TCREUR_Public/090729.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, July 29, 2009, Vol. 10, No. 148

                            Headlines

F R A N C E

CHRISTIAN LARCOIX: Borlettis Will Bid for Firm


G E O R G I A

METROMEDIA INT'L: Creditors Committee Wants Ch. 11 Trustee


G E R M A N Y

ARCANDOR AG: To Sell Thomas Cook Shares in Single Package
CONTINENTAL AG: Should Raise Funds & Halt Merger Talks, Banks Say
GENERAL MOTORS: Opel Workers Prefer Magna, Want Say in Buyout Deal
LEAR CORP: Canada Units Obtain CCAA Stay Order
WOOLWORTH GMBH: Plans to Close Zeil and Kids Stores


H U N G A R Y

DATESZ: Hungarian Gov't. Prepares HUF600MM Rescue Package


I C E L A N D

BAUGUR GROUP: Has US$760-Mln Debt to Landsbanki and Kaupthing
GLITNIR BANKI: Creditors Must File Claims by November 26
KAUPTHING BANK: Baugur Defaulted on US$381 Million Debt
LANDSBANKI ISLANDS: Baugur Defaulted on US$381 Million Debt

* ICELAND: Company Bankruptcies Increase to 95 in June 2009


I R E L A N D

CORK CITY INVESTMENT: High Court Issues Winding-Up Order
EURO ATLANTIS: Moody's Junks Ratings on Two Classes of Notes
STARTS PLC: S&P Junks Rating on Series 2007-11 Notes
VEGA CONTAINERVESSEL: Moody's Cuts Rating on Class A Notes to Ba1


I T A L Y

IT HOLDING: Ittierre Unit Inks Five-Year Deal with Galliano
ITTIERRE SPA: Signs Five-Year Deal with John Galliano
PARMALAT SPA: BofA to Pay US$100MM to Settle 2004 Lawsuit
PARMALAT SPA: Completes Acquisition of National Foods' Milk Assets
RISANAMENTO SPA: Board Okays EUR150 Million Cash Injection Plan

SAFILO SPA: Says Funds Pull Out From Talks Without Making Offers


L U X E M B O U R G

GELDILUX-TS-2007 SA: S&P Keeps Four Low-B Rated Notes on Watch Neg


N E T H E R L A N D S

LYONDELLBASELL: Names Kent Potter as CFO
NXP BV: S&P Raises Ratings on Senior Unsecured Notes to 'CC'


R O M A N I A

BANCA TRANSILVANIA: National Bank Mulls Acquisition, Ziarul Says


R U S S I A

* Russia Mulling Bankruptcy Reform to Aid Companies


S E R B I A   &   M O N T E N E G R O

BRATSTVO: On the Brink of Bankruptcy


S L O V E N I A

ABANKA VIPA: Fitch Affirms 'BB+' Rating on Capital Instruments


S P A I N

J.L. FRENCH: Files Schedules of Assets and Liabilities in U.S.


U K R A I N E

ZAT AKB: Central Bank Starts Liquidation Proceedings


U N I T E D   K I N G D O M

ADJAYE ASSOCIATES: Enters Into CVA to Avert Insolvency
BRADFORD & BINGLEY: Credit-Default Swaps to Be Settled on July 30
BRENTWOOD HOTELS: Goes Into Administration
CONCEPT DEVELOPMENT: Goes Into Administration; 31 Jobs Affected
ELEMENTARY PROPERTY: In Receivership; Deloitte Appointed

ENTERPRISE INNS: Moody's Affirms 'Ba3' Corporate Family Rating
EUROHOME UK 2007-1: Fitch Junks Ratings on Two Tranches
EUROHOME UK 2007-2: Fitch Cuts Ratings on Class C Tranche to 'C'
GREAT HALL: Fitch Lowers Ratings on Two Tranches to 'CC'
HORNSEA ESTATES: Deloitte Appointed as Administrators

INMARSAT HOLDINGS: S&P Raises Corporate Credit Rating to 'BB+'
MBM PRODUCE: Goes Into Administration; 84 Jobs Affected
MCMENEMY HILL: In Liquidation; B&C Associates Appointed
LEHMAN BROTHERS: Subordination of Rights Valid Under English Law
NORTEL NETWORKS: Gets Canadian and U.S. Court OK on Ericsson Deal


X X X X X X X X

* Last Week's 3 Defaults Raise S&P Tally to 184
* Weakest Links Ease to 285 as Defaults Mount, S&P Article Says


                         *********



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F R A N C E
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CHRISTIAN LARCOIX: Borlettis Will Bid for Firm
----------------------------------------------
The Borletti family will compete against Bernard Krief Consulting
and two undisclosed investors in bidding for Christian Lacroix
SNC, Ladka Bauerova at Bloomberg News reports, citing judicial
administrator Regis Valliot, who is in charge of evaluating bids
for the Company.

According to Bloomberg, Mr. Valliot said the Borlettis want to
keep 49 of Christian Lacroix's 125 workers if the Paris business
court accepts their bid.

Mr. Valliot, Bloomberg relates, described the Borletti proposal as
"serious", while saying that Bernard Krief's offer was
"disappointing".  Bernard Krief said on July 25 that it would
invest up to EUR15 million and keep at least half of Christian
Lacroix's employees.  Citing Mr. Valliot, Bloomberg states that
the other two offers were "not serious".

Mr. Valliot said that the business court will accept a bid or rule
to liquidate Christian Lacroix by September, at the earliest.

Christian Lacroix SNC is a French haute couture, luxury ready-to-
wear, cosmetics and fragrance house.

On June 4, 2009, the Troubled Company Reporter-Europe, citing AFP,
reported a commercial court in Paris placed Christian Lacroix SNC
into administration.  AFP said the company declared insolvency in
May, blaming "the sharp downturn of the luxury market."


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


METROMEDIA INT'L: Creditors Committee Wants Ch. 11 Trustee
----------------------------------------------------------
The official committee of unsecured creditors in MIG Inc.'s
Chapter 11 case asks the Bankruptcy Court to appoint a Chapter 11
trustee or dismiss the case.

According to Bill Rochelle at Bloomberg News, the Creditors
Committee is arguing that the Chapter 11 case is being used "for
the naked purpose" of obtaining a stay of a US$188 million
judgment from the Delaware Chancery Court resulting from an
appraisal action following MIG's acquisition in 2007.  The
Committee also contends that MIG had US$40 million transferred to
the account of a non-bankrupt subsidiary in advance of the Chapter
11 filing.  Some of the information in the committee's motion has
been redacted from the publicly available copy of the papers.

The Court will convene a hearing to consider the Chapter 11
trustee request on August 21.

As reported by the TCR on July 3, Judge Kevin Gross of the U.S.
Bankruptcy Court for the District of Delaware allowed MIG Inc. to
continue an appeal of a decision in bankruptcy court that issued a
US$188.4 million judgment against the Company.

MIG was bought in October 2007 by CaucusCom Ventures LP for
US$1.80 a share, or about US$170 million, according to data
compiled by Bloomberg.  A group of preferred shareholders asked
Judge William B. Chandler of the Delaware Chancery Court to
evaluate the value of their shares at the time of the merger.
Judge Chandler ruled that each share was worth US$47.47, or a
total of about US$188.4 million.  MIG appealed the ruling.  But
unable to post a bond enabling an appeal, MIG filed for Chapter
11.

MIG asked the Bankruptcy Court to permit the appeal and to allow
the plaintiff to take a cross appeal, while preventing the
plaintiff from collecting a judgment.  MIG believes the amount of
the judgment is "substantially overstated."  MIG also believes
that the assets will turn out to be worth much more than the
judgment, even though the assets currently are illiquid.

                          About MIG Inc.

Based in Charlotte, North Carolina, MIG Inc. (PINK SHEETS: MTRM,
MTRMP) -- http://www.metromedia-group.com/-- through its wholly
owned subsidiaries, owns interests in several communications
businesses in the country of Georgia.  The company's core
businesses include Magticom Ltd., a mobile telephony operator
located in Tbilisi, Georgia, Telecom Georgia, a long distance
telephony operator, and Telenet, which provides Internet access,
data communications, voice telephony and international access
services.

MIG, Inc., fka Metromedia International Group, Inc., filed for
Chapter 11 bankruptcy protection on June 18, 2009 (Bankr. D. Del.
Case No. 09-12118).  Scott D. Cousins, Esq., at Greenberg Traurig
LLP assists the Company in its restructuring efforts.  Debevoise &
Plimpton LLP is the Company's special corporate counsel, while
Potter Anderson & Corroon LLP is the Company's special litigation
counsel.  The official committee of unsecured creditors of MIG,
Inc., has retained Baker & McKenzie LLP as its bankruptcy
counsel, nunc pro tunc to June 30, 2009.

In its petition, the Company said it had US$100 million to US$500
million in assets and US$100 million to US$500 million in debts.
In its formal schedules, the Company said it had assets of
US$54,820,681 against debts of US$210,183,657.


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G E R M A N Y
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ARCANDOR AG: To Sell Thomas Cook Shares in Single Package
---------------------------------------------------------
Holger Elfes at Bloomberg News reports that Arcandor AG is
proposing the sale of its Thomas Cook Group Plc shares in a single
package.

Bloomberg relates company spokesman Gerd Koslowski said in a
telephone interview on Friday that a creditors' decision is
expected at a meeting on Aug. 10

On July 23, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg, reported that Arcandor's 53% stake in Thomas
Cook has a market value of about GBP958 million (US$1.57 billion),
based on the closing share price on July 20.

                         About Arcandor AG

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

As previously reported in the Troubled Company Reporter-Europe, on
June 9, 2009, Arcandor filed for bankruptcy protection after the
German government turned down its request for loan guarantees.  On
June 8, 2009, the government rejected two applications for help by
the company, which employs 43,000 people.  The retailer sought
loan guarantees of EUR650 million (US$904 million) from Germany's
Economy Fund program as debt came due this week.  It also sought a
further EUR437 million from a state-owned bank.


CONTINENTAL AG: Should Raise Funds & Halt Merger Talks, Banks Say
-----------------------------------------------------------------
Daniel Schafer at The Financial Times reports that Continental
AG's banks want management to stop merger talks with rival
Schaeffler AG and to dilute the controlling shareholder through a
capital raising.

Citing people close the banks, a steering committee of four
leading Conti banks had called on Karl-Thomas Neumann, Conti's
chief executive, to aim for a capital boost as a precondition for
a refinancing of the car parts supplier's large debt.
Mr. Neumann, the FT discloses, will propose at a supervisory board
meeting tomorrow, July 30, a capital increase of at least EUR1
billion (US$1.43 billion) to help pay down debt.  The FT says the
steering committee -- led by BNP Paribas, Barclays, Calyon and ING
and supported by more than half of Conti's banks -- promised to
negotiate quickly a refinancing if Conti was to increase its
capital.

Conti, the FT states, is ailing from a net debt of EUR11 billion
and came close to breaking its debt covenants at the end of June.
The company has EUR3.5 billion of debt maturing in August 2010,
the FT notes.

                       About Continental AG

Hanover, Germany-based Continental AG (OTC:CTTAY) --
http://www.conti-online.com/-- is an automotive industry
supplier.  The Company focuses its activities on the development,
production and distribution of products that improve driving
safety, driving dynamics and ride comfort.  It operates in six
divisions.  Chassis and Safety provides active and passive driving
safety, safety and chassis sensor systems, as well as chassis
components.  Powertrain focuses on engine systems, hybrid electric
drives, injection technology, and sensors and actuators, among
others.  Interior manufactures information management modules and
wireless mobile devices.  Passenger and Light Truck Tires provides
tires for passenger cars, motorcycles and bicycles. Commercial
Vehicle Tires offers tires for trucks, as well as industrial and
off-the-road vehicles.  ContiTech specializes in the rubber and
plastics technology, offering parts, components and systems for
the automotive industry and other sectors.  In January 2009,
Schaeffler KG acquired 49.9% interest in the Company.

                           *     *     *

On June 12, 2009, the Troubled Company Reporter-Europe reported
that, Standard & Poor's Ratings Services said it placed its 'BB'
long-term corporate credit rating on German automotive supplier
Continental AG on CreditWatch with negative implications.
At the same time, the 'B' short-term rating was affirmed.

As reported in the Troubled Company Reporter-Europe on June 4,
2009, Moody's Investors Service downgraded Continental AG's
corporate family rating to Ba3 from Ba2.  Moody's said the outlook
remains negative.


GENERAL MOTORS: Opel Workers Prefer Magna, Want Say in Buyout Deal
----------------------------------------------------------------
Workers at General Motors Co.'s Opel unit prefer Magna
International Inc.'s takeover offer and said they won't contribute
to the carmaker's rescue unless they have a say in decisions about
the unit's fate, Chris Reiter at Bloomberg News reports.

The GM division's survival plan asks for employees to contribute
EUR1.25 billion (US$1.78 billion) to EUR1.5 billion between 2010
and 2014, more than any investor intends to commit, Opel's works
council and the IG Metall labor union said in a joint statement
obtained by the news agency.  "The worker representatives and IG
Metall will therefore not contribute to the company without
participation in the decision process," they said.

According to Bloomberg News, Opel workers said Magna's bid comes
"closer" to meeting their demands, which include independence from
GM, a stake in Opel and no factory closures.

As reported in the Troubled Company Europe on July 28, 2009,
Bloomberg News said the trust that controls Opel unit said it
hasn't yet made a preliminary decision on the two bids for the
carmaker.  The report related GM's 13-member board, which include
TPG Capital LP founder David Bonderman and Carlyle Group's Daniel
Akerson, will review bids for the Opel brand as part of its first
meeting starting Aug. 3. Citing people familiar with the planning,
Bloomberg disclosed the discussion topics will include asset
sales, committee assignments and a product overview.

                      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 counsel.

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.

General Motors changed its name to Motors Liquidation Co.
following the sale of its key assets to a company 60.8% owned by
the U.S. Government.

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)


LEAR CORP: Canada Units Obtain CCAA Stay Order
----------------------------------------------
The Honorable Madam Justice Sarah Pepall of the Ontario Superior
Court of Justice, Commercial List, has recognized the proceedings
commenced by Lear Canada, Lear Canada Investments Ltd., Lear
Canada Corporation Ltd., and the non-Canadian applicants as a
"foreign proceeding" as defined in Subsection 18.6.1 of the
Companies' Creditors Arrangement Act.  The Canadian Court also
recognized all the Orders entered by the U.S. Bankruptcy Court
for the Southern District of New York.

Madam Justice Pepall stayed all proceedings, actions and suits
against the Applicants or their property through August 7, 2009.
During the Stay Period, the Canadian Court prohibits all persons
from discontinuing, altering, interfering with, repudiating,
ceasing to perform any right, renewal right, contract agreement,
license or permit in favor of the Applicants, except with the
written consent of the Applicants, or leave of the Canadian
Court.

The lending institutions led by J.P. Morgan Chase Bank N.A.,
acting as general administrative agent under the Credit
Agreement, will not be obligated to advance or re-advance any
amount or otherwise extend any credit to the Applicants under the
Credit Agreement.

Moreover, Madam Justice Pepall prohibits the Canadian Applicants
from:

  * making any advances or transfers of funds to any of the
    Applicants or any of their affiliates by way of loan or
    otherwise except that the Canadian Applicants may pay for
    goods or services in the ordinary course of business and in
    accordance with existing practices;

  * granting security or otherwise encumber or release the
    Property, including by way of incurring indebtedness to
    other Applicants as permitted by the Cash Management Order,
    except in respect of the purchase of goods or services in
    the ordinary course of business and in accordance with
    existing practices; and

  * paying current service and special payments as required
    under the Pension Benefits Act in respect of its facilities
    at Ajax, St., Thomas, Kitchener and Whitby and its former
    facilities at Maple.

The Canadian Court held that during the Stay Period, no
proceeding may be commenced or continued against any of the
former, current or future directors or officers of the Canadian
Applicants with respect to any claim that arose before July 9,
2009 and that relates to any obligations of the Canadian
Applicants whereby the directors or officers are alleged under
any law to be liable in their capacity as directors or officers
for the payment or performance of those obligations, until the
later of the termination of the CCAA proceeding or the U.S.
Proceedings, or until further order of the Canadian Court.

Madam Justice Pepall has directed the Canadian Applicants to
indemnify their directors and officers from all claims, costs,
charges and expenses in respect of any liabilities and
obligations that arise or are incurred, after July 9, 2009, in
relation to their capacities as directors.  The directors and
officers of the Canadian Applicants are granted a charge on the
Property, which charge will not exceed US$9,000,000, as security
for the indemnity.

The Canadian Court also appointed RSM Richter Inc., as the
Canadian Applicants' information officer.

RSM Richter, counsel to RSM Richter and Canadian Applicants'
counsel to the Applicants will be paid by the Applicants as part
of the costs of the CCAA proceeding on a monthly basis.  The
Information Officer, counsel to the Information Officer and the
Applicants' Canadian counsel are granted a charge on the
Property, which charge will not exceed US$750,000 as security for
their professional fees and disbursements incurred at normal
rates and charges.

Furthermore, the Canadian Court authorized the Applicants to
retain McCarthy Tetrault LLP as their counsel.

Lear Canada Investments Ltd., Lear Corporation Canada Ltd., are
each wholly-owned indirect subsidiaries of Lear Corporation.
Both Lear Canada Investments and Lear Corporation Canada are
corporations incorporated pursuant to the laws of Alberta.

As of May 31, 2009, Lear Canada had total liabilities of
US$54,000,000.  The May Financials show that for the year to date
in 2009, Lear Canada has a net loss of US$66,000,000 on total
sales of about US$115,000,000.  Lear Canada's balance sheet
includes an intercompany loan payable to Lear Canada by its parent
Lear Corporation of approximately US$82,000,000 as of May 31,
2009.

Due to the integration of Lear's North American operations and
the commencement of the U.S. Proceedings, the Applicants believe
it is necessary to obtain recognition of the US Proceedings as
Foreign Proceedings in Canada.

                         About Lear Corp.

Lear Corporation -- http://www.lear.com/-- is one of the world's
leading suppliers of automotive seating systems, electrical
distribution systems and electronic products.  The Company's
products are designed, engineered and manufactured by a diverse
team of 80,000 employees at 210 facilities in 36 countries.
Lear's headquarters are in Southfield, Michigan, and Lear is
traded on the New York Stock Exchange under the symbol [LEA].
Outside the United States, Lear has subsidiaries in Germany,
Luxembourg, Sweden, Singapore, China, India and Mexico, among
others.

Lear Corporation and its affiliates filed for Chapter 11 on
July 7, 2009 (Bankr. S.D.N.Y. Case No. 09-14326).  Affiliates part
of the Chapter 11 filing include Lear South Africa Limited, Lear
Corporation (Germany) Ltd., Lear Corporation Canada Ltd., Lear
Mexican Holdings Corporation, and Lear South American Holdings
Corporation.

Attorneys at Kirkland & Ellis LLP, serve as the Debtors'
bankruptcy counsel.  McCarthy Tetrault LLP has been engaged as
CCAA counsel.  Bodman LLP has been hired as special Michigan
counsel.  Winston & Strawn LLP and Brooks Kushman P.C. have also
been tappes as special counsel.  Alvarez & Marsal North America
LLC, is the Debtors' restrcturing advisors.  Ernst & Young LLP is
the Debtors' auditors and tax advisors.  Kurtzman Carson
Consultants LLC is the Debtors' claims and notice agent.  Simpson
Thacher & Bartlett LLP represents JP Morgan, as admin. agent for
senior secured lenders and DIP lenders.

As of May 30, 2009, Lear has assets of US$1,270,800,000 against
debts of US$4,536,000,000.

Bankruptcy Creditors' Service, Inc., publishes Lear Bankruptcy
News.  The newsletter tracks the Chapter 11 proceedings undertaken
by Lear Corp. (http://bankrupt.com/newsstand/or 215/945-7000)


WOOLWORTH GMBH: Plans to Close Zeil and Kids Stores
---------------------------------------------------
Woolworth GmbH & Co. plans to close its store on Frankfurt's Zeil
shopping street, Nadja Brandt at Bloomberg News reports, citing
Frankfurter Allgemeine Zeitung news paper.

The report relates the newspaper, citing an unnamed spokesman at
the retailer's insolvency administrator Ottmar Hermann, said the
company will also shut down its so-called Kids stores in Hochheim,
Nidda, Using and Dortmund, Germany.

As reported in the Troubled Company Reporter-Europe on June 23,
2009, Reuters said Woolworth GmbH & Co. is to close more than half
of its stores within the next couple of months.  Reuters related a
spokesman for insolvency administrator Ottmar Hermann said up to
190 of the total 311 stores were going to be closed down.  The
spokesman, as cited by Reuters, said there was no investor in
sight who would be interested in the whole chain, but some had
already expressed interest in parts of it.

On June 1, 2009, the TCR-Europe, citing Reuters, reported a
consortium led by restructuring and liquidation specialist Gordon
Brothers was eyeing around 130 small stores.  Reuters, citing
media reports, disclosed retailers Tengelmann, Rossmann and DM
also expressed interest in Woolworth stores.  Reuters recalled
Woolworth ran out of cash in April after struggling with falling
sales as supermarkets, discounters and other specialist retailers
snatched away customers.

                    About Woolworth GmbH & Co

Woolworth GmbH & Co is a German department store chain.  The
company is owned by British investor Argyll Partners.


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H U N G A R Y
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DATESZ: Hungarian Gov't. Prepares HUF600MM Rescue Package
---------------------------------------------------------
MTI-ECONEWS, citing business daily Vilaggazdasag, reports that the
Hungarian government has prepared a HUF600 million (EUR2.22
million) rescue package for DATESZ, the organization which
represents the three largest producer cooperatives operating in
south-eastern Hungary.

According to the report, the finance ministry could approve the
rescue package for DATESZ, which has incurred significant
financial losses as a result of the global economic crisis and
inefficient operations, this week.

The report says DATESZ's insolvency would jeopardize the
livelihoods of 5,000 fruit- and vegetable-producing families in
southern Hungary.


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I C E L A N D
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BAUGUR GROUP: Has US$760-Mln Debt to Landsbanki and Kaupthing
-------------------------------------------------------------
Baugur Group hf owed a total of about US$760 million to Landsbanki
Islands hf and Kaupthing Bank hf before the two banks went
bankrupt last year, Bloomberg News reports citing radio RUV.

The Reykjavik-based broadcaster, citing bank documents, said
Baugur failed to repay debt worth 48 billion kronur (US$381
million) to Landsbanki and Kaupthing each before the lenders
collapsed in October, Bloomberg relates.

The Troubled Company Reporter-Europe reported on March 13, 2009,
that Baugur Group Hf decided to file for bankruptcy after the
District Court of Reykjavik refused to extend the company's
moratorium process.  Judge Arngrimur Isberg denied an extension of
the moratorium process as "the debts of Baugur are very high".
The court said debt at Baugur exceeds the value of its assets by
ISK148 billion (US$1.3 billion)

                       About Baugur Group

Baugur Group -- http://baugur.com/-- is an international
investment company in the retail and fashion sectors in the UK,
the USA and Scandinavia.  Companies related to Baugur employ some
53,000 people worldwide in over 3,700 stores with a total turnover
of GBP5.0 billion.

Among Baugur's principal investments are the supermarket chain
Iceland, the toy retailer Hamleys, the jewellery chain Goldsmiths,
fashion chains Whistles and Jane Norman, fashion company Mosaic
Fashions, renowned UK department store chain, House of Fraser, the
famous Danish department store chain Magasin du Nord and Illum,
one of Denmark's largest department stores.

                       About Kaupthing Bank

Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. --
http://www.kaupthing.com-- is engaged in the provision of
financial services, such as private banking, asset management,
pension services, brokerage services, investment banking, as well
as corporate and retail banking.  The Bank's offer is targeted at
companies, institutional investors and individuals.  The Bank is
operational in thirteen countries, including Luxembourg,
Switzerland, the Nordic countries, the United Kingdom and the
United States.  The main subsidiaries include Kaupthing Singer &
Friedlander and FIH Erhvervsbank.

As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

                       *     *     *

Kaupthing Bank hf. continues to carry an 'E' bank financial
strength rating from Moody's Investors Service with stable
outlook.  The rating was affirmed by Moody's in February 2009.

                     About Landsbanki Islands

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

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

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


GLITNIR BANKI: Creditors Must File Claims by November 26
--------------------------------------------------------
Creditors of Glitnir banki hf. have until Nov. 26, 2009, to submit
their claims to the bank's winding-up board at:

         Soltun 26
         105 Reykjavik
         Iceland

Creditors are directed to include in their claims submissions the
position of the claims as of April 22, 2009.

A creditors' meeting will be held at 10:00 a.m. on Dec. 17, 2009,
at:

         Hilton Hotel Nordica
         Suourlandsbraut 2
         108 Reykjavik
         Iceland

For further information on submission of claims and handling of
claims, visit the bank's Web site www.glitnirbank.com

Glitnir has been granted a moratorium pursuant to a ruling of the
Reykjavik District Court until Nov. 13, 2009.  On May 12,
2009, the court appointed a winding-up board for the bank, which
will handle, for instance, claims against the bank while
the moratorium is in effect and after winding-up proceedings
commence upon the conclusion of the moratorium.

                       About Glitnir banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services to
corporation, financial institutions, investors and individuals.

Judge Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District Court of New York granted Glitnir banki hf
permission to enter Chapter 15 of the U.S. bankruptcy code on
January 6, 2008.


KAUPTHING BANK: Baugur Defaulted on US$381 Million Debt
-------------------------------------------------------
Baugur Group hf owed a total of about US$760 million to Landsbanki
Islands hf and Kaupthing Bank hf before the two banks went
bankrupt last year, Bloomberg News reports citing radio RUV.

The Reykjavik-based broadcaster, citing bank documents, said
Baugur failed to repay debt worth 48 billion kronur (US$381
million) to Landsbanki and Kaupthing each before the lenders
collapsed in October, Bloomberg relates.

The Troubled Company Reporter-Europe reported on March 13, 2009,
that Baugur Group Hf decided to file for bankruptcy after the
District Court of Reykjavik refused to extend the company's
moratorium process.  Judge Arngrimur Isberg denied an extension of
the moratorium process as "the debts of Baugur are very high".
The court said debt at Baugur exceeds the value of its assets by
ISK148 billion (US$1.3 billion)

                       About Baugur Group

Baugur Group -- http://baugur.com/-- is an international
investment company in the retail and fashion sectors in the UK,
the USA and Scandinavia.  Companies related to Baugur employ some
53,000 people worldwide in over 3,700 stores with a total turnover
of GBP5.0 billion.

Among Baugur's principal investments are the supermarket chain
Iceland, the toy retailer Hamleys, the jewellery chain Goldsmiths,
fashion chains Whistles and Jane Norman, fashion company Mosaic
Fashions, renowned UK department store chain, House of Fraser, the
famous Danish department store chain Magasin du Nord and Illum,
one of Denmark's largest department stores.

                       About Kaupthing Bank

Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. --
http://www.kaupthing.com-- is engaged in the provision of
financial services, such as private banking, asset management,
pension services, brokerage services, investment banking, as well
as corporate and retail banking.  The Bank's offer is targeted at
companies, institutional investors and individuals.  The Bank is
operational in thirteen countries, including Luxembourg,
Switzerland, the Nordic countries, the United Kingdom and the
United States.  The main subsidiaries include Kaupthing Singer &
Friedlander and FIH Erhvervsbank.

As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

                       *     *     *

Kaupthing Bank hf. continues to carry an 'E' bank financial
strength rating from Moody's Investors Service with stable
outlook.  The rating was affirmed by Moody's in February 2009.


LANDSBANKI ISLANDS: Baugur Defaulted on US$381 Million Debt
-----------------------------------------------------------
Baugur Group hf owed a total of about US$760 million to Landsbanki
Islands hf and Kaupthing Bank hf before the two banks went
bankrupt last year, Bloomberg News reports citing radio RUV.

The Reykjavik-based broadcaster, citing bank documents, said
Baugur failed to repay debt worth 48 billion kronur (US$381
million) to Landsbanki and Kaupthing each before the lenders
collapsed in October, Bloomberg relates.

The Troubled Company Reporter-Europe reported on March 13, 2009,
that Baugur Group Hf decided to file for bankruptcy after the
District Court of Reykjavik refused to extend the company's
moratorium process.  Judge Arngrimur Isberg denied an extension of
the moratorium process as "the debts of Baugur are very high".
The court said debt at Baugur exceeds the value of its assets by
ISK148 billion (US$1.3 billion)

                       About Baugur Group

Baugur Group -- http://baugur.com/-- is an international
investment company in the retail and fashion sectors in the UK,
the USA and Scandinavia.  Companies related to Baugur employ some
53,000 people worldwide in over 3,700 stores with a total turnover
of GBP5.0 billion.

Among Baugur's principal investments are the supermarket chain
Iceland, the toy retailer Hamleys, the jewellery chain Goldsmiths,
fashion chains Whistles and Jane Norman, fashion company Mosaic
Fashions, renowned UK department store chain, House of Fraser, the
famous Danish department store chain Magasin du Nord and Illum,
one of Denmark's largest department stores.

                     About Landsbanki Islands

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

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

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


* ICELAND: Company Bankruptcies Increase to 95 in June 2009
-----------------------------------------------------------
Company bankruptcies in Iceland has increased to 95 in June 2009,
compared to 92 in June 2008, Omar R. Valdimarsson at Bloomberg
News reports, citing Statistics Iceland.

According to Bloomberg, most of the bankruptcies occurred in the
construction industry, followed by retail.

Bloomberg states that in the first six months of 2009, about 508
Icelandic companies were declared bankrupt, compared with 393 in
the first half of 2008.


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


CORK CITY INVESTMENT: High Court Issues Winding-Up Order
--------------------------------------------------------
According to The Irish Times, the High Court has issued a
winding-up order against the holding company that owns the Cork
City Football Club.

After an attempt by Cork City Investment FC Ltd. to negotiate a
schedule of payments for the roughly EUR440,000 it owes to the
Revenue Commissioners, Ms. Justice Mary Laffoy acknowledged that
the club was "in reality" insolvent and that she had "no option"
but to grant the order sought by the tax authorities.

The judge agreed to a request by Rossa Fanning for the club to
grant a stay until Friday morning so that an appeal could be
considered but Club chairman Tom Coughlan acknowledged afterwards
that he had no desire to bring the matter to the Supreme Court.

As a result, the report relates, efforts are underway to save the
leading League of Ireland club from going out of existence.  The
report adds that Mr. Coughlan is scheduled to promptly meet
Football Association of Ireland officials and representatives of
the players' union in Dublin in the wake of the court decision.

Irish Times said that the club's hopes of survival hinge on
Mr. Coughlan's ability to come up with about double the EUR110,000
he brought to court in the hope of striking a deal.  The aim would
be to satisfy the terms of agreement offered to the club at a
previous hearing of the matter under which it would pay half the
amount owed immediately, and the other half in four equal monthly
installments.


EURO ATLANTIS: Moody's Junks Ratings on Two Classes of Notes
------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of four
classes of notes issued by Euro Atlantis CLO Limited.

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

The rating actions 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.

According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed in, among other measures as per trustee report
dated June 30, 2009, a decline in the average credit rating as
measured through the weighted average rating factor (currently
2834), an increase in the amount of defaulted securities
(currently 6% of the portfolio), an increase in the proportion of
securities from issuers rated Caa1 and below (currently 9 % of the
portfolio), and a failure of all par value tests (including a
deterioration of the class B par value test from 129.96% in
January 2009 to 126.51% in June 2009).  Moody's also performed a
sensitivity analysis, including amongst others, a further decline
in portfolio WARF quality.

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 servicer's track record,
and the potential for selection bias in the portfolio, which
affects static transactions only at time of closing (the
collateral servicer was not responsible for selecting the
portfolio at closing).  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 analysed and continues to monitor this
transaction using primarily the methodology and its supplements
for cash flow CLOs as described in Moody's Special Reports and
press releases:

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

The rating actions are:

  -- Class A, Downgraded to A2; previously on June 26, 2008, Aaa
     Rated

  -- Class B, Downgraded to Ba3; previously on March 4, 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- Class C, Downgraded to Caa1; previously on March 4, 2009 A2
     Placed Under Review for Possible Downgrade

  -- Class D, Downgraded to Ca; previously on March 4, 2009 Baa2
     Placed Under Review for Possible Downgrade


STARTS PLC: S&P Junks Rating on Series 2007-11 Notes
----------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit ratings on the series 35 and 36
notes issued by Chess II Ltd. and on the series 2007-34 notes
issued by STARTS (Cayman) Ltd.  S&P also lowered its rating on the
series 2007-11 notes and placed on CreditWatch negative the series
2005-14 notes issued by STARTS (Ireland) PLC.

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

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

                           Ratings List

        Ratings Lowered and Placed on Creditwatch Negative

                           Chess II Ltd.
EUR10 Million Secured Leveraged Super Senior Credit-Linked Notes
                            Series 35

                           Ratings
                           -------
                   To                     From
                   --                     ----
                   CCC/Watch Neg          CCC+

                           Chess II Ltd.
EUR15 Million Secured Leveraged Super Senior Credit-Linked Notes
                            Series 36

                           Ratings
                           -------
                   To                     From
                   --                     ----
                   CCC/Watch Neg          CCC+

                       STARTS (Cayman) Ltd.
US$75 Million Leveraged Super Senior Credit-Linked Fixed-Rate
Notes
                          Series 2007-34

                           Ratings
                           -------
                   To                     From
                   --                     ----
                   AA/Watch Neg           AAA

                          Rating Lowered

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

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

              Rating Placed on Creditwatch Negative

                       STARTS (Ireland) PLC
     EUR20 Million Leveraged Super Senior Credit-Linked Notes
                          Series 2005-14

                           Ratings
                           -------
                   To                     From
                   --                     ----
                   AAA/Watch Neg          AAA


VEGA CONTAINERVESSEL: Moody's Cuts Rating on Class A Notes to Ba1
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
rating of the US$253.7 million 5.562% Class A corporate asset-
backed secured notes due 2021 issued by Vega ContainerVessel 2006-
1 Public Limited Company.  At the same time, Moody's placed the
rating under review for possible further downgrade.  The notes
were issued for the purpose of financing ships for CMA CGM.

The rating action reflects Moody's expectation that there will be
a substantial decrease in the value of the vessels assigned as
collateral for the notes due to the severity of the current
economic downturn, exacerbated by a substantial excess in
capacity.  The rating action also factors in Moody's expectation
of a further weakening in CMA CGM's credit quality following the
negative market conditions experienced by the container industry
in the first half of the year and the limited recovery prospects
over the short term.  Indeed, although Asia to EU trades seem to
be helping the company return to a profitable status, Asia to US
activities are still subdued.  Furthermore, Moody's expects a
deteriorating liquidity profile of the company although, in its
current assessment of CMA CGM, Moody's continues to factor the
expectation that banks will remain supportive.

The rating of the Class A notes issued by Vega principally
reflects (i) CMA CGM's credit quality, and (ii) the additional
degree of protection provided by the legal and financial
arrangements of the transaction to the Class A noteholders in the
event of a default by CMA CGM.  The degree of protection is based
on an estimate of the probability and severity of a shortfall for
the Class A notes in the event of a sale of the collateral and
liquidation of the transaction, following a CMA CGM default.

Moody's review will focus on assessing the potential impact of
further deterioration of the current market conditions on the
estimated probability and severity of a shortfall for the Class A
notes in the event of a sale of the collateral.  Moody's expects
to conclude its review in the next three months.

The last rating action was implemented on June 5, 2009, when
Moody's downgraded the ratings of Vega to Baa3 with negative
outlook from A3.

In assessing the notes issued by Vega ContainerVessel 2006-1
Public Limited Company, Moody's has taken into consideration the
characteristics of the collateral pool, the volatility of vessel
prices, the potential claims ranking in priority to the Class A
Notes and the structural enhancement of the transactions.

Vega ContainerVessel 2006-1 Public Limited Company is an Irish
orphan special purpose vehicle, which has issued debt instruments
for the purpose of financing ships for CMA CGM.


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


IT HOLDING: Ittierre Unit Inks Five-Year Deal with Galliano
-----------------------------------------------------------
Marco Bertacche at Bloomberg News reports that IT Holding SpA's
commissioners said in a statement to the Italian exchange on
Monday that the company's Ittierre SpA unit signed a five-year
licensing agreement with John Galliano SA.

The terms of the agreement were not disclosed.

                       IT Holding Bankruptcy

On March 2, 2009, the Troubled Company Reporter-Europe, citing The
Associated Press, reported that IT Holding sought bankruptcy
protection two weeks after the company put one of its
subsidiaries, Ittierre SpA, into bankruptcy protection.  Bloomberg
News disclosed IT Holding was put into bankruptcy after missing
loan installments and failing to pay suppliers and royalties for
as much as a year.  According to Bloomberg News, IT Holding missed
a loan payment in October and an extension three months later.

                       Ittierre Bankruptcy

In the March 2 TCR-Europe report AP said Ittierre, IT Holding's
main production and licensing unit, filed for protection from its
creditors Feb. 9 after banks refused to inject the necessary
capital to keep its business keep going.  Bloomberg News disclosed
Ittierre said it missed loan payments and was late in paying
royalties to designers.

On Feb. 12, 2009, Minister Scajola accepted the application filed
by Ittierre for "Amministrazione Straordinaria" and appointed Mr.
Andrea Ciccoli, partner in Bain & Co., Mr. Stanislao Chimenti,
lawyer, and Mr. Roberto Spada, Certified Public Accountant, as
commissioners.

                        About IT Holding SpA

Based in Milan, Italy, IT Holding SpA (BIT:ITH) --
http://www.itholding.com/-- operates in the luxury goods market.
The company and its subsidiaries design, produce and distribute
apparel, accessories, eyewear and perfumes.  Its brand portfolio
embraces: owned brands, Gianfranco Ferre, Malo, Exte, as well as
licensed brands, Versace Jeans Couture, Versace Sport, Just
Cavalli, CNC Costume National and Galliano.  The company's
production facilities are located in Italy.  IT Holding SpA has a
worldwide distribution network, including 39 directly operated
stores, 274 monobrand stores and over 6,000 department and
specialty stores.  In order to be present in the most significant
markets, IT Holding SpA has dedicated market companies: ITTIERRE
SpA, ITTIERRE France SA, ITTIERRE Moden GmbH, IT USA HOLDING Inc
and IT Asia Pacific Limited, among others.


ITTIERRE SPA: Signs Five-Year Deal with John Galliano
-----------------------------------------------------
Marco Bertacche at Bloomberg News reports that IT Holding SpA's
commissioners said in a statement to the Italian exchange on
Monday that the company's Ittierre SpA unit signed a five-year
licensing agreement with John Galliano SA.

The terms of the agreement were not disclosed.

                     IT Holding Bankruptcy

On March 2, 2009, the Troubled Company Reporter-Europe,citing The
Associated Press, reported that IT Holding sought bankruptcy
protection two weeks after the company  put one of its
subsidiaries, Ittierre SpA, into bankruptcy protection.
Bloomberg News disclosed IT Holding was put into bankruptcy after
missing loan installments and failing to pay suppliers and
royalties for as much as a year.  According to Bloomberg News, IT
Holding missed a loan payment in October and an extension three
months later.

                        Ittierre Bankruptcy

In the March 2 TCR-Europe report AP said Ittierre, IT Holding's
main production and licensing unit, filed for protection from its
creditors Feb. 9 after banks refused to inject the necessary
capital to keep its business keep going.  Bloomberg News disclosed
Ittierre said it missed loan payments and was late in paying
royalties to designers.

On Feb. 12, 2009, Minister Scajola accepted the application filed
by Ittierre for "Amministrazione Straordinaria" and appointed Mr.
Andrea Ciccoli, partner in Bain & Co., Mr. Stanislao Chimenti,
lawyer, and Mr. Roberto Spada, Certified Public Accountant, as
commissioners.

                           About Ittierre

Ittierre S.p.A. is one of the operating subsidiaries of Italy
Holding S.p.A. -- http://www.itholding.com/-- an Italy-based
company operating in the luxury goods market.  The Company and its
subsidiaries design, produce and distribute apparel, accessories,
eyewear and perfumes.  Its brand portfolio embraces: owned brands,
Gianfranco Ferre, Malo, Exte, as well as licensed brands, Versace
Jeans Couture, Versace Sport, Just Cavalli, C'N'C Costume National
and Galliano.  The Company's production facilities are located in
Italy.  IT Holding SpA has a worldwide distribution network,
including 39 directly operated stores, 274 monobrand stores and
over 6,000 department and specialty stores.


PARMALAT SPA: BofA to Pay US$100MM to Settle 2004 Lawsuit
---------------------------------------------------------
Bank of America has reached a settlement with Parmalat SpA and
other Parmalat entities of litigation in the U.S. and Italy
stemming from the dairy company's 2003 bankruptcy.

The settlement resolves the 2004 lawsuit Parmalat filed in the
U.S. seeking US$10 billion, as well as Parmalat's multiple claims
and potential claims against Bank of America and its employees in
various proceedings in Italy.

The global settlement is valued at a total of US$100 million with
a cash and a non-cash component.  Further details of the agreement
will become available only after it has been filed in the U.S.
District Court for the Southern District of New York, where the
case is being heard.

While Bank of America does not comment on client relationships,
the agreement removes barriers to future possible normalized
business between the two companies.

"The legal record to date -- including the recent unanimous ruling
in our favor from the three judge panel in Milan -- makes it clear
that no one at Bank of America knew or could have known of the
true financial condition of Parmalat. We have defended ourselves
vigorously in these cases and are satisfied with this outcome,"
Bank of America said in a statement.

Bank of America -- http://www.bankofamerica.com/-- is one of the
world's largest financial institutions, serving individual
consumers, small- and middle-market businesses and large
corporations with a full range of banking, investing, asset
management and other financial and risk management products and
services.  The company serves roughly 53 million consumer and
small business relationships with more than 6,100 retail banking
offices, nearly 18,500 ATMs and award-winning online banking with
29 million active users.  The company serves clients in more than
150 countries.  Bank of America Corporation stock is a component
of the Dow Jones Industrial Average and is listed on the New York
Stock Exchange.

                     About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presides over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.


PARMALAT SPA: Completes Acquisition of National Foods' Milk Assets
------------------------------------------------------------------
Marco Bertacche at Bloomberg News reports that Parmalat SpA said
in a statement to the Italian exchange on Monday that it has
completed the acquisition of some fresh milk assets from
Australia's National Foods.

No details of the acquisition were disclosed.

                    About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presides over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.

(Parmalat Bankruptcy News; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000).


RISANAMENTO SPA: Board Okays EUR150 Million Cash Injection Plan
---------------------------------------------------------------
The board of Risanamento SpA agreed on a debt-restructuring plan
that will allow it to get a EUR150 million (US$214 million) cash
injection, Bloomberg News reports citing the company's e-mailed
statement.

Bloomberg, citing the company's statement, relates that
Risanamento will restructure EUR350 million of debt into a
convertible bond maturing in 2014. Risanamento will present its
plan to a bankruptcy court on July 29, the report adds.

Bloomberg discloses that the company also named Vincenzo Mariconda
as the new chairman.

Luigi Zunino on Tuesday resigned as Risanamento's chairman and
chief executive officer, Bloomberg said.

As reported in the Troubled Company Reporter-Europe on July 23,
2009, Bloomberg News, citing Italian newspaper Il Messaggero, said
that Risanamento creditor banks rejected a plan for the company to
borrow EUR340 million from four banks to stave off bankruptcy.
Bloomberg disclosed Risanamento has total debt of EUR2.77 billion
(US$3.9 billion).  At the end of last year, the company's short-
term loans totaled EUR740 million, Bloomberg noted.

                        Bankruptcy Request

In the July 23 TCR-Europe report The Financial Times said a court
in Milan has set a hearing for July 29 to enable the company to
respond to a request by a Milan prosecutor that it be declared
bankrupt.  According to the FT, bankers and analysts in Milan said
its chances of avoiding bankruptcy could be hampered by the banks'
unwillingness to take ownership of huge property developments that
they had little prospect of selling in the economic climate.

                       About Risanamento SpA

Headquartered in Milan, Italy, Risanamento SpA --
http://www.risanamentospa.it/-- is a company engaged in the
real estate sector.  It is part of the Zunino Group.  Its main
activities are real estate investments, real estate promotion and
development.  The Company provides its services through numerous
subsidiaries and associated companies, such as Milano Santa Giulia
SpA, Etoile ST. Florentin Sarl, Risanamento Europe Sarl and RI
Investimenti Srl. Risanamento operates in the real estate
promotion and development, and real estate investments sectors.
The Company's main projects are the creation of the new Milano
Santa Giulia district, and the redevelopment of the former Falck
area in Sesto San Giovanni.


SAFILO SPA: Says Funds Pull Out From Talks Without Making Offers
----------------------------------------------------------------
Dan Liefgreen at Bloomberg News reports that Safilo SpA said talks
with private-equity funds aimed at "recapitalizing" the company
have ended because potential investors pulled out without making
offers.

Bloomberg says the company's board will meet on Aug. 4, when it
will evaluate "potential actions" to guarantee a "sustainable"
capital structure.

On July 6, 2009, the Troubled Company Reporter-Europe, citing
Reuters, reported Safilo, whose net debt reached EUR618 million
(US$872 million) at the end of March, was in talks to find a
partner to shore up its balance sheet.  According to Reuters, the
company could bring on board private equity and industrial
partners to help solve financial worries.  Reuters disclosed two
sources close to the operation said private equity funds -- Bain
Capital and Pai Partners -- were vying to acquire stakes in
Safilo.

Safilo Group SpA -- http://www.safilo.com/-- is an Italy-based
company operating in the eyewear sector.  It designs, produces and
distributes such products as frames for reading glasses,
sunglasses, glasses for sport, ski masks, goggles and visors.  Its
products are primarily manufactured in four plants in Italy, one
in Slovenia and China and are marketed in 130 countries worldwide
through 39 direct commercial subsidiaries and more than 130,000
retail distributors.  The Group has 38 principal brands of which
10 directly owned and 28 licensed.  Brands include Safilo, Oxydo,
Carrera, Smith, Alexander McQueen, A/X Armani Exchange, Banana
Republic, BOSS - Hugo Boss, Bottega Veneta, Diesel, Valentino,
Dior, Emporio Armani and others.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on July 9,
2009, Moody's Investors Service 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 was downgraded to C (LGD5, 78%)
from Ca.  Moody's said the outlook on the ratings is stable.

On July 7, 2009, Troubled Company Reporter-Europe reported that
Standard & Poor's Ratings Services said that it lowered to 'SD'
(Selective Default) from 'CC' its long-term corporate credit
rating on Italy-based eyewear manufacturer Safilo SpA.  At the
same time, S&P affirmed s'C' issue rating on the EUR195 million
9.625% second-lien notes due 2013 issued by Safilo Capital
International S.A.


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


GELDILUX-TS-2007 SA: S&P Keeps Four Low-B Rated Notes on Watch Neg
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the liquidity notes
issued by Geldilux-TS-2007 S.A. and Geldilux-TS-2008 S.A.  At the
same time, S&P kept all other rated notes in these transactions on
CreditWatch negative.

The downgrades of the liquidity notes reflect S&P's revised view
of the refinance risk in both transactions.  If Bayerische Hypo-
und Vereinsbank AG (A/Stable/A-1), the originator of the
securitized loans backing these deals, were to default, the
underlying borrowers would face payment shock and suddenly need to
obtain third-party refinancing for maturing loans.  In S&P's
opinion, the issuers would have to use any liquidity available to
the transactions to cover delinquencies and overdue interest
payments arising from loan borrowers experiencing difficulties in
securing a refinancing.

Given that S&P does not expect all borrowers to succeed in
obtaining refinancing or to repay accrued and overdue interest in
full, the issuers would not have the funds required to repay the
liquidity notes.  To reflect these refinancing risks if HVB were
to default, S&P downgraded the liquidity notes and weak-linked
them to the senior-unsecured rating on HVB.

S&P kept the ratings on all other outstanding rated notes in
Geldilux-TS-2007 and Geldilux-TS-2008 on CreditWatch negative
pending execution of a proposed restructuring plan that HVB has
announced. S&P expects to resolve these CreditWatch placements
upon any execution, or failure to do so, of the restructuring
proposals.

Regarding the restructuring, S&P refers to public information. In
S&P's opinion, the proposed restructuring has no analytical
significance regarding the ratings on the liquidity notes.  The
rating actions are therefore independent of the proposal.

HVB originated both transactions.  The securitized assets are
short-term loans granted to preferred clients from various
business segments.  Most of the borrowers are small and midsize
enterprises. The loans have a maximum maturity of 368 days and
feature a bullet repayment.  These loans are products under the
framework of a client's working capital facility or term facility
offered by HVB.

                           Ratings List

      Ratings Lowered and Removed From Creditwatch Negative

                       Geldilux-TS-2007 S.A.
          EUR2,104.5 Million Secured Floating-Rate Notes

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

                       Geldilux-TS-2008 S.A.
          EUR1,459.4 Million Secured Floating-Rate Notes

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

            Ratings Remaining on Creditwatch Negative

                      Geldilux-TS-2007 S.A.
          EUR2,104.5 Million Secured Floating-Rate Notes

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

                      Geldilux-TS-2008 S.A.
          EUR1,459.4 Million Secured Floating-Rate Notes

             Class                      Rating
             -----                      ------
             A1                         AAA/Watch Neg
             A2                         AAA/Watch Neg
             A SS                       AAA/Watch Neg
             B                          A/Watch Neg
             C                          BBB/Watch Neg
             D                          BB/Watch Neg
             D SS                       BB/Watch Neg


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


LYONDELLBASELL: Names Kent Potter as CFO
----------------------------------------
LyondellBasell Industries' Supervisory Board has named Kent Potter
as Chief Financial Officer, effective August 1.  Mr. Potter will
succeed Alan Bigman who will be offered an opportunity to continue
assisting in the company's Chapter 11 restructuring activities.

"Kent is a highly respected finance executive, and his experience
as chief financial officer for two of the world's largest
chemicals and energy companies makes him ideally suited to this
role," said Jim Gallogly, CEO of LyondellBasell.  "I am delighted
that he will be joining our leadership team to help build
LyondellBasell's future."

"LyondellBasell has the potential to be an elite participant in
the chemical industry, and I am excited to be joining the company
at this critical time," said Mr. Potter.  "I look forward to
working with the finance team and the entire leadership group to
continue to focus on improving results and emerging from Chapter
11 protection."

Potter most recently was a consultant in the petrochemicals sector
and formerly was the Chief Financial Officer of TNK-BP, Russia's
second largest oil company.  He was previously Senior Vice
President and Chief Financial Officer for Chevron Phillips
Chemical Company from 2000 to July 2003 and served as a member of
Chevron Phillips Chemical Company's Board of Directors.

Prior to his time with Chevron Phillips, Potter had spent 27 years
with Chevron.  During this time, he held financial management
positions in all areas of Chevron's operations.  These included
Finance Director for Chevron's North Sea operations, CFO of
Chevron's mining company, CFO of Tengizchevroil in Kazakhstan and
CFO of Chevron Overseas Petroleum (Chevron's international E&P
operations).

Mr. Potter served on the Advisory Board of the Haas Graduate
School of Business (UC, Berkeley) and formerly was a member of the
Supervisory Board of LyondellBasell Industries.

LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies.  It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels.  Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.

Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company.  LyondellBasell became saddled with
debt as part of the US$12.7 billion merger.  On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts.  The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023).  Seventy-nine Lyondell
entities,  including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11.  In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.

The Hon. Robert E. Gerber presides over the case.  Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel.  Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors.  AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities.  Lyondell Chemical estimated that consolidated
assets total US$27.12 billion and debts total US$19.34 billion as
of the bankruptcy filing date.

Lyondell has obtained approximately US$8 billion in DIP financing
to fund continuing operations.  The DIP financing includes two
credit agreements: a US$6.5 billion term loan, which comprises a
US$3.25 billion in new loans and a US$3.25 billion roll-up of
existing loans; and a US$1.57 billion asset-backed lending
facility.

Luxembourg-based LyondellBasell Industries AF S.C.A. and another
affiliate were voluntarily added to Lyondell Chemical's
reorganization filing under Chapter 11 on April 24, 2009, in order
to seek protection against claims by certain financial and U.S.
trade creditors.  On May 8, 2009, LyondellBasell Industries added
13 non-operating entities to Lyondell Chemical Company's
reorganization filing under Chapter 11 of the U.S. Bankruptcy
Code.  All of the entities are U.S. companies and were added to
the original Chapter 11 filing for administrative purposes.  The
filings will have no impact on current business or operations as
none of the entities manufactures or sells products.

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


NXP BV: S&P Raises Ratings on Senior Unsecured Notes to 'CC'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised to 'CC'
from 'D' its issue ratings on the senior unsecured and senior
secured notes issued by Dutch semiconductor manufacturer NXP B.V.
and subsidiary NXP Funding LLC.  The 'CCC' long-term corporate
credit rating on NXP is unchanged and the outlook remains
negative.

The issue ratings on NXP's other debt instruments, including the
'B-' ratings on NXP's super priority revolver due 2012 and super
priority notes due 2013, are unchanged.  The recovery ratings on
NXP's debt instruments are also unchanged.

The upgrade of the senior unsescured and senior secured notes
reflects the benefits garnered, notably in terms of financial
flexibility, through the exchange offers.  At the same time, the
new rating of 'CC' assigned to the notes, reflects the application
of S&P's criteria on repeating distressed exchange offers.  NXP
has not ruled out further debt exchanges or buybacks in the
future.


=============
R O M A N I A
=============


BANCA TRANSILVANIA: National Bank Mulls Acquisition, Ziarul Says
----------------------------------------------------------------
Irina Savu at Bloomberg News, citing Ziarul Financiar, reports
that National Bank of Greece SA may purchase Banca Transilvania SA
after it raised EUR1.25 billion (US$1.8 billion) in a sale of new
stock to existing shareholders to boost capital and finance
expansion.

Ziarul Financiar did not say where it got the information.

Banca Transilvania SA (BT) -- http://www.bancatransilvania.ro/--
is a Romanian financial institution that provides corporate and
retail banking services for corporate and individual clients,
micro and small enterprises, as well as personnel in the medical
sector. Its business activities include banking, leasing and
consumer finance, asset management and investment funds, insurance
and investment on capital markets. Its product range includes
customer deposits, domestic and international payments, foreign
exchange transactions, working capital finance, medium term
facilities, bank guarantees, letter of credits and also financial
consultancy, cash management, treasury products, trade finance,
loan products, business banking, retail loans and deposits, as
well as debit and credit cards. Its subsidiaries include BT
Securities SRL, BT Leasing SRL, BT Direct SRL, BT Asset Management
SAI SA, BT Finop Leasing SRL and Medicredit Leasing IFN. The
Company operates nationally through its 63 branches.

                        *     *     *

On July 28, 2009, the Troubled Company Reporter-Europe reported
that Fitch Ratings affirmed Romania-based Banca Transilvania
S.A.'s ratings at Long-term foreign currency Issuer Default 'BB-',
Short-term foreign currency IDR 'B' and Individual 'D', Support
'3' and Support Rating Floor 'BB-'.


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


* Russia Mulling Bankruptcy Reform to Aid Companies
---------------------------------------------------
Russia is planning to reform its bankruptcy law, to help companies
survive financial reorganization without being broken up, Alan
Purkiss at Bloomberg News reported, citing the Financial Times.

The Financial Times, citing economic adviser Arkady Dvorkovich
said the government hopes legislation can be drawn up and passed
by the Duma by the end of the year.

Fewer than 10% of Russian companies that have gone through
bankruptcy procedures have survived as going concerns, because of
the activities of corporate raiders and others, Mr. Dvorkovich,
President Dmitry Medvedev's economic adviser, told the FT.

The government, according to FT, wants the emphasis to be on
efficient financial rehabilitation procedures.


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


BRATSTVO: On the Brink of Bankruptcy
------------------------------------
Novinite.com reports that "Bratstvo" (Brotherhood), the oldest
Bulgarian newspaper in Serbia, is on the brink of bankruptcy after
the Serbian government cut by 75% the state funding of the media.

Citing the Pari Daily, the report discloses the government
funding, which is 80% of the newspaper's budget, was reduced in
May.

"If the current position of the Serbian government does not soon
change, and an alternative funding is not found, the newspaper
will stop working in September," the report quoted Neboysha
Ivanov, the director of the "Bratstvo" publishing house, as
saying.


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


ABANKA VIPA: Fitch Affirms 'BB+' Rating on Capital Instruments
--------------------------------------------------------------
Fitch Ratings has revised Slovenia-based Abanka Vipa's Outlook to
Negative from Stable.  At the same time, the agency has affirmed
the Long-term Issuer Default at 'BBB' the Short-term IDR at 'F3',
the Individual rating at 'C', the Support rating at '3' and the
Support Rating Floor at 'BB+'.  Fitch has also affirmed Abanka's
hybrid capital instruments at 'BB+'.

The Negative Outlook reflects the impact of a deteriorating
Slovenian operating environment, which put an increased pressure
on Abanka's profitability and asset quality, and a lack of
diversification in the bank's funding base.

Given the challenging operating environment in Slovenia --  Fitch
anticipates a GDP contraction of around 3.4% in 2009 --  the
agency expects Abanka's profitability to remain weak in 2009, due
to higher impairment charges and pressure on net interest margins.
The bank faces significant refinancing risk due to its dependence
on wholesale funding.  Abanka expects to issue state-guaranteed
debt in the autumn to support its funding needs as supply in the
international syndicated wholesale market remains tight.  A
downgrade of the Long-term IDR, and possibly Individual rating,
could be triggered by a deeper-than-expected recession, rapid
deterioration in asset quality and loss absorption capacity, as
well as increased refinancing risk.

These negatives trends are, however, balanced by Abanka's sound
corporate franchise, shrinking equity exposure and satisfactory
capitalization.  At end-Q109, the tier 1 and total capital ratios
stood comfortably at 10.96% and 12.9% respectively on an un-
consolidated basis.  Fitch expects the bank to maintain a level of
capital that is commensurate with its risk profile.

Abanka's performance in Q109 was weaker primarily due to a
substantial increase in loan impairment charges stemming from
weakened credit quality, and reduced fee income.  NPLs at end-Q109
amounted to 3.22% and, given the economic outlook, Fitch expects
this ratio to increase.  While Abanka maintains strong levels of
reserve coverage, high concentration in the portfolio could result
in volatile performance.

Liquidity improved somewhat at end-Q109 as the bank slowed loan
growth and increased deposits.  An increase in the share of
eligible assets for the European Central Bank discounting facility
and the use of the Slovenian support funding scheme should help to
cover wholesale funding maturities in 2009 of EUR287 million.

At end-Q109, Abanka was the third-largest bank in Slovenia by
total assets, with an 8.1% market share.  The three largest
shareholders (including ZT, a Slovenian state-controlled insurance
company) have a strategic interest and hold a total of 59.3% of
voting rights at present.  At end-2008, Abanka employed 878 staff.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's individual ratings and the prospect of external support
is reflected in Fitch's support ratings.  Collectively these
ratings drive Fitch's Long- and Short-term IDRs.


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


J.L. FRENCH: Files Schedules of Assets and Liabilities in U.S.
--------------------------------------------------------------
J.L. French Automotive Castings, Inc., et al., filed with the U.S.
Bankruptcy Court for the District of Delaware, their schedules of
assets and liabilities, disclosing:

     Name of Debtor                Assets        Liabilities
     --------------             ------------    ------------
  J.L. French Auto. Castings   US$82,216,372  US$306,691,702+
  J.L. French LLC               $316,656,454    $466,172,363+
  Nelson Metal Products, LLC    $113,432,244    $330,564,178+
  Allotech International LLC    $108,790,451    $355,641,186
  Central Die, LLC               $22,757,980     $18,438,500+
  J.L. French Automotive, LLC             $0    $269,088,345
  French Holdings LLC                     $0    $269,073,345

Copies of et al.'s SALs are available at:

  http://bankrupt.com/misc/jlfrenchautomotivecastings.SAL.pdf
  http://bankrupt.com/misc/jlfrenchllc.SAL.pdf
  http://bankrupt.com/misc/nelsonmetalproducts.SAL.pdf
  http://bankrupt.com/misc/allotechinternational.SAL.pdf
  http://bankrupt.com/misc/centraldie.SAL.pdf
  http://bankrupt.com/misc/jlfrenchautomotivellc.SAL.pdf
  http://bankrupt.com/misc/frenchholdingsllc,SAL.pdf

                        About J.L. French

Based in Sheboygan, Wisconsin, J.L. French Automotive Castings
Inc. -- http://www.jlfrench.com/-- supplies aluminum die castings
specializing in powertrain and automotive components.  The Company
has four manufacturing locations around the world including plants
in the United States, and Spain.  The Company has six engineering/
customer service offices to globally support its customers near
its regional engineering and manufacturing locations.  The Company
began making aluminum die castings in 1968 in Sheboygan, Wisconsin
as a small, family owned business and is now an industry leader in
technical resources.

The Company and six of its affiliates filed for Chapter 11
protection on July 13, 2009 (Bankr. D. Del. Lead Case No.
09-12445).  Pachulski Stang Ziehl & Jones LLP, and Milbank, Tweed,
Hadley & McCloy LLP, represent the Debtors in their restructuring
efforts.  The Debtors selected BMC Group Inc. as claims agent;
Conway MacKenzie & Dunleavy Inc. as financial advisor; Houlihan
Lokey Howard & Zukin Capital Inc. as investment banker.  The U.S.
Trustee for Region 3 has not appointed creditors to serve on the
Official Committee of Unsecured Creditors.  When the Debtors
sought for protection from their creditors, they listed between
US$100 million and US$500 million each in assets and debts.


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


ZAT AKB: Central Bank Starts Liquidation Proceedings
----------------------------------------------------
Ukraine's central bank started liquidation proceedings against ZAT
AKB Odesa-Bank, Kateryna Choursina at Bloomberg News reported,
citing the Ekonomicheskie Izvestia newspaper.

Kiev, Ukraine-based Natsionalnyi Bank Ukrainy appointed
Volodymyr Aimedov to manage the liquidation, Ekonomicheskie
Izvestia said, citing a document from the central bank.

Odesa-Bank was Ukraine's 124th-biggest lender by assets as of
April 4, according to the central bank's Web site.


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


ADJAYE ASSOCIATES: Enters Into CVA to Avert Insolvency
------------------------------------------------------
Christopher Sell at The Architect's Journal reports that David
Adjaye entered into Company Voluntary Arrangement with creditors
in a bid to stave off insolvency and prevent financial collapse of
his practice, Adjaye Associates, by rescheduling debts.

According to the report, under the terms of the CVA, the company,
which has debts of more than GBP1 million, is paying back 43p on
the pound to the creditors.

The report discloses according to the insolvency practitioner
Valentine & Co, which is supervising the CVA, the arrangement
became necessary following delays or stoppages to projects in
Birmingham, Abu Dhabi, Kuala Lumpur and India.


BRADFORD & BINGLEY: Credit-Default Swaps to Be Settled on July 30
---------------------------------------------------------------
Bradford & Bingley plc's credit default swaps will be settled at
auction on July 30, Abigail Moses at Bloomberg News reports,
citing auction administrators Markit Group Ltd. and Creditex Group
Inc.

As reported in the Troubled Company Reporter-Europe on July 13,
2009, the Financial Times said the International Swaps and
Derivatives Association ruled that institutions that insured
investors against a default by Bradford & Bingley plc will have to
pay out on the credit default contracts after the government
refused to pay the interest on the bank's debt.  The report
related that the ruling by ISDA was requested by Morgan Stanley
and means credit default swap contracts, which provide protection
against bond defaults, covering around US$416 million of B&B's
debt will have to be settled.

According to a TCR-Europe report on May 29, 2009, citing
Telegraph.co.uk, B&B said it would not make interest payments on
GBP150 million of floating rate subordinated notes due June 30,
GBP125 million of 6.625pc notes due June 16, and GBP50 million of
11.625pc bonds due July 20.  The FT related that traders said a
grace period had expired on the first payment.

                    About Bradford & Bingley

Headquartered in Bingley, United Kingdom, Bradford & Bingley plc
-- http://www.bbg.co.uk/-- offers residential mortgages, and
focus on a range of areas providing mortgages for individuals.  It
focuses on its savings business and provides a range of
savings products through 197 branches and network of 140 third-
party branch-type agents, by phone, post and Online.

B&B was nationalized last September after retail savers withdrew
tens of millions of pounds over growing uncertainty concerning its
financial stability.


BRENTWOOD HOTELS: Goes Into Administration
------------------------------------------
Matthew Legg at News & Star reports that Brentwood Hotels Ltd.,
the owner of the Swallow Hilltop Hotel, in Carlisle, has gone into
administration.

According to the report, the hotel, at Hilltop Heights, off London
Road, will continue to trade while a buyer is sought for Brentwood
Hotels.

The report relates joint administrator James Money, of London-
based accountants Smith and Williamson, said it was in talks with
interested parties about securing the future of the business.

"A number of stakeholders are involved in the administration
process of Brentwood Hotels Limited and we are in discussions with
all of them," the report quoted Mr. Money as saying.
"We are just at the start of the process, but it is likely that,
in due course, we will be looking to receive expressions of
interest in the purchase of the business."


CONCEPT DEVELOPMENT: Goes Into Administration; 31 Jobs Affected
---------------------------------------------------------------
Anna Blackaby at Birmingham Post reports that Concept Development
Solutions Ltd., the developer behind the Abacus Building in
Digbeth, has gone into administration.

The report relates Concept has called in administrators BDO Stoy
Hayward and its parent company Old House Holdings is in the hands
of administrative receivers from the firm.  According to the
report, 31 staff have lost their jobs at Concept as well as 18
staff at Old House as a result of the collapse.

"It is unfortunate that due to very tough conditions in the
construction market we have had to make a number of redundancies,"
the report quoted BDO Stoy Hayward business restructuring partner
Jo Wright as saying.  "We are reviewing all the options available
to Concept Development Solutions Limited with an intention to sell
the sites, as well as liaising with customers and interested
parties in relation to the live construction projects."


ELEMENTARY PROPERTY: In Receivership; Deloitte Appointed
--------------------------------------------------------
Property Week reports that Elementary Property Group has been put
into receivership.

According to the report, associated companies Premier Markets, the
Elementary Holding Company, Thorotat and Quest Investments are
also in administration.  Deloitte is the administrator and
receiver, the report relates.

The group, the report discloses, owns land and property assets
around Glasgow and Edinburgh.  Its properties include a site that
it owns jointly with the City of Edinburgh Council in the city's
Exchange business district, the report says.  Deloitte, as cited
by Property Week, said it would work with stakeholders to secure
buyers for the group's assets.


ENTERPRISE INNS: Moody's Affirms 'Ba3' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed Enterprise Inns plc Ba3
Corporate Family Rating, B1 Probability of Default Rating and the
Ba1 rating of GBP275 million senior secured floating-rate notes
due 2031 and changed the outlook to negative from stable.

The change in outlook reflects the difficulty Moody's foresees in
ETI's ability to maintain its credit metrics in line with Moody's
targeted parameters.  Moody's forecasts that EBITDA for the
financial years 2008/09 and 2009/10 will be lower than previously
envisaged.  Net rental income and gross margins from beer sales
will likely be squeezed further as discounts and rental
concessions made to prevent tenant failures have risen by some 20%
to GBP1.7 million per month.  The group is also making additional
expenditure to revitalize the customer franchise of some pubs
taken back from failed licensees.  While Moody's believes that
this is a worthwhile activity, it reduces profitability in the
near term.  Therefore, Moody's expects consolidated interest cover
to trend below 2.0x and consolidated leverage to trend towards
8.0x by fiscal year end 2008/09 (September 30, 2009).

Moody's notes more positively that the number of licensees
receiving assistance under the group's Business Recovery scheme
has fallen to 800 from 900.  However, the company reports that the
rate of licensee business failures has increased by 50% over last
year.  Moody's is concerned that this proportion could rise, given
the ongoing pressures within the industry sector.

Moody's notes that management has taken corrective measures to
preserve the company's overall credit profile: it has increased
free cash flow by cutting the dividend and engaged in a programme
of asset sales from which it plans to apply the proceeds toward
the reduction of debt.  In the nine months to June 30, 2009,
GBP84 million had been raised through the disposal of pubs.

The Ba3 Corporate Family Rating incorporates Moody's expectation
that the group will continue to comply with its various financial
bond and banking covenants and maintain an adequate liquidity
profile.  In that connection, management has already started
investigating refinancing alternatives for its GBP1 billion
syndicated bank debt that matures in May 2011.

While there is little upside pressure on the ratings at present,
the rating outlook would stabilise if the group's consolidated
leverage (net debt to recurring EBITDA) trends back below 7.5x and
the parent company's leverage was kept below 6.0x and interest
cover at or above 2.5x.  Further downward pressure on the ratings
would arise from (i) headroom under any of the group's various
financial covenants becomes tight or if liquidity concerns where
to arise, (ii) consolidated net debt to EBITDA trends towards 8.5x

The last rating action was implemented on March 16, 2009, when
Moody's downgraded ETI's CFR to Ba3 from Ba2, the probability of
default rating to B1 from Ba3 and the rating of GBP275 million
senior secured floating-rate notes due 2031 to Ba1 from Baa3 with
stable outlook.

Enterprise Inns plc, headquartered in Solihull, is the second-
largest pub operator in the UK.  It has an estate of around 7,800
tenanted pubs country-wide, valued at GBP5.62 billion at
March 31, 2009.


EUROHOME UK 2007-1: Fitch Junks Ratings on Two Tranches
-------------------------------------------------------
Fitch Ratings has downgraded 12 tranches of Eurohome UK Mortgages
plc and affirmed three others.  The downgrades follow Fitch's
concern over the deteriorating performance of the two transactions
comprising mortgage loans originated by DBUK Bank Limited, in the
current difficult economic environment.  The rating actions are
listed at the bottom of this announcement.

According to the latest investor reports, the two Eurohome
transactions reported further reserve fund draws in the amount of
GBP1.4 million (Eurohome UK Mortgages 2007-1 plc) and
GBP2.3 million (Eurohome UK Mortgages 2007-2 plc), leaving 37.56%
and 27.23% of their target amount still outstanding.  The recent
reserve fund draws were caused by the increase in the volume of
repossessed properties sold, which, due to the house price
declines seen to date, have led to higher volumes of losses being
realized.

Although Fitch views the early sale of repossessed properties as a
positive, as it avoids a build-up in cost of carry, this will mean
that excess spread is being utilized to cover any realized losses.
For the two Eurohome transactions that have not had sufficient
excess spread to build their reserve funds to their target levels
the size of losses to date has meant that continuous reserve fund
draws have led to a decline in credit enhancement levels of the
junior notes, which are no longer sufficient to support the
current ratings of the notes.

The decline in interest rates has improved borrower affordability,
as can be seen from the decline in the overall volume of loans in
arrears compared to the previous quarter.  The investor reports
for June 2009 show that loans in arrears by more than three months
have stabilized in the more seasoned Eurohome UK Mortgages 2007-2,
currently at 18.43% of the outstanding pool (compared to 18.59 the
previous quarter), while Eurohome UK Mortgages 2007-1 increased to
15.33%.

Both transactions are fully hedged.  According to the latest
investor reports, the hedges in Eurohome UK Mortgages 2007-2 are
extracting the revenue earned, particularly from the fixed-rate
loans, which are currently generating more revenue -- given the
current low interest rate environment -- than those loans that
have reverted to standard variable rate.  By August 2010 36.59% of
the outstanding portfolio of Eurohome UK Mortgages 2007-2 is due
to revert to standard variable rates, at which point, if interest
rates remain at current levels, the borrowers' payments will
decrease.  Meanwhile, the percentage of fixed-rate loans in
Eurohome UK Mortgages 2007-1 has reduced to 8.32% from 67.68% at
close.

In the course of 2008 Fitch raised its concern about the
performance of the underlying collateral of these transactions.
The loans in the two pools are what Fitch considers to be highly
adverse.  According to the loan-by-loan breakdown of the pool
55.54% (Eurohome UK Mortgages 2007-1 plc) and 29.13% (Eurohome UK
Mortgages 2007-2 plc) of the loans in the pool are buy-to-let
loans, which in the current environment with rising unemployment,
pose an additional risk to the transactions.  The loans in the
pool also fall into the category of high loan-to-value loans.
Weighted average current loan-to-value ratios for Eurohome UK
Mortgages 2007-1 and 2007-2 in June 2009 were reported to be
83.02% and 80.82%, respectively.  Given the decline in the housing
market, Fitch believes that these transactions are likely to see
further losses.  Their inability to generate sufficient excess
spread to date is likely to remain an issue for the deals, which
is why further reserve fund draws are expected on both
transactions.  The agency also believes that their full depletion
is likely to occur in the course of 2009, leading to allocation of
losses on the most junior tranches of both deals.  This has been
reflected in the rating actions Fitch has taken. The rating
actions are:

Eurohome UK Mortgages 2007-1 plc:

  -- Class A (ISIN XS0290416527): downgraded to 'A' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1 (ISIN XS0290417418): downgraded to 'BBB' from 'AA';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class M2 (ISIN XS0290419380): downgraded to 'B' from 'BBB+';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class B1 (ISIN XS0290420396): downgraded to 'CCC' from 'BB';
     Recovery Rating 'RR3' assigned

  -- Class B2 (ISIN XS0290420982): downgraded to 'CC' from 'B-';
     Recovery Rating 'RR6' assigned

  -- Class C (ISIN XS0290421956): downgraded to 'C' from 'CCC';
     Recovery Rating revised to 'RR6' from 'DR4'

  -- MERCS (ISIN XS0290550929) affirmed at 'AAA'; Outlook Stable

Eurohome UK Mortgages 2007-2 plc:

  -- Class A1(A) (ISIN XS0311688054): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A1(B) (ISIN XS0311689532): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2 (ISIN XS0311691272): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A3 (ISIN XS0311693484): downgraded to 'A' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M1 (ISIN XS0311694029): downgraded to 'BBB' from 'AA-';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class M2 (ISIN XS0311695182): downgraded to 'B' from 'BBB+';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class B1 (ISIN XS0311695778): downgraded to 'CC' from 'BB';
     Recovery Rating of 'RR4' assigned

  -- Class B2 (ISIN XS0311697394): downgraded to 'CC' from B-';
     Recovery Rating of 'RR6' assigned

  -- Class C (ISIN XS0311699507): downgraded to 'C' from 'CCC';
     Recovery Rating revised to 'RR6' from 'DR4'


EUROHOME UK 2007-2: Fitch Cuts Ratings on Class C Tranche to 'C'
----------------------------------------------------------------
Fitch Ratings has downgraded 12 tranches of Eurohome UK Mortgages
plc and affirmed three others.  The downgrades follow Fitch's
concern over the deteriorating performance of the two transactions
comprising mortgage loans originated by DBUK Bank Limited, in the
current difficult economic environment.  The rating actions are
listed at the bottom of this announcement.

According to the latest investor reports, the two Eurohome
transactions reported further reserve fund draws in the amount of
GBP1.4 million (Eurohome UK Mortgages 2007-1 plc) and
GBP2.3 million (Eurohome UK Mortgages 2007-2 plc), leaving 37.56%
and 27.23% of their target amount still outstanding.  The recent
reserve fund draws were caused by the increase in the volume of
repossessed properties sold, which, due to the house price
declines seen to date, have led to higher volumes of losses being
realized.

Although Fitch views the early sale of repossessed properties as a
positive, as it avoids a build-up in cost of carry, this will mean
that excess spread is being utilized to cover any realized losses.
For the two Eurohome transactions that have not had sufficient
excess spread to build their reserve funds to their target levels
the size of losses to date has meant that continuous reserve fund
draws have led to a decline in credit enhancement levels of the
junior notes, which are no longer sufficient to support the
current ratings of the notes.

The decline in interest rates has improved borrower affordability,
as can be seen from the decline in the overall volume of loans in
arrears compared to the previous quarter.  The investor reports
for June 2009 show that loans in arrears by more than three months
have stabilized in the more seasoned Eurohome UK Mortgages 2007-2,
currently at 18.43% of the outstanding pool (compared to 18.59 the
previous quarter), while Eurohome UK Mortgages 2007-1 increased to
15.33%.

Both transactions are fully hedged.  According to the latest
investor reports, the hedges in Eurohome UK Mortgages 2007-2 are
extracting the revenue earned, particularly from the fixed-rate
loans, which are currently generating more revenue -- given the
current low interest rate environment -- than those loans that
have reverted to standard variable rate.  By August 2010 36.59% of
the outstanding portfolio of Eurohome UK Mortgages 2007-2 is due
to revert to standard variable rates, at which point, if interest
rates remain at current levels, the borrowers' payments will
decrease.  Meanwhile, the percentage of fixed-rate loans in
Eurohome UK Mortgages 2007-1 has reduced to 8.32% from 67.68% at
close.

In the course of 2008 Fitch raised its concern about the
performance of the underlying collateral of these transactions.
The loans in the two pools are what Fitch considers to be highly
adverse.  According to the loan-by-loan breakdown of the pool
55.54% (Eurohome UK Mortgages 2007-1 plc) and 29.13% (Eurohome UK
Mortgages 2007-2 plc) of the loans in the pool are buy-to-let
loans, which in the current environment with rising unemployment,
pose an additional risk to the transactions.  The loans in the
pool also fall into the category of high loan-to-value loans.
Weighted average current loan-to-value ratios for Eurohome UK
Mortgages 2007-1 and 2007-2 in June 2009 were reported to be
83.02% and 80.82%, respectively.  Given the decline in the housing
market, Fitch believes that these transactions are likely to see
further losses.  Their inability to generate sufficient excess
spread to date is likely to remain an issue for the deals, which
is why further reserve fund draws are expected on both
transactions.  The agency also believes that their full depletion
is likely to occur in the course of 2009, leading to allocation of
losses on the most junior tranches of both deals.  This has been
reflected in the rating actions Fitch has taken. The rating
actions are:

Eurohome UK Mortgages 2007-1 plc:

  -- Class A (ISIN XS0290416527): downgraded to 'A' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1 (ISIN XS0290417418): downgraded to 'BBB' from 'AA';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class M2 (ISIN XS0290419380): downgraded to 'B' from 'BBB+';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class B1 (ISIN XS0290420396): downgraded to 'CCC' from 'BB';
     Recovery Rating 'RR3' assigned

  -- Class B2 (ISIN XS0290420982): downgraded to 'CC' from 'B-';
     Recovery Rating 'RR6' assigned

  -- Class C (ISIN XS0290421956): downgraded to 'C' from 'CCC';
     Recovery Rating revised to 'RR6' from 'DR4'

  -- MERCS (ISIN XS0290550929) affirmed at 'AAA'; Outlook Stable

Eurohome UK Mortgages 2007-2 plc:

  -- Class A1(A) (ISIN XS0311688054): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A1(B) (ISIN XS0311689532): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2 (ISIN XS0311691272): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A3 (ISIN XS0311693484): downgraded to 'A' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M1 (ISIN XS0311694029): downgraded to 'BBB' from 'AA-';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class M2 (ISIN XS0311695182): downgraded to 'B' from 'BBB+';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class B1 (ISIN XS0311695778): downgraded to 'CC' from 'BB';
     Recovery Rating of 'RR4' assigned

  -- Class B2 (ISIN XS0311697394): downgraded to 'CC' from B-';
     Recovery Rating of 'RR6' assigned

  -- Class C (ISIN XS0311699507): downgraded to 'C' from 'CCC';
     Recovery Rating revised to 'RR6' from 'DR4'


GREAT HALL: Fitch Lowers Ratings on Two Tranches to 'CC'
--------------------------------------------------------
Fitch Ratings has downgraded 15 and affirmed 13 tranches of the
three Great Hall Mortgages No. 1 plc transactions.  The rating
actions reflect Fitch's concern over the impact of the current UK
housing and mortgage market on the overall performance of the
transactions.

The latest investor reports for the Great Hall Mortgages series
show a significant increase in the number of repossessed
properties sold in Q209, leading to an increase in the available
revenue, as well as a decrease in the number of outstanding
repossessions compared to the previous quarter in the case of the
two more seasoned transactions -- Great Hall Mortgages No. 1 plc
(2006-1) and Great Hall Mortgages No. 1 plc (2007-1).  For Q209,
the servicer reported 46 properties repossessed in the period
(GBP6.5 million), compared to 56 sold (GBP8.0 million), which led
to a further increase in Great Hall Mortgages No. 1 plc's (2007-2)
outstanding repossessions (2.12% of the current portfolio
outstanding).  In Fitch's view the early sale of repossessed
properties is seen as a positive for the transaction, as this
reduces the cost of carry of the non-performing loans.  Although
the sale of properties results in a loss for the transaction it is
better for the performance of the deal for this loss to be
realized as soon as possible to avoid large losses in any single
period.

According to the investor reports for June 2009, the proceeds from
the sale of repossessed properties in combination with the revenue
received from borrowers, was not sufficient to cover losses that
occurred in Q209, which is why all three transactions have drawn
on their reserve funds.  This quarter's draw of GBP0.3m, which was
the first for Great Hall Mortgages No. 1 plc (2006-1), was fairly
limited in size compared to most of the other UK non-conforming
transactions.  Meanwhile, the two less seasoned transactions
utilized GBP1.4 million (Great Hall Mortgages No. 1 plc (2007-1))
and GBP1.6m (Great Hall Mortgages No. 1 plc (2007-2)) of their
reserve funds to cover for losses realized in the period, leaving
73.01% and 65.07% of their target amounts still outstanding.

The rating actions also reflect Fitch's concern over the lack of a
basis swap, particularly on the two 2007 transactions, which
contain significant portions of loans linked to the Bank of
England base rate.  At closing, Great Hall Mortgages No. 1 plc
(2007-1) and Great Hall Mortgages No. 1 plc (2007-2) had 37.77%
and 23.36% of loans linked to the BBR, while 8.13% of the Great
Hall Mortgages No. 1 plc (2006-1) pool was ultimately linked to
BBR.  As of 30 June 2009, the mismatch between BBR and the three
month Libor paid on the notes stood at 69bps, which is seen as an
additional stress for the two deals in their ability to generate
sufficient excess spread, albeit not as significant as in previous
periods.

The reduction in the BBR and Libor have had some positive effects
on the three transactions.  The rate reductions have led to a
decrease in the interest paid on the notes, but also to an
increase in the number of borrowers who are able to afford their
monthly payments.  This is noticeable in the decline in the
overall volume of loans in arrears.  As of June 2009, the volume
of loans in arrears by more than one month decreased compared to
the previous quarter, leaving between 16.69% (Great Hall Mortgages
No. 1 plc (2007-1)) and 18.63% (Great Hall Mortgages No. 1 plc
(2007-2)) of the current portfolio still in arrears.  The agency
believes that some of the decrease in arrears is to some extent
also driven by the reversion of loans from fixed to floating,
which have led to a reduction in payments due by the borrowers.
The recent loan-by-loan level data shows that between 2.5% (Great
Hall Mortgages No. 1 plc (2006-1)) and 31.75% (Great Hall
Mortgages No. 1 plc (2007-2)) of the current portfolios remain on
a fixed rate and are due to revert to floating by March 2012.

Fitch believes that further reserve fund draws can be expected on
all three transactions.  The agency is of the view that these will
be more significant on the 2007 transactions, and could eventually
lead to their full depletion, which is reflected in the ratings.
The rating actions are:

Great Hall Mortgages No. 1 plc (Series 2006-1):

  -- Class A2a (ISIN XS0276086393) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2b (ISIN XS0276092797) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class Ba (ISIN XS0276086989) affirmed at 'AA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class Bb (ISIN XS0276093332) affirmed at 'AA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class Ca (ISIN XS0276087524) downgraded to 'A-' from 'A';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Cb (ISIN XS0276093928) downgraded to 'A-' from 'A';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Da (ISIN XS0276088506) downgraded to 'BB' from 'BBB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Db (ISIN XS0276095030) downgraded to 'BB' from 'BBB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Ea (ISIN XS0276089223) affirmed at 'B'; Outlook
     Negative; assigned Loss Severity Rating 'LS-5'

Great Hall Mortgages No. 1 plc (Series 2007-1):

  -- Class A2a (ISIN XS0288626525) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2b (ISIN XS0288627507) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class Ba (ISIN XS0288628224) affirmed at 'AA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class Bb (ISIN XS0288628810) affirmed at 'AA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class Ca (ISIN XS0288629545) downgraded to 'BBB+' from 'A';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Cb (ISIN XS0288630121) downgraded to 'BBB+' from 'A';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Da (ISIN XS0288630394) downgraded to 'B' from 'BB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Db (ISIN XS0288630550) downgraded to 'B' from 'BB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Ea (ISIN XS0288630808) affirmed at 'CCC'; Recovery
     Rating 'RR2'

Great Hall Mortgages No. 1 plc (Series 2007-2):

  -- Class Aa (ISIN XS0308354504) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class Ab (ISIN XS0308354843) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class Ac (ISIN XS0308462141) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class Ba (ISIN XS0308356970) downgraded to 'A' from 'AA-';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Ca (ISIN XS0308357358) downgraded to 'BBB' from 'A-';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Cb (ISIN XS0308355733) downgraded to 'BBB' from 'A-';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class Da (ISIN XS0308357788) downgraded to 'B' from 'BB';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class Db (ISIN XS0308356111) downgraded to 'B' from 'BB';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

  -- Class Ea (ISIN XS0308357861) downgraded to 'CC' from 'CCC';
     Recovery Rating revised to 'RR4' from 'DR2'

  -- Class Eb (ISIN XS0308356467) downgraded to 'CC' from 'CCC';
     Recovery Rating revised to 'RR4' from 'DR2'


HORNSEA ESTATES: Deloitte Appointed as Administrators
-----------------------------------------------------
Greg Wright at Yorkshire Post reports that Hornsea Estates and
Hornsea Estates (No. 2), the companies which operate the Hornsea
Freeport factory outlet shopping village in East Yorkshire, have
gone into administration.

Yorkshire Post relates Dan Butters and Ian Brown, of business
advisory firm Deloitte, were appointed joint administrators of the
companies on July 24.

"The outlet has suffered as a result of the current economic
environment, and is further evidence of the continued pressure
being experienced by the retail sector as consumers continue to
rein back their spending," Yorkshire Post quoted Dan Butters, who
is based in Deloitte's Leeds office, as saying.

The Hornsea Freeport factory outlet, Yorkshire Post discloses, has
43 retail units on a 16 acre site, with tenants including Clarks,
Hallmark and Thorntons.  Mr. Butters, as cited by Yorkshire Post,
said, "It is the joint administrators' intentions to continue to
operate the outlet, while undertaking a marketing process to
identify potential interested parties to acquire all or part of
the business.  We are working with the retail tenants to secure
their occupancy for the future."


INMARSAT HOLDINGS: S&P Raises Corporate Credit Rating to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating on U.K.-based mobile satellite
services provider Inmarsat Holdings Ltd. and related entities to
'BB+' from 'BB'.  At the same time, S&P raised the long-term
corporate credit rating on Inmarsat PLC-owned, and Newfoundland-
based, satellite communications provider Stratos Global Corp. to
'BB+' from 'BB'.  All ratings were removed from CreditWatch, where
they were placed with positive implications on May 12, 2009.  The
outlook is stable.

"The upgrade follows the signing of a new forward start facility
that will be used to refinance Inmarsat's senior bank facilities,
which mature in May 2010, leading to a more extended maturity
profile," said Standard & Poor's credit analyst Michael O'Brien."
What's more, the recent acquisition of Stratos in S&P's view
reflects a strengthening of Inmarsat's business risk profile due
to the benefits of vertical integration."

Stratos was the source of 43.6% of Inmarsat's core revenues in
2008.

S&P considers that the combination of the Stratos acquisition and
the renewal of framework distribution agreements will strengthen
Inmarsat's position in the mobile satellite services industry.
This should enable the group to address the needs of its customers
more directly and shape product offerings and traffic growth to
the benefit of the industry overall.

"So far, Inmarsat's operating performance has proved resilient in
the economic downturn," added Mr. O'Brien.  "Such resilience is
due to its strong position and growth opportunities in the
maritime data market -- despite pressures on the shipping industry
and low orders for new ship builds."

In addition, Inmarsat benefits from the diversification of
revenues across customer segments such as leasing and
aeronautical.  Increasing demand in these segments, coupled with
continued growth in active terminals, provides further comfort.

Total adjusted debt was about US$1.8 billion on March 31, 2009,
including the full consolidation of Stratos.  S&P considers
leverage to be quite high -- given the fair business risk profile
-- at 3.2x adjusted debt to EBITDA for the 12 months to March 31,
2009, but S&P believes that it should improve moderately on the
back of EBITDA growth.

In S&P's opinion, Inmarsat should be able to comfortably cover
dividend payments with FOCF given its good performance to date and
lower capital expenditures at this point of its investment cycle
over the next 18 months.  S&P also anticipates that the Inmarsat's
ratio of adjusted debt to EBITDA (including Stratos) will not
exceed 3.5x and that adequate liquidity will be maintained via its
revolving credit facility.

Operational underperformance due to greater-than-expected
competition, satellite failure, or the introduction of a more
aggressive financial policy would likely put pressure on the
ratings, as would a change in capital structure leading to
leverage becoming meaningfully weaker than the current capital
structure.

Rating upside is currently constrained.  This is because
Inmarsat's fair business risk and financial risk profiles indicate
significant financial risk according to Standard & Poor's Business
Risk/Financial Risk Framework.


MBM PRODUCE: Goes Into Administration; 84 Jobs Affected
-------------------------------------------------------
Cambs Times reports that MBM Produce Ltd. (trading as MBMG) has
gone into administration, resulting in the loss of 84 of the 100
jobs at the company.

The report relates Ian Carr and Malcolm Shierson of Grant Thornton
were appointed joint administrators to the company.  According to
the report, two MBMG trading sites in Holbeach and Bicker in
Lincolnshire will be closed.

The report notes about 15 staff at the March headquarters also
face uncertain prospects while the administrators consider the
future of the firm.

Headquartered in March, Cambridgeshire, MBMG --
http://www.mbm.uk.com/-- is a potato trading company.  It
It was formed in 2006 by the amalgamation of two respected produce
companies - MBM Produce Ltd and FW Gedney.


MCMENEMY HILL: In Liquidation; B&C Associates Appointed
-------------------------------------------------------
Meetpie.com reports that McMenemy Hill Group Ltd. has gone into
liquidation, resulting in the loss of 21 jobs.

The report relates B&C Associates has been appointed as liquidator
for the company following a creditors' meeting earlier this month.
The company's Live Communications events agency ceased trading in
January, the report discloses.

"The group's efforts to combat financial difficulty were
unsuccessful," the report quoted founder Sean McMenemy as saying.

Based in Surrey, McMenemy Hill Group Ltd. is an events agency.
Its clients included BT, Thomson Reuters and Royal Liver.


LEHMAN BROTHERS: Subordination of Rights Valid Under English Law
----------------------------------------------------------------
Perpetual Trustee Company Limited, acting in its capacity as
trustee for retail investors in Australia, New Zealand and Papua
New Guinea, yesterday obtained a judgment in the English High
Court to the effect that certain provisions which allow for the
subordination of the rights or beneficial entitlements of Lehman
Brothers Special Financing Inc. on its bankruptcy or default are
valid and effectual under English law.

Perpetual was represented by English lawyers from Sidley Austin
working together with lawyers from the Australian firm of Henry
Davis York.  The action -- dubbed Perpetual Trustee Company
Limited v BNY Corporate Trustee Services Limited and Lehman
Brothers Special Financing Inc. (together with a similar case
called Belmont Park Investments Pty Limited and Others v BNY
Corporate Trustee Services Limited and Lehman Brothers Special
Financing Inc.) -- has been closely monitored by market
participants given its potentially far-reaching significance to
similar synthetic CDO and other derivative transactions in which
parties have deliberately selected English law to govern their
dealings.

The proceedings were brought by Perpetual as the holder of certain
credit-linked notes issued as part of the "Dante" Note Programme
sponsored by LBSF and its affiliates.  The proceedings were
brought against BNY Corporate Trustee Services Limited.  LBSF
obtained an order under which it was joined as party to the
proceedings.

The Court considered a variety of issues including the issue of
whether BNY should be prevented from applying "Noteholder
Priority" in relation to the distribution of the proceeds of the
Collateral over which it was directed to enforce security
following an acceleration of the Notes held by Perpetual.  The
documents (which were governed by English law) provided for a
reversal of the priority of payments to allow Perpetual (as holder
of the Notes) to be paid ahead of LBSF (as Swap Counterparty) if
there was an Event of Default in relation to LBSF under the Swap
Agreement.  An Event of Default under the Swap Agreement had
occurred as a result of the Chapter 11 Bankruptcy filing of LBSF
in the United States and other events.

While BNY adopted a neutral stance on the substantive issues, LBSF
maintained that certain provisions of the US Bankruptcy Code --
the so-called "ipso facto" rule -- and, in the alternative,
provisions of English law, operated to prevent the reversal of the
priority of payments.

The decision confirms that provisions in contracts governed by
English law that subordinate the rights or beneficial entitlements
of the swap counterparty on an insolvency or other default will
not generally be prohibited by English law.  The efficacy of
provisions such as these is widely perceived to be an important
assumption in the assignment by credit rating agencies of credit
ratings to credit-linked notes and other instruments.  The
validity of provisions such as these as a matter of US law has yet
to be determined by the US courts and is presently the subject of
litigation in the US.

Leave to appeal has been granted.

As to the question of whether the English Court will permit the
application of foreign insolvency laws (by virtue of an
application under the Cross Border Insolvency Regulations 2006 to
invalidate the subordination provisions, the English Court
adjourned the proceedings to permit an appropriate application for
recognition and assistance under the CBIR to be made by LBSF.

Sidley Austin is one of the world's largest full-service law
firms, with approximately 1,700 lawyers practising in 16 U.S. and
international cities, including Beijing, Brussels, Frankfurt,
Geneva, Hong Kong, London, Shanghai, Singapore, Sydney and Tokyo.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offered a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo were complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for Chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).  Several other affiliates
followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
United States District Court for the Southern District of New
York, entered an order commencing liquidation of Lehman Brothers,
Inc., pursuant to the provisions of the Securities Investor
Protection Act in the case captioned Securities Investor
Protection Corporation v. Lehman Brothers Inc., Case No. 08-CIV-
8119 (GEL).  James W. Giddens has been appointed as trustee for
the SIPA liquidation of the business of LBI

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.  Nomura Holdings Inc., the
largest brokerage house in Japan, on September 22 reached an
agreement to purchased Lehman Brothers Holdings, Inc.'s operations
in Europe and the Middle East less than 24 hours after it reached
a deal to buy Lehman's operations in the Asia Pacific for
US$225 million.  Nomura paid only US$2 dollars for Lehman's
investment banking and equities businesses in Europe, but agreed
to retain most of Lehman's employees.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of
JPY4 trillion -- US$38 billion).  Lehman Brothers Japan Inc.
reported about JPY3.4 trillion (US$33 billion) in liabilities in
its petition.  Akio Katsuragi, a former Morgan Stanley executive,
runs Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

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


NORTEL NETWORKS: Gets Canadian and U.S. Court OK on Ericsson Deal
-----------------------------------------------------------------
Nortel Networks Corporation said that at a joint hearing July 28,
the Company, its principal operating subsidiary Nortel Networks
Limited, and certain of its other subsidiaries including Nortel
Networks Inc., obtained orders from the Ontario Superior Court of
Justice and the United States Bankruptcy Court for the District of
Delaware approving the sale agreement with Telefonaktiebolaget LM
Ericsson for substantially all of Nortel's CDMA business and LTE
Access assets for a purchase price of US$1.13 billion.

As reported by the Troubled Company Reporter, under the asset sale
agreement, Ericsson will purchase substantially all of Nortel's
CDMA business which is the second largest supplier of CDMA
infrastructure in the world, and substantially all of Nortel's LTE
Access assets giving it a strong technology position in next
generation wireless networks.  Also as part of this agreement, a
minimum of 2,500 Nortel employees supporting the CDMA and LTE
Access business will receive offers of employment from Ericsson.
Completion of the sale is subject to regulatory and other
customary closing conditions, and the purchase price is subject to
certain post-closing adjustments.  Nortel will work diligently
with Ericsson to close the sale later this year.

                      About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next-
generation technologies, for both service provider and enterprise
networks, support multimedia and business-critical applications.
Nortel's technologies are designed to help eliminate today's
barriers to efficiency, speed and performance by simplifying
networks and connecting people to the information they need, when
they need it.  Nortel does business in more than 150 countries
around the world.  Nortel Networks Limited is the principal direct
operating subsidiary of Nortel Networks Corporation.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young has been appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.  The Monitor also sought recognition of the CCAA
Proceedings in the Bankruptcy Court under Chapter 15 of the
Bankruptcy Code.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

The Chapter 15 case is Bankr. D. Del. Case No. 09-10164.  Mary
Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll
& Rooney PC, in Wilmington, Delaware, serves as Chapter 15
petitioner's counsel.

Certain of Nortel's European subsidiaries have also made
consequential filings for creditor protection.  The Nortel
Companies related in a press release that Nortel Networks UK
Limited and certain subsidiaries of the Nortel group incorporated
in the EMEA region have each obtained an administration order
from the English High Court of Justice under the Insolvency Act
1986.  The applications were made by the EMEA Subsidiaries under
the provisions of the European Union's Council Regulation (EC)
No. 1346/2000 on Insolvency Proceedings and on the basis that
each EMEA Subsidiary's centre of main interests is in England.
Under the terms of the orders, representatives of Ernst & Young
LLP have been appointed as administrators of each of the EMEA
Companies and will continue to manage the EMEA Companies and
operate their businesses under the jurisdiction of the English
Court and in accordance with the applicable provisions of the
Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated and Nortel Networks (CALA) Inc., have material
operations and are not part of the bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about US$4.2
billion of unsecured public debt.

Bankruptcy Creditors' Service, Inc., publishes Nortel Networks
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Nortel Networks
Corp. and its various affiliates.  (http://bankrupt.com/newsstand/
or 215/945-7000)


===============
X X X X X X X X
===============


* Last Week's 3 Defaults Raise S&P Tally to 184
-----------------------------------------------
Three global corporate issuers defaulted in the week of July 17,
bringing the 2009 year-to-date tally to 184 issuers -- nearly 4x
the 48 defaults at this time in 2008, said an article published
July 24 by Standard & Poor's, titled "Global Corporate Default
Update (July 17 - 23, 2009) (Premium)."

The three defaults were spread equally among the U.S., Europe,
and the emerging markets, bringing the default tallies by region
to 131 issuers in the U.S., 10 in Europe, 31 in the emerging
markets, and 12 in the other developed region (Australia, Canada,
Japan, and New Zealand).

"All three defaults this week were the results of distressed
exchanges, upping the distressed exchange tally to 54 issuers so
far this year," said Diane Vazza, head of Standard & Poor's Global
Fixed Income Research Group.

"Distressed exchanges have surged this year, with the midyear 2009
tally at more than 3x the full-year 2008 total and almost 14x the
count of four issuers in 2007."

Bankruptcy filings remain at 51 issuers, which is more than the
full-year 2008 total of 49 bankruptcy-related defaults.  The sharp
increase in corporate bankruptcies brings with it significant
difficulties to private equity investors, particularly for those
whose buyout activities in the past several years placed much of
their risks squarely in the speculative-grade domain.

Indeed, more than half of the defaulters this year either had or
continue to have private equity involvement, which presents both
challenges and opportunities to private equity investors during
restructuring and reorganization.

Of the global corporate defaulters so far this year, 41% of issues
with available recovery ratings had recovery ratings of '6'
(indicating our expectation for negligible recovery of 0%-10%),
17% of issues had recovery ratings of '5' (modest recovery
prospects of 10%-30%), 12% had recovery ratings of '4' (average
recovery prospects of 30%-50%), and 10% had recovery ratings of
'3' (meaningful recovery prospects of 50%-70%).  And for the
remaining two rating categories, 12% of issues had recovery
ratings of '2' (substantial recovery prospects of 70%-90%) and 8%
of issues had recovery ratings of '1' (very high recovery
prospects of 90%-100%).

The precipitous increase in defaults reflects a pronounced decline
in economic fundamentals and earnings prospects, as well as the
continued unfavorable environment for the lowest rungs of the
ratings latter, effectively halting lending to low-rated
speculative-grade borrowers.  A large number of defaults likely
will be concentrated in the first two or three quarters of 2009 as
a result of these factors, coupled with distressed exchange
offers.  Four other factors make the current environment more
conducive to defaults: deep recessionary conditions in the U.S., a
record-high proportion of issuers with speculative-grade ratings,
the highest volume of low-rated issuance since 2003, and the
seasoning of much of the debt rated 'B-' or lower issued in the
past several years.

Because of these factors, our current 12-month-trailing U.S.
corporate speculative-grade default rate forecast is 13.9% by mid-
2010, with a pessimistic scenario of 18% and an optimistic
scenario of 11.4%.

This article is part of S&P's premium Global Fixed Income Research
content, which is available to premium subscribers to
RatingsDirect, at http://www.ratingsdirect.com/ Ratings
information can also be found on Standard & Poor's public Web site
at http://www.standardandpoors.com/; under Ratings in the left
navigation bar, select Find a Rating. Members of the media may
request a copy of this report by contacting the media
representative provided.

Global Fixed Income Research:
    Diane Vazza, New York
    (1) 212-438-2760;
    diane_vazza@standardandpoors.com

Media Contact:
    Mimi Barker, New York
    (1) 212-438-5054;
    mimi_barker@standardandpoors.com


* Weakest Links Ease to 285 as Defaults Mount, S&P Article Says
---------------------------------------------------------------
The number of global weakest links continued to decline to 285 as
of July 17, 2009, from 290 in June and a record high of 300 in
April.  The decline was largely attributable to the sharp rise
in defaults, many of which were weakest links, said an article
published July 27 by Standard & Poor's.

"This is a trend that likely will continue for some time," said
Diane Vazza, head of Standard & Poor's Global Fixed Income
Research Group.  "Eroding credit quality leads to lower ratings
and more entities with negative outlooks or with ratings on
CreditWatch with negative implications as well as increased
vulnerability to default."

The 285 weakest links have combined rated debt worth
US$397.8 billion.  By sector, media and entertainment, forest
products and building materials, and retail and restaurants were
the most vulnerable, with the highest concentrations of weakest
links, according to the article, titled "Global Bond
Markets' Weakest Links And Monthly Default Rates (Premium)."

Weakest links are defined as issuers rated 'B-' or lower with
either a negative outlook or with ratings on CreditWatch with
negative implications, and they are at greater risk of default.
Corporate defaults continue to rise rapidly in 2009, already
surpassing the number in all of 2008.  Through July 17, 2009, 179
issuers defaulted, affecting debt worth US$424.44 billion. By
comparison, 126 defaults were recorded in all of 2008, affecting
debt worth US$433 billion.

The 12-month-trailing global corporate speculative-grade bond
default rate increased to 8.25% in June 2009 from 7.3% in May and
is now more than 10x the 25-year low of 0.79% recorded in November
2007.

The standard version of this article is part of S&P's standard
Global Fixed Income Research content.  The premium version
contains expanded analysis of the article's most significant
points, typically broken out by sector and region.

Also in the premium version are in-depth charts and tables, the
underlying data of which are available for download.  Ratings
information can also be found on Standard & Poor's public Web site
at www.standardandpoors.com; under Ratings in the left navigation
bar, select Find a Rating.  Members of the media may request a
copy of this report by contacting the media representative
provided.

Global Fixed Income Research:
    Diane Vazza, New York
    (1) 212-438-2760;
    diane_vazza@standardandpoors.com

Media Contact:
    Mimi Barker, New York
    (1) 212-438-5054;
    mimi_barker@standardandpoors.com

                            *********

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.


                 * * * End of Transmission * * *