TCREUR_Public/090619.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 19, 2009, Vol. 10, No. 120

                            Headlines

A U S T R I A

RICH-FINANZ VERMOEGENSBERATUNG: Claims Filing Deadline is July 6
S. B. IMMOBILIEN: Creditors Must File Claims by July 6
S.B. VERMOEGENSBERATUNG: Claims Filing Deadline is July 6
SCHALK CONSULTING: Creditors Must File Claims by July 6


F R A N C E

KLEPIERRE SA: Reaches Refinancing Deal w/ Banks on Debt Covenants
THOMSON SA: Shareholders Vote Against Dissolution


G E R M A N Y

BAUER AG: S&P Changes Outlook to Stable; Affirms 'BB+' Rating
COGNIS GMBH: Moody's Downgrades Corporate Family Rating to 'B3'
HEIDELBERGCEMENT AG: Completes Refinancing of Bank Debt
PORSCHE AUTOMOBIL: Shareholders Support Qatar Investment Talks
PREPS 2005-1: Moody's Downgrades Rating on Class B Notes to 'Ba1'

PROVIDE GEMS: Fitch Affirms Ratings on Class D and E Notes at 'C'
PULS CDO 2006-1: Moody's Junks Ratings on Six Classes of Notes
PULS CDO 2007-1: Moody's Junks Ratings on Two Classes of Notes


G R E E C E

DRYSHIPS INC: Signs Waiver Agreement With DnB NOR for US$86MM Debt


I R E L A N D

ARGON CAPITAL: Moody's Cuts Rating on EUR10.2 Mil Notes to 'Ba3'
CAIRN EURO: S&P Lowers Rating on Class C Notes to 'B'
HOLT FUNDING: S&P Withdraws 'CCC-' Rating on Class A Notes
PRESBYTERIAN MUTUAL: PM to Set Up Task Force to Help Savers
STARTS PLC: S&P Lowers Rating EUR55 Million Notes to 'B'

STATIC LOAN: Moody's Junks Rating on Class E Notes


I T A L Y

* ITALY: OECD Says Banks Need to Further Strengthen Finances
* ITALY: Faces "Sharp" and "Prolonged Recession", OECD Says


K A Z A K H S T A N

ALMATINSKY LIKERO: Creditors Must File Claims by July 3
CENTER DALEM: Creditors Must File Claims by July 3
MBK TRADE: Creditors Must File Claims by July 3
METAMONOLIT SERVICE: Creditors Must File Claims by July 3
TULPAR OJSC: Creditors Must File Claims by July 3

* KAZAKHSTAN: CB Chair Says Banks Need No Additional State Aid


K Y R G Y Z S T A N

MK HOLDING: Creditors Must File Claims by July 10


N E T H E R L A N D S

AZOVSTAL CAPITAL: Moody's Downgrades Bond Rating to 'B3'
CLONDALKIN INDUSTRIES: Moody's Cuts Corp. Family Rating to 'B2'
ROMPETROL GROUP: S&P Downgrades Corporate Credit Rating to 'B'


R U S S I A

DZERZHINSKIY CHEMICAL: Creditors Must File Claims by July 29
INVEST-STROY-KOM LLC: Creditors Must File Claims by July 29
LUMBERING LLC: Court Names F.Voytsik as Insolvency Manager
TOMSK-NEFTE-GAZ-STROY CJSC: Creditors Must File Claims by July 29

* S&P Cuts Counterparty Credit Ratings of 4 Russian Banks to 'B+'


S W E D E N

AUDIODEV AB: Malmo Court Approves Bankruptcy Application
GENERAL MOTORS: Saab's Creditors Approve Debt Writedown


S W I T Z E R L A N D

BIB INFORMATIK: Creditors Must File Claims by June 24
BRS ARCHITEKTUR: Claims Filing Deadline is June 24
FLORENCE HOLDING: Creditors Have Until June 25 to File Claims
SIDEN GMBH: Creditors Have Until June 24 to File Claims


U K R A I N E

BAV-CENTER GROUP: Creditors Must File Claims by June 26
BIMETSTROY LLC: Creditors Must File Claims by June 26
BRIONO GRANT: Creditors Must File Claims by June 26
E-VITA BUILDING: Creditors Must File Claims by June 26
ELLADA-SAVE LLC: Court Starts Bankruptcy Supervision Procedure

KOMMUNALNIK LLC: Creditors Must File Claims by June 26
MARTA LLC: Creditors Must File Claims by June 26
METINVEST BV: Moody's Downgrades Corporate Family Rating to 'B2'
RESMA CJSC: Court Starts Bankruptcy Supervision Procedure
STARLINE LLC: Creditors Must File Claims by June 26

TMM REAL: Fitch Maintains Issuer Default Rating at 'CC'


U N I T E D   K I N G D O M

AQUASCUTUM: In Talks With Alan Lewis Over Potential Takeover Deal
BICKNELLS: Administrators Sold Tipton and Worcester Sites
BIRTHDAYS: Clinton Cards to Repurchase 140 Stores
CHESS II: S&P Lowers Rating on EUR50 Million Notes to 'B'
DAIRY FARMERS: Has 200 Farmers Left to Collect Milk From

GEMINI PLC: Moody's Junks Rating on GBP30 Mil. Class B Notes
LDV: Some Potential Buyers Mull Halting Production in UK
CLARIS LIMITED: Moody's Cuts Rating on EUR5 Mln CDS to 'Ba3'
MODUS VENTURES: Seven Subsidiaries in Administration
NATIONAL EXPRESS: Banks Agree to Provide Addt'l Covenant Headroom

ROYAL HOTEL: Finds New Owner; Exits Administration
SETANTA SPORTS: Premier League Payment Deadline Expires Today
TOWERGATE FINANCIAL: Placed Into Administration
VEDANTA RESOURCES: Moody's Affirms 'Ba1' Corporate Family Rating

* BOOK REVIEW: Ten Cents on the Dollar, Or the Bankruptcy Game


                         *********


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


RICH-FINANZ VERMOEGENSBERATUNG: Claims Filing Deadline is July 6
----------------------------------------------------------------
Creditors of RICH-Finanz Vermoegensberatung GmbH have until
July 6, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 16, 2009 at 11:00 a.m.

For further information, contact the company's administrator:

         Dr. Romana Weber-Wilfert
         Bachgasse 10
         2340 Vienna
         Austria
         Tel: 02236/869291
         Fax: 02236/869580
         E-mail: moedling@snwlaw.at


S. B. IMMOBILIEN: Creditors Must File Claims by July 6
------------------------------------------------------
Creditors of S. B. Immobilien GmbH have until July 6, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 16, 2009 at 10:15 a.m.

For further information, contact the company's administrator:

         Dr. Romana Weber-Wilfert
         Bachgasse 10
         2340 Moedling
         Austria
         Tel: 02236/869 291
         Fax: 02236/869580
         E-mail: moedling@snwlaw.at


S.B. VERMOEGENSBERATUNG: Claims Filing Deadline is July 6
---------------------------------------------------------
Creditors of S.B. Vermögensberatung GmbH have until July 6, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 16, 2009 at 11:30 a.m.

For further information, contact the company's administrator:

         Dr. Romana Weber-Wilfert
         Bachgasse 10
         2340 Moedling
         Austria
         Tel: 02236/869 291
         Fax: 02236/869580
         E-mail: moedling@snwlaw.at


SCHALK CONSULTING: Creditors Must File Claims by July 6
-------------------------------------------------------
Creditors of Schalk Consulting Immobilien und Finanzierung GmbH
have until July 6, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 16, 2009 at 10:45 a.m.

For further information, contact the company's administrator:

         Dr. Romana Weber-Wilfert
         Bachgasse 10
         2340 Moedling
         Austria
         Tel: 02236/869291
         Fax: 02236/869580
         E-mail: moedling@snwlaw.at


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


KLEPIERRE SA: Reaches Refinancing Deal w/ Banks on Debt Covenants
-----------------------------------------------------------------
Sophie Taylor at Reuters reports that Klepierre SA said Tuesday it
had reached a debt refinancing deal with its banks.

Reuters relates Klepierre has secured a new credit facility of
EUR2.4 billion (US$3.3 billion) maturing in 2015.  The company, as
cited by Reuters, said the new line of credit came from French
bank BNP Paribas and will give Klepierre EUR150 million in
additional financial resources.  Reuters discloses the company
said in a statement that in return for longer maturity and easing
on its covenants, Klepierre's average cost of debt will increase
by 25 basis points to between 50 percent and 52 percent, and by 29
basis points to between 52 percent and 55 percent.

To reduce its debt, Klepierre has said it aims to consolidate its
holdings with an ambitious disposal programme, the report notes.
The company, the report states, has been selling assets to boost
cash reserves and regain balance sheet strength since buying last
July Scandinavian rival Steen & Strom.

Klepierre SA -- http://www.klepierre.com-- is a France-based real
estate company focused on the commercial property market,
including shopping centers, retail properties and office
properties.  It owns, leases and manages real estate assets
located in continental Europe.  As of December 31, 2008, shopping
centers accounted for 88.5% of the total value of the Company's
portfolio, while office properties made up 7% of its real estate
holdings.  Klepierre SA operates through its subsidiaries and
dependent companies, including Segece SA, a shopping center
management company active in a number of countries; and Klemurs,
which specializes in the area of commercial real estate in France.
In October 2008, Klepierre SA acquired 56.1% of Steen & Strom, a
shopping center real estate company based in Scandinavia.


THOMSON SA: Shareholders Vote Against Dissolution
-------------------------------------------------
Ruth Bender at Dow Jones Newswires reports that shareholders of
Thomson SA voted Tuesday against dissolving the company, allowing
it to continue operating, even though the group's equity has
declined to less than half of the share capital in 2008.

Dow Jones relates shareholders also approved resolutions that will
pay exceptional payments to former company executives, despite the
group's financial difficulties.  Thomson's current chief
executive, Frederic Rose, was also renewed to lead the company for
another three years, Dow Jones states.

                     Restructuring Proposal

Thomson, Dow Jones discloses, is in talks with creditors to sort
out the repayment of its EUR2.9 billion debt pile.

As reported in the Troubled Company Reporter-Europe on June 17,
2009, the private placement noteholders and lenders under the
syndicated credit facility are now considering the key terms of a
restructuring proposal by Thomson.  The proposal contemplates a
significant reduction of the group's debt through a conversion of
debt into equity, as well as the ability for existing shareholders
to participate in the recapitalization of the company.  On
June 15, 2009, Thomson's senior creditors decided to extend the
waivers in place to July 24, 2009.

On April 30, 2009, the TCR-Europe, citing Reuters, reported that
the company obtained a waiver from its main creditors until
June 16 to restructure its debt.  Citing Mr. Rose, Reuters
disclosed the group's senior creditors include some 20 banks and
30 bondholders, who could have demanded the reimbursement of some
EUR2.9 billion of gross debt from April 30 following the covenant
breach.

                         About Thomson SA

France-based Thomson SA -- http://www.thomson.net/-- provides
technology, services, and systems to Media & Entertainment (M&E)
clients, including content creators, content distributors and
broadcasters.  It has three principal operating divisions:
Services, Systems (previously Systems & Equipment) and Technology.
The remaining activities are regrouped in two additional segments:
Other and Corporate.  The Services Division offers end-to-end
management of video-related services for its customers in the M&E
industries.  Systems division plays a role in supplying hardware
and software technology for the M&E industries in the areas of
production, delivery, management, transmission, and access.
Technology division includes activities, such as corporate
research; Silicon Solutions: Integrated Circuit design and tuners,
and Software & Technology Solutions: video and audio security
solutions, and other technologies.  In December 2008, the Company
sold its digital film equipment product line.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on May 21,
2009, Moody's Investors Service changed to Ca/LD from Ca the
Probability of Default Rating for Thomson S.A.  The outlook on the
ratings remains negative.  This rating action follows Thomson's
failure to repay US$92.5 million private placements due on May 18,
2009 which in Moody's view constitutes a payment default.  This
non-payment is in line with the company's announcement made on
April 28, 2009 stating that it had obtained waivers from senior
creditors until June 16 to continue discussions on its balance
sheet restructuring and that it had agreed with its creditors to
defer the required pay down of its debt during the waiver period.


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


BAUER AG: S&P Changes Outlook to Stable; Affirms 'BB+' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Germany-based engineering company Bauer AG to stable from
positive.  At the same time, S&P affirmed the 'BB+' long-term
corporate credit rating.

"The outlook revision reflects our view that a sharper than
expected contraction of demand, along with deteriorating prospects
for the construction industry is likely to weaken Bauer's credit
measures in the near term to levels more appropriate for the
current rating," said Standard & Poor's credit analyst Izabela
Listowska.

S&P previously predicted a potentially higher rating on consistent
profitability and meaningful and sustainable free operating cash
flow generation through the expected industry downturn.  However,
S&P now believes that Bauer's financial performance and resulting
credit measures will remain within S&P's guidelines for the
existing rating.

Following the significant drop in Bauer's order intake in the
first quarter of 2009 of nearly 30% quarter on quarter, and weak
demand prospects, in particular in the Equipment segment, S&P has
revised S&P's financial base case scenario and now expects more
pronounced sales decline and margin pressure in 2009 and 2010.

The current rating on Bauer assumes a sales reduction of up to 25%
and a drop in EBIT margins of up to 9% until 2010 (from 13% in
2008).  Free operating cash flow generation is not likely to
materially improve during the period because Bauer intends to
pursue its capacity expansion program, at least in 2009, which
will drive high capital expenditures volumes.  Hence, S&P does not
foresee any considerable debt reduction by 2010.

Based on these assumptions, S&P anticipates that credit measures
will weaken from strong 2008 levels, with funds from operations
(FFO) to debt to a minimum of 25% and debt to EBITDA to a maximum
of 3.0x in 2009-2010.  This is still in line with S&P's guidelines
for the 'BB+' rating.  In 2008, adjusted FFO to debt amounted to
about 46% and adjusted debt to EBITDA to 1.8x.

"The stable outlook reflects our view that Bauer's satisfactory
business risk profile, marked by its competitive product offering
and strong geographic reach, will provide some cushion within the
current rating in light of expected operating deterioration in the
near term," said Ms. Listowska.


COGNIS GMBH: Moody's Downgrades Corporate Family Rating to 'B3'
---------------------------------------------------------------
Moody's Investors Services has downgraded the probability of
default and corporate family ratings of Cognis GmbH to B3 from B2.
The outlook is stable.

The downgrade was prompted by a deterioration of the credit
profile of Cognis GmbH over the last twelve months to March 31,
2009 with Debt / EBITDA estimated by Moody's to have reached a
level of around 9.0x and EBITDA / Interest to have dropped to
approximately 1.2x on an LTM Q1 2009 basis (6.0x and 2.2x
respectively at 31st December 2007), metrics which are not
commensurate with Moody's B2 rating category anymore.  The
deterioration in the credit profile of Cognis was linked to a
weakening operating performance on the back of difficult market
conditions in Q4 2008 and Q1 2009.  The agency also notes that
Cognis GmbH has used approximately 20% of the EUR127 million
proceeds (as of  March 31, 2009) from the sale of Oleochemicals
and Pulcra Chemicals to buyback PIKs in open market transactions
thereby upstreaming cash outside of the rated group rather than
repay senior debt which would have helped stabilize the credit
profile of the rated group.  Moody's expects debt and cash flow
metrics to further deteriorate over the next six months at least
as Cognis will face challenging comparatives from previous year
while the issuer should be able to improve operating performance
and cash flow generation on a sequential basis from a likely
bottom reached in Q1 2009 helped by slightly improved demand
patterns and lower raw material costs as all legacy raw materials
will have flown through the supply chain.  Medium term, Moody's
flags that both lauric oil and some of the petrochemicals prices
have risen sharply since bottoming out in the first quarter of the
year, which might pressure the cash flow generation of the group
through higher working capital requirements in the second half of
the year and into fiscal year 2010.  The rating of Cognis remains
strongly supported by the group's sound liquidity profile, the
relative defensiveness of its business portfolio with a clear
focus on consumer and health & nutrition chemicals and the
management's efforts to align the group's cost base to a weaker
operating environment.

