TCREUR_Public/090820.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, August 20, 2009, Vol. 10, No. 164

                            Headlines

A U S T R I A

* AUSTRIA: Fitch Says Banks Continue to Face Tough Environment


F R A N C E

WINDERMERE XII: Fitch Junks Ratings on Six Classes of Notes


G E R M A N Y

ARCANDOR AG: Valovis Ready to Lower Interest Rate for Quelle
CONTINENTAL AG: Schaeffler Has Bank Deal, Inches Closer to Merger
CONTINENTAL AG: Fitch Cuts Long-Term Issuer Default Rating to 'B+'
ESCADA AG: CEO Sells Shares Following Insolvency
GPC BIOTECH: Future in Doubt if Merger Not Completed This Year

SCHAEFFLER GROUP: Secures EUR12-Bil. Refinancing Deal with Banks
SCHALLPLATTEN PRODUKTION: To Enter Final Talks with Sony Music
VALOVIS BANK: Applies for EUR500 Mil. State Guarantees with SoFFin


I R E L A N D

EUROCASTLE CDO: S&P Affirms Rating on Class B Notes at 'BB'
IVORYCDO LTD: S&P Junks Rating on Class E Notes From 'BB'

* IRELAND: Hoteliers Seek Help From Gov't to Survive Crisis


I T A L Y

RISANAMENTO SPA: Sky Wants to Buy Milan Offices at a Lower Price
WIND TELECOMUNICAZIONI: Weather Mulls EUR825 Mil. Bond Buyback


K Y R G Y Z S T A N

STUDIO PROF: Creditors Must File Claims by August 29


L A T V I A

DIGITALAIS LATVIJAS: Court Acquits Suspects on Liquidation


N E T H E R L A N D S

E-MAC 2007-NHG II: Moody's Confirms 'Ba3' Rating on Class B Notes
E-MAC 2007-NHG V: Moody's Confirms 'Ba3' Rating on Class B Notes
PEARL MORTGAGE 1: Moody's Cuts Rating on Class B Notes to 'Ba2'
PEARL MORTGAGE 2: Moody's Lowers Rating on Class B Notes to 'Ba2'


R O M A N I A

TOFAN GROUP: Enters Bankruptcy Proceedings


R U S S I A

MDM BANK: Moody's Withdraws 'D' Bank Financial Strength Rating
SOUTHERN TELECOM: Secures RUR3 Billion Credit Line


S W E D E N

GENERAL MOTORS: Saab Wants to End Reorganization After Sale Deal
SAAB AUTOMOBILE: Wants to End Reorganization After Sale Deal


U K R A I N E

CRYSTAL LLC: Creditors Must File Claims by August 22
FOLIA LLC: Creditors Must File Claims by August 23
HANNA-MARIA LLC: Court Starts Bankruptcy Supervision Procedure
NATIONAL STANDARD: NBU Initiates Liquidation Proceedings
ORIGINAL GOODS: Creditors Must File Claims by August 22

POSITIVE LLC: Creditors Must File Claims by August 22
SPECTOR LLC: Creditors Must File Claims by August 22
YEVROPEISKYI BANK: NBU Initiates Liquidation Proceedings
YOUTH COGENCE: Court Starts Bankruptcy Supervision Procedure


U N I T E D   K I N G D O M

BRADFORD & BINGLEY: Arrears Up in First Half of 2009
CHAPELTOWN ASSOCIATES: High Court Orders Liquidation
CHESS II: S&P Downgrades Rating on EUR50 Mil. Notes to 'B-'
CORNERSTONE TITAN: S&P Lowers Rating on Class J Notes to 'D'
HIGHLAND PROPERTIES: High Court Orders Liquidation

INDUSTRIOUS GROUP: Max to Push Through with Property Deal
ITV PLC: Viewing Share Falls Below Target for Last Two Months
LM ENGINEERING: Goes Into Administration; 14 Jobs Axed
LUDGATE FUNDING: S&P Junks Ratings on Two Classes of Notes
MANSARD MORTGAGES: Fitch Junks Ratings on Class B1a Notes

MELROSE RESOURCES: Moody's Withdraws 'B2' Corporate Family Rating
NEWGATE FUNDING: Moody's Junks Ratings on Eight Classes of Notes
NIGHTINGALE FINANCE: Moody's Cuts Capital Note Rating to 'Caa3'
NORTHERN ROCK: To Defer Coupon Payments on Subordinated Bonds
OSPREY HIGHLANDS: High Court Orders Liquidation After Gov't Probe

SIAS BUILDING: Goes Into Administration; 130 Jobs Affected
UROPA SECURITIES: S&P Affirms Low-B Ratings on 4 Classes of Notes

* UK: Bankruptcy Petitions Down in Second Quarter of 2009
* UK: Baker Tilly Predicts Tougher 2010 for Hotel Industry

* S&P Takes CreditWatch Actions on 371 European CDO Tranches

* Upcoming Meetings, Conferences and Seminars


                         *********


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


* AUSTRIA: Fitch Says Banks Continue to Face Tough Environment
--------------------------------------------------------------
Fitch Ratings says in report published that Austrian banks will
continue to face a tough operating environment, with loan
impairment charges likely to continue to increase in the second
half of 2009 and into 2010.

The rating Outlook for Austrian banks is Stable, as the Issuer
Default ratings are underpinned by the likelihood of government
support, with the Republic of Austria being rated 'AAA'/Stable
Outlook.  However, Individual ratings may come under further
downward pressure as a result of the challenging environment.  In
Fitch's rating criteria, a bank's standalone risk is reflected in
Fitch's Individual ratings and the prospect of external support is
reflected in Fitch's Support ratings.  Collectively, these ratings
drive Fitch's Long- and Short-term IDRs.

Like other banks around the world, Austrian banks have been
significantly affected by the disruption of the wholesale capital
and inter-banking markets in late 2008 in addition to the rapid
economic deterioration in central and eastern Europe and the
Commonwealth of Independent States, which are major markets for
all large Austrian banks.

"Implications from the deterioration in CEE and the CIS will
continue to negatively affect the financial performance of
Austrian banks, at least in the medium term," says Michael
Steinbarth, Senior Director in Fitch's Financial Institutions
team, based in London.

CEE/CIS accounted for more than half of 2008 operating revenues at
the three largest banks -- UniCredit Bank Austria AG, Erste Group
Bank AG and Raiffeisen Zentralbank Oesterreich AG.  However, as
their domestic business was negatively affected by securities
write downs, the contribution from CEE/CIS accounted for an even
greater proportion of profits in 2008.  At the same time, CEE/CIS-
related loan impairment charges more than doubled, accounting for
around 55% of total loan impairment charges at the major Austrian
banking groups.  The banks' domestic business, traditionally less
profitable than their CEE/CIS operations, also suffered from
higher loan impairment charges and a much reduced securities
business with only limited pick-up being seen so far in 2009.

Similar to banks in other western European countries, Austrian
banks have benefited since late 2008 from the availability of a
governmental bank support scheme aimed at strengthening the banks'
capital bases and funding and liquidity positions.  Out of an
Austrian government package of EUR100 billion, EUR15 billion has
been made available for capital injections.  Erste, RZB and VBAG,
the central institution of the Volksbanken Verbund, have used the
support scheme as well as other capital measures to bolster their
capital ratios.

The banks' ratings are:

Bank Austria:

  -- Long-term Issuer Default Rating (IDR) 'A'; Stable Outlook
  -- Short-term IDR 'F1'
  -- Individual Rating 'C/D'
  -- Support Rating '1'
  -- Support Rating Floor 'A'

Erste:

  -- Long-term IDR 'A'; Stable Outlook
  -- Short-term IDR 'F1'
  -- Individual Rating 'C'
  -- Support Rating '1'
  -- Support Rating Floor 'A'

RZB:

  -- Long-term IDR 'A'; Stable Outlook
  -- Short-term IDR 'F1'
  -- Individual Rating 'C/D'
  -- Support Rating '1'
  -- Support Rating Floor 'A'

Volksbank Verbund:

  -- Long-term IDR 'A'; Stable Outlook
  -- Short-term IDR 'F1'
  -- Individual Rating 'C/D'
  -- Support Rating '1'
  -- Support Rating Floor 'A'


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


WINDERMERE XII: Fitch Junks Ratings on Six Classes of Notes
-----------------------------------------------------------
Fitch Ratings has downgraded various Windermere XII FCC notes and
placed them on Rating Watch Negative:

  -- EUR776 million Class A due July 2017: downgraded to 'BBB-'
     from 'AAA'; placed on RWN

  -- EUR3,000 Class X due July 2017: affirmed at 'AAA'; Outlook
     Stable

  -- EUR317.4 million Class B due July 2017: downgraded to 'B'
     from 'AAA'; placed on RWN

  -- EUR126.6 million Class C due July 2017: downgraded to 'CCC'
     from 'AA'; removed from RWN; assigned a Recovery Rating of
    'RR5'

  -- EUR39.2 million Class D due July 2017: downgraded to 'CC'
     from 'AA'; removed from RWN; assigned a Recovery Rating of
     'RR6'

  -- EUR80.8 million Class E due July 2017: downgraded to 'CC'
     from 'A'; removed from RWN; assigned a Recovery Rating of
     'RR6'

  -- EUR81.3 million Class F due July 2017: downgraded to 'CC'
     from 'A'; removed from RWN; assigned a Recovery Rating of
    'RR6'

  -- EUR38.7 million Class G due July 2017: downgraded to 'CC'
     from 'BBB'; removed from RWN; assigned a Recovery Rating of
     'RR6'

  -- EUR59 million Class H due July 2017: downgraded to 'CC' from
     'BBB'; removed from RWN; assigned a Recovery Rating of 'RR6'

The downgrades reflect the deterioration in the creditworthiness
of the transaction, due to decline in the value of the property
securing the loan as well as a decline in the income profile of
the property.

The borrower, which is in default, currently enjoys 'sauvegarde'
creditor protection under French insolvency law.  The French
Commercial Tribunal that granted the bankruptcy protection is set
to impose a plan regarding the next steps for the transaction when
the sauvegarde expires in September, pending which the senior two
classes of notes will remain on RWN.

The loan initially financed 76.6% of the EUR2.1 billion purchase
price of a grade A office tower in Paris' financial district.
Since closing in August 2007, the value of the property has
plummeted 42% to a reported EUR1.24 billion.  The resultant loan
to value ratio (LTV) of 132% is well over the covenanted level set
at 80%.  The borrower has been in formal default since February
2009.

Part of the value decline reflects a general weakening in
sentiment towards commercial property right across Europe.
However, the severity of the property value decline in relation to
Paris as a whole reflects an elevated level of uncertainty
regarding future property income, which is subject to considerable
volatility.  The short-term nature of French leases is compounded
by the poor condition of the borrower, and the level of property
management service that can be expected until the sauvegarde is
satisfactorily resolved.  Occupancy has fallen to 80% at the July
2009 IPD from over 90% at closing; pending replacement, after an
additional six tenants depart in 2010, vacancy will exceed 50%.

The effect of falling income on debt service is currently hidden
by the fall in interest rates since the deal closed.  However,
this may be reversed in the years left until note maturity, during
which time income (and with it debt yields) will have to bounce
back if significant loan losses are to be avoided.  The doubt
surrounding this explains the severity of the rating action.

Fitch will continue to monitor the performance of the transaction.


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


ARCANDOR AG: Valovis Ready to Lower Interest Rate for Quelle
------------------------------------------------------------
Holger Elfes at Bloomberg News reports that Arcandor AG creditor
Valovis Bank AG said it is ready to lower the interest rates
charged to the German retailer's Quelle unit.

Citing Valovis Chief Executive Officer Robert Gogarten, Bloomberg
discloses the bank is currently charging Arcandor's Quelle mail-
order unit about 18% in interest and other charges.  According to
Bloomberg, Klaus Hubert Goerg, Arcandorís administrator, last week
called that rate excessive.

"We haven't started talking about the conditions, but we are ready
to do so," Bloomberg quoted Mr. Gogarten as saying.

Bloomberg recalls two months ago Valovis, which is owned by an
Arcandor employee trust and manages part of the company's
pensions, cut off Quelle's factoring, a form of financing where
companies sell their outstanding invoices to a bank to secure
funds.

                       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.


CONTINENTAL AG: Schaeffler Has Bank Deal, Inches Closer to Merger
-----------------------------------------------------------------
Daniel Schafer at The Financial Times reports that Schaeffler
Group reached an agreement with banks to refinance EUR12 billion
(US$17 billion) in debt.

Bloomberg News relates Schaeffler, which directly owns 49.9% of
auto-parts manufacturer Continental AG, said Tuesday that it
struck refinancing deals with UBS, Royal Bank of Scotland,
Unicredit SpA's HVB Group unit, Commerzbank AG and Landesbank
Baden-Wuerttemberg.  The ball-bearing maker, as cited by
Bloomberg, said the accord splits its credit lines into two
portions of 4-1/2-year and six-year maturities and will be
implemented in several stages.

According to Bloomberg, Marc-Rene Tonn, a Hamburg-based analyst at
MM Warburg, said the bank agreements give Schaeffler and
Continental "a cooling-off period after all the disputes" so they
can work on the merger.  The two manufacturers are saddled with a
combined EUR22 billion in debt.

Daniel Schafer at The Financial Times reports that with the banks'
approval to extend the group's maturities, the threat of an
imminent debt-for-equity-swap has come off the table.  The FT says
the group's lenders have given Schaeffler more breathing space, as
some of them eschewed a solution that would see them writing down
any of the debt.

Citing people close to Schaeffler, the FT states the group aimed
to launch a merger with Continental in the course of next year.

                     About Continental AG

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


CONTINENTAL AG: Fitch Cuts Long-Term Issuer Default Rating to 'B+'
------------------------------------------------------------------
Fitch Ratings has downgraded Continental AG's Long-term Issuer
Default Rating and senior unsecured ratings to 'B+' from 'BB',
respectively.  Fitch has simultaneously maintained the IDR and
senior unsecured ratings on Rating Watch Negative.  The agency has
affirmed Continental's Short-term IDR at 'B'.

The downgrade follows the replacement last week of Continental's
CEO by its major shareholder Schaeffler KG, and the ongoing
reorganisation of the executive board.  Continental has still to
appoint a new CFO to the board as part of this process.  In view
of these changes and Schaeffler's reported opposition to a rights
issue, which could dilute its stake, Fitch believes that the
likelihood of a capital increase in the expected amount of
EUR1.5 billion, announced by Continental on July 30, 2009, has
diminished.  Schaeffler currently has a highly leveraged financial
structure and may not be able to participate in a capital increase
at Continental.

The rating action also reflects the considerable refinancing risk
faced by Continental for its EUR3.5 billion tranche, related to
its Siemens VDO acquisition facility, maturing in August 2010, and
the increased risk of a breach in covenants.  Fitch is concerned
about tightened financial covenant headroom due to Continental's
weakened operating performance amid the severe global auto
downturn.  While Continental has stated that it will be able to
comply with financial covenants as of end-H109, Fitch believes
that ongoing compliance will remain challenging if no agreement is
reached with its banks.

Separately, Schaeffler announced that it has reached an agreement
with five banks on refinancing its debt.  This development will
likely pave the way for a possible merger of Schaeffler with
Continental, although it remains uncertain what impact
Schaeffler's agreement with the banks will have on the potential
group's combined financial profile.

Fitch intends to resolve the RWN once more details are available
on Continental's strategic direction, which could be significantly
influenced by Schaeffler going forward, and the group's progress
in resolving its financial challenges, particularly debt
refinancing.  Fitch believes that possible measures that
Continental could employ to remedy its financial difficulties,
such as refinancing and/or asset disposals, are exposed to a high
level of execution risk given difficult ongoing financial market
conditions.  Any further downgrade of Continental could be by more
than one notch.


ESCADA AG: CEO Sells Shares Following Insolvency
------------------------------------------------
Holger Elfes at Bloomberg News reports that Escada AG said Chief
Executive Officer Bruno Saelzer sold shares after the company
filed for insolvency.

Citing Escada statements on the OTS newswire, Bloomberg discloses
Mr. Saelzer sold 48,000 shares Aug. 17 for 75 cents (US$1.07) each
and 77,882 shares Aug. 18 for 82 cents each, while his wife
Jessica Saelzer sold 142,000 shares Aug. 18 for 81 cents apiece
and another 18,000 for 77 cents apiece.

                        About Escada AG

The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market.  It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.

As of August 10, 2009 the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end.  Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees.  Escada Group had total assets
of EUR322.2 million against total liabilities of 338.9 million as
of April 30, 2009.

ESCADA AG filed of an insolvency petition in Munich, Germany, on
August 13, 2009.  The competent Municipal Court of Munich has
appointed Dr. jur. Christian Gerloff as preliminary insolvency
administrator.

Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008).  O'Melveny &
Myers LLP has been tapped as bankruptcy counsel.  Kurtzman Carson
Consultants serves as claims and notice agent.  Judge Stuart M.
Bernstein handles the case.  Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.  A copy of Escada US's Chapter 11 petition
and list of largest unsecured creditors is available for free at
http://bankrupt.com/misc/sdny09-15008.pdf


GPC BIOTECH: Future in Doubt if Merger Not Completed This Year
--------------------------------------------------------------
GPC Biotech AG said its future may be in doubt if a planned merger
with Agennix Inc. is not completed at all or doesn't take place by
the end of this year.  GPC received a EUR3 million loan from
diagennix GmbH, the new company into which it will be merged.
That gives it sufficient cash to last into the second quarter of
next year, it said.  "However, if the merger is not completed by
the end of 2009 or at all, the ability of the company to continue
as a going concern on a stand-alone basis will be immediately
threatened," it said.  GPC made this disclosure in an August 18
statement describing its financial results for the second quarter
ended June 30, 2009.

In June, GPC Biotech's shareholders approved the adoption of the
merger agreement between the Company and diagennix GmbH (to be
renamed Agennix AG and converted into a stock corporation).
Pursuant to the merger agreement, GPC Biotech, as transferring
entity, is to be merged into Agennix AG, as absorbing entity, to
which were contributed all the shares of Agennix Incorporated (by
its sole shareholder) and a EUR15 million cash contribution by
dievini Hopp BioTech holding GmbH & Co KG, an investment company
of Dietmar Hopp, co-founder of SAP, and one of the largest
shareholders of GPC Biotech.  The merger is expected to close by
the end of 2009.

First six months of 2009 compared to first six months of 2008
Revenues decreased 97% to EUR0.1 million for the six months ended
June 30, 2009, compared to EUR3.0 million for the same period in
2008.  The decrease in revenues is due to the termination of the
co-development and license agreement for satraplatin with Celgene
Corporation effective September 2008.  Net loss for the first six
months of 2009 improved 46% to EUR8.5 million compared to EUR15.8
million for the first six months of 2008.  Basic and diluted loss
per share was EUR0.23 for the first six months of 2009 compared to
EUR0.43 for the same period in 2008.

Revenues for the three months ended June 30, 2009 decreased 93% to
EUR100,000 compared to EUR1.5 million for the same period in 2008.
The Company's net loss was EUR4.2 million in the second quarter of
2009 compared to EUR8.7 million for the same period in 2008.
Basic and diluted loss per share was EUR0.11 for the second
quarter of 2009 compared to EUR0.24 for the same period in 2008.

As of June 30, 2009, cash, cash equivalents, and available-for-
sale investments totaled EUR5.6 million, including EUR0.2 million
in restricted cash.  In connection with the planned merger, GPC
Biotech made a loan to Agennix in the first quarter of 2009 in the
amount of US$20 million in the form of a senior secured
convertible promissory note.

Net cash burn for the first six months of 2009 was EUR11.4
million, with net cash burn of EUR4.9 million in the first quarter
and EUR6.5 in the second quarter of 2009.   The increase in net
cash burn for the second quarter compared to the previous quarter
was due to payments of merger-related expenses of approximately
EUR2.7 million which had been accounted for but not paid out in
the first quarter of 2009.

            New Company to Have Cash Until Q2 2010

The Company also announced that it has received a loan in the
amount of EUR3 million from diagennix GmbH, which is the new
company onto which GPC Biotech will be merged after diagennix has
been changed to a stock corporation and renamed "Agennix AG."  The
loan, which bears 12% interest per annum and has a term of one
year, is secured by an assignment of a portion of the US$20
million note in Agennix in the amount of US$4.8 million.  This
loan is between the two merger partners and so will not impact the
overall cash position of the future combined company.  The new
company resulting from the merger is expected to have sufficient
cash, as previously announced, into the second quarter of 2010.

Dr. Torsten Hombeck, Chief Financial Officer, said:"With the
approval of the proposed merger by our shareholders in June, we
are working to finalize the transaction, the closing of which we
continue to expect to occur by the end of this year.  We are
cooperating closely with our colleagues at Agennix on drug
development activities for talactoferrin and the other programs in
our pipeline, as well as to move forward with the integration of
our two businesses."

      Stand-Alone Entity No Substantial Revenues for 2009

GPC Biotech updated its guidance as a stand-alone entity for the
full year 2009.  The Company continues to expect no substantial
revenues in 2009 since Celgene, the main source of revenues in
recent years, terminated its collaboration and license agreement
for satraplatin in 2008.  Regarding cash, GPC Biotech believes
that its existing cash, together with the loan it has received
from diagennix, should be sufficient to fund operations as a
stand-alone entity through the closing of the planned merger.

                       About GPC Biotech

GPC Biotech AG (Frankfurt Stock Exchange: GPC) -- http://www.gpc-
biotech.com/ -- is a publicly traded biopharmaceutical company
focused on developing anti-cancer drugs.  The Company currently
has two programs in clinical development: satraplatin, an oral
platinum compound, and RGB-286638, a multi-targeted protein kinase
inhibitor.  The Company's shareholders have approved a merger
agreement pursuant to which the Company will combine its business
with Agennix, Incorporated, a privately held biotechnology company
located in Houston, Texas.  Agennix is developing oral
talactoferrin, a product candidate that is currently in Phase 3
trials for non-small cell lung cancer.  GPC Biotech AG is
headquartered in Martinsried/Munich (Germany) and has a wholly
owned U.S. subsidiary in Princeton, New Jersey.


SCHAEFFLER GROUP: Secures EUR12-Bil. Refinancing Deal with Banks
----------------------------------------------------------------
Daniel Schafer at The Financial Times reports that Schaeffler
Group reached an agreement with banks to refinance EUR12 billion
(US$17 billion) in debt.

Bloomberg News relates Schaeffler, which directly owns 49.9% of
auto-parts manufacturer Continental AG, said Tuesday that it
struck refinancing deals with UBS, Royal Bank of Scotland,
Unicredit SpA's HVB Group unit, Commerzbank AG and Landesbank
Baden-Wuerttemberg.  The ball-bearing maker, as cited by
Bloomberg, said the accord splits its credit lines into two
portions of 4-1/2-year and six-year maturities and will be
implemented in several stages.

According to Bloomberg, Marc-Rene Tonn, a Hamburg-based analyst at
MM Warburg, said the bank agreements give Schaeffler and
Continental "a cooling-off period after all the disputes" so they
can work on the merger.  The two manufacturers are saddled with a
combined EUR22 billion in debt.

Daniel Schafer at The Financial Times reports that with the banks'
approval to extend the group's maturities, the threat of an
imminent debt-for-equity-swap has come off the table.  The FT says
the group's lenders have given Schaeffler more breathing space, as
some of them eschewed a solution that would see them writing down
any of the debt.

Citing people close to Schaeffler, the FT states the group aimed
to launch a merger with Continental in the course of next year.

                      About Schaeffler KG

Germany-based Schaeffler KG a.k.a Schaeffler Group --
http://www.schaeffler.com/-- manufactures a vast array of
bearings, from cylindrical roller bearings to needle roller
bearings, used in the aerospace, automotive, machine tool, and
semiconductor industries.  Its three main brands are INA, FAG, and
LuK, and though the entities are treated separately within the
company, they also work collaboratively on specific product
development.  The company is owned by Maria-Elisabeth Schaeffler,
the widow of a co-founder, and her son, Georg F. W. Schaeffler.


SCHALLPLATTEN PRODUKTION: To Enter Final Talks with Sony Music
--------------------------------------------------------------
Blabbermouth.net reports that Manuel Sack, the insolvency
administrator of Hannover, Germany-based record company SPV
(Schallplatten Produktion und Vertrieb GmbH), is to enter into
final negotiations with potential investor Sony Music
Entertainment Germany GmbH.

According to the report, Sony Music vows to keep various
headcounts within an ongoing operating company SPV, though in an
obviously restructured setup.

The report says all parties involved are looking forward to speed
up in finalizing their ongoing negotiations and to announce more
details by the end of next week.

On July 31, 2009, the local court in Hannover, Germany had ruled
for administration of insolvency of SPV.  The insolvency of one of
the SPV shareholders, followed by a compensation of millions of
euros in 2007, parallel to a serious narrow market had forced
founder and managing director Manfred Schuetz, to file for
insolvency at the local court Hannover at the end of May 2009.


VALOVIS BANK: Applies for EUR500 Mil. State Guarantees with SoFFin
------------------------------------------------------------------
Edward Taylor at Reuters, citing Handelsblatt, reports that
Valovis Bank AG has applied for EUR500 million (US$706.3 million)
in state guarantees with the German rescue fund SoFFin.

According to Reuters, Robert Gogarten, head of the bank, said that
there was no urgent need for the funds but that it was prudent to
ensure "sufficient liquidity".


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


EUROCASTLE CDO: S&P Affirms Rating on Class B Notes at 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class C and D notes
issued by Eurocastle CDO III PLC.  At the same time, S&P affirmed
and removed from CreditWatch negative S&P's ratings on the class
A-1, A-2, B, and E notes.

These rating actions reflect S&P's assessment of rated
overcollateralization metrics, which provide an estimate of rating
stability for cash flow collateralized debt obligation tranches
based on output from Standard & Poor's CDO Evaluator model and a
simplified cash flow analysis.

They also reflect S&P's assessment of the credit deterioration of
the assets in the transaction's underlying portfolio, primarily
comprising European structured finance securities.  S&P's analysis
indicates that about 36% of the underlying pool in this
transaction comprises assets on CreditWatch negative.

As a result, the existing ratings on the class C and D notes are,
in S&P's opinion, no longer consistent with the available credit
enhancement and S&P has therefore lowered S&P's ratings on these
notes.

The most recent rating action on this transaction occurred on
June 18, when S&P placed the class A-1, A-2, B, C, D, and E notes
on CreditWatch negative.

Eurocastle CDO III is a CDO of European asset-backed securities
which closed in April 2005.

                           Ratings List

                      Eurocastle CDO III PLC
     EUR750 Million Senior And Mezzanine Deferrable-Interest
                       Floating-Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

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

      Ratings Affirmed and Removed From CreditWatch Negative

                              Rating
                              ------
             Class       To            From
             -----       --            ----
             A-1         AAA            AAA/Watch Neg
             A-2         AAA            AAA/Watch Neg
             B           AA             AA/Watch Neg
             E           BB             BB/Watch Neg


IVORYCDO LTD: S&P Junks Rating on Class E Notes From 'BB'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class C, D, and E notes issued by IvoryCDO Ltd. At the same
time, S&P removed classes D and E from CreditWatch negative and
affirmed the class A-1, A-2, and B notes.

These rating actions follow S&P's assessment of the credit
deterioration of the assets whose cash flows ultimately provide
for the payments on the notes.  The portfolio currently contains
one defaulted asset.  S&P's analysis also shows that the portfolio
is exposed to collateralized debt obligation assets with event-of-
default overcollateralization test triggers that include rating-
based haircuts, to which S&P did not give any credit.  S&P's
scenario default rates for the remainder of the portfolio have
increased.

The transaction was structured to include interest coverage and
collateral coverage tests at both the pool and transaction level.
The collateral coverage ratios for classes D and E are
substantially below 100%.

S&P's most recent rating action on Ivory CDO took place on
March 10, when S&P placed classes D and E on CreditWatch negative.

Ivory CDO is a cash flow CDO of asset-backed securities
transaction that closed in July 2007.

                           Ratings List

                          Ivory CDO Ltd.
         EUR200 Million Asset-Backed Floating-Rate Notes

                          Rating Lowered

                                   Rating
                                   ------
                  Class       To            From
                  -----       --            ----
                  C           BBB+          A

      Ratings Lowered and Removed From CreditWatch Negative

                               Rating
                               ------
              Class       To            From
              -----       --            ----
              D           B-            BBB/Watch Neg
              E           CCC+          BB/Watch Neg

                         Ratings Affirmed

                       Class       Rating
                       -----       ------
                       A-1         AAA
                       A-2         AAA
                       B           AA


* IRELAND: Hoteliers Seek Help From Gov't to Survive Crisis
-----------------------------------------------------------
The Irish Times reports the Irish Hotels' Federation last week
called on the government to intervene urgently to safeguard the
long-term viability of Ireland's tourist industry.

"We are calling on the Government to intervene and facilitate an
orderly restructuring of the sector in a way that is sustainable
and allows our members to continue to be major employers and
contributors to the Irish economy," the Irish Times quoted IHF
President Matthew Ryan as saying at a special meeting of members
at the Grand Hotel, Malahide Wednesday last week.  "Many hotels
are now in crisis talks with banks and in some cases banks have
taken control of hotels.  Unless a strong set of public policy
measures is put in place to support hotel finances, the sector is
going to experience a high casualty rate."

According to the Irish Times, the problems faced by the sector
include the phenomenon whereby hotels that have fallen under the
control of banks are operating at below-cost prices, which the IHF
says is distorting the market with unfair competition.


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


RISANAMENTO SPA: Sky Wants to Buy Milan Offices at a Lower Price
----------------------------------------------------------------
Armorel Kenna at Bloomberg News, citing daily MF, reports News
Corp.'s Sky Italia SpA unit may seek talks with Risanamento SpA's
creditor banks to reduce the asking price for the Milan offices
the Italian real-estate developer owns.

According to Bloomberg, Sky is interested in buying the Milan
offices it currently rents for about EUR50 million (US$71 million)
less than Risanamento is asking.

Bloomberg relates MF, citing a document presented by an "expert"
hired by Sky Italia, said News Corp. values the two office blocks
and land where a third block is planned at between EUR140 million
and EUR150 million.

                         Restructuring Plan

As reported in the Troubled Company Reporter-Europe on Aug. 6,
2009, Bloomberg News, citing Messaggero, said that Risanamento
asked banks for as much as EUR73 million (US$104 million) in new
credit lines to support a restructuring plan requested by a Milan
bankruptcy court.

On July 29, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported the board of Risanamento agreed on a
debt-restructuring plan that will allow it to get a EUR150 million
(US$214 million) cash injection.  Bloomberg disclosed Risanamento
said the company will restructure EUR350 million of debt into a
convertible bond maturing in 2014.

                       About Risanamento SpA

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


WIND TELECOMUNICAZIONI: Weather Mulls EUR825 Mil. Bond Buyback
--------------------------------------------------------------
John Glover and Michael Shanahan at Bloomberg News report that
Weather Capital Finance SA, one of the companies Egyptian
financier Naguib Sawiris used to acquire Wind Telecomunicazioni
SpA, plans to buy back EUR825 million (US$1.2 billion) of its
exchangeable bonds.

According to Bloomberg, Weather said in a statement investors will
be offered at least 97% of face value for the 4.75% notes due
2013, and a fee of 1.5%.  According to Bloomberg, a meeting with
investors to approve the redemption is due to be held in London on
Sept. 21 and the company needs holders of 75% of the notes to
accept the offer.

Weather, Bloomberg says, plans "to use available cash to remove
short-term maturities."

Heaqquartered in Rome, Italy, Wind Telecomunicazioni SpA --
http://www.wind.it-- provides telecom services throughout the
country.  The company is also a top ISP, serving nearly 2 million
dial-up and broadband subscribers.  Wind sells consumer mobile
services, as well as phones and accessories, under the WIND brand
from more than 4,000 third-party retail locations, and about 270
Wind franchises.  Fixed-line voice and Internet services are sold
under the Infostrada banner.  Chairman Naguib Onsi Naguib Sawiris
controls the company through his 88% stake in Weather Investments
which owns Wind.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on June 22,
2009, Fitch Ratings placed Wind Acquisition Finance SA's senior
notes, rated 'BB', on Rating Watch Negative.  Fitch simultaneously
affirmed Wind's Long-term Issuer Default Rating at 'BB-' and
revised the Outlook to Stable from Positive.  The agency has
affirmed Wind's Short-term IDR at 'B'.  Fitch also affirmed the
instrument ratings of Wind's senior bank facility and the second
lien notes issued by Wind Finance SL S.A. at 'BB+' respectively.

On June 22, 2009, The Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services said that it has affirmed
its 'BB-' long-term corporate credit rating on Italy's second-
largest integrated alternative telecoms operator, Wind
Telecomunicazioni SpA.  S&P said the outlook is stable.  At the
same time, Standard & Poor's affirmed its 'BB' ratings on Wind's
senior secured and second-lien bonds, and its 'BB-' ratings on the
third-lien notes issued by Wind Acquisition Finance S.A.  The
recovery ratings were unchanged at '2' on the secured debt and '4'
on the existing subordinated debt.


