TCREUR_Public/090612.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Friday, June 12, 2009, Vol. 10, No. 115

                            Headlines

A U S T R I A

B. KRUEGER: Claims Filing Deadline is June 22
ELEKTROTECHNIK MEIER: Claims Filing Deadline is June 22
H& S GWH-INSTALLATIONS: Creditors Must File Claims by June 19


G E O R G I A

* GEORGIA: Political Protest Blamed for Deepening Recession


G E R M A N Y

ARCANDOR AG: Metro Eyes Acquisition of Karstadt Chain
CONTINENTAL AG: S&P Puts 'BB' Rating on CreditWatch Negative
GENERAL MOTORS: Magna, Sberbank, to Pay US$139 Million for Opel
HEIDELBERGCEMENT AG: Raises US$312 Mln From Indocement Stake Sale
KLEOPATRA LUX 1: S&P Changes Outlook to Neg.; Affirms 'B-' Rating

* GERMANY: Cabinet Backs Landesbank Toxic-Asset Plan

H U N G A R Y

* HUNGARY: Recession Deepens as Export Demand Plunges


I R E L A N D

EUROMAX VI: S&P Puts 'BB' Rating on Class E Notes on Watch Neg.
SMURFIT KAPPA: Proposed Amendments Won't Move Fitch's 'BB' Rating


I T A L Y

EUROHOME MORTGAGES: S&P Lowers Rating on Class D Notes to 'B'


K A Z A K H S T A N

ENERGY GROWN: Creditors Must File Claims by June 26
KAZ STROY: Creditors Must File Claims by June 26
KAZAKHGOLD GROUP: Fitch Upgrades Issuer Default Rating to 'CC'
LTD SHERWOOD: Creditors Must File Claims by June 26
METALL MARKET: Creditors Must File Claims by June 26

PROJECT STROY: Creditors Must File Claims by June 26


K Y R G Y Z S T A N

TARIEL TRANSPORT: Creditors Must File Claims by July 10


L U X E M B O U R G

LEGG MASON: Moody's Cuts Ratings on US$ Money Fund to 'Ba/MR5'


R U S S I A

ALFA-STROY-INVEST LLC: Creditors Must File Claims by June 22
BRATSKIY AGGREGATE: Creditors Must File Claims by June 22
DELANCE LTD: Liquidity Pressures Prompt S&P to Junk Rating
KACHUGSKIY MANUFACTURING: Creditors Must File Claims by June 22
MEGAFON OAO: Fitch Changes Outlook on 'BB+' Rating to Positive

MOSKOMMERTSBANK: Fitch Says Redirection Procedure May Face Delays
STROY-OPTIMA LLC: Creditors Must File Claims by June 22
UC RUSAL: Creditors Extend Deadline on US$7.4 Bln Debt to July 28
VOST-SIB-UGOL OJSC: Creditors Must File Claims by June 22


S L O V E N I A

* SLOVENIA: Slips Into Recession, Bloomberg Survey Says


S P A I N

AVANZIT SA: Creditors to Take 12% Stake in Exchange for Debt
GC SABADELL: Moody's Assigns 'Ba2' Rating on EUR69.1 Mil. Notes


S W I T Z E R L A N D

COMTAX GMBH: Creditors Have Until June 24 to File Claims
FOSSIL GALLERY: Claims Filing Deadline is June 22
LIMACHER & PARTNER: Creditors Must File Claims by June 22
RWT ROUND: Claims Filing Deadline is June 22
UA-LESINVEST GMBH: Claims Filing Deadline is June 24

UBS AG: Swiss Government May Sell 9.3% Stake


U K R A I N E

ELIT LINE LLC: Creditors Must File Claims by June 19
INIST LLC: Court Starts Bankruptcy Supervision Procedure
SESA-TRADE DNEPROPETROVSK: Creditors Must File Claims by June 19


U N I T E D   K I N G D O M

BAA: Bondholders Put Forward Alternatives to UK's Special Regime
ITV PLC: Exchange Offer Won't Affect Fitch's 'BB-' Rating
ITV PLC: Proposed Exchange Offer Won't Affect S&P's 'BB-' Rating
KEYDATA INVESTMENT: Attracts More Than 30 Potential Buyers
KEYDATA INVESTMETNT: OPAL Offers Support to Administrators

MELROSE RESOURCES: Moody's Changes Outlook on 'B2' Rating to Neg.
SETANTA SPORTS: FT Says White Knight Found, ESPN Rules Out Bid
STAYTON COMMERCIAL: Goes Into Receivership
TATA STEEL: S&P Keeps 'BB' Rating on GBP3.67 Bil. Senior Debt

* DfT Says Metronet Failure Led to Taxpayer Loss of Up to GBP410MM

* BOOK REVIEW: Crafting Solutions for Troubled Businesses:


                         *********


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


B. KRUEGER: Claims Filing Deadline is June 22
---------------------------------------------
Creditors of B. Krueger Handel & Transport GmbH have until
June 22, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 6, 2009 at 11.00 a.m.

For further information, contact the company's administrator:

         Dr. Richard Proksch
         Am Heumarkt 9/I/11
         1030 Vienna
         Austria
         Tel: 713 46 51
         Fax: 713 84 35
         E-mail: proksch@eurojuris.at


ELEKTROTECHNIK MEIER: Claims Filing Deadline is June 22
-------------------------------------------------------
Creditors of Elektrotechnik Meier GmbH & Co KG will have until
June 22, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 7, 2009 at 9:00 a.m.

For further information, contact the company's administrator:

         Dr. Georg Mi
         Neutorgasse 47/I
         8010 Graz
         Austria
         Tel: 0316/820620
         Fax: 0316/820620-4
         E-mail: office@cgo-masseverwaltung.at


H& S GWH-INSTALLATIONS: Creditors Must File Claims by June 19
-------------------------------------------------------------
Creditors of H& S GWH-Installations-und Montagebau GmbH have until
June 19, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 2, 2009 at 2:25 p.m at:

         Civil Court of Graz
         Graz
         Austria

For further information, contact the company's administrator:

         Dr. Wolfgang Reinisch
         Hauptplatz 28
         8430 Leibnitz
         Austria
         Tel: 03452/83296
         Fax: 03452/83296-20
         E-mail: leibnitz@reinisch-wisiak.at


=============
G E O R G I A
=============


* GEORGIA: Political Protest Blamed for Deepening Recession
-----------------------------------------------------------
Helena Bedwell at Bloomberg News reports that Georgia's recession
is deepening at an "alarming" pace.

Bloomberg News relates Finance Minister Kakha Baindurashvili
blamed a two-month political protest that has interrupted trade
and spooked investors in the former Soviet state.

Bloomberg News recalls Prime Minister Nika Gilauri last week said
the US$12.8 billion economy entered recession in the last quarter
of 2008 and may shrink as much as 1.5 percent this year.


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


ARCANDOR AG: Metro Eyes Acquisition of Karstadt Chain
-----------------------------------------------------
BBC News reports that Metro AG, Germany's biggest retail group, is
interested in acquiring the assets of Arcandor AG.

According to BBC News, Metro plans to merge its Kaufhof chain of
stores with Arcandor's Karstadt and retain about 160 of the
combined 200 department stores.  Bloomberg News says Metro wants
to list the combined company on the stock market.

"I'm going to be daring and say that I believe there is a chance
to list such a company on the stock market, a company in which we
would remain a shareholder," BBC News quoted Eckhard Cordes,
Metro's chief executive officer, as saying in an interview on
Germany's ZDF television channel Tuesday night.  "We have a short
and long-term goal to create this new entity."

BBC News relates a spokesperson told the Handelsblatt newspaper,
the combined company could be sold after two years of
restructuring via a stock market listing.  Reuters reports Metro
on Wednesday denied a report that it was thinking about selling to
an Italian investor the combined department store group it hopes
to create with Arcandor's Karstadt chain.  Bloomberg News
discloses Mr. Cordes, who targeted at least four underperforming
Kaufhof stores for closure in March, said in the interview he
plans to offer a "fair price" for the Arcandor stores.

                              Talks

Arcandor, led by Chief Executive Officer Karl-Gerhard Eick, said
Wednesday afternoon that it halted talks with Metro, Bloomberg
News recounts.  Gerd Koslowski, a company spokesman, as cited by
Bloomberg News, said the retailer's department- store strategy
must be "completely re-evaluated during the insolvency process,"
at which point talks may restart with "possible partners,"
including Metro.

Citing a Die Welt report, Bloomberg News states Arcandor only
wants to sell 51 percent of Karstadt initially, and would like to
sell either the Quelle mail-order business in its entirety or take
an investor on board.  The report, which cited unidentified people
close to the retailer, said that administrator Klaus Hubert Goerg
plans to complete the insolvency proceedings within 12 months,
Bloomberg News notes.

                          Bankruptcy

On June 11, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Arcandor filed for bankruptcy
protection after the German government turned down its request for
loan guarantees.  Bloomberg News related the district court in
Arcandor's home town of Essen named lawyer Klaus Hubert Goerg as
insolvency administrator.  German Chancellor Angela Merkel, as
cited by Bloomberg News, said Arcandor's collapse was
"unavoidable" after investors and banks offered too little to save
the retailer.  Bloomberg News disclosed Euro am Sonntag said
Tuesday that the retailer won concessions worth about EUR750
million after overnight talks with suppliers, creditors, landlords
and shareholders.  BBC News reported Arcandor said its bankruptcy
filing covered German retailer Karstadt and its mail-order
businesses.  However, it added Thomas Cook would "remain
unaffected", BBC News stated.

Bloomberg News recalled the government on Monday rejected two
applications for help by Arcandor, which employs 43,000 people.
According to Bloomberg News, the retailer sought loan guarantees
of EUR650 million (US$904 million) from Germany's Economy Fund
program as debt came due this week.  It also sought a further
EUR437 million from a state-owned bank, Bloomberg News noted.

                        About Arcandor AG

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


CONTINENTAL AG: S&P Puts 'BB' Rating on CreditWatch Negative
------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB' long-
term corporate credit rating on German automotive supplier
Continental AG on CreditWatch with negative implications.  At the
same time, the 'B' short-term rating was affirmed.

