TCREUR_Public/090604.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, June 4, 2009, Vol. 10, No. 109

                            Headlines

A U S T R I A

A. SCHOTTEN: Claims Filing Period Ends June 15
ATZ – MASSIVHAUSBAU GMBH: Claims Registration Period Ends June 9
ENERGY BIODIESEL: Claims Registration Period Ends June 17
PALAIS BAUTRAGER: Claims Filing Period Ends June 15
TISCHLEREI WUNTSCHEK: Claims Filing Deadline is June 15


A Z E R B A I J A N

* AZERBAIJAN: Fitch Affirms Issuer Default Ratings at 'BB+'


F R A N C E

CHRISTIAN LACROIX: Put Into Administration
COMPAGNIE GENERALE: S&P Assigns 'BB' Rating on US$300 Mil. Notes


G E R M A N Y

CONTINENTAL AG: Moody's Cuts Corporate Family Rating to 'Ba3'
DELBROUCK GROUP: Files for Insolvency


I C E L A N D

* ICELAND: To Start Talks With Creditors of Failed Banks This Week


I R E L A N D

ILIAD INVESTMENTS: Fitch Withdraws 'C' Ratings on Series 8 Notes
ILIAD INVESTMENTS: Fitch Withdraws 'C' Ratings on Series 14 Notes


I T A L Y

PARMALAT SPA: France's Danone Denies Interest in Acquisition


K A Z A K H S T A N

BM TECHNOLOGY: Creditors Must File Claims by June 19
GRAND POST: Creditors Must File Claims by June 19
MASTER STROY & K: Creditors Must File Claims by June 19
NEFTE GAS: Creditors Must File Claims by June 19
SAIGAU LLP: Creditors Must File Claims by June 19


K Y R G Y Z S T A N

KG CELL: Creditors Must File Claims by July 3


N E T H E R L A N D S

EUROLOAN CLO: Moody's Junks Ratings on Two Classes of Notes


R U S S I A

BURUKTALSKIY NICKEL: Creditors Must File Claims by June 15
ELIT-STROY CJSC: Creditors Must File Claims by June 15
NOVOLIPETSK STEEL: Posts US$193.8 Mln Net Loss in First Qtr. 2009
RUSSIAN CORPORATION: S&P Assigns 'BB+' Long-Term Issuer Rating
SIBIRSKAYA CONSTRUCTION: Creditors Must File Claims by June 15

STROY-PLAST LLC: Creditors Must File Claims by July 15
WESTERN-URALSK LLC: Creditors Must File Claims by July 15


S P A I N

IM PRESTAMOS: Moody's Reviews 'Ba2' Rating on Class A-3 Notes
TESORERIA I: Moody's Cuts Ratings on Two Classes of Notes to Low-B
TESORERIA II: Moody's Lowers Rating on Class C Notes to 'Ba1'


S W I T Z E R L A N D

DRUCKEREI MARCH: Claims Filing Deadline is June 30
INTERNATIONAL MUSIC: Creditors Must File Claims by June 25
OLINES MEDITERRAN: Claims Filing Deadline is June 25
SCHWIZERLAND HANDEL: Creditors Must File Claims by June 25
TRUFIELD HOLDING: Claims Filing Deadline is June 30

* SWITZERLAND: Slips Into Recession


U K R A I N E

AGRICULTURAL LLC: Creditors Must File Claims by June 12
EVROTECH LLC: Creditors Must File Claims by June 12
FOOD ALLIANCE: Court Starts Bankruptcy Supervision Procedure
IMEXBANK JSCB: Bank Default Cues Moody's to Junk Deposit Ratings
MOUNTER-538 LLC: Court Starts Bankruptcy Supervision Procedure

MOUNTER-538 OJSC: Court Starts Bankruptcy Supervision Procedure
PRAVEX BANK: Moody's Withdraws 'E+' Bank Financial Strength Rating


U N I T E D   K I N G D O M

AEOLUS CDO: S&P Junks Ratings on Class E Colonnade II & III Notes
BRADFORD & BINGLEY: Loan Losses Could Hit GBP700 Mln This Year
KW LINFOOT: Peel Drafts Insolvency Expert to Conduct Investigation
LDV: Lack of Funds Prompts Administration Request
LLOYDS BANKING: UKFI Says to Fully Support Board

LLOYDS BANKING: Moody's Cuts Rating on Preference Shares to 'B3'
LUCITE INT'L: S&P Withdraws 'B' Long-Term Corporate Credit Rating
PIERSE CONTRACTING: In Liquidation, Zolfo Cooper Appointed
ROYAL BANK: Moody's Cuts Rating on Tier 1 Preference Shares to B3
SMARTFUNDIT.COM LIMITED: In Administration, Vantis Appointed

TAURUS CMBS: Fitch Downgrades Rating on Class C Notes to 'B'

* S&P Takes Credit Rating Actions on Eight European CDO Tranches

* Upcoming Meetings, Conferences and Seminars


                         *********


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


A. SCHOTTEN: Claims Filing Period Ends June 15
----------------------------------------------
Creditors owed money by A. Schotten Merkur-Logistik KEG have until
June 15, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Daniel Lampersberger
         Esteplatz 4
         1030 Vienna
         Austria
         Tel: 712 33 30-0
         Fax: 712 33 30-30
         E-mail: kanzlei@engelhart.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on June 29, 2009, for the
examination of claims.


ATZ – MASSIVHAUSBAU GMBH: Claims Registration Period Ends June 9
----------------------------------------------------------------
Creditors owed money by ATZ - Massivhausbau GmbH have until
June 9, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Herbert Hoffmann
         Wiener Strasse 18
         3430 Tulln
         Austria
         Tel: 02272/81 9 29
         Fax: 02272/81929/20
         E-mail: mag.hoffmann@aon.at

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

         Land Court of St. Poelten
         Room 216
         Second Floor
         St. Poelten
         Austria


ENERGY BIODIESEL: Claims Registration Period Ends June 17
---------------------------------------------------------
Creditors owed money by energy biodiesel engineering GmbH have
until June 17, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Dr. Guenther Hoedl
         Schulerstrasse 18
         1010 Vienna
         Austria
         Tel: 513 16 55
         Fax: DW 33
         E-mail: Hoedl@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on July 1, 2009, for the
examination of claims.


PALAIS BAUTRAGER: Claims Filing Period Ends June 15
---------------------------------------------------
Creditors owed money by Palais Bauträger + Bau GmbH have until
June 15, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Stephan Riel
         Landstrasser Hauptstrasse 1/2
         1030 Vienna
         Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on June 29, 2009, for the
examination of claims.


TISCHLEREI WUNTSCHEK: Claims Filing Deadline is June 15
-------------------------------------------------------
Creditors owed money by Tischlerei Wuntschek GmbH have until
June 15, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Christian Koechl
         10. Oktober Strasse 17/I
         9500 Villach
         Austria
         Tel: 04242/27 18 3-0
         Fax: 04242/214925
         E-mail: ra.office@koechl.com

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on June 22, 2009, for the
examination of claims at:

         Land Court of Klagenfurt
         Room 225
         Second Floor
         Klagenfurt
         Austria


===================
A Z E R B A I J A N
===================


* AZERBAIJAN: Fitch Affirms Issuer Default Ratings at 'BB+'
-----------------------------------------------------------
Fitch Ratings has affirmed the Republic of Azerbaijan's Long-term
foreign and local currency Issuer Default Ratings at 'BB+' with
Stable Outlooks.  The agency has also affirmed Azerbaijan's
Country Ceiling at 'BB+' and Short-term foreign currency IDR at
'B'.

"Azerbaijan's sovereign rating is underpinned by its large
hydrocarbon endowment and the oil windfall of recent years, which
has enabled the sovereign to build up a strong and liquid balance
sheet that leaves it relatively well placed to navigate through
the challenging global environment," said Andres Klaar, Associate
Director at Fitch's Sovereign team.

The country has engaged major western oil companies in modernizing
its oil and gas production and transport facilities.  Rising oil
production propelled annual real growth of 21% from 2004 to 2008 -
faster than in any other Fitch-rated country.  The consolidated
government budget surplus reached 11% of GDP in 2008, up from 2.6%
in 2007 while the current account surplus was above 30% of GDP.
With the accumulation of the government's oil revenue into the
Sovereign Wealth Fund - State Oil Fund of Azerbaijan Republic
(SOFAZ), sovereign net foreign assets increased to 35% of GDP at
end-2008 ('BB' median is 5.8% net liability position) whereas
government debt was 8.6% of GDP ('BB' median: 40.7%).  The
transparent management and reporting of SOFAZ is also a rating
strength.

The strong starting position of the budget and the accumulation of
resources in SOFAZ should allow Azerbaijan to orchestrate a
moderate fiscal easing this year to support economic growth
without the consolidated budget moving into deficit.
Nevertheless, lower oil prices are likely to require tighter
control of expenditure and a rebalancing of the economy.  Despite
sizeable fiscal savings in SOFAZ in 2006-08, budget expenditures
increased 65% annually in nominal terms over these years.  This
stimulus, exacerbated by a nascent domestic credit boom, led to
the economy overheating with inflation peaking at 25% in the
middle of 2008, albeit partly due to rising global food and energy
prices.  High inflation contributed to real exchange rate
appreciation and worsened international competitiveness of the
non-oil sector.  Fitch forecast inflation to decline to 3% in
2009, while GDP growth remains positive at 2.5%.

However, coping with lower oil prices and navigating through
uncertain global financial conditions raises some risks. Fitch
regards the Azeri banking system as weak.  It has been growing
rapidly, albeit from a low base, and Fitch expects the non-
performing loan ratio to rise from a current estimated 10%-15%.
The stock of base money and credit fell in Q109, despite
reductions in the refinancing rate and banks' reserve
requirements.  International reserves declined in Q109 as the
central bank supported the exchange rate.  However, private sector
external debt is moderate, largely shielding the country from
global financial pressures.  Fitch estimates Azerbaijan's external
debt service ratio at 6% of CXR in 2009 relative to 34% for
Kazakhstan and 30% for Russia.

Structural issues also weigh on Azerbaijan's ratings.
Institutions and governance are relatively weak and the business
climate remains difficult, despite an impressive improvement in
the country's ranking in the latest World Bank's "Ease of Doing
Business" survey.  Structural reforms are necessary to support
economic growth in the long term, as increasing hydrocarbon
production is expected to be temporary.


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


CHRISTIAN LACROIX: Put Into Administration
------------------------------------------
AFP reports that a commercial court in Paris has placed French
fashion house Christian Lacroix SNC into administration.

"A period of observation of six months has been decided and an
administrator has been nominated," the report quoted Simon Tahar,
the company's lawyer, as saying.

The report recalls the company, which employs 125 people, declared
insolvency last Thursday, blaming "the sharp downturn of the
luxury market."  The report relates the company said then it
intended "to present a continuation plan" and "to maintain its
business operations throughout the proceedings."

According to the report, French designer Christian Lacroix said he
had been designing without payment in recent months and that the
company owed him EUR1.2 million (US$1.7 million).  Mr. Lacroix
also said that shareholder management at the company had been
"catastrophic", the report notes.

On June 1, 2009, the Troubled Company Reporter-Europe, citing
Daily Mail Reporter, reported that the company's owner, the Falic
Group, had been talking with investors but negotiations fell
through because of the financial crisis.


COMPAGNIE GENERALE: S&P Assigns 'BB' Rating on US$300 Mil. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has assigned its 'BB'
long-term issue rating to the proposed US$300 million senior
unsecured notes due May 2016, to be issued by France-based
Compagnie Generale de Geophysique – Veritas (CGG Veritas;
BB/Negative/--), the world's leading seismic-equipment producer
and second-largest player in seismic services.  At the same time,
S&P assigned a recovery rating of '3' to the debt issue,
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.  This rating is preliminary and
subject to satisfactory review of final documentation.

The recovery ratings of '2' and issue ratings of 'BB+' on the
group's senior secured bank debt remain unchanged.  A recovery
rating of '2' indicates S&P's expectation of substantial (70%-90%)
recovery in the event of a payment default.  Coverage on the
senior secured bank debt is at the low end of the range.

The proposed debt issuance does not materially affect overall
recovery prospects as the new debt raised is expected to be used
to partially prepay the senior secured and other senior
obligations so overall debt levels do not materially change.
Recovery expectations for all debt instruments are underpinned by
a stressed enterprise valuation on a going concern basis of about
US$2 billion, with only minor changes made to S&P's previous
default scenario and valuation assumptions.

The notes rank pari passu with the existing senior unsecured notes
and benefits from the same guarantee package.  Key entities (such
as CGGVeritas Services Holding B.V., CGG Veritas Services Holding
(U.S.) Inc., CGGVeritas Land (U.S.) Inc., CGGVeritas Services
(U.S.) Inc., Veritas Investments Inc., and Sercel Inc.) provide
upstream guarantees.

Overall, S&P consider the notes' covenant package to be only
modestly credit protective, given the flexibility afforded to CGG
Veritas to raise additional debt, despite satisfactory inclusion
of change-of-control and sale-of-asset clauses.  The "additional
debt" test requires compliance with a consolidated interest
coverage ratio of 3:1 (roughly defined as adjusted EBITDA before
multi-client amortization adjusted for noncash and nonrecurring
elements compared with interest costs).


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


CONTINENTAL AG: Moody's Cuts Corporate Family Rating to 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has downgraded Continental AG's
corporate family rating to Ba3 from Ba2.  The outlook remains
negative.

Falk Frey, Senior Vice President and lead analyst at Moody's for
Continental AG, commented: "The rating action reflects primarily
Moody's concern that the severe downturn in global automotive
markets would result in financial ratios below what Moody's had
anticipated for the previous Ba2 rating category".  Frey went on:
"The negative outlook reflects in particular Conti's potential
challenge to meet its financial covenants included in its
syndicated credit facilities as well as the upcoming refinancing
risk of EUR3.5 billion due in August 2010 from the VDO acquisition
debt".  The uncertainty around the situation at Conti's major
shareholder Schaeffler and the announced intention by management
to review a possible reorganization of the group is also weighing
on the rating though Moody's notes that the rating continues to
assume that the financing arrangements of Continental and its
shareholder will remain separate.

In Q1 2009 Conti's operating results were impacted by (i) the
steep decline in European and North American production volumes of
passenger cars and light trucks; (ii) the shift in production mix
towards smaller vehicles (iii) as well as an even steeper decline
in truck production rates in Europe and NAFTA and (iv) weak tire
markets.  Consequently, Conti's revenues declined by 35% in the
first quarter compared to the previous year's quarter and reported
EBITDA decreased 72% to EUR249.5 million from EUR884 million.
Reported EBIT was negative by EUR165 million compared to a gain of
EUR456.7 million in Q1 2008.  Although Moody's anticipates the
first quarter to be the weakest in the current year and the
decline in production volumes to smooth in the next three
quarters, this might not be sufficient to comply with covenants in
the company's key credit facility.  In addition, Conti has a
relatively high exposure to the Detroit-3 manufacturers among the
European auto suppliers on a global basis.  The current production
stop at Chrysler following bankruptcy filing and the risk of a
similar decision from General Motors result in additional
challenges for Conti to meet its fiscal year 2009 targets of a
substantial free cash flow generation and reduction in net
indebtedness.

Moody's positively notes lower capital expenditures, reduced
dividends, a tight working capital management as well as further
cost savings initiated and positive effects from raw material
prices compared to last year as mitigating factors.  At the same
time, Moody's expects the company's large non-OE business (more
than 30% of revenues) to be more resilient and allow for overall
positive operating results in 2009 despite adverse market
conditions.

The negative outlook reflects that the headroom under its
financial covenants might become very tight over the next few
quarters and moreover uncertainty over the reorganization of the
group which could have an impact on the current financial
structure of the company under certain scenarios.

Moody's notes that the ratings could come under further downward
pressure should visibility arise of lower than expected
profitability in the next few quarters or a failure to achieve
break-even Free Cash Flow in 2009.  Also, a failure to identify
definite funding sources to refinance the EUR3.5 billion debt
maturity in the next few months could also result in rating
pressure.  Finally any developments around the Conti/Schaeffler
relationship which would negatively impact the position of Conti's
creditors would put pressure on the rating.

Moody's last rating action on Conti was a downgrade to Ba2
(negative outlook) from Ba1 (negative outlook) on February 13,
2009.

Headquartered in Hanover, Germany, Continental AG is one of the
top automotive suppliers worldwide in the areas chassis and safety
technology, interior and infotainment and powertrain as well as
the world's fourth-largest manufacturer of passenger and
commercial vehicle tires.  In 2008 Conti generated consolidated
sales of EUR24 billion.


DELBROUCK GROUP: Files for Insolvency
-------------------------------------
Plasteurope reports that The Delbrouck group filed for insolvency
at the end of April after being hit by the financial crisis and a
fall in demand.

Martin Buchheister of law firm Bergfeld & Partner was appointed
provisional administrator of the company, Plasteurope relates.

The company, Plasteurope says, was unable to pay its workers'
wages in full.  Plasteurope notes local media have reported the
failure of confidential negotiations with a potential investor.

Headquartered in Menden, Germany, The Delbrouck group --
http://www.delbrouck.de/-- manufactures moulded, returnable
packaging products.


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


* ICELAND: To Start Talks With Creditors of Failed Banks This Week
------------------------------------------------------------------
AFP reports Iceland's finance ministry said on Tuesday it will
begin talks this week with the creditors of the failed commercial
banks it took over last year.

AFP relates Finance Minister Steingrimur Sigfusson told radio RUV
news on Tuesday that efforts to recapitalize the banks Kaupthing,
Landsbanki and Glitnir -- which collapsed in the credit squeeze --
had taken longer than expected.  Mr. Sigfusson, as cited by AFP,
said "Some things have taken longer than expected and turned out
to be more extensive, such as restructuring the financial system."

According to Mia Shanley of Reuters, financial authorities had
previously expected a deal could be reached by mid-May, but
negotiations have been held up due to problems valuing the assets
of the banks.

"It is now hoped that the discussions will be able to be concluded
in a rapid timeframe in order to finalize the capitalization of
the new banks," Reuters quoted the finance ministry as saying in a
statement.

Reuters notes the finance ministry also said the government hoped
to agree on compensation for creditors of the banks.


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


ILIAD INVESTMENTS: Fitch Withdraws 'C' Ratings on Series 8 Notes
----------------------------------------------------------------
Fitch Ratings has withdrawn the ratings on Iliad Investments Plc
Series 8's notes:

  -- EUR40 million class A (ISIN: XS0164067919) 'C'; Recovery
     Rating 'RR6'

  -- EUR30 million class B (ISIN: XS0164068487) 'C'; Recovery
     Rating 'RR6'

  -- EUR30 million class C (ISIN: XS0164069709) 'C'; Recovery
     Rating 'RR6'

Fitch will not longer provide rating or analytical coverage of the
notes.

The rating action follows BNP Paribas, the arranger, informing
Fitch that the synthetic CDO squared transaction has been
restructured and that no information will be provided on the
restructured transaction.

The agency downgraded the class A to C notes to 'C' from 'B', and
assigned each tranche a Recovery Rating of 'RR6' on March 20,
2009, following a continued deterioration in portfolio credit
quality, particularly in relation to assets rated 'CCC' or below.


ILIAD INVESTMENTS: Fitch Withdraws 'C' Ratings on Series 14 Notes
-----------------------------------------------------------------
Fitch Ratings has withdrawn the ratings on Iliad Investments Plc
Series 14's notes:

  -- EUR40 million class A (ISIN: XS0173610741) 'CC'; Recovery
     Rating 'RR5'

  -- EUR30 million class B (ISIN: XS0173611129) 'C'; Recovery
     Rating 'RR6'

  -- EUR30 million class C (ISIN: XS0173611475) 'C'; Recovery
     Rating 'RR6'

Fitch will not longer provide rating or analytical coverage of the
notes.

The rating action follows BNP Paribas, the arranger, informing
Fitch that the synthetic CDO squared transaction has been
restructured and that no information will be provided on the
restructured transaction.

The agency downgraded the class B and C notes to 'C' from 'B', and
assigned the two tranches a Recovery Rating of 'RR6', while
simultaneously downgrading the class A notes to 'CC' from 'B', and
assigning a Recovery Rating of 'RR5', on March 20, 2009, following
a continued deterioration in portfolio credit quality,
particularly in relation to assets rated 'CCC' or below.


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


PARMALAT SPA: France's Danone Denies Interest in Acquisition
------------------------------------------------------------
Namnews reports that France's Groupe Danone has rejected investor
speculation over the last week that it is interested in acquiring
Parmalat SpA.

Namnews relates CEO Emmanuel Faber told daily Le Figaro that the
group, which is raising its capital by EUR3 billion through a new
rights issue, does not plan to invest in Parmalat or its Italian
peer Granolaro.  The group, however, noted it will look for deals
in its core businesses -- dairy, medical and infant nutrition, and
water, NamNews states.

In a May 27 report, Reuters disclosed Il Sole 24 Ore, citing
sector experts, said Danone could use its EUR3 billion capital
raising for acquisitions, with Parmalat and dairy products maker
Granarolo possible targets in Italy.

                     About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presides over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.

(Parmalat Bankruptcy News; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000).


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


BM TECHNOLOGY: Creditors Must File Claims by June 19
----------------------------------------------------
LLP BM Technology Limited Kazakhstan is undergoing liquidation.
Creditors have until June 19, 2009, to submit proofs of claim to:

         Pirogov Str. 19
         Glubokoye
         Glubokovsky
         East Kazakhstan
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Bajov Str. 2
         070000 Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan


GRAND POST: Creditors Must File Claims by June 19
-------------------------------------------------
Creditors of LLP Grand Post have until June 19, 2009, to submit
proofs of claim to:

         Tole bi Str. 295-317
         Almaty
         azakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on April 1, 2008, after
finding it insolvent.

The Court is located at:

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


MASTER STROY & K: Creditors Must File Claims by June 19
-------------------------------------------------------
Creditors of LLP Master Stroy & K have until June 19, 2009, to
submit proofs of claim to:

         Tereshkov Str. 10
         Otenai
         Taldykorgan
         Almaty
         Kazakhstan
         Tel: 8(7282) 22-90-39, 8 701 362 50-46

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 25, 2009,
after finding it insolvent.

The Court is located at:

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


NEFTE GAS: Creditors Must File Claims by June 19
------------------------------------------------
LLP Nefte Gas Engineering Service is undergoing liquidation.
Creditors have until June 19, 2009, to submit proofs of claim to:

         Korkytata Str. 3a-2
         Kyzylorda
         Kazakhstan


SAIGAU LLP: Creditors Must File Claims by June 19
-------------------------------------------------
Creditors of LLP Factory-Farm Corporation Saigau have until
June 19, 2009, to submit proofs of claim to:

         Tereshkov Str. 10
         Otenai
         Taldykorgan
         Almaty
         Kazakhstan
         Tel: 8 (7282) 22-90-39, 8 701 362 50-46

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on Dec. 12, 2008, after
finding it insolvent.

The Court is located at:

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


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


KG CELL: Creditors Must File Claims by July 3
---------------------------------------------
LLC KG Cell is undergoing liquidation.  Creditors have until
July 3, 2009, to submit proofs of claim.

Inquiries can be addressed to (0-775) 97-69-74.


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


EUROLOAN CLO: Moody's Junks Ratings on Two Classes of Notes
-----------------------------------------------------------
Moody's Investors Service has downgraded its ratings of five
classes of notes and left on review for further possible downgrade
four of those classes of notes issued by Euroloan CLO I B.V.  One
class of notes was also placed under review for possible
downgrade.

Euroloan CLO I B.V., a static CLO, failed its effective date test
in April 2009, as the collateral par amount did not reach the
required level.  In the analysis of this transaction, Moody's used
information from the February 2009 trustee report, which is the
latest certified information available.  The arranger, Merrill
Lynch, subsequently informed Moody's that of the approximately
EUR75 million of cash remaining un-invested in the transaction as
of February 2009, EUR35 million has been used to invest in
collateral obligations.  In its analysis, Moody's assumed that the
remaining EUR40 million will be used to pay down the Class A1
notes at the next payment date, as per the transaction documents.
Moody's also made assumptions regarding the credit quality of the
EUR35 million in new assets and left all classes of notes on watch
for further possible downgrade pending further information.

The transaction has exposure to European leveraged loans, which
continue to deteriorate in the current economic environment.
Credit deterioration of the collateral pool is observed in, among
others, a decline in the average credit rating (as measured
through the weighted average rating factor) and an increase in the
proportion of securities from issuers rated Caa1 and below.  The
transaction also has a large exposure (above 16%) to mezzanine CLO
tranches, which have suffered significant rating deterioration.
The weighted average rating factor of the structured finance asset
pool increased from 1,570 originally to 5,880.

According to Moody's, the rating actions taken on the notes are a
result of applying Moody's revised assumptions with respect to
default probability, the treatment of ratings on "Review for
Possible Downgrade" or with a "Negative Outlook," and the
calculation of the Diversity Score.  The actions also reflect
consideration of credit deterioration of the underlying portfolio
as described above.  The revised assumptions that have been
applied to all corporate credits in the underlying portfolio are
described in the press release dated February 4, 2009, titled
"Moody's updates key assumptions for rating CLOs."

Moody's initially analysed and continues to monitor this
transaction using primarily the methodology and its supplements
for cash flow CLOs as described in Moody's Special Reports and
press releases below:

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

The rating actions are:

Euroloan CLO I B.V.:

(1) EUR195,000,000 Class A1 Senior Floating Rate Notes due 2029

  -- Current Rating: Aaa, on review for possible downgrade
  -- Prior Rating: Aaa
  -- Prior Rating Date: 30 October 2008, assigned Aaa

(2) EUR65,000,000 Class A2 Senior Floating Rate Notes due 2029

  -- Current Rating: A1, on review for possible downgrade

  -- Prior Rating: Aaa, on review for possible downgrade

  -- Prior Rating Date: March 4, 2009, Aaa placed under review for
     possible downgrade

(3) EUR30,000,000 Class B Senior Floating Rate Notes due 2029

  -- Current Rating: Ba1, on review for possible downgrade

  -- Prior Rating: Aa2, on review for possible downgrade

  -- Prior Rating Date: March 4, 2009, Aa2 placed under review for
     possible downgrade

(4) EUR18,000,000 Class C Senior Subordinated Deferrable Floating
    Rate Notes due 2029

  -- Current Rating: B2, on review for possible downgrade

  -- Prior Rating: A3, on review for possible downgrade

  -- Prior Rating Date: March 4, 2009, A3 placed under review for
     possible downgrade

(5) EUR21,000,000 Class D Senior Subordinated Deferrable Floating
    Rate Notes due 2029

  -- Current Rating: Caa3, on review for possible downgrade

  -- Prior Rating: Baa3, on review for possible downgrade

  -- Prior Rating Date: March 4, 2009, Baa3 placed under review
     for possible downgrade

(6) EUR16,500,000 Class E Senior Subordinated Deferrable Floating
    Rate Notes due 2029

  -- Current Rating: Ca

  -- Prior Rating: Ba3, on review for possible downgrade

  -- Prior Rating Date: March 4, 2009, Ba3 placed under review for
     possible downgrade


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


BURUKTALSKIY NICKEL: Creditors Must File Claims by June 15
----------------------------------------------------------
Creditors of LLC Buruktalskiy Nickel Plant (TIN 5644004719) have
until June 15, 2009, to submit proofs of claims to:

         A. Tsukanov
         Temporary Insolvency Manager
         Office 420
         Shosseynaya Str.24a
         460028 Orenburg
         Russia

The Arbitration Court of Orenburgskaya will convene at 9:30 a.m.
on Aug. 18, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?47-2180/2009.

The Debtor can be reached at:

         LLC Buruktalskiy Nickel Plant
         Svetlyy
         Orenburgskaya
         Russia


ELIT-STROY CJSC: Creditors Must File Claims by June 15
------------------------------------------------------
Creditors of CJSC Elit-Stroy-Rekonstruktsia (TIN 7743079130, PSRN
1037743023064, RVC 772201001) (Construction) have until June 15,
2009, to submit proofs of claims to:

         V. Mayorov
         Temporary Insolvency Manager
         Post User Box 3
         109341 Moscow
         Russia

The Arbitration Court of Moscow will convene on Nov. 26, 2009, to
hear bankruptcy supervision procedure on the company.  The case is
docketed under Case No. ?40–26231/09–18-88B.

The Debtor can be reached at:

          CJSC Elit-Stroy-Rekonstruktsia
          Building 1a
          Krasnokazarmennaya Str. 14
          Moscow
          Russia


NOVOLIPETSK STEEL: Posts US$193.8 Mln Net Loss in First Qtr. 2009
-----------------------------------------------------------------
RIA Novosti reports that Novolipetsk Steel OJSC posted a US GAAP
net loss for the first quarter of 2009 of US$193.8 million
compared with a US$617.7 million net profit a year earlier.

The report relates the company said revenue decreased 45% to
US$1.29 billion, operating profit declined to US$99.1 million from
US$776.4 million a year ago and gross profit to US$322.3 million
from US$1.04 billion.  According to the report, EBITDA (earnings
before interest, taxes, depreciation and amortization) fell 77% in
the reporting period to US$196.7 million.

"We do not expect any significant improvement in the overall steel
market in Q2 2009.  We believe that price stabilization and the
revival of demand may start in H2 2009 when the efforts taken to
support the financial sector and stimulate the world economy lead
to an increase in fixed asset investment and production growth,"
the report quoted Novolipetsk Steel as saying in a statement.

Headquartered in Lipetsk, Russia, Novolipetskiy metallurgicheskiy
kombinat OAO (NLMK OAO or Novolipetsk Steel OJSC) --
http://www.nlmksteel.com-- is a vertically integrated steel
producer.  The Company's principal activity is the production and
sale of ferrous metals, primarily consisting of pig iron, steel
slabs, hot rolled steel, cold rolled steel, galvanized cold rolled
sheet, cold rolled sheet with polymeric coatings and electro
technical steel.  The Company's operations are structured in the
following segments: spanning mining, steelmaking and rolling.
NLMK OAO has 24 subsidiaries, of which 19 are wholly owned, and
one affiliated company.  The Company trades its products
domestically as well as exports them to 70 countries worldwide.

                          *     *     *

Novolipetsk Steel OJSC continues to carry a 'Ba1' long-term
corporate family rating from Moody's Investors Service with
negative outlook.  NLMK still carries a 'BB+' long-term
issuer default rating and a 'B' short-term issuer default rating
from Fitch Ratings with stable outlook.


RUSSIAN CORPORATION: S&P Assigns 'BB+' Long-Term Issuer Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB+' long-term and 'B' short-term issuer credit ratings and
'ruAA+' Russia national scale rating to the Russian Corporation of
Nanotechnologies, a state investment institution established by
the government of the Russian Federation (foreign currency
BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia
national scale 'ruAAA') in the special form of a state
corporation.  The outlook is negative.

S&P uses its government-related entities criteria in rating
RusNano.

"We have applied a top-down approach in assessing RusNano,
reflecting the strong likelihood that the corporation would
receive timely extraordinary support from the state in case of
financial distress," said Standard & Poor's credit analyst Boris
Kopeykin.  "The ratings on RusNano are therefore higher than its
stand-alone credit quality, which S&P assess as being in the 'B'
category, not taking into account such government support."

The three-notch differential between the long-term rating on
RusNano and the local currency long-term rating on the sovereign
reflects the government's negative intervention in its withdrawal
of part of the corporation's capital in 2009 and the absence of
mechanisms to ensure timely state support to the corporation.  The
three-notch difference also reflects uncertainty regarding the
form that the financial relationship with the state will take in
the medium to long term.

The government created RusNano to support state policy in the area
of nanotechnologies.  The corporation is supposed to invest in
projects that apply nanotechnologies and promote such investments
in the market.  The government provided the corporation with
Russian ruble 130 billion (more than US$5 billion at the moment of
injection; US$4.1 billion at the current exchange rate)
in capital in early 2008.  However, due to the budgetary pressures
in 2009, the government has decided to withdraw RUR85 billion at
the end of 2009 to improve the federal budget's balance.

Despite the withdrawal, RusNano has sufficient capital and
liquidity to implement its ambitious investment program in 2009
and the first quarter of 2010.

According to information from RusNano, after the transfer of
RUR85 billion back to the state and the implementation of planned
investments in 2009, the corporation's cash position will
deteriorate to budgeted RUR13 billion, and could be insufficient
to cover the corporation's financing commitments for 2010.

The negative outlook on RusNano mirrors that on the Russian
Federation.  The rating on RusNano is likely to follow any rating
actions on the sovereign in the immediate future.

Should the government reaffirm and demonstrate strong ongoing
support to the corporation, and/or the availability of
extraordinary support to the corporation in case of emergency, S&P
might decrease the notching down from the sovereign rating and
might raise the rating on RusNano.

"In contrast, signs of weakening ongoing and/or extraordinary
support might result in increased notching, and a consequent
downgrade of RusNano," said Mr. Kopeykin.

S&P will be particularly taking into account the amount and
timeliness of budget injections, which S&P expects to be the key
support of the corporation's liquidity position over the next
several years.


SIBIRSKAYA CONSTRUCTION: Creditors Must File Claims by June 15
--------------------------------------------------------------
The Arbitration Court of Omsk commenced bankruptcy proceedings
against LLC Sibirskaya Construction Company (TIN 5509005113) after
finding the company insolvent.  The case is docketed under
Case No. ?46–1836/2009.

Creditors have until June 15, 2009, to submit proofs of claims to:

         N. Utochenko
         Insolvency Manager
         Apt. 136
         Prospect Mira 106a
         Omsk-89
         Russia

The Debtor can be reached at:

         LLC Sibirskaya Construction Company
         Tarskaya Str. 13
         Omsk
         Russia


STROY-PLAST LLC: Creditors Must File Claims by July 15
------------------------------------------------------
The Arbitration Court of Omskaya commenced bankruptcy proceedings
against LLC Stroy-Plast (TIN 5526004800, PSRN 1045549001717)
(Glass Manufacturing) after finding the company insolvent.  The
case is docketed under Case No. ?46–7176/2009.

Creditors have until July 15, 2009, to submit proofs of claims to:

         V. Ratkovskiy
         Insolvency Manager
         K. Libknekhta Str. 35
         644043 Omsk
         Russia

The Debtor can be reached at:

         LLC Stroy-Plast
         Chapaeva Str. 74
         Pobochino
         Odesskiy
         646871 Omskaya
         Russia


WESTERN-URALSK LLC: Creditors Must File Claims by July 15
---------------------------------------------------------
The Arbitration Court of Permskiy commenced bankruptcy proceedings
against  LLC Western-Uralsk Machine-Building Concern (TIN
5908019492, PSRN 1025901610206) after finding the company
insolvent.  The case is docketed under Case No. ?50–15850/2008.

Creditors have until July 15, 2009, to submit proofs of claims to:

         A. Avilov
         Insolvency Manager
         Office 313
         Suvorova Str. 111a
         440000 Penza
         Russia

The Debtor can be reached at:

         LLC Western-Uralsk Machine-Building Concern
         Lipatova Str. 30
         Perm
         614113 Permskiy
         Russia


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


IM PRESTAMOS: Moody's Reviews 'Ba2' Rating on Class A-3 Notes
-------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade its ratings of three classes of notes issued by IM
Prestamos Fondos Cedulas, FTA.  The rating of the liquidity
facility related to this transaction was also placed on review for
possible downgrade.  The transaction is a static cash CBO of a
pool of EUR-denominated subordinated loans granted by 13 Spanish
financial institutions to 14 Fondos de Titulizacion de Activos
backed by Cedulas Hipotecarias issued by several Spanish credit
institutions.  Cedulas are covered bonds issued by Spanish
financial institutions.  The transaction is scheduled to mature
upon full amortisation of the underlying Cedulas or on the legal
final maturity in 2022 at the latest.

The rating actions reflect the recent changes affecting the public
ratings of Spanish financial institutions and Cedulas.  Moody's
announced on May 19, 2009 that it had placed 36 Spanish financial
institutions on review for possible downgrade and on May 20, 2009,
that it had placed Spanish covered bond ratings on review for
possible downgrade.

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 (March 2009)

  -- Moody's updates key assumptions for rating corporate
     synthetic CDOs (January 2009)

  -- Framework for De-Linking Hedge Counterparty Risks from Global
     Structured Finance Cashflow Transactions (May 2007)

  -- European Structured Covered Bonds: Moody's Rating Approach,
     April 2003(SF21457)

The rating actions are:

IM Prestamos Fondos Cedulas, FTA

  -- EUR40 Million Liquidity Facility, Aaa and placed under
     review for possible downgrade; previously on October 11,
     2007, assigned Aaa

  -- EUR344.1 Million Class A due 2022, Aaa and placed under
     review for possible downgrade; previously on October 11,
     2007, assigned Aaa

  -- EUR6.9 Million Class B due 2022, Baa2 and placed under
     review for possible downgrade; previously on October 11,
     2007, assigned Baa2

  -- EUR0.9 Million Class A-3 due 2022, Ba2 and placed under
     review for possible downgrade; previously on October 11,
     2007, assigned Ba2


TESORERIA I: Moody's Cuts Ratings on Two Classes of Notes to Low-B
------------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of three
classes of notes issued by AyT Bonos Tesoreria I, FTA and three
classes of notes issued by AyT Bonos Tesoreria II, FTA, and left
all six classes on review for possible further downgrade.  The
transactions are static cash CBOs of pools of EUR-denominated
bonds issued by Spanish savings banks, scheduled to mature in
April 2010 and Feb 2013 respectively.

The rating actions reflect the deterioration in the credit quality
of the underlying pools as indicated by the negative rating
actions on the issuers and the negative outlook on the Spanish
banking sector in general.  Moody's announced on May 19, 2009,
that it had placed 36 Spanish banks on review for possible
downgrade ("Moody's reviews Spanish bank ratings").  The rating
actions are also a result of the revision of certain key
assumptions that the agency uses to rate and monitor corporate
CDOs.  Specifically, the changes include: (1) a 30% increase in
the assumed likelihood of default for corporate credits in CDOs
(2) a one notch rating stress on the pools' underlying securities
pursuant to

Moody's recently announced review of the Spanish banking sector
and (3) a 10% stress to the the standard pair wise asset
correlation applied to the entities in these heavily concentrated
portfolios.

The ratings of the six classes of notes remain on review pending
completion of the review of Spanish banks ratings.

Moody's initially analyzed and continues to monitor these
transactions 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)

  -- Moody's updates key assumptions for rating corporate
     synthetic CDOs (January 2009)

  -- Framework for De-Linking Hedge Counterparty Risks from Global
     Structured Finance Cashflow Transactions (May 2007)

The rating actions are:

AyT Bonos Tesoreria I, FTA

  -- EUR935,100,000 Class A Notes, Downgraded to A2 and placed
     under review for possible downgrade; previously on

April 4, 2005 assigned Aaa

  -- EUR151,600,000 Class B Notes, Downgraded to Ba1 and placed
     under review for possible downgrade; previously on

April 4, 2005 assigned A2

  -- EUR93,300,000 Class C Notes, Downgraded to Ba3 and placed
     under review for possible downgrade; previously on

April 4, 2005 assigned Baa3

AyT Bonos Tesoreria II, FTA

  -- EUR967,200,046.56 (at closing EUR1,167,200,000) Class A
     Notes, Downgraded to Aa2 and placed under review for possible
     downgrade; previously on February 16, 2006, assigned Aaa

  -- EUR210,300,000 Class B Notes, Downgraded to Baa1 and placed
     under review for possible downgrade; previously on
     February 16, 2006, assigned A2

  -- EUR72,500,000 Class C Notes, Downgraded to Ba1 and placed
     under review for possible downgrade; previously on
     February 16, 2006, assigned Baa3


TESORERIA II: Moody's Lowers Rating on Class C Notes to 'Ba1'
-------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of three
classes of notes issued by AyT Bonos Tesoreria I, FTA and three
classes of notes issued by AyT Bonos Tesoreria II, FTA, and left
all six classes on review for possible further downgrade.  The
transactions are static cash CBOs of pools of EUR-denominated
bonds issued by Spanish savings banks, scheduled to mature in
April 2010 and Feb 2013 respectively.

The rating actions reflect the deterioration in the credit quality
of the underlying pools as indicated by the negative rating
actions on the issuers and the negative outlook on the Spanish
banking sector in general.  Moody's announced on May 19, 2009,
that it had placed 36 Spanish banks on review for possible
downgrade ("Moody's reviews Spanish bank ratings").  The rating
actions are also a result of the revision of certain key
assumptions that the agency uses to rate and monitor corporate
CDOs.  Specifically, the changes include: (1) a 30% increase in
the assumed likelihood of default for corporate credits in CDOs
(2) a one notch rating stress on the pools' underlying securities
pursuant to

Moody's recently announced review of the Spanish banking sector
and (3) a 10% stress to the the standard pair wise asset
correlation applied to the entities in these heavily concentrated
portfolios.

The ratings of the six classes of notes remain on review pending
completion of the review of Spanish banks ratings.

Moody's initially analyzed and continues to monitor these
transactions 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)

  -- Moody's updates key assumptions for rating corporate
     synthetic CDOs (January 2009)

  -- Framework for De-Linking Hedge Counterparty Risks from Global
     Structured Finance Cashflow Transactions (May 2007)

The rating actions are:

AyT Bonos Tesoreria I, FTA

  -- EUR935,100,000 Class A Notes, Downgraded to A2 and placed
     under review for possible downgrade; previously on

April 4, 2005 assigned Aaa

  -- EUR151,600,000 Class B Notes, Downgraded to Ba1 and placed
     under review for possible downgrade; previously on

April 4, 2005 assigned A2

  -- EUR93,300,000 Class C Notes, Downgraded to Ba3 and placed
     under review for possible downgrade; previously on

April 4, 2005 assigned Baa3

AyT Bonos Tesoreria II, FTA

  -- EUR967,200,046.56 (at closing EUR1,167,200,000) Class A
     Notes, Downgraded to Aa2 and placed under review for possible
     downgrade; previously on February 16, 2006, assigned Aaa

  -- EUR210,300,000 Class B Notes, Downgraded to Baa1 and placed
     under review for possible downgrade; previously on
     February 16, 2006, assigned A2

  -- EUR72,500,000 Class C Notes, Downgraded to Ba1 and placed
     under review for possible downgrade; previously on
     February 16, 2006, assigned Baa3


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


DRUCKEREI MARCH: Claims Filing Deadline is June 30
--------------------------------------------------
Creditors of Druckerei March AG are requested to file their proofs
of claim by June 30, 2009, to:

         Peter Grueter
         Liquidator
         Oberdorfstrasse 8
         8853 Lachen
         Switzerland

The company is currently undergoing liquidation in Lachen SZ.  The
decision about liquidation was accepted at an extraordinary
general meeting held on March 16, 2009.


INTERNATIONAL MUSIC: Creditors Must File Claims by June 25
----------------------------------------------------------
Creditors of International Music Scout AG are requested to file
their proofs of claim by June 25, 2009, to:

         International Music Scout AG
         Kirchstrasse 53
         8807 Freienbach
         Switzerland

The company is currently undergoing liquidation in Freienbach.
The decision about liquidation was accepted at a general meeting
held on Feb. 19, 2009.


OLINES MEDITERRAN: Claims Filing Deadline is June 25
----------------------------------------------------
Creditors of Olines mediterran GmbH are requested to file their
proofs of claim by June 25, 2009, to:

         Olines mediterran GmbH
         Romanshornerstrasse 62
         9320 Arbon
         Switzerland

The company is currently undergoing liquidation in Arbon.  The
decision about liquidation was accepted at a shareholders' meeting
held on April 15, 2009.


SCHWIZERLAND HANDEL: Creditors Must File Claims by June 25
----------------------------------------------------------
Creditors of Schwizerland Handel GmbH are requested to file their
proofs of claim by June 25, 2009 to:

         Schwizerland Handel GmbH
         Baselstrasse 66
         4500 Solothurn
         Switzerland

The company is currently undergoing liquidation in Solothurn.  The
decision about liquidation was accepted at a shareholders' meeting
held on Oct. 29, 2008.


TRUFIELD HOLDING: Claims Filing Deadline is June 30
---------------------------------------------------
Creditors of Trufield Holding AG are requested to file their
proofs of claim by June 30, 2009, to:

         Dr. Heiner Bernold
         Bahnhofstrasse 7
         Mail Box 715
         6301 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
general meeting held on April 2, 2009.


* SWITZERLAND: Slips Into Recession
-----------------------------------
BBC News reports that Switzerland has slipped into a recession.

According to the report, official figures showed that the
country's economy shrank by 0.8% in the first three months of
2009.  The report relates the decline came after a contraction of
0.3% in the last quarter of 2008.


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


AGRICULTURAL LLC: Creditors Must File Claims by June 12
-------------------------------------------------------
Creditors of Agricultural LLC Machinery and Tractor Station (code
EDRPOU 14194858) have until June 12, 2009, to submit proofs of
claim to:

          V. Bilan
          Insolvency Manager
          Office 101
          Lazarev Str. 6
          18000 Cherkassy
          Ukraine

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company on April 27, 2009.

The Court is located at:

          The Economic Court of Cherkassy
          Shevchenko Boulevard 307
          18004 Cherkassy
          Ukraine

The Debtor can be reached at:

          Agricultural LLC Machinery and Tractor Station
          Zherebtsov Str. 7
          Tsibulov
          Monastirischensky
          19114 Cherkassy
          Ukraine


EVROTECH LLC: Creditors Must File Claims by June 12
---------------------------------------------------
Creditors of LLC Science and Production Enterprise Evrotech (code
EDRPOU 32244278) have until June 12, 2009, to submit proofs of
claim to:

         I. Gusar
         Insolvency Manager
         Post Office Box 29
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on April 28, 2009.  The case is docketed under
Case No. 15/256-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 Science and Production Enterprise Evrotech
         Office 1
         Krasnoarmeyskaya str. 68
         03150 Kiev
         Ukraine


FOOD ALLIANCE: Court Starts Bankruptcy Supervision Procedure
------------------------------------------------------------
The Economic Court of AR Krym commenced bankruptcy supervision
procedure on LLC Food Alliance (code EDRPOU 32013094).

The Insolvency Manager is:

         V. Kosovsky
         Office 7
         Voyenny Avenue 6
         73000 Herson
         Ukraine

The Court is located at:

         The Economic Court of AR Krym
         R. Luxembourg/Rechnaya Str. 29/11
         95003 Simferopol
         Ukraine

The Debtor can be reached at:

          LLC Food Alliance
          Lenin Str. 38
          Tchaplinka
          Herson
          Ukraine


IMEXBANK JSCB: Bank Default Cues Moody's to Junk Deposit Ratings
----------------------------------------------------------------
Moody's Investors Service has downgraded Imexbank's long-term
local and foreign currency deposit ratings to Caa2 from B3.  In
addition, Imexbank's bank financial strength rating was downgraded
to E from E+ and its National Scale Rating to B3.ua from Baa3.ua.
All ratings carry a stable outlook.

The downgrade of Imexbank's ratings is driven by the bank's
default on honouring the put option on Series-A local currency
bonds.  The total amount of bonds outstanding under Series-A and
Series-B is UAH45 million (US$5.8 million).

Moody's notes that as of the date of this rating action, Imexbank
made an offer to restructure the obligations with those
bondholders who intended to execute the put option.  The bank is
negotiating prolongation of all claims at least for three months,
while the restructuring terms do not envisage any increase in the
interest rates.  However, the bank has Series-B local bonds
outstanding which also have a put-option due in November 2009 and
Moody's believes there is a high probability that respective
claims will be restructured.  These considerations and Moody's
expectations regarding the level of possible losses to the bank's
creditors are captured in the Caa2 rating currently assigned to
the bank.

"This default was mainly the result of the recent weakening of the
bank's liquidity position caused by the deposit outflow
experienced by Imexbank, in common with many other Ukrainian
banks.  As such, the bank became more dependent on funding from
National Bank of Ukraine -- the country regulator and liquidity
support provider to the system.  Under the terms of deposits
placed by the NBU, the central bank recommends that Imexbank pays
all obligations only on final contractual maturities in order to
avoid any privileged transactions with insiders.  As such, the
bank treated the put option as early repayment of debt and decided
against redeeming the local bonds," said Elena Redko, a Moscow-
based Moody's Analyst and the lead analyst for Imexbank.

Due to the lack of information from Imexbank, Moody's is unable to
comment on the current level of the bank's liquidity position and
therefore is unable to accurately assess the further impact of
breaching NBU's recommendations on the bank's liquidity and
creditworthiness.

The previous rating action on Imexbank was on December 30, 2008,
when Moody's changed the rating outlook to negative from stable on
the long-term global local currency or foreign currency deposit or
debt ratings of 19 Ukrainian banks, including Imexbank, reflecting
the substantial increase in credit and liquidity risk for the
country's banks arising from the steep depreciation of the
Ukrainian hryvnia.

Headquartered in Odessa, Ukraine, Imexbank reported unaudited
total assets of UAH6.2 billion (US$805 billion) and net profit of
UAH62 million (US$8 million) as at December 31, 2008 in accordance
with Ukrainian Accounting Standards.


MOUNTER-538 LLC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------
The Economic Court of Chernigov commenced bankruptcy supervision
procedure on LLC Mounter-538 (code EDRPOU 335858845).

The Insolvency Manager is:

         A. Ageyev
         Office 3
         Komsomolskaya Str. 55
         14000 Chernigov
         Ukraine

The Court is located at:

         The Economic Court of Chernigov
         Mir Avenue 20
         14000 Chernigov
         Ukraine

The Debtor can be reached at:

         LLC Mounter-538
         Industrialnaya Str. 11
         14011 Chernigov
         Ukraine


MOUNTER-538 OJSC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Economic Court of Chernigov commenced bankruptcy supervision
procedure on OJSC Mounter-538 (code EDRPOU 01361523).

The Insolvency Manager is:

         I. Ptchelintseva
         Office 48
         Schors Str. 10
         14000 Chernigov
         Ukraine

The Court is located at:

         The Economic Court of Chernigov
         Mir Avenue 20
         14000 Chernigov
         Ukraine

The Debtor can be reached at:

         OJSC Mounter-538
         Industrialnaya Str. 11
         14011 Chernigov
         Ukraine


PRAVEX BANK: Moody's Withdraws 'E+' Bank Financial Strength Rating
------------------------------------------------------------------
Moody's Investors Service has withdrawn these ratings of Pravex
Bank: Bank Financial Strength Rating of E+, global local currency
deposit and debt ratings of Ba2/Not Prime, global foreign currency
deposit ratings of B3/Not Prime as well as the national scale
rating of Aa1.ua.

The ratings have been withdrawn for business reasons following the
official request from PB.

The rating agency notes that Pravex-Bank's Ba2 local currency
deposit and debt ratings carry a stable outlook, while the outlook
for the bank's B3 foreign currency deposit rating is negative in
line with the outlook for the foreign currency deposit ceiling for
Ukraine.

The previous rating action on Pravex-Bank was on May 12, 2009,
when Moody's downgraded the bank's long-term foreign currency
deposit rating to B3 from B2.

Headquartered in Kyiv, Ukraine, Pravex-Bank reported total IFRS
consolidated assets and net income of US$1.15 billion and
US$4.96 million, respectively, as of year-end 2007.


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


AEOLUS CDO: S&P Junks Ratings on Class E Colonnade II & III Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
notes issued by Aeolus CDO Ltd.

Specifically, S&P has:

  -- lowered and placed on CreditWatch negative its ratings on the
     class C, D, and E notes issued by Aeolus CDO ( Colonnade II)
     and all the notes issued by Aeolus CDO ( Colonnade III); and

  -- placed on CreditWatch negative its ratings on the class A to
     E notes issued by Aeolus CDO ( Colonnade I) and the class A
     and B notes issued by Colonnade II.

All three transactions are European collateralized debt
obligations of hybrid mezzanine structured finance obligations.

The rating actions reflect S&P's assessment of the credit
deterioration of the assets in the transactions' underlying
portfolios, mainly due to their exposure to European structured
finance securities.  For Colonnade II and III, the credit
migration has been significant and has led to a pronounced
increase in the scenario default rates.

As a result, the existing ratings on the Colonnade II class C, D,
and E notes and all the Colonnade III 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.

Based on the data from the last trustee reports available to us,
Colonnade III's class E and Colonnade II's class C, D, and E
coverage tests are currently failing their respective trigger
levels under the transaction documentation.

Following S&P's assessment of the deterioration in the credit
quality of the underlying assets in the portfolios, the
deterioration in the portfolio coverage tests, and the proportion
of assets currently on CreditWatch negative in the portfolios, S&P
has placed all the notes in these three transactions on
CreditWatch negative.

S&P will closely monitor the transactions' performance and will
resolve the outstanding CreditWatch placements in due course.

                           Ratings List

              Ratings Placed on Creditwatch Negative

                          Aeolus CDO Ltd.
      EUR126 Million Secured Credit-Linked Floating-Rate Notes
                          (Colonnade I)

                                   Rating
                                   ------
              Class         To                  From
              -----         --                  ----
              A             AAA/Watch Neg       AAA
              B             AA/Watch Neg        AA
              C             A/Watch Neg         A
              D             BBB-/Watch Neg      BBB-
              E             BB-/Watch Neg       BB-

                         Aeolus CDO Ltd.
      GBP89 Million Secured Credit-Linked Floating-Rate Notes
                         (Colonnade II)

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

        Ratings Lowered And Placed On Creditwatch Negative

                         Aeolus CDO Ltd.
      GBP89 Million Secured Credit-Linked Floating-Rate Notes
                         (Colonnade II)

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

                         Aeolus CDO Ltd.
      EUR165 Million Secured Credit-Linked Floating-Rate Notes
                         (Colonnade III)

                                   Rating
                                   ------
              Class         To                  From
              -----         --                  ----
              A             AA+/Watch Neg       AAA
              B             A+/Watch Neg        AA
              C             BBB+/Watch Neg      A
              D             BB/Watch Neg        BBB-
              E             CCC+/Watch Neg      BB-
              W             BB/Watch Neg        BBB-


BRADFORD & BINGLEY: Loan Losses Could Hit GBP700 Mln This Year
--------------------------------------------------------------
Patrick Hosking at The Times reports that Bradford & Bingley plc
is expected to make loan losses of between GBP600 million and
GBP700 million this year as more borrowers default on mortgages.

Richard Pym, B&B's chairman, told The Times that the proportion of
borrowers more than three months behind on their repayments had
worsened since March, when B&B reported an arrears rate of 4.6 per
cent, itself double the 2007 figure.

"It's now above 5 per cent," The Times quoted Mr. Pym as saying,
"and it will continue to deteriorate for the remainder of the
year."

The Times discloses B&B, which has borrowed more than GBP20
billion from the British government so far, is set to borrow
billions more because its wholesale loans from the private sector
are maturing much faster than its mortgages are being paid back,
creating a widening working capital shortfall.  According to The
Times, B&B expects to redeem only about GBP2 billion of mortgages
a year over the next three years, while as much as GBP10 billion
of its wholesale borrowing comes due this year alone.  The Times
says the government has pledged to provide the necessary
additional working capital, on top of GBP18 billion in direct
loans and other loans channeled through the Financial Services
Compensation Scheme (FSCS).  B&B pays no interest on the bulk of
its borrowings from the government and the FSCS, The Times states.

The Times recalls the bank was taken into public ownership last
September and its savings business and branches sold to Santander
Group, of Spain.  Mr. Pym is in charge of winding down the
business, which has 300,000 borrowers and outstanding mortgages of
GBP41 billion, The Times notes.

                 Deferral of Interest Payment

On May 29, 2009, the Troubled Company Reporter-Europe, citing
Telegraph.co.uk, reported that B&B said it would not pay
the interest due on GBP325 million of subordinated bonds.
Telegraph.co.uk related the bank said it would not make interest
payments on GBP150 million of floating rate subordinated notes due
on June 30, GBP125 million of 6.625pc notes due on June 16, and
GBP50 million of 11.625pc bonds due on July 20.  B&B,
Telegraph.co.uk disclosed, is able to skip the payments after the
Treasury changed the rules in February allowing the nationalized
bank to make such deferrals on so-called lower Tier 2 debt to
protect the taxpayers.  Telegraph.co.uk noted there is no
certainty over when, or indeed if, B&B will make the missed
payments.  It was also unclear whether the decision by B&B to
defer those payments would constitute a default on credit default
swaps, Telegraph.co.uk stated.

                   About Bradford & Bingley

Headquartered in Bingley, United Kingdom, Bradford & Bingley plc
-- http://www.bbg.co.uk/-- offers residential mortgages, and
focus on a range of areas providing mortgages for individuals.  It
focuses on its savings business and provides a range of
savings products through 197 branches and network of 140 third-
party branch-type agents, by phone, post and Online.


KW LINFOOT: Peel Drafts Insolvency Expert to Conduct Investigation
------------------------------------------------------------------
Debbie Leigh at Yorkshire Evening Post reports that Peel Holding,
the largest creditor of Leeds-based property group KW Linfoot,
drafted an insolvency expert to probe into the company's
activities.

The report recalls KW Linfoot went into administration in
February.  It owed GBP3 million to secured creditors including
around GBP800,000 to founder Kevin Linfoot and GBP3.9 million to
unsecured creditors, the report discloses.  The report states
unsecured loans from Mr. Linfoot to the group totaled GBP3.1
million.

According to the report, property firm Peel, which is owed GBP7.7
million from a land deal in Salford, drafted in Manchester
insolvency expert Paul Stanley, a partner at Begbies Traynor, to
work as joint liquidator with current administrator Gary Blackburn
of Leeds-based BWC Business Solutions.   Peel, the report relates,
also appointed receivers under the Law of Property Act to take
control of land in Salford Quays, Manchester, where KW Linfoot was
planning to build 1,000 apartments with London group Yoo Holdings
through joint venture Manyoo.

"We offered Peel, as our largest creditor, chance to put one of
their guys in to look at the books and activities of the business,
which we are happy to do because we have got nothing to hide," the
report quoted Richard Dean, a director of KW Linfoot, as saying.

Mr. Dean stressed the probe was simply standard procedure, the
report notes.


LDV: Lack of Funds Prompts Administration Request
-------------------------------------------------
Graham Ruddick at Telegraph.co.uk reports that LDV has reapplied
to enter administration, putting more than 6,000 jobs at risk.

LDV, as cited by BreakingNews.ie, said: "The directors of LDV
Group have been forced to reapply for administration to protect
the assets of the business.  This is due to the fact that
essential funds required to maintain the business and workforce as
a going concern are not being made available."

According to Telegraph.co.uk, potential buyer Weststar has been
unable to secure financing for a deal.  It is thought to have
failed to gain the backing of three Malaysian investors,
Telegraph.co.uk states.

"We have explored all known avenues to access this funding,
including assistance from the UK Government, but without this in
place, it will not be possible to deliver the plan to secure jobs
in the UK," Telegraph.co.uk quoted Weststar as saying in a
statement.

Telegraph.co.uk recalls last month Malaysia's Westar agreed a
preliminary deal to resue the company, which employs 850 staff
directly.  The agreement to buy LDV was subject to due diligence,
financing and various approvals, BreakingNew.ie discloses.
Telegraph.co.uk recounts in order to support LDV while
negotiations were completed, the British government provided a
GBP5 million bridging loan to Weststar.  However, Weststar, having
already used GBP1.4 million to pay workers and prepare for
manufacturing, is not prepared to release more, Telegraph.co.uk
relates.  The government may now seek the return on the loan,
Telegraph.co.uk says.

Tim Webb at guardian.co.uk reports that this week Weststar made a
desperate appeal to the government for GBP45 million to keep the
LDV going, but officials are not willing to risk further
taxpayers' money.  guardian.co.uk says sources close to LDV
admitted the chances of finding alternative investment were bleak.
It is understood that due diligence on LDV showed the sales
outlook for the company was worse than Weststar had been
expecting, guardian.co.uk notes.

Based in Birmingham, LDV -- http://www.ldv.com/-- designs,
manufactures and distributes the MAXUS range of light commercial
vehicles.  Originally formed in 1993 as Leyland DAF Vans Ltd, it
later changed its name to LDV Group Ltd and is now under Gaz Group
ownership since July 2006.  LDV has an annual turnover of GBP160
million and exports vehicles to Europe, the Middle East and to the
Asian Pacific Rim.  The Group also includes Birmingham Pressings,
a stamping business producing body panels and subassemblies for
LDV and external customers.


LLOYDS BANKING: UKFI Says to Fully Support Board
------------------------------------------------
BreakingNews.ie reports that the UK Financial Investments, which
looks after the government's 43.4% shareholding in Lloyds Banking
Group plc, said it would vote in favor of all resolutions put to
investors at tomorrow's meeting in Glasgow.

John Kingman, chief executive of UKFI, as cited by
BreakingNews.ie, said: "UKFI has made it clear that we fully
support the Lloyds board, strategy and executive team led by Eric
Daniels."

The Scotsman's Erikka Askeland reports that the resolutions
shareholders will vote on tomorrow include the re-appointment of
chairman Sir Victor Blank, who plans to step down next summer, and
the group's remuneration report.  BreakingNews.ie notes tomorrow's
meeting will also see shareholders asked to vote on the company's
plans to raise GBP4 billion (EUR4.6 billion) through a share
placing to convert the preference shares owned by the government
into ordinary shares.

                         Protest

According to the Scotsman, small shareholders are expected to vote
against Mr. Blank's reappointment and the remuneration report.
The Scotsman discloses the UK Shareholders Association (UKSA) is
also campaigning for the bank's 2.8 million small shareholders to
vote against the re-election of Archie Kane, the board member
responsible for Scotland, and Lord Leitch, the deputy chairman.
Both were on the Lloyds board when it decided to take over HBOS,
the Scotsman notes.

Douglas Fraser at BBC News reports that institutional investment
advisory firm Pirc has advised the board of Lloyds to put itself
up for re-election, to test shareholder support for how it handled
the HBOS takeover.  BBC News relates Pirc said on Tuesday it had
concerns over Mr. Blank's competency in the wake of the HBOS deal,
which was seen as having gone through without the proper due
diligence.  Pirc, BBC News discloses, has advised voters to
abstain from voting for the bank's remuneration report.

                       Legal Advice

Peter Ranscombe at The Scotsman reports that the UKSA plans to
raise funds to sue Lloyds TSB over last year's HBOS takeover.  The
Scotsman says the UKSA will write to 1.5 million former HBOS
shareholders to raise money for further legal advice.  Roger
Lawson, the UKSA's spokesman, as cited by the Scotsman, said the
association had already received informal legal advice and now
wanted to take more detailed advice.

"We plan to raise funds from shareholders to try to progress these
issues," the Scotsman quoted Mr. Lawson as saying.  "One issue is
the Lloyds TSB directors seem to have paid significant attention
to the wishes of the UK government and the interests of HBOS
shareholders."

The Scotsman relates Mr. Lawson said the UKSA was also putting
pressure on the government to make plain how it intended to put
the banks back into private ownership.

"We'd like to see proposals as to how the government can withdraw
from this business.  In our view, that would allow shareholders to
recoup their lost value more rapidly," the Scotsman quoted Mr.
Lawson as saying.  "As long as the government is bullying the
company to do what it wants then it's not going to be operating in
the interests of shareholders."

                  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.


LLOYDS BANKING: Moody's Cuts Rating on Preference Shares to 'B3'
----------------------------------------------------------------
Moody's Investors Service has downgraded the hybrid instruments
issued by the two large banking groups in the UK in which the
government has shareholdings: Royal Bank of Scotland Group and
Lloyds Banking Group.  In addition, Lloyds TSB Bank plc's C+ BFSR
has been placed on review for possible downgrade, reflecting the
rating agency's concerns about a further weakening in the group's
financial performance.

There has been no change to the senior debt of either group (Aa3
for Royal Bank of Scotland plc, and Aa3 for Lloyds TSB Bank plc),
or the Aaa government-guaranteed debt issued by the banks.

Elisabeth Rudman, Senior Credit Officer at Moody's Investors
Service, commented that "Moody's wider notching of the hybrid
instruments from the banks' Baseline Credit Assessment, was
prompted primarily by These two concerns: firstly, the fact that
the banks are likely to remain loss-making in the near-to-medium
term increases the possibility of coupons being missed.  And
secondly, Moody's assessment of the probability that EU approval
for the support package received by these banks could be
contingent upon the suspension of coupons on these instruments.
This has been seen in other cases where state aid was approved by
the EU, and Moody's considers this could apply to optional
deferral as well as mandatory deferral triggers."

Downgrade of Preference Shares and Junior Sub Debt of Rbs And
Lloyds

The instruments of These banks have been affected by this action:

Royal Bank of Scotland plc:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Ba1 (the Ba2 rated National Westminster non-cumulative
     preference shares with voting rights downgraded to B3);
     stable outlook;

  -- Cumulative junior subordinated debt downgraded to Ba1 from
     Baa3; remains on review for further possible downgrade
     pending the completion of the review on the bank's C  --
     BFSR.

Royal Bank of Scotland Group:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Ba2 and from Ba3 (for the instruments with voting
     rights); stable outlook;

  -- Cumulative (Tier 1) preference shares downgraded to Ba3 from
     Ba2; remain on review for downgrade pending the completion of
     the review on RBS plc's BFSR

  -- Cumulative junior subordinated debt downgraded to Ba1 from
     Baa3; remains on review for downgrade pending the completion
     of the review on RBS plc's BFSR.

Lloyds TSB Bank:

  -- Non-cumulative (Tier 1) preferred securities downgraded to B3
     from Baa1; stable outlook;

  -- Cumulative (Tier 1) preferred securities downgraded to Baa2
     from Baa1; remain on review for possible downgrade pending
     the completion of the review on Lloyds's BFSR;

  -- Cumulative junior subordinated debt downgraded to Baa1 from
     A3; remains on review for downgrade pending the completion of
     the review on Lloyds's BFSR.

Lloyds Banking Group:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Baa2; stable outlook;

Bank of Scotland:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Baa2; stable outlook;

  -- Cumulative (Tier 1) preference shares remain at Baa2; remain
     on review for possible downgrade pending the completion of
     the review on Bank of Scotland's BFSR;

  -- Cumulative junior subordinated debt remains at Baa1; remains
     on review for downgrade pending the completion of the review
     on Bank of Scotland's BFSR.

HBOS:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Baa2; stable outlook;

  -- Cumulative junior subordinated debt downgraded to Baa2 from
     Baa1; remains on review for downgrade pending completion of
     the review of Bank of Scotland's BFSR.

Scottish Widows/Clerical Medical Finance:

  -- Subordinated debt rating of Scottish Widows plc (SW)
     downgraded to Baa1 from A3; remains on review for further
     possible downgrade pending completion of the review of
     Lloyd's BFSR;

  -- Subordinated debt ratings of Clerical Medical Finance plc
     (guaranteed by Clerical Investment Group Ltd) remain at Baa1;
     remains on review for further possible downgrade pending
     completion of the review of Bank of Scotland's BFSR.

              Rationale for the Preference Share and
                   Junior Sub Debt Downgrades

The B3 ratings of the non-cumulative preference shares is based on
an expected-loss approach and reflects the rating agency's
assumption of a high probability of the omission of coupons and
high loss severity over a two-year period.  The rating agency's
assumption is that EU requirements could lead to the banks
exercising their right for optional deferral on these instruments.
The outlook for the securities is stable, as it deems a longer
period of omission to be unlikely.  Moody's has assigned the same
rating to the securities of both the operating companies and the
holding companies, as it deems the risk of omission to be similar.

The cumulative preference shares (with cumulative deferral and
non-cash settlement through ACSM), have been downgraded by 1 notch
from their current rating (i.e. 3 notches below the adjusted BCA,
which includes parental support where available).  These
securities have largely the same features as junior subordinated
debt on a going concern basis, but have a preferred claim in
liquidation.  Under a going concern assumption, the expected loss
for investors in these cumulative instruments should therefore be
clearly lower than for the non-cumulative preference shares.
However, given their categorization as Tier 1 instruments by the
regulators Moody's are concerned that the risk of coupon deferral
is higher than for junior subordinated debt.

Moody's previously assigned a lower rating to the preference
shares with voting rights due to the additional risk of loss to
investors from nationalization.  As the rating agency has stated
before, the announcement by both banks of their participation in
the UK government's Asset Protection Scheme and the planned
issuance of B shares to the government, confirms Moody's core
assumption that the UK government will try to avoid full
nationalization of these banks, although this remains a low
probability/high severity scenario.  Given the downgrade of all
non-cumulative preference shares at the banks to the low single-B
level, and the fact that the Banking Act 2009 facilitates the
absorption of losses by all capital instruments in a restructuring
of a bank, the possibility of nationalization is also incorporated
in the current ratings.

Moody's downgrade of the junior subordinated debt instruments by
one notch from their current rating (i.e. now 2 notches below the
adjusted Baseline Credit Assessment) -- and therefore 1 notch
lower than dated subordinated debt - reflects their junior
priority of claim to dated subordinated debt and the optional
deferral feature.  Bank of Scotland plc's junior subordinated debt
has remained at Baa1 (on review for downgrade) as the rating
agency has aligned Bank of Scotland plc's debt ratings with those
of Lloyds TSB Bank, given the progressing integration between the
two banks.

Following the decision to review for possible downgrade Lloyds
TSB's BFSR, Lloyd TSB's A3 dated subordinated debt is now also on
review for possible downgrade.  In line with its approach to the
rating of Bank of Scotland's junior subordinated debt ratings (see
above), Moody's has also left Bank of Scotland plc's dated
subordinated debt at Baa1 (on review for downgrade), and will
align the rating with that of Lloyds TSB Bank plc.

The rating actions on the subordinated debt of SW and CMF reflect
the alignment of the insurance operations' subordinated ratings
and outlooks to the subordinated ratings and outlooks of the
corresponding banking operations within Lloyds.  Moody's believes
that Lloyds's capital base is increasingly managed centrally.  The
revised ratings and outlooks on the insurance subsidiaries
therefore reflect Moody's view that the insurance subordinated
ratings of SW and CMF are constrained by the ratings on the
subordinated debt of the correspondent parent banking companies
within Lloyds.

         Review for Possible Downgrade of Lloyds TSB BFSR

The review for possible downgrade of Lloyds TSB Bank plc's C+ BFSR
reflects the rating agency's concerns about a further weakening in
the group's financial performance.  The BFSR's downgrade to C+
from B+ in February 2009 incorporated the adverse effects on
Lloyds of its acquisition of HBOS and Moody's expectation of a
significantly higher level of provisions.  However, the review
will also take into consideration These:

  i) the period of time it could take Lloyds to return to
     profitability, given further deterioration in the UK economy,
     pressure on margins and restructuring costs;

ii) the impact on profitability and capital of the performance of
     key asset classes, according to Moody's updated assumptions,
     including a peak-to-trough house price decline of 40% for its
     base scenario in the UK;

iii) as is the case for Bank of Scotland, the review will take
     into account the benefit of the additional GBP15.6 billion
     capital for the group from government-owned B shares and the
     APS, which is expected to provide 90% insurance for
     GBP260 billion of assets after a first loss of GBP25 billion;
     and

iv) in addition, the review will incorporate refinements to
     Moody's approach to rating banks in this environment as
     discussed in a Special Comment entitled "Calibrating Bank
     Ratings in the Context of the Global Financial Crisis", which
     was published in February 2009.  Moody's explains that,
     although the BFSR framework remains unchanged, the weight
     attached to certain rating considerations, particularly
     capital and future earnings prospects, has been increased to
     better reflect the impact of the ongoing crisis.

Moody's expects to complete the review within the next few weeks
at the same time as completing the review of Bank of Scotland's
BFSR.

          Previous Rating Actions and Methodologies Used

In its last rating action from April 3, 2009, Moody's factored in
the general lack of systemic support expected for hybrid
securities in the UK, and changed the anchor rating from the
banks' long-term debt and deposit ratings to the BCA in These
rating actions:

  -- Royal Bank of Scotland: subordinated debt rating downgraded
     to Baa3 from A1, and hybrid debt to Ba1 from A2, except the
     National Westminster Ba1 rated non-cumulative preference
     shares with voting rights, which were downgraded to Ba2;

  -- Royal Bank of Scotland Group: subordinated debt rating
     downgraded to Ba1 from A2, and hybrid debt to Ba2 from A3,
     except the Ba2 rated non-cumulative preference shares with
     voting rights, which were downgraded to Ba3;

  -- Lloyds TSB Bank: subordinated debt rating downgraded to A3
     from A1 (negative outlook), and hybrid debt to Baa1 from A2
     (remains on review for possible downgrade);

  -- Lloyds Banking Group: subordinated debt rating downgraded to
     Baa1 from A2 (negative outlook), and hybrid debt to Baa2 from
     A3 (remains on review for possible downgrade);

  -- Bank of Scotland: subordinated debt rating downgraded to Baa1
     from A1, and hybrid debt to Baa2 from A2;

  -- HBOS: subordinated debt rating downgraded to Baa1 from A2,
     and hybrid debt to Baa2 from A3.

The last rating actions on the above insurance subordinated debt
ratings were on April 7, 2009:

  -- Scottish Widows plc: subordinated debt to A3 from A2

  -- Clerical Medical Finance plc: subordinated debt to Baa1 from
     A3

The last rating action on Lloyds TSB Bank plc's BFSR was on
February 16, 2009, when it was downgraded to C+ (negative outlook)
from B+ (on review for possible downgrade).

All the banks are headquartered in the United Kingdom.

Downgrades:

Issuer: Bank of Scotland Capital Funding L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: Bank of Scotland plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to
     Baa2 from Baa1

  -- Preference Stock Preference Stock, Downgraded to B3 from Baa2

Issuer: HBOS CAPITAL FUNDING NO. 3 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Capital Funding No. 1 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Capital Funding No. 4 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Group EURFinance (Jersey)

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Group Sterling Finance L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to
     Baa2 from Baa1

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Baa2 from Baa1

Issuer: Halifax plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3
     from Baa1

Issuer: Leeds Permanent Building Society

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3
     from Baa1

Issuer: Lloyds Banking Group plc

  -- Preference Stock Preference Stock, Downgraded to B3 from Baa2

Issuer: Lloyds TSB Bank Plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to a
     range of Baa2 to Baa1 from a range of Baa1 to A3

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Baa1 from A3

  -- Preferred Stock Preferred Stock, Downgraded to Baa2 from Baa1

Issuer: Lloyds TSB Capital 1 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa1

Issuer: Lloyds TSB Capital 2 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa1

Issuer: National Westminster Bank PLC

  -- Junior Subordinated Conv./Exch. Bond/Debenture, Downgraded to
     Ba1 from Baa3

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to Ba1
     from Baa3

  -- Multiple Seniority Shelf, Downgraded to a range of (P)B3 to
     (P)Ba1 from a range of (P)Ba1 to (P)Baa3

  -- Preference Stock Preference Stock, Downgraded to B3 from a
     range of Ba2 to Ba1

  -- Subordinate Regular Bond/Debenture, Downgraded to Ba1 from
     Baa3

Issuer: RBS Capital Trust A

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3
     from Ba3

Issuer: RBS Capital Trust B

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust C

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust D

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust I

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust II

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust III

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust IV

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: Royal Bank of Scotland Group plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to a
     range of Ba3 to Ba2 from a range of Ba2 to Ba1

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Ba2 from Ba1

  -- Multiple Seniority Shelf, Downgraded to a range of (P)B3 to
     (P)Ba2 from a range of (P)Ba2 to (P)Ba1

  -- Preference Stock Preference Stock, Downgraded to B3 from a
     range of Ba3 to Ba2

  -- Preferred Stock Preferred Stock, Downgraded to a range of B3
     to Ba3 from a range of Ba3 to Ba2

Issuer: Royal Bank of Scotland plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to Ba1
     from Baa3

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Ba1 from Baa3

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Ba1 from Baa3

Issuer: Scottish Widows plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to
     Baa1 from A3

On Review for Possible Downgrade:

Issuer: Cheltenham & Gloucester plc

  -- Bank Financial Strength Rating, Placed on Review for Possible
     Downgrade, currently C+

  -- Multiple Seniority Medium-Term Note Program, Placed on Review
     for Possible Downgrade, currently A3

Issuer: Lloyds TSB Bank Plc

  -- Bank Financial Strength Rating, Placed on Review for Possible
     Downgrade, currently C+

  -- Subordinate Regular Bond/Debenture, Placed on Review for
     Possible Downgrade, currently A3

Issuer: Royal Bank of Scotland Group plc

  -- Preference Stock Preference Stock, Placed on Review for
     Possible Downgrade, currently Ba3

Outlook Actions:

Issuer: Cheltenham & Gloucester plc

  -- Outlook, Changed To Rating Under Review From Stable


LUCITE INT'L: S&P Withdraws 'B' Long-Term Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it withdrew its 'B'
long-term corporate credit ratings on U.K.-based monomer producer
and distributor Lucite International Group Holdings Ltd. at the
company's request.

This follows the completion on May 28, 2009, of the takeover by
Mitsubishi Rayon Co. Ltd. in a US$1.6 billion cash offer,
including the prepayment of Lucite's financial debt.  At the time
of the rating withdrawal, Lucite was on CreditWatch with positive
implications, where it was placed on Nov. 12, 2008.  In S&P's
opinion, sufficient information will not be provided to evaluate
the business profile, financial structure, and corporate structure
of the combined entity to determine the extent of the upward
potential of the rating, so the CreditWatch will not be resolved.


PIERSE CONTRACTING: In Liquidation, Zolfo Cooper Appointed
----------------------------------------------------------
Sophie Griffiths at building.co.uk reports that Pierse Contracting
Ltd has gone into liquidation.

building.co.uk says the company was placed into liquidation
following a meeting of creditors on June 1.  The liquidation is
being handled by administrator Zolfo Cooper, building.co.uk
relates.

building.co.uk discloses the company, which has total assets of
about GBP40 million, generated a turnover of over GBP28 million in
its accounts filed up to April 30, 2008.

According to Simon Binns of Crain's Manchester Business, the
company failed to pay its 60 staff in April and had been reported
for slow payments to trade creditors on several occasions.  Citing
a report in The Sunday Business Post in Ireland, Crain's states
that staff were given redundancy notices on May 11 and around
GBP120,000 is still lowed in unpaid wages.

Based in Cheshire, Pierse Contracting Ltd is a subsidiary of The
Pierse Group -- http://www.pierse.ie/-- a property developer and
building and civil engineering contractor operating in Ireland.


ROYAL BANK: Moody's Cuts Rating on Tier 1 Preference Shares to B3
-----------------------------------------------------------------
Moody's Investors Service has downgraded the hybrid instruments
issued by the two large banking groups in the UK in which the
government has shareholdings: Royal Bank of Scotland Group and
Lloyds Banking Group.  In addition, Lloyds TSB Bank plc's C+ BFSR
has been placed on review for possible downgrade, reflecting the
rating agency's concerns about a further weakening in the group's
financial performance.

There has been no change to the senior debt of either group (Aa3
for Royal Bank of Scotland plc, and Aa3 for Lloyds TSB Bank plc),
or the Aaa government-guaranteed debt issued by the banks.

Elisabeth Rudman, Senior Credit Officer at Moody's Investors
Service, commented that "Moody's wider notching of the hybrid
instruments from the banks' Baseline Credit Assessment, was
prompted primarily by These two concerns: firstly, the fact that
the banks are likely to remain loss-making in the near-to-medium
term increases the possibility of coupons being missed.  And
secondly, Moody's assessment of the probability that EU approval
for the support package received by these banks could be
contingent upon the suspension of coupons on these instruments.
This has been seen in other cases where state aid was approved by
the EU, and Moody's considers this could apply to optional
deferral as well as mandatory deferral triggers."

Downgrade of Preference Shares and Junior Sub Debt of Rbs And
Lloyds

The instruments of These banks have been affected by this action:

Royal Bank of Scotland plc:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Ba1 (the Ba2 rated National Westminster non-cumulative
     preference shares with voting rights downgraded to B3);
     stable outlook;

  -- Cumulative junior subordinated debt downgraded to Ba1 from
     Baa3; remains on review for further possible downgrade
     pending the completion of the review on the bank's C  --
     BFSR.

Royal Bank of Scotland Group:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Ba2 and from Ba3 (for the instruments with voting
     rights); stable outlook;

  -- Cumulative (Tier 1) preference shares downgraded to Ba3 from
     Ba2; remain on review for downgrade pending the completion of
     the review on RBS plc's BFSR

  -- Cumulative junior subordinated debt downgraded to Ba1 from
     Baa3; remains on review for downgrade pending the completion
     of the review on RBS plc's BFSR.

Lloyds TSB Bank:

  -- Non-cumulative (Tier 1) preferred securities downgraded to B3
     from Baa1; stable outlook;

  -- Cumulative (Tier 1) preferred securities downgraded to Baa2
     from Baa1; remain on review for possible downgrade pending
     the completion of the review on Lloyds's BFSR;

  -- Cumulative junior subordinated debt downgraded to Baa1 from
     A3; remains on review for downgrade pending the completion of
     the review on Lloyds's BFSR.

Lloyds Banking Group:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Baa2; stable outlook;

Bank of Scotland:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Baa2; stable outlook;

  -- Cumulative (Tier 1) preference shares remain at Baa2; remain
     on review for possible downgrade pending the completion of
     the review on Bank of Scotland's BFSR;

  -- Cumulative junior subordinated debt remains at Baa1; remains
     on review for downgrade pending the completion of the review
     on Bank of Scotland's BFSR.

HBOS:

  -- Non-cumulative (Tier 1) preference shares downgraded to B3
     from Baa2; stable outlook;

  -- Cumulative junior subordinated debt downgraded to Baa2 from
     Baa1; remains on review for downgrade pending completion of
     the review of Bank of Scotland's BFSR.

Scottish Widows/Clerical Medical Finance:

  -- Subordinated debt rating of Scottish Widows plc (SW)
     downgraded to Baa1 from A3; remains on review for further
     possible downgrade pending completion of the review of
     Lloyd's BFSR;

  -- Subordinated debt ratings of Clerical Medical Finance plc
     (guaranteed by Clerical Investment Group Ltd) remain at Baa1;
     remains on review for further possible downgrade pending
     completion of the review of Bank of Scotland's BFSR.

              Rationale for the Preference Share and
                   Junior Sub Debt Downgrades

The B3 ratings of the non-cumulative preference shares is based on
an expected-loss approach and reflects the rating agency's
assumption of a high probability of the omission of coupons and
high loss severity over a two-year period.  The rating agency's
assumption is that EU requirements could lead to the banks
exercising their right for optional deferral on these instruments.
The outlook for the securities is stable, as it deems a longer
period of omission to be unlikely.  Moody's has assigned the same
rating to the securities of both the operating companies and the
holding companies, as it deems the risk of omission to be similar.

The cumulative preference shares (with cumulative deferral and
non-cash settlement through ACSM), have been downgraded by 1 notch
from their current rating (i.e. 3 notches below the adjusted BCA,
which includes parental support where available).  These
securities have largely the same features as junior subordinated
debt on a going concern basis, but have a preferred claim in
liquidation.  Under a going concern assumption, the expected loss
for investors in these cumulative instruments should therefore be
clearly lower than for the non-cumulative preference shares.
However, given their categorization as Tier 1 instruments by the
regulators Moody's are concerned that the risk of coupon deferral
is higher than for junior subordinated debt.

Moody's previously assigned a lower rating to the preference
shares with voting rights due to the additional risk of loss to
investors from nationalization.  As the rating agency has stated
before, the announcement by both banks of their participation in
the UK government's Asset Protection Scheme and the planned
issuance of B shares to the government, confirms Moody's core
assumption that the UK government will try to avoid full
nationalization of these banks, although this remains a low
probability/high severity scenario.  Given the downgrade of all
non-cumulative preference shares at the banks to the low single-B
level, and the fact that the Banking Act 2009 facilitates the
absorption of losses by all capital instruments in a restructuring
of a bank, the possibility of nationalization is also incorporated
in the current ratings.

Moody's downgrade of the junior subordinated debt instruments by
one notch from their current rating (i.e. now 2 notches below the
adjusted Baseline Credit Assessment) -- and therefore 1 notch
lower than dated subordinated debt - reflects their junior
priority of claim to dated subordinated debt and the optional
deferral feature.  Bank of Scotland plc's junior subordinated debt
has remained at Baa1 (on review for downgrade) as the rating
agency has aligned Bank of Scotland plc's debt ratings with those
of Lloyds TSB Bank, given the progressing integration between the
two banks.

Following the decision to review for possible downgrade Lloyds
TSB's BFSR, Lloyd TSB's A3 dated subordinated debt is now also on
review for possible downgrade.  In line with its approach to the
rating of Bank of Scotland's junior subordinated debt ratings (see
above), Moody's has also left Bank of Scotland plc's dated
subordinated debt at Baa1 (on review for downgrade), and will
align the rating with that of Lloyds TSB Bank plc.

The rating actions on the subordinated debt of SW and CMF reflect
the alignment of the insurance operations' subordinated ratings
and outlooks to the subordinated ratings and outlooks of the
corresponding banking operations within Lloyds.  Moody's believes
that Lloyds's capital base is increasingly managed centrally.  The
revised ratings and outlooks on the insurance subsidiaries
therefore reflect Moody's view that the insurance subordinated
ratings of SW and CMF are constrained by the ratings on the
subordinated debt of the correspondent parent banking companies
within Lloyds.

         Review for Possible Downgrade of Lloyds TSB BFSR

The review for possible downgrade of Lloyds TSB Bank plc's C+ BFSR
reflects the rating agency's concerns about a further weakening in
the group's financial performance.  The BFSR's downgrade to C+
from B+ in February 2009 incorporated the adverse effects on
Lloyds of its acquisition of HBOS and Moody's expectation of a
significantly higher level of provisions.  However, the review
will also take into consideration These:

  i) the period of time it could take Lloyds to return to
     profitability, given further deterioration in the UK economy,
     pressure on margins and restructuring costs;

ii) the impact on profitability and capital of the performance of
     key asset classes, according to Moody's updated assumptions,
     including a peak-to-trough house price decline of 40% for its
     base scenario in the UK;

iii) as is the case for Bank of Scotland, the review will take
     into account the benefit of the additional GBP15.6 billion
     capital for the group from government-owned B shares and the
     APS, which is expected to provide 90% insurance for
     GBP260 billion of assets after a first loss of GBP25 billion;
     and

iv) in addition, the review will incorporate refinements to
     Moody's approach to rating banks in this environment as
     discussed in a Special Comment entitled "Calibrating Bank
     Ratings in the Context of the Global Financial Crisis", which
     was published in February 2009.  Moody's explains that,
     although the BFSR framework remains unchanged, the weight
     attached to certain rating considerations, particularly
     capital and future earnings prospects, has been increased to
     better reflect the impact of the ongoing crisis.

Moody's expects to complete the review within the next few weeks
at the same time as completing the review of Bank of Scotland's
BFSR.

          Previous Rating Actions and Methodologies Used

In its last rating action from April 3, 2009, Moody's factored in
the general lack of systemic support expected for hybrid
securities in the UK, and changed the anchor rating from the
banks' long-term debt and deposit ratings to the BCA in These
rating actions:

  -- Royal Bank of Scotland: subordinated debt rating downgraded
     to Baa3 from A1, and hybrid debt to Ba1 from A2, except the
     National Westminster Ba1 rated non-cumulative preference
     shares with voting rights, which were downgraded to Ba2;

  -- Royal Bank of Scotland Group: subordinated debt rating
     downgraded to Ba1 from A2, and hybrid debt to Ba2 from A3,
     except the Ba2 rated non-cumulative preference shares with
     voting rights, which were downgraded to Ba3;

  -- Lloyds TSB Bank: subordinated debt rating downgraded to A3
     from A1 (negative outlook), and hybrid debt to Baa1 from A2
     (remains on review for possible downgrade);

  -- Lloyds Banking Group: subordinated debt rating downgraded to
     Baa1 from A2 (negative outlook), and hybrid debt to Baa2 from
     A3 (remains on review for possible downgrade);

  -- Bank of Scotland: subordinated debt rating downgraded to Baa1
     from A1, and hybrid debt to Baa2 from A2;

  -- HBOS: subordinated debt rating downgraded to Baa1 from A2,
     and hybrid debt to Baa2 from A3.

The last rating actions on the above insurance subordinated debt
ratings were on April 7, 2009:

  -- Scottish Widows plc: subordinated debt to A3 from A2

  -- Clerical Medical Finance plc: subordinated debt to Baa1 from
     A3

The last rating action on Lloyds TSB Bank plc's BFSR was on
February 16, 2009, when it was downgraded to C+ (negative outlook)
from B+ (on review for possible downgrade).

All the banks are headquartered in the United Kingdom.

Downgrades:

Issuer: Bank of Scotland Capital Funding L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: Bank of Scotland plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to
     Baa2 from Baa1

  -- Preference Stock Preference Stock, Downgraded to B3 from Baa2

Issuer: HBOS CAPITAL FUNDING NO. 3 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Capital Funding No. 1 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Capital Funding No. 4 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Group EURFinance (Jersey)

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS Group Sterling Finance L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa2

Issuer: HBOS plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to
     Baa2 from Baa1

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Baa2 from Baa1

Issuer: Halifax plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3
     from Baa1

Issuer: Leeds Permanent Building Society

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3
     from Baa1

Issuer: Lloyds Banking Group plc

  -- Preference Stock Preference Stock, Downgraded to B3 from Baa2

Issuer: Lloyds TSB Bank Plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to a
     range of Baa2 to Baa1 from a range of Baa1 to A3

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Baa1 from A3

  -- Preferred Stock Preferred Stock, Downgraded to Baa2 from Baa1

Issuer: Lloyds TSB Capital 1 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa1

Issuer: Lloyds TSB Capital 2 L.P.

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Baa1

Issuer: National Westminster Bank PLC

  -- Junior Subordinated Conv./Exch. Bond/Debenture, Downgraded to
     Ba1 from Baa3

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to Ba1
     from Baa3

  -- Multiple Seniority Shelf, Downgraded to a range of (P)B3 to
     (P)Ba1 from a range of (P)Ba1 to (P)Baa3

  -- Preference Stock Preference Stock, Downgraded to B3 from a
     range of Ba2 to Ba1

  -- Subordinate Regular Bond/Debenture, Downgraded to Ba1 from
     Baa3

Issuer: RBS Capital Trust A

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B3
     from Ba3

Issuer: RBS Capital Trust B

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust C

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust D

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust I

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust II

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust III

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: RBS Capital Trust IV

  -- Preferred Stock Preferred Stock, Downgraded to B3 from Ba3

Issuer: Royal Bank of Scotland Group plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to a
     range of Ba3 to Ba2 from a range of Ba2 to Ba1

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Ba2 from Ba1

  -- Multiple Seniority Shelf, Downgraded to a range of (P)B3 to
     (P)Ba2 from a range of (P)Ba2 to (P)Ba1

  -- Preference Stock Preference Stock, Downgraded to B3 from a
     range of Ba3 to Ba2

  -- Preferred Stock Preferred Stock, Downgraded to a range of B3
     to Ba3 from a range of Ba3 to Ba2

Issuer: Royal Bank of Scotland plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to Ba1
     from Baa3

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Ba1 from Baa3

  -- Multiple Seniority Medium-Term Note Program, Downgraded to
     Ba1 from Baa3

Issuer: Scottish Widows plc

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to
     Baa1 from A3

On Review for Possible Downgrade:

Issuer: Cheltenham & Gloucester plc

  -- Bank Financial Strength Rating, Placed on Review for Possible
     Downgrade, currently C+

  -- Multiple Seniority Medium-Term Note Program, Placed on Review
     for Possible Downgrade, currently A3

Issuer: Lloyds TSB Bank Plc

  -- Bank Financial Strength Rating, Placed on Review for Possible
     Downgrade, currently C+

  -- Subordinate Regular Bond/Debenture, Placed on Review for
     Possible Downgrade, currently A3

Issuer: Royal Bank of Scotland Group plc

  -- Preference Stock Preference Stock, Placed on Review for
     Possible Downgrade, currently Ba3

Outlook Actions:

Issuer: Cheltenham & Gloucester plc

  -- Outlook, Changed To Rating Under Review From Stable


SMARTFUNDIT.COM LIMITED: In Administration, Vantis Appointed
------------------------------------------------------------
Jason T. Hesse at Leasing Life reports that Smartfundit.com
Limited has gone into administration.

Peter Wastell and Michael Young of Vantis appointed as joint
administrators of the company, founded by Suki Gallagher with
business partner Justin Floyd, the report discloses.
Ms. Gallagher left the company in May, the report states.

The report recalls just last December, Smartfundit.com received a
GBP3.5 million (EUR4 million) venture capital injection
from Baytech Venture Capital intended to "accelerate the company's
global expansion".

The report notes Smartfundit.com's latest accounts, for the year
ending December 31 2008, showed that the company grew turnover to
GBP4.4 million, up 83 percent on the previous year's GBP2.4
million, but still sustained a pre-tax loss of GBP349,878.

According to the report, Smartfundit.com's parent company,
Corporate Computer Lease Limited, has also gone into
administration.  The report relates Smarfundit.com said on its Web
site "The administrators are seeking to find buyers for the going
concerns of both of the companies, and are currently marketing the
businesses and assets for sale."

Smartfundit.com Limited -- http://www.smartfundit.com/-- is the
world's first online business finance marketplace.
Smartfundit.com connects businesses with funders to provide
easier, transparent and de-risked access to critical business
financing through an open online market.  Launched in 2006,
Smartfundit.com is a privately owned company with major investors
including BayTech Venture Capital.  Smartfundit.com has
headquarters in Surrey, England, UK and an office in San
Francisco, California, USA.


TAURUS CMBS: Fitch Downgrades Rating on Class C Notes to 'B'
------------------------------------------------------------
Fitch Ratings has downgraded Taurus CMBS (UK) 2006-2 plc's junior
notes and affirmed the rest.  The Outlooks on Classes A to C have
been revised to Negative from Stable.

  -- GBP282.4 million class A due April 2024 (XS0271522103)
     affirmed at 'AAA'; Outlook revised to Negative from Stable

  -- GBP0.05 million class X due April 2024 (XS0271525031)
     affirmed at 'AAA'; Outlook Stable

  -- GBP33.8 million class B due April 2024 (XS0271523259)
     downgraded to 'A' from 'AA'; Outlook revised to Negative from
     Stable

  -- GBP30.3 million class C due April 2024(XS0271523846)
     downgraded to 'B' from 'A'; Outlook revised to Negative from
     Stable

  -- GBP7.0 million class D due April 2024 (XS0271524653)
     downgraded to 'CCC' from 'BBB'; Recovery Rating 'RR6'
     assigned

The rating actions reflect the weakened creditworthiness of all
the loans securitized in this transaction as a result of
deteriorating conditions in the UK commercial property market.

Following a breach of the whole loan interest coverage ratio
covenant and failure of the borrower to meet its service charge
obligations, the Times Square whole loan (including the Times
Square A-note, 10.6% of the portfolio) was transferred to special
servicing on March 23, 2009.  Following failed attempts to contact
the borrower, the special servicer accelerated the loan on 22
April 2009.  The special servicer announced on May 26, 2009 that,
according to a valuation procured by it, the loan's collateral
value had fallen to GBP25 million on that date from GBP54.5
million at closing.  The loan is secured by the secondary quality
Times Square Shopping Centre and adjacent Times Tower office
building located in Sutton, Surrey.  Based on this new valuation,
the A-note LTV is currently 150%, implying a market value decline
of over 50%.  However, with A-note ICR at 1.25x and 15 years until
legal final maturity of the notes in 2024, there is no immediate
pressure on the special servicer to liquidate loan security.  With
the whole loan subject to acceleration, and the B-note now fully
subordinated to the A-note, there may be some scope to amortize
the A-note with excess cash.  Nonetheless, there is a heightened
risk of default on the class D notes, which is reflected in the
rating action.

The loan portfolio has a reported weighted-average loan-to-value
ratio of 46.6%, as of the April 2009 interest payment date.  This
compares to an estimated WA Fitch LTV of 63%, reflecting an
overall MVD of 24%.  The reported figures are calculated for the
most part on valuations carried out in 2005 and 2006 and while
four of the loans do feature LTV default covenants, only the
Mapeley STEPS loan borrower is obliged to procure periodic
valuations; in this case, the current reported LTV of 35.2% is
well below the covenanted 75%.

Taurus CMBS is a securitization of eight commercial mortgage loans
originated in the UK by Merrill Lynch International Bank Limited
(rated 'A+'/Outlook XX/'F1+'), which closed in November 2006.  Two
loans have prepaid since closing, leaving the loan pool with a
current balance of GBP353,645,324.

Fitch will continue to monitor the performance of the transaction.


* S&P Takes Credit Rating Actions on Eight European CDO Tranches
----------------------------------------------------------------
Standard & Poor's Ratings Services took credit rating actions on
eight European synthetic collateralized debt obligation tranches
following recent rating changes to the underlying collateral or a
dependent party in those transactions.

Specifically, S&P:

  -- lowered its ratings on two tranches;

  -- lowered and removed from CreditWatch negative its rating on
     one tranche;

  -- lowered and kept on CreditWatch negative its ratings on two
     tranches;

  -- lowered and placed on CreditWatch negative its rating on one
     tranche; and

  -- placed on CreditWatch negative its ratings on two tranches.

                          Ratings List

                        Ratings Lowered

                        Elva Funding PLC
        US$9.996 Million Secured Variable Interest Rate Notes
                           Series 2004-8

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

                        MF Capital II Ltd.
                  EUR32.5 Million Promissory Notes

                             Rating
                             ------
                   To                    From
                   --                    ----
                   CCC                   CCC+

       Rating Lowered and Removed From Creditwatch Negative

                       Sceptre Capital B.V.
    EUR25 Million Floating-Rate Repackaged "PowerTranche" Notes
                          Series 2006-6

                          Rating
                          ------
                To                    From
                --                    ----
                CCC+                  BB/Watch Neg

         Ratings Lowered and Kept On Creditwatch Negative

                     Prelude Europe CDO Ltd.
AUD40 Million Credit-Linked Notes Series 2005-4 (Credit Sail)

                             Rating
                             ------
                   To                    From
                   --                    ----
                   BBp/Watch Neg         BB+p/Watch Neg

                       Saphir Finance PLC
        EUR254.5 Million Floating-Rate Notes Series 2008-2

                             Rating
                             ------
                   To                    From
                   --                    ----
                   BB-/Watch Neg         BBB-/Watch Neg

       Rating Lowered and Placed on Creditwatch Negative

                           Aria CDO I
      EUR31.5 Million, CHF58.4 Million, GBP0.4 Million, And
           US$17.4 Million Floating-Rate Secured Notes
          (Issued by Aria CDO I (Cayman Islands) Ltd.)

                             Rating
                             ------
                   To                    From
                   --                    ----
                   BB/Watch Neg          BBB-

             Ratings Placed on Creditwatch Negative

                         Eirles Two Ltd.
         EUR10 Million Floating-Rate Secured Notes Series 44

                             Rating
                             ------
                   To                    From
                   --                    ----
                   A-/Watch Neg          A-

                       STARTS (Cayman) Ltd.
$145 Million Leveraged Super Senior Credit-Linked Fixed-Rate Notes
                          Series 2007-38

                             Rating
                             ------
                   To                    From
                   --                    ----
                   AAA/Watch Neg          AAA


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

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 * * *