The stable outlook assigned to the ratings reflects the agency's
expectation that Cognis should be able to stabilize its operating
performance on a sequential basis supported by easing destocking
patterns throughout the chemicals value chain and its end-
industries.  The agency also expects Cognis to continue focusing
on adjusting its cost base and managing its cash outflows for
working capital and capital expenditures in order to avoid a build
up in debt and to protect its strong liquidity position.  Moody's
will continue to closely monitor the operating performance of
Cognis in the short term.  Failure to stabilize the operating
performance of the group and to control cash consumption in order
to maintain stable debt levels and a strong liquidity position
would lead to further negative pressure on the ratings.  The
agency will also closely survey the group's ability to cover cash
interest expense from reported funds from operations as an
indicator of the group's ability to service its debt.  Failure to
maintain reported FFO / Cash Interest expense sustainably above
2.0x would lead to negative rating pressure.

The liquidity position of Cognis is strong.  The issuer had
EUR241 million of cash & cash equivalents on balance sheet at
March 31, 2009 and access to a largely undrawn EUR250 million
revolver (EUR219 million undrawn at March 31, 2009).  In addition
Cognis faces no major maturities over the next twelve months and
benefits from very substantial headroom under its financial
covenant.  While Moody's expects that operating cash flows might
not cover all capex and working capital requirements over the next
twelve months as demand levels remain subdued and recent increases
in raw material prices will make it difficult for Cognis to
extract further cash inflows from working capital during the
second half of the year Moody's remain confident that the group's
focus on reducing costs and controlling free cash flow generation
should help the issuer protecting its cash and liquidity position
during this period of difficult market conditions.

These ratings of Cognis GmbH were affected by the action:

  -- Corporate Family Rating downgraded to B3;

  -- Probability of Default Rating downgraded to B3;

  -- Senior secured 2014 notes downgraded to Caa2 / LGD 5

  -- Senior secured floating rate notes and loans due 2013
     downgraded to B2 / LGD3

  -- Revolving credit facility downgraded to Ba3 / LGD1

Moody's does not rate senior PIK notes at Cognis Holding GmbH.

The last rating action was on June 13, 2008, when the outlook on
Cognis GmbH was changed to negative from stable.

Cognis GmbH, headquartered in Monheim, Germany, is a global
specialty chemicals producer with leading market positions in
natural-oil based chemicals.  Cognis reported revenues of
EUR3,001 million and a recurring EBITDA of EUR351 million for the
fiscal year ended December 31, 2008.


HEIDELBERGCEMENT AG: Completes Refinancing of Bank Debt
-------------------------------------------------------
HeidelbergCement has completed a comprehensive refinancing of its
existing debts involving more than 50 international lenders.  The
term of the new syndicated loan agreement totalling EUR8.7 billion
runs until December 15, 2011.  Acquisition facilities for the
acquisition of Hanson in 2007 and other bilateral credit lines and
loans have been rolled in under a new facility, and the existing
covenants have been adjusted to a level reflecting the change in
the economic environment.

"With the successful refinancing of our bank debt, we have secured
our financing structure which, coupled with sufficient liquidity ,
will provide us with stable base to confront the extremely
challenging economic environment," commented CEO Dr. Bernd
Scheifele.  Negotiations with the banks were led by CFO Dr. Lorenz
Näger.  "The exceptional economic conditions made the negotiations
very lengthy.  In the end, however, we found a solution that
considers the interests of everyone involved," said Dr. Nager.

With the refinancing behind it, HeidelbergCement is now in a good
position to examine other options to strengthen its balance sheet.
The company is also working consistently to further deleverage.
In addition to strict cost management and significant capital
expenditure reduction, there is a clear focus on cash flow.
HeidelbergCement will also continue to pursue its two to three-
year program of divesting non-strategic business units.

                       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.  The ratings were put on review for
further downgrade.


PORSCHE AUTOMOBIL: Shareholders Support Qatar Investment Talks
--------------------------------------------------------------
Andreas Cremer at Bloomberg News reports that Porsche Automobil
Holding SE's controlling shareholders, the Porsche and Piech
families, said they support talks with Qatar about the transfer of
a stake in the carmaker.

Bloomberg News relates Porsche dismissed a report by the Financial
Times Deutschland that company shareholder Ferdinand Piech raised
doubts about Qatar acquiring a holding as incorrect.

"The family stands united behind the talks with Qatar," Bloomberg
News quoted the company as saying in a statement.

Citing two people familiar with the talks, Bloomberg News
discloses Qatar wants to buy at least 25 percent of Porsche in a
transaction that may be completed by the end of June.  According
to Bloomberg News, the two people said the company may sell a
holding for as much as EUR2.5 billion (US$3.5 billion), as it
seeks to alleviate more than EUR9 billion in debt.

Bloomberg News says an investment would help Porsche lower debt
amassed with the purchase of a majority stake in Volkswagen AG,
Europe's largest carmaker.  Bloomberg News recalls Porsche's net
debt tripled after the company increased its stake in Volkswagen
to 50.8 percent at the beginning of this year from a 42.6 percent
holding in October.

Headquartered in Stuttgart, Germany Porsche Automobil Holding SE
-- http://www.porsche-se.com-- is a holding company engaged in
the car manufacture industry.  The Company's core products are
sports cars and all-terrain vehicles.  The Porsche sports car
range includes the Boxster, the Cayman, the 911 and the Carrera
GT.  The Boxster and the Boxster S are contemporary
reinterpretations of the Company's original roadsters, the 356/1
and the 550 Spyder.  There are several varieties of the 911,
representing the model's continuous evolution.  The Carrera GT has
the race-derived chassis construction and minimum weight.  The
Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo
and Cayenne Turbo S are balanced, four-wheel drive vehicles for
on-road and off-road use.  Porsche Automobil Holding SE also
offers financing services, spare parts and accessories for new and
classic models, as well as an approved used car service.


PREPS 2005-1: Moody's Downgrades Rating on Class B Notes to 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of three
classes of notes each issued by Preps 2005-1 plc.

Preps 2005-1 is a static European mezzanine finance CLO with a
German portfolio.  The transaction has suffered EUR25 million in
defaults and early terminations, although the Principal Deficiency
Ledger has been reduced to zero.  The remaining assets in the
portfolio have also suffered credit deterioration.  On the
positive side, the Class A notes have benefited from reduced time
to maturity and the amortisation of the notes by approximately
EUR32.5 million.

The rating action is the result of the application of revised and
updated key modelling parameter assumptions that Moody's uses to
rate and monitor ratings of CDOs exposed to corporate assets and
which are also being applied in its analysis of SME CDOs.  Moody's
announced the changes to these assumptions in a press release
titled "Moody's updates key assumptions for rating CLOs",
published on February 4, 2009 and "Moody's Updates its Key
Assumptions for Rating Corporate Synthetic CDOs," published on
January 15, 2009.  The revisions affect default probability and
correlation, which are key parameters in Moody's model for rating
CDOs exposed to corporate assets.

In addition, the equivalent Moody's ratings used in Moody's
analysis are obtained through an econometric model called Riskcalc
developed by Moody's KMV, based on financial statements provided
by the issuers on an annual basis.  The results from the Riskcalc
model were first translated to Moody's alpha numeric rating scale
and then, in order to compensate for the absence of credit
indicators such as rating reviews, outlooks and adjustments
factoring in cyclical developments in the economy, a 1 notch
stress was applied.

Furthermore, various stress scenarios were run, including heavily
notching the largest asset in the portfolio, and stressing by one
notch those assets belonging to sectors which were viewed as
particularly vulnerable such as Automobile, Buildings and Real
Estate, Finance, Hotels, Motels, Inns and Gaming etc.

The deal was modeled using CDOROM 2.5 to create a loss
distribution that was then used as an input in a cash flow model.

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

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

  -- Moody's Approach to Rating CDOs of SMEs in Europe (February
     2007)

Preps 2005-1 Limited Partnership

  -- Class A-1, Downgraded to Aa1; previously on March 13, 2009
     Aaa Placed Under Review for Possible Downgrade

  -- Class A-2, Downgraded to Aa1; previously on March 13, 2009
     Aaa Placed Under Review for Possible Downgrade

  -- Class B, Downgraded to Ba1; previously on March 13, 2009 A1
     Placed Under Review for Possible Downgrade


PROVIDE GEMS: Fitch Affirms Ratings on Class D and E Notes at 'C'
-----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Provide Gems 2002-1
plc's notes, a synthetic German RMBS transaction.  The agency has
also revised the Outlook on the class A+ notes to Stable from
Negative.  The rating actions reflect a better-than-expected
performance of the deal and are:

  -- Class A+ (ISIN XS0145700398) affirmed at 'AA+'; Outlook
     revised to Stable from Negative; assigned a Loss Severity
     Rating of 'LS-2'

  -- Class A (ISIN XS0145700471) affirmed at 'AA-'; Outlook
     Negative; assigned a Loss Severity Rating of 'LS-4'

  -- Class B (ISIN XS0145701289) affirmed at 'BBB-'; Outlook
     Negative; assigned a Loss Severity Rating of 'LS-4'

  -- Class C (ISIN XS0145701792) affirmed at 'B-'; Recovery Rating
     'RR1'

  -- Class D (ISIN XS0145701875) affirmed at 'C'; Recovery Rating
     'RR6'

  -- Class E (ISIN XS0145702170) affirmed at 'C'; Recovery Rating
     'RR6'

According to the latest investor report for June 2009, the level
of losses being realized in the transaction has decreased over a
12 month period.  However, further losses are being allocated to
the class E notes.  As a result, this tranche currently has 21.8%
of losses allocated to it, and according to Fitch's expectations
the losses will eventually be allocated to the class D notes,
which is why the rating of 'C' for both classes has been affirmed.

After a long period of decreasing arrears, the volume of loans in
arrears by more than three months, including credit events,
increased in February and May 2009, bringing the outstanding
balance of such loans to 15.95% of the pool.  The majority,
approximately 85%, of these loans have been classified as credit
events by the issuer.  Historically, prior to allocating losses
resulting from liquidation of loans, a significant portion of
credit events were repurchased by the issuer, as such loans did
not meet the eligibility criteria for the transaction.  For this
reason, for notes rated below the current rating of the
originator, Eurohypo AG ('A'/'F1'/Rating Watch Negative), Fitch
has assumed that a percentage of the current EUR56.3m worth of
credit events would be repurchased, which is why the ratings of
tranches rated below 'A' have been affirmed.  In rating scenarios
above 'A', a 100% default assumption has been applied.

The revision of the class A+ notes' Outlook to Stable from
Negative follows the strong build up in credit enhancement of this
tranche, which is a result of the sequential amortization of the
deal.  The current performance of the pool indicates that this
class is unlikely to see negative rating action.  Should the
performance of the deal deteriorate at a faster pace than seen to
date, Fitch may take further rating actions.


PULS CDO 2006-1: Moody's Junks Ratings on Six Classes of Notes
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of ten
classes of notes issued by PULS CDO 2006-1 plc.

The transaction is a static cash CDO on a portfolio of 47 senior
and subordinated SME bonds.  Approximately 94% of the portfolio
are made up of German SMEs.

The rating actions follow the watchlisting of this transaction on
March 13, 2009 and reflect the credit deterioration of the
underlying portfolio as well as the application of revised and
updated key modelling parameter assumptions that Moody's uses to
rate and monitor ratings of CDOs exposed to corporate assets and
which are also being applied in its analysis of SME CDOs.  Moody's
announced the changes to these assumptions in two press releases
titled "Moody's updates key assumptions for rating CLOs",
published on February 4, 2009 and "Moody's Updates its Key
Assumptions for Rating Corporate Synthetic CDOs," published on
January 15, 2009.  The revisions affect default probability and
correlation, which are key parameters in Moody's model for rating
CDOs exposed to corporate assets.

The transaction has suffered EUR31.5 million of defaults and, in
addition, EUR5 million are potentially impaired (together approx.
15% of the portfolio).  KMV RiskCalc credit estimates, which are
used to rate the issuers in this transaction, are indicating
deterioration across the portfolio.  Moody's anticipates
significant further deterioration across the portfolio due to the
exposure to several industrial sectors which are expected to come
under severe credit stress.  Deterioration in the portfolio is
also indicated by the watchlist maintained and reported by the
portfolio manager who monitors the individual issuers in the
portfolio.  22% of the portfolio are currently on this watchlist.
In its analysis Moody's has considered the effect of potentially
depressed recovery rates in the current environment.  On the
positive side, the senior classes will benefit from payments used
to pay down the principal deficiency ledger.

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

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

  -- Moody's Approach to Rating CDOs of SMEs in Europe (February
     2007)

  -- Refining the ABS SME Approach (March 2009)

  -- Moody's RISKCALC for Private Companies: The German Model
     (November 2001)

The transaction was modeled using CDOROM 2.5 to create a loss
distribution that was then used as an input in a cash flow model.
Recovery assumptions of 0% were made for subordinated debt in this
portfolio.

In addition, the equivalent Moody's ratings used in Moody's
analysis are obtained through an econometric model called Riskcalc
developed by Moodys KMV, based on financial statements provided by
the issuers on an annual basis.  The results from the Riskcalc
model were first translated to Moody's alpha numeric rating scale
and then, in order to compensate for the absence of credit
indicators such as rating reviews, outlooks and adjustments
factoring in cyclical developments in the economy, a 1 notch
stress was applied.

Furthermore, various stress scenarios were run, including heavily
notching the largest asset in the portfolio, and stressing by one
notch those assets belonging to sectors which were viewed as
particularly vulnerable such as Automobile, Buildings and Real
Estate, Finance, Hotels, Motels, Inns and Gaming etc.

The rating actions are:

PULS CDO 2006-1 plc:

  -- Class A1, Downgraded to A1; previously on 13 March 2009 Aaa
     Placed Under Review for Possible Downgrade

  -- Class A2A, Downgraded to Aa1; previously on 29 May 2007
     Assigned Aaa

  -- Class A2B, Downgraded to Baa1; previously on 13 March 2009
     Aaa Placed Under Review for Possible Downgrade

  -- Class B, Downgraded to Ba3; previously on 13 March 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- Class C1, Downgraded to Caa1; previously on 13 March 2009 A2
     Placed Under Review for Possible Downgrade

  -- Class C2, Downgraded to Caa3; previously on 13 March 2009 A3
     Placed Under Review for Possible Downgrade

  -- Class D, Downgraded to Ca; previously on 13 March 2009 Baa3
     Placed Under Review for Possible Downgrade

  -- Class E1, Downgraded to Ca; previously on 13 March 2009 Ba3
     Placed Under Review for Possible Downgrade

  -- Class E2, Downgraded to Ca; previously on 13 March 2009 Ba3
     Placed Under Review for Possible Downgrade

  -- Combo P, Downgraded to Ca; previously on 13 March 2009 Baa2
     Placed Under Review for Possible Downgrade


PULS CDO 2007-1: Moody's Junks Ratings on Two Classes of Notes
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of seven
classes of notes issued by PULS CDO 2007-1 Limited.

The transaction is a static cash CDO on a portfolio of 61 senior
and subordinated SME bonds.  Approximately 95% of the portfolio
are made up of German SMEs.

The rating actions follow the watchlisting of this transaction on
March 13, 2009 and reflect the credit deterioration of the
underlying portfolio as well as the application of revised and
updated key modelling parameter assumptions that Moody's uses to
rate and monitor ratings of CDOs exposed to corporate assets and
which are also being applied in its analysis of SME CDOs.  Moody's
announced the changes to these assumptions in two press releases
titled "Moody's updates key assumptions for rating CLOs",
published on February 4, 2009 and "Moody's Updates its Key
Assumptions for Rating Corporate Synthetic CDOs," published on
January 15, 2009.  The revisions affect default probability and
correlation, which are key parameters in Moody's model for rating
CDOs exposed to corporate assets.

The transaction has suffered EUR37 million (approx. 13% of the
portfolio) of defaults.  KMV RiskCalc credit estimates, which are
used to rate the issuers in this transaction, are indicating
deterioration across the portfolio.  Moody's anticipates
significant further deterioration across the portfolio due to the
exposure to several industrial sectors which are expected to come
under severe credit stress.  Deterioration in the portfolio is
also indicated by the watchlist maintained and reported by the
portfolio manager who monitors the individual issuers in the
portfolio.  32% of the portfolio are currently on this watchlist.
In its analysis Moody's has considered the effect of potentially
depressed recovery rates in the current environment.  On the
positive side, the senior classes will benefit from payments used
to cure par coverage tests.

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

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

  -- Moody's Approach to Rating CDOs of SMEs in Europe (February
     2007)

  -- Refining the ABS SME Approach (March 2009)

  -- Moody's RISKCALC for Private Companies: The German Model
     (November 2001)

The transaction was modeled using CDOROM 2.5 to create a loss
distribution that was then used as an input in a cash flow model.
Recovery assumptions of 0% were made for subordinated debt in this
portfolio.

In addition, the equivalent Moody's ratings used in Moody's
analysis are obtained through an econometric model called Riskcalc
developed by Moodys KMV, based on financial statements provided by
the issuers on an annual basis.  The results from the Riskcalc
model were first translated to Moody's alpha numeric rating scale
and then, in order to compensate for the absence of credit
indicators such as rating reviews, outlooks and adjustments
factoring in cyclical developments in the economy, a 1 notch
stress was applied.

Furthermore, various stress scenarios were run, including heavily
notching the largest asset in the portfolio, and stressing by one
notch those assets belonging to sectors which were viewed as
particularly vulnerable such as Automobile, Buildings and Real
Estate, Finance, Hotels, Motels, Inns and Gaming etc.

The rating actions are:

PULS CDO 2007-1 Limited:

  -- Class A1, Downgraded to Aa3; previously on 13 March 2009 Aaa
     Placed Under Review for Possible Downgrade

  -- Class A2A, Downgraded to Aa1; previously on 29 May 2007
     Assigned Aaa

  -- Class A2B, Downgraded to A2; previously on 13 March 2009 Aa1
     Placed Under Review for Possible Downgrade

  -- Class B, Downgraded to Baa3; previously on 13 March 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- Class C, Downgraded to B1; previously on 13 March 2009 A2
     Placed Under Review for Possible Downgrade

  -- Class D, Downgraded to Caa1; previously on 13 March 2009 Baa2
     Placed Under Review for Possible Downgrade

  -- Class E, Downgraded to Caa3; previously on 13 March 2009 Ba2
     Placed Under Review for Possible Downgrade


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


DRYSHIPS INC: Signs Waiver Agreement With DnB NOR for US$86MM Debt
------------------------------------------------------------------
DryShips Inc. has signed an agreement with DnB NOR on waiver terms
for US$86 million of its outstanding debt.

No other details were provided.

George Economou, Chairman and Chief Executive Officer, commented:
"We are pleased to have signed the agreement with DnB NOR for this
facility which covers two of our drybulk vessels.  We continue to
deliver on the covenant waivers and assess acquisition
opportunities to further grow the company."

On June 9, DryShips said it has signed an agreement on waiver
terms with the Deutsche Bank AG, led syndicate on a US$1.125
billion facility.  This facility covers drillships hull numbers
1865 and 1866 currently under construction at Samsung Heavy
Industries.

                        About DryShips Inc.

DryShips Inc. -- http://www.dryships.com/-- based in Greece, is
an owner and operator of drybulk carriers that operate worldwide.
DryShips owns a fleet of 41 drybulk carriers comprising 7
Capesize, 28 Panamax, 2 Supramax and 4 newbuilding Drybulk vessels
with a combined deadweight tonnage of over 3.6 million tons, 2
ultra deep water semisubmersible drilling rigs and 4 ultra deep
water newbuilding drillships.  DryShips Inc.'s common stock is
listed on the NASDAQ Global Market where trades under the symbol
"DRYS."


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


ARGON CAPITAL: Moody's Cuts Rating on EUR10.2 Mil Notes to 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of one class
of notes issued by Argon Capital PLC and one CDS entered into by
Merrill Lynch

The transactions are two synthetic resecuritizations of high grade
European CMBS.  The rating action is a response to the rating
migration of some of the assets in the underlying portfolio.  In
particular one entity has been downgraded several notches.  This
affects the rating of the notes which do not have subordination
and the rating of the CDS which has 1.70% subordination.

Moody's initially analysed and continues to monitor this
transaction using primarily the methodology and its supplements
for ABS CDOs as described in Moody's Special Reports below:

  -- Moody's Approach to Rating SF CDO (March 2009)

The rating actions are:

Argon Capital PLC:

(1) Series 77 EUR10,200,000 Limited Recourse Secured Variable Rate
Credit-Linked Notes due 2047

  -- Current Rating: Ba3

  -- Prior Rating: Baa2, on review for possible downgrade

  -- Prior Rating Date: 9 June 2009, Baa2 placed under review for
     possible downgrade

(2) EUR30,000,000 Lagonda CDO CDS entered into Merrill Lynch

  -- Current Rating: Baa1

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

  -- Prior Rating Date: 9 June 2009, A1 placed under review for
     possible downgrade


CAIRN EURO: S&P Lowers Rating on Class C Notes to 'B'
-----------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class A1S to C notes issued by Cairn EURO ABS CDO I PLC, a
cash flow collateralized debt obligation of asset-backed
securities (ABS) deal.  At the same time, S&P removed the class B
and C notes from CreditWatch negative and affirmed the ratings on
the class X notes.

These rating actions follow S&P's assessment that the credit
quality of the assets in the transaction's underlying portfolio
has deteriorated.  According to the information provided to us by
the trustee, the class A3, B and C overcollateralization ratios
currently breach their respective trigger levels (as set out in
the transaction documents).  S&P understands that this breach of
the OC triggers is due to adjustments to the principal balance of
assets rated 'BB+' and lower, and to the balance of assets
purchased at a price lower than 85% of par.

In S&P's opinion, the deterioration in the credit quality of the
portfolio has led to an increase in scenario default rates.  At
the same time, S&P's cash flow analysis indicates that breakeven
default rates for all rated classes have improved.  This
improvement in BDRs is, in S&P's view, partially due to an
increase in the portfolio's par value.  However, the improvement
of the BDRs is not sufficient to compensate for the increase in
SDRs.  As a result, the existing ratings on the class A1J to C
notes are, in S&P's opinion, no longer consistent with the
available credit enhancement and S&P has therefore lowered the
ratings on these notes.

Cairn EURO ABS CDO's portfolio comprises primarily European prime
and subprime residential mortgage-backed securities, commercial
mortgage-backed securities, and to a lesser extent CDOs and other
ABS.  Assets on CreditWatch negative account for 28% of the total
portfolio.  In S&P's analysis, in line with the application of
S&P's revised assumptions for the treatment of structured finance
assets that have ratings on CreditWatch negative and are currently
held within CDOs, S&P lowered the ratings on assets on CreditWatch
negative by three notches.

                           Ratings List

                    CAIRN EURO ABS CDO I PLC
               EUR354.75 Million Floating-Rate Notes

                         Ratings Lowered

                                    Rating
                                    ------
            Class             To                  From
            -----             --                  ----
            A1S               AA                  AAA
            A1J               AA                  AAA
            A2                A+                  AA
            A3                BBB                 A-

      Ratings Lowered and Removed From Creditwatch Negative

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

                         Ratings Affirmed

                     Class            Rating
                     -----            ------
                     X                AAA


HOLT FUNDING: S&P Withdraws 'CCC-' Rating on Class A Notes
----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC-' credit
rating on the class A notes issued by Holt Funding 2008-1 Ltd. at
the issuer's request.

Holt Funding 2008-1 closed on May 12, 2008, and is a static cash
flow transaction collateralized by a pool comprising corporate
loans.


PRESBYTERIAN MUTUAL: PM to Set Up Task Force to Help Savers
-----------------------------------------------------------
Sam Lister at Belfast Telegraph reports that British Prime
Minister Gordon Brown is to set up a task force to investigate the
plight of the people who have deposited savings in the
Presbyterian Mutual Society.

Belfast Telegraph relates in an hour long meeting with Peter
Robinson and Martin McGuinness the Prime Minister set out his
plans to convene a group made up of Downing Street, Treasury,
Assembly and Northern Ireland Office representatives to look at
what help can be given to the thousands of depositors.

Belfast Telegraph recalls PMS collapsed in November wiping out the
funds of 9,500 members of the society.

                             Buy-out

Citing a progress report from PMS administrators, Belfast
Telegraph discloses two parties are interested in a buy-out of the
society.

According to Belfast Telegraph, the potential sticking point for
any buyer could be the level of toxic debt within the mutual.
Belfast Telegraph states there have been no exact figures on what
it might be, but the government could be asked to provide some
type of guarantee for a buyer.  Belfast Telegraph says a buy-out
would provide savers with access to their savings which have been
frozen since administration.

BBC News notes failure to find a buyer, or some other way out,
would trigger a vote among savers in September.  BBC states unless
a vote changes the rules, the bigger investor will have first call
on what money can be raised from a sale of PMS assets like
property in Scotland, leaving thousands of smaller investors with
very little or even nothing.


STARTS PLC: S&P Lowers Rating EUR55 Million Notes to 'B'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit rating on the series 37 notes
issued by Chess II Ltd.  S&P also lowered its rating on the series
2007-11 notes issued by STARTS (Ireland) PLC.

These rating actions follow credit events and S&P's assessment of
the deterioration in the credit quality of the assets in the
underlying reference portfolios.  These factors have, in S&P's
opinion, increased the probability that the portfolio loss
triggers for these tranches will be breached.  Accordingly, S&P
has lowered the ratings to a level S&P believes is consistent with
the tranches' loss probability.

S&P's ratings on loss-based transactions factor in the credit risk
associated with the reference portfolio.  Losses on the underlying
reference portfolio may lead to a breach of the loss trigger,
which may cause the transaction to unwind.  S&P assesses the
likelihood of breaching the attachment point as well as the
probability of breaching a loss trigger when surveilling a rating
on a loss-based transaction.

                           Ratings List


       Rating Lowered and Removed From Creditwatch Negative

                          Chess II Ltd.
  EUR50 Million Secured Leveraged Super Senior Credit-Linked Notes
                            Series 37

                         Ratings
                         -------
                 To                     From
                 --                     ----
                 B                      BB-/Watch Neg

                         Rating Lowered

                      STARTS (Ireland) PLC
  EUR55 Million Leveraged Super Senior Credit-Linked Notes Series
                            2007-11

                         Ratings
                         -------
                 To                     From
                 --                     ----
                 B                      B+


STATIC LOAN: Moody's Junks Rating on Class E Notes
--------------------------------------------------
Moody's Investors Service has downgraded its ratings of five
classes of notes issued by Static Loan Funding 2007-1 Limited.

The transaction is a static cash flow CDO referencing mainly
European senior secured loans.

According to Moody's, the rating actions result from 1) the effect
asset defaults have had on the structure, as well as general
credit deterioration in the underlying portfolio and 2) the
application of Moody's revised assumptions for default
probability, the treatment of publicly rated assets on review for
possible downgrade/upgrade or with a negative outlook, and the
calculation of the Diversity Score.

In addition, Moody's relied on credit estimates for approximately
65% of the underlying referenced assets.  As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of one quarter of one Moody's Metric was applied to each
of these ratings.  The resulting weighted average rating factor
for this transaction is approximately 3600 after taking into
account the revised assumptions described above.

The revised assumptions that have been applied to corporate
credits in the underlying portfolio are described in the press
release dated February 4, 2009, titled "Moody's updates key
assumptions for rating CLOs."

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

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

The rating actions are:

Static Loan Funding 2007-1 Limited:

  -- Class A Senior Secured Floating Rate Notes due 2017,
     Downgraded to Aa1; previously on 31 Jan 2008 assigned Aaa

  -- Class B Senior Secured Floating Rate Notes due 2017,
     Downgraded to A2; previously on 4 Mar 2009 Aa2 Placed Under
     Review for Possible Downgrade

  -- Class C Deferrable Senior Secured Floating Rate Notes due
     2017, Downgraded to Baa3; previously on 4 Mar 2009 A3 Placed
     Under Review for Possible Downgrade

  -- Class D Deferrable Senior Secured Floating Rate Notes due
     2017, Downgraded to B1; previously on 4 Mar 2009 Baa3 Placed
     Under Review for Possible Downgrade

  -- Class E Deferrable Senior Secured Floating Rate Notes due
     2017, Downgraded to Caa2; previously on 4 Mar 2009 Ba3 Placed
     Under Review for Possible Downgrade


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


* ITALY: OECD Says Banks Need to Further Strengthen Finances
------------------------------------------------------------
Alessandra Migliaccio at Bloomberg News reports that the
Organization for Economic Cooperation and Development said
Wednesday Italian banks may need to raise more money to keep their
finances strong enough to weather the financial crisis.

"Efforts to find ways to recapitalize the banks should continue,
preferably through private finance, domestic or foreign, but not
excluding the provision of public capital," Bloomberg News quoted
OECD as saying in an economic survey on Italy published Wednesday.

According to Bloomberg News, Italy's biggest banks are boosting
their finances through a bailout plan that allows them to sell
convertible bonds to the government.  However, the OECD, as cited
by Bloomberg News, said the cash raised may not be sufficient if
the economic downturn worsens.  The slowdown makes it harder for
banks to raise funds from retail clients and reduces borrowers'
ability to repay loans, Bloomberg News discloses citing the OECD.


* ITALY: Faces "Sharp" and "Prolonged Recession", OECD Says
-----------------------------------------------------------
Lorenzo Totaro at Bloomberg News reports that the Organization for
Economic Cooperation and Development said Italy's economy faces a
"sharp" and possibly "prolonged recession" as the global financial
crisis saps demand and the recovery outlook remains uncertain.

Bloomberg News relates the Paris- based OECD said Wednesday in a
survey of the Italian economy, Italy's economy will shrink 5.3
percent in 2009 as compared with the OECD’s March 31 forecast of a
4.3 percent contraction.


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


ALMATINSKY LIKERO: Creditors Must File Claims by July 3
-------------------------------------------------------
Creditors of JSC Almatinsky Likero Vodochny Zavod have until
July 3, 2009, to submit proofs of claim to:

         Baizakov Str. 273b
         Almaty
         Kazakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on April 10, 2009.

The Court is located at:

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


CENTER DALEM: Creditors Must File Claims by July 3
--------------------------------------------------
Creditors of LLP Center Dalem Inter have until July 3, 2009, to
submit proofs of claim to:

         Bogenbai batyr Str. 52
         Almaty
         Kazakhstan
         Tel: 8 702 108 00-34

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on April 6, 2009, after
finding it insolvent.

The Court is located at:

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


MBK TRADE: Creditors Must File Claims by July 3
-----------------------------------------------
Creditors of LLP MBK Trade have until July 3, 2009, to submit
proofs of claim to:

         Bogenbai batyr Str. 52
         Almaty
         Kazakhstan
         Tel: 8 702 108 00-34

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on April 6, 2009, after
finding it insolvent.

The Court is located at:

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


METAMONOLIT SERVICE: Creditors Must File Claims by July 3
---------------------------------------------------------
Creditors of LLP Metamonolit Service have until July 3, 2009, to
submit proofs of claim to:

         Jabaev Str. 101-2
         Taldykorgan
         Almaty
         Kazakhstan
         Tel: 8(3282) 27-24-65, 8 701 232 12-75

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 27, 2009,
after finding it insolvent.

The Court is located at:

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


TULPAR OJSC: Creditors Must File Claims by July 3
-------------------------------------------------
Creditors of OJSC Tulpar have until July 3, 2009, to submit proofs
of claim to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Brusilovsky Str. 60
         Petropavlovsk
         North Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of North Kazakhstan
commenced bankruptcy proceedings against the company on
April 13, 2009.


* KAZAKHSTAN: CB Chair Says Banks Need No Additional State Aid
---------------------------------------------------------------
Agnes Lovasz at Bloomberg News reports that Kazakhstan central
bank Chairman Grigori Marchenko said the country's banks, three of
which have defaulted on their debt payments, need "no additional"
state aid this year.

Bloomberg News relates Mr. Marchenko said in an interview in
London Wednesday that the country has spent US$18 billion on
stimulus measures and bank aid, including about US$5 billion on
recapitalizing lenders and US$6 billion given to them to lend to
businesses.

"Right now with our reserves at US$43 billion, we don't see any
merit in borrowing from the IMF," Bloomberg News quoted
Mr. Marchenko as saying.

According to Bloomberg News, the crisis in Kazakhstan is a legacy
of banks borrowing abroad as the economy soared and failing to
repay when credit dried up.  Bloomberg News recalls Almaty-based
BTA was the first of three Kazakh banks to fail within a span of
six weeks, followed by Alliance Bank, Kazakhstan's fourth-largest
lender, and a smaller rival, Astana Finance, owned in part by the
government.


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


MK HOLDING: Creditors Must File Claims by July 10
-------------------------------------------------
LLC MK Holding is currently undergoing liquidation.  Creditors
have until July 10, 2009, to submit proofs of claim to:

         Ahunbaev Str. 130a
         Bishkek
         Kyrgyzstan


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


AZOVSTAL CAPITAL: Moody's Downgrades Bond Rating to 'B3'
--------------------------------------------------------
Moody's Investors Service has downgraded Metinvest B.V.'s B1
corporate family rating to B2, its Aa3.ua national scale rating to
A2.ua and Azovstal Capital's B2 bond rating to B3.  The outlook on
all ratings is stable.

The rating action concludes the rating review which was initiated
on May 12, 2009.

The downgrade was prompted by the weak overall economic
environment which also has negative effects on the steel industry.
Although Metinvest still performs better than most of its peers
its balance sheet structure and leverage ratios are expected to
weaken in 2009 sufficiently to warrant a downgrade.  In addition
the company's short term liquidity situation is relatively weak
which -combined with the current difficulties of financial
institutions worldwide and the pay-out for the United Coal
acquisition -- has resulted in an increasing dependence of
Metinvest on the willingness of its banks to continue to provide
refinancing to its upcoming debt maturities.  In addition,
negative rating pressure stemmed from the heightened challenge for
Metinvest to remain within the required thresholds for financial
covenants in Moody's opinion.

The downgrade also reflects the increased risks for a company
operating in the worsening economic and political environment of
the Ukraine, which is currently rated at B2 with a negative
outlook.

The rating, however, also takes into account (i) Metinvest's
comparably healthy capital structure, (ii) the positive
performance compared to other steel producers, and (iii) the fact
that Metinvest is currently predominantly benefiting from the
strong depreciation of its local currency which translates into
lower cost, also taking into account its own domestic iron ore
reserves.  At the same time Metinvest is selling its products in
US$-- hence benefiting from its low cost base.  Together with a
relatively low overall debt level this translates into debt and
leverage ratios which are superior to many of its peers.

The consideration of the recent acquisition of US coal mining
company United Coal was paid to some extent with existing cash
balances. This transaction helps Metinvest to become and remain
self sufficient in its coking coal requirements over the
foreseeable future.

Since Metinvest's products are mostly sold on a spot basis the
future results of the company are very difficult to predict and
could vary significantly very much depending on the state of the
steel markets.  In addition, should the Ukrainian currency start
to appreciate to levels which have been seen until mid 2008 and at
the same time the iron ore prices for its peers be reduced could
have a severely negative effect on the company's performance.
Therefore, the rating also incorporates potential volatility in
the company's results and leverage ratios.

The stable outlook reflects Moody's expectation that Metinvest
continues to have access to bank refinancing and will manage to
improve the headroom under its covenant tests.

Downward pressure could be exerted on the rating as a result of
significantly higher leverage caused by an increase in the
absolute level of debt, combined with lower cash flow generation
leading to a CFO-dividends/debt ratio below the mid twenties in
2010 and debt/EBITDA sustainably above 2.5x, stemming either from
very negative free cash flows or debt-financed acquisitions or
shareholder friendly actions, such as significant dividend
payments to the parent.

Downgrades:

Issuer: Azovstal Capital B.V.

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3
     from B2

Issuer: Metinvest B.V.

  -- Probability of Default Rating, Downgraded to B2 from B1

  -- Corporate Family Rating, Downgraded to a range of B2 to A2.ua
     from a range of B1 to Aa3.ua

Outlook Actions:

Issuer: Azovstal Capital B.V.

  -- Outlook, Changed To Stable From Rating Under Review

Issuer: Metinvest B.V.

  -- Outlook, Changed To Stable From Rating Under Review

Moody's last rating action on Metinvest was to place the ratings
on review for possible downgrade on May 12, 2009.

Metinvest B.V., a company set up under Dutch law, but with major
operations in Ukraine is the largest steel and iron ore producer
of the Ukraine.  In 2008 the company generated revenues of US$13.3
billion and operating profit of US$4 billion.  Metinvest is 75%
owned by System Capital Management, an investment holding company
in the Ukraine.  25% (blocking stake) of Metinvest's shares are
owned by Smart Group based in the Ukraine.


CLONDALKIN INDUSTRIES: Moody's Cuts Corp. Family Rating to 'B2'
---------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and the probability of default rating of Clondalkin
Industries BV to B2 from B1.  The Ba3 rating on the company's
EUR300 million senior secured notes due 2013 and on its
US$150 million senior secured notes due 2013 have been lowered to
B1 from Ba3 and the rating on the EUR170 million senior unsecured
notes due 2014 was downgraded to Caa1 from B3.  The outlook was
changed to stable from negative.

Rainer Neidnig, lead analyst for Clondalkin commented: "The
downgrade reflects the recent weakening in Clondalkin's earnings
in Q4/2008 and Q1/2009 compared to prior year levels as a result
of the recessionary environment and reduced demand.  Although the
earnings decline has been limited in its magnitude, Moody's no
longer expect the previously anticipated improvements in the
company's credit metrics to materialize in 2009.  The stable
outlook reflects Moody's expectation that earnings should
stabilize over 2009 which, together with a focused working capital
management and reduced capital expenditures, should enable
Clondalkin to generate positive free cash flow also in the current
year.  Moreover, the B2 rating is based on Moody's expectation
that Clondalkin can gradually reduce leverage beyond 2009 on the
back of further positive free cash flow generation"

While Moody's recognizes that the recent volume contraction is
partially a result of de-stocking of customers' inventory levels,
Moody's anticipates that underlying demand in the company's end
markets is likely to remain below historical levels due to the
bleak macroeconomic environment.  Moody's expects that this will
prevent Clondalkin to improve its credit metrics in line with
prior expectations incorporated in the previous B1 rating.  This
was the major consideration for the downgrade to B2.  At the same
time the current rating is based on the expectation that
Clondalkin will be able to gradually reduce leverage in the
intermediate term though at a slower pace than previously built in
the rating.

The rating remains supported by Clondalkin's strong business
profile, especially (i) its good substrate diversity as major raw
materials include plastics, paper and board as well as metals,
(ii) its strong market position in several niche markets with
solid global diversification and (iii) its continued high level of
asset efficiency.  In addition, the rating takes comfort from the
adequate liquidity position and no major debt repayments before
2013.  Moody's also notes positively that the company has managed
to remain free cash flow positive over the past years despite
extensive capex spending and challenges from volatile raw material
prices.

The rating however, also reflects the company's relatively weak
financial metrics and still high absolute debt levels.  Despite
positive free cash flow generation over the past years, leverage
in terms of Debt/EBITDA remained high at about 6.7x as of 12/2008,
a result of high acquisition activity and the impact from the
current recession starting in the second half of 2008.  In this
context Moody's also cautions that further rating pressure could
arise, should Clondalkin not be able to generate at least break-
even free cash flow in 2009 or should financial ratios deteriorate
below 2008 levels.  Moreover, the current rating assumes a gradual
deleverage after 2009 to levels notably below 6x (Debt/EBITDA).

Downgrades:

Issuer: Clondalkin Acquisition BV

  -- Senior Secured Regular Bond/Debenture, Downgraded to B1 from
     Ba3

Issuer: Clondalkin Industries B.V.

  -- Probability of Default Rating, Downgraded to B2 from B1

  -- Corporate Family Rating, Downgraded to B2 from B1

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1
     from B3

Upgrades:

Issuer: Clondalkin Acquisition BV

  -- Senior Secured Regular Bond/Debenture, Upgraded to LGD3, 38%
     from LGD3, 40%

Issuer: Clondalkin Industries B.V.

  -- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD5,
     89% from LGD6, 90%

Outlook Actions:

Issuer: Clondalkin Acquisition BV

  -- Outlook, Changed To Stable From Negative

Issuer: Clondalkin Industries B.V.

  -- Outlook, Changed To Stable From Negative

The last rating action was implemented on December 15, 2008, when
the outlook on the B1 corporate family rating was changed to
negative from stable.

Clondalkin is one of Europe's leading converters for a number of
niche packaging products.  The broad range of flexible packaging
applications includes lids and seals for dairy product containers,
flower sleeves, agricultural-product bags, paper and foil-paper
liners for the tobacco industry in addition to specialist products
that range from folding cartons, labels and leaflets to paper bags
and sacks for end customers in the pharmaceutical, cosmetics,
healthcare and consumer-goods industries.  In fiscal year 2008,
the company recorded sales of EUR877 million, which were generated
in Europe (72%) and North America (28%).  Clondalkin Industries
B.V. which is owned by Warburg Pincus Funds and management is
domiciled in Amsterdam, Netherlands.


ROMPETROL GROUP: S&P Downgrades Corporate Credit Rating to 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term corporate credit rating on Rompetrol Group N.V. to 'B'
from 'B+' and placed it on CreditWatch with negative implications.

"The downgrade and CreditWatch placement of the Rompetrol reflect
S&P's concerns regarding the ability and flexibility of 75%
shareholder, Kazakhstan-based KazMunayGas to provide timely
liquidity support to Rompetrol," said Standard & Poor's credit
analyst Elad Jelasko.  JSC NC KazMunayGas (KMG) is rated
BBB-/Watch Neg/--.

The ratings on Rompetrol continue to depend largely on support
from its parent KMG, as Rompetrol's stand-alone credit quality of
'CCC+' remains vulnerable.  At the same time, S&P's confidence of
extraordinary parent support has decreased recently: As a result
S&P now gives the rating only two notches uplift to factor in
extraordinary parent support, rather than three notches
previously.  The uplift for parent support remains based on the
sizable initial amount invested by KMG and further company support
provided since then in the form of shareholder loans and extended
payment terms for crude oil shipments.

S&P believes Rompetrol is facing various challenges in 2009.
These include a harsher Romanian and refining environment, a very
weak liquidity position and the need to refinance maturing short-
term bank debt and finance its US$90 million capital expenditure
program in 2009, as well as the conversion of the hybrid, as per
its public strategy.  S&P thinks resolving these will depend on
some degree of parent support.

"We aim to review the CreditWatch status by the end of July 2009,
after S&P has finalized our assessment of KMG's likelihood of
timely liquidity support to Rompetrol, as well as analyzed
Rompetrol's stand-alone credit quality," said Mr. Jelasko.
Depending on this assessment, a lowering of the long-term rating
by one or more notches is possible.


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


DZERZHINSKIY CHEMICAL: Creditors Must File Claims by July 29
------------------------------------------------------------
The Arbitration Court of Nizhegorodskaya commenced bankruptcy
proceedings against LLC Dzerzhinskiy Chemical Plant (TIN
5249077610) after finding the company insolvent.  The case is
docketed under Case No. ?43–5977/2009, 33–56.

Creditors have until July 29, 2009, to submit proofs of claims to:

         V. Talanov
         Insolvency Manager
         Revolyutsii Sq. 7a
         603002 Nizhny Novgorod
         Russia

The Debtor can be reached at:

         LLC Dzerzhinskiy Chemical Plant
         Lermontova Str. 20
         Dzerzhinsk
         6060002 Nizhegorodskaya
         Russia


INVEST-STROY-KOM LLC: Creditors Must File Claims by July 29
-----------------------------------------------------------
Creditors of LLC Invest-Stroy-Kom (TIN 5053049792, PSRN
1065053029271) (Construction) have until July 29, 2009, to submit
proofs of claims to:

         I. Grigoryeva
         Insolvency Manager
         Post User Box 166
         603000 Nizhny Novgorod
         Russia

The Arbitration Court of Moskovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?41–21168/08.

The Debtor can be reached at:

         LLC Invest-Stroy-Kom
         Krasnaya Str. 42
         Elektrostal
         Russia


LUMBERING LLC: Court Names F.Voytsik as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Tomskaya appointed F. Voytsik as
insolvency manager for LLC Lumbering (TIN 7012004605, PSRN
1047000377500).  The case is docketed under Case No. ?67–2018/09.
He can be reached at:

         Office 207
         Nakhimova Str. 13/1
         634034 Tomsk
         Russia

The Debtor can be reached at:

         LLC Lumbering
         Lebedeva Str. 78-30
         634000 Tomsk
         Russia


TOMSK-NEFTE-GAZ-STROY CJSC: Creditors Must File Claims by July 29
-----------------------------------------------------------------
The Arbitration Court of Tomskaya commenced bankruptcy proceedings
against CJSC Tomsk-Nefte-Gaz-Stroy (TIN 7017095525, PSRN
1047000140208) (Construction) after finding the company insolvent.
The case is docketed under Case No. ?67–4056/08.

Creditors have until July 29, 2009, to submit proofs of claims to:

         M. Nesterov
         Insolvency Manager
         Office 10
         Krasnoarmeyskaya Str. 50a
         650010 Kemerovo
         Russia


The Debtor can be reached at:

         CJSC Tomsk-Nefte-Gaz-Stroy
         Yeniseyskaya Str. 37
         Tomsk
         634021 Tomskaya
         Russia


* S&P Cuts Counterparty Credit Ratings of 4 Russian Banks to 'B+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that following a review
this week of the asset quality of banks based in the Russian
Federation (foreign currency BBB/Negative/A-3, local currency
BBB+/Negative/A-2), it has taken negative rating actions on 11
entities.

S&P has lowered the long-term counterparty credit ratings on:

  -- Raiffeisenbank ZAO to 'BBB-' from 'BBB', and revised the
     outlook to stable from negative;

  -- ZAO UniCredit Bank to 'BBB-' from 'BBB'; the outlook is
     still negative;

  -- Bank URALSIB (OJSC) to 'B+' from 'BB-'; the outlook is still
     negative; and

  -- Promsvyazbank OJSC to 'B+' from 'BB-', and S&P placed the
     long-term rating on CreditWatch with negative implications.

S&P has also placed on CreditWatch with negative implications:
Commercial Bank Petrocommerce (OJSC), OJSC Alfa-Bank.,
Gazprombank, Ural Bank for Reconstruction and Development, Rosbank
OJSC, and Bank Vozrozhdenie.

For Surgutneftegasbank, S&P revised the outlook to negative from
stable; at the same time, S&P affirmed the B+ long-term rating.

These rating actions follow a review of the Russian banking
sector, taking into account the impact of Standard & Poor's credit
loss assumptions for the Russian banking sector.  They are also in
line with S&P's opinions about negative trends in the sector since
second-half 2008.  S&P's credit loss assumptions reflect S&P's
growing concerns about banks' weakening asset quality and their
limited ability to absorb growing nonperforming loans and related
provisioning needs, due to the sharp economic downturn in Russia.
S&P considers that the deterioration in the banks' loan portfolios
is materially pressurizing earnings and capitalization.

S&P's analysis of industry fundamentals, with a focus on asset
quality, earnings, and capitalization, which factors in S&P's
assumptions about credit costs in the three-year period from 2009
through 2011, suggests the likely deterioration of the credit and
financial standing of Russian banks, as S&P sees the
creditworthiness of the Russian banking system gravitating toward
the 'B' rating category.  The creditworthiness of the banks
subject to S&P's negative rating actions is, in S&P's opinion,
more vulnerable to this deterioration.

In S&P's opinion, the creditworthiness of the four banks S&P has
downgraded has deteriorated beyond the levels S&P previously
anticipated.  In particular, the rating actions reflect their
mounting asset quality problems and lower loss absorption
capacity.

The CreditWatch placements with negative implications on seven
other banks identify institutions that S&P believes have at least
a one-in-two likelihood of a one- or two-notch downgrade.

The outlook revision to negative from stable on Surgutneftegasbank
indicates that the downgrade pressure is less imminent for the
bank.

"As a result of S&P's assumptions about credit losses and how they
will affect earnings and capital, in the next few weeks S&P plan
to review our ratings on the banks placed on CreditWatch
negative," said Standard & Poor's credit analyst Ekaterina
Trofimova.

"At the same time, S&P will seek clarification from these banks
about their intentions to bolster their capacity to absorb the
higher levels of asset quality problems that S&P envisage--
particularly their plans to improve earnings and to raise high-
quality Tier 1 capital," added Ms. Trofimova.

The CreditWatch placements will not necessarily result in
downgrades and S&P will determine how to resolve them on a
company-specific basis.  S&P will consider each bank's financial
profile, capitalization, and the losses S&P expects to emanate
from each loan portfolio.  Because S&P's base scenario assumptions
are not based on full-fledged earnings forecasts, but rather on
the potential for increased loan losses, S&P will also assess
other factors that could affect earnings.  For banks where a
downgrade is not warranted following this review, but longer term
downgrade potential exists, S&P may assign a negative outlook.

                          Ratings List

   Downgrade/CreditWatch Action/Outlook Revision/Affirmation

                         OJSC Alfa-Bank

                                 To                 From
                                 --                 ----
  Counterparty credit rating     BB-/Watch Neg/B    BB-/Stable/B
  Russia national scale          ruAA-/Watch Neg/-- ruAA-/--/-

               Commercial Bank Petrocommerce (OJSC)

                                 To                 From
                                 --                 ----
  Counterparty credit rating     B+/Watch Neg/B     B+/Negative/B
  Russia national scale          ruA/Watch Neg/--   ruA/--/--

                           Gazprombank

                                To                 From
                                --                 ----
  Counterparty credit rating    BB+/Watch Neg/B     BB+/Negative/B
  Russia national scale         ruAA+/Watch Neg/--  ruAA+/--/--

                           Rosbank OJSC

                                To                 From
                                --                 ----
  Counterparty credit rating    BB+/Watch Neg/B     BB+/Negative/B
  Russia national scale         ruAA+/Watch Neg/--  ruAA+/--/--

                        Bank Vozrozhdenie

                                To                 From
                                --                 ----
  Counterparty credit rating    BB-/Watch Neg/B     BB-/Negative/B
  Russia national scale         ruAA-/Watch Neg/--  ruAA-/--/--

          Ural Bank for Reconstruction and Development

                                To                 From
                                --                 ----
  Counterparty credit rating    B-/Watch Neg/C      B-/Negative/C
  Russia national scale         ruBBB-/Watch Neg/-- ruBBB-/--/--

                        Promsvyazbank OJSC

                                To                 From
                                --                 ----
  Counterparty credit rating    B+/Watch Neg/B      BB-/Negative/B

                        ZAO UniCredit Bank

                              To                 From
                              --                 ----
  Counterparty credit rating  BBB-/Negative/A-3   BBB/Negative/A-3

                        Raiffeisenbank ZAO

                              To                 From
                              --                 ----
  Counterparty credit rating  BBB-/Stable/A-3     BBB/Negative/A-3
  Russia national scale          ruAAA/--/--         ruAAA/--/--

                        Bank URALSIB (OJSC)

                               To                 From
                               --                 ----
  Counterparty credit rating   B+/Negative/B       BB-/Negative/B

                        Surgutneftegasbank

                                To                 From
                                --                 ----
  Counterparty credit rating    B+/Negative/B       B+/Stable/B

       NB: This list does not include all ratings affected.


===========
S W E D E N
===========


AUDIODEV AB: Malmo Court Approves Bankruptcy Application
--------------------------------------------------------
The district court of Malmo approved AudidoDev AB's bankruptcy
application on June 15.  The court appointed Leif Ljungholm as
receiver.

AudioDev's board on June 15 decided to file for bankruptcy after
the largest share holder of the company, Briban Invest, holding
58% of the shares, declined to participate in an issue of new
shares.  The board said it explored the possibilities of issuing
new shares as a consequence of the company's liquidity situation
and the very low demand in the market.  The bankruptcy does not
include the subsidiaries in Germany, the US and the affiliated
company in Hong-Kong.

                      About AudioDev

AudioDev AB -- http://www.audiodev.com-- is a Sweden-based
manufacturer of signal test equipment for quality control of
optical media such as compact discs (CDs) and digital versatile
discs (DVDs).  The Company is engaged in the development of blue-
ray discs (BD) and high density (HD) DVDs.  AudioDev's product
portfolio includes three brands, ETA, CATS and Go!.  AudioDev is
operational internationally, with the largest markets being in the
Europe, North America, China, Hong Kong and Japan.  Net sales in
2008 were SEK116 million, with the largest markets being in the
US, Asia and Europe.  AudioDev has been listed on the NASDAQ OMX
Stockholm exchange since September 2000.


GENERAL MOTORS: Saab's Creditors Approve Debt Writedown
-------------------------------------------------------
Gustav Sandstrom at Dow Jones Newswires reports that Saab
Automobile AB's creditors Wednesday approved the Swedish auto
maker's proposal to settle its debts by paying 25% of about
SEK10.5 billion (US$1.34 billion) it originally owed.

Saab, which entered bankruptcy protection in February, has more
than 600 creditors, including auto suppliers and the Swedish
government, Dow Jones discloses.

Dow Jones relates court secretary Ingrid Lund at Vanersborg
District Court in Sweden, which is handling the Saab case, said
that all creditors apart from the Swedish Tax Agency had approved
the plan to write down the company's debts.  Ms. Lund, as cited by
Dow Jones, said the proposal gained approval from more than 75% of
the creditors and of creditors representing at least 75% of the
total debt, as required.

According to Dow Jones, Saab had expected the plan to be approved
because its U.S. parent company General Motors, which supported
the proposal, held over 90% of its debt.

                          Sale

On June 18, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Koenigsegg Automotive AB is to
acquire Saab.  Bloomberg News related General Motors spokesman
Chris Preuss said by telephone Tuesday that the sale is tied to a
US$600 million loan by the European Investment Bank that's backed
by the Swedish government.  Mr. Preuss, as cited by Bloomberg
News, said under Koenigsegg, Saab will return production of the
larger 9-5 model to its main factory in Trollhaettan from
Ruesselsheim in Germany.

                       Loan Guarantees

According to Bloomberg News, the deal with Koenigsegg may help
Saab, which is also under protection from creditors, gain support
from the Swedish government.  Bloomberg News disclosed Swedish
Industry Ministry State Secretary Joeran Haegglund said on
June 11 that the government is "well prepared" to discuss loan
guarantees with Saab's new owner.  Bloomberg News said according
to Koenigsegg spokeswoman Halldora von Koenigsegg, the wife of
founder Christian von Koenigsegg, discussions are continuing on
the loan and financial details.

                           About Saab

Headquartered in Trollhaettan, Sweden, Saab Automobile Unit AB --
http://www.saab.com-- is a wholly owned subsidiary of General
Motors.  With the financially troubled GM wanting to cut Saab
loose by 2010, Saab filed for bankruptcy protection in early 2009
and asked the Swedish government for help in making it an
independent car company again.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  In 2007, nearly
9.37 million GM cars and trucks were sold globally under 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.

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.

As of March 31, 2009, GM had US$82.2 billion in total assets and
US$172.8 billion in total liabilities, resulting in a US$90.5
billion stockholders' deficit.

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the Chapter 11
restructuring proceedings commenced by General Motors Corporation
and its affiliates.  (http://bankrupt.com/newsstand/or
215/945-7000)


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


BIB INFORMATIK: Creditors Must File Claims by June 24
-----------------------------------------------------
Creditors of BIB Informatik Beratung GmbH are requested to file
their proofs of claim by June 24, 2009, to:

         Herr Karl Bucher
         Bursthalde 26
         5611 Wohlen-Anglikon
         Switzerland

The company is currently undergoing liquidation in Wohlen AG.  The
decision about liquidation was accepted at the extraordinary
shareholders' meeting held on April 16, 2009.


BRS ARCHITEKTUR: Claims Filing Deadline is June 24
--------------------------------------------------
Creditors of BRS Architektur/Innenarchitektur Rolf Bolliger GmbH
are requested to file their proofs of claim by June 24, 2009, to:

         Rolf Bolliger
         Liquidator
         Storchenhof 20
         5044 Schlossrued
         Switzerland

The company is currently undergoing liquidation in Schlossrued.
The decision about liquidation was accepted at the shareholders'
meeting held on April 13, 2009.


FLORENCE HOLDING: Creditors Have Until June 25 to File Claims
-------------------------------------------------------------
Creditors of Florence Holding GmbH are requested to file their
proofs of claim by June 25, 2009, to:

         Herr Bruno Schelbert
         Liquidator
         Baarerstrasse 53
         6304 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
general meeting held on May 6, 2009.


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

         Sinan Yagiz
         Grosswiesenstrasse 166
         8051 Zurich
         Switzerland

The company is currently undergoing liquidation in Illnau-
Effretikon.  The decision about liquidation was accepted at a
shareholders' meeting held on Dec. 21, 2007.


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


BAV-CENTER GROUP: Creditors Must File Claims by June 26
-------------------------------------------------------
Creditors of LLC Bav-Center Group (code EDRPOU 35532517) have
until June 26, 2009, to submit proofs of claim to:

         LLC Tiburon
         Insolvency Manager
         Obolonsky Avenue 23-A
         04205 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 14, 2009.  The case is docketed under
Case No. 44/215-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Bav-Center Group
         Office 2
         L. Pervomaysky str. 11
         01133 Kiev
         Ukraine


BIMETSTROY LLC: Creditors Must File Claims by June 26
-----------------------------------------------------
Creditors of LLC Bimetstroy (code EDRPOU 34772699) have until
June 26, 2009, to submit proofs of claim to:

         T. Rudenko
         Insolvency Manager
         Office 104
         Lazurnaya Str. 50
         Nikolayev
         Ukraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on April 28, 2009.  The case is docketed under
Case No. 5/111/09.

The Court is located at:

         The Economic Court of Nikolayev
         Admiralskaya Str. 22-a
         54009 Nikolayev
         Ukraine

The Debtor can be reached at:

         LLC Bimetstroy
         Office 92
         Kitoboyev Str. 4
         Nikolayev
         Ukraine


BRIONO GRANT: Creditors Must File Claims by June 26
---------------------------------------------------
Creditors of LLC Briono Grant (code EDRPOU 35918840) have until
June 26, 2009, to submit proofs of claim to:

         LLC Tiburon
         Insolvency Manager
         Obolonsky Avenue 23-A
         04205 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 14, 2009.  The case is docketed under
Case No. 44/216-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 Briono Grant
         Ribalskaya Str. 13
         01011 Kiev
         Ukraine


E-VITA BUILDING: Creditors Must File Claims by June 26
------------------------------------------------------
Creditors of LLC Firm E-Vita Building-Ltd (code EDRPOU 23907027)
have until June 26, 2009, to submit proofs of claim to:

         State Tax Inspection in Zmiyev District
         Insolvency Manager
         Lenin Str. 10-a
         Zmiyev
         63404 Kharkov
         Ukraine

The Economic Court of Kharkov region commenced bankruptcy
proceedings against the company on Feb. 27, 2009.  The case is
docketed under Case No. B-50/05-09.

The Court is located at:

         The Economic Court of Kharkov
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Debtor can be reached at:

         LLC Firm E-Vita Building-Ltd
         Vodogonnaya Str. 1-A
         Zmiyev
         63401 Kharkov
         Ukraine


ELLADA-SAVE LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Economic Court of Sevastopol commenced bankruptcy supervision
procedure on LLC Ellada-Save (code EDRPOU 30825521).

The Insolvency Manager is:

         M. Gorlo
         Office 202
         Gagarin Avenue 46
         61140 Kharkov
         Ukraine

The Court is located at:

         The Economic Court of Sevastopol
         Pavlichenko Street 5
         99011 Sevastopol
         AR Krym
         Ukraine

The Debtor can be reached at:

         LLC Ellada-Save
         Pervomayskaya Str. 10
         Kacha
         Sevastopol
         99804 AR Krym
         Ukraine


KOMMUNALNIK LLC: Creditors Must File Claims by June 26
------------------------------------------------------
Creditors of LLC Football Club Kommunalnik (code EDRPOU 35079526)
have until June 26, 2009, to submit proofs of claim to:

         A. Prosolupov
         Insolvency Manager
         Ushakov Str. 9a
         91048 Lugansk
         Ukraine

The Economic Court of Lugansk region commenced bankruptcy
proceedings against the company on April 6, 2009.  The case is
docketed under Case No. 12/11b.

The Court is located at:

         The Economic Court of Lugansk
         Heroes of GPW Square 3-a
         91000 Lugansk
         Ukraine

The Debtor can be reached at:

         LLC Football Club Kommunalnik
         Office 2,3,4,1
         Sverdlov Str. 57
         Lugansk
         Ukraine


MARTA LLC: Creditors Must File Claims by June 26
------------------------------------------------
Creditors of LLC Marta (code EDRPOU 30539591) have until June 26,
2009 to submit proofs of claim to:

         State tax inspection in Borispol district of Kiev
         Insolvency Manager
          Golovaty Str. 4
          Borispol
          08302 Kiev
          Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on March 11, 2009.  The case is docketed under
Case No. B11/033-09.

The Court is located at:

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

The Debtor can be reached at:

         LLC Marta
         Lenin Str. 5
         Mirnoye
         Borispol District
         08361 Kiev
         Ukraine


METINVEST BV: Moody's Downgrades Corporate Family Rating to 'B2'
----------------------------------------------------------------
Moody's Investors Service has downgraded Metinvest B.V.'s B1
corporate family rating to B2, its Aa3.ua national scale rating to
A2.ua and Azovstal Capital's B2 bond rating to B3.  The outlook on
all ratings is stable.

The rating action concludes the rating review which was initiated
on May 12, 2009.

The downgrade was prompted by the weak overall economic
environment which also has negative effects on the steel industry.
Although Metinvest still performs better than most of its peers
its balance sheet structure and leverage ratios are expected to
weaken in 2009 sufficiently to warrant a downgrade.  In addition
the company's short term liquidity situation is relatively weak
which -combined with the current difficulties of financial
institutions worldwide and the pay-out for the United Coal
acquisition -- has resulted in an increasing dependence of
Metinvest on the willingness of its banks to continue to provide
refinancing to its upcoming debt maturities.  In addition,
negative rating pressure stemmed from the heightened challenge for
Metinvest to remain within the required thresholds for financial
covenants in Moody's opinion.

The downgrade also reflects the increased risks for a company
operating in the worsening economic and political environment of
the Ukraine, which is currently rated at B2 with a negative
outlook.

The rating, however, also takes into account (i) Metinvest's
comparably healthy capital structure, (ii) the positive
performance compared to other steel producers, and (iii) the fact
that Metinvest is currently predominantly benefiting from the
strong depreciation of its local currency which translates into
lower cost, also taking into account its own domestic iron ore
reserves.  At the same time Metinvest is selling its products in
US$-- hence benefiting from its low cost base.  Together with a
relatively low overall debt level this translates into debt and
leverage ratios which are superior to many of its peers.

The consideration of the recent acquisition of US coal mining
company United Coal was paid to some extent with existing cash
balances. This transaction helps Metinvest to become and remain
self sufficient in its coking coal requirements over the
foreseeable future.

Since Metinvest's products are mostly sold on a spot basis the
future results of the company are very difficult to predict and
could vary significantly very much depending on the state of the
steel markets.  In addition, should the Ukrainian currency start
to appreciate to levels which have been seen until mid 2008 and at
the same time the iron ore prices for its peers be reduced could
have a severely negative effect on the company's performance.
Therefore, the rating also incorporates potential volatility in
the company's results and leverage ratios.

The stable outlook reflects Moody's expectation that Metinvest
continues to have access to bank refinancing and will manage to
improve the headroom under its covenant tests.

Downward pressure could be exerted on the rating as a result of
significantly higher leverage caused by an increase in the
absolute level of debt, combined with lower cash flow generation
leading to a CFO-dividends/debt ratio below the mid twenties in
2010 and debt/EBITDA sustainably above 2.5x, stemming either from
very negative free cash flows or debt-financed acquisitions or
shareholder friendly actions, such as significant dividend
payments to the parent.

Downgrades:

Issuer: Azovstal Capital B.V.

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3
     from B2

Issuer: Metinvest B.V.

  -- Probability of Default Rating, Downgraded to B2 from B1

  -- Corporate Family Rating, Downgraded to a range of B2 to A2.ua
     from a range of B1 to Aa3.ua

Outlook Actions:

Issuer: Azovstal Capital B.V.

  -- Outlook, Changed To Stable From Rating Under Review

Issuer: Metinvest B.V.

  -- Outlook, Changed To Stable From Rating Under Review

Moody's last rating action on Metinvest was to place the ratings
on review for possible downgrade on May 12, 2009.

Metinvest B.V., a company set up under Dutch law, but with major
operations in Ukraine is the largest steel and iron ore producer
of the Ukraine.  In 2008 the company generated revenues of US$13.3
billion and operating profit of US$4 billion.  Metinvest is 75%
owned by System Capital Management, an investment holding company
in the Ukraine.  25% (blocking stake) of Metinvest's shares are
owned by Smart Group based in the Ukraine.


RESMA CJSC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------
The Economic Court of Zaporozhye commenced bankruptcy supervision
procedure on CJSC Resma (code EDRPOU 04643812).

The Insolvency Manager is:

         V. Mischenko
         Office 62
         40 Years of Soviet Ukraine Str. 45-A
         69037 Zaporozhye
         Ukraine

The Court is located at:

         The Economic Court of Zaporozhye region
         Shaumian str. 4
         69600 Zaporozhye
         Ukraine

The Debtor can be reached at:

         CJSC Resma
         Skvortsov Str. 245
         69009 Zaporozhye
         Ukraine


STARLINE LLC: Creditors Must File Claims by June 26
---------------------------------------------------
Creditors of LLC Company Starline (code EDRPOU 35689806) have
until June 26, 2009, to submit proofs of claim to:

         LLC Safor-dor
         Insolvency Manager
         Ofiice 43
         M. Grushevsky Str. 28/2
         01021 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 14, 2009.  The case is docketed under
Case No. 44/214-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Company Starline
         Office 2
         L. Pervomaysky Str. 11
         01133 Kiev
         Ukraine


TMM REAL: Fitch Maintains Issuer Default Rating at 'CC'
-------------------------------------------------------
Fitch Ratings is maintaining Ukraine-based TMM Real Estate
Development plc's Long-term foreign and local currency Issuer
Default ratings of 'CC' and National Long-term rating of 'B(ukr)'
on Rating Watch Negative.  The ratings were originally placed on
RWN on December 2, 2008.  The RWN continues to reflect acute
concerns about TMM's weak liquidity and the poor conditions
currently prevailing in the Ukrainian residential property market.

TMM's liquidity continues to be constrained by a lack of back-up
liquidity (approximately US$27 million of cash and committed
undrawn credit facilities at end-May 2009) relative to its short
term debt maturities of US$24 million and Fitch forecasted
negative free cash flow of about US$44 million over the next 12
months.  This leaves TMM with a liquidity score (sources of
liquidity relative to uses of liquidity over the next 12 months)
of only 0.4x, indicating that the company may be unable to repay
or refinance its upcoming debt obligations.  The difficult
financing environment and the ongoing downturn in the Ukrainian
residential market will continue to compound these problems.

Nevertheless, TMM has made some progress towards improving its
liquidity over the past six months, most notably obtaining a
UAH310 million (US$39 million) credit facility in February 2009
with JSC State Savings Bank of Ukraine (Oschadbank) (rated
'B'/Negative Outlook), a state- owned Ukrainian bank.  Proceeds
from this loan may be sufficient to allow TMM to meet its debt
maturities in 2009 (UAH185 million, or US$24 million equivalent).
Fitch views the willingness of a state entity to lend to TMM as a
mildly positive indicator of the company's ability to access local
financing.

However, the majority of these loan proceeds have yet to be
received by TMM, with payments scheduled to be staggered across
Q209 and Q309.  Given Oschadbank's weak credit rating and the
fragile Ukrainian banking environment, there remains a risk that
TMM will not receive all of the promised funds, which in turn
would make it difficult for the company to repay its 2009
maturities.

Even if the Oschadbank funds are received as planned, Fitch
remains cautious about TMM's ability to meet its 2009 maturities
as continued weak market conditions could lead to significant
negative operating cash flows.  Management had indicated that
sales to April 2009 are 45% below 2008 levels in Hryvnia terms
(and thus even lower in US$ terms given the Hryvnia's
depreciation), which will weaken cash flows.

Fitch now expects to resolve the RWN by end-September 2009. A
downgrade of the ratings could be triggered by either TMM's actual
failure to repay its debt maturities, or evidence of an imminent
default.  A failure to receive funds from Oschadbank as expected
by late-September would also lead to a downgrade.  Conversely, the
ratings could be affirmed at current levels if the company creates
sufficient liquidity reserves to cover its short-term debt
maturities and forecast negative free cash flow over at least the
next 12 months.  A removal of the RWN status would also be
contingent on receipt of TMM's audited 2008 annual accounts, which
have yet to be published.

TMM, incorporated in Cyprus, is the holding company of a
vertically integrated development and construction group operating
in Ukraine -- mainly in Kiev, with presence in Kharkov and Crimea.
In FY07, TMM had revenues of US$61m and EBITDAR of US$9 million.
As at May 31, 2008, TMM had total debt of approximately US$81.6
million, of which 71% was secured (mainly with real estate
assets).  The loan portfolio includes a domestic bond issue of
UAH181 million (equivalent of US$23 million) due October 2009.


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


AQUASCUTUM: In Talks With Alan Lewis Over Potential Takeover Deal
-----------------------------------------------------------------
Elizabeth Rigby and Andrea Felsted at the Financial Times report
that Alan Lewis, the owner and chairman of Crombie, has made an
approach to Aquascutum's Japanese owner Renown to acquire the
label's UK business, including its manufacturing operation.

The FT relates Hartley Group, Mr. Lewis's investment company, made
the approach to Renown and its financial advisers Daiwa Securities
last week in a move that offers hope to more than 340 staff,
including 120 based at Aquascutum's Corby factory, in the UK.  The
FT recalls the entire workforce was put on consultation this month
when a firm offer from YGM Trading, its Hong Kong-based suitor,
failed to materialize.

Mr. Lewis told the FT Monday talks were at a very early stage.

"We are certainly looking with interest at what opportunities
Renown’s divestment of Aquascutum might provide for Crombie,"
the FT quoted Mr. Lewis as saying.  "The possibility of a deal
would of course depend on a more detailed analysis of Aquascutum's
UK and European assets and liabilities.  Brand-wise Crombie and
Aquascutum would certainly be a natural fit, due to our similar
heritage and ethos."

The Scotsman discloses Aquascutum's chief executive, Kim Winser,
left last month after talks over a management buy-out collapsed.

Aquascutum -- http://www.aquascutum.com/-- is a British luxury
clothing manufacturer and retailer.


BICKNELLS: Administrators Sold Tipton and Worcester Sites
---------------------------------------------------------
David Blenkarn and Greg Palfrey, from the accountancy and business
advisory group, were appointed joint administrators to Vauxhall
dealership Bicknells, based at Tipton, Worcester and Malvern,
after it ran into financial difficulties.

The business assets at Tipton, near Dudley, were sold to the
Brindley Group, which is the oldest family-owned motor group in
the Midlands and was founded in 1931.

Around 50 of the original staff have been employed and the
dealership reopened on June 15.  The group has 10 other
dealerships.

Robin Brindley, chairman of the Brindley Group, said: "We are
delighted to expand further with Vauxhall.  The Bicknells site has
been a major Vauxhall dealership for over 30 years and we plan to
restore it to its former glory.  We look forward to welcoming all
customers back to experience our legendary service and care.

Mr. Blenkarn said: "I am delighted that the Brindley Group has
secured the Vauxhall franchise and will be maintaining the high
standards of customer service for Vauxhall sales and servicing.

"In a separate sale, the business assets of the Worcester site
were sold to Gloucester-based Baylis, one of the largest motoring
groups in the west of England, selling Vauxhall, Chevrolet and
Saab marques."

Smith & Williamson is an independent professional and financial
services group employing over 1,500 people.  The group is a
leading provider of investment management, financial advisory and
accountancy services to private clients, professional practices
and mid-to-large corporates.  The group operates from offices in
London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford,
Maidstone, North London, Salisbury, Southampton, and Worcester.


BIRTHDAYS: Clinton Cards to Repurchase 140 Stores
-------------------------------------------------
James Thompson at The Independent reports that Clinton Cards plc
is to buy back 140 of Birthdays' 332 stores after it placed its
loss-making subsidiary into administration last month.

According to the report, Clinton's bid to repurchase the Birthdays
stores could save hundreds of jobs and keep the brand on the high
street.  The report recalls Birthdays had 2,100 staff when it
appointed the restructuring specialist Zolfo Cooper as
administrator on May 21.  The report relates in a statement on
May 21, Clinton Cards said that after a deterioration in trading
conditions since last autumn, about half of its Birthdays stores
were loss-making and that a solvent restructuring of the business
was not viable.

Birthdays -- http://www.birthdays.co.uk-- sells cards, gifts and
gift wrap.  The company has about 2,200 employees, including head
office, store and distribution staff.


CHESS II: S&P Lowers Rating on EUR50 Million Notes to 'B'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit rating on the series 37 notes
issued by Chess II Ltd.  S&P also lowered its rating on the series
2007-11 notes issued by STARTS (Ireland) PLC.

These rating actions follow credit events and S&P's assessment of
the deterioration in the credit quality of the assets in the
underlying reference portfolios.  These factors have, in S&P's
opinion, increased the probability that the portfolio loss
triggers for these tranches will be breached.  Accordingly, S&P
has lowered the ratings to a level S&P believes is consistent with
the tranches' loss probability.

S&P's ratings on loss-based transactions factor in the credit risk
associated with the reference portfolio.  Losses on the underlying
reference portfolio may lead to a breach of the loss trigger,
which may cause the transaction to unwind.  S&P assesses the
likelihood of breaching the attachment point as well as the
probability of breaching a loss trigger when surveilling a rating
on a loss-based transaction.

                           Ratings List


       Rating Lowered and Removed From Creditwatch Negative

                          Chess II Ltd.
  EUR50 Million Secured Leveraged Super Senior Credit-Linked Notes
                            Series 37

                         Ratings
                         -------
                 To                     From
                 --                     ----
                 B                      BB-/Watch Neg

                         Rating Lowered

                      STARTS (Ireland) PLC
  EUR55 Million Leveraged Super Senior Credit-Linked Notes Series
                            2007-11

                         Ratings
                         -------
                 To                     From
                 --                     ----
                 B                      B+


DAIRY FARMERS: Has 200 Farmers Left to Collect Milk From
--------------------------------------------------------
PricewaterhouseCoopers LLP, receivers and managers of Dairy
Farmers of Britain (DFB), the Milk cooperative that went into
receivership two weeks ago, now only have 200 of the 1800 farmer
members left to collect milk from.

The farmers, half of whom had given notice to quit the co-op prior
to the appointment of receivers, were released from their
contracts and given the freedom to leave immediately on PwC's
appointment.  This strategy, which has broadly been welcomed by
the industry, has allowed 1600 to leave for alternate milk buyers.

Stephen Oldfield, agribusiness leader at PwC and joint receiver
said: "I am pleased that there are only 200 farmers remaining
within 2 weeks of our appointment which validates our strategy of
taking the contractual handcuffs off DFBs members.  It is an
extremely complex supply chain and finding so many farmers new
homes for their milk so quickly is a real achievement. We would
not be in this position so quickly were it not for sterling work
by the DFB member council led by Stephen Yates and by the DFB milk
supply team led by Martin Armstrong."

The receivers' attention is now focused on those remaining farmers
who appear to have no alternative buyer for their milk.  These
farmers are principally based in the North East and North
Yorkshire, Cumbria and Lancashire, south of Manchester and a
smaller number in South Wales.

Stephen Oldfield continued:

"We must now turn our focus onto helping those with no apparent
choice but to ask us to continue to collect their milk.  These are
farmers who either have small herds which are below minimum pick
up volumes for the alternate buyers or are situated in some of the
most remote and beautiful areas of our countryside such as the
Lakes, North York moors and the Dales.

"Some are young farmers just starting out who have not yet built
up their herds to a size that is attractive for milk buyers.  This
is really concerning as the industry is struggling against low
economic returns to attract new blood into dairy farming.  The
average age of a dairy farmer in the UK is 59.

"We will continue to collect from them, but due to the very
significant costs of tanker haulage to collect their milk, we are
only able to guarantee a minimum base price of 10p per litre.  I
hope to be able to pay more than this and am continuing to ask
customers to pay a fair price for the farmers' milk.  However, the
minimum 10p price is simply not economic for these farmers and,
unless something is done, they will have no alternative but to
exit dairying by culling their cows or selling up their herds.

"I have therefore met again with Defra and representatives from
Dairy UK and the Farmers unions to see what can be done to help
these farmers. Following that meeting, the push is to try and find
alternative dairy buyers for the farmers' milk.  If not, there
will need to be a way of giving farmers a viable farming
alternative or a dignified exit from farming."

Stephen Oldfield, David Kelly and Ian Green were appointed joint
receivers and managers of Dairy Farmers of Britain (DFOB) on
June 3, 2009.

           Background on Dairy Farmers of Britain

DFOB is an agricultural milk cooperative that employs 2,200 at its
sites in the South West, the Midlands and the North East.  It has
1,800 farmer members across Great Britain who supply over 1
billion litres to the food and drink industry, comprising 10% of
UK milk production.

DFOB suffered significant losses in its liquids division and
therefore in November 2008 it announced the closure of its Fole
and Portsmouth dairies to achieve a return to profitability in
this division.  During the following months, DFOB was not able to
pay its farmer members a competitive milk price, which resulted in
members tendering their resignations in large numbers.  These
members are currently serving their 12 months notice period to
terminate their contracts with DFOB.

Since the closure of the 2 dairies, the liquids division has
suffered the further loss of the Co-Operative supermarket
contract, which comes into effect on August 1, 2009.  This made
the restructure insufficient to turnaround the liquids division.

In March 2009, DFOB completed a transfer of member debt to equity,
but was unsuccessful in achieving the agreement of its loan note
holders to transfer their debt to equity.


GEMINI PLC: Moody's Junks Rating on GBP30 Mil. Class B Notes
------------------------------------------------------------
Moody's Investors Service has downgraded the Class A Notes and the
Class B Notes issued by Gemini (Eclipse 2006-3) plc (amounts
reflecting the initial outstanding amounts):

  -- GBP615,000,000 Class A Commercial Mortgage Backed Floating
     Rate Notes due July 2019, downgraded to Ba3; previously on 24
     October 2008 downgraded from Aaa to Aa2; and

  -- GBP30,000,000 Class B Commercial Mortgage Backed Floating
     Rate Notes due July 2019, downgraded to Caa2; previously on
     24 October 2008 downgraded from Aa3 to A3.

Moody's does not rate the Classes C, D, and E Notes issued by
Gemini (Eclipse 2006-3) plc (the "Issuer").  The rating action
concludes the review for possible downgrade that was initiated for
the Class A Notes and Class B Notes on April 8, 2009.

The rating action takes Moody's updated central scenarios into
account, as described in Moody's Special Report "Moody's Updates
on Its Surveillance Approach for EMEA CMBS".

1) Transaction Overview

Gemini (Eclipse 2006-3) plc closed in November 2006 and represents
the true-sale securitisation of an initially GBP918.9 million
(currently GBP850.4 million) senior loan (the "Senior Loan")
secured by a portfolio of initially 36 commercial properties
throughout the UK.  The predominant property types were retail
(59%) and office (21%).  There is also a GBP105.8 million junior
loan (the "Junior Loan"), which has not been securitised in this
transaction but is secured by the same properties.  The
relationship between the Senior Loan lenders and Junior Loan
lenders is governed by an intercreditor agreement.  The Senior
Loan and the Junior Loan form the initially GBP1,041.4 million
loan ("Whole Loan"), which matures in July 2016.  Following a
property disposal, the Senior Loan currently amounts to GBP850.4
million and the Junior Loan to GBP105.8 million.  The predominant
property types are still retail (55%) and office (21%).

At closing, the Whole Loan had a loan-to-value ratio of 84.3%
based on the underwriter's market value for the properties of
GBP1,235 million.  The interest only loan is swapped on the
borrower level from a floating interest rate into a fixed interest
rate using an interest rate swap maturing in 2026, 10 years after
loan maturity.  Moody's highlighted in its pre-sale report (i) the
refinancing risk given the high leverage of the loan and the
absence of scheduled amortization; (ii) the lease expiration
profile of the property portfolio; and (iii) the swap structure as
central weaknesses of the transaction.

2) Rating Rationale

The downgrade was prompted by a number of factors, including:

(i) Substantially decreased and now lower than initially expected
net cash flow received from the properties;

(ii) The expectation of further rental cash flow declines due to
an adverse lease expiry profile, Moody's expectation of further
falling market rents, potential increases in vacancies and impacts
from tenant defaults;

(iii) The value decline the property portfolio has experienced
since closing coupled with Moody's expectation that the property
values for this portfolios will not recover significantly over the
next years;

(iv) The uncertainty and additional leverage added by senior
ranking swap termination costs that might increase the loss
severity upon an enforcement of the loan; and

(v) The resulting overall very high leverage of the loan.

The Whole Loan is defaulted and in special servicing since August
2008.  Moody's expects a very high amount of losses on the
securitized loan.  The experienced property value declines have
already resulted in a significant erosion of the property value
cushion available to Class A and Class B Noteholders.  Moody's
expects this cushion to erode even further.  Based on Moody's
expected trough value for 2011 and not taking into account swap
termination costs, Moody's expects a Class A note-to-value ratio
of approximately 104% and a Class B NTV of about 109%.

3) Transaction Performance History

A revaluation commissioned in April 2008 showed a property value
decline of 16% to GBP958,645,000 from GBP1,143,335,000 at closing
in November 2006 (adjusted for the market value of the disposed
property).  This prompted a breach of the LTV covenants set at 80%
based on the Senior Loan and 90% based on the Whole Loan.  The
borrowers did not exercise their rights to cure the LTV covenant
breach and initial intentions to refinance the loan did not
materialize.  The loan was transferred to special servicing in
August 2008, which triggered the requirement for an updated
valuation.  This valuation update as of September 2008 was
GBP801,415,000, a further 17% value decline compared to the
desktop valuation commissioned in April 2008.  Based on January
2009 IPD figures, the Senior Loan LTV (excluding the mark-to-
market value of the interest rate swap) is 106.11% and the Whole
Loan LTV is 119.25%.

The interest coverage of the Senior Loan dropped to 1.07x on the
October 2008 IPD, triggered by a higher level of non-recoverable
expenses reported.  The current Senior Loan coverage is 1.1x,
while the Junior Loan coverage is 0.92x per the January 2009 IPD.
It is Moody's understanding that given the loan default the Junior
Loan currently does not receive interest due.

4) Moody's Portfolio Analysis

Property Values.  Property values across the UK have significantly
fallen until Q1 2009.  Moody's estimates that the portfolio value
declined by 48% since closing until the beginning of 2009,
reflecting a value of GBP598 million.  Moody's expects the value
of the portfolio to decline a further 9% to a trough value of
GBP546 million until 2011.  In Moody's view, further value
declines will be predominantly driven by decreases in net rental
income and to a lesser extend by further yield widening.  Due to
the expected decline of rental income generated by the portfolio,
Moody's expects the value to recover only marginally after 2011.

As a consequence, the Moody's estimates that the Whole Loan LTV
was 160% beginning of 2009.  Moody's expects the LTV to increase
to 175% in 2011 and only marginally decline thereafter.  For the
securitised Senior Loan, the LTV was in Moody's view 142% and will
increase to 156%.  These LTV numbers to not take into account
senior ranking swap termination costs.

Property Portfolio Income.  As already outlined in a previous
press releases in April 2009, the net rental cash flows generated
by the property portfolio have constantly underperformed Moody's
initial expectations and have further decreased, mainly due to
higher than initially anticipated non-recoverable expenses.  The
rental income is no longer sufficient to cover interest payments
on the Junior Loan.  According to the information provided to
Moody's, the initial net rental income determined at the Closing
of the transaction was around GBP59 million (adjusted for the net
rental income of the disposed property).  The current net rental
income is below GBP50 million.  The vacancy rate of the property
portfolio has been volatile since closing and was 7.8% on the
January 2009 IPD, compared to 10.5% at closing.

In Moody's opinion, the available rental cash flows will be
negatively impacted going forward by (i) the predominantly
secondary nature of the property portfolio; (ii) expected
declining rental levels; (iii) increasing vacancies amid
significant lease roll-over risk with more than 40% of leases
expiring before 2016; and (iv) adverse tenant performance, with
expected increases in tenant defaults due to a weak economic
environment in the UK.

The Borrower Level Interest Rate Swap.  The borrower has entered
into an interest rate swap that matures in 2026.  Upon swap
termination due to a default of the borrower or refinancing of the
loan, the swap counterparty ranks senior to the Senior Loan in
terms of swap breakage costs.  Given the current low interest rate
environment, the swap is in the money for the counterparty.  As of
19 February 2009, potential swap breakage costs amounted to
GBP119.5m.  The negative swap exposure would decrease if interest
rates were to rise.  At the same time, assuming constant interest
rates, the negative swap exposure would decline over time as the
remaining tenor of the swap shortens.  Importantly, the existence
of the swap and the currently significant potential termination
costs will impact the special servicer's enforcement strategy and
make an outright sale of the property security unlikely.  As swap
termination costs are also payable upon a partial prepayment of
the loan, the swap structure complicates single property disposals
for the foreseeable future.  In its central scenario for this
transaction, Moody's has assumed a lengthy enforcement process in
relation to the defaulted loan.

Debt Service Capability.  The Whole Loan ICR on the current income
is reported with 0.93x as per January 2009 IPD, while the Senior
Loan ICR is reported with 1.1x.  Moody's expects in its base case
that the rental income going forward will not be sufficient to pay
the interest amounts due on the Junior Loan.  Moreover, as
discussed above, further declining income is expected to put
further pressure on the Senior Loan ICR

Default Risk and Expected Loss.  The Whole Loan is defaulted and
in special servicing since August 2008.  A full repayment of the
loan requires a significant recovery in the property market, which
is very unlikely to happen.  Due to the swap structure, the amount
of recovery proceeds also depends more than for other securitized
commercial real estate loans on the interest rate environment.
Therefore, Moody's expects a high amount of losses on the
securitized Senior Loan.

The current subordination level of 33.1% for the Class A and 29.8%
for Class B provide some protection against losses on the Senior
Loan.  However, the variability around Moody's expected loss level
has increased as well, which results in the rating action.  In its
rating action, Moody's took also the Class A and Class B Notes NTV
levels into account, which are based on Moody's expected trough
value for 2011 approximately 104% for Class A and 109% for Class
B.  The Class B Notes are subordinated in the capital structure,
due to this additional leverage, the impact of an higher expected
Senior Loan loss on the expected loss for these Notes is higher
than on the expected loss for the Class A Notes.

Moody's has tested several scenarios or work-out strategies and
timing as well as developments of mark-to-market values of the
swap over time.  The rating agency believes that the currently
high mark-to-market value of the swap will not fully crystallize
as a loss to the lenders, since an immediate sale of the assets is
unlikely in Moody's view.

Moody's anticipates that this transaction is one of the most
negatively affected EMEA CMBS single borrower transactions
following the application of its updated central scenarios.


LDV: Some Potential Buyers Mull Halting Production in UK
--------------------------------------------------------
Tim Webb at guardian.co.uk reports that administrators of van
maker LDV said some potential buyers of the company do not intend
to continue manufacturing in Britain, putting about 4,000 jobs at
risk.

The report relates Mark Hopkins, director of
PricewaterhouseCoopers, the accountants appointed to find a buyer
for the collapsed firm's assets earlier this month, said
interested parties would be invited to submit formal bids by the
middle of next week.  The report discloses according to Mr.
Hopkins, there have been more than 30 expressions of interest.
The report states eight parties had signed confidentiality
agreements allowing them to conduct more due diligence on LDV's
finances.

"Some of the initial plans for LDV submitted by interested parties
have expressed an interest in continuing manufacturing in the UK,"
the report quoted Mr. Hopkins as saying.  "Other plans do not
envisage dedicated manufacturing in the UK."

The report says the most likely buyer would be a company from
outside Europe or the US not linked to one of the large van
makers, such as Weststar.

On June 4, 2009, the Troubled Company Reporter-Europe, citing
Telegraph.co.uk, reported that LDV was forced to reapply for
administration after potential buyer Weststar failed to secure
financing for a deal.

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

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

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


CLARIS LIMITED: Moody's Cuts Rating on EUR5 Mln CDS to 'Ba3'
------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of three
classes of notes issued by Claris Limited and one CDS entered into
by Societe Generale.

The transaction is a synthetic resecuritization of European ABS.
The rating action is a response to the deterioration of the
reference portfolio including among the others entities, E-Mac,
which has been downgraded several notches.  This has a significant
impact on the rating of the notes as the tranche subordination is
approximately 1% for series 110 and there is no subordination for
all the others tranches.

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

  -- Moody's Approach to Rating SF CDO (March 2009)

The rating action is:

Claris Limited:

(1) Series 108/2007 - JPY1,000,000,000 Millesime 2007-3 Synthetic
CDO of ABS Floating Rate Notes due 2037;

  -- Current Rating: Ba3

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

  -- Prior Rating Date: 9 June 2009, Baa3 placed under review for
     possible downgrade

(2) Series 109/2007 - JPY 2,300,000,000 Millesime 2007-3 Synthetic
CDO of ABS Floating Rate Notes due 2057;

  -- Current Rating: Ba3

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

  -- Prior Rating Date: 9 June 2009, Baa3 placed under review for
     possible downgrade

(3) Series 110/2007 - EUR13,000,000 Millesime 2007-3 Synthetic CDO
of ABS Floating Rate Notes due 2057

  -- Current Rating: Baa2

  -- Prior Rating: A2, on review for possible downgrade

  -- Prior Rating Date: 9 June 2009, A2 placed under review for
     possible downgrade

(4) EUR5,000,000 credit default swap entered into by Societe
Generale

  -- Current Rating: Ba3

  -- Prior Rating: Ba2, on review for possible downgrade

  -- Prior Rating Date: 23 March 2009, downgraded to Ba2 from Baa2
     under review for possible downgrade


MODUS VENTURES: Seven Subsidiaries in Administration
----------------------------------------------------
Laura Chesters at Property Week reports that seven subsidiaries of
property developer Modus Ventures Ltd have gone into
administration.

According to Property Week, Modus Properties Ltd, Modus Congleton
(No 1) Ltd, Modus Eastern (Boston) Ltd, Modus (Deepdale) Ltd,
Modus Properties (Stockport) Ltd, Modus Cambrian Ltd, Modus (Tower
Grand) Ltd are all in administration.  Simon Allport and Tom Jack
of Ernst & Young were appointed joint administrators on June 9,
2009, Property Week relates.  "We are currently assessing the
viability of the companies and their assets, Property Week quoted
Mr. Allport as saying.

Property Week recalls Modus Ventures went into administration in
May.

Modus Ventures Ltd is a commercial property and development group
based in Manchester.  The group owns in excess of 40 companies
across the UK, the majority of which are in the retail property
development sector.


NATIONAL EXPRESS: Banks Agree to Provide Addt'l Covenant Headroom
-----------------------------------------------------------------
National Express Group PLC Wednesday said it expects to meet its
key covenant of adjusted net debt to EBITDA not exceeding 3.5
times at June 30, 2009, following the significant progress made by
the Group in cash generation in the first half of the year.

National Express said that its banking group has agreed (subject
to receipt of signed documentation) to retain this covenant at a
maximum of 4.0 times adjusted net debt to EBITDA at the June 30,
2009 test, in order to provide additional covenant headroom for
the next 6 months.  In addition, it has confirmed approval to a
change in calculation of net debt for covenant purposes to use
average foreign currency rates, rather than spot, thereby reducing
foreign exchange rate volatility.

Kaveri Niththyananthan at Dow Jones Newswires reports that Gerald
Khoo, analyst at Arbuthnot, said the covenant test for December
2009, appeared unchanged, and added this "(very temporary)
relaxation of banking covenants solves nothing in the long-term."
Mr. Khoo, as cited by Dow Jones, said the group, which has
suffered from lower growth in passenger revenue, still had to
refinance EUR540 million due September, 2010, and GBP800 million
in June, 2011, which will lead to a step-up in interest costs in
the current credit environment.

Dow Jones recalls National Express on May 22 said it had sold its
London bus operations to NS Dutch Railways for GBP32 million, the
proceeds of which would help pay down debt.  It has already cut
dividend payments to ease the pressure of its debt, which stood at
GBP1.18 billion at Dec. 31, Dow Jones says.

                           Franchise

According to the Scotsman, the firm's UK rail arm is struggling to
cope with stalling revenues on the East Coast Main Line franchise,
which it won two years ago, before the recession struck.  It must
pay the government GBP1.4 billion over the life of the franchise,
which ends in 2015, and is in talks with the Department for
Transport over amending the terms, the Scotsman states.  Dow Jones
relates while National Express has been in regular talks with the
Department for Transport, the government department has been
adamant it will not renegotiate the terms of franchises.  That
could leave National Express with little option but to exit the
franchise if its financial outlook gets worse, Dow Jones notes.
Instead, it could be paid a fixed sum by the government to manage
the line, until a new operator can be found, Dow Jones discloses.

National Express Group PLC -- http://www.nationalexpressgroup.com/
-- is the holding company of the National Express Group of
companies.  Its subsidiary companies provide mass passenger
transport services in the United Kingdom and overseas.  The
Company's segments comprise: UK Bus; UK Coach; UK Trains; North
American Bus; European Coach and Bus, and Central functions.  Its
subsidiaries include Tayside Public Transport Co Limited, Durham
School Services LP, Stock Transportation Limited, Dabliu
Consulting SLU, Tury Express SA, General Tecnica Industrial SLU
and Continental Auto SLU.  In June 2009, the Company announced the
completion of the sale of Travel London, its London bus business,
to NedRailways Limited, a subsidiary of NS Dutch Railways.


ROYAL HOTEL: Finds New Owner; Exits Administration
--------------------------------------------------
Tim Lewis at South Wales Echo reports that The Royal Hotel in
Cardiff has found a new owner six months after it went into
administration.

South Wales Echo relates the UK-wide company Legacy Hotels and
Resorts has secured a three-year management deal to operate and
manage the hotel.  Manchester-based administrators MCR surrendered
the lease back to the landlord to allow Legacy Hotels and Resorts
to agree a management deal until 2012, South Wales Echo discloses.
Andy Townsend, chief executive officer of Legacy Hotels and
Resorts, as cited by South Wales Echo, said "Around 30 staff have
retained their jobs at the Royal Hotel and we are now focused on
resetting the business and establishing it as one of the city's
key hotel destinations after the period of uncertainty."


SETANTA SPORTS: Premier League Payment Deadline Expires Today
-------------------------------------------------------------
James Robinson and Owen Gibson at guardian.co.uk report that
Setanta Sports plc is due to make a GBP10 million payment to the
Premier League today, June 19.

The report relates executives were in talks Thursday evening as
they tried to finalize a GBP20 million rescue package agreed with
the American billionaire Len Blavatnik, who has agreed to take a
51% stake in the company.  According to the report,
Mr. Blavatnik's advisers are still carrying out due diligence and
that process may not be completed until hours before the Premier
League payment is due.

The report states industry sources say they expect Setanta to meet
the deadline, but that it is unlikely to pay the cash until late
in the day.  The Premier League, the report discloses, has
announced it will put Setanta's rights out to tender if the latest
GBP10 million instalment is not paid by evening today.  The report
notes the Premier League remains confident it can recoup the
GBP131 million Setanta still owes it for the right to screen 46
games next season, regardless of the outcome of its negotiations
with Blavatnik and its other shareholders.  The report says it has
parent company guarantees which it believes are watertight,
meaning that if Setanta is forced into administration, its private
equity backers are liable to pay back the money it owes.

eurofootball.biz reports the Premier League is seeking bids for
the 46 live matches secured by Setanta, with a final application
date of June 22.  However, should Setanta, which re-opened its
subscription service this week in the hopes of acquiring
additional revenue, resolve the matter prior to its own deadline,
all bidders will be notified, eurofootball.biz states.  The 46
matches would be split between at least two parties, based on a
European Commission restriction that prevents the entire set of
live games from being issued to one bidder, eurofootball.biz
notes.

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.


TOWERGATE FINANCIAL: Placed Into Administration
-----------------------------------------------
Nicole Blackmore at Money Marketing reports that Towergate
Financial Services has been placed into administration.

TFS, Money Marketing discloses, was forced into administration
Thursday last week with Grant Thornton appointed to wind up the
company.  Money Marketing relates Towergate Partnerships Limited
on June 16 announced that TFS had been "scaled back" and folded
into a division of TPL.  According to Money Marketing, it is
understood that Towergate Underwriting Limited, owned by TPL,
bought the IFA firms owned by TFS back from Grant Thornton,
allowing them to continue operating.

"The technical way in which the business is being transferred from
an independent business to within Towergate partnership has been
through administration so Grant Thornton were the administrators
there.  What this achieves is it aligns the various interests, it
happens quickly and the trading businesses are unaffected,"
citywire quoted a spokesman for Towergate Partnerships as saying.

Money Marketing states TFS chief executive Ian Darby and finance
director Andrew Doyle are working with TPL chairman Peter Cullum
and chief executive Andy Homer over the next month to draw up a
new business plan for the financial services division.  Mr.
Cullum, as cited by citywire, said the credit crunch had
contributed to TFS' scaled back plans but the business plan
remained intact.  The report says up to 13% of TFS employees could
lose their jobs.

Towergate Financial Services Limited --
http://www.towergatefinancialservices.co.uk/-- provides financial
advice to both corporate and private clients.


VEDANTA RESOURCES: Moody's Affirms 'Ba1' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 corporate family
rating and Ba2 senior unsecured rating of Vedanta Resources plc.
The outlook on the ratings is stable.

The rating action follows the acquisition by Vedanta's subsidiary
Sesa Goa of the mining assets of the Dempo Group for
US$368 million; Vedanta's offer to increase its shareholding in
Sesa Goa from 53.1% to 55% for around US$120 million; and
Vedanta's issuance of a US$1.25 billion convertible bond.

"The acquisitions at Sesa Goa level are relatively small in their
actual amounts as compared to the group's size, and are in line
with the company's strategy to increase its iron ore capacity
while streamlining the group structure by increasing shareholdings
in those subsidiaries that it does not fully own," said Ivan
Palacios, a Moody's AVP/Analyst.

"Nevertheless, the announced acquisitions will reduce the
company's cushion within its current rating.  These acquisitions
add to an already heavy expansion plan, which includes the
acquisition of minority interests in BALCO and Hindustan Zinc, the
potential acquisition of Asarco, and an ambitious capital
expenditure program, of which US$7.6 billion is yet to be spent,"
said Mr. Palacios, also Moody's lead analyst for the company.

In Moody's view, Vedanta's US$1.25 billion convertible bond
issuance improves the company's near-term liquidity profile.  In
addition, the amount raised is in line with Moody's expectations
when Vedanta was downgraded to Ba1 in December 2008.

However, the convertible bond issuance and the drawings on the
long-term project finance that Vedanta has recently secured will
together increase the company's on-balance-sheet leverage -- which
stood at US$5.1 billion as of FY2009 -- and weaken its credit
metrics.

"As a result of the aggressive expansion strategy, the incremental
debt funding and the expectation of weaker near-term performance
due to the challenging environment for base metals, Moody's
believes that Vedanta's key financial metrics could temporarily
exceed the tolerance level set for the rating", said Mr. Palacios.

"However, Vedanta's stable outlook is supported by the expectation
that its financial profile will strengthen again beyond FY2010,
once the new projects gradually come on-stream and start
generating the expected returns," added Mr. Palacios.

The rating also assumes continued covenant compliance management
by the issuer.  In this context, downward rating pressure could
develop in the event that weaker-than-expected profitability
reduces significantly the headroom under Vedanta's financial
covenants.

Vedanta's stable outlook is underpinned by its strong liquidity
profile, and Moody's expectation of a progressive improvement in
the company's financial profile beyond FY2010.  This is balanced
against a very challenging operating environment, as well as the
risk of further investments beyond the large amount already
committed.

Moody's notes, however, that there is limited tolerance in the
rating for further debt-financed expansion plans or further
weakness within the operating environment for base metals.

Positive pressure on the rating could develop if 1) demand and
price levels for base metals stabilize; 2) the planned expansion
projects start generating the expected returns; 3) there is
evidence of a stable and sustainable business profile for the
company; and 4) there is an improvement in the company's complex
structure.

The rating could see upward pressure once the company demonstrates
a sustainable ability to maintain these financial metrics on a
consistent basis: CFO (less dividends)/Adjusted debt over 25% -
30%, Adjusted Debt/ EBITDA below 2.5x -- 3.0x, and EBIT interest
coverage over 5.0x -- 6.5x.

Conversely, the ratings could come under downward pressure if 1)
Vedanta's profitability declines beyond Moody's expectations for
FY2010; 2) it undertakes further acquisitions, investments or
shareholder remuneration policies that include incremental debt;
or 3) it fails to satisfactorily execute its expansion projects.

Credit metrics that Moody's would consider for a ratings downgrade
include CFO (less dividends)/Adjusted Debt below 15%, Adjusted
Debt to EBITDA exceeding 4x, or EBIT interest coverage declining
to 3.5x or less on a sustained basis.

The last rating action with regard to Vedanta was taken on March
10, 2009, when Moody's stated that Vedanta's proposed acquisition
of Asarco for US$1.7 billion could be accommodated within the
company's Ba1 rating.

Headquartered in London, UK, Vedanta Resources plc is a metals and
mining company focusing on integrated zinc, alumina/aluminum and
copper smelting and refining and iron ore mining.  Its operations
are predominantly located in India.  It is listed on the London
Stock Exchange and is 59.06 % owned by Volcan Investments Ltd.


* BOOK REVIEW: Ten Cents on the Dollar, Or the Bankruptcy Game
--------------------------------------------------------------
Author: Sidney Rutberg
Publisher: Beard Books
Softcover: 189 pages
List Price: US$34.95

Reporting on bankruptcy courts for more than 30 years for
Fairchild Publications and also as a business columnist and editor
for Women's Wear Daily and Daily News Record, Rutberg came away
with a jaundiced view of bankruptcies.  Perhaps because he was a
journalist covering events in a fast-paced, urban environment,
Rutberg writes in an informal, breezy style.  Ten Cents on the
Dollar reads like a gossip column with its witty and colorful
observations.  Rutberg recounts situations and incidents in rapid-
fire succession, offering tidbits of information with no logical,
chronological, or narrative connection.

Rutberg's stories are, however, grouped into general headings
relating to various aspects of bankruptcy.  Among these are
liquidation auctions; creditors; legal procedures; Chapter 7, 11,
and 13 bankruptcies; and key players in bankruptcies, such as
accountants and lawyers.  Rutberg's irrepressibly casual, often
inventive, style extends to the names of the chapters.  The first
chapter on auctions is titled "A Kipper Is Not a Herring."
Another chapter is entitled "Ten Cents on the Dollar, Or Reading
Between the Lies."

"Even Millionaires Go Broke" is the title of a third.  Rutberg's
casual style belies the fact that he has an unerring, seasoned eye
for what bankruptcy, the bankruptcy system, and the individuals --
from debtors to judges -- are like.  Ten Cents on the Dollar,
first published in 1973, offers a balanced perspective based on
firsthand knowledge.  The informal style does not undermine the
basic points Rutberg makes about bankruptcy; for example:
"Professionals who play the bankruptcy game [like professionals in
other fields] . . . lie a little, they cheat a little, they steal
a little, but mostly they work hard."  Elsewhere, Rutberg writes
that, while "[a]ttorneys in the bankruptcy field are looked upon
by some . . . [as being] rungs below the ambulance-chasing
negligence lawyer . . . the bankruptcy lawyer is a specialist in a
rough-and-tumble business, and, by and large, he'll perform as
well as the attorneys in any other specialized field."

While Rutberg does not pull punches, he avoids passing judgment on
the bankruptcy field and its participants.  If this book had been
no more than a screed, it would have been of little use to readers
who wanted to learn something about bankruptcy.  Rutberg, for
instance, is not calling for reform.  There are enough other books
doing this.

Individuals on both sides of the bankruptcy issue will be amused
by Rutberg's informal writing style, stream of vignettes, and
jaundiced point of view.  For those foreseeing or initiating
bankruptcy, it is an informative guide not only to various options
and requirements, but also to the players.  Readers who are not
involved in the bankruptcy business can learn how they might
profit from bankruptcy proceedings, such as purchasing property at
an auction or providing services to those in bankruptcy.

Rutberg's book is intended for lay readers, and not bankruptcy
professionals such as attorneys and accountants.  But for everyone
else, from business owners and decisionmakers to investors and
individuals looking for depressed-priced items, Ten Cents on the
Dollar is a wide-ranging, incisive picture of the bankruptcy game.
Besides being a columnist and journalist concentrating on
financial affairs, Sidney Rutberg is a contributing editor to the
magazine The Secured Lender, published by the Commercial Finance
Association.

                            *********

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, 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 * * *