"The CreditWatch placement reflects our increased concerns about
the influence that Continental's 49.99% owner Schaeffler has on
its strategy and credit quality, following Continental's
announcement that it is evaluating the feasibility of a
combination with Schaeffler," said Standard & Poor's credit
analyst Werner Staeblein.  "We believe that this process is
closely linked to Schaeffler's financial position.  Based on
public information, S&P understands that Schaeffler is pressured
by a high debt burden accumulated to acquire the Continental
stake."

Any solution with Continental could, in S&P's opinion, incorporate
actions aimed at alleviating the pressure on Schaeffler from this
debt burden to the detriment of Continental.

The structure of a Continental/Schaeffler combination will, in
S&P's view, have to reconcile a number of diverging interests,
notably those of the Schaeffler family as well as Schaeffler's and
Continental's major lending banks.  Continental's loan facility
for the acquisition of VDO includes a nonfinancial covenant that
acquisitions beyond a certain threshold would require the approval
of Continental's lending banks.  However, this does not mitigate
the risk that Continental's financial risk profile could
materially weaken subsequent to a closer tie-up of operations
between Continental and Schaeffler.

S&P is also concerned that the headroom under financial covenants
for Continental's EUR11.8 billion syndicated loan facility, which
forms the bulk of the group's debt, may become very tight in the
second quarter of 2009.  S&P believes that covenant headroom for
the remainder of 2009 is likewise narrow.

Continental's fully adjusted debt to EBITDA at year-end 2008 was
4.4x, while funds from operations to debt stood at 14%.

S&P aims to resolve the CreditWatch placement after reviewing
further information as it becomes available.  "This will take into
account the proposal on the new company structure, with a
particular focus on the financial profile resulting from a
potential merger/cooperation, as well as the effects of the
continued tough market conditions S&P expects in the automotive
sector in 2009 and 2010 and its impact on Continental's covenant
headroom," said Mr. Staeblein.


GENERAL MOTORS: Magna, Sberbank, to Pay US$139 Million for Opel
---------------------------------------------------------------
RIA Novosti reports that according to Russian business paper
Vedomosti, Canada's Magna International and Russia's Sberbank will
pay EUR100 million (US$139 million) upfront as part of the deal to
buy German auto maker Opel.

RIA Novosti, citing Vedomosti, discloses Magna and Sberbank will
provide another EUR400 million (US$556 million) as an interest-
free loan to Opel.  RIA Novosti relates the paper said the loan
will eventually be converted to Opel shares through convertible
bonds, with EUR50 million (US$69.5 million) due on January 1,
2011, an additional EUR50 million due on January 1, 2012 and the
remaining EUR300 million (US$417 million) due on January 1, 2013.
RIA Novosti discloses according to the paper, GM will also receive
EUR200 million (US$278 million) in Opel's preferred shares in
January 2011 and start receiving the German auto maker's 9%
dividend from 2013.  Opel will also pay GM EUR300 million (US$417
million) in cash in January 2018, RIA Novosti states citing the
paper.

The Wall Street Journal says according to a German Economy
Ministry document, Opel won't enter the U.S. car market if the
takeover by Magna goes ahead as planned.

On June 3, 2009, the Troubled Company Reporter-Europe, citing RIA
Novosti, reported that the German government and Canadian auto-
component maker Magna, backed by Russia's Sberbank and GAZ,
reached a deal early on May 30 that will see the consortium take
over Opel.  According to RIA Novosti, Magna will acquire a 20%
stake in Opel with Russia's state-owned Sberbank and car maker
GAZ, owned by billionaire Oleg Deripaska, taking a 35% slice to
make the consortium a majority shareholder.

                        About General Motors

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

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

As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009.  This compares with a reported net loss of US$3.3 billion
in the year-ago quarter.  As of March 31, 2009, GM had US$82.2
billion in total assets and US$US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.

On April 27, General Motors presented the U.S. Department of
Treasury with an updated plan as required by the loan agreement
signed by GM and the U.S. Treasury on December 31, 2008.  The plan
addresses the key restructuring targets required by the loan
agreement, including a number of the critical elements of the plan
that was submitted to the U.S. government on December 2, 2008.
Among these are: U.S. market competitiveness; fuel economy and
emissions; competitive labor cost; and restructuring of the
company's unsecured debt.  It also includes a timeline for
repayment of the Federal loans, and an analysis of the Company's
positive net present value.  The plan details the future reduction
of GM's vehicle brands and nameplates in the U.S., further
consolidation in its workforce and dealer network, accelerated
capacity actions and enhanced manufacturing competitiveness, while
maintaining GM's strong commitment to high-quality, fuel-efficient
vehicles and advanced propulsion technologies.  A full-text copy
of GM's viability plan presented in February 2009 is available at
http://researcharchives.com/t/s?39a4

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D. N.Y. Lead Case
No. 09-50026).  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts.  Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors'
restructuring officer.  GM is also represented by Jenner & Block
LLP and Honigman Miller Schwartz and Cohn LLP as counsels.
Cravath, Swaine, & Moore LLP is providing legal advice to the GM
Board of Directors.  GM's financial advisors are Morgan Stanley,
Evercore Partners and the Blackstone Group LLP.


HEIDELBERGCEMENT AG: Raises US$312 Mln From Indocement Stake Sale
-----------------------------------------------------------------
Naila Firdausi and Sarah Jones at Bloomberg News report that
HeidelbergCement AG has sold its 14 percent stake in Indonesia's
PT Indocement Tunggal Prakarsa.

Bloomberg News relates HeidelbergCement sold 520.5 million
Indocement shares at 6,000 rupiah apiece, a 17 percent premium to
the average six-month share price.  According to Bloomberg News,
HeidelbergCement raised 3.12 trillion rupiah (US$312 million) from
the disposal of the stake.  The German cement maker, which took
control of Indocement in 2001 in a transaction valued at US$300
million, will own 51 percent of the Indonesian company after the
sale, Bloomberg News discloses.

Bloomberg News says HeidelbergCement, which ran up debt in the
US$12 billion takeover of Hanson Plc, is planning to sell as much
as EUR2 billion (US$2.8 billion) of assets, cut costs and reduce
investment to retrieve cash.

                      About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG (FRA:HEI)  --
http://www.heidelbergcement.com/-- is a global producer of
cement, concrete and building materials.  The Company's core
activities include the production and distribution of cement and
aggregates, the two raw materials for concrete.  It is also
engaged in in the provision of such products as ready-mixed
concrete, as well as concrete products and elements.  It divides
its activities into four group areas: Europe-Central Asia, North
America, Asia-Australia-Africa-Mediterranean and Group Services.
It divides its products into three lines: cement, aggregates and
concrete and building products.  Its products include sand,
gravel, crushed stone, white cement, trass cement, masonry cement,
aquament and portland cement for hydraulic engineering, as well as
light, heavy and aerated concrete building blocks, pavers,
prefabricated ceilings and walls, prefabricated cellar units and
prefabricated sewage works units, among others.  In 2007, the
Company took over Hanson Group.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on March 10,
2009, Standard & Poor's Ratings Services said that it lowered its
long-term corporate credit rating on HeidelbergCement AG to 'B-'
from 'B+'.  The 'B' short-term corporate credit rating was
affirmed.  At the same time, the senior unsecured debt ratings
were lowered to 'CCC+' from 'B'.  All ratings remain on
CreditWatch negative where they were placed on Oct. 24, 2008.

On Feb. 11, 2009, the TCR-Europe reported that Moody's Investors
Service downgraded HeidelbergCement's corporate family and issue
ratings to B1 from Ba3.  Moody's said the ratings were put on
review for further downgrade.


KLEOPATRA LUX 1: S&P Changes Outlook to Neg.; Affirms 'B-' Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Germany-based packaging manufacturer Kleopatra Lux 1
S.a.r.l (known as Kloeckner Pentaplast) to negative from stable.
At the same time, S&P affirmed the 'B-' long-term corporate credit
rating.

"The outlook revision reflects our opinion that the company will
have difficulty complying with a financial covenant on its bank
facilities for the first quarter of fiscal 2010 ending Dec. 31,
2009, or in 2010 as it becomes more restrictive," said Standard &
Poor's credit analyst Izabela Listowska.  "Furthermore, EBITDA for
covenant calculation purposes will decline significantly when the
book gains from last year's debt buybacks -- which currently
inflate EBITDA -- phase out toward the end of 2009."

To remain covenant compliant, all other things being equal, the
company will have to gradually improve its earnings, which could
be difficult in a context of difficult markets.  In addition,
given Kloeckner's highly leveraged capital structure and in the
current market environment, there is a general risk of a debt
restructuring.

The rating continues to reflect Kloeckner's highly leveraged
financial profile and its exposure to falling demand and volatile
raw material prices.  It also reflects Kloeckner's high dependence
on calendered rigid polyvinyl chloride film and the risk of
material substitution.  Furthermore, Kloeckner's capital structure
is highly leveraged, which makes its financial position very weak.

Mitigating factors are the group's leading niche market position
in Europe and North America for PVC and polyethylene terepthalate-
based rigid film, and its broad geographic diversity and customer
base.

The negative outlook reflects S&P's concerns about Kloeckner's
ability to remain compliant with its financial covenant and/or a
general risk of a potential debt restructuring.  A potential
covenant breach for the first quarter of fiscal 2010 ending
Dec. 31, 2009, or in 2010 would result in downward pressure on the
rating.

"We would consider an outlook revision to stable subject to, among
other factors, satisfactory renegotiations of the company's
covenants, improved sector visibility, and a reduction in debt,"
said Ms. Listowska.


* GERMANY: Cabinet Backs Landesbank Toxic-Asset Plan
----------------------------------------------------
Brian Parkin and Rainer Buergin at Bloomberg News report that
Chancellor Angela Merkel's Cabinet has approved a revised plan
to clean toxic assets from German state banks, or Landesbanks.

According to Bloomberg News, the legislation, which now has to go
to parliament, will allow state banks such as WestLB AG and
Bayerische Landesbank to create their own so-called bad banks to
offload assets in exchange for pledges to change their business to
focus on development in their region.  Bloomberg News relates the
Berlin-based Finance Ministry on Wednesday said in a statement
e-mailed after the Cabinet meeting "the states holding stakes in
Landesbanks in which they agree to a revamp of the Landesbank
sector and accept the need for specific consolidation steps" as a
precondition for making use of the facility.

The Landesbank legislation, drawn up by German Finance Minister
Steinbrueck, pushes all the liabilities for potential losses on
assets placed in state bad banks onto their owners, in the main
the states and savings banks, Bloomberg News says.  Bloomberg
discloses the government has said as much as EUR700 billion (US$1
trillion) in toxic debt lingers on German private and state banks’
books, about EUR500 billion is attributed to the Landesbanks.

Bloomberg News recalls the draft law was revised after the
government dropped plans to enforce state-bank mergers.  The
coalition aims to have the legislation on the statute books by
July 3, when parliament breaks up for the summer recess and the
ruling parties prepare for Sept. 27 national elections, Bloomberg
News states.


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


* HUNGARY: Recession Deepens as Export Demand Plunges
-----------------------------------------------------
Zoltan Simon at Bloomberg News reports that Hungary's recession
deepened more in the first quarter than a preliminary estimate
showed as the euro area's contraction cut export demand, curbing
industrial output.

Bloomberg News relates the Budapest-based statistics office said
Tuesday in a revised report the country's economy contracted 6.7
percent from a year earlier, compared with a preliminary forecast
of 6.4 percent.


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


EUROMAX VI: S&P Puts 'BB' Rating on Class E Notes on Watch Neg.
---------------------------------------------------------------
Standard & Poor's Rating Services placed on CreditWatch negative
its credit ratings on 15 tranches issued by five collateralized
debt obligation transactions backed by structured finance
securities.  The ratings on the other classes of notes issued in
these CDO transactions are unaffected at this time.

The affected transactions are:

  -- EUROMAX III MBS Ltd.;
  -- EUROMAX IV MBS S.A.;
  -- EUROMAX V ABS PLC;
  -- EUROMAX VI ABS Ltd.; and
  -- STERLINGMAX I MBS Ltd.

In determining whether to place a CDO tranche rating on
CreditWatch, S&P considers a number of factors, including, but not
limited to:

  -- S&P's rated overcollateralization metric, which provides an
     estimate of rating stability for cash flow CDO tranches based
     on output from Standard & Poor's CDO Evaluator model and a
     simplified cash flow analysis;

  -- The percentage of assets (including the change in the
     percentage of assets) that, based on S&P's analysis, are
     rated below 'B-' in CDO portfolios, and the percentage of
     defaults already experienced in the portfolios; and

  -- The performance of overcollateralization test ratios relative
     to the trigger levels as set out in the transaction
     documents.

S&P will closely monitor the transactions' performance over the
coming months and perform further cash flow analysis before
resolving these CreditWatch placements.

                           Ratings List

              Ratings Placed on CreditWatch Negative

                       EUROMAX III MBS Ltd.
        EUR195.24 Million Asset-Backed Floating-Rate Notes

                                    Rating
                                    ------
            Class          To                     From
            -----          --                     ----
            A              AAA/Watch Neg          AAA
            A-2            AA+/Watch Neg          AA+
            B              A/Watch Neg            A

                        EUROMAX IV MBS S.A.
          EUR200.45 Million Secured Floating-Rate Notes

                                    Rating
                                    ------
            Class          To                     From
            -----          --                     ----
            A2             AAA/Watch Neg           AAA
            B              AA/Watch Neg            AA
            C              A/Watch Neg             A
            D              BBB/Watch Neg           BBB
            F1 Combo       BBB-/Watch Neg          BBB-
            F2 Combo       A/Watch Neg             A

                         EUROMAX V ABS PLC
              EUR307.5 Million Floating-Rate Notes

                                    Rating
                                    ------
            Class          To                     From
            -----          --                     ----
            A4             A-/Watch Neg           A-

                        EUROMAX VI ABS Ltd.
                EUR430 Million Floating-Rate Notes

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

                      STERLINGMAX I MBS Ltd.
     GBP150 Million Secured Floating-Rate And Residual Notes

                                    Rating
                                    ------
            Class          To                     From
            -----          --                     ----
            C              A/Watch Neg            A
            D              BBB/Watch Neg          BBB


SMURFIT KAPPA: Proposed Amendments Won't Move Fitch's 'BB' Rating
-----------------------------------------------------------------
Fitch Ratings says that the proposed amendments to Smurfit Kappa
Acquisitions' senior secured facilities would have no impact on
its ratings.

Smurfit Kappa Group's ratings are:

  -- Smurfit Kappa Group plc's Long-term Issuer Default Rating:
     'BB'; Outlook Stable.

  -- Smurfit Kappa Acquisitions' senior secured facilities: 'BB+'

  -- Smurfit Kappa Funding's senior subordinated notes due 2015:
     'BB-'

  -- Smurfit Kappa Treasury Funding's debenture notes due 2025:
     'BB+'

As Fitch noted on June 1, the Ireland-based paper packaging
producer's credit metrics are under pressure from difficult market
conditions.  SKG's EBITDA/net interest declined to 3.2x in Q109
from 4.0x in Q108, whilst net debt/LTM EBITDA increased to 3.7x at
Q109, up from 3.4x at FYE08 and from 3.2x at Q108.  Fitch's key
credit concern revolves around the expected weakening in SKG's
interest coverage and net leverage ratios in the near term and the
reduced headroom under the company's existing financial covenants,
which require a maximum net debt/EBITDA of 4.5x and a minimum
EBITDA/net interest of 2.8x at YE09.

The amendments proposed by SKG would provide greater covenant
headroom and therefore, if agreed, would significantly reduce the
risk of a covenant breach in the next one-two years.  The proposed
revised covenants would allow for a new maximum net debt/EBITDA of
5.4x at YE09 and new minimum EBITDA/net interest of 2.20x at YE10,
with covenant levels tightening thereafter in each case.

The proposal to use EUR100 million of the EUR668 million cash on
the company's balance sheet to prepay senior debt is also
positive, and does not endanger the company's comfortable
liquidity position.  Furthermore, the proposed amendment would
give the group increased flexibility to explore options to reduce
the refinancing risk which will otherwise emerge in 2013/2014.


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


EUROHOME MORTGAGES: S&P Lowers Rating on Class D Notes to 'B'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class B, C, and D
notes issued by Eurohome (Italy) Mortgages S.r.l., following a
credit and cash flow analysis of the transaction.  At the same
time, S&P affirmed its rating on the class A notes.

S&P placed its ratings on the class B, C, and D notes on
CreditWatch negative on Feb. 13.

The updated credit analysis is based on S&P's assessment of the
characteristics of the residual portfolio and factors in the
transaction's performance, including a rapid rise in arrears and
defaults over the past few quarters.

Loans in arrears for more than 90 days are 13.47% of the
outstanding collateral balance, up from 9.00% at the end of the
fourth collection period, ending in January 2009.  This number
includes 3.65% of defaulted assets.

Delinquency and default levels in Eurohome Italy are significantly
higher than the recorded average in Italian residential mortgage-
backed securities transactions of a similar vintage, according to
S&P's analysis.

In S&P's view, it is significant that the collateral backing the
Eurohome (Italy) transaction is not typical for the Italian RMBS
market.  The mortgage pool includes both prime borrowers and those
who may not have been able to obtain mortgages from the mainstream
lenders in Italy.  Generally, these customers are atypical
workers, self-employed individuals, non-EU nationals, or borrowers
who are refinancing or "cashing out".

The portfolio is also characterized by higher-than-average loan-
to-value (LTV) ratios for mortgages granted for the purpose of
buying a property, and low seasoning.  In factoring these
collateral characteristics into S&P's credit analysis, S&P has
noted that they result in higher-than-average assumed default
levels.

S&P's updated analysis of the current underlying asset pool showed
that arrears and defaults are mainly concentrated in the higher
LTV ratio bands, especially, it appears, in relation to loans to
non-EU nationals and the self-employed.  Loans granted to buy a
property have so far performed worse than those made for
refinancing or cashing out; S&P believes this difference may be
explained by the remortgage loans' comparatively lower LTV ratios.
Even though the low share of fixed-rate loans limits the scope of
S&P's comparative analysis, floating-rate mortgage loans show
substantially higher arrears levels.

On the back of the swift increase in arrears and defaults, S&P
understands that some performance triggers were breached, meaning
that the portfolio can no longer revolve.

The concentration of defaults (defined as the earliest
"sofferenza" and in arrears for more than 12 months) at the past
four interest payment dates has led to the depletion of the cash
reserve.  According to the investor report, the unpaid principal
deficiency ledger after the May 2009 interest payment date stands
at EUR2.3 million, or about 1.0% of the outstanding portfolio.
The cumulative gross default rate as of May 2009 was about 3.34%.

Given the current arrears levels and the definition of default
featured in the transaction, S&P believes the transaction is
likely shortly to breach the 4% trigger that defers interest on
the class E notes in the priority of payments after the
replenishment of the cash reserve.  The breach of this trigger
would increase excess spread available in the transaction to cure
defaults.

Deferral triggers for the class D, C, and B notes, respectively,
are 13.50%, 19.50%, and 23.75%.  The actual current cumulative
default trigger is about 3.34%.  To provide some context, loans in
arrears for three months or more, or six months or more (including
defaults), are about 14.5% and 8.6%, respectively, of the initial
collateral balance (increased by the EUR3.5 million mortgage sold
to the special-purpose entity during the revolving period).

Liquidity in the transaction is provided by the combined
waterfall, allowing the use of principal receipts to pay senior
items and interest on the notes, and a liquidity facility.

In S&P's cash flow analysis (based on updated credit numbers) S&P
factored in the depletion of the cash reserve and the proximity to
the class E notes' trigger level.

                           Ratings List

                 Eurohome (Italy) Mortgages S.r.l.
       EUR256.9 Million Mortgage-Backed Floating-Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

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

                         Rating Affirmed

                    Class             Rating
                    -----             ------
                    A                 AAA


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


ENERGY GROWN: Creditors Must File Claims by June 26
---------------------------------------------------
LLP Energy Grown Company is currently undergoing liquidation.
Creditors have until June 26, 2009, to submit proofs of claim to:

         Dostyk Ave. 105
         Almaty
         Kazakhstan


KAZ STROY: Creditors Must File Claims by June 26
------------------------------------------------
Creditors of LLP Kaz Stroy Invest Com have until June 26, 2009, to
submit proofs of claim to:

         Kassin Str. 2/2-21
         Mamyr
         Almaty
         Kazakhstan
         Te: 8 777 559 68-31

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on Oct. 28, 2008, after
finding it insolvent.

The Court is located at:

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


KAZAKHGOLD GROUP: Fitch Upgrades Issuer Default Rating to 'CC'
--------------------------------------------------------------
Fitch Ratings has upgraded KazakhGold Group Limited's Long-term
Issuer Default Rating and KazakhGold's senior unsecured rating to
'CC' from 'C', respectively.  The agency has simultaneously placed
both ratings on Rating Watch Negative.  The Recovery Rating for
the senior unsecured debt is 'RR4'.

The upgrade reflects the announcement by KazakhGold that it has
borrowed US$9.375 million from Gold Lion Holdings Limited in order
to fund the coupon payment on its Eurobond which was due on
May 6, 2009.  As such, the coupon payment was paid within the bond
documentation's 30-day cure period.

Gold Lion Holdings Limited is an investment vehicle which holds
22.1 million shares in KazakhGold on behalf of the controlling
Assaubayev family.  Fitch understands that the loan to KazakhGold
is subordinated, bears interest of 10% and can not be redeemed
until after 12 months after the redemption of the Eurobond, due 6
November 2013.

The RWN reflects Fitch's concerns about the company's near-term
operational strategy and financial performance.  The agency
expects to resolve the RWN following a meeting with management
within June 2009 to review the issuer's operational and financial
strategy for the remainder of 2009 and thereafter.  The agency is
also closely monitoring the progress of KazakhGold's potential
acquisition by Polyus Gold and its likely impact on KazakhGold's
credit profile.

Further negative rating actions remain a possibility should the
proposed Polyus Gold acquisition fail, or should KazakhGold not
procure alternative sources of new funding to improve its current
financial position.  The agency notes that KazakhGold's corporate
transparency remains an issue.


LTD SHERWOOD: Creditors Must File Claims by June 26
---------------------------------------------------
Creditors of LLP LTD Sherwood have until June 26, 2009, to submit
proofs of claim to:

         Kazakhstan Str. 78-27
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on March 26,
2009, after finding it insolvent.

The Court is located at:

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


METALL MARKET: Creditors Must File Claims by June 26
----------------------------------------------------
Creditors of LLP Metall Market have until June 26, 2009, to submit
proofs of claim to:

          Kazakhstan Str. 78-27
          Ust-Kamenogorsk
          East Kazakhstan
          Kazakhstan

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on March 26,
2009, after finding it insolvent.

The Court is located at:

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


PROJECT STROY: Creditors Must File Claims by June 26
----------------------------------------------------
LLP Project Stroy Montage is currently undergoing liquidation.
Creditors have until June 26, 2009, to submit proofs of claim to:

         Micro district Samal 1, 3
         Almaty
         Kazakhstan


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


TARIEL TRANSPORT: Creditors Must File Claims by July 10
-------------------------------------------------------
LLC Tariel Transport is currently undergoing liquidation.
Creditors have until July 10, 2009, to submit proofs of claim to:

         Lenin Street
         Osh
         Kyrgyzstan


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


LEGG MASON: Moody's Cuts Ratings on US$ Money Fund to 'Ba/MR5'
--------------------------------------------------------------
Moody's Investors Service has confirmed the Aa/MR3 fund credit and
market risk ratings of the Legg Mason Euro Money Fund as "the Euro
Fund", and downgraded to Ba/MR5 from Baa/MR4, the credit and
market risk ratings of the Legg Mason US$ Money Fund as "the US$
Fund".  Both funds are variable net asset value enhanced cash-type
products managed by Western Asset Management Company, a subsidiary
of Legg Mason Inc (A3, on review for possible downgrade).  This
rating action concludes the reviews for downgrade of both fund
ratings initiated on 28 April 2009, following a decision by the
fund sponsor to close both funds on May 29, 2009.

Moody's confirmed the Euro Fund's credit rating at Aa as
shareholders did not sustain additional material losses resulting
from the fund's liquidation process.  The rating agency downgraded
the US$ Fund's credit rating to Ba from Baa following additional
losses experienced by the fund's shareholders in the past few
months prior to its closure, as well as over the fund's
liquidation period.

The rating agency confirmed the Euro Fund's market risk rating at
MR3 as the NAV volatility experienced during the sale of the
Fund's assets over the past month was consistent with MR3 rating.
Moody's downgraded the US$ fund's market risk rating to MR5 from
MR4, as the fund experienced additional losses, largely related to
the fund's liquidation of its substantial investment in
residential mortgage-backed securities, which caused the fund's
NAV to become more volatile over the past few months prior to its
closure.

Moody's will withdraw the ratings of both funds due to their
closure.

The previous rating action on the funds was on April 28, 2009,
when Moody's placed both funds' credit and market risk ratings on
review for possible downgrade.


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


ALFA-STROY-INVEST LLC: Creditors Must File Claims by June 22
------------------------------------------------------------
Creditors of LLC Alfa-Stroy-Invest (TIN 7702623249, PSRN
1067758882586) (Construction) have until June 22, 2009, to submit
proofs of claims to:

         B. Mazenko
         Temporary Insolvency Manager
         Post User Box 24
         117042 Moscow
         Russia

The Arbitration Court of Moscow will convene on Aug. 27, 2009, to
hear bankruptcy supervision procedure on the company.  The case is
docketed under Case No. ?40–25518/09–44-44B.

The Debtor can be reached at:

         LLC Alfa-Stroy-Invest
         Trifonovskogo Str. 51
         127254 Moscow
         Russia


BRATSKIY AGGREGATE: Creditors Must File Claims by June 22
---------------------------------------------------------
Creditors of LLC Bratskiy Aggregate Plant (TIN 3823017534, PSRN
1053847028674) have until June 22, 2009, to submit proofs of
claims to:

         O. Anuchina
         Temporary Insolvency Manager
         Post User Box 71
         664056 Irkutsk
         Russia

The Arbitration Court of Irkutskaya will convene at 10:30 a.m. on
Oct. 8, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?19–7335/09–63.

The Debtor can be reached at:

         LLC Bratskiy Aggregate Plant
         Burninskaya Vikhorya 1
         Bratskiy
         Irkutskaya
         Russia


DELANCE LTD: Liquidity Pressures Prompt S&P to Junk Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said it lowered the long-term
corporate credit rating on Delance Ltd., the holding company of
Russian car retailer Rolf Group to 'CCC+' from 'B'.  The rating
was removed from CreditWatch, where it was placed with negative
implications on May 13, 2009.  The outlook is negative.

S&P also lowered to 'CCC' from 'B-' the senior unsecured debt
rating on the unsecured notes issued by the group's financing
vehicle Colgrade Ltd. and guaranteed by Delance Ltd. and Rolf
Group.  This rating was also removed from CreditWatch with
negative implications.  S&P left the recovery rating unchanged at
'5', indicating that lenders could achieve modest (10%-30%)
recovery in the event of a payment default.

"The downgrade reflects our expectations of continued pressures on
the company's liquidity position," said Standard & Poor's credit
analyst Anna Stegert.  "This is a consequence of the difficult
market environment in the Russian car market that experienced a
significant deterioration since the second half of 2008."

Demand for new cars in this market is expected to stay weak
throughout 2009, which should continue to pressure Rolf's earnings
and cash flow generation.  In addition, at current bond price
levels and in the current market environment, there is a general
risk of bond exchange offers, especially for companies with such a
challenging maturity profile as Rolf.

S&P understands that Rolf is still in negotiations with its
lenders to extend upcoming maturities.  In S&P's view, Rolf's
current liquidity sources are not sufficient to cover those near-
term maturities, so that it would have to obtain extensions on a
large proportion of its maturing lines or put alternative funding
in place.  Overall, the group's maturity profile is rather
challenging, with US$400 million of debt maturing in 2010, of
which US$250 million relates to the unsecured notes that are due
in June 2010.

"The negative outlook reflects our concern about Rolf's liquidity
situation and its operating and financial prospects," said
Ms. Stegert.  "The ratings could be lowered if Rolf fails to
improve its liquidity position to avoid a cash shortfall in 2009.
Likewise, the ratings could come under pressure if it pursues a
restructuring of its debt, which S&P would likely consider to be a
distressed exchange."


KACHUGSKIY MANUFACTURING: Creditors Must File Claims by June 22
---------------------------------------------------------------
Creditors of LLC Kachugskiy Manufacturing Complex (TIN 3830906809,
PSRN 1083827000311) (Wood-Processing Industry) have until June 22,
2009, to submit proofs of claims to:

         R. Gerasimov
         Temporary Insolvency Manager
         Post User box 281
         K. Marksa Str. 26B
         664003 Irkutsk
         Russia

The Arbitration Court of Irkutskaya will convene on Sept. 9, 2009,
to hear bankruptcy supervision procedure on the company.  The case
is docketed under Case No. ?19–6010/09–37.

The Debtor can be reached at:

         LLC Kachugskiy Manufacturing Complex
         Energetik
         Bratsk
         665702 Irkutskaya
         Russia


MEGAFON OAO: Fitch Changes Outlook on 'BB+' Rating to Positive
--------------------------------------------------------------
Fitch Ratings has changed the Outlooks on OAO MegaFon's Long-term
Issuer Default rating and National Long-term rating to Positive
from Stable.  The change reflects Fitch's expectations that
Megafon shareholders will ultimately be able to put in place a
sustainable dividend policy that will be consistent with the
company's creditworthiness.

At the same time, Fitch has affirmed the Long-term IDR and senior
unsecured rating at 'BB+', the Short-term IDR at 'B' and National
Long-term rating at 'AA(rus)'.  MegaFon S.A.'s US$375m eurobond
due in December 2009, which is guaranteed by Megafon, is affirmed
at 'BB+'.

Following the change in shareholder structure in 2008, co-
operation among shareholders has improved, allowing the board to
finally approve a legal merger of the head company with its
subsidiaries.  Prior to the shareholder change, this merger had
reached an impasse, owing to a dispute among some of its previous
shareholders.

Although shareholders have so far not been able to agree a
dividend policy and no formal leverage targets have been put in
place - which are key constraints on Megafon's ratings - Fitch
believes these issues will eventually be resolved, without
undermining Megonfon's strong credit profile.

"A key corporate governance concern has been that shareholders may
decide to upstream too much cash out of the company.  However,
Fitch does not believe shareholders will take any actions that
could seriously jeopardise the value of their investments in the
company," said Nikolay Lukashevich, Senior Director in Fitch's TMT
team.

Fitch notes that Megfon's operating and financial performance in
rouble terms is likely to be resilient in the current economic
downturn.  Megafon's market position is likely to be stable at
worst, given its solid liquidity position versus its key
competitors.  Megafon also retains a flexibility to follow its
competitors' move to scale back capex in the slow-growth
environment although it is under less financial pressure to do so.
Any capex rationing is likely to further improve its already
strong free cash flow  generation.

By end-2008 Megafon's net debt and leverage was close to zero.
Given the company's abundant FCF generation, it continues to
accumulate cash on its balance sheet.  Currency risks have so far
been mitigated by hedging and a good currency match between debt
and liquidity.  The company has been able to convert its cash into
US$ and euro and keep them as short-term deposits with highly
rated domestic banks.  However, given the fundamental mismatch
between rouble cash flows and FX debt, the amount of leverage
acceptable within Megafon's rating is lower than its peers.


MOSKOMMERTSBANK: Fitch Says Redirection Procedure May Face Delays
-----------------------------------------------------------------
Fitch Ratings says that the collections redirection procedure
agreed between CB Moskommertsbank (rated 'CCC'/Negative) and ZAO
Raiffeisenbank (RBRU, rated 'BBB+'/Negative) could alleviate the
commingling risk with respect to Moscow Stars B.V.  However, Fitch
remains concerned that the implementation of the redirection
procedure could face significant delays.  The agency is also
concerned about RBRU's readiness to take over the servicing
function if MKB should become insolvent

The transaction is a securitisation of mortgage loans originated
by MKB.  Fitch's downgrade of the originator, MKB, to 'CCC' from
'B-' on May 6, 2009, triggered the obligation to transfer the
collection function to RBRU because it is the appointed back-up
servicer.  RBRU is also obliged to gather data and documents on
the loan portfolio in potential readiness to replace MKB as
servicer if required.  Due to the increased risk of commingling
losses that could occur during this process, Fitch placed Moscow
Stars B.V.'s class A and class B notes on Rating Watch Negative
last month.

The issuer is currently opening a new collection account with
RBRU.  Once the account is opened, MKB will notify borrowers in
writing to make their payments to this account.  Borrowers will
have the option to either wire payments to the new collection
account, or to open a new current account with RBRU from which
loan payments will be automatically debited on the loan payment
date to the issuer's account.  Borrowers can make payments on
existing loans by wire transfer from their current account with
MKB into the new collection account, or in cash at one of RBRU's
branches.

A borrower notification letter is currently being prepared by the
transaction parties and a request has been sent to the issuer
asking it to provide the necessary documents to open the
collection account at RBRU.  Notifications will be sent via
registered post and are expected to reach borrowers within two
weeks of the mailing date.  However, Russia's slow postal system
could impact notification timing, and possibly delay the
redirection of collections to the issuer's account at RBRU.

Fitch has been informed that the notification letters will include
call centre details for MKB and RBRU to enable borrowers to
contact the two banks if they have questions about the new
procedure.  Fitch expects that some borrowers will not immediately
comply with the new payment instructions, which could delay some
redirections.

The servicing of the loan portfolio will, in accordance with the
agreements, remain with MKB until a termination event is
triggered.  MKB will have the right to receive electronic account
statements from RBRU on the collection account to track payments
and payments due.  This will enable MKB to continue providing
servicer reports, mainly to the cash manager.  However, MKB has no
right to give payment instructions on the issuer's account.

The original loan documentation is currently held by the
transaction custodian, CJSC Region.  RBRU has contacted the
custodian and hopes to start collecting the data necessary to
service the portfolio after the new payment instructions are sent
to the borrowers.  As such, an insolvency of MKB would not affect
the ability of RBRU to take over the servicing function for Moscow
Stars B.V.

RBRU will also need to upgrade its IT system to process the loan
data.  Although RBRU has not initiated this yet, it estimates that
it could take several months to take over the servicing function.
As a result, the transaction may experience operational
disruptions if the administration of the portfolio is removed from
MKB in the short term.

This process is occurring at a stressful period for the
transaction which has been affected by an increased level of
delinquencies since the start of the year.  As of May 2009, 30+
days delinquencies stood at 4.83% of the outstanding balance.  The
transaction benefits from a reserve fund, which as of May 2009
amounted to US$10.08 million.  Even if the transaction does not
receive any cash payments from the assets, the reserve fund at its
current level would be able to cover more than 12 months of class
A and B interest and senior expenses.  As such, the transaction
can withstand a significant period of operational disruptions.

Fitch will continue to monitor the redirection of collections
process and will seek to resolve the Rating Watch Negative
assigned to the class A and B notes in coming weeks based on the
actions being taken by the transaction parties.

Moscow Stars B.V. ratings are:

  -- Class A (ISIN XS0307297225): 'BB+'; RWN
  -- Class B (ISIN XS0307297811): 'BB'; RWN


STROY-OPTIMA LLC: Creditors Must File Claims by June 22
-------------------------------------------------------
Creditors of LLC Stroy-Optima (TIN 7703565790) (Construction) have
until June 22, 2009, to submit proofs of claims to:

         A. Ryzhov
         Temporary Insolvency Manager
         Post User Box 366
         Postal Office 100
         Tver
         Russia

The Arbitration Court of Saint-Petersburg will convene at 11:10
a.m. on July 7, 2009, to hear bankruptcy supervision procedure on
the company.  The case is docketed under Case No. ?56–51215/2008.

The Debtor can be reached at:

         LLC Stroy-Optima
         Komsomola Str. 12A/2N
         195009 Saint-Petersburg
         Russia


UC RUSAL: Creditors Extend Deadline on US$7.4 Bln Debt to July 28
-----------------------------------------------------------------
Maria Kolesnikova at Bloomberg News reports that United Co. RUSAL
said its creditors agreed to extend a so-called standstill
agreement on US$7.4 billion of debt until July 28.

The previous deadline expired yesterday, June 11, Bloomberg News
notes.  Catherine Belton at the Financial Times reports that RUSAL
is seeking to extend payments on the loans by five to 10 years
after the financial crisis sent aluminium prices plummeting,
hampering its ability to pay down its debts.

According to Bloomberg News, talks with lenders will continue in
Moscow with a committee representing more than 70 international
banks, including ABN Amro NV, Citigroup Inc., BNP Paribas SA, ING
Groep NV and Merrill Lynch & Co.

                               VEB

Bloomberg News recalls Rusal Chairman Viktor Vekselberg said
June 4 the state-run bailout bank Vnesheconombank, or VEB, last
week gave RUSAL an extra year to pay back US$4.5 billion in credit
under a program of extending maturities on loans to Russian
companies including Evraz Group SA and Alfa Group's telecoms unit
Altimo.  Mr. Kurochkina, as cited by Bloomberg News, said RUSAL's
international lenders "were awaiting VEB's decision".  RUSAL has
total debt of US$14 billion, Bloomberg News discloses.

                            About Rusal

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


VOST-SIB-UGOL OJSC: Creditors Must File Claims by June 22
---------------------------------------------------------
Creditors of OJSC Vost-Sib-Ugol (TIN 3808093700) (Coal Mining)
have until June 22, 2009, to submit proofs of claims to:

         N. Kuzakov
         Insolvency Manager
         K. Libnekhta Str. 239V
         664081 Irkutsk
         Russia

The Arbitration Court of Irkutskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?19–7132/09–68.

The Debtor can be reached at:

         OJSC Vost-Sib-Ugol
         Sukhe-Batora Str. 4
         Irkutsk
         Russia


===============
S L O V E N I A
===============


* SLOVENIA: Slips Into Recession, Bloomberg Survey Says
-------------------------------------------------------
Boris Cerni at Bloomberg News reports that Slovenia slipped into a
recession in the first quarter after exports, manufacturing and
construction slumped in a global downturn.

Citing a Bloomberg survey, the report discloses the country's
gross domestic product contracted 5 percent after shrinking 0.8
percent in the last three months of 2008.


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


AVANZIT SA: Creditors to Take 12% Stake in Exchange for Debt
------------------------------------------------------------
Rodrigo de Miguel at Reuters reports that creditors of Avanzit SA
will take 12 percent of its shares under a deal that will end its
holding company's receivership.

Santiago Benedit, Avanzit's chief financial officer, told Reuters
that Bank of America, several Spanish savings banks and a U.S.
private equity firm will be among creditors taking a share in
Avanzit following the deal which will grant them EUR37 million
(US$51.33 million) worth of shares.  Mr. Benedit, as cited by
Reuters, said Avanzit aims to exchange 32 million shares for the
debt, which will leave it with only EUR14 million of liabilities
linked to the receivership of its Avanzit Tecnologia SLU and
Avanzit Telecom SLU.  Avanzit has been in receivership since 2003,
Reuters relates.  Citing Mr. Benedit, Reuters discloses the
company also to restructure its EUR23 million in long-term debt.

Headquartered in Madrid, Spain, Avanzit SA --
http://www.avanzit.com/-- is a company primarily active, through
its subsidiaries, in the infrastructure and telecommunications
sectors.  The Company is structured into five business areas:
Avanzit Infraestructuras, which is mainly involved in the
telecommunications, transport, energy, public services and civil
engineering (engineering, construction, hotels and the
environment); Avanzit Tecnologia, which provides information and
communication technology solutions; Avanzit Internacional, engaged
in the international infrastructure and technological activities;
Vertice 360 Grados, dedicated to the production, post-production
and distribution of audiovisual products, and Navento, active in
geo-localization services.  Avanzit SA is present in 25 countries
on four continents.  As of December 31, 2008, the main
shareholders of the Company is TSS Luxembourg I, SARL, which holds
a 11.607% stake in Avanzit SA.


