TCREUR_Public/090807.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Friday, August 7, 2009, Vol. 10, No. 155

                            Headlines

A U S T R I A

BIO HANF: Creditors Must File Claims by August 10
R. SPORR: Claims Filing Deadline is August 18
SQUAD WERBEAGENTUR: Claims Filing Deadline is August 18


A Z E R B A I J A N

STANDARD INSURANCE: Moody's Cuts Insurer Strength Rating to 'B2'


F R A N C E

HEART OF LA DEFENSE: Windermere Bondholders Nix Restructuring Bid


G E R M A N Y

ARCANDOR AG: JPMorgan Opposes Thomas Cook Share Sale in One Piece
GENERAL MOTORS: Stance on Magna Opel Bid Shifting
WADAN YARDS: Court Opens Main Insolvency Proceedings


H U N G A R Y

* HUNGARY: Company Liquidations in First Half 2009 Reach 14,122


I R E L A N D

BANK OF SCOTLAND: Moody's Cuts Bank Fin'l Strength Rating to 'D-'
REFLEX MOULDINGS: FHS Buys Business; 70 Jobs Saved
ULSTER BANK: Moody's Upgrades Bank Fin'l Strength Rating to 'D+'

* IRELAND: Company Insolvencies Reach 151 in July 2009
* IRELAND: 25% of Q2 Creditor Meetings Involve Construction Firms


I T A L Y

ARES FINANCE: Fitch Lowers Rating on EUR15MM Class E Notes to 'B'
HELM FINANCE: Forced Into Liquidation by Italian Finance Ministry


K A Z A K H S T A N

FINANSOVOYE AGENSTVO: Creditors Must File Claims by August 14
KARAGANDA GAS: Creditors Must File Claims by August 14
ORKEN JSC: Creditors Must File Claims by August 14
YASSY JSC: Creditors Must File Claims by August 14


K Y R G Y Z S T A N

AINEK OJSC: Creditors' Meeting Scheduled for August 11
CONSTANTA ASIA: Creditors Must File Claims by August 15


N E T H E R L A N D S

DALRADIAN EUROPEAN: Moody's Cuts Rating on Class E Notes to 'Ca'
LYONDELL CHEMICAL: Appeal on BASF Suit Allowed to Proceed
LYONDELL CHEMICAL: Asks for DIP Extension Due to Merger Suit


P O L A N D

LEHMAN BROTHERS: Poland to Probe Citi Handlowy Over Bonds


R U S S I A

ENGELSK PIPE: Creditors Must File Claims by August 17
MECHEL OAO: To Manage Bankrupt Zlatoust Metals Plant
SOYUZ-STROY LLC: Creditors Must File Claims by August 17
UC RUSAL: Oleg Derispaka's Appeal on Michael Cherney Case Rejected
ZLATOUST METALS: Mechel to Manage Plant, Local Government Says

* RUSSIA: One-Third of Clothing Retailers Face Closure This Year


S P A I N

HIPOTOTTA NO 10: Moody's Assigns 'B1' Rating on EUR12.5 Mil. Notes


S W I T Z E R L A N D

COIFFEURFACHSCHULE DE MASI: Claims Filing Deadline is August 12
DROGERIE MUELLER: Creditors Must File Claims by August 12
H. KAMM: Claims Filing Deadline is August 12
H. VON: Claims Filing Deadline is August 12
KAKTUS TREKKING: Creditors Must File Claims by August 12

KEYCON GMBH: Claims Filing Deadline is August 12
KIC CONSULTING: Creditors Must File Claims by August 12
KIPO GMBH: Claims Filing Deadline is August 12
KONRAD LOEFFLER: Creditors Must File Claims by August 12
PANNENHILFE WADI: Claims Filing Deadline is August 12

TUEG GMBH: Claims Filing Deadline is August 12


U K R A I N E

BANK DIAMANT: Fitch Affirms National Long-Term Rating at 'B+'
BANK KHRESCHATYK: Fitch Affirms Individual Rating at 'D/E'
CITYINVESTBUD LLC: Creditors Must File Claims by August 13
INDUSTRIALBANK: Fitch Junks Long-Term Issuer Default Rating
PIVDENNYI BANK: Fitch Affirms Individual Rating at 'D/E'

PRIVATBANK CJSC: Fitch Downgrades Individual Rating to 'D/E'
SATURN EXPRESS: Creditors Must File Claims by August 13
ZARINA LLC: Creditors Must File Claims by August 13


U N I T E D   K I N G D O M

BIDDENCARE LIMITED: Creditors Have Until October 7 to Prove Debts
BRECKLAND TECHNOLOGY: Administrators Selling Business and Assets
BRITISH AIRWAYS: Unions Want to Talk with Senior Representatives
DX GROUP: Candover Partners Mulls Cash Injection
FOCUS DIY: Enters Into Voluntary Arrangement Deal with Landlords

INDUSTRIOUS GROUP: Max Buys Warehouse Portfolio for GBP245.4 Mln
KEYDATA INVESTMENT: Serious Fraud Office Opens Probe
LEHMAN BROTHERS: Wants Nov. 2 Bar Date for Cross-Border Parties
LEHMAN BROTHERS: To Appeal English Court Ruling on Dante SPV
LINMARK ELECTRONICS: Business to be Sold as a Going Concern

NATIONAL EXPRESS: Bidders Have Until Sept. 11 to Make Firm Offer
NEWCASTLE UNITED: Owner In Sale Talks; Denies Administration Rumor
RANK GROUP: Revenue Up 3.5% to GBP266 Mil. in 1st Half 2009
RMAC SECURITIES: S&P Cuts Rating on Class B1C Notes to 'B1'
ULSTER BANK: Moody's Upgrades Bank Fin'l Strength Rating to 'D+'

WARD KNOWLES: Administrators Complete Sale to Paragon Group

* UK: Advertising Insolvencies Down 22%  in 2Q09, PwC Says

* BOOK REVIEW: Distressed Securities - Analyzing and Evaluating


                         *********


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A U S T R I A
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BIO HANF: Creditors Must File Claims by August 10
-------------------------------------------------
Creditors of Bio Hanf Sued GmbH have until August 10, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 17, 2009 at 9:30 a.m at:

         Land Court of Klagenfurt
         Meeting room 225
         Second Floor
         Klagenfurt
         Austria

For further information, contact the company's administrator:

         Mag. Gunter Huainigg
         Dr. Franz Palla-Gasse 21
         9020 Klagenfurt
         Austria
         Tel: 0463/599 399, 512 889
         Fax: 0463/599399-15
         E-mail: office@hdp-law.com


R. SPORR: Claims Filing Deadline is August 18
---------------------------------------------
Creditors of R. Sporr GmbH. & Co. KG have until August 18, 2009,
to file their proofs of claim.

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

For further information, contact the company's administrator:

         Dr. Erwin Senoner
         Alser Strasse 21
         1080 Wien
         Austria
         Tel: 406 05 51
         Fax: 406 96 01
         E-mail: kanzlei@jus.at


SQUAD WERBEAGENTUR: Claims Filing Deadline is August 18
-------------------------------------------------------
Creditors of SQUAD Werbeagentur GmbH have until August 18, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 1, 2009 at 1:15 p.m.

For further information, contact the company's administrator:

         Mag. Beate Holper
         Gonzagagasse 15
         1010 Wien
         Austria
         Tel: 533 28 55
         Fax: 533 28 55 28
         E-mail: office@anwaltwien.at


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


STANDARD INSURANCE: Moody's Cuts Insurer Strength Rating to 'B2'
----------------------------------------------------------------
Moody's Investors Service has announced that it has downgraded to
B2 from B1 the Insurer Financial Strength rating of the insurance
company Standard Insurance, based in Baku, Azerbaijan.  The
outlook on the rating is negative.  The rating action primarily
reflects concerns over the economic and financial environment in
Azerbaijan, and particularly the weakness of Bank Standard (B3
Negative), which is Standard Insurance's sister company.

Bank Standard was downgraded to B3 from B1 on July 28, 2009 driven
by the material deterioration in its risk profile.  As Bank
Standard represents the significant majority of the Standard
Group, as well as a major source of distribution for Standard
Insurance, Moody's views the weakening financial strength of the
bank as impacting the other members of the group, including
Standard Insurance.

On a standalone basis, Standard Insurance has a top tier position
in the Azerbaijan insurance market, and remains profitable with a
net profit of AZN2.8 million in 2008 and a capital level of
AZN15.3 million.  Nevertheless, premium levels are expected to
fall during 2009, as a significant amount of premium is sourced
via the branch network of Bank Standard and relates to insurance
policies on cars purchased using loans provided by Bank Standard.
Moody's notes that Standard Insurance has made significant
progress in diversifying its distribution away from Bank Standard,
utilizing it's own agent network, although general economic
conditions in Azerbaijan mean the environment remains depressed.
The profitability of individual business lines remains somewhat
volatile, reflecting the challenging operating environment.

During 2008 and 2009 Standard Insurance has improved the quality
of its investment portfolio, placing a large proportion of its
investments in bonds issued by the Government of Azerbaijan.
Standard Insurance has also improved its own internal governance,
with the creation of an audit committee and the hiring of an
actuary to assist with technical pricing.  However, Moody's notes
that despite the improvements in many areas of Standard
Insurance's stand-alone credit profile, the rating is somewhat
constrained by the current significant financial problems
elsewhere in the Standard group

The current outlook is negative, reflecting concerns over the
continuing financial strength of the Standard group.  The rating
may face further negative rating pressure if the rating on Bank
Standard is downgraded.  Conversely, a stabilization or
improvement in the stand-alone characteristics of Standard
Insurance, combined with an improvement in the financial situation
of Bank Standard, could lead to positive rating pressure.

The last rating action was on 18th November 2008 when the ratings
were placed on review for a possible upgrade.

This rating was downgraded with a negative outlook.

Standard Insurance

* Insurer Financial Strength from B1 to B2

Based in Baku, Azerbaijan, Standard Insurance is one of the
leading Azeri non-life insurance companies.  In 2008, Standard
Insurance reported Gross Premiums Written of AZN13.0 million and
net income of AZN2.9 million, compared to AZN13.2 million and
AZN3.1 million in 2007.  Shareholders' equity including minority
interests was AZN15.3 million as at 31 December 2008.


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


HEART OF LA DEFENSE: Windermere Bondholders Nix Restructuring Bid
-----------------------------------------------------------------
Chris Bourke at Bloomberg News reports that investors of EUR1.6
billion (US$2.3 billion) of Windermere XII FCT bonds that package
mortgages on the Coeur Defense office building in Paris rejected a
proposal by Heart of la Defense SAS to restructure the debt.

Citing Nicolas Noblanc, head of the legal department at Paris-
based EuroTitrisation, Windermere's manager, Bloomberg
discloses Heart of la Defense, the holding company of the
building's owners, proposed changes necessary to maintain
bankruptcy protection, which is due to expire in September.
Bloomberg recalls Heart of la Defense filed for bankruptcy
protection, known in France as "sauvegarde," in November, after a
technical default on the commercial mortgage bonds.

Bloomberg relates Mr. Noblanc said investors representing more
than 85% of notes who attended a July 27 meeting voted against the
plan.  According to Bloomberg, the proposal would have extended
the maturity of the mortgage bonds and given majority control of
the building's rental income to Heart of la Defense, led by the
estate of Lehman Brothers Holdings Inc.


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


ARCANDOR AG: JPMorgan Opposes Thomas Cook Share Sale in One Piece
-----------------------------------------------------------------
Holger Elfes and Karin Matussek at Bloomberg News report that
JPMorgan Chase & Co. opposes a plan to sell Arcandor AG's stake in
tour company Thomas Cook Group Plc in one piece.

Citing a counterproposal on Arcandor's Web site, Bloomberg says
that while the insolvent German retailer is seeking to sell its
53% stake of Thomas Cook in one package on behalf of all
creditors, JPMorgan wants holders of the company's convertible
debt to act independently over the part of the stake pledged to
them as collateral.  Bloomberg relates Arcandor spokesman Gerd
Koslowski said the retailer received the document from JPMorgan on
July 21 and is sticking to its own proposal for the Thomas Cook
shares.

JPMorgan is among holders of Arcandor convertible bonds who
control about 8.9% of the tour operator that was granted to
lenders as security for loans.

                        Bondholders Meeting

Nadja Brandt at Bloomberg News reports that Arcandor said it
canceled its planned exchangeable bonds creditors meeting for
Aug. 10 after Bayerische Landesbank, collateral agent for the
bondholders, transferred about 8% of Thomas Cook shares into a
trust deposit account.  "Those shares were pledged as security for
the Exchangeable Bonds.  Given the new situation the planned
bondholders meeting at this point in time doesn’t make sense,"
Bloomberg quoted the retailer as saying.

                              Options

On Aug. 3, 2009, the Troubled Company Reporter-Europe, citing The
Financial Times, reported that Royal Bank of Scotland, Commerzbank
and Bayern LB said they were considering their options for
Arcandor's stake in Thomas Cook.  According to the FT, the banks,
the mandated lead arrangers in Arcandor's banking syndicate, said
that the most likely outcome would be a market placing, an off-
market sale or some combination of both.

                         About Arcandor AG

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

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


GENERAL MOTORS: Stance on Magna Opel Bid Shifting
-------------------------------------------------
Andreas Cremer and Brian Parkin at Bloomberg News report that
General Motors Co.'s opposition to Germany's choice of a buyer for
Opel is weakening.

According to Bloomberg, while Germany backs Magna International
Inc. to buy Opel, GM chief negotiator John Smith has said a bid by
Brussels-based investor RHJ International SA offers a "simpler
solution."

Hendrik Hering, economy minister of Rhineland-Palatinate, one of
four German states with Opel plants, as cited by Bloomberg, said
in an interview GM's stance is shifting and it is "high time" for
Chancellor Angela Merkel to apply political pressure to persuade
GM to accept Magna's bid.  "There are only a few open issues
between Magna and GM, they can be solved within a few days if the
political will is there," Bloomberg quoted Mr. Hering as saying.
"I expect a basic agreement between the U.S., GM and Germany by
the end of this week."

Bloomberg relates government officials hosted talks in Berlin
Tuesday with GM's Mr. Smith and the bidders, and asked both
suitors to improve their offers.

Doug Cameron and Beate Preuschoff at Dow Jones News report GM said
after separate meetings with government officials and the bidders
that it had yet to make a recommendation on one of the two to the
Opel trust.  Dow Jones relates a ministry official said that
proposal wasn't accepted during Tuesday's discussions, and both
bidders have until the end of the week to revise their offers.  GM
had hoped to close an Opel deal by the end of the third quarter,
but a person close to the discussions said it remained possible to
seal a binding agreement ahead of the election, with the closing
two months after that, Dow Jones notes.

                         Royalty Payments

In a separate report Bloomberg News discloses Deputy Economy
Minister Jochen Homann said Germany wants GM to forego royalties
from Opel and set aside the payments as collateral in the event of
a default on government-backed loans for the division.

"We made this suggestion to GM to see whether such a possibility
indeed exists," Bloomberg quoted Mr. Homann as saying in a
telephone interview Wednesday.  "We haven't had any response from
GM yet."

                       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)


WADAN YARDS: Court Opens Main Insolvency Proceedings
----------------------------------------------------
Friederike Krieger at Lloyd's List reports that a local court in
the city of Schwerin has opened the main insolvency proceedings
for bankrupt Wadan Yards MTW GmbH in Rostock-Warnemuende and
Wismar.

Lloyd's List, citing the court, discloses creditors have until
September 14 to give notice of claims.  The yards, Lloyd's List,
says, has about EUR90 million (US$128.9 million) in debts.

As reported in the Troubled Company Reporter-Europe on June 9,
2009, Wadan Yards filed for insolvency in the District Court in
Schwerin, Germany, putting 2,500 jobs at the shipyards in Wismar
and Rostock at risk.  The court appointed Marc Odebrecht at
Brinckmann & Partners, as insolvency administrator.

Wadan Yards MTW GmbH is a unit of Wadan Yards Group AS --
http://www.wadanyards.com/-- a multinational maritime engineering
and construction group comprising leading German and Ukrainian
ship yards.  The group specializes in advanced marine solutions
for hydrocarbon exploration, production and transportation,
particularly for Arctic conditions.


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H U N G A R Y
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* HUNGARY: Company Liquidations in First Half 2009 Reach 14,122
---------------------------------------------------------------
MTI-ECONEWS, citing fresh data from Creditreform, reports that the
number of liquidation procedures initiated against Hungarian
companies in the first half of 2009 reached 14,122, already almost
70% of the number in all of last year.

According to the report, the number of liquidation procedures
brought against companies by creditors or suppliers increased more
than 36% to 7,517 in the first half of 2009 from the same period a
year earlier, while the number of self-initiated liquidation
procedures rose almost 60% to 6,590.

The report says just 15 companies applied for bankruptcy
protection, as the business environment in Hungary makes it easier
for owners to take assets out of troubled companies and put them
into new ones.


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I R E L A N D
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BANK OF SCOTLAND: Moody's Cuts Bank Fin'l Strength Rating to 'D-'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the bank deposit ratings
of Bank of Scotland (Ireland) to Baa1/Prime-2 from A2/Prime-1 (on
review for possible downgrade) and downgraded the bank financial
strength rating to D- (mapping to a baseline credit assessment of
Ba3) from D (on review for possible downgrade).  The outlook on
the BFSR and the long-term ratings is negative.  These rating
actions conclude the outstanding review for possible downgrade of
the bank's ratings initiated on April 8, 2009.

Ross Abercromby, Vice President/Senior Analyst and the lead
analyst for the bank at Moody's said "The downgrade of BOSI to
Baa1/D-/P-2 reflects Moody's concerns about the weak underlying
performance of the entity, which has large concentrations in
commercial property in Ireland, and the considerable uncertainties
around the longer-term strength of the franchise in Ireland, which
Moody's believe may reduce the importance of BOSI to Lloyds over
time.  For the near future, Moody's expect that support from the
Lloyds Banking Group will remain strong, as demonstrated through
recent capital injections and through the plans to incorporate a
large proportion of BOSI assets into the UK Asset Protection
Scheme."

Commenting on the downgrade of the BFSR to D-, Moody's has
concerns about the long-term strength of the franchise of the bank
given the uncertainties around the future of the weak retail
business and the bank's concentration on the Irish property market
that will be substantially smaller in the future.  In addition the
D- also reflects the large single borrower concentrations, the
very high reliance on the parent for funding and the broader risks
relating to the Irish economy.  Further downside pressure has been
largely mitigated by the inclusion of the bank's riskier assets in
the insurance cover of the UK government's Asset Protection Scheme
(APS).  The bank's ultimate parent Lloyds Banking Group (Lloyds,
rated A1/P-1) is to put in place a scheme whereby it insures 90%
of the losses on those assets that are placed into the APS.  This
together with the additional capital (EUR700 million) that has
been injected into the bank in 2009 underpins the bank's financial
strength rating of D-.  While the capital ratios of the bank will
initially increase substantially as a result of these measures,
Moody's would not expect the group to maintain them at the current
elevated levels in the longer-term.  The outlook on the BFSR is
negative in response to the uncertainties around the future and
viability of the franchise as detailed above.

The downgrade of the bank deposit and senior debt ratings to Baa1/
P-2 from A2/Prime-1 reflects the weaker financial strength of the
bank but still incorporates Moody's view that support will
continue to be forthcoming during the current difficult period.
However in the longer-term the strategic rationale for Lloyds to
own a relatively small bank in Ireland is less obvious and given
the uncertainties around the long-term viability of the franchise
Moody's believe the importance of BOSI to Lloyds may reduce.  The
negative outlook on the long-term bank deposit rating also
reflects these factors.

The last rating action was on April 8, 2009 when the ratings were
downgraded to A2/D and placed on review for possible downgrade.

These ratings were downgraded:

Bank of Scotland (Ireland):

* Bank financial strength rating to D-, from D

* Long-term bank deposit rating to Baa1, from A2 (on review for
  possible downgrade)

* Short-term bank deposit rating to Prime-2, from Prime-1 (on
  review for possible downgrade)

Headquartered in Dublin, Ireland, BOSI reported consolidated
assets of EUR39.2 billion at year-end 2007.


REFLEX MOULDINGS: FHS Buys Business; 70 Jobs Saved
--------------------------------------------------
Belfast Telegraph reports that Markethill-based plastics
manufacturer FHS Group of Lisburn has bought Reflex Mouldings out
of administration for an undisclosed sum.

PwC administrator Paul Rooney, as cited by Belfast Telegraph, said
Reflex, which employs 70 people, called in the administrators at
the end of June because of trading and financial difficulties but
there was still a core business.  Belfast Telegraph relates
Mr. Rooney said FHS was offering employment opportunities to all
existing employees.

Based in Co Armagh, Ireland, Reflex Mouldings manufactures floor
tiles for industrial, commercial and domestic use and number
plates and car mats for a variety of local and international
customers.


ULSTER BANK: Moody's Upgrades Bank Fin'l Strength Rating to 'D+'
----------------------------------------------------------------
Moody's Investors Service has confirmed the A2 long-term bank
deposit and senior debt ratings of Ulster Bank, Ulster Bank
Ireland Ltd. and First Active plc.  The bank financial strength
rating of each of the banks was upgraded to D+ (mapping to a
baseline credit assessment of Baa3) from D (BCA: Ba2).  In
addition the subordinated debt rating of First Active plc has been
confirmed at A3.  The Prime-1 ratings of all three entities were
confirmed.  The outlook on the BFSRs and the long-term ratings is
stable.  These rating actions conclude the outstanding review for
possible downgrade of the banks' ratings initiated on April 8,
2009.

Ross Abercromby, Vice President/Senior Analyst and the lead
analyst for the bank at Moody's said "The confirmation of the
A2/P-1 bank deposit and senior debt ratings reflects Moody's view
that the high level of support demonstrated to date by the bank's
parent, Royal Bank of Scotland, will continue, even after the
current difficult period.  The upgrade of Ulster Bank's BFSR to D+
reflects the substantial benefit to the bank from the inclusion of
their riskiest assets in the UK government's Asset Protection
Scheme and Moody's view that the bank's franchise across the
island of Ireland will remain strong, whilst recognizing the
sizeable challenge facing the bank over the next couple of years
in managing its problem loans."

The upgrade of the BFSR to D+ incorporates the benefit of the
insurance cover of the UK government's Asset Protection Scheme
(APS) for the bank's riskier assets as well as reflecting the
bank's strong franchise.  The bank's parent Royal Bank of Scotland
(RBS) is intending to put in place a scheme whereby it insures at
100% the losses on those assets from Ulster Bank that are placed
into the APS.  This together with the substantial additional
capital that has been injected into Ulster Bank in 2009 places the
bank in a much stronger financial position.  These measures are a
vital supporting factor for the BFSR at the current level, given
the bank's large single borrower concentrations and the broader
risks for the bank relating to the weakness of the Irish and UK
economies.  As a result of these measures the capital ratios of
the bank will initially increase substantially, however Moody's
expects these high capital ratios to reduce as the bank takes
provisions on non-covered assets and absorbs costs associated with
the restructuring of the firm, including the upcoming merger of FA
and UBIL.

The D+ BFSR also reflects the strong franchise of the bank across
both Northern Ireland and the Republic of Ireland, especially its
position as one of the major banks in Northern Ireland and as the
third clearing bank in the Republic of Ireland.  As a result of
this Moody's expects that the bank will be able to return to more
normal levels of profitability in the future when the Irish
economy recovers.

The confirmation of the A2 bank deposit and senior debt rating
reflects the ongoing support from RBS (rated Aa3, stable outlook)
and Moody's view that this support will be ongoing.  The stable
outlook on the ratings reflects the benefits of the APS and the
additional capital that has been injected as well as the stable
outlook on the senior ratings of RBS.

The last rating action was on April 8, 2009, when the ratings were
downgraded to A2/D and placed on review for possible downgrade.

These ratings were confirmed:

Ulster Bank Ltd:

* Long-term bank deposits at A2
* Short-term bank deposits at Prime-1
* Senior unsecured debt at A2

Ulster Bank Ireland Ltd:

* Long-term bank deposits at A2
* Short-term bank deposits at Prime-1
* Senior unsecured debt at A2
* Commercial paper at Prime-1

Ulster Bank Finance plc:

* Backed senior unsecured debt at A2
* Backed commercial paper at Prime-1

First Active plc:

* Long-term bank deposits at A2
* Short-term bank deposits at Prime-1
* Senior unsecured debt at A2
* Subordinated debt at A3
* Commercial paper at Prime-1
* Other short-term at Prime-1

First Active Treasury plc:

* Backed senior unsecured debt at A2
* Backed subordinated debt at A3
* Commercial paper at Prime-1
* Backed other short-term at Prime-1

These ratings were upgraded:

Ulster Bank Ltd:

* Bank financial strength to D+ from D

Ulster Bank Ireland Ltd:

* Bank financial strength to D+ from D

First Active plc:

* Bank financial strength to D+ from D

Headquartered in Belfast, UK, Ulster Bank Ltd reported
consolidated assets of GBP69.7 billion at year-end 2008.

Headquartered in Dublin, Ireland, Ulster Bank Ireland Ltd reported
consolidated assets of EUR58 billion at year-end 2008.
Headquartered in Dublin, Ireland, First Active plc reported
consolidated assets of EUR16.9 billion at year-end 2008.


* IRELAND: Company Insolvencies Reach 151 in July 2009
------------------------------------------------------
Laura Noonan at Independent.ie, citing the latest research from
insolvency Web site insolvencyjournal.ie, reports that the number
of company insolvencies in Ireland in July reached 151,
substantially higher than than the 113 collapses in June.

According to Independent.ie, the data shows there were 48 company
insolvencies recorded in July in the construction sector, 30 in
the retail sector, 9 in the motor sector compared to 3 in June,
and 14 in the hospitality sector against 13 in June.

Insolvencyjournal.ie editor Larry Ryan, as cited by
Independent.ie, said the higher numbers partly reflected a rush to
the Four Courts before the legal holidays in August.

Independent.ie discloses the year's insolvency tally is now
running at 853 -- more than twice the 367 collapses recorded in
the first seven months of last year.  The 2009 figures show 259
construction firms went out of business in the first seven months,
along with 145 services companies, 131 retailers, 111 hospitality
firms and 207 other companies, Independent.ie relates.
Independent.ie notes the vast majority of insolvencies resulted in
liquidation, with 644 voluntary liquidations so far this year and
77 court-ordered wind-downs.


* IRELAND: 25% of Q2 Creditor Meetings Involve Construction Firms
-----------------------------------------------------------------
Niamh Hennessy at Irish Examiner.com reports that one in four
creditor meetings held in the second quarter of this year in
Ireland were for firms in the construction industry.

The report relates figures from Inter Company Comparisons (ICC
Information) show there were 229 creditors meeting held in the
second quarter of this year with three out of four of these
concerning Dublin-based companies.  According to the report, while
59 meetings concerned the construction industry, 32 concerned
wholesale, 26 manufacturing, 25 hotel and restaurants and 21 the
retail sector.

The report discloses ICC said that according to its last filed
accounts the 229 companies had creditors of just under EUR200
million, split into creditors due EUR160 million in a year and
long-term creditors due EUR38 million.

Michael Gannon, head of account and business development at ICC
Information, said 84% of the companies had a current ratio of
below one, which means that they could not meet their debts if
called on to do so, 64% had a negative working capital, while 47%
had a negative net worth.


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


ARES FINANCE: Fitch Lowers Rating on EUR15MM Class E Notes to 'B'
-----------------------------------------------------------------
Fitch Ratings has downgraded Ares Finance S.A.'s Class D and E
floating-rate notes due July 2011 and revised their Outlook for
the Class D notes.  Ares Finance 2 S.a. is a securitization of a
portfolio of Italian Non-Performing Loans serviced and managed by
Societa Gestione Crediti S.r.l./Archon Group Italia S.r.l. (rated
'RSS2+'/'CSS2+').

  -- EUR37 million Class D (XS0134905206): downgraded to 'BBB'
     from 'A+'; Outlook revised to Negative from Positive

  -- EUR15 million Class E (XS0134905545): downgraded to 'B' from
     'BBB'; Outlook Negative

The downgrade reflects the weakening collections performance up
to July 2009, which remains below Fitch's revised base case.
Between January and July 2009, gross recoveries were only at
EUR8.9 million, the lowest since transaction closing in December
2001 and compared to the EUR21.6 million for the six-month period
to December 2008.  Total cumulative gross collections as of July
2009 were at EUR662 million.

Fitch is more concerned about recovery timing than recoverability
of the NPLs.  As shown in the servicer report dated July 22, 2009,
recovery and profitability rates remain healthy.  However, the
delays between the resolution of claims by the courts in the
distribution phase and actual receipt of collections by the
servicer are exposing the most junior class, Class E, to the risk
of missed principal payment by their final legal maturity.
Therefore, this class has been downgraded to 'B'.

Given current performance, Fitch is also concerned about the
repayment of the senior notes, Class D, as reflected by the
downgrade and the Negative Outlook.  However, the limited size of
the notes still outstanding compared with the remaining portfolio
to be resolved and the expected recoveries of EUR33.5 million from
positions with full court resolution are likely to reduce the
outstanding balance of the Class D notes on future payment dates.
This process is, however, taking longer than expected, potentially
slowing down the repayment of the notes while increasing expenses
including servicer and asset managers' fees, given the lengthy
work-out process of the outstanding portfolio.

Although 39% of the outstanding portfolio by gross book value
(GBV) is in the distribution phase, 52% by GBV consists of
bankrupted claims, for which the recovery timing is generally
longer than for claims whose borrower is solvent.  Moreover,
longer tribunals timing in central and southern Italy also explain
the delayed resolution of many claims at an advanced legal stage.

As of July 2009, the outstanding portfolio accounted for 2,255
unresolved claims, for a total GBV of EUR625.7 million.  At
closing, the GBV of the pool was EUR1,287.8 million.  The pool is
mainly located in central and southern Italy (43% and 33% by GBV,
respectively) and it primarily consists of residential claims (48%
by GBV).

Fitch will continue to monitor the performance of the transaction.


HELM FINANCE: Forced Into Liquidation by Italian Finance Ministry
-----------------------------------------------------------------
Elisa Martinuzzi at Bloomberg News reports that Helm Finance SGR,
a Milan-based hedge fund, was placed under forced liquidation by
Italy's Finance Ministry.

According to Bloomberg, a probe by the securities market regulator
showed the hedge fund, run by Chief Executive Officer Alessandro
Rombelli, had inadequate management and controls.

Bloomberg relates the Bank of Italy named Fabio Salina as
liquidator.


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


FINANSOVOYE AGENSTVO: Creditors Must File Claims by August 14
-------------------------------------------------------------
CJSC Finansovoye Agenstvo Po Sboru Platejey's branch is currently
undergoing liquidation.  Creditors have until August 14, 2009, to
submit proofs of claim to:

         Jandosv/Manas Str. 8a/34a
         Almaty
         Kazakhstan


KARAGANDA GAS: Creditors Must File Claims by August 14
------------------------------------------------------
LLP Karaganda Gas Sbyt is currently undergoing liquidation.
Creditors have until August 14, 2009, to submit proofs of claim
to:

         Zarechnaya Str.17
         Saran
         Karaganda
         Kazakhstan


ORKEN JSC: Creditors Must File Claims by August 14
--------------------------------------------------
JSC Orken is currently undergoing liquidation.  Creditors have
until August 14, 2009, to submit proofs of claim to:

         Ilyaev Str. 4/81
         Shymkent
         South Kazakhstan
         Kazakhstan


YASSY JSC: Creditors Must File Claims by August 14
--------------------------------------------------
JSC Yassy is currently undergoing liquidation.  Creditors have
until August 14, 2009, to submit proofs of claim to:

         Hlopzavodskaya Street
         Turkestan
         South Kazakhstan
         Kazakhstan


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


AINEK OJSC: Creditors' Meeting Scheduled for August 11
------------------------------------------------------
The temporary insolvency manager of OJSC Ainek will present his
final report at a creditors' meeting at 3:00
p.m. on August 11, 2009, at:

         Molodaya Gvardiya Ave. 27
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 65-58-61

Proxies must have authorization to vote.

CONSTANTA ASIA: Creditors Must File Claims by August 15
-------------------------------------------------------
LLC Constanta Asia is currently undergoing liquidation.  Creditors
have until August 15, 2009, to submit proofs of claim to:

Inquiries can be addressed to (+996 312) 52-40-63.


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


DALRADIAN EUROPEAN: Moody's Cuts Rating on Class E Notes to 'Ca'
----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of six
classes of notes issued by Dalradian European CLO IV B.V.

This transaction is a managed high yield collateralized loan
obligation comprised primarily of senior secured loan obligations,
senior unsecured loan obligations and mezzanine loans primarily
issued by companies located in Western Europe.

