TCREUR_Public/090626.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 26, 2009, Vol. 10, No. 125

                            Headlines

A U S T R I A

BARABAN TROCKENBAU: Creditors Must File Claims by July 22
B.O.N.I.T.O. GMBH: Creditors Have Until July 21 to File Claims
CAFE KULTUR: Creditors Must File Claims by July 22
DALLOS GMBH: Creditors Have Until July 21 to File Claims
PIRINGER GMBH: Creditors Must File Claims by July 7


F R A N C E

ALCATEL-LUCENT SA: Mulls Sale of EUR500MM Convertible Bonds


G E R M A N Y

ARCANDOR AG: Quelle May Receive EUR50 Million Loan
GENERAL MOTORS: In Talks With Beijing Auto Over Opel Sale
HEIDELBERGCEMENT AG: S&P Keeps 'B-' Long-Term Corp. Credit Rating
PHORMS MANAGEMENT: S&P Assigns 'B-/B' Issuer Credit Ratings
QIMONDA AG: Insolvency Administrator Sells Major Holdings

STANKIEWICZ GMBH: IAC to Acquire Manufacturing Facilities


H U N G A R Y

* HUNGARY: IMF Approves EUR1.4 Billion Disbursement


I C E L A N D

LANDSBANKI ISLANDS: Judge Wants Court to Look Into Icesave Issue


I R E L A N D

AVOCA CLO IV: S&P Junks Rating on Class E Def Notes From 'BB'
BLACKWATER HOMES: Files for Bankruptcy Protection
EIRLES TWO: Moody's Junks Rating on US$50 Mil. Notes From 'Ba3'
INDEPENDENT NEWS: Standstill Agreement on EUR200-Mln Debt Extended
TOM HOGAN: Goes Into Voluntary Liquidation

* Irish Banks Face EUR35 Bln Losses as Economy Shrinks, IMF Says


I T A L Y

SAFILO SPA: Moody's Junks Corporate Family Rating From 'B3'
SAFILO SPA: S&P Lowers Corporate Credit Rating to 'CC'

* Moody's Confirms 'Ba1' Issuer Rating on City of L'Aquila


K A Z A K H S T A N

AK BULAK: Creditors Must File Claims by July 3
BIOTECH 2005: Creditors Must File Claims by July 3
EURASIA INSURANCE: S&P Raises Financial Strength Rating to 'BB-'
KAZ TECHNO: Creditors Must File Claims by July 3
SAR SU: Creditors Must File Claims by July 3

STANDART REGION: Creditors Must File Claims by July 3


K Y R G Y Z S T A N

PAN ASIA: Creditors Must File Claims by July 24


L U X E M B O U R G

GATE GOURMET: S&P Puts 'B' Corp. Rating on CreditWatch Negative


N E T H E R L A N D S

KONINKLIJKE AHOLD: S&P Raises Sr Unsecured Notes Rating From 'BB+'


R U S S I A

ELISTINSKIY HOUSE: Creditors Must File Claims by July 5
LATES CJSC: Creditors Must File Claims by July 5
MUKHTOLOVSKIY FORESTRY: Creditors Must File Claims by July 5
STABILITY LLC: Creditors Must File Claims by July 5
USMANSKIY HOUSE: Creditors Must File Claims by July 5


S P A I N

BANCO SANTANDER: S&P Corrects Ratings on Class D and E Notes
CAJA SAN FERNANDO: S&P Junks Ratings on Four Classes of Notes
RURAL HIPOTECARIO: Fitch Affirms Junks Ratings on Class E Notes


S W I T Z E R L A N D

DIR ARISDORF: Creditors Must File Claims by July 16
HIS JEANSWEAR:  Creditors Must File Claims by July 22
KIEFER, MOSIMANN: Claims Filing Deadline is July 17
MODEATELIER BRIGITTE: Claims Filing Deadline is July 8
SANSAFE AG: Creditors Have Until July 27 to File Claims


U K R A I N E

PANICH LTD: Creditors Must File Claims by July 1
PRIVATE FINANCE: Creditors Must File Claims by July 1
PRIVATE TRADE: Creditors Must File Claims by July 1
SIGMA-RESOURCE LLC: Creditors Must File Claims by July 1
TRADE FINANCE: Creditors Must File Claims by July 1


U N I T E D   K I N G D O M

BAXI GROUP: Secures Waiver on Leveraged Loans
BRIXTON PLC: Fitch Maintains LT Issuer Default Rating at 'BB'
CARNUNTUM HIGH: S&P Affirms Rating on Class E Notes at 'BB'
FORD MOTOR: Raises UK Prices by 4% on Weak Pound
INDUS PLC: Moody's Downgrades Rating on Class B Notes to 'B2'

LONDON WELSH: In Administration; Tenon Recovery Appointed
PAUL GREEN: Seeks to Cut Debt Pile Through CVA
SETANTA SPORTS: Liberty Global Eyes Irish Unit

* ING Says European Emerging-Market Debt Default to Peak in 2010

* BOOK REVIEW: Instincts of the Herd in Peace and War


                         *********


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


BARABAN TROCKENBAU: Creditors Must File Claims by July 22
---------------------------------------------------------
Creditors of Baraban Trockenbau KG have until July 22, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 5, 2009 at 10:50 a.m.

For further information, contact the company's administrator:

         Dr. Peter Zens
         Esteplatz 5/5
         1030 Vienna
         Austria
         Tel: 534 90
         Fax: DW 50
         E-mail: office@schopf-zens.at


B.O.N.I.T.O. GMBH: Creditors Have Until July 21 to File Claims
--------------------------------------------------------------
Creditors of B.O.N.I.T.O. GmbH have until July 21, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 4, 2009 at 12:50 p.m.

For further information, contact the company's administrator:

         Dr. Andrea Simma
         Favoritenstrasse 22/12a
         1040 Vienna
         Austria
         Tel: 504 64 08
         Fax: 504 64 08 22
         E-mail: simma@mitrecht.com


CAFE KULTUR: Creditors Must File Claims by July 22
--------------------------------------------------
Creditors of Cafe Kultur GmbH have until July 22, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 5, 2009 at 10:30 a.m.

For further information, contact the company's administrator:

         Mag. Gerhard Stauder
         Siebensterngasse 42
         1070 Vienna
         Tel: 523 47 91
         Fax: DW 33
         E-mail: kahlig.partner@aon.at


DALLOS GMBH: Creditors Have Until July 21 to File Claims
--------------------------------------------------------
Creditors of Dallos GmbH have until July 21, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 4, 2009 at 11:00 a.m.

For further information, contact the company's administrator:

         Dr. Andreas Wippel
         Triester Str. 15
         2620 Neunkirchen
         Austria
         Tel: 02635/62860
         Fax: 02635/62861 14
         E-mail: kanzlei@dr-wippel.at


PIRINGER GMBH: Creditors Must File Claims by July 7
---------------------------------------------------
Creditors of Piringer GmbH have until July 7, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 21, 2009 at 10:00 a.m.

For further information, contact the company's administrator:

         Dr. Katharina Widhalm-Budak
         Favoritenstrasse 22/12a
         1040 Vienna
         Austria
         Tel: 504 64 08
         Fax: 504 64 08 22
         E-mail: widhalm-budak@mitrecht.com


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


ALCATEL-LUCENT SA: Mulls Sale of EUR500MM Convertible Bonds
-----------------------------------------------------------
David Whitehouse at Bloomberg News reports that La Tribune, citing
unidentified market operators, said Alcatel-Lucent SA is
considering selling about EUR500 million of convertible bonds in
coming days to shore up its finances.

                   About Alcatel-Lucent SA

France-based Alcatel-Lucent SA (Euronext Paris and NYSE: ALU) --
http://www.alcatel-lucent.com/-- provides product offerings that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  In the field of fixed, mobile and converged broadband
networking, Internet protocol (IP) technologies, applications and
services, the company offers the end-to-end product offerings that
enable communications services for residential, business customers
and customers.  It has operations in more than 130 countries.  It
has three segments: Carrier, Enterprise and Services.  The Carrier
segment is organized into seven business divisions: IP, fixed
access, optics, multicore, applications, code division multiple
access networks and mobile access.  Its Enterprise business
segment provides software, hardware and services that interconnect
networks, people, processes and knowledge.  Its Services business
segment integrates clients' networks.  In October 2008, the
company completed the acquisition of Motive, Inc.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on March 5,
2009, Standard & Poor's Ratings Services lowered to 'B+' from
'BB-' its long-term corporate credit ratings and senior unsecured
ratings on France-based telecom equipment and services supplier
Alcatel Lucent and its subsidiary Alcatel-Lucent USA Inc.
(formerly Lucent Technologies Inc.).  The 'B' short-term rating on
Alcatel Lucent was affirmed.  S&P said the outlook is negative.


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


ARCANDOR AG: Quelle May Receive EUR50 Million Loan
--------------------------------------------------
Patrick Donahue at Bloomberg News reports that Quelle AG, Arcandor
AG's mail-order unit, may get a EUR50 million (US$70 million) loan
after a credit panel made up of federal state government officials
reached an agreement "in principle."

Daniela Philippi, a spokeswoman for the office of Bavarian state
Premier Horst Seehofer, as cited by Bloomberg News, said the
preliminary agreement is dependent on several unspecified
conditions.  Bloomberg News says a loan would be an alternative to
state guarantees, for which Quelle didn't qualify.

Bloomberg News recalls Quelle, which sells mail-order products
through catalogs, had its funding cut off this month, forcing
insolvency administrator Klaus Hubert Goerg to seek alternative
funding to print next season's catalogs.

                         Bankruptcy

On June 11, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Arcandor on June 9 filed for bankruptcy
protection after the German government turned down its request for
loan guarantees.  German Chancellor Angela Merkel, as cited by
Bloomberg News, said Arcandor's collapse was "unavoidable" after
investors and banks offered too little to save the retailer.

Bloomberg News recalled the government on June 8 rejected two
applications for help by Arcandor, which employs 43,000 people.
According to Bloomberg News, the retailer sought loan guarantees
of EUR650 million (US$904 million) from Germany's Economy Fund
program as debt came due this week.  It also sought a further
EUR437 million from a state-owned bank, Bloomberg News noted.

                     About Arcandor AG

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


GENERAL MOTORS: In Talks With Beijing Auto Over Opel Sale
---------------------------------------------------------
Beijing Automotive Industry Holding Co. held discussions this week
with General Motors Corp. about the possibility of buying Adam
Opel GmbH if Magna International's bid for the European unit of GM
falls through, Norihiko Shirouzu at the Wall Street Journal
reports citing a person familiar with the situation.

The WSJ relates the person said GM's agreement with Magna isn't
binding, and GM is talking to Beijing Auto and other possible
bidders to keep its options open in case its negotiations with
Magna fail.  Beijing Auto aimed to hand in an enhanced offer for
the GM business by the middle of July, Daniel Schafer at the
Financial Times reports citing several people briefed on the
matter.

According to the FT, one person close to GM said Belgium-based
financial investor RHJ International could also make a second
offer for the carmaker's European unit.  GM, the FT says, expects
to receive improved bids from Beijing Auto and RHJ in the coming
weeks.  The FT recalls GM earlier this month allowed both Beijing
Auto and RHJ International to look at Opel's books in an attempt
to increase the pressure on Magna.

GM, the FT notes, had hoped to sign a deal by mid-July, but the
failure to reach a deal so far could delay this target by several
weeks.  The FT says according to people close to the US carmaker,
Magna remained the frontrunner.

                      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)


HEIDELBERGCEMENT AG: S&P Keeps 'B-' Long-Term Corp. Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'B-' long-term and 'B' short-term corporate credit ratings on
German heavy building materials manufacturer HeidelbergCement AG.
The outlook is negative.

At the same time, S&P removed the corporate credit ratings from
CreditWatch with negative implications, where they had originally
been placed on Oct. 24, 2008.

The 'CCC+' ratings on the senior unsecured bonds issued by
HeidelbergCement and its subsidiaries HeidelbergCement Finance
B.V., Hanson Ltd., and Hanson Australia Funding Ltd. remain on
CreditWatch, but S&P has changed the implications to developing
from negative.  S&P's recovery rating on these bonds remains
unchanged at '5', indicating S&P's expectation of modest (10%-30%)
recovery in the event of a payment default.

"Our rating actions follow HeidelbergCement's recent announcement
that it has completed the refinancing of EUR8.7 billion of bank
debt through a new set of facilities that mature in December
2011," said Standard & Poor's credit analyst Xavier Buffon.
Consequently, the group has extended the maturity of its Hanson
acquisition loans from mid-2010 to end-2011 and likely has removed
the risk of an imminent breach of financial covenants.

S&P's decision to change the CreditWatch implications on the issue
ratings to developing stems from S&P's anticipation that, after
S&P complete S&P's review of the complex structure in place, S&P
could revise upward or downward S&P's ratings on some, or all, of
HeidelbergCement's senior unsecured bonds.

S&P considers that the completed refinancing removes the risk of a
liquidity shortfall in the very near term, and that it should
provide better, albeit possibly not that large, headroom under
financial covenants.  S&P thinks this gives management some
additional time to execute significant asset disposals and explore
the feasibility of any fresh equity infusion.  At the same time,
however, S&P is mindful that management will likely have to face
several challenges, such as the current sharp recession and the
still near-frozen conditions for asset disposals, as it makes
efforts to reduce debt leverage substantially.  S&P also observes
that there will be a massive debt concentration due in December
2011.

S&P expects market conditions to remain very difficult in 2009
given the likely sharp fall in new commercial construction in
North America and mature markets in Europe, and S&P's belief that
residential markets in mature and emerging Europe will continue to
shrink, possibly well into 2010.  On the positive side, S&P
expects HeidelbergCement to benefit significantly from
infrastructures-related stimulus programs, especially in the U.S.
At this stage, S&P anticipates that the company's revenues will
likely decline by high single digits this year, followed by
further erosion, although to a lesser extent, in 2010.

S&P anticipates positive discretionary annual cash flows.  This,
with any possible, but difficult to predict, disposal proceeds,
should enable HeidelbergCement to reduce debt somewhat over the
next two years.  Still, at this stage S&P does not expect massive
deleveraging.  S&P's ratings on HeidelbergCement reflect S&P's
assessment of its highly leveraged financial risk profile, weak
liquidity, and still- heavy indebtedness, seemingly unresolved at
this time, at the controlling shareholder level.  While S&P does
not anticipate the reported difficult situation of the family
shareholder to directly affect HeidelbergCement's cash flows and
debt in the near term, S&P thinks that this situation, for as long
as it continues, could constrain opportunities for massive and
durable debt reduction at the company.

At this point, all these factors more than offset
HeidelbergCement's satisfactory business profile, underpinned by
solid market shares, large size, broad diversity, and several
favorable industry characteristics, such as limited substitution
risks, good price resistance despite intense volume pressures
currently, and the local nature of markets.

"The negative outlook reflects the risks of resumed pressure on
the ratings on HeidelbergCement if S&P come to perceive liquidity
as weakening, which could happen in the event of covenant
tightening, or if management encounters difficulties in executing
disposals or faces renewed pressures on cash flows beyond this
year," said Mr. Buffon.  "We think ongoing liquidity or debt
issues at the controlling shareholder level continue to be a
potential constraint."

S&P could revise its outlook to stable or positive if the company
completes significant asset disposals, if debt deleverage is
quicker and larger than what S&P currently expects, and/or if
overall market conditions recover more sharply or sooner than
expected.


PHORMS MANAGEMENT: S&P Assigns 'B-/B' Issuer Credit Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
'B-/B' long- and short-term issuer credit rating to Germany-based
private school-operator PHORMS Management AG and its regional
subsidiary, PHORMS Berlin gGmbH.  The outlook on both entities is
stable.

"The ratings reflect an aggressive expansion strategy into private
school operations, the general risks associated with their start-
up positions, and the tight labor market for bilingual teachers,"
said Standard & Poor's credit analyst Michael Teig.  Future
political and administrative support for profit-making private
schools remains uncertain--a ratings drag for both entities as
PHORMS Berlin still has not received personnel cost state-
subsidies for the first time.

"The ratings on both entities are supported by experienced
professional management teams, support from a socially committed
group of owners and investors through equity injections to PHORMS
Management and on to PHORMS Berlin, and a stable market niche in
the German school sector, leading to a strong demand profile,"
said Mr. Teig.  S&P believes the strong demand profile for PHORMS
Berlin is likely to continue.

Most PHORMS schools in operation will become eligible for state
subsidies for personnel costs over the next three years, which S&P
believes will help to diversify revenues toward stable and
predictable state subsidies.

"We expect that PHORMS Management will be able to continue its
aggressive expansion plan," said Mr. Teig.  The ratings on both
entities might come under negative pressure if PHORMS Berlin faces
considerable delays in the approval of state subsidies for its two
school sites in operation.  A severe drop in the demand for PHORMS
Management's schools, which S&P views currently as unlikely, could
also trigger negative rating actions.

Conversely, the ratings could be raised if S&P observes strong
long-term demand and further implementation of the business model
and expansion strategy.  An increased diversification of the
company's revenue structure toward stable and predictable state
subsidies could also trigger positive rating actions.  If positive
rating triggers materialize, S&P believes that the ratings have
the potential to improve steadily over the coming years.


QIMONDA AG: Insolvency Administrator Sells Major Holdings
---------------------------------------------------------
Christoph Hammerschmidt at EE Times Europe reports that Michael
Jaffe, the insolvency administrator of Qimonda AG, has started to
sell the company's major holdings.

According to the report, holdings that have already been sold
include Advanced Mask Technology Center (AMTC), nanotechnology
materials research center NaMLab, and the Dresden Chip Academy.

The report says Qimonda's core assets such as patents and the fabs
are still in the hand of the insolvency administrator.

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business --  approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.


STANKIEWICZ GMBH: IAC to Acquire Manufacturing Facilities
---------------------------------------------------------
just-auto.com reports that International Automotive Components
Group has agreed to acquire certain operations Stankiewicz GmbH
and Gimotive GmbH (collectively "Stankiewicz") from German
administration.

According to the report, IAC has agreed to acquire certain
facilities in Germany, Belgium, Czech Republic and Poland.  The
acquisition, the report says, will include nine manufacturing
sites with approximately 1,200 employees generating over
EUR150 million in annual sales.

The report recalls Stankiewicz filed for insolvency on
December 29, 2008 due to the severe downturn in the automotive
market.

Based in Adelheidsdorf, Germany, Gimotive/Stankiewicz is a
supplier of soundproofing insulation used by automakers.


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


* HUNGARY: IMF Approves EUR1.4 Billion Disbursement
---------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) on
Tuesday, June 23, 2009, completed the second review of Hungary's
economic performance under a program supported by a 17-month
Stand-By Arrangement (SBA).  The completion of the review enables
the immediate disbursement of SDR 1.26 billion (about EUR1.4
billion or US$1.9 billion), bringing total disbursements under the
program to SDR 7.58 billion (about EUR8.4 billion or US$11.7
billion).

The SBA was approved on November 6, 2008 for SDR 10.53 billion
(about EUR11.7 billion or US$16.2 billion).  The arrangement
entails exceptional access to IMF resources, amounting to 1,015
percent of Hungary's quota.

Following the Executive Board's discussion on Hungary, Mr. John
Lipsky, First Deputy Managing Director and Acting Chair, stated:
"Weaker than expected external demand and tighter external
financing conditions exacerbated the recession in Hungary.  In
these circumstances, policy settings have been revised to
strengthen fiscal sustainability and preserve financial stability.
More ambitious structural spending and tax reforms are under way
to strengthen fiscal sustainability, allowing the partial
accommodation of automatic stabilizers and an increase in the
fiscal deficit target in 2009.  The authorities' commitment to the
firm and timely implementation of appropriate policies is
reassuring.

"Fiscal sustainability is being strengthened through structural
spending reforms, while allowing an increase in the fiscal deficit
in 2009, owing to the partial operation of automatic fiscal
stabilizers.  The permanent budgetary savings from expanded
reforms to the pension system, social transfers, and subsidies are
encouraging.  These reforms, together with tax reform that will
shift the tax burden from labor to consumption and wealth should
boost labor participation and potential growth over the medium-
term.

"The prompt implementation of the authorities' revised program to
preserve financial stability, including the careful monitoring of
banks that receive government financial support and strengthening
bank supervision, are important steps.  It is recommended that the
authorities explore institutional arrangements that would provide
the financial supervisory agency with the necessary regulatory
powers, and that remedial action and bank resolution frameworks be
quickly strengthened.

"Monetary and exchange rate policy will continue to target
inflation over the medium term, while being prepared to act as
needed to mitigate risks to financial stability and avoid risks to
destabilizing the exchange rate.  Looking ahead, a further
strengthening of investor confidence and a corresponding easing of
financial strains would create room for interest rate cuts,"
Mr. Lipsky stated.


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I C E L A N D
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LANDSBANKI ISLANDS: Judge Wants Court to Look Into Icesave Issue
----------------------------------------------------------------
Iceland Review reports that Jon Steinar Gunnlaugsson, a judge on
the Supreme Court of Iceland, would like a court to establish
whether country is legally obligated to compensate depositors in
Icesave.

Citing Morgunbladid, the report discloses Mr. Gunnlaugsson argues
that if Iceland's Althingi parliament accepts the agreement
between Icelandic, British and Dutch authorities on Icesave, which
is currently being debated, Iceland gives up its right to have a
court determine its legal obligation.

Icesave is Landsbanki's online savings unit in the UK and the
Netherlands.

                    Deposit Guarantee Agreement

As reported in the Troubled Company Reporter-Europe on June 15,
2009, on June 12, 2009, the government of Iceland approved the
signing of an agreement to conclude the talks with Britain and
Holland on the Icesave issue.

According to the agreement, the Icelandic Depositors' and
Investors' Guarantee Fund will reimburse the UK and the Dutch
Governments the amounts paid out to eligible depositors of the
Icesave accounts in accordance with the EU Deposit Guarantee
Scheme (up to 20,887 EUR per deposit).

The Icelandic government said British and Dutch loans to the
Depositors' Guarantee Fund have a fifteen year term, but during
the first seven years neither principal nor interest amounts need
be paid.  As a precondition for the loan, the Guarantee Fund will
receive the claims of British and Dutch depositors on the
bankruptcy estate of Landsbanki.  During the seven-year non-
payment period and later, the dividends from the bankrupt estate
can be used to repay the loan partly without any additional cost.
By 2016 the guarantee of Iceland's Treasury on the remaining debt
will come into effect.

The agreement stipulates a 5.55% interest per year or 125 points
over OECD's CIRR's rate of 4.3% (Commercial Interest Reference
Rates, CIRR).  Furthermore, in case still better terms on loans
become available during this period, the possibility remains to
repay the loan in full earlier.  When the old Landsbanki went into
insolvency last October, the deposits of 345 thousand depositors
in Britain and the Netherlands became inaccessible.  The sum total
of these deposits was over 1,200 billion ISK.  The Depositors'
Guarantee Fund is responsible for 20,887 EUR per account, or about
2.35 billion pounds in the UK and 1.33 billion EUR in  the
Netherlands.

The terms of the agreement are based on a conservative estimate of
Landsbanki assets and around 75% of the Icesave deposit guarantees
are expected to be covered by these assets during the next seven
years.  The remainder may then have to be covered by the Treasury
in the next eight year period.  The British Chartered Institute of
Public Finance and Accountancy (CIPFA) however, estimates that
Landsbanki assets might cover up to 95% of the Icesave depositor
guarantees.

                         Freezing Order

As reported in the Troubled Company Reporter-Europe on June 18,
2009, on June 15, 2009, British authorities revoked the October
2008 Freezing Order on the assets of Landsbanki in Britain, which
were set using anti-terrorism legislation.  Following the fall of
Iceland's three largest banks, Icelandic banking assets in the UK
were frozen on October 8, 2008 using anti-terrorism laws.  The
Icelandic government has ever since protested the application of
this legislation against Iceland.

                   About Landsbanki Islands

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  On October 7, 2008, the Icelandic
Financial Supervisory Authority took control of Landsbanki and two
other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr.
S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison &
Foerster LLP, represents the Debtor.  When it filed for protection
from its creditors, it listed assets and debts of more than US$1
billion each.


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


AVOCA CLO IV: S&P Junks Rating on Class E Def Notes From 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class C1, C2, D,
and E deferrable notes, and the N, O, P, Q, and R combination
notes issued by Avoca CLO IV PLC.

At the same time, S&P removed from CreditWatch negative and
affirmed the class B notes and affirmed the class A notes.  S&P
also withdrew S&P's rating on the class M combination notes as
they have been decoupled into their constituent parts.

On May 29, S&P placed 10 tranches in this deal on CreditWatch
negative following S&P's preliminary review of the effect of
recent developments in European collateralized loan obligations.

The rating actions reflect S&P's view that the underlying
portfolio's credit quality has deteriorated.  S&P's analysis shows
an increase in the scenario default rates for this transaction.
At the same time, par value losses following the defaults of
corporate obligors in the underlying portfolio have resulted in a
decrease in break-even default rates when subjected to S&P's cash
flow analysis.  In S&P's opinion, the increase in SDRs and the
fall in BDRs are no longer commensurate with the ratings
previously assigned to the downgraded tranches.

The credit quality deterioration is also highlighted by the fall
in overcollateralization ratios.  According to the latest trustee
report available to us, all these tests are currently in breach of
their respective trigger levels as set out in the transaction
documents.  Overcollateralization tests have also fallen partly
due to various haircuts, such as those applied to certain 'CCC'
rated assets.

If all the tests remain in breach by the next payment date, the
remaining interest proceeds after payment of interest to the class
A noteholders will be used to delever the transaction.  This
effectively means that interest on the tranches junior to the
class A notes is likely to defer.  Under the terms of the
transaction documents, the cash flows to these classes are to be
resumed once certain coverage tests come back into compliance.

The same factors that contributed to the downgrade of the class C-
1, C-2, D, and E notes have affected the ratings on the class N,
O, P, Q, and R combo notes.  This is due to the fact that the
combo notes include components of the rated tranches.  In several
cases, some of the combos hold the unrated class F subordinated
note as a component.

Avoca CLO IV is an arbitrage cash flow CLO managed by Avoca
Capital Holdings that closed in January 2006.

As recently announced, S&P's criteria for rating cash flow CLOs
are under review.  This may affect S&P's ratings on the notes
issued by Avoca CLO IV.  The rating actions are unrelated to these
proposed changes.

                           Ratings List

                           Avoca CLO IV PLC
          EUR458 Million Floating- and Fixed-Rate Notes

      Ratings Lowered and Removed From Creditwatch Negative

                    Rating
                    ------
  Class        To              From
  -----        --              ----
  C1 Def       BBB             A/Watch Neg
  C2 Def       BBB             A/Watch Neg
  D Def        BB              BBB/Watch Neg
  E Def        CCC+            BB/Watch Neg
  N Combo      B               BBB/Watch Neg
  O Combo      B               BBB/Watch neg
  P Combo      B               BBB/Watch Neg
  Q Combo      B               BBB+/Watch Neg
  R Combo      BB              A/Watch Neg

      Rating affirmed and Removed From Creditwatch Negative

                   Rating
                   ------
  Class        To              From
  -----        --              ----
  B Def        AA              AA/Watch Neg

                Ratings Affirmed

  A1a          AAA
  A1b          AAA
  A2           AAA

               Rating Withdrawn

                   Rating
                   ------
  Class        To              From
  -----        --              ----
  M Combo      NR              AA

  NR—Not rated.


BLACKWATER HOMES: Files for Bankruptcy Protection
-------------------------------------------------
Ian Kehoe at the Sunday Business Post Online reports that
Cork-based Blackwater Homes is asking the High Court for
bankruptcy protection from its creditor.

The report relates the company will petition for an examiner to be
installed over the business, as it seeks to restructure its debts
and source fresh investment.  The company, the report discloses,
has suffered from the collapse of the property sectors and is no
longer able to pay its debts.

According to the report, documents filed with the court state that
the company is proposing the appointment of Barry Donohoe, a
partner with KPMG in Cork, as the official examiner.  The report
says if appointed, Mr. Donohoe will have 100 days to devise a
scheme of arrangement to save the business, during which time the
company will have protection from its creditors.

Blackwater Homes -- http://www.blackwaterhomes.ie/-- builds
houses in the Cork and Waterford area.


EIRLES TWO: Moody's Junks Rating on US$50 Mil. Notes From 'Ba3'
---------------------------------------------------------------
Moody's Investors Service has downgraded its rating of notes
issued by Eirles Two Limited under the Series 120.

This rating action follows the downgrade of the rating of the
Series A Euro Floating Rate Credit Linked Secured Notes due 2011
issued by Asgard CDO plc.  The repack notes issued by Eirles Two
Limited are credit linked to the Asgard CDO plc Series A notes
which are now rated Caa1.

The rating actions are:

Eirles Two Limited:

(1) US$50,000,000 Series 120 Floating Rate Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: Ba3, on review for downgrade

  -- Prior Rating Date: 9 June 2009, Ba3 rating placed on review
     for downgrade


INDEPENDENT NEWS: Standstill Agreement on EUR200-Mln Debt Extended
------------------------------------------------------------------
Anousha Sakoui Salamander Davoudi and Ben Fenton at the Financial
Times report that the board of Independent News & Media and its
creditors agreed an extension to a "standstill" agreement that
allows more time for debt restructuring negotiations.

The FT relates the company has been in the middle of talks between
shareholders and creditors about how to restructure a EUR200
million (US$278 million) bond it needed to repay in May.  Citing
people familiar with the situation, the FT discloses talks remain
constructive and both shareholders and creditors are set to meet
today, June 25, to continue negotiations.  The standstill, the FT
says, was due to expire today.

                         Rights Issue

Susan Thompson and Dan Sabbagh at The Times report Denis O'Brien,
IN&M's second-largest shareholder, is understood to have told the
board that he cannot support a rescue plan drawn up by Sir Anthony
O’Reilly, the group's former chief executive, as he believes it is
not necessarily a long-term solution to the company's debts.

The Times relates the company had wanted to launch a EUR60 million
deeply discounted rights issue to help repay the EUR200 million
bond.  The Times states under the latest version of the O'Reilly
plan, bondholders would receive EUR60 million from the rights
issue and as much as EUR50 million from planned disposals.  The
Times says without the backing of Mr. O'Brien, who owns a
26 per cent stake, the rights issue has no chance of succeeding.

The Times discloses Mr. O'Brien has put forward an alternative
plan that would involve the bondholders receiving EUR30 million to
EUR40 million of cash, in line with their face value.

On June 23, 2009, the Troubled Company Reporter-Europe, citing the
FT, reported INM is also in danger of breaching covenants on a
further EUR653 million debt, which is held by a syndicate of eight
banks and secured on the company's assets in the UK and Ireland.
The company has total debts of EUR1.4 billion, built up through
its overseas expansion, the FT said.

Headquartered in Dublin, Ireland, Independent News & Media PLC
(ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and
publishing of metropolitan, national, provincial and regional
newspapers in Australia, India, Ireland, New Zealand, South Africa
and the United Kingdom.  It also has radio operations in Australia
and New Zealand, and outdoor advertising operations in Australia,
New Zealand, South-East Asia and across Africa.  The Company also
has online operations across each of its principal markets.  The
Company has three business segments: printing, publishing, online
and distribution of newspapers and magazines and commercial
printing; radio, and outdoor advertising.  INM publishes over 200
newspaper and magazine titles, delivering a combined weekly
circulation of over 32 million copies with a weekly audience of
over 100 million consumers.  In March 2008, it acquired The Sligo
Champion.  During the year ended December 31, 2007, the Company
acquired the remaining 50% interest in Toowoomba Newspapers Pty
Ltd.


TOM HOGAN: Goes Into Voluntary Liquidation
------------------------------------------
Ciara O'Brien and David Labanyi at the Irish Times report that
Galway-based Tom Hogan Motors has gone into voluntary liquidation,
putting 200 jobs at risk.

Tom Hogan, which had garages in Clonmel, Ennis, Limerick and
Shannon, has ceased trading, the report says.  According to the
report, the company supplied Toyota and Lexus models, and took
over the BMW franchise in Galway city from Barry Motors last year.

The report discloses according to the most recent accounts filed
with the Companies Registration Office, the Tom Hogan Group
reported a pretax loss of EUR393,163 in 2006 after a writedown of
EUR992,559 for exceptional costs. Its turnover was EUR103 million
and the cost of sales EUR98 million, the report states.


* Irish Banks Face EUR35 Bln Losses as Economy Shrinks, IMF Says
----------------------------------------------------------------
Dara Doyle and Ian Guider at Bloomberg News report that according
to the International Monetary Fund, Ireland's banks face losses of
as much as EUR35 billion (US$49 billion) through 2010.

According to Bloomberg News, lenders led by Bank of Ireland Plc
and Allied Irish Banks Plc are facing mounting bad debts as
property loans sour.

                         Bad Bank

Bloomberg News discloses Finance Minister Brian Lenihan is
planning a so-called bad bank, known as the National Asset
Management Agency, to buy loans with a face value of as much as
EUR90 billion from lenders, and will lay out details of the agency
this month.  The government, Bloomberg News says, wants to take
toxic loans from its banks to revive lending and help the economy.

Bloomberg News relates the IMF said Irish gross domestic product
will shrink a cumulative 13.5 percent in the three years through
2010 as the collapse of the real-estate market ripples through the
economy.  The IMF, as cited by Bloomberg News, said Ireland "is in
the midst of an unprecedented economic correction."


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


SAFILO SPA: Moody's Junks Corporate Family Rating From 'B3'
-----------------------------------------------------------
Moody's Investors Service has downgraded Safilo S.p.A.'s Corporate
Family Rating to Caa2 from B3, the Probability of Default Rating
to Caa3 from Caa1 and the senior unsecured rating on the
EUR195 million notes due 2013 issued by Safilo Capital
International SA to Ca from Caa2.  Ratings remain under review for
further possible downgrade where they were initially placed on
February 13, 2009.

"The rating action follows the company's announcement on June 23,
2009 of its request to core banks to postpone a payment due on
June 30, 2009 under its amortizing senior loan and Moody's view
that a potential restructuring of the existing debt is more likely
at this stage", says Paolo Leschiutta, a Vice President -- Senior
Analyst in Moody's Corporate Finance Group and responsible for
Safilo.  "The Probability of Default Rating of Caa3, reflects
Moody's view of the heightened risk of default in the context of
the unsustainable capital structure of the group (as highlighted
in Moody's press release of April 28, 2009), that might result in
some restructuring of the current debt instruments that would be
view as event of default under Moody's definitions."

Moody's understands that the company is looking into measures to
stabilize its capital structure, however, the rating agency
remains concerned on the liquidity profile of Safilo and the
ongoing pressure on operating performances.  As stated previously,
Moody's questions the sustainability of the company's capital
structure in consideration of the main bank facility amortizing
schedule and the expectation that cash generation over the coming
months will be affected by weaker operating performances likely to
result in negative free cash flow.  Moody's therefore continues
its review for possible downgrade on Safilo's ratings.  The review
will mainly focus on the company's ability to improve its
liquidity profile over the short term, mainly through obtaining
covenant amendment, and to secure an adequate capital structure
going forward.  Safilo's CFR of Caa2, one notch higher than the
PDR of Caa3, reflects Moody's expectation that the family recovery
rate in case of default might be above the standard 50% average
implied by Moody's Loss Given Default model in recognition of the
strong brand value of Safilo's activities.

Downgrades:

Issuer: Safilo S.p.A.

  -- Corporate Family Rating, Downgraded to Caa2 from B3

  -- Probability of Default Rating, Downgraded to Caa3 from Caa1

Issuer: Safilo Capital International SA

  -- Senior Unsecured Regular Bond, Downgraded to Ca (LGD5, 73%)
     from Caa2

The last rating action on Safilo was implemented on April 28,
2009, when Moody's downgraded Safilo's CFR to B3, PDR to Caa1 and
the rating on the notes issued by Safilo Capital International SA
to Caa2 leaving ratings under review for further possible
downgrade.  Safilo's ratings were assigned by evaluating factors
Moody's believe are relevant to the credit profile of the issuer,
such as (i) the business risk and competitive position of the
company versus others within its industry, (ii) the capital
structure and financial risk of the company, (iii) the projected
performance of the company over the near to intermediate term, and
(iv) management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Safilo's core industry and the company's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

Headquartered in Padua, Italy, Safilo SpA is the world's leading
manufacturer of high-end and luxury eyewear, generating
approximately EUR1.15 billion of revenues during FY 2008.  It has
been listed on the Italian Stock Exchange since December 2005,
with almost 60% of floating shares.  The company operates in more
than 30 countries and sells its products in over 130 countries,
offering a strong portfolio of both owned and licensed brands.


SAFILO SPA: S&P Lowers Corporate Credit Rating to 'CC'
------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered to 'CC'
from 'CCC+' its long-term corporate credit rating on Italy-based
eyewear manufacturer Safilo SpA.  The outlook is negative.

At the same time, S&P lowered to 'C' from 'CCC' the issue rating
on the EUR195 million 9.625% second-lien notes due 2013 issued by
Safilo Capital International S.A.  The recovery rating on the debt
is unchanged at '5', indicating S&P's expectation of modest (10%-
30%) recovery in the event of a payment default.

In addition, Standard & Poor's removed all ratings from
CreditWatch, where they were placed with negative implications on
Feb. 13, 2009.

The downgrade follows Safilo's announcement on June 23, 2009, that
it is in discussion with its senior lenders regarding a covenant
amendment and a deferral of the June 30, 2009, payment of the
amortizing facility A of its senior bank loan due in December
2011.

"In S&P's view, this request reflects Safilo's increasingly
fragile position due to ongoing operating underperformance and the
need to secure its liquidity position," said Standard & Poor's
credit analyst Diego Festa.

According to Safilo's unaudited results, net sales in the first
quarter of financial 2009 were down by 11.7% year on year, and
EBITDA was down by 35.4%.  The EBITDA margin fell 380 basis points
to 10.5%.  In light of falling revenues, Safilo's high fixed
costs--including those for marketing, staff, and operating
leases--weigh even more heavily on profitability.  In the same
period, free operating cash flow was negative at EUR42.8 million
from negative EUR17.4 million in 2007.  This decline was the main
cause of an increase in reported net debt to EUR617.7 million from
EUR570.0 million on Dec. 31, 2008.  On March 31, 2009, the
annualized ratio of reported net debt to EBITDA was 5.6x.

S&P could lower the ratings to 'D' (default) or 'SD' (selective
default) if Safilo were to fail to meet any of its obligations.
S&P could also lower the corporate credit ratings to 'D' upon a
completion of a distressed exchange offer, which under Standard &
Poor's methodology means any offer constituting less than the
original promise without adequate offsetting compensation.  A
positive rating action could occur if Safilo secures the necessary
funding to mitigate the current negative cash flow trends and
pressure on its liquidity position.


* Moody's Confirms 'Ba1' Issuer Rating on City of L'Aquila
----------------------------------------------------------
Moody's Investors Service has confirmed the Ba1 issuer rating of
the City of L'Aquila.  The outlook is developing.  This action
concludes Moody's review for possible downgrade initiated on
May 12, 2009.

"The confirmation of the Ba1 rating reflects easing concerns about
the city's willingness and capacity to regularly meet debt service
payments, as well as more concrete prospects that the central
government will provide L'Aquila with extraordinary funding to
compensate for declining revenues," said Francesco Soldi, Moody's
lead analyst for L'Aquila.  "However, the developing outlook
reflects the uncertainty regarding the amount and timing of any
extraordinary funding from the government, and the extent of the
economic and financial challenges facing the city over the medium
to long term."

Among the emergency measures adopted in the aftermath of the
disaster, the central government provided for the postponement of
debt service payments towards domestic lenders due in 2009.
Moody's understands that, despite the legal protection offered by
the national legislation, L'Aquila has continued to regularly
service its debt obligations since then and remains committed to
honouring its financial obligations on a timely basis as they come
due.  The city's commitment is supported by a comfortable cash
position, which has been maintained thanks to strict control over
expenditures.

The same legislation establishes a temporary suspension of
personal and corporate tax payments.  Therefore, in 2009 the
municipal budget is suffering a decline in tax revenues and
proceeds from public services, which account for around two-thirds
of its operating budget (2008: EUR68 million).  Although the
government's legislation does not provide any indication on this
point, Moody's has received comfort that Italy's government will
provide L'Aquila with additional funds to offset the loss of own-
source revenue.

As of the end of 2008, the city reported outstanding debt of
EUR49.5 million, split almost equally between bank loans and
domestic bonds.  Its next debt service payments (interest and
principal) are due by the end of June, equating to around
EUR2 million.

The Ba1 rating, well below the average of Italian local
governments, continues to reflect the significant efforts required
to restore ordinary operations and important economic and
financial challenges going forward.

Adequate and structural funding from the central government to
ensure the city's financial stability and recovery will support
upward rating movements.  Conversely, the absence of adequate and
timely funding from the centre could result in liquidity pressure
and trigger downward rating adjustments.

L'Aquila's modest economic base is expected to be severely
challenged in 2009-10 by the depressed macroeconomic conditions
facing the country and the earthquake.

The last rating action with respect to L'Aquila was implemented on
May 12, 2009, when Moody's downgraded its issuer rating to Ba1
from A1 and placed the rating under review for possible further
downgrade.


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


AK BULAK: Creditors Must File Claims by July 3
----------------------------------------------
Creditors of LLP AK Bulak have until July 3, 2009, to submit
proofs of claim to:

         Aimanov Str. 194
         Almaty
         Kazakhstan
         Tel: 8 701 713 23-83

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
         Baizakov Str. 273b
         Almaty
         Kazakhstan


BIOTECH 2005: Creditors Must File Claims by July 3
--------------------------------------------------
Creditors of LLP Biotech 2005 have until July 3, 2009, to submit
proofs of claim to:

         Micro district Samal, 15-29
         Taldykorgan
         Almaty
         Kazakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on December 18, 2008,
after finding it insolvent.

The Court is located at:

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


EURASIA INSURANCE: S&P Raises Financial Strength Rating to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term counterparty credit and insurer financial strength
ratings on Kazakhstan-based insurer Eurasia Insurance Co. to 'BB-'
from 'B+'.  The outlook is stable.  At the same time, S&P raised
its Kazakhstan national scale ratings to 'kzA-' from 'kzBBB+'.

"The upgrade reflects Eurasia's sustained good operating
performance to date and the improved quality and diversification
of its investments, despite a tough economic and operating
environment," said Standard & Poor's credit analyst Victor
Nikolskiy.

The ratings reflect the significant economic and industry risks
that can affect insurers and other financial institutions in the
domestic Kazakh market, especially in the current operating
environment.  Eurasia faces potentially high credit risks stemming
from exposure to the troubled local banking sector and the company
has only a short track record in new lines and limited geographic
coverage.  The rapid increase in inward reinsurance premiums and
strong business growth in the markets of the Commonwealth of
Independent States present especially significant risks.

Eurasia's improved, extremely strong risk-based capital ratios
help mitigate these risks, as do its position as the leading
domestic insurer and reinsurer in Kazakhstan, its improved
investment portfolio, and its good operating performance, as shown
through a consistent technical and overall earnings performance in
recent years.

S&P believes that Eurasia benefits from privileged access to the
extensive commercial activities of its small, but influential
ultimate shareholder group.

S&P's view is that Eurasia will maintain its position as the
leading Kazakh commercial insurer, with a good operating
performance, an increasingly geographically diversified business
spread, and with marginal overall capitalization, despite very
strong risk-based capital ratios.  S&P expects the ratio of inward
reinsurance premiums written to total premiums to increase in
2009.  However, S&P also expects about 80% of the reinsurance
exposures assumed to originate in CIS markets.  Furthermore, S&P
does not expect Eurasia's already high exposure to Kazakhstan's
troubled banking sector to increase.

S&P would revise the outlook to negative or take a negative rating
action if asset quality or operating performance deteriorated
significantly, or if the currently high economic and industry
risks of the region became even more acute.

"A positive rating action is currently unlikely until the overall
operating environment in Kazakhstan eases significantly," said
Mr. Nikolskiy.


KAZ TECHNO: Creditors Must File Claims by July 3
------------------------------------------------
LLP Kaz Techno Plast is currently undergoing liquidation.
Creditors have until July 3, 2009, to submit proofs of claim to:

         Nekrasov Street
         Serebryansk
         Zyryanovsky
         East Kazakhstan
         Kazakhstan


SAR SU: Creditors Must File Claims by July 3
--------------------------------------------
Creditors of LLP Sar Su Ram have until July 3, 2009, to submit
proofs of claim to:

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

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on April 2,
2009, after finding it insolvent.

The Court is located at:

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


STANDART REGION: Creditors Must File Claims by July 3
-----------------------------------------------------
LLP Standart Region Pipe is currently undergoing liquidation.
Creditors have until July 3, 2009, to submit proofs of claim to:

         Chaikovsky Str. 144a
         Almaty
         Kazakhstan


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


PAN ASIA: Creditors Must File Claims by July 24
-----------------------------------------------
The branch of LLP Pan Asia Global Co Ltd is currently undergoing
liquidation.  Creditors have until July 24, 2009, to submit proofs
of claim.

Inquiries can be addressed to (0-543) 20-65-94.


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


GATE GOURMET: S&P Puts 'B' Corp. Rating on CreditWatch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
negative implications its 'B' long-term corporate credit ratings
on Luxembourg-based airline caterer Gate Gourmet Holdings S.C.A.
and its 100%-owned subsidiary Gate Gourmet Borrower LLC.

At the same time, the 'B' issue ratings on Gate Gourmet Borrower's
Swiss franc 725 million senior secured term facilities were placed
on CreditWatch with negative implications.  The recovery ratings
on these facilities are unchanged at '4', indicating S&P's
expectation of average (30%-50%) recovery of principal and pre-
petition interest in the event of a payment default.  In addition,
the 'BB-' issue rating on the senior secured CHF125 million
revolving credit facility was placed on CreditWatch with
negative implications.  The recovery rating is unchanged at '1',
indicating S&P's expectation of very high (90%-100%) recovery in
the event of a payment default.

"The CreditWatch placement reflects S&P's view that underlying
trading conditions and prospects for suppliers to the airline
industry have deteriorated sharply in recent months.  Weakening
demand for air travel is, in S&P's view, likely to adversely
affect the group's operating performance this year and could place
pressure on Gate Gourmet's financial flexibility," said Standard &
Poor's credit analyst Mohammed Fayek.

Gate Gourmet's core customer base -- the airline carriers -- are
witnessing tough market conditions as lower volumes and prices and
a sharp increase in fuel costs since the beginning of the year
have put pressure on its operating performance.  As a result,
major carriers worldwide have made several profit warnings and
capacity reductions for 2009.  S&P believes that passenger
traffic, which is a key measure of demand for airline catering
services, will remain at depressed levels for at least the
remainder of 2009, which is likely to place considerable pressure
on Gate Gourmet's trading performance.  S&P notes that forecasts
made in June 2009 by the International Air Transportation
Association anticipate an 8% decrease in airline passenger traffic
in 2009.

During the first quarter of 2009, Gate Gourmet's revenues declined
by 3% at constant currency levels compared with the same period in
2008.  Although the group has some flexibility to adjust its cost
structure to demand, margins were hit by a decline in volumes.
Gate Gourmet's funds from operations to debt for the 12 months
ended March 31, 2009, was about 19%, which is commensurate
with the 'B' ratings.  However, the marked deterioration in the
revenue and cost environment for airlines in recent months will,
in S&P's view, fully test Gate Gourmet's credit measures over the
coming quarters.

The ratings continue to reflect the group's exposure to the
cyclical and price-competitive commercial airline industry,
limited bargaining power, sensitive operating margins, and highly
leveraged financial structure.  These factors are partially offset
by the group's leading market position with widespread geographic
coverage and low capital requirements.

To resolve the CreditWatch placement, Standard & Poor's will
discuss with management the group's current and future trading
expectations, the full details of any cost-saving measures
targeted to mitigate lower passenger traffic volumes, liquidity
forecasts, and anticipated financial performance relative to
covenant requirements.

The main issues concern the group's ability to offset the adverse
effect of weakening trading conditions on its operating
performance, the impact on liquidity and financial flexibility,
and how its credit measures will develop relative to the levels
commensurate with the ratings.

Based on current information, any lowering of the corporate credit
ratings would likely be limited to one notch.


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


KONINKLIJKE AHOLD: S&P Raises Sr Unsecured Notes Rating From 'BB+'
------------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long- and
short-term corporate credit ratings on Dutch food retailer
Koninklijke Ahold N.V. to 'BBB/A-2' from 'BBB-/A-3'.  The outlook
is stable.

S&P also raised the ratings on the group's senior unsecured notes
to 'BBB-' from 'BB+'.

"Our upgrade follows Ahold's strong earnings reported in first-
quarter 2009, enabling the group to maintain its solid financial
metrics disclosed at year-end 2008," said Standard & Poor's credit
analyst Nicolas Baudouin.

Specifically, S&P expects the group will sustain funds from
operations to debt at between 30% and 35% and debt to EBITDA at
about 2.7x.

The ratings continue to reflect S&P's view of Ahold's satisfactory
business profile, underpinned by the favorable characteristics of
the food retail market where the group enjoys leading positions in
The Netherlands and on the U.S. East coast.  Ahold's once highly
leveraged financial profile has progressively shifted from
aggressive to intermediate.  Retailing trends remain challenging
in the U.S., but the group nevertheless reported solid first-
quarter 2009 results in this region.

Ahold traditionally delivers strong trading performances in The
Netherlands, where the group's Albert Heijn banner is gradually
gaining market share (now exceeding 31%).  This banner generates
above-average profitability, reporting a 7.2% EBIT margin in 2008.

The bulk of the group's U.S. sales stem from the Stop & Shop
banner. Although this label is profitable, S&P believes it
continues to face the need to adapt to difficult conditions.
Ahold completed its "VIP" program in 2008.  The program, which
hinges on price repositioning and improving price perception, has
positioned Stop & Shop and Giant Landover well for the current
market conditions.

Ahold's first-quarter 2009 figures confirmed the positive sales
and operating trends observed in 2008, with the group continuing
to reap the benefits of its U.S. VIP program.  Ahold reported a
17.9% jump in operating income, on favorable exchange rate effects
and the group's enhanced market positions.

"The stable outlook reflects S&P's anticipation that Ahold will
likely maintain its credit metrics at their current levels, which
are in line with S&P's guidelines for the ratings," said
Mr. Baudouin.

S&P expects that FFO to debt will remain in the 30%-35% range and
that debt to EBITDA will stay at about 2.7x.

Because Ahold continued to report solid performances in the
turbulent U.S. retail market during the first quarter of 2009, a
downside scenario seems remote to us at this stage.  It would
primarily be triggered by an unexpected material debt-financed
acquisition, which S&P does not foresee in the near future.  S&P
will also closely monitor the group's exposure to multi-employer
retirement plans.

Similarly, a further upgrade is unlikely in the short term given
the competitiveness of the markets where Ahold operates.


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


ELISTINSKIY HOUSE: Creditors Must File Claims by July 5
-------------------------------------------------------
The Arbitration Court of Kalmykia commenced bankruptcy supervision
procedure on OJSC Elistinskiy House-Building Enterprise (PSRN
1030800781770).  The case is docketed under Case No. ?22–442/2009.

Creditors of have until July 5, 2009, to submit proofs of claims
to:

         D. Ochirov
         Temporary Insolvency Manager
         Office 404
         Gubarevicha Str. 5
         Elista
         358000 Kalmykia
         Russia

The Debtor can be reached at:

         OJSC Elistinskiy House-Building Enterprise
         Lenina Str. 315
         Elista
         Kalmykia
         Russia


LATES CJSC: Creditors Must File Claims by July 5
------------------------------------------------
Creditors of CJSC Lates (Construction) have until July 5, 2009, to
submit proofs of claims to:

         S. Kungurov
         Temporary Insolvency Manager
         Melnikayte Str. 106-253
         Tumen
         Russia

The Arbitration Court of Tumenskaya will convene at 10:30 a.m. on
August 27, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?70–2773/2009.


MUKHTOLOVSKIY FORESTRY: Creditors Must File Claims by July 5
------------------------------------------------------------
The Arbitration Court of Nizhegorodskaya commenced bankruptcy
supervision procedure on OJSC Mukhtolovskiy Forestry.  The case is
docketed under Case No. ?43–5095/2009 27–48.

Creditors have until July 5, 2009, to submit proofs of claims to:

         A. Romanov
         Temporary Insolvency Manager
         Post User Box 22
         Lyskovo 2
         606212 Nizhegorodskaya
         Russia

The Debtor can be reached at:

         OJSC Mukhtolovskiy Forestry
         Kosmodemyanskoy Str. 81
         Mukhtolovo
         Ardatovskiy
         Nizhegorodskaya
         Russia


STABILITY LLC: Creditors Must File Claims by July 5
---------------------------------------------------
The Arbitration Court of Volgogradskaya commenced bankruptcy
supervision procedure on LLC Stability (TIN 3442077502, PSRN
1053477209081) (Construction).  The case is docketed under Case
No. ?12–8260/09.

Creditors have until July 5, 2009, to submit proofs of claims to:

         I. Bormotova
         Temporary Insolvency Manager
         Post User Box 37
         400074 Volgograd
         Russia

The Debtor can be reached at:

         LLC Stability
         Lenina Prospect 103
         Volgograd
         Russia


USMANSKIY HOUSE: Creditors Must File Claims by July 5
-----------------------------------------------------
The Arbitration Court of Lipetskaya commenced bankruptcy
proceedings against LLC Usmanskiy House-Building Items Plant (TIN
4816006710, PSRN 1054800125632) after finding the company
insolvent.  The case is docketed under Case No. ?36–2642/2008.

Creditors have until July 5, 2009, to submit proofs of claims to:

         T. Kozhenkova
         Insolvency Manager
         Office 14
         Ignatyeva Str. 29
         398002 Lipetsk
         Russia

The Debtor can be reached at:

         LLC Usmanskiy House-Building Items Plant
         Nekrasova Str. 19A
         Usman'
         399373 Lipetskaya
         Russia


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


BANCO SANTANDER: S&P Corrects Ratings on Class D and E Notes
------------------------------------------------------------
S&P is republishing this media release, originally published on
April 1, 2009, to correct the ratings on Fondo de Titulizacion de
Activos Santander Hipotecario 5's class D and E notes in the
ratings list.  S&P originally incorrectly stated these ratings as
'BB' and 'B', respectively, instead of 'BBB' and 'BB'.  A
corrected version follows.

Standard & Poor's Ratings Services has taken rating actions on
five Spanish residential mortgage-backed securities transactions
originated and serviced by Banco Santander S.A. (Santander;
AA/Negative/A-1+).

Specifically, S&P:

   -- Raised the ratings on the class B, C, and D notes issued by
      Fondo de Titulizacion de Activos Santander Hipotecario 1;

   -- Placed on CreditWatch negative the class A notes and
      downgraded the class B, C, D and E notes issued by Fondo de
      Titulizacion de Activos Santander Hipotecario 2, Fondo de
      Titulizacion de Activos Santander Hipotecario 3, and Fondo
      de Titulizacion de Activos Santander
      Hipotecario 4; and

   -- Placed the ratings on the class D and E notes issued by
      Fondo de Titulizacion de Activos Santander Hipotecario 5 on
      CreditWatch negative.

These rating actions follow a full credit and cash flow analysis
of the most recent transaction information that S&P has received.
The results of S&P's analysis showed that for those tranches
either placed on CreditWatch negative or lowered, the credit
enhancement available was not commensurate with the current
ratings, or that the available credit enhancement may be
insufficient.

As a result of the ongoing deleveraging of Santander 1, the
aggregate risk measures are gradually improving.  The weighted-
average LTV ratio of the loans has fallen to approximately 72%
from 88% at closing, and the current arrears levels are relatively
stable, below the average recorded for the Spanish market.

In contrast, the mortgage portfolios underlying Santander
Hipotecario 2, 3, 4, and 5 are generating high levels of arrears.
Loans more than 90 days in arrears, including defaulted loans and
repossessions, represent 3.9% (Santander 2), 7.5% (Santander 3),
10.3% (Santander 4), and 2.5% (Santander 5) of the current
mortgage portfolios, well above the average for other Spanish
RMBS transactions with similar seasoning.  Recent performance data
combined with the portfolio characteristics suggest that these
numbers will continue to rapidly increase over the next few
quarters.  Indeed, these severe delinquencies have already broadly
doubled in Santander 2 and 3, and quadrupled in Santander 4 over
the last quarter.

All the transactions feature a structural mechanism that traps
excess spread to provide for defaults, which are defined as
arrears greater than 18 months or those loans classified as
defaulted by the servicer.  As a result of higher delinquencies
and this structural feature, Santander 3 and Santander 4 have
already fully drawn their cash reserves.

The effect of the reserve drawings is twofold.  On the one hand,
it will not allow excess spread to flow from the deals for the
foreseeable future, but on the other it impairs the internal
liquidity of the transactions for as long as the recoveries on
defaulted assets are not received.

When the cumulative default rates in Santander 2, 3, 4 and 5 reach
a certain percentage of the initial balance (based on the balance
of defaulted loans), the priority of payments would be altered so
as to shut off interest payments to the related class of notes.
In Santander 1, interest in the subordinated classes should be
deferred if principal deficiencies reach certain levels for
each class of notes.  The rating actions therefore also take into
account the effect of nonpayment of interest in the light of
possible defaults, in addition to S&P's assessment of the default
risk in the residual portfolios.

                           Ratings List

                         Ratings Raised

     Fondo de Titulizacion de Activos Santander Hipotecario 1
EUR1.875 Billion Residential Mortgage-Backed Floating-Rate Notes

                    Rating
                    ------
  Class      To                    From
  -----      --                    ----
  B          AA+                   AA
  C          AA-                   A+
  D          A-                    BBB+

              Ratings Placed On Creditwatch Negative

    Fondo de Titulizacion de Activos Santander Hipotecario 2
   EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an
       Overissuance Of EUR17.6 Million Floating-Rate Notes

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

Fondo de Titulizacion de Activos Santander Hipotecario 3
EUR2.8 Billion Mortgage-Backed Floating-Rate Notes and an
Overissuance Of EUR22.4 Million Floating-Rate Notes

                    Rating
                    ------
  Class       To                    From
  -----       --                    ----
  A1          AAA/Watch Neg         AAA
  A2          AAA/Watch Neg         AAA
  A3          AAA/Watch Neg         AAA

Fondo de Titulizacion de Activos Santander Hipotecario 4
EUR1.23 Billion Mortgage-Backed Floating-Rate Notes and an
Overissuance Of EUR14.8  Million Floating-Rate Notes

                    Rating
                    ------
  Class      To                    From
  -----      --                    ----
  A1          AAA/Watch Neg        AAA
  A2          AAA/Watch Neg        AAA
  A3          AAA/Watch Neg        AAA

Fondo de Titulizacion de Activos Santander Hipotecario 5
EUR1.375 Billion Mortgage-Backed Floating-Rate Notes and an
Overissuance Of EUR24.7 Million Floating-Rate Notes

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


      Ratings Lowered and Removed From Creditwatch Negative

Fondo de Titulizacion de Activos Santander Hipotecario 2
EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an
Overissuance Of EUR17.6 Million Floating-Rate Notes

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

Fondo de Titulizacion de Activos Santander Hipotecario 3
EUR2.8 Billion Mortgage-Backed Floating-Rate Notes and an
Overissuance Of EUR22.4 Million Floating-Rate Notes

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

Fondo de Titulizacion de Activos Santander Hipotecario 4
EUR1.23 Billion Mortgage-Backed Floating-Rate Notes and an
Overissuance Of EUR14.8 Million Floating-Rate Notes

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

                         Ratings Lowered

    Fondo de Titulizacion de Activos Santander Hipotecario 2
   EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an
       Overissuance Of EUR17.6 Million Floating-Rate Notes

                    Rating
                    ------
  Class      To                    From
  -----      --                    ----
  B          A                     AA-


CAJA SAN FERNANDO: S&P Junks Ratings on Four Classes of Notes
-------------------------------------------------------------
Standard & Poor's Rating Services lowered its credit ratings on
all five classes of notes series US$ issued by Caja San Fernando
CDO I Fondo de Titulizacion de Activos.  At the same time, S&P
removed four tranches from CreditWatch negative, where they were
placed on March 10.

The rating actions follow S&P's assessment of a severe
deterioration in the credit quality of the underlying portfolio,
which comprises primarily 2002 and 2003 vintage U.S.
collateralized debt obligations of asset-backed securities.  Up to
one-third of the portfolio is currently rated 'CC' or
'D'.  S&P's analysis indicates that recoveries on defaulted assets
are likely to be significantly lower than assumed in S&P's
original ratings analysis.

While S&P's analysis indicates that the class A1 notes currently
benefit from adequate principal and interest coverage, S&P has
lowered the rating due to the limited number of performing assets
now remaining in the portfolio.  In a concentrated portfolio, the
default of a small number of obligors can rapidly reduce par
coverage levels.

According to S&P's analysis, par coverage on the class A2 notes
depends on recoveries from assets currently in default.  Interest
proceeds from the portfolio appear to be sufficient to make timely
payments of interest on the notes.  However, in S&P's opinion,
there is an increased risk of shortfalls in principal if
recoveries on defaulted assets are lower than originally
anticipated.  As a result, S&P is lowering its rating on this note
to 'CCC-'.

S&P lowered to 'CC' the ratings on class B, C, and D notes as
S&P's analysis indicates that the probability of ultimate
repayment of principal is remote.  Furthermore, interest on these
notes is paid subsequent to repayments on the class A1 and A2
notes in the event of a breach of the overcollateralization tests.
As such, in S&P's opinion, there is a significant probability that
interest payments on the class B, C, and D notes will be deferred.

                           Ratings List

    Caja San Fernando CDO I Fondo de Titulizacion de Activos
          US$171 Million Fixed- and Floating-Rate Notes

                          Rating Lowered

                       Rating
                       ------
  Class        To                     From
  -----        --                     ----
  A1           BB                     AAA

      Ratings Lowered and Removed From CreditWatch Negative

                       Rating
                       ------
  Class        To                     From
  -----        --                     ----
  A2           CCC-                   AAA/Watch Neg
  B            CC                     AA/Watch Neg
  C            CC                     A/Watch Neg
  D            CC                     BBB/Watch Neg


RURAL HIPOTECARIO: Fitch Affirms Junks Ratings on Class E Notes
---------------------------------------------------------------
Fitch Ratings has upgraded two and affirmed 22 tranches of Rural
Hipotecario series Spanish RMBS transactions.

The rating actions reflect strong credit enhancement levels within
these transactions and the overall steady performance of the
underlying collateral portfolios.  Especially for older vintage
transactions within the series where the upgrades have taken
place, arrears levels as volume and as a percentage of the current
outstanding collateral have stabilized.  However, for recent
vintage transactions, such as the Rural Hipotecario VIII, IX and
Global I deals, a continuous increase in arrears levels has been
observed.  This increase is expected to cause loans in arrears to
move towards higher arrears buckets and become defaulted once they
reach 18 months plus in arrears.  At this point, these loans will
be provisioned by the transaction and absorbed by available excess
spread.

All transactions within the series feature an amortizing reserve
fund; however, due to the current arrears levels the reserve funds
are not expected to amortize over the next six quarters, providing
an additional support for junior notes against possible losses.
It should be noted that these transaction have reported
significantly low levels of defaults to date in comparison to
other transactions within the Spanish RMBS market.  However, given
the current economic climate -- with house price declines, rising
unemployment and limited refinancing opportunities -- defaults are
expected to trend upwards.  Although older vintage transaction
have experienced a strong build up of credit enhancement to cope
with higher defaults, support provided by the credit enhancement
levels for more recent vintage transactions are highly dependent
on the performance of their respective collateral portfolios.

Rating actions are listed below.

Rural Hipotecario VI, Fondo de Titulizacion de Activos;

  -- Class A (ISIN ES0374306001): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class B (ISIN ES0374306019): upgraded to 'AA' from 'A+';
     Outlook Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class C (ISIN ES0374306027): affirmed at 'BBB+'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-2'

Rural Hipotecario VII, Fondo de Titulizacion de Activos;

  -- Class A1 (ISIN ES0366366005): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class A2 (ISIN ES0366366013 ): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class B (ISIN ES0366366021): upgraded to 'AA' from 'AA-';
     Outlook Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class C (ISIN ES0366366039): affirmed at 'BBB-'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

Rural Hipotecario VIII, Fondo de Titulizacion de Activos;

  -- Class A2a (ISIN ES0366367011): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class A2b (ISIN ES0366367029): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class B (ISIN ES0366367037): affirmed at 'A+'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-2'

  -- Class C (ISIN ES0366367045): affirmed at 'BBB'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-2'

  -- Class D (ISIN ES0366367052): affirmed at 'BB+'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-2'

  -- Class E (ISIN ES0366367060): affirmed at 'CC'; assigned a
     Recovery Rating of 'RR3'

Rural Hipotecario Global I, Fondo de Titulizacion de Activos;

  -- Class A (ISIN ES0374273003): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class B (ISIN ES0374273011): affirmed at 'A'; Outlook revised
     to Stable from Positive; assigned a Loss Severity Rating of
     'LS-1'

  -- Class C (ISIN ES0374273029): affirmed at 'BBB+'; Outlook
     revised to Stable from Positive; assigned a Loss Severity
     Rating of 'LS-3'

  -- Class D (ISIN ES0374273037): affirmed at 'BB'; Outlook
     revised to Stable from Positive; assigned a Loss Severity
     Rating of 'LS-3'

  -- Class E (ISIN ES0374273045): affirmed at 'CC'; assigned a
     Recovery Rating of 'RR3'

Rural Hipotecario IX, Fondo de Titulizacion de Activos;

  -- Class A2 (ISIN ES0374274019): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class A3 (ISIN ES0374274027): affirmed at 'AAA'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-1'

  -- Class B (ISIN ES0374274035): affirmed at 'A+'; Outlook
     Stable; assigned a Loss Severity Rating of 'LS-3'

  -- Class C (ISIN ES0374274043): affirmed at 'BBB'; Outlook
     revised to Negative from Stable; assigned a Loss Severity
     Rating of 'LS-3'

  -- Class D (ISIN ES0374274050): affirmed at 'BB+'; Outlook
     revised to Negative from Stable; assigned a Loss Severity
     Rating of 'LS-4'

  -- Class E (ISIN ES0374274068): affirmed at 'CCC'; assigned a
     Recovery Rating of 'RR2'


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


DIR ARISDORF: Creditors Must File Claims by July 16
---------------------------------------------------
Creditors of DIR Arisdorf AG are requested to file their proofs of
claim by July 16, 2009, to:

         DIR Arisdorf AG
         Buendtenweg 26
         4423 Hersberg
         Switzerland

The company is currently undergoing liquidation in Arisdorf.  The
decision about liquidation was accepted at a general meeting held
on December 10, 2008.


HIS JEANSWEAR:  Creditors Must File Claims by July 22
-----------------------------------------------------
Creditors of HIS Jeanswear AG are requested to file their proofs
of claim by July 22, 2009, to:

         Emanuel Kunz
         Stampfenbachstrasse 52
         8006 Zurich
         Switzerland

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


KIEFER, MOSIMANN: Claims Filing Deadline is July 17
---------------------------------------------------
Creditors of Kiefer, Mosimann Kommunikation AG are requested to
file their proofs of claim by July 17, 2009, to:

         Kiefer, Mosimann Kommunikation AG
         Bluemlisalpstrasse 35
         8006 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at a general meeting held
on April 28, 2009.


MODEATELIER BRIGITTE: Claims Filing Deadline is July 8
------------------------------------------------------
Creditors of Modeatelier Brigitte Roth GmbH are requested to file
their proofs of claim by July 8, 2009, to:

         Hasler Treuhand GmbH
         Hauptstrasse 15
         9424 Rheineck
         Switzerland

The company is currently undergoing liquidation in St. Margrethen.
The decision about liquidation was accepted at the shareholders'
meeting held on January 21, 2009.


SANSAFE AG: Creditors Have Until July 27 to File Claims
-------------------------------------------------------
Creditors of Sansafe AG are requested to file their proofs of
claim by July 27, 2009, to:

         Leonhard Toenz
         Liquidator
         Seestrasse 39
         8700 Kuesnacht
         Switzerland

The company is currently undergoing liquidation in Zürich.  The
decision about liquidation was accepted at a general meeting held
on April 30, 2009.


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


PANICH LTD: Creditors Must File Claims by July 1
------------------------------------------------
Creditors of LLC Panich Ltd (code EDRPOU 33746249) have until
July 1, 2009, to submit proofs of claim to:

         S. Kitsul
         Insolvency Manager
         Office 15
         Leskovskaya Str. 28
         02097 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 13, 2009.  The case is docketed under
Case No. 15/114-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 Panich Ltd
         Yaroslavsky Lane 3-B
         04071 Kiev
         Ukraine


PRIVATE FINANCE: Creditors Must File Claims by July 1
-----------------------------------------------------
Creditors of LLC Private Finance Service (code EDRPOU 33595161)
have until July 1, 2009, to submit proofs of claim to:

          S. Kitsul
          Insolvency Manager
          Office 15
          Leskovskaya Str. 28
          02097 Kiev
          Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 13, 2009.  The case is docketed under
Case No. 15/116-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 Private Finance Service
          Elektrikov Str. 28-A
          04176 Kiev
          Ukraine


PRIVATE TRADE: Creditors Must File Claims by July 1
---------------------------------------------------
Creditors of LLC Private Trade Service (code EDRPOU 33595120) have
until July 1, 2009, to submit proofs of claim to:

         S. Kitsul
         Insolvency Manager
         Office 15
         Leskovskaya Str. 28
         02097 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 13, 2009.  The case is docketed under
Case No. 15/115-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 Private Trade Service
         Pivnichno-Siretskaya Str. 3
         04136 Kiev
         Ukraine


SIGMA-RESOURCE LLC: Creditors Must File Claims by July 1
--------------------------------------------------------
Creditors of LLC Sigma-Resource (code EDRPOU 34047806) have until
July 1, 2009, to submit proofs of claim to Y. Vanzhula, the
company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 14, 2009.  The case is docketed under
Case No. 43/284.

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 Sigma-Resource
         P. Lumumba Str. 15
         01042 Kiev
         Ukraine


TRADE FINANCE: Creditors Must File Claims by July 1
---------------------------------------------------
Creditors of LLC Trade Finance Reserve (code EDRPOU 33595177) have
until July 1, 2009, to submit proofs of claim to:

         S. Kitsul
         Insolvency Manager
         Office 15
         Leskovskaya Str. 28
         02097 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 13, 2009.  The case is docketed under
Case No. 15/117-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 Trade Finance Reserve
          Borichev Tok Str. 35
          04070 Kiev
          Ukraine


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


BAXI GROUP: Secures Waiver on Leveraged Loans
---------------------------------------------
Alasdair Reilly at Reuters reports that Baxi Group secured a
standstill and waiver agreement on its leveraged loans.

Reuters relates in mid June Baxi warned that if merger talks with
Dutch heating systems group De Dietrich Remeha did not lead to an
agreed transaction before June 27, it would not be able to make
GBP22.3 million (US$36.94 million) of loan repayments that were
also due on that day.

According to Reuters, lenders agreed not to demand repayment of
the loan by accelerating Baxi's debt on or before August 31.
Baxi, Reuters discloses, also agreed a waiver with most of its
mezzanine note lenders to ignore a cross default on the note
agreement, which would be triggered by any default under the
senior facility.

Headquartered in Derby, Baxi Group -- http://www.baxigroup.com--
makes boilers, water heaters, space heaters, and radiators for
commercial buildings and private residences.  Formed in 2000 after
the merger of Newmond and Baxi, the company is controlled by
private equity firms BC Partners and Electra.  Baxi Group has
manufacturing facilities in Denmark, France, Germany, Italy,
Spain, and the UK.  The company improved its position in the
continental European market in 2005 when it purchased Spanish
boiler maker Roca, adding to subsidiaries already located across
the continent.  Baxi is in merger talks with smaller Dutch rival
De Dietrich Remeha.


BRIXTON PLC: Fitch Maintains LT Issuer Default Rating at 'BB'
-------------------------------------------------------------
Fitch Ratings has maintained Brixton Plc's Long-term Issuer
Default Rating of 'BB' and senior unsecured rating of 'BB+' on
Rating Watch Negative.  Brixton's Short-term IDR is rated 'B'.
The company is one of the UK's two largest Real Estate Investment
Trusts, specializing in industrial and business space.

The RWN was initially put in place on March 4, 2009 following
unexpected management changes and increasing concerns over the
lack of a strategy for addressing reduced covenant headroom, and
debt maturities of GBP380 million including a GBP275 million bond.
Fitch has maintained Brixton's Long-term IDR and senior unsecured
rating on RWN to the end of July 2009 following Brixton's
announcement that it is in negotiation with its banks to refinance
all its existing banking facilities, and that it has successfully
negotiated a waiver of any potential breaches of the asset cover
ratio covenant (minimum 1.67x, actual 1.86x at FY08) under those
facilities prior to July 31, 2009.  The waiver of this covenant
enables Brixton to seek to reorganize its existing bank debt
facilities without facing the prospect of an imminent breach and
subsequent event of default on these bank facilities at a 30 June
2009 test date.  Fitch will review the Rating Watch Negative on or
by July 31, 2009.  In the event that a successful renegotiation of
the bank debt facilities does not occur, Fitch is likely to
downgrade the ratings by at least one notch.

The ratings also remain on RWN as the gearing covenant on the
2010, 2015 and 2019 bonds (175% maximum gearing) is also tested
based upon the June 30, 2009 balance sheet, and further valuation
declines could lead to a possible breach of this covenant when it
is tested following release of the H109 accounts (likely end-
August 2009).  This is particularly the case for the 2010 bonds,
which include Brixton's financial derivatives liability (GBP94.9m
at February 2009) in its gearing covenant (142% against a covenant
of 175% at FYE08).  If no substantial new equity raising or cash
injection materializes by mid-August 2009, which is sufficient in
size to ensure the bonds' gearing covenant is met, Brixton's
ratings could similarly face a multi-notch downgrade at that time.
In the event that both the existing bank debt is successfully
refinanced before July 31, 2009 (including a new covenant package)
and new equity is raised by mid-August 2009, which is sufficient
in size to prevent a bond gearing covenant breach, then it is
likely that the RWN will be resolved and the ratings affirmed.

Both Brixton and SEGRO Plc announced on June 22 that SEGRO has
reached agreement with the board of Brixton on the financial terms
of a possible recommended offer for the entire issued share
capital of Brixton on these basis: 1.75 SEGRO share for each
Brixton share.  SEGRO has also announced a new GBP250 million
share capital issue.  However, Fitch notes SEGRO's announcement
does not represent a firm intention to bid for Brixton and that
even if pre-conditions are met, SEGRO may still not make an offer
for Brixton.  The rating action on Brixton does not factor in a
bid by SEGRO as Fitch continues to assess Brixton on a standalone
basis until any firm offer for the company is forthcoming.

Since the beginning of March, Brixton has sold six properties at a
value of GBP81.9 million at an average discount to the YE08 value
of 17.6%. Further asset disposals are being pursued and proceeds
will be used to reduce debt.  With new tenant insolvencies, up to
May 31, 2009, representing an annualized loss of rent, net of re-
lettings, of GBP1.2 million per annum, Brixton's headline vacancy
rate has risen to 21.1% at May 31, 2009.


CARNUNTUM HIGH: S&P Affirms Rating on Class E Notes at 'BB'
-----------------------------------------------------------
Standard & Poor's Rating Services affirmed and removed from
CreditWatch negative its credit ratings on all eight classes of
notes issued by Carnuntum High Grade I Ltd.

S&P placed the class B to E notes on CreditWatch negative largely
due to credit deterioration in the pool.  Although the underlying
portfolio has continued to be exposed to negative rating
migration, the transaction has taken advantage of the current
market environment and built par by purchasing assets at
significant discounts while maintaining adequate credit quality.

S&P placed the class A notes on CreditWatch negative due to the
transaction's exposure to an 'A-2' rated counterparty.  S&P has
since received additional legal documentation giving us comfort
that the counterparty can stay in the transaction while posting
collateral, in accordance with S&P's December 2003 interest rate
and currency swap counterparty criteria.

                           Ratings List

                   Carnuntum High Grade I Ltd.
                 EUR1 Billion Floating-Rate Notes

     Ratings Affirmed and Removed From CreditWatch Negative

                             Rating
                             ------
  Class              To                 From
  -----              --                 ----
  A1                 AAA                AAA/Watch Neg
  A2                 AAA                AAA/Watch Neg
  A3                 AAA                AAA/Watch Neg
  B                  AA                 AA/Watch Neg
  C                  A                  A/Watch Neg
  D                  BBB                BBB/Watch Neg
  E                  BB                 BB/Watch Neg
  C combo            A                  A/Watch Neg


FORD MOTOR: Raises UK Prices by 4% on Weak Pound
------------------------------------------------
BBC News reports that Ford has raised its UK prices for the third
time, blaming the the weakness of the pound against the euro.

BBC News relates Ford is to raise its UK prices by an average of
4%.

"With so many of our costs priced in euros, there is no choice if
we are to maintain a viable business," BBC News quoted Nigel
Sharp, managing director of Ford in the UK, as saying.

According to BBC News, the list price of Ka, Fiesta, Focus and
Mondeo models will rise by between GBP600 and GBP650 while an S-
Max will cost GBP700 more and a Galaxy will go up by GBP800.
The price rises will apply to orders received after June 30, BBC
News says.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents.  With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda.  The Company provides
financial services through Ford Motor Credit Company.

The Company has operations in Japan in the Asia Pacific region. In
Europe, the Company maintains a presence in Sweden, and the United
Kingdom.  The Company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.

                          *     *     *

As reported by the Troubled Company Reporter on April 15, 2009,
Standard & Poor's Ratings Services said it raised its ratings on
Ford Motor Co. and related entities, including the corporate
credit rating, to 'CCC+' from 'SD-'.  The ratings on Ford Motor
Credit Co. are unchanged, at 'CCC+', and the ratings on FCE Bank
PLC, Ford Credit's European bank, are also unchanged, at 'B-',
maintaining the one-notch rating differential between FCE and its
parent Ford Credit.  S&P said that the outlook on all entities is
negative.

Moody's Investors Service in December 2008 lowered the Corporate
Family Rating and Probability of Default Rating of Ford Motor
Company to Caa3 from Caa1 and lowered the company's Speculative
Grade Liquidity rating to SGL-4 from SGL-3.  The outlook is
negative.  The downgrade reflects the increased risk that Ford
will have to undertake some form of balance sheet restructuring to
achieve the same UAW concessions that General Motors and Chrysler
are likely to achieve as a result of the recently-approved
government bailout loans.  Such a balance sheet restructuring
would likely entail a loss for bond holders and would be viewed by
Moody's as a distressed exchange and consequently treated as a
default for analytic purposes.


INDUS PLC: Moody's Downgrades Rating on Class B Notes to 'B2'
-------------------------------------------------------------
Moody's Investors Service has downgraded these classes of Notes
issued by INDUS (ECLIPSE 2007-1) plc (amounts reflect initial
outstandings):

  -- GBP729,000,000 Class A Commercial Mortgage Backed Floating
     Rate Notes due 2020 downgraded to Baa1, previously on 13
     April 2007 assigned Aaa;

  -- GBP48,000,000 Class B Commercial Mortgage Backed Floating
     Rate Notes due 2020 downgraded to B2, previously on 13 April
     2007 assigned Aa2.

At the same time, Moody's has affirmed the Aaa rating of the Class
X Notes issued by INDUS (ECLIPSE 2007-1) plc.  Moody's does not
rate the Class C, Class D and Class E Notes issued by INDUS
(ECLIPSE 2007-1) plc.

The rating action concludes the review for possible downgrade that
was initiated for the Class A and Class B Notes on April 8, 2009
and 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 and Portfolio Overview

INDUS (ECLIPSE 2007-1) plc closed in April 2007 and represents the
securitization of initially nineteen mortgage loans, eighteen
originated by Barclays Bank PLC and one acquired by Barclays from
HBOS.  The loans are secured by first-ranking legal mortgages over
initially 366 commercial properties located across the UK.  The
properties were predominantly offices (50%) and located in Greater
London (62%).  The remaining collateral pool largely consisted of
residential (17%), retail (15%) and mixed use (9%) properties.

Since closing, there have been almost no changes in the portfolio
composition.  Altogether sixteen property disposals have taken
place, mostly within the G-res 1 Portfolio Loan and the Nos 2 & 3
Portfolio Loan.  The nineteen loans are not equally contributing
to the portfolio: the largest loan (Adelphi Loan) represents 25%
of the current portfolio balance, while the smallest loan (Apex
Loan) represents 0.5%.  The current loan Herfindahl index is 7.5
versus 7.9 at closing.  Following the property disposals, the
remaining loans are secured by 350 properties which are still
predominantly office use (49%).  60% of the properties are located
in Greater London.

As of the last interest payment date four loans representing 41.3%
of the securitized pool were in default (Adelphi Loan, Greater
London Portfolio Loan, Agora Max Portfolio Loan and Apex Loan).
Of the four loans, the Apex Loan and the Agora Max Loan were in
special servicing.  The Apex Loan has not paid its debt service
due since the July 2008 IPD.  The Agora Max Portfolio Loan was
transferred to special servicing in May 2009.  A further loan
(Lloyds Portfolio Loan, 3.7%) had an event of default on the April
2009 IPD due to an LTV default covenant breach, however the cure
period is still in effect.

As more than 10% of the loans in the pool are in default, the
sequential payment trigger has been breached.  Previously, the
proceeds from prepayments and balloon repayments were allocated to
the Notes in a combination of fully sequential, modified pro-rata
and pro-rata basis, based on certain loan buckets.

As a result of the payment default under the Apex Loan, loan
protection liquidity facility drawings have been made every
quarter since the July 2008 IPD.  As of the April 2009 IPD the
outstanding drawing under the liquidity facility was GBP206,679.

2) Rating Rationale

The downgrades of the Class A and Class B Notes follow a detailed
re-assessment of the loan and property portfolio's credit risk.
Hereby, Moody's main focus was on property value declines, term
default risk, refinancing risk and the anticipated work-out timing
for defaulted and potentially defaulting loans.  In its review,
Moody's especially concentrated on the seven largest loans in the
portfolio of which five are either on the servicer's watchlist,
have an event of default outstanding or are in special servicing
(the Adelphi Loan, the Criterion Loan, the G-res 1 Portfolio Loan,
the Nos 2 & 3 Portfolio Loan, the Greater London Portfolio Loan,
the Agora Max Portfolio Loan and the Lloyds Portfolio Loan).

As outlined in more detail below, the rating action is mainly
driven by the most recent performance of the UK commercial
property markets, Moody's opinion about future property value
performance, the performance of the portfolio to date with
currently 41.3% (and potentially 45% by the next IPD) of the
current loan balance being in default and for some of the loans
senior ranking termination costs of long dated swaps entered into
by the borrower at or around closing.  Driven by, in many cases, a
higher default risk assessment at the loan maturity dates, Moody's
now anticipates that a very large portion of the portfolio will
default over the course of the transaction term.  Coupled with the
negative impact of significantly reduced property values, Moody's
expects a substantial amount of losses on the securitized
portfolio.  Those losses will, given the back-loaded default risk
profile and the anticipated work-out strategy for defaulted loans,
crystallize only towards the end of the transaction term.

The current subordination levels for Moody's rated classes, 18.9%
and 13.4% for the Class A and the Class B Notes respectively,
provide protection against losses.  However, the likelihood of
higher than expected losses on the portfolio has increased
substantially, which results in the rating action.

Since closing none of the loans have prepaid. At the same time,
the loan portfolio only provides for limited scheduled principal
repayment over time.  As a result, unlike other large multi-
borrower transactions (EMEA CMBS conduit deals), the Class A and
the Class B Notes do not benefit from a meaningful increase in
subordination levels since closing.  In addition, the Class B
Notes are subordinated to the Class A Notes in the capital
structure.  Due to this additional leverage, the higher portfolio
risk assessment has a relatively bigger impact on the expected
loss of the Class B Notes than on the expected loss of the Class A
Notes.

Moody's anticipates that INDUS (ECLIPSE 2007-1) plc is one of the
most negatively affected EMEA CMBS conduit deals following the
application of its updated central scenarios.

3) Moody's Portfolio Analysis

Property Values.  Property values across the UK have declined
significantly until Q1 2009 and are expected to continue to
decline at least until 2010.  Moody's estimates that compared to
the underwriter's values at closing, the values of the properties
securing this transaction have declined by on aggregate 33% until
the beginning of 2009 (ranging from 15% for the Forster Hall Loan
to a 50% decline for the Agora Max Portfolio Loan, the Workspace
Portfolio Loan and the Grafton Estate Portfolio Loan).  Looking
ahead, Moody's anticipates further declines until 2010, resulting
in a 39% value decline compared to the U/W value at closing (with
the Agora Max Portfolio Loan, the Workspace Portfolio Loan and the
Grafton Estate Portfolio Loan being most affected).

Based on this property value assessment, Moody's estimates that
the transaction's early-2009 weighted average securitized loan-to-
value ratio was 98% compared to the U/W LTV of 75% (both LTVs
excluding the mark to market of long dated borrower level swaps).
Due to the further envisaged declines, the WA LTV will increase in
Moody's opinion to 109% in 2010 and will only gradually recover
thereafter.  Based on Moody's anticipated trough values, the LTVs
for the securitized loans range between 152% (Workspace Portfolio
Loan) and 67% (Pitch 2 Portfolio Loan).  As three loans (Adelphi
Loan, Criterion Loan and the Agora Max Portfolio Loan) have
additional debt in the form of B-loans (amounting to
GBP104.6 million on aggregate), based on estimated trough values,
the whole loan leverage is on average 121%.

Moody's has taken the anticipated property value development,
including a gradual recovery from 2011 onwards, into account when
analyzing the default risk at loan maturity and the loss given
default for each securitized loan.  A number of borrowers in the
portfolio entered into long dated swaps in order to hedge interest
rate risk. Given the current interest environment, those swaps are
currently out of the money and potential swap termination costs
rank senior to the securitized loans.  Due to the swap maturity
being after loan maturity, there is the risk that at loan
maturity, the swaps are still out of the money thereby potentially
increasing the refinancing exposure and/or reducing the available
recovery.  Moody's has taken those senior ranking swap termination
costs into account when analyzing the recovery rates for
potentially defaulting loans.

Refinancing Risk.  The transaction's exposure to loans maturing in
the short-term (2009 and 2010) is low.  None of the loans have an
extension option, so that, 1.3% of the current portfolio matures
in 2010, 48.5% in 2011 and 2012 and 24.2% in 2013 and 2014 and
26.0% after 2014.  However, as Moody's expects property values in
the UK to only slowly recover from 2011 onwards, all loans will be
still highly leveraged at their respective maturity dates,
especially when taking into account the B-loans for three of the
loans.  Consequently, in Moody's view, for almost all of the
loans, the default risk at maturity has increased substantially
compared to the closing analysis.

Term Default Risk.  The occupational markets in the UK are
currently characterized by falling rents, increasing vacancy rates
and higher than average tenant default rates.  Taking into account
the lease profile of the respective loans, the Agora Max Portfolio
Loan, the Greater London Portfolio, the Workspace Portfolio Loan,
the Gullwing Portfolio Loan, the Alba Gate Loan and the St. George
Portfolio Loan could be in Moody's view especially exposed to
weakening occupational markets.  The balance of the portfolio
benefits from long-dated leases.  Based on the current lease
profile, Moody's has incorporated into its analysis an allowance
for deterioration in coverage ratios and a higher than average
tenant default rates on most of the loans in turn increasing the
term default risk assumption for the respective loans.

Loans in Default and/or Special Servicing.  Two loans, the Apex
loan (0.5%) and the Agora Max Portfolio Loan (7.4%) are currently
in special servicing.  The Apex Loan has not paid its debt service
due since July 2008.  In Moody's analysis, this loan is deemed to
be defaulted.  The Agora Max Portfolio Loan was transferred to
special servicing in May 2009.  The largest of the three shopping
centres securing the Agora Max Portfolio Loan was subject to a
Compulsory Purchase Order and the net sale proceeds was
insufficient to fully repay the senior debt allocated against this
property and no payment was made to the junior lender.
Furthermore two loans, the Adelphi Loan and the Greater London
Portfolio Loan are in default due to an uncured LTV default
covenant breach.  A further loan (the Lloyds Portfolio Loan) had
an event of default at the April 2009 IPD due to an LTV default
covenant breach, however the cure period is still in effect.

Overall Default Risk.  Based on its revised term and maturity
default risk assessment for the securitized loans, Moody's
anticipates that a very large portion of the portfolio will
default over the course of the transaction term.  For all the
loans maturing before 2013, the default risk is predominantly
driven by refinancing risk.  Besides the Apex Loan that already
suffered a payment default, the Agora Max Loan has currently in
Moody's view the highest default risk, while the Pitch 2 Portfolio
Loan has the lowest risk of defaulting.

Concentration Risk.  The portfolio securitized in INDUS (ECLIPSE
2007-1) plc exhibits an average concentration in terms of property
types (49% office) and property location (100% UK and 60% Greater
London).  In Moody's view, this limits the potential benefits from
different markets performing differently over time.

Work-Out Strategy.  In scenarios where a loan defaults, Moody's
current expectation is that the servicer will most likely not
pursue an immediate sale of the property in the depressed market
conditions.  Therefore, Moody's has assumed that in most cases,
upon default, a sale of the mortgaged properties and ultimate
work-out of the loan will occur at a later point in time.

Increased Portfolio Loss Exposure.  Taking into account the
increased default risk of the loans, the most recent performance
of the UK commercial property markets, Moody's opinion about
future property value performance and the most likely work-out
strategies for defaulted loans, Moody's anticipates a substantial
amount of losses on the securitized portfolio, which will, given
the back-loaded default risk profile and the anticipated work-out
strategy for defaulted loans, crystallize only towards the end of
the transaction term.


LONDON WELSH: In Administration; Tenon Recovery Appointed
---------------------------------------------------------
Carl Jackson and Gareth Roberts of leading turnaround,
restructuring and insolvency specialist, Tenon Recovery, were
appointed joint administrators to London Welsh Rugby Club on
Tuesday, June 23, 2009.

London Welsh Rugby Club, founded in 1885 and now in the top six of
National Division One, has played a vital role both in the local
community and in British Rugby.  Around 177 Welsh international
players have played for the club and a further 43 of these went on
to join the British Lions squad.

The club recently made the decision to turn professional and has
developed a three-year plan to reach the Guinness Premiership.
However, investment in top quality players and experienced
training and coaching staff has come at great personal cost to the
principal investor and Chairman of the Club, Kelvin Bryon.

For London Welsh to progress towards promotion to the Premiership,
the Club will need to secure additional investment from either
another individual or a consortium of investors.  It is hoping to
generate interest of an additional GBP1 to GBP1.5 million a
season.

There are sufficient funds available for the Club to continue to
operate for one more month but without additional income, the Club
will be unable to continue to trade in its present form.  This is
likely to result in exclusion from the Championship and the
British and Irish Cup by the RFU and the Club will revert to
playing local level rugby.

Carl Jackson, National Head of Tenon Recovery, said: "London Welsh
Rugby Club has a long and proud history in British rugby and this
could prove an exciting opportunity to invest in the future
Premiership aspirations of London Welsh.  We hope to preserve the
value and heritage of London Welsh and deliver a positive outcome
for all involved.

"We will work closely with the Board to attract interested parties
over the next month and urge anyone who is interested to get in
contact with us  immediately."

Kelvin Bryon, Chairman of London Welsh Rugby Club, said: "I have
seen London Welsh Rugby Club over the last twenty years rise from
almost being relegated from Division 5 South to become one of the
top eighteen clubs in England.

"London Welsh is within striking distance of the elite level of
English rugby but I am unable to continue being the principal
investor of the Club.  To continue and achieve our dream of
reaching the Premiership, we need other investors to step forward
to join us on our exciting journey."

John Dawes, Club President and Captain of the 1971 Lions Squad has
said: "We have seen recently that as a result of its resurgence
the Club has a vital role to play in the future of English and
Welsh Rugby.  The newly created Championship has given the Club
the opportunity to take advantage of the exciting opportunities
presented by the creation of this new competition."


PAUL GREEN: Seeks to Cut Debt Pile Through CVA
----------------------------------------------
Helen Morris at PrintWeek reports that Paul Green Printing has
proposed a Company Voluntary Arrangement (CVA) in an attempt to
reduce its debt pile of almost GBP1.8 million.

PrintWeek relates chartered accountant Langley Group, which has
been appointed as nominee to the CVA proposal, said a copy of the
proposal had been entered into court on June 15.  PrintWeek
discloses according to the report, the company owes just under
GBP600,000 in unsecured debts and GBP1.2 million in secured debt.
Printweek, citing the report, recounts that in the first two
months of this year, the company had experienced "extremely
disappointing sales" which led to "a reluctance" by the bank to
release funds to the business "even when [it] was well within the
agreed facility".

PrintWeek says a meeting of creditors to consider the 43.38 pence
in the pound proposal, will be held on July 3, 2009.  In a
statement from the Langley Group to creditors, Alan Bradstock,
insolvency practitioner and Langley Group partner, as cited by
PrintWeek, said: "If creditors reject the proposal, then I
consider it is inevitable that a creditor will petition for the
compulsory winding up of the company."

Based in east London, Paul Green Printing produces brochures,
reports, magazines, point-of-sale products and catalogues.


SETANTA SPORTS: Liberty Global Eyes Irish Unit
----------------------------------------------
Amanda Andrews and Rowena Mason at Telegraph.co.uk report that
US-based cable firm Liberty Global is eyeing the Irish unit of
sports broadcaster Setanta Sports.

According to Telegraph.co.uk, any bid would be likely to come
through Liberty's European content arm, Chellomedia, which is the
owner of cable television operator UPC Ireland.

Telegraph.co.uk says other parties likely to bid for Setanta
Ireland include the existing management and Denis Desmond, an
Irish businessman who has a 20pc stake in the unit.

On June 25, 2009, the Troubled Company Reporter-Europe, citing
Reuters reported that Setanta Sports went into administration
after attempts to secure additional financing failed.  Reuters
related Setanta Sports, appointed Deloitte as administrators on
Tuesday.  According to Reuters, Deloitte said Setanta will wind
down its British operations and its British output will go off air
shortly, leading to the loss of about 200 jobs, out of a total of
420.

Reuters recalled the English Premier League terminated its live
match contract with Setanta Friday last week after the company
failed to meet its payments.  The League then awarded the
lucrative rights to Disney ESPN (DIS.N) on Monday, Reuters said.

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

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


* ING Says European Emerging-Market Debt Default to Peak in 2010
----------------------------------------------------------------
Laura Cochrane at Bloomberg News reports that according to ING
Groep NV's David Spegel, a quarter of emerging-market corporate
bonds ranked below investment grade may be in default next year.

Bloomberg News relates Mr. Spegel, head of emerging- market
strategy at ING in New York, wrote in a research note received
June 19 the failure rate may jump to 25.5 percent in March from
6.5 percent last month based on the current level of missed coupon
payments triggering defaults.  Mr. Spegel, as cited by Bloomberg
News, said emerging-market borrowers missed 13.9 percent of the
US$450 billion of coupon payments on international bonds due in
May.

Bloomberg News discloses according to Mr. Spegel, a slowing in the
rate of failed interest payments will result in defaults on
emerging-market corporate bonds reaching a peak of only 11.35
percent in January next year.  Mr. Spegel said central and eastern
Europe will peak in February 2010 at 20.15 percent, Bloomberg News
notes.


* BOOK REVIEW: Instincts of the Herd in Peace and War
-----------------------------------------------------
Author: Wilfred Trotter
Publisher: Beard Books
Softcover: 264 pages
List Price: US$34.95
by Henry Berry

Instincts of the Herd in Peace and War examines how individuals
become involved in social groups and how this affects their
involvement in a nation, the ultimate social group.  According to
Trotter, human beings are, by nature, "gregarious," and their
gregariousness is instinctive.  Consequently, individuals are
compelled to attach themselves to a primary social group and
assume a role within it.  Individuals may form attachments to
other groups and take different or modified roles within them, but
it is their attachment to, identification with, and role within a
primary group that lends them their personal identity, sense of
purpose, and sense of self-worth and fulfillment.

Although a nation is the ultimate group, it becomes the primary
social group only in the case of war.  To Trotter, war and peace
are not mutually exclusive social states.  They form a continuum
of historical social states that comprise the entirety of all
possible social states.  There can be no utopias, nor can there be
eternal wars.  The flow of events brings periods of peace and war.
The events in Europe preceding World War I -- the period during
which Trotter wrote the first edition of his book -- were a test
case for the author's observations and conclusions. The people of
England, France, Germany, and other European nations became
focused on defending their nations against external enemies.
Societies (i. e., nations) underwent upheaval as their people
turned from limited involvement with smaller social groups to
large-scale involvement in national defense.

Trotter's book is recognized as a classic in the field of
sociology, a relatively new science in the latter 1800s and early
1900s.  Trotter and others sought to understand the group dynamics
of democratic societies, which were replacing the class structure
of aristocratic, hierarchal societies.  Trotter also sought to
counter the misleading effects of psychology, especially the
influence of Freudian psychology, which saw individuals as
influenced mostly by inner, largely subconscious feelings and
experiences.

Trotter argues that psychology is not an independent field. Says
the author, "The two fields -- the social and the individual --
are absolutely continuous; all human psychology, it is contended,
must be the psychology of associated man, since man as a solitary
animal is unknown to us . . . ."  Even a hermit is born in
society; and society has an interest in hermits for what they may
reflect about conditions of society.

This reprint is the second edition of Trotter's classic work.  The
second edition includes the author's 45-page "Postscript of 1919,"
assaying the conditions of peace after World War I had ended.
"With the cessation of war this great stream of moral power [in
defending the nation] began rapidly to dry up at its source,"
observes Trotter.  He proffers that the aim of statecraft is
keeping this "great stream of moral power" in times of peace.  He
believes that the progressive evolution of society can be
accomplished by a "scientific statecraft [applying] the intellect
as an active factor in the direction of society."

While basically a work of sociology, Trotter's book can be a
picture of individual and group behavior for leaders in any
organization where motivation, unity, and progress are important.
This includes business leaders, especially leaders of larger
companies with multiple business sites and different employee
segments.  Business leaders will immediately grasp the truth and
relevance of the author's view of society and glean from it
essential lessons and leadership principles, practices, and goals.
Wilfred Trotter (1872-1939) was an English surgeon as well as an
influential sociologist.

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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.

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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.


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