GC SABADELL: Moody's Assigns 'Ba2' Rating on EUR69.1 Mil. Notes
---------------------------------------------------------------
Moody's Investors Service has assigned these definitive ratings to
the debt issued by GC SABADELL EMPRESAS 4, Fondo de Titulización
de Activos:

  -- Aaa to the EUR525.8 million Series A notes
  -- A3 to the EUR25.1 million Series B notes
  -- Ba2 to the EUR69.1 million Series C notes

GC SABADELL EMPRESAS 4, Fondo de Titulizacion de Activos is a
securitization of credit rights (interest and principal, excluding
the purchase option) derived from financial lease contracts
granted by Banco Sabadell (Aa3/P-1) to Spanish enterprises and
self-employed individuals.  The portfolio will be also serviced by
Banco Sabadell.

In Moody's view, strong features within this deal include, among
others: (1) experience of Banco Sabadell as originator and
servicer; (2) good seasoning of 2.1 years; (3) a strong swap
agreement guaranteeing an excess spread of 0.25%; (4) no arrears
included at closing; (5) a 12-month artificial write-off
mechanism; (6) the fact that the residual value component is not
securitized; and (7) the fact that the originator will rank junior
with respect to the SPV for any amount due to the purchase option
should the relevant lessee default.

However, Moody's notes that the transaction poses several
challenging features, namely: (1) regional concentration in
Catalonia (around 50%); (2) not very granular portfolio; (3) high
concentration in the "building and real estate" sector (32%); and
(4) the negative impact of the interest deferral trigger on the
subordinated series.  These increased risks were reflected in the
credit enhancement calculation.

The provisional pool of underlying assets comprised, as of
May 2009, credit rights derived from 4,499 lease contracts granted
to 3,375 Spanish enterprises and self-employed individuals, for a
total amount of EUR668 million.  The loans were originated between
1998 and 2009, with a weighted average seasoning of 2.1 years and
a weighted average remaining life of 7.9 years.  The interest rate
is floating for 96% of the pool and fixed for the rest.  The
weighted average interest rate is 4.7%.  In terms of underlying
assets, 57.5% of the outstanding of the portfolio is secured over
real estate properties.  Geographically, the pool is concentrated
in Catalonia (50.4%) and Madrid (20.9%), and is around 32%
concentrated in the "buildings and real estate" sector according
to Moody's industry classification.  At closing, none of the
contracts will have amounts past due.

Moody's based the ratings primarily on: (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information and other statistical information; (iii) the swap
agreement hedging the interest rate risk; (iv) the credit
enhancement provided through the GIC account, the excess spread,
the cash reserve and the subordination of the notes; and (v) the
legal and structural integrity of the transaction.  Moody's
initially analysed and will monitor this transaction using the
rating methodology for EMEA SMEs loan-backed transactions as
described "Moody's Approach to Rating Granular SME Transactions in
Europe, Middle East and Africa", June 2007 and "Refining the ABS
SME Approach: Moody's Probability of Default assumptions in the
rating analysis of granular Small and Mid-sized Enterprise
portfolios in EMEA", March 2009.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes (April 2035).  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal on Series A, B and C at par on or
before the rated final legal maturity date.  Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The only previous rating action relates to the assignment of the
provisional rating (June 8, 2009).


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


COMTAX GMBH: Creditors Have Until June 24 to File Claims
--------------------------------------------------------
Creditors of Comtax GmbH are requested to file their proofs of
claim by June 24, 2009, to:

         Auctor Schwyz AG
         Oberer Steisteg 18
         Mail Box 148
         6431 Schwyz
         Switzerland

The company is currently undergoing liquidation in Schwyz.  The
decision about liquidation was accepted at a shareholders' meeting
held on April 21, 2009.


FOSSIL GALLERY: Claims Filing Deadline is June 22
-------------------------------------------------
Creditors of Fossil Gallery GmbH are requested to file their
proofs of claim by June 22, 2009, to:

         Fossil Gallery GmbH
         Brunngasse 41
         4153 Reinach BL
         Switzerland

The company is currently undergoing liquidation in Reinach BL.
The decision about liquidation was accepted at a shareholders'
meeting held on March 24, 2009.


LIMACHER & PARTNER: Creditors Must File Claims by June 22
---------------------------------------------------------
Creditors of Limacher & Partner Management Services AG are
requested to file their proofs of claim by June 22, 2009, to:

         Limacher-Zuercher
         Dorfstrasse 82D
         6390 Engelberg
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at a general meeting held
on April 22, 2009.


RWT ROUND: Claims Filing Deadline is June 22
--------------------------------------------
Creditors of RWT Round World Travel GmbH are requested to file
their proofs of claim by June 22, 2009, to:

         Roger Wuest
         Wydenstrasse 5
         5242 Lupfig
         Switzerland

The company is currently undergoing liquidation in Lupfig.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on March 11, 2009.


UA-LESINVEST GMBH: Claims Filing Deadline is June 24
----------------------------------------------------
Creditors of UA-LesInvest GmbH are requested to file their proofs
of claim by June 24, 2009, to:

         Walter Zuend
         Liquidator
         Ebni 1205
         9428 Walzenhausen
         Switzerland

The Company is currently undergoing liquidation in Walzenhausen
(AR).  The decision about liquidation was accepted at a general
meeting held on Oct. 14, 2008.


UBS AG: Swiss Government May Sell 9.3% Stake
--------------------------------------------
BBC News reports that the Swiss government is considering selling
its investment in UBS AG.

BBC News recalls in October the government gave UBS 6 billion
Swiss francs (US$5.5 billion; GBP3.4 billion) in exchange for
notes that could be converted into a 9.3% stake in the bank.
According to BBC News, the government's lock-in period, when it
was not allowed to convert the notes into UBS shares, ended on
Tuesday.  BBC News relates the government said it had not yet
decided whether to convert the notes or sell them on.

UBS, BBC News recounts, sought government help after investments
in risky US assets forced it to make billions of francs in
write-downs and led to it posting the biggest annual loss in Swiss
corporate history last year.

                         About UBS AG

Based in Zurich, Switzerland, UBS AG (VTX:UBSN) --
http://www.ubs.com/-- is a global provider of financial services
for wealthy clients.  UBS's financial businesses are organized on
a worldwide basis into three Business Groups and the Corporate
Center.  Global Wealth Management & Business Banking consists of
three segments: Wealth Management International & Switzerland,
Wealth Management US and Business Banking Switzerland.  The
Business Groups Investment Bank and Global Asset Management
constitute one segment each.  The Industrial Holdings segment
holds all industrial operations controlled by the Group.  Global
Asset Management provides investment products and services to
institutional investors and wholesale intermediaries around the
globe.  The Investment Bank operates globally as a client-driven
investment banking and securities firm.  The Industrial Holdings
segment comprises the non-financial businesses of UBS, including
the private equity business, which primarily invests UBS and
third-party funds in unlisted companies.


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


ELIT LINE LLC: Creditors Must File Claims by June 19
----------------------------------------------------
Creditors of LLC Trading Enterprise Elit Line (code EDRPOU
35760250) have until June 19, 2009, to submit proofs of claim to:
V. Vasilik, the company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 14, 2009.  The case is docketed under
Case No. 44/206-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Trading Enterprise Elit Line
         P. Lumumba Str. 15A
         01042 Kiev
         Ukraine


INIST LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------
The Economic Court of Poltava commenced bankruptcy supervision
procedure on LLC Industrial and Commercial Firm Finist (code
EDRPOU 13934709).

The Insolvency Manager is:

         S. Kiprach
         Office 88
         Furmanov str. 8-A
         36021 Poltava
         Ukraine

The Court is located at:

         The Economic Court of Poltava
         Zigin Str. 1
         36000 Poltava
         Ukraine

The Debtor can be reached at:

         LLC Industrial and Commercial Firm Finist
         Mir str. 8
         Komsomolsk
         39800 Poltava
         Ukraine


SESA-TRADE DNEPROPETROVSK: Creditors Must File Claims by June 19
----------------------------------------------------------------
Creditors of Subsidiary Company Sesa-Trade Dnepropetrovsk (code
EDRPOU 22667118) have until June 19, 2009, to submit proofs of
claim to:

         V. Kapustin
         Insolvency Manager
         Kronshtadtskaya Str. 138
         61029 Kharkov
         Ukraine

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on May 13, 2009.  The case is docketed under
Case No. B-39/99-09.

The Court is located at:

         The Economic Court of Kharkov
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Debtor can be reached at:

         Subsidiary Company Sesa-Trade Dnepropetrovsk
         Moscow Avenue 44
         61050 Kharkov
         Ukraine


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


BAA: Bondholders Put Forward Alternatives to UK's Special Regime
----------------------------------------------------------------
Alistair Osborne at Telegraph.co.uk reports that BAA's bondholders
have proposed two alternatives to the UK government's
controversial plans to force a "special administration regime".

The report discloses that the bondholders' first alternative is to
impose a license obligation that compels the debt holders to
continue to operate the airports.  The second is for special
administration to trigger a "pre-agreed exchange offer" whereby
existing debts are replaced by government-guaranteed loans in the
new BAA, the report says.  According to the report, BAA does not
support the second proposal, which it fears could give debt
holders an incentive to force the group into administration.  The
report states the holders of GBP4.85 billion of bonds would demand
a "consent fee" that would apply to the owners of all the GBP9.6
billion of senior debt secured against Heathrow, Gatwick and
Stansted airports.

The report relates bondholders warn that introducing a special
administration regime could lead to the insolvency of BAA.  The
report recounts on Sunday BAA warned that a proposal by Department
for Transportation that will give ministers "step-in" rights if
its fails to ensure the airports continue to operate was already
having an impact on its credit rating and its ability to raise
funds for new investment.

BAA -- http://www.baa.co.uk-- owns and manages seven airports in
the UK, including London's Heathrow, Gatwick, and Stansted.  The
company oversees functions such as cargo handling, fire
protection, property management, retail operations (including its
own World Duty Free stores), and security.  In addition, it runs
the Heathrow Express rail service to London and works with other
mass transit operators.  Outside the UK, BAA has a 65% stake in
the Naples International Airport in Italy and manages the retail
operations at three US airports in Pittsburgh, Baltimore, and
Boston.  A group led by Spanish infrastructure manager Ferrovial
acquired BAA in 2006 for more than GBP10 billion in stock.


ITV PLC: Exchange Offer Won't Affect Fitch's 'BB-' Rating
---------------------------------------------------------
Fitch Ratings said the exchange offer by ITV for its
EUR500 million fixed-rate notes due 2011, if it goes ahead as
planned, will be positive for the company's credit quality.
However, if successful, the exchange is not expected to have any
immediate rating impact.

The offer, which would see 30% of the face value of the notes
redeemed from balance-sheet cash, and the remaining 70% replaced
with similar notes with a maturity in 2014 and higher coupon
payments, could remove what Fitch had predicted to be ITV's first
major debt repayment challenge in 2011.

Fitch rates ITV at Long-term Issuer Default 'BB-' with a Negative
Outlook and would expect to rate the new 9% guaranteed notes due
2014 issued under the exchange, on the basis of the preliminary
prospectus dated 10 June 2009, at the group's senior unsecured
rating of 'BB-'.

"The exchange offer should give ITV significantly more financial
flexibility in the medium-term, and increases the practical
options open to it in navigating both the current advertising
slump and the structural changes taking place in the free-to-air
TV industry," said Alex Griffiths, Senior Director in Fitch's TMT
group in London.  "The key challenge for ITV will be how to most
effectively use this additional breathing room."

Fitch's current ratings and Outlook are more driven by the
agency's concerns around the UK advertising market in the short-
to medium-term than by liquidity concerns.  However, a successful
exchange, if combined with other factors, could contribute to an
Outlook change to Stable and in due course to positive rating
momentum.

Fitch's rating of ITV already gives credit to the group for its
proactive stance in managing its liquidity.  Since the start of
the economic downturn the group has shown itself adept at
accessing innovative sources of funds.

Fitch has previously signalled that expectations of leverage,
measured as net debt/EBITDA, of above 5.0x on an ongoing basis
would likely cause further negative rating action.  This compares
to a ratio at FY08 of 3.7x.  In Fitch's modelling, which includes
a prudent haircut to potential cost savings and no disposal
proceeds, leverage of over 5.0x is accompanied by a decline in
advertising revenues of over 15% in 2009, with a further 2% in
2010.  A 15% decline in UK TV advertising in one year would be
unprecedented, though based on month-on-month data in late 2008
and so far in 2009, is not considered unrealistic.

If ad market visibility improves, disposals are realized on time,
and the full planned cost savings disclosed by management are
realized, there remains the potential for relatively rapid
stabilization and upwards migration of ITV's ratings in due
course.  Despite current signs that the advertising market is
developing largely as ITV predicted, it is unlikely the trend will
be clear enough until into the second half of the year for Fitch
to draw any firm conclusions.

In the long term, ITV should benefit from the continuing
turnaround in its underlying performance.  In 2008 the share of
viewing of its family of channels increased for the second year
running after years of steep decline, reflecting the strength of
its multi-channels and slowing increases in multi-channel
penetration.  Regulatory issues appear to be abating, with initial
indications from Ofcom's Public Sector Broadcasting review, and
the OFT's referral of the Contract Rights Renewal mechanism to the
Competition Commission, broadly positive.


ITV PLC: Proposed Exchange Offer Won't Affect S&P's 'BB-' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that U.K. broadcaster ITV
PLC's (BB-/Stable/B) proposed offer to exchange its outstanding
EUR500 million bonds due 2011 for a combination of cash and new
bonds maturing in 2014 leaves the ratings and outlook on ITV
unchanged.

ITV announced that it was offering to exchange any or all of its
outstanding EUR500 million bonds on a nominal for nominal basis
for a consideration of about 30% in cash and 70% in new bonds due
2014 and carrying a coupon 300 basis points higher than the
existing 2011 bonds.

S&P does not view this exchange offer as distressed or coercive
under S&P's criteria, since S&P believes current bondholders would
not be adversely affected if they chose not to tender their bonds.
Importantly, S&P understands the offer does not include any
squeeze out of minorities language.  S&P considers that ITV's
liquidity position is adequate for the ratings and that it will
remain so after the group accommodates the cash component of the
exchange offer.  This offer, if successful, would allow ITV to
significantly ease its debt maturity profile and reduce gross
debt.


KEYDATA INVESTMENT: Attracts More Than 30 Potential Buyers
----------------------------------------------------------
Paul Farrow at Telegraph.co.uk reports that more than 30 companies
have expressed interest in acquiring Keydata Investment Services.

Telegraph.co.uk relates PricewaterhouseCoopers, the administrator,
said that it expects to have agreed to a deal for the business by
the end of next week.  According to Hedge Funds Review, specialist
investment boutique Jubilee Financial Products is one of several
bidders for Keydata.

"The structured product range offered by Keydata is a good fit
with the Jubilee Financial Products philosophy, and we consider
ourselves to be a serious buyer for the company," Hedge Funds
Review quoted JFP CEO Adam Habib as saying.  "No doubt many of
Keydata's clients are feeling vulnerable with a substantial back
book of structured products that needs to be managed.  Jubilee has
the largest collection of investment banking expertise to be found
outside of an Investment bank and is ideally placed to oversee the
existing Keydata book," he said.

                               Isas

Telegraph recounts PwC had discovered more 'non-compliant' funds
found to break the Isa rules, taking the total to 24.  The amount
of money that is held in 'non-compliant' Isas is likely to top
GBP200 million, Telegraph.co.uk states.  Dan Schwarzmann, the
administrator at PWC, as cited by Telegraph.co.uk, said that his
preliminary investigations suggest that savers’ money was safe --
and this included investors holding non-compliant Isa plans.  In a
June 9 report Telegraph.co.uk disclosed the non-compliant plans
are -– Secure Income Bonds 1, 2 and 3 and Defined Income Plans 1
to 8.  According to the report, the non-compliant plans triggered
a tax liability of around GBP5 million which the company was
unable to meet, leading to its insolvency.

Telegraph.co.uk notes the Financial Services Authority (FSA) has
now lifted the own-initiative variation of permission (OIVoP) -—
which prevented the business from operating -— on existing funds
so that processing can return to normal until a buyer is found.

On June 10, 2009, the Troubled Company Reporter-Europe, citing,
The Times, reported that Dan Schwarzmann and Mark Batten of
PricewaterhouseCoopers LLP were appointed joint administrators of
KIS on Monday, June 8, 2009.  The appointment was made based on an
application to Court by the Financial Services Authority (FSA) on
insolvency grounds.  The Times related the FSA said that it was
pushing Keydata, which has assets of GBP2.8 billion at the end of
April, into administration in order to protect the fund manager's
more than 80,000 individual investors.  The Times disclosed PwC
said Keydata AIM VCT plc, Keydata AIM VCT 2 plc, Keydata Income
VCT 1 plc and Keydata VCT plc 2 are separate legal entities and
not subject to the administration.

KIS designs, distributes and administers structured investment
products.  KIS operates from three locations, being London,
Glasgow and Reading and administers its own products as well as
portfolios for third parties.


KEYDATA INVESTMETNT: OPAL Offers Support to Administrators
----------------------------------------------------------
OPAL, the UKs largest provider of structured product services and
administration to investment companies, banks, building societies
and other third parties, has contacted PWC and other major
structured product providers to offer ongoing support for all
portfolios following KeyData being placed into administration.

OPAL has been in operation for 25 years and currently services
over 600,000 financial services contracts of varying types from a
broad spectrum of financial and non financial organisations.

Tony Collins, managing director, OPAL, commented:
"The loss of KeyData is obviously very disappointing as it was a
respected provider within the industry.  However, our primary
concern now is to offer our support to the administrators and
other providers of structured products.  OPAL has the financial
strength, staffing capacity and technology to step into the breach
within days."

The demise of KeyData will inevitably cause some uncertainty,
however the structured product market is very strong and growing
significantly.  A significant number of new companies have, or are
looking at, entering the structured products market in 2009 / 2010
due to the fact that the products offer tremendous value, much
greater transparency and the opportunity, if appropriate, to
participate in the Financial Services Compensation Scheme.


MELROSE RESOURCES: Moody's Changes Outlook on 'B2' Rating to Neg.
-----------------------------------------------------------------
Moody's Investors Service has changed the rating outlook for the
B2 corporate family rating of Melrose Resources plc to negative
from stable.

The change in outlook is prompted by Moody's concern that Melrose
may breach its financial covenants by year-end 2009.  Such
possible breach stems from a materially weaker cash flow
generation expected in 2009 relative to 2008, which is in turn due
to the combination of lower volumes following the shut down of the
Galata field in Bulgaria in order to prepare it as a gas storage
facility and the decline in oil prices, which impacts c. 40% of
the company's production (whilst the remaining 60% has fixed gas
prices).

The negative outlook also reflects Moody's expectation that
Melrose may be unable to maintain its leverage (expressed as net
debt to EBITDAX) below 2.0x over the near term so as to maintain
its B2 CFR.  Although it is not uncommon in this environment for a
commodity-driven business such as Melrose to be in temporary
breach of Moody's ratio guidance for a given rating category,
Moody's caution that the company may continue to demonstrate over
the longer term a higher leverage than is commensurate with the
current B2 CFR in order to fund the material capital programme
associated with its large pipeline of projects, including gas
storage in Bulgaria as well as oil and gas developments in Egypt,
the U.S. and Romania once the Sterling farm-in is completed.

The rating outlook could be stabilized if the company takes steps
(by prioritizing capex or in the form of equity funding, for
example) to improve its financial position beyond 2009 so as to
maintain financial metrics in line with the guidance discussed
above and concurrently addresses covenant concerns in a
sustainable way.

Moody's last rating action on Melrose Resources was on October 23,
2007, when the rating agency assigned a B2 corporate family rating
with stable outlook to the company.

Headquartered in Edinburgh, UK, Melrose Resources plc is a FTSE
250 exploration and production company with operations mostly
located in Egypt, the U.S. and Bulgaria.  At year-end 2008,
Melrose reported proved SPE reserves of 56 million barrels of oil
equivalent.


SETANTA SPORTS: FT Says White Knight Found, ESPN Rules Out Bid
--------------------------------------------------------------
Ben Fenton and Salamnder Davoudi at the Financial Times report
that a company has expressed interest in some or all of Setanta
Sports Holdings Ltd.

The company claimed to be rescuing Setanta was described as a
"very serious organization" which wanted to "set it on a course to
longer-term stability", the FT says citing one person close to the
company.  "It is a very serious approach by a very serious
organization which the board is taking very, very seriously
indeed," the person was quoted by the FT as saying,

According to the FT, it is possible the proposed deal would be a
form of pre-packaged administration in which a takeover is agreed
before Setanta is declared to be in the hands of administrators.

The FT relates another person close to the company said an
emergency loan of GBP10 million (US$16.6 million) had been agreed
with a different partner to settle one-third of a payment due to
the FA Premier League on Friday.  According to the FT, the person
said bridging money for the FAPL had come from a company that was
"an industry partner".

Ainsley Thomson at Dow Jones Newswires meanwhile reports that
Walt-Disney-owned sports network ESPN ruled out buying Setanta
Sports Thursday.  However, ESPN didn't rule out buying soccer
rights from Setanta, Dow Jones notes.

                       Refinancing Talks

Dow Jones discloses Setanta's board continued discussions Thursday
to refinance the business.  According to Dow Jones, Setanta's
founders Leonard Ryan and Michael O'Rourke, who had been planning
a rescue bid for the company, are now considering selling the
company's U.S. and Irish operations, the proceeds of which could
be used to make a GBP30 million payment to England's Premier
League, which is due early next week.  Dow Jones recalls Setanta
failed to make a GBP3 million to the Scottish Premier Legage on
Monday.  Dow Jones says financial services firm Deloitte is set to
step in as administrator if the refinancing talks fail.

                         Subscriptions

In a June 10 report, Dow Jones disclosed that BT PLC suspended new
sign-ups to Setanta via its digital TV service.  The suspension of
BT's Setanta subscription came a day after Setanta itself stopped
taking new subscriptions, Dow Jones said.

As reported in the Troubled Company Reporter-Europe on June 9,
2009, The Sunday Times said Setanta, which has 1.2 million
customers, got into trouble when it won the rights to screen only
23 Premier League fixtures per season from 2010, raising doubts
over its future viability.

Setanta Sports -- http://www.setanta.com/-- is an international
sports broadcaster with operations in Great Britain, Ireland,
Luxembourg, USA, Canada and Australia.  It owns and operates
premium sports TV channels that are made available on a
subscription basis to residential and commercial customers through
satellite, cable, digital terrestrial, broadband and mobile
distribution.


STAYTON COMMERCIAL: Goes Into Receivership
------------------------------------------
Dewsbury Reporter reports that Stayton Commercial Property
Investments Ltd, an arm of the Stayton Group, has gone into
receivership.

The report relates the company, which owns commercial properties
on Westgate, Market Street, Union Street and Church Street,
went into receivership on June 2.  The report says tenants have
been advised to pay their rent to Manchester receiver,
Hacker Young, from now on.

According to the report, a spokesman for Stayton Group said talks
with the company's bankers were ongoing.


TATA STEEL: S&P Keeps 'BB' Rating on GBP3.67 Bil. Senior Debt
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had kept its 'BB'
issue rating on the GBP3.67 billion senior secured debt of Tata
Steel U.K. Ltd. (B+/Negative/B) on CreditWatch, where it was
placed with negative implications on Feb. 5, 2009.

"We have kept the issue rating on CreditWatch pending a review of
S&P's recovery analysis on TSUK.  This review will factor in the
impact on S&P's simulated default scenario, and in turn S&P's
estimate of the stressed enterprise value at default, following:
(1) a recent agreement with banks to amend the covenants on the
company's senior secured debt; (2) the significant deterioration
in the operating environment; and (3) the measures that TSUK
undertakes to manage the currently challenging environment," said
Standard & Poor's credit analyst Yasmin Wirjawan.

The agreement with the banks is in line with S&P's expectation.
The issue rating is two notches above the corporate credit rating
because of the recovery rating of '1', which indicates S&P's
expectation of very high (90%-100%) recovery in the event of a
payment default.

The agreement with lenders has resulted in the testing of
earnings-related covenants to be largely suspended until March
2010.  Testing will resume with significantly higher flexibility
compared with the original covenants.  Under the agreement, parent
Tata Steel Ltd. (BB-/Negative/--) will inject GBP425 million into
TSUK in a phased manner.  TSUK will use about GBP200 million to
make prepayments on its debt.

TSUK is the intermediate parent holding company of U.K.-based
steel manufacturer Corus Group PLC and is a wholly owned
subsidiary of Tata Steel.

S&P expects to resolve the CreditWatch on the senior secured debt
rating within the next 30 days after reviewing the recovery rating
on TSUK in view of the recent agreement with lenders, significant
deterioration in operating conditions, and the measures that TSUK
has undertaken to manage the currently challenging environment.


* DfT Says Metronet Failure Led to Taxpayer Loss of Up to GBP410MM
------------------------------------------------------------------
A June 5 report by the National Audit Office found that the
failure of Metronet a private infrastructure company responsible
for the maintenance and upgrade of sections of the London
Underground has led to an estimated direct loss to the taxpayer of
between 170 million and 410 million.  There has also been an
impact on passengers who have not seen all the improvements that
were promised in the original timescales, though 4.2 billion of
maintenance and upgrades were nevertheless delivered by Metronet
under the public private partnership contracts.

Metronet went into administration in July 2007, predominantly
because its poor corporate governance and leadership meant that it
could not manage its shareholder-dominated supply chain.
Transport for London (TfL) guaranteed 95 per cent of Metronets
borrowing, with the Secretary of State for Transport assuring
Metronets lenders that the Department for Transport (DfT) would
not just stand by should London Underground or TfL be unable to
honour this guarantee.  When Metronet failed, the DfT made a 1.7
billion payment to meet the guarantee so that the running of the
Underground would not be compromised.

It was London Undergrounds responsibility to manage the Metronet
contract to deliver the long overdue improvements to the
Underground but DfT had a responsibility to protect the taxpayer
from any financial liability.  The PPP contracts nevertheless gave
the DfT few formal levers to protect the taxpayer, leaving the DfT
to rely upon other parties, including London Underground, TfL and
Metronets shareholders and lenders.

When these parties did not resolve Metronets problems, and
Metronet failed, the taxpayer was left exposed.  This exposure
crystallized in the early repayment of 1.7 billion to Metronets
lenders, and a loss to the taxpayer equivalent to between 4 per
cent and 10 per cent of the work delivered.  DfT needs to consider
how to reduce future risks to the taxpayer and, with the Mayor of
London, how best to ensure effective and efficient delivery of
improvements and maintenance of the Underground.

The DfT sees TfLs ownership of Metronet as an interim solution
and, as part of a Joint Steering Committee, made recommendations
on a long-term solution to the Secretary of State for Transport
and the Mayor of London.  They are now preparing to take a joint
decision.

The Comptroller and Auditor General said: "The Metronet PPP
contracts to upgrade the Tube left the DfT without effective means
of protecting the taxpayer.  Metronets failure led to a direct
loss to the taxpayer of between 170 million and 410 million.  The
DfTs work with the Mayor of London, TfL and London Underground on
a long term solution will need to improve governance and risk
management in the new arrangements they are intending to put in
place to protect the taxpayer."


* BOOK REVIEW: Crafting Solutions for Troubled Businesses:
              A Disciplined Approach to Diagnosing and
              Confronting Management Challenges
-----------------------------------------------------------------
Authors: Stephen J. Hopkins and S. Douglas Hopkins
Publisher: Beard Books
Hardcover: 314 pages
List price: US$74.95
Review by John F. Wall

So, the first thing to do when dealing with a troubled business is
to find the guilty and lop someone's head off! Don't be so quick
to react, advise co-authors Stephen J. Hopkins and S. Douglas
Hopkins in their thoughtful, well-researched book, Crafting
Solutions for Troubled Businesses.

The father-son team of Steve and Doug Hopkins are principals of
Kestrel Consulting, LLC, a firm they founded in March 2004.  Each
has more than 25 years of experience working with troubled
businesses and providing turnaround advisory and interim
management services.  Steve got his first taste of a troubled
business when, as CFO of an 80-year-old chemical company, Bill
Nightingale of Nightingale & Associates assisted him in taking the
company through a Chapter 11 filing.  The company subsequently
emerged from bankruptcy with payment in full to all creditors.
Steve then joined Nightingale, staying for 23 years and serving
initially as a principal and eventually as president from 1994 to
2000.  Doug began working at Nightingale in 1978 as a part-time
resource for special projects.  After working in this capacity for
10 years, Steve joined Nightingale full time in the late 1980s and
became a principal in 1994.  Both Steve and Doug have served in
various C-level roles in troubled companies, including CEO, CFO,
COO, and CRO.

To write this book, the Hopkinses drew upon their vast experience
in dealing with troubled companies.  They took 100 of the largest
projects they have been involved in and applied a "disciplined
analysis" to diagnose problem situations and produce successful
outcomes.  These projects -- helpfully set apart by shaded boxes -
- demonstrate the authors' theories and methods in dealing with
troubled businesses.  The authors also analyze some well-known
cases like Enron, WorldCom, and Sunbeam to help the reader connect
the dots in a very real sense and use the book for actionable
advice.

The book is divided into five parts: 1) Conceptual Approach and
Key Issues, 2) Managing the Crisis, 3) The Diagnosis Process, 4)
Alternatives and Action Plans, and 5) Lessons Learned in 100
Completed Assignments.  Each part has multiple chapters expanding
on these themes, and each chapter concludes with a recap of what
was discussed.  For speed readers and the time crunched, these
recaps are an excellent way of extracting from the book the
essence of what the authors are advocating.

So what about lopping off that head?  The authors contend that
management's role is much less pivotal than is commonly believed.
The real issue when working with a troubled business is
determining the viability of the business.  To do that, the
underlying causes must be identified at different stages of the
corporate lifecycle.  The authors categorize troubled businesses
as Undisciplined Racehorses, Overburdened Workhorses, and Aging
Mules.  Only through a step-by-step diagnosis can the core
problems be dealt with.

Pursuing a turnaround may not always be a viable and, in fact, in
only one-third of the 100 cases the authors worked on did the
company achieve a true operational turnaround.

Crafting Solutions for Troubled Businesses should be on the must-
read list of anyone involved in dealing with, consulting for, or
operating a troubled business.

John Wall is a Managing Director of NachmanHaysBrownstein, Inc.

                   *********

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 * * *