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


STUDIO PROF: Creditors Must File Claims by August 29
----------------------------------------------------
LLC Studio Prof Design is currently undergoing liquidation.
Creditors have until August 29, 2009, to submit proofs of claim
to:

         Ordjonikidze Str. 183
         Bishkek
         Kyrgyzstan


===========
L A T V I A
===========


DIGITALAIS LATVIJAS: Court Acquits Suspects on Liquidation
----------------------------------------------------------
Alla Petrova at The Baltic Course reports that the Riga Central
District Court acquitted all suspects in the criminal case on
liquidation of Digitalais Latvijas radio un televizijas centrs
(Digital Latvian Radio and Television Center, DLRTC),
a subsidiary of the Latvijas Valsts radio un televizijas centrs
(Latvian State Radio and Television Center, LVRTC).

Citing LETA, the report says the prosecutor intends to appeal the
decision.

DLRTC, the report discloses, had been liquidated in October 2007.
The report recalls the Prosecutor General's Office launched
investigation into the liquidation of DLRTC, and in January 2008
opened a criminal case on suspected criminal offenses during the
liquidation of the company.  The report recounts LVRTC board
members Dzintars Zarins, Janis Bokta and Andris Korlass, former
LVRTC board member Uldis Lavrinovics and former LVRTC acting
chairman of the board Maris Rutks were charged with using official
position in bad faith, while DLRTC liquidator Andris Rukmanis was
charged with use of and exceeding authority in bad faith and with
violation of provisions regarding accounting and statistical
information.


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


E-MAC 2007-NHG II: Moody's Confirms 'Ba3' Rating on Class B Notes
-----------------------------------------------------------------
Moody's Investors Service has concluded the review of 12 Dutch
RMBS transactions fully backed by NHG guaranteed mortgage loans,
which had been placed on review for possible downgrade on 17 March
2009.  Notes issued by these transactions are affected:

  -- DARTS Finance B.V.
  -- DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)
  -- E-MAC NL 2005-NHG II B.V.
  -- E-MAC NL 2006-NHG I B.V.
  -- E-MAC Program B.V. / Compartment NL 2007-NHG II
  -- E-MAC Program B.V. / Compartment NL 2007-NHG V
  -- PEARL Mortgage Backed Securities 1 B.V.
  -- PEARL Mortgage Backed Securities 2 B.V.
  -- SOLID 2005-1 B.V.
  -- STRONG 2005 B.V.
  -- STRONG 2006 B.V.
  -- STRONG 2007 B.V.

For this review, "Moody's Updated Approach to NHG Mortgages in
Rating Dutch RMBS" was used.  As outlined in this methodology
update published on March 17, 2009, the refinements to Moody's
MILAN model for mortgages with a guarantee under the "Nationale
Hypotheek Garantie" result in higher required credit enhancement
levels for Dutch RMBS pools backed by NHG mortgage loans.

The actions are the result of the methodology update in March and
are not prompted by the performance of the underlying mortgage
loans, nor by recent changes in the terms and conditions of the
NHG guarantee.  Overall, the Affected Transactions have performed
in line with Moody's expectations so far.

The Affected Transactions were flagged by Moody's and all classes
of rated notes were placed on review for possible downgrade on 17
March 2009.  On June 26, 2009, Moody's took action on Candide
Financing 2007 NHG B.V. and on July 6, 2009, Moody's took action
on Sound I B.V. and Sound II B.V, which were also placed on review
for possible downgrade in March.  Please refer to the press
releases dated June 26, 2009 and July 6,2009 for details on these
actions.  The actions conclude the detailed review of all the
transactions put on review on March 17, 2009.

                Milan and Portfolio Expected Loss

Following the methodology update, Moody's has assessed loan-by-
loan information of the outstanding portfolios of the Affected
Transactions to determine the increase in credit support needed
for a Aaa-rated senior note and the volatility of future losses.
Besides loan-by-loan information, Moody's requested loan-by-loan
data on claims made to WEW under the NHG guarantee.  In case the
average pay-out ratio of these claims was worse than the average
Moody's observes in the Dutch market, Moody's made additional
adjustments for the rescission rate assumptions in the MILAN
modelling.

                             Set-Off

For most transactions, Moody's was provided with loan-by-loan
information on insurance companies linked to mortgage loans.
Based on this data, Moody's was able to construct a distribution
of insurance companies.  Moody's used this distribution of
insurance companies and the relating exposure information in a
Monte Carlo simulation simulating the defaults of the insurance
companies, resulting in losses for the transaction due to set-off.
Moody's notes that losses due to set-off are not included in the
realised loss definition and therefore Moody's assumed in the cash
flow modelling that set-off losses would crystallise at the end of
the transaction.

Besides using the outcome of the Monte Carlo simulation in the
cash flow model, Moody's also focused on the proportion of loan
parts linked to unrated insurance companies in comparison to the
available credit enhancement under the Class A notes.  The form
and amount of available credit enhancement has been an important
factor in the analysis of the Affected Transactions.

                        Darts Transactions

Moody's did not receive updated loan-by-loan pool data on Darts
2004 and Darts 2005.  For the MILAN analysis, Moody's therefore
used the closing pool data and applied conservative adjustments
based on the most recent investor reports, reflecting changes in
pool composition and arrears.  Furthermore Moody's did not receive
historical data on claims made to WEW under the NHG guarantee.
Therefore, Moody's used a conservative rescission rate assumption
in the MILAN analysis.

According to the transaction documentation, the insurance company
providing the life insurance policies for the insurance linked
loans is Delta Lloyd Levensverzekering N.V.  Moody's used this
information in assessing the set-off risk on the life insurance
mortgage loans.

Darts 2004 benefits from a 1.00% reserve fund, which does not
amortise over the life of the transaction.  Darts 2005 benefits
from a 1.25% reserve fund, which amortises to 1.25% of the class A
notes with a floor of 0.25% of the class A notes at closing.  In
Moody's view the amortising nature of the reserve fund in Darts
2005 makes this transaction weaker compared to Darts 2004, which
is reflected in the difference between the ratings of the class A
notes of Darts 2004 and Darts 2005.

                        Emac Transactions

Based on information provided by the servicer, with regards to
claims made to WEW under the NHG guarantee, Moody's applied a
higher rescission rate assumption in the MILAN modelling.

EMAC 2005-NHG II benefits from a non amortizing reserve fund,
currently 0.86% of the class A notes.  9.2% of current balance of
the mortgage loan pool is linked to unrated (or unknown) insurance
companies, which is high compared to the currently available
credit enhancement in the form of the reserve fund.  This is
reflected in the rating assigned to the class A notes.

EMAC 2006-NHG I benefits from an amortizing reserve fund.
Starting in July 2009, the reserve fund will amortize to 0.90% of
the class A notes with a floor of 0.30% of the original balance of
the class A notes at closing.  7.9% of current balance is linked
to unrated (or unknown) insurance companies, which is also very
high compared to the available credit enhancement over time.  The
total exposure to insurance linked mortgage loans is however lower
when compared to EMAC 2005-NHG II as is the exposure to unrated
insurance companies.  Overall, in Moody's opinion the credit
quality of the class A notes of EMAC 2005-NHG II and EMAC 2006-NHG
I are similar, but worse than in EMAC 2007-NHG II and EMAC 2007-
NHG V.

EMAC 2007-NHG II also benefits from an amortizing reserve fund.
Starting July 2010 the reserve fund will amortize to 1.2% of the
class A notes with a floor of 0.30% of the original balance of the
class A notes at closing.  Compared to EMAC 2005-NHG II and EMAC
2006-NHG I, the proportion of the current balance linked to
unrated insurance companies (4.3%) is smaller, which is reflected
in a higher rating assigned to the class A notes.

The reserve fund of EMAC 2007-NHG V starts amortizing in January
2011.  The floor of the reserve fund however is, compared to EMAC
2006-NHG I and EMAC 2007-NHG II, higher at 0.75% of the original
balance of the class A notes at closing.  The combination of the
higher reserve fund floor and the proportion of the current
balance linked to unrated insurance companies at 6.0% is reflected
in the rating assigned to the class A notes.

                        Pearl Transactions

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was not able to provide loan-by-loan information on
insurance companies linked to loan parts, however Moody's were
provided with aggregated data on insurance company counterparties
on parts of the pool.  Moody's used this data to conservatively
assume a distribution of insurance companies for the purpose of
the Monte Carlo simulation.

Both transactions benefit from subordination under the class A
notes of 1.35% and 1.00% respectively for Pearl 1 and Pearl 2.
The form and amount of the credit enhancement under the class A
for Pearl 1 and Pearl 2 is reflected in the ratings assigned to
the class A notes.

                        Solid Transaction

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was also not able to provide loan-by-loan insurance
company data.  However, based on the business model of the
originator, Moody's assumed that the majority of insurance
companies linked to life insurance mortgage loans would be ASR
Levensverzekering N.V.  entities.

Solid 2005-1 currently has a reserve fund of EUR 18,000.  The
reserve fund will increase to EUR 1,000,000 (equivalent to 0.17%
of the balance of the class A notes at closing) when the class A
note amortizes down to 20% of the class A balance at closing.
This amount of credit enhancement ranks amongst the lowest of the
Affected Transactions reviewed and offers very little protection
in case of set-off on life insurance mortgage loans.  This is the
main driver for the A1 rating assigned to the class A notes.

                       Strong Transactions

The loan-by-loan data on claims made to WEW under the NHG
guarantee, received from the servicer, shows a pay-out ratio,
which is worse than the average Moody's observes in the Dutch
market.  Moody's therefore applied a higher rescission rate
assumption in the MILAN analysis.

Like the Solid 2005-1, the Strong transactions have a very small
reserve fund.  In Strong 2005 the reserve fund will increase to
EUR 1,000,000 (equivalent to 0.10% of the balance of the class A
notes at closing) when the outstanding amount of the class A notes
reaches 20% of the closing balance.  In Strong 2006 and Strong
2007 reserve fund build-up (to a similar level) is also triggered
when the transaction reaches the first optional redemption date
(December 2016 and November 2017 for Strong 2006 and Strong 2007
respectively).  This amount of credit enhancement is the lowest of
the Affected Transactions reviewed.

The combination of the very low level of credit enhancement and
the proportion of the current balance linked to unrated insurance
companies in Strong 2005, Strong 2006 and Strong 2007 of
respectively 3.5%, 2.8% and 3.8%, is reflected in the rating
assigned to the class A notes of these transactions.

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

Issuer: DARTS Finance B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)

  -- Class A, Downgraded to Aa1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2005-NHG II B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2006-NHG I B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG II

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and Placed Under Review for Possible
     Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG V

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     placed under review for possible downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and placed under review for possible
     downgrade.

Issuer: PEARL Mortgage Backed Securities 1 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: PEARL Mortgage Backed Securities 2 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: SOLID 2005-1 B.V.

  -- Class A, Downgraded to A1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2005 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2006 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2007 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.


E-MAC 2007-NHG V: Moody's Confirms 'Ba3' Rating on Class B Notes
----------------------------------------------------------------
Moody's Investors Service has concluded the review of 12 Dutch
RMBS transactions fully backed by NHG guaranteed mortgage loans,
which had been placed on review for possible downgrade on 17 March
2009.  Notes issued by these transactions are affected:

  -- DARTS Finance B.V.
  -- DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)
  -- E-MAC NL 2005-NHG II B.V.
  -- E-MAC NL 2006-NHG I B.V.
  -- E-MAC Program B.V. / Compartment NL 2007-NHG II
  -- E-MAC Program B.V. / Compartment NL 2007-NHG V
  -- PEARL Mortgage Backed Securities 1 B.V.
  -- PEARL Mortgage Backed Securities 2 B.V.
  -- SOLID 2005-1 B.V.
  -- STRONG 2005 B.V.
  -- STRONG 2006 B.V.
  -- STRONG 2007 B.V.

For this review, "Moody's Updated Approach to NHG Mortgages in
Rating Dutch RMBS" was used.  As outlined in this methodology
update published on March 17, 2009, the refinements to Moody's
MILAN model for mortgages with a guarantee under the "Nationale
Hypotheek Garantie" result in higher required credit enhancement
levels for Dutch RMBS pools backed by NHG mortgage loans.

The actions are the result of the methodology update in March and
are not prompted by the performance of the underlying mortgage
loans, nor by recent changes in the terms and conditions of the
NHG guarantee.  Overall, the Affected Transactions have performed
in line with Moody's expectations so far.

The Affected Transactions were flagged by Moody's and all classes
of rated notes were placed on review for possible downgrade on 17
March 2009.  On June 26, 2009, Moody's took action on Candide
Financing 2007 NHG B.V. and on July 6, 2009, Moody's took action
on Sound I B.V. and Sound II B.V, which were also placed on review
for possible downgrade in March.  Please refer to the press
releases dated June 26, 2009 and July 6,2009 for details on these
actions.  The actions conclude the detailed review of all the
transactions put on review on March 17, 2009.

                Milan and Portfolio Expected Loss

Following the methodology update, Moody's has assessed loan-by-
loan information of the outstanding portfolios of the Affected
Transactions to determine the increase in credit support needed
for a Aaa-rated senior note and the volatility of future losses.
Besides loan-by-loan information, Moody's requested loan-by-loan
data on claims made to WEW under the NHG guarantee.  In case the
average pay-out ratio of these claims was worse than the average
Moody's observes in the Dutch market, Moody's made additional
adjustments for the rescission rate assumptions in the MILAN
modelling.

                             Set-Off

For most transactions, Moody's was provided with loan-by-loan
information on insurance companies linked to mortgage loans.
Based on this data, Moody's was able to construct a distribution
of insurance companies.  Moody's used this distribution of
insurance companies and the relating exposure information in a
Monte Carlo simulation simulating the defaults of the insurance
companies, resulting in losses for the transaction due to set-off.
Moody's notes that losses due to set-off are not included in the
realised loss definition and therefore Moody's assumed in the cash
flow modelling that set-off losses would crystallise at the end of
the transaction.

Besides using the outcome of the Monte Carlo simulation in the
cash flow model, Moody's also focused on the proportion of loan
parts linked to unrated insurance companies in comparison to the
available credit enhancement under the Class A notes.  The form
and amount of available credit enhancement has been an important
factor in the analysis of the Affected Transactions.

                        Darts Transactions

Moody's did not receive updated loan-by-loan pool data on Darts
2004 and Darts 2005.  For the MILAN analysis, Moody's therefore
used the closing pool data and applied conservative adjustments
based on the most recent investor reports, reflecting changes in
pool composition and arrears.  Furthermore Moody's did not receive
historical data on claims made to WEW under the NHG guarantee.
Therefore, Moody's used a conservative rescission rate assumption
in the MILAN analysis.

According to the transaction documentation, the insurance company
providing the life insurance policies for the insurance linked
loans is Delta Lloyd Levensverzekering N.V.  Moody's used this
information in assessing the set-off risk on the life insurance
mortgage loans.

Darts 2004 benefits from a 1.00% reserve fund, which does not
amortise over the life of the transaction.  Darts 2005 benefits
from a 1.25% reserve fund, which amortises to 1.25% of the class A
notes with a floor of 0.25% of the class A notes at closing.  In
Moody's view the amortising nature of the reserve fund in Darts
2005 makes this transaction weaker compared to Darts 2004, which
is reflected in the difference between the ratings of the class A
notes of Darts 2004 and Darts 2005.

                        Emac Transactions

Based on information provided by the servicer, with regards to
claims made to WEW under the NHG guarantee, Moody's applied a
higher rescission rate assumption in the MILAN modelling.

EMAC 2005-NHG II benefits from a non amortizing reserve fund,
currently 0.86% of the class A notes.  9.2% of current balance of
the mortgage loan pool is linked to unrated (or unknown) insurance
companies, which is high compared to the currently available
credit enhancement in the form of the reserve fund.  This is
reflected in the rating assigned to the class A notes.

EMAC 2006-NHG I benefits from an amortizing reserve fund.
Starting in July 2009, the reserve fund will amortize to 0.90% of
the class A notes with a floor of 0.30% of the original balance of
the class A notes at closing.  7.9% of current balance is linked
to unrated (or unknown) insurance companies, which is also very
high compared to the available credit enhancement over time.  The
total exposure to insurance linked mortgage loans is however lower
when compared to EMAC 2005-NHG II as is the exposure to unrated
insurance companies.  Overall, in Moody's opinion the credit
quality of the class A notes of EMAC 2005-NHG II and EMAC 2006-NHG
I are similar, but worse than in EMAC 2007-NHG II and EMAC 2007-
NHG V.

EMAC 2007-NHG II also benefits from an amortizing reserve fund.
Starting July 2010 the reserve fund will amortize to 1.2% of the
class A notes with a floor of 0.30% of the original balance of the
class A notes at closing.  Compared to EMAC 2005-NHG II and EMAC
2006-NHG I, the proportion of the current balance linked to
unrated insurance companies (4.3%) is smaller, which is reflected
in a higher rating assigned to the class A notes.

