for the
examination of claims.


CAFE KONDITOREI: Claims Registration Period Ends June 3
--------------------------------------------------------
Creditors owed money by Cafe Konditorei Ishakbaiev KEG have until
June 3, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Katharina Pitzal
         Paulanergasse 9
         1040 Vienna
         Austria
         Tel: 587 31 11, 587 31 12
         Fax: 587 87 50 50
         E-mail: office@pitzal-partner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on June 17, 2009, for the
examination of claims.


MARE GMBH: Claims Registration Period Ends June 3
-------------------------------------------------
Creditors owed money by Mare GmbH have until June 3, 2009, to file
written proofs of claim to the court-appointed estate
administrator:

         Dr. Kurt Freyler
         Seilerstatte 5
         1010 Vienna
         Austria
         Tel: 513 31 65
         Fax: 512 20 01
         E-mail: ra-kanzlei@rant-freyler.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on June 17, 2009, for the
examination of claims.


VIENNA INTERNATIONAL: Claims Registration Period Ends June 2
------------------------------------------------------------
Creditors owed money by Vienna International Limitedm Branc Vienna
have until June 2, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Mag. Andrea Eisner
         Weyrgasse 8/7
         1030 Vienna
         Austria
         Tel: 712 04 77
         Fax: 712 04 77 12
         E-mail: office@ra-eisner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:40 a.m. on June 16, 2009 , for the
examination of claims.


WALTER KINN: Claims Registration Period Ends June 3
---------------------------------------------------
Creditors owed money by Dipl.Ing. Walter Kinn GmbH have until
June 3, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Eva Riess
         Zeltgasse 3/13
         1080 Vienna
         Austria
         Tel: 402 57 01-0 Serie
         Fax: 402 57 01-21
         E-mail: law@riess.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on June 17, 2009, for the
examination of claims.


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


FORTIS BANK: S&P Cuts Issue Rating on Hybrid Securities to 'C'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered to 'C'
from 'CC' its issue rating on Fortis Bank SA/NV's (AA-/Negative/A-
1+) convertible and subordinated hybrid equity-linked securities.

At the same time, S&P removed the rating from CreditWatch with
developing implications, where it was originally placed on Oct. 6,
2008.

This decision reflects S&P's view that Fortis Bank will not be
able to settle the CASHES coupon payment of June 19, 2009, in a
timely manner.  Because S&P understand this coupon suspension is
in accordance with the terms of the hybrid instrument, S&P will
not lower its rating to 'D' on the very day the payment on the
coupon is missed.

Following a massive statutory loss, Fortis SA/NV, Fortis Bank's
former majority shareholder, cut its dividend for financial year
2008.  According S&P's understanding of the issue documentation,
the nonpayment of a dividend by Fortis SA/NV means that the
alternative coupon satisfaction method applies to the CASHES
instruments, which in practice means that Fortis SA/NV must issue
new shares to finance the coupons on these instruments.  S&P
understands that payment on the coupon originally due to investors
on June 19, 2009, will consequently be deferred.

After CASHES will eventually make the delayed coupon payment to
investors, S&P could likely upgrade the rating assigned to this
instrument, possibly by several rating categories.  When taking
this decision, S&P plans to review the possible amendments to the
terms and conditions of CASHES and incorporate the support that
Fortis Bank would likely receive from its 75% ownership by BNP
Paribas.


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


SOCIETE GENERALE: To Draw on Further US$2.3-Bln State Loan Soon
---------------------------------------------------------------
Ladka Bauerova at Bloomberg News reports that Societe Generale SA
Chief Executive Officer Frederic Oudea told Europe 1 radio station
that the bank will draw on a further EUR1.7 billion or US$2.3
billion government loan shortly.

According to the report, the loan is the second instalment of a
total of EUR3.4 billion earmarked for the bank as part of the
government’s aid package to spur lending and revive the French
economy.

Societe Generale SA (OTC:SCGLY) --- http://www.socgen.com/--- is
a France-based banking group.  The Company is structured in five
segments: Retail Banking in France, which operates two
complementary distribution networks in France, Societe Generale
and Credit du Nord; Retail Banking Outside France, which is
present in 40 locations in Central and Eastern Europe,
Mediterranean Basin, Africa and the French Overseas Departments
and Territories; Financial Services, which includes financing of
the sales and capital goods of professionals, consumer credits and
insurance, among others; Asset Management and Investor Services,
which comprises such services as asset management and private
banking, and Financial and Investment Banking, which is organized
around three areas: Actions, Finance and consulting, and Rates,
Changes and Raw Materials.  Societe Generale SA is present in 82
countries and operates a number of subsidiaries, including SG
Immobel, Genefinance, Libecap, SG Hambros Bank Ltd. and SG Srbija,
among others.


THOMSON SA: Moody's Changes Default Probability Rating to 'Ca/LD'
-----------------------------------------------------------------
Moody's Investors Service changed to Ca/LD from Ca the Probability
of Default Rating for Thomson S.A.  The outlook on the ratings
remains negative.

This rating action follows Thomson's failure to repay US$92.5
million private placements due on May 18, 2009 which in Moody's
view constitutes a payment default.  This non-payment is in line
with the company's announcement made on April 28, 2009 stating
that it had obtained waivers from senior creditors until June 16
to continue discussions on its balance sheet restructuring and
that it had agreed with its creditors to defer the required pay
down of its debt during the waiver period.

Oliver Giani, Senior Analyst at Moody's said: "The non-payment of
an instalment on an individual private placement constitutes a
'limited default' under Moody's terminology, despite the fact that
lenders consent has been obtained for this moratorium since the
agreement was triggered by the company's pending negotiations with
its lenders to restructure the balance sheet."

"Based on the stable licensing business, which generates quite
stable revenues of about EUR300 million EBITDA per year and which
is considered to be the backbone of Thomson, Moody's continues to
expect an above average recovery, which is reflected in the Caa3
Corporate Family Rating," Mr. Giani went on to say.  "The C rating
of Thomson's perpetual junior subordinated bonds mirrors the
junior rank of these instruments and the expectation of a high but
not full impairment."

Ratings affected:

Adjustment:

Issuer: Thomson S.A.

  -- Probability of Default Rating, Adjusted to Ca/LD from Ca

Thomson's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Thomson's core industry and Thomson's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

The last rating action for Thomson has been on January 30, 2009,
when Moody's lowered to Caa3 the Corporate Family Rating, to Ca
the Probability of Default Rating and to C the junior subordinated
rating for Thomson's perpetual junior subordinated bonds.

Headquartered in Paris, France, Thomson is a provider of solutions
for the creation, management, delivery and access of video for the
Communication, Media & Entertainment industries operating in three
business segments: Thomson's Technicolor division (formerly
Services) offers its content creator and distributor customer base
services related to the creation, preparation and distribution of
video content.  Thomson Connect (formerly Systems division)
supplies satellite, cable and telecom operators with access and
home networking devices and software platforms.  Thomson conducts
extensive research activities to innovate and to support its
solutions to the Communication, Media & Entertainment industries.
The Technology division combines Thomson's research and
exploitation of its patent portfolio through licensing programs.
Revenues for fiscal year 2008 amount to EUR4.8 billion.


VALEO SA: Ex-CEO May Lose Severance Pay on Criminal Complaint
-------------------------------------------------------------
Laurence Frost at Bloomberg News reports that Valeo SA filed a
criminal complaint over the recording of board meetings under
former Chief Executive Officer Thierry Morin and will seek to
recover his EUR3.2 million (US$4.3 million) severance payout.

Valeo has handed police the findings of an internal probe into the
tapings, Bloomberg News cited spokeswoman Kate Philipps as saying.

In a statement, Valeo said following the recent discovery of
secret recordings of certain meetings of Board members, the
company conducted an internal investigation.  In light of the
information collected, the company said its Board of Directors has
decided to file a lawsuit.  The Board also decided to recommend to
shareholders not to approve the resolution that will be submitted
to the Annual General Meeting of Shareholders on June 9, 2009
regarding the agreements concluded with Mr. Morin on March 20,
2009 when he ceased to serve as Chairman & CEO of the company.

According to Bloomberg News, Mr. Morin was ousted on March 23
after clashing with other board members on strategy and
governance.  When challenged about the recordings weeks later, Mr.
Morin handed over several that were still in his possession and
acknowledged that they had been made on his initiative, while
denying any wrongdoing, the report says citing three people with
knowledge of the matter who asked not to be named.  The criminal
complaint, filed late on May 15, includes allegations of theft,
misappropriation of funds, violation of privacy and abuses of
power and trust, the Paris prosecutor’s office said as cited in
the report.

                         Public Outcry

Gabriele Parussini and Nathalie Boschat at The Wall Street Journal
report that French Labor Minister Brice Hortefeux added to
criticism of the severance package that Valeo paid to Mr. Morin,
urging shareholders to reject the payment in a vote next month.

According to The Journal, Mr. Hortefeux said in an interview with
RTL radio station Tuesday that it was inconceivable that Mr. Morin
should be paid a EUR3.2 million (US$4.3 million) package after the
EUR207 million net loss the parts maker posted for last year.

The Journal says the comments add to the public outcry against Mr.
Morin's payments and to growing anger in France about executive
pay in general.  The Journal recalls in early April, France banned
companies that get state funding from issuing stock options to top
managers and limited some other forms of compensation.

The government, which owns 8.33% of Valeo's capital, has said it
would vote against the package at the shareholders' meeting,
according to The Journal.

                           About Valeo

France-based Valeo SA (EPA:FR) --- http://www.valeo.com/--- is an
industrial company focused on the design, production and sale of
components, systems and modules for cars and trucks on the
original equipment market and also the aftermarket via its
subsidiary, Valeo Service.  The Company has 10 products families:
lighting systems, wiper systems, interior controls, electrical
systems, security systems, engine management systems, compressors,
climate control, engine cooling and transmissions.  As of December
2008, the Company is present in 27 countries with 121 production
sites, 61 Research and Development centers and 10 distribution
platforms.  On May 31, 2008, Valeo SA sold its heavy duty engine
cooling division to EQT.  The Company also entered the Russian
market in 2008 with the creation of a joint venture with Russian
automotive systems supplier, Itelma.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 9,
2009, Moody's Investors Service downgraded to Ba1 from Baa3 the
long-term rating and to Not Prime from Prime-3 the short-term
rating of Valeo S.A.  At the same time Moody's assigned a Ba1
Corporate Family Rating.  The rating action concludes the review
for downgrade initiated on December 22, 2008.  The outlook is
negative.


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


ARCANDOR AG: State Funding May Not Come, Metro Pushes Merger
------------------------------------------------------------
Arcandor AG's request for state support faces opposition and risks
not being granted.

Tony Czuczka at Bloomberg News reports that a lawmaker from
Chancellor Angela Merkel's party said Arcandor doesn't deserve
government aid as it seeks to extend bank loans and considers
merger talks.  "I'm strictly against it," Michael Fuchs, a
Christian Democrat and member of the German parliament's Economic
Affairs Committee, told Bloomberg News in a phone interview.
Arcandor's problems predate the financial and economic crisis and
"this isn't a task for the government,"
Mr. Fuchs said.

In a May 15 statement, Arcandor said it is "banking on state
guarantees of EUR650 million" by the end of this week and is "also
applying for a loan from the Kreditanstalt fuer Wiederaufbau (KfW)
from a special program launched for that purpose."

Arcandor remains in talks with a group of banks about extending a
credit line that expires on June 12, lender BayernLB said as cited
by Bloomberg News.

Dow Jones Newswires says Arcandor needs to refinance EUR650
million by mid-June and another EUR300 by September as well as
find EUR900 million to fund a planned revamp.

Arcandor noted in its May 15 statement that it fulfills the strong
criteria for state support laid down in the "European Union
Guidelines on State Aid for Rescuing and Restructuring Firms in
Difficulty" as the company was neither insolvent nor overindebted
before the reference date of July 1, 2008 and the time period of
two years before.

However, Bloomberg News says according to a statement from the
Economy Ministry, under European Union conditions that apply to
the German fund, only companies that slid "into problems" after
July 1 qualify for aid.  Arcandor "had problems before June 30,"
Bloomberg News cited Deputy Economy Minister Hartmut Schauerte as
saying.

"As in all such cases, the question arises whether it's the
financial markets and the global economic crisis, or other
factors," Joachim Poss, the Social Democrats' parliamentary
spokesman for finance, told Bloomberg News in an interview.  "This
company has been struggling for years, independently of the
crisis."

                         Metro's Proposal

Dow Jones Newswires reports that Arcandor's competitor, Metro AG,
has proposed a combination of the two companies' department store
chains.

Metro is interested in combining Arcandor's Karstadt stores with
its own Kaufhof chain, but doesn't want to buy the stores or
acquire Karstadt's headquarters in Essen, Dow Jones cited a Metro
spokesman as saying.

Dow Jones says the spokesman confirmed that Metro's Chief
Executive Eckhard Cordes had written a letter to Economics
Minister Karl-Theodor zu Guttenberg and would be meeting him in
the next few days to discuss the future of Germany's department
store sector and Arcandor's bid for state aid.

If the stores are combined, Metro would aim to sell the Karstadt-
Kaufhof business in the long-term as it doesn't consider the
department store unit one of its strategic operations due to a
lack of international expansion potential under the Metro
umbrella, the spokesman said as cited by Dow Jones.  Metro is
willing to talk to Arcandor, the spokesman added, but declined to
say whether talks are currently taking place.

A Bloomberg News report on May 18 said Arcandor is willing to
discuss merging its Karstadt unit with Metro's Kaufhof.

According to the report, Arcandor spokesman Gerd Koslowski said
the Essen, Germany-based company has had no contact from Metro and
that obstacles to a merger of the chains would include the likely
loss of "many jobs" and antitrust constraints.

However, Maria Sheahan at Reuters, citing Sueddeutsche Zeitung,
reports that Arcandor Chief Executive Karl-Gerhard Eick said he
opposed Metro's proposal to combine the two companies' department
store chains.  Metro's move on its smaller rival was a ill-timed
tactical move and an attempt to thwart Arcandor's efforts to
obtain state aid, Reuters cited Mr. Eick as saying in an interview
with Sueddeutsche Zeitung.  "Presenting a private solution and
thereby preventing guarantees -- that cannot happen," Mr. Eick
said.

                        About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) --- http://www.arcandor.com/
--- formerly KarstadtQuelle AG, is a tourism and retail group.
Its three core business areas are tourism, mail order services and
department store retail.  The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt.  Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG.  It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle.  Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.


COMMUNICATION TECHNOLOGY: Claims Registration Period Ends July 9
----------------------------------------------------------------
Creditors of Communication Technology Service Team GmbH have until
July 9, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on June 10, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

        The District Court of Frankfurt/Main
        Hall 1
        Building F
        Klingerstrasse 20
        60313 Frankfurt/Main
        Germany

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

The insolvency manager can be reached at:

        Manfred Burghardt
        Theobald - Christ - St. 24
        D 60316 Frankfurt/Mainz
        Germany
        Tel: 069/94414770
        Fax: 069/94414780

The court opened bankruptcy proceedings against the company on
May 5, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

        Communication Technology Service Team GmbH
        Flinschstrasse 59
        60388 Frankfurt am Main
        Germany


EUROHYPO: Moody's Cuts Rating on Participation Certificates to B2
-----------------------------------------------------------------
Following the downgrade of several hybrid instruments of
Commerzbank, Dresdner and Eurohypo on May 11, 2009, Moody's
Investors Service downgraded the ratings on Eurohypo AG's EUR200
million floating rate note participation certificates due in 2017
to B2 from A2.

   Assumptions for B2 Rating in Line With Other Ut2 Instruments

In line with other Upper Tier 2 instruments ("Genussscheine")
referenced to Eurohypo that were downgraded to B3 in the recent
rating action on May 11, 2009, Moody's expects that coupons on
these profit participation certificates may not be paid for two to
three years.  However, it anticipates that this instrument will
enjoy a higher potential for recovery on deferred coupon payments
due to its longer time to maturity in comparison with the bank's
other outstanding Genussscheine, which will mature in 2009 and
2013 respectively.  Accordingly, a B2 rating has been assigned to
this instrument, which is one notch above the ratings for the
other two participation certificates.

The rating decision takes into account the compensation measures
required by the European Commission in return for giving approval
for state aid granted to Commerzbank (Aa3/Prime-1/C-); these
compensation measures stipulated that profit-related payments on
hybrid capital instruments such as silent participation and profit
participation certificates should be made only if such payments
are mandatory without utilization of reserves or special
provisions pursuant to section 340g of the German Trade Act of the
German Commercial Code.  This restriction applies, subject to
other payment conditions under the terms, to payments in 2010 for
the fiscal year 2009 and for payments in 2011 for the fiscal year
2010.

The outlook on the B2 rating is stable as it is based on an
expected loss calculation and is not notched from the senior
unsecured debt ratings of Eurohypo AG (which carry a negative
outlook).

The rating on this instrument -- which is a cumulative junior
subordinated bond qualifying as Upper Tier 2 capital -- was not
addressed in the rating actions dated May 11, 2009 and March 2,
2009.  It contains mandatory interest deferral and principal
write-down triggers linked to a balance sheet loss of Eurohypo AG;
any deferred coupons are cumulative until the maturity date.

                    Other Ratings Unchanged

Eurohypo AG's bank financial strength rating remains at D (which
maps to a Baseline Credit Assessment of Ba2), the senior unsecured
debt and deposit ratings are at A1/Prime-1 and the senior
subordinated debt is rated A2, all with negative outlooks.

             Rating History and Moody's Methodologies

The last rating action on Eurohypo was on May 11, 2009, when
Moody's downgraded the Tier 1 instruments (trust preferred
securities) issued by Eurohypo Capital Funding Trust I and II to
Caa1 and the Upper Tier 2 instruments ("Genussscheine") issued by
Hypothekenbank in Essen to B3.

Headquartered in Eschborn, Germany, Eurohypo is a fully owned
subsidiary of Commerzbank.  Based on preliminary results at the
end of 2008, Eurohypo reported total assets of EUR292 billion and
a pre-tax loss of EUR1.4 billion for the full year.


INSELHOF GMBH: Claims Registration Period Ends June 5
-----------------------------------------------------
Creditors of Inselhof GmbH, Gaststatte/Beherbergung have until
June 5, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10.00a.m. on July 15, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Stralsund
         Hall AE 26
         House A
         Bielkenhagen 9
         Stralsund
         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:

         Christian Langhoff
         C.-Heydemann-Ring 55
         18437 Stralsund
         Germany

The court opened bankruptcy proceedings against the company on
May 1, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Inselhof GmbH, Gaststatte/Beherbergung
         Attn: Frank Behn, Manager
         Dorf St. 9 a
         17459 Zempin
         Germany


KAI SERVICE: Claims Registration Period Ends July 6
---------------------------------------------------
Creditors of Kai Service GmbH have until July 6, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Aug. 6, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich
         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:

         Christian Gerloff
         Nymphenburger St. 139
         80636 Muenchen
         Germany
         Tel: 089/120260
         Fax: 089/12026137

The court opened bankruptcy proceedings against the company on
May 1, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Kai Service GmbH
         Attn: Lydia Stehberger, Manager
         Attn: Bodenseestrasse 20
         81241 Muenchen
         Germany


KLEOPATRA LUX: Moody's Affirms 'Caa1' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed the Caa1 Corporate Family
Rating of Kleopatra Lux 1 S.a.r.l. (formerly Kloeckner-Pentaplast
S.A.).  The outlook on the rating was changed to negative from
stable.

The affirmation of the Caa1 Corporate Family Rating considers the
stabilization in the company's operating performance over recent
months and its adequate liquidity situation.  The change of the
outlook to negative, however, reflects the ongoing difficult
business environment which should make it challenging to notably
reduce the company's high leverage over the short to medium term.

The current rating incorporates Moody's expectation that
Kloeckner-Pentaplast will be able to at least preserve the
recently stabilized profitability trend on the back of extensive
restructuring and cost saving initiatives despite the bleak
macroeconomic environment and associated volume pressure.  Moody's
also incorporates the expectation that the company can preserve an
adequate liquidity position and that its shareholder Blackstone
would continue to be supportive in case of need.

Moody's also notes that the company has started to buy back parts
of its outstanding bank debt at a discount in the secondary
market.  While these transactions help to reduce interest costs
and reduce leverage, Moody's notes that further buy backs --  if
material -- could be considered a distressed exchange under
Moody's definitions.  Under Moody's definitions debt-buy backs in
the secondary market could be considered a deemed default even if
no payment default occurred when buy backs are designed to
alleviate an unsustainable capital structure and result in an
economic loss for creditors.

Kloeckner-Pentaplast's Caa1 Corporate Family Rating continues to
reflect (i) a weak financial profile from high Moody's adjusted
leverage of above ten times as of September 2008, (ii) a certain
share of commoditized products whereby the product mix has
recently trended towards an increasing share of specialty
products, (iii) its dependence on volatile resin costs and (iv) a
weak operating performance over 2008, which however, has
stabilized over the past months.

Moody's also notes the company's large size and good market
position in the rigid plastic packaging segment with leading
positions in most of its business areas, its ability to manage
volatile raw material costs -- albeit with a time lag -- as well
as the current adequate liquidity position.

The last rating action was implemented on April 3, 2008, when the
corporate family rating was downgraded to Caa1 with a stable
outlook.

Kleopatra Lux 1 S.a.r.l., headquartered in Montabaur, Germany with
legal domicile in Luxembourg, is a global leader in the
manufacturing of rigid plastic films for the pharmaceutical, food,
medical, electronics and other packaging industry.  The company
generated about EUR1.1 billion of sales during FY 2008 (ending
September), approximately 60% of which came from Europe and about
40% from the US, Canada and Latin America.  The company also
generates a smaller portion of revenues in Asia.  Kloeckner-
Pentaplast has 20 manufacturing sites in 11 countries with
approximately 3,200 employees.  The company is owned by private
equity investor Blackstone.


LBI-BAD LAASPHER: Claims Registration Period Ends June 10
---------------------------------------------------------
Creditors of LBI-Bad Laaspher Bauplanungs und
Investitionsverwaltungs GmbH have until June 10, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on June 24, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Siegen
         Hall 009
         Ground Floor
         Main Building
         Berliner Str. 21-22
         57072 Siegen
         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:

         Carsten Koch
         Mauer St. 1
         35781 Weilburg
         Germany
         Tel: 06471/516630
         Fax: 06471/516639

The court opened bankruptcy proceedings against the company on
May 1, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         LBI-Bad Laaspher Bauplanungs und
         Investitionsverwaltungs GmbH
         Garten St. 8
         57334 Bad Laasphe
         Germany

         Attn: Friedrich Wilhelm Becker, Manager
         Muehlfeld 11
         57334 Bad Laasphe
         Germany


LIFELINE GMBH: Claims Registration Period Ends June 19
------------------------------------------------------
Creditors of Lifeline GmbH have until June 19, 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 July 17, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Norderstedt
         Hall B
         Rathausallee 80
         22846 Norderstedt
         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. Sven-Holger Undritz
         Jungfernstieg 51
         20354 Hamburg
         Germany

The court opened bankruptcy proceedings against the company on
May 5, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Lifeline GmbH
         Boschstrasse 20
         24568 Kaltenkirchen
         Germany
         Attn: Herrn Stefan Osterhoff, Manager
         Falkenkamp 11c
         22846 Norderstedt
         Germany


MS MODULSYSTEMS: Claims Registration Period Ends June 4
-------------------------------------------------------
Creditors of MS Modulsystems GmbH have until June 4, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on July 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 Crailsheim
         Room 117
         Schillerstrasse 1
         74564 Crailsheim
         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. Helmut Eisner
         Josef-Schmitt- St.10
         97922 Lauda-Koenigshofen
         Germany
         Tel. 09343/2065
         Fax:  09343/3833)

The court opened bankruptcy proceedings against the company on
May 1, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         MS Modulsystems GmbH
         Attn: Sieghard Lang, Manger
         Hofacker St. 11
         74564 Crailsheim
         Germany


NEUMANN & POHLKOETTER: Claims Registration Period Ends June 8
-------------------------------------------------------------
Creditors of Neumann & Pohlkoetter Jagd und Sportwaffen GmbH have
until June 8, 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 July 15, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Osnabrueck
         Branch N 301
         Nebenstelle
         Kollegienwall 10
         49074 Osnabrueck
         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:

         Barbara Fahlke
         Neubrueckenstrasse 35/37
         48143 Muenster
         Germany
         Tel: 0251/4816690
         Fax: 0251/48166911

The court opened bankruptcy proceedings against the company on
May 4, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Neumann & Pohlkoetter Jagd und Sportwaffen GmbH
         Zeppelinstrasse 15
         49134  Wallenhorst
         Germany

         Attn: Johannes Pohlkoetter, Manager
         Nienort 3
         49086 Osnabrueck
         Germany


PEGASUS PHARMA: Claims Registration Period Ends June 10
-------------------------------------------------------
Creditors of Pegasus Pharma Arzneimittelherstellung GmbH have
until Pegasus Pharma Arzneimittelherstellung GmbH, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:20 a.m. on July 8, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Hannover
         Hall 226
         Second Upper Floor
         Service Bldg.
         Hamburger Allee 26
         30161 Hannover
         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:

         Manuel Sack
         Schiffgraben 30
         30175 Hannover
         Germany
         Tel: 0511 36602-0
         Fax: 0511 36602-55

The court opened bankruptcy proceedings against the company on
May 5, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Pegasus Pharma Arzneimittelherstellung GmbH
         Feodor-Lynen- St. 5
         30625 Hannover
         Germany

         Attn: Dr. Guenther Loehr, Manger
         Im Buergerstock 8
         79241 Ihringen-Wasenweiler
         Germany


PLUS SYSTEMS: Claims Registration Period Ends June 16
-----------------------------------------------------
Creditors of Plus Systems GmbH have until June 16, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:15 a.m. on July 7, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court Heilbronn
         Hall 4
         Rollwagstr. 10a
         74072 Heilbronn
         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:

         Ado Nika
         Uhlandstrasse 57-61
         74072 Heilbronn
         Germany
         Tel: 07131/96540
         Fax: 07131/965432

The court opened bankruptcy proceedings against the company on
May 4, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Plus Systems GmbH
         Attn: Martin Bruckner, Manager
         Schwaigerner Strasse 1
         74211 Leingarten
         Germany


POLYALPAN AE: Claims Registration Period Ends June 5
----------------------------------------------------
Creditors of Polyalpan AE GmbH have until June 5, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10.30 a.m. on June 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 Pforzheim
         Hall 142 N
         Lindenstr. 8
         75179 Pforzheim
         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:

         Ansgar Zipf
         Kaiser St. 195-197
         76133 Karlsruhe
         Germany

The court opened bankruptcy proceedings against the company on
May 1, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Polyalpan AE GmbH
         Attn: Johann Brotzel, Manager
         Hanauer St. 6
         75181 Pforzheim
         Germany


PRINTMEDIAPART VERWALTUNGS: Claims Registration Ends June 4
-----------------------------------------------------------
Creditors of Printmediapart Verwaltungs GmbH have until June 4,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:40 a.m. on June 22, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Essen
         Meeting Hall 293
         Zweigertstr. 52
         45130 Essen
         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:

         Eberhard Stock
         Willhelmshofallee 75
         47800 Krefeld
         Germany

The court opened bankruptcy proceedings against the company on
May 4, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Printmediapart Verwaltungs GmbH
         Attn: Michael Elbracht, Manager
         Hibernia St. 8
         45879 Gelsenkirchen
         Germany


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


* Moody's Downgrades BFSRs on Four Hungarian Banks to 'D'
---------------------------------------------------------
Moody's Investors Service took rating actions on nine Hungarian
banks.  The ratings of these institutions were downgraded: OTP
Bank, OTP Mortgage Bank, CIB Bank, K&H Bank, MKB Bank, Erste Bank
Hungary, Budapest Bank and MFB Hungarian Development Bank.  The
ratings of FHB Mortgage Bank were confirmed, but the outlook was
changed to negative from stable.

The downgrades, in many cases of several notches, reflect Moody's
view that the rapid deterioration of the Hungarian operating
environment, which has resulted in the rating agency downgrading
the Hungarian government bond rating by two notches to Baa1
(negative outlook) since November 2008, is putting significant
pressure on the banks' standalone creditworthiness, as measured by
their bank financial strength ratings.

Additionally, Moody's says that it has reviewed the probability of
systemic support for the rated banks, as outlined in the Special
Comment entitled "Financial Crisis More Closely Aligns Bank Credit
Risk and Government Ratings in Non-Aaa Countries", which was
published in May 2009.

                   Weakening Capital Positions

Moody's explains that, with the Hungarian economy entering
recession, the likelihood of corporate defaults is rising and that
this will lead to increased losses on banks' corporate loan
portfolios.  The rating agency adds that the worsening situation
in the job market, forint volatility and potential decline in
house prices are also likely to result in increased losses on
retail portfolios.  "We believe that these losses are likely to
significantly weaken the capital position of most Hungarian banks
over the next two years," said Gabriel Kadasi, Moody's lead
analyst for the Hungarian banks.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This is discussed in a Special Comment
entitled "Calibrating Bank Ratings in the Context of the Global
Financial Crisis", which was published in February 2009.  The
BFSRs of all the Hungarian rated banks now carry negative
outlooks, reflecting the still rapidly worsening operating
environment, which may result in a further and significant
deterioration in the banks' financial fundamentals.

               Refined Systemic Support Assessment

Moody's has also refined its assessment of the probability of
systemic support available from the Hungarian state as the erosion
in the local economy's underlying credit fundamentals and the
resulting reduced policy flexibility has adversely affected the
government's ability to support the banking sector.

Moody's previously used the local currency deposit ceiling (LCDC;
Aaa in the case of Hungary) as the main input for its assessment
of the ability of the national government to support the banks.
Although anchoring the probability of support at the LCDC is
appropriate in most circumstances -- regarding the provision of
liquidity to a selected number of institutions over a short period
of time -- this might overestimate the capacity, and even
willingness, of a central bank to support financial institutions
in the event of a banking crisis becoming both truly systemic and
protracted.

Moody's therefore believes that the government's local currency
debt rating (usually adjusted by no more than two notches of
uplift due to the array of tools available to the central bank to
support the banking system) should have a greater weight when
considering the probability of systemic support.

Thus, the anchor used for measuring the influence of the
probability of systemic support on banks' ratings is now Hungary's
government bond rating of Baa1 (negative outlook) plus one notch
of uplift, resulting in an A3 input.  Although the refined
approach allows two notches of uplift from the government bond
rating, given the difficult economic and fiscal situation Hungary
is facing, Moody's says that one notch is more appropriate,
reflecting its view that the probability of the risk that systemic
banking losses in the system will eventuate is medium to high.

Moody's views Hungary as one of the riskier banking systems in
Central and Eastern Europe, given the large share of foreign
currency lending in total lending (more than 60%), which has been
driven by fast growth in wholesale funding, primarily in foreign
currency.  With increased forint volatility and with the economy
shrinking by as much as 5% in 2009, the credit risks for the
banking sector have increased rapidly.

The one notch of uplift from the government bond rating also
reflects Moody's view of the state's willingness to support the
banking system.  Since the escalation of the crisis in Hungary in
H2 2008, the government and the central bank have taken steps to
ease pressure on banks' by supporting the liquidity of the banking
system in both local and foreign currency, channelling part of the
IMF package into the banking system and approving a law that
allowing banks to strengthen their capital.

                          Rating Actions

Moody's has taken these rating actions on the Hungarian banks:

                             OTP Bank

Moody's downgraded OTP Bank's BFSR to D+ (mapping to baseline
credit assessment -- BCA -- of Baa3) from C+ (A2).  The downgrade
of the bank's BFSR was driven by Moody's expectation that
potential losses on the bank's portfolio, especially given its
significant exposure to less developed markets in the CEE region
such as Ukraine and Russia but also due to rapid weakening of its
domestic operating environment, will exert significant pressure on
its profitability and capitalization.

Due to the downgrade of the BFSR and Moody's refinement of its
assessment of the probability of systemic support, OTP Bank's
long-term local currency deposit and foreign currency debt ratings
were downgraded to Baa1 (negative) from Aa3 and the long-term
foreign currency subordinated debt rating was downgraded to Baa2
(negative) from A1.  The short-term local currency deposit and
foreign currency debt ratings were downgraded to Prime-2 from
Prime-1.  The foreign currency deposit ratings were affirmed at
Baa1 (negative)/Prime-2 as the long-term rating was already capped
by the Baa1 ceiling for foreign currency deposits in Hungary.

The bank's debt and deposit ratings continue to benefit from two
notches of uplift from the BCA due to Moody's assessment of the
very high probability of systemic support, which is based on the
bank's very strong retail and significant corporate franchise in
Hungary, but also incorporates the bank's increasing exposure to
foreign markets, which account for nearly 47% of its assets.  The
negative outlook on the long-term debt and deposit ratings
reflects the negative outlook on the BFSR.

                         OTP Mortgage Bank

Moody's downgraded OTP Mortgage Bank's BFSR to D+ (Baa3) from C+
(A2) and the local currency deposit ratings to Baa1
(negative)/Prime-2 from Aa3/Prime-1.  The foreign currency deposit
ratings were affirmed at Baa1 (negative)/Prime-2 as the long-term
rating was already capped by the Baa1 ceiling for foreign currency
deposits in Hungary.

Moody's downgrade of OTP Mortgage Bank's ratings was driven solely
by the downgrade of its parent as this entity is fully integrated
into OTP Bank and operates as an independent legal entity only for
legislative reasons.  The negative outlook on OTP Mortgage Bank's
ratings reflects Moody's expectation that OTP Mortgage Bank's
ratings will continue to follow the movements of its parent's.

                             CIB Bank

Moody's downgraded CIB Bank's BFSR to D (Ba2) from C- (Baa2),
reflecting the rating agency's view that potential losses in the
bank's loan portfolio (more than 40% of total lending represents
exposure to leasing and commercial real estate, which are seen as
being relatively risky asset classes) and its relatively modest
capitalization in comparison with that of some of its peers could
result in an increased need for new capital.  However, the rating
also reflects that the bank's capital base is managed by its
parent, Intesa SanPaolo Spa (Aa2/P-1/B-), regarding which Moody's
assesses a very high probability of support for CIB Bank in the
event of need.

Due to the downgrade of the BFSR and Moody's refined assessment of
systemic support, the bank's long-term local currency deposit and
debt ratings were downgraded to Baa1 (negative) from Aa3.  The
short-term local currency deposit rating was downgraded to Prime-2
from Prime-1.  The foreign currency deposit ratings were affirmed
at Baa1 (negative)/Prime-2 as the long-term rating was already
capped by the Baa1 ceiling for foreign currency deposits in
Hungary.  The negative outlook on the long-term debt and deposit
ratings reflects the negative outlook on the BFSR.

                             K&H Bank

Moody's downgraded K&H Bank's BFSR to D+ (Baa3) from C- (Baa2),
based on likely losses resulting from the structure of the bank's
loan portfolio, which in the case of K&H Bank reflects its focus
on retail lending and its less prominent position in lending to
commercial real estate.  The rating is, however, supported by the
bank's strong pre-crisis profitability, particularly its retail
franchise.

Due to the downgrade of the BFSR and Moody's refined assessment of
systemic support, the bank's local currency deposit ratings were
downgraded to A3 (negative)/Prime-2 from Aa3/Prime-1.  The bank's
rating remain above the Baa1 government bond rating as it is not
capped by the LCDC and benefit from uplift from the BCA as a
result of Moody's assessment of a very high probability of both
systemic and parental support, from KBC Bank N.V. (rated
Aa3/Prime-1/C+).

The foreign currency deposit ratings were affirmed at Baa1
(negative)/Prime-2 as the long-term rating was already capped by
the Baa1 ceiling for foreign currency deposits in Hungary.  The
negative outlook on the bank's long-term deposit ratings reflects
(i) the negative outlook on its own BFSR and (ii) the negative
outlook on its parent's C+ BFSR, which is used as the anchor for
the assessment of the probability of parental support.

                             MKB Bank

Moody's downgraded MKB Bank's BFSR to D (Ba2) from C- (Baa2),
reflecting the rating agency's view that potential losses in the
bank's loan portfolio (which includes a large share of lending to
commercial real estate) and modest profitability (due to its focus
on large corporates) in comparison with some of its peers could
result in substantial pressure on the bank's financial
fundamentals.  Moody's takes into account the capital injection
that the bank received this year from its parent, Bayerische
Landesbank (rated A1/P-1/D-).

Due to the downgrade of the BFSR and the downgrade of the BFSR of
MKB Bank's parent, Bayerische Landesbank, to D- from C- on 13 May
2009, as well as the refined assessment of systemic support, the
bank's local currency deposit and foreign currency debt ratings
were downgraded to Baa2 (negative)/Prime-2 from A1/Prime-1.  The
subordinated debt rating was downgraded to Baa3 (negative) from A2
and the foreign currency deposit ratings to Baa2 (negative) from
Baa1.  The negative outlook on the long-term debt and deposit
ratings reflects the negative outlook on MKB Bank's BFSR.

                        Erste Bank Hungary

Moody's downgraded Erste Bank Hungary's BFSR to D (Ba2) from D+
(Ba1).  The rating action, a downgrade of just one notch, was
driven by Moody's view that potential losses in the bank's more
retail-focused portfolio, although significant, are likely to be
lower than in the case of banks with mostly corporate franchises.
The rating agency says that it has taken into consideration that
the bank's capital base is managed by its parent, Erste Group Bank
(Aa3/P-1/C-), regarding which Moody's assesses a very high
probability of support for Erste Bank Hungary in the event of
need.

Due to the downgrade of the BFSR and the refined assessment of
systemic support, the bank's deposit ratings were downgraded to
Baa2 (negative)/Prime-2 from A3/Prime-2 for local currency and
Baa1/Prime-2 for foreign currency.  The negative outlook on the
long-term deposit ratings reflects the negative outlooks on Erste
Bank Hungary's D BFSR and Erste Group Bank's C- BFSR, which is
used as the anchor for the assessment of the probability of
parental support.

                          Budapest Bank

Moody's downgraded Budapest Bank's BFSR to D (Ba2) from D+ (Baa3),
reflecting the likely losses resulting from the bank's focus on
consumer lending and auto finance, which are seen as being more
risky than the mortgage lending that dominates the retail
portfolios of most of its peers.  On the positive side, the bank
has not been involved in commercial real estate lending and its
capitalization is robust.

Due to the downgrade of the BFSR and the refined assessment of
systemic support, the bank's deposit ratings were downgraded to
Baa2 (negative)/Prime-2 from A1/Prime-1 for the local currency and
Baa1/Prime-2 for the foreign currency deposit ratings.  The long-
term deposit ratings carry a stable outlook, as they benefit from
uplift from the BCA due to Moody's assessment of a very high
probability of parental support from GE Capital (rated Aa2 with
stable outlook) and it would take a significant downgrade of
either Budapest Bank's or its parent's BFSR for its deposit
ratings to be affected.

                        FHB Mortgage Bank

Moody's affirmed the D+ BFSR (Ba1) and confirmed the Baa3/Prime-3
deposit ratings of FHB Mortgage Bank. Moody's changed the outlook
to negative from stable on all the ratings.  FHB Mortgage Bank's
D+ BFSR is underpinned by the bank's good capitalization (which
was boosted by a capital injection from the state) and likely low
losses on its portfolio, which mainly consists of refinancing
loans and retail mortgages.  The negative outlook reflects the
rapidly deteriorating operating environment, which might drive a
more dramatic deterioration in the bank's financial fundamentals.

                  MFB Hungarian Development Bank

Moody's downgraded MFB Hungarian Development Bank's long-term
foreign currency debt rating to Baa1 (negative) from Aa2
reflecting Moody's view that the ability and the willingness of
the Hungarian State to support the development bank in foreign
currency is reflected in the government's bond ratings, which also
carry a negative outlook, as shown by the rating agency's
application of its refined assessment of systemic support.  The
Baa1 (negative)/Prime-2 foreign currency deposit ratings, which
were already capped by the ceiling for foreign currency deposits
in Hungary, were affirmed.

             Previous Rating Actions and Methodologies

Please note that this press release does not deal with possible
implications for the covered bond ratings of Hungarian banks.

Moody's last rating action on OTP Bank was on March 31, 2009, when
its long-term foreign currency deposit rating was downgraded to
Baa1 with negative outlook from A3 with negative outlook following
a sovereign rating action.  Moody's also placed OTP Bank's Prime-1
short-term local currency deposit and foreign currency debt
ratings on review for possible downgrade.

Headquartered in Budapest, Hungary, OTP Bank reported consolidated
IFRS net income of HUF240.4 billion (EUR903 million) in 2008 and
total assets of HUF9.379 trillion (EUR35.27 billion) as of
December 31, 2008.

Moody's last rating action on OTP Mortgage Bank was on March 31,
2009, when its long-term foreign currency deposit rating was
downgraded to Baa1 with negative outlook from A3 with negative
outlook following a sovereign rating action.  Moody's also placed
OTP Mortgage Bank's Prime-1 short-term local currency deposit
rating on review for possible downgrade.

Headquartered in Budapest, Hungary, OTP Mortgage Bank reported
audited IFRS net income of HUF5.3 billion (EUR21 million) in 2007
and total assets of HUF1.239 trillion (EUR4.9 billion) as of
December 31, 2007.

Moody's last rating action on CIB Bank was on March 31, 2009, when
its long-term foreign currency deposit rating was downgraded to
Baa1 with negative outlook from A3 with negative outlook following
a sovereign rating action.  Moody's also placed CIB Bank's Prime-1
short-term local currency deposit rating on review for possible
downgrade.

Headquartered in Budapest, Hungary, CIB Bank reported IFRS
consolidated net income of HUF28.162 billion (EUR105.9 million) in
2008 and total assets of HUF3.038 trillion (EUR11.42 billion) as
of December 31, 2008.

Moody's last rating action on K&H Bank was on March 31, 2009, when
its long-term foreign currency deposit rating was downgraded to
Baa1 with negative outlook from A3 with negative outlook following
a sovereign rating action.  Moody's also placed the bank's
Aa3/Prime-1 local currency deposit ratings on review for possible
downgrade.

Headquartered in Budapest, Hungary, K&H Bank reported IFRS
consolidated net income of HUF25.89 billion (EUR97 million) in
2008 and total assets of HUF3.182 trillion (EUR11.9 billion) as of
December 31, 2008.

Moody's last rating action on MKB Bank was on March 31, 2009, when
its long-term foreign currency deposit rating was downgraded to
Baa1 with negative outlook from A3 with negative outlook following
a sovereign rating action.  Moody's also placed MKB's Prime-1
short-term local currency deposit and foreign currency debt
ratings on review for possible downgrade.

Headquartered in Budapest, Hungary, MKB Bank reported IFRS
consolidated 2008 net income of HUF7.16 billion (EUR27.04 million)
and total assets of HUF2.885 trillion (EUR10.9 billion) as of
December 31, 2008.

Moody's last rating action on Erste Bank Hungary was on April 1,
2009 when its local currency deposit ratings were downgraded to
A3/Prime-2 from A2/Prime-1 following a rating action on the
parent.  The ratings were placed on review for further possible
downgrade.

Headquartered in Budapest, Hungary, Erste Bank Hungary reported
IFRS consolidated net income of HUF32.36 billion (EUR121.7
million) in 2008 and total assets of HUF2.63 trillion (EUR9.88
billion) as of December 31, 2008.

Moody's last rating action on Budapest Bank was on March 31, 2009,
when its long-term foreign currency deposit rating was downgraded
to Baa1 with negative outlook from A3 with negative outlook
following a sovereign rating action.  Moody's also placed Budapest
Bank's A1/Prime-1 local currency deposit ratings and Baa1/Prime-2
foreign currency deposit ratings on review for possible downgrade.

Headquartered in Budapest, Hungary, Budapest Bank reported
consolidated net income of HUF12.3 billion (EUR46 million) and
total assets of HUF938 billion (EUR3.5 billion) as of December 31,
2008.

Moody's last rating action on FHB Mortgage Bank was on March 31,
2009, when its Baa3/Prime-3 local and foreign currency deposit
ratings were placed on review for possible downgrade.

Headquartered in Budapest, Hungary, FHB Mortgage Bank reported
consolidated IFRS net income of HUF6.7 billion (EUR25.2 million)
in 2008 and total assets of HUF689 billion (EUR2.59 billion) as of
December 31, 2008.

Moody's last rating action on MFB was on March 31, 2009, when its
long-term foreign currency deposit rating was downgraded to Baa1
with negative outlook from A3 with negative outlook following a
sovereign rating action.  Moody's also placed MFB Hungarian
Development Bank's Aa2 foreign currency debt rating on review for
possible downgrade of following its downgrade from Aa1 after the
ceiling for foreign currency debt was downgraded to Aa2.

Headquartered in Budapest, Hungary, MFB reported unconsolidated
IFRS 2008 net income of HUF5.77 billion (EUR21.7 million) and
total assets of HUF1.026 trillion (EUR3.85 billion) as of
December 31, 2008.


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


BANK OF IRELAND: Chairman to Step Down; Posts EUR7 Mln Loss
-----------------------------------------------------------
BreakingNews.ie reports Bank of Ireland Chairman Richard Burrows
is to stand down in July after the lender plunged to a EUR7
million pre-tax loss in the year to March.

BreakingNews.ie relates Mr. Burrows apologized to shareholders and
said he was taking accountability for falling profits and share
prices.

"On my own behalf, and on behalf of my fellow directors, I
apologize to our stockholders for the loss in value of their stock
and for the cancellation of dividends," BreakingNews.ie quoted Mr.
Burrows as saying.  "Accountability for these losses must be taken
at the top and, accordingly, I have informed my fellow directors
of my personal decision to stand down from the Court at the end of
the Annual General Court in July 2009."

BreakingNews.ie says the bank, which made a pre-tax profit of
EUR1.9 billion the previous year, fell to a loss in the year to
March after writing off EUR1.4 billion in bad loans.  According to
BBC News Richie Boucher, the bank's chief executive, said on
Tuesday that excluding non-core items, underlying profit before
tax was EUR332 million and underlying earnings per share was 30.2
cents "representing a decline of 81% and 80% respectively over the
prior year."

BBC News recalls the Irish government has pumped EUR3.5 billion
into the bank in a rescue plan for its economy.

Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com-- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre.  It has operations throughout Ireland,
the United Kingdom, Europe and the United States.

                         *      *      *

Bank of Ireland continues to carry a 'D' bank financial strength
rating from Moody's Investors Service with negative outlook.


BIFROST INVESTMENT: Moody's Lowers Ratings on Two CDS to 'Ca'
-------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of eight
Bifrost Series 19 credit default swaps entered into by BNP
Paribas, London Branch.

The eight credit default swaps reference a pool of 100 equally
weighted corporate entities, with approximately 10% of the pool
consisting of financial services entities.  According to Moody's,
18% of the reference pool suffered a downward credit rating
migration greater than had been anticipated by its forward looking
measures, leading to the rating actions.

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

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (April 2009)

The rating actions are:

* BNP Paribas, London Branch -- Bifrost Investment Plc Series 11
  to 20

(1) EUR175,000,000 Series 19 Class 7A Credit Default Swap
terminating 2010

  -- Current Rating: A3

  -- Prior Rating: Aa3

  -- Prior Rating Date: 23 February 2009, downgraded to Aa3 from
     Aaa

(2) EUR125,000,000 Series 19 Class 7B Credit Default Swap
terminating 2010

  -- Current Rating: Ba3

  -- Prior Rating: Baa3

  -- Prior Rating Date: 23 February 2009, downgraded to Baa3 from
     Aa2

(3) EUR75,000,000 Series 19 Class 7C Credit Default Swap
terminating 2010

  -- Current Rating: Caa2

  -- Prior Rating: B3

  -- Prior Rating Date: 23 February 2009, downgraded to B3 from
     Baa1

(4) EUR62,500,000 Series 19 Class 7D Credit Default Swap
terminating 2010

  -- Current Rating: Ca

  -- Prior Rating: Caa3

  -- Prior Rating Date: 23 February 2009, downgraded to Caa3 from
     Ba1

(5) EUR190,000,000 Series 19 Class 10A Credit Default Swap
terminating 2013

  -- Current Rating: Baa3

  -- Prior Rating: A3

  -- Prior Rating Date: 23 February 2009, downgraded to A3 from
     Aaa

(6) EUR135,000,000 Series 19 Class 10B Credit Default Swap
terminating 2013

  -- Current Rating: B2

  -- Prior Rating: Ba3

  -- Prior Rating Date: 23 February 2009, downgraded to Ba3 from
     A1

(7) EUR80,000,000 Series 19 Class 10C Credit Default Swap
terminating 2013

  -- Current Rating: Caa3

  -- Prior Rating: Caa2

  -- Prior Rating Date: 23 February 2009, downgraded to Caa2 from
     Baa2

(8) EUR65,000,000 Series 19 Class 10D Credit Default Swap
terminating 2013

  -- Current Rating: Ca

  -- Prior Rating: Caa3

  -- Prior Rating Date: 23 February 2009, downgraded to Caa3 from
     Ba2


EIRLES TWO: Moody's Cuts Rating on EUR100 Mil. Notes to 'Ba2'
-------------------------------------------------------------
Moody's Investors Service has downgraded its rating of one class
of CDO notes issued by Eirles Two Limited.

The transaction is a synthetic CDO referencing a pool of 150
equally weighted corporate entities, with approximately 13% of the
pool consisting of financial services entities.  According to
Moody's, 22% of the reference pool suffered a downward credit
rating migration greater than bad been anticipated by its forward
looking measures, leading to the rating action.

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

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (April 2009)

The rating actions are:

Eirles Two Limited

(1) EUR100,000,000 Series 228 Floating Rate Portfolio Credit
Linked Secured Notes

  -- Current Rating: Ba2

  -- Prior Rating: Baa2

  -- Prior Rating Date: 23 February 2009, downgraded to Baa2 from
     Aaa


KINTYRE CLO: Standard & Poor's Junks Rating on Class E Notes
------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class C, D, and E
notes issued by KINTYRE CLO I PLC, a cash flow collateralized loan
obligation transaction that closed in March 2007.  At the same
time, S&P affirmed its ratings on the class A and B notes.

These rating actions reflect S&P's assessment of the continued
credit deterioration of the assets in the transaction's underlying
portfolio, primarily comprising European leveraged loan
obligations.  The portfolio has experienced par value losses,
mainly through the default of portfolio holdings.

According to information provided to us by the trustee, the class
E overcollateralization test result is currently below 100%,
implying that the portfolio's adjusted par value is lower than the
total principal amount outstanding of the rated notes.  The
portfolio's par value, used to calculate the class E
overcollateralization test, has fallen, largely due to assets
classified as defaulted assets as set out in the transaction
documents.  This also includes assets where asset-specific
covenants were breached, giving the holder the right to accelerate
the maturity, but where a payment default has not occurred.  The
class C and D overcollateralization tests are currently failing
their respective trigger levels as set out in the transaction
documents.

Based on S&P's analysis, about 3% of the portfolio is currently
rated 'CC', while 'D' rated assets account currently for less than
1% of the portfolio.  In S&P's opinion, the deterioration in the
portfolio's credit quality has led to an increase in the scenario
default rates.

At the same time, S&P's cash flow analysis indicates that break-
even default rates for all rated classes have fallen.  As a
result, the existing ratings on the class C, D, and E notes are,
in S&P's opinion, no longer consistent with the available credit
enhancement and S&P has therefore lowered S&P's ratings on these
notes.

The most recent rating action on this transaction occurred on
Feb. 17, when S&P placed the class C, D, and E notes on
CreditWatch negative.

                           Ratings List

                        KINTYRE CLO I PLC
                 EUR350 Million Floating-Rate Notes


      Ratings Lowered and Removed From CreditWatch Negative

                                Rating
                                ------
       Class             To                 From
       -----             --                 ----
       C def             BBB                A/Watch Neg
       D def             B-                 BBB-/Watch Neg
       E def             CCC-               BB-/Watch Neg

                         Ratings Affirmed

                      Class             Rating
                      -----             ------
                      A                 AAA
                      B def             AA


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


CIR-COMPAGNIE INDUSTRIALI: S&P Cuts Corp. Credit Rating to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term corporate credit rating on Italy-based holding company
CIR-Compagnie Industriali Riunite SpA to 'BB' from 'BB+'.  The 'B'
short-term rating was affirmed.  The outlook is stable.

The action reflects tough challenges faced by the group's
automotive and media division, the sharp drop in dividend inflows
expected from these entities, and S&P's belief that it will take
time before more recently established businesses can generate
significant and recurrent dividend inflows and reduce their
indebtedness.  "Until this happens S&P think that CIR's holdings
portfolio could continue to display limited asset diversity and a
weak average credit profile," said Standard & Poor's credit
analyst Xavier Buffon.

The stable outlook reflects S&P's belief that debt leverage at
CIR's holdings will remain modest in the future relative to the
estimated portfolio value, and the comfort provided by available
cash balances, which more than cover the 2011 bond, and the long-
dated nature of the other outstanding debt (maturing in 2024).

S&P could revise the outlook to negative if the company
encountered issues in liquidating some of its financial assets,
and/or if the cash burn that is likely at holdings this year was
to grow in magnitude or last longer than one or two years; this
will in part be dependent on whether, and to what extent,
L'Espresso and Sogefi resume dividend distribution after this
year; and the pace at which dividends received from Sorgenia
increase in the future.  Ratings downside could also occur if CIR
holdings were to undertake any equity infusions in subsidiaries,
or if leverage at holdings increased to above 20% of the portfolio
value.

Ratings upside potential seems remote at this stage, but could
materialize if the portfolio's diversity and/or asset quality were
to significantly improve.  S&P think this would likely be mainly
driven by the way Sorgenia and HSS continue to develop in the
future, and if and to what extent their respective financial
profiles improve over time.


TELECOM ITALIA: Sets Size of Planned 8-Yr US$1.1 Bln Bond
---------------------------------------------------------
Telecom Italia SpA has set the size of a planned long eight-year
bond at GBP750 million (US$1.1 billion) and guidance at gilts plus
450 basis points, Jane Baird at Reuters reports citing IFR
Markets, a Thomson Reuters online news and market analysis
service.

The report says according to IFR, initial guidance for the bond
maturing December 2017 had been at 450 to 460 basis points over
the 4 percent 2016 gilt.

Barclays, JP Morgan and Royal Bank of Scotland are named to manage
the issue, IFR said as cited by Reuters.

Separately, Francesca Cinelli at Bloomberg News reported that
Telecom Italia's ordinary shares were upgraded to "buy" from
"hold" at Citigroup Inc., which said Italy's biggest phone company
had underperformed this year.

"The stock should trade more on operating than corporate issues
such as the combination of dividend potential and free- cash-flow
potential on lower capex," Bloomberg News quoted London-based
analyst Terence Sinclair in a report dated
May 15.

According to Bloomberg News, the brokerage, which trimmed its
price estimate on the ordinary shares to EUR1.2 from EUR1.25, kept
a "buy" rating on the savings shares with a price estimate of
EUR1.

                  Denies Need for Fresh Funds

As reported in the Troubled Company Reporter-Europe on Mar. 5,
2009, The Financial Times said Telecom Italia SpA denied a press
report that it might need to tap shareholders for cash to pay for
its investment plans.

The company has ample ability to finance its debt and does not
need a capital injection from investors, Chief Executive Officer
Franco Bernabe was cited by FT as saying.

According to FT, Mr. Bernabe said Telecom Italia's EUR34 billion
(US$42.8 billion) of net debt was sustainable noting that the
company had already refinanced 25 percent of its debt so far this
year.

"We have no problem whatsoever in funding our debt," Mr. Bernabe
said, adding that the company had also been able to cut its debt
by EUR1.7 billion in 2008 as a consequence of "a very strong
decline in costs".

                  About Telecom Italia S.p.A.

Telecom Italia S.p.A. (NYSE:TI) -- http://www.telecomitalia.it/--
is an Italy-based company that operates in the telecommunications
sector and provides its fixed and mobile telephony, Internet,
media and news services through fixed and mobile telephones,
personal computer, and television terminals.  It provides: fixed
and mobile telecommunication services and Internet services with
the brands Telecom Italia, TIM, Alice, and Virgilio; multimedia,
television and news services with the brands La7, MTV Italia,
APCOM, and Yalp!; information technology products and solutions
with the brand Olivetti.  The Company operates Abroad with the
brands TIM Brasil, in Brazil, HanseNet, in Germany, and BBNed in
the Netherlands.  It divides its activities in six business units:
Domestic, Brazil, European BroadBand, Media, Olivetti, and Other
Operations.  The Company operates through its subsidiaries mainly
in Europe, the Mediterranean Basin and in South America.  On
December 1, 2008, Telecom Italia Media S.p.A. sold the Pay-per-
View business segment.


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


ADAMANT LTD: Creditors Must File Claims by June 19
--------------------------------------------------
Creditors of LLP Adamant have until June 19, 2009, to submit
proofs of claim to:

         Micro District Mamyr 1, 6/18
         Almaty
         Kazakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on Dec. 19, 2008, after
finding it insolvent.

The Court is located at:

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


ALLIANCE BANK: ISDA Says In Default; Misses Principal Payment
-------------------------------------------------------------
Abigail Moses and Laura Cochrane at Bloomberg News report that the
International Swaps and Derivatives Association said JSC Alliance
Bank is in default after missing a principal payment of more than
US$10 million.

ISDA said Tuesday on its Web site that its EMEA Credit Derivatives
Determinations Committee resolved that a failure to pay credit
event occurred in respect of Alliance Bank.  According to
Bloomberg News, the "failure-to-pay credit event", which will
trigger a settlement by auction of credit-default swaps linked to
the Almaty-based lender, occurred after UBS AG asked for a ruling
on May 15.

                           Auction

ISDA said the committee also voted to hold an auction for Alliance
Bank.  ISDA will facilitate the process by publishing the auction
terms on its Web site www.isda.org/credit, in due course.  The
auction will be administered by Markit and Creditex.

Bloomberg News recalls Alliance Bank said last week it failed to
make a principal payment of more than US$10 million on a loan
placed with foreign lenders due May 11.  The bank, Bloomberg News
discloses, stopped paying creditors after discovering US$1.1
billion of liabilities that weren't reflected on its balance sheet
and requested a standstill on repayments.

                       About Alliance Bank

Based in Almaty, Kazakhstan, Alliance Bank OA (LI:ALLB) --
http://www.alb.kz/-- a.k.a Alliance Bank JSC, is a commercial
bank.  As at December 31, 2007, Alliance had 24 branches and 199
mini-branches in the Republic of Kazakhstan.  The Bank is
organized on the basis of three main segments: Retail banking,
which represents private banking services, private customer
current accounts, savings, deposits, investment savings products,
custody, credit and debit cards, consumer loans and mortgages;
Corporate banking, which represents direct debit facilities,
current accounts, deposits, overdrafts, loan and other credit
facilities, foreign currency and derivative products, and
Investment banking, which represents financial instruments
trading, structured financing, corporate leasing, and merger and
acquisitions advice.


EKO OIL: Creditors Must File Claims by June 19
----------------------------------------------
Creditors of LLP Eko Oil Invest Kz have until June 19, 2009, to
submit proofs of claim to:

         Butin Str. 44
         Micro district Taugul 3
         Almaty
         Kazakhstan
         Tel: 8 705 203 30-32

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 20, 2009,
after finding it insolvent.

The Court is located at:

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


GLOTUR INVEST: Creditors Must File Claims by June 19
----------------------------------------------------
JSC Glotur Invest has gone into liquidation.  Creditors have until
June 19, 2009, to submit proofs of claim to:

         Azerbaev Str. 1b
         Micro District Koktobe
         Almaty
         Kazakhstan


KAZ INVENTORY: Creditors Must File Claims by June 19
----------------------------------------------------
Creditors of LLP Kaz Inventory have until June 19, 2009, to submit
proofs of claim to:

         Butin Str. 44
         Micro district Taugul 3
         Almaty
         Kazakhstan
         Tel: 8 705 203 30-32

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 20, 2009,
after finding it insolvent.

The Court is located at:

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


KAZAKHGOLD GROUP: Fitch Lowers LT Issuer Default Rating to 'C'
--------------------------------------------------------------
Fitch Ratings has downgraded KazakhGold Group Limited's Long-term
Issuer Default Rating to 'C' from 'CCC' and downgraded
KazakhGold's senior unsecured rating to 'C' from 'CCC'.  The
downgrades resolve the Rating Watch Negative which had been
assigned to both ratings.  The Recovery Rating for the senior
unsecured debt is 'RR4'.

The downgrade follows KazakhGold's failure to make a coupon
payment of US$9.375 million on its US$200 million senior unsecured
notes which was due May 6, 2009.  KazakhGold had informally stated
that the reason for the payment delay was technical and that it
intended to pay the coupon within a 30-day cure period as required
by the bond documentation.  Fitch maintained KazakhGold's ratings
in the expectation that payment would be made by May 15.  However,
no evidence has since been forthcoming that the payment was
received.  The agency is closely monitoring developments.  The
ratings may be upgraded if payment is made within the 30-day cure
period.  Conversely, the ratings may be downgraded if payment is
not made within this period.


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


PROGRESSIVE TECHNOLOGY: Creditors Must File Claims by June 5
------------------------------------------------------------
LLC Progressive Technology Solutions has shut down.  Creditors
have until June 5, 2009, to submit proofs of claim.

Inquiries can be addressed to (+996 312) 53-12-73.


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


LUXEMBOURG INVESTMENT: Placed Under Liquidation
-----------------------------------------------
A Luxembourg commercial court on April 30 ordered the liquidation
of Luxembourg Investment Fund and appointed:

     --- Mrs. Christiane Junck as supervisory judge;
     --- Mr. Alain Rukavina; and
     --- Mr. Paul Laplume as liquidators.

The company's registered office is at:

     33A Avenue
     John F. Kennedy
     L-1855 Luxembourg

The court set July 30, 2009 as the deadline for creditors to file
proofs of claim.


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


FORTIS BANK: S&P Changes CreditWatch on 'BB-' Rating to Developing
------------------------------------------------------------------
Standard & Poor's Ratings Services corrected an error on its
CreditWatch placement of a hybrid capital instrument issued by
Fortis Bank Nederland (Holding) N.V. (A/Developing/A-1).

Following the rating actions taken on Belgian Fortis entities, the
'BB-' rating on the EUR2 billion mandatory convertible capital
instrument issued by FBNH was inadvertently placed on CreditWatch
with positive implications on April 30, 2009, due to an
administrative error.  The CreditWatch placement has been
corrected and the instrument has been placed on CreditWatch with
developing implications.

                           Ratings List

    EUR2 Bil Mandatory Convertible Securities Perpetual Hybrid

                  To               From
                  --               ----
                  BB-/Watch Dev    BB-/Watch Pos


STORK BV: Moody's Changes Outlook to Negative, Affirms 'B1' Rating
------------------------------------------------------------------
Moody's Investors Service has changed the rating outlook on Stork
B.V. to negative from stable.  At the same time, Moody's affirmed
Stork's B1 corporate family rating and probability of default
rating, the Ba3 rating of its senior secured bank credit
facilities and the B3 rating of its mezzanine facility.

"The outlook change to negative reflects the increasing concern
that Stork may not improve its credit metrics and operating
performance over the next 12 to 18 months towards the requirements
of the B1 rating category as previously anticipated," said
Christian Hendker, Moody's lead analyst for Stork.  "In Moody's
view, (1) the realization of performance improvements, which were
expected to be driven by continued organic growth in all
divisions, (2) additional cost reductions and (3) a sustainable
recovery of the group's aerospace industry division could be more
difficult to achieve in light of the challenging macroeconomic
environment for Stork's ultimate end customers in the aerospace
and airline industry."

The rating action considers that Stork was already weakly
positioned in the B1 rating category as outlined in Moody's last
rating action on June 6, 2008, when the ratings were assigned.  In
addition, Moody's anticipated a gradual improvement of credit
metrics over the coming years to support the B1 rating.

"The key driver that prompted the outlook change to negative is
the increasing execution risk of the expected performance
improvements of the company's aerospace industry and aerospace
services divisions, which are fundamental to achieving the
targeted medium-term leverage improvements," explained Mr.
Hendker.  Moody's still favorably recognizes that the operating
performance of aerospace industries over the last few quarters was
slightly ahead of expectations and Stork's strong order book
provides a high degree of revenue visibility for the next years.
However, the previously anticipated significant performance
turnaround in 2010 will be much more challenging to realize, as
delivery schedules for some of Stork's key programs, such as the
A380, were further delayed.  Furthermore, delivery schedules could
be exposed to further delays if order cancellations by airline end
customers increase given the industry's high degree of over-
capacity and lower funding availability.  Moreover, the aerospace
services division's performance, which historically functioned as
a primary cash contributor for the group, fell below expectations
in 2008 and could remain depressed as a result of weaker airline
passenger traffic volumes that could burden demand for spare parts
and maintenance services.

Stork's Industry Services and Industry Specialists divisions
continued its track record to generate relatively stable operating
performance and cash generation levels over the last quarters, and
the current rating anticipates that these performance levels will
be sustained supported by a solid order book but also considering
the division's high degree of operational flexibility should
business volume gradually weaken over the next quarters.

The affirmation of the B1 CFR continues to favorably reflect
Stork's solid business diversity given its coverage of the
technical services market and aerospace segment, revenue
visibility and predictability for all divisions in light of its
solid order books and contract portfolio.  Furthermore, the rating
benefits from the moderate business risk profile of Stork's
technical services division, based on a well-established market
position as a provider of integrated technical services for a
diverse business customer base in various industries with a high
operating flexibility thanks to its relatively low capital
intensity, which ensures relatively stable profit and cash
generation levels through the cycle.

Moody's notes that the ratings continue to benefit from the
group's good liquidity cushion, supported by an extended debt
maturity profile with only limited debt amortization requirements
over the next few years.  At the end of March 2009, Stork had
EUR326 million on-balance sheet cash with some availability under
a EUR160 million revolving credit facility, a EUR150 million capex
facility and guarantee facilities of EUR85 million.  Moody's also
recognizes the group's flexibility to reduce some of its capital
expenditures in a downside scenario. The current B1 rating
anticipates that Stork will preserve sufficient headroom under its
financial covenants.

However, Moody's believes that Storks ratings are constrained by a
highly leveraged capital structure and Moody's expectation of
slightly negative free cash flow generation (operating cash flow
excluding cash interest payouts and capex) over the next few years
due to the continued high investment requirements of Stork's
aerospace industry division.  A sustained improvement of credit
metrics is linked to the turnaround this division, which is
currently in a life-cycle transition phase for its key components
manufactured, with limited absolute scale, customer concentration
and the subsequent vulnerability of its operating performance to
order and/or production delays.  In addition, Stork is challenged
in effectively managing the group's inherent foreign exchange
exposure over the medium term, particularly with regard to the
aerospace industry division, although Moody's recognizes that a
sizeable portion of cash flows are hedged at attractive rates for
the coming years.

The ratings would likely experience downward pressure over the
next 12 to 18 months in case of: (1) negative free cash flow
generation (operating cash flow excluding cash interest payouts
and capex), which diminishes Stork's solid liquidity profile or
cushion under its financial covenants; (2) EBIT to Interest
Expense below 1.2x or debt to EBITDA above 5.0x; and (3) the
absence of a sustained turnaround in the aerospace industry and
services divisions, or if the stable technical services
performance erodes unexpectedly.

The outlook could be stabilized if (1) Stork generates positive
free cash flows (operating cash flow excluding cash interest
payouts and capex) going forward, (2) debt to EBITDA below 5.0x
and EBIT to Interest Expense above 1.2x, (3) the aerospace
industries and services division performance visibly improves.

Stork's ratings were assigned by evaluating factors Moody's
believes are relevant to the credit profile of the issuer, such as
(i) the business risk and competitive position of the company
versus others within its industry, (ii) the capital structure and
financial risk of the company, (iii) the projected performance of
the company over the near to intermediate term, and (iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside Stork's core industry. Moody's believes Stork's ratings
are comparable to those of issuers of similar credit risk.

Upgrades:

Issuer: Stork B.V.

  -- Senior Secured Bank Credit Facility, Upgraded to LGD3, 32%
     from LGD3, 40%

Issuer: Stork Holding B.V.

  -- Senior Secured Bank Credit Facility, Upgraded to LGD3, 32%
     from LGD3, 40%

  -- Senior Unsecured Bank Credit Facility, Upgraded to LGD5, 79%
     from LGD6, 90%

Outlook Actions:

Issuer: Stork B.V.

  -- Outlook, Changed To Negative From Stable

Issuer: Stork Holding B.V.

  -- Outlook, Changed To Negative From Stable

The last rating action was implemented on June 6, 2008, when
Moody's assigned the ratings to Stork.

Stork, headquartered in Naarden (Netherlands), generated total
revenues of EUR1.8 billion 2008 in its technical services and
aerospace divisions.  In its technical services division, the
company is a professional supplier of integrated technical
services for installations and machines in the industrial markets.
Its aerospace division provides maintenance, spare parts and
logistic services for aircraft operators and also manufactures
structures (e.g. fuselage, empennage, wing parts), wiring systems
and landing gear components for the leading OEMs in this sector
under long-term contracts.


===========
N O R W A Y
===========


NORSKE SKOG: S&P Cuts Long-Term Issuer Credit Ratings to 'B+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term issuer credit ratings on Norway-based forest-product
company Norske Skogindustrier ASA to 'B+' from 'BB-'.  At the same
time, the 'B' short-term rating was affirmed.  The outlook is
negative.

"The rating action reflects Norske Skog's weak operating and
financial performance, primarily due to deteriorating operating
conditions such as falling newsprint and magazine paper demand,"
said Standard & Poor's credit analyst Jacob Zachrison, adding:
"Norske Skog's credit measures have now fallen to levels which are
inadequate for the previous 'BB-' rating."

Furthermore, S&P expects the currently challenging conditions to
prevail over the near term in tandem with the global economic
downturn.  In S&P's opinion, demand is likely to remain weak,
putting pressure on selling prices.  S&P's revised financial
forecast for Norske Skog incorporates lower volumes, stretching
into 2010, with further pressure on the company's profitability
and credit measures as a result.  This is reflected in the
negative outlook.

Demand for newsprint and magazine paper in most of Norske Skog's
main markets has fallen rapidly as a result of the economic
downturn.

The negative outlook reflects the risk of a further deterioration
in Norske Skog's earnings and cash flow over the next two years,
most likely as a result of lower-than-expected demand combined
with pressure on selling prices.  At the current rating level,
Norske Skog should achieve and maintain funds from operations to
adjusted debt of 10%-15%.  Any renewed pressure on liquidity, such
as tighter covenant headroom, could result in a downgrade.


NORSKE SKOG: S&P Corrects Error Regarding Issue Ratings Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services corrected an administrative
error regarding the outlook on issue ratings on Norway-based
forest products group Norske Skogindustrier ASA (BB-/Negative/B).

On Sept. 23, 2008, S&P inadvertently assigned negative outlooks to
issue ratings on Norske Skog's unsecured rated debt, when no such
outlooks should have been assigned.  This error has now been
rectified.

                           Ratings list

                    Norske Skogindustrier ASA

                                To             From
                                --             ----
       Senior Unsecured         BB-            BB-/Negative


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


PKN ORLEN: Moody's Cuts Rating to Ba1 on Deteriorating Performance
------------------------------------------------------------------
Moody's Investors Service has downgraded all ratings for PKN Orlen
and its finance subsidiary Orlen Finance AB to Ba1 from Baa3.  The
outlook is negative.  This concludes the review for possible
downgrade initiated by Moody's on January 20, 2009.

The rating downgrade was prompted by a material deterioration in
the operating performance and cash flow generation of the group
over the last 6 to 9 months.  PKN has faced a combination of
negative factors with declining demand levels especially for its
petrochemicals products, extreme volatility in oil prices,
declining refining margins and petrochemicals prices, tightening
Brent / Ural spreads and volatility in foreign exchange rates
leading to revaluations of its debt denominated in Euros and US
Dollars.  This has led to a weakening of the credit profile of the
group with estimated LTM Q1 09 FFO / Debt around 11% and negative
FCF / Debt of more than 5%, metrics which are not commensurate
with an investment grade rating anymore.  Moody's nevertheless
acknowledges that PKN Orlen has benefited from substantial working
capital inflows during Q4 2008 and Q1 2009 supporting cash flow
from operations notwithstanding that working capital tied to the
business is likely to build up again in the coming quarters.  As a
result, the agency expects cash flow metrics to further weaken
over the next two quarters at least as demand and margins are
expected to remain weak and comparatives from Q2 and Q3 will be
challenging (especially for Q2).

Moody's positively notes that the banking group of PKN Orlen has
waived the financial covenants for the testing on December 31,
2008 and June 30, 2009, notwithstanding that the risk of renewed
covenant pressure at the end of fiscal year 2009 remains
relatively high if the performance of the group does not
stabilize.  The liquidity of the group is considered adequate
while Moody's notes that PKN Orlen is relatively reliant on bank
financing to fund its operations, which is seen as a challenge
when assessing the liquidity profile of the group.

The agency also notes that the Polish economy minister Waldemar
Pawlak has publicly stated that the Polish State is currently
evaluating the possibility of a transfer of strategic oil reserves
from PKN Orlen and Grupa Lotos to the Polish State.  This would
free up approximately PLN4.5 billion of working capital according
to the management of PKN Orlen.  Moody's has not factored the
impact of this transfer in its rating assessment as both the
mechanics and the timing of this initiative remain unclear at this
stage but continues however to incorporate a medium support in its
overall rating assessment.

The negative outlook assigned to the ratings reflect the agency's
expectation that debt and cash flow metrics will continue to
deteriorate in the short term as PKN will face continued
challenging market conditions and cash outflows related to the
acquisition of the remaining 10% stake in the Mazeikiu Nafta
refinery from the Lithuanian government in April 2009
(approximately PLN1 billion cash outflow) while continuing to
pursue a relatively aggressive investment strategy.  Failure to
maintain RCF / Debt metrics in the low double digits and to
generate free cash flow in order to deleverage the group would
lead to further negative pressure on the ratings.  The negative
outlook does not take into account any cash inflows from a
transfer of the strategic reserves to the Polish State.

The last rating action was on January 20, 2009, when Moody's
placed all ratings of PKN Orlen and its finance subsidiary Orlen
Finance AB under review for possible downgrade.

Polski Koncern Naftowy ORLEN Spolka Akcyjna, headquartered in
Plock, is the largest oil refining, petrochemical and retail group
in Poland and one of the leading companies in this sector in CEE.
PKN ORLEN reported revenues of PLN79.8 billion and an EBITDA of
PLN888 million for the fiscal year ended December 31, 2008.


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


AK BARS: Moody's Reviews 'D-' BFSR for Possible Downgrade
---------------------------------------------------------
Moody's Investors Service placed these global scale ratings of
Ak Bars Bank on review for possible downgrade: Ba2 long-term local
and foreign currency deposit ratings, Ba2 foreign currency senior
unsecured debt rating and D- bank financial strength rating.  At
the same time, Moody's Interfax Rating Agency placed the bank's
Aa2.ru long-term National Scale Rating on review for possible
downgrade.  Moscow-based Moody's Interfax is majority owned by
Moody's.

The review is triggered by the possible losses that ABB is likely
to report under IFRS for full-year 2008.  Moody's estimates that
net losses could amount to around one-quarter of the bank's 2007
Tier 1 capital, driven by high new loan loss provisioning expenses
and losses from securities trading and revaluation.  ABB's asset
quality is rapidly deteriorating, in line with peers.  Moody's
believes that ABB's creditworthiness is likely to deteriorate as a
result of these negative developments, and the weaker economic
environment in Russia.

Moody's review of ABB's BFSR for possible downgrade will focus on
the bank's capital adequacy, asset quality and liquidity.  It will
also assess the impact of ABB's ongoing RUB9 billion increase in
Tier 1 capital on the bank's financial fundamentals.  In Moody's
view, the bank's liquidity has not been conservatively managed, as
evidenced by negative liquidity gaps in most time buckets and the
high concentration of the customer funding base (the top 20
deposits accounted for 47% of total customer funds at 1 March
2009).

In case ABB fails to improve its asset quality, materially
strengthen its capital base and improve its liquidity profile,
this would warrant a rating downgrade -- the extent of which could
be multi-notch depending on the severity of the impairment in
financial fundamentals.  Conversely, the review could conclude in
a rating confirmation if the bank evidences a material
strengthening of its capital position and asset quality.  Moody's
stresses that ABB's financial results outlined above are
preliminary and final numbers could differ materially in both
directions; given this uncertainty, the review will be concluded
based on final IFRS numbers for full-year 2008.

ABB's debt and deposit ratings incorporate the rating agency's
assessment of a high probability of parental support from the
government of the Republic of Tatarstan (Ba1/Stable), resulting in
a one-notch uplift from the bank's Baseline Credit Assessment of
Ba3.  ABB's supported debt and deposit ratings were placed on
review for possible downgrade because they are not resilient in
the event of a multi-notch downgrade of the bank's BFSR and/or a
change in Moody's support assumptions for ABB.

The previous rating action on ABB was on May 4, 2007, when Moody's
upgraded ABB's BFSR to D- from E+, and its foreign currency senior
unsecured debt rating to Ba2/NP from Ba3/NP.  The rating action
was driven by the improvements in the bank's financial
fundamentals.

The principal methodologies used in rating ABB are "Bank Financial
Strength Ratings: Global Methodology" and "Incorporation of Joint-
Default Analysis into Moody's Bank Ratings: A Refined
Methodology", which can be found at www.moodys.com in the Credit
Policy & Methodologies directory, in the Ratings Methodologies
subdirectory.  Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found
in the Credit Policy & Methodologies directory.

Headquartered in the City of Kazan in Tatarstan, Russian
Federation, ABB ranks among the 20 largest Russian banks.  ABB's
assets stood at US$6.9 billion and capital at US$620 million at
end-2008 (preliminary IFRS figure).  The bank was founded in 1993
by the government of Tatarstan, which ultimately controls 96% of
ABB.  The government does not own this majority stake directly,
but controls the bank through its various companies and
ministries.  The bank has a dominant position in Tatarstan,
largely due to the support from the national government.


BALT-TRANS-STROY LLC: Creditors Must File Claims by June 7
----------------------------------------------------------
Creditors of LLC Balt-Trans-Stroy (TIN 3905070874, PSRN
1053900201299) (Construction) have until June 7, 2009, to submit
proofs of claims to:

         V. Kiselev
         Temporary Insolvency Manager
         D. Donskogo Str. 7-216
         Kaliningrad
         Russia
         Tel: 8(4012)57-88-74

The Arbitration Court of Kaliningradskaya will convene at 10:30
a.m. on July 6, 2009, to hear bankruptcy supervision procedure on
the company.  The case is docketed under Case No. ?21–2333/2009.

The Debtor can be reached at:

         LLC Balt-Trans-Stroy
         Baltiyskoe Shosse 125
         236013 Kaliningrad
         Russia


BERDSKIY CJSC: Creditors Must File Claims by June 7
---------------------------------------------------
Creditors of CJSC Berdskiy Winery (TIN 5445007306, PSRN
1025404726599) have until June 7, 2009, to submit proofs of claims
to:

         S. Danchenko
         Temporary Insolvency Manager
         Gorkogo Str. 69-13
         Biysk
         Russia

The Arbitration Court of Novosibirskaya will convene at 10:00 a.m.
on July 9, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. ?45–11613/2008.

The Debtor can be reached at:

         CJSC Berdskiy Winery
         Pervomayskaya Str. 5
         Berdsk
         Novosibirskaya
         Russia


SIBIRSKO-MOSKOVSKIY LLC: Creditors May File Claims
--------------------------------------------------
Creditors of LLC Sibirsko-Moskovskiy Commercial Bank must submit
proofs of claim to:

         Building 3
         Botanicheskiy Pereulok 14
         129010 Moscow
         Russia


STROY-DINAMIKA LLC: Creditors Must File Claims by June 7
--------------------------------------------------------
Creditors of LLC Stroy-Dinamika (TIN 7719552980, RVC 770301001,
PSRN 1057746855550) (Construction) have until June 7, 2009, to
submit proofs of claims to:

         K. Lazarev
         Temporary Insolvency Manager
         2P-2 Str. 32
         Yugo-Zapadny Promyshlenny Uzel 25
         Nizhnevartovsk
         628614 Tumenskaya
         Russia

The Arbitration Court of Moscow will convene at 10:00 a.m. on
Nov. 19, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. ?40–5495/09–18-12B.

The Debtor can be reached at:

         LLC Stroy-Dinamika
         Nikolaeva Str. 4
         123100 Moscow
         Russia


SUE ULYANOVSKIY: Court Names M. Almakaev as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Ulyanovskaya appointed M. Almakaev as
insolvency manager for SUE Ulyanovskiy Fish Factory (TIN
7303024130, PSRN 1037301155935).  The case is docketed under
Case No. ?72–4559/02-Kh264B.  He can be reached at:

         Post User Box 966
         Dmitrovgrad-13
         433513 Ulyanovskaya
         Russia

The Debtor can be reached at:

         SUE Ulyanovskiy Fish Factory
         Vinnovskaya Roshcha 12
         432006 Ulyanovsk
         Russia


TATNEFT OAO: Net Profit Up 130% Year-on-Year in Jan-March 2009
--------------------------------------------------------------
RIA Novosti reports that Tatneft's net profit under Russian
Accounting Standards increased 130%, year-on-year, in January-
March to RUR22.17 billion (US$692 million).

RIA Novosti relates Tatneft said revenues in the reporting period
fell 25% to RUR43.82 billion (US$1.4 billion), gross profit was
down 26.8% to RUR17.14 billion (US$536 million) and operating
profit declined 34.8% to RUR13.39 billion (US$419 million) while
pre-tax profit climbed 120% to RUR27.85 billion (US$870 million).

According to RIA Novosti, Tatneft said the company's net assets
grew by RUR23 billion (US$719 million) to RUR247.2 billion  ($7.7
billion) in the reporting period.

Tatneft OAO (Tatneft OJSC) -- http://www.tatneft.ru/-- is a
Russia-based holding company active within the oil industry.  Its
operations are conducted through several divisions: exploration
and drilling, oil production, oil service, refining and gas
processing, crude oil and oil product sales, petrochemistry,
administration and analytical structures, science, finance,
noncommercial and charitable funds and other organizations,
including security office.  As of January 1, 2008, Tatneft OAO had
561 filling stations; 420 filling stations on the territory of the
Russian Federation and 141 filling stations in Ukraine.  The
Company's exploration and production operations are also conducted
in such countries as Libya, Syria, Iran, Vietnam, Oman and Saudi
Arabia.

                         *      *      *

Tatneft OAO continues to carry a 'Ba2' long-term corporate family
rating from Moody's Investors Service with stable outlook.


TNK-BP INTERNATIONAL: S&P Puts 'BB' Ratings on Positive Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'BB'
long-term corporate credit and senior unsecured debt ratings on
TNK-BP International on CreditWatch with positive implications.
S&P may upgrade the company within the next month.

At the same time, the 'B' short-term corporate credit rating was
affirmed.

"The CreditWatch placement reflects our view that TNK-BP has
improved its corporate governance and stabilized its management
and shareholder structure," said Standard & Poor's credit analyst
Karl Nietvelt.

"We expect to resolve the CreditWatch in the coming weeks, with
the possibility of a one-notch upgrade," said Mr. Nietvelt.

In addition to the perceived improvements in governance, S&P will
further analyze TNK-BP's resilience to the current downturn, which
S&P expects to remain satisfactory thanks to its better-than-peer
free cash flow generation and adequate liquidity.


URENGOY-NEFTE-GAZ CJSC: Creditors Must File Claims by June 7
------------------------------------------------------------
Creditors of CJSC Urengoy-Nefte-Gaz (TIN 7713327964, PSRN
1027713012073) (Oil Products) have until June 7, 2009, to submit
proofs of claims to:

         S. Mokhova
         Temporary Insolvency Manager
         Office 61
         Potapovskiy Pereulok 9/11
         101000 Moscow
         Russia

The Arbitration Court of Moscow commenced bankruptcy supervision
procedure.  The case is docketed under Case No. ?40–37831/-38–38-
104B.

The Debtor can be reached at:

         CJSC Urengoy-Nefte-Gaz
         Dmitrovskoe Shosse 46/1
         Moscow
         Russia


=============================
S L O V A K   R E P U B L I C
=============================


CHEMKO STRAZSKE: Put Into Liquidation by Shareholders
-----------------------------------------------------
TREND reports that shareholders of Chemko Strazske, a chemical
factory in eastern Slovakia, decided to place the company into
liquidation.

According to the report, the crisis and continuous conflicts among
shareholders prompted the decision.

The report says assets of the factory are expected to be put up
for sale.

Chemko, a.s. Strazske -- http://www.chemko.sk/-- is presently one
of the largest manufacturers in inorganic and organic chemistry in
Central Europe.   The company's production program includes large-
volume production of pentaerytritol, calcium formate, urea-
formaldehyde resins and industrial fertilizers.


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


AYT COLATERALES: Fitch Assigns 'BB-' Rating on Class D Notes
------------------------------------------------------------
Fitch Ratings has assigned AyT Colaterales Global Empresas FTA's
Serie AyT Colaterales Global Empresas Banco Gallego I notes,
totaling EUR135 million and due in April 2039, final ratings:

  -- EUR108.8 million class A: 'AAA'; Outlook Stable
  -- EUR13.4 million class B: 'A'; Outlook Stable
  -- EUR8.2 million class C: 'BBB-'; Outlook Stable
  -- EUR4.6 million class D: 'BB-'; Outlook Stable

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

Banco Gallego, the originator, is a small Spanish bank and the
country's 14th largest by total end-2007 assets.  Caixa de Aforros
de Vigo, Ourense e Pontevedra (Caixanova, rated 'A-'/'F2'/
Negative) is a shareholder of Banco Gallego, holding 49.8% of its
equity, and has representation on its board of directors.  The
transaction is a cash flow securitization of a EUR135 million
static pool of 829 secured and unsecured loans granted by Banco
Gallego to small- and medium-sized Spanish enterprises.  The pool
is highly concentrated in the bank's home region of Galicia, which
represents 84% of its collateral value.  The pool is also
concentrated in the real estate sector, which represents 20% of
its collateral value, and has a weighted average life of 5.1
years.

AyT Colaterales Banco Gallego I is the first standalone SME
securitization transaction to be brought to the market by Banco
Gallego, and is the sixth series issued by AyT Colaterales
Empresas.  AyT Colaterales Empresas is a securitization fund
incorporated in December 2007 to issue a number of independent
series of notes collateralized by SME loans by up to 37 different
Spanish financial institutions.  The maximum overall value of
notes issued by AyT Colaterales Empresas is limited to EUR3bn.
The issuer is legally represented and managed by Ahorro y
Titulizacion, S.A., S.G.F.T. (the Sociedad Gestora), a special-
purpose management company with limited liability incorporated
under the laws of Spain.

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

The agency is reviewing its rating methodology and model
assumptions for all new issue SME CDO ratings.  Fitch is
reassessing its analytical views, which could impact existing
ratings, including the ratings assigned to the securities in this
announcement.


SANTANDER EMPRESAS: S&P Assigns 'CCC-' Rating on Class F Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary credit
ratings to the EUR2.22 billion asset-backed floating-rate notes to
be issued by Fondo de Titulizacion de Activos Santander Empresas,
a special-purpose entity incorporated in Spain.

The originator is Banco Santander S.A., the largest Spanish
banking group, and, by market capitalization, one of the largest
banks in the Eurozone.

The ratings on the notes reflect the subordination of the
respective classes of notes below them, the reserve fund, the
presence of the interest rate swap (which provides the weighted-
average coupon on the notes and an excess spread of 90 basis
points), comfort provided by various other contracts, the current
rating on SAN (AA/Negative/A-1+), and the downgrade language
incorporated into the transaction documentation.

                           Ratings List

      Fondo De Titulizacion De Activos Santander Empresas 7
          EUR2.22 Billion Asset-Backed Floating-Rate Notes

                         Prelim.        Prelim.
          Class          rating         amount (Mil. EUR)
          -----          -------        -----------------
          A              AAA              1,387.5
          B              AA-                185.0
          C              BBB                148.0
          D              B+                  92.5
          E              B-                  37.0
          F              CCC-               370.0


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


CLEVER MENU GMBH: Creditors Must File Proofs of Claim by May 25
---------------------------------------------------------------
Creditors of clever menu GmbH are requested to file their proofs
of claim by May 25, 2009 to:

         Stefan Wigger
         Obere Rainstrasse 32
         6345 Neuheim
         Switzerland

The Company is currently undergoing liquidation in Neuheim.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 2, 2009.


METREC AG: Claims Filing Deadline is May 25
-------------------------------------------
Creditors of Metrec AG are requested to file their proofs of claim
by May 25, 2009, to:

         Dr. Walter Hagen
         Liquidator
         Lugafid AG
         Bahnhofstrasse 69
         8803 Rueschlikon
         Switzerland

The company is currently undergoing liquidation in Meilen.  The
decision about liquidation was accepted at an extraordinary
general meeting held on Feb. 18, 2009.


MUELLER INDUSTRIE: Creditors Must File Claims by May 25
-------------------------------------------------------
Creditors of Mueller Industrie Chemie AG are requested to file
their proofs of claim by May 25, 2009, to:

         Mueller, Buehrer & Partner AG
         Seestrasse 42
         Mail Box 267
         8802 Kilchberg
         Switzerland

The company is currently undergoing liquidation in Thalwil.  The
decision about liquidation was accepted at a general meeting held
on Nov. 7, 2008.


TEAM RELOCATIONS: Claims Filing Deadline is May 25
--------------------------------------------------
Creditors of TEAM Relocations AG are requested to file their
proofs of claim by May 25, 2009, to:

         Urs Schlegel
         Liquidator
         Bahnhofstrasse 7
         9470 Buchs
         Switzerland

The company is currently undergoing liquidation in Buchs SG.  The
decision about liquidation was accepted at a general meeting held
on March 26, 2009.


TECHCONSULT AG: Creditors Must File Proofs of Claim by May 25
-------------------------------------------------------------
Creditors of Techconsult AG are requested to file their proofs of
claim by May 25, 2009, to:

         Techconsult AG
         Burgmatt 14
         Mail Box: 2842
         6342 Baar
         Switzerland

The company is currently undergoing liquidation in Baar.  The
decision about liquidation was accepted at a general meeting held
on April 1, 2009.


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


ELANTRA LLC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------
The Economic Court of Dnepropetrovsk commenced bankruptcy
supervision procedure on LLC Elantra (code EDRPOU 35495549).

The Insolvency Manager is:

         V. Levchenko
         Post Office Box 11819
         49027 Dnepropetrovsk
         Ukraine

The Court is located at:

         The Economic Court of Dnepropetrovsk
         Kujbishev Str. 1a
         49600 Dnepropetrovsk
         Ukraine

The Debtor can be reached at:

         LLC Elantra
         Okeanskaya Str. 3
         49000 Dnepropetrovsk
         Ukraine


FUTARI-HOLDING: Creditors Must File Claims by June 5
----------------------------------------------------
Creditors of LLC Futari-Holding (code EDRPOU 31986697) have until
June 5, 2009, to submit proofs of claim to:

         State Tax Inspection in Goloseyevsky District
         Insolvency Manager
         Zhylianskaya Str. 23
         01033 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Feb. 26, 2009.  The case is docketed under
Case No. 15/70-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Futari-Holding
         Derevoobrabatyvayuschaya Str. 5
         Kiev
         Ukraine


PLEYADY LLC: Creditors Must File Claims by June 4
-------------------------------------------------
Creditors of LLC Pleyady (code EDRPOU 31961672) have until
June 4, 2009, to submit proofs of claim to:

         V. Dziautov
         Insolvency Manager
         Office 71
         O. Olzhytch Str. 18-A
         04086 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on April 15, 2009.  The case is docketed under
Case No. B14/287-07/11.

The Court is located at:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Pleyady
         Sosnovy Lane 2
         Boyarka
         08154 Kiev
         Ukraine


SIRIUS PLUS: Creditors Must File Claims by May 29
-------------------------------------------------
Creditors of LLC Sirius Plus (code EDRPOU 31858249) have until
May 29, 2009, to submit proofs of claim to V. Panov.

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company on April 9, 2009.  The case is
docketed under Case No. B26/71-09.

The Court is located at:

         The Economic Court of Dnepropetrovsk
         Kujbishev Str. 1a
         49600 Dnepropetrovsk
         Ukraine

The Debtor can be reached at:

         LLC Sirius Plus
         Teplichnaya str. 15
         Yubileynoye
         52005 Dnepropetrovsk
         Ukraine


TECHNOPROKS LLC: Creditors Must File Claims by June 5
----------------------------------------------------
Creditors of LLC Technoproks (code EDRPOU 33593945) have until
June 5, 2009, to submit proofs of claim to:

         State Tax Inspection in Goloseyevsky District
         Insolvency Manager
         Zhylianskaya Str. 23
         01033 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on March 11, 2009.  The case is docketed under
Case No. 49/82-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Technoproks
         Strategichny Lane 21
         03028 Kiev
         Ukraine


TEK-MASKO LLC: Creditors Must File Claims by June 5
----------------------------------------------------
Creditors of LLC Tek-Masko (code EDRPOU 31626700) have until
June 5, 2009, to submit proofs of claim to:

         State Tax Inspection in Goloseyevsky District
         Insolvency Manager
         Zhylianskaya Str. 23
         01033 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Sept. 12, 2007.  The case is docketed under
Case No. 15/743-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Tek-Masko
         Kolomiyevsky Lane 3/1
         03127 Kiev
         Ukraine


UKRTATNAFTA: Court Turns Down Ruling on Liquidation
---------------------------------------------------
Kyiv Weekly reports that Poltava Oblast, press secretary of the
Fuel and Energy Ministry Fent Di told the Ukrainian News agency
that the Kyiv Appeal Business Court has turned down the ruling of
the Kyiv Business Court issued last September ordering the
liquidation of Ukrtatnafta.

Kyiv Weekly recalls On Sept. 4, 2008, the Kyiv Business Court
decided to liquidate Ukrtatnafta in favor of the Korsan company.

Headquartered in Kremenchuk, Ukraine, Ukrtatnafta Co. --
http://www.ukrtatnafta.com/-- engages in oil refining business.
It produces gasolines of summer and winter diesel oil, motor and
transmission oils, aromatic carbohydrates, paraffin bitumen,
sulfur, and oil fuel.  The company also develops its own retail
network; and has various gas filling stations in Kremenchuk,
Poltava, and Kyiv.  Ukrtatnafta Co. was incorporated in 1994 and
is based in Kremenchuk, Ukraine.  As of December 3, 2007,
Ukrtatnafta Co. is a subsidiary of Vato LLC.


* UKRAINE: Jan-April 2009 Net Losses of Banks Totaled Hr 9.2 Bln
----------------------------------------------------------------
Interfax-Ukraine reports that according to the National Bank of
Ukraine, the net losses of Ukrainian banks January through April
2009 totaled Hr 9.2 billion.

The report relates the NBU said the losses are "connected mainly
with considerable allocations into the [bank's] reserves under
active operations, which amounted to Hr 22.8 billion by May 1,
2009".

The bank's revenues in the first four months of 2009 increased by
60.5 percent year-over-year, to Hr 49.7 billion, while spending
soared by 2.1 times, to Hr 59 billion, the report says citing the
NBU.


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


AROSA FUNDING: Moody's Cuts Rating on EUR100 Mil. Notes to 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has downgraded its rating of one class
of CDO notes issued by Arosa Funding Limited.

The transaction is a synthetic CDO referencing a pool of 120
equally weighted corporate entities, with approximately 14% of the
pool consisting of financial services entities.  According to
Moody's, 20% of the reference pool suffered a downward credit
rating migration greater than bad been anticipated by its forward
looking measures, leading to the rating action.

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

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (April 2009)

The rating actions are:

Arosa Funding Limited

(1) EUR100,000,000 Series 2006-4

  -- Current Rating: Ba3
  -- Prior Rating: Baa3
  -- Prior Rating Date: 10 March 2009, downgraded to Baa3 from Aaa


BAY TRADING: Bought Out of Administration by Rinku Group
--------------------------------------------------------
Rinku Group has bought Bay Trading out of administration for an
undisclosed sum, Tom Freke at Reuters reports citing administrator
Deloitte.

Reuters relates Deloitte said Rinku, a clothing wholesaler and
retailer, has bought 45 outlets of Bay Trading and 85 concessions,
preserving 566 jobs.  According to Reuters, before the sale, Bay
Trading operated 175 stores in Britain employing more than 1,500
people.

On April 28, 2009, the Troubled Company Reporter-Europe, citing
Reuters, reported Alexon Group plc decided to put its subsidiary
Eposcopan, which trades as Bay Trading, into administration after
its credit insurer withdrew cover for the group's suppliers due to
uncertainty over Bay's performance.

BBC News noted according to Alexon, fashion chain Bay Trading had
been loss-making and had relied on funding from the rest of the
group to survive.  Bay Trading, BBC News disclosed, made an
adjusted operating loss of GBP7.2 million in the year ended
January 31.  The chain's same-store sales fell 16 percent last
year, BBC News stated.

Bay Trading Co. -- http://www.baytrading.co.uk/-- sells a wide
range of funky clothes for women. It also sell bags and jewellery.
It is formerly owned by Alexon Group plc --
http://www.alexon.co.uk/-- a ladies clothing retailer listed on
the London Stock Exchange.


BLUE STALLION: Appoints Joint Administrators from Grant Thornton
----------------------------------------------------------------
David Robert Thurgood and Martin Gilbert Ellis of Grant Thornton
UK LLP were appointed joint administrators of Blue Stallion Ltd.
on May 1, 2009.

The company can be reached at:

         Blue Stallion Ltd.
         Third Floor
         Sovereign House
         1 Albert Place
         Finchley Central
         London
         N3 1QB
         England


BRITTANIA BULK: Creditors Meeting Set for Tomorrow
--------------------------------------------------
A meeting of Britannia Bulk Holdings Inc's creditors will be held
at 2:00 p.m. tomorrow, May 22, 2009, at the offices of BDO Stoy
Hayward LLP for:

        --- approval of the administrators' proposal; and
        --- appointment of a creditors' committee.

To vote, creditors must have delivered their proofs of claim on or
before noon today, May 21, to the company's administrators.

For free copies of the administrators' proposal, write to the
joint administrator:

        Malcom Cohen
        BDO Stoy Hayward LLP
        55 Baker Street
        55 Baker Street
        London, W1U 7EU


BURDEW CONTRACT: Taps Joint Administrators from PwC
---------------------------------------------------
Laurie Katherine Manson and John Bruce Cartwright of
PricewaterhouseCoopers LLP were appointed joint administrators of
Burdew Contract Furniture Ltd. on May 1, 2009.

The company can be reached at:

         Burdew Contract Furniture Ltd.
         Balne Mills
         Silcoates Street
         Wakefield
         West Yorkshire
         WF2 0DX
         England


CHROME FUNDING: Moody's Junks Ratings on Three Classes of Notes
---------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of four
classes of notes issued by ACEO.  This transaction is a CDO of
second to default exposures with fixed recoveries set at 50%.
Each of the 30 second to default baskets is comprised of three
credit default swaps and one equity default swap.

These rating actions were prompted by the deterioration of the
credit quality of the CDS exposures and recent equity movements.
The transaction experienced eleven events since inception, four
since February 2009:

Credit Events:

  -- Lehman Brother Holdings (basket 4) 09/18/2008
  -- Fannie Mae (basket 13) 09/16/2008
  -- Freddie Mac (basket 13) 09/16/2008
  -- Delphi Corp (basket 20) 10/12/2005

Equity Events:

  -- Bank of Ireland (basket 4) 9/30/2008
  -- ING Bank NV (basket 21) 12/11/2008
  -- Swiss Reinsurance (basket 20) 2/6/2009
  -- Fortis Bank NV (basket 15) 9/30/2008
  -- STMicroelectronics (basket 29) 2/12/2009
  -- Deustche Bank AG (basket 11) 2/12/2009
  -- Societe Generale (basket 27) 3/6/2009

Two baskets bear most of the risk of the transaction:

  -- Basket 2, referencing GMAC LLC and Ford Motors Credit Company
     LLC

  -- Basket 27, referencing Alliance Boots plc and J Sainsbury
     PLC.  The EDS exposure of basket 27 (Societe Generale) has
     already experienced an equity event.

As a result, the "loss" outcome on these notes, linked to
individual events, is highly uncertain.  Moody's will carefully
review these events and is therefore prone to review the ratings
in either direction in the short term.

For modeling CDS exposures, Moody's used revised parameters:
default probability, asset correlation, and other credit
indicators such as ratings reviews and outlooks.  Moody's
announced the changes to these assumptions in a press release
titled  published on January 15, 2009.  Moody's initially analyzed
and continues to monitor this transaction using primarily the
methodology for Corporate Synthetic CDOs as described in Moody's
Special Report below:

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

For modeling EDS exposures, Moody's approach can be broadly
summarized in three steps.

1) Moody's identified three stock market regimes that display
   significantly different behaviors both in terms of likelihood
   of stock prices collapse and correlation structure: these are
   the Normal, Stress or Crash regimes, each with a related
   probability of occurrence.

2) Then for each EDS and in each market regime, Moody's inferred,
   with the support of various statistical studies, a probability
   of the threshold being hit based on: (i) the initial rating of
   the reference entity, (ii) the maturity of the transaction and
    (iii) the threshold level (between 10% and 40%).

3) Finally, the dependency structure (i.e., correlation) between
   EDS was defined -- it is mainly driven by equity return
   correlation and adjusted according to (i) the market regime,
    (ii) the industrial sector and (iii) the geographical area.

The Monte Carlo method is the most suitable to rate synthetic CDO
transactions, including EDS, as it allows to take into account
global and industry correlations, and portfolio heterogeneity - in
terms of triggers, ratings or amounts.  In each Monte Carlo trial,
entities are modeled separately -- subject to the correlation
structure determined above -- while distressed Equity Events and
recovery rate upon trigger being hit are simulated.  Cumulative
losses are then computed on the rated tranches.

The rating actions are:

Chrome Funding Limited:

(1) Series 9 EUR35,000,000 Class A Secured Credit-linked Floating
Rate Notes due 2009

  -- Current Rating: Caa1
  -- Prior Rating: Baa2
  -- Date Of Latest Action: 5 November 2008, downgraded

(2) Series 10 EUR15,000,000 Class B Secured Credit-linked Floating
Rate Notes due 2009

  -- Current Rating: Caa3
  -- Prior Rating: Baa3
  -- Date Of Latest Action: 5 November 2008, downgraded

(3) Series 11 EUR12,500,000 Class C Secured Credit-linked Floating
Rate Notes due 2009

  -- Current Rating: Ca
  -- Prior Rating: B1
  -- Date Of Latest Action: 5 November 2008, downgraded

(4) Series 12 EUR7,500,000 Class D Secured Credit-linked Floating
Rate Notes due 2009

  -- Current Rating: C
  -- Prior Rating: Ca
  -- Date Of Latest Action: 5 November 2008, downgraded


CLEAR BLUE: Appoints Joint Administrators from Grant Thornton
-------------------------------------------------------------
David Robert Thurgood and Martin Gilbert Ellis of Grant Thornton
UK LLP were appointed joint administrators of Clear Blue Water
Ltd. on May 1, 2009.

The company can be reached at Clear Blue Water Ltd.:

         Third Floor
         Sovereign House
         1 Albert Place
         Finchley Central
         London
         N3 1QB
         England


CRUCIAL PLAN: Placed Into Compulsory Liquidation
------------------------------------------------
Crucial Plan PLC, a unit of Cellcast PLC, was placed into
compulsory liquidation on May 12, 2009.

Cellcast non-executive director Mike Neville was director of the
company.

Cellcast plc -- http://www.cellcast.tv-- is a United Kingdom-
based company. The principal activity of the Company is the
provision of services in the telecommunications industry.  During
the year ended December 31, 2007, the Company's interest comprised
of 27% of the share capital of Cellcast Lebanon SAL and 37.5% of
the share capital of Cellcast Asia Holding Limited.  In 2007, the
Company completed the acquisition of Cellcast UK Limited.  The
subsidiaries of Cellcast UK Limited include Start TV Limited,
Cellcast TV SA, Cellcast China Limited, Cellcast International
Limited, Cellcast Asia Holdings Limited, TOV Cellcast Ukraine,
Cellcast Brasil Communicacao Ltda and TV You! Limited.


FM GROUP: Buys Back GBP75 Mln Western Harbour Residential Project
-----------------------------------------------------------------
The Scotman's Jane Bradley reports that FM Group has bough back
its GBP75 million residential project at Edinburgh's Western
Harbour from administrator Zolfo Cooper.

According to the report, Anglo Irish has funded FM's acquisition
of the development.  Jonathon Milne, FM's managing director, has
already recommenced work on the site, the report states.

The report says Mr. Milne is in talks with administrators to come
to an agreement over restarting work on its other five mothballed
sites.  FM, the report discloses, plans to either buy-back the
other sites -– which include projects in Liverpool, Dundee and
Fife -– or work out an arrangement with the administrator to
complete the work on contract.

The report recalls Zolfo Cooper took control of ten of FM's
subsidiaries in February after the company hit problems as a
result of the property downturn.  The Jack Nicklaus golf course
project, on the Ury Estate, is still in administration, the report
notes.

The FM Group -- http://www.thefmgroup.co.uk/-- was founded in
1997 by Managing Director Jonathon Milne, with the specific aim of
creating exclusive developments in select locations.  Since then,
the company has expanded into five divisions, concentrating its
expertise on several sectors of development: Property, Commercial,
Environmental and International.


GKN HOLDINGS: Moody's Affirms Corporate Family Rating at 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 Corporate Family
Rating of GKN Holdings plc.  At the same time Moody's changed the
outlook to negative from stable.

Rainer Neidnig, lead analyst for GKN, said: "The rating
affirmation reflects the good progress GKN is making in adjusting
its cost base to lower demand in the global automotive market and
its ability to contain cash outflow in Q1 2009 despite a very
challenging environment.  At the same time activity in the
company's OffHighway division has declined faster and in a more
pronounced manner than expected and significant uncertainty
remains around the development of GKN's end markets.  These
uncertainties could eventually result in credit metrics weakening
to levels below what is incorporated in the current Ba1 rating or
a slower than expected recovery, which was the primary
consideration for the outlook change to negative."

In its interim management statement GKN announced an operating
loss of GBP13 million for Q1 2009 before accounting for GBP26
million restructuring charges.  While the group's Automotive and
OffHighway activities were impacted severely by lower demand,
Aerospace recorded a solid performance as expected.  Due to
successful cost cutting GKN returned to a positive operating
result before restructuring costs in March after particularly
challenging months of January and February in the Automotive
segment.  Net financial debt increased to GBP889 million per March
compared to GBP708 million per December.  Considering the usual
working capital build-up in the first half of the year and that
app.  GBP100 million were spent on the Filton acquisition, Moody's
views positively the containment of cash outflow in Q1.  However,
revenues and earnings in 2009 might lag behind the expectations
incorporated in the current rating depending on the development of
GKN's end markets (automotive, agricultural, construction &
mining, and aerospace).  This, together with a significantly
increased pension deficit as per year end 2008, could eventually
result in credit metrics no longer commensurate with a Ba1 rating.

Downward pressure would intensify, if GKN failed to maintain Free
Cash Flow at break-even levels in 2009 despite currently
implemented counter measures and despite making use of discretion
in capex and dividend payout decisions.  Downward pressure would
also arise upon concerns that GKN could fail to reduce leverage
gradually to levels of Debt/EBITDA well below 4x and RCF/Net Debt
close to 20%.  Moreover, the current rating assumes that at least
parts of the GBP 350 million credit facilities maturing in July
2010 will be refinanced in a timely fashion and adequate headroom
under the company's 3.5 EBITDA/net interest banking covenant can
be maintained.

GKN's rating remains supported by management's swift action to
address the adverse market developments and GKN's diversification
into several markets which should help dampening earnings
volatility on a group level.  Upon evidence that credit metrics
move towards the above outlined levels, the rating outlook could
be stabilized again.

Moody's further notes that Moody's Loss Given Default Methodology
suggests an LGD4, 69% rating for GKN's rated bonds which would
indicate a one notch downward adjustment from the Ba1 Corporate
Family Rating.  However, the deviation from the previously
assigned LGD4, 62% is driven primarily by the increase in GKN's
pension obligations per December 2008 which had been volatile
already in the past.  Given that there has been no change in the
group's capital structure and in order to minimize rating
volatility due to non-permanent change in non-debt liabilities,
Moody's decided to maintain the Ba1 bond ratings with LGD4, 63%.

Downgrades:

Issuer: GKN Holdings plc

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD4,
     63% from LGD4, 62%

Outlook Actions:

Issuer: GKN Holdings plc

  -- Outlook, Changed To Negative From Stable

Moody's last rating action on GKN was to downgrade the Corporate
Family Rating to Ba1 (stable outlook) from Baa3 (under review for
downgrade) on January 7, 2008.

Headquartered in Redditch, UK, GKN Holdings plc, is an
international engineering group with operations in more than 30
countries.  The company operates in three main markets --
Automotive, OffHighway and Aerospace --  in which GKN generally is
among the leading players in the respective segments.  GKN
recorded revenues of GBP4.4 billion during the fiscal year 2008 of
which approximately 60% related to the automotive industry.  Given
current industry dynamics and the acquisition of Filton in January
this share is expected to further reduce in 2009.


IMPACT OFFICE: Taps Joint Administrators from Tenon Recovery
------------------------------------------------------------
T. J. Binyon and T. J. E. Dolder of Tenon Recovery were appointed
joint administrators of Impact Office Equipment Ltd. on April 24,
2009.

The company can be reached through Tenon Recovery at:

         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


LADBROKES PLC: Group Profit Down 34% for 4-Mos Ended April 30
-------------------------------------------------------------
Ladbrokes plc issued Interim management statement for the 4 months
ended April 30, 2009.

Group results (excluding High Rollers) were in line with
expectations at the end of February despite the unusually high
level of horse race cancellations, but March proved to be highly
profitable for many of Labrokes' customers, particularly at the
Cheltenham Festival.  Since then Group gross win has increased 5%,
including the benefit of the Grand National result.

Group gross win was flat for the period against tough
comparatives.

Group profit for the period declined 34% (largely reflecting the
abnormal gross win margin in March, increased free bets and
unfavorable cost phasing in eGaming against the prior year.)  This
rate of decline is not representative of the group's expectations
for the year and has already given way to more normal trends in
May.

Profit from High Rollers during the period was GBP25 million
(2008: GBP40 million) with a further GBP17 million since May 1,
2009.

Chris Bell, Chief Executive, commented: "While it is difficult to
predict future staking levels in the current economic climate, the
general resilience of our business and strong cost control gives
us confidence in the outturn for the full year."

                          UK Retail

Total gross win declined by 4%.

OTC gross win reduced by 7% (down 11% after free bets).  Taking
into account the lower number of shops in the estate, like for
like OTC gross win declined 5%.  The gross win margin for the
period was 17.5% compared to 17.7% in the same period in 2008.
Since April the business has performed in line with expectations.

Average weekly gross win per gaming machine rose 5% to GBP708
compared to GBP673 for the same period in 2008.  Total machine
gross win increased by 1%.  May saw the launch of two new B3 slot
games, with encouraging early performance, and Ladbrokes is also
in the process of trialling a number of new machines.

UK Retail costs remain a key area of focus and Ladbrokes retains
its previous guidance that cost growth will not exceed 4%.

                 Other European Retail

Overall gross win in Ireland grew by 2% (benefiting from the
incremental contribution of the Eastwood and McCarten acquisitions
and currency appreciation) but like for like gross win at constant
currency was down 21% reflecting the weak economic conditions and
the success of Irish trained horses at Cheltenham.  Against that
background cost obviously continues to be a key focus.

In Belgium, following the closure of Ladbrokes' two largest
competitors, gross win grew 35% during the period.  The group's
estate of 86 shops and 51 corners in Italy are now all open and
the focus has turned to driving revenue growth in an expanding but
competitive market.  In Spain the performance in Ladbrokes' 61
outlets is ahead of the group's expectations although the
successful development of its Spanish business remains contingent
on other regions following Madrid's lead in regulating and
licensing sports betting.

                       eGaming

Net revenue was down 2% during the period with growth in Games
offset by weakness in Sportsbook margin (Cheltenham results) and
Poker.   Ladbrokes successfully completed the migration of its
Poker business to the Microgaming network in early February.
Active players increased 14% during the period with sign-ups
growing by 10% but this was offset by a decline in player yields.
While the group remains confident of the outturn for 2009, the
weaker economic conditions and softening yields make it unlikely
that it will achieve the growth necessary to reach it previously
stated profitability target in 2010.

                       Telephone

Excluding High Rollers, Telephone betting net revenue has fallen
54%, being disproportionately affected by the horse racing
cancellations and poor results.  Outside of that, the business is
still being heavily impacted by offshore telephone and Internet
price competition and Ladbrokes continues to exercise tight cost
control in response to the declining call volumes.

Profit from High Rollers during the period was GBP25 million
(2008: GBP40 million) with a further GBP17 million since
May 1, 2009.

      Material Events, Transactions and Financial Position

At May 14, 2009, net debt was GBP900 million, down GBP87 million
since December.

Ladbrokes plc -- http://www.ladbrokesplc.com/-- is a betting and
gaming company.  The Company operates in five segments.  The
United Kingdom Retail segment comprises betting activities in the
shop estate in Great Britain.  The Other European Retail segment
comprises all activities connected with the Ireland, Belgium and
Italy shop estates.  The eGaming segment comprises betting and
gaming activities from online operations.  The Telephone Betting
segment comprises activities relating to bets taken on the
telephone.  The Other segment comprises international development
operations and the start up of its Spanish joint venture.  As of
December 31, 2008, Ladbrokes plc had approximately 8,800 betting
shops in Great Britain.  On February 4, 2008, the Company acquired
100% of Agenzie Scommesse SRL, a betting company in Italy.
Ladbrokes.com is a primary betting and gaming Websites with over
725,000 active customers betting in 13 languages and 18
currencies.

                        *      *      *

Ladbrokes plc continues to carry a 'Ba2' long-term corporate
family rating from Moody's Investors Service with negative
outlook.


LLOYDS BANKING: To Cut 625 Jobs in the UK
------------------------------------------
BBC News reports that Lloyds Banking Group Plc will cut 625 jobs
in the UK due to the bank merging its corporate and small-business
lending units together.

The report relates Lloyds, 43 percent-owned by the UK Treasury,
said the job losses will be evenly split between Scotland and
England & Wales.

According to the report, the move comes after its chairman Sir
Victor Blank said he would step down, following criticism of
losses stemming from the decision to buy HBOS.

                        State Guarantees

As reported in the Troubled Company Reporter-Europe on March 9,
2009, Bloomberg News said Lloyds Banking Group obtained GBP260
billion or 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, the report 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
report related.  In return, the report disclosed 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 stated 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
Plc.  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.  In February, 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.


MARWOODS2 LTD: Appoints Joint Administrators from PKF
-----------------------------------------------------
Charles Escott and Ian Schofield of PKF (UK) LLP were appointed
joint administrators of Marwoods2 Ltd. on April 24, 2009.

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

         Pannell House
         6 Queen Street
         Leeds
         LS1 2TW
         England


NORTEL NETWORKS: Invest NI Demands Repayment of GBP7.4MM Grant
--------------------------------------------------------------
BBC News reports that Invest Northern Ireland has demanded
repayment of a GBP7.4 million grant from Nortel Networks UK Ltd
following the company's decision to go into administration.

The report recalls Nortel's UK operation went into administration
in January.  It later cut 220 jobs, 92 of them at the Newtownabbey
plant, the report recounts.

The report relates an INI spokesman said Nortel will be obliged to
make a repayment as it failed to maintain employment, breaching
the terms of a financial assistance agreement signed in June 2006.
According to the report, the spokesman said when a grant is paid
to a client company for creating or safeguarding employment, the
company is legally obliged to maintain that employment for a
period of time.

"Nortel entering administration is a breach of its agreement with
Invest NI and therefore a repayment is required," the report
quoted the INI spokesman as saying.

The report notes a spokesperson for Nortel's administrator, Ernst
and Young, however, said that while they recognize that INI are
significant creditors it was too early in the process to agree
claims.

As reported in the Troubled Company Reporter-Europe on Jan. 19,
2009, Alan Bloom, Stephen Harris, Chris Hill and Alan Hudson of
Ernst & Young LLP were appointed joint administrators of Nortel
Networks UK Ltd and 18 other EMEA entities on Jan. 15, 2009.

Nortel Networks UK Ltd is Nortel Networks Inc.'s European
headquarters and is based in Maidenhead, Berkshire.  Nortel
Networks Inc. is a multinational telecommunications equipment
manufacturer headquartered in Toronto, Ontario, Canada
with a workforce of approximately 30,000 employees globally.


OLLY'S UK: In Administration; Leonard Curtis Appointed
------------------------------------------------------
John Titley and Andrew Poxon, Directors of national corporate
recovery firm Leonard Curtis, were appointed joint administrators
of Olly's UK Limited t/a Oilily on April 27, 2009.

The company sells children's and ladies wear from retail premises
at:

         Unit 10
         Barton Arcade
         Deansgate
         Manchester, M3 2BB

For more information please contact Sean Williams at the
Administrators' office on 0161 767 1250.


POWERLITE LTD: Names Joint Administrators from PKF
--------------------------------------------------
Ian Schofield and Charles Escott of PKF (UK) LLP were appointed
joint administrators of Powerlite Ltd. on April 30, 2009.

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

         Pannell House
         6 Queen Street
         Leeds
         LS1 2TW
         England


SONS OF GWALIA: Scheme of Arrangement Hearing Set on May 26
-----------------------------------------------------------
The Supreme Court of Western Australia scheduled a hearing at
10:30 a.m. on May 26, 2009, to consider a scheme of arrangement
between Sons of Gwalia Ltd and its creditors.

For further information, visit www.ferrierhodgson.com


SOVEREIGN MARINE: Creditors' Meeting Scheduled on June 17
---------------------------------------------------------
A meeting of Sovereign Marine & General Insurance Company
Limited's creditors will be held at 10:00 a.m. (London time) on
June 17, 2009, at the offices of KPMG LLP, 8 Salisbury Square in
London.

For more information, contact the company's administrator:

            J.M. Wardrop
            KPMG LLP
            8 Salisbury Square
            London EC4Y 8BB
            +44 (0)207 694 3833


TYNESIDE LEISURE: In Administration; Begbies Traynor Appointed
--------------------------------------------------------------
Gerald Krasner and Andrew Haslam of Begbies Traynor were appointed
joint administrators to Absolute Leisure Limited on May 8, 2009.

Based in the North East, the company owns and manages a number of
licensed venues including the Angel Hotel in Whitby, Coco Mos
Restaurant and The Lounge Bar in Newcastle upon Tyne and the
famous Tuxedo Royale disco boat which operated on the River Tyne
until last year.

In total, Absolute Leisure Limited employs 55 staff in Tyneside.
The company was established by the Quadrini family many years ago;
it has a turnover of 5m and its venues are well-known throughout
the North East.

Joint Administrator Gerald Krasner of leading business rescue,
recovery, and restructuring specialist Begbies Traynor, said: "We
are optimistic about finding a buyer for the majority of venues
and, in the meantime, they will continue to trade as usual.  The
companys failure is a result of the current economic situation."

The joint administrators have instructed Christie + Co of
Newcastle upon Tyne as their agents and all inquiries should be
made to David Lee of Christies on 0191 222 1740.


WILLIAM VERRY: Taps Joint Administrators from BDO
-------------------------------------------------
Geoffrey Stuart Kinlan and Shay Bannon of BDO Stoy Hayward LLP
were appointed joint administrators of William Verry (Facilities
Management) Ltd. on April 30, 2009.

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

         55 Baker Street
         London
         W1U 7EU
         England


WOVEN RUGS: Appoints Joint Administrators from BDO
--------------------------------------------------
Antony David Nygate and Shay Bannon of BDO Stoy Hayward LLP were
appointed joint administrators of Woven Rugs Ltd. on April 28,
2009.

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

         55 Baker Street
         London
         W1U 7EU
         England


* CAPMARK FINANCIAL: Compliance to Leverage Ratio Covenant Waived
-----------------------------------------------------------------
Capmark Financial Group Inc. intends to enter into amendments to
the senior credit facility and bridge loan agreement.

On May 8, 2009, Capmark received a commitment from certain lenders
under its bridge loan agreement and senior credit facility to
provide a new term loan facility of up to US$1.5 billion.
Proceeds from the Facility, along with US$75.0 million in cash,
will be used to refinance a portion of Capmark's bridge loan
agreement and senior credit facility.  The Facility will be
secured by a pledge and security interest on substantially all of
Capmark's U.S. and Canadian non-bank mortgage loans and foreclosed
real estate.  The maturity date of the Facility will be March 23,
2011, provided that if certain conditions relating to the
restructuring of Capmark's senior notes due 2010 have not been
met, the maturity date of the Facility will be accelerated to
April 2010.

According to Capmark, the Amendments will extend the maturity date
under the bridge loan agreement to the maturity date of the
Facility, conform the financial covenants in those agreements to
the financial covenants in the Facility and amend certain other
provisions of those agreements, including amendments necessary to
enter into the Facility.  The Facility and the Amendments are
subject to a number of closing conditions, including the
negotiation and execution of definitive agreements and related
documents satisfactory to the lenders.

To facilitate the execution of definitive agreements with respect
to the Facility and the Amendments, Capmark has extended the
maturity date of 100% of its outstanding bridge loan to May 21,
2009.  Additionally, the required lenders under the senior credit
facility and the bridge loan agreement have agreed to waive
Capmark's compliance with the leverage ratio covenant for the
quarters ended December 31, 2008 and March 31, 2009.  These
waivers are effective through May 21, 2009.

Capmark is seeking to document and close the Facility and the
Amendments by May 21, 2009.  If Capmark does not close the
Facility by May 21, 2009 and the lenders under the senior credit
facility and bridge loan agreement fail to waive or eliminate the
leverage ratio covenant beyond May 21, 2009 and further extend the
maturity of the bridge loan agreement, Capmark will default under
these agreements upon expiration of the waivers and the extension
and the majority lenders under such agreements can immediately
declare all loans due and payable.

Capmark on Friday reported a net loss of US$727.7 million for the
quarter ended March 31, 2009 compared to a net loss of US$212.9
million for the quarter ended March 31, 2008.  The operating
results for the first quarter of 2009 were impacted by continued
adverse market conditions that resulted in net losses on loans of
US$229.2 million due to valuation losses, net losses on
investments and real estate of US$247.4 million largely due to
impairment charges on real estate investments in Capmark's Asian
Operations business segment and US$143.5 million of losses from
investments in joint ventures and partnerships resulting from
declines in the fair value of the assets held through such
investments.  Capmark's net loss totaled US$727.7 million for the
three months ended March 31, 2009 compared to a net loss of
US$212.9 million for the three months ended March 31, 2008. The
US$514.8 million increase in net loss was primarily due to lower
noninterest income, a higher provision for loan losses and the
absence of an income tax benefit on the losses incurred for the
three months ended March 31, 2009.

Noninterest income was impacted by continued adverse market
conditions that resulted in increased net losses on Capmark's
loans, investments and real estate of US$107.6 million and
declines in its fee and investment income of US$172.4 million
largely attributable to equity in losses of joint ventures and
partnerships.

The increase in net losses was attributable to an increase in net
losses on investments and real estate of US$235.6 million largely
due to impairment charges on real estate investments in Capmark's
Asian Operations business segment, partially offset by a decline
in net losses on loans of US$128.0 million reflecting lower
downward changes in fair value recognized on Capmark's portfolio
of loans held for sale in the three months ended March 31, 2009,
due to the sale of 39 European loans in 2008.

The decline in fee and investment income of US$172.4 million was
largely due to an increase in losses from equity investments in
joint ventures and partnerships and declines in mortgage servicing
fees, trust fees and placement fees.  Capmark's loss from equity
investments in joint ventures and partnerships increased US$133.5
million primarily due to declines in fair value of the assets held
through such joint ventures and partnerships.  Mortgage servicing
fees declined US$12.8 million primarily due to lower assumption
fees.  Trust fees decreased US$11.8 million primarily due to the
lower interest rate environment. Placement fees declined US$10.3
million primarily due to a decrease in loan origination volume.

Capmark's provision for loan losses totaled US$98.7 million for
the three months ended March 31, 2009 compared to US$7.6 million
for the three months ended March 31, 2008.  The increase in
provision for loan losses reflects an overall increase in
Capmark's loans held for investment from a year ago, an increase
in impaired loans for which a specific allowance is recorded and
the impact of declining asset quality on the remaining loans held
for investment in its portfolio due to challenging economic
conditions.

Capmark established a valuation allowance on its deferred tax
assets that resulted in the absence of an income tax benefit on
the losses incurred for the three months ended March 31, 2009.

As of March 31, 2009, Capmark had readily available cash
(excluding cash held at Capmark Bank) of approximately US$1.4
billion and Capmark Bank had approximately US$1.8 billion in cash.
During the three months ended March 31, 2009, net cash provided by
operating activities totaled US$1.2 billion due to the sale of
U.S. Treasury securities classified as trading.

Capmark used net cash of US$44.8 million in investing activities
for the three months ended March 31, 2009, primarily for the
purchase of US$65.8 million of equity investments under existing
commitments to our fund and partnership investments and the
origination of US$248.6 million of loans held for investment,
which was offset in part by the receipt of US$283.9 million from
the repayment of loans held for investment.

For the three months ended March 31, 2009, net cash provided by
financing activities totaled US$1.4 billion due to a net increase
of US$1.5 billion in deposit liabilities at Capmark Bank.

To date, Capmark has continued to take actions to maintain
liquidity to support its business operations such as obtaining a
commitment to refinance its senior credit facility and bridge loan
and focusing its efforts on originating loans for government
sponsored enterprises and third parties of US$900.0 million for
the three months ended March 31, 2009.  In addition, Capmark has
materially reduced its proprietary originations and investments
and, other than funding of previously committed loans,
substantially all of its originations for the three months ended
March 31, 2009 were funded by Capmark Bank.

Challenging economic conditions have resulted in declining asset
quality in recent quarters, including the first quarter of 2009,
resulting in adverse credit migration and increases in non-
performing loans.  The factors contributing to the decline in
asset quality include weak economic conditions, market
illiquidity, declining commercial real estate fundamentals,
Capmark's concentration of transitional real estate and declining
real estate values.

As of March 31, 2009, the carrying value of Capmark's loan
portfolio held for investment was US$8.0 billion, net of an
allowance for loan losses totaling US$167.5 million and fair value
and other adjustments totaling US$46.4 million as a result of
valuation adjustments on loans transferred in a prior year from
held for sale designation.

As of March 31, 2009, Capmark's loan portfolio held for sale was
carried at a fair value of US$3.8 billion representing an
aggregate discount of approximately US$1.0 billion to the
portfolio's aggregate unpaid principal balance of US$4.8 billion.

As of March 31, 2009, total reserves on the loan portfolios held
for investment and held for sale (including allowance for loan
losses and fair value and other adjustments) were 9.2% of the
unpaid principal balance of the loan portfolio.

As of March 31, 2009, Capmark's real estate investments had a
carrying value of US$1.7 billion, which reflects Capmark recording
impairment charges of US$122.7 million during the first quarter of
2009 related to its real estate holdings in Asia.

As of March 31, 2009, Capmark had US$21.1 billion in total assets
and US$$20.4 billion in total liabilities.

                           About Capmark

Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets.  Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing.  Capmark operates in North America, Europe and
Asia.


* Frank Sekula Joins Jefferies in London as Restructuring Head
--------------------------------------------------------------
Frank Sekula has joined as a Managing Director and Head of
Recapitalization & Restructuring for Europe within the Jefferies
International Limited's Investment Banking Division.  With this
hire Jefferies' recapitalization and restructuring group now
includes 45 dedicated professionals globally, with the added
support of a cross-functional team of 12 investment bankers in
Europe.

Mr. Sekula has more than 18 years of industry experience and has
been involved in a number of recapitalization and restructuring
transactions for European clients, including Fiat, ABB, m-real,
Avis Europe, Laurel Pub Company, Waterford Wedgwood, Mosaic
Fashions, EMI and TI Automotive.  Mr. Sekula spent one year with
Kaupthing restructuring its European debt and principal
investments business, and nine years at Barclays Capital, where he
served as Head of High Yield Capital Markets and in other debt
recapitalization and restructuring roles.  Mr. Sekula began his
career in New York with Bankers Trust, CS First Boston and
PaineWebber.  He was awarded a B.S. in Commerce from the
University of Virginia.

"We are delighted that Frank Sekula is joining us to lead
Jefferies' European recapitalization and restructuring practice,"
commented David Weaver, President of Jefferies International.
"Jefferies remains committed to providing our clients with
solutions rooted in extensive recapitalization and restructuring
experience and coupled with deep knowledge of the sectors in which
they operate."

In a joint statement, Michael Henkin and Steven Strom, Co-Heads of
Jefferies' global Recapitalization & Restructuring advisory
practice, added, "The appointment of Frank Sekula underscores
Jefferies' commitment to providing our European clients with the
best quality advice and execution, backed by the full service
resources of the Firm, whatever the market environment."

In 2008, Jefferies was involved in more than 40 restructuring and
recapitalization assignments concerning debt of over US$50
billion.  Recent mandates include New Star, Nortel Networks,
Pliant and The Vita Group.

Last month, Frank Jung joined Jefferies from Goldman Sachs as a
Managing Director of the firm's recapitalization and restructuring
team in Germany, and, earlier this year, Hal Kennedy and Leon
Szlezinger joined as Managing Directors based in New York.

                    About Jefferies

Jefferies, an independent, full-service global securities and
investment banking firm, has served companies and their investors
for more than 45 years.  Headquartered in New York City, with
offices in more than 25 cities around the world, Jefferies
provides clients with capital markets and financial advisory
services, institutional brokerage, securities research and asset
management.  The firm provides investors with fundamental research
and trade execution in equity, equity-linked, and fixed income
securities, including corporate bonds, high yield bonds, US
government and agency securities, repo finance, mortgage- and
asset-backed securities, municipal bonds, whole loans and emerging
markets debt, as well as commodities and derivatives.  Jefferies
offers companies capital markets, merger and acquisition,
restructuring and other financial advisory services.  Jefferies &
Company, Inc. is the principal operating subsidiary of Jefferies
Group, Inc. (NYSE: JEF: www.jefferies.com).  Jefferies
International Limited, a UK-incorporated, wholly owned subsidiary
of Jefferies Group, Inc., was established in London in 1985 and is
authorized and regulated by the UK Financial Services Authority.


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

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

June 10-13, 2009
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
    25th Annual Bankruptcy & Restructuring Conference
       The Ritz-Carlton Orlando Grande Lakes
          Orlando, Florida
             Contact: http://www.aria.org/

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                         *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *