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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, July 2, 2009, Vol. 10, No. 129

                            Headlines

A U S T R I A

CLAUS SPITZBART: Creditors Must File Claims by July 13
GEHRKE HORST: Creditors Must File Claims by July 21
HAFELLNER BEATE: Creditors Must File Claims by July 22
MSW TRENDY: Creditors Have Until July 17 to File Claims
STAUDACHER & PARTNER: Claims Filing Deadline is July 16


F R A N C E

CMA CGM: S&P Downgrades Corporate Credit Rating to 'BB-'
EUTELSAT COMMUNICATIONS: S&P Puts 'BB+' Rating on Positive Watch


G E R M A N Y

ARCANDOR AG: EU Approves German State Loan for Quelle
PROVIDE DOMICILE: Moody's Assigns 'Ba2' Rating on Class E Notes
SCHULDSCHEIN MERLOT: Moody's Raises Rating on EUR5MM Loan to 'B1'
UNITYMEDIA GMBH: S&P Raises Corporate Credit Rating to 'BB-'
WESTLB AG: Head Wants Bad Bank Law Passed Before Assuming CEO Post


G R E E C E

ANAPTYXI 2006-1: Moody's Cuts Rating on Class C Notes to 'Ba1'


I C E L A N D

LANDSVIRKJUN: Standard & Poor's Cuts Rating to BB/Stable/B-1


I R E L A N D

ARIA CDO: Moody's Junks Ratings on Thirteen Classes of Notes
AVOCA CLO V: S&P Junks Ratings on Three Classes of Notes
SCOTTISH RE: Posts US$1.7 Bln Net Income in 3-Mos. Ended March 31


I T A L Y

ALITALIA SPA: Gets Binding Offer for Atitech Unit
CHRYSLER LLC: Fiat CEO Reports Progress on New Chrysler
TISCALI SPA: Carphone's Acquisition of UK Business Cleared
WIND ACQUISITION: Fitch Assigns 'B+' Rating on EUR2.7 Bil. Notes
WIND ACQUISITION: S&P Assigns 'BB-' Rating on EUR2.7 Bil. Notes


K A Z A K H S T A N

ALEM CAPITAL: Creditors Must File Claims by July 10
BTA BANK: Goldman's Resignation May Hamper Debt Restructuring
EK LLP: Creditors Must File Claims by July 10
PAPPILON COMPANY: Creditors Must File Claims by July 10
TRISTAN OIL: Moody's Downgrades Corporate Family Rating to 'Caa3'

WEST LLP: Creditors Must File Claims by July 10
VOSTOK DOR: Creditors Must File Claims by July 10


K Y R G Y Z S T A N

REUS GROUP: Creditors Must File Claims by July 24


R U S S I A

ARCHANGEL DIAMOND: Faces Involuntary Bankruptcy Petition in U.S.
ARMAVIRSKIY BRICK: Creditors Must File Claims by July 19
CHEREPOVETSKAYA CONSTRUCTION: Claims Filing Deadline is July 10
GLAVMOSSTROY OAO: Alfa's Mikhail Fridman Files Bankruptcy Suit

MTEK-ARMOSILIKATNYE: Creditors Must File Claims by July 19
STROY-TRANS LLC: Creditors Must File Claims by July 10
VODOKANAL ST. PETERSBURG: S&P Cuts Rating to BB+/Watch Neg/B-1


S P A I N

FTGENVAL TDA: Moody's Assigns (P)'B2' Rating on EUR40 Mil. Notes


S W I T Z E R L A N D

E.A. KELLER LIEGENSCHAFTEN AG: Claims Filing Deadline is July 8
EDGE CONSULTING AG: Creditors Must File Claims by July 8
GNC GLOBAL: Claims Filing Deadline is July 8
JONACOR AG: Creditors Must File Claims by July 8
JULIUS BAER: Moody's Cuts Ratings on Two Bond Funds to 'Ba/MR5'

MLC LEHMANN: Claims Filing Deadline is July 8
UBS AG: U.S. Government Seeks Disclosure of American Clients


U K R A I N E

ACTIVE-AGRO LLC: Creditors Must File Claims by July 8
AGRO EUSTACE: Creditors Must File Claims by July 8
BELARA LLC: Creditors Must File Claims by July 8
LIFAN DK: Creditors Must File Claims by July 8


U N I T E D   K I N G D O M

ALBA 2006-2: S&P Junks Ratings on Class F Notes From 'B-'
CANDOVER INVESTMENTS: Ontex Attracts Interest; Takeover Talks End
INCISIVE MEDIA: Nears Debt-For-Equity Swap Deal
KEYDATA INVESTMENT: Sale Halted on GBP103 Mln Fraud Probe
LLOYDS BANKING: Sheds 2,100 U.K. Jobs in Cost-Saving Drive

LLOYDS BANKING: May Have to Sell Units to Win EU Approval
LLOYDS BANKING: Win Bischoff Set to Take Chairmanship Post
MONIER GROUP: Rescue Package Set to Be Signed Today
NATIONAL EXPRESS: CEO Richard Bowker Steps Down
ROYAL BANK: May Have to Sell Units to Win EU Approval

ROYAL BANK: ANZ and Standard Chartered to Acquire Asian Assets
YELL GROUP: To Enter Into Debt Restructuring Talks with Lenders

* S&P Takes Rating Actions on 21 European Synthetic CDO Tranches
* BERNARD MADOFF: Sentenced to 150 Years in Prison
* BERNARD MADOFF: SIPC, Trustee Unveil US$231MM Funds for Clients

* Upcoming Meetings, Conferences and Seminars


                         *********


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


CLAUS SPITZBART: Creditors Must File Claims by July 13
------------------------------------------------------
Creditors of Claus Spitzbart GmbH & Weiss OEG  have until July 13,
2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 20, 2009 at 10:30 a.m. at:

         Land Court of Klagenfurt
         Meeting Room 225
         Second Floor

For further information, contact the company's administrator:

         Mag. Max Verdino
         Waagstrasse 9
         9300 St. Veit/Glan
         Austria
         Tel: 04212/32 00
         Fax: 04212/3200-32
         E-mail: office@verdino.at


GEHRKE HORST: Creditors Must File Claims by July 21
---------------------------------------------------
Creditors of Gehrke Horst 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 9:00 a.m.

For further information, contact the company's administrator:

         Dr. Christian Bachmann
         Opernring 8
         1010 Wien
         Austria
         Tel: 512 87 01
         Fax: 513 82 50
         E-mail: bachmann.rae@aon.at


HAFELLNER BEATE: Creditors Must File Claims by July 22
------------------------------------------------------
Creditors of Hafellner Beate 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 12:15 p.m. at:

         Land Court of Leoben
         Hall IV
         First Floor
         Leoben
         Austria

For further information, contact the company's administrator:

         Mag. Thomas Boechzelt
         Krottendorfer Gasse 4
         8700 Leoben
         Austria
         Tel: 03842-48117
         Fax: 03842-48117-11
         E-mail: office@ra-ahb.at


MSW TRENDY: Creditors Have Until July 17 to File Claims
-------------------------------------------------------
Creditors of MSW trendy menswear Handel GmbH have until July 17,
2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 31, 2009 at 10:15 a.m.

For further information, contact the company's administrator:

         Dr. Katharina Widhalm-Budak Rechtsanwalt
         Favoritenstrasse 22/12a
         1040 Wien
         Austria
         Tel: 504 64 08
         Fax: 506 64 08 22
         E-mail: widhalm-budak@mitrecht.com


STAUDACHER & PARTNER: Claims Filing Deadline is July 16
-------------------------------------------------------
Creditors of Staudacher & Partner GmbH have until July 16, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 30, 2009 at 11:15 a.m.

For further information, contact the company's administrator:

         Dr. Klemens Dallinger
         Schulerstrasse 18
         1010 Wien
         Austria
         Tel: 513 28 33
         Fax: 513 28 33 22
         E-mail: dallinger@anwaltsteam.at

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


CMA CGM: S&P Downgrades Corporate Credit Rating to 'BB-'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on France-based container shipping
operator CMA CGM S.A. to 'BB-' from 'BB+'.  Furthermore, the issue
rating on CMA's EUR500 million senior unsecured notes due 2012 and
US$300 million senior unsecured callable notes due 2013 was
lowered to 'B' from 'BB-'.  The recovery rating on these notes was
unchanged at '6', indicating S&P's expectation of negligible (0%-
10%) recovery in the event of a payment default.  In addition, all
ratings were removed from CreditWatch, where they were placed with
negative implications on March 17, 2009.  The outlook is negative.

Following these actions, all ratings were withdrawn at the
issuer's request.

"The downgrade is a result of the significant deterioration in
market conditions for the container shipping industry," said
Standard & Poor's credit analyst Stuart Clements.  "It reflects
S&P's belief that this market weakening, combined with CMA's
substantial capital expenditure commitments, will weaken the
group's financial profile to a level no longer commensurate with
the previous rating."

Container shipping markets continue to decline and S&P believes
that these difficult conditions will continue for at least the
remainder of 2009 and possibly into 2010.  In S&P's opinion, any
subsequent recovery is likely to be slow, suppressed by a
significant order book for new-build container ships worldwide.
What's more, any recovery will be closely linked to a turnaround
in the overall global economy.

Unless trading conditions improve significantly, or CMA is able to
delay or cancel some of its investment spending or balance this
with substantial disposals, S&P believes liquidity is likely to
come under pressure in 2010 without new sources of funding being
secured.

In S&P's view, the ongoing deterioration in the container shipping
market could constrain a recovery in CMA's financial profile, in
spite of the group's strong competitive position and above-average
profitability for the sector.  A slower-than-anticipated recovery,
combined with CMA's heavy capital expenditure commitments, could
put the group's liquidity position under pressure and lead to the
rating being lowered further.


EUTELSAT COMMUNICATIONS: S&P Puts 'BB+' Rating on Positive Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has placed its 'BB+'
long-term corporate credit and senior unsecured debt ratings, and
its 'B' short-term corporate credit rating on French satellite
operator Eutelsat Communications S.A. on CreditWatch with positive
implications.

At the same time, S&P affirmed the 'BBB-' issue rating on Eutelsat
S.A.'s EUR1.3 billion bank loan due 2011.  S&P's '2' recovery
rating on the loan remains unchanged, indication S&P's
expectations for meaningful (70%-90%) recovery in the event of a
payment default.  S&P would withdraw the recovery rating if S&P
raise the long-term corporate credit rating on Eutelsat
Communications to investment grade.

"The rating actions reflect the possibility that S&P could upgrade
Eutelsat Communications by one notch after S&P's review underway
on the group's business prospects and financial policy," said
Standard & Poor's credit analyst Melvyn Cooke.  "We understand
that Eutelsat Communications' satellite launches made since the
end of 2008 have reduced the risks linked to the group's very high
capacity utilization rate."

The successful launches also reflect Eutelsat Communications'
continuing solid operating performance and support S&P's view that
the group's revenues and earnings should continue to grow over the
medium term.

Eutelsat Communications' robust operating performances during the
past few years have enabled some deleveraging since the group
underwent a leveraged buyout in 2005.  The group's adjusted net
debt-to-EBITDA ratio fell to 3.6x in fiscal year 2008 (ended
June 30, 2008) from 3.8x in fiscal 2006.  An important aspect of
S&P's analysis will be to assess the likelihood of the adjusted
ratio declining to and remaining at about 3.5x over the next two
fiscal years, which could be commensurate with a 'BBB-' rating
given Eutelsat Communications' strong business profile.

"We will aim to resolve the CreditWatch status after S&P's
detailed review of Eutelsat Communications' fiscal 2009 results
and meeting with management regarding the group's financial and
risk management policies, business prospects, and strategy for the
next few years," said Mr. Cooke.  "Key aspects S&P will assess
include visibility on the group's shareholder distributions and
acquisition policies."

S&P expects to resolve the CreditWatch by the end of September
2009.  Any upgrade of Eutelsat Communications would likely be
limited to one notch.


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


ARCANDOR AG: EU Approves German State Loan for Quelle
-----------------------------------------------------
Gerrit Wiesmann and Nikki Tait at The Financial Times report the
European Union on Tuesday approved a German state loan for the
Quelle catalogue business of Arcandor AG's Primondo unit.

The FT relates Berlin late on Monday agreed to join the states of
Bavaria and Saxony in providing Arcandor with EUR50 million
(US$70 million) in six-month financing.  According to the FT, the
European Union approved the loan as a temporary "rescue aid"
measure under its normal state aid rules.  The FT says the
retailer will have to come up with a more fundamental
restructuring plan if the assistance lasts beyond six months.  The
loan, the FT discloses, is needed to restart the flow of cash
advances from Arcandor's bank, which stopped providing factoring
services -– designed to bridge the month-long gap between bills
being sent out and customers paying them -– after demanding more
collateral when the retailer went bankrupt.

The FT recalls Primondo, which employs just under 16,000 people in
Germany, at first sought a state guarantee so that it could borrow
EUR50 million, but the German government refused, asking the
Arcandor unit to apply for a state loan, which then took Berlin
more than a week to approve.

Citing people close to the talks, the FT states the German
government's refusal to give a credit guarantee, and its caution
about a loan, were a result of making sure any decision adhered to
European Commission rules.  The FT notes that one person close to
the talks said the government also wanted to ensure taxpayers'
money was not put at undue risk, getting more security for the
loan, and get a pledge that the federal government would be the
first in line for compensation should the company be liquidated.

                           Bankruptcy

The Troubled Company Reporter-Europe, citing Bloomberg News,
reported that 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.


PROVIDE DOMICILE: Moody's Assigns 'Ba2' Rating on Class E Notes
---------------------------------------------------------------
Moody's Investors Service has assigned these definitive ratings to
six classes of notes issued by Provide Domicile 2009-1 GmbH:

  -- Aaa to the EUR0.2 million Class A+ Notes due Jan 2057,
  -- Aaa to the EUR92.0 million Class A Notes due Jan 2057,
  -- Aa2 to the EUR10.8 million Class B Notes due Jan 2057,
  -- A2 to the EUR18.4 million Class C Notes due Jan 2057,
  -- Baa2 to the EUR6.1 million Class D Notes due Jan 2057, and
  -- Ba2 to the EUR6.2 million Class E Notes due Jan 2057.

In addition, Moody's Investors Service has assigned this
definitive rating to a Senior Guarantee between KfW and a third
party in connection with the notes issued by Provide Domicile
2009-1 GmbH:

  -- Aaa to the EUR1,400,241,432 Senior Guarantee.

The purpose of this transaction is to transfer the credit risk
linked to reference claims backed by German mortgages from
Postbank in order to achieve capital relief for the reference
claims.  Therefore Postbank transfers the portfolio's credit risk
via a bank guarantee to KfW (Aaa, Prime-1).  KfW in turn hedges
itself by transferring the senior portion of the portfolio's
credit risk via the Senior Guarantee to a third party.  The junior
portion of the portfolio's credit risk will be transferred from
KfW by issuing certificates of indebtedness ("Schuldscheine") that
are credit-linked to the portfolio.  These certificates will be
purchased by Provide Domicile 2009-1 GmbH.

Credit support for the notes and the credit default swap is
provided by synthetic excess spread and a synthetic excess spread
ledger.  Synthetic excess spread in an amount equal to 0.25% p.a.
calculated on the outstanding Performing Portfolio Balance (pool
balance minus balance of outstanding credit events) is available
to cover losses incurred on the portfolio.  Available synthetic
excess spread that is not used to cover losses will be used to
build up an excess spread ledger up to the Excess Spread Cap.

From a credit perspective, Moody's sees these portfolio
characteristics favourably:

  -- The high weighted average seasoning of 10.2 years;

  -- The low loan-to-appraised-value of 49.8% for the Postbank
     originated sub-pool and the LTV (based on the market value
     ("Verkehrswert") of 52.7% for the BHW originated sub-pool;

  -- The large portion of owner-occupied properties (85.7%).

Less favourable pool characteristics are:

  -- The excess regional concentration in certain federal states
     above the benchmark of the German population distribution in
     Nordrhein-Westfalen (29.7)%, Schleswig-Holstein (6.6)% and
     Brandenburg (5.0)%;

  -- The external prior ranks of €116m even though this number is
     relatively low compared to other pools of German residential
     mortgage loans.

The V Score for this transaction is Low/Medium, which is the same
as the Low/Medium V score assigned for the German RMBS sector.
Three of the four broad components underlying the V Score have
been assessed as Low/Medium for this transaction, with the fourth
assessed as Medium.  The V-Score has been assigned accordingly to
the report "V-Scores and Parameter Sensitivities in the Major EMEA
RMBS Sectors" published in April 2009.

The key parameters used by Moody's to calibrate the loss
distribution for this portfolio include a Milan Aaa CE of 2.60%
and an Expected Loss of 0.35%.

The definitive ratings address the expected loss posed to
investors by the legal final maturity.  In Moody's opinion, the
structure allows for the timely payment of interest and ultimate
payment of principal by the legal final maturity.


SCHULDSCHEIN MERLOT: Moody's Raises Rating on EUR5MM Loan to 'B1'
-----------------------------------------------------------------
Moody's Investors Service has upgraded its rating of the EUR50
million Schuldschein Loan Agreement where UBS Deutschland AG is
Borrower and Protection Buyer.

The transaction is Schuldschein Loan Agreement referencing a
portfolio of corporate assets (62.9% European and 24.7% North
American).  The rating action is a response to the amendment dated
January 19, 2009 that increased the First Loss Protection Amount
from EUR125 million to EUR225 million.  The amendment also resets
at zero the losses suffered in respect of three reference
entities: Kaupthing Banki hf, Federal Home Loan Mortgage
Corporation and Lehman Brothers Holdings.  These reference
entities will remain in the portfolio until maturity but no
further credit events may be declared in their respect.

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

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

The rating action is:

UBS Deutschland AG -- Schuldschein Merlot CDO:

EUR50,000,000 Floating Rate Portfolio Credit Linked Schuldschein
Loan Agreement due 2015

  -- Current Rating: B1

  -- Prior Rating: Caa1

  -- Prior Rating Date: 24 November 2008, downgraded to Caa1 from
     A3


UNITYMEDIA GMBH: S&P Raises Corporate Credit Rating to 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services said it raised to 'BB-' from
'B+' its long-term corporate credit rating on German cable-TV
operator Unitymedia GmbH.  The outlook is stable.

At the same time, the debt rating on the senior secured facilities
issued by Unitymedia's main subsidiaries were raised to 'BB+' from
'BB'.  The recovery rating remains at '1', indicating S&P's
expectation of very good (90%-100%) recovery in the event of a
payment default.  The rating on the subordinated notes issued by
Unitymedia was raised to 'B+' from 'B'.  The recovery rating on
this debt is '5', reflecting S&P's expectation of modest recovery
in the event of a payment default.

"The rating actions primarily reflect S&P's expectation that
Unitymedia will continue to post moderate EBITDA growth," said
Standard & Poor's credit analyst Matthias Raab.  "Our view is
based on the resilient performance of Unitymedia's profitable and
utility-like CATV business and continued solid EBITDA growth
potential from the uptake of high-speed Internet and telephony
services, despite the current economic downturn."

In the first quarter of 2009, Unitymedia's CATV segment,
Unitymedia Cable, posted solid year-on-year EBITDA growth of 13%
to reach EUR107 million and a strong margin of 48%.  This was
primarily due to higher revenues from broadband Internet and
telephony services.  For the fiscal year ending Dec. 31, 2009,
Unitymedia has forecast EBITDA of between EUR410 million and
EUR420 million for Unitymedia Cable, which S&P views as
conservative, given the company's currently strong subscriber
growth momentum.  Nevertheless, S&P expects Unitymedia to generate
only break-even free operating cash flow in 2009, primarily
because of very high acquisition costs for new triple-play
subscribers and arena's moderate cash outflows.

The ratings are supported by Unitymedia's extensive and largely
upgraded cable network, which requires only modest maintenance
capital expenditure, and its adequate liquidity profile, with no
meaningful debt maturities until 2013.  The ratings are
constrained by the company's very aggressive financial policy,
still-high financial leverage, and weak FOCF generation.
Furthermore, CATV revenues are exposed to competition, primarily
from satellite and Internet-based TV.

"The stable outlook reflects S&P's expectation that Unitymedia
will continue to generate resilient revenues from its CATV
business and moderately increase its EBITDA and FOCF generation in
the next 12-24 months, mainly thanks to continued broadband and
telephone subscriber growth," said Mr. Raab.  "Furthermore, S&P
expects Unitymedia to maintain an adequate liquidity profile."


WESTLB AG: Head Wants Bad Bank Law Passed Before Assuming CEO Post
------------------------------------------------------------------
Oliver Suess and Mariajose Vera at Bloomberg News report that
Dietrich Voigtlaender, WestLB AG's acting chief executive officer,
asked for his appointment as CEO to be postponed until a German
law permitting lenders to set up so-called bad banks is passed.

Bloomberg News relates Mr. Voigtlaender, which was appointed
acting head after Heinz Hilgert resigned last month, said in
an e-mailed statement Tuesday that he wants German lawmakers to
provide "clear perspectives for the spin-off of non-strategic
assets" before he moves into the post.

Bloomberg News says Chancellor Angela Merkel's cabinet on June 10
backed a revised plan to purge German state banks, or Landesbanks,
of toxic assets.  The proposed legislation, which has to go to
parliament for approval, would allow state lenders such as WestLB
and Bayerische Landesbank to create their own bad banks to offload
assets in exchange for pledges to change the way they operate,
Bloomberg News says.

As reported in the Troubled Company Reporter-Europe on June
11, 2009, Bloomberg News said the the state of North Rhine-
Westphalia provided an additional guarantee of up to EUR4 billion
(US$5.6 billion) to WestLB.  According to Bloomberg News, the
state said guarantees are meant to protect the bank from potential
losses until further investments can be transferred under
Germany's financial markets rescue laws.

Bloomberg News recalls WestLB's owners agreed last year to cover
potential losses of about EUR5 billion (US$7 billion) related to
EUR23 billion of securities that the bank shifted into a new
company.

                      About WestLB

Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.

In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.

WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).

                          *     *     *

West LB AG continues to carry Fitch's 'F' Individual Rating.
The rating was previously at 'D/E' and was downgraded by Fitch
to its current level in January 2008.


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


ANAPTYXI 2006-1: Moody's Cuts Rating on Class C Notes to 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of the Notes
issued by Anaptyxi 2006-1 PLC.  This concludes the review process
that began on 11th February 2009 when the Notes were placed on
review for possible downgrade.

Moody's complete rating actions are:

  -- EUR1,750,000,000 Class A Asset Backed Floating Rate Notes
     due 2041, downgraded to A2;, previously on 11 February 2009,
     Aaa and placed under review for downgrade.

  -- EUR150,000,000 Class B Asset Backed Floating Rate Notes due
     2041, downgraded to Baa3; previously on 11 February 2009, A1
     and placed under review for downgrade.

  -- EUR125,000,000 Class C Asset Backed Floating Rate Notes due
     2041, downgraded to Ba1; previously on 11 February 2009, Baa1
     and placed under review for downgrade.

  -- EUR225,000,000 Class D Asset Backed Floating Rate Notes due
     2041, downgraded to Ba3; previously on 11 February 2009, Ba2
     and placed under review for downgrade.

The rating action has been prompted by the review of the approach
to assess the credit risk of certain assets included in the
securitized portfolio backing the notes combined with the
weakening of the economic environment in Greece.

Anaptyxi 2006-1 PLC is a securitisation of loans granted to SME
borrowers by EFG Eurobank Ergasias S.A. (A1/P-1).  The securitized
portfolio can include up to 75% of revolving and Allilohreos loans
(both "Revolving Loans") which have no contractual payment rate
and may be terminated upon the occurrence of certain events, which
include the default of Eurobank.  The remaining proportion of the
pool consists of amortizing loans.  As of 31 May 2009, those
categories of Revolving Loans account for 71.60% of the total
pool.

Since closing of the transaction in November 2006, Moody's has
rexamined (i) its approach on the way it assessed the credit risk
of Revolving Loans in this transaction and (ii) the manner in
which Moody's will assess the probability of default assumption
for an asset-backed securities transaction backed by loans to
small and mid-sized enterprises (see press release entitled
"Moody's: Refining Probability Of Default Assumptions For SME ABS
In EMEA" dated 17th March 2009).

With respect to the Revolving Loans, Moody's believes that the
borrowers may face difficulties in refinancing should termination
of the Revolving Loans arise upon occurrence of any termination
trigger events.  This risk could be particularly significant if at
the time of termination, Eurobank's credit strength and its
ability to offer refinancing to the borrowers were to
significantly weaken or if Eurobank were to become insolvent.  In
addition, amounts outstanding under the Revolving Loans may become
due and payable immediately upon termination of the loans and the
borrower could be suddenly obliged to make a full payment under a
loan while it was unexpected under the terms of the loan.  This
could potentially cause a payment shock for the borrowers,
resulting in a sharp increase in defaults on the pool.  The
magnitude of the payment shock may be dependant on the ability of
a substitute servicer -- if any -- to restructure the loans during
the recovery process.

This analysis introduces a certain degree of uncertainty in the
evolution of the performances upon default of the servicer,
Eurobank, currently rated A1/P-1 (negative outlook), which was not
fully incorporated in Moody's approach in analyzing the risks
presented by the Revolving Loans at closing.

Moody's has also revised the PD assumption used for analyzing and
monitoring this transaction based on the top-down approach as set
out in the methodology paper entitled "Refining the ABS SME
Approach: Moody's Probability of Default assumptions in the rating
analysis of granular SME portfolios in EMEA" dated March 2009.
The base assumption used for Greece is strong B1 which, in this
transaction, has been adjusted further downwards by two notches to
account for (i) the significant deterioration in the performance
of the portfolio since the closing of the transaction, (ii) the
very small size of SME borrowers that is observed in this
portfolio, (iii) the uncertainty of a repayment profile linked to
the significant proportion of Revolving Loans in the portfolio and
(iv) the global economic point of cycle.  For the amortizing loan
where the WAL is approximately 3.6 years, this translates to
approximately 23% mean default with an assumed volatility of 30%.
For the Revolving Loans, Moody's have assumed a WAL of 0.5 years
in the scenario where Eurobank is around (leading to a mean
default of approximately 6% and a volatility of 30%) and 8 years
in the scenario where Eurobank's ability to offer refinancing to
the borrowers were to significantly weaken or if Eurobank were to
become insolvent.  Given the level of security observed, Moody's
has assumed a 50% recovery for all types of loans which will take
place over several years (based on Moody's understanding of the
length of legal recovery process in Greece).

As of 31 May 2009, the 90+ delinquencies has risen significantly
to 6.00% of the current pool balance of the portfolio and the 3
month average defaulted loan has risen to 4.12% of the current
portfolio outstanding balance.  The payment rate reached
approximately 42.00%.

The transaction also suffered from a limited reserve fund draw in
April 2009 of 0.794% of the target amount.  Moody's notes that the
reserve fund was replenished to its target level as May 31, 2009.

Moody's assigned definitive ratings in November 2006.  Moody's
ratings address the expected loss posed to investors by the legal
final maturity of the notes.  Moody's ratings address only the
credit risks associated with the transaction.  Other non-credit
risks have not been addressed, but may have a significant effect
on yield to investors.


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


LANDSVIRKJUN: Standard & Poor's Cuts Rating to BB/Stable/B-1
------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
ratings on 18 utility and corporate entities in Europe, the Middle
East, and Africa following the revision of its methodology and
assumptions for rating government-related entities.

S&P is upgrading five issuers (three telecommunications operators
and two utilities), downgrading two utilities, and revising the
outlook on two utilities to stable from negative.  S&P also are
placing 10 issuers on CreditWatch: two utilities with positive
implications and eight issuers with negative implications.  The
eight companies placed on CreditWatch with negative implications
comprise four utilities, a rail company, a gas marketer, a
liquefied natural gas shipping company, and an energy holding
company.  One of the utilities placed on CreditWatch with negative
implications is also one of those being downgraded.  The
geographic spread of the entities is wide.  Seven are domiciled in
the EU, four in Norway, one in Switzerland, one in South Africa,
one in Iceland, two in Russia, and two in the Middle East.

Standard & Poor's updated criteria are detailed in the article
titled "Enhanced Methodology And Assumptions For Rating
Government-Related Entities," published June 29, 2009, on
RatingsDirect.  The changes to S&P's criteria are designed to
achieve a more granular analysis of the range of GREs across
sectors and regions.  S&P believes these changes will provide more
transparency in its rating approach.

S&P aims to resolve the CreditWatch placements over the next three
months after further discussion with the relevant management and
government officials.

An updated summary analysis on each of the affected entities,
which will detail the reasons behind the rating action, will be
published shortly.

S&P intends to complete its review of all issuers affected by this
updated criteria within the next three to six months.

                           Ratings List

                             Upgraded

                            To                  From
                            --                  ----
Belgacom S.A.              A+/Stable/A-1       A/Stable/A-1
Statnett SF                AA/Stable/A-1+      A+/Stable/A-1
Swisscom AG                A/Stable/--         A-/Stable/--
Telenor ASA                A-/Negative/A-2     BBB+/Negative/A-2
Vattenfall AB              A/Stable/A-1        A-/Stable/A-2

                            Downgraded

                            To                  From
                            --                  ----
Landsvirkjun                BB/Stable/B-1       BBB-/Watch Neg/A-3

              Downgraded and on CreditWatch Negative

                            To                  From
                            --                  ----
Vodokanal St. Petersburg   BB+/Watch Neg/B-1   BBB-/Negative/A-3

                       CreditWatch Positive
          (Possible Upgrades Likely Limited to One Notch)

                               To                  From
                               --                  ----
Fortum Oyj                    A-/Watch Pos/A-2    A-/Stable/A-2
Statkraft AS                  BBB+/Watch Pos/A-2  BBB+/Stable/A-2

                       CreditWatch Negative
         (Possible Downgrades Likely Limited to One Notch)

                               To                  From
                               --                  ----
GasTerra B.V.                 AA+/Watch Neg/A-1+  AA+/Stable/A-1+
Rand Water*                   A+/Watch Neg/--     A+/Negative/--
RusHydro (OJSC)               BBB-/Watch Neg/A-3  BBB-/Stable/A-3

                       CreditWatch Negative
        (Multinotch Downgrade of Long-Term Rating Possible)

                               To                  From
                               --                  ----
Enemalta Corp.                BBB+/Watch Neg/--   BBB+/Stable/--
Nakilat Inc.                  A+/Watch Neg/--     A+/Stable/--
Norges Statsbaner AS          AA/Watch Neg/A-1+   AA/Stable/A-1+
Abu Dhabi National Energy
Company PJSC                  AA-/Watch Neg/A-1+  AA-/Stable/A-1+

                        Outlook Revision

                              To                 From
                              --                 ----
Electricite de France S.A.    A+/Stable/A-1      A+/Negative/A-1
RTE EDF Transport S.A.        AA-/Stable/A-1+    AA-/Negative/A-1+

                  * Local currency rating only.
     NB: This list does not contain the affected debt ratings.


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


ARIA CDO: Moody's Junks Ratings on Thirteen Classes of Notes
------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of 14 classes
of notes issued by Aria CDO I.  Moody's also withdrew its rating
of one class of notes because the notes were redeemed in full.

The transaction is a managed synthetic corporate CDO referencing a
pool of corporate names.  According to Moody's, the reference
pool, which includes General Motors and TRW Automotive Inc,
suffered downward credit rating migration greater than had been
anticipated by its forward looking measures.

The Class A2J5, B2U7, C2U7N and C1E7 were initially rated by
Moody's on October 20, 2004, however, the rating actions did not
appear on Moody's website.

Moody's monitors this transaction using primarily the methodology
for Corporate Synthetic CDOs as described in Moody's Special
Report below:

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

Aria Managed CDO I (Cayman Islands)

(1) US$15,400,000 Class B-1U7 Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(2) SWF 42,900,000 Class B-1C7 Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(3) EUR18,600,000 Class B-1E7K Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(4) GBP 400,000 Class B-1G7 Floating Rate Secured Portfolio Notes
    due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(5) SWF 7,400,000 Class C-1C7 Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa3
  -- Prior Rating: Caa2
  -- Prior Rating Date: 25 March 2009, downgraded to Caa2 from A2

Aria Managed CDO I (Jersey No. 5)

(1) US$85,400,000 Class B-1U7 Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

Aria Managed CDO I (Ireland) PLC

(1) SWF 42,900,000 Class B-1C7 Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(2) EUR18,600,000 Class B-1E7K Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(3) GBP 400,000 Class B-1G7 Floating Rate Secured Portfolio Notes
    due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Date: 25 March 2009, downgraded to B2 from Aa2

(4) SWF 7,400,000 Class C-1C7 Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa3
  -- Prior Rating: Caa2
  -- Prior Rating Date: 25 March 2009, downgraded to Caa2 from A2

(5) JPY 1,000,000,000 Class B-1J5 Floating Rate Secured Portfolio
    Notes due 2009.

  -- Current Rating: WR
  -- Prior Rating: Ba3
  -- Prior Rating Date: 25 March 2009, downgraded to Ba3 from Aa2

(6) JPY 1,000,000, 000 Class A-2J5 Floating Rate Secured Portfolio
    Notes due 2009

  -- Current Rating: Ba1
  -- Prior Rating: Aaa
  -- Prior Rating Date: 20 October 2004 Assigned Aaa

(7) US$2,500,000 Class B-2U7 Floating Rate Secured Portfolio Notes
    due 2011

  -- Current Rating: Caa1
  -- Prior Rating: Aa2
  -- Prior Rating Date: 20 October 2004 Assigned Aa2

(8) US$2,500,000 Class C-2U7N Floating Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa3
  -- Prior Rating: A2
  -- Prior Rating Date: 20 October 2004 Assigned A2

(9) EUR10,500,000 Class C-1E7 Inflation Rate Secured Portfolio
    Notes due 2011

  -- Current Rating: Caa3
  -- Prior Rating: A2
  -- Prior Rating Date: 20 October 2004 Assigned A2


AVOCA CLO V: S&P Junks Ratings on Three Classes of Notes
--------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class E and F notes
and the class R and S combination notes issued by Avoca CLO V PLC.

At the same time, S&P lowered its ratings on the class B, C1, C2,
and D notes.  S&P also removed the class Q combination notes from
CreditWatch negative and then withdrew its rating on these notes,
as they have been decoupled into their constituent parts.  The
class A1A, A1B, and A2 notes are unaffected by the rating actions.

On Feb. 17, S&P placed five tranches in this collateralized debt
obligation transaction on CreditWatch negative following its
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, based on S&P's analysis, par value losses due to
two corporate obligors S&P considers to have defaulted 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 a 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.  In S&P's view, this breach in the
overcollateralization tests is primarily due to adjustments to the
principal balance of assets rated 'CCC+' and lower, and to the
balance of assets purchased at a price lower than 85% of the
principal amount.

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 pay down the notes in this
transaction.  This effectively means that interest on the tranches
junior to the class A notes is likely to be deferred.  Under the
terms of the transaction documents, the cash flows to these
classes will resume once certain coverage tests come back into
compliance.

The same factors that contributed to the downgrade of the class C-
1, C-2, and E notes have affected S&P's ratings on the class R and
S combo notes.  This is due to the fact that the combo notes
include components of the rated tranches.  The class S combo notes
also hold the unrated class G subordinated notes as a component.

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

                           Ratings List

                         Avoca CLO V PLC
           EUR506 Million Floating- and Fixed-Rate Notes

                         Ratings Lowered

                                   Rating
                                   ------
                Class        To              From
                -----        --              ----
                B            AA-             AA
                C1           BBB             A
                C2           BBB             A
                D            BB              BBB

      Ratings Lowered and Removed From Creditwatch Negative

                               Rating
                               ------
            Class        To              From
            -----        --              ----
            E            CCC+            BB/Watch Neg
            F            CCC             B/Watch Neg
            R combo      B+              BBB+/Watch Neg
            S combo      CCC-            BBB/Watch Neg

      Rating Removed From Creditwatch Negative and Withdrawn

                               Rating
                               ------
            Class        To              From
            -----        --              ----
            Q combo      BBB             BBB/Watch Neg
                         NR              BBB

                        Ratings Unaffected

                       Class        Rating
                       -----        ------
                       A1a          AAA
                       A1b          AAA
                       A2           AAA

                          NR--Not rated.


SCOTTISH RE: Posts US$1.7 Bln Net Income in 3-Mos. Ended March 31
-----------------------------------------------------------------
Scottish Re Group Limited has posted to its web site its
consolidated unaudited financial statements for the three month
period ended March 31, 2009.  For the three month period ended
March 31, 2009, Scottish Re reported net income attributable to
ordinary shareholders of US$1,711 million, or US$7.84 per diluted
ordinary share, as compared to a net loss attributable to ordinary
shareholders of US$735 million, or (US$10.75) per diluted ordinary
share, for the prior year period.  The net income attributable to
ordinary shareholders was driven by a US$642 million gain
associated with the sale to Hannover Ruckversicherung AG
("Hannover Re") of a block of individual life reinsurance business
acquired by the Company from ING in 2004 and a US$1,150 million
non-cash gain generated by the de-consolidation of Ballantyne Re
plc ("Ballantyne Re") from the Company's consolidated financial
statements.

The sale of the block of individual life reinsurance business to
Hannover Re was completed on February 20, 2009 and was effective
as of January 1, 2009.  The gain associated with the sale was
principally driven by a US$1,469 million reduction in investments,
offset by a US$1,903 million release of reserves for future policy
benefits and a US$208 million decrease in other net liabilities.
The release of liabilities in excess of the assets transferred
generated a GAAP gain; however, the sale of the block of
individual life reinsurance business to Hannover Re did not
generate any cash proceeds and provided limited additional
liquidity for the Company.

Ballantyne Re is a special purpose reinsurance vehicle
incorporated under the laws of Ireland.  Effective January 1,
2009, Ballantyne Re no longer is consolidated within the financial
statements of Scottish Re.  The de-consolidation of Ballantyne Re
has reduced the Company's consolidated total assets and
liabilities by approximately US$885 million and US$2,035 million,
respectively, and resulted in a one-time non-cash de-consolidation
gain of US$1,150 million.  This gain has no impact on the
Company's current or future liquidity position.

                      About Scottish Re

Scottish Re Group Limited  (Pink Sheets:SKRRF) --
http:ww.scottishre.com/ -- is a global life reinsurance
specialist. Scottish Re has operating businesses in Bermuda,
Ireland and the United States.  Its flagship operating
subsidiaries include Scottish Annuity & Life Insurance Company
(Cayman) Ltd., and Scottish Re (U.S.), Inc.

                             *     *     *

As reported in the Troubled Company Reporter-Europe on
June 25, 2009, Fitch Ratings downgraded Scottish Re Group
Limited's Issuer Default Rating to 'CC' from 'CCC'.  Fitch
affirmed the Insurer Financial Strength of Scottish Re (U.S.) Inc.
at 'CCC'.  Fitch is withdrawing all SKRRF ratings.  Fitch will not
provide analytical coverage on SKRRF or its subsidiaries.


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


ALITALIA SPA: Gets Binding Offer for Atitech Unit
-------------------------------------------------
Marco Bertacche at Bloomberg News reports that Augusto Fantozzi,
the government-appointed bankruptcy administrator of Alitalia SpA,
has received a binding offer for 100 percent of the carrier's
heavy-maintenance unit Atitech SpA.  The report said the bidder
was not identified.  Financial terms of the bid were not
disclosed.

                          About Alitalia

Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina.  The Italian
government owns 49.9% of Alitalia.

As reported in the Troubled Company Reporter-Europe on November 7,
2008, Alitalia S.p.A. filed for Chapter 15 protection with the
U.S. Bankruptcy Court in the Southern District of New York.
Italy's national airline experienced financial difficulties for a
number of years caused, in large measure, by a combination of
competition from low-cost air carriers, poor management and
onerous union obligations, according to papers filed with the
court.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million in
2000 and 2001 respectively.  Alitalia posted EUR93 million in net
profits in 2002 after a EUR1.4 billion capital injection.  The
carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.

In the petition filed October 29, 2008, Prof. Augusto Fantozzi,
the appointed administrator, said the airline's financial
difficulties have been and exacerbated by spiraling fuel prices.

On August 29, 2008, Alitalia declared insolvency and filed for
commencement of extraordinary administration procedure at the
Tribunal of Rome.  Italian Prime Minister Silvio Berlusconi
appointed Mr. Fantozzi as extraordinary commissioner.
Under the Bankruptcy Bill, the Administrator has supplanted the
directors and other management of Alitalia.


CHRYSLER LLC: Fiat CEO Reports Progress on New Chrysler
-------------------------------------------------------
Fiat S.p.A. Chief Executive Sergio Marchionne said he was very
pleased with the progress his team had made so far at turning
around Chrysler LLC, The Wall Street Journal reported.

Mr. Marchionne said a group of Chrysler executives is set to hold
a discussion to determine what the automaker's product plans are.
He is hopeful that the product plans would be finished in two
weeks and "have a road map from the product standpoint."

Chrysler will name its new board at a meeting scheduled to take
place by the end of July, Mr. Marchionne disclosed.  He also
confirmed rumors that Chrysler plans to continue to sell the PT
Cruiser, which had been slated to be discontinued, the Journal
reported.

Fiat S.p.A. is said to be moving aggressively to put its stamp on
the automaker's assembly plants before they return to production,
the Detroit Free Press reported.

Rick Laporte, president of a Canadian Auto Workers branch at
Chrysler's minivan plant in Windsor, Ontario, told its members
last week that Fiat is accelerating the previous management's
implementation of "Toyota's world-class manufacturing system."

"You will see it and feel it the first day back to work.  Fiat has
stressed with us that they will remove the barriers in their way,
including members of management who do not change their old ways,"
Mr. Laporte said.

Leon Rideout, president of a CAW branch at a Chrysler car plant
near Toronto, disclosed changes included enlarging assembly-line
teams from six to 10 workers, the Detroit Free Press reported.

Sergio Marchionne, chief executive officer of Fiat and Chrysler,
will have plans for the U.S. automaker ready by July especially in
terms of new models and platform sharing,  Bloomberg reported,
citing an earlier report in Daily II Giornale, a daily newspaper
published in Italy.

                        About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- manufactures Chrysler, Jeep(R), Dodge
and Mopar(R) brand vehicles and products.  The Company has dealers
worldwide, including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan, and Australia.  In
2007, Cerberus Capital Management LP acquired an 80.1% stake in
Chrysler for $7.2 billion.  Daimler AG kept a 19.9% stake.

On April 30, Chrysler LLC and 24 affiliates sought Chapter 11
protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case
No. 09-50002).  Chrysler hired Jones Day, as lead counsel; Togut
Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group
LLC, and Greenhill & Co. LLC, for financial advisory services; and
Epiq Bankruptcy Solutions LLC, as its claims agent.  Chrysler has
changed its corporate name to Old CarCo following its sale to a
Fiat-owned company.  As of December 31, 2008, Chrysler had
US$39,336,000,000 in assets and US$55,233,000,000 in debts.
Chrysler had US$1.9 billion in cash at that time.

In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the terms
approved by the Bankruptcy Court, the company formerly known as
Chrysler LLC on June 10, 2009, formally sold substantially all of
its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC.  Fiat has a 20
percent equity interest in Chrysler Group.

Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy
News.  The newsletter tracks the Chapter 11 proceedings of
Chrysler LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


TISCALI SPA: Carphone's Acquisition of UK Business Cleared
----------------------------------------------------------
Andrew Parker at The Financial Times reports that the European
Commission on Tuesday cleared Carphone Warehouse's acquisition of
Tiscali SpA's UK broadband business.

The FT relates the European Commission said the transaction would
not damage competition.

Carphone, the FT discloses, agreed to pay GBP236 million (US$388
million) for the UK assets of Tiscali.

                        Debt Negotiations

As reported in the Troubled Company Reporter-Europe on April 29,
2009, Telegraph.co.uk said Tiscali, which is seeking to reduce
its EUR500 million (GBP453 million) debt pile, negotiated a stay
of execution from creditors, giving it until June to sort
out its finances.

                         Auditor's Doubts

On April 17, 2009, the TCR-Europe, citing Bloomberg News, reported
Tiscali said it disagreed with Ernst & Young for not issuing an
opinion on 2008 accounts and questioning the viability of its
business.  Citing Tiscali in a stock-exchange statement, Bloomberg
News disclosed Ernst & Young said it "can't express an opinion" on
2008 results as it is uncertain the company's business can
continue unless Tiscali signs a debt renegotiation deal.
Bloomberg News recalled in March, Tiscali halted payments on long-
term bank debts.  It had about EUR500 million (US$662 million) of
long-term bank borrowings at the end of last year, Bloomberg News
said.

                        About Tiscali

Cagliari, Italy-based Tiscali S.p.A. (BIT:TIS) --
http://www.tiscali.com/-- is an Internet communications company
providing broadband and narrowband access for consumer and
business applications, as well as communications services and
content.  The Company's portfolio includes Internet access in the
form of dial-up, broadband, satellite and leased lines, and
hosting services, such as co-location, shared hosting and managed
hosting.  Tiscali also offers streaming media, telephony and such
services as virtual private networks (VPN), allowing companies to
communicate with remote branches.  Its consumer products and
services include Internet access, voice, media, Internet Protocol
Television (IPTV) and value-added services, such as e-mail, Net
calendar, Net fax, Net phone, mail, instant messaging and Web
hosting. It is operational in Europe through its subsidiaries and
joint ventures.  As of June 30, 2008, Tiscali had approximately
3.2 million active users in Italy and the United Kingdom.


WIND ACQUISITION: Fitch Assigns 'B+' Rating on EUR2.7 Bil. Notes
----------------------------------------------------------------
Fitch Ratings has assigned Wind Acquisition Finance's SA proposed
new EUR2.7 billion senior note issuance a 'B+' expected rating.
The existing WAF senior notes due 2015, rated 'BB', remain on
Rating Watch Negative.  The rating watch will be resolved on
confirmation of the new issuance and the existing senior notes due
2015 are expected to be downgraded to 'B+' at that time.

The final rating for the new issuance is contingent on the receipt
of final documentation conforming to information already received.

Fitch has simultaneously affirmed Wind Telecomunicazioni SpA's
Long-term Issuer Default Rating at 'BB-' and its Short-term IDR at
'B'.  The Outlook is Stable.  Fitch has also affirmed Wind's
senior bank facility and the second lien notes issued by Wind
Finance SL S.A. at 'BB+' respectively.

Wind announced on Friday that it had obtained the necessary
consents from its bondholders to raise an additional
EUR2.7 billion in notes which will rank equally with WAF's
existing senior notes due 2015, and will be guaranteed on a senior
subordinated basis by Wind.  The proceeds of the proposed new note
issuance will be used to refinance the PIK notes issued by Wind
Acquisition Holdings Finance, and to pay a EUR500m dividend to
Weather Investments for general corporate purposes.

The proposed issue would increase the leverage for the WAF senior
noteholder creditor class as a whole to 4.6x from 3.2x at Q109
(the WAHF PIK notes are subordinated to the WAF senior notes).  As
noted in Fitch's commentary of June 18, 2009, this would
materially weaken the estimated level of recoveries available for
the existing senior note creditors, as the creditor class would
have expanded significantly.  Assuming that the proposed amount of
EUR2.7bn is issued, the senior notes (both existing and new
issuance) would be expected to achieve below average recoveries in
a default scenario and hence the rating for the senior notes
following the issuance is expected to be downgraded to 'B+', which
is one notch below the IDR of 'BB-'.

Wind's proposed issuance of new senior notes would enable the
company to address the EUR2bn PIK debt repayment which falls due
in 2011.  However, in addition to the prepayment of the PIK
instrument, Wind also intends to use part of the new debt proceeds
to make a one-off EUR500m dividend to its parent, Weather
Investments, resulting in an increase in overall debt levels for
Wind.  Adjusting for the proposed new issuance, Fitch estimates
that total net leverage would increase to 4.6x EBITDA compared
with 4.3x (including the PIK instrument) at Q109, which is still
commensurate with the 'BB-' rating.  Additionally, in order to
obtain the required lender and investor consents Wind has also
agreed to increase the applicable interest margins and senior note
coupons on the existing debt instruments.  The increased interest
payable, which would result from both the increase on the existing
facilities and the new cash-pay coupon on the proposed EUR2.7bn
note issuance, is expected to slow the pace of deleveraging going
forward.  EBITDA/net interest coverage would decline pro forma for
the transaction to an estimated 2.5x from 4.0x for FYE08.  While
this is weak for the current rating level, management's proven
track record in cash generation and debt prepayment continues to
support the IDR at 'BB-'.


WIND ACQUISITION: S&P Assigns 'BB-' Rating on EUR2.7 Bil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB-' debt rating to the proposed EUR2.7 billion senior unsecured
notes to be issued by Wind Acquisition Finance S.A. and guaranteed
on a senior subordinated basis by parent company Wind
Telecomunicazioni SpA (Wind; BB-/Stable/--), Italy's second-
largest integrated alternative telecoms operator, and by Wind
International Services.

At the same time, a recovery rating of '4' was assigned to this
debt, indicating Standard & Poor's expectation of average (30%-
50%) recovery for creditors in the event of a payment default.
S&P anticipate that the new notes would rank equally with the
existing third-lien notes also issued by Wind Acquisition Finance
S.A.

The rating assignments follow the existing noteholders' approval
of the consent solicitation that Wind launched on June 18, 2009.
The rating on the new notes is the same as S&P's corporate credit
rating on Wind.  It is based on preliminary information and is
subject to S&P's satisfactory review of final documentation.  In
the event of any changes to the amount or terms of the bond, the
recovery and issue ratings might be subject to further review.

                        Recovery Analysis

S&P has valued the business as a going concern. Given what S&P see
as Wind's good market position in Italy, established network
assets, and valuable customer base, S&P believes that a default
would most likely result owing to failure to refinance following
operational underperformance and significant leverage and absolute
debt.

Before this transaction, S&P had based its hypothetical default
scenario on the assumption that the group would be unable to
refinance the PIK debt at parent company WAHF before maturity
(2011), triggering a cross default in 2011 with debt located at
the Wind level.  If the EUR2.7 billion note issuance is
successful, S&P believes the most likely hypothetical point of
default would be later than in 2011.  Consequently, the amount of
senior secured debt ranking ahead of the notes upon default would
be lower than previously assumed, due to payment of the scheduled
amortizations.  This positive rating driver would be more than
offset, however, by a higher amount of subordinated debt
outstanding at the point of default, although recovery
expectations are at the high end of
the 30%-50% range.

S&P considers recovery prospects to reflect both the estimated
value available and accessible to the creditors and the likelihood
of insolvency proceedings being adversely influenced by Wind's
Italian domicile.

S&P's recovery rating reflects the Wind group's current capital
structure and its potential evolution following the existing
noteholders' approval of the recent consent solicitation, which
allows for the repayment of the PIK loan through the issuance of
EUR2.7 billion of new debt ranking pari passu with existing
subordinated debt.

Any significant change in the group's capital structure could
significantly affect recovery prospects, in particular for the
third-lien noteholders.  S&P believes that this is pertinent,
given the complex financing structure of the Wind and Weather
group.


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


ALEM CAPITAL: Creditors Must File Claims by July 10
---------------------------------------------------
JSC Alem Capital is currently undergoing liquidation.  Creditors
have until July 10, 2009, to submit proofs of claim to:

         Satpaev Str. 62-4
         Almaty
         Kazakhstan


BTA BANK: Goldman's Resignation May Hamper Debt Restructuring
-------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that the resignation
of BTA Bank's New-York based adviser, Goldman Sachs International
Inc., may hamper its debt restructuring efforts.

Bloomberg News relates BTA Chairman Arman Dunayev, who is also
deputy head of the National Wellbeing Fund Samruk-Kazyna, which
manages the state's 75.1 percent stake in BTA, said the bank
received a letter of resignation from Goldman Sachs.

"The change of adviser midway through the process would not be
constructive," Bloomberg News quoted  Milena Ivanova-Venturini,
director of Equity Research Banking & Finance, a unit of
Renaissance Capital in Almaty, as saying.  "A further slowdown in
a debt restructuring process that is already viewed by investors
as extremely slow and not particularly transparent will add
further negativism to the image of Kazakhstan as a reliable
counterparty."

BTA officials declined to say who would replace Goldman Sachs,
Bloomberg News notes.

Bloomberg News recalls BTA hired Goldman Sachs and UBS AG as
restructuring consultants after the government took control of the
bank in February.

According to Bloomberg News, BTA said in April that it stopped
making principal payments on its debt after creditors demanded
accelerated payment, triggering a default.  Bloomberg News
discloses Kairat Kelimbetov, the head of Samruk-Kazyna, said
June 5 the bank is in talks with creditors and will probably reach
a debt restructuring agreement by August.

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO, --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.  The Bank has in its
offer personal banking services, comprised of current accounts,
savings accounts, term deposits, safety deposit boxes, money
transfer services, credit facilities, and corporate banking
services, including business accounts, credit facilities, treasury
services, letters of guarantee, letters of credit, foreign
exchange services, remittances and other solutions, as well as
debt and credit cards, card services and electronic banking
services.  The Bank has 14 subsidiaries and six affiliated
companies.  It offers its services through a network of numerous
regional branches, cash settlement centers throughout Kazakhstan
and international representative offices located in Ukraine,
Russia, China and the United Arab Emirates.


EK LLP: Creditors Must File Claims by July 10
---------------------------------------------
Creditors of LLP Module Service EK have until July 10, 2009, to
submit proofs of claim to:

         Pobeda Ave. 5
         Pavlodar
         Kazakhstan

The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on April 10,
2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Djambulskaya Str. 6
         Pavlodar
         Kazakhstan


PAPPILON COMPANY: Creditors Must File Claims by July 10
-------------------------------------------------------
Creditors of LLP Trade-Industrial Company Pappilon have until
July 10, 2009, to submit proofs of claim to:

         Frunze Str. 52-52
         Zyryanovsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (72335) 6-03-83

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on April 7,
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


TRISTAN OIL: Moody's Downgrades Corporate Family Rating to 'Caa3'
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Caa3 the Caa2
corporate family and Probability of Default ratings of Tristan Oil
Ltd as well as the Caa2 rating of its US$300 million and US$120
million Senior Secured Notes maturing 2012.  The outlook on the
ratings remains negative.

The downgrade follows Moody's assessment of a complex series of
unrated financing arrangements recently completed by the company
as detailed in their press release dated June 19, 2009.  The
structure of the newly raised debt includes the issuance of a
deeply discounted bond, as well as the assumption of certain
financial liabilities related to the US$60 million credit facility
- both of which materially increase the group's gross debt while
leaving the company exposed to high default risk over the near
term.  The discounted proceeds of the bond, as well as the
remaining portion of this complex financing package, were used to
fund the company's tax obligations, as well as to settle the
transaction-related and general corporate expenses.

With this background, Moody's is concerned that the net impact of
these transactions, were a default and/or sale of Tristan's core
operating activities to occur, would undermine the positioning of
the existing bondholders and result in a lower recovery rate.
Moody's also notes that there is a limited visibility relating to
the valuation of Tristan's core businesses at this time.

This action follows a chain of rating actions initiated by Moody's
in January 2009, and reflects in Moody's view worsening prospects
for the company to continue operate as a going concern entity, as
well as the agency's concerns over the amplified operational,
regulatory and liquidity risks for the company.

Moody's previous rating action on Tristan took place on 5 March
2009, when Tristan's ratings were downgraded to Caa2 from B3 and a
negative outlook was assigned to the rating.

Tristan is a special purpose vehicle domiciled in the British
Virgin Islands created for the sole purpose of issuing secured
notes to finance a loan to two oil and gas companies, KPM and TNG,
organized under the laws of Kazakhstan.  The guarantors of the
notes, KPM and TNG are engaged in the exploration and development
of two oil and gas fields and in the production of oil, condensate
and gas in the Pre Caspian basin of Western Kazakhstan.  All
companies directly or indirectly are owned by Mr. Stati, a
Moldovan citizen, and certain members of his family.


WEST LLP: Creditors Must File Claims by July 10
-----------------------------------------------
Creditors of LLP Construction Firm West have until July 10, 2009,
to submit proofs of claim to:

         Pobeda Ave. 5
         Pavlodar
         Kazakhstan

The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on April 10,
2009 after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Djambulskaya Str. 6
         Pavlodar
         Kazakhstan


VOSTOK DOR: Creditors Must File Claims by July 10
-------------------------------------------------
Creditors of LLP Vostok Dor Mash Service have until July 10, 2009,
to submit proofs of claim to:

         Frunze Str. 52-52
         Zyryanovsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (72335) 6-03-83

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on April 7,
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


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


REUS GROUP: Creditors Must File Claims by July 24
-------------------------------------------------
LLP Reus Group is currently undergoing liquidation.  Creditors
have until July 24, 2009, to submit proofs of claim to:

         Moskovskaya Str. 73-39
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 69-73-73


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


ARCHANGEL DIAMOND: Faces Involuntary Bankruptcy Petition in U.S.
----------------------------------------------------------------
Three creditors have filed a petition against Archangel Diamond
Corporation under Chapter 7 of the U.S. Bankruptcy Code in
Colorado, in the United States

On June 4, 2009, the Company said it had entered into a non-
binding term sheet with an arm's-length party in connection with a
proposed non-brokered private placement of common shares in the
capital of the Company at a price not to exceed C$0.05 per share
for aggregate proceeds of US$13.75 million.  The funds made
available through the private placement would be used to settle
the Company's current debts, provide funds to continue pursuit of
its legal claims in Stockholm and Colorado and necessary working
capital.

On June 15, 2009, Archangel Diamond said it received notice from
the investor group that the investor has determined not to proceed
on the terms contemplated in that term sheet and has, therefore,
terminated it.

The proposed non-brokered private placement would have constituted
a "change of control" for the purposes of the policies of the TSX
Venture Exchange and the transaction would have been subject to
the approval of a simple majority of the current shareholders of
the Corporation.  The Company had expected the private placement
to close by June 30, 2009.

Archangel Diamond is a Canadian diamond company focused on
exploration and mining in Russia.  The company is listed on the
Toronto Venture Exchange (trading symbol AAD).


ARMAVIRSKIY BRICK: Creditors Must File Claims by July 19
--------------------------------------------------------
Creditors of LLC Armavirskiy Brick Plant (TIN 2302054278, PSRN
1072302000462) have until July 19, 2009, to submit proofs of
claims to:

         O. Ryabich
         Temporary Insolvency Manager
         Office 34
         Ordzhonokidze Str/ 27
         350000 Krasnodar
         Russia

The Arbitration Court of Krasnodarskiy will convene at 10:30 a.m.
on Oct. 12, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. ?-32–8375/2009–60/229B.

The Debtor can be reached at:

         LLC Armavirskiy Brick Plant
         Shosseynaya Str. 57
         352906 Armavir
         Russia


CHEREPOVETSKAYA CONSTRUCTION: Claims Filing Deadline is July 10
---------------------------------------------------------------
Creditors of LLC Cherepovetskaya Construction Company (TIN
3528106829) have until July 10, 2009, to submit proofs of claims
to:

         Yu.Shubin
         Insolvency Manager
         Novgorodskaya Str. 27A-6
         Vologda
         Russia

The Arbitration Court of Vologodskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?13–3889/2009.


GLAVMOSSTROY OAO: Alfa's Mikhail Fridman Files Bankruptcy Suit
--------------------------------------------------------------
Mikhail Fridman, owner of Russia's Alfa Bank, has filed a
bankruptcy suit against Oleg Deripaska's building firm
GlavMosStroy OAO, Yulia Komleva at Reuters reports citing court
documents.

Reuters says Alfa has filed claims for a total of RUR1 billion
(US$32.23 million) against GlavMosStroy, part of Mr. Deripaska's
bigger GlavStroy construction conglomerate, since the beginning of
2009.

According to Reuters, a unit of steel maker MMK and GlavStroy's
former unit Strom Holding, are also seeking to place GlavMosStroy
in bankruptcy.

Kholdingovaya kompaniya Glavmosstroy OAO (Open Joint Stock Holding
Company Glavmosstroy) -- http://www.glavmosstroy.ru/-- is a
Russia-based holding company, which main areas of activity are
construction trade and investment operations.  The Company
specializes in the construction of apartment houses and complexes,
reconstruction of historical buildings and apartment houses,
erection of children's preschool establishments, schools, and
grammar schools under typical and individual projects and objects
of public health services.  The Company is active on the territory
of Moscow and the Moscow Region.  It operates through numerous
subsidiaries and affiliated companies.


MTEK-ARMOSILIKATNYE: Creditors Must File Claims by July 19
----------------------------------------------------------
Creditors of LLC MTEK-Armosilikatnye Izdeliya (Reinforced Silicate
Items Manufacturing) have until July 19, 2009, to submit proofs of
claims to:

         A. Minin
         Temporary Insolvency Manager
         Post User Box 199
         400050 Volgograd
         Russia

The Arbitration Court of Volgogradskaya will convene at 9:00 a.m.
on Nov. 11, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. ?12–10267/2009.

The Debtor can be reached at:

         LLC MTEK-Armosilikatnue Izdeliya
         Krasnopolyanskaya Str. 55a
         400075 Volgograd
         Russia


STROY-TRANS LLC: Creditors Must File Claims by July 10
------------------------------------------------------
Creditors of LLC Stroy-Trans (TIN 3811076172, PSRN 1033801546019)
(Construction) have until July 10, 2009, to submit proofs of
claims to:

         D. Murashov
         Temporary Insolvency Manager
         Dekabrskikh sobytiy Str. 109-48
         664007 Irkutsk
         Russia

The Arbitration Court of Irkutskaya will convene at 10:45 a.m. on
Oct. 8, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?19–5704/09–63.

The Debtor can be reached at:

         LLC Stroy-Trans
         Piskunova Str. 150
         664081 Irkutsk
         Russia


VODOKANAL ST. PETERSBURG: S&P Cuts Rating to BB+/Watch Neg/B-1
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
ratings on 18 utility and corporate entities in Europe, the Middle
East, and Africa following the revision of its methodology and
assumptions for rating government-related entities.

S&P is upgrading five issuers (three telecommunications operators
and two utilities), downgrading two utilities, and revising the
outlook on two utilities to stable from negative.  S&P also are
placing 10 issuers on CreditWatch: two utilities with positive
implications and eight issuers with negative implications.  The
eight companies placed on CreditWatch with negative implications
comprise four utilities, a rail company, a gas marketer, a
liquefied natural gas shipping company, and an energy holding
company.  One of the utilities placed on CreditWatch with negative
implications is also one of those being downgraded.  The
geographic spread of the entities is wide.  Seven are domiciled in
the EU, four in Norway, one in Switzerland, one in South Africa,
one in Iceland, two in Russia, and two in the Middle East.

Standard & Poor's updated criteria are detailed in the article
titled "Enhanced Methodology And Assumptions For Rating
Government-Related Entities," published June 29, 2009, on
RatingsDirect.  The changes to S&P's criteria are designed to
achieve a more granular analysis of the range of GREs across
sectors and regions.  S&P believes these changes will provide more
transparency in its rating approach.

S&P aims to resolve the CreditWatch placements over the next three
months after further discussion with the relevant management and
government officials.

An updated summary analysis on each of the affected entities,
which will detail the reasons behind the rating action, will be
published shortly.

S&P intends to complete its review of all issuers affected by this
updated criteria within the next three to six months.

                           Ratings List

                             Upgraded

                            To                  From
                            --                  ----
Belgacom S.A.              A+/Stable/A-1       A/Stable/A-1
Statnett SF                AA/Stable/A-1+      A+/Stable/A-1
Swisscom AG                A/Stable/--         A-/Stable/--
Telenor ASA                A-/Negative/A-2     BBB+/Negative/A-2
Vattenfall AB              A/Stable/A-1        A-/Stable/A-2

                            Downgraded

                            To                  From
                            --                  ----
Landsvirkjun                BB/Stable/B-1       BBB-/Watch Neg/A-3

              Downgraded and on CreditWatch Negative

                            To                  From
                            --                  ----
Vodokanal St. Petersburg   BB+/Watch Neg/B-1   BBB-/Negative/A-3

                       CreditWatch Positive
          (Possible Upgrades Likely Limited to One Notch)

                               To                  From
                               --                  ----
Fortum Oyj                    A-/Watch Pos/A-2    A-/Stable/A-2
Statkraft AS                  BBB+/Watch Pos/A-2  BBB+/Stable/A-2

                       CreditWatch Negative
         (Possible Downgrades Likely Limited to One Notch)

                               To                  From
                               --                  ----
GasTerra B.V.                 AA+/Watch Neg/A-1+  AA+/Stable/A-1+
Rand Water*                   A+/Watch Neg/--     A+/Negative/--
RusHydro (OJSC)               BBB-/Watch Neg/A-3  BBB-/Stable/A-3

                       CreditWatch Negative
        (Multinotch Downgrade of Long-Term Rating Possible)

                               To                  From
                               --                  ----
Enemalta Corp.                BBB+/Watch Neg/--   BBB+/Stable/--
Nakilat Inc.                  A+/Watch Neg/--     A+/Stable/--
Norges Statsbaner AS          AA/Watch Neg/A-1+   AA/Stable/A-1+
Abu Dhabi National Energy
Company PJSC                  AA-/Watch Neg/A-1+  AA-/Stable/A-1+

                        Outlook Revision

                              To                 From
                              --                 ----
Electricite de France S.A.    A+/Stable/A-1      A+/Negative/A-1
RTE EDF Transport S.A.        AA-/Stable/A-1+    AA-/Negative/A-1+

                  * Local currency rating only.
     NB: This list does not contain the affected debt ratings.


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


FTGENVAL TDA: Moody's Assigns (P)'B2' Rating on EUR40 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned these provisional ratings
to the debt to be issued by FTGENVAL TDA CAM 1, Fondo de
Titulizacion de Activos:

  -- (P)Aaa to the EUR30.0 million Series A1 notes
  -- (P)Aaa to the EUR130.0 million Series A2(G) notes
  -- (P)B2 to the EUR40.0 million Series B notes

FTGENVAL TDA CAM 1, Fondo de Titulizacion de Activos, is a
securitisation of standard loans granted mainly to small- and
medium-sized enterprises and originated by Caja de Ahorros del
Mediterraneo (A3/P-2) under the FTGENVAL program.  The portfolio
will be also serviced by CAM.

The provisional pool of underlying assets was, as of May 2009,
composed of a portfolio of 2,897 loans and 2,635 borrowers granted
to Spanish enterprises and self-employed individuals.  The loans
have been originated between 1997 and 2009, with a weighted
average seasoning of 1.3 years and a weighted average remaining
life of 9.46 years.  Around 41% of the outstanding of the
portfolio is secured by mortgage guarantee over different types of
properties (33% of the portfolio being first-lien with a weighted
average LTV of 61%).  Geographically, the pool is concentrated in
Alicante (23%), Valencia (12%) and Murcia (11%).  At closing,
there will be no loans more than 30 days in arrears and subject to
a 5% limit.

According to Moody's, this deal benefits from several credit
strengths, such as a relatively low concentration in the Building
and Real Estate sector for the Spanish market (below 14% in the
provisional pool), coupled by a low percentage of bullet loans
(0.5%) and good geographical distribution which Moody's took into
consideration in its portfolio analysis.  However, Moody's notes
that the transaction features a number of credit weaknesses,
including a relatively long weighted average life of 5.1 years,
certain relatively large obligor concentrations and the
uncertainty associated with the fact that the initial analysis was
based on a very big provisional pool (over EUR400 millions)
compared with the actual portfolio which is expected to be sold at
issuance (EUR200 millions).  Given this increased uncertainty,
Moody's tested different conservative portfolio combinations.  In
addition, the structural weakness of having no swap in place to
protect against interest rate risk was also tested in various
quantitative runs, by assuming various conservative portfolio and
note interest mismatch scenarios possible during the life of the
transaction.  Ultimately, these increased risks were reflected in
Moody's analysis and provisional ratings, where several
simulations tested the available credit enhancement and 15.3%
reserve fund to cover potential shortfalls in interest or
principal envisioned in the transaction structure.

Moody's initially analyzed and will monitor this transaction using
the rating methodology for EMEA SME ABS transactions as described
in the Rating Methodology reports "Refining the ABS SME Approach:
Moody's Probability of Default assumptions in the rating analysis
of granular Small and Mid-sized Enterprise portfolios in EMEA",
March 2009 and "Moody's Approach to Rating Granular SME
Transactions in Europe, Middle East and Africa", June 2007.
Moody's analysis focused primarily on (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information and other statistical information; (iii) the credit
enhancement provided by the pool spread, the cash reserve and the
subordination of the notes; and (iv) the legal and structural
integrity of the transaction.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes (April 2052).  Investors should
note that the Series A2(G) also benefits from the guarantee of
Generalitat de Valencia (Aa2/P-1) for interest and principal
payments.  Nevertheless, the expected loss associated with Series
A2(G) notes is consistent with a Aaa rating at issuance regardless
of the Generalitat de Valencia guarantee.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal on Series A1, A2 (G) and B at par on or
before the rated final legal maturity date.  Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

Moody's issues provisional ratings in advance of the final sale of
securities, and these ratings only reflect Moody's preliminary
credit opinions regarding the transaction.  Upon a conclusive
review of the final pool of assets and the final documentation,
Moody's will endeavor to assign a definitive rating to the notes.
A definitive rating, if any, may differ from a provisional rating.


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


E.A. KELLER LIEGENSCHAFTEN AG: Claims Filing Deadline is July 8
---------------------------------------------------------------
Creditors of E.A. Keller Liegenschaften AG are requested to file
their proofs of claim by July 8, 2009, to:

         Ernst A. Keller
         Stegenmatteliweg 5
         5621 Zufikon
         Switzerland

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


EDGE CONSULTING AG: Creditors Must File Claims by July 8
--------------------------------------------------------
Creditors of Edge Consulting AG are requested to file their proofs
of claim by July 8, 2009, to:

         Edge Consulting AG
         via Franscini 10
         6850 Mendrisio
         Switzerland

The company is currently undergoing liquidation in Mendrisio.  The
decision about liquidation was accepted at a general meeting held
on May 14, 2009.


GNC GLOBAL: Claims Filing Deadline is July 8
--------------------------------------------
Creditors of GNC Global Network Communications AG are requested to
file their proofs of claim by July 8, 2009 to:

         Bruno Schelbert
         Liquidator
         Baarerstrasse 53
         6304 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at a general meeting held
on November 29, 2006.


JONACOR AG: Creditors Must File Claims by July 8
------------------------------------------------
Creditors of Jonacor AG are requested to file their proofs of
claim by July 8, 2009, to:

         Interis AG
         Liquidator
         Loewenstrasse 20
         8001 Zurich
         Switzerland

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


JULIUS BAER: Moody's Cuts Ratings on Two Bond Funds to 'Ba/MR5'
---------------------------------------------------------------
Moody's Investors Service has downgraded the credit and/or market
risk ratings of seven bond funds managed by Julius Baer Asset
Management, a Zurich-based investment management company which is
part of Bank Julius Baer & Co. AG (Aa3 stable).  The rating agency
has also affirmed the ratings of two other bond funds.

The ratings affected are:

  -- Julius Baer Dollar Medium Term Bond Fund: A/MR4, from Aa/MR2

  -- Julius Baer Global Convertible Bond Fund: Ba/MR5, from
     Baa/MR5

  -- Julius Baer Global High Yield Bond Fund: B/MR5, from B/MR4

  -- Julius Baer Dollar Bond Fund: A/MR5, from Aa/MR3

  -- Julius Baer Emerging Bond Fund (USD): Ba/MR5, affirmed

  -- Julius Baer Emerging Bond Fund (EURO): Ba/MR5, affirmed

  -- Julius Baer Local Emerging Bond Fund: Ba/MR5, from Baa/MR4

  -- Julius Baer Swiss Franc Bond Fund: A/MR5, from Aa/MR2

  -- Julius Baer BF Total Return: Baa/MR3, from A/MR3

Moody's will withdraw the ratings of all nine funds for business
reasons.

                       Fund Credit Ratings

Moody's downgraded the fund credit ratings of the Julius Baer
Dollar Medium Term Bond Fund (to A from Aa) and the Julius Baer
Dollar Bond Fund (to A from Aa) due to a decline in the funds'
maturity-adjusted weighted-average credit quality, primarily
resulting from deteriorating credit quality in their respective
portfolios and target investment universe.

Moody's downgraded the fund credit ratings of the Julius Baer
Global Convertible Bond Fund (to Ba, from Baa), the Julius Baer
Swiss Franc Bond Fund (to A from Aa) and the Julius Baer BF Total
Return Bond Fund (to Baa from A) due to the deterioration in the
funds' maturity-adjusted weighted-average credit due to downgrades
of ratings on securities held in their respective portfolios as
well as their investment in securities which do not carry
published credit ratings.  In order to arrive at a view of the
credit quality of the portfolios in their entirety, Moody's has
estimated the credit quality of these securities conservatively.

The Julius Baer Global High Yield Bond Fund's credit rating
remains unchanged at B.

Moody's downgrade of the Julius Baer Local Emerging Bond Fund's
credit rating to Ba, from Baa, reflects the deterioration in the
fund's credit quality, resulting from a number of credit
downgrades in the funds' holdings as well a small investment in
securities with perpetual maturities and call features (at the
option of the bond issuer).  Because these securities have very
long terms, the associated expected loss is relatively higher than
it would be if the securities had shorter terms.

                       Market Risk Ratings

Moody's downgraded the market risk ratings of the Julius Baer
Dollar Medium Term Bond Fund to MR4 (from MR2), the Julius Baer
Dollar Bond Fund to MR5 (from MR3), the Julius Baer Global High
Yield Bond Fund to MR5 (from MR4), the Julius Baer Local Emerging
Bond Fund to MR5 (from MR4) and the Julius Baer Swiss Franc Bond
Fund to MR5 (from MR2).  Moody's rating actions reflect increased
volatility in the funds' net asset value history over the past 12
months and incorporate the agency's view that, given their risk
profiles and strategies, the funds' net asset values are likely to
continue to experience higher levels of volatility going forward.
Moody's notes that these funds are actively managed to maximize
risk adjusted returns for their shareholders but challenging
market and liquidity conditions together with an increased drive
from the current manager to generate performance have resulted in
additional volatility and are likely to continue to do so.

The market risk ratings of the Julius Baer Global Convertible Bond
Fund and the Julius Baer BF Total Return Fund has remained
unchanged at MR5 and MR3 respectively.

The previous Moody's rating actions on these funds were:

  -- 23 January 2007: Moody's assigned fund credit and market risk
     ratings to the Julius Baer Global Convertible Bond Fund
     (Baa/MR5), Julius Baer Global High Yield Bond Fund (B/MR5),

  -- 24 January 2007: Moody's assigned fund credit and market risk
     ratings to the Julius Baer Dollar Medium Term Bond Fund
     (Aa/MR2), Julius Baer Dollar Bond Fund (Aa/MR3),

  -- 25 January 2007: Moody's assigned fund credit and market risk
     ratings to the Julius Baer Emerging Bond Fund US$(Ba/MR5),
     Julius Baer Emerging Bond Fund EUR(Ba/MR5), Julius Baer
     Local Emerging Bond Fund (Baa/MR4), Julius Baer Swiss Franc
     Bond Fund (Aa/MR2).

  -- 9 MAY 2008: Moody's assigned fund credit and market risk
     ratings to the Julius Baer JB BF Total Return Bond Fund
     (A/MR3).


MLC LEHMANN: Claims Filing Deadline is July 8
---------------------------------------------
Creditors of MLC Lehmann & Partners AG are requested to file their
proofs of claim by July 8, 2009, to:

         Arnold Wehinger Kaelin & Ferrari
         Gotthardstrasse 3
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
general meeting held on April 28, 2008.


UBS AG: U.S. Government Seeks Disclosure of American Clients
------------------------------------------------------------
Christine Seib at Times Online reports that the U.S. government on
Tuesday night said it would force UBS to disclose names of its
American clients with offshore accounts.

The U.S. Justice Department sued UBS in a Florida court in
February, seeking the names of 52,000 Americans that it suspects
have used offshore bank accounts with the Swiss bank to hide money
from the Internal Revenue Service.  The case is due to be heard on
July 13, Times Online says.

Times Online relates Switzerland last week signed an agreement to
share information with America about money U.S. citizens have
stashed in secret Swiss bank accounts.  According to Times Online,
the Swiss Parliament may refuse to ratify a bilateral tax deal
with America if UBS faces continued legal action.

Times Online notes a UBS spokeswoman reiterated the bank's claims
that turning over the names would violate Swiss banking secrecy
laws.  "Issues of the exchange of information in tax matters
should be discussed and resolved between friendly governments,"
Times Online quoted the UBS spokeswoman as saying.

                            About UBS AG

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


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


ACTIVE-AGRO LLC: Creditors Must File Claims by July 8
-----------------------------------------------------
Creditors of LLC Active-Agro (code EDRPOU 32859149) have until
July 8, 2009, to submit proofs of claim to T. Chagovets,  the
company's insolvency manager.

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on May 25, 2009.  The case is docketed under
Case No. B-19/61-09.

The Court is located at:

         The Economic Court of Kharkov
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Debtor can be reached at:

         LLC Active-Agro
         Lenin str. 267
         Krasnokutsk
         Kharkov
         Ukraine


AGRO EUSTACE: Creditors Must File Claims by July 8
--------------------------------------------------
Creditors of LLC Agro Eustace (code EDRPOU 35176211) have until
July 8, 2009, to submit proofs of claim to:

         V. Peychev
         Insolvency Manager
         Office 55
         Architect Starov Str. 6
         54046 Nikolayev
         kraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on May 28, 2009.  The case is docketed under
Case No. 18/32/09.

The Court is located at:

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

The Debtor can be reached at:

         LLC Agro Eustace
         Heroes of Stalingrad Avenue 3
         54025 Nikolayev
         Ukraine


BELARA LLC: Creditors Must File Claims by July 8
------------------------------------------------
Creditors of LLC Belara (code EDRPOU 32662802) have until July 8,
2009, to submit proofs of claim to:

         V. Filatov
         Insolvency Manager
         Office 141
         Marshal Konev Str. 9
         03191 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 26, 2009.  The case is docketed under
Case No. 44/235-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Belara
         Alma-Ata Str. 58
         02092 Kiev
         Ukraine


LIFAN DK: Creditors Must File Claims by July 8
----------------------------------------------
Creditors of LLC Lifan DK (code EDRPOU 00274826) have until
July 8, 2009, to submit proofs of claim to:

         R. Mikhayliuk
         Insolvency Manager
         Office 7
         KOzlaniuk Str. 2
         79014 Lvov
         Ukraine

The Economic Court of Lvov commenced bankruptcy proceedings
against the company on May 25, 2009.  The case is docketed under
Case No. 21/17.

The Court is located at:

         The Economic Court of Lvov
         Lichakovskaya Str. 128
         79010 Lvov
         Ukraine

The Debtor can be reached at:

         LLC Lifan DK
         Briukhovitskaya Str. 35
         79039 Lvov
         Ukraine


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


ALBA 2006-2: S&P Junks Ratings on Class F Notes From 'B-'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class F notes issued by ALBA 2006-2 PLC.  At the same time, S&P
removed from CreditWatch negative and affirmed the class C and D
notes issued in ALBA 2006-1 PLC and the class B to E notes issued
by ALBA 2006-2.  S&P affirmed the other classes of notes.

This downgrade in ALBA 2006-2 follows significant increases in
losses and loss severities reported over the past two quarters.
This has led to the reserve fund being fully drawn, leaving an un-
cleared balance on the class F principal deficiency ledger of
GBP69,464.

According to the latest investor reports, repossessions in both
ALBA 2006-1 and ALBA 2006-2 have decreased in the past quarter.
In ALBA 2006-1, repossessions have fallen to 2.45% in May 2009
from 4.16% in February 2009.  In ALBA 2006-2, repossessions have
fallen to 1.18% in June 2009 from 2.65% in March 2009.  However,
long-term arrears are still high in both transactions and S&P
believes it is likely that there will be increasing loss
severities for loans that ultimately default.

S&P will monitor these transactions over the coming two quarters
for changes in collateral performance, losses, and loss
severities.

                          Ratings List

                         Rating Lowered

                         ALBA 2006-2 PLC
      GBP466.641 Million And EUR110 Million Mortgage-Backed
                       Floating-Rate Notes

                                 Rating
                                 ------
               Class      To                    From
               -----      --                    ----
               F          CCC                   B-

          Ratings Removed From Creditwatch and Affirmed

                         ALBA 2006-1 PLC
   GBP556.25 Million Mortgage-Backed Floating-Rate Notes Due 2037

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

                         ALBA 2006-2 PLC
      GBP466.641 Million And EUR110 Million Mortgage-Backed
                       Floating-Rate Notes

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

                         Ratings Affirmed

                         ALBA 2006-1 PLC
  GBP556.25 Million Mortgage-Backed Floating-Rate Notes Due 2037

                         Class      Rating
                         -----      ------
                         A3a        AAA
                         A3b        AAA
                         B          AA
                         E          B
                         MERCs      AAA

                         ALBA 2006-2 PLC
      GBP466.641 Million And EUR110 Million Mortgage-Backed
                       Floating-Rate Notes

                         Class      Rating
                         -----      ------
                         A3a        AAA
                         A3b        AAA
                         MERCs      AAA


CANDOVER INVESTMENTS: Ontex Attracts Interest; Takeover Talks End
-----------------------------------------------------------------
Martin Arnold at The Financial Times reports that Candover, the
private equity group, received feelers from potential trade buyers
of its Belgian-based nappy maker Ontex.

According to the FT, a sale of Ontex would generate capital for
Candover Investments, the private equity group's troubled listed
parent.  The FT says people close to the company believe Ontex,
which was forced into a loan refinancing two years ago to reduce
its debt burden from more than EUR700 million, is worth about
EUR950 million (GBP808 million).  Candover, the FT discloses,
valued the equity of the company at GBP266.7 million at the end of
December.

                          Takeover Talks

In a separate report, the FT relates Candover Investments on
Monday said it ended takeover talks with potential buyers.  The FT
recalls the group received a range of proposals, such as outright
takeover or a minority stake sale, from rival groups including
Blackstone, Electra and Coller Capital, but none were judged to
give shareholders sufficient value.  The FT discloses people close
to Candover Investments said it was likely to split into a listed
investment company and a separate fund management company, which
could be bought by the general partners or by a third-party
investor.

                           Balance Sheet

The FT notes the pressure eased on Candover Investments this month
after it sold Wood Mackenzie, the energy research group, for
GBP533 million to Charterhouse Capital, more than halving its net
debt from GBP64.9 million at the end of December.  Candover
Investments, as cited by the FT, said it was now confident of
being able to comply with the covenant obligations on its GBP198
million of loan notes, which mature in 2014, as well as the
outstanding GBP80 million commitment to its earlier 2005 fund.
According to the FT, if a sale of Ontex goes ahead, it could
bolster its balance sheet by about GBP30 million.

Candover Investments PLC -- http://www.candoverinvestments.com/
-- is an investment trust listed on the London Stock Exchange
since 1984.  It invests in buyouts across Europe via funds managed
by its wholly owned subsidiary, Candover Partners, a European
private equity house.

As well as investing money on behalf of Candover Investments plc,
Candover raises substantial funds for buyout investment from third
parties such as pension funds, insurance companies, endowments,
charities and other professional investors.


INCISIVE MEDIA: Nears Debt-For-Equity Swap Deal
-----------------------------------------------
Martin Arnold at The Financial Times reports that Incisive Media
Plc is close to reaching a debt-for-equity swap agreement with its
senior lenders that would leave its private equity owner Apax
Partners with only a 2 per cent stake.

The FT recalls the company, which has suffered a steep fall in
advertising spending, breached the terms of its loan agreements on
its GBP174 million of senior debt in December and appointed
restructuring specialists Talbot Hughes McKillop.  Its lenders
granted the company a covenant waiver while the debt was
restructured, the FT relates.

According to the FT, senior lenders -– including Royal Bank of
Scotland, Allied Irish Banks, Bank of Ireland and Alcentra –- have
proposed to cut its senior debt to GBP110 million in exchange for
an 83 per cent stake in the company.  The FT says the company's
management -– led by founder and chief executive Tim Weller -–
would be offered a 10 per cent stake and the holders of its GBP48
million of mezzanine debt would be offered 5 per cent of its
equity.

The FT discloses lenders turned down a proposal by Apax, which
owns 59 per cent of Incisive, to inject GBP20 million of fresh
equity to keep control of the company.

Incisive Media Plc -- http://www.incisivemedia.com-- provides
business information related to a variety of markets: risk
management, legal services, insurance, mortgage, private equity,
and financial information technology services, among others.
Incisive Media publishes magazines, Web sites, Web-based
conference series, newsletters, and related databases.  It also
organizes conferences and exhibitions. Publications include
"Investment Week", "Mortgage Solutions", and "Risk". Apax Partners
and company management took Incisive Media private in 2006.


KEYDATA INVESTMENT: Sale Halted on GBP103 Mln Fraud Probe
---------------------------------------------------------
Matthew Vincent, Brooke Masters and Lucy Warwick-Ching at The
Financial Times report that the Serious Fraud has been called in
to examine a suspected GBP103 million fraud at Keydata Investment
Services.

According to the FT, PricewaterhouseCoopers, which was appointed
joint administrator of Keydata last month, said that as a result
of the irregularities it had uncovered, a planned sale of the
firm, which had more than GBP3 billion in assets under management,
could not go ahead.  The FT relates PwC said it had found that
life insurance policies backing several Keydata bonds had been
sold and the proceeds "misappropriated", while payments to
investors had been made "in an irregular fashion" out of the
company's own funds.  Catherine Boyle and Miles Costello at The
Times disclose Keydata mis-sold GBP250 million of income bonds and
savings plans to 30,000 individual customers.  The Times relates
that, when the firm went into administration, it had GBP2.8
billion of assets, about GBP700 million of which were investments
taken out by individual savers.  There are also irregularities in
23,000 investments in Lifemark, another Keydata investment, The
Times states.

PwC, the FT notes, is still trying to sell off the part of the
business that provides services to third party products, but will
not sell the business as a going concern.

                   Director's Remuneration

In a separate report the FT discloses directors of Keydata
Investment Services, where administrators believe GBP103 million
(US$169 million) of private investors' money may have gone
missing, paid themselves GBP7.9 million in the two years prior to
the company coming under investigation by the Financial Services
Authority.  The FT discloses filings at Companies House show that
three directors -– Stewart Owen Ford, chief executive, Craig
McNeil, company secretary, and Mark John Owen -– received GBP3.7
million in the year to September 2008 -– even though the company
reported just GBP2,004 profit on GBP15.7 million of turnover.
The FT notes in the previous year, the company reported a larger
profit of GBP697,000 on GBP12.3 million of turnover -- but this,
too, was dwarfed by directors’ remuneration of nearly GBP4.2
million.

As reported in the Troubled Company Reporter-Europe on June 10,
2009, Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers
LLP were appointed joint administrators of KIS on June 8, 2009.
The appointment was made based on an application to Court by the
Financial Services Authority (FSA) on insolvency grounds.  PwC
said Keydata AIM VCT plc, Keydata AIM VCT 2 plc, Keydata Income
VCT 1 plc and Keydata VCT plc 2 are separate legal entities and
not subject to the administration.

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


LLOYDS BANKING: Sheds 2,100 U.K. Jobs in Cost-Saving Drive
---------------------------------------------------------
Andrew MacAskill and Jon Menon at Bloomberg News report that
Lloyds Banking Group Plc plans to cut about 2,100 jobs
as part of its cost-saving drive, bringing the total number of
positions the bank has eliminated since April to more than 7,650.

According to Bloomberg News,Lloyds said in a statement Tuesday
about 1,400 jobs will be eliminated in group operations and about
700 positions in the commercial banking unit, all in the U.K.
Bloomberg News says of the losses, about 700 will go through
"natural attrition."

Bloomberg News discloses Lloyds Chief Executive Officer Eric
Daniels pledged to save more than GBP1.5 billion (US$2.5 billion)
by 2011 following the acquisition of HBOS Plc.  According to Jamie
Dunkley of Telegraph.co.uk, the merger left the new group with
140,000 staff and bad loans that resulted in a GBP10 billion loss
in 2008 and a GBP17 billion state bailout.

                 About Lloyds Banking Group PLC

Lloyds Banking Group PLC (LON:LLOY) --
http://www.lloydsbankinggroup.com/--  formerly Lloyds TSB Group
plc, is United Kingdom-based financial services company, whose
businesses provide a range of banking and financial services in
the United Kingdom and a limited number of locations overseas.
The operations of Lloyds TSB Group in the United Kingdom were
conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds
TSB Scotland plc and Cheltenham & Gloucester plc during the year
ended December 31, 2007.  Cheltenham & Gloucester plc (C&G) is the
Company's specialist mortgage arranger.  Following the transfer of
its mortgage lending and deposits to Lloyds TSB Bank, during 2007,
C&G arranges mortgages for Lloyds TSB Bank rather than for its own
account.  International business is conducted mainly in the United
States and continental Europe.  Lloyds TSB Group's services in
these countries are offered through branches of Lloyds TSB Bank.
In January 2009, the Company acquired HBOS plc.


LLOYDS BANKING: May Have to Sell Units to Win EU Approval
---------------------------------------------------------
Matthew Newman at Bloomberg News reports that EU Competition
Commissioner Neelie Kroes said Lloyds Banking Group Plc and Royal
Bank of Scotland Group Plc, rescued last year by the U.K.
government, may have to sell branches or units to win European
Union approval for their restructuring plans.

Bloomberg News relates Ms. Kroes said at a banking conference in
London Tuesday "The likelihood of significant divestments by RBS
and Lloyds is strong."

                      Restructuring

"Both RBS and Lloyds have undergone significant restructuring to
maintain their future viability," Bloomberg News quoted a
spokesman for the U.K. Treasury, as saying.  "Restructuring is
part of the state-aid approval process for all state aid
applications."

The U.K. owns a 70 percent of Edinburgh-based RBS and 43 percent
of Lloyds, Bloomberg News discloses.  According to Bloomberg News,
the British government hasn't yet detailed plans to insure
GBP585 billion of risky assets owned by the two banks.

Ms. Kroes, as cited by Bloomberg News, said restructuring plans
must follow rescue aid.

Bloomberg News recalls in May, Lloyds said that to take part in
the plan it may have to "undertake a restructuring which may be
materially adverse to the interests of the group."  The U.K.
government agreed to waive competition rules to enable Lloyds to
buy HBOS Plc, Britain's biggest mortgage lender, in January,
Bloomberg News recounts.

                About Lloyds Banking Group PLC

Lloyds Banking Group PLC (LON:LLOY) --
http://www.lloydsbankinggroup.com/--  formerly Lloyds TSB Group
plc, is United Kingdom-based financial services company, whose
businesses provide a range of banking and financial services in
the United Kingdom and a limited number of locations overseas.
The operations of Lloyds TSB Group in the United Kingdom were
conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds
TSB Scotland plc and Cheltenham & Gloucester plc during the year
ended December 31, 2007.  Cheltenham & Gloucester plc (C&G) is the
Company's specialist mortgage arranger.  Following the transfer of
its mortgage lending and deposits to Lloyds TSB Bank, during 2007,
C&G arranges mortgages for Lloyds TSB Bank rather than for its own
account.  International business is conducted mainly in the United
States and continental Europe.  Lloyds TSB Group's services in
these countries are offered through branches of Lloyds TSB Bank.
In January 2009, the Company acquired HBOS plc.


LLOYDS BANKING: Win Bischoff Set to Take Chairmanship Post
----------------------------------------------------------
Sir Win Bischoff is being lined up as the next chairman of Lloyds
Banking Group, Patrick Jenkins at The Financial Times reports,
citing people close to the process.

According to the FT, Mr. Bischof, former chairman of Citigroup,
has been asked by UK Financial Investments to take the Lloyds job
and steer it through the process of integrating HBOS, which it
rescued last autumn.

The FT recalls Sir Victor Blank, Lloyds' current chairman, was
ousted last month by UK Financial Investments, the body that
manages the government's bank stakes, although he would like to
stay on until next summer's annual meeting.  The government has a
43.5 per cent stake in Lloyds.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC (LON:LLOY) --
http://www.lloydsbankinggroup.com/--  formerly Lloyds TSB Group
plc, is United Kingdom-based financial services company, whose
businesses provide a range of banking and financial services in
the United Kingdom and a limited number of locations overseas.
The operations of Lloyds TSB Group in the United Kingdom were
conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds
TSB Scotland plc and Cheltenham & Gloucester plc during the year
ended December 31, 2007.  Cheltenham & Gloucester plc (C&G) is the
Company's specialist mortgage arranger.  Following the transfer of
its mortgage lending and deposits to Lloyds TSB Bank, during 2007,
C&G arranges mortgages for Lloyds TSB Bank rather than for its own
account.  International business is conducted mainly in the United
States and continental Europe.  Lloyds TSB Group's services in
these countries are offered through branches of Lloyds TSB Bank.
In January 2009, the Company acquired HBOS plc.


MONIER GROUP: Rescue Package Set to Be Signed Today
---------------------------------------------------
Marietta Cauchi at Dow Jones Newswires reports that a rescue
package for Monier Group is expected to be signed today, July 2,
despite last-minute attempts by junior lenders to derail the
process.

Dow Jones relates a person familiar with the situation said some
78% of the company's senior lenders have agreed to waive Monier's
interest payment due Tuesday and are now just "finalizing
documents".  According to Dow Jones, the company has already
backed the lender-led proposal and is expected to approve the
deal, which involves a new cash injection of EUR150 million
through a committed and underwritten senior secured credit
facility and an additional EUR50 million available on an
uncommitted basis.

Dow Jones says the restructuring would halve Monier's debt to
around EUR1 billion, comprising EUR700 million senior debt and a
EUR300 million PIK, or payment in kind.

Dow Jones discloses the deal will put senior lenders, which
include Apollo Management, TowerBrook Capital and York Capital, in
full control of the company via a debt-for-equity swap, but will
marginalize junior debt holders.  Dow Jones relates junior debt
holders on Friday launched a last-minute attempt to derail the
rescue plan.  Dow Jones notes according to press reports, the
junior debt holders sent a letter to Monier's lending syndicate
saying the senior lenders' proposal had "severe flaws," in
particular the level of debt that will remain on Monier's balance
sheet after the restructuring.

Monier Group -- http://www.monier.co.uk/-- supplies pitched-
roofing products, roofing components and chimney systems.  It has
more than 200 production sites and activities in 46 countries,
including the United Kingdom, Germany, Poland, among others.  In
2006, Monier employed more than 12,000 people, generating sales of
over EUR1.6 billion.


NATIONAL EXPRESS: CEO Richard Bowker Steps Down
-----------------------------------------------
Gill Plimmer at The Financial Times reports that Richard Bowker,
chief executive of National Express Group plc, quit his post hours
before it was due to give an update on the progress of the
company's East Coast rail franchise.

The FT relates National Express said on Tuesday night that
Mr. Bowker, who would leave at the end of August, would be
temporarily replaced by John Devaney, the group's newly appointed
chairman.

The FT says the East Coast rail franchise has come under pressure
from falling passenger revenues.

                   East Coast Rail Franchise

As reported in the Troubled Company Reporter-Europe on June 30,
2009, the FT said the Department for Transport refused to
renegotiate the terms of the company's East Coast rail franchise
between London and Edinburgh, casting doubt on its future.  The
company is contracted to pay the government GBP1.4 billion to run
the East Coast rail franchise until 2015, with annual installments
rising from GBP85 million in  2008 to GBP138 million this year,
the FT disclosed.  The recession -- and the cutback on Britons'
travel -- has left the company struggling to make money from the
route, according to Dominic O'Connell of The Times.

                           Takeover

In the same TCR-Europe report the FT said National Express
rejected an unsolicited takeover bid from its larger rival
FirstGroup.  The FT disclosed news of the board's decision comes a
week after the company agreed a deal with bankers to ease
restrictions on its GBP1.2 billion debt.  According to the FT,
analysts said the approach from FirstGroup suggested an agreement
with the Dft was imminent.

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


ROYAL BANK: May Have to Sell Units to Win EU Approval
-----------------------------------------------------
Matthew Newman at Bloomberg News reports that EU Competition
Commissioner Neelie Kroes said Royal Bank of Scotland Group Plc
and Lloyds Banking Group Plc, rescued last year by the U.K.
government, may have to sell branches or units to win European
Union approval for their restructuring plans.

Bloomberg News relates Ms. Kroes said at a banking conference in
London Tuesday "The likelihood of significant divestments by RBS
and Lloyds is strong."

                      Restructuring

"Both RBS and Lloyds have undergone significant restructuring to
maintain their future viability," Bloomberg News quoted a
spokesman for the U.K. Treasury, as saying.  "Restructuring is
part of the state-aid approval process for all state aid
applications."

The U.K. owns a 70 percent of Edinburgh-based RBS and 43 percent
of Lloyds, Bloomberg News discloses.  According to Bloomberg News,
the British government hasn't yet detailed plans to insure
GBP585 billion of risky assets owned by the two banks.

Ms. Kroes, as cited by Bloomberg News, said restructuring plans
must follow rescue aid.

                           About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.


ROYAL BANK: ANZ and Standard Chartered to Acquire Asian Assets
--------------------------------------------------------------
Sundeep Tucker at The Financial Times reports that Standard
Chartered and ANZ have both entered into exclusive talks to
acquire separate parts of the Asian retail and commercial assets
put up for sale by Royal Bank of Scotland Group plc.

The FT says people familiar with the matter said both bidders were
last week granted preferred bidder status for different RBS
assets, in effect giving them up to 45 days to seal a deal.
According to the FT, StanChart is now in pole position to snap up
RBS units being sold in China, India and Malaysia, while ANZ is
closing in on acquiring assets in Hong Kong, Taiwan, Singapore,
Vietnam and Indonesia.  The assets are expected to fetch about
US$1 billion-US$1.5 billion (GBP607 million-GBP910 million) for
the UK lender, the FT states.

The FT relates people familiar with the matter said RBS was
scheduled to announce interim results on August 7 and that it
would prefer to unveil the sale on or before that date.

The FT recalls RBS put the assets up for sale this year, after
reporting the biggest loss in British corporate history.  The
bank, which is 70 per cent owned by the UK government, made a loss
of GBP24.1 billion last year and is shrinking its GBP2 trillion
balance sheet, the FT discloses.

                          About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.


YELL GROUP: To Enter Into Debt Restructuring Talks with Lenders
---------------------------------------------------------------
Salamander Davoudi and Maija Palmer at The Financial Times report
that Yell Group plc is planning to initiate talks with lenders
about restructuring its GBP4.3 billion debt load as it expects
earnings to fall by almost a third in the second quarter.

According to the FT, the company, which is struggling as the
advertising market worsens because of the economic downturn, is
hoping to extend the maturity and terms of its debt agreements, as
declining sales have put it in danger of breaching its covenants.
The FT discloses in the second quarter to the end of September,
historically one of the weakest trading periods for Yell, revenues
are expected to be down 17 per cent while ebitda is expected to
fall 30 per cent.  Yell, as cited by the FT, said the decline in
performance would leave it with 7 per cent headroom on staying
within the terms of its lending agreements by the end of
September.

Yell, the FT notes, must refinance GBP3 billion between now and
2011 but its debt load dwarfs its market capitalization of GBP230
million, making it hard for the company to raise funds through a
rights issue.  The company, the FT says, has not yet begun talking
to lenders, which include HSBC, and the process is expected to
take until the autumn.

Headquartered in Reading, England, Yell Group plc --
http://www.yellgroup.com/-- is an international directories
business operating in the classified advertising market through
printed, online, and phone media in the U.K. and the US.  Yell
also owns 100% of TPI (renamed "Yell Publicidad"), the largest
publisher of yellow and white pages in Spain, with operations in
certain countries in Latin America.  Yell's revenue for the twelve
months ended March 31, 2008 was GBP2,219 million and its
Adjusted EBITDA was GBP738.9 million.

                          *     *     *

Yell Group plc continues to carry Moody's Investors Service's Ba3
Corporate Family Rating and B1 Probability of Default Rating.  The
ratings were placed on review for possible downgrade by Moody's in
February 2009.


* S&P Takes Rating Actions on 21 European Synthetic CDO Tranches
----------------------------------------------------------------
Standard & Poor's Ratings Services took credit rating actions on
21 European synthetic collateralized debt obligation tranches
following recent rating changes on the underlying collateral or
obligor in those deals.

Specifically, S&P:

  -- Removed from CreditWatch negative the rating on one tranche;

  -- Placed on CreditWatch negative the ratings on seven tranches;

  -- Lowered the ratings on five tranches;

  -- Lowered and placed on CreditWatch negative the ratings on two
     tranches;

  -- Lowered and kept on CreditWatch negative the rating on one
     tranche; and

  -- Lowered and removed from CreditWatch negative the rating on
     five tranches.

                           Ratings List
            Rating Removed From Creditwatch Negative

                    Aquarius + Investments PLC
        EUR100 Million Secured-Senior Floating-Rate Series 1

                       Rating
                       ------
               To                    From
               --                    ----
               AA-                   AA-/Watch Neg

             Ratings Placed on Creditwatch Negative

                         Dali Capital PLC
         RUR7 Billion Secured Fixed-Rate Notes Series 23

                                       Rating
                                       ------
          Series             To                    From
          ------             --                    ----
          Tranche 1          BB+/Watch Neg         BB+
          Tranche 2          BB+/Watch Neg         BB+

                      Edam Funding One Ltd.
  EUR20 Million Limited-Recourse Floating-Rate Credit-Linked Notes
                          Series 2006-1

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

                       Edam Funding One Ltd.
  EUR25 Million Limited Recourse Floating-Rate Credit-Linked Notes
                          Series 2006-02

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

                      Edam Funding One Ltd.
  EUR20 Million Limited Recourse Floating-Rate Credit-Linked Notes
                          Series 2006-03

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

                            SOMF Ltd.
             GBP200 Million Secured Floating-Rate Notes

                                       Rating
                                       ------
          Series             To                    From
          ------             --                    ----
          A1                 AAA/Watch Neg         AAA
          A2                 AAA/Watch Neg         AAA

                         Ratings Lowered

                        Argon Capital PLC
   EUR17.961 Million Limited-Recourse Secured Variable-Rate Notes
                            Series 40

                           Rating
                           ------
                    To                    From
                    --                    ----
                    D                       CC

                       Helium Capital Ltd.
     EUR25 Million Limited-Recourse Secured Floating-Rate Notes
                            Series 75

                            Rating
                            ------
                    To                    From
                    --                    ----
                    BB+                     AAA

                        Helium Capital Ltd.
    EUR25 Million Limited-Recourse Secured Floating-Rate Notes
                             Series 76

                           Rating
                           ------
                    To                    From
                    --                    ----
                    BB+                     AAA

                    Protected Credit Notes Ltd.
US$50 Million Coupon Paying Delacroix Managed Credit Fund Limited
                           Fund-Linked
                       SPI Notes Series 3

                             Rating
                             ------
                     To                    From
                     --                    ----
                     BBBp                  BBB+p

                         Signum Verde Ltd.
  CLP4.95 Billion Fixed-Rate Secured Inflation-Linked And Credit-
  Linked To Petroleo Brasileiro S.A. and Petrobras International
                  Finance Notes Series 2007-04

                            Rating
                            ------
                   To                    From
                   --                    ----
                   BBB-                  BBB

        Ratings Lowered and Placed On Creditwatch Negative

                       Edam Funding One Ltd.
  EUR15 Million Limited-Recourse Floating-Rate Credit-Linked Notes
                           series 05-03

                           Rating
                           ------
                    To                    From
                    --                    ----
                   CCC/Watch Neg          B

                      Edam Funding One Ltd.
  EUR20 Million Limited-Recourse Floating-Rate Credit-Linked Notes
                         Series 2007-1

                           Rating
                           ------
                     To                    From
                     --                    ----
                     CCC/Watch Neg         B

         Rating Lowered and Kept On Creditwatch Negative

                     Prelude Europe CDO Ltd.
   A$40 Million Credit-Linked Notes Series 2005-4 (Credit Sail)

                       Rating
                       ------
               To                    From
               --                    ----
               Bp/Watch Neg             BBp/Watch Neg

      Ratings Lowered and Removed From Creditwatch Negative

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

                                 Rating
                                 ------
     Series             To                    From
     ------             --                    ----
     Series 4           BBB                    BBB+/Watch Neg

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

                                  Rating
                                  ------
     Series             To                    From
     ------             --                    ----
     Series 5           BBB                    BBB+/Watch Neg

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

                                Rating
                                ------
      Series             To                    From
      ------             --                    ----
      Series 6           BBB                   BBB+/Watch Neg

                            Aria CDO I
        EUR31.5 million, CHF58.4 million, GBP0.4 million and
         US$17.4 million floating-rate secured notes
            (Issued by Aria CDO I (Cayman Islands) Ltd.)

                                  Rating
                                  ------
     Series             To                    From
     ------             --                    ----
     Series 7           BBB                   BBB+/Watch Neg

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

                                    Rating
                                    ------
       Series             To                    From
       ------             --                    ----
       Series 8           BB-                   BB/Watch Neg


* BERNARD MADOFF: Sentenced to 150 Years in Prison
--------------------------------------------------
Judge Denny Chin of the U.S. District Court for the Southern
District of New York has sentenced Bernard Madoff to 150 years
of life imprisonment for defrauding investors of at least
$13 billion.  Judge Chin rejected a Madoff lawyer's claim that
victims of his Ponzi scheme wanted mob justice.  "This was not
merely a bloodless financial crime that occurred on paper, but one
that takes a staggering toll," the judge said.  The courtroom,
which had an audience of 250, erupted into applause following the
sentence.  Mr. Madoff, already 71, pleaded guilty in March for
defrauding investors.

Ira Sorkin, defense attorney, says that the US$13.3 billion in
losses by clients alleged by the U.S. government was overstated.
He said that the amount should be offset by US$1.3 billion held by
the trustee for Bernard L. Madoff Investment Securities LLC; by
US$1.3 billion already recovered by the trustee; and by letters
sent by the trustee seeking to "claw back" US$735 million from
Madoff investors.

           About Bernard L. Madoff Investment Securities

Bernard L. Madoff Investment Securities LLC was a market maker in
U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq
stocks.  The firm moved large blocks of stock for institutional
clients by splitting up orders or arranging off-exchange
transactions between parties.  It also performed clearing and
settlement services.  Clients included brokerages, banks, and
other financial institutions.  In addition, Madoff Securities
managed assets for high-net-worth individuals, hedge funds, and
other institutional investors.

The firm is being liquidated in the aftermath of a fraud scandal
involving founder Bernard L. Madoff.

As reported by the Troubled Company Reporter on December 15, 2008,
the Securities and Exchange Commission charged Mr. Madoff and his
investment firm with securities fraud for a multi-billion dollar
Ponzi scheme that he perpetrated on advisory clients of his firm.
The estimated losses from Madoff's fraud were allegedly at least
US$50 billion.

Also on December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970. Irving H. Picard, Esq., was appointed as trustee for
the liquidation of BLMIS, and Baker & Hostetler LLP was appointed
as counsel.

Mr. Madoff, if found guilty of all counts, would be imprisoned for
150 years, but legal experts expect the actual sentence to be much
lower and would still be an effective life sentence for the 70-
year-old defendant, WSJ notes.  Mr. Madoff, WSJ relates, would
also face millions of dollars in possible criminal fines.  The
report says that Mr. Madoff has been free on bail since his arrest
on December 11, 2008.  There was no plea agreement with Mr. Madoff
in which leniency in sentencing might be recommended, the report
states, citing prosecutors.


* BERNARD MADOFF: SIPC, Trustee Unveil US$231MM Funds for Clients
-----------------------------------------------------------------
A total of US$231 million in Securities Investor Protection
Corporation funds has been committed in the determination of 543
claims submitted by Bernard L. Madoff Investment Securities LLC
investors, according to Irving H. Picard, the court-appointed
trustee for the liquidation of BLMIS under the Securities Investor
Protection Act, and SIPC President Stephen Harbeck.

As such, the amount of SIPC funds committed in the Madoff
liquidation exceeds the total amount paid in the previous 11
largest SIPA liquidations.  The amount reflects major progress
since May 14, 2009, when Messrs. Picard and Harbeck announced a
total of US$61.4 million in SIPC funds committed in determination
letters sent to 125 BLMIS claimants.

These 543 determined customer claims have been allowed in the
total amount of US$2.972 billion, including US$2.741 billion in
allowed customer claims that exceed the statutory limit of SIPA
protection.  Under SIPA, customers with allowed claims share on a
pro-rata basis in customer property recovered by the Trustee.
SIPC-funded protection is only used to supplement the distribution
up to the statutory limit of US$500,000 per customer on allowed
claims.  For that purpose, SIPC maintains a special reserve fund
authorized by Congress to help investors at failed brokerage
firms.

The only source of payment for the portion of these and other
allowed claims in excess of the US$500,000 from SIPC is the
recovery of BLMIS property by the Trustee through the various
actions he has and will undertake, including avoidance actions and
other recoveries of BLMIS property.

It is the Trustee's intent, pursuant to SIPA, to submit a motion
at an appropriate time in the future for an order of the
Bankruptcy Court to allocate to the fund of customer property the
funds and other property he has recovered and will recover and to
distribute customer property pro rata among BLMIS customers with
allowed claims.

Messrs. Picard and Harbeck once again sought to dispel incorrect
information surrounding the BLMIS liquidation proceeding: They
stressed that trustee expenses are not paid out of customer
property.  Mr. Harbeck said: "Contrary to what has been suggested
by some entirely ill-informed parties, all of the expenses of this
work have been paid for by SIPC. Customer funds are never used to
pay for administrative expenses in a liquidation proceeding."

                       Last Minute Claims

Claims must be received on or before Thursday, July 2, 2009 by the
Trustee's claims agent, AlixPartners LLP.

To assure timely receipt, last-minute filers can deliver their
claims by hand to AlixPartners LLP c/o the Trustee's law firm,
Baker & Hostetler LLP, 45 Rockefeller Plaza, New York, NY 10111
until midnight, Thursday, July 2, 2009.

                            About SIPC

The Securities Investor Protection Corporation is the U.S.
investor's first line of defense in the event a brokerage firm
fails, owing customer cash and securities that are missing from
customer accounts. SIPC either acts as trustee or works with an
independent court-appointed trustee in a brokerage insolvency case
to recover funds.

The statute that created SIPC provides that customers of a failed
brokerage firm receive all non-negotiable securities - such as
stocks or bonds -- that are already registered in their names or
in the process of being registered. At the same time, funds from
the SIPC reserve are available to satisfy the remaining claims of
each customer up to a maximum of US$500,000. This figure includes
a maximum of US$100,000 on claims for cash. From the time Congress
created it in 1970 through December 2008, SIPC has advanced US$520
million in order to make possible the recovery of US$160 billion
in assets for an estimated 761,000 investors.

           About Bernard L. Madoff Investment Securities

Bernard L. Madoff Investment Securities LLC was a market maker in
U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq
stocks.  The firm moved large blocks of stock for institutional
clients by splitting up orders or arranging off-exchange
transactions between parties.  It also performed clearing and
settlement services.  Clients included brokerages, banks, and
other financial institutions.  In addition, Madoff Securities
managed assets for high-net-worth individuals, hedge funds, and
other institutional investors.

The firm is being liquidated in the aftermath of a fraud scandal
involving founder Bernard L. Madoff.

As reported by the Troubled Company Reporter on December 15, 2008,
the Securities and Exchange Commission charged Mr. Madoff and his
investment firm with securities fraud for a multi-billion dollar
Ponzi scheme that he perpetrated on advisory clients of his firm.
The estimated losses from Mr. Madoff's fraud were allegedly at
least US$50 billion.

Also on December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970. Irving H. Picard, Esq., was appointed as trustee for
the liquidation of BLMIS, and Baker & Hostetler LLP was appointed
as counsel.

As reported by the TCR, Judge Denny Chin of the U.S. District
Court for the Southern District of New York on June 29, 2009,
sentenced Mr. Madoff to 150 years of life imprisonment for
defrauding investors.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 10, 2009
THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS
    Retail Bankruptcy: What You Need To Know
       Cuba Libre, Atlantic City, N.J.
          Contact: (732) 694 1800 or
                   http://www.icsc.org/

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

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

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

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

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

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

Oct. 7-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

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

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

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

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

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

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

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

Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

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

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

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

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

                            *********

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

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

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

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

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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, 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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