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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 9, 2009, Vol. 10, No. 134

                            Headlines

A U S T R I A

AUSTRIAN AIRLINES: Lufthansa Must Offer Antitrust Concessions
B.B. & M.M.: Claims Filing Deadline is July 29
BRUNNER EURO: Creditors Must File Claims by July 13
CNC-METALLPRODUKTION GMBH: Claims Filing Deadline is July 29
FETTINGER HANNES: Creditors Must File Claims by July 20

KOBLER HORST: Creditors Must File Claims by July 20


B E L A R U S

BELAGROPROMBANK: Fitch Affirms Individual Rating at 'D/E'
BELARUSBANK: Fitch Affirms Individual Rating at 'D/E'
BELINVESTBANK: Fitch Affirms Individual Rating at 'D/E'
BPS BANK: Fitch Affirms Individual Rating at 'D/E'


D E N M A R K

* DENMARK: June 2009 Corporate Bankruptcies Near Record High


F R A N C E

PEUGEOT CITROEN: Sales Down 14% in First Half of 2009


G E R M A N Y

COMMERZBANK AG: Bafin Rule Change to Ease Pressure on Capital
DEPFA DEUTSCHE: Moody's Withdraws 'E+' Bank Fin'l Strength Rating
GENERAL MOTORS: Says Beijing Auto a "Formidable Bidder" for Opel
INFINEON AG: Sells Wireline Unit to Golden Gate for EUR250 Million

* German Corporate Insolvencies Up 7.1% in April, Destatis Says


I R E L A N D

BACCHUS 2006-1: Moody's Junks Rating on Class D Notes From 'B2'
IRISH LIFE: Moody's Cuts Undated Subordinated Debt to Ba1


I T A L Y

FIAT SPA: Inks Joint Venture Deal with China's GAC Group
SAFILO SPA: Moody's Cuts Probability of Default Rating to 'Ca/LD'


K A Z A K H S T A N

AKTAU COSMETIC: Creditors Must File Claims by July 17
ALEM JSC: Creditors Must File Claims by July 17
ALLIANCE BANK: Inks MoU with Creditors on Debt Restructuring
ASPARA OJSC: Creditors Must File Claims by July 17
KAZMUNAIGAS JSC: S&P Affirms Corporate Credit Rating at 'BB+'

KAZTEMIRTRANS: Moody's Confirms 'Ba1' Rating; Outlook Negative
NC JSC: S&P Lowers Long-Term Corporate Credit Rating to 'BB+'
SPETS COMPLECT: Creditors Must File Claims by July 17
TARKETT CJSC: Creditors Must File Claims by July 17


K Y R G Y Z S T A N

ELECTRO TECHNIK: Court Names A. Dolbaev as Insolvency Manager


R U S S I A

AK OJSC: S&P Affirms 'BB+' Long-Term Corporate Credit Rating
LES-PROM LLC: Creditors Must File Claims by August 19
MACHINE-BUILDING LLC: Creditors Must File Claims by July 19
METALLURG-MASH CJSC: Creditors Must File Claims by July 19
NOVATEK OAO: S&P Changes Outlook to Positive; Affirms 'BB+' Rating

SOUVENIR OJSC: Creditors Must File Claims by July 19
URENSKIY PREPRODUCTION: Creditors Must File Claims by August 19
VIMPELCOM-INVEST LLC: S&P Assigns 'BB+' Senior Unsecured Rating
VOLGA-DON LLC: Creditors Must File Claims by July 19


S L O V E N I A

ISTRABENZ D.D.: Koper Court Cancels Bankruptcy Proceedings


S W I T Z E R L A N D

BILLBOX AG: Claims Filing Deadline is July 13
DORF-METZG GMBH: Creditors Must File Claims by July 13
LABRUSA AG: Claims Filing Deadline is July 13
RESTAURANT WOKIN: Claims Filing Deadline is July 13
SECUREFW.NET GMBH: Claims Filing Deadline is July 13

VAJABAU GMBH: Creditors Must File Claims by July 13


T U R K E Y

* TURKEY: Fitch Affirms Municipality of Bursa's Ratings at 'B+'
* TURKEY: Fitch Affirms Municipality of Izmir's Ratings at 'BB-'


U K R A I N E

SIMFERON LLC: Creditors Must File Claims by July 15
VENETEKS LLC: Creditors Must File Claims by July 15
TECHNO-SYSTEMS LLC: Creditors Must File Claims by July 15


U N I T E D   K I N G D O M

ASHFORD CONSTRUCTION: In Administration; 48 Jobs Affected
BNB RECRUITING: Former Workers Mull Legal Action Over Pay Issues
CENTREREED LTD: Goes Into Administration
CLARIS LIMITED: Moody's Cuts Rating on EUR5 Mil. CDS to 'Ba2'
COFEEE REPUBLIC: In Administration; KPMG Appointed

DUFFIELDS BUSINESS: In Administration; 50 Jobs Affected
FOUR SEASONS: Sale Likely After Creditors Turn Down Rescue Deal
LIMCOMBE HALL: Goes Into Administration
NORTHERN ROCK: Granite to Pay Bond Debt; Gov't Faces Bigger Losses
PRINCIPALITY BUILDING: Moody's Confirms Rating on Mortgage Bonds

RESLOC UK: S&P Affirms Ratings on Two Classes of Notes at 'CCC'

* Upcoming Meetings, Conferences and Seminars


                         *********


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


AUSTRIAN AIRLINES: Lufthansa Must Offer Antitrust Concessions
-------------------------------------------------------------
Matthew Newman at Bloomberg News reports that European Commission
spokesman Jonathan Todd said Deutsche Lufthansa AG must offer
antitrust concessions so that European regulators can rule on its
planned takeover of Austrian Airlines AG by the end of the month.

Bloomberg relates Stefanie Stotz, a Frankfurt-based spokeswoman
for Lufthansa, said the airline is in talks with the commission.
Bloomberg recalls Lufthansa said in February that it has the right
to withdraw if the EU doesn't approve the sale by the end of July.

                              Probe

On July 8, 2009, the Troubled Company Reporter-Europe, citing AFP,
reported the European Commission said it would open an in-depth
investigation into the Lufthansa's takeover of the airline because
of fears over anti-trust issues.  Competition Commissioner Neelie
Kroes, as cited by AFP, said the deal could lead to higher ticket
prices for passengers and fewer flights on some routes.

As reported in the Troubled Company Reporter-Europe on Feb. 9,
2009, Reuters said Austrian state holding company and key
Austrian Airlines shareholder OeIAG warned the Austrian flag
carrier could go insolvent if a planned takeover by Germany's
Lufthansa falls through.

Austrian Airlines AG -- http://www.austrianairlines.co.at/deu/--
is an Austria-based holding company of Austrian Airlines Group,
operating in the air transportation sector.  The Group is
comprised of Austrian Airlines, an operator of scheduled passenger
flights; Lauda Air, which is engaged in the charter flight sector,
and Tyrolean Airways, which operates as a short-haul carrier under
the consumer brand Austrian arrows.  The Company divides its
activities into three segments: scheduled services, charter and
complementary services.  The scheduled flights of the Group
operate under the brands of Austrian and Austrian arrows, while
charter flights are handled under the Lauda Air brand.  The
Company has six affiliated companies and six wholly owned
subsidiaries, including Lauda Air Luftfahrt GmbH, Austrian
Airlines Lease & Finance Company Ltd., AUA Beteiligungen GmbH,
Austrian Airlines Technik Marketing GmbH, Austrian Airlines
Technik Bratislava sro and Tyrolean Airways TirolerLuftfahrt GmbH.


B.B. & M.M.: Claims Filing Deadline is July 29
----------------------------------------------
Creditors of B.B. & M.M. Handel und Management GmbH have until
July 29, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 12, 2009 at 9:30 a.m.

For further information, contact the company's administrator:

         Mag. Dr. Arno Maschke
         Mariahilfer Strasse 50
         1070 Wien
         Austria
         Tel: 523 62 00
         Fax: 526 72 74
         E-mail: maschke@sup.at


BRUNNER EURO: Creditors Must File Claims by July 13
---------------------------------------------------
Creditors of Brunner Euro Express GmbH 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 noon at:

         Land Court of Klagenfurt
         Meeting Room
         Second Floor
         Klagenfurt
         Austria

For further information, contact the company's administrator:

         Mag. Herbert Steinwandter
         Peraustrasse 9
         9500 Villach
         Austria
         Tel: 04242/28 122
         Fax: 04242/28122-22
         E-mail: villach@reifundpartner.at


CNC-METALLPRODUKTION GMBH: Claims Filing Deadline is July 29
------------------------------------------------------------
Creditors of CNC-Metallproduktion GmbH have until July 29, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 12, 2009 at 10:10 a.m.

For further information, contact the company's administrator:

         Dr. Leopold Riess
         Zeltgasse 3/12
         1080 Wien
         Austria
         Tel: 402 57 01
         Fax: DW 21
         E-mail: law@riess.co.at


FETTINGER HANNES: Creditors Must File Claims by July 20
-------------------------------------------------------
Creditors of Fettinger Hannes have until July 20, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 30, 2009 at 11:40 a.m.

For further information, contact the company's administrator:

         Dr. Peter Heigenhauser
         Wiesinger Strasse 3
         4820 Bad Ischl
         Austria
         Tel: 06132/25581
         Fax: 06132/25581-5
         E-mail: dr.peter.heigenhauser@aon.at


KOBLER HORST: Creditors Must File Claims by July 20
---------------------------------------------------
Kobler Horst will convene a meeting of its creditors at 11.00 a.m.
on July 30, 2009, at Land Court of Wels, hall 101.

Creditors of Kobler Horst have until July 20, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for July 30, 2009 at 11:00 a.m. at:

         Land Court of Wels
         Hall 101
         Wels
         Austria

For further information, contact the company's administrator:

         Dr. Roland Heitzinger
         Ringstrasse 4/Plobergerstrasse 7
         4600 Wels
         Austria
         Tel: 07242/42605-0
         Fax: 07242/42605-20
         E-mail: heitzinger@ra-stossier.at


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B E L A R U S
=============


BELAGROPROMBANK: Fitch Affirms Individual Rating at 'D/E'
---------------------------------------------------------
Fitch Ratings said that the revision of the Outlook on Belarus-
based Belagroprombank to Negative from Stable, announced by the
agency earlier, formed part of a more general review of Belarusian
state-owned banks.  The rating action took into account the
heightened risks stemming form the weaker outlook for Belarusian
sovereign finances and the Belarusian economy.

BAPB's Long- and Short-term IDRs are underpinned by potential
support from the Belarusian authorities, given its state
ownership, its policy role in supporting the agricultural sector
and significant systemic importance.  The Negative Outlook on
BAPB, as for three other state-owned banks, reflects the weakening
ability of the Belarusian authorities to support the banking
system, in case of need.

BAPB's Individual Rating of 'D/E' reflects the risks associated
with the still strong growth of the loan portfolio in a
challenging operating environment, government influence on BAPB's
operations, the high single industry loan concentration and a
relatively weak liquidity profile.  It also considers BAPB's
capital ratios, which are materially higher than those of its
peers, low individual borrower concentrations and its modest level
of foreign currency (FX) lending.  Fitch notes the potential for a
marked deterioration in BAPB's stand-alone financial profile in
the event of a sharp economic downturn and/or reduced state
support for the agricultural sector.

Exposure to agriculture amounted to 55% of BAPB's total loans at
end-May 2009, with related industries accounting for another
quarter of the loan book.  Reported asset quality benefits from
government support to the agricultural sector -- loans overdue for
30 days and above amounted to only 0.7% of gross loans at end-May
2009 and were 3.7x covered by regulatory impairment reserves.  FX
lending was only 16% of gross loans at end-May 2009, while
exposure to the largest 20 borrowers was also reasonable (by CIS
standards) at 21% of total loans and 74% of equity at end-May
2009.  However, fast loan book growth (17% in 5M09; 87% in 2008)
in a weakening economic environment may expose BAPB to sharp asset
quality deterioration, in particular should the government scale
back its support to the agricultural sector.

Tier 1 and total regulatory capital ratios (23.4% and 27.2%,
respectively at end-May 2009) provide for significant loss
absorption capacity which is, however, being consumed by fast
growth.  Fitch estimates that at end-May 2009, BAPB could have
raised its level of regulatory reserves to an estimated one
quarter of the loan book (from the actual level of 2.5% at end-May
2009) before its capital ratio would have fallen to the regulatory
minimum, absent any further Belarussian Ruble (BYR) devaluation.
Fitch also notes that further BYR devaluation would not have the
same effect on BAPB's loss absorption capacity as for other state-
owned banks because of the lower share of FX loans in BAPB's
portfolio.

BAPB's liquidity profile continues to suffer from maturity
mismatches of assets and liabilities, but has been consistently
supported by the Belarusian authorities, with the share of
National Bank of the Republic of Belarus and central government
funding standing at 55% of liabilities at end-Q109.

BAPB is 99.7% owned by the state and focuses on lending to the
agricultural sector under government programs.  It is the second-
largest bank in Belarus with a market share in total banking
system assets of about 24% at end-May 2009.

The rating actions announced by Fitch earlier were:

  -- Long-term IDR: affirmed at 'B-'; Outlook revised to Negative
     from Stable

  -- Short-term IDR: affirmed at 'B'

  -- Support Rating: affirmed at '5'

  -- Individual Rating: affirmed at 'D/E'

  -- Support Rating Floor: affirmed at 'B-'


BELARUSBANK: Fitch Affirms Individual Rating at 'D/E'
----------------------------------------------------
Fitch Ratings' Outlook revision on Belarus-based Belarusbank's
B- Long-term Issue Default Rating to Negative from Stable
announced earlier was part of a more general review of Belarusian
state banks.  This took into account the heightened risks stemming
from the weaker outlook for Belarusian sovereign finances and the
Belarusian economy.

BBK's Long-term and Short-term IDRs currently reflect its stand-
alone financial position, but are also underpinned by potential
support from the Belarusian authorities, given its state ownership
and very high importance to the banking system.  The Negative
Outlook on BBK, as for three other state-owned banks, reflects the
weakening ability of the Belarusian authorities to support the
banking system, in case of need.  It also takes into account the
potential for a marked deterioration in the bank's stand-alone
financial profile in case of a sharp economic downturn, reduced
state support for the corporate sector or a further marked
depreciation of the Belarusian Ruble (BYR).

The share of reported non-performing loans (NPLs, defined as loans
90 days overdue) at BBK has remained low (0.8% at end-H109), and
restructured loans were also moderate (1.3% of the loan book at
the same date).  However, continued rapid loan book growth (22%
for 5M09; 44% in 2008) in a weakening environment may expose BBK
to additional credit risks.  In addition, the provisioning level
(1.2% of gross loans by local standards at end-H109) is viewed by
Fitch as low, and future NPL growth will likely require additional
capital injections in order to strengthen loss absorption
capacity.  The bank's Tier 1 and total regulatory capital ratios
stood at 10.9% and 13.9%, respectively, at end-May 2009.
According to Fitch's estimates, at end-May 2009 the bank could
raise the level of regulatory reserves to an estimated 7% (from
the current 1.2%) of the loan book before its capital ratio would
have fallen to the regulatory minimum, absent any further BYR
devaluation.

Fitch also notes that BBK's liquidity deteriorated in recent
months: the bank has been incompliant with regulatory liquidity
requirements since the beginning of 2009 due to the shortened
maturities of its funding base and the active expansion of lending
operations in recent months.  However, liquidity risk is mitigated
by the bank's broad deposit base and the relative stability of
customer accounts to date.

BBK is the largest bank in Belarus by asset size, with market
share in system assets and retail deposits of 39% and 59%,
respectively, at end-Q109.  BBK is 99.8% owned by the state.
Rating actions:

  -- Long-term IDR: affirmed at 'B-'; Outlook changed to Negative
     from Stable

  -- Short-term IDR: affirmed at 'B'

  -- Support rating: affirmed at '5'

  -- Individual rating: affirmed at 'D/E'

  -- Support Rating Floor: affirmed at 'B-'


BELINVESTBANK: Fitch Affirms Individual Rating at 'D/E'
-------------------------------------------------------
Fitch Ratings said its Outlook revision of Belarus-based
Belinvestbank's (BIB) B- Long-term Issue Default Rating to
Negative from Stable formed part of a more general review of
Belarusian state banks.  This review took into account the
heightened risks stemming form the weaker outlook for Belarusian
sovereign finances and the Belarusian economy.

BIB's Long-term and Short-term IDRs are underpinned by potential
support from the Belarusian authorities, given its state
ownership, its policy role in supporting the manufacturing sector
and significant systemic importance.  The Negative Outlook on BIB,
as for three other state-owned banks, reflects the weakening
ability of the Belarusian authorities to support the banking
system, in case of need.

BIB's Individual Rating of 'D/E' reflects the risks arising from
the bank's considerable share of foreign currency (FX) loans and
relatively high borrower concentrations, as well as the bank's
moderate loss absorption capacity.  However, it also considers the
currently reasonable liquidity position.  Fitch notes the
potential for a marked deterioration in the BIB's stand-alone
financial profile in case of a sharp economic downturn, reduced
state support for the manufacturing sector and/or a further marked
depreciation of the Belarusian Ruble (BYR).

Tier 1 and total regulatory capital ratios were 11.3% and 15.6%,
respectively, at end-May 2009.  Fitch's estimates that at end-May
2009 the bank could have raised the ratio of impairment
reserves/loans to 12% (from the current 1.8%), before capital
ratios would have fallen to the regulatory minimum, absent any
further BYR devaluation.  Fitch notes that BIB's loss absorption
capacity would be further reduced in case of significant BYR
devaluation given the bank's high share of FX loans (38% at end-
May 2009).

Reported non-performing loans (NPLs -loans overdue by more than 90
days) made up a still-low 0.5% of the loan book at end-May 2009
(0.3% at end-2008).  Although NPLs are fully covered by reserves,
the considerable share of FX loans, significant borrower
concentrations (the largest 20 borrowers accounted for 26% of the
loan book at end-Q109) and the high dependence of asset quality on
the health of the state-owned corporate sector are viewed as
weaknesses in the current environment.  The liquidity position is
currently reasonable with cash, securities and interbank
placements accounting for 21% of BIB's assets at end-May 2009.

BIB is the fifth largest bank in Belarus, primarily focused on
serving corporates and participating in state lending programs.
At end-Q109, the bank held 6.8% of system assets, a 5.5% market
share in retail deposits and a 6.2% market share in corporate
lending.  The largest shareholders of BIB are the state property
committee (86.2% of equity), and the National Bank of the Republic
of Belarus (6.5%).

Rating actions:

  -- Long-term IDR: affirmed at 'B-'; Outlook changed to Negative
     from Stable

  -- Short-term IDR: affirmed at 'B'

  -- Support rating: affirmed at '5'

  -- Individual rating: affirmed at 'D/E'

  -- Support Rating Floor: affirmed at 'B-' (B minus)


BPS BANK: Fitch Affirms Individual Rating at 'D/E'
--------------------------------------------------
Fitch Ratings said that the revision of the Outlook on Belarus-
based BPS-Bank to Negative from Stable, announced by the agency
earlier, was part of a more general review of Belarusian state
banks.  The rating action took into account the heightened risks
stemming from the weaker outlook for Belarusian sovereign finances
and the Belarusian economy.

BPS's Long- and Short-term IDRs currently reflect its stand-alone
financial position, but are also underpinned by potential support
from the Belarusian authorities, given its state ownership and
significant size in the banking system.  The Negative Outlook on
BPS, as for the three other state-owned banks, reflects the
weakening ability of the Belarusian authorities to support the
banking system, in case of need.  It also takes into account the
potential for a marked deterioration in the bank's stand-alone
financial profile in case of a worsened economic downturn, reduced
state support for the corporate sector or a further marked
depreciation of the Belarusian Rouble (BYR).

BPS reported low non-performing loans (defined as loans overdue by
90 days or more) of 0.8% at end-May 2009, however, Fitch notes
that, as with other Belarusian banks, additional impairment is
likely to crystallise as the operating environment worsens.  Fitch
also notes that the high proportion of foreign currency lending
(52% at end-Q109) and the large concentration by borrower (the
top-20 borrowers accounted for 46% of total loans at end-Q109)
could heighten credit risks, in particular in the event of another
sharp BYR devaluation.  At the same time, Fitch notes the moderate
proportion of lending within government programs, relative to
other state-owned banks, the well diversified loan book by
industry and the reasonable level of reserves created for
impairment under IFRS (4.9% at end-Q109).

The bank's Tier 1 and total regulatory capital ratios stood at
11.7% and 16.7%, respectively, at end-May 2009.  Fitch notes that
at this level of capitalization, BPS has only a moderate ability
to increate its provisioning level to absorb future credit-related
losses: the impairment reserves/loans ratio could increase to an
estimated 13% from the end-May 2009 level of 1.6% before the
bank's capital ratios would have fallen to the regulatory minimum.
However, BPS's loss absorption capacity would be reduced
significantly in the event of a significant BYR devaluation given
BPS's high share of FX loans and the inflation of BYR-denominated
risk weighted assets that would result from a local currency
depreciation.

At the same time, Fitch acknowledges BPS's currently reasonable
liquidity.  At end-May 2009, the bank had BYR737 billion in liquid
assets, which amounted to 18% of total assets, or 24% of customer
funding at the same date.

BPS is the fourth largest bank in Belarus in terms of assets, with
market shares in system assets and retail deposits of 6.5% and
8.2%, respectively, at end-Q109.  BPS is 93.3% owned by the State
Property Committee of the Republic of Belarus, with another 2.6%
held by state-owned enterprises and the remaining equity broadly
dispersed among individuals and private companies.

The rating actions taken earlier were:

  -- Long-term IDR: affirmed at 'B-'; Outlook revised to Negative
     from Stable

  -- Short-term IDR: affirmed at 'B'

  -- Support Rating: affirmed at '5'

  -- Individual Rating: affirmed at 'D/E'

  -- Support Rating Floor: affirmed at 'B-'


=============
D E N M A R K
=============


* DENMARK: June 2009 Corporate Bankruptcies Near Record High
------------------------------------------------------------
Christian Wienberg at Bloomberg News reports that the number of
companies filing for bankruptcy in Denmark reached 533 in June,
very close to the 538 record in May, which was the highest since
Statistics Denmark began compiling data in 1979.

According to Bloomberg News, declining domestic and export demand
reduced markets too fast for Danish businesses to adjust.


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


PEUGEOT CITROEN: Sales Down 14% in First Half of 2009
-----------------------------------------------------
Laurence Frost at Bloomberg News reports that PSA Peugeot Citroen
S.A.' sales of cars and light trucks fell 14% in the first half of
2009 to 1.59 million, compared with 1.85 million a year earlier.

According to Bloomberg News, Peugeot's market share in Latin
America fell 0.2 percentage point to 5.5 percent, while its
deliveries in Europe fell 14 percent.

PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com--
is a France-based manufacturer of passenger cars and light
commercial vehicles.  It produces vehicles under the Peugeot and
Citroen brands.  In addition to its automobile division, the
Company includes Banque PSA Finance, which supports the sale of
Peugeot and Citroen vehicles by financing new vehicle and
replacement parts inventory for dealers and offering financing and
related services to car buyers; Faurecia, an automotive equipment
manufacturer focused on four component families: seats, vehicle
interior, front end and exhaust systems; Gefco, which offers
logistics services covering the entire supply chain, including
overland, sea and air transport, industrial logistics, container
management, vehicle preparation and distribution, and customs and
value added tax (VAT) representation, and Peugeot Motocycles,
which manufactures scooters and motorcycles.  In 2008, PSA Peugeot
Citroen S.A. sold over 3.2 million vehicles in 150 countries
worldwide.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on June 25,
2009, Fitch Ratings said that Peugeot SA's launch of a minimum
EUR500 million convertible bond and the announcement that it will
post an operating loss of between EUR1 billion-EUR2 billion in
2009 will have no immediate impact on its 'BB+' Long-term Issuer
Default rating and 'B' Short-term IDR.  The Outlook on PSA's Long-
term IDR is Negative.


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


COMMERZBANK AG: Bafin Rule Change to Ease Pressure on Capital
-------------------------------------------------------------
James Wilson at The Financial Times reports that a proposed change
in German accounting rules could ease pressure on Commerzbank AG's
reserves of capital.

According to the FT, the change, which is being supported by the
finance ministry, could be made this month.  The FT says the Bafin
rule change could also alleviate the stress on banks' balance
sheets if they need to set aside more capital to cover rising loan
defaults.  The FT discloses that in Commerzbank's case, the
revaluation reserve for anticipated losses amounted to EUR2.85
billion or US$4 billion at the end of the first quarter.  Citing
people familiar with Commerzbank, the FT states the change being
proposed by Bafin could add up to 0.9 percentage points to its
tier one capital ratio.

Bafin's consultation on the measure is set to end this week, the
FT notes.

The FT recalls the German government took an equity stake of just
over a quarter as well as providing more than EUR18 billion in
hybrid capital to bail out Commerzbank and ensure its takeover of
Dresdner.

On June 22, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Commerzbank management board member
Markus Beumer said the company plans to repay state aid of
EUR16.4 billion or US$22.9 billion as early as 2011 if market
conditions are "favorable".  Bloomberg disclosed Mr. Beumer also
said that the company plans to return to profitability in 2011 "at
the latest."

Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
https://www.commerzbank.com/ -- is the parent company of a
financial services group active around the world.  The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.


DEPFA DEUTSCHE: Moody's Withdraws 'E+' Bank Fin'l Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the E+ bank financial
strength rating and P-1/A3 deposit ratings of DEPFA Deutsche
Pfandbriefbank AG, in light of DEPFA PB's merger with its sister
bank, Hypo Real Estate Bank AG (rated A3/Prime-1/E+, negative).

DEPFA PB's A3 rating for outstanding senior unsecured debt, Baa1
rating for subordinated debt and Prime-1 rating for short-term
debt are not affected by Moody's rating action, because these
ratings had earlier been aligned with those ratings of HREB.  All
these ratings have negative outlooks.

    DEPFA PB Ceased to Exist as a Legal Entity on 29 June 29 2009

As announced earlier in 2009, DEPFA PB was to be merged into its
sister bank HREB.  This merger came into force on June 29, 2009.
As a result, HREB -- as the surviving entity -- assumed the
responsibility for DEPFA PB's existing debt.  With effect from
this date, HREB now conducts the group's strategic commercial real
estate and public finance businesses within a single legal entity
in Germany, with Pfandbrief issuance as a key means of
refinancing.  Moody's has withdrawn DEPFA PB's fundamental ratings
(BFSR and deposit ratings) because the issuer has ceased to exist
as a separate legal entity, while all its outstanding debt has
been assumed by HREB.

       Hypo Real Estate Bank Renamed Deutsche Pfandbriefbank

Subsequently HREB has been renamed Deutsche Pfandbriefbank AG.
Moody's understands that the change of name reflects the efforts
made to rebrand Hypo Real Estate Group's core bank in Germany as
the costly support measures that have been necessary since its
distress in September 2008 have weighed heavily on its brand name
and franchise value.

          Merger Is Part of Announced Group Restructuring

The merger of DEPFA PB into HREB is in line with the group's
earlier stated plans to streamline the organizational structure of
the Hypo Real Estate Group in order to realize synergies with
positive financial implications as well as improved transparency.
Previous steps in this restructuring included the merger of Hypo
Real Estate Bank International AG into its sister bank HREB in
November 2008.  Moody's notes that all of the Group's German bank
subsidiaries are now combined within Deutsche Pfandbriefbank.

         Deutsche Pfandbriefbank Maintains E+/A3 Negative

Moody's has previously aligned all ratings of HRE Group which
reflects Moody's view that the entities share a similar risk
profile given major intra-group lending, and Moody's expectation
that all entities of HRE Group will be supported.

While Moody's views positively the progress being made in
streamlining the group structure, and the government control as
well as liquidity and capital support to date, the agency remains
concerned about the mid-term challenges of the business franchise
in view of constrained profitability, expected deterioration in
asset quality of its commercial real estate activities and
restricted capital market access.  The outlook on all of HRE
Group's ratings thus continues to be negative.

Covered bond ratings are not covered by this press release.

The last rating action on HRE was implemented on 2 February 2009
when Moody's downgraded its senior unsecured debt and deposit
ratings to A3 from A2.

Headquartered in Munich, HRE Group reported consolidated total
assets of EUR420 billion and a pre-tax loss of EUR5.375 billion as
of December 31, 2008.


GENERAL MOTORS: Says Beijing Auto a "Formidable Bidder" for Opel
----------------------------------------------------------------
Norihiko Shirouzu at The Wall Street Journal reports that General
Motors Corp. considers Beijing Automotive Industry Holding Co. "a
formidable bidder" for its Adam Opel GmbH unit.

Citing a person close to GM, the WSJ says GM is increasingly
attracted to Beijing Auto's offer, which is valued at EUR660
million or US$922.5 million.  The WSJ discloses an advantage of
the offer, according to the knowledgeable person, is that Beijing
Auto doesn't plan to close any Opel factories in Germany, and it
would ask only EUR2.64 billion in German government guarantees,
much less than the EUR4.5 billion Magna is asking for.

The WSJ notes Beijing Auto's offer however has potential problems,
including the potential competitive threat that a Beijing
Auto-owned Opel might pose to GM's business in China.

In a July 6 report The Financial Times said Beijing Auto aimed to
rapidly expand its operations in China if it wins the race to
acquire GM's Opel business in Europe.  The FT disclosed that in a
last-minute bid for GM's European operations, submitted last week,
the Chinese carmaker outlined a plan to spend US$2 billion on what
would become Opel's first factory in China.  Citing several people
close to the situation, the FT said Beijing Auto proposes to shut
down GM's Belgian Antwerp plant and cut Opel's workforce across
Europe.

                           Magna Talks

On July 7, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Germany Deputy Economy Minister
Jochen Homann said talks with Magna are more advanced than those
with other bidders.  Magna, Canada's biggest auto-parts
manufacturer, was chosen in May by the German government as the
preferred bidder for Opel.

In the same TCR-Europe report, Reuters said that GM Europe
President Carl-Peter Forster told German newspaper Frankfurter
Allgemeine Sonntagszeitung expects to sell Opel to Magna soon.
Reuters noted Mr. Forster did not give any details on the date,
but said "it would be great if it worked out by mid-July."
Reuters also reported in June citing sources that GM and Magna had
set a target of July 15 for agreeing on the sale of a majority
stake in Opel to the Canadian auto parts group and its Russian
partner Sberbank.

                      About General Motors

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

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

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

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

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


INFINEON AG: Sells Wireline Unit to Golden Gate for EUR250 Million
------------------------------------------------------------------
Rochelle Garner at Bloomberg News reports that Infineon
Technologies AG agreed to sell its Wireline Communications
business to an affiliate of San Francisco-based Golden Gate
Capital Corp. for EUR250 million or US$348 million.

Bloomberg relates Infineon, which has posted losses in nine
straight quarters after being hit by a slumping demand for chips,
said the deal will "significantly improve" its financial
situation.  According to Bloomberg, Infineon said the transaction
is expected to close by autumn.  Christian Wolff, who ran the
Wireline division, will become chief executive officer of the new
business, Bloomberg notes.

                     About Infineon Technologies AG

Headquartered in Neubiberg, Germany, Infineon Technologies AG
(FRA:IFX) -- http://www.infineon.com/-- is a semiconductor
company.  It designs, develops, manufactures and markets a range
of semiconductors and complete systems solutions used in a variety
of microelectronic applications, including computer systems,
telecommunications systems, consumer goods, automotive products,
industrial automation and control systems, and chip card
applications.  Its products include standard commodity components,
full-custom devices, semi-custom devices and application-specific
components for memory, analog, digital and mixed-signal
applications.  The Company has operations, investments and
customers located in Europe, Asia and North America.  Its core
business is conducted through its Automotive, Industrial &
Multimarket segment, and its Communication Solutions segment.  Its
memory products business is conducted through its majority owned
subsidiary, Qimonda AG.  In April 2008, LSI Corporation purchased
the assets of the hard disk drive semiconductor business of
Infineon.


* German Corporate Insolvencies Up 7.1% in April, Destatis Says
---------------------------------------------------------------
As reported by the Federal Statistical Office (Destatis), in
April 2009, German insolvency courts reported 13,676 insolvencies;
2,979 of them referred to enterprises and 8,251 to consumers.  The
total number of insolvencies decreased 3.4% compared with April
2008, enterprise insolvencies increased 7.1% and insolvencies of
consumers decreased 5.7%.

From January to April 2009, 52,680 insolvencies (-0.6%) were
registered, 10,697 of which were enterprise insolvencies (+12.1%).
Altogether the courts registered 32,357 consumer insolvencies,
which were 3.7% less in January to April2008.  The change rates
from January to April 2009 refer to computations without
Nordrhein-Westfalen.


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


BACCHUS 2006-1: Moody's Junks Rating on Class D Notes From 'B2'
---------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of 10 classes
of notes issued by Bacchus 2006-1 plc.

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as some mezzanine loan exposure.

According to Moody's, the rating actions taken on the notes are a
result of credit deterioration of the underlying portfolio.  This
is observed in, among other measures as per trustee report dated
May 29, 2009, a decline in the average credit rating as measured
through the weighted average rating factor (currently 2823), an
increase in the amount of defaulted securities (currently 13% of
the portfolio), an increase in the proportion of securities from
issuers rated Caa1 and below (currently 16% of the portfolio), and
a failure of all par value tests.  Moody's also performed a
sensitivity analysis, including amongst others, a further decline
in portfolio WARF quality.

The rating actions also reflect Moody's revised assumptions with
respect to default probability and the calculation of the
Diversity Score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs."  These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.  Moody's also notes that a material proportion of
the collateral pool consists of debt obligations whose credit
quality has been assessed through Moody's Credit Estimates.  As
credit estimates do not carry credit indicators such as ratings
reviews and outlooks, a stress of a quarter notch-equivalent
assumed downgrade was applied to each of these estimates.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio.  All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.

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

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

The rating actions are:

  -- Class A-1 Senior, Downgraded to A3; previously on March 24,
     2006 Aaa Rated

  -- Class A-2A Senior, Downgraded to A1; previously on March 24,
     2006 Aaa Rated

  -- Class A-2B Senior, Downgraded to Baa3; previously on March 4,
     2009 Aa1 Placed Under Review for Possible Downgrade

  -- Class B Senior, Downgraded to Ba2; previously on March 4,
     2009 Aa2 Placed Under Review for Possible Downgrade

  -- Class C Senior, Downgraded to B3; previously on March 19,
     2009 Ba1 Placed Under Review for Possible Downgrade

  -- Class D Senior, Downgraded to Ca; previously on March 19,
     2009 B2 Placed Under Review for Possible Downgrade

  -- Class E Senior, Downgraded to Ca; previously on March 19,
     2009 Caa3 Placed Under Review for Possible Downgrade

  -- Class W Combination, Downgraded to Ba1; previously on
     March 4, 2009 A3 Placed Under Review for Possible Downgrade

  -- Class X Combination, Downgraded to B2; previously on March 4,
     2009 Baa3 Placed Under Review for Possible Downgrade

  -- Class Y Combination, Downgraded to B2; previously on March 4,
     2009 Baa3 Placed Under Review for Possible Downgrade


IRISH LIFE: Moody's Cuts Undated Subordinated Debt to Ba1
---------------------------------------------------------
Moody's Investors Service has downgraded to Aa1 (negative
outlook), from Aaa, the backed long-term senior unsecured debt
securities of the six rated institutions covered by the Irish
government guarantee.

This action follows the downgrade of the Irish Government's bond
rating to Aa1 (negative outlook) from Aaa.  The six rated
institutions covered by the guarantee are Allied Irish Banks, Bank
of Ireland, Anglo-Irish Bank, Irish Life & Permanent, EBS Building
Society and Irish Nationwide Building Society, and the guarantee
also covers debt issued through branches and certain subsidiaries,
that mature prior to 29 September 2010.  Bank of Ireland's dated
subordinated debt that matures within the guarantee period has
also been downgraded to Aa1.  The backed-Aa1 ratings assigned are
based on the unconditional and irrevocable guarantee from the
Irish government and the clear intention of the Irish government
to improve the level of confidence in the Irish banking system.
The guarantee covers deposits, senior debt, dated subordinated
debt and covered bonds of the six institutions, both existing and
new instruments, for a two-year period that expires on
29 September 2010.

          Downgrade of Allied Irish, Bank of Ireland and
                      Irish Life & Permanent

In addition Moody's has also downgraded the long-term bank deposit
and certain debt ratings of Allied Irish Banks plc, Bank of
Ireland, including its subsidiary ICS Building Society, and Irish
Life & Permanent:

* Allied Irish Banks -- Long-term bank deposit and senior debt
  ratings to A1 from Aa3, dated subordinated debt to A2 from A1
  and undated subordinated debt to Baa3 from Baa2.

* Bank of Ireland -- Long-term bank deposit and senior debt
  ratings to A1 from Aa3, dated subordinated debt to A2 from A1
  and undated subordinated debt to Baa3 from Baa2.

* ICS Building Society -- Long-term bank deposit rating to A2 from
  A1.

* Irish Life & Permanent -- Long-term bank deposit and senior debt
  ratings to A2 from A1, dated subordinated debt to A3 from A2 and
  undated subordinated debt to Ba1 from Baa3.

The credit profile of all three banks' continues to benefit from
the high level of assumed (and in some cases, explicit) support
from the Irish government.  While Moody's do not question the
government's unchanged strong willingness to support these large
banking institutions, Moody's does however note that the ability
of the government to continue to support its banking sector has
weakened over the past few quarters.  This is a result of the
already extended support to its banking system, but also due to
the wider economic decline and the structural challenges that the
Irish economy faces.  Thus the financial flexibility of the Irish
government has been reduced as indicated by the downgrade of the
Irish government's bond rating to Aa1.

The impact of this -- i.e. a marginally weaker expected ability of
the Irish government to support its banks -- has hence resulted in
a moderate weakening of the long-term creditworthiness of these
banks as described above.  However, Moody's still believe that the
ability of the Irish government to support its banks is very
robust, and therefore the debt ratings (which include an
assessment of government support likelihood) are still evidencing
a clearly lower credit risk than the standalone ratings.

                             Outlooks

The outlook on the long-term bank deposit ratings, as well as on
the senior, dated subordinated and undated subordinated debt of
Allied Irish Banks and Bank of Ireland (including its subsidiary,
ICS Building Society) is stable.  This reflects Moody's view that
over the longer term the two predominant banks (AIB and BoI) will
maintain their position in the domestic Irish market and that
their size and presence will result in a very high probability of
on-going support from the Irish government, even beyond the
current difficult phase.  It also reflects that the establishment
of the National Asset Management Agency, that will see the real
estate development loans and certain investment property loans
being removed from the bank's balance sheets, is likely to reduce
the risk profile of the two banks limiting any potential downward
pressure on the respective D BFSRs.

The outlook on the long-term bank deposit ratings, as well as on
the senior, dated subordinated and undated subordinated debt
ratings of Irish Life & Permanent is negative.  This is in line
with the outlook on the D BFSR, and also reflects Moody's view
that the bank, although a very important institution as evidenced
by its position as the second largest mortgage lender in Ireland,
is less systemically important than the two predominant banks.

        Previous Rating Action and Principal Methodologies

The last rating action on AIB was on June 4, 2009, when the Aa3
long-term bank deposit rating, the Aa3 senior debt rating, the A1
dated subordinated debt rating, as well as the backed-Aaa senior
debt guaranteed by the Irish government, were placed on review for
possible downgrade.  At the same time the cumulative junior
subordinated debt was downgraded to Baa2 (on review for possible
downgrade) from A2 (neg).  Non-cumulative preference shares and
hybrids were downgraded to B3 (neg) from B1 (developing).  The
cumulative Tier 1 hybrids have been affirmed at B1, the outlook
has changed to negative from developing.

The last rating action on Anglo was on June 4, 2009, when the
long-term bank deposit and senior debt rating was downgraded to A3
(with a negative outlook) from A2 (negative), the dated
subordinated debt was downgraded to Baa1 (negative) and the BFSR
was downgraded to E (mapping to a Baseline Credit Assessment of
Caa1) from E+ (BCA: B2).  At the same time the cumulative Tier 1
hybrids were downgraded to Caa1 (neg) from B3 (neg) and the non-
cumulative preferred shares and hybrids were downgraded to Caa3
(neg) from Caa1 (neg).

The last rating action on BoI was on June 4, 2009, when the Aa3
long-term bank deposit rating, the Aa3 senior debt rating, the A1
dated subordinated debt rating, as well as the backed-Aaa senior
debt and subordinated debt guaranteed by the Irish government,
were placed on review for possible downgrade.  At the same time
the cumulative junior subordinated debt was downgraded to Baa2 (on
review for possible downgrade) from A2 (neg).  Non-cumulative
preference shares and hybrids were downgraded to B3 (neg) from B1
(developing).  The cumulative Tier 1 hybrids have been affirmed at
B1, the outlook has changed to negative from developing.

The last rating action on EBS was on June 4, 2009, when the non-
cumulative preference shares and hybrids were downgraded to B3
(neg) from B1 (developing).

The last rating action on ICS was on June 4, 2009, when the A1
long-term bank deposit rating was placed on review for possible
downgrade.

The last rating action on IL&P was on June 4, 2009, when the A1
long-term bank deposit rating, the A1 senior debt rating, the A2
dated subordinated debt rating, as well as the Aaa rated senior
debt guaranteed by the Irish government, were placed on review for
possible downgrade.  At the same time the cumulative junior
subordinated debt was downgraded to Baa3 (on review for possible
downgrade) from A3 (neg).

The last rating action on Irish Nationwide Building Society was on
April 21, 2009, when the society's backed-Aaa rated Government
guaranteed bonds were placed on review for possible downgrade.

The detailed ratings and actions are listed below:

Allied Irish Banks plc:

* Backed long-term senior unsecured debt securities downgraded to
  Aa1 (negative outlook) from Aaa (on review for possible
  downgrade)

* Long-term bank deposit and senior debt ratings downgraded to A1
  (stable outlook) from Aa3 (on review for possible downgrade).

* Dated subordinated debt rating downgraded to A2 (stable outlook)
  from A1 (on review for possible downgrade).

* Undated junior subordinated debt rating downgraded to Baa3
  (stable outlook) from Baa2 (on review for possible downgrade).

* All other ratings are unaffected

Anglo Irish Bank Corporation Ltd:

* Backed long-term senior unsecured debt securities downgraded to
  Aa1 (negative outlook) from Aaa (on review for possible
  downgrade)

* All other ratings are unaffected

Bank of Ireland:

* Backed long-term senior unsecured debt securities and backed Aaa
  dated subordinated debt that matures within the guarantee period
  were downgraded to Aa1 (negative outlook) from Aaa (on review
  for possible downgrade)

* Long-term bank deposit and senior debt ratings downgraded to A1
  (stable outlook) from Aa3 (on review for possible downgrade).

* Dated subordinated debt rating downgraded to A2 (stable outlook)
  from A1 (on review for possible downgrade).

* Undated junior subordinated debt rating downgraded to Baa3
  (stable outlook) from Baa2 (on review for possible downgrade).

* All other ratings are unaffected

EBS Building Society:

* Backed long-term senior unsecured debt securities downgraded to
  Aa1 (negative outlook) from Aaa (on review for possible
  downgrade)

* All other ratings are unaffected

ICS Building Society:

* Long-term bank deposit and senior debt ratings downgraded to A2
  (stable outlook) from A1 (on review for possible downgrade).

* All other ratings are unaffected

Irish Life & Permanent:

* Backed long-term senior unsecured debt securities downgraded
  from to Aa1 (negative outlook) from Aaa (on review for possible
  downgrade)

* Long-term bank deposit and senior debt ratings downgraded to A2
  (negative outlook) from A1 (on review for possible downgrade).

* Dated subordinated debt rating downgraded to A3 (negative
  outlook) from A2 (on review for possible downgrade).

* Undated junior subordinated debt rating downgraded to Ba1
  (negative outlook) from Baa3 (negative outlook).

* All other ratings are unaffected

Irish Nationwide Building Society:

* Backed long-term senior unsecured debt securities downgraded to
  Aa1 (negative outlook) from Aaa (on review for possible
  downgrade)

* All other ratings are unaffected

All of the banks are headquartered in Dublin, Ireland.


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


FIAT SPA: Inks Joint Venture Deal with China's GAC Group
--------------------------------------------------------
Fiat Group and Guangzhou Automobile Group Co. Ltd. (GAC Group)
signed a Framework Agreement to establish a 50/50 joint venture
for the production of cars and engines for the Chinese market.

The agreement was signed in Rome by Zhang Fangyou, Chairman of GAC
Group, and Sergio Marchionne, CEO of Fiat Group, in the presence
of the President of the People's Republic of China, Hu Jintao, and
the Prime Minister of Italy, Silvio Berlusconi.

Plans call for the construction of a new plant with a more than
700,000 square metre production area and total investment by the
joint venture of more than EUR400 million.

Upon completion of the first phase of development, the joint
venture will have production capacity of 140,000 cars and 220,000
engines per year.  Plant capacity could subsequently be increased
to a maximum of 250,000 cars and 300,000 engines per year.
Production is scheduled to commence in the second half of 2011.
The models produced will be equipped with the latest in engine and
transmission technology in response to the Chinese government's
requirement to develop fuel-efficient, low emission vehicles.
The first model to be launched will be the C-segment Linea sedan.
The first engines will be the Fire 1.4l 120hp and 150hp T-Jet
engine.

The plant will be located in Changsha, the capital of Hunan
province, a major road and rail hub in the heart of south central
China, approximately 600 kilometres north of Guangzhou to which it
will be connected within a couple of years by high-speed rail
link.

This industrial project is also eligible to receive support from
the development plan recently established by the Chinese
government to promote new investment in six provinces in central
China.

                            About GAC Group

As a large state-owned holding enterprise and one of the principal
automotive groups in China, GAC's activity in both the
international and domestic markets includes the design and
manufacture of vehicles and components, sale and distribution of
vehicles, car finance, insurance and auto-related services GAC has
an independent and complete organization for manufacturing, sales
and R&D.  Currently GAC has invested in tens of renowned
subsidiaries including Guangzhou Automobile Group Motor Co., Ltd,
Guangqi Honda Automobile Co., Ltd., Gac Toyota Motor Co., Ltd.,
Honda Motor (China) Co., Ltd., GAC Hino Motors Co., Ltd.,
Guangzhou Automobile Group bus Co., Ltd, Gac Toyota Engine Co.,
Ltd., Guangzhou Automobile Group Component Co., Ltd., Guangzhou
Automobile Group Business Co., and GAC Automotive Engineering
Institute, etc.  GAC delivered over 530,000 cars to customers in
2008 and had RMB 109.9 billion in revenues, ranking first for six
consecutive years in terms of the overall efficiency index for
industrial enterprises.

                          About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.  With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on
June 16, 2009, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit rating on Italian industrial
group Fiat SpA remains on CreditWatch with negative implications,
where it was placed on Jan. 22, 2009.  At the same time, the 'B'
short-term corporate credit rating was affirmed.


SAFILO SPA: Moody's Cuts Probability of Default Rating to 'Ca/LD'
-----------------------------------------------------------------
Moody's Investors Service has downgraded Safilo S.p.A.'s
Probability of Default Rating to Ca/LD (Limited Default) from Caa3
and the Corporate Family Rating to Caa3 from Caa2.  The senior
unsecured rating on the EUR195 million notes due 2013 issued by
Safilo Capital International SA has been downgraded to C (LGD5,
78%) from Ca.  The outlook on the ratings is stable.  The rating
action concludes the rating review process initiated on 13
February 2009.

"Safilo's Probability of Default Rating of Ca/LD reflects the
company's senior lenders agreement to postpone a payment of circa
EUR19 million that was due by June 30, 2009 under the Senior Loan
and the fact that such condition constitutes an event of defaults
under Moody's definitions of default," said Paolo Leschiutta, a
Vice President -- Senior Analyst in Moody's Corporate Finance
Group and responsible for Safilo.  The payment postponement, until
December 31, 2009, has been granted at the request of the company
together with a waiver on the financial covenants set for June 30,
2009.  The stable outlook on the ratings reflects Moody's view
that downward pressure on ratings at current level is relatively
limited.

Moody's understands that the company is looking into measures to
stabilize its capital structure, however, the rating agency
remains concerned on the liquidity profile of Safilo and the
sustainability of its current capital structure in the context of
ongoing pressure on operating performances.  Safilo's CFR of Caa3,
one notch higher than the PDR of Ca/LD, reflects Moody's
expectation that the family recovery rate in case of default might
be above the standard 50% average implied by Moody's Loss Given
Default model.  The rating of C (LGD5, 78%) on the notes reflects
the expected low recovery rate for bondholders in case of
liquidation.

Downgrades:

Issuer: Safilo S.p.A.

  -- Probability of Default Rating, Downgraded to Ca/LD from Caa3;

  -- Corporate Family Rating, Downgraded to Caa3 from Caa2;

Issuer: Safilo Capital International SA

  -- Senior Unsecured Regular Bond, Downgraded to C (LGD5, 78%)
     from Ca.

The outlook is stable.

The last rating action on Safilo was implemented on June 24, 2009,
when Moody's downgraded Safilo's CFR to Caa2, PDR to Caa3 and the
rating on the notes issued by Safilo Capital International SA to
Ca leaving ratings under review for further possible downgrade,
where they were initially placed on February 13, 2009.  Safilo's
ratings were assigned by evaluating factors Moody's believe are
relevant to the credit profile of the issuer, such as (i) the
business risk and competitive position of the company versus
others within its industry, (ii) the capital structure and
financial risk of the company, (iii) the projected performance of
the company over the near to intermediate term, and (iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Safilo's core industry and the company's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

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


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


AKTAU COSMETIC: Creditors Must File Claims by July 17
-----------------------------------------------------
Creditors of LLP Trade House Aktau Cosmetic have until July 17,
2009, to submit proofs of claim to:

         Building of Auto Station
         Micro District 28
         Aktau
         Mangistau
         Kazakhstan

The Specialized Inter-Regional Economic Court of Mangistau
commenced bankruptcy proceedings against the company on
April 16, 2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Mangistau
         Building of Former Kindergarten 51
         Micro District 27
         Aktau
         Mangistau
         Kazakhstan


ALEM JSC: Creditors Must File Claims by July 17
-----------------------------------------------
JSC Investment Company Alem is currently undergoing liquidation.
Creditors have until July 17, 2009, to submit proofs of claim to:

         Satpaev Str. 62-4
         Almaty
         Kazakhstan


ALLIANCE BANK: Inks MoU with Creditors on Debt Restructuring
------------------------------------------------------------
Alliance Bank has entered into a Memorandum of Understanding with
the Creditors' Steering Committee with respect to the
restructuring of Alliance Bank's financial indebtedness.  The
Creditors' Steering Committee is comprised of Asian Development
Bank, Calyon, Commerzbank Aktiengesellschaft, DEG Deutsche
Investitions- und Entwicklungsgesellschaft mbH, ING Asia Private
Bank Limited, HSBC Bank plc, JPMorgan Chase Bank, N.A., Sumitomo
Mitsui Banking Corporation Europe Limited and Wachovia Bank N.A.

Pursuant to the indicative terms of the Memorandum of
Understanding, financial creditors of Alliance Bank are expected
to be offered the following options with equivalent interest rates
for other eligible currencies:

   * Option 1: A fixed offer cash buy-back at a 77.5% haircut.
     This option will be capped to limit the cash allocation to a
     maximum of US$500 million.  The minimum amount of debt
     expected to be retired by the Bank under this option will be
     US$1.85 billion.

   * Option 2: An option with a 50% haircut, a seven-year
     maturity, an interest rate of 5.8% p.a. and principal
     amortization following a grace period of four years.  This
     option will also provide for Recovery Notes to participate in
     recoveries from written down amounts, litigation and tax
     assets in a total amount equal to the debt forgiveness.  The
     Recovery Notes will be capped at the initial notional amount
     of the forgiven debt and entitled to 50% of any cashflows
     mentioned above, and will carry a notional capitalization
     rate of 4.2% p.a.

   * Option 3: A no haircut option with a 10-year maturity and
     principal amortization following a grace period of seven
     years.  There will be an interest rate of 4.7% p.a.  for the
     first seven years (2.0% p.a. paid in cash and 2.7% p.a.
     capitalized at the end of year seven).  Principal and
     capitalized amounts will be amortized over three years at an
     interest rate of Libor + 8 1/2% p.a. which may be reduced to
     Libor + 6 1/2% when the Bank reaches and maintains investment
     grade status.

   * Option 4: Subordinated debt will be automatically allocated
     to this option.  This subordinated option will be classified
     as Tier 2 capital and involve no haircut, a 13-year maturity
     and principal amortization following a grace period of 10
     years.  There will be an interest rate of 5.0% p.a. for the
     first ten years (2.0% p.a. paid in cash and 3.0% p.a.
     capitalized at the end of year ten). The principal and
     capitalized amounts will be amortized over three years with a
     fixed interest rate of 10% p.a.

   * Option 5: This option contemplates the allocation of 33%
     preferential shares and common shares issued pursuant to the
     restructuring to participating creditors under options 2 to
     5.  In respect of the conversion into preferential shares,
     this option contemplates conversion of senior debt at a 75%
     haircut and conversion of perpetual Eurobonds at a 80%
     haircut.  Preferential shares will carry a 4% p.a. Interest.

Participating creditors under options 2 to 5 may also receive an
equity component in the form of ordinary shares in Alliance Bank
representing 33% of common shares.

The Memorandum of Understanding is non-binding on any financial
creditor and the restructuring will be subject to approvals.
The full text of the Memorandum of Understanding will be available
on Alliance Bank's website: www.albinvestorrelations.com in a due
course.

The Memorandum of Understanding as part of Restructuring and
Recapitalization Plan will be submitted by Alliance Bank for
approval to the FMSA on July 15, 2009, subject to the completion
of a number of conditions precedent being fulfilled by Alliance
Bank, including the delivery of certain reports and the delivery
of a memorandum of understanding executed by Samruk-Kazyna
National Welfare Fund JSC ("SK") and Alliance Bank (the "SK MOU").
Alliance Bank has no reason to believe that approval by the FMSA
will not be forthcoming.  The SK MOU will provide that, subject to
a number of conditions precedent, on or before the successful
completion of the Restructuring, SK will acquire a majority stake
in Alliance Bank and recapitalize it in amount sufficient to
comply with regulatory requirements subject to results of the
Restructuring.

                          Default

On May 21, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Alliance Bank said it failed to make a
principal payment of more than US$10 million on a loan placed with
foreign lenders due May 11.  The bank, Bloomberg News disclosed,
stopped paying creditors after discovering US$1.1 billion of
liabilities that weren't reflected on its balance sheet and
requested a standstill on repayments.

The Troubled Company Reporter-Europe reported on June 23, 2009,
that according to Bloomberg News, the bank reported a loss of
KZT16.4 billion (US$109 million) in the first quarter of 2009
compared with a profit of KZT5.6 billion in the same period last
year.

Based in Almaty, Kazakhstan, Alliance Bank OA (LI:ALLB) --
http://www.alb.kz/-- a.k.a Alliance Bank JSC, is a commercial
bank.  As at December 31, 2007, Alliance had 24 branches and 199
mini-branches in the Republic of Kazakhstan.  The Bank is
organized on the basis of three main segments: Retail banking,
which represents private banking services, private customer
current accounts, savings, deposits, investment savings products,
custody, credit and debit cards, consumer loans and mortgages;
Corporate banking, which represents direct debit facilities,
current accounts, deposits, overdrafts, loan and other credit
facilities, foreign currency and derivative products, and
Investment banking, which represents financial instruments
trading, structured financing, corporate leasing, and merger and
acquisitions advice.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on June 9,
2009, Standard & Poor's Ratings Services said that it lowered its
short-and long-term counterparty credit ratings on Kazakhstan-
based Alliance Bank JSC to 'D/D' (default) from 'SD/SD' (selective
default).

As reported in the TCR-Europe on Feb. 10, 2009, Moody's Investors
Service hdowngraded the long-term bank deposit and unsecured debt
ratings of Alliance Bank to B2 from Ba2.  At the same time, the E+
bank financial strength rating was lowered to E.  The bank's Not
Prime short-term ratings were affirmed.  Debt and deposit ratings
remain on review for possible further downgrade.


ASPARA OJSC: Creditors Must File Claims by July 17
--------------------------------------------------
OJSC Aspara is currently undergoing liquidation.  Creditorshave
until July 17, 2009, to submit proofs of claim to:

         Granitogorsk
         Merkensky
         Jambyl
         Kazakhstan


KAZMUNAIGAS JSC: S&P Affirms Corporate Credit Rating at 'BB+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB+' long-term corporate credit rating on JSC KazMunaiGas
Exploration Production.  At the same time the rating was removed
from CreditWatch, where it was placed with negative implications
on June 16, 2009.  The outlook is stable.

"The affirmation reflects S&P's assessment of KMG EP's stand-alone
credit profile, which S&P assess as 'BB', as well as S&P's
expectation of support from its parent, JSC NC KazMunayGas, which
results in a one-notch uplift," said Standard & Poor's credit
analyst Andrey Nikolaev.

The 'BB' stand-alone credit profile reflects S&P's view that KMG
EP's business risk profile is "fair" and and that its financial
risk profile is "significant".  The business risk profile is
constrained by KMG EP's mature, land-locked reserve base and
relatively high cost position.  The company's business position is
supported by priority access to oil and gas assets in Kazakhstan
that the companies of the KMG group enjoy.  KMG EP's financial
risk profile is constrained by weak liquidity.  According to KMG
EP's 2008 annual report, the company is required by the Kazakhstan
government to hold a majority of its financial assets with
domestic banks, and S&P understands that this is the case.  This
concerns us because, in S&P's opinion, the liquidity and asset
quality of these banks is under pressure.  S&P does not currently
expect KMG EP to use this cash for debt repayment and exclude it
from calculation of S&P's credit ratios.

The ratings on KMG EP are pressured by the company's fairly
aggressive financial policy, which is characterized by a
substantial appetite for acquisitions and generous shareholder
distributions. Currently, KMG is negotiating the purchase of a 50%
stake in MangistauMunaiGas, Kazakhstan's last independent oil
company, and S&P cannot rule out the possibility that KMG EP may
participate in the acquisition.  In addition, KMG EP plans to
acquire several upstream assets from KMG (such as stakes in oil
companies Aktobe, Kazturkmunay, and PetroKazakhstan Inc.).  KMG EP
benefits from modest leverage, with gross debt of only kazakhstani
tenge (KZT) 20.5 billion (about US$135 million) as at Dec. 31,
2008, and S&P expects it to be able to generate positive free
operating cash flow in 2009-2010.

KMG EP's importance to the wider KMG group is underpinned by its
role as the largest majority-owned oil production asset of both
KMG and the state, and the largest profit center within the group.
Historically, KMG EP helped other group entities, but an IPO of a
minority stake in 2006 helped clarify corporate governance issues
between the company and the parent.

The stable outlook reflects the stable outlook on KMG, as well as
S&P's expectation that KMG EP will be able to maintain its stand-
alone credit profile at 'BB', given the company's moderate
leverage and expected solid cash flow generation in 2009-2010.


KAZTEMIRTRANS: Moody's Confirms 'Ba1' Rating; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service concluded its ratings review for ten of
the eleven government-owned corporate issuers.  Ratings had been
placed on review for downgrade on June 15, 2009, prompted by
concerns that ongoing stress in the nation's economy, particularly
within its financial sector, might overtime result in the
government having to become more selective in its allocation of
support to its corporate state-owned enterprises where the need
for future substantial capital investments is anticipated.

Ratings Confirmed:

  -- KazMunayGas NC at Baa2; Outlook Negative
  -- KazMunaiGas E&P at Baa2; Outlook Negative
  -- Kaztransgas at Baa2; Outlook Negative
  -- Intergas Central Asia at Baa2; Outlook Negative
  -- Kaztransoil at Baa2; Outlook Negative
  -- Kazpost at Baa3/Aa3.kz; Outlook Negative
  -- Kazatomprom at Baa3; Outlook Negative
  -- Kaztemirtrans at Ba1; Outlook Negative

Ratings Lowered:

  -- Kazakhstan Electricity Grid Operating Company to Baa3;
     Outlook Negative

  -- Kazakhstan Temir Zholy to Baa3; Outlook Stable

Ratings Remaining on Review:

  -- Food Contract Corporation at Baa3

All ratings have an assigned negative outlook in line with
Kazakhstan's sovereign rating, except for KTZ, which has a stable
outlook to reflect that the ratings could accommodate some
deterioration of the company's standalone credit assessment and a
one-notch downgrade of the sovereign rating assuming that other
GRI inputs remain unchanged.

While Moody's continues to believe that high support levels for
the state-owned corporate GRIs remain appropriate given that they
all pursue distinct policy mandates of strategic importance to the
government and broader economy, Moody's has further distinguished
the risk profiles of some of those state-owned enterprises from
that of the Sovereign.  In particular, while the electricity grid,
KEGOC, and the railroad, KTZ, continue to be seen to be very
strategic warranting high support assumptions, Moody's regards
their strategic ranking as being modestly below that of the
national oil company resulting in a one notch differential from
the sovereign ratings.  In the case of KazMunayGas NC and its
various subsidiaries, Moody's regards the national oil company as
being an integrated operator considered to be of particular
strategic importance to the nation given the importance of the oil
and gas sector to the national economy and its future development.

Moody's also believes that the Kazakh authorities, in deciding
whether to provide support, are unlikely to make a distinction in
practice between supporting the parent company, KMG NC, and
supporting its various subsidiaries resulting in the alignment of
the final ratings.  Moreover, the stand-alone risk profiles of the
individual rated companies within the KMG NC group are also fairly
similarly aligned as well.

In the case of KEGOC, a further contributing factor to the
downgrade to Baa3 is the decision to downgrade its BCA to 14 (B1
equivalent) from 13 (Ba3 equivalent).  The BCA downgrade reflects
Moody's expectation that KEGOC's financial profile will
deteriorate materially beyond the levels seen as commensurate for
the 13/Ba3 rating category (namely, Debt/EBITDA at below 5x and
FFO/Net Debt in the low to mid-teens).  A weaker credit profile is
expected given the reduced electricity consumption and revenue
expectations for 2009 which comes on top of KEGOC's increased debt
burden following the February 2009 devaluation of the Kazakh
tenge.  The deterioration of the financial profile has also
challenged the financial covenants agreed by KEGOC under its bank
agreements.  All medium term debt finance is provided by multi-
lateral lending agencies and Development Bank of Kazakhstan.

However, the agency expects that, supported by the government,
KEGOC would be able to continue co-operation with its bank
creditors, mainly inter-government international financial
institutions (EBRD and IBRD), and retain access to their funding.
Given the strategic importance of KEGOC's large investment program
for the domestic economy, Moody's expects that the government
would continue supporting KEGOC through favorable tariff
regulation, additional equity injections, and provision of
guarantees for new debt funding.  Nevertheless, the company's BCA
is regarded as under pressure until the company gets sizable state
funding and its continuous access to debt finance is confirmed.

As noted above, the rating of FCC remains on review as Moody's
continues an assessment of its standalone creditworthiness as
indicated in the press release dated June 12, 2009.  The review
was primarily prompted by the increase in the level of total debt
reported in the first quarter of 2009, mainly as a result of the
devaluation of the Kazakh tenge compared to the dollar and by the
subsequent reduction in the headroom within the financial
covenants existing on its foreign debt.  Moody's review is
therefore focusing on: (i) the expected headroom within the
company's financial covenants over the next few quarters; (ii) the
degree of government's support in rebuilding sufficient headroom
under the covenants which could be factored in the company's
rating; and (iii) the company's overall projected financial
performance in light of the planned investments and available
capital resources.

The last rating action on the issuers above was on June 15, 2009
when the ratings were placed on review for downgrade.


NC JSC: S&P Lowers Long-Term Corporate Credit Rating to 'BB+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Kazakh oil and gas holding
company JSC NC KazMunayGas to 'BB+' from 'BBB-'.  The outlook is
stable.

At the same time, the ratings were removed from CreditWatch, where
they were placed with negative implications on June 16, 2009.

The Kazakhstan national scale rating on the company was lowered to
'kzAA-' from 'kzAA'.

The issue ratings on US$1.4 billion medium-term notes due 2013 and
US$1.6 billion medium-term notes due 2018 issued by KazMunaiGaz
Finance Sub B.V. and guaranteed by KMG were lowered to 'BB+' from
'BBB-'.

"The rating action reflects S&P's revised assessment of KMG's
stand-alone credit profile, which S&P assess as 'B+', as well as
S&P's opinion that there is an "extremely high" likelihood of
extraordinary government support for the company," said Standard &
Poor's credit analyst Andrey Nikolaev.

According to an annual report of KMG subsidiary JSC KazMunaiGas
Exploration Production, the companies of the KMG group are
required by the Kazakh government to hold a majority of their
financial assets with domestic banks.  S&P understands that a
substantial majority of group liquidity is held in such banks.
The companies of the group report considerable deposits with Halyk
Savings Bank of Kazakhstan (B+/Negative/B) and Kazkommertsbank
(JSC) (B/Negative/C).  The group companies also have deposits with
BTA Bank J.S.C. (D/--/D).  This concerns us because, in S&P's
opinion, the liquidity and asset quality of these banks is under
pressure.

In S&P's view, the flexibility KMG and its subsidiaries have in
managing these deposits is limited.

Mitigating S&P's liquidity concerns and sustaining its confidence
in the prospect of extraordinary government support is a very
recent Kazakhstani tenge 190 billion (US$1.3 billion) 35-year
subordinated bond issued by KMG in favor of Samruk-Kazyna, a
government holding company and KMG's 100% shareholder (announced
on July 2, 2009).

In accordance with S&P's criteria for government-related entities,
S&P's view of an "extremely high" likelihood of extraordinary
government support is based on S&P's assessment of KMG's:

'Critical role' in the economy of Kazakhstan as the largest
exporter, tax-payer and spearhead of the Kazakh government's
policy to increase the national presence in the oil and gas
sector.

'Very strong' link with the Kazakh government, its 100%
shareholder, which, however, requires the companies of the group
to hold cash with domestic banks, the credit quality of which is
below that of the KMG group.

The stand-alone credit profile of 'B+' reflects S&P's assessment
of KMG's business risk profile as "fair" and financial risk
profile as "aggressive".

The stable outlook reflects S&P's expectation that KMG will
continue to benefit from an "extremely high" likelihood of
government support and will be able to maintain its stand-alone
credit profile consistent with the 'B' category.  It also reflects
the stable outlook on the sovereign, which underpins S&P's
assessment of its ability to support KMG.


SPETS COMPLECT: Creditors Must File Claims by July 17
-----------------------------------------------------
Creditors of LLP Spets Complect Postavka have until July 17, 2009,
to submit proofs of claim to:

         Jambyl Str. 9
         Karaganda
         Kazakhstan

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

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Karaganda
         Alalykin Str. 9
         Karaganda
         Kazakhstan


TARKETT CJSC: Creditors Must File Claims by July 17
---------------------------------------------------
Creditors of Representation of CJSC Tarkett have until July 17,
2009, to submit proofs of claim to:

            Momysh uly Str. 40a
            Micro District Jetysu-1
            Almaty
            Kazakhstan


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


ELECTRO TECHNIK: Court Names A. Dolbaev as Insolvency Manager
-------------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues
commenced bankruptcy proceedings against OJSC Electro Technik
after the company insolvency.

The court appointed A. Dolbaev as insolvency manager for the
company on April 21, 2009.  He can be reached at (0-772) 73-29-43,
(+996 312) 53-10-22, 53-08-83.


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


AK OJSC: S&P Affirms 'BB+' Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
long-term corporate credit rating on Russia-based oil pipeline
operator OJSC AK Transnefteproduct and removed it from
CreditWatch, where it was placed with negative implications on
May 27, 2009.  The outlook is negative.

At the same time, the 'ruAA+' Russia national scale rating was
affirmed and removed from CreditWatch.

"The rating affirmation reflects S&P's opinion that
Transnefteproduct continues to enjoy a high degree of support from
its parent OAO AK Transneft (BBB/Negative/--)," said Standard &
Poor's credit analyst Andrey Nikolaev.

S&P puts Transnefteproduct on CreditWatch with negative
implications on May 27, 2009, following its announcement of a
tender offer and consent solicitation relating to its
RUR2.5 billion (about US$80 million) CLN issue.  At that time, S&P
believed this offer could have been an indication of loosening
integration between the two companies and consequently a lower
degree of parental support.

However, S&P's discussions with the managements of Transneft and
Transnefteproduct and the subsequent revision of the terms of the
tender offer have led us to believe that the close ties between
both companies are still intact.

"In S&P's view, Transneft still closely controls
Transnefteproduct's financial and strategic decision-making," said
Mr. Nikolaev.  "This is demonstrated, for example, by the
centralization of accounting for both entities at
TransneftFinance, a subsidiary of Transneft."

Consequently, S&P continues to follow a top-down rating approach
to assess Transnefteproduct's credit quality, notching down two
levels from the rating on Transneft to reflect expected parental
support.

S&P currently assesses Transnefteproduct's stand-alone credit
quality at 'B+', reflecting S&P's view of the company's business
risk profile as weak and its financial risk profile as aggressive.
The business risk profile is constrained by Transnefteproduct's
position as a small (relative to its parent), mainly commercial
operator competing with other transportation providers (notably
rail operators).  Transnefteproduct's financial risk profile
reflects S&P's opinion of the company's fairly weak debt metrics
and the likelihood of negative free cash flows if, for example,
the company were to embark on new development projects, such as
the South pipeline.

The outlook is negative because S&P's outlook on the parent,
Transneft, is negative, which in turn reflects that on the
principal shareholder, the Russian Federation (foreign currency
BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia
national scale 'ruAAA').


LES-PROM LLC: Creditors Must File Claims by August 19
-----------------------------------------------------
The Arbitration Court of Krasnoyarsk commenced bankruptcy
proceedings against LLC Les-Prom (Forestry) after finding the
company insolvent.  The case is docketed under Case No. A
11923/2008.

Creditors have until Aug. 19, 2009, to submit proofs of claims to:

         S. Cherkasova
         Insolvency Manager
         K. Marksa Str. 21
         660049 Krasnoyarsk
         Russia

The Debtor can be reached at:

         LLC Les-Prom
         Sovetskaya Str. 1
         Verkhnepashino
         Yeniseyskiy
         663148 Krasnoyarskiy
         Russia


MACHINE-BUILDING LLC: Creditors Must File Claims by July 19
-----------------------------------------------------------
Creditors of LLC Machine-Building have until Jul.19, 2009 to
submit proofs of claims to:

     V.Sidelev
     Temporary Insolvency Manager
     Office 700
     Svobody Str. 14
     394018 Voronezh
     Russia

The Arbitration Court of Kurskaya will convene at 11.00 a.m. on
Sep.16, 2009 to hear bankruptcy supervision procedure. The case is
docketed under Case No. ?35–3248/09-S7.

The Debtor can be reached at:

     LLC Machine-Building
     Office 23
     Agregatnaya Str. 3
     305022 Kursk
     Russia


METALLURG-MASH CJSC: Creditors Must File Claims by July 19
----------------------------------------------------------
Creditors of CJSC Metallurg-Mash Managing Company (TIN 1833036483,
PSRN 1051801792954) have until July 19, 2009, to submit proofs of
claims to:

         A. Khristyanov
         Temporary Insolvency Manager
         Office 32
         Pushkinskaya Str. 144
         Izhevsk
         426076 Udmurtia
         Russia

The Arbitration Court of Udmurtia will convene at 1:30 p.m. on
Sept. 22, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?71–3287/2009 G9.


NOVATEK OAO: S&P Changes Outlook to Positive; Affirms 'BB+' Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on OAO NOVATEK, Russia's largest independent natural gas
producer, to positive from stable, following a review of the
company's financial and operating performance.  At the same time,
the 'BB+' long-term corporate credit rating and the 'ruAA+' Russia
national scale rating were affirmed.

"The outlook revision reflects the company's continued volume
growth, long track record of operations alongside the dominant
state-controlled OAO Gazprom, flexible capital spending program,
and strong profitability," said Standard & Poor's credit analyst
Per Karlsson.

"It also reflects S&P's expectations that NOVATEK's financial
metrics will remain favorable, as well as the gradually improving
fundamentals of the Russian gas industry," Mr. Karlsson added.

The company's reported total debt as at March 31, 2009, stood at
Russian ruble (RUR) 30.8 billion.

In the past few quarters S&P has been positively surprised by
NOVATEK's continued year-on-year volume growth.  Although these
growth rates are lower than previously recorded, S&P notices a
clear difference with most other Russian gas producers, which have
been reporting shrinking volumes.

The outlook revision also reflects S&P's expectations that
NOVATEK's credit metrics will remain strong.  Although the company
plans capital spending of about RUR18 billion, after having
completed two large projects in the fourth quarter of 2008 (the
second phase of the Yurkharovskoye field and the second phase of
the Purovsky plant) S&P takes comfort from the fact that only a
small part of the spending program is now committed.  Although
capital spending may still be high, S&P expects that management
will act to ensure that net debt to EBITDA remains at about 1x
over the cycle.  No further major acquisition is expected
following the recent acquisition of a 51% stake in oil and gas
exploration and production company OAO Yamal LNG.

S&P views it as positive that NOVATEK continues to demonstrate its
ability to manage domestic gas industry risk, including very low
domestic gas prices (compared with international benchmarks) and
its operational dependence on Gazprom.  Although S&P continues to
view these risks as key rating constraints, NOVATEK has a long
track record without any operating setbacks.  In addition, S&P
views Gazprom's 19.4% ownership of NOVATEK as a strong mitigating
factor.  Gazprom is represented by two directors on NOVATEK's
board and has approved key strategic moves, such as the OAO Yamal
LNG stake acquisition.

The positive outlook reflects S&P's view that a one-notch upgrade
may be warranted in the short to medium term provided NOVATEK's
business model continues to enable the company to maintain its
volumes.  However, this would require NOVATEK to continue to
demonstrate a prudent financial policy, keeping net debt below
annual EBITDA and adjusting its capital expenditure accordingly.
S&P would also look for successful placement of the planned
US$300 million Russian ruble notes.


SOUVENIR OJSC: Creditors Must File Claims by July 19
----------------------------------------------------
Creditors of OJSC Souvenir (Metal Items Manufacturing Plant) have
until July 19, 2009, to submit proofs of claims to:

         V. Filippov
         Temporary Insolvency Manager
         Office 9
         Betankura Str. 2
         603086 Nizhny Novgorod
         Russia

The Arbitration Court of Nizhegorodskaya will convene at 9:00 a.m.
on Sept. 17, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?43–8205/2009 27–71.

The Debtor can be reached at:

         OJSC Souvenir
         Alleya Ilyicha 5
         Pavlovo
         Nizhegorodskaya
         Russia


URENSKIY PREPRODUCTION: Creditors Must File Claims by August 19
---------------------------------------------------------------
The Arbitration Court of Nizhegorodskaya commenced bankruptcy
proceedings against CJSC Urenskiy Preproduction Tractor Plant (TIN
5235004309) after finding the company insolvent.  The case is
docketed under Case No. ?43–32304/2008–36–276.

Creditors have until Aug. 19, 2009, to submit proofs of claims to:

         V. Talanov
         Insolvency Manager
         Revolutsii Sq. 7A
         603002 Nizhny Novgorod
         Russia

The Debtor can be reached at:

         CJSC Urenskiy Preproduction Tractor Plant
         Mekhanizatorov Str. 45
         Uren
         606800 Nizhegorodskaya
         Russia


VIMPELCOM-INVEST LLC: S&P Assigns 'BB+' Senior Unsecured Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB+' senior unsecured debt rating to the proposed Russian ruble
(RUR)-denominated fixed-rate bond to be issued by VimpelCom-Invest
(LLC) and fully guaranteed by Vimpel-Communications (JSC)
(BB+/Negative/--).

The bond issue, amounting to Russian ruble 10 billion
(US$310 million) for a period of five years, would carry a put
option.  The issue is not expected to bear financial covenants.
The proceeds are expected to be used to finance the company's
operations and refinance short-term debt in foreign currency.

"The bond is rated at the same level as the 'BB+' long-term
corporate credit rating on VimpelCom and at the same level as the
group's existing senior unsecured debt," said Standard & Poor's
credit analyst Alexander Griaznov.  "We believe that bondholders
will not be materially disadvantaged relative to existing senior
secured and unsecured debt at VimpelCom."

The rating on VimpelCom reflects S&P's view on its aggressive
growth orientation, reduced financial flexibility, and tightening
liquidity.  The rating is supported, in S&P's view, by VimpelCom's
sound market position and strong cash conversion.


VOLGA-DON LLC: Creditors Must File Claims by July 19
----------------------------------------------------
The Arbitration Court of Volgogradskaya commenced bankruptcy
proceedings against LLC Volga-Don-Kholod (TIN 3442059623)
(Refrigerating Equipment) after finding the company insolvent.
The case is docketed under Case No. ?12–5804/2009.

Creditors have until July 19, 2009 to submit proofs of claims to:

         Ye.Svateeva
         Insolvency Manager
         7-i Gvardeyskoy Str. 4A-207
         400005 Volgograd
         Russia

The Debtor can be reached at:

         LLC Volga-Don-Kholod
         Germana Titova Str. 44-7
         400123 Volgograd
         Russia


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


ISTRABENZ D.D.: Koper Court Cancels Bankruptcy Proceedings
----------------------------------------------------------
Colin Keatinge at Bloomberg News reports that Istrabenz d.d. said
in a statement to the Ljubljana stock exchange on July 3 that a
court in Koper cancelled bankruptcy proceedings filed by three
banks, including the Societe Generale SA unit in Slovenia, against
the company.

On April 2, 2009, the Troubled Company Reporter-Europe, citing
Reuters, reported that Istrabenz was forced into insolvency after
it failed to reach a deal with its creditors over its debt.
According to Reuters, Istrabenz and its affiliated firms owe some
EUR950 million or US$1.26 billion to 19 banks, including a number
of Austrian banks, namely Bank Austria, Bawag, Hypo Alpe Adria and
the Kaertner Sparkasse.  The company had EUR160 million in debts
due by the end of March, Reuters said citing local media reports.
Reuters disclosed the company posted a net loss of EUR220.8
million or US$294.2 million in 2008 as a result of falls in the
value of its capital investments.

Istrabenz dd -- http://www.istrabenz.si/-- is a Slovenia-based
holding responsible for the asset management and supervision of
the Istrabenz Group members.  The Company has developed
investments in the number of divisions: Energy, which covers the
gas business, production and distribution of energy, transshipment
and storage of oil derivatives; Tourism, which offers hotel,
catering, wellness and congress services; Investments, which deals
with advertising, financial services and technical consulting;
Food, which markets food products, and Information Technology that
provides information support to the companies of the Istrabenz
Group.  As of December 31, 2008 Istrabenz Group comprised 77
companies.  The Company operates a number of subsidiaries,
including wholly owned Istrabenz Turizem dd and Istrabenz Marina
Invest doo.


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


BILLBOX AG: Claims Filing Deadline is July 13
---------------------------------------------
Creditors of billBOX AG are requested to file their proofs of
claim by July 13, 2009, to:

         Fluetsch Treuhand
         7430 Thusis
         Switzerland

The company is currently undergoing liquidation in Lachen.  The
decision about liquidation was accepted at a general meeting held
on November 21, 2008.


DORF-METZG GMBH: Creditors Must File Claims by July 13
------------------------------------------------------
Creditors of Dorf-Metzg GmbH are requested to file their proofs of
claim by July 13, 2009, to:

         Dorf-Metzg GmbH
         Hegnaustrasse 4
         8602 Wangen
         Switzerland

The company is currently undergoing liquidation in Wangen –
Brüttisellen.  The decision about liquidation was accepted at a
shareholders' meeting held on March 16, 2009.


LABRUSA AG: Claims Filing Deadline is July 13
---------------------------------------------
Creditors of Labrusa AG are requested to file their proofs of
claim by July 13, 2009, to:

         Huesser Gmuer + Partner AG
         Tafernstrasse
         5405 Baden-Dattwil
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at a general meeting held
on May 5, 2009.


RESTAURANT WOKIN: Claims Filing Deadline is July 13
---------------------------------------------------
Creditors of Restaurant wokin GmbH are requested to file their
proofs of claim by July 13, 2009, to:

         Restaurant wokin GmbH
         Pilatusstrasse 1
         6003 Luzern
         Switzerland

The company is currently undergoing liquidation in Luzern.  The
decision about liquidation was accepted at a shareholders' meeting
held on April 27, 2009.


SECUREFW.NET GMBH: Claims Filing Deadline is July 13
----------------------------------------------------
Creditors of SecureFW.net GmbH are requested to file their proofs
of claim by July 13, 2009, to:

         Sandra Bender
         Dorfstrasse 142
         5465 Mellikon
         Switzerland

The company is currently undergoing liquidation in Mellikon.  The
decision about liquidation was accepted at a shareholders' meeting
held on October 15, 2008.


VAJABAU GMBH: Creditors Must File Claims by July 13
---------------------------------------------------
Creditors of VajaBau GmbH are requested to file their proofs of
claim by July 13, 2009, to:

         Juerg Utzinger
         Bahnhofstrasse 32
         9475 Sevelen
         Switzerland

The company is currently undergoing liquidation in Rothenbrunnen.
The decision about liquidation was accepted at a shareholders'
meeting held on December 12, 2008.


===========
T U R K E Y
===========


* TURKEY: Fitch Affirms Municipality of Bursa's Ratings at 'B+'
---------------------------------------------------------------
Fitch Ratings has affirmed the Turkish Metropolitan Municipality
of Bursa's Long-term foreign and local currency ratings at 'B+',
respectively, and its National Long-term rating at 'A+(tur)' with
Stable Outlooks.

The ratings reflect Bursa's continued sound operating performance
and overall expenditure flexibility, but also weakening fiscal
prospects in a challenging economic environment and moderate debt
burden.  Bursa's debt payback ratio (debt to current balance) was
3.5 years at end-2008, up from 2.3 years in 2007.  At end-2008,
72% of debt was denominated in foreign currency, mostly euros, and
had an extended maturity until 2028, which nevertheless has
created significant foreign exchange risk as the exposure is not
hedged.

The local economy's profile is above the national average, and
Bursa has further diversified its revenue sources in terms of the
sectors and markets in which it has a presence.  However, local
economic activity is concentrated in industry, especially the
automotive sector, which is operating in difficult conditions amid
the global economic downturn.  Although operating margins are
expected to deteriorate somewhat in 2009 given the weak economic
situation, Fitch expects margins to exceed 40% in the medium term.

Bursa is located in northwest Turkey and is among the largest of
the country's 16 metropolitan areas.  It has a population of about
2.8 million and accounts for about 4% of national gross domestic
product.  The municipal administration's main responsibilities are
investment driven, primarily in transport infrastructure.


* TURKEY: Fitch Affirms Municipality of Izmir's Ratings at 'BB-'
----------------------------------------------------------------
Fitch Ratings has affirmed the Turkish Metropolitan Municipality
of Izmir's Long-term foreign and local currency
ratings at 'BB-', respectively, and its National Long-term rating
at 'AA-(tur)'.  The Outlooks on all of the ratings are Stable.

The ratings reflect above-average wealth indicators, moderate
borrowing and financial flexibility, but also high capital
spending requirements and significant overall risk.  Izmir has had
a strong operating performance in recent years.  Its operating
margin was more than 60% in three of the past five years.  With
the forecast weakening of operating revenue and expected rigidity
of operating expenditure, operating margins are expected to
deteriorate to low 40% levels before recovering to about 50% by
2011.

Overall public sector debt rises significantly compared with the
municipality's direct debt when other Fitch-classified debt
related to a rescheduling of Treasury liabilities is included.
Although high in nominal terms, Izmir's net overall risk is still
modest in relation to the saving capacity of the administration,
as it could have been repaid in just 1.4 years of the
municipality's current balance in 2008 if no investments had been
made.  The city's economy, which is focused on foreign trade and
tourism, is estimated to have been negatively affected by the
current global economic downturn, although this is compensated for
by the diversified nature of its economic activity.

Izmir is located on Turkey's west coast and is the country's
third-largest city.  It has a population of about 3.3 million.
The municipal administration's main responsibilities are
investment driven, primarily in relation to infrastructure.  It
also provides metropolitan services such as public transport, fire
protection and social projects.


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


SIMFERON LLC: Creditors Must File Claims by July 15
----------------------------------------------------
Creditors of LLC Simferon (code EDRPOU 36088184) have until
July 15, 2009, to submit proofs of claim to:

         LLC Amett
         Insolvency Manager
         Kikvidze Str. 12
         01103 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on June 4, 2009.  The case is docketed under
Case No. 44/275-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Simferon
         Kikvidze Str. 12
         01103 Kiev
         Ukraine


VENETEKS LLC: Creditors Must File Claims by July 15
---------------------------------------------------
Creditors of LLC Veneteks (code EDRPOU 22924704) have until July
15, 2009, to submit proofs of claim to:

         V. Varakina
         Insolvency Manager
         Balochnaya Str. 3
         Makeyevka
         Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company on June 2, 2009.  The case is docketed under
Case No. 5/57B.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Veneteks
         Office 8
         Poleglikh Kommunarov Str. 76
         83014 Donetsk
         Ukraine


TECHNO-SYSTEMS LLC: Creditors Must File Claims by July 15
---------------------------------------------------------
Creditors of LLC Techno-Systems (code EDRPOU 35370742) have until
July 15, 2009, to submit proofs of claim to:

         LLC Amett
         Insolvency Manager
         Kikvidze Str. 12
         01103 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on June 4, 2009.  The case is docketed under
Case No. 44/276-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Techno-Systems
         Kikvidze str. 18
         01103 Kiev
         Ukraine


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


ASHFORD CONSTRUCTION: In Administration; 48 Jobs Affected
---------------------------------------------------------
Nick Huber at Construction News reports that Ashford Construction
Plc has gone into administration, resulting in the loss of 48 out
of 51 jobs at the company.

Construction News relates accounting firm BDO Stoy Hayward said it
was appointed administrator of Ashford late Friday afternoon.

"It is unfortunate that due to very tough conditions in the
construction market we have had to make a number of redundancies.
We will be liaising with customers concerning the position for
contracts in progress," Construction News quoted Jo Wright,
business restructuring partner at BDO, as saying.

Ashford Construction Plc -- http://www.ashfordconstruction.net/--
is a building contractor based in Birmingham.


BNB RECRUITING: Former Workers Mull Legal Action Over Pay Issues
----------------------------------------------------------------
Jane Bradley at The Scotsman reports that 40 former workers of
advertising and marketing agency Barkers Scotland are planning to
take legal action against the company, claiming they were made
redundant when talks were already ongoing between the
administrator and new owner Penna Consulting about the break-up of
the firm.

The Scotsman says the timing of the administration meant workers
were left without redundancy pay.

As reported in the Troubled Company Reporter-Europe on July 1,
2009, The Scotsman disclosed BNB Recruitment Solutions, the parent
company of Barkers went into administration, resulting in the loss
of around 50 jobs.  HR consultancy firm Penna bought Barkers from
the administrator for GBP8.6 million, the report said.  Barkers,
the report said, was bought up by Penna due to what its new owner
described as "excessive debt" and "onerous leases".  The company
now trades as Penna Barkers, the report noted.

BNB -- http://www.bnb.co.uk/-- is a specialist provider of
Recruitment Solutions and Outsourcing Solutions in the UK and
Recruitment Consultancy in Asia.


CENTREREED LTD: Goes Into Administration
----------------------------------------
Tim Sheahan at printweek.com reports that printers Centrereed and
sister company Duffields Business Forms have gone into
administration, resulting in the loss of 100 jobs.

The report relates Christopher Brown and Andrew Maybery of Hart
Shaw were appointed to Rotherham-based Centrereed on June 11 to
place the company into administration.  Hart Shaw, the report
notes, is also handling the administration of Duffields Business
Forms, which employed 50 staff.

According to the report, Mr. Brown said Centereed, which generated
turnover between GBP3.5 and GBP4 million, ran out of cash and
could no longer borrow.  The administrators were now looking at an
asset sale for the Centrereed's site and equipment in September,
the report says citing Mr. Brown.  Huthwaite, Nottinghamshire-
based Duffields Business Forms is also set for an asset sale later
this year unless a potential buyer comes forward, the report
states.


CLARIS LIMITED: Moody's Cuts Rating on EUR5 Mil. CDS to 'Ba2'
-------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of two
classes of notes issued by Claris Limited and one CDS entered into
Societe Generale.

The transaction is a synthetic resecuritization of European ABS.
The rating action is a response to the rating migration of the
reference portfolio.  This affects the rating of the notes as the
tranche subordination is about 1.3% for series 110 and it is 0%
for all the others tranches.

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

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

The rating action is:

Claris Limited:

(1) EUR21,000,000 Series 88/2007 - Millesime 2007-2 Synthetic CDO
    of ABS Floating Rate Notes due 2037

  -- Current Rating: Ba2

  -- Prior Rating: Baa3

  -- Prior Rating Date: 11 March 2009, downgraded to Baa3 from ]
     Baa2 under review for possible downgrade

(2) EUR43,000,000 Series 89/2007 - Millesime 2007-2 Synthetic CDO
    of ABS Floating Rate Notes due 2037

  -- Current Rating: A2

  -- Prior Rating: A1

  -- Prior Rating Date: 11 March 2009, downgraded to A1 from Aa3
     under review for possible downgrade

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

  -- Current Rating: Ba2

  -- Prior Rating: Baa3

  -- Prior Rating Date: 23 April 2009, downgraded to Baa3 from
     Baa2 under review for possible downgrade


COFEEE REPUBLIC: In Administration; KPMG Appointed
--------------------------------------------------
Richard Hill and David Crawshaw of KPMG Restructuring have been
appointed joint administrators of coffee bar and deli chains
Coffee Republic (UK) Ltd, Coffee Republic Franchising Ltd and
Goodbean Ltd.

There are 187 Coffee Republic branded outlets in the UK and ten
international locations.  Twenty outlets are owned by Coffee
Republic (UK) Ltd and are in administration while the 70 outlets
franchised through Coffee Republic Franchising Ltd and further 97
concessions, operating within cinemas, retail outlets and hotels
throughout the UK, are not in administration.

The group employs a total of 153 staff, 26 of whom are located in
its head office in London and 127 employed within the 20
group-operated outlets.  The administrators are assessing the
viability of individual outlets and expect to close the loss
making outlets with inevitable job losses.

Coffee Republic was founded in 1995, opening its first shop in
South Molton Street, London, and has become one of the UK best
known coffee chains.  The holding company Coffee Republic plc --
which is not in administration -- entered AIM in 1998 and during
the past seven years the group has expanded significantly, signing
its first franchising agreement in 2005 and making a number of
acquisitions including the Goodbean chain.

Commenting on the appointment, Richard Hill, KPMG partner and
joint administrator said: "The recession is hitting discretionary
spending on the High Street and some of the less profitable bars
with expensive leases have suffered.  However, Coffee Republic has
a strong brand and I expect considerable interest in the
profitable parts of the business.  We will be doing whatever we
can to find a buyer for the residual business as a going concern
as quickly as possible, so interested parties will have to be
prepared to move fast."


DUFFIELDS BUSINESS: In Administration; 50 Jobs Affected
-------------------------------------------------------
Tim Sheahan at printweek.com reports that Centrereed and sister
company Duffields Business Forms have gone into administration,
resulting in the loss of 100 jobs.

The report relates Christopher Brown and Andrew Maybery of Hart
Shaw were appointed to Rotherham-based Centrereed on June 11 to
place the company into administration.  Hart Shaw, the report
notes, is also handling the administration of Duffields Business
Forms, which employed 50 staff.

According to the report, Mr. Brown said Centereed, which generated
turnover between GBP3.5 and GBP4 million, ran out of cash and
could no longer borrow.  The administrators were now looking at an
asset sale for the Centrereed's site and equipment in September,
the report says citing Mr. Brown.  Huthwaite, Nottinghamshire-
based Duffields Business Forms is also set for an asset sale later
this year unless a potential buyer comes forward, the report
states.


FOUR SEASONS: Sale Likely After Creditors Turn Down Rescue Deal
---------------------------------------------------------------
Tom Bawden at Times Online reports that Four Seasons Health Care
Group is to be sold off for between GBP700 million and GBP900
million after the company was unable to agree a debt-for-equity
rescue deal with its creditors.

Times Online relates the group's creditors, which include Royal
Bank of Scotland, Nationwide and Fortis, had been given until
Monday night to agree to write-off about half of Four Season's
GBP1.5 billion of debts in return for a 50 percent equity stake.
Hatfield Philips International, a so-called special servicer that
represents the creditors, as cited by Times Online, said: "The
special servicer has confirmed that it did not receive all the
requisite formal consents to implement the proposal by July 6,
2009.  Accordingly, the special servicer will now focus its
attention on pursuing an orderly and well-managed sale of the
Group, acting in accordance with its duties under the servicing
agreement."

According to Times Online, analysts expect the group to be
formally put up for sale at the end of this week or the beginning
of next week.

Four Seasons Health Care Group -- http://www.fshc.co.uk-- is one
of the largest care home (nursing home) operators in the UK.  The
company runs some 300 nursing homes, and its Huntercombe division
operates about eight specialized health care centers (which
provide mental health and rehabilitation services) in England,
Scotland, North Ireland, and the Isle of Man.  Allianz Capital
Partners, the private equity arm of Allianz Group, acquired the
company from Alchemy Partners for GBP775 million in 2004.


LIMCOMBE HALL: Goes Into Administration
----------------------------------------
Herald Express reports that Lincombe Hall Hotel in Torquay has
gone into administration.

According to the report, the three-star hotel and its parent
company Torbay Hotels Limited will continue to run as normal under
the supervision of Simon Thomas, a partner at RSM Bentley Jennison
the administrators appointed by Abbey National PLC on July 1 to
handle the hotel's administration.

The report says it is hoped a new buyer can be found quickly for
the hotel, which was valued at GBP2.6 million in May last year.
"We are optimistic there will be lots of interest and we are
looking for a quick sale of the business," the report quoted
Mr. Thomas as saying.

The report discloses Peter Brunt, from Colliers Robert Barry the
agents appointed by the administrators to handle the sale of the
hotel, said he and a colleague from their Plymouth office would
visit the hotel this week to make a valuation.


NORTHERN ROCK: Granite to Pay Bond Debt; Gov't Faces Bigger Losses
------------------------------------------------------------------
Elena Moya at guardian.co.uk reports that Granite, the vehicle
that packaged some of Northern Rock plc's mortgages to sell them
on to other investors in a process known as securitization, is
being forced to pay back holders of about GBP26 billion of debt
first after a breach of contract in November.

The report relates that in November, the government decided to
wind down Granite to reduce its lending book.  According to the
report, that move reduced the flow of mortgages from Northern Rock
to Granite, triggering the breach in Granite's contract terms and
forcing it to accelerate repayments of about GBP30 billion of
debts to noteholders.  The report discloses Granite is losing
about GBP12 million a month from loan defaults, delays or
repossessed houses being sold below their expected value.

The report says the government would get a bigger share of
potential losses in the future as Northern Rock will own a bigger
stake in the unit once noteholders have been paid off.

                       About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                          *     *     *

The Troubled Company Reporter-Europe reported on June 15, 2009,
that Fitch Ratings revised the Rating Watch on Northern Rock's
Long-term Issuer Default Rating of 'A-' to Evolving from Positive.
The agency simultaneously affirmed NR's Short-term IDR at
'F1+' and the Individual Rating at 'F'.  Fitch placed the
Support Rating of '1' on Rating Watch Negative.

As reported in the Troubled Company Reporter on April 2, 2009,
Moody's Investors Service downgraded to E from E+ Northern Rock's
Bank Financial Strength Rating.  The E BFSR maps into a Baseline
Credit Assessment of Caa1.  The bank's dated and undated hybrid
subordinated debts were also downgraded to Ca from B1 and B3,
respectively.  The outlook on the subordinated instruments is
negative.  The senior long term and short term ratings of A2/P-1
were affirmed with a developing outlook.


PRINCIPALITY BUILDING: Moody's Confirms Rating on Mortgage Bonds
----------------------------------------------------------------
Moody's has confirmed the Aaa long-term rating of the mortgage
covered bonds issued by Principality Building Society (the Issuer;
Baa2/Prime-2/D-) under its Covered Bond Programme.  This concludes
the review for downgrade which was initiated on April 16, 2009.

The Covered Bonds constitute direct, unconditional and senior
obligations of PBS and are secured by a pool of assets (the Cover
Pool).

PBS has incorporated several amendments to the structure,
including changing the notes to full pass-through redemption and
mandating external parties as standby Cash Manager and standby
Servicer.

While PBS will continue to serve as Cash Manager and Servicer of
transaction, HML has been mandated as standby Servicer.  HML will
take over the servicing of the Cover Pool in case PBS is
downgraded below Baa3.  Similarly, Citibank N.A. (acting through
its London branch) has been mandated as standby Cash Manager, and
will take over the cash management of the transaction if the same
rating trigger is breached.

Moody's notes that as the swap agreements with PBS already benefit
from a back-up swap provider, PBS's downgrade did not trigger any
change in the hedging agreements.

As a result of the amendments, the TPI assigned to this
transaction has been increased to "Very High" from "Probable-
High".  At the issuer's current rating level the TPI does not
constrain the Covered Bonds' rating.

The rating assigned by Moody's addresses the expected loss posed
to investors.  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 and/or
payments to investors.

Principality Building Society, headquartered in Cardiff, Wales, is
United Kingdom's 9th largest building society with assets of
GBP6.4 billion as at December 31, 2008.


RESLOC UK: S&P Affirms Ratings on Two Classes of Notes at 'CCC'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on five
classes of notes issued by ResLoc U.K. 2007-1 PLC.  At the same
time, S&P removed four of these classes from CreditWatch negative
and affirmed S&P's ratings on the remaining classes.

The transaction's losses and loss severities continue to increase.
Losses in the quarter to June 2009 were GBP4.22 million, with
cumulative losses currently 1.33% of the initial balance.  These
losses have led to a further reserve fund draw of GBP2.25 million,
leaving the reserve fund at 24.06% of its required amount and the
class E1b notes with credit enhancement of 0.47%.  S&P believes
the probability of default has increased for the class E1b notes
after another reserve fund draw and have lowered S&P's rating.
The loss severity increased to 37.24% in June from 32.31% in
March.

House price declines coupled with increasing arrears have
increased S&P's weighted-average foreclosure frequency and
weighted-average loss severity numbers.  Therefore, according to
S&P's cash flow analysis, the class C1a, C1b, D1a, D1b, and E1b
notes were unable to maintain their current ratings and S&P has
lowered them accordingly.

S&P will continue to monitor the performance of the transaction
and any movements in house prices over the coming months.

                           Ratings List

                     ResLoC U.K. 2007-1 PLC
      EUR395.5 Million, GBP485.8 Million, and US$303.7 Million
                Mortgage-Backed Floating-Rate Notes

                         Ratings Lowered

                                   Rating
                                   ------
               Class      To                    From
               -----      --                    ----
               E1b        B-                    B

      Ratings Lowered and Removed From CreditWatch Negative

                              Rating
                              ------
          Class      To                    From
          -----      --                    ----
          C1a        A-                    A/Watch Neg
          C1b        A-                    A/Watch Neg
          D1a        B+                    BB/Watch Neg
          D1b        B+                    BB/Watch Neg

                        Ratings Affirmed

                        Class      Rating
                        -----      ------
                        A2a        AAA
                        A2b        AAA
                        A2c        AAA
                        A3a        AAA
                        A3b        AAA
                        A3c        AAA
                        M1a        AAA
                        M1b        AAA
                        B1a        AA
                        B1b        AA
                        E2b        CCC
                        F1b        CCC
                        MERCs      AAA


* 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.

                            *********


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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