According to Moody's, the rating actions taken on the notes are a
result of credit deterioration of the underlying portfolio.  This
is observed in, among other measures as per Trustee Report dated
June 30, 2009, a decline in the average credit rating as measured
through the weighted average rating factor (currently 2760), an
increase in the proportion of securities from issuers rated Caa1
and below (currently 9.10% of the portfolio), and a failure of all
Par Value tests (including a deterioration of the Class A/B Par
Value Test from 123.13% in February 2009 to 115.14% in June 2009).
Moody's also performed a sensitivity analysis, including amongst
others, a further decline in portfolio WARF quality combined with
a decrease in the expected recovery rates.  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.

The rating actions also reflect Moody's revised assumptions with
respect to default probability and the calculation of the
Diversity Score as described in the press release dated February
4, 2009, titled "Moody's updates key assumptions for rating CLOs."
These revised assumptions have been applied to all corporate
credits in the underlying portfolio, the revised assumptions for
the treatment of ratings on "Review for Possible Downgrade",
"Review for Possible Upgrade", or with a "Negative Outlook" being
applied to those corporate credits that are publicly rated.

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:

Dalradian European CLO IV B.V.:

  -- EUR164,000,000 Class A Senior Secured Floating Rate Notes due
     2023, Downgraded to Aa3; previously on 8/13/2007 Definitive
     Rating Assigned Aaa;

  -- EUR100,000,000 Senior Secured Floating Rate Variable Funding
     Notes due 2023, Downgraded to Aa3; previously on 8/13/2007
     Definitive Rating Assigned Aaa;

  -- EUR32,000,000 Class B Senior Secured Floating Rate Notes due
     2023, Downgraded to Baa3; previously on 3/4/2009 Placed Under
     Review for Possible Downgrade;

  -- EUR24,000,000 Class C Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to B2; previously on 3/18/2009
     Downgraded to Baa3 and Placed Under Review for Possible
     Downgrade;

  -- EUR25,000,000 Class D Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to Caa3; previously on 3/4/2009
     Downgraded to B1 and Placed Under Review for Possible
     Downgrade;

  -- EUR15,000,000 Class E Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to Ca; previously on 3/4/2009 Downgraded
     to Caa1 and Placed Under Review for Possible Downgrade.


LYONDELL CHEMICAL: Appeal on BASF Suit Allowed to Proceed
---------------------------------------------------------
Debtor Lyondell Chemical Company and BASF Corporation entered
into a stipulation under which both of them agreed that
Lyondell's appeal of the decision from the New Jersey Superior
Court, Law Division should proceed, subject to the United States
Bankruptcy Court for the Southern District of New York's order on
April 10, 2009, and the consent order entered by the New Jersey
Superior Court, Appellate Division on May 27, 2009.  Accordingly,
Lyondell and BASF agree to modify the automatic stay under
Section 362(a) of the Bankruptcy Code to permit the Appeal to
proceed to a final disposition, subject to the Consent Order and
the stipulation.

BASF had asked the Court to lift the automatic stay (i) to permit
the Appellate Court to resolve the status of the Appeal and the
effect, if any, of its order; and (ii) to permit the Debtor's
Appeal to proceed to its ultimate disposition.

BASF Corporation, in its lift stay request, argued that Debtor
Lyondell Chemical Company is trying to manipulate the automatic
stay to divest BASF of important substantive rights.
Specifically, the Debtor is trying to prevent BASF from protecting
a US$200 million appeal bond meant to secure BASF's rights for a
US$200 million judgment being appealed by the Debtor in the
Superior Court of New Jersey, Appellate Division, Jonathan S.
Henes, Esq., at Kirkland & Ellis LLP, in New York, said.

BASF and the Debtor are parties to a prepetition long-term
contract wherein the Debtor process propylene provided by BASF
into propylene oxide, a chemical used in products like foam
cushions and soaps.  BASF and the Debtor agreed on a price for
the Propylene Oxide.  Since the Debtor was cash poor at that
time, it sought a substantial upfront payment.  BASF agreed to
make the upfront payment for US$91 million -- the Reservation Fee
-- and the payment was to be applied to BASF's purchases of
Propylene Oxide over the term of the Contract for 11.7 cents per
pound of Propylene Oxide purchased by BASF.  To guarantee that
the pricing terms remained favorable to BASF over the 13-year
term of the Contract, the Debtor agreed to include a Most Favored
Nation provision in the Contract, which obligated the Debtor to
(i) notify BASF if the Debtor sold or processed Propylene Oxide
at a lower price provided to BASF under the Contract; and (ii)
adjust its price to BASF to meet the lower price.  BASF honored
its obligations under the Contract, purchasing over 1 billion
pounds of Propylene Oxide from the Debtor from 1999 through 2006.
The Debtor repeatedly assured BASF that it was complying with its
obligations under the MFN even though it was doing nothing,
asserts BASF.  In 2004, after losing numerous sales opportunities
based on the Propylene Oxide pricing, BASF exercised its
contractual right to conduct an audit of the Debtor's compliance
under the Contract.  The audit covering a three-year period
showed that the Debtor granted lower prices to other customers.

Consequently, BASF sued the Debtor for breach of contract in
Morris County, New Jersey in 2005.  The Debtor denied liability
throughout the discovery and pre-trial but has admitted that it
had been overcharging BASF over years and had never notified BASF
of the overcharges.  The jury returned a verdict in favor of BASF
for US$169 million for violations of the MFN since 1999.  The
Debtor's willful MFN violations, which continued from 1999
through 2006, forced BASF to borrow funds and pay interest on
those funds or forgo the benefit of earning interest on the
US$169.9 million.  In October 2007, the Trial Court entered final
judgment, including prejudgment interest for BASF against the
Debtor for US$200 million.

Subsequently, the Debtor appealed the Trial Court's decision and
in order to stay BASF's execution on the Judgment, posted the
Appeal Bond for US$200 million.  The Debtor also submitted a
Notice of Bankruptcy Stay to the Appellate Division requesting
that its Appeal be stayed due to its bankruptcy filing and no
further action be taken.  The Clerk of the Appellate Division
wrote a letter informing the Debtor that the Clerk's policy was to
dismiss appeals without prejudice when those appeals have been
stayed by an automatic bankruptcy stay pending lifting the
automatic stay or further developments in the bankruptcy case.
BASF neither received the Clerk's response nor did the Debtor
provide it to BASF.  The Clerk of the Appellate Division formally
issued an order dismissing the Appeal.  The Debtor then sought
for the insurance carriers that issued the Appeal Bond for the
refund of any unused bond premiums.  The Debtor's Letter was not
authorized by the Bankruptcy Court, the Appellate Division or the
New Jersey Trial Court, BASF contends.

BASF informed the Clerk regarding the Debtor's actions and was
told that the dismissal was administrative and was not intended to
trigger any action to cancel the bond or to in any way affect the
Appeal on the merits.  As directed by the Clerk, BASF filled out
an online form of the Appellate Division's Fact Sheet on
Application for Emergent Relief.  The Appellate Division
then ordered BASF and the Debtor to submit briefing on
January 22, 2009.  Prior to BASF's submission of its briefing, the
Appellate Division issued an order temporarily reinstating the
Appeal pending receipt and review of briefing submitted by the
Debtor and enjoining the insurance carriers from refunding the
premiums paid by the Debtor.  The Debtor's counsel subsequently
contacted BASF claiming that BASF had violated the automatic stay
by contacting the insurers and by submitting the Appellate
Division's Fact Sheet.

The Debtor's counsel also sought for an extension of time to file
its brief.  In turn, BASF asked the Debtor if it would be
permissible for BASF to file its brief without violating the
automatic stay to which the Debtor agreed.  BASF was later
informed that the Debtor permitted BASF's filing of the brief but
the Debtor intended to reserve its right to file a motion in the
Bankruptcy Court concerning BASF's filing.  BASF submitted its
brief and the Appellate Division gave Lyondell until January 26,
2009, to file its brief response.  Moreover, on January 23, 2009,
BASF and the Debtor entered into a standstill agreement wherein
the parties agreed that they will not initiate any action in the
New Jersey Courts or take any action against or with respect to
the insurers of the Appeal Bond.  With respect to the briefing
before the Appellate Division concerning the Clerk's
administrative dismissal of the Appeal without prejudice, the
parties agreed to ask the Appellate Division to maintain the
status quo and to hold the matter in abeyance.  The Stand-Still
Agreement ran until February 11, 2009, and may be further
extended.

                      About Lyondell Chemical

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

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

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

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

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

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


LYONDELL CHEMICAL: Asks for DIP Extension Due to Merger Suit
------------------------------------------------------------
Various reports say that Lyondell Chemical Co. is asking for a
six-week extension, to January 31, of the term of its US$8 billion
of DIP financing, in light of a lawsuit pursued by unsecured
creditors against lenders and former shareholders.  The loan
extension will be subject to approval by the Bankruptcy Court.

According to Reuters, Edward Weisfelner, Esq., at Brown Rudnick
LLP, counsel to the Creditors Committee, and Marshall Huebner,
Esq. at Davis Polk & Wardwell, counsel to Citibank N.A., confirmed
the Debtors' request for an extension at an August 4 hearing.
Citibank N.A. is the administrative agent of a DIP facility to
Lyondell.

Without an extension, the US$8 billion of debtor-in-possession
financing would mature December 15.

As reported by the TCR on August 3, 2009, the Creditors Committee
brought to the Bankruptcy Court a complaint alleging, among other
things, fraudulent transfer, breach of fiduciary duty, and breach
of contract, against lenders who funded, and shareholders who
obtained proceeds from, Lyondell Chemical Company's merger with
Basell AF S.C.A.  The Committee alleges, among other things, that
Leonard Blavatnik Blavatnik used highly leveraged Basell as a
platform to acquire Lyondell in a cash out merger of Lyondell
shareholders funded entirely with debt.  Every dollar of the US$
22 billion used to acquire Lyondell and to fund US$1 billion in
transaction fees was borrowed money; and the US$48 per share price
paid to Lyondell shareholders pursuant to the merger was an
excessive price to foreclose the possibility of a competitive bid.

On concerns of a possible delay of the reorganization, counsel to
Lyondell, Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft
LLP, said the Company probably can confirm a bankruptcy plan
without resolving all legal issues.  Mr. Palmer said Lyondell has
had "significant interest" in funding an exit loan.

The Creditors Committee's Mr. Weisfelner raised a concern about
avoiding a reserve.  According to Bloomberg, a reserve, or
litigation trust, is created in some cases to cover claims from
lawsuits that are unresolved during a bankruptcy.

                      About Lyondell Chemical

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

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

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

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

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

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


===========
P O L A N D
===========


LEHMAN BROTHERS: Poland to Probe Citi Handlowy Over Bonds
---------------------------------------------------------
The Regional Public Prosecutor's Office in Warsaw, Poland is
investigating Citibank's Polish subsidiary, Citi Handlowy, over
accusations of fraud related to Lehman Brothers bond.

According to an August 3, 2009 report by the Warsaw Business
Journal, the Public Prosecutor's Office is investigating how much
Citi Handlowy knew about the real situation of Lehman Brothers in
2008 when Citi Handlowy was encouraging clients to buy bonds in
Lehman Brothers.  WBJ, citing a report from Newsweek, said Lehman
Brothers sold the bonds to several dozen clients at the beginning
of 2008.

Renata Mazur, prosecutor and spokesperson for the Warszawa-Praga
Regional Public Prosecutor's Office, told WBJ that the fraud
investigation was launched on May 14, 2009.

Prosecutors are currently collecting documentation pertaining to
the sale of the bonds, but Citi Handlowy had not yet been
officially informed, according to WBJ.  "Citi Handlowy bank
undoubtedly knows about the investigation, but is currently not a
party in the proceedings; no charges have been filed against any
of the bank's employees," said Ms. Mazur.

Lawyer Lukasz Cieslak, who, together with the law firm of
Grynhoff Wozny Malinski is representing around 20 complainants
against Citi Handlowy, told WBJ that affluent, cautious customers
had been persuaded to buy Lehman Brothers bonds.  Mr. Cieslak,
WBJ related, said that although the bonds were risky, clients
were assured that their money was completely safe and the worst-
case scenario would mean breaking even.

In Hong Kong, an investigation over the sale by other banks of
bonds linked to Lehman Brothers is also underway.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

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

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

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

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for USUS$1.75
billion.  Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 dollars plus
the retention of most of employees.  Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion (USUS$33
billion) in liabilities in its petition.

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


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


ENGELSK PIPE: Creditors Must File Claims by August 17
-----------------------------------------------------
Creditors of CJSC Engelsk Pipe Plant have until August 17, 2009,
to submit proofs of claims to:

         V. Naumov
         Temporary Insolvency Manager
         Office 14
         Novouzenskaya Str. 214A
         Saratov
         410054 Saratovskaya
         Russia

The Arbitration Court of Saratovskaya commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. ?57–7833/2009.

The Debtor can be reached at:

         CJSC Engelsk Pipe Plant
         Building 10
         Promushlennaya Street
         413116 Saratovskaya
         Russia


MECHEL OAO: To Manage Bankrupt Zlatoust Metals Plant
----------------------------------------------------
Ilya Khrennikov at Bloomberg News reports that OAO Mechel will
manage the bankrupt OAO Zlatoust Metals Plant after a request by
the government of Chelyabins.

Bloomberg relates the local government said Mechel representative
Rashid Nugumanov was appointed chief executive officer of the
steel plant.

                         Refinancing Deal

The Troubled Company Reporter-Europe reported on July 23, 2009,
that Mechel signed a deal to refinance its short-term credit
facilities totaling US$2.6 billion raised to purchase assets in
Yakutia and Oriel Resources Ltd.  As was announced earlier,
negotiations with syndicates of banks that provided Mechel with
credit facilities for acquisition of Yakutugol Holding Company OAO
and Elgaugol OAO in October, 2007 and Oriel Resources Ltd. (Great
Britain) in April, 2008, resulted in signing the agreement on
refinancing of these facilities in the period of up to 3.5 year on
July 10, 2009.  On July 17, 2009, Mechel signed all its
refinancing operations documentation.  Currently the bridge loan
which was taken for Oriel Resources acquisition is fully repaid.
A total of 27 banks were participants of the deal.  Mechel's legal
adviser on the deal was Gide Loyrette Nouel company.

On July 14, 2009, the Troubled Company Reporter-Europe, citing Dow
Jones, reported Mechel in June said it wouldn't be able to survive
unless its creditors agreed to restructure its loans.

Mechel OAO (Mechel Steel Group OAO) (NYSE:MTL) --
http://www.mechel.com/-- is a Russia-based vertically integrated
mining and metals company.  The Company's business comprises two
segments, mining and steel.  The mining segment includes the
production and sale of coal, iron ore and nickel, while the steel
business covers the production and sale of semi-finished steel
products, carbon and stainless flat products as well as value
added downstream metal products, such as hardware, stampings and
forgings.  In addition, Mechel OAO owns and operates two trade
ports, a railway and an energy company.  It has production
facilities located in Russia, Romania and Lithuania.  The Company
has 22 subsidiaries, of which 12 are wholly owned.  Numerous
representative offices located worldwide, allow the Company to
offer its products on both domestic and
international markets.


SOYUZ-STROY LLC: Creditors Must File Claims by August 17
--------------------------------------------------------
Creditors of LLC Soyuz-Stroy (TIN 6453090780, PSRN 1076453000436)
(Construction) have until August 17, 2009, to submit proofs of
claims to:

         I. Sinyaev
         Temporary Insolvency Manager
         Post User Box 219
         410005 Saratov
         Russia

The Arbitration Court of Saratovskaya will convene at 10:00 a.m.
on November 3, 2009, to hear bankruptcy supervision procedure on
the company.  The case is docketed under Case No. ?57–7400/2009.

The Court is located at:

         The Arbitration Court of Saratovskaya
         Courtroom 32
         Babushkib Vzvoz 1/14
         Saratov
         Russia

The Debtor can be reached at:

         LLC Soyuz-Stroy
         Shekhurdina Str. 8
         410010 Saratov
         Russia


UC RUSAL: Oleg Derispaka's Appeal on Michael Cherney Case Rejected
------------------------------------------------------------------
Alex Spence at The Times reports that the Court of Appeal has
rejected Oleg Derispaka's request to have a GBP2.4 billion lawsuit
against him over shares in Rusal transferred from London to
Russia, upholding an earlier ruling by the High Court.

The report relates Michael Cherney, a former business associate,
claims he struck a deal with Mr. Deripaska at a hotel in London in
2001 to sell his stake in SibAl, a Russian aluminium producer, to
Mr. Deripaska in exchange for US$250 million in cash and a 20%
stake in Rusal, Mr. Deripaska's larger company, to be handed over
after five years.  Mr. Cherney, the report discloses, claims he
did not receive the promised shares in Rusal and he is seeking to
force Mr. Deripaska to sell them and hand over the proceeds.

According to the report, the court decided that there was
sufficient evidence to conclude that Mr. Cherney's safety might be
in danger if he returned to Russia or that a trial there could be
prejudiced by Mr. Deripaska's ties to the Kremlin.

The report says a full trial to determine the merits of
Mr. Cherney's claim is unlikely to be heard until next year even
if Mr. Deripaska does not appeal against the July 31 ruling to the
new Supreme Court.

As reported in the Troubled Company Reporter-Europe on July 23,
2009, The Financial Times said Ali Malek QC, Mr. Deripaska's
lawyer, told the Court of Appeal in London that the High Court had
"gone seriously wrong" in an earlier ruling, which allowed Mr.
Cherney to bring the case in England because he risked being
assassinated or wrongly arrested if he pursued it in Russia.
According to the FT, Mr. Malek told the appeal court that the
earlier ruling ordering proceedings to take place in England
should be overturned, because the links of the case there were
"extremely thin" compared with the "attractive logic" of holding
it in Russia.

                        Debt Restructuring

On Aug. 3, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Rusal agreed with representatives of
foreign banks on "key terms" to extend repayments on US$7.4
billion of loans.  Bloomberg disclosed Rusal said that a
coordinating committee acting for more than 70 banks consented to
the the company extending payments over seven years.  Rusal, as
cited by Bloomberg, said it expects to reach an accord with
Russian lenders in coming months.  The accord is subject to
approval by each bank's credit committee.  Rusal, with US$14
billion in bank debt, froze payments from March 11 to renegotiate
terms after metal prices slumped and operations ceased to be
profitable.  The company's lenders include the Royal Bank of
Scotland Group Plc., Deutsche Bank AG, Sumitomo Mitsui Financial
Group Inc., Barclays Plc, BNP Paribas SA, Commerzbank AG and
Natixis.  Rusal, with US$14 billion in bank debt, froze
payments from March 11 to renegotiate terms after metal prices
slumped and operations ceased to be profitable.  The company's
lenders include the Royal Bank of Scotland Group Plc., Deutsche
Bank AG, Sumitomo Mitsui Financial Group Inc., Barclays Plc, BNP
Paribas SA, Commerzbank AG and Natixis, Bloomberg discloses.

                            About Rusal

Headquartered in Moscow, Russia, United Co. RUSAL --
http://www.rusal.com/-- is among the world's top aluminum
producers, along with Rio Tinto Alcan and Alcoa.  Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite.  Its aluminum business
include packaging and foil operations in addition to a network of
smelters.  Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit.  RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.


ZLATOUST METALS: Mechel to Manage Plant, Local Government Says
--------------------------------------------------------------
Ilya Khrennikov at Bloomberg News reports that OAO Mechel will
manage the bankrupt OAO Zlatoust Metals Plant after a request by
the government of Chelyabins.

Bloomberg relates the local government said Mechel representative
Rashid Nugumanov was appointed chief executive officer of the
steel plant.


* RUSSIA: One-Third of Clothing Retailers Face Closure This Year
----------------------------------------------------------------
Holger Elfes at Bloomberg News, citing Reinhard Doepfer, the head
of the European Fashion and Textile Export Council, reports that a
third of Russia's 42,000 clothing retailers will close by the end
of this year after the economic crisis hurt local spending.

Mr. Doepfer, as cited by Bloomberg, said the likely retail
failures and order cutbacks in Russia mean companies in fashion-
exporting nations such as Germany will deliver less apparel for
the winter season.

According to Bloomberg, some Russian analysts, however, said Mr.
Doepfer's estimate was too pessimistic, though they acknowledged
the weak local demand.  "About 10% to 20% of retailers may go
bankrupt this year, but not a third," Bloomberg quoted Anna
Lebsak- Kleimans, president of Moscow-based researcher Fashion
Consulting Group, as saying.  "Retail chains may be reducing the
number of outlets, but they are not shutting down completely."

Citing Mr. Doepfer, Bloomberg discloses Germany exported clothes
worth EUR750 million last year to Russia, 6% more then in the
previous year.


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


HIPOTOTTA NO 10: Moody's Assigns 'B1' Rating on EUR12.5 Mil. Notes
------------------------------------------------------------------
Moody's assigns definitive credit ratings to these classes of
Notes issued by Hipototta No. 10 Limited.

  -- Aaa to the EUR927,500,000 Class A Mortgage Backed Floating
     Rate Notes due 2062

  -- Aa3 to the EUR20,000,000 Class B Mortgage Backed Floating
     Rate Notes due 2062

  -- A3 to the EUR20,000,000 Class C Mortgage Backed Floating
     Rate Notes due 2062

  -- Ba1 to the EUR20,000,000 Class D Mortgage Backed Floating
     Rate Notes due 2062

  -- B1 to the EUR12,500,000 Class E Mortgage Backed Floating
     Rate Notes due 2062

The Class F is not rated.

The transaction represents the securitization of Portuguese
residential mortgage loans originated by Banco Santander Totta
S.A., rated Aa3/Prime-1 (on review por possible downgrade).  The
assets supporting the Notes are prime mortgage loans secured on
residential properties located in Portugal.  The portfolio will be
serviced by Banco Santander Totta S.A.

The expected portfolio loss of 1.8% and the MILAN Aaa required
credit enhancement of 9.15% serve as input parameters for Moody's
cash flow model and tranching model, which is based on a
probabilistic lognormal distribution as described in the report
"The Lognormal Method Applied to ABS Analysis", published in
September 2000.  This Milan figure, which is quite in line with
what is observed in the Portuguese market reflects the average
level of LTV for the portfolio with current LTV levels at 69.16%,
almost 18% of no employment data, no loan by loan data on months
current arrears information, and 5.61% of vacation properties.
All of these characteristics have been accounted for in the cash-
flow modelling analysis.

The V Score for this transaction is Medium, which is in line with
the V score assigned for the Portuguese RMBS sector.  The V-Score
has been assigned accordingly to the report "V-Scores and
Parameter Sensitivities in the Major EMEA RMBS Sectors" published
in April 2009.

The definitive ratings address the expected loss posed to
investors by the legal final maturity.  The structure allows for
timely payment of interest and ultimate payment of principal at
par on or before the legal final maturity date.  Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed but may have a
significant effect on the yield to investors.


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


COIFFEURFACHSCHULE DE MASI: Claims Filing Deadline is August 12
---------------------------------------------------------------
Creditors of Coiffeurfachschule De Masi GmbH are requested to file
their proofs of claim by August 12, 2009, to:

         Lucia De Masi
         Liquidator
         Bahnhofstrasse 11
         4932 Lotzwil
         Switzerland

The company is currently undergoing liquidation in Aarau.  The
decision about liquidation was accepted at a shareholders' meeting
held on March 30, 2009.


DROGERIE MUELLER: Creditors Must File Claims by August 12
---------------------------------------------------------
Creditors of Drogerie Mueller AG are requested to file their
proofs of claim by August 12, 2009, to:

         Gerhard Mueller
         Steinackerweg 6
         4710 Balsthal
         Switzerland

The company is currently undergoing liquidation in Balsthal.  The
decision about liquidation was accepted at an extraordinary
general meeting held on June 26, 2009.


H. KAMM: Claims Filing Deadline is August 12
--------------------------------------------
Creditors of H. Kamm AG are requested to file their proofs of
claim by August 12, 2009, to:

         H. Kamm AG
         Bundesplatz 14
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at a general meeting held
on June 9, 2009.


H. VON: Claims Filing Deadline is August 12
-------------------------------------------
Creditors of H. von Burg GmbH are requested to file their proofs
of claim by August 12, 2009, to:

         H. von Burg GmbH
         Kirchstrasse 9
         4416 Bubendorf
         Switzerland

The company is currently undergoing liquidation in Bubendorf.  The
decision about liquidation was accepted at a shareholders' meeting
held on June 18, 2009.


KAKTUS TREKKING: Creditors Must File Claims by August 12
--------------------------------------------------------
Creditors of KAKTUS Trekking GmbH are requested to file their
proofs of claim by August 12, 2009, to:

         Silvia Kristan
         Gubelstrasse 15
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 8, 2009.


KEYCON GMBH: Claims Filing Deadline is August 12
------------------------------------------------
Creditors of KeyCon GmbH are requested to file their proofs of
claim by August 12, 2009, to:

         Gisler Kost Rita
         Liquidator
         Adlergartenstrasse 61
         6467 Schattdorf
         Switzerland

The company is currently undergoing liquidation in Schattdorf UR.
The decision about liquidation was accepted at a shareholders'
meeting held on June 13, 2009.


KIC CONSULTING: Creditors Must File Claims by August 12
-------------------------------------------------------
Creditors of KIC Consulting GmbH are requested to file their
proofs of claim by August 12, 2009, to:

         Rene Kilian
         Liquidator
         Marizholz 16
         5627 Besenbueren
         Switzerland

The company is currently undergoing liquidation in Baar ZG.  The
decision about liquidation was accepted at a shareholders' meeting
held on June 9, 2009.


KIPO GMBH: Claims Filing Deadline is August 12
----------------------------------------------
Creditors of KIPO GmbH are requested to file their proofs of claim
by August 12, 2009, to:

         KIPO GmbH
         Ruetihofstrasse 73
         8049 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at a shareholders' meeting
held on March 13, 2009.


KONRAD LOEFFLER: Creditors Must File Claims by August 12
--------------------------------------------------------
Creditors of Konrad Loeffler AG are requested to file their proofs
of claim by August 12, 2009, to:

         Peter Vogt
         Liquidator
         Marktplatz 6
         2540 Genchen
         Switzerland

The company is currently undergoing liquidation in Bettlach.  The
decision about liquidation was accepted at an extraordinary
general meeting held on June 19, 2009.


PANNENHILFE WADI: Claims Filing Deadline is August 12
-----------------------------------------------------
Creditors of Pannenhilfe Wadi GmbH are requested to file their
proofs of claim by August 12, 2009, to:

         Luchsinger Roger
         Seestrasse 59
         8820 Wädenswil
         Switzerland

The company is currently undergoing liquidation in Wadenswil.  The
decision about liquidation was accepted at the shareholders'
meeting held on December 1, 2008.


TUEG GMBH: Claims Filing Deadline is August 12
----------------------------------------------
Creditors of TUEg GmbH are requested to file their proofs of claim
by August 12, 2009, to:

         TUEg GmbH
         Zihlackerstrasse 24
         4153 Reinach BL
         Switzerland

The company is currently undergoing liquidation in Reinach BL.
The decision about liquidation was accepted at a shareholders'
meeting held on June 25, 2009.


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


BANK DIAMANT: Fitch Affirms National Long-Term Rating at 'B+'
-------------------------------------------------------------
Fitch Ratings has downgraded Ukrainian Industrialbank's Long-term
Issuer Default Rating to 'CCC' from 'B-'.  The Outlook is
Negative.

At the same time, the agency has affirmed the Long-term IDRs of
PrivatBank at 'B' and Bank Khreschatyk and Pivdennyi Bank at 'B-'.
The National Long-term rating of Bank Diamant is affirmed at
'B+'(ukr)'.  The Outlooks on each of these ratings are Negative.
A full list of rating actions is provided at the end of this
commentary.

Fitch's review of the five private domestically-owned Ukrainian
banks took into account the sharp deterioration in asset quality
metrics during H109, brought about by the depreciation of the UAH
in Q408 and the sharp economic downturn, and the likely further
rise in loan impairment charges.  In common with other banks in
Ukraine, each of the five banks reported a significant increase in
NPLs (loans overdue by more than 90 days) and/or extended and
restructured loans in H109.  This has put considerable pressure on
the banks' capital and, as loss absorption capacity remains
moderate, Fitch believes capital support is likely to be required.
Liquidity remains tight, although deposit outflows have abated in
Q209, both for the sector as a whole and the reviewed banks in
particular (with the exception of INB), after significant leakage
in Q408-Q109.  Near-term refinancing risks are modest at each of
the reviewed banks.

The sharp deterioration in asset quality at INB, combined with its
high level of related-party exposures, has resulted in the
downgrade of its IDR.  However, the deterioration in the credit
profiles of other rated banks to date remains consistent with
their relatively low rating levels and Negative Outlooks.
Nevertheless, continued marked deterioration in asset quality
metrics, if combined with insufficient replenishment of capital,
could still lead to downgrades of these banks in the future.

INB's reported level of NPLs rose to 7.2% of the loan book at end-
H109 from 2.5% at end-2008, with exposures overdue for at least
one day almost doubling to 21.1%.  In addition, a high 51% of the
portfolio was represented by restructured and extended loans.
Fitch also believes related-party lending may be considerable,
although the limited information about shareholders' other
business interests makes it difficult to assess accurately the
level of such transactions.  Foreign currency lending was a
substantial 51% of the loan portfolio at end-H109.  INB's loan
impairment reserves (9% of the loan book at end-H109) and
capitalization (regulatory capital adequacy ratio was 16.8% at
end-H109) provide material loss absorption capacity, but this is
still considered moderate given the extent of asset quality
deterioration.  INB's liquidity position is undermined by the
significant concentration of customer accounts, with the top 20
depositors accounting for 42% of the bank's total liabilities at
end-H109.  Customer funding has proved to be rather volatile,
having contracted by 18% in H109, mainly due to a decrease in the
balances of a single related-party depositor.  Highly liquid
assets (defined as cash, balances with the NBU net of obligatory
reserves, net short-term interbank assets and unpledged securities
eligible for refinancing with the NBU) were equal to 17% of
customer accounts at end-H109.

The affirmation of Privat's IDRs reflect the bank's so far
manageable levels of reported loan impairment, better-than-average
(for the Ukrainian market) risk management system and controls,
higher loan loss absorption capacity (compared to most Ukrainian
peers) and limited refinancing risks.  The ratings are also
supported by the bank's broad domestic franchise, sizeable market
shares and the potential for further liquidity support from the
National Bank of Ukraine (NBU) in case of need.  Capital support
from shareholders is also possible, but cannot be relied upon
given the lack of transparency regarding the owners' finances.

However, Privat's ratings also consider the increase in both
reported NPLs (8.8% of unconsolidated end-5M09 loans) and
extended/restructured loans (8.5%); the significant, albeit
reduced, proportion of foreign currency lending (36%); and
considerable loan concentrations.  Fitch estimates that Privat
could have increased the loan impairment reserve (LIR)/gross loans
ratio to 17.4% at end-H109, from the actual level of 15.5%
(unconsolidated) before the regulatory capital ratio would have
fallen to the minimum level of 10%.  A further equity injection
may be considered for H209, although no plans have been confirmed
yet.  The deterioration of asset quality and significant
likelihood that further capital injections will be required have
resulted in the Individual rating being downgraded to 'D/E' from
'D'.  Privat's liquidity position is supported by borrowings from
the NBU, which represented 11% of liabilities at end-H109.  At the
same date, highly liquid assets were equal to 14% of total assets
or 23% of customer accounts.  Near-term repayments of foreign
borrowings (mainly trade finance facilities and amortization of
outstanding securitisations) are moderate, with the bank's US$500m
eurobond not maturing until 2012.

Khreschatyk's reported NPLs were only 2% of gross loans at end-May
2009, but extended and restructured loans were high at 48%.  Fitch
notes, however, that Khreschatyk's asset quality benefits from a
moderate -- by Ukrainian standards -- level of foreign currency
lending (18% end-H109), limited exposure to unsecured retail
lending (less than 1%) and participation in lower-risk government
and municipal lending programmes (12%).  An exposure to the City
of Kyiv ('B'/Negative), funded by the NBU, accounts for a further
12% of the portfolio.  The LIR/loans ratio of 1.6% and regulatory
capital ratio of 15.9% at end-H109 offer only limited loss
absorption capacity, in Fitch's view, and this will only
strengthen marginally as a result of planned subordinated debt and
equity contributions (in total equal to 14% of end-H109 regulatory
capital) in H209.  Liquidity is tight, with highly liquid assets
amounting to only 10% of customer funds at end-H109.

PB's reported non-performing loans comprised a still low 2.5% of
the gross portfolio at end-H109, but this reflected the bank's
policy for managing exposures in arrears, with extended and
restructured loans rising to a high 33% of the portfolio.  Lending
in foreign currencies (mainly US$) remained substantial at 54% of
gross loans.  PB's tier 1 Basel I capital ratio stood at 14.6% at
end-H109, although loss absorption capacity is limited, in Fitch
view, given the modest loan impairment reserve (5% of the loan
book).  A small UAH100m subordinated debt issue (equal to just
7.6% of end-H109 regulatory capital) is expected in H209, but
there are no equity-raising plans at present, which Fitch views
negatively.  The deposit base, which forms the bulk of non-equity
funding, has been quite stable during H109, although highly liquid
assets provided only 12% coverage of customer accounts at end-
H109.

Diamant reported NPLs of 4.2% at end-H109, although extended and
restructured loans comprised a high 24% of the portfolio.
Exposure to the troubled real estate sector (at least 27% of loans
at end-Q109) remains high and related-party lending is substantial
(10% of the portfolio at the same date).  Nevertheless, the
regulatory capital adequacy ratio of 20% at end-H109 provides some
loss absorption capacity.  As of mid-July 2009 Diamant's highly
liquid assets covered only 9% of customer accounts, which is
modest compared to the rapid deposit outflow seen recently; NBU
facilities now account for a high 23% of Diamant's non-equity
funding.  Fitch will in the near future also review the ratings of
Ukrainian state-owned banks, and in September plans to review the
ratings of foreign-owned banks in Ukraine, focusing in particular
on their Individual ratings.

Rating actions:

Industrialbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'D/E' from 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
     Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-'; Outlook
     Negative

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- National Long-term rating: affirmed at 'BBB-(ukr)'; Outlook
     Negative

Pivdennyi Bank

  -- Long-term IDR: affirmed at 'B-'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B-',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Diamant

  -- National Long-term rating: affirmed at 'B+'(ukr)'; Outlook
     Negative


BANK KHRESCHATYK: Fitch Affirms Individual Rating at 'D/E'
----------------------------------------------------------
Fitch Ratings has downgraded Ukrainian Industrialbank's Long-term
Issuer Default Rating to 'CCC' from 'B-'.  The Outlook is
Negative.

At the same time, the agency has affirmed the Long-term IDRs of
PrivatBank at 'B' and Bank Khreschatyk and Pivdennyi Bank at 'B-'.
The National Long-term rating of Bank Diamant is affirmed at
'B+'(ukr)'.  The Outlooks on each of these ratings are Negative.
A full list of rating actions is provided at the end of this
commentary.

Fitch's review of the five private domestically-owned Ukrainian
banks took into account the sharp deterioration in asset quality
metrics during H109, brought about by the depreciation of the UAH
in Q408 and the sharp economic downturn, and the likely further
rise in loan impairment charges.  In common with other banks in
Ukraine, each of the five banks reported a significant increase in
NPLs (loans overdue by more than 90 days) and/or extended and
restructured loans in H109.  This has put considerable pressure on
the banks' capital and, as loss absorption capacity remains
moderate, Fitch believes capital support is likely to be required.
Liquidity remains tight, although deposit outflows have abated in
Q209, both for the sector as a whole and the reviewed banks in
particular (with the exception of INB), after significant leakage
in Q408-Q109.  Near-term refinancing risks are modest at each of
the reviewed banks.

The sharp deterioration in asset quality at INB, combined with its
high level of related-party exposures, has resulted in the
downgrade of its IDR.  However, the deterioration in the credit
profiles of other rated banks to date remains consistent with
their relatively low rating levels and Negative Outlooks.
Nevertheless, continued marked deterioration in asset quality
metrics, if combined with insufficient replenishment of capital,
could still lead to downgrades of these banks in the future.

INB's reported level of NPLs rose to 7.2% of the loan book at end-
H109 from 2.5% at end-2008, with exposures overdue for at least
one day almost doubling to 21.1%.  In addition, a high 51% of the
portfolio was represented by restructured and extended loans.
Fitch also believes related-party lending may be considerable,
although the limited information about shareholders' other
business interests makes it difficult to assess accurately the
level of such transactions.  Foreign currency lending was a
substantial 51% of the loan portfolio at end-H109.  INB's loan
impairment reserves (9% of the loan book at end-H109) and
capitalization (regulatory capital adequacy ratio was 16.8% at
end-H109) provide material loss absorption capacity, but this is
still considered moderate given the extent of asset quality
deterioration.  INB's liquidity position is undermined by the
significant concentration of customer accounts, with the top 20
depositors accounting for 42% of the bank's total liabilities at
end-H109.  Customer funding has proved to be rather volatile,
having contracted by 18% in H109, mainly due to a decrease in the
balances of a single related-party depositor.  Highly liquid
assets (defined as cash, balances with the NBU net of obligatory
reserves, net short-term interbank assets and unpledged securities
eligible for refinancing with the NBU) were equal to 17% of
customer accounts at end-H109.

The affirmation of Privat's IDRs reflect the bank's so far
manageable levels of reported loan impairment, better-than-average
(for the Ukrainian market) risk management system and controls,
higher loan loss absorption capacity (compared to most Ukrainian
peers) and limited refinancing risks.  The ratings are also
supported by the bank's broad domestic franchise, sizeable market
shares and the potential for further liquidity support from the
National Bank of Ukraine (NBU) in case of need.  Capital support
from shareholders is also possible, but cannot be relied upon
given the lack of transparency regarding the owners' finances.

However, Privat's ratings also consider the increase in both
reported NPLs (8.8% of unconsolidated end-5M09 loans) and
extended/restructured loans (8.5%); the significant, albeit
reduced, proportion of foreign currency lending (36%); and
considerable loan concentrations.  Fitch estimates that Privat
could have increased the loan impairment reserve (LIR)/gross loans
ratio to 17.4% at end-H109, from the actual level of 15.5%
(unconsolidated) before the regulatory capital ratio would have
fallen to the minimum level of 10%.  A further equity injection
may be considered for H209, although no plans have been confirmed
yet.  The deterioration of asset quality and significant
likelihood that further capital injections will be required have
resulted in the Individual rating being downgraded to 'D/E' from
'D'.  Privat's liquidity position is supported by borrowings from
the NBU, which represented 11% of liabilities at end-H109.  At the
same date, highly liquid assets were equal to 14% of total assets
or 23% of customer accounts.  Near-term repayments of foreign
borrowings (mainly trade finance facilities and amortization of
outstanding securitisations) are moderate, with the bank's US$500m
eurobond not maturing until 2012.

Khreschatyk's reported NPLs were only 2% of gross loans at end-May
2009, but extended and restructured loans were high at 48%.  Fitch
notes, however, that Khreschatyk's asset quality benefits from a
moderate -- by Ukrainian standards -- level of foreign currency
lending (18% end-H109), limited exposure to unsecured retail
lending (less than 1%) and participation in lower-risk government
and municipal lending programmes (12%).  An exposure to the City
of Kyiv ('B'/Negative), funded by the NBU, accounts for a further
12% of the portfolio.  The LIR/loans ratio of 1.6% and regulatory
capital ratio of 15.9% at end-H109 offer only limited loss
absorption capacity, in Fitch's view, and this will only
strengthen marginally as a result of planned subordinated debt and
equity contributions (in total equal to 14% of end-H109 regulatory
capital) in H209.  Liquidity is tight, with highly liquid assets
amounting to only 10% of customer funds at end-H109.

PB's reported non-performing loans comprised a still low 2.5% of
the gross portfolio at end-H109, but this reflected the bank's
policy for managing exposures in arrears, with extended and
restructured loans rising to a high 33% of the portfolio.  Lending
in foreign currencies (mainly US$) remained substantial at 54% of
gross loans.  PB's tier 1 Basel I capital ratio stood at 14.6% at
end-H109, although loss absorption capacity is limited, in Fitch
view, given the modest loan impairment reserve (5% of the loan
book).  A small UAH100m subordinated debt issue (equal to just
7.6% of end-H109 regulatory capital) is expected in H209, but
there are no equity-raising plans at present, which Fitch views
negatively.  The deposit base, which forms the bulk of non-equity
funding, has been quite stable during H109, although highly liquid
assets provided only 12% coverage of customer accounts at end-
H109.

Diamant reported NPLs of 4.2% at end-H109, although extended and
restructured loans comprised a high 24% of the portfolio.
Exposure to the troubled real estate sector (at least 27% of loans
at end-Q109) remains high and related-party lending is substantial
(10% of the portfolio at the same date).  Nevertheless, the
regulatory capital adequacy ratio of 20% at end-H109 provides some
loss absorption capacity.  As of mid-July 2009 Diamant's highly
liquid assets covered only 9% of customer accounts, which is
modest compared to the rapid deposit outflow seen recently; NBU
facilities now account for a high 23% of Diamant's non-equity
funding.  Fitch will in the near future also review the ratings of
Ukrainian state-owned banks, and in September plans to review the
ratings of foreign-owned banks in Ukraine, focusing in particular
on their Individual ratings.

Rating actions:

Industrialbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'D/E' from 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
     Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-'; Outlook
     Negative

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- National Long-term rating: affirmed at 'BBB-(ukr)'; Outlook
     Negative

Pivdennyi Bank

  -- Long-term IDR: affirmed at 'B-'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B-',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Diamant

  -- National Long-term rating: affirmed at 'B+'(ukr)'; Outlook
     Negative


CITYINVESTBUD LLC: Creditors Must File Claims by August 13
----------------------------------------------------------
Creditors of LLC CityInvestbud (code EDRPOU 35745210) have until
August 13, 2009, to submit proofs of claim to:

         LLC Masterplan
         Melnikov Str. 12
         04050 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 8, 2009.  The case is docketed under
Case No. 15/297-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC CityInvestbud
         Tchapayev Str. 10
         01030 Kiev
         Ukraine


INDUSTRIALBANK: Fitch Junks Long-Term Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has downgraded Ukrainian Industrialbank's Long-term
Issuer Default Rating to 'CCC' from 'B-'.  The Outlook is
Negative.

At the same time, the agency has affirmed the Long-term IDRs of
PrivatBank at 'B' and Bank Khreschatyk and Pivdennyi Bank at 'B-'.
The National Long-term rating of Bank Diamant is affirmed at
'B+'(ukr)'.  The Outlooks on each of these ratings are Negative.
A full list of rating actions is provided at the end of this
commentary.

Fitch's review of the five private domestically-owned Ukrainian
banks took into account the sharp deterioration in asset quality
metrics during H109, brought about by the depreciation of the UAH
in Q408 and the sharp economic downturn, and the likely further
rise in loan impairment charges.  In common with other banks in
Ukraine, each of the five banks reported a significant increase in
NPLs (loans overdue by more than 90 days) and/or extended and
restructured loans in H109.  This has put considerable pressure on
the banks' capital and, as loss absorption capacity remains
moderate, Fitch believes capital support is likely to be required.
Liquidity remains tight, although deposit outflows have abated in
Q209, both for the sector as a whole and the reviewed banks in
particular (with the exception of INB), after significant leakage
in Q408-Q109.  Near-term refinancing risks are modest at each of
the reviewed banks.

The sharp deterioration in asset quality at INB, combined with its
high level of related-party exposures, has resulted in the
downgrade of its IDR.  However, the deterioration in the credit
profiles of other rated banks to date remains consistent with
their relatively low rating levels and Negative Outlooks.
Nevertheless, continued marked deterioration in asset quality
metrics, if combined with insufficient replenishment of capital,
could still lead to downgrades of these banks in the future.

INB's reported level of NPLs rose to 7.2% of the loan book at end-
H109 from 2.5% at end-2008, with exposures overdue for at least
one day almost doubling to 21.1%.  In addition, a high 51% of the
portfolio was represented by restructured and extended loans.
Fitch also believes related-party lending may be considerable,
although the limited information about shareholders' other
business interests makes it difficult to assess accurately the
level of such transactions.  Foreign currency lending was a
substantial 51% of the loan portfolio at end-H109.  INB's loan
impairment reserves (9% of the loan book at end-H109) and
capitalization (regulatory capital adequacy ratio was 16.8% at
end-H109) provide material loss absorption capacity, but this is
still considered moderate given the extent of asset quality
deterioration.  INB's liquidity position is undermined by the
significant concentration of customer accounts, with the top 20
depositors accounting for 42% of the bank's total liabilities at
end-H109.  Customer funding has proved to be rather volatile,
having contracted by 18% in H109, mainly due to a decrease in the
balances of a single related-party depositor.  Highly liquid
assets (defined as cash, balances with the NBU net of obligatory
reserves, net short-term interbank assets and unpledged securities
eligible for refinancing with the NBU) were equal to 17% of
customer accounts at end-H109.

The affirmation of Privat's IDRs reflect the bank's so far
manageable levels of reported loan impairment, better-than-average
(for the Ukrainian market) risk management system and controls,
higher loan loss absorption capacity (compared to most Ukrainian
peers) and limited refinancing risks.  The ratings are also
supported by the bank's broad domestic franchise, sizeable market
shares and the potential for further liquidity support from the
National Bank of Ukraine (NBU) in case of need.  Capital support
from shareholders is also possible, but cannot be relied upon
given the lack of transparency regarding the owners' finances.

However, Privat's ratings also consider the increase in both
reported NPLs (8.8% of unconsolidated end-5M09 loans) and
extended/restructured loans (8.5%); the significant, albeit
reduced, proportion of foreign currency lending (36%); and
considerable loan concentrations.  Fitch estimates that Privat
could have increased the loan impairment reserve (LIR)/gross loans
ratio to 17.4% at end-H109, from the actual level of 15.5%
(unconsolidated) before the regulatory capital ratio would have
fallen to the minimum level of 10%.  A further equity injection
may be considered for H209, although no plans have been confirmed
yet.  The deterioration of asset quality and significant
likelihood that further capital injections will be required have
resulted in the Individual rating being downgraded to 'D/E' from
'D'.  Privat's liquidity position is supported by borrowings from
the NBU, which represented 11% of liabilities at end-H109.  At the
same date, highly liquid assets were equal to 14% of total assets
or 23% of customer accounts.  Near-term repayments of foreign
borrowings (mainly trade finance facilities and amortization of
outstanding securitisations) are moderate, with the bank's US$500m
eurobond not maturing until 2012.

Khreschatyk's reported NPLs were only 2% of gross loans at end-May
2009, but extended and restructured loans were high at 48%.  Fitch
notes, however, that Khreschatyk's asset quality benefits from a
moderate -- by Ukrainian standards -- level of foreign currency
lending (18% end-H109), limited exposure to unsecured retail
lending (less than 1%) and participation in lower-risk government
and municipal lending programmes (12%).  An exposure to the City
of Kyiv ('B'/Negative), funded by the NBU, accounts for a further
12% of the portfolio.  The LIR/loans ratio of 1.6% and regulatory
capital ratio of 15.9% at end-H109 offer only limited loss
absorption capacity, in Fitch's view, and this will only
strengthen marginally as a result of planned subordinated debt and
equity contributions (in total equal to 14% of end-H109 regulatory
capital) in H209.  Liquidity is tight, with highly liquid assets
amounting to only 10% of customer funds at end-H109.

PB's reported non-performing loans comprised a still low 2.5% of
the gross portfolio at end-H109, but this reflected the bank's
policy for managing exposures in arrears, with extended and
restructured loans rising to a high 33% of the portfolio.  Lending
in foreign currencies (mainly US$) remained substantial at 54% of
gross loans.  PB's tier 1 Basel I capital ratio stood at 14.6% at
end-H109, although loss absorption capacity is limited, in Fitch
view, given the modest loan impairment reserve (5% of the loan
book).  A small UAH100m subordinated debt issue (equal to just
7.6% of end-H109 regulatory capital) is expected in H209, but
there are no equity-raising plans at present, which Fitch views
negatively.  The deposit base, which forms the bulk of non-equity
funding, has been quite stable during H109, although highly liquid
assets provided only 12% coverage of customer accounts at end-
H109.

Diamant reported NPLs of 4.2% at end-H109, although extended and
restructured loans comprised a high 24% of the portfolio.
Exposure to the troubled real estate sector (at least 27% of loans
at end-Q109) remains high and related-party lending is substantial
(10% of the portfolio at the same date).  Nevertheless, the
regulatory capital adequacy ratio of 20% at end-H109 provides some
loss absorption capacity.  As of mid-July 2009 Diamant's highly
liquid assets covered only 9% of customer accounts, which is
modest compared to the rapid deposit outflow seen recently; NBU
facilities now account for a high 23% of Diamant's non-equity
funding.  Fitch will in the near future also review the ratings of
Ukrainian state-owned banks, and in September plans to review the
ratings of foreign-owned banks in Ukraine, focusing in particular
on their Individual ratings.

Rating actions:

Industrialbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'D/E' from 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
     Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-'; Outlook
     Negative

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- National Long-term rating: affirmed at 'BBB-(ukr)'; Outlook
     Negative

Pivdennyi Bank

  -- Long-term IDR: affirmed at 'B-'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B-',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Diamant

  -- National Long-term rating: affirmed at 'B+'(ukr)'; Outlook
     Negative


PIVDENNYI BANK: Fitch Affirms Individual Rating at 'D/E'
--------------------------------------------------------
Fitch Ratings has downgraded Ukrainian Industrialbank's Long-term
Issuer Default Rating to 'CCC' from 'B-'.  The Outlook is
Negative.

At the same time, the agency has affirmed the Long-term IDRs of
PrivatBank at 'B' and Bank Khreschatyk and Pivdennyi Bank at 'B-'.
The National Long-term rating of Bank Diamant is affirmed at
'B+'(ukr)'.  The Outlooks on each of these ratings are Negative.
A full list of rating actions is provided at the end of this
commentary.

Fitch's review of the five private domestically-owned Ukrainian
banks took into account the sharp deterioration in asset quality
metrics during H109, brought about by the depreciation of the UAH
in Q408 and the sharp economic downturn, and the likely further
rise in loan impairment charges.  In common with other banks in
Ukraine, each of the five banks reported a significant increase in
NPLs (loans overdue by more than 90 days) and/or extended and
restructured loans in H109.  This has put considerable pressure on
the banks' capital and, as loss absorption capacity remains
moderate, Fitch believes capital support is likely to be required.
Liquidity remains tight, although deposit outflows have abated in
Q209, both for the sector as a whole and the reviewed banks in
particular (with the exception of INB), after significant leakage
in Q408-Q109.  Near-term refinancing risks are modest at each of
the reviewed banks.

The sharp deterioration in asset quality at INB, combined with its
high level of related-party exposures, has resulted in the
downgrade of its IDR.  However, the deterioration in the credit
profiles of other rated banks to date remains consistent with
their relatively low rating levels and Negative Outlooks.
Nevertheless, continued marked deterioration in asset quality
metrics, if combined with insufficient replenishment of capital,
could still lead to downgrades of these banks in the future.

INB's reported level of NPLs rose to 7.2% of the loan book at end-
H109 from 2.5% at end-2008, with exposures overdue for at least
one day almost doubling to 21.1%.  In addition, a high 51% of the
portfolio was represented by restructured and extended loans.
Fitch also believes related-party lending may be considerable,
although the limited information about shareholders' other
business interests makes it difficult to assess accurately the
level of such transactions.  Foreign currency lending was a
substantial 51% of the loan portfolio at end-H109.  INB's loan
impairment reserves (9% of the loan book at end-H109) and
capitalization (regulatory capital adequacy ratio was 16.8% at
end-H109) provide material loss absorption capacity, but this is
still considered moderate given the extent of asset quality
deterioration.  INB's liquidity position is undermined by the
significant concentration of customer accounts, with the top 20
depositors accounting for 42% of the bank's total liabilities at
end-H109.  Customer funding has proved to be rather volatile,
having contracted by 18% in H109, mainly due to a decrease in the
balances of a single related-party depositor.  Highly liquid
assets (defined as cash, balances with the NBU net of obligatory
reserves, net short-term interbank assets and unpledged securities
eligible for refinancing with the NBU) were equal to 17% of
customer accounts at end-H109.

The affirmation of Privat's IDRs reflect the bank's so far
manageable levels of reported loan impairment, better-than-average
(for the Ukrainian market) risk management system and controls,
higher loan loss absorption capacity (compared to most Ukrainian
peers) and limited refinancing risks.  The ratings are also
supported by the bank's broad domestic franchise, sizeable market
shares and the potential for further liquidity support from the
National Bank of Ukraine (NBU) in case of need.  Capital support
from shareholders is also possible, but cannot be relied upon
given the lack of transparency regarding the owners' finances.

However, Privat's ratings also consider the increase in both
reported NPLs (8.8% of unconsolidated end-5M09 loans) and
extended/restructured loans (8.5%); the significant, albeit
reduced, proportion of foreign currency lending (36%); and
considerable loan concentrations.  Fitch estimates that Privat
could have increased the loan impairment reserve (LIR)/gross loans
ratio to 17.4% at end-H109, from the actual level of 15.5%
(unconsolidated) before the regulatory capital ratio would have
fallen to the minimum level of 10%.  A further equity injection
may be considered for H209, although no plans have been confirmed
yet.  The deterioration of asset quality and significant
likelihood that further capital injections will be required have
resulted in the Individual rating being downgraded to 'D/E' from
'D'.  Privat's liquidity position is supported by borrowings from
the NBU, which represented 11% of liabilities at end-H109.  At the
same date, highly liquid assets were equal to 14% of total assets
or 23% of customer accounts.  Near-term repayments of foreign
borrowings (mainly trade finance facilities and amortization of
outstanding securitisations) are moderate, with the bank's US$500m
eurobond not maturing until 2012.

Khreschatyk's reported NPLs were only 2% of gross loans at end-May
2009, but extended and restructured loans were high at 48%.  Fitch
notes, however, that Khreschatyk's asset quality benefits from a
moderate -- by Ukrainian standards -- level of foreign currency
lending (18% end-H109), limited exposure to unsecured retail
lending (less than 1%) and participation in lower-risk government
and municipal lending programmes (12%).  An exposure to the City
of Kyiv ('B'/Negative), funded by the NBU, accounts for a further
12% of the portfolio.  The LIR/loans ratio of 1.6% and regulatory
capital ratio of 15.9% at end-H109 offer only limited loss
absorption capacity, in Fitch's view, and this will only
strengthen marginally as a result of planned subordinated debt and
equity contributions (in total equal to 14% of end-H109 regulatory
capital) in H209.  Liquidity is tight, with highly liquid assets
amounting to only 10% of customer funds at end-H109.

PB's reported non-performing loans comprised a still low 2.5% of
the gross portfolio at end-H109, but this reflected the bank's
policy for managing exposures in arrears, with extended and
restructured loans rising to a high 33% of the portfolio.  Lending
in foreign currencies (mainly US$) remained substantial at 54% of
gross loans.  PB's tier 1 Basel I capital ratio stood at 14.6% at
end-H109, although loss absorption capacity is limited, in Fitch
view, given the modest loan impairment reserve (5% of the loan
book).  A small UAH100m subordinated debt issue (equal to just
7.6% of end-H109 regulatory capital) is expected in H209, but
there are no equity-raising plans at present, which Fitch views
negatively.  The deposit base, which forms the bulk of non-equity
funding, has been quite stable during H109, although highly liquid
assets provided only 12% coverage of customer accounts at end-
H109.

Diamant reported NPLs of 4.2% at end-H109, although extended and
restructured loans comprised a high 24% of the portfolio.
Exposure to the troubled real estate sector (at least 27% of loans
at end-Q109) remains high and related-party lending is substantial
(10% of the portfolio at the same date).  Nevertheless, the
regulatory capital adequacy ratio of 20% at end-H109 provides some
loss absorption capacity.  As of mid-July 2009 Diamant's highly
liquid assets covered only 9% of customer accounts, which is
modest compared to the rapid deposit outflow seen recently; NBU
facilities now account for a high 23% of Diamant's non-equity
funding.  Fitch will in the near future also review the ratings of
Ukrainian state-owned banks, and in September plans to review the
ratings of foreign-owned banks in Ukraine, focusing in particular
on their Individual ratings.

Rating actions:

Industrialbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'D/E' from 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
     Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-'; Outlook
     Negative

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- National Long-term rating: affirmed at 'BBB-(ukr)'; Outlook
     Negative

Pivdennyi Bank

  -- Long-term IDR: affirmed at 'B-'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B-',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Diamant

  -- National Long-term rating: affirmed at 'B+'(ukr)'; Outlook
     Negative


PRIVATBANK CJSC: Fitch Downgrades Individual Rating to 'D/E'
------------------------------------------------------------
Fitch Ratings has downgraded Ukrainian Industrialbank's Long-term
Issuer Default Rating to 'CCC' from 'B-'.  The Outlook is
Negative.

At the same time, the agency has affirmed the Long-term IDRs of
PrivatBank at 'B' and Bank Khreschatyk and Pivdennyi Bank at 'B-'.
The National Long-term rating of Bank Diamant is affirmed at
'B+'(ukr)'.  The Outlooks on each of these ratings are Negative.
A full list of rating actions is provided at the end of this
commentary.

Fitch's review of the five private domestically-owned Ukrainian
banks took into account the sharp deterioration in asset quality
metrics during H109, brought about by the depreciation of the UAH
in Q408 and the sharp economic downturn, and the likely further
rise in loan impairment charges.  In common with other banks in
Ukraine, each of the five banks reported a significant increase in
NPLs (loans overdue by more than 90 days) and/or extended and
restructured loans in H109.  This has put considerable pressure on
the banks' capital and, as loss absorption capacity remains
moderate, Fitch believes capital support is likely to be required.
Liquidity remains tight, although deposit outflows have abated in
Q209, both for the sector as a whole and the reviewed banks in
particular (with the exception of INB), after significant leakage
in Q408-Q109.  Near-term refinancing risks are modest at each of
the reviewed banks.

The sharp deterioration in asset quality at INB, combined with its
high level of related-party exposures, has resulted in the
downgrade of its IDR.  However, the deterioration in the credit
profiles of other rated banks to date remains consistent with
their relatively low rating levels and Negative Outlooks.
Nevertheless, continued marked deterioration in asset quality
metrics, if combined with insufficient replenishment of capital,
could still lead to downgrades of these banks in the future.

INB's reported level of NPLs rose to 7.2% of the loan book at end-
H109 from 2.5% at end-2008, with exposures overdue for at least
one day almost doubling to 21.1%.  In addition, a high 51% of the
portfolio was represented by restructured and extended loans.
Fitch also believes related-party lending may be considerable,
although the limited information about shareholders' other
business interests makes it difficult to assess accurately the
level of such transactions.  Foreign currency lending was a
substantial 51% of the loan portfolio at end-H109.  INB's loan
impairment reserves (9% of the loan book at end-H109) and
capitalization (regulatory capital adequacy ratio was 16.8% at
end-H109) provide material loss absorption capacity, but this is
still considered moderate given the extent of asset quality
deterioration.  INB's liquidity position is undermined by the
significant concentration of customer accounts, with the top 20
depositors accounting for 42% of the bank's total liabilities at
end-H109.  Customer funding has proved to be rather volatile,
having contracted by 18% in H109, mainly due to a decrease in the
balances of a single related-party depositor.  Highly liquid
assets (defined as cash, balances with the NBU net of obligatory
reserves, net short-term interbank assets and unpledged securities
eligible for refinancing with the NBU) were equal to 17% of
customer accounts at end-H109.

The affirmation of Privat's IDRs reflect the bank's so far
manageable levels of reported loan impairment, better-than-average
(for the Ukrainian market) risk management system and controls,
higher loan loss absorption capacity (compared to most Ukrainian
peers) and limited refinancing risks.  The ratings are also
supported by the bank's broad domestic franchise, sizeable market
shares and the potential for further liquidity support from the
National Bank of Ukraine (NBU) in case of need.  Capital support
from shareholders is also possible, but cannot be relied upon
given the lack of transparency regarding the owners' finances.

However, Privat's ratings also consider the increase in both
reported NPLs (8.8% of unconsolidated end-5M09 loans) and
extended/restructured loans (8.5%); the significant, albeit
reduced, proportion of foreign currency lending (36%); and
considerable loan concentrations.  Fitch estimates that Privat
could have increased the loan impairment reserve (LIR)/gross loans
ratio to 17.4% at end-H109, from the actual level of 15.5%
(unconsolidated) before the regulatory capital ratio would have
fallen to the minimum level of 10%.  A further equity injection
may be considered for H209, although no plans have been confirmed
yet.  The deterioration of asset quality and significant
likelihood that further capital injections will be required have
resulted in the Individual rating being downgraded to 'D/E' from
'D'.  Privat's liquidity position is supported by borrowings from
the NBU, which represented 11% of liabilities at end-H109.  At the
same date, highly liquid assets were equal to 14% of total assets
or 23% of customer accounts.  Near-term repayments of foreign
borrowings (mainly trade finance facilities and amortization of
outstanding securitisations) are moderate, with the bank's US$500m
eurobond not maturing until 2012.

Khreschatyk's reported NPLs were only 2% of gross loans at end-May
2009, but extended and restructured loans were high at 48%.  Fitch
notes, however, that Khreschatyk's asset quality benefits from a
moderate -- by Ukrainian standards -- level of foreign currency
lending (18% end-H109), limited exposure to unsecured retail
lending (less than 1%) and participation in lower-risk government
and municipal lending programmes (12%).  An exposure to the City
of Kyiv ('B'/Negative), funded by the NBU, accounts for a further
12% of the portfolio.  The LIR/loans ratio of 1.6% and regulatory
capital ratio of 15.9% at end-H109 offer only limited loss
absorption capacity, in Fitch's view, and this will only
strengthen marginally as a result of planned subordinated debt and
equity contributions (in total equal to 14% of end-H109 regulatory
capital) in H209.  Liquidity is tight, with highly liquid assets
amounting to only 10% of customer funds at end-H109.

PB's reported non-performing loans comprised a still low 2.5% of
the gross portfolio at end-H109, but this reflected the bank's
policy for managing exposures in arrears, with extended and
restructured loans rising to a high 33% of the portfolio.  Lending
in foreign currencies (mainly US$) remained substantial at 54% of
gross loans.  PB's tier 1 Basel I capital ratio stood at 14.6% at
end-H109, although loss absorption capacity is limited, in Fitch
view, given the modest loan impairment reserve (5% of the loan
book).  A small UAH100m subordinated debt issue (equal to just
7.6% of end-H109 regulatory capital) is expected in H209, but
there are no equity-raising plans at present, which Fitch views
negatively.  The deposit base, which forms the bulk of non-equity
funding, has been quite stable during H109, although highly liquid
assets provided only 12% coverage of customer accounts at end-
H109.

Diamant reported NPLs of 4.2% at end-H109, although extended and
restructured loans comprised a high 24% of the portfolio.
Exposure to the troubled real estate sector (at least 27% of loans
at end-Q109) remains high and related-party lending is substantial
(10% of the portfolio at the same date).  Nevertheless, the
regulatory capital adequacy ratio of 20% at end-H109 provides some
loss absorption capacity.  As of mid-July 2009 Diamant's highly
liquid assets covered only 9% of customer accounts, which is
modest compared to the rapid deposit outflow seen recently; NBU
facilities now account for a high 23% of Diamant's non-equity
funding.  Fitch will in the near future also review the ratings of
Ukrainian state-owned banks, and in September plans to review the
ratings of foreign-owned banks in Ukraine, focusing in particular
on their Individual ratings.

Rating actions:

Industrialbank

  -- Long-term IDR: downgraded to 'CCC' from 'B-'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'C' from 'B'

  -- Individual rating: downgraded to 'E' from 'D/E'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

CJSC Privatbank

  -- Long-term IDR: affirmed at 'B'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

  -- Individual rating: downgraded to 'D/E' from 'D'

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Khreschatyk

  -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
     Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Long-term local currency IDR: affirmed at 'B-'; Outlook
     Negative

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- National Long-term rating: affirmed at 'BBB-(ukr)'; Outlook
     Negative

Pivdennyi Bank

  -- Long-term IDR: affirmed at 'B-'; Outlook Negative

  -- Senior unsecured debt: Long-term rating affirmed at 'B-',
     Recovery Rating at 'RR4'

  -- Short-term IDR: affirmed at 'B'

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

  -- Support rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

Bank Diamant

  -- National Long-term rating: affirmed at 'B+'(ukr)'; Outlook
     Negative


SATURN EXPRESS: Creditors Must File Claims by August 13
-------------------------------------------------------
Creditors of LLC Saturn Express (code EDRPOU 33106069) have until
August 13, 2009, to submit proofs of claim to:

         LLC Masterplan
         Melnikov Str. 12
         04050 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 8, 2009.  The case is docketed under
Case No. 15/309-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Saturn Express
         Predslavinskaya Str. 34-b
         03150 Kiev
         Ukraine


ZARINA LLC: Creditors Must File Claims by August 13
---------------------------------------------------
Creditors of LLC Jewellery House Zarina (code EDRPOU 32984161)
have until August 13, 2009, to submit proofs of claim to:

         LLC Masterplan
         Melnikov Str. 12
         04050 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 8, 2009.  The case is docketed under
Case No. 15/308-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Jewellery House Zarina
         Sportivnaya Square 3
         01601 Kiev
         Ukraine


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


BIDDENCARE LIMITED: Creditors Have Until October 7 to Prove Debts
-----------------------------------------------------------------
Joint Liquidators P.A.B. Evans and D.Y. Schwarzmann of Biddencare
Limited give notice that the Company acting by its Joint
Liquidators, intends to distribute assets held by the Company
among persons appearing to the Joint Liqudators to be entitled to
them.

Any person interested in the assets of the Company are required to
provide particulars of his claim in respect of the assets or any
part thereof by October 7, 2009, to the extent only that they have
not done so already or receipt of such claim has not been
acknowledged by the Joint Liquidators.

Creditors failing to prove their debts or claims by October 7,
2009, will  be excluded from the benefit of any distribution made
before that debt or claim is proved.

The Joint Liquidators also give notice that they are unable to
declare any dividend to creditors because any funds that have been
realized and held by the Company are not assets of the Company.

Particulars of any claim or proofs of debt or claim should be sent
to:

     P.A.B. Evans and D.Y. Schwarzmann
     Joint Liquidators of Biddencare Limited c/o PwC LLP
     Plumtree Court
     London EC4a 4HT

Plumtree Court, London-based Biddencare Limited is a private
limited company.


BRECKLAND TECHNOLOGY: Administrators Selling Business and Assets
----------------------------------------------------------------
The joint administrators of Breckland Technology Ltd offer for
sale the business and assets of the Company.  The assets of the
Company include:

   -- 3 cars complete or almost complete;

   -- 8 cars in various stages of completion; and

   -- various plant and machinery.

The Company employs a skilled workforce of 10.  For further
information, please contact:

     Adrian Sage
     email: adriansage@mw-w.com
     McTear Williams & Wood
     19 Silent Street
     Ipswich IPI ITF
     Tel: 01473 384923
     Fax: 01473 218081

Based in Dereham, Norfolk, UK, Breckland Technology Ltd develops
specialist low volume vehicles for the UK and European market.


BRITISH AIRWAYS: Unions Want to Talk with Senior Representatives
----------------------------------------------------------------
David Robertson at The Times reports that unions representing
employees of British Airways plc want the airline to use managers
with more seniority to negotiate proposed pay cuts and contract
changes.

According to the report, Unite, which represents 28,000 BA
workers, regards the airline's negotiating team as having
insufficient power to agree on a deal.  The report says rumors
have emerged suggesting that Willie Walsh, BA's chief executive,
will personally take over negotiations.

The report relates a cooling-off period between BA and its unions
ended yesterday after a failure to agree terms for proposed cost-
cutting last month.  The two sides will not meet until later this
month because Mr. Walsh and leading union officials are away on
their holidays, the report states.

On July 8, 2009, the Troubled Company Reporter-Europe, citing BBC
News, reported that BA's cabin crew workers rejected the airline's
proposals to reduce costs by cutting jobs and freezing pay.  The
workers instead backed a union plan, which officials said could
save between GBP100 million and GBP130 million.  Unite said it was
prepared to consider a two-year freeze on pay.  BA, which seeks to
cut costs after reporting a record annual loss of GBP401 million
in May, had set a deadline of June 30 to reach a deal on about
3,500 job cuts, a pay freeze and other changes, but no agreement
was made.

                       About British Airways

Headquartered in Harmondsworth, England, British Airways Plc
(LON:BAY) -- http://www.ba.com/-- is engaged in the operation of
international and domestic scheduled air services for the carriage
of passengers, freight and mail, and the provision of ancillary
services.  The Company's principal place of business is Heathrow.
The Company also operates a worldwide air cargo business with its
scheduled passenger services.  The Company operates international
scheduled airline route networks, comprising some 300 destinations
at March 31, 2008.  During the fiscal year ended March 31, 2008
(fiscal 2008), British Airways carried more than 33 million
passengers.  It carried 805,000 tons of cargo to destinations in
Europe, the Americas and worldwide.  At March 31, 2008, it had 245
aircraft in service.  In July 2008, British Airways plc completed
the purchase of French airline L'Avion.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on July 13,
2009, Moody's lowered the Corporate Family and Probability of
Default Ratings of British Airways plc to Ba3; the senior
unsecured and subordinate ratings have been lowered to B1 and B2,
respectively.  Moody's said the outlook is stable.


DX GROUP: Candover Partners Mulls Cash Injection
------------------------------------------------
Anousha Sakoui and Martin Arnold at The Financial Times reports
that Candover Partners is considering plans to inject fresh
funding to support its investment in UK postal services company DX
Group, which it acquired two years ago for GBP347 million.

According to the FT, led by John Coghlan, chief executive, DX,
which now faces declining volumes with the collapse in house sales
and credit card issuance, started negotiations last month with the
shareholder and holders of about GBP240 million of senior and more
junior debt over a potential restructuring plan.

The FT recalls DX, advised by Blackstone, tabled a proposal in
June that involves GBP20 million in new funds to be provided by
Candover, for which it would keep a majority equity stake.  The
money, the FT says, would be used to repurchase debt across the
capital structure, at about 50% of face value for the senior debt
and 10% of face value for the mezzanine debt.

Citing people familiar with the situation, the FT discloses talks
are focused on agreeing terms on which mezzanine and potentially
second lien creditors, who rank ahead of them but behind senior
creditors, swap debt claims for an equity stake.

DX -- http://www.thedx.co.uk-- offers private business-to-
business mail services, including collection, sorting, and last-
mile delivery, for about 27,000 member companies in the UK and
Ireland.  It also delivers small packages and provides bulk mail
services, delivering more than 1 million items each day.


FOCUS DIY: Enters Into Voluntary Arrangement Deal with Landlords
----------------------------------------------------------------
Samantha Pearson at The Financial Times reports that Focus DIY
Ltd. has entered into company voluntary arrangement with its
landlords to secure its future.

The FT discloses that, under the terms of the CVA, which was
arranged by BDO Stoy Hayward, Focus plans to shed the leases
on its 38 closed stores and offer landlords a share of a
GBP3.7 million compensation fund in return, saving the group
GBP8.6 million.  The company, the FT says, is also asking the
landlords of its 180 open stores to accept monthly rather than
quarterly rent payments until 2011.

According to the FT, if the CVA is successful, Focus's lenders,
HBOS and GMAC, will grant a two-year extension to the company's
GBP50 million revolving credit facility, which is due to expire at
the end of this year.  If the CVA fails, the company said it was
likely to fall into administration, the FT notes.

Headquartered in Crewe, Focus (DIY) Limited --
http://www.focusdiy.co.uk-- markets a range of products for do-
it-yourselfers engaged in light home improvement and gardening
projects, including power tools, hardware, appliances, decking and
flooring, contemporary home and patio furniture, garden buildings,
and plants and seeds.  Focus sells its merchandise through about
180 stores in the UK and Ireland, as well as through its Web site.
The site also offers guides, price lists, and calculators for DIY
projects.  The company is owned by US investment firm Cerberus
Capital Management.


INDUSTRIOUS GROUP: Max Buys Warehouse Portfolio for GBP245.4 Mln
----------------------------------------------------------------
Graham Ruddick at Telegraph.co.uk reports that Max Property has
acquired a distressed warehouse portfolio for GBP245.4 million.

According to Telegraph.co.uk, Max Property will acquire 86
properties with more than 800 tenants from Ernst & Young, the
receivers for the Industrious Group, a fund managed by privately
owned Dunedin Property which collapsed last year.  The Industrious
portfolio deal will be backed by a GBP128.3 million five-year
facility with the European bank Eurohypo, Telegraph.co.uk notes.

Telegraph.co.uk discloses properties are, by value, 46pc in London
and the South East, with a rental income of around GBP22.7 million
after empty rates and costs.  Max Property, as cited by
Telegraph.co.uk, said it believes the fully let rental value is
GBP32.5 million.

David Blackwell at The Financial Times reports the acquisition is
expected to be completed on October 7.   Max Property, the FT
says, will focus on filling the empty space and stabilizing the
rents.

"As a result of the receivership the portfolio has suffered
considerably from under-investment for some time now," Reuters
quoted Max Property chairman Aubrey Adams as saying.  "We must
focus firstly on stabilizing rents and then increasing them in the
medium term, which will afford us many opportunities to
significantly enhance capital values over the next three to five
years."


KEYDATA INVESTMENT: Serious Fraud Office Opens Probe
----------------------------------------------------
Lindsay Fortado at Bloomberg News reports that the U.K. Serious
Fraud Office opened an investigation into insolvent Keydata
Investment Services Ltd.

Boomberg relates spokeswoman Jina Roe said Tuesday the government
agency, which is working with the U.K. Financial Services
Authority on the probe, opened the investigation into Keydata on
July 16.

Ms. Roe declined to comment on the scope of the investigation.

According to Bloomberg, Keydata had GBP2.8 billion of assets under
management when the FSA forced it into insolvency in June.
Citing its administrators, PricewaterhouseCoopers LLP, Bloomberg
discloses about 29,000 people who bought certain Keydata
structured products may be affected by its insolvency.

Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers LLP were
appointed joint administrators of KIS on June 8, 2009.  The
appointment was made based on an application to court by the FSA
on insolvency grounds.

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


LEHMAN BROTHERS: Wants Nov. 2 Bar Date for Cross-Border Parties
---------------------------------------------------------------
KPMG China said August 4 that representatives of the Lehman
Brothers Group of Companies, who earlier this year agreed a Global
Cross-Border Insolvency Protocol to enhance cooperation between
the various Lehman entities, have held their first meeting to
discuss ways to reduce potentially costly litigation and
administrative expense.

The Lehman Protocol was devised in order to facilitate
multilateral cooperation between affiliates, to ensure that the
many and complex inter-company proceedings are dealt with
speedily, and to enhance the recoveries of creditors. The Lehman
Protocol currently counts 13 signatories representing over 26
proceedings worldwide.  It is supported by all the major
affiliates, with the exception of Lehman Brothers International
(Europe).

A key objective of this first meeting was to agree a timeline to
establish a process for agreeing all trading and non-trading
inter-company balances.  A Procedures Committee was established at
the meeting to facilitate that process.

Lehman Brothers Holdings Inc. also agreed to seek approval from
the U.S. Bankruptcy Court for the Southern District of New York
for an extension of the bar date for filing proofs of debts --
from September 22 to November 2, 2009 -- for signatories to the
Lehman Protocol.  This will benefit Lehman affiliates who face a
significant challenge in having to deal with vast categories of
claims.

Edward Middleton, Head of Restructuring of KPMG in Hong Kong and
co-chair of the meeting, said: "The Lehman companies owe each
other many billions of dollars arising out of some highly complex
trading and financing structures operating across borders. How we
value and quantify these claims is very complicated."

"There is a real commitment on the part of office holders around
the world to achieve as much as we possibly can through a
collaborative approach. If we can meet the objectives that we have
now set ourselves, and keep to the aggressive timetable to which
we have committed, then creditors will see a direct benefit in
terms of significant savings in professional fees."

Rutger Schimmelpenninck, the Dutch Trustee for Lehman Brothers
Treasury Co. B.V. and also co-chair of the meeting, commented:

"This is a major step towards expediting value for creditors of
the Lehman Brothers estates worldwide currently in administration.
In an unprecedented initiative, 43 representatives from most of
the 13 major affiliates worldwide attended the meetings on July
16th and 17th to work through a number of complex issues by way of
a multilateral framework that delivers speed and openness and aims
to reduce time and costs."

"The group agreed a great deal in a short time and has committed
to a framework and a timetable to continue to advance the key
objectives of an efficient and transparent process."

Daniel Ehrmann, Managing Director of Alvarez & Marsal, the firm
acting as restructuring officers of LBHI and its affiliates,
commented: "This was an extremely productive meeting and is
testimony to the affiliates' determination to resolve the Lehman
bankruptcy proceedings by adopting a collective will and pragmatic
approach. The Lehman Protocol has morphed from a mere aspirational
statement of intentions to a cooperation framework that is holding
its adherents to measurable and tangible goals."

The second meeting of the global representatives will take place
in mid October.

                         Claims Bar Dates

As reported by the TCR on July 7, the deadline for filling proofs
of claim against Lehman Brothers Holdings Inc. and its affiliates
is on September 22, 2009.

The bar date in connection with certain securities issued by the
Debtors or any of the Debtors' affiliates outside of the United
States is on November 2, 2009 at 5:00 p.m. (prevailing Eastern
time).  A list of these foreign issued securities as of July 17 is
available for free at:
http://bankrupt.com/misc/PROGRAM_SECURITIES_LIST_7_24_2009.PDF

If approved by the Bankruptcy Court, the signatories to the Lehman
Protocol will have the same bar date for holders of the non-U.S.
securities.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

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

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

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

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for USUS$1.75
billion.  Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 dollars plus
the retention of most of employees.  Nomura also bought Lehman's
operations in the Asia Pacific for USUS$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion (USUS$33
billion) in liabilities in its petition.

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


LEHMAN BROTHERS: To Appeal English Court Ruling on Dante SPV
------------------------------------------------------------
According to reporting by the Financial Times, Lehman Brothers
Holdings Inc. will appeal a decision by English Courts that retail
investors from Papua New Guinea, Australia and New Zealand shoud
be paid ahead of the faied bank in the unwinding of a structured
vehicle.  The case pertains to a special purpose vehicle caled
Dante to which Lehman was a swap counterparty.  Investors in the
SPV has asserted that they shoud be paid ahead of Lehman since the
latter is in default.  FT says that lawyers for LBHI see the
English court ruling as contrary to U.S. Bankruptcy laws.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

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

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

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

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for USUS$1.75
billion.  Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 dollars plus
the retention of most of employees.  Nomura also bought Lehman's
operations in the Asia Pacific for USUS$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion (USUS$33
billion) in liabilities in its petition.

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


LINMARK ELECTRONICS: Business to be Sold as a Going Concern
-----------------------------------------------------------
Jason Baker and Geoffrey Rowley of Vantis Business Recovery
Services, who were appointed as Joint Administrators of Linmark
Electronics Limited, on July 28, 2009, invite offers from
interested parties to submit offers for the purchase of the
business and assets of the Company as a going concern.

Significant assets of the Company include:

  -- Stock including microwaves, flat screen televisions, DVD
     players and recorders and set top boxes;

  -- Intellectual property and goodwill including household brands
     and domain names; and

  -- Leases and contracts.

For more information, please contact Jason Baker on 07760 164308,
at jason.baker@vantispic.com or Alastair Massey on 07894 093760,
at alastair.massey@vantisplc.com

Linmark Electronics is an importer and supplier of entertainment
and consumer electronic products to major UK retailers.


NATIONAL EXPRESS: Bidders Have Until Sept. 11 to Make Firm Offer
----------------------------------------------------------------
Gill Plimmer at The Financial Times reports that the Takeover
Panel has said Stagecoach and the Cosmen consortium have until
September 11 to make a firm offer for National Express Group plc.

The deadline, the FT says, will put pressure on the consortium to
persuade the government to promise that National Express will keep
its two profitable rail routes, the c2c and East Anglia
franchises.

National Express, as cited by the FT, said: "We feel the deadline
is needed since we are looking at a range of measures to
strengthen the balance sheet and operations, and we intend to
proceed with these plans once this distraction has been removed."

According to the FT, while National Express says it will consider
a deal, it intends to press ahead with a rights issue in the
autumn if it is not taken over.

Under takeover rules, potential bidders cannot make an offer for
six months if they do not make an approach by the September 11
deadline.

As reported in the Troubled Company Reporter-Europe on July 28,
2009, the FT said the Spanish-led consortium had been expected to
bid GBP500 million, or about 325p per share.  The Cosmen family is
National Express's largest single shareholder, with an 18.5 per
cent holding, and Jorge Cosmen is deputy chairman of the transport
group and president of Spain's Alsa, a Spanish coach operator
previously owned by the Cosmens.

                               Loss

On Aug. 4, 2009, the Troubled Company Reporter-Europe, citing
Telegraph.co.uk, said National Express made a pre-tax loss of
GBP48.1 million in the first six months of 2009, down from a
profit of GBP52.4 million last year, after taking a GBP54.7
million hit from its forced exit from the East Coast mainline
franchise, which is being taken back into government hands.
Telegraph.co.uk disclosed National Express, which said it had lost
GBP20 million on the London to Edinburgh rail route this year,
said it will axe its interim dividend to save cash and reduce
debt.  According to Telegraph.co.uk, the company's debt is
GBP977.5 million, having been reduced by GBP200 million in the
past six months.

                           Going Concern

Telegraph.co.uk said the accounts declared that while the
directors are confident of renegotiating covenant obligations with
lenders, "covenant compliance remains dependent on actions which
are yet to be delivered".  In light of this the accounts warn that
"underlying implementation risks represent a material uncertainty
that may cast significant doubt upon the group's ability to
continue as a going concern", Telegraph.co.uk noted.

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


NEWCASTLE UNITED: Owner In Sale Talks; Denies Administration Rumor
------------------------------------------------------------------
Jenny Davey and Kate Walsh at The Sunday Times report that
Newcastle United's owner Mike Ashley is thought to be offering
up to GBP40 million for a buyer to take the Championship football
club off his hands before the season begins this month.

It is understood restructuring experts have made unsolicited
approaches to Mr. Ashley in case the sale falls through, but he
has refused to talk to them and is instead concentrating on trying
to secure a sale, the report relates.

According to the report, it is speculated that Newcastle could
go into administration if the deal collapses, but friends of
Mr. Ashley say administration is the last thing on his mind and
are denying the rumors.

The report discloses Mr. Ashley's advisers are locked in talks
with a consortium believed to be from the Middle East.

The report recalls Mr. Ashley paid GBP134 million for the club two
years ago and has since ploughed GBP110 million into it to pay
down its debts.

Newcastle United PLC owns and operates Newcastle United Football
Club, one of the oldest and most storied soccer team in the UK
leagues.  The club was formed in 1892 through the merger of
Newcastle East End and Newcastle West End.  It claims six FA Cups
(its last in 1955) and four league titles.  Also known as The
Toon, the team's supporters are often referred to as the Toon
Army.  UK sporting goods magnate Mike Ashley owns Newcastle United
after acquiring control in 2007.


RANK GROUP: Revenue Up 3.5% to GBP266 Mil. in 1st Half 2009
-----------------------------------------------------------
Pan Kwan Yuk at The Financial Times reports that Rank Group plc's
revenue increased 3.5% to GBP266 million for the six months to the
end of June.

The company, the FT says, attributed the rise in revenue to a
strong performance at its Grosvenor Casino business and
stabilization in trade at Mecca Bingo.

According to the FT, underlying profits rose 38 per cent to
GBP25.6 million, ahead of a consensus market forecast of GBP20.4
million.

The FT relates since the summer of 2007 Rank has suffered from
torrid trading as a result of the smoking ban, the scrapping of
lucrative high-jackpot gaming machines and weaker consumer
spending.  The group has responded by modernizing its casinos and
bingo halls in order to broaden their appeal.

                       About Rank Group

Headquartered in London, United Kingdom, Rank Group PLC --
http://www.rank.com-- is an international leisure and
entertainment company.  The Group provides services to the film
industry, including film processing, video duplication and
cinema exhibition.  The Group's leisure and entertainment
activities entail gambling services, encompassing Mecca Bingo
Clubs and Grosvenor Casinos, and owned and franchises Hard Rock
cafes.

                          *     *     *

Rank Group plc continues to carry a B1 corporate family rating
from Moody's Investors Service with negative outlook.


RMAC SECURITIES: S&P Cuts Rating on Class B1C Notes to 'B1'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class M1a, M1c,
M2c, and B1c notes series 2006-NS3 issued by RMAC Securities No.
1 PLC.  At the same time, S&P affirmed the class A2a notes in this
U.K. nonconforming residential mortgage-backed securities
transaction.

These rating actions reflect the high arrears and losses, and a
depletion of the reserve fund, which leaves the most junior class
under collateralized and increases the risk of nonpayment for all
notes.

S&P downgraded several classes of notes in this transaction in
July 2008 and placed them on CreditWatch negative in April 2009.

The reserve has been completely drawn and the balance of the class
B1 principal deficiency ledger is GBP1.6 million.

Arrears and losses are higher than S&P's nonconforming index at a
similar seasoning.  According to the June investor report, total
arrears were 35.63%.  The weighted-average loss severity for
collateral sold from March to June was 42.35%.  Total net losses
were 1.89% of the original pool balance.

High arrears result in less revenue available to replenish reserve
fund draws, to pay down PDL balances resulting from losses, and to
pay interest.  S&P believes that loans in arrears are also more
likely to be repossessed and cause subsequent losses.  High losses
place further pressure on available revenues by increasing the PDL
balances, which are cleared in the revenue priority of payments.

This transaction closed in September 2006.  The notes are backed
by a pool of first-ranking mortgages secured over freehold and
leasehold properties in England, Wales, and Scotland.  At closing,
the pool predominantly comprised newly originated collateral from
GMAC-RFC Ltd.  This is GMAC RFC's third securitization from their
RMAC Securities No. 1 PLC medium-term note program.

                           Ratings List

                    RMAC Securities No.  1 PLC
                 GBP389.5 Million, EUR200 Million,
     and US$421.6 Million Mortgage-Backed Floating-Rate Notes
                         Series 2006-NS3

      Ratings Lowered And Removed From CreditWatch Negative

                 Rating
                 ------
              Class       To            From
              -----       --            ----
              M1a         A+            AA/Watch Neg
              M1c         A+            AA/Watch Neg
              M2c         BBB           A-/Watch Neg
              B1c         B-            BB/Watch Neg

                          Rating Affirmed

                        Class       Rating
                        -----       ------
                        A2a         AAA


ULSTER BANK: Moody's Upgrades Bank Fin'l Strength Rating to 'D+'
----------------------------------------------------------------
Moody's Investors Service has confirmed the A2 long-term bank
deposit and senior debt ratings of Ulster Bank, Ulster Bank
Ireland Ltd. and First Active plc.  The bank financial strength
rating of each of the banks was upgraded to D+ (mapping to a
baseline credit assessment of Baa3) from D (BCA: Ba2).  In
addition the subordinated debt rating of First Active plc has been
confirmed at A3.  The Prime-1 ratings of all three entities were
confirmed.  The outlook on the BFSRs and the long-term ratings is
stable.  These rating actions conclude the outstanding review for
possible downgrade of the banks' ratings initiated on April 8,
2009.

Ross Abercromby, Vice President/Senior Analyst and the lead
analyst for the bank at Moody's said "The confirmation of the
A2/P-1 bank deposit and senior debt ratings reflects Moody's view
that the high level of support demonstrated to date by the bank's
parent, Royal Bank of Scotland, will continue, even after the
current difficult period.  The upgrade of Ulster Bank's BFSR to D+
reflects the substantial benefit to the bank from the inclusion of
their riskiest assets in the UK government's Asset Protection
Scheme and Moody's view that the bank's franchise across the
island of Ireland will remain strong, whilst recognizing the
sizeable challenge facing the bank over the next couple of years
in managing its problem loans."

The upgrade of the BFSR to D+ incorporates the benefit of the
insurance cover of the UK government's Asset Protection Scheme
(APS) for the bank's riskier assets as well as reflecting the
bank's strong franchise.  The bank's parent Royal Bank of Scotland
(RBS) is intending to put in place a scheme whereby it insures at
100% the losses on those assets from Ulster Bank that are placed
into the APS.  This together with the substantial additional
capital that has been injected into Ulster Bank in 2009 places the
bank in a much stronger financial position.  These measures are a
vital supporting factor for the BFSR at the current level, given
the bank's large single borrower concentrations and the broader
risks for the bank relating to the weakness of the Irish and UK
economies.  As a result of these measures the capital ratios of
the bank will initially increase substantially, however Moody's
expects these high capital ratios to reduce as the bank takes
provisions on non-covered assets and absorbs costs associated with
the restructuring of the firm, including the upcoming merger of FA
and UBIL.

The D+ BFSR also reflects the strong franchise of the bank across
both Northern Ireland and the Republic of Ireland, especially its
position as one of the major banks in Northern Ireland and as the
third clearing bank in the Republic of Ireland.  As a result of
this Moody's expects that the bank will be able to return to more
normal levels of profitability in the future when the Irish
economy recovers.

The confirmation of the A2 bank deposit and senior debt rating
reflects the ongoing support from RBS (rated Aa3, stable outlook)
and Moody's view that this support will be ongoing.  The stable
outlook on the ratings reflects the benefits of the APS and the
additional capital that has been injected as well as the stable
outlook on the senior ratings of RBS.

The last rating action was on April 8, 2009, when the ratings were
downgraded to A2/D and placed on review for possible downgrade.

These ratings were confirmed:

Ulster Bank Ltd:

* Long-term bank deposits at A2
* Short-term bank deposits at Prime-1
* Senior unsecured debt at A2

Ulster Bank Ireland Ltd:

* Long-term bank deposits at A2
* Short-term bank deposits at Prime-1
* Senior unsecured debt at A2
* Commercial paper at Prime-1

Ulster Bank Finance plc:

* Backed senior unsecured debt at A2
* Backed commercial paper at Prime-1

First Active plc:

* Long-term bank deposits at A2
* Short-term bank deposits at Prime-1
* Senior unsecured debt at A2
* Subordinated debt at A3
* Commercial paper at Prime-1
* Other short-term at Prime-1

First Active Treasury plc:

* Backed senior unsecured debt at A2
* Backed subordinated debt at A3
* Commercial paper at Prime-1
* Backed other short-term at Prime-1

These ratings were upgraded:

Ulster Bank Ltd:

* Bank financial strength to D+ from D

Ulster Bank Ireland Ltd:

* Bank financial strength to D+ from D

First Active plc:

* Bank financial strength to D+ from D

Headquartered in Belfast, UK, Ulster Bank Ltd reported
consolidated assets of GBP69.7 billion at year-end 2008.

Headquartered in Dublin, Ireland, Ulster Bank Ireland Ltd reported
consolidated assets of EUR58 billion at year-end 2008.
Headquartered in Dublin, Ireland, First Active plc reported
consolidated assets of EUR16.9 billion at year-end 2008.


WARD KNOWLES: Administrators Complete Sale to Paragon Group
-----------------------------------------------------------
The administrators of specialist business forms printer Ward
Knowles Limited have completed a sale of the business and assets
of the firm's Oswaldtwistle site to Paragon Group UK Limited.  The
deal preserves a total of 66 jobs at the site in Lancashire.

The Paragon Group is a European leader in the provision of print
services, operating from 17 sites across nine countries.

Commenting on the deal, Paul Flint, associate partner at KPMG
Restructuring, commented, "We are delighted to have been able to
conclude such a swift sale of the Oswaldtwistle site, rescuing a
substantial part of the Ward Knowles business and preserving 66
jobs.  I would like to thank the company's employees, customers
and suppliers, as without their support over the last few days, we
would not have been able to achieve such a successful outcome."

Mr. Flint continued, "We can also confirm that we are close to
concluding a sale of the Ward Knowles Manchester site to a
separate party, and hope to make a further announcement on this
over the coming days."


* UK: Advertising Insolvencies Down 22%  in 2Q09, PwC Says
----------------------------------------------------------
UK advertising companies have suffered a 50% increase in
insolvencies over the last year* experiencing more collapses than
its media counterparts, PwC revealed.

However, with Q2 2009 came a brighter spell as the rate of
insolvency** for this media subsector (22% from Q1) fell.

This follows a hard 24 months since the summer of 2007, 352
advertising companies have fallen by the wayside, ten per cent
more than publishing, and 25% more than TV/film companies.

David Lancefield, partner, PricewaterhouseCoopers LLP, said:
"In the main, we are seeing small advertising companies slide into
insolvency.  The contraction in advertising budgets is hurting all
companies but currently picking off the small independents that do
not have deep pockets or the ability to diversify."

Both advertising and TV/film insolvencies peaked in Q1 with 68 and
22 collapses respectively as the cyclical downturn hit hard.

"TV, film and advertising companies rely on a healthy stream of
work coming through the door, with a long lead time from story
board to screen.  Any extended pauses between contracts, or
reduction in budgets in the current climate, could mean the lights
go out," he added.

PwC forecasts that digital and mobile media will form 78%*** of
growth for the global entertainment & media (E&M) market by 2013.

However, despite this, the immediate future looks challenging.
Over 2009/2010, even internet advertising will shrink at a
projected rate of 3.2% CAGR, while TV advertising contracts 11%
CAGR.

In fact, although both areas will see growth from 2011 – 2013,
internet advertising at 11.5% and TV advertising at 3.4% CAGR, by
2013 the UK advertising market will be worth over US$3 billion
less than it did at the height of the market in 2007.

Mr. Lancefield explained, "The combination of a global recession
and the structural shift towards digital platforms has accelerated
the decline of some traditional media.  The considerable growth in
digital usage and revenues will not plug the gap left behind over
the next few years."

Mr. Lancefield continued, "Winning in the upturn isn't just about
media companies working harder or doing things better.  It's time
for a new paradigm.  Having the courage to re-examine
organisations, partnerships and pricing structures will mark out
the winners from the losers.

"Looking outwards for fresh insights and investing in new skills
will distinguish those embracing digital future from those stuck
in the analogue past.  Searching outside media sector boundaries
for this stimulus is a must have.  For example, experience from
retail and financial services should inform how media companies
should leverage the rich data that new media platforms generate."

* A comparison of financial year 2008 with financial year 2009.
** The UK insolvency stats cover England, Scotland and Wales but
not Northern Ireland.

*** All growth figures are projections taken from the
PricewaterhouseCoopers LLP Global Entertainment & Media Outlook
2009–2013.

                   About PricewaterhouseCoopers

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.


* BOOK REVIEW: Distressed Securities - Analyzing and Evaluating
              Market Potential and Investment Risk
---------------------------------------------------------------
Author: Edward I. Altman
Publisher: Beard Books
Softcover: 242 pages
List Price: US$34.95
by Henry Berry

For most of U.S. history, bankruptcies were scattered occurrences
not widely known beyond a local community or the respective
industry sector.  Distressed firms struggled on their own and
failed in anonymity.  This changed late in the twentieth century
and today there is a new situation regarding bankruptcies and
distressed companies that appears to be continuing with no end in
sight.

There is much interest in this field of corporate bankruptcies:
the sums of money at stake (often in the billions) is great, the
sources of funds available for investing in troubled companies is
diverse, and the potential for sizable profits is great.  The
author, Edward Altman, regards corporate bankruptcies as a market
spanning all business sectors.  "We refer to distressed securities
as a market and as an asset class [that] has captured the interest
and imagination of the investment community," he writes.  Among
the players: private partnerships, open-end mutual funds, closed-
end funds, specialized groups within larger operations, broker-
dealer pools of funds, departments of commercial and investment
banks, and arbitrageurs.  All are experienced investors, making it
difficult for new organizations to successfully compete in the
market.  Despite a dearth of organized research, the field has
developed enough so there are many cases to derive lessons from
and sufficient data to guide decision-making.  Investors are not
working in the dark; although significant risks are present in any
transaction.

The task the author sets for himself in this book is "to document
and analyze the unique asset class of distressed debt and equity
securities."  Altman does this by providing a descriptive anatomy
of the characteristics of each asset class -- its major
participants, its market pricing dynamics, and its performance
attributes.  The author also analyzes such influences as the
growth of the business media, the interconnected relationship
among large businesses, the effects of business globalization, and
the huge sums of funds institutions and even some individuals can
raise in a relatively short time.

For readers seeking to understand and profit from distressed
securities, this book offers a unique perspective that is in tune
with the realities and the potentials of this highly competitive
market.  Altman goes beyond a mere description of the field of
distressed securities.  He supplies a variety of analytical tools
for assessing the condition, value, risks, and potential returns
of distressed businesses.  In support of his work, he furnishes
extensive data applicable to varied circumstances of distressed
businesses.  Numerous appendices contain worksheets, analytical
data, listings of distressed companies, and resources such as
bankruptcy law firms and investment banking boutiques.  Though
compiled in 1990, much of the material of the appendices is still
relevant; and that which is outdated is still useful for research.
With its varied, yet interconnected material, Altman's work
enables individuals and organizations in the high-stakes, fast-
moving field of distressed securities to work in a more focused,
efficient, and systematic way.  This leads to quicker and surer
decision-making, which can make all the difference in this highly
competitive field.

Edward I. Altman is a Max L. Heine Professor of Finance at the NYU
Stern School of Business and an internationally-recognized expert
on distressed securities.

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *