TCREUR_Public/090730.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

            Thursday, July 30, 2009, Vol. 10, No. 149

                            Headlines

A U S T R I A

AUSTRIAN AIRLINES: Lufthansa Submits New Antitrust Concessions
GOESTL KG: Creditors Must File Claims by August 5
INNOTECH-PLANUNG: Creditors Must File Claims by August 3
K & D TROCKENBAU: Creditors Must File Claims by August 3
LEITHENMAYR KFZ-WERKSTATTEN: Claims Filing Period Ends August 4

PERFECT KRAFTFAHRZEUGTECHNIK: Claims Filing Deadline is August 5
TECHNOFORM GMBH: Creditors Must File Claims by August 5
TECWINGS MANAGEMENT: Creditors Must File Claims by August 5


A Z E R B A I J A N

BANK STANDARD: Moody's Cuts Bank Financial Strength Rating to 'E'


F R A N C E

GAMMA: Has Liquidity Crunch; May File for Bankruptcy
LE GRAND: Put Into Receivership; Buyer Sought for Citizen K Int'l
PEUGEOT CITROEN: Drops Factory Plan; Posts EUR962MM 1H09 Loss


G E R M A N Y

CONTINENTAL AG: Board May Support EUR1.5 Bln Capital Increase
ESCADA AG: Improves Bond Exchange Offer
GENERAL MOTORS: Magna Improves Offer for Opel Division
HAPAG-LLOYD AG: Tui to Provide Two-Thirds of Short-Term Financing
TUI AG: Moody's Downgrades Corporate Family Rating to 'B3'


I R E L A N D

ANGLO IRISH: Probe Into Directors' Loans Extended
CELF LOAN: Moody's Cuts Ratings on Three Classes of Notes to Low-B
CLOVERIE PLC: S&P Downgrades Ratings on Three Tranches to 'D'
GSC EUROPEAN: Moody's Junks Ratings on Three Classes of Notes
ZOE DEVELOPMENTS: Court to Rule on Examinership on July 31


I T A L Y

GRUPPO EDITORIALE: S&P Downgrades Corporate Credit Rating to 'BB'


K A Z A K H S T A N

ARMA AKTAU: Creditors Must File Claims by August 7
CAPITAL CONSTRUCTION: Creditors Must File Claims by August 7
TURKISTAN BUILDING: Creditors Must File Claims by August 7


K Y R G Y Z S T A N

AREA AJ: Creditors Must File Claims by August 15


N E T H E R L A N D S

E-MAC NL: Moody's Withdraws 'Ca' Ratings on Three Classes of Notes


P O R T U G A L

LUSITANO MORTGAGES: S&P Raises Rating on Class E Notes to 'BB+'


R U S S I A

AK BARS: Moody's Cuts Bank Financial Strength Rating to 'E+'
EN+ GROUP: Gets Reprieve on US$1 Billion Loans
RBC INFORMATION: Offers Creditors to Restructure Half of Debt
RUSSIAN RAILWAYS: S&P Assigns Ratings to Three New Bonds


S E R B I A   &   M O N T E N E G R O

METALS BANKA: Receivership to Be Completed


S L O V A K   R E P U B L I C

SKYEUROPE HOLDING: Future Uncertain; Search for Investor Continues


S W I T Z E R L A N D

HOT CHOCOLATE: Claims Filing Deadline is August 10
RESTAURANT WOK: Claims Filing Deadline is August 10
YALCINO-X GMBH: Creditors Must File Claims by August 3


T U R K E Y

TURKIYE SINAI: Fitch Affirms 'BB' Long-Term Foreign Currency IDR


U N I T E D   K I N G D O M

ALIZYME PLC: Enters Administration; Grant Thornton Appointed
COFFEE REPUBLIC: Arab Investments Completes Acquisition
EW PAYNE: To Close Following Payment of Established Liabilities
HSS HIRE: Taps PwC to Help Renegotiate Lending Terms
INEOS GROUP: S&P Raises Long-Term Corp. Credit Rating to 'CCC+'

NEWQUAY RESTAURANT: Goes Into Administration
SMART ENERGY: Enters Into Administration
TATA MOTORS: KPMG and Roland Berger to Advise on Jaguar Unit
WHITE TOWER: Barclays Values Loan Collateral at GBP900 Million
WM LAWRENCE: Venture Finance Provides Factoring Facility

YORK PHARMA: In Administration; Leonard Curtis Appointed


U Z B E K I S T A N

QISHLOQ QURILISH: Moody's Upgrades Global Deposit Rating to 'B2'

* PwC Research Says UK Insolvencies May Climb Again
* PwC Says UK Travel Insolvency Rate Drops in 2nd Quarter of 2009
* Begbies Traynor Says Firms in Financial Difficulty in Q209 Rise
* Companies Mull Further Cost-Cutting, KPMG Survey Finds
* Deloitte Says FTSE 100 Pension Scheme Funding Deficits Soar

* Upcoming Meetings, Conferences and Seminars


                         *********



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


AUSTRIAN AIRLINES: Lufthansa Submits New Antitrust Concessions
--------------------------------------------------------------
Nikki Tait at The Financial Times reports that the Deutsche
Lufthansa AG has submitted new proposal to the European Commission
in an effort to resolve competition concerns surrounding its
planned takeover of Austrian Airlines.

"We will now market-test this," the FT quoted a European Union
official as saying.

The FT relates that the EU official said that the test would aim
to verify whether the new concessions would offset concerns from
Lufthansa's rivals about the possible anticompetitive effects of
the deal.

According to the FT, the German carrier asked Austria's takeover
authorities to extend by a month the original deadline for the
deal of July 31.

In a separate report the FT discloses Lufthansa said it believed
European regulators would accept its new proposals.  The airline,
as cited by the FT, said "There is an amended offer . . . we are
confident that we will reach a solution".  The FT says the request
to push the deadline back to August 31 is being considered by the
Austrian takeover commission but Lufthansa said it did not expect
it to be refused.  The FT notes an end-of-July deadline for EU
approval was a condition of Lufthansa's earlier tender offer to
Austrian's shareholders and the German carrier could walk away
from the proposed takeover if the Commission fails to give
approval by the month's end.

                         Capital Injection

As reported in the Troubled Company Reporter-Europe on July 16,
2009, the FT said Austrian Airlines warned it would need EUR1
billion (US$1.4 billion) in new funds if a takeover proposed by
Lufthansa fails as the result of the row between the German
airline and the European Commission over the terms of the deal.
The FT disclosed Peter Malanik, Austrian Airline's co-chief
executive, warned that the failure of the deal would result in the
need for a huge capital injection and be followed by a radical
downsizing of the airline -- which would then still need a strong
partner.  According to the FT, Peter Michaelis, chairman of
Austrian Airline, told the carrier's shareholder meeting that if
the transaction failed the company would need "more than twice"
the EUR500 million pledged by the government in Vienna as part of
the purchase by Lufthansa.  Austrian Airlines, the FT said, lost
more than EUR400 million last year and increased its debt to
EUR1 billion, although half of this would in effect be absorbed by
Vienna.

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

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


GOESTL KG: Creditors Must File Claims by August 5
-------------------------------------------------
Creditors of Goestl KG have until August 5, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 19, 2009 at 10:30 a.m. at:

         Land Court of Korneuburg
         Hall 204
         Second Floor
         Korneuburg
         Austria

For further information, contact the company's administrator:

         Dr. Thomas Engelhart
         Esteplatz 4
         1030 Wien
         Tel: 01/712 33 30
         Fax: 01/712 33 30 30
         E-mail: kanzlei@engelhart.at


INNOTECH-PLANUNG: Creditors Must File Claims by August 3
--------------------------------------------------------
Creditors of INNOTECH-Planung und Vertrieb GmbH have until
August 3, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 17, 2009 at 10:00 a.m. at:

         Land Court of Linz
         Room 522
         5th Floor
         Linz
         Austria

For further information, contact the company's administrator:

         Ing. Mag. Wilhelm Hermann Deutschmann
         Stelzhamerstrasse 12/3
         4020 Linz
         Austria
         Tel: 0732 602080
         Fax: 0732 60208020
         E-mail: info@df-ra.at


K & D TROCKENBAU: Creditors Must File Claims by August 3
--------------------------------------------------------
Creditors of K & D Trockenbau und Industriemontage GmbH have until
August 3, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 17, 2009 at 9:00 a.m. at:

         Land Court of Linz
         Meeting Room
         5th Floor
         Linz
         Austria

For further information, contact the company's administrator:

         Mag. Martin Wakolbinger
         City Tower II
         Lastenstrasse 36
         4020 Linz
         Austria
         Tel: 0732/777222
         Fax: 0732/777222-33
         E-mail: office@weixelbaumhumer.com


LEITHENMAYR KFZ-WERKSTATTEN: Claims Filing Period Ends August 4
---------------------------------------------------------------
Creditors of Leithenmayr KfZ-Werkstatten GmbH have until August 4,
2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 18, 2009 at 1:45 p.m. at:

         Land Court of Steyr
         Hall 7
         Second Floor
         Steyr
         Austria

For further information, contact the company's administrator:

         Dr. Julius Bitter
         Schmideggstrasse 5
         4560 Kirchdorf/Krems
         Austria
         Tel: 07582/60040
         Fax: DW 4
         E-mail: office@ra-bitter.at


PERFECT KRAFTFAHRZEUGTECHNIK: Claims Filing Deadline is August 5
----------------------------------------------------------------
Creditors of Perfect Kraftfahrzeugtechnik GmbH have until
August 5, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 19, 2009 at 11:00 a.m. at:

         Land Court of Korneuburg
         Room 204
         Second Floor
         Korneuburg
         Austria

For further information, contact the company's administrator:

         Dr. Michaela Jahn
         Dr. Wilhelm Exner Platz 6
         2230 Ganserndorf
         Austria
         Tel: 02282/60 802
         Fax: 02282/60 824
         E-mail: mjahn@lawpartners.at


TECHNOFORM GMBH: Creditors Must File Claims by August 5
-------------------------------------------------------
Creditors of TECHNOFORM GmbH have until August 5, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 19, 2009 at 10:00 a.m. at:

         Land Court of Korneuburg
         Room 204
         Second Floor

For further information, contact the company's administrator:

         Dr. Robert Klein
         Spiegelgasse 10
         1010 Wien
         Austria
         Tel.: 01/513 99 39
         Fax: 01/513 99 39 30
         E-mail: klein@lawcenter.at


TECWINGS MANAGEMENT: Creditors Must File Claims by August 5
-----------------------------------------------------------
Creditors of TECWINGS Management GmbH have until August 5, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 19, 2009 at 11:30 a.m.

For further information, contact the company's administrator:

         Dr. Helmut Platzgummer
         Kohlmarkt 14
         1010 Wien
         Austria
         Tel: 01/533 19 39 Serie
         Fax: 01/533 19 39 39
         E-mail: helmut.platzgummer@lp-law.at


===================
A Z E R B A I J A N
===================


BANK STANDARD: Moody's Cuts Bank Financial Strength Rating to 'E'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term foreign and
local currency deposit ratings of Azerbaijan's Bank Standard to B3
from B1 and the bank financial strength rating to E from E+.  The
outlook for the long-term deposit ratings is negative while the
BFSR carries a stable outlook.

The downgrade of Standard's ratings has been prompted by the
material deterioration in its risk profile, as reflected in a
significant decline in its asset quality, increasing market risk
and stand-alone liquidity risks as well as Moody's growing
concerns that the bank is likely to continue to require external
support from the Central Bank of Azerbaijan.

Moody's notes that the bank's reported level of problem loans
(overdue for more than 90 days) reached 25% in Q1 2009.  In
addition, the bank's recently revealed high balance-sheet exposure
to market risk led to sizeable trading losses as a result of the
sharp decline on the Russian securities market in H2 2008.  The
bank's combined exposure to Russian equity and fixed-income
instruments was around 16% of total assets or 100% of its Tier 1
capital.

The magnitude of the downgrade reflects Moody's expectation of
significant erosion of Standard's capital base given the high
level of anticipated credit and trading losses in relation to its
equity.  Moody's also cites the bank's insufficient level of loan
loss reserves, which provided a low 29% coverage of problem loans
at the end of May 2008, as an additional factor in the downgrade.
The rating action also reflects Moody's concerns about the bank's
liquidity profile in the medium term given Standard's highly
volatile deposit base.  Liquidity could become stressed given the
bank's level of capitalization.

Moody's notes that Standard's liquidity position is being
supported by the CBA which has recently provided a short-term loan
of AZN50 million (US$62.3 million), and the bank is likely to
receive an additional tranche to repay its external borrowings.
The rating agency is of the opinion that economic capitalization
and liquidity are currently the key determinants in assessing
Standard's financial strength.  Thus, the above-mentioned
concerns, together with the uncertainty surrounding Standard's
capitalization, have prompted the downgrade of Standard's BFSR to
E from E+.

The negative outlook on Standard's long-term deposit ratings
reflects Moody's expectation that the difficult operating
environment will exert negative pressure on the bank's financial
fundamentals and that the bank will likely require support from
its regulator -- in the form of liquidity and capital -- to avoid
insolvency and maintain franchise viability in the near-to-medium
term.

Standard's B3 deposit ratings factor in a low probability of
systemic support given its relative importance to the country's
banking system as the second-largest bank, and result in a one-
notch uplift from the bank's Baseline Credit Assessment of Caa1.

Moody's previous rating action on Bank Standard was on July 25,
2007, when the B1/Not Prime/E+ ratings were assigned.

Headquartered in Baku, Azerbaijan, Bank Standard reported total
assets under local accounting standards of AZN519.5 million
(US$646.5 million) and total shareholders' equity of
AZN84.5 million (US$105.1 million) as at May 31, 2009.  (Audited
IFRS 2008 have not yet been made publicly available).


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


GAMMA: Has Liquidity Crunch; May File for Bankruptcy
----------------------------------------------------
Helene Fouquet at Bloomberg News reports that French photo agency
Gamma told the Paris commercial court it can no longer pay its
bills.

Bloomberg relates Jean-Luc Luyssen, a photographer at the agency
since 2002, said Eyedea SA, the company that owns Gamma, is making
a last-ditch effort to rescue the photo agency, which employs 56
people.  According to Bloomberg, the action could lead to the
reorganization of the entity, failing which it may file for
bankruptcy.


LE GRAND: Put Into Receivership; Buyer Sought for Citizen K Int'l
-----------------------------------------------------------------
The Edipresse Group has decided to look for a buyer for the
magazine Citizen K International, published in Paris.  Over the
course of its fifteen year existence, Citizen K International has
imposed itself as the true reference point in the world of fashion
and lifestyle.

Welcomed enthusiastically in the various markets where it is
present (in particular France and Russia), the title today enjoys
a distribution of over 100’000 copies in France.

The current financial situation however requires increased efforts
for the title to be able to continue its development and in
particular, pursue its international expansion.  In this context,
Citizen K International can no longer be considered as a priority
for the Edipresse Group, the publication's majority shareholder.

Affected by the deterioration of the advertising market in France
and abroad, the company Le Grand Kapital, Citizen K
International's publisher, has been put into receivership by the
Bankruptcy Court of Paris.  This solution will allow the company
to restructure itself and to find solutions guaranteeing the
title's future prosperity; all while allowing a buyer to be found.
Foreign editions, published under license, are not affected by
these current recovery proceedings.


PEUGEOT CITROEN: Drops Factory Plan; Posts EUR962MM 1H09 Loss
-------------------------------------------------------------
Laurence Frost at Bloomberg News reports that PSA Peugeot Citroen
S.A. has withdrawn its plan to build a third factory in China with
local partner Dongfeng Motor Group Co.

Bloomberg relates Peugeot Citroen spokesman Pierre-Olivier Salmon
said that the Paris-based carmaker's two existing Chinese plants,
with a combined annual production capacity of 450,000 vehicles,
are "quite sufficient to cover our sales".

According to Bloomberg, Peugeot Citroen has been losing ground in
China, where its sales last year fell 3.7 percent to 188,000
vehicles even as the market grew 9 percent, amid a reorganization
of the Citroen brand's dealer network.

                          Loss

Helen Massy-Beresford at Reuters reports that Peugeot Citroen,
which has been hit by an unprecedented sales crisis, recorded a
net loss of EUR962 million in the first half of 2009, compared
with a net profit of EUR733 million in the same period last year.

Reuters discloses operating loss for the first half was EUR1.332
billion, compared with an operating profit of EUR1.029 billion in
the first half of 2008.  According the Reuters, Peugeot Citroen
said in a statement that the group had a recurring operating loss
of EUR826 million "due to adverse market and industry conditions".

                           Sales

On July 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that the group's sales of cars and light
trucks fell 14% in the first half of 2009 to 1.59 million,
compared with 1.85 million a year earlier

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

                         *     *     *

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


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


CONTINENTAL AG: Board May Support EUR1.5 Bln Capital Increase
-------------------------------------------------------------
Chris Reiter at Bloomberg News reports that Continental AG is
likely to back plans to raise EUR1.5 billion (US$2.1 billion) in a
share sale.

According to Bloomberg, half of Continental's supervisory board
hails from unions that favor a capital increase to safeguard the
company's survival.  Bloomberg discloses the 20-member board meets
in Hannover, Germany, today, July 30, to decide whether to remain
apart from Schaeffler AG, its majority owner, or combine
operations.

"It'll be difficult for Schaeffler to secure a majority,"
Bloomberg quoted Hans-Peter Wodniok, an analyst at Fairesearch in
Frankfurt, as saying.  "The workers will most certainly vote
against Schaeffler and therefore for a capital increase.
Continental will face enormous financial problems if it doesn’t
succeed."

Citing three people familiar with the situation, Blooomberg says
Schaeffler, with only five board seats, is also opposed by a group
of lenders which holds 50 percent of Continental debt and is
pressing for the capital increase.

Bloomberg notes shareholders have already given authorization to
Continental to issue 58.6 million new shares that would raise as
much as EUR1.5 billion at current prices.

On July 29, 2009, the Troubled Company Reporter-Europe, citing the
FT, reported that Continental's banks want management to stop
merger talks with rival Schaeffler 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, Continental's chief executive, to aim for
a capital boost as a precondition for a refinancing of the car
parts supplier's large debt.

The FT said the steering committee -- led by BNP Paribas,
Barclays, Calyon and ING and supported by more than half of
Continental's banks -- promised to negotiate quickly a refinancing
if Conti was to increase its capital.  According to the FT,
Continental’s majority shareholder, Schaeffler, which acquired a
stake of more than 90% in its larger rival a year ago and would be
diluted to a stake of 60%, depending on the size of the capital
increase.

                       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.


ESCADA AG: Improves Bond Exchange Offer
---------------------------------------
Maria Sheahan at Reuters reports that Escada AG improved its offer
to bondholders for a third time as it seeks to raise cash in a
bond exchange offer aimed at bringing its business back from the
brink of insolvency.

According to Reuters, the company said late on Tuesday it would
offer bondholders an additional 10 Escada shares for each of their
bonds.  The company, Reuters discloses, also extended the
subscription period for the exchange offer to Aug. 11 from Aug. 4.

                          Bond Exchange

On July 20, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that only about 37% of Escada's
bondholders agreed to exchange their bonds for a combination of
cash and two new notes valued at 40 cents on the euro, leaving the
company at greater risk of insolvency.  Bloomberg said the company
needs backing from at least 80 percent of bondholders to win
support from UniCredit SpA for a EUR13 million (US$18.3 million)
loan, and trigger a capital increase of at least EUR29 million
backed by its main shareholders.

                          Rights Issue

As reported in the Troubled Company Reporter-Europe on July 23,
2009, The Financial Times said that Escada was considering raising
EUR29 million (US$41 million) in a rights issue as part of a plan
to restructure its debts.  The FT said the capital raising is
conditional on 80 per cent of its bondholders -- which are due to
be repaid in 2012 -- agreeing to its bond restructuring plan.  The
FT disclosed two shareholders owning nearly a quarter of Escada's
stock said they would back EUR20 million of the capital raising.
According to the FT, a spokesman for Escada said that if a deal
was not reached, the company would file for insolvency because
there was no alternative plan.  The company believes it only has
enough liquidity for the month of August.


ESCADA AG -- http://www.escada.com/-- is a Germany-based fashion
group engaged in women's designer fashion.  The Company is
structured into two segments: ESCADA and PRIMERA.  Under its core
brand ESCADA, the Company sells women's designer fashions for
daytime, evening, business, leisure, wellness and special
occasions, as well as couture.  The fashion range is supplemented
with accessories like handbags, shoes and small leather goods.
Fragrances, eyewear, kids wear and jewelry from licensed partners
are also sold under the ESCADA brand.  The Company also offers the
ESCADA Sport product line with clothes and accesoires.  Through
its wholly owned subsidiary, PRIMERA AG, the Company additionally
sells the mid-priced brands apriori, BiBA, cavita and Laurel.  As
of October 31, 2008, ESCADA AG operated 182 own shops and 225
franchise shops in more than 60 countries.  Its manufacture
capacities are mainly outsourced to partner operations, located in
Germany, Italy, Eastern Europe and Asia.


GENERAL MOTORS: Magna Improves Offer for Opel Division
------------------------------------------------------
Andreas Cremer at Bloomberg News, citing a German government
official, reports that Magna International Inc. improved its offer
for General Motors Co.'s Opel division and will contribute more
cash than previously planned.

Bloomberg relates the official said Magna will bring in EUR350
million (US$497 million) of cash directly if it's chosen to buy
the carmaker.  Bloomberg says another EUR150 million will be
provided through a convertible bond.

Citing two people familiar with the situation, Bloomberg
discloses, the German government, which agreed to provide
EUR1.5 billion in short-term loans for Opel's sale, is pushing GM
to pick Aurora, Ontario-based Magna as the winner.

On July 22, 2009, the Troubled Company Reporter-Europe, citing The
Financial Times, reported Magna and Sberbank revised their final
bid to give each a 27.5 per cent for a combined 55 per cent stake.
According to the FT, their earlier offer would have seen the
Russian bank taking a larger, 35 per cent stake and Magna 20 per
cent.

                       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)


HAPAG-LLOYD AG: Tui to Provide Two-Thirds of Short-Term Financing
-----------------------------------------------------------------
Robert Wright at The Financial Times reports that Tui AG is to
provide more than two-thirds of the short-term financing needed by
Hapag-Lloyd AG.

According to the FT, most of the EUR330 million lifeline will come
from the EUR315 million sale to shareholders of Hapag-Lloyd's
25.1% stake in Hamburg's Altenwerder Container Terminal.  The FT
says Tui, which owns only 43% of Hapag-Lloyd, will, however, have
to provide EUR215 million of the price for the container terminal.
The FT relates of the members of the Albert Ballin consortium that
owns the remaining 57%, only Hamburg's state government and Signal
Iduna, the insurance group, agreed to take equity in the
transaction after two days of talks.  The FT discloses a third
shareholder, HSH Nordbank, will provide a EUR15 million loan.

                          Loan Guarantee

Brian Parkin and Holger Elfes at Bloomberg News report that
Hamburg Finance Senator Michael Freytag sought a EUR1-billion
(US$1.4 billion) loan guarantee from Chancellor Angela Merkel for
Hapag-Lloyd.  Bloomberg relates Mr. Freytag told reporters in
Hamburg that the aid "is a first step that will ensure Hapag's
liquidity."  The Hamburg lawmaker, as cited by Bloomberg, said "We
need all seven shareholders on board for the broader rescue,"
referring to shipping billionaire Klaus Michael Kuehne and lender
M.M. Warburg, who declined to participate in the container-
terminal deal.

The FT notes the investors said they hoped Hapag-Lloyd would buy
back its stake in the container terminal when business improved.
According to the FT, if it is not bought back before March 2011,
Hamburg's state asset and investment management company will pay
Tui EUR24.9 million for part of its stake in the terminal.

As reported in the Troubled Company Reporter-Europe on July 21,
2009, the FT said any failure to agree new funding would raise
questions over the future of Hapag-Lloyd, which is one of many
container lines worldwide struggling to cope with a slump in the
sector brought on by an oversupply of ships and rapid falls in
movements of the manufactured goods on which the trade depends.

Hapag-Lloyd AG -- http://www.hapag-lloyd.com/-- is the
transportation arm of German tourism giant TUI.  Subsidiary Hapag-
Lloyd Container Line, which accounts for most of Hapag-Lloyd's
sales, operates a fleet of about 135 containerships.  Overall,
Hapag-Lloyd Container Line's vessels have a capacity of more than
490,000 twenty-foot equivalent units (TEU).  The unit's routes
link Europe, Asia, the Americas, and Africa.  In addition to
freight transportation, Hapag-Lloyd offers luxury ocean and river
cruises under its Hapag-Lloyd Cruises brand.  TUI sold Hapag-
Lloyd's container operations to a German investment group in March
2009.


TUI AG: Moody's Downgrades Corporate Family Rating to 'B3'
----------------------------------------------------------
Moody's Investors Service has lowered to B3 from B2 the Corporate
Family Rating and Probability of Default Rating of TUI AG; the
unsecured and subordinated ratings have been lowered to Caa1 from
B3 and to Caa2 from Caa1, respectively.  All ratings remain under
review for further possible downgrade.

The rating action reflects Moody's heightened concerns about the
trading environment for the group, and the implications for its
longer-term liquidity profile given recent statements about
additional financial support being required for its recently-
divested Hapag-Lloyd division, in which it retains a 43.3% stake.
Moody's notes the weakening in underlying profits in TUI's tourism
division in the first quarter, as well as in the shipping segment
due to falling volumes and freight rates, which Moody's believe
will significantly impact full-year earnings at Hapag-Lloyd.

While the performance at Hapag-Lloyd does not directly impact
Moody's metrics for TUI AG, Moody's have previously noted that the
holding company's longer-term liquidity profile will rely
significantly on its two principal holdings, namely the repayment
of intercompany loans (the drawn amounts under the
EUR1.4 billion facilities available to the Hapag-Lloyd group and
EUR1 billion to TUI Travel), as well as the put option to the
other 56.7% Hapag-Lloyd shareholders as of 2012.  Moody's believe
that the very weak trading performance at Hapag-Lloyd and the
necessity for new funding, which has yet to be finalized,
increases the longer-term liquidity risk at TUI AG.  Apart from
Moody's concerns on longer-term liquidity, Moody's note further
the general weakness in the group's overall metrics in terms of
adjusted leverage.

In the short-term, TUI AG's liquidity remains satisfactory,
benefiting from its current cash position.  Over the longer-term,
however, the rating is constrained by the significant debt
maturities in coming years at the holding company level (of which
c.EUR1 billion due in 2010), with limited access to cash flows at
subsidiaries.  Apart from the above-mentioned inter-company loans,
TUI AG may seek to generate cash through disposals of non-core
assets.

The review will therefore focus on i) the degree and type of
funding put in place for Hapag-Lloyd, and TUI AG's participation,
as well as the level of any potential state guarantees; ii) the
likelihood that these measures will enable Hapag-Lloyd to honor
its financial commitments to TUI AG in a timely manner; iii) TUI's
ability to improve liquidity through asset disposals or early
repayment of its inter-company loans; and iv) developments in
trading performance in coming months.

TUI AG's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of TUI AG's core industry and TUI AG's ratings are
believed to be comparable to those of other issuers of similar
credit risk.  The last rating action for TUI AG was implemented on
8 April 2009, when the CFR was lowered from B1 to B2 with a
negative outlook.

TUI, headquartered in Hanover, Germany, is Europe's largest
integrated tourism group, and currently retains a 43.3% stake in
Hapag-Lloyd, which is a leading provider of container shipping
services.  In 2008, the group reported revenues and underlying
EBITA of EUR24.9 billion and EUR759 million, respectively.
Tourism accounted for about 75% of revenues, and shipping and
other activities for the remainder.


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


ANGLO IRISH: Probe Into Directors' Loans Extended
-------------------------------------------------
BreakingNews.ie reports that the Chartered Accountants Regulatory
Board's investigation into the activities at Anglo Irish Bank has
been extended to include more loans received by senior executives.

According to the report, the EUR1 million inquiry will now
investigate how Chairman Sean Fitzpatrick, and Directors David
Drumm and William McAteer managed these loans.

The report recalls John Purcell was initially brought in by the by
the country's accountancy watchdog in February to investigate
directors' loans at Anglo.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/-- is
engaged in the provision of banking services.  The Bank operates
in three core areas: business lending, treasury and private
banking.  The Bank's non-retail business is made up of over 11,000
commercial depositors spanning commercial entities, charities,
public sector bodies, pension funds, credit unions and other non-
bank financial institutions.  The Company's retail deposits
comprise demand, notice and fixed term deposit accounts from
personal savers with maturities of up to two years.  Non-retail
deposits are sourced from commercial entities, charities, public
sector bodies, pension funds, credit unions and other non-bank
financial institutions.  In addition, at September 30, 2008, its
non-retail deposits included deposits from Irish Life Assurance
plc.  The Private Bank offers tailored products and solutions for
high net worth clients and operates the Bank's lending business in
Ireland and the United Kingdom.

                        *     *     *

On July 28, 2009, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services said that it lowered its
ratings on five hybrid capital securities issued or guaranteed by
Anglo Irish Bank Corp. Ltd. to 'C' from 'CC'.

As reported in the Troubled Company Reporter-Europe on June 8,
2009, Moody's Investors Service downgrade the bank financial
strength rating of Anglo Irish bank to 'E' from 'E+'.


CELF LOAN: Moody's Cuts Ratings on Three Classes of Notes to Low-B
------------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of eight
classes of notes issued by CELF Loan Partners V Limited.

This transaction is a managed high yield 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 15 June 2009, a decline in the average credit rating as
measured through the weighted average rating factor (currently
2943), an increase in the proportion of securities from issuers
rated Caa1 and below (currently 18.59% of the portfolio), and a
failure of all Par Value tests.  Moody's also performed a
sensitivity analysis, including amongst others, a further decline
in portfolio quality (i.e. stressed WARF analysis).  Due to the
impact of all the aforementioned stresses, key model inputs used
by Moody's in its analysis, such as par, weighted average rating
factor, and weighted average recovery rate, may be different from
trustee's reported numbers.

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

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

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

The rating actions are:

CELF Loan Partners V Limited:

  -- Class A-1 Senior Secured Floating Rate Notes due 2019,
     Downgraded to Aa1; previously on June 17, 2008 rated Aaa;

  -- Class A-2 Senior Secured Floating Rate Notes due 2019,
     Downgraded to Aa1; previously on June 17, 2008 rated Aaa;

  -- Class A-3 Senior Secured Floating Rate Notes due 2019 ,
     Downgraded to Aa1; previously on June 17, 2008 rated Aaa;

  -- Class B-1 Senior Secured Deferrable Floating Rate Notes due
     2019, Downgraded to Baa3; previously on June 17, 2008 rated
     Aa2 and under review for possible downgrade;

  -- Class B-2 Senior Secured Deferrable Floating Rate Notes due
     2019, Downgraded to Baa3; previously on June 17, 2008 rated
     Aa2 and under review for possible downgrade;

  -- Class C Senior Secured Deferrable Floating Rate Notes due
     2019, Downgraded to Ba3; previously on June 17, 2008 rated A2
     and under review for possible downgrade;

  -- Class D-1 Senior Secured Deferrable Floating Rate Notes due
     2019, Downgraded to B3; previously on June 17, 2008 rated
     Baa2 and under review for possible downgrade;

  -- Class D-2 Senior Secured Deferrable Floating Rate Notes due
     2019, Downgraded to B3; previously on June 17, 2008 rated
     Baa2 and under review for possible downgrade.


CLOVERIE PLC: S&P Downgrades Ratings on Three Tranches to 'D'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D' and withdrew its
credit ratings on three tranches issued by Cloverie PLC and three
issued by Salisbury International Investments Ltd., related to the
"Onyx" portfolio.

The downgrades follow the trustee's confirmation that losses from
credit events in the underlying "Onyx" portfolio have exceeded the
available credit enhancement for these six collateralized debt
obligations.  This means that, on the termination date,
noteholders suffered a principal loss.

S&P subsequently withdrew the ratings assigned to these notes,
having recently received confirmation that they terminated in June
2009.

The underlying portfolio is static and references U.S. home equity
line-of-credit residential mortgage-backed securities originated
in 2004 and 2005.

                           Ratings List

               Ratings Lowered to 'D' and Withdrawn

                           Cloverie PLC
US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes
                          Series 2005-46

                           Ratings
                           -------
                     To                From
                     --                ----
                     D                 CCC-
                     NR                D

                           Cloverie PLC
US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes
                          Series 2005-47

                           Ratings
                           -------
                     To                From
                     --                ----
                     D                 CCC-
                     NR                D

                           Cloverie PLC
US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes
                          Series 2005-48

                           Ratings
                           -------
                     To                From
                     --                ----
                     D                 CCC-
                     NR                D

             Salisbury International Investments Ltd.
           US$18.75 Million Class C Secured Floating-Rate
                   Portfolio-Linked Notes (Onyx)
                          Series 2005-10

                           Ratings
                           -------
                     To                From
                     --                ----
                     D                 CCC-
                     NR                D

             Salisbury International Investments Ltd.
          US$18.75 Million Class C Secured Floating-Rate
                   Portfolio-Linked Notes (Onyx)
                          Series 2005-11

                           Ratings
                           -------
                     To                From
                     --                ----
                     D                 CCC-
                     NR                D

             Salisbury International Investments Ltd.
          US$18.75 Million Class C Secured Floating-Rate
                  Portfolio-Linked Notes (Onyx)
                          Series 2005-12

                           Ratings
                           -------
                     To                From
                     --                ----
                     D                 CCC-
                     NR                D

                         NR -- Not rated.


GSC EUROPEAN: Moody's Junks Ratings on Three Classes of Notes
-------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of 6 classes
of notes issued by GSC European CDO V PLC.

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

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 the result of credit deterioration of the underlying
portfolio.  This is observed in, among other measures as per
Trustee Report dated June 12, 2009, a decline in the average
credit rating as measured through the weighted average rating
factor, an increase in the amount of defaulted securities and an
increase in the proportion of securities from issuers rated Caa1
and below. 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 manager's track record, and
the potential for selection bias in the portfolio.  All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.

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

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

The rating actions are:

  -- Class A1, Downgraded to A1; previously on May 15, 2007, Aaa
     Rated

  -- Class A2, Downgraded to A1; previously on May 15, 2007, Aaa
     Rated

  -- Class B1, Downgraded to Caa2; previously on March 4, 2009
     Baa3 Placed Under Review for Possible Downgrade

  -- Class B2, Downgraded to Caa2; previously on March 4, 2009
     Baa3 Placed Under Review for Possible Downgrade

  -- Class B3, Downgraded to Caa2; previously on March 4, 2009
     Baa3 Placed Under Review for Possible Downgrade

  -- Class P, Downgraded to B3; previously on March 4, 2009 Baa2
     Placed Under Review for Possible Downgrade


ZOE DEVELOPMENTS: Court to Rule on Examinership on July 31
----------------------------------------------------------
Ian Guider at Bloomberg News reports that an Irish will rule on
tomorrow, July 31, on whether to grant protection from creditors
to six companies controlled by Liam Carroll.

RTE News notes the application was prompted by a move by ACC Bank
to bring winding up proceedings against Vantive Holdings, Morston
Investments and four other related companies, over unpaid debts of
EUR136 million.  Bloomberg says ACC has demanded immediate
repayment of the EUR136-million debt.

Bloomberg relates Mr. Caroll's lawyer Michael Cush told the High
Court in Dublin on Tuesday that the six companies, which
"encountered severe difficulty" following the collapse of
Ireland's property market, have bank borrowings of more than
EUR1 billion.  Mr. Cush, as cited by Bloomberg, said the on
June 30, the liabilities exceeded assets by EUR265 million.

According to Bloomberg, Mr. Carroll said Judge Peter Kelly will
decide on whether to appoint an examiner, known in the U.K. as an
administrator, at 2:00 p.m. tomorrow.

As reported in the Troubled Company Reporter-Europe on July 21,
2009, the six companies, part of what were the Zoe Developments
group, needed to restructure and resch1edule their bank debts, and
convince the financial institutions which are owed money by Mr.
Carroll to roll up interest on the loans.


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


GRUPPO EDITORIALE: S&P Downgrades Corporate Credit Rating to 'BB'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit and senior unsecured debt ratings on Italy-
based newspaper and magazine publisher Gruppo Editoriale
L'Espresso SpA to 'BB' from 'BB+'.  The outlook is negative.

The recovery rating on Gruppo Espresso's senior unsecured debt is
unchanged at '4', indicating S&P's expectation of average (30%-
50%) recovery in the event of a payment default.

"The downgrade reflects S&P's view that the pace of decline in
advertising revenues experienced by Gruppo Espresso since the
beginning of 2009 will likely result in lease- and pension-
adjusted net leverage increasing to the mid-5x level by year-end
2009, or about mid-6x on a gross basis," said Standard & Poor's
credit analyst Manuela Gabatta.  "This is greater than both the
4.5x S&P previously envisaged and the level of 3.2x reported on
December 31, 2008.  On that date, Gruppo Espresso reported gross
consolidated debt of EUR400 million."

In S&P's view, Gruppo Espresso's EBITDA could decline further in
2009, and adversely affect leverage and cash flow generation.  S&P
notes the group's good cash conversion, modest capital
requirements, and the announced dividend cut.  However, S&P thinks
that prospects for positive free operating cash flow generation in
2009 will depend on the group's ability to mitigate the
envisaged additional top-line pressure with the announced costs-
saving initiatives as well as avoid any working capital
absorption.

The ratings could come under pressure if the group's liquidity
were to materially deviate from S&P's current expectations, as a
result of higher-than-anticipated cash burn.  In addition, the
ratings could come under pressure if Gruppo Espresso's operating
performance and credit measures were to weaken significantly more
than S&P anticipates, in particular if the group's reported EBITDA
were to fall to less than EUR80 million in 2009, or if S&P's
current prospects for economic moderation in 2010 were to fade.


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


ARMA AKTAU: Creditors Must File Claims by August 7
--------------------------------------------------
Creditors of LLP Arma Aktau have until August 7, 2009, to submit
proofs of claim to:

         Micro District 28, 25-12
         Aktau
         Mangistau
         Kazakhstan

The Specialized Inter-Regional Economic Court of Mangistau
commenced bankruptcy proceedings against the company on April 30,
2009 after finding it insolvent.

The Court is located at:

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


CAPITAL CONSTRUCTION: Creditors Must File Claims by August 7
------------------------------------------------------------
LLP Capital Construction is currently undergoing liquidation.
Creditors have until August 7, 2009, to submit proofs of claim to:

         Respublika Ave. 58
         Astana
         Kazakhstan


TURKISTAN BUILDING: Creditors Must File Claims by August 7
----------------------------------------------------------
LLP Turkistan Building is currently undergoing liquidation.
Creditors have until August 7, 2009, to submit proofs of claim to:

         Lomonosov Str. 3-7
         Boraldai
         Ilyisky
         Almaty
         Kazakhstan


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


AREA AJ: Creditors Must File Claims by August 15
------------------------------------------------
CJSC AREA-AJ is currently undergoing liquidation.  Creditors have
until August 15, 2009, to submit proofs of claim to:

         Micro District 7, 23/a
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 46-05-10


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


E-MAC NL: Moody's Withdraws 'Ca' Ratings on Three Classes of Notes
------------------------------------------------------------------
Moody's has withdrawn the ratings of all the notes issued by E-MAC
NL 2002-I B.V. following the full redemption of all outstanding
notes.

As described in Moody's press release dated July 10, 2009, the
notes became due and payable as a result of the failure to obtain
confirmation of the ratings on or about the put option date.  On
July 10 Moody's downgraded the notes in consideration of the
increased likelihood that the transaction would have moved into
enforcement in case GMAC RFC Nederland B.V. had not provided funds
to redeem the notes.

                 Detailed List of Rating Actions

E-MAC NL 2002-I B.V.

  -- Class A, rating withdrawn; previously on 10 July 2009
     downgraded from Aa3 to Baa1

  -- Class B, rating withdrawn; previously on 10 July 2009
     downgraded from Ba1 to Ca;

  -- Class C, rating withdrawn; previously on 10 July 2009
     downgraded from Ba2 to C;

  -- Class D, rating withdrawn; previously on 10 July 2009
     downgraded from B2 to C;


===============
P O R T U G A L
===============


LUSITANO MORTGAGES: S&P Raises Rating on Class E Notes to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised and removed from
CreditWatch positive its credit ratings on the class D and E notes
issued by Lusitano Mortgages No. 1 PLC.  At the same time, S&P
affirmed its ratings on the class A, B, and C notes.

S&P raised the ratings on the class D and E notes due to the
transaction's strong performance, the low pool factor (around 49%
at the end of the latest collection period), and an increased
level of credit enhancement.

S&P conducted a cash flow analysis, which ran a number of
scenarios to test the structure's ability to meet timely payment
of interest and ultimate repayment of principal.  The cash flow
results showed that S&P could raise its ratings on classes D and E
to 'BBB+' and 'BB+', respectively, and affirm the class A, B, and
C notes.

The cash reserve, subordination, and excess spread provide credit
enhancement for Lusitano Mortgages No. 1.

Lusitano Mortgages No. 1 is a Portuguese transaction backed by a
pool of performing residential mortgage loans granted to private
first-time buyers.  The originator is Banco Internacional de
Credito S.A., a wholly owned subsidiary of Banco Espirito Santo,
S.A.

                           Ratings List

                   Lusitano Mortgages No. 1 PLC
  EUR1 Billion Residential Mortgage-Backed Floating-Rate Notes

       Ratings Raised and Removed From CreditWatch Positive

                              Rating
                              ------
         Class       To                     From
         -----       --                     ----
         D           BBB+                   BBB/Watch Pos
         E           BB+                    BB/Watch Pos

                        Ratings Affirmed
   
                        Class       Rating
                        -----       ------
                        A           AAA
                        B           AA
                        C           A


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


AK BARS: Moody's Cuts Bank Financial Strength Rating to 'E+'
------------------------------------------------------------
Moody's Investors Service downgraded its bank financial strength
rating of AK Bars Bank to E+ from D-.  At the same time, Moody's
downgraded the bank's long-term global local currency deposit and
debt ratings to Ba3 from Ba2.  Moody's Interfax Rating Agency also
downgraded the bank's long-term National Scale Rating to Ba3.ru
from Ba2.ru.  All ratings remain on review for possible downgrade.
Moscow-based Moody's Interfax is majority owned by Moody's.  The
rating actions follow the review initiated in May 2009, when the
BFSR, deposit and debt ratings of ABB were put on review for
possible downgrade.

The BFSR remains on review for downgrade allowing Moody's to
obtain further information regarding the availability and
provisions of new capital for ABB from new shareholders, in the
amount of RUB9 billion (ca.US$270 million) announced in April
2009.  This capital increase is expected to be finalized in the
near future.  At that time, Moody's would also assess the quality
of new capital to determine its loss-absorption capacity.  Should
the bank fail to receive new capital, or if the quality of new
capital is low, a rating migration to an E BFSR is likely.  The
bank's deposit and debt ratings also remain on review, due to
their sensitivity to a further downgrade of the stand-alone rating
and potential change in support assumptions.

The downgrade of the BFSR reflects the weakening of ABB's
financial fundamentals.  The bank's shareholders' equity suffered
a material decrease in 2008, as a result of large pretax loss of
RUB8.6 billion (US$293 million), or one-third of YE2008 share
capital (IFRS data).  This was the result of securities trading
losses after the Russian securities market tumbled in H2 2008, and
large new loan loss provisions on the back of asset quality
deterioration.  Under IFRS, YE2008 Tier 1 ratio decreased to 8.8%,
from 15.7% in 2007 (taking into account the deduction of the
RUB2.1 billion (US$72 million) deferred tax from capital for
2008).  In addition, a large part of capital is immobilized in
fixed assets (RUB2.9 billion (US$99 million)), investment property
(RUB6.9 billion (US$235 million)) and apartments held for sale
(RUB1.6 billion (US$55million)).  As a result, "free capital" was
only 37% of the total at YE2008.  Moody's base case stress-test
indicates that even with the RUB9 billion (US$270 million) capital
increase, ABB is unlikely to strengthen its capitalization due to
anticipated new loan loss provisions.

Additional pressure on capital comes from the bank's high exposure
to credit risk.  The severe stress in the Russian economy is
leading to a rapid deterioration in borrowers' credit quality,
particularly on the corporate side.  As a result, the level of
problem and restructured corporate loans increased in line with
the average for the system -- to around 10% of gross corporate
loans at Q1 2009.  ABB has very high single-party exposures in
loans; its 20 largest groups of borrowers accounted for more than
390% of shareholders' equity at YE2008 (equity excluding deferred
tax).  The bank also demonstrates a substantial appetite for
lending to the higher risk financial services companies engaged in
securities trading and other financial intermediation.  Those
loans accounted for a high 22% of gross loans and 200% of
shareholders' equity at YE2008.  Other riskier industries include
construction (13% of gross loans).  Related-party loans accounted
for a high ca.180% of shareholders' equity at YE2008, up from just
47% in 2007; those loans were mostly granted to Tatarstan
government bodies and related companies, without any collateral.

ABB's Ba3 debt and deposit ratings incorporate Moody's assessment
of a high probability of parental support from the government of
the Republic of Tatarstan, resulting in a two-notch uplift from
the bank's Baseline Credit Assessment of B2.  Moody's bases its
support assumptions on ABB's high market share in Tatartstan, its
indirect ownership by the regional government, and a track record
of support.  During the review process, Moody's will further
assess the support assumptions reflecting the amended ownership
structure following the planned capital increase.

Moody's previous rating action on ABB was implemented on 19 May
2009, when its BFSRs and debt and deposit ratings were placed on
review for possible downgrade.

Headquartered in the City of Kazan in Tatarstan, Russian
Federation, ABB ranks among the 20 largest Russian banks.  At
YE2008 under IFRS, ABB reported total consolidated assets and
shareholders' equity of RUB203 billion (US$6.9 billion) and
RUB18.3 billion (US$620 million), respectively (vs. RUB162 billion
and RUB25 billion, respectively, at YE2007).  The bank was founded
in 1993 by the government of Tatarstan, which ultimately controls
96% of ABB.  The government does not own this majority stake
directly, but controls the bank through various companies and
ministries.  The bank has a dominant position in Tatarstan,
largely due to the support from the regional government.


EN+ GROUP: Gets Reprieve on US$1 Billion Loans
----------------------------------------------
Yuriy Humber at Bloomberg News reports that lenders to Russia's
Oleg Deripaska En+ Group agreed to an extension of repayments on
US$1 billion of loans.

Citing En+ Chief Executive Officer Vladislav Soloviev, Bloomberg
discloses a group of about 40 Russian and foreign lenders extended
repayments to the end of 2013.  Mr. Soloviev, as cited by
Bloomberg, said individual lenders to En+ will need two months to
get internal approval for the revised terms after the creditor
group's agreement to the changes.

According Bloomberg, En+ lenders include the Royal Bank of
Scotland Group Plc., Deutsche Bank AG, Raiffersen Zentralbank
Oesterreich AG and Natixis.  Bloomberg notes most its debt is in
the form of a three-year loan taken out at the start of 2008.

Based in Moscow, En+ Group -- http://www.enplus.ru/en/-- is an
energy-related company.  The company also holds power, coal-mining
and oil businesses.  It owns a controlling interest in United
Company RUSAL.


RBC INFORMATION: Offers Creditors to Restructure Half of Debt
-------------------------------------------------------------
Toni Vorobyov at Reuters reports that OAO RBC Information Systems
said in a statement late on Tuesday it has offered creditors to
restructure half its debt.

Reuters relates together, Mikhail Prokhorov's Onexim and RBC have
proposed to RBC's creditors that half of the company's debts are
converted into new 5-year bonds with a 7% coupon.  According to
Reuters, for second half of the debts, the lenders are offered two
options -- to sell it back to RBC for 36% of its nominal value, or
to restructure it into 8-year bonds and receive 4% of their total
credit in cash.

Reuters recalls Onexim Group last week agreed to buy 51% of RBC
for US$80 million.

                       Debt Restructuring

On July 13, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that RBC reached preliminary agreement
"with its major creditors" holding about 50 percent of the
company's debt on restructuring terms.  Bloomberg disclosed RBC
said the restructuring agreement will remove the risk of
bankruptcy should it be completed.  RBC, as cited by Bloomberg,
said the debt plan will allow the company to keep its assets and
"normalize relations with RBC's clients and partners, which,
together with improvement of the general macroeconomic and market
situation, will allow the company to meet its financial
forecasts".

Headquartered in Moscow, Russia, RBC Information Systems --
http://www.rbcinfosystems.com/-- provides advertising services,
software development and information services.


RUSSIAN RAILWAYS: S&P Assigns Ratings to Three New Bonds
--------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BBB'
long-term senior unsecured debt rating and 'ruAAA' Russia national
scale rating to three new bonds issued by Russian Railways (RZD;
BBB/Negative/--; Russia national scale rating 'ruAAA'):

  -- A Russian ruble (RUR) 15 billion (about $480 million) senior
     unsecured bond "Series 17", due 2018;

  -- A RUR15 billion (about US$480 million) senior unsecured bond
     "Series 18", due 2019; and

  -- A RUR10 billion (about US$320 million) senior unsecured bond
     "Series 19", due 2024.

The three new issues are floating-rate bonds (initially fixed at
14.05%, 14.25%, and 13.5% per year, respectively), which are
linked to a seven-day direct repo rate (to be determined by the
Central Bank of Russia).  Bondholders have the option to redeem
the bonds in four, five, and two years, respectively, after the
date of placement.  S&P understands from Russian Railways that it
will use the proceeds to finance rail infrastructure projects.

The ratings on the bonds have been equalized with the long-term
corporate credit rating on RZD.

S&P understands from RZD that all previous domestic bond issues
publicly placed since November 2008 (except the one issued in
March 2009), totalling RUR105 billion, contain a put option that
allows bondholders the right to redeem the bond before maturity on
a certain date.  In S&P's view, this weakens the group's liquidity
and adds refinancing risk.

RZD is 100% owned by the Russian Federation (foreign currency
BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia
national scale 'ruAAA').  Standard & Poor's analyzes RZD using its
criteria for government-related entities.  The ratings on RZD
reflect S&P's opinion that the likelihood of timely and sufficient
extraordinary government support is "extremely high".  S&P
considers RZD's role to be "critical" for the government and the
link between RZD and the government to be "very strong".  S&P
assesses RZD's stand-alone credit profile at 'BB+'.

The ratings on RZD also reflect the company's monopoly status as
national railroad infrastructure owner and operator, the strong
competitiveness of railroads in Russia, and the company's
domination of the national railroad market.

These strengths are offset by RZD's exposure to the Russian
commodity-based and export-oriented economy, lower profitability
and cash flow generation as a result of decreasing freight
traffic, and high funding requirements due to negative free
operating cash flow and refinancing needs.

Furthermore, RZD has an aggressive financial profile, with weak
stand-alone liquidity, and it faces restructuring and competition
risk stemming from ongoing railway reform in Russia.


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


METALS BANKA: Receivership to Be Completed
------------------------------------------
Following successful recapitalization of Metals banka from Novi
Sad, conditions have been met for the National Bank of Serbia to
officially end receivership of that bank introduced in October
2008.  Receivership proceedings were instituted because of the
bank's financial woes that escalated at the time Metals banka was
already under specific corrective measures pronounced by the NBS.

As the bank's management and shareholders were unable to improve
the bank's ailing financial position on their own and provide the
liquidity necessary for overcoming those difficulties, in
accordance with regulations, the National Bank int roduced
receivership and extended a liquidity loan to the bank.  The aim
of receivership -- finding solutions that best protect the
interests of the bank's depositors and creditors, as well as
preserving banking sector, financial and macroeconomic stability
--  has been fully achieved.  Owing to NBS measures, Metals banka
managed to weather the crisis.  It is important to note that not a
single dinar was wasted through NBS f inancial support as Metals
banka repaid the approved liquidity loan in full.

Having implemented the decisions passed at the 35th Shareholders'
Assembly, Metals banka recapitalized in mid-July, raising its
capital by RSD 3,784,550,000.00.  Its shares were bought by the
Autonomous Province of Vojvodina, its new majority shareholder,
and DDOR which has retained a 10% share in the bank's capital .
Now that the bank's solvency and liquidity have been restored, the
NBS will officially complete the receivership once new bank bodies
are set up.


=============================
S L O V A K   R E P U B L I C
=============================


SKYEUROPE HOLDING: Future Uncertain; Search for Investor Continues
------------------------------------------------------------------
Tomas Pinos at Czech Business Weekly reports that the future of
SkyEurope Holding AG remains uncertain.

According to CBW, although the company has been granted creditor
protection since June 2009 and is allowed to go through debt
restructuring, it is still struggling to look for an investor.

SkyEurope spokesman Tomas Kika, as cited by CBW, said that the
debt restructuring should decrease the company's debts and enable
it to continue its operation.  "We are still negotiating with
potential investors; there are two or three possible companies.
However, as we are listed on a stock exchange we are not allowed
to give any detailed information about these negotiations," CBW
quoted Mr. Kika as saying.

CBW relates Ondrej Moravansky, analyst with brokerage Cyrrus, said
the chance of SkyEurope surviving is growing smaller and smaller
as time passes and no concrete investor has appeared.

                           Aircraft

CBW discloses one of SkyEurope's aircraft is being held at Paris-
Orly Airport in France.  Citing airport spokeswoman Claire Gozlan,
CBW states the reason for holding the aircraft is the debt of
SkyEurope toward the airport.  The Paris airport plans to give the
plane back when SkyEurope pays its debt, CBW says.

                             Loss

The carrier, CBW notes, has been operating at a loss.  From
October 2008 to March 2009 its net loss reached CZK854.7 million
(EUR33.34 million) and the operating revenue fell by 15.7 percent
to CZK2.2 billion, CBW says.  At the end of March the company had
548 employees.

Headquartered in Bratislava, Slovakia, SkyEurope Holding AG --
http://www.skyeurope.com/-- is a low-cost passenger airline with
bases in the Czech Republic, Austria and Slovakia.  It offers a
route network of 38 destinations in 18 countries from its bases in
Prague, Vienna and Bratislava.  The Company's fleet consists of 14
Boeing 737-700NG aircrafts. SkyEurope Holding AG operates through
subsidiaries and affiliated companies: SkyEurope Airlines, a.s.,
SkyEurope Asset Management (Ireland), SkyEurope Asset Management
Hungary Kft., SkyEurope Airlines Hungary Kft, SkyEurope Airlines
A.S., Spolka Akcyjna, Oddzial w Polsce, SkyEurope Airlines, a.s. -
organizacni slozka and GroundEurope Kft.


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


HOT CHOCOLATE: Claims Filing Deadline is August 10
--------------------------------------------------
Creditors of hot chocolate embroidery design GmbH are requested to
file their proofs of claim by August 10, 2009, to:

         Sanja Bogojevic
         Zuerichweg 6a
         8153 Ruemlang
         Switzerland

The company is currently undergoing liquidation in Winterthur ZH.
The decision about liquidation was accepted by the management of
company on September 27, 2006.


RESTAURANT WOK: Claims Filing Deadline is August 10
---------------------------------------------------
Creditors of Restaurant wok in GmbH are requested to file their
proofs of claim by August 10, 2009, to:

         Restaurant wok in GmbH
         Pilatusstrasse 1
         6003 Luzern
         Switzerland

The company is currently undergoing liquidation in Luzern.  The
decision about liquidation was accepted at a shareholders' meeting
held on April 21, 2009.


YALCINO-X GMBH: Creditors Must File Claims by August 3
------------------------------------------------------
Creditors of YALCINO-X GmbH are requested to file their proofs of
claim by August 3, 2009, to:

         YALCINO-X GmbH
         Rathausstrasse 30
         8570 Weinfelden
         Switzerland

The company is currently undergoing liquidation in Weinfelden.
The decision about liquidation was accepted at a regular
shareholders' meeting on November 30, 2007.


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


TURKIYE SINAI: Fitch Affirms 'BB' Long-Term Foreign Currency IDR
----------------------------------------------------------------
Fitch Ratings has affirmed Turkiye Sinai Kalkinma Bankasi A.S.'s
ratings: Long-term foreign currency Issuer Default Rating 'BB',
Long-term local currency IDR 'BB+', Short-term foreign and local
currency IDRs 'B', Long-term National rating 'AA+(tur)',
Individual 'C/D' and Support '3'.  The Outlooks for the LT IDRs
and the National rating remain Stable.

The LT IDRs and National rating reflect the support TSKB could
expect to receive from its parent, Turkiye Is Bankasi AS (Isbank;
'BB'/'BBB-' (BBB minus/Stable), in case of need.  Isbank, which
holds 50.1% of TSKB's shares, is Turkey's largest private
commercial bank, controlling a deposit market share of around 14%.
TSKB is a strategic investment for Isbank and, in Fitch's opinion,
it would receive support from Isbank, if needed.  However,
Isbank's ability to provide this support is constrained by
Turkey's 'BB' Country Ceiling.  The Support rating is therefore
'3', reflecting a moderate probability of support, as reflected by
its Long-term foreign currency 'BB' IDR, which is at the same
level as Turkey's Country Ceiling.

TSKB's main business is the provision of medium- and long-term
lending in Turkey where it focuses on financing key economic
sectors such as energy, infrastructure and construction.  TSKB's
recent results have not been materially affected by the global
financial crisis and the bank has succeeded in increasing
operating profitability in 2008 largely thanks to strong loan
growth and improving margins.  Q109 figures are still good (net
profit up 19% to TRY34.1 million on comparable results for 2008)
but demand for long-term investment loans remains depressed due to
the sharp contraction experienced in Turkey's economy during the
current year.  TSKB's loan quality is very good (fully reserved,
impaired loans are just 0.6% of loans at end-2008) and its
securities portfolio is dominated by Turkish government bonds (27%
of total end-2008 assets).

Most of TSKB's long-term funding is guaranteed by the Turkish
treasury; TSKB has continued to access long-term funding even
during current turbulent times.

TSKB's IDRs and National Rating have a Stable Outlook, reflecting
those of Isbank and the Turkish state.  Upside potential for the
Individual Rating is limited given the bank's focus on development
and investment banking.


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


ALIZYME PLC: Enters Administration; Grant Thornton Appointed
------------------------------------------------------------
After trading of its shares was suspended on Friday, July 24,
2009, Cambridge-based Alizyme plc has been placed in
administration.

Ian Carr and Nigel Morrison, partners at Grant Thornton UK LLP,
were appointed as joint administrators for Alizyme plc and its
wholly owned subsidiary Alizyme Therapeutics Limited.

Mr. Carr explained:  "Alizyme has entered administration because
it no longer believes it will be able to conclude successfully the
discussions with its commercial partners to mitigate potential
increased funding obligations under licensing and development
agreements with regard to COLAL-PRED(R).  Therefore it is believed
it is not possible to refinance the company within a timeframe
during which it would have sufficient reserves to continue
trading. "

"As administrator I am bound to put the needs of creditors first
and we will review the business, its products and the
opportunities ahead as a matter of urgency.  Alizyme owns valuable
intellectual property so I am hopeful that we will find a suitable
buyer(s) for the business and /or its assets."

"I would encourage anyone who wishes to express an interest in the
business to contact me."

Alizyme is a biopharmaceutical development company.  It focuses on
the therapeutic areas of metabolic disorders, gastrointestinal
disorders and cancer supportive care.  It is developing products
for the treatment and management of obesity and related
conditions, such as type 2 diabetes, of gastrointestinal disorders
involving inflammation, such as ulcerative colitis, and of the
gastrointestinal side effects of cancer therapy, such as
mucositis.

The business was formed in 1995 and floated on the Alternative
Investment Market (AIM) in 1996 before being listed on the
Official List of the London Stock Exchange in 2000.

For more information contact Cathy Connan on 07976 669089 or email
cathy@cathyconnan.com.


COFFEE REPUBLIC: Arab Investments Completes Acquisition
------------------------------------------------------
Daniel Thomas at The Financial Times reports that Arab Investments
has completed the acquisition of coffee shop chain Coffee Republic
from administration for an undisclosed amount.

The FT relates Arab Investments said that it will commit
"substantial capital" into developing the Coffee Republic brand,
and will embark on further expansion of the branch network.
Coffee Republic, the FT discloses, operates 80 outlets, of which
20 are outside the UK, including Bulgaria and Saudi Arabia.

Richard Hill, joint administrator and KPMG partner, as cited by
the FT, said a substantial part of the business had been rescued,
protecting 62 jobs.

As reported in the Troubled Company Reporter-Europe on July 9,
2009, Richard Hill and David Crawshaw of KPMG Restructuring were
joint administrators of coffee bar and deli chains Coffee Republic
(UK) Ltd, Coffee Republic Franchising Ltd and Goodbean Ltd. on
July 7, 2009.


EW PAYNE: To Close Following Payment of Established Liabilities
---------------------------------------------------------------
The EW Payne Pools Schemes will close following the payment of all
Established Liabilities just 12 months after being sanctioned, the
Scheme's Advisers from KPMG said.

The EW Payne Pools Schemes involve 82 companies representing over
120 original underwriting entities from various countries
including UK, France, Germany, Switzerland, USA and Japan, The
pools have been in run-off for over 20 years, having underwritten
business from 1960 to 1985.  Scheme Adviser, Mike Walker, Head of
KPMG's Restructuring Insurance Solutions practice in the UK
commented:

"It was clear that in order to deal with a large number of
entities, we needed to design an efficient and effective mechanism
to collapse the pools.  The Schemes were enthusiastically backed
and we are delighted to announce that after just 12 months,
payments are due to be made to creditors before the end of July
2009."  The Schemes were awarded Industry Initiative of the Year
in October 2008 by the Association of Run-off Companies Limited at
their annual ceremony for Excellence in Legacy Management, and was
felt by the judges to have "addressed a longstanding market
problem in a way that was simple, elegant and effective.  In doing
so it addressed one of the key imperatives of the legacy
management sector: to achieve finality and release for all
stakeholders in a transparent, consistent and economic way.  The
initiative was bold and necessary and was effectively and clearly
communicated to all interested parties; it brought clarity where
there could have been complexity and confusion and the
administrative and financial benefits of its successful conclusion
will be widely felt in the market."

The flexible scheme of arrangement process provided an efficient
solution to the problems associated with the run-off of a complex
underwriting pool.


HSS HIRE: Taps PwC to Help Renegotiate Lending Terms
----------------------------------------------------
Graham Ruddick at Telegraph.co.uk reports that HSS Hire Service
Group Ltd. has brought in PricewaterhouseCoopers to help it
renegotiate lending terms.

According to the report, Chris Davies, HSS chief executive, has
begun talks with a consortium of banks, led by Barclays, about
renegotiating terms.   PwC, the report says, is overseeing the
drawing up of the business plan on which the lending terms will be
determined.

The report discloses as of December 31, 2008, HSS Hire had GBP330
million of net debt, including two GBP90 million banking
facilities, one GBP20 million facility and payment in kind notes
worth GBP47.7 million.

"We have a fantastic relationship with our banks that goes back
many years. We talk with them constantly," the report quoted Mr.
Davies as saying. "We are putting in place our next three year
business plan, which is being diligenced by PwC. It will be part
of the talks that will look to renegotiate lending terms."

The report notes Mr. Davies, however, stressed that the company's
cash covenants are not at risk and that closure of stores is not
being considered.

HSS, the report states, has been badly affected by the worsening
economic conditions as construction and infrastructure projects
stall.

Headquartered in London, HSS Hire Service Group Ltd. --
http://www.hss.com/-- rents tools and equipment mostly to
corporate clients in the construction and facilities management
industries.  With a network of more than 300 stores and 1,000-plus
different products, HSS Hire is a leading tool rental chain. The
range of items available to rent by the day or by the week
includes ladders, air conditioners, and moving trucks. The company
also offers construction skills courses.  The firm sold its US
business RentX in 2006.  Previously owned by UK investment group
3i Group, HSS Hire was sold in mid-2007 to Aurigo Investments,
headed by ex-ASDA CEO Archie Norman, in partnership with Och-Ziff
Capital Management.


INEOS GROUP: S&P Raises Long-Term Corp. Credit Rating to 'CCC+'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating on U.K.-based chemical group Ineos to
'CCC+' from 'CCC'.  The outlook is negative.  The Ineos group
includes Ineos Group Holdings PLC, Ineos Holdings Ltd., Ineos
Vinyls Finance PLC, and Ineos Vinyls Ltd.

"The upgrade reflects the group's successful covenant reset, and
the resulting very low likelihood that it will need to undertake a
debt restructuring in the short term.  Short-term liquidity has
hence improved," said Standard & Poor's credit analyst Lucas
Sevenin.

In S&P's current scenario, however, complying with covenants and
meeting its significant debt amortization schedule will continue
to remain challenging for Ineos, especially from first-quarter
2010.  Operating trends and profit volatility may also add
additional pressure.  S&P expects liquidity to remain the main
rating driver.

The ratings remain constrained by Ineos' highly leveraged
financial profile, and liquidity that remains subject to covenant
compliance in coming quarters.

The negative outlook reflects S&P's concerns about Ineos'
liquidity given the various operating and financial risks it faces
in 2009 and 2010.  The ratings will come under pressure if
operating trends deteriorate compared with the second quarter, if
covenant compliance becomes an issue, if some debt restructuring
appears or becomes necessary, or if potential asset sales do not
materialize.


NEWQUAY RESTAURANT: Goes Into Administration
--------------------------------------------
Ian Walker and Gilbert Lemon of business rescue and corporate
recovery specialists Begbies Traynor have been appointed by
Barclays Bank as Administrators to Newquay leisure group Ye Olde
Dolphin Ltd.

The group has three businesses in the centre of Newquay - Corkers
Uptown bar lounge, the Dolphin Restaurant, and Playland Amusement
Arcade.  It also operates six residential apartments on the rental
market.

The company's Directors sought the appointment after suffering the
effects of two consecutive poor summers’ bad weather on visitor
numbers to the resort, in common with many others in the South
West.  Begbies Traynor are continuing to trade the businesses
through the summer with a view to attracting a buyer for the
business and assets as a going concern.

The number of employees is being increased from the normal mid-
season level of 25, to 40 for the peak six weeks of July and
August, and the administrators are confident that given a strong
peak period and good weather, the business will represent an
attractive proposition to a potential purchaser.


SMART ENERGY: Enters Into Administration
----------------------------------------
Smart Energy (UK) Limited, one of the largest installers of
domestic solar hot water systems in the UK, entered into
administration on July 17, 2009.  Jason Baker and Geoff Rowley,
Client Partners of Vantis Business Recovery Services (BRS), a
division of Vantis, the UK accounting, tax and business advisory
group, were appointed Joint Administrators.

Smart Energy operates from four locations; Colchester, Chester,
Exeter and Tewkesbury, employing approximately 67 staff, with an
annual turnover of GBP15 million.  Commenting on the
administration, Jason Baker said: "Smart Energy was a successful
business although it has unfortunately become insolvent due to a
downturn in demand caused by the recession.  We are attempting to
resolve supply chain and certain other issues to enable us to
assess whether trading can continue, and pending the resolution of
these matters no staff redundancies have been made.  In the
interim, we are seeking to sell the business and assets as a going
concern, however, we cannot rule out redundancies in due course if
it is not possible to continue trading or a buyer cannot be
located."


TATA MOTORS: KPMG and Roland Berger to Advise on Jaguar Unit
------------------------------------------------------------
John Reed and James Fontanella-Khan at The Financial Times report
that Tata Motors Ltd. said on Monday it appointed KPMG and Roland
Berger Strategy Consultants to advise it on cost-cutting and cash
management at its money-losing Jaguar Land Rover unit.

"We have appointed two consultancies who are working with us," the
FT quoted the carmaker, owned by the Tata group, as saying.  "The
exercise is on cash flow, cost controls, etcetera [and] this will
bring about major improvement over a period of time."

Tata, as cited by the FT, said the consultancies had been inside
Jaguar Land Rover for just over two months.

On July 28, 2009, the Troubled Company Reporter-Europe, citing The
Financial Times, reported that Jaguar and Land Rover's core UK
operations posted a combined net loss of GBP673.4 million (US$1.1
billion) last year, compared with a combined net profit of
GBP641.5 million in 2007.  The FT disclosed Jaguar Land Rover
acknowledged that the figures "demonstrate the significant impact
of the global recession and credit crunch on the automotive
[industry] and the premium segment in particular".

                       About Tata Motors

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
March 27, 2009, Standard & Poor's Ratings Services lowered its
corporate credit rating on India-based automaker Tata Motors Ltd.
to 'B+' from 'BB-'.  The rating remains on CreditWatch with
negative implications, where it was placed on Dec. 12, 2008.  At
the same time, S&P lowered its issue rating on the company's
senior unsecured notes to 'B+' from 'BB-' and also kept the rating
on CreditWatch with negative implications.

S&P said the rating action follows material deterioration in Tata
Motors' cash flows and related metrics on a consolidated basis,
derived from an adverse operating environment, which, combined
with significantly high debt levels, will affect its credit
protection measures beyond those consistent with a 'BB' rating
category.

On June 4, 2009, Moody's Investors Service affirmed the B3
corporate family rating of Tata Motors Ltd.  The outlook on the
rating is changed to stable from negative.


WHITE TOWER: Barclays Values Loan Collateral at GBP900 Million
--------------------------------------------------------------
Esteban Duarte at Bloomberg News reports that according to
Barclays Capital, properties backing investor Simon Halabi's
GBP1.15-billion (US$2.5 billion) White Tower 2006-3 Plc mortgage
bond issue may only be valued at GBP900 million.

Bloomberg says Barclays' valuation is based on the assets yielding
7.5% to 10% and rents of 10 to 30 pounds per square foot.

Citing Hatfield Philips International Ltd., the debt administrator
that was replaced on July 15, Bloomberg discloses the properties,
mainly in London's financial district and the West End shopping
area, were valued at GBP929 million as of June 8, down from
GBP1.83 billion in October 2006.  Bloomberg relates Barclay's Hans
Vrensen wrote in a note to investors that CB Richard Ellis, the
new servicer, is expected to order another appraisal.

Bloomberg recalls the underlying loan backing the notes was
canceled on July 15 after White Tower failed to remedy a default
caused by a decline in the real estate securing the debt.


WM LAWRENCE: Venture Finance Provides Factoring Facility
--------------------------------------------------------
Venture Finance has provided Lancashire-based textile manufacturer
Wm Lawrence with a Factoring facility following a management buy-
out in July 2009.  The deal gives the business a boost to cashflow
as it comes out of administration and secures the company's future
and jobs in the area.

Wm Lawrence is a manufacturer of woven and finished fabrics for
apparel, home furnishing and industrial applications.  Established
over 150 years ago, the business was purchased by the Heaton
family in 1928 and was run successfully until the family sold the
company to JH Birtwistle in 2008.  When JH Birtwistle went into
administration in April 2009 due to a decrease in turnover as a
result of the recession and increasing costs, Managing Director
Peter Heaton, conscious of his family ties and history with the
business, took the decision to purchase the business and bring it
out of administration.

Needing to ensure the business would be protected from future
financial difficulties, he enlisted the support of Venture Finance
through a recommendation by BTG McInnis.  Venture's specialist
Factoring division Venture Factors wasted no time in assessing Wm
Lawrence's business and future needs to assemble a Factoring
facility.

Peter Heaton, Managing Director, WM Lawrence comments: "As one of
the only textile manufacturers left in Lancashire, we are
extremely proud of our heritage.  Despite having entered into
administration, we were determined to find a solution to save the
business and retain as many of our staff as possible.

"The Factoring facility Venture has speedily provided us with
eases our financial pressures enormously.  Venture was very quick
to understand our requirements -- and the nuances of our sector.
They've offered exceptional service and have an intimate knowledge
of our needs. We now look forward to rebuilding the business and
hopefully many more years of trading."

Cyril Ryder, Regional Manager, Venture Finance comments: "There
are not many manufacturing business's of this nature left in
Lancashire.  WM Lawrence has operated so effectively since it
first opened over a century ago and we're pleased to be able to
provide a solution that will help them get back on track."

For further information on Venture Finance, visit
www.venture-finance.co.uk.


YORK PHARMA: In Administration; Leonard Curtis Appointed
--------------------------------------------------------
Andrew Poxon and John Malcolm Titley of Leonard Curtis were
appointed administrators of York Pharma plc on July 28, 2009.

For more information, contact administrators at Tel: +44 (0) 161
767 1200.

York Pharma PLC is engaged in the acquisition, development and
commercialization of prescription dermatological products along
with its subsidiaries.  The Company's pipeline comprises 11
products/projects.  The products span pre-clinical to pre-
registration status, and cover therapeutic areas within
prescription dermatology, which include Abasol (dermatomycoses),
Sabarep (YP001), YP002 (skin diagnostic), Vampex (YP003), YP004
(skin cancer), YP005 (acne), YP006 (onychomycoses), YP007 (vaginal
candidiasis), YP008 (psoriasis), YP009 (cancer) and YP010
(antiviral).  York Pharma plc has five operational subsidiaries,
York Pharma (R&D) Limited, York Pharma (UK) Limited, York Pharma
GmbH, York Pharma KK and Rosanto Pharmaceuticals Limited.  In
April 2007, the Company announced the acquisition of Rosanto
Pharmaceuticals Limited.  In November 2007, York Pharma PLC
completed the acquisition of Derms Development Limited.  In
October 2008, the Company acquired Celltran Limited.


===================
U Z B E K I S T A N
===================


QISHLOQ QURILISH: Moody's Upgrades Global Deposit Rating to 'B2'
----------------------------------------------------------------
Moody's Investors Service has upgraded the long-term global scale
local currency deposit rating of Qishloq Qurilish Bank or QQB
(formerly Gallabank) to B2 from B3.  At the same time, QQB's E+
bank financial strength rating, B3 long-term global scale foreign
currency deposit rating and its Not Prime short-term global scale
local and foreign currency deposit ratings were affirmed.  All of
the bank's ratings carry a stable outlook.

The upgrade follows the acquisition of a 69% stake in QQB by the
Uzbek state through the Ministry of Finance and the Fund for
Reconstruction and Development of Uzbekistan in Q2 2009.
Accompanying the change of control, QQB's name was changed from
Gallabank and a new strategy of supporting rural construction
development was announced.

"In Moody's view, the state's ownership of QQB is likely to result
in a high probability of support from the parent, in case of
need," says Elena Redko, a Moody's Analyst and lead analyst for
QQB.  "This perception stems from Moody's awareness of (i) the
government's strategy for development of the agriculture sector
and rural construction as a socially and economically important
segment, and (ii) QQB's role constituting a platform for
implementation of these development plans in 2009-2010."

QQB has already initiated the development of new products on the
back of its cooperation with major construction and agriculture
companies in line with the government's strategy.  The
implementation of the strategy will be supported by additional
preferentially priced funding from the government as well as
income and property tax exemption till 2012 and allocation of
state property to the bank for further utilization.

Moody's previous rating action on QQB was on 11 April 2008 when
the rating agency assigned a first-time ratings of B3/Not-Prime/E+
with stable outlook to the bank (then trading under the Gallabank
name).

Headquartered in Tashkent, Uzbekistan, QQB reported total IFRS
assets of UZS171 billion (US$123 million) and net income of
UZS5 billion (US$3.7 million) as at December 31, 2008.


* PwC Research Says UK Insolvencies May Climb Again
---------------------------------------------------
A slight drop in the number of insolvencies in England and Wales
is masking a potential climb again in the last quarters of 2009
according to PricewaterhouseCoopers LLP following their analysis
into corporate insolvency numbers.  The figures show that 4,814
companies became insolvent in the second three months of 2009.
This represents an 11.3% decrease on the previous quarter, but is
still a huge 43.2 % increase on the same quarter of 2008.

The first 6 months of 2009 saw a total of 10,242 companies
entering into insolvency -- a 33.8% increase on the first 6 months
of 2008 showing that the recession really has hit the UK economy
in 2009.

Mike Jervis, partner in the business recovery services practice at
PricewaterhouseCoopers LLP, commented: "Our analysis of this
quarter's stats does show a slight drop in the number of
insolvencies, but when we look back over the last 5 years we see
that quarter two does traditionally have a dip in numbers.
Furthermore, we are now seeing quarterly numbers in the four and
five thousands, not the two or three thousands we have grown used
to.

"Our message to businesses is not to take this quarter two drop as
a sign that the recession has bottomed; Continue to plan your
cashflow and your profitability obsessively, by challenging
expenditure and developing strategies for any signs of falling
demand.  Do not be afraid to consult, and ask for help from
advisers or turnaround managers."

Which sectors are struggling the most?

The trends of the preceding quarters continue into quarter two,
with the worst hit sectors continuing to Construction (726
companies), Manufacturing (653), Retail (540), Hospitality &
Leisure (227) and Real Estate (227).  Of all of these, Hospitality
& Leisure and Retail have shown the biggest falls in numbers of
insolvency compared to last quarter, but again seasonality is a
real differentiator for these sectors.

The number of manufacturing insolvencies fell the least since the
last quarter (10.4%), this is understandable given some of the
high profile insolvencies in the last three months such as LDV,

Philip Hines, manufacturing expert at PricewaterhouseCoopers LLP,
commented: "The decline in manufacturing in recent months with
falling orders and diminished sales shows some signs of
improvement but we expect further insolvencies and a net rise in
unemployment throughout 2009.  With recent government intervention
in the form of stimulus packages and incentives for consumers, the
benefits for industrial companies are minimal and certainly not
immediate.

"On the positive side, it is encouraging that many UK
manufacturing firms have been managing their costs through salary
freezes and reduced work weeks rather than redundancies given
skilled manufacturing workers are a scarce and strategic resource
in the UK.  There are most certainly grounds for optimism when we
see the likes of Toyota's new hybrid being built here and huge
growth potential with emerging clean technologies.

"Companies with a clear understanding of their unique competitive
advantages and who can sustain investment in them in the current
environment will have the best chance to survive the downturn and
thrive longer-term."

Across the UK…

PwC's analysis shows that London continues to have the highest
number of insolvencies with 1,278 which, although a small decrease
on the last quarter, is still a significant 43.6 % increase on the
same period last year.  The East, South, South West and Wales all
showed the highest decreases for this quarter compared to the
previous quarter with 258, 459, 55 and 118 insolvencies
respectively.  Compared to the same quarter last year, all regions
showed a material increase, but Wales is again showing the lowest
increase with only 4.4% more insolvencies.

Mike Jervis, partner, summarized: "It is a welcome change to have
a little good news in looking at these numbers, however tenuous.
But our fear is that corporates may have addressed some of the
lower hanging fruit, notably cost cutting, since the recession
took hold.  The winners over the next six months are those
companies who are able to combine cost control with strategies to
enhance revenue and gross margins, traditionally a far more scarce
skill amongst management teams in distressed situations." .."

               About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


* PwC Says UK Travel Insolvency Rate Drops in 2nd Quarter of 2009
-----------------------------------------------------------------
A long awaited fall (56%) in the quarterly UK* travel insolvency
rate will offer hope heading into August as the earlier warm
weather and the weak pound prop up the industry --
PricewaterhouseCoopers LLP revealed.

Following its peak (27 in Q1) only 12 travel companies succumbed
to the recession April to June 2009, the lowest rate for a year,
as the industry shook off the XL hangover.  Levels now replicate
spring 2008.

However, shock-waves maybe felt in the autumn, with an unusually
high proportion of UK holidaymakers opting to forgo their annual
break.  A third of consumers polled chose a staycation over a
domestic or overseas trip this summer.

This latest PwC survey of over 2000 people shows a dramatic
turnaround from this time last year where the majority of
consumers ranked holidays and short breaks as the top two spending
priorities for 2008.

Guy Gillon, director, PricewaterhouseCoopers LLP, said: "Despite
the increase in domestic and inbound travel, tour operators and
agents will be hit hard by those staying at home this summer.  A
year ago the perception was that consumers would do anything to
preserve their hot holiday but as the grip of the recession
tightens the staycation is now firmly on the agenda.  Most
worrying is that the revenue from these missing holidaymakers wont
reach the travel companies and local economies that rely on it.

"In addition, as the World tries to minimize the spread of swine
flu (for example airlines actively preventing passengers with
certain symptoms from boarding flights) there will naturally be an
impact on inbound and outbound tourism which will also dampen the
spirits of the travel industry over the summer.  However, this may
increase the propensity for domestic holidays."

Head-on collision with restructuring

The spring quarter traditionally claims fewer victims, as travel
businesses typically receive more money from customers during
April to June than at other time of the year.

Ian Oakley-Smith, director, PricewaterhouseCoopers LLP, said:
"This coupled with some apparent forbearance from regulators and
lenders has helped ensure failures during the period are no worse
than a year ago.  However, some travel businesses that continue to
rely on support from shareholders, lenders and others may find
this more difficult to sustain through the autumn.  As a result we
expect to see a further wave of insolvencies from September
onwards."

Shift to camping / caravan sites is short term

As expected, there have been no camp or caravan site insolvencies
since 2007 as they benefitted from the squeeze on consumer spend,
the weak pound and a perception that staying in close to home is
more recession conscious.  As a result the caravan holiday market
is expected to show modest growth from 2009 2012.

Mr. Gillon added: "It is vital the market should not over-estimate
the structural shift to camping and caravanning.  As ever it has
its place in the world but is a reaction to the recession.  It is
a cyclical and not structural shift in the market.

"Appetite for such holidays is as mobile as the caravan itself and
while it will remain in the hearts of a set group of holidaymakers
its ability to appeal to those other than the converted is
temporary as the pound remains weak, the euro strong, unemployment
high, and the sun supposedly out," Mr. Gillon concluded.

* PwC insolvency stats are based on company insolvencies across
England, Wales and Scotland.

                About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


* Begbies Traynor Says Firms in Financial Difficulty in Q209 Rise
-----------------------------------------------------------------
Red Flag Alert is a quarterly monitor of early warning signs of
company distress by Begbies Traynor, the UK's leading business
rescue, recovery and restructuring specialist.

The latest report focussing on Q2 2009 released July 22contains
the following highlights:

    * The rate of growth of companies with significant and
      critical financial problems has risen sharply year on year

    * The rate of growth of companies with significant and
      critical financial problems has slowed quarter on quarter
      for the second quarter in a row

    * Analyzed by region and sector, all are showing very
      significant rises in financial problems on this time last
      year

    * There is a very diverse picture amongst sectors on a quarter
      on quarter basis:

          -- recruitment, engineering and manufacturing amongst
             others have shown substantial increases in problem
             companies

          -- construction and professional services have in
             contrast shown reductions in problem companies
             quarter on quarter

    * The regional picture is consistent across the UK quarter on
      quarter, with the number of companies with significant
      financial problems having fallen between 13-15% across the
      board but are still 43% higher than the same time last year

Red Flag Alert looks at information daily and makes quarter on
quarter and on year on year comparisons of detrimental data,
categorized as either significant or critical.  The experience of
Begbies Traynor is that a significant number of those companies
with such financial problems tend to subsequently enter into a
formal insolvency procedure within a year.

Ric Traynor, Executive Chairman of Begbies Traynor Group, said:
"The second quarter Red Flag Alert shows the recession is likely
to be prolonged, possibly more prolonged than the last recession
and there is no evidence yet of a real recovery emerging.
However, the overall increase in the number of problem companies
has undoubtedly slowed for the last two quarters which is better
news.

"We believe that the volumes of corporate and personal
insolvencies, as with levels of unemployment, tend to be
indicators that lag any change in economic activity and are
therefore likely to continue to rise for up to two years after the
commencement of economic recovery.

"Previous experience, together with an analysis of the current
recession, strongly suggests that the period from this year to
2012 will see a large number of corporate insolvencies, probably
above the peak levels experienced during the height of the last
major recession in 1992."


* Companies Mull Further Cost-Cutting, KPMG Survey Finds
--------------------------------------------------------
Companies are planning further cuts of up to 25 per cent in the
next couple years, having already done the 'easy bit' by trimming
costs and curbing discretionary expenditure, according to a survey
by CFO Europe Research Services for KPMG.

The survey found that firms have focussed on the short term as
they try to weather the economic storm, with 86 per cent of
respondents requiring cost initiatives to deliver a payback within
12 months.  While this may be a natural reaction to intense market
pressure, KPMG argues that it does not always deliver a strategy
for permanently lower levels of cost in the organization.

But perhaps the biggest challenge facing organizations is how to
make changes to their cost base that are both sustainable and
generate cash for future growth.

Commenting on the findings, Jeremy Kay, Partner in KPMG's European
Operations Strategy Group said: "It seems that the next 24 months
will see organizations stepping up their focus to deliver further
cuts to the cost base to create a sustainable advantage.  This
requires a bolder longer term commitment to a lifestyle change,
not merely a short term diet, as old habits can easily creep back
in.

"In a more prudent economic environment, the emerging winners will
be those that successfully and regularly re-cycle funding from
cost initiatives to generate cash for growth."

Just over a quarter of respondents said they were using
organizational restructuring strategies, including headcount
reductions, to cut costs.  While such strategies deliver the
biggest savings, they are not the most sustainable savings for the
majority.  One fifth of respondents said improving process
efficiency was their second most important strategy while just
under 10 per cent claimed using better risk management was a
priority in cutting costs.

Mr. Kay continued: "A new focus on cost management is here to stay
it must become a continuum even as the economic environment
improves.  More than half (53 per cent) the respondents in our
survey agree that it has become a permanent and more prominent
feature of day-to-day business, both now, and as and when we move
out of the economic downturn."

The survey also showed that organizations have already taken steps
to embed better cost management, such as making cost leadership an
explicit part of the overall strategy.

But there is still work to do in broadening ownership of cost
management.  Just five per cent of respondents said that all
employees were responsible for cost management initiatives,  The
survey shows that cost management still remains in the domain of
the C-level executive, with over 40 per cent of CFO's and an
additional 20 per cent (CEO's) saying they are responsible for
these programs.

"The survey shows there are winning themes emerging, with a focus
on building commercial capability and prioritizing sustainability,
but there is still a long way to go", added Mr. Kay.

Martin Scott, Partner and leader of KPMG's European Operations
Strategy Group concluded: "Many businesses probably feel as if
they have done enough, in cost reduction terms, to survive the
current downturn.  But as only a fifth of respondents said they
were looking at more radical options than they were 12 months ago,
shareholder expectations to deliver bolder and more sustainable
cost strategies may take some time to be met.

"The winners will be those that create adaptive approaches to cost
management so they can continually re-balance resources from
underperforming areas into those that promise growth.  A new era
of 'earning the right to grow' is here to stay."

                   About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


* Deloitte Says FTSE 100 Pension Scheme Funding Deficits Soar
-------------------------------------------------------------
Deloitte, the business advisory firm, estimates that the aggregate
cash amount needed by the pension scheme trustees of FTSE 100
companies to meet  funding deficits now exceeds GBP300 billion.
This is the highest ever level and more than double the estimated
aggregate deficit of GBP130 billion at the start of the year.

David Robbins, a partner in Deloitte's pensions consulting
practice, said: "The continuing fallout from the recent financial
turmoil means that pension deficits have risen to the highest
levels ever seen.  Many companies now face demands for huge
contributions to their pension schemes in order to repay losses
made on investments."

For some companies the current rate of cash contributions to
pension funds has reached unsustainable levels.  To compensate,
they are now seeking to shift capital and assets from their
balance sheet to their pension fund.  This can include real estate
assets, the value of brands or other investments.  Deloitte
expects this trend to increase significantly over the next few
years.

Mr. Robbins said: "If pension funds had to rely purely on cash
contributions from companies it could, at the current rate, take
more than 50 years to clear the aggregate pensions deficit.  This
position will not be acceptable to pension plan trustees -- but
significant cash contribution increases would be unaffordable for
companies.  The solution to this  that companies need to consider
is to transfer the value of their assets to the pension scheme.
There are some interesting and innovative ways to do this."

Until recently, companies have reduced the cost of their final
salary pension schemes by reducing the benefits provided by the
schemes or moving to a cheaper defined contribution schemes for
new employees.  Many companies are now closing their defined
benefit pension schemes to all their employees.  Yet closure will
not remove the issue of large pension deficits and accompanying
cash demands.

Mr. Robbins concluded: "Closing the defined benefit pension scheme
to all employees is a big step which many companies have
previously shied away from.  However, with the current
unprecedented funding levels in pension schemes and with companies
being forced to cut costs in order to remain afloat, we expect to
see many more pension schemes closing."

                     About Deloitte

Deloitte -- http://www.deloitte.com/-- provides audit,
consulting, financial advisory, risk management and tax services
to selected clients.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                            *********

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

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

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

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

                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Joy A. Agravante and Peter A. Chapman, Editors.

Copyright 2009.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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