The reserve fund of EMAC 2007-NHG V starts amortizing in January
2011.  The floor of the reserve fund however is, compared to EMAC
2006-NHG I and EMAC 2007-NHG II, higher at 0.75% of the original
balance of the class A notes at closing.  The combination of the
higher reserve fund floor and the proportion of the current
balance linked to unrated insurance companies at 6.0% is reflected
in the rating assigned to the class A notes.

                        Pearl Transactions

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was not able to provide loan-by-loan information on
insurance companies linked to loan parts, however Moody's were
provided with aggregated data on insurance company counterparties
on parts of the pool.  Moody's used this data to conservatively
assume a distribution of insurance companies for the purpose of
the Monte Carlo simulation.

Both transactions benefit from subordination under the class A
notes of 1.35% and 1.00% respectively for Pearl 1 and Pearl 2.
The form and amount of the credit enhancement under the class A
for Pearl 1 and Pearl 2 is reflected in the ratings assigned to
the class A notes.

                        Solid Transaction

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was also not able to provide loan-by-loan insurance
company data.  However, based on the business model of the
originator, Moody's assumed that the majority of insurance
companies linked to life insurance mortgage loans would be ASR
Levensverzekering N.V.  entities.

Solid 2005-1 currently has a reserve fund of EUR 18,000.  The
reserve fund will increase to EUR 1,000,000 (equivalent to 0.17%
of the balance of the class A notes at closing) when the class A
note amortizes down to 20% of the class A balance at closing.
This amount of credit enhancement ranks amongst the lowest of the
Affected Transactions reviewed and offers very little protection
in case of set-off on life insurance mortgage loans.  This is the
main driver for the A1 rating assigned to the class A notes.

                       Strong Transactions

The loan-by-loan data on claims made to WEW under the NHG
guarantee, received from the servicer, shows a pay-out ratio,
which is worse than the average Moody's observes in the Dutch
market.  Moody's therefore applied a higher rescission rate
assumption in the MILAN analysis.

Like the Solid 2005-1, the Strong transactions have a very small
reserve fund.  In Strong 2005 the reserve fund will increase to
EUR 1,000,000 (equivalent to 0.10% of the balance of the class A
notes at closing) when the outstanding amount of the class A notes
reaches 20% of the closing balance.  In Strong 2006 and Strong
2007 reserve fund build-up (to a similar level) is also triggered
when the transaction reaches the first optional redemption date
(December 2016 and November 2017 for Strong 2006 and Strong 2007
respectively).  This amount of credit enhancement is the lowest of
the Affected Transactions reviewed.

The combination of the very low level of credit enhancement and
the proportion of the current balance linked to unrated insurance
companies in Strong 2005, Strong 2006 and Strong 2007 of
respectively 3.5%, 2.8% and 3.8%, is reflected in the rating
assigned to the class A notes of these transactions.

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

Issuer: DARTS Finance B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)

  -- Class A, Downgraded to Aa1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2005-NHG II B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2006-NHG I B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG II

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and Placed Under Review for Possible
     Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG V

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     placed under review for possible downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and placed under review for possible
     downgrade.

Issuer: PEARL Mortgage Backed Securities 1 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: PEARL Mortgage Backed Securities 2 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: SOLID 2005-1 B.V.

  -- Class A, Downgraded to A1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2005 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2006 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2007 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.


PEARL MORTGAGE 1: Moody's Cuts Rating on Class B Notes to 'Ba2'
---------------------------------------------------------------
Moody's Investors Service has concluded the review of 12 Dutch
RMBS transactions fully backed by NHG guaranteed mortgage loans,
which had been placed on review for possible downgrade on 17 March
2009.  Notes issued by these transactions are affected:

  -- DARTS Finance B.V.
  -- DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)
  -- E-MAC NL 2005-NHG II B.V.
  -- E-MAC NL 2006-NHG I B.V.
  -- E-MAC Program B.V. / Compartment NL 2007-NHG II
  -- E-MAC Program B.V. / Compartment NL 2007-NHG V
  -- PEARL Mortgage Backed Securities 1 B.V.
  -- PEARL Mortgage Backed Securities 2 B.V.
  -- SOLID 2005-1 B.V.
  -- STRONG 2005 B.V.
  -- STRONG 2006 B.V.
  -- STRONG 2007 B.V.

For this review, "Moody's Updated Approach to NHG Mortgages in
Rating Dutch RMBS" was used.  As outlined in this methodology
update published on March 17, 2009, the refinements to Moody's
MILAN model for mortgages with a guarantee under the "Nationale
Hypotheek Garantie" result in higher required credit enhancement
levels for Dutch RMBS pools backed by NHG mortgage loans.

The actions are the result of the methodology update in March and
are not prompted by the performance of the underlying mortgage
loans, nor by recent changes in the terms and conditions of the
NHG guarantee.  Overall, the Affected Transactions have performed
in line with Moody's expectations so far.

The Affected Transactions were flagged by Moody's and all classes
of rated notes were placed on review for possible downgrade on 17
March 2009.  On June 26, 2009, Moody's took action on Candide
Financing 2007 NHG B.V. and on July 6, 2009, Moody's took action
on Sound I B.V. and Sound II B.V, which were also placed on review
for possible downgrade in March.  Please refer to the press
releases dated June 26, 2009 and July 6,2009 for details on these
actions.  The actions conclude the detailed review of all the
transactions put on review on March 17, 2009.

                Milan and Portfolio Expected Loss

Following the methodology update, Moody's has assessed loan-by-
loan information of the outstanding portfolios of the Affected
Transactions to determine the increase in credit support needed
for a Aaa-rated senior note and the volatility of future losses.
Besides loan-by-loan information, Moody's requested loan-by-loan
data on claims made to WEW under the NHG guarantee.  In case the
average pay-out ratio of these claims was worse than the average
Moody's observes in the Dutch market, Moody's made additional
adjustments for the rescission rate assumptions in the MILAN
modelling.

                             Set-Off

For most transactions, Moody's was provided with loan-by-loan
information on insurance companies linked to mortgage loans.
Based on this data, Moody's was able to construct a distribution
of insurance companies.  Moody's used this distribution of
insurance companies and the relating exposure information in a
Monte Carlo simulation simulating the defaults of the insurance
companies, resulting in losses for the transaction due to set-off.
Moody's notes that losses due to set-off are not included in the
realised loss definition and therefore Moody's assumed in the cash
flow modelling that set-off losses would crystallise at the end of
the transaction.

Besides using the outcome of the Monte Carlo simulation in the
cash flow model, Moody's also focused on the proportion of loan
parts linked to unrated insurance companies in comparison to the
available credit enhancement under the Class A notes.  The form
and amount of available credit enhancement has been an important
factor in the analysis of the Affected Transactions.

                        Darts Transactions

Moody's did not receive updated loan-by-loan pool data on Darts
2004 and Darts 2005.  For the MILAN analysis, Moody's therefore
used the closing pool data and applied conservative adjustments
based on the most recent investor reports, reflecting changes in
pool composition and arrears.  Furthermore Moody's did not receive
historical data on claims made to WEW under the NHG guarantee.
Therefore, Moody's used a conservative rescission rate assumption
in the MILAN analysis.

According to the transaction documentation, the insurance company
providing the life insurance policies for the insurance linked
loans is Delta Lloyd Levensverzekering N.V.  Moody's used this
information in assessing the set-off risk on the life insurance
mortgage loans.

Darts 2004 benefits from a 1.00% reserve fund, which does not
amortise over the life of the transaction.  Darts 2005 benefits
from a 1.25% reserve fund, which amortises to 1.25% of the class A
notes with a floor of 0.25% of the class A notes at closing.  In
Moody's view the amortising nature of the reserve fund in Darts
2005 makes this transaction weaker compared to Darts 2004, which
is reflected in the difference between the ratings of the class A
notes of Darts 2004 and Darts 2005.

                        Emac Transactions

Based on information provided by the servicer, with regards to
claims made to WEW under the NHG guarantee, Moody's applied a
higher rescission rate assumption in the MILAN modelling.

EMAC 2005-NHG II benefits from a non amortizing reserve fund,
currently 0.86% of the class A notes.  9.2% of current balance of
the mortgage loan pool is linked to unrated (or unknown) insurance
companies, which is high compared to the currently available
credit enhancement in the form of the reserve fund.  This is
reflected in the rating assigned to the class A notes.

EMAC 2006-NHG I benefits from an amortizing reserve fund.
Starting in July 2009, the reserve fund will amortize to 0.90% of
the class A notes with a floor of 0.30% of the original balance of
the class A notes at closing.  7.9% of current balance is linked
to unrated (or unknown) insurance companies, which is also very
high compared to the available credit enhancement over time.  The
total exposure to insurance linked mortgage loans is however lower
when compared to EMAC 2005-NHG II as is the exposure to unrated
insurance companies.  Overall, in Moody's opinion the credit
quality of the class A notes of EMAC 2005-NHG II and EMAC 2006-NHG
I are similar, but worse than in EMAC 2007-NHG II and EMAC 2007-
NHG V.

EMAC 2007-NHG II also benefits from an amortizing reserve fund.
Starting July 2010 the reserve fund will amortize to 1.2% of the
class A notes with a floor of 0.30% of the original balance of the
class A notes at closing.  Compared to EMAC 2005-NHG II and EMAC
2006-NHG I, the proportion of the current balance linked to
unrated insurance companies (4.3%) is smaller, which is reflected
in a higher rating assigned to the class A notes.

The reserve fund of EMAC 2007-NHG V starts amortizing in January
2011.  The floor of the reserve fund however is, compared to EMAC
2006-NHG I and EMAC 2007-NHG II, higher at 0.75% of the original
balance of the class A notes at closing.  The combination of the
higher reserve fund floor and the proportion of the current
balance linked to unrated insurance companies at 6.0% is reflected
in the rating assigned to the class A notes.

                        Pearl Transactions

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was not able to provide loan-by-loan information on
insurance companies linked to loan parts, however Moody's were
provided with aggregated data on insurance company counterparties
on parts of the pool.  Moody's used this data to conservatively
assume a distribution of insurance companies for the purpose of
the Monte Carlo simulation.

Both transactions benefit from subordination under the class A
notes of 1.35% and 1.00% respectively for Pearl 1 and Pearl 2.
The form and amount of the credit enhancement under the class A
for Pearl 1 and Pearl 2 is reflected in the ratings assigned to
the class A notes.

                        Solid Transaction

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was also not able to provide loan-by-loan insurance
company data.  However, based on the business model of the
originator, Moody's assumed that the majority of insurance
companies linked to life insurance mortgage loans would be ASR
Levensverzekering N.V.  entities.

Solid 2005-1 currently has a reserve fund of EUR 18,000.  The
reserve fund will increase to EUR 1,000,000 (equivalent to 0.17%
of the balance of the class A notes at closing) when the class A
note amortizes down to 20% of the class A balance at closing.
This amount of credit enhancement ranks amongst the lowest of the
Affected Transactions reviewed and offers very little protection
in case of set-off on life insurance mortgage loans.  This is the
main driver for the A1 rating assigned to the class A notes.

                       Strong Transactions

The loan-by-loan data on claims made to WEW under the NHG
guarantee, received from the servicer, shows a pay-out ratio,
which is worse than the average Moody's observes in the Dutch
market.  Moody's therefore applied a higher rescission rate
assumption in the MILAN analysis.

Like the Solid 2005-1, the Strong transactions have a very small
reserve fund.  In Strong 2005 the reserve fund will increase to
EUR 1,000,000 (equivalent to 0.10% of the balance of the class A
notes at closing) when the outstanding amount of the class A notes
reaches 20% of the closing balance.  In Strong 2006 and Strong
2007 reserve fund build-up (to a similar level) is also triggered
when the transaction reaches the first optional redemption date
(December 2016 and November 2017 for Strong 2006 and Strong 2007
respectively).  This amount of credit enhancement is the lowest of
the Affected Transactions reviewed.

The combination of the very low level of credit enhancement and
the proportion of the current balance linked to unrated insurance
companies in Strong 2005, Strong 2006 and Strong 2007 of
respectively 3.5%, 2.8% and 3.8%, is reflected in the rating
assigned to the class A notes of these transactions.

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

Issuer: DARTS Finance B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)

  -- Class A, Downgraded to Aa1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2005-NHG II B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2006-NHG I B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG II

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and Placed Under Review for Possible
     Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG V

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     placed under review for possible downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and placed under review for possible
     downgrade.

Issuer: PEARL Mortgage Backed Securities 1 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: PEARL Mortgage Backed Securities 2 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: SOLID 2005-1 B.V.

  -- Class A, Downgraded to A1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2005 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2006 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2007 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.


PEARL MORTGAGE 2: Moody's Lowers Rating on Class B Notes to 'Ba2'
-----------------------------------------------------------------
Moody's Investors Service has concluded the review of 12 Dutch
RMBS transactions fully backed by NHG guaranteed mortgage loans,
which had been placed on review for possible downgrade on 17 March
2009.  Notes issued by these transactions are affected:

  -- DARTS Finance B.V.
  -- DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)
  -- E-MAC NL 2005-NHG II B.V.
  -- E-MAC NL 2006-NHG I B.V.
  -- E-MAC Program B.V. / Compartment NL 2007-NHG II
  -- E-MAC Program B.V. / Compartment NL 2007-NHG V
  -- PEARL Mortgage Backed Securities 1 B.V.
  -- PEARL Mortgage Backed Securities 2 B.V.
  -- SOLID 2005-1 B.V.
  -- STRONG 2005 B.V.
  -- STRONG 2006 B.V.
  -- STRONG 2007 B.V.

For this review, "Moody's Updated Approach to NHG Mortgages in
Rating Dutch RMBS" was used.  As outlined in this methodology
update published on March 17, 2009, the refinements to Moody's
MILAN model for mortgages with a guarantee under the "Nationale
Hypotheek Garantie" result in higher required credit enhancement
levels for Dutch RMBS pools backed by NHG mortgage loans.

The actions are the result of the methodology update in March and
are not prompted by the performance of the underlying mortgage
loans, nor by recent changes in the terms and conditions of the
NHG guarantee.  Overall, the Affected Transactions have performed
in line with Moody's expectations so far.

The Affected Transactions were flagged by Moody's and all classes
of rated notes were placed on review for possible downgrade on 17
March 2009.  On June 26, 2009, Moody's took action on Candide
Financing 2007 NHG B.V. and on July 6, 2009, Moody's took action
on Sound I B.V. and Sound II B.V, which were also placed on review
for possible downgrade in March.  Please refer to the press
releases dated June 26, 2009 and July 6,2009 for details on these
actions.  The actions conclude the detailed review of all the
transactions put on review on March 17, 2009.

                Milan and Portfolio Expected Loss

Following the methodology update, Moody's has assessed loan-by-
loan information of the outstanding portfolios of the Affected
Transactions to determine the increase in credit support needed
for a Aaa-rated senior note and the volatility of future losses.
Besides loan-by-loan information, Moody's requested loan-by-loan
data on claims made to WEW under the NHG guarantee.  In case the
average pay-out ratio of these claims was worse than the average
Moody's observes in the Dutch market, Moody's made additional
adjustments for the rescission rate assumptions in the MILAN
modelling.

                             Set-Off

For most transactions, Moody's was provided with loan-by-loan
information on insurance companies linked to mortgage loans.
Based on this data, Moody's was able to construct a distribution
of insurance companies.  Moody's used this distribution of
insurance companies and the relating exposure information in a
Monte Carlo simulation simulating the defaults of the insurance
companies, resulting in losses for the transaction due to set-off.
Moody's notes that losses due to set-off are not included in the
realised loss definition and therefore Moody's assumed in the cash
flow modelling that set-off losses would crystallise at the end of
the transaction.

Besides using the outcome of the Monte Carlo simulation in the
cash flow model, Moody's also focused on the proportion of loan
parts linked to unrated insurance companies in comparison to the
available credit enhancement under the Class A notes.  The form
and amount of available credit enhancement has been an important
factor in the analysis of the Affected Transactions.

                        Darts Transactions

Moody's did not receive updated loan-by-loan pool data on Darts
2004 and Darts 2005.  For the MILAN analysis, Moody's therefore
used the closing pool data and applied conservative adjustments
based on the most recent investor reports, reflecting changes in
pool composition and arrears.  Furthermore Moody's did not receive
historical data on claims made to WEW under the NHG guarantee.
Therefore, Moody's used a conservative rescission rate assumption
in the MILAN analysis.

According to the transaction documentation, the insurance company
providing the life insurance policies for the insurance linked
loans is Delta Lloyd Levensverzekering N.V.  Moody's used this
information in assessing the set-off risk on the life insurance
mortgage loans.

Darts 2004 benefits from a 1.00% reserve fund, which does not
amortise over the life of the transaction.  Darts 2005 benefits
from a 1.25% reserve fund, which amortises to 1.25% of the class A
notes with a floor of 0.25% of the class A notes at closing.  In
Moody's view the amortising nature of the reserve fund in Darts
2005 makes this transaction weaker compared to Darts 2004, which
is reflected in the difference between the ratings of the class A
notes of Darts 2004 and Darts 2005.

                        Emac Transactions

Based on information provided by the servicer, with regards to
claims made to WEW under the NHG guarantee, Moody's applied a
higher rescission rate assumption in the MILAN modelling.

EMAC 2005-NHG II benefits from a non amortizing reserve fund,
currently 0.86% of the class A notes.  9.2% of current balance of
the mortgage loan pool is linked to unrated (or unknown) insurance
companies, which is high compared to the currently available
credit enhancement in the form of the reserve fund.  This is
reflected in the rating assigned to the class A notes.

EMAC 2006-NHG I benefits from an amortizing reserve fund.
Starting in July 2009, the reserve fund will amortize to 0.90% of
the class A notes with a floor of 0.30% of the original balance of
the class A notes at closing.  7.9% of current balance is linked
to unrated (or unknown) insurance companies, which is also very
high compared to the available credit enhancement over time.  The
total exposure to insurance linked mortgage loans is however lower
when compared to EMAC 2005-NHG II as is the exposure to unrated
insurance companies.  Overall, in Moody's opinion the credit
quality of the class A notes of EMAC 2005-NHG II and EMAC 2006-NHG
I are similar, but worse than in EMAC 2007-NHG II and EMAC 2007-
NHG V.

EMAC 2007-NHG II also benefits from an amortizing reserve fund.
Starting July 2010 the reserve fund will amortize to 1.2% of the
class A notes with a floor of 0.30% of the original balance of the
class A notes at closing.  Compared to EMAC 2005-NHG II and EMAC
2006-NHG I, the proportion of the current balance linked to
unrated insurance companies (4.3%) is smaller, which is reflected
in a higher rating assigned to the class A notes.

The reserve fund of EMAC 2007-NHG V starts amortizing in January
2011.  The floor of the reserve fund however is, compared to EMAC
2006-NHG I and EMAC 2007-NHG II, higher at 0.75% of the original
balance of the class A notes at closing.  The combination of the
higher reserve fund floor and the proportion of the current
balance linked to unrated insurance companies at 6.0% is reflected
in the rating assigned to the class A notes.

                        Pearl Transactions

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was not able to provide loan-by-loan information on
insurance companies linked to loan parts, however Moody's were
provided with aggregated data on insurance company counterparties
on parts of the pool.  Moody's used this data to conservatively
assume a distribution of insurance companies for the purpose of
the Monte Carlo simulation.

Both transactions benefit from subordination under the class A
notes of 1.35% and 1.00% respectively for Pearl 1 and Pearl 2.
The form and amount of the credit enhancement under the class A
for Pearl 1 and Pearl 2 is reflected in the ratings assigned to
the class A notes.

                        Solid Transaction

The servicer provided Moody's with historical information on pay-
out of claims made to WEW.  The average pay-out ratio is worse
than the average Moody's observes in the Dutch market, which
resulted in a higher rescission rate assumption in the MILAN
analysis.

The servicer was also not able to provide loan-by-loan insurance
company data.  However, based on the business model of the
originator, Moody's assumed that the majority of insurance
companies linked to life insurance mortgage loans would be ASR
Levensverzekering N.V.  entities.

Solid 2005-1 currently has a reserve fund of EUR 18,000.  The
reserve fund will increase to EUR 1,000,000 (equivalent to 0.17%
of the balance of the class A notes at closing) when the class A
note amortizes down to 20% of the class A balance at closing.
This amount of credit enhancement ranks amongst the lowest of the
Affected Transactions reviewed and offers very little protection
in case of set-off on life insurance mortgage loans.  This is the
main driver for the A1 rating assigned to the class A notes.

                       Strong Transactions

The loan-by-loan data on claims made to WEW under the NHG
guarantee, received from the servicer, shows a pay-out ratio,
which is worse than the average Moody's observes in the Dutch
market.  Moody's therefore applied a higher rescission rate
assumption in the MILAN analysis.

Like the Solid 2005-1, the Strong transactions have a very small
reserve fund.  In Strong 2005 the reserve fund will increase to
EUR 1,000,000 (equivalent to 0.10% of the balance of the class A
notes at closing) when the outstanding amount of the class A notes
reaches 20% of the closing balance.  In Strong 2006 and Strong
2007 reserve fund build-up (to a similar level) is also triggered
when the transaction reaches the first optional redemption date
(December 2016 and November 2017 for Strong 2006 and Strong 2007
respectively).  This amount of credit enhancement is the lowest of
the Affected Transactions reviewed.

The combination of the very low level of credit enhancement and
the proportion of the current balance linked to unrated insurance
companies in Strong 2005, Strong 2006 and Strong 2007 of
respectively 3.5%, 2.8% and 3.8%, is reflected in the rating
assigned to the class A notes of these transactions.

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

Issuer: DARTS Finance B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: DARTS Finance B.V. (Amstelhuys 2005 NHG portfolio)

  -- Class A, Downgraded to Aa1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2005-NHG II B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC NL 2006-NHG I B.V.

  -- Class A, Downgraded to A1; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG II

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and Placed Under Review for Possible
     Downgrade.

Issuer: E-MAC Program B.V. / Compartment NL 2007-NHG V

  -- Class A, Downgraded to Aa3; previously on 10 July 2008 Aaa
     placed under review for possible downgrade; and

  -- Class B, Confirmed at Ba3; previously on 10 July 2008
     Downgraded to Ba3 and placed under review for possible
     downgrade.

Issuer: PEARL Mortgage Backed Securities 1 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: PEARL Mortgage Backed Securities 2 B.V.

  -- Class A, Downgraded to Aa2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade; and

  -- Class B, Downgraded to Ba2; previously on 17 March 2009 Baa2
     Placed Under Review for Possible Downgrade.

Issuer: SOLID 2005-1 B.V.

  -- Class A, Downgraded to A1; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2005 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2006 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.

Issuer: STRONG 2007 B.V.

  -- Class A, Downgraded to A2; previously on 17 March 2009 Aaa
     Placed Under Review for Possible Downgrade.


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


TOFAN GROUP: Enters Bankruptcy Proceedings
------------------------------------------
IntelliNews Today, citing Wall Street Online, reports that Tofan
Grup International, the Romanian diversified industrial group,
entered bankruptcy proceedings.  IntelliNews relates many of its
companies started similar procedures since last year.


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


MDM BANK: Moody's Withdraws 'D' Bank Financial Strength Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn the D bank financial
strength rating and Ba2/Not Prime deposit ratings of the stand-
alone entity MDM Bank ("the pre-merger MDM") which ceased to exist
as a separate entity on 7 August 2009 following the finalisation
of its legal merger with URSA Bank, whereby a new combined entity
("the merged MDM") has been created and is currently rated by
Moody's at D/Ba2/Not Prime/Aa2.ru.

At the same time, Moody's notes that some of the pre-merger MDM's
Moody's rated debt remains outstanding, namely (1) senior
unsecured loan participation notes in the outstanding amount of
US$289 million maturing on 25 January 2010, and (2) subordinated
loan participation notes in the amount of US$200 million maturing
on 21 July 2011.  The merged MDM has assumed all the obligations
of the pre-merger MDM including the aforementioned loan
participation notes.

Therefore, the rating agency will continue to maintain the pre-
merger MDM's debt ratings at the level of the merged MDM's debt
ratings -- Ba2 senior unsecured debt rating and Ba3 subordinated
debt rating -- until the aforementioned debt instruments mature.
Moody's has withdrawn the pre-merger MDM's Not Prime short-term
debt rating, as the pre-merger MDM did not have any outstanding
short-term market instruments at the time of its merger with URSA.

Moody's previous rating action on the pre-merger MDM was
implemented on 10 August 2008 when the rating agency downgraded
the pre-merger MDM's ratings to D/Ba2/Not Prime from D+/Ba1/Not
Prime, while simultaneously downgrading the pre-merger MDM's
senior unsecured and subordinate debt ratings to Ba2 and Ba3,
respectively, from Ba1 and Ba2, respectively.  At that time, the
outlook assigned on all of the bank's ratings was negative.
Concurrently, Moody's assigned D/Ba2/Not Prime/Aa2.ru ratings to
the combined entity -- the merged MDM -- created via a merger of
the pre-merger MDM and URSA.  The outlook assigned on all of the
merged MDM's ratings is negative.

Headquartered in the city of Novosibirsk, the Russian Federation,
the merged MDM ranks 11th by total assets among all Russian banks
and second among privately owned institutions.  As per the IFRS
pro-forma statements, at Q1 2009 the merged banks (MDM and URSA)
reported combined consolidated assets of RUB511.6 billion
(US$15.0 billion) and combined shareholders' equity of
RUB69.6 billion (US$2.0 billion).  The combined net income of the
merged institutions for Q1 2009 totalled RUB469 million
(US$13.8 million).


SOUTHERN TELECOM: Secures RUR3 Billion Credit Line
--------------------------------------------------
Southern Telecommunications Company PJSC secured a RUR3 billion
(US$92.9 million) credit line from Bank of Moscow, Maria Kiselyova
at Reuters reports.

Reuters relates the company, which needs funds to refinance debts
and finance operations, said it would pay 15.64% interest on the
credit facility.

Yuzhnaya telekommunikatsionnaya kompaniya OAO (YuTK OAO or UTK
PJSC or Southern Telecommunications Company PJSC) --
http://www.stcompany.ru/-- is a Russia-based regional
telecommunications company.  It provides a range of
telecommunications services in the Southern Federal District of
Russia.  It has in its offer fixed-line services including local,
domestic and international long-distance telephony; value-added
telecom services including Internet access; Paging; Integrated
Services Digital Network (ISDN) and intelligent networks; cable
television and call centers, and other telecom services, such as
document communication, wired radio broadcasting and lease of
channels.  The Company operates through 10 branches, seven wholly
owned subsidiaries and seven affiliated companies.  It is a part
of Svyaz'invest OAO.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on June 24,
2009, Standard & Poor's Ratings Services said that it had affirmed
its 'B' long-term corporate credit and 'ruA-' national scale
ratings on Russian regional telecommunications operator Southern
Telecommunications Co. and removed them from CreditWatch with
negative implications, where they had been placed on March 2,
2009.  The outlook, which was stable before the CreditWatch
placement, is now negative.


===========
S W E D E N
===========


GENERAL MOTORS: Saab Wants to End Reorganization After Sale Deal
----------------------------------------------------------------
Kim McLaughlin at Bloomberg News reports that Swedish news agency
TT, citing court documents, said Saab Automobile has asked a court
to end six months of reorganization following an agreement to sell
the carmaker to Koenigsegg Automotive AB.

Bloomberg relates Saab reconstruction lawyer Guy Lofalk submitted
a document to the district court in Vaenersborg in Sweden
yesterday outlining that the company doesn't want an extension.
According to Bloomberg, TT said the document states that creditors
have agreed to write down about SEK8.3 billion (US$1.2 billion) of
debt.

According to Bloomberg, TT said without an extension, the
reorganization will end today Aug. 20.

                              Sale

Niklas Magnusson at Bloomberg News reports Koenigsegg agreed to
buy Saab from General Motors Co. by the end of the year to become
a mass-market manufacturer.

Citing two people familiar with the situation, Bloomberg discloses
Koenigsegg, the maker of the CCX and CCXR models, still must
secure about US$300 million in funding to complete Saab's
purchase.   Bloomberg recalls GM said in June that Saab's sale
depends on the division receiving a US$600 million loan from the
EIB.

Christian von Koenigsegg, chief executive officer of Koenigsegg,
told Bloomberg the sports-car maker has secured 70% of the
financing it needs for the purchase and wants the government to
guarantee or provide a bridge loan secured by Saab's assets to
raise the remainder in the next few months.  Bloomberg says the
bridge loan would be in addition to the US$600 million EIB lending
that Koenigsegg wants Sweden to guarantee.

                        Creditor Protection

On Feb. 23, 2009, the Troubled Company Reporter Europe, citing
Bloomberg News, reported Saab filed for protection from creditors
after parent GM said it will cut ties with the Swedish carmaker
following two decades of losses.  The Trollhaettan, Sweden-based
company filed for reorganization with a Swedish district court to
separate itself from GM and bring resources back to Sweden.

As report in the TCR on June 25, 2009, The Wall Street Journal
said creditors of Saab approved the automakers' proposal for
settling its debts by paying a quarter of what it originally owed.
Saab proposed to settle its debts by paying 25% of about US$1.34
billion it owed to more than 600 creditors, including auto
suppliers and the Swedish government.  The vast majority of the
debt, almost SEK10 billion, was owed to GM.

                       About Saab Automobile

Saab Automobile AB -- http://www.saab.com-- is a wholly owned
subsidiary of General Motors.  With an annual production of up to
126,000 cars, Saab's current models include the 9-3 (available as
a convertible or sport sedan), the luxury 9-5 sedan (also
available in a sport wagon), and the seven-passenger 9-7X SUV.
Offered only through Saab Expressions dealerships, Saab cars woo
enthusiasts with merchandising that includes pen and pencil sets,
martini glasses, toys, and watches.

                       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)


SAAB AUTOMOBILE: Wants to End Reorganization After Sale Deal
------------------------------------------------------------
Kim McLaughlin at Bloomberg News reports that Swedish news agency
TT, citing court documents, said Saab Automobile has asked a court
to end six months of reorganization following an agreement to sell
the carmaker to Koenigsegg Automotive AB.

Bloomberg relates Saab reconstruction lawyer Guy Lofalk submitted
a document to the district court in Vaenersborg in Sweden
yesterday outlining that the company doesn't want an extension.
According to Bloomberg, TT said the document states that creditors
have agreed to write down about SEK8.3 billion (US$1.2 billion) of
debt.

According to Bloomberg, TT said without an extension, the
reorganization will end today Aug. 20.

                              Sale

Niklas Magnusson at Bloomberg News reports Koenigsegg agreed to
buy Saab from General Motors Co. by the end of the year to become
a mass-market manufacturer.

Citing two people familiar with the situation, Bloomberg discloses
Koenigsegg, the maker of the CCX and CCXR models, still must
secure about US$300 million in funding to complete Saab's
purchase.   Bloomberg recalls GM said in June that Saab's sale
depends on the division receiving a US$600 million loan from the
EIB.

Christian von Koenigsegg, chief executive officer of Koenigsegg,
told Bloomberg the sports-car maker has secured 70% of the
financing it needs for the purchase and wants the government to
guarantee or provide a bridge loan secured by Saab's assets to
raise the remainder in the next few months.  Bloomberg says the
bridge loan would be in addition to the US$600 million EIB lending
that Koenigsegg wants Sweden to guarantee.

                      Creditor Protection

On Feb. 23, 2009, the Troubled Company Reporter Europe, citing
Bloomberg News, reported Saab filed for protection from creditors
after parent GM said it will cut ties with the Swedish carmaker
following two decades of losses.  The Trollhaettan, Sweden-based
company filed for reorganization with a Swedish district court to
separate itself from GM and bring resources back to Sweden.

As report in the TCR on June 25, 2009, The Wall Street Journal
said creditors of Saab approved the automakers' proposal for
settling its debts by paying a quarter of what it originally owed.
Saab proposed to settle its debts by paying 25% of about US$1.34
billion it owed to more than 600 creditors, including auto
suppliers and the Swedish government.  The vast majority of the
debt, almost SEK10 billion, was owed to GM.

Saab Automobile AB -- http://www.saab.com-- is a wholly owned
subsidiary of General Motors.  With an annual production of up to
126,000 cars, Saab's current models include the 9-3 (available as
a convertible or sport sedan), the luxury 9-5 sedan (also
available in a sport wagon), and the seven-passenger 9-7X SUV.
Offered only through Saab Expressions dealerships, Saab cars woo
enthusiasts with merchandising that includes pen and pencil sets,
martini glasses, toys, and watches.


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


CRYSTAL LLC: Creditors Must File Claims by August 22
----------------------------------------------------
Creditors of LLC Trading Company Crystal (code EDRPOU 30207119)
have until August 22, 2009, to submit proofs of claim to:

         S. Kitayev
         Insolvency Manager
         Office 70
         Zorka Micro District 9
         Yasinovataya
         86008 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company on April 23, 2009.  The case is docketed under
Case No. 27/81B.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Trading Company Crystal
         Shmidt Str. 3
         Konstantinovka
         Donetsk
         Ukraine


FOLIA LLC: Creditors Must File Claims by August 23
--------------------------------------------------
Creditors of LLC Folia (code EDRPOU 30505955) have until
August 23, 2009, to submit proofs of claim to:

         N. Martinenko
         Insolvency Manager
         Office 5
         Mayakovsky Ave. 12
         69035 Zaporozhye
         Ukraine

The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company on July 13, 2009.  The case is docketed under
Case No. 26/41/09.

The Court is located at:

         The Economic Court of Zaporozhye
         Shaumian Str. 4
         69600 Zaporozhye
         Ukraine

The Debtor can be reached at:

         LLC Folia
         12th of April Str. 5/1
         69037 Zaporozhye
         Ukraine


HANNA-MARIA LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Economic Court of Lvov commenced bankruptcy supervision
procedure on LLC Hanaa-Maria (code EDRPOU 31001601).

The Insolvency Manager is:

         V. Solsky
         Velichkovsky Str. 44/24
         Lvov
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         LLC Hanaa-Maria
         Zimna Voda
         Pustomitovsky
         81110 Lvov
         Ukraine


NATIONAL STANDARD: NBU Initiates Liquidation Proceedings
--------------------------------------------------------
The FINANCIAL reports that the National Bank of Ukraine has
decided to liquidate Kyiv-based National Standard bank (formerly
Slavutych).

The FINANCIAL relates Vasyl Pasechnyk, executive director of the
central bank's regulation directorate, told the Ukrainian News
agency the decision is stipulated by the loss of the bank's paying
capacity.

Citing Ukrainian News, the FINANCIAL discloses the central bank
took the National Standard bank into administration for one year
on May 15, and appointed independent expert Heorhii Shushpanov the
administrator of the bank.


ORIGINAL GOODS: Creditors Must File Claims by August 22
-------------------------------------------------------
Creditors of LLC Original Goods (code EDRPOU 21744153) have until
August 22, 2009, to submit proofs of claim to:

         A. Ischuk
         Insolvency Manager
         Vishnevaya Str. 20
         Zmeinets
         Lutsk
         Ukraine

The Economic Court of Volin commenced bankruptcy proceedings
against the company.  The case is docketed under Case No. 1/64-b.

The Court is located at:

         The Economic Court of Volin
         Volia Ave. 54-A
         43010 Lutsk
         Ukraine

The Debtor can be reached at:

         LLC Original Goods
         Gornaya Str. 2/10
         43000 Lutsk
         Ukraine


POSITIVE LLC: Creditors Must File Claims by August 22
----------------------------------------------------
Creditors of LLC Positive (code EDRPOU 34927330) have until
August 22, 2009, to submit proofs of claim to LLC Continent.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 10, 2009.  The case is docketed under
Case No. 50/485.

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 Positive
         Makarovskaya Str. 4
         04107 Kiev
         Ukraine


SPECTOR LLC: Creditors Must File Claims by August 22
----------------------------------------------------
Creditors of LLC Spector (code EDRPOU 34191569) have until
August 22, 2009, to submit proofs of claim to LLC Rif-Realty

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 10, 2009.  The case is docketed under
Case No. 50/482.

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 Spector
         Pilipovsky Lane 4
         04107 Kiev
         Ukraine


YEVROPEISKYI BANK: NBU Initiates Liquidation Proceedings
--------------------------------------------------------
The FINANCIAL reports that the National Bank of Ukraine has
decided to liquidate Kyiv-based Yevropeiskyi bank.

The FINANCIAL relates Vasyl Pasechnyk, executive director of the
central bank's regulation directorate, told the Ukrainian News
agency the decision is stipulated by the loss of the bank's paying
capacity.

Citing Ukrainian News, the FINANCIAL discloses, the NBU took
Yevropeiskyi Bank into provisional administration on May 15 and
appointed Roman Kudrytskyi provisional administrator.


YOUTH COGENCE: Court Starts Bankruptcy Supervision Procedure
------------------------------------------------------------
The Economic Court of Donetsk commenced bankruptcy supervision
procedure on LLC Youth Cogence (code EDRPOU 33257225).

The Insolvency Manager is:

         I. Kiriachok
         Office 501
         Pervomayskaya Str. 12
         83086 Donetsk
         Ukraine

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Youth Cogence
         Mayskaya Str. 86
         83030 Donetsk
         Ukraine


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


BRADFORD & BINGLEY: Arrears Up in First Half of 2009
----------------------------------------------------
Kevin Crowley at Bloomberg News reports that Bradford & Bingley
Plc said proportion of mortgages in arrears rose by almost a third
in the first half of 2009.

Bloomberg relates the lender said mortgages at least three months
overdue rose to 5.88% at June 30, from 4.6% at the end of 2008.
According to Bloomberg, arrears dropped to 5.82% at the end of
July.

"Arrears appear to have peaked in this low interest rate
environment," Bloomberg quoted Managing Director Richard Banks as
saying in a telephone interview.

B&B was nationalized in September after the bank struggled to find
funding and customers lined up outside branches to withdraw
deposits.  Banco Santander SA, Spainís biggest bank, bought the
lender's branches and deposits and the government was left to run
down its loan book.

                         Home Repossessions

Jill Treanor and Larry Elliott at guardian.co.uk reports B&B said
it had seized more properties from its defaulting mortgage
customers in the first half of this year.  guardian.co.uk
discloses at the end of June the bank had 961 homes under
repossession, some 300 more than at the end of December.
According to guardian.co.uk, B&B managing director Richard Banks
warned that repossessions would continue to rise until the end of
this year, reflecting the sharp rise in the number of customers
who began falling into difficulty in 2008.

                      About Bradford & Bingley

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


CHAPELTOWN ASSOCIATES: High Court Orders Liquidation
----------------------------------------------------
The High Court has ordered the liquidation of Chapeltown
Associates Limited, Highland Properties Estate Agency Limited and
Osprey Highlands Estate Agents Limited following a government
investigation.

The three companies were involved in the continued mis-selling of
land in Scotland.

In making the order to wind-up the companies, Registrar Jaques
condemned some of the companies practices as unsatisfactory and
unacceptable.

The investigation by the Insolvency Services Companies
Investigation Branch (CIB) found that land being offered for sale
at Loch Shin in Scotland had initially been marketed to the public
by a company called IDC Land Limited controlled by a Mr Brian
James OBrien.  The scheme, called landbanking, involved selling
plots to investors on the basis that planning permission was very
likely to be granted resulting in a substantial increase in value.
In fact, there was no likelihood of planning permission being
granted.  Nonetheless, IDC Land Ltd. managed to persuade 8 clients
to part with in excess of 220,000 for land which it did not even
own.  IDC was wound up in the public interest in May 2008.,
Highland Properties Estate Agency Limited and Osprey Highlands
Estate Agents Limited continued to market the land, which had been
acquired by Chapeltown Associates Ltd., but again there was no
likelihood of planning permission being granted so as to add value
to the plots of land that were marketed.

On hearing the evidence, Registrar Jaques ordered all three
companies into liquidation in the public interest:

Commenting on the case, Robert Burns, Head of investigations and
Enforcement at the Insolvency Service said:"Some companies exploit
land banking as a means to induce investors to buy land on the
promise of high returns which may never materialize.  We will
continue to crack down on companies and individuals which
deliberately mislead the public in this way.

"I'd encourage anyone approached by companies offering plots of
land on the promise of future planning permission to be on their
guard."

All public enquiries concerning the affairs of the companies
should be made to:

         The Official Receiver
         Public Interest Unit
         Fourth Floor
         21 Bloomsbury Street
         London, WC1B 3SS
         Tel.: 020 7637 1110
         E-mail: piu.or@insolvency.gsi.gov.uk


CHESS II: S&P Downgrades Rating on EUR50 Mil. Notes to 'B-'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B-' from 'B' its
credit rating on the EUR50 million secured leveraged super senior
credit-linked notes series 37 issued by Chess II Ltd.

This downgrade is based on S&P's assessment of the deterioration
in the credit quality of the assets in the underlying reference
portfolio.  In S&P's opinion, this has increased the probability
that the portfolio loss triggers for this tranche will be
breached.  Accordingly, S&P has lowered the rating to a level S&P
believes is consistent with the tranche's loss probability.

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


CORNERSTONE TITAN: S&P Lowers Rating on Class J Notes to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class H and J notes
issued by Cornerstone Titan 2006-1 PLC.

These actions follow interest shortfalls experienced by the class
H and J notes on the July 2009 note interest payment date.  The
shortfalls were caused by application of the appraisal reduction
to servicer advancing for the Peacock Place Shopping Centre loan
and the charging of special servicer fees to the issuer.

Cornerstone 2006-1 closed in July 2006 and is backed by a pool of
nine loans secured against 28 commercial properties across the
U.K.  The PPSC loan is the second-smallest loan in the pool and is
secured by a secondary shopping center in Northampton.  The
outstanding loan balance is GBP13.1 million.

Since closing, there has been material deterioration in the
performance of the property securing the PPSC loan.  The occupancy
rate has fallen to 59.7% from 89.0% at closing and the reported
interest coverage ratio is 0.48x, down from 1.27x at closing.

On the April loan IPD, the borrower did not make a full payment of
interest.  As a result, the loan was transferred into special
servicing.  The interest shortfall was covered by the proceeds of
servicer advancing.

On June 9, the servicer reported the market value of the property
as GBP3.4 million, equating to a loan-to-value ratio of 386%.  The
new valuation triggered an appraisal reduction, which has the
effect of reducing the amount of servicer advancing for the loan.

S&P has been informed by the servicer that there were no funds
available to make the interest payment due under the loan on the
July loan IPD As a result, the cash manager requested servicer
advancing to cover the interest shortfall.  The effect of the
appraisal reduction was to reduce the amount that was advanced.
In addition, under the terms of the transaction documents
servicing advancing could not be used to cover the special
servicing fees incurred by the issuer relating to the PPSC loan.
The application of the appraisal reduction and the payment by the
issuer of the special servicing fee reduced the amount available
to the issuer to pay interest due under the notes.  Consequently,
the class J notes experienced an interest shortfall of
GBP40,898.56 (equivalent to 1.3% of the note balance) and the
class H notes experienced a shortfall of GBP16,319.31 (equivalent
to 0.3% of the note balance)

S&P believes that these shortfalls will be recurring but S&P
cannot determine the timing or extent of future shortfalls
affecting the class H notes, due to uncertainty regarding
availability and amounts of net operating income the property will
generate.  S&P believes the class J notes will experience further
interest shortfalls because it is the most junior class of notes.

S&P's ratings address timely payment of interest.  Consequently
S&P lowered the rating on the class J notes to 'D', even though
under the terms and conditions of the notes the missed interest
payment can be deferred.

S&P considers that the class H note interest shortfalls fall under
S&P's minor shortfall policy, but S&P has lowered S&P's rating to
'CCC' to reflect the likelihood of further interest shortfalls and
S&P's increased expectation of principal losses in view of the
proposed sale of the property.

                            Ratings List

                   Cornerstone Titan 2006-1 PLC
GBP564.27 Million Commercial Mortgage-Backed Floating-Rate Notes

      Ratings Lowered and Removed From Creditwatch Negative

                              Ratings
                              -------
        Class           To                    From
        -----           --                    ----
        H               CCC                   B/Watch Neg
        J               D                     B-/Watch Neg


HIGHLAND PROPERTIES: High Court Orders Liquidation
--------------------------------------------------
The High Court has ordered the liquidation of Chapeltown
Associates Limited, Highland Properties Estate Agency Limited and
Osprey Highlands Estate Agents Limited following a government
investigation.

The three companies were involved in the continued mis-selling of
land in Scotland.

In making the order to wind-up the companies, Registrar Jaques
condemned some of the companies practices as unsatisfactory and
unacceptable.

The investigation by the Insolvency Services Companies
Investigation Branch (CIB) found that land being offered for sale
at Loch Shin in Scotland had initially been marketed to the public
by a company called IDC Land Limited controlled by a Mr Brian
James OBrien.  The scheme, called landbanking, involved selling
plots to investors on the basis that planning permission was very
likely to be granted resulting in a substantial increase in value.
In fact, there was no likelihood of planning permission being
granted.  Nonetheless, IDC Land Ltd. managed to persuade 8 clients
to part with in excess of 220,000 for land which it did not even
own.  IDC was wound up in the public interest in May 2008.,
Highland Properties Estate Agency Limited and Osprey Highlands
Estate Agents Limited continued to market the land, which had been
acquired by Chapeltown Associates Ltd., but again there was no
likelihood of planning permission being granted so as to add value
to the plots of land that were marketed.

On hearing the evidence, Registrar Jaques ordered all three
companies into liquidation in the public interest:

Commenting on the case, Robert Burns, Head of investigations and
Enforcement at the Insolvency Service said:"Some companies exploit
land banking as a means to induce investors to buy land on the
promise of high returns which may never materialize.  We will
continue to crack down on companies and individuals which
deliberately mislead the public in this way.

"I'd encourage anyone approached by companies offering plots of
land on the promise of future planning permission to be on their
guard."

All public enquiries concerning the affairs of the companies
should be made to:

         The Official Receiver
         Public Interest Unit
         Fourth Floor
         21 Bloomsbury Street
         London, WC1B 3SS
         Tel.: 020 7637 1110
         E-mail: piu.or@insolvency.gsi.gov.uk


INDUSTRIOUS GROUP: Max to Push Through with Property Deal
---------------------------------------------------------
Tom Freke and Daryl Loo at Reuters report that Max Property said
it would press ahead with a deal to acquire Industrious Group's
property portfolio, despite a last-minute intervention by a
creditor mulling a counter-offer.

According to Reuters, Max Property plans to pay GBP232 million
(US$381 million) for the property portfolio from the failed
Industrious Group, which owes GBP490 million in CMBS debt.

"Max Property is still planning to proceed with the purchase and
we are continuing to press the receivers for the urgent resolution
of the situation," Mike Brown, a co-founder of Max Property, told
Reuters on Tuesday.

Citing a source familiar with the situation, Reuters discloses
Ernst & Young now must decide whether to proceed with the sale to
Max Property, and an announcement is likely before the end of the
week.

On Aug. 17, 2009, the Troubled Company Reporter-Europe, citing the
Daily Telegraph, that in a stock exchange statement on
Wednesday, Nicke Leslau's newly listed Max Property said it had
been informed by Ernst & Young, the receivers for the Industrious
Group, a fund managed by privately-owned Dunedin Property which
collapsed last year, that "they have not yet been able to satisfy
the conditions to completion of the sale".  According to the Daily
Telegraph, the complication is understood to have arisen after
bondholders linked to the portfolio, including Citigroup
subsidiaries, took up their pre-emption rights which were offered
after Mr. Leslau's deal was agreed.


ITV PLC: Viewing Share Falls Below Target for Last Two Months
-------------------------------------------------------------
Neil Midgley at the Daily Telegraph reports that ITV plc's share
of commercial television viewing has fallen below its self-imposed
target for the last two months.

ITV's published target is for its family of channels to have a
38.5pc "share of commercial impacts" by the time of digital
switchover in 2012, the report says.

According to the report, ITV's family SOCI was 38.1%, and in July
it fell to 38.

                         About ITV plc

ITV plc -- http://www.itvplc.com/-- is a United Kingdom-based
advertising funded broadcaster.  The Company also operates as an
advertising funded media owner in the United Kingdom across all
media, including television, radio, press, cinema, outdoor and the
Internet.  As a producer, ITV makes hours of network television.
Its digital channels include ITV2, ITV3, ITV4 and Citv.  ITV also
makes programs for the BBC, Channel 4, five, Sky and other
broadcasters.  ITV produces programs watched on screens from San
Francisco to Sydney.  In addition, it produces a range of products
related to ITV programs, such as digital video disks (DVDs) and
computer games.  Its online properties include itv.com,
itvlocal.com and Friends Reunited

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Aug. 11,
2009, Moody's Investors Service said that it downgraded ITV plc's
senior unsecured ratings and its Corporate Family Rating to B1
(from Ba3).  The rating outlook for ITV is stable.  Moody's said
the downgrade reflects the weight of ITV's adjusted debt,
aggravated by the significant widening of the company's IAS 19
pension deficit at a time when profitability is under severe
pressure due to the magnitude of the downturn in the UK's TV
advertising market (-17%, ITV family -15%) while (i) the timing
and the extent of a recovery in UK TV advertising is uncertain
(ii) execution risks on the company's envisaged asset sales remain
and (iii) a degree of management uncertainty persists as the
company conducts the search for a new chief executive.

On Aug. 11, 2009, the Troubled Company Reporter-Europe reported
that Fitch Ratings affirmed ITV plc's Long-term Issuer Default
Rating at 'BB-', and maintained the rating Outlook at Negative.
The agency has also affirmed ITV's senior unsecured rating at
'BB-'.  The rating affirmation follows the August 6 release of the
UK broadcaster's interim results which showed a fall in net
advertising revenue of 15% in the half year to June 30, 2009, and
a fall in EBITA of GBP75 million to GBP46 million.


LM ENGINEERING: Goes Into Administration; 14 Jobs Axed
------------------------------------------------------
DailyPost.co.uk reports that LM Engineering Services Limited has
gone into administration, resulting in the loss of 14 jobs.

The report relates Bill Dawson and Dan Butters, at Deloitte, the
business advisory firm, were appointed joint administrators of LM
Engineering Services and its holding company VMS Management
Services Limited on Monday.

"Unfortunately, the Group has suffered as a result of the
recession, and has recently been further impacted by the closure
of a customer.  We will continue to trade the business as a going
concern while actively looking for a purchaser," the report
quoted Mr. Dawson as saying.

Based in Wrexham, LM Engineering Services Limited operates from an
18,000 sq ft freehold site, together with leasehold premises, and
employs 38 members of staff.


LUDGATE FUNDING: S&P Junks Ratings on Two Classes of Notes
----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class Ba, Bb, C,
and D series 2006-FF1 notes issued by Ludgate Funding PLC.  At the
same time, S&P placed the class A2a and A2b notes on CreditWatch
negative and affirmed the class E and S notes and the MERCs.

The downgrades on the mezzanine and subordinate classes are due to
S&P's view of weakening credit enhancement resulting from the
fully depleted reserve fund, drawings on the liquidity facility,
and an increase in losses on the portfolio.

The reserve fund has been fully drawn and the liquidity facility
has been required to meet interest payments for the past three
quarters.  There is an outstanding drawing on the liquidity
facility of GBP633,623.  This is primarily driven by the unhedged
mismatch between the Bank of England base rate received from the
loans and three-month LIBOR due on the notes.

The uncleared principal deficiency ledger for the class E notes is
GBP822,058 (37% of the class E note balance).  S&P expects
liquidity to be required in the coming quarter.  However,
according to the transaction documents, the class E notes cannot
use the liquidity facility to meet interest payments if the PDL
balance is equal to or greater than 50% of the outstanding note
balance.  If performance does not improve compared with previous
quarters, S&P would expect levels of losses to cause interest
shortfalls on the class E notes over the next two quarters.

S&P expects to resolve the CreditWatch placements on the class A2a
and A2b notes after the September interest payment date.

Ludgate Funding series 2006-FF1 is a U.K. nonconforming
residential mortgage-backed securities transaction backed by a
pool of first-ranking mortgages secured over freehold and
leasehold, owner-occupied, and buy-to-let properties in the U.K.
originated by Wave Lending (formerly Freedom Funding).

                           Ratings List

                       Ludgate Funding PLC
       GBP271.8 Million and EUR156.4 Million Mortgage-Backed
                Floating-Rate Notes Series 2006-FF1

       Ratings Lowered and Removed From CreditWatch Negative

                             Rating
                             ------
          Class      To                    From
          -----      --                    ----
          Ba         A                     A+/Watch Neg
          Bb         A                     A+/Watch Neg
          C          BBB-                  BBB/Watch Neg
          D          B                     BB/Watch Neg

              Ratings Placed on CreditWatch Negative

                                  Rating
                                  ------
               Class      To                    From
               -----      --                    ----
               A2a        AAA/Watch Neg         AAA
               A2b        AAA/Watch Neg         AAA

                         Ratings Affirmed

                        Class      Rating
                        -----      ------
                        MERCs      AAA
                        E          CCC-
                        S          CCC-


MANSARD MORTGAGES: Fitch Junks Ratings on Class B1a Notes
---------------------------------------------------------
Fitch Ratings has downgraded 11 and affirmed six tranches of
Mansard Mortgages, a series of three UK non-conforming RMBS
transactions with loans originated by Rooftop Mortgages Limited.
Five tranches rated 'A' and below remain on Negative Outlooks.  A
full rating breakdown is provided at the end of this comment.

The rating actions reflect Fitch's concern about the performance
of the transactions, and the impact of the current deteriorating
market conditions on borrowers in the underlying portfolios.

The latest investor reports for Q209 show reserve fund draws
across all three transactions ranging from GBP0.2 million to
GBP1.5 million in Mansard 2007-1 and Mansard 2007-2 respectively.
Mansard 2006-1 and Mansard 2007-1 currently have reserve funds of
13.1% and 42.3% of their respective target amounts.  Fitch
estimates that these transactions are likely to see full
depletions of their reserve funds in the course of 2009, as well
as first losses being allocated to the junior tranches, which is
why the agency has affirmed the 'CC' ratings of these classes.

Mansard 2007-2 has an outstanding reserve that is equal to 82.7%
of its target amount.  To date, the levels of gross excess spread
have been close to zero, which is why the transaction has also
drawn on its liquidity facility.  In the July 2009 report, the
transaction had fully repaid its obligations to the liquidity
facility provider.  However, Fitch is concerned over its future
ability to generate revenue, and believes that further reserve
fund draws can be expected.  These expectations led to the
downgrade of the class B2a note to 'CC' in January 2009, and
following Fitch's rating actions in August 2009 the expected
recovery ratings on this note has been revised to RR5.

The principal payment rates in Mansard 2007-2 have remained low.
According to the latest investor reports, the constant principal
payment rate, which includes unscheduled payments only, stood at
3.3% in July 2009.  Consequently, the credit enhancement (CE) of
the class A and class M1a notes has not seen much growth since
closing, while the credit support available to the junior tranches
has decreased.  The low CE growth, adverse characteristics of the
pool and the current market environment, drove the downgrades of
the tranches detailed below.

The reserve fund draws in the three transactions have been driven
by an increase in the volume of properties being sold following
repossession, which, due to declining house prices since
origination, continue to experience losses.  The weighted average
loan-to-value ratios in the pools range from 82.6% (Mansard 2007-
1) to 84.9% (Mansard 2007-2).  As Fitch expects house price
declines to reach 30% peak-to-trough, the agency believes that
further losses on future sales can be expected.  The current
outstanding repossessions in these pools in Q209 stood between
1.9% (Mansard 2007-2) and 6.5% (Mansard 2006-1).  However, the
loan-by-loan analysis of the loans currently in arrears by more
than three months indicate that further repossessions can be
expected in the forthcoming periods.

The rating actions are:

Mansard Mortgages 2006-1 Plc

  -- Class A2a (ISIN XS0272297358) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating LS-2

  -- Class M1a (ISIN XS0272298752) downgraded to 'AA-' from 'AA';
     Outlook Stable; assigned Loss Severity Rating LS-3

  -- Class M2a (ISIN XS0272299131) downgraded to 'BBB-' from
     'BBB'; Outlook Negative; assigned Loss Severity Rating LS-4

  -- Class B1a (ISIN XS0272304311) downgraded to 'B' from 'BB';
     Outlook Negative; assigned Loss Severity Rating LS-5

  -- Class B2a (ISIN XS0272305045) affirmed at 'CC'; Recovery
     Rating RR4

Mansard Mortgages 2007-1 Plc

  -- Class A1a (ISIN XS0293436910) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating LS-2

  -- Class A2a (ISIN XS0293438965) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating LS-2

  -- Class M1a (ISIN XS0293458054) downgraded to 'A+' from 'AA';
     Outlook Stable; assigned Loss Severity Rating LS-3

  -- Class M2a (ISIN XS0293460381) downgraded to 'BBB-' from 'A-';
     Outlook Negative; assigned Loss Severity Rating LS-3

  -- Class B1a (ISIN XS0293442215) downgraded to 'CCC' from 'BB';
     assigned Recovery Rating RR2

  -- Class B2a (ISIN XS0293446711) affirmed at 'CC'; Recovery
     Rating revised to RR5 from RR4

Mansard Mortgages 2007-2 Plc

  -- Class A1a (ISIN XS0333305299) downgraded to 'AA' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating LS-2

  -- Class A2a (ISIN XS0333306933) downgraded to 'AA' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating LS-2

  -- Class M1a (ISIN XS0333308475) downgraded to 'A' from 'AA';
     Outlook Negative; assigned Loss Severity Rating LS-4

  -- Class M2a (ISIN XS0333311693) downgraded to 'BB' from 'A';
     Outlook Negative; assigned Loss Severity Rating LS-4

  -- Class B1a (ISIN XS0333313988) downgraded to 'CCC' from 'BB';
     assigned Recovery Rating RR2

  -- Class B2a (ISIN XS0333340361) affirmed at 'CC'; Recovery
     Rating revised to RR5 from RR3


MELROSE RESOURCES: Moody's Withdraws 'B2' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the B2 corporate family
rating and probability of default rating of Melrose Resources plc
for business reasons, at the request of the issuer.

Moody's last rating action on Melrose Resources plc was on 10 June
2009, when the outlook was changed to negative from stable.

Headquartered in Edinburgh, UK, Melrose Resources plc is a FTSE
250 exploration and production company with operations mostly
located in Egypt, the US and Bulgaria.  At year-end 2008, Melrose
reported proved SPE reserves of 56 million barrels of oil
equivalent.


NEWGATE FUNDING: Moody's Junks Ratings on Eight Classes of Notes
----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of 16 classes
of notes and has confirmed the ratings of 7 classes of notes
issued by Newgate Funding Plc.  The 23 affected tranches had been
placed on review for possible downgrade on June 26, 2009 due to
worse-than-expected collateral performance.  The rating actions
conclude the review and take into account the increased loss
expectations for the two mortgage portfolios backing Newgate
Funding Series 2007-1 and Newgate Funding Series 2007-2.

Newgate Funding Series 2007-1 closed in March 2007 and the current
pool factor is approximately 76%.  The assets supporting the notes
are "near prime", sub-prime and non-conforming mortgage loans
secured by residential properties located in England, Wales,
Scotland and Northern Ireland, with approximately 65% of the
outstanding portfolio represented by interest-only loans.  The
original weighted average LTV at closing was approximately 79%
while the current weighted average indexed LTV has increased to
approximately 93%.  As a result of the house price depreciation
after closing, approximately 40% of the outstanding portfolio is
currently characterized by an indexed LTV higher than 100%.  In
this respect, the mortgages in negative equity show a proportion
of 90+ days delinquencies approximately 50% higher than the rest
of the portfolio.

The cumulative losses realized since closing in Newgate Funding
Series 2007-1 amount to 1.01% of the original portfolio balance,
with an average loss severity of 24.44%.  The reserve fund, fully
funded at closing, has been completely depleted and the
transaction is currently experiencing an unpaid PDL on the Class F
note of approximately GBP218,000.

Newgate Funding Series 2007-2 closed in June 2007 and the current
pool factor is approximately 85%.  The assets supporting the notes
are "near prime", sub-prime and non-conforming mortgage loans
secured by residential properties located in England, Wales,
Scotland and Northern Ireland, with approximately 66% of the
outstanding portfolio represented by interest-only loans.  The
original weighted average LTV at closing was approximately equal
to 78% while the current weighted average indexed LTV has
increased to approximately 94%.  As a result of the house price
depreciation after closing, approximately 44% of the outstanding
portfolio is currently characterized by an indexed LTV higher than
100%.  As in Newgate Funding Series 2007-1, the mortgages in
negative equity show a proportion of 90+ days delinquencies
approximately 50% higher than the rest of the portfolio.

The cumulative losses realized since closing in Newgate Funding
Series 2007-2 amount to 0.90% of the original portfolio balance,
with an average loss severity of 28.85%.  The reserve fund, fully
funded at closing, has been completely depleted and the
transaction is currently experiencing an unpaid PDL on the class F
note of approximately GBP432,000.

According to the latest investor reports, 90+ days delinquencies
(including outstanding repossessions) have increased in the last
quarter from 27.0% to 30.2% of the outstanding balance of the
portfolio in Newgate Funding Series 2007-1 and from 25.9% to 31.1%
in Newgate Funding Series 2007-2.  These levels of 90+ arrears are
partially overstated by the common practice of computing the
number of months in arrears by dividing the arrears amount by the
last monthly installment.  In its analysis, Moody's has taken this
into account by using, whenever available, loan-by-loan data of
the past quarters to derive the previous monthly installments to
be used for the arrears computation.

In the last quarter, the loans in arrears which have not made any
payment have been approximately equal to 16.0% of the current
portfolio balance in Newgate Funding Series 2007-1 and to 21.4% in
Newgate Funding Series 2007-2.  Over the same period of time, the
borrowers in arrears who have paid at least their contractual
monthly installment amount to 19.7% of the current portfolio
balance in Newgate Funding Series 2007-1 and 16.0% in Newgate
Funding Series 2007-2.  The ability of these delinquent borrowers
to partially cure their arrears may be also linked to the current
benign interest rate environment for the floating rate loans,
which currently represent approximately 73.6% and 77.5% of the
current portfolio balance in Newgate Funding Series 2007-1 and
2007-2 respectively.  Moody's has taken into account that such
payment ability could be put at risk in case the interest rate
environment became less favorable in the future.

Both the Affected Transactions are exposed to unhedged basis risk
between the interest received on the mortgage loans, ultimately
linked to the BBR, and the 3-Month-GBP-Libor due on the notes.
Additionally, in these transactions the fixed-floating swap
provides only a partial hedging as the 3-Month-GBP-Libor payable
by the swap counterparty resets monthly whereas the 3-Month-GBP-
Libor payable on the Notes resets quarterly.  These unhedged basis
risks had been previously sized by Moody's and have not been the
driver of the rating actions.

Moody's has assessed updated loan-by-loan information of the
outstanding portfolio to determine the increase in credit support
needed and the volatility of future losses.  As a consequence,
Moody's has revised its Milan Aaa CE for both the Affected
Transactions to 30% (vs. the previous assumption of 22.3% and
20.9% for Newgate Funding Series 2007-1 and 2007-2 respectively).
In each of the Affected Transactions the Class A notes share the
same PDL and their current available credit enhancement (excluding
excess spread) equals approximately 21.4% in Newgate Funding
Series 2007-1 and 17.7% in Newgate Funding Series 2007-2.  The
principal redemption within the Class A notes is fully sequential,
hence these classes are expected to have significantly different
average lives.  In its cash flow analysis Moody's has taken the
faster repayment of the Class A1 and Class A2 notes into account
and this has led to the confirmation of their current ratings.

Considering the current amount of realized losses, and completing
a roll-rate and severity analysis for the non-defaulted portion of
the portfolio, Moody's has also increased its total loss
expectations to 7.5% and 9% of the original portfolio balance for
Newgate Funding Series 2007-1 and 2007-2 respectively (vs. 2.7%
and 2.9% previously assumed).

The loss expectation and the Milan Aaa CE are the two key
parameters used by Moody's to calibrate the loss distribution
curve, which is one of the inputs into Moody's RMBS cash-flow
model.  Moody's has also factored into its analysis the negative
sector outlook for UK non-conforming RMBS.  The sector outlook
reflects these expectations of key macro-economic indicators: GDP
to contract by 4.1% in 2009, followed by growth of 0.9% in 2010,
unemployment to increase to 9.6% by 2010 from 7.8%, house prices
to decrease by over 30% from their peak in 2007 to a trough in
2010 and further increases in personal insolvencies.

The classes of notes affected by the rating actions are:

Newgate Funding Series 2007-1:

  -- Class A1a, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A1b, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A1c, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A2, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A3, downgraded to Aa2; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class Ma downgraded to A2; previously on 26 June 2009 Aa1 and
     placed under review for possible downgrade;

  -- Class Mb downgraded to A2; previously on 26 June 2009 Aa1 and
     placed under review for possible downgrade;

  -- Class Ba downgraded to Baa3; previously on 26 June 2009 Aa3
     and placed under review for possible downgrade;

  -- Class Bb downgraded to Baa3; previously on 26 June 2009 Aa3
     and placed under review for possible downgrade;

  -- Class Cb downgraded to Caa1; previously on 26 June 2009 A3
     and placed under review for possible downgrade;

  -- Class Db downgraded to Ca; previously on 26 June 2009 Ba2 and
     placed under review for possible downgrade;

  -- Class E downgraded to C; previously on 26 June 2009 B2 and
     placed under review for possible downgrade; and

  -- Class F downgraded to C; previously on 26 June 2009 B3 and
     placed under review for possible downgrade.

Newgate Funding Series 2007-2:

  -- Class A1a, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A1b, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A2, confirmed at Aaa; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class A3, downgraded to Aa3; previously on 26 June 2009 Aaa
     and placed under review for possible downgrade;

  -- Class M downgraded to Baa2; previously on 26 June 2009 Aa2
     and placed under review for possible downgrade;

  -- Class Bb downgraded to Ba3; previously on 26 June 2009 Aa3
     and placed under review for possible downgrade;

  -- Class Cb downgraded to Caa3; previously on 26 June 2009 A3
     and placed under review for possible downgrade;

  -- Class Db downgraded to C; previously on 26 June 2009 Ba2 and
     placed under review for possible downgrade;

  -- Class E downgraded to C; previously on 26 June 2009 B2 and
     placed under review for possible downgrade; and

  -- Class F downgraded to C; previously on 26 June 2009 B3 and
     placed under review for possible downgrade.

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


NIGHTINGALE FINANCE: Moody's Cuts Capital Note Rating to 'Caa3'
---------------------------------------------------------------
Moody's Investors Service has confirmed the Prime-1 ratings for
the US and Euro Commercial Paper Programmes, and the A3 and Prime-
1 ratings for the US and Euro Medium Term Note Programmes of
Nightingale Finance Limited and Nightingale Finance LLC.  Moody's
also announced that it has downgraded Nightingale's Capital Note
Programme rating from Caa3 to Ca.

Nightingale is a Structured Investment Vehicle managed by AIG-FP
Capital Management Limited, an affiliate of AIG Financial Products
Corp.  QSR Management Limited, a subsidiary of The Bank of New
York (Aaa/Prime-1/B+), acts as Administrator for the vehicle.

The rating action on Nightingale's senior debt programs follows
the rating confirmation of Nightingale's liquidity provider, AIG
FP on 2 March 2009; A3 for its senior unsecured debt and Prime-1
for its short-term debt ratings.  The direct linkage between the
senior debt ratings of Nightingale and that of AIG FP is based on
AIG FP's commitment to support Nightingale's senior debt through a
Senior Note Purchase Commitment, and a Repo Commitment.  The
Senior Note Purchase Commitment enables AIG FP to purchase new
senior debt issued by Nightingale while the Repo Commitment allows
Nightingale to raise funds for the repayment of its senior debt
through repo arrangements with AIG FP.  The outstanding amount of
Nightingale's senior debt will not exceed the combination of the
Senior Note and Repo commitments.

The liquidity support provided by AIG FP indirectly benefits
Nightingale's capital notes.  Assets need not be liquidated for
the repayment of senior debt and hence limits crystallization of
losses to the capital notes.  However, the rating action on
Nightingale's Capital Note Programme reflects the credit
deterioration of the SIV's asset portfolio since Moody's last
rating action in 19 May 2008.  The weighted average rating of
Nightingale's asset portfolio has deteriorated to Baa2 as of 24
July 2009 from Aa1 as of 03-Oct-08.

Moody's monitors this transaction using primarily the methodology
and its supplements for CDOs as described in Moody's Special
Reports below:

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

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

The rating actions are:

Nightingale Finance Limited and Nightingale Finance LLC:

(1) US and Euro Commercial Paper Programmes (US$1.1 billion)

  -- Current Rating: Prime-1

  -- Prior Rating: Prime-1, on review for downgrade

  -- Prior Rating Date: 15 October 2008, Prime-1, review for
     downgrade from Prime-1

(2) US and Euro Medium Term Note Programmes

There are currently no debt securities outstanding under the US
and Euro Medium Term Note Programmes.  Usage of the programme is
at the discretion of the issuer as market conditions permit.

  -- Current Rating: A3 and Prime-1

  -- Prior Rating: A3, on review for downgrade / Prime-1, on
     review for downgrade

  -- Prior Rating Date: 15 October 2008, downgraded to A3, on
     review for downgrade / Prime-1, on review for downgrade from
     Aaa, on review for downgrade / Prime-1, on review for
     downgrade

(3) Capital Note Programme (US$266 million)

  -- Current Rating: Ca

  -- Prior Rating: Caa3

  -- Prior Rating Date: 19 May 2008, downgraded to Caa3 from B3,
     on review for downgrade.


NORTHERN ROCK: To Defer Coupon Payments on Subordinated Bonds
-------------------------------------------------------------
John Glover at Bloomberg News reports that Northern Rock Plc has
decided to defer interest payments on eight subordinated bonds.

Bloomberg relates Northern Rock said in a statement on Tuesday it
"has now decided, until further notice, to defer payment of all
subordinated debt coupons which the company is entitled to defer".
"The company will continue to make payments on its debt where it
is contractually obliged to do so," Bloomberg quoted the
Newcastle, England-based lender as saying.

Citing Simon Adamson, an analyst at CreditSights Inc. in London,
Bloomberg discloses the securities in pounds and dollars have an
aggregate face value totaling US$2.74 billion.  According to
Bloomberg, Mr. Adamson said in a note to clients they are all
undated upper Tier 2 or Tier 1 notes the bank issued to bolster
its capital ratios.

                         Capital Levels

Jane Croft at The Financial Times reports Northern Rock said it
had taken the action because its capital base had fallen to a
level below its minimum regulatory capital requirement.  The
lender, as cited by the FT, said it planned to address the capital
issue by means of a legal and capital restructuring, providing its
application for state aid from the government were to be approved
by the European Commission in the autumn.

                        About Northern Rock

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

                           *     *     *

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

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


OSPREY HIGHLANDS: High Court Orders Liquidation After Gov't Probe
-----------------------------------------------------------------
The High Court has ordered the liquidation of Chapeltown
Associates Limited, Highland Properties Estate Agency Limited and
Osprey Highlands Estate Agents Limited following a government
investigation.

The three companies were involved in the continued mis-selling of
land in Scotland.

In making the order to wind-up the companies, Registrar Jaques
condemned some of the companies practices as unsatisfactory and
unacceptable.

The investigation by the Insolvency Services Companies
Investigation Branch (CIB) found that land being offered for sale
at Loch Shin in Scotland had initially been marketed to the public
by a company called IDC Land Limited controlled by a Mr Brian
James OBrien.  The scheme, called landbanking, involved selling
plots to investors on the basis that planning permission was very
likely to be granted resulting in a substantial increase in value.
In fact, there was no likelihood of planning permission being
granted.  Nonetheless, IDC Land Ltd. managed to persuade 8 clients
to part with in excess of 220,000 for land which it did not even
own.  IDC was wound up in the public interest in May 2008.,
Highland Properties Estate Agency Limited and Osprey Highlands
Estate Agents Limited continued to market the land, which had been
acquired by Chapeltown Associates Ltd., but again there was no
likelihood of planning permission being granted so as to add value
to the plots of land that were marketed.

On hearing the evidence, Registrar Jaques ordered all three
companies into liquidation in the public interest:

Commenting on the case, Robert Burns, Head of investigations and
Enforcement at the Insolvency Service said:"Some companies exploit
land banking as a means to induce investors to buy land on the
promise of high returns which may never materialize.  We will
continue to crack down on companies and individuals which
deliberately mislead the public in this way.

"I'd encourage anyone approached by companies offering plots of
land on the promise of future planning permission to be on their
guard."

All public enquiries concerning the affairs of the companies
should be made to:

         The Official Receiver
         Public Interest Unit
         Fourth Floor
         21 Bloomsbury Street
         London, WC1B 3SS
         Tel.: 020 7637 1110
         E-mail: piu.or@insolvency.gsi.gov.uk


SIAS BUILDING: Goes Into Administration; 130 Jobs Affected
----------------------------------------------------------
Chris Holland at Telegraph & Argus reports that SIAS Building
Services has gone into administration, resulting in the loss of
more than 130 jobs.

The report relates Adrian Berry, Ian Brown and Neil Matthews at
Deloitte have been appointed joint administrators of SIAS Building
Services and SIAS Holdings, based on the Knowle Spring industrial
estate.   The GBP35-million turnover business employed 178 staff
across six locations.  Its parent company, SIAS Holdings Limited,
is a non-trading holding company.

"SIAS experienced rapid growth recently and incurred losses from a
number of contract problems which, combined with a high level of
overheads, has impacted on cash flow and has caused breaches in
its banking facilities," the report quoted Mr. Matthews as saying.
"SIAS had also received a number of winding up petitions.  As a
result, the directors had little alternative but to place SIAS and
SIAS Holdings Limited into administration."

According to the report, Mr. Matthews said a buyer is being sought
for the company's GBP4 million turnover maintenance business which
currently has approximately 30 employees.

Based in Keighley, SIAS Building Services is a mechanical and
electrical contracting firm.


UROPA SECURITIES: S&P Affirms Low-B Ratings on 4 Classes of Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class A4a and A4b
notes series 2007-1B issued by Uropa Securities PLC.  At the same
time, S&P affirmed all the other notes in this transaction.

The downgrades are due to the poor performance of this
transaction, highlighted by the continued reserve fund draws.
S&P's credit and cash flow analysis of recent loan-level data has
shown the credit quality of the underlying pool has deteriorated
and the credit enhancement available to the class A4 notes is no
longer sufficient to support a 'AAA' rating.

The issuer has drawn on the reserve fund on the past three
interest payment dates.  It now stands at 10.4% of its required
amount.  The issuer drew GBP0.87 million on the July interest
payment date because without the reserve fund its available
revenue funds were insufficient to clear the class B2 principal
deficiency ledger (GBP2.9 million) and pay all items senior to
this payment in the waterfall.

The transaction experienced losses of GBP2.9 million in Q2 2009,
representing 0.48% of the original pool balance.  Cumulative
losses since closing are 1.33% of the original balance, all of
which has been covered by excess spread.  This level is
substantially above S&P's nonconforming index for transactions of
a similar seasoning.  S&P expects U.K. house prices to decline by
a total of 7% in 2009, which S&P believes will increase losses
further.

In April, S&P lowered its ratings on the class M1, M2, B1, B2, and
D notes in this transaction.

The transaction closed in July 2007.  GMAC-RFC Ltd., Kensington
Mortgage Co. Ltd., and Money Partners Ltd. originated the
collateral backing the notes, a pool of first-ranking mortgages
secured over properties in England and Wales.

                           Ratings List

                       Uropa Securities PLC
          EUR634 Million, GBP194.52 Million, US$17 Million
               Mortgage-Backed Floating-Rate Notes,
    and an Overissuance of GBP8.8 Million Excess-Spread-Backed
                Floating-Rate Notes Series 2007-1B

      Ratings Lowered and Removed From CreditWatch Negative

                              Rating
                              ------
             Class       To            From
             -----       --            ----
             A4a         AA            AAA/Watch Neg
             A4b         AA            AAA/Watch Neg

                         Ratings Affirmed

                        Class       Rating
                        -----       ------
                        A1a         AAA
                        A1b         AAA
                        A1c         AAA
                        A2b         AAA
                        A3a         AAA
                        A3b         AAA
                        M1a         A-
                        M1b         A-
                        M2a         BBB
                        B1a         BB-
                        B1b         BB-
                        B2a         B-
                        D           B-


* UK: Bankruptcy Petitions Down in Second Quarter of 2009
---------------------------------------------------------
Ainsley Thomson at Dow Jones Newswires reports that the number of
bankruptcy and company winding-up petitions in England and Wales
fell in the second quarter of 2009.

Dow Jones relates Ministry of Justice statistics released Friday
showed 3,181 company winding-up petitions were presented in courts
in England and Wales in the second quarter, an 8% decrease on the
first quarter when 3,461 petitions were filed.  The Ministry of
Justice figures also showed that there were 21,090 bankruptcy
petitions in the second quarter, a 1% decrease on the previous
quarter when 21,310 bankruptcy petitions were filed, Dow Jones
discloses.

According to Dow Jones, Mike Jervis, partner in the business
recovery services practice at PricewaterhouseCoopers, said the
fall was likely to be because creditors were opting to negotiate
over debts, rather than launch formal court proceedings.


* UK: Baker Tilly Predicts Tougher 2010 for Hotel Industry
----------------------------------------------------------
Restructuring and Recovery experts from Baker Tilly have warned
that 2010 is set to be even tougher for the already struggling UK
hotel industry with the luxury end of the market bracing itself to
bear the brunt of the challenging times.

In the first edition of Full House?, a briefing for the leisure
and hospitality industry, Baker Tilly comment on what the
hoteliers need to do to help navigate their business through these
difficult times.

Bob Bailey, a partner at Baker Tilly said: "Forty percent of
European hotel executives predict that more than five hotel chains
will go into insolvency in the coming year and it is easy to see
why.  The Office of National Statistics shows the number of
visitors to the UK has fallen from 33 million to 31 million during
the 12 months ending in April 2009, and many companies are
reducing employee travel to cut costs which is having an adverse
effect on hotels that rely on corporate business.

"We have been working with banks, owners and management teams to
come up with new solutions and give practical advice to help buck
these trends.  We have been focusing on beating industry
benchmarks for cost management, treating no cost as fixed,
ensuring that every opportunity is maximised and working with
staff and management teams to make the most of human, property and
brand assets."

The June UK Chain Hotels Market Review shows that RevPAR was down
11.5%and profits fell nearly 17% for the first six months of this
year.  The Full House? sector briefing offers some practical
suggestions to hotels to increase their share of the reduced
recession market and aid recovery:

    * If a hotel is not part of a group or chain, it could benefit
      from creating a purchasing group with other local businesses
      to negotiate volume discounts.

    * By putting together packages, hoteliers can add value by
      analyzing previous trends to get promotions in place early.

    * If there is already a good database of existing customers,
      hoteliers can build loyalty by making sure these customers
      are the first to hear about special offers and promotions.

    * Hoteliers should talk to their suppliers about joint
      marketing and promotion.

    * If a hotel provides live-in accommodation for staff, is the
      rent proportionate to salary? Baker Tilly recently
      implemented a review, moving rent from a flat rate to 13% of
      wages, leading to those earning above the minimum wage
      paying a fairer rate in relative terms.


* S&P Takes CreditWatch Actions on 371 European CDO Tranches
------------------------------------------------------------
After running its month-end SROC (synthetic rated
overcollateralization) figures, Standard & Poor's Ratings Services
took CreditWatch actions on 371 European synthetic collateralized
debt obligation tranches.

Specifically, S&P:

* Placed ratings on 364 tranches on CreditWatch negative;

* Affirmed and removed from CreditWatch negative ratings on six
  tranches; and

* Removed from CreditWatch positive and placed on CreditWatch
  negative one tranche.

Of the 365 tranches placed on CreditWatch negative:

* 22 reference U.S.  residential mortgage-backed securities and
  U.S. CDOs that are exposed to U.S.  RMBS, which have
  experienced recent negative rating actions.

* 343 have experienced corporate downgrades in their portfolios.

This table provides a summary of the CreditWatch actions S&P has
taken on European synthetic CDO tranches as well as key corporate
downgrades since Feb. 18, 2009.

                       CreditWatch Summary

           Watch Neg  Watch Pos
           (no. of    (no. of   Key corporate
           tranches)  tranches) downgrades*
           ---------  --------- -------------
  March 9   98          34      MBIA Inc.
                                (A-/Negative to BB+/Negative)
                                Feb. 18, 2009
                                MBIA Insurance Corp.
                                (AA/Negative to BBB+/Negative)
                                Feb. 18, 2009
  April 9  454           0      MGIC Investment Corp.
                                (BB+/Watch Neg to CCC/Negative)
                                March 13, 2009
                                MGM Mirage
                                (B/Watch Neg to CCC/Negative)
                                March 19, 2009
  May 9    258          10      PMI Group Inc.
                               (BBB-/Watch Neg to CCC/Watch Dev)
                                April 8, 2009
                                Radian Group Inc.
                                (BB/Watch Neg to CCC/Stable)
                                April 8, 2009
  June 9    72           2      Visteon Corp.
                                (CCC/Negative to D)
                                May 28, 2009
                                General Motors Corp.
                                (CC/Negative to D)
                                June 1, 2009
  July 9   136           1      Lear Corp.
                                (CCC+/Negative to D)
                                June 2, 2009
                                CIT Group, Inc.
                                (BBB-/Negative to BB-/Watch Neg)
                                June 12, 2009
  August 9 365           0      CIT Group, Inc.
                                (CCC+/Watch Neg to CC/Watch Neg)
                                July 16, 2009
                                Ambac Assurance Corp.
                                (BBB/Watch Neg to CC/Developing)
                                July 28, 2009

* Those corporate names that have experienced a significant notch
  downgrade or upgrade as well as being widely referenced within
  European Synthetic CDOs.

The SROC levels for the ratings placed on CreditWatch negative
fell below 100% during the June month-end run.  S&P will publish
these SROC figures in the SROC report covering July 2009, which is
imminent.  The Global SROC Report provides SROC and other
performance metrics on over 3,500 individual CDO tranches.

The current ratings are based on S&P's criteria for rating
synthetic CDOs.  As recently announced, however, these criteria
are under review.  As highlighted in this notice, S&P has
solicited feedback from market participants regarding proposed
changes to S&P's collateralized loan obligation and CDO criteria.
S&P is evaluating the market feedback, which may result in changes
to the criteria.  Any such criteria changes, as well as other
credit factors, may have an impact on S&P's ratings on the notes
affected by the rating actions.


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *