TCREUR_Public/090826.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, August 26, 2009, Vol. 10, No. 168

                            Headlines

A U S T R I A

GLASS SPIRIT: Claims Filing Deadline is August 31
LAFNITZTALER GMBH: Claims Filing Deadline is August 31
MIROSLAV JOVANOVIC: Claims Filing Deadline is August 31
NATUR-HAUS-BAUTEAM GMBH: Claims Filing Deadline is August 31
PRAIS & PARTNER: Creditors Must File Claims by August 31


B E L G I U M

EVADIX GROUP: Seeks Creditor Protection for Three Units


B U L G A R I A

KREMIKOVTZI AD: Bulgaria Gov't May Opt for Liquidation


F R A N C E

NATIXIS SA: Suspends Share Trading on Likely BPCE Asset Guarantee


G E R M A N Y

ARCANDOR AG: Ex-Chief Faces Two Inquiries in Germany
PFLEIDERER AG: Breaches Debt Covenants; Optimistic on Financing

* GERMANY: Mulls of Extension of Looser Insolvency Rules
* GERMANY: Public Sector Banks May Increase Loan Loss Provisions


I R E L A N D

DECO SERIES: Moody's Downgrades Ratings on Class F Notes to 'Ba2'
GALENA CDO: S&P Lowers Rating on Class A-2J10 JPY Notes to 'D'
NEW BOND: Moody's Downgrades Rating on Class A Notes to 'C'


I T A L Y

RISANAMENTO SPA: Has "Important" Projects in Milan, Intesa Says


K Y R G Y Z S T A N

HASMA BUSINESS: Creditors Must File Claims by September 17


N E T H E R L A N D S

HEAD NV: S&P Raises Long-Term Corporate Credit Rating to 'CCC-'


P O R T U G A L

LUSITANO MORTGAGES: S&P Affirms Rating on Class E Notes at 'BB'


R U S S I A

ASINOVSKOE LLC: Creditors Must File Claims by August 31
KASIMOVSKIY MECHANICAL: Creditors Must File Claims by August 31
KIROV-LES OJSC: Creditors Must File Claims by August 31
KONEVO-LES LLC: Creditors Must File Claims by August 31
MONOLIT LLC: Creditors Must File Claims by August 31

REGION-BIZNES LLC: Creditors Must File Claims by August 31
T-STROY LLC: Creditors Must File Claims by August 31
UNISTROY-NN LLC: Creditors Must File Claims by August 31


S P A I N

AYT COLATERALES: S&P Assigns 'BB' Rating on Class D Notes


S W I T Z E R L A N D

APPLITEC MALEREIBUSINESS: Claims Filing Deadline is August 31
F & B RESOURCES: Claims Filing Deadline is August 31
GOSWIN AG: Creditors Must File Claims by August 31
LAPOSTOLLE + HEINEMEYER: Claims Filing Deadline is August 31
PALMYRA CAPITAL: Claims Filing Deadline is August 31

SPYCHERMATTE AG: Claims Filing Deadline is August 31


T U R K E Y

DOGAN YAYIN: Fitch Maintains Issuer Default Ratings at 'B+'
HURRIYET GAZETECILIK: Fitch Maintains 'BB-' Issuer Default Rating


U K R A I N E

BRICKYARD LLC: Creditors Must File Claims by August 28
ECO-STATUS LLC: Creditors Must File Claims by August 29
INDUSTRIALBANK: Moody's Withdraws 'E+' Bank Strength Rating
KARNA LLC: Creditors Must File Claims by August 28
KRAY-SERVICE LLC: Creditors Must File Claims by August 29

KREMENCHUG CAR: At Risk of Going Bankrupt, Astrum IM Says
ORION LLC: Creditors Must File Claims by August 29
PURE METALS: Creditors Must File Claims by August 28
RAPID-INVEST LLC: Creditors Must File Claims by August 28
YAROVIT LLC: Creditors Must File Claims by August 28


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Full-Year Revenue to Decline by GBP1 Billion
CHAMPION ENTERPRISES: Obtains 30-Day Waiver Under Credit Facility
DYNAMOTIVE ENERGY: Posts US$3MM Net Loss in Six Mos. Ended June 30
FIXED INCOME: Moody's Cuts Rating on Series 3 Notes to 'Ba2'
HIGHLANDS INSURANCE: UK Scheme of Arrangement Takes Effect

ITV PLC: Nears Content Deal with US-based Web TV Service Hulu
LEHMAN BROTHERS: U.K. Administrator to Appeal London Court Ruling
LINX MEDIA: Goes Into Liquidation; Three Sites Cease Trading
NEW BOND: Moody's Downgrades Ratings on US$100 Mil. Notes to 'C'
RED CITY: Put Into Liquidation

ROYAL BANK: Says May Sell Asia Assets to Standard Chartered
TATA STEEL: Corus to Restart Production at Wales Plant
WEEKENDS DIRECT: Goes Into Voluntary Liquidation
WHITE TOWER: Halts Interest Payments to Junior Lender

* UK Building Societies Face Profitability, Funding & Capital Woes
* UK: Lobby Group Says State Aid for Carmakers Taking Too Long

* Alternative Funds Sector Continues to Underperform, the FT Says
* Some States Still Facing Losses From Stakes in Bailed-Out Banks
* READER'S DIGEST: Local Units Not Part of U.S. Bankr. Proceedings


                         *********



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


GLASS SPIRIT: Claims Filing Deadline is August 31
-------------------------------------------------
Creditors of Glass Spirit Technology GmbH have until August 31,
2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 10, 2009 at 8:10 a.m.

For further information, contact the company's administrator:

         Dr. Stefan Denifl
         Marktplatz 10
         6850 Dornbirn
         Switzerland
         Tel: 05572/22195
         Fax: 05572/22195-22
         E-mail: stefan.denifl@trojer.at


LAFNITZTALER GMBH: Claims Filing Deadline is August 31
------------------------------------------------------
Creditors of Lafnitztaler GmbH have until August 31, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 14, 2009 at 10:50 a.m.

For further information, contact the company's administrator:

         Dr. Elisabeth Hrastnik
         Hauptplatz 11, Atrium Top 16 A
         7400 Oberwart
         Switzerland
         Tel: 03352/31375
         Fax: 03352/31375-16
         E-mail: dr.hrastnik@utanet.at


MIROSLAV JOVANOVIC: Claims Filing Deadline is August 31
-------------------------------------------------------
Creditors of Miroslav Jovanovic KEG have until August 31, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 14, 2009 at 10:00 a.m.

For further information, contact the company's administrator:

         Mag. Gerhard Bauer
         Mahlerstrasse 7
         1010 Wien
         Austria
         Tel: 512 97 06
         Fax: 512 97 06 20
         E-mail: ra.g.bauer@aon.at


NATUR-HAUS-BAUTEAM GMBH: Claims Filing Deadline is August 31
------------------------------------------------------------
Creditors of NATUR-HAUS-BAUTEAM GmbH have until August 31, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 14, 2009 at 10:40 a.m.

For further information, contact the company's administrator:

         Mag. Dr. Ilse Korenjak
         Gusshausstrasse 6
         1040 Wien
         Austria
         Tel: 512 21 02
         Fax: 512 21 02 20
         E-mail: office@buresch-korenjak.at


PRAIS & PARTNER: Creditors Must File Claims by August 31
--------------------------------------------------------
Creditors of Prais & Partner GmbH have until August 31, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 14, 2009 at 10:20 a.m.

For further information, contact the company's administrator:

         Mag. Johanna Abel-Winkler
         Franz-Josefs-Kai 49/19
         1010 Wien
         Austria
         Tel: 533 52 72
         Fax: 533 52 72 15
         E-mail: office@abel-abel.at


=============
B E L G I U M
=============


EVADIX GROUP: Seeks Creditor Protection for Three Units
-------------------------------------------------------
John Martens at Bloomberg News reports that Evadix Group SA said
it is seeking protection from creditors for three operational
subsidiaries in the commercial court in Tournai, Belgium.

Citing a statement posted on the company's Web site, Bloomberg
discloses Evadix is seeking creditor protection for Evadix DMS,
Casterman Printing and Evadix Etibel to give the company
additional time to reorganize itself and restore profitability

Evadix SA -- http://www.evadix.com/default.jsp-- is a Belgium-
based provider of printing, direct marketing and logistics
products and services for professionals.  The Printing division
offers digital pre-press, large-format digital transfer to film,
offset printing on rotary presses and on sheet-fed presses and
binding services.  The Direct Marketing division provides such
services as computer processing and data management, customized
laser and inkjet printing, preparation for mailing and film
wrapping.  The Logistics division supplies various services, such
as warehouse management, order preparation, flow management, as
well as e-business solutions.  As of December 31, 2008, Evadix SA
had a number of subsidiaries, including EVADIX DIRECT MARKETING,
EVADIX.NET, EVADIX ETIBEL, EVADIX BILOG, CASTERMAN PRINTING and
EVADIX FRANCE, among others.


===============
B U L G A R I A
===============


KREMIKOVTZI AD: Bulgaria Gov't May Opt for Liquidation
------------------------------------------------------
The Bulgarian government may opt to liquidate Kremikovtzi AD or
implement a healing plan, Novinite.com reports citing Traicho
Traikov, the country's economy and energy minister.

"A final decision is yet to be taken," the report quoted the
economy ministery as saying.

The report relates the statement followed media reports in the
local press, which citing unnamed sources from the finance
ministry, said that the new government will insist on the
liquidation of the steel mill.

                         About Kremikovtzi

Headquartered in Sofia, Bulgaria, Kremikovtzi AD --
http://www.kremikovtzi.com/-- is a company principally engaged in
the steel industry.  Its production capacity includes a complete
steel production cycle, from ore mining to finished products, such
as hot rolled and cold rolled products (coils, slabs, plates,
blooms and billets), different thickness wire rods and tubes.  The
Company's product range also includes coke and chemical products,
ferro-alloys and metallurgical lime.  The Company operates through
a number of subsidiaries, including Kremikovtzi Trans EOOD,
Nezavisima laboratoriya za analizi EOOD, Kremikovtzi rudodobiv AD,
Ferosplaven zavod EOOD, Global Trade Trans and Kremi Logistics
EOOD, among others.  The Company has undergone the insolvency
process since August 6, 2008.

As reported in the Troubled Company Reporter-Europe on Aug. 8,
2008, the Sofia City Court commenced insolvency proceedings
against Kremikovtzi AD after declaring it bankrupt.  The court
appointed a temporary bankruptcy administrator for the steelmaker.
The court also ruled that Kremikovtzi's insolvency started on
Dec. 31, 2005.  As of Dec. 31, 2007, the company had BGN1.63
billion (US$1.3 billion) in total debts.


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


NATIXIS SA: Suspends Share Trading on Likely BPCE Asset Guarantee
-----------------------------------------------------------------
Jethro Mullen and William Horobin at Dow Jones Newswires report
that Natixis SA yesterday suspended trading in its shares
following a press report that its parent bank BPCE may guarantee
some of its toxic assets.

Natixis, as cited by Dow Jones, said it has requested that its
shares be suspended for the whole of Tuesday, until its second-
quarter results, along with those of BPCE, are published before
the market opens today.

Dow Jones relates the measures came after French daily Les Echos
reported earlier yesterday that BPCE, which owns 71.54% of
Natixis, would be willing to provide formal guarantees for risky
and toxic assets.

According to Dow Jones, a Paris-based trader said suspending the
shares was a wise move, noting that investors are awaiting news on
a variety of issues from the earnings report, including
restructuring, possible asset guarantees, and comment on recurrent
speculation about a delisting of the stock.

Dow Jones recalls BPCE said earlier this month that it may
consider reorganizing or transferring some Natixis assets.
Dow Jones notes citing several unidentified sources, the report in
Les Echos said a state guarantee of Natixis's assets would be too
costly for the bank to be justifiable at this stage.

                     About Natixis SA

Headquartered in Paris, France, Natixis SA (EPA:KN) --
http://www.natixis.com/-- is a France-based bank offering various
services and engaged in different activities.  Its main activities
comprise corporate and investment banking, asset management,
receivables management, private equity and private banking, retail
banking and other services.  The Bank is active in a number of
countries in Europe, the Americas, Africa, Asia and Oceania.  As
of December 31, 2008, Natixis SA had a number of subsidiaries,
including Ixis Corporate & Investment Bank, Ixis Asset Management
Group, Coface and Natixis Asset Management, among others.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on July 8,
2009, Moody's Investors Service downgraded the bank financial
strength rating of Natixis to D from D+.  The outlook on the BFSR
is negative.


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


ARCANDOR AG: Ex-Chief Faces Two Inquiries in Germany
----------------------------------------------------
Carter Dougherty at the New York Times reports that Thomas
Middelhoff, the former chairman and chief executive of Arcandor
AG, is facing two inquiries related to his four years at the
company.

According to the report, Mr. Middelhoff is being investigated for
possible breach of trust, a criminal charge in Germany.
The report relates German prosecutors are investigating Mr.
Middelhoff, who once led the media company Bertelsmann, over real
estate deals between a business associate and Arcandor itself,
which filed for bankruptcy this spring.

Klaus Hubert Goerg, Arcandor's bankruptcy trustee is also studying
whether the administrative expenses that Mr. Middelhoff incurred
could be grounds for a civil suit, the report discloses.  The
report says the bankruptcy trustee has up to three years to sue
former executives on behalf of creditors.

The report states Mr. Goerg has said he was surprised by Mr.
Middelhoff's use of Challenge Air, a luxury charter airline.
According to the report, Mr. Middelhoff had spent EUR811,000, or
US$1.2 million at current exchange rates, on Challenge Air flights
in 2006, when Arcandor was fighting to stay afloat.

"The administrative costs for the top executives were very high,"
the report quoted Mr. Goerg as saying.  "In any case, very high
for a company in the financial shape of Arcandor."

The report notes Mr. Middelhoff, however, said that any use of the
planes had been approved by the board, and he denied that the
trustee would have the basis for a claim.

                      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.


PFLEIDERER AG: Breaches Debt Covenants; Optimistic on Financing
---------------------------------------------------------------
With the presentation of its half-year figures, MDAX-listed
Pfleiderer AG (ISIN DE 0006764749) has confirmed that it was
unable to fulfill the financial covenants agreed upon with its
creditor banks.  The company already indicated this possibility in
the middle of June.  The first half of 2009 was significantly
affected by the recession both on the revenue side and on the
earnings side.  Unit sales and prices achieved were both lower
than in the first half of last year.  Revenue fell by 24.5%
compared with the prior-year period to EUR692.4 million.  The
effects of currency translation reduced revenue by EUR38.9 million
or 4%.  In regional terms, the strongest drop in revenue was of
39.4% in Eastern Europe, while the Pfleiderer Group posted revenue
growth of 0.5% in North America.  The share of revenue generated
outside Germany was 71.5%, compared with 71.9% in the first half
of 2008.

Despite the sharp drop in revenue, the Pfleiderer Group was able
to increase its gross margin compared with the prior-year period
from 25.7% to 26.2%, thanks to lower raw-material prices,
efficiency improvements and consistent cost reductions.  An
additional factor affecting the gross margin was the release of
provisions in an amount of EUR10.0 million.  Lower business
volumes led to significant under-utilization of the plants'
capacities.  This impact was dampened by reducing working hours to
offset overtime on employees' work accounts and by reducing the
use of temporary workers, as well as by the flexible application
of short-time work in various plants, depending on the order
situation.

As a result of the cost cutting actions, selling expenses
decreased compared with the prior-year period by 16.0% to
EUR100.4 million, and administrative costs were reduced by 9.4%
compared with the prior-year period to EUR59.6 million.  First-
half EBITDA fell to EUR79.1 million, compared with EUR119.5
million euros in the prior-year period.  The resulting EBITDA
margin for the first half of this year was 11.4%.  EBIT fell to
EUR22.6 million, from EUR54.8 million in the first half of last
year.  Depreciation and amortization totaled EUR56.5 million; this
figure includes impairment charges of EUR4.0 million.

The net financial expense of EUR26.3 million represents an
improvement of EUR5.5 million compared with the first half of
2008.  This was due on the one hand to generally lower market
interest rates, which reduced the interest expense from EUR27.4
million to EUR23.0 million, and on the other hand to a lower
miscellaneous financial expense of EUR4.1 million.  The latter
resulted from non-operating charges of EUR1.9 million from the
mark-to-market valuation on the balance sheet date of financial
positions denominated in foreign currencies, as well as charges of
EUR2.4 million from forward exchange transactions and interest-
rate hedges.  In the prior-year period, the miscellaneous items
under net financial result amounted to an expense of EUR7.9
million.

The result of continuing operations before taxes thus amounted to
a loss of EUR3.7 million, compared with a profit of EUR22.9
million for the first half of 2008.  Due mainly to the
capitalization of tax-loss carryovers at Pergo, a Pfleiderer
subsidiary, there was a tax gain of EUR7.9 million.  The profit
for the period amounted to EUR3.7 million, compared with 16.3
million euros in the prior-year period.

After deducting profit attributable to minority interest and the
hybrid bondholders, a loss of EUR2.8 million is attributable to
the shareholders of Pfleiderer AG, compared with a profit of
EUR5.3 million in the first half of last year.  A liability will
be formed for the suspended interest payment to hybrid bondholders
because they are entitled to the subsequent payment of that
interest.  The diluted and basic loss per share for the first half
of this year amounts to 6 euro cents, compared with earnings per
share of 10 euro cents for the first half of last year.

                               Talks

"Our half-year results are a reflection of the global financial
and economic crisis.  We are adjusting to this situation with
strict cost management as well as innovative product solutions.
Our approach has been affirmed by numerous prizes and awards, but
also by actual contracts concluded with renowned customers.  With
regard to the talks we are holding with our banks, we are
confident that we will bring them to a successful conclusion in
the coming months and will thus secure the Group's long-term
financing.  This also includes talks with KfW," stated Hans H.
Overdiek, CEO of Pfleiderer AG, upon the announcement of the half-
year figures.

                          Western Europe

In the Western Europe region, the Pfleiderer Group posted a
revenue decline of 28.4% to EUR369.3 million.  All sales sectors
and regions are meanwhile affected by the decline, including the
German domestic market, which had previously been relatively
stable.  The fall in prices of standard products is continuing,
whereas prices of higher-value processed products have been
largely maintained.  Unit sales of laminate flooring continued to
fall in Western Europe.  In order to boost sales in the respective
markets, Pergo set up flooring competence centers in Berlin,
Paris, Zurich and Barcelona in the second quarter.  EBIT in
Western Europe fell from EUR63.7 million to EUR11.7 million.
Strict cost management and substantial savings in full-year 2009
were already decided upon and initiated in January.  The
structural measures that resulted are intended to adjust the cost
position to the ongoing weak demand.  The negative market
development will be counteracted by capacity reductions through
short-time work, savings, a workforce reduction of approximately
200 persons, and sales-boosting innovations.

                          Eastern Europe

In Eastern Europe, the Pfleiderer Group's revenue declined by
39.4% to EUR124.9 million.  Exchange-rate effects accounted for
EUR42.1 million or 21 percentage points of the decrease.  The
other factors responsible for the revenue decline were falling
demand from the furniture industry due to the serious effects of
the financial market crisis in this emerging region and the sharp
fall in prices.  Poland and Russia are affected by this
development, whereby the situation in Russia is more difficult.
During the reporting period, MDF was the least affected by the
negative trend, but still resulted in falling revenue.  EBIT for
the Eastern Europe region amounted to EUR2.0 million in the first
half of 2009, compared with EUR12.0 million in the prior-year
period.

                           North America

In its North American sales markets, the Pfleiderer Group
increased its revenue in the first half of the year by 0.5%
compared with the prior-year period to EUR211.5 million.  This
growth was primarily achieved in the flooring segment, in which
Pergo further increased its share of a shrinking market.  Total
unit sales of panels declined, but at a lower rate than the market
average.  A little growth was achieved with MDF and HDF, but unit
sales of raw particleboard decreased. EBIT for the first half of
2009 amounted to EUR8.8 million, compared with an EBIT loss of
EUR13.2 million in the prior-year period.  The earnings turnaround
seemed to be achieved in the second quarter, in which revenue
increased by a significant 7.5% compared with Q2 008 to 107.0
million euros, despite the ongoing recession.  Second-quarter EBIT
amounted to plus EUR2.8 million, compared with minus 14.3 million
euros in the second quarter of last year.  In the fourth quarter
of this year, the new MDF plant in Moncure, USA will go into
operation on schedule, and will further improve the cost position
in North America.

                             Cash Flow

In the first half of the year, there was a net cash outflow from
operating activities of EUR54.0 million, compared with a net cash
inflow of EUR35.5 million in the prior-year period.  This negative
cash flow was partially due to the reduction in EBIT of EUR32.2
million as well as the change in current liabilities.  The latter
primarily reflects a decrease in trade liabilities of EUR57.6
million.  The Group's net debt increased compared with the end of
2008 from EUR635.5 million to EUR797.5 million, whereby the ratio
of net debt to equity (gearing) rose to 114.5%.

As a result of the declining markets, Pfleiderer also reduced its
capital expenditure including advance payments made.  In the first
half of 2009, it fell compared with the prior-year period by
12.8% to EUR61.8 million.  EUR10.4 million was accounted for by
the Western Europe region.  EUR32.8 million was invested in North
America, mainly for the development of the MDF plant in Moncure.
Investment of EUR17.3 million in Eastern Europe includes the
expenditure for the development of the MDF plant in Novgorod,
Russia; no date can yet be set for when that plant will go into
operation.

Headquartered in Neumarkt, Germany, Pfleiderer AG --
http://www.pfleiderer.com-- is a producer and supplier of
engineered wood products.  It acts as a partner for wood trade
outlets, interior designers, the building and do-it-yourself
trade, and the furniture industry in more than 80 countries
worldwide.  The Company offers a range of base products, such as
raw chipboard and particleboard, tongue and groove board, medium-
density fiberboard and high- density fiberboard, and surfaced
products, such as melamine-faced chipboard, high-pressure
laminates and post-forming elements, laminate flooring and a range
of films and surfacings.  The Company operates through three
geographical segments: Western Europe, including Germany and
Sweden; Eastern Europe, consisting of Poland and Russia, and North
America, comprised of Canada and the United States.

                           *     *     *

On June 23, 2009, the Troubled Company Reporter-Europe reported
that Fitch Ratings downgraded Pfleiderer AG's Long-term Issuer
Default Rating to 'BB-' from 'BB'.  At the same time, Fitch placed
the company's IDR on Rating Watch Negative.  The Short-term IDR
was affirmed at 'B'.


* GERMANY: Mulls of Extension of Looser Insolvency Rules
--------------------------------------------------------
Patrick Donahue at Bloomberg News report that Chancellor Angela
Merkel's government plans to extend looser insolvency rules for
German companies with a "high probability" of remaining in
business.

Citing a draft law put forward by the ruling parties, Bloomberg
discloses an adjustment to insolvency regulations, which had been
scheduled to expire at the end of next year, would remain through
Dec. 31, 2013.

According to Bloomberg, companies deemed healthy in spite of their
inability to cover liabilities don't have to declare insolvency
under the rule contained in a law on bank rescues.


* GERMANY: Public Sector Banks May Increase Loan Loss Provisions
----------------------------------------------------------------
James Wilson at The Financial Times reports that several of
Germany's biggest public sector banks are likely to reveal steep
rises in loan loss provisions this week even as optimism grows
that the country is pulling out of its economic crisis.

The FT relates Germany's economy has recently shown a surprisingly
strong recovery, with gross domestic product rising 0.3% in the
three months to the end of June after falling sharply in the
preceding two quarters.  According to the FT, many analysts have,
however, warned that the worst could be yet to come for the
country's corporate and banking sectors, as companies' working
capital becomes scarce and corporate downgrades mean banks have to
set aside more capital to cover losses.

The FT discloses Standard & Poor's, the credit rating agency,
published a "base case" that domestic loan losses could reach
EUR80 billion, or 3.5% of lending, by 2011.  The agency's assumed
percentage of losses for larger banks, such as Landesbanken and
the biggest private sector bank, is even higher, at 4% to 5% of
lending, the FT notes.

"These potentially high loan losses mainly reflect the speed and
depth of Germany's worst [post-second world war] recession,"
the FT quoted S&P as saying.  "We consider there to be a high risk
that domestic corporate and private insolvencies will rise to new
post-unification highs, potentially in 2010."


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I R E L A N D
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DECO SERIES: Moody's Downgrades Ratings on Class F Notes to 'Ba2'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the Class F Commercial
Mortgage Backed Notes issued by Deco Series 2005-Pan Europe 1 plc
(amount reflects initial outstandings) and kept the rating of the
Class F Notes on review for further downgrade:

  -- EUR40M Class F Commercial Mortgage Backed FRN due 2014
     Certificate, Downgraded to Ba2 Remaining on Review for
     Possible Downgrade; previously on Aug 14, 2009 A3 Placed
     Under Review for Possible Downgrade.

Moody's placed the Class D, Class E, and Class F Notes on review
for possible downgrade on August 14, 2009.  The review status of
the Classes D and E are not affected by the rating action.

Deco Series 2005-Pan Europe 1 plc represents the securitization of
initially seven commercial mortgage loans originated by Deutsche
Bank AG, London Branch that are secured by mainly first ranking
mortgages on 49 retail, commercial and multifamily properties
located across Germany and Switzerland.  In April 2007, the
largest loan (Centro loan), which contributed 75.4% to the initial
pool balance, prepaid.  The prepayment was allocated 75%
sequential and 25% pro-rata to the Notes, thereby significantly
increasing the credit enhancement available to the Class A2, Class
B, Class C and the Class D Notes.  The rating action is the result
of the ongoing transaction review, which was initiated when the
Class D, Class E and Class F Notes were placed on review for
possible downgrade.

During the course of its initial analysis, Moody's has determined
that due to the high refinancing risk in 2010 in light of
declining property values, the rating of Class F is not
commensurate with an investment grade rating anymore:

  (i) Refinancing risk.  About 46% of the loans by current
      outstanding balance are due to be repaid in 2010 and the
      remaining loans will mature in 2012.  The first upcoming
      loan maturity is in January 2010 for the Project Suisse Loan
      (22.8% of the current pool), which has a current underwriter
      whole loan to value of 86%.  The Hanover Loan (17.1% of the
      pool) and the Trabrennbahn Loan (6.1% of the pool, cross
      collateralized with the Deutsche Post Loan.  24% of the
      portfolio) will also mature in 2010.  In Moody's view, the
      default risk for these loans at the respective loan maturity
      dates has increased significantly compared to the closing
      analysis.

(ii) Decline in property values.  Moody's expects that property
      values especially in Germany will decline further over the
      next year, which will potentially lead to further increased
      LTVs, which in turn increases the refinancing risk and the
      loss severity in case of loan defaults.

Moody's will conclude its transaction review after it has
finalized the re-assessment of the securitized loans and
potentially has more information as regards the refinancing
efforts for the Project Suisse Loan that matures in January 2010.


GALENA CDO: S&P Lowers Rating on Class A-2J10 JPY Notes to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the class
A-2J10 JPY notes issued by Galena CDO II (Ireland) PLC, a
synthetic corporate investment-grade collateralized debt
obligation transaction, to 'D' from 'CCC+'.  S&P subsequently
withdrew the rating.

The downgrade and withdrawal follow the June 26, 2009, unwind
agreement stating that the notes were cancelled, experienced a
principal loss, and were not paid in full.

                   Rating Lowered And Withdrawn

                   Galena CDO II (Ireland) PLC

                                    Rating
                                    ------
              Class         To     Interim     From
              -----         --     -------     ----
              A-2J10        NR     D           CCC+

                          NR - Not rated.


NEW BOND: Moody's Downgrades Rating on Class A Notes to 'C'
-----------------------------------------------------------
Moody's Investors Service has downgraded its ratings of two
classes of notes issued by New Bond Street CDO 2 Limited, a
structured finance CDO.

The transaction is a partially-funded managed CDO of asset backed
securities.  The Issuer is able to source collateral either by
cash obligations or entering into pay-as-you-go Credit Default
Swap or Total Return Swap transactions referencing asset backed
securities.

On August 17, 2009, an event of default, as reported by the
Issuer, occurred as a result of a failure to have sufficient funds
to pay amounts due to the synthetic asset counterparty, on the
Class A notes and on the Class B notes.  During the occurrence and
continuance of an event of default, controlling creditors of the
Issuer may be entitled to direct the Trustee to take particular
action with respect to the underlying collateral securities and
the notes.  If controlling creditors elect to accelerate the notes
as a post-event-of-default remedy, the notes become immediately
due and payable and the Trustee will liquidate the underlying
collateral securities to redeem the notes.  The liquidation
proceeds will be distributed in accordance with the post-
enforcement priority of payment in which the termination payments
related to CDS and TRS transactions are paid before the redemption
of the notes.  The rating actions reflect Moody's concerns on the
occurrence and consequence of such scenarios.

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

  -- Moody's Approach to Rating SF CDOs, March 2009

The rating actions are:

Issuer: New Bond Street CDO 2 Limited

  -- US$1,750,000 Class X Floating Rate Notes due 2013, Downgraded
     to B3; previously on Dec 19, 2008 Downgraded to Aa3 and
     Remains On Review for Possible Downgrade

  -- US$100,000,000 Class A Floating Rate Notes due 2067-1,
     Downgraded to C; previously on Mar 11, 2009 Downgraded to Ca


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


RISANAMENTO SPA: Has "Important" Projects in Milan, Intesa Says
---------------------------------------------------------------
Jerrold Colten and Elisa Martinuzzi at Bloomberg News report that
Intesa Sanpaolo SpA Chief Executive Officer Corrado Passera said
Risanamento SpA, a real estate company it has loaned money to, has
"important" projects for the city of Milan.

According to Bloomberg, Mr. Passera is "waiting" to hear details
of Risanamento's new industrial plan.

                      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.


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


HASMA BUSINESS: Creditors Must File Claims by September 17
----------------------------------------------------------
LLC Hasma Business World is currently undergoing liquidation.
Creditors have until September 17, 2009 to submit proofs of claim
to:

         Pobeda Ave. 179
         Lebedinovka
         Alamudunsky
         Chui
         Kyrgyzstan


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


HEAD NV: S&P Raises Long-Term Corporate Credit Rating to 'CCC-'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating on Netherlands-based and Austria-
managed sports equipment manufacturer Head N.V. to 'CCC-' from
'SD' (Selective Default).  The outlook is negative.

At the same time, S&P raised the issue rating on the 8.5% senior
unsecured notes due February 2014 issued by related entity HTM
Sport und Freizeitgeraete AG to 'CC' from 'D' (Default).  In
addition, S&P assigned a 'CCC-' issue rating to the
EUR43.7 million of new 10% senior secured notes due August 2012,
issued by HTM, the same level as the corporate credit rating on
Head N.V.

The upgrade reflects the completion of a private offer to exchange
HTM's existing notes for new 10% senior secured notes due 2012.

"The completion of the exchange offer affects about 75% of the
outstanding principal amount of the notes and results in a
meaningfully lower debt burden for the group and lower ongoing
interest costs," said Standard & Poor's credit analyst Diego
Festa.

The group can opt to pay interest on the new notes of either 10.0%
in cash or 8.5% in cash and 3.5% through the issuance of payment-
in-kind notes.

The par value of the notes on Head's balance sheet has fallen by
nearly EUR42.0 million.  The annual interest cost relating to
these notes has dropped by nearly EUR3.0 million, although the
cash benefit to Head in the immediate future has been lessened by
the costs of the exchange.  In 2009, there will also be a further
one-off reduction in interest payments of EUR3.6 million due to
the nonpayment of the accrued interest on the notes that have been
tendered.

The negative outlook reflects the likelihood that Head's cash
resources will weaken further, to the point where its available
cash headroom could fall close to zero at the low point in its
2009 working capital cycle.  This would leave it seriously exposed
to further negative developments.  These include the risk of
weakness in demand owing to recessionary pressures and further
pressure on margins as a result of declining production volumes.

"Existing committed funding is likely to enable Head to continue
trading through the low point of its 2009 working capital cycle,"
said Mr. Festa.

However, unless there is an improvement in profitability, the
group might again face the risk of insufficient cash to take it
through the next working capital cycle.  The ratings remain highly
sensitive to the trading outcome in the third and fourth quarters
of 2009.  S&P sees no possibility of any positive rating action in
the short term.


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


LUSITANO MORTGAGES: S&P Affirms Rating on Class E Notes at 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed and removed from
CreditWatch positive its credit ratings on the class D and E notes
issued by Lusitano Mortgages No. 2 PLC.  At the same time, S&P
affirmed its ratings on the class A, B, and C notes.

The affirmations follow a full credit and cash flow analysis of
the most recent transaction information that S&P has received.
Current high credit enhancement levels provided by a cash reserve
and subordinated tranches support the ratings on this transaction.

As the transaction has become more seasoned, some of the portfolio
risk measures have gradually improved.  The collateral's weighted-
average loan-to-value (LTV) ratio has fallen since closing.  In
particular, the number of loans with a weighted-average LTV ratio
above 80% has significantly decreased.

However, this has been offset by the growth in long-term arrears
in this transaction, which had reached 2.19% at the last interest
payment date, while cumulative defaults amount to 1.72%.  S&P
notes that this is higher than in Lusitano Mortgages No. 1 PLC,
which S&P reviewed recently.

Lusitano Mortgages No. 2 is a Portuguese transaction backed by a
pool of performing residential mortgage loans granted to private
first-time buyers.  The originator is Banco Internacional de
Crédito S.A., a wholly owned subsidiary of Banco Espírito Santo,
S.A.

                           Ratings List

                   Lusitano Mortgages No.  2 PLC
   EUR1 Billion Residential Mortgage-Backed Floating-Rate Notes

      Ratings Affirmed and Removed From CreditWatch Positive

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

                        Ratings Affirmed

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


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


ASINOVSKOE LLC: Creditors Must File Claims by August 31
-------------------------------------------------------
Creditors of LLC Asinovskoe (TIN 7002012847, PSRN 1077025000910)
(Wood-Processing Enterprise)have until August 31, 2009, to submit
proofs of claims to:

         Yu.Korepanov
         Insolvency Manager
         Post User Box 4451
         634028 Tomsk
         Russia

The Arbitration Court of Tomskaya commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?67–3864/09.

The Debtor can be reached at:

         LLC Asinovskoe
         Stroiteley Str. 4
         Asino
         Asinovskiy
         Tomskaya
         Russia


KASIMOVSKIY MECHANICAL: Creditors Must File Claims by August 31
---------------------------------------------------------------
Creditors of LLC Kasimovskiy Mechanical Plant No. 8 (TIN
6226007680, PSRN 1056218003610) have until August 31, 2009, to
submit proofs of claims to:

         N. Komkov
         Temporary Insolvency Manager
         Lenina Str. 30B
         Kasimov
         391300 Ryazanskaya
         Russia

The Arbitration Court of Ryazanskaya commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. ?54–2888/2009.

The Debtor can be reached at:

         LLC Kasimovskiy Mechanical Plant No. 8
         Naberezhnaya Str. 2
         Kasimov
         Ryazanskaya
         Russia


KIROV-LES OJSC: Creditors Must File Claims by August 31
-------------------------------------------------------
Creditors of OJSC Kirov-Les-Prom (TIN 4347004312) (Forestry) have
until August 31, 2009, to submit proofs of claims to:

         Yu.Shubin
         Temporary Insolvency Manager
         Novgorodskaya Str. 27A-6
         160022 Vologda
         Russia

The Arbitration Court of Kirovskaya will convene at on December 7,
2009, to hear bankruptcy supervision procedure on the company.
The case is docketed under Case No. A28–8749/2009 195/6.


KONEVO-LES LLC: Creditors Must File Claims by August 31
-------------------------------------------------------
Creditors of LLC Konevo-Les-Prom (TIN 2920010028, PSRN
1052920010351) have until August 31, 2009, to submit proofs of
claims to:

         L. Gorbatova
         Temporary Insolvency Manager
         Novgorodskiy Prospect 153-143
         163061 Arkhangelsk
         Russia

The Arbitration Court of Arkhangelskaya will convene at 2:10 p.m.
on December 23, 2009, to hear bankruptcy supervision procedure on
the company.  The case is docketed under Case No. ?05–7499/2009.

The Court is located at:

         The Arbitration Court of Arkhangelskaya
         Courtroom 304
         Loginova Str. 17
         Arkhangelsk
         Russia

The Debtor can be reached at:

         LLC Konevo-Les-Prom
         Onezhskaya Str. 1
         Konevo
         Plesetskiy
         164284 Arkhangelskaya
         Russia


MONOLIT LLC: Creditors Must File Claims by August 31
----------------------------------------------------
Creditors of LLC Monolit (TIN 0814164199)(Construction)have until
August 31, 2009, to submit proofs of claims to:

         S. Zelenchenkov
         Temporary Insolvency Manager
         Apt. 23
         Prospect Lenina 373
         Volzhskiy
         404133 Volgogradskaya
         Russia

The Arbitration Court of Kalmykia commenced bankruptcy supervision
procedure on the company.  The case is docketed under Case No.
?22–795/2009.

The Debtor can be reached at:

         LLC Monolit
         Gerasimenko Str. 5A
         Elista
         Kalmykia
         Russia


REGION-BIZNES LLC: Creditors Must File Claims by August 31
----------------------------------------------------------
Creditors of LLC Region-Biznes-Stroy (TIN 7017175844, PSRN
1077017011653) (Construction) have until August 31, 2009, to
submit proofs of claims to:

         I. Khodos
         Temporary Insolvency Manager
         Post User Box 138
         630089 Novosibirsk
         Russia
         Tel: 9139874640

The Arbitration Court of Tomskaya commenced bankruptcy supervision
procedure.  The case is docketed under Case No. ?67–1732/09.

The Debtor can be reached at:

         LLC Region-Biznes-Stroy
         Prospect Mira 50
         634059 Tomsk
         Russia


T-STROY LLC: Creditors Must File Claims by August 31
----------------------------------------------------
Creditors of LLC T-Stroy (Construction) have until August 31,
2009, to submit proofs of claims to:

         S. Vorobey
         Insolvency Manager
         Office 605
         Derzhavinskaya Str.16a
         392000 Tambov
         Russia

The Arbitration Court of Tambovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?64–850/09.

The Debtor can be reached at:

         LLC T-Stroy
         Office 1a
         Promyshlennaya zona 8
         Stroitel'
         Tambovskaya
         Russia


UNISTROY-NN LLC: Creditors Must File Claims by August 31
--------------------------------------------------------
Creditors of LLC Unistroy-NN (TIN 5259026076, PSRN 1025202845205)
(Construction) have until August 31, 2009, to submit proofs of
claims to:

         V. Gerasimov
         Temporary Insolvency Manager
         K. Marksa Str. 32
         603159 Nizhny Novgorod
         Russia

The Arbitration Court of Nizhegorodskaya will convene at 9:00 a.m.
on December 1, 2009, to hear bankruptcy supervision procedure on
the company.  The case is docketed under Case No. ?43–14765/2009
27–135.

The Debtor can be reached at:

         LLC Unistroy-NN
         Chaadaeva Str. 2
         603035 Nizhny Novgorod
         Russia


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


AYT COLATERALES: S&P Assigns 'BB' Rating on Class D Notes
---------------------------------------------------------
Standard & Poor's Ratings Services assigned preliminary credit
ratings to the EUR125 million mortgage-backed floating-rate notes
to be issued by AyT Colaterales Global Hipotecario, Fondo de
Titulizacion de Activos.  This issuance is "series AyT Colaterales
Global Hipotecario Manlleu I".

Caixa D'Estalvis Comarcal De Manlleu is securitizing a pool of
EUR125 million of its 100% Spanish residential mortgages, granted
for the acquisition of a first home.  The originator will sell the
assets to the issuer and Confederacion Espanola de Cajas de Ahorro
will be the swap counterparty and bank account provider.

To fund this purchase, four classes of floating-rate notes will be
issued.  The issuer was established as an open fund and can issue
segregated series of bonds.  Each series has its own bank account,
swap contract, priority of payments, and reserve fund.  The
reserve fund of series Manlleu I will be 7.5% of the original
principal balance and will be funded at closing through a
subordinated loan.

The rating on each class of securities is preliminary as of
Aug. 24, 2009, and subject to change at any time.  S&P expects to
assign credit ratings on the closing date subject to a
satisfactory review of the transaction documents and legal
opinion.

S&P will publish a postsale report on this transaction in due
course.

                           Ratings List

                AyT Colaterales Global Hipotecario,
                 Fondo de Titulización de Activos
        EUR125 Million Mortgage-Backed Floating-Rate Notes

                       Prelim.        Prelim.
                       rating         amount (Mil. EUR)
                       -------        -----------------
           A           AAA            111.2
           B           A                6.3
           C           BBB              5.0
           D           BB               2.5


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


APPLITEC MALEREIBUSINESS: Claims Filing Deadline is August 31
-------------------------------------------------------------
Creditors of applitec MALEREIBUSINESS GmbH are requested to file
their proofs of claim by August 31, 2009, to:

         Gabriel Zingg
         alte Bahnhofstrasse 21
         8957 Spreitenbach
         Switzerland

The company is currently undergoing liquidation in Spreitenbach.
The decision about liquidation was accepted at a shareholders'
meeting held on August 18, 2008.


F & B RESOURCES: Claims Filing Deadline is August 31
----------------------------------------------------
Creditors of F & B Resources GmbH are requested to file their
proofs of claim by August 31, 2009, to:

         F & B Resources GmbH
         Schuetzenstrasse 19
         8953 Dietikon
         Switzerland

The company is currently undergoing liquidation in Dietikon.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 12, 2009.


GOSWIN AG: Creditors Must File Claims by August 31
--------------------------------------------------
Creditors of Goswin AG are requested to file their proofs of claim
by August 31, 2009, to:

         Dr. H.J. Zinsli
         via Maistra 5
         7500 St. Moritz
         Switzerland

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


LAPOSTOLLE + HEINEMEYER: Claims Filing Deadline is August 31
------------------------------------------------------------
Creditors of Lapostolle + Heinemeyer AG are requested to file
their proofs of claim by August 31, 2009, to:

         Lapostolle + Heinemeyer AG
         Kichgasse 2
         9470 Buchs SG
         Switzerland

The company is currently undergoing liquidation in Buchs SG.  The
decision about liquidation was accepted at an extraordinary
general meeting held on June 25, 2009.


PALMYRA CAPITAL: Claims Filing Deadline is August 31
----------------------------------------------------
Creditors of Palmyra Capital AG are requested to file their proofs
of claim by August 31, 2009, to:

         Palmyra Capital AG
         Im Bueeler 11
         8704 Herrliberg
         Switzerland

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


SPYCHERMATTE AG: Claims Filing Deadline is August 31
----------------------------------------------------
Creditors of Spychermatte AG are requested to file their proofs of
claim by August 31, 2009, to:

         Revimag Treuhand AG
         Baselstrasse 44
         6252 Dagmersellen
         Switzerland

The company is currently undergoing liquidation in Schoetz.  The
decision about liquidation was accepted at a regular general
meeting held on May 11, 2009.


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


DOGAN YAYIN: Fitch Maintains Issuer Default Ratings at 'B+'
-----------------------------------------------------------
Fitch Ratings has maintained Turkey-based Dogan Yayin Holding's
Long-term foreign and local currency Issuer Default ratings, at
'B+' respectively, on Rating Watch Negative.

DYH's rating is mainly driven by the company's leading ad market
share in the Turkish media and entertainment sector.  It is also
driven by the credit quality of its main operating subsidiary,
Hurriyet Gazetecilik ve Matbaacilik A.S. (rated 'BB-'/Rating Watch
Negative), and DYH's high consolidated leverage following a string
of acquisitions in 2005-2007.

Fitch expects that DYH will target a reduction in leverage through
equity injections from the parent company, Dogan Holding.  The
ratings therefore also reflect DH's strong support for the media
subsidiary through its stand-alone net cash position of
US$850 million at H109.  Fitch notes that DH is fully supportive
of its media business and plans to reduce leverage at the media
subsidiary significantly in the next 12-18 months.  DH has further
increased its stake in DYH to 74.5% and completed a rights issue
of TRY183 million at the DYH level in August 2009.

The RWN is based on a TRY862 million tax fine levied on the sale
of 25% of Dogan TV Holding A.S.'s shares to Axel Springer in FY07-
08, and the "cautionary attachment" that was issued by the tax
authorities on the share certificates -- representing a 53% stake
in Dogan TV Holding as collateral for the tax fine.  Fitch notes
that the government's tax charges are being settled in court.
Fitch would expect to resolve the RWN once the court case is
resolved, which is expected in Q409.  However, it is possible, due
to continued economic weakness and high leverage, that DYH's
rating may remain under pressure even upon a resolution of the
RWN.

Ad spending has declined 25%-30% y-o-y since H108, which has
negatively affected the revenue and operating margins of DYH's
operating companies.  Fitch is also concerned about the
operational weakness on the broadcasting front, especially at Star
TV, and cautions that cash outflows for broadcasting investments
-- such as Kanal D Romania, and the new digital platform D-SMART
-- weighed on DYH between FY07-H109.

The average debt maturity is concentrated in 2009-2011
(US$351 million, US$342 million, and US$272 million in 2009, 2010,
and 2011 respectively), and is mostly related to the TME
acquisition in H107 and its broadcasting assets under Dogan TV.
The debt maturity concentration elevates DYH's refinancing risk
and exposure to interest rate fluctuations.

The company's main focus is on deleveraging, due to an increase in
leverage metrics to well above historical levels at FYE08.  Fitch
believes deleveraging will be hard to achieve in the present
economic environment, and further rights issues by DH or asset
sales by DYH may be pursued in 2009-10.  Fitch expects DYH will
record a net consolidated debt (including interest-bearing trade
liabilities)/Operating EBITDAR metric of approximately 5x at
financial year-end 2010, compared with 7.25x at FYE08.

DYH's rating could come under pressure if it is unable to reduce
consolidated leverage, and if DH does not provide the required
additional capital to its media business.  The TRY862 million tax
fine, if paid, would place a significant extra burden on internal
cash flow and would increase the group's refinancing risk.  The
potential payment of such a fine would also require direct support
from Dogan Holding.

DYH is owned by the Dogan Group through Dogan Sirketler Grubu A.S.
(74.53%), the Dogan Family (2.30%) and Aydin Dogan Vakfi (0.67%),
giving the Dogan Group a combined 77.5% equity holding and voting
interests.  The remaining 22.5% of DYH's shares are free float.


HURRIYET GAZETECILIK: Fitch Maintains 'BB-' Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has maintained Hurriyet Gazetecilik ve Matbaacilik
A.S.'s Long-term foreign and local currency Issuer Default
ratings, at 'BB-' respectively, on Rating Watch Negative.  The
Turkey-based newspaper group's National Long-term rating, of 'AA-
(tur)', is also maintained on RWN.

The rating action reflects Hurriyet's leading market position in
Turkey where it has a 10.0% share of daily newspaper sales and a
40% share of newspaper advertising revenue.  Hurriyet's ratings
also reflect its strong free cash flow generation -- US$52 million
in FY08 -- despite declining EBITDA margins.

Hurriyet's Long-term foreign currency IDR is rated one-notch above
the IDR of its parent company, Dogan Yayin Holding AS (DYH,
'B+'/Rating Watch Negative) and accounts for the fact that there
are weaker links between DYH and Hurriyet due to dividend
restrictions.  The ratings also reflect the fact that DYH only has
a 67% stake in Hurriyet (the rest is free float) and that although
DYH's guarantee over Hurriyet's debt relates to the acquisition of
TME, Hurriyet does not provide any cross-guarantees for other DYH
group companies.  (This approach is consistent with Fitch's 19
June 2007 Parent and Subsidiary Rating Linkage criteria report,
and results in a one notch differential for Hurriyet's rating.)

Despite these factors, Hurriyet's exposure to DYH group-wide risks
is a significant credit constraint on its ratings due to the
rating linkage between the company and DYH.  Hurriyet was placed
on RWN on 2009 March following the placing of the parent company,
Dogan Yayin Holding, on RWN in March 2009.  A downgrade or upgrade
of DYH's rating would have direct implications for Hurriyet's
rating.  Hurriyet is DYH's main operating subsidiary and is the
key driver of DYH's creditworthiness.

Hurriyet's 2009 ad revenue will be affected by a forecasted 20%
decline in ad revenue, lower newspaper circulation, and the
depreciation of the lira versus the dollar.  A 15% y-o-y fall in
the number of pages will translate into lower newsprint costs in
2009, and lower marketing and personnel expenses will limit the
decline in operating margins.  Consequently, Fitch expects no
pick-up in Hurriyet's EBITDA margins in 2009 despite management's
continuing efforts to cut costs.  Hurriyet's FCF remains strong
due to limited capex requirements, but may decline in 2009 due to
higher cash interest expenditure.

Hurriyet has limited refinancing risk of US$62.5 million in 2009,
as the company had a healthy consolidated cash position of
US$147.2 million as of May 2009.  Its average debt maturity is
still long-term, and mostly related to the TME acquisition.
However, the company faces maturities of US$158 million and
US$134 million in 2010 and 2011, respectively.  Fitch notes that
the restricted rights issue of TRY90 million by DYH will boost the
company's cash balance in H209.  Hurriyet's credit metrics
deteriorated in 2008 and the first half of 2009 due to the
depreciation of the lira and the Russian rouble versus the dollar,
and its impact on the operating margins of both companies.  The
company's credit metrics, including supplier loans, should return
to below 3x net debt/EBITDA at FYE09 despite lower ad revenue and
operating margins as management continues its cost-cutting
efforts, and due to a fresh capital injection of TRY90 million
from DYH.


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


BRICKYARD LLC: Creditors Must File Claims by August 28
------------------------------------------------------
Creditors of LLC Brickyard (code EDRPOU 25231284) have until
August 28, 2009, to submit proofs of claim to:

         V. Vinnikov
         Insolvency Manager
         Sportivnaya Str. 2/9
         Pustomity
         81100 Lvov
         Ukraine

The Economic Court of Lvov commenced bankruptcy proceedings
against the company.  The case is docketed under Case No. 31/292.

The Court is located at:

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

The Debtor can be reached at:

         LLC Brickyard
         Borschevskaya Str. 43
         Peremishliany
         81200 Lvov
         Ukraine


ECO-STATUS LLC: Creditors Must File Claims by August 29
-------------------------------------------------------
Creditors of LLC Eco-Status (code EDRPOU 35677455) have until
August 29, 2009, to submit proofs of claim to:

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

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company on July 15, 2004.  The case is docketed under
Case No. 5/76b.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Eco-Status
         Krasnogvardeysky Ave. 46
         83076 Donetsk
         Ukraine


INDUSTRIALBANK: Moody's Withdraws 'E+' Bank Strength Rating
-----------------------------------------------------------
Moody's Investors Service has withdrawn these ratings of
Industrialbank: bank financial strength rating of E+, the long-
term and short-term local currency and foreign currency deposit
ratings of B3/Not Prime, and national scale rating of Baa3.ua.
The long-term local and foreign currency deposit ratings carry a
negative outlook.

Moody's has withdrawn these ratings for business reasons following
the official request from IB.

Moody's notes that, as of the date of the ratings withdrawal, IB
had no outstanding debts rated by Moody's.

Moody's previous rating action on IB was on December 30, 2008 when
the rating agency changed the outlook on the bank's long term
ratings to negative from stable.

Headquartered in Zaporozhye, Ukraine, Industrialbank reported
consolidated total assets (under IFRS) of UAH3.59 billion
(US$790 million) and net income of UAH74 million (US$14.7 million)
as of December 31, 2007.


KARNA LLC: Creditors Must File Claims by August 28
--------------------------------------------------
Creditors of LLC Karna (code EDRPOU 33287202) have until
August 28, 2009, to submit proofs of claim to I. Gaborak, the
company's insolvency manager.

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company on July 14, 2009.  The case is
docketed under Case No. B24/151-09.

The Court is located at:

         The Economic Court of Dnepropetrovsk
         Kujbishev Str. 1a
         49600 Dnepropetrovsk
         Ukraine

The Debtor can be reached at:

         LLC Karna
         Nauchnaya Str. 1
         Doslednoye
         52071 Dnepropetrovsk
         Ukraine


KRAY-SERVICE LLC: Creditors Must File Claims by August 29
---------------------------------------------------------
Creditors of LLC KRay-Service (code EDRPOU 35679054) have until
August 29, 2009, to submit proofs of claim to:

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

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company on July 15, 2004.  The case is docketed under
Case No. 5/75b.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC KRay-Service
         Office 1
         Kirov Str. 90
         83037 Donetsk
         Ukraine


KREMENCHUG CAR: At Risk of Going Bankrupt, Astrum IM Says
---------------------------------------------------------
Astrum IM reports that the Kremenchug Car Assembling Plant, a
member of the AIS Group, is facing bankruptcy.

According to the report, KrASZ posted a net loss of UAH32.8
million in the first half of 2009.  The company decreased its car
output by 89% y/y to 1,860 cars in the first half of the year, the
report notes.  The company's net sales fell by 90% to UAH54.6
million, the report discloses.  The company's total assets
decreased by 28% over the first half of 2009 to UAH634 million,
while its interest bearing debt stands at UAH509 million at the
end of June 2009, the report states.

                        Bankruptcy Petition

The report relates a bankruptcy case against KrASZ is being heard
in court in the Poltava region court in Ukraine.  The court opened
bankruptcy proceedings against KrASZ on Aug. 12, at the request of
AZCH-service, which is owed UAH0.28 million by the company, the
report says.


ORION LLC: Creditors Must File Claims by August 29
--------------------------------------------------
Creditors of LLC Production and Investment Company Orion (code
EDRPOU 31504135) have until August 29, 2009, to submit proofs of
claim to:

          V. Levchenko
          Insolvency Manager
          Post Office Box 1819
          49027 Dnepropetrovsk
          Ukraine

The Economic Court of Dnepropetrovsk region commenced bankruptcy
proceedings against the company on July 16, 2009.  The case is
docketed under Case No. B15/75-09.

The Court is located at:

          The Economic Court of Dnepropetrovsk
          Kujbishev Str. 1a
          49600 Dnepropetrovsk
          Ukraine

The Debtor can be reached at:

          LLC Production and Investment Company Orion
          Teplichnaya Str. 15
          Yubileynoye
          52005 Dnepropetrovsk
          Ukraine


PURE METALS: Creditors Must File Claims by August 28
----------------------------------------------------
Creditors of OJSC Pure Metals (code EDRPOU 00194748) have until
August 28, 2009, to submit proofs of claim to:

         V. Martinok
         Insolvency Manager
         Office 219
         Nekrasov Str. 115
         Belaya Tserkov
         Kiev
         Ukraine

The Economic Court of Kirovograd commenced bankruptcy proceedings
against the company on May 12, 2009.  The case is docketed under
Case No. 14/60.

The Court is located at:

         The Economic Court of Kirovograd
         Lunacharsky Str. 29
         25006 Kirovograd
         Ukraine

The Debtor can be reached at:

         OJSC Pure Metals
         Zavodskaya str. 3
         Svetlovodsk
         Kirovograd
         Ukraine


RAPID-INVEST LLC: Creditors Must File Claims by August 28
---------------------------------------------------------
Creditors of LLC Rapid-Invest Subsidiary Company Dnepro-Cosmetics
(code EDRPOU 32776801) have until August 28, 2009, to submit
proofs of claim to I. Golovachev, the company's insolvency
manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on February 11, 2009.  The case is docketed
under Case No. 43/230.

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 Rapid-Invest Subsidiary Company Dnepro-Cosmetics
         Komintern Str. 6-A
         01032 Kiev
         Ukraine


YAROVIT LLC: Creditors Must File Claims by August 28
----------------------------------------------------
Creditors of LLC Yarovit (code EDRPOU 30394114) have until
August 28, 2009, to submit proofs of claim to:

         V. Vinnikov
         Insolvency Manager
         Sportivnaya Str. 2/9
         Pustomity
         81100 Lvov
         Ukraine

The Economic Court of Lvov commenced bankruptcy proceedings
against the company.  The case is docketed under Case No. 21/10.

The Court is located at:

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

The Debtor can be reached at:

         LLC Yarovit
         Borschevskaya Str. 23a
         Peremishliany
         81200 Lvov
         Ukraine


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


BRITISH AIRWAYS: Full-Year Revenue to Decline by GBP1 Billion
-------------------------------------------------------------
Steve Rothwell at Bloomberg News reports British Airways Plc said
full-year revenue may fall by GBP1 billion (US$1.65 billion) if
the decline in sales continues at the same pace as in the fiscal
first quarter.

"There is no quick fix in sight for us," Bloomberg quoted BA Chief
Financial Officer Keith Williams as saying in the carrier's weekly
staff newsletter.  "It is likely that recovery in the U.K. and the
U.S. will take some time."

Bloomberg relates Mr. Williams said the airline's recovery would
likely lag behind improvement in economic growth and that the
company needs to add more cash to see it through the slump.

On Aug. 4, 2009, the Troubled Company Reporter-Europe, citing the
Wall Street Journal, reports that BA posted a pretax loss of
GBP148 million (US$247.2 million) for the quarter ended June 30,
compared with a profit of GBP37 million a year earlier, citing
declining passenger numbers and cargo volumes.  According to the
WSJ, the airline's revenue fell 12% to GBP1.98 billion.  BA, as
cited by the WSJ, said it was hit mainly by falling numbers of
passengers flying business and first class during the economic
downturn, lower average revenue per passenger and lower fuel
surcharges.

                       About British Airways

Headquartered in Harmondsworth, England, British Airways Plc,
along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is
engaged in the operation of international and domestic scheduled
air services for the carriage of passengers, freight and mail and
the provision of ancillary services.  The Company's principal
place of business is Heathrow.  It also operates a worldwide air
cargo business, in conjunction with its scheduled passenger
services.  The Company operates international scheduled airline
route networks together with its codeshare and franchise partners,
and flies to more than 300 destinations worldwide.  During the
fiscal year ended March 31, 2009 (fiscal 2009), the Company
carried more than 33 million passengers.  It carried 777,000 tons
of cargo to destinations in Europe, the Americas and throughout
the world.  In July 2008, the Company's subsidiary, BA European
Limited (trading as OpenSkies), acquired the French airline,
L'Avion.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Aug. 12,
2009, Standard & Poor's Ratings Services said that it assigned its
'BB' debt rating to the proposed GBP350 million senior unsecured
convertible bonds to be issued by U.K.—based airline British
Airways PLC (BA; BB/Negative/--).


CHAMPION ENTERPRISES: Obtains 30-Day Waiver Under Credit Facility
-----------------------------------------------------------------
Champion Enterprises, Inc., reports that as a result of
deteriorating operating results during the first half of 2009, it
was not in compliance with the financial covenants contained in
its senior secured credit facility pertaining both to the required
level of 12-month adjusted EBITDA and the required minimum level
of total liquidity.  The Company has obtained a waiver for an
initial period of 30 days while it works together with its lenders
to arrive at a longer-term solution.

"The difficult operating environment coupled with challenging
conditions in the M&A market led to disappointing results with
respect to certain significant asset sales that we hoped to
complete during the quarter," stated Phyllis Knight, executive
vice president and chief financial officer.

"We are actively engaged in discussions with a third party that
has expressed an interest in making an investment in the Company.
At the same time, we are also working with our lenders to find a
more permanent solution either in connection with or as an
alternative to this potential recapitalization.  We appreciate the
ongoing support and cooperation that our lenders have shown as the
Company works through these unprecedented difficulties in the
markets we serve," concluded Mr. Knight.

On August 13, 2009, Champion Enterprises said revenues for the
second quarter ended July 4, 2009, decreased 55.2% to
US$129.5 million compared to US$289.2 million for the second
quarter of 2008.  The Company reported a loss before income taxes
of US$13.3 million for the second quarter compared to pretax
income of US$3.6 million in the same period of 2008.  The
Company's second quarter 2009 net loss totalled US$13.3 million,
or US$0.17 per diluted share, compared to net income of US$3.4
million, orUS$0.04 per diluted share, for the second quarter of
2008.

The loss before income taxes in the second quarter of 2009
included the following items totaling US$700,000 of expense:
restructuring and other plant closing charges totalling
US$2.7 million and foreign currency transaction gains on
intercompany loans of US$2.0 million.  Second quarter 2008 pretax
income included foreign currency transaction gains ofUS$600,000.

During the second quarter, the Company repaid the remaining
US$6.7 million of its Senior Notes due 2009 and borrowed
US$1.3 million under its revolving line of credit.

As of July 4, 2009, the Company had US$596.4 million in total
assets; and total current liabilities of US$269.6 million,
long-term debt of US$193.5 million, deferred tax liabilities of
US$38.1 million, and other long-term liabilities of US$31.4
million; resulting in shareholders' equity of US$63.6 million.

Cash, cash equivalents and short-term investments totalled
US$26.5 million as of July 4, 2009, compared with US$47.8 million
at the end of the first quarter and US$91.3 million at the end of
the second quarter of 2008.  Inclusive of available borrowing
capacity under its revolving line of credit, Champion's total
liquidity stood at US$27.0 million as of July 4, 2009, compared to
US$49.2 million at the end of last quarter.

During the second quarter, the Company closed its manufacturing
facility in Colorado and one of its two plants in Florida and
idled one of its three plants in California.  Primarily as a
result of these restructuring actions, the Company recorded pretax
charges totalling US$2.7 million in the quarter including non-cash
asset impairment charges of US$2.0 million.  Champion now operates
22 manufacturing facilities in North America.

"We are pleased that our results improved over the first quarter,
though difficult market conditions have persisted resulting in a
net loss for the quarter.  In an effort to reduce losses going
forward, we closed or idled three unprofitable plants in the U.S.
during the quarter," stated William Griffiths, chairman, president
and chief executive officer of Champion Enterprises, Inc.

"In Canada, our second quarter unit sales fell 63% from last year,
causing a significant portion of the unfavorable variance in year
over year manufacturing segment results.  The reduction in
manufacturing orders was at least in part driven by a reduction in
Canadian retailer inventory in the face of limited availability of
retailer financing and the general economic slowdown.  However,
order rates in Canada have shown steady improvement over the last
several months and have more recently approached and, in some
cases, even exceeded last year's levels.  In addition, backlogs in
the U.K. have held strong, and our outlook for this business in
the second half of the year remains favorable," Mr. Griffiths
continued.

"While conditions both in the U.S. and abroad remain difficult,
our U.S. markets are beginning to show some signs of stabilization
and we are encouraged by signs of improvements in our non-U.S.
Businesses over the next several quarters.  As a result, we are
optimistic that the worst of this cycle may be behind us,"
concluded Mr. Griffiths.

                   About Champion Enterprises

Troy, Michigan-based Champion Enterprises, Inc. --
http://www.championhomes.com/-- operates 27 manufacturing
facilities in North America and the United Kingdom distributing
its products through independent retailers, builders and
developers.  The Champion family of builders produces manufactured
and modular homes, as well as modular buildings for government and
commercial applications.


DYNAMOTIVE ENERGY: Posts US$3MM Net Loss in Six Mos. Ended June 30
------------------------------------------------------------------
Dynamotive Energy Systems Corporation filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
6-K for the three and six months ended June 30, 2009.

For three months ended June 30, 2009, the Company posted a net
loss of US$1.53 million compared with a net loss of US$2.90
million for the same period in 2008.

For six months ended June 30, 2009, the Company posted a net loss
of US$3.22 million compared with a net loss of US$4.34 million for
the same period in 2008.

The Company's balance sheet showed total assets of US$36.06
million, total liabilities of US$11.34 million and stockholders'
equity of about US$24.72 million.

The Company also disclosed that the financial statements were
prepared on the going concern basis, which presumes the Company
will be able to realize its assets and discharge its liabilities
in the normal course of operations for the foreseeable future.

A full-text copy of the Company's financial statements for the
periods ended June 30, 2009, is available for free at
http://ResearchArchives.com/t/s?42e0

Dynamotive Energy Systems Corporation (OTC BB: DYMTF.OB) --
http://www.dynamotive.com/-- is an energy solutions provider
headquartered in Vancouver, Canada, with subsidiaries based in the
United States, United Kingdom and Argentina.  Its
carbon/greenhouse gas neutral fast pyrolysis technology uses
medium temperatures and oxygen-less conditions to turn dry waste
biomass and energy crops into BioOil(TM) for power and heat
generation.  BioOil(TM) can be further converted into vehicle
fuels and chemicals.


FIXED INCOME: Moody's Cuts Rating on Series 3 Notes to 'Ba2'
-------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of one series
of notes issued by Fixed Income Diamond Collection Ltd: Brilliant
Series 3.

The transaction is a static synthetic CDO referencing 25 equally
weighted corporate entities.  The rating action is a response to
the credit deterioration in the underlying portfolio with multiple
notch downgrades witnessed in several corporate entities.
Specifically, the reference portfolio is exposed to CIT Group
Inc., which ratings have experienced a rapid deterioration,
greater than what have been anticipated by its forward looking
measures.  Since the last rating action in March, the WARF have
deteriorated from 198 to 632 largely due to the downgrade of CIT
to Ca on 16th July 2009.

Moody's continues to monitor this transaction using primarily the
methodology and its supplements for corporate synthetic CDOs as
described in Moody's Special Reports and press releases below:

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (April 2009)

The rating action is:

Fixed Income Diamond Collection Ltd: Brilliant Series 3

  -- EUR25M Brilliant Series 3 Notes, Downgraded to Ba2;
     previously on Mar 6, 2009 Downgraded to Baa1


HIGHLANDS INSURANCE: UK Scheme of Arrangement Takes Effect
----------------------------------------------------------
Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers LLP,
joint administrators of Highlands Insurance Company (U.K.) Limited
(Highlands UK) announced that a scheme of arrangement for dealing
with the direct insurance business of the company has just become
effective.

The Scheme is groundbreaking as it utilizes a UK mechanism to
provide certainty and finality to both a UK and a US company. In
summary, the Scheme resolves a long-standing legal dispute between
Highlands Insurance Company in the US (Highlands US) and Highlands
UK.  Direct policyholders' claims will now be dealt with under the
Scheme and, furthermore, these policyholders are now prohibited
from taking action against Highlands US as the Scheme has been
granted Chapter 15 relief.   The Scheme will also result in the
payment of US$13 million by Highlands US to Highlands UK.

Dan Schwarzmann, partner at PricewaterhouseCoopers LLP, said:
"This is a good example of innovative use and design of Schemes.
Importantly, it means direct policyholders should be paid in full
at the earliest possible time and by no later than July 2010.  It
also enables us to formulate the most appropriate and expedient
strategy for dealing with the claims of Highlands UK's reinsurance
creditors."

Highlands UK was placed into Administration on November 1, 2007
after the directors concluded that the company was insolvent.  As
at December 31, 2005, the date of its last audited balance sheet,
Highlands UK had gross technical insurance liabilities of
approximately GBP77 million.

The ultimate parent company of Highlands UK is Highlands Insurance
Group Inc., incorporated in the State of Delaware, USA which,
since October 2002 has (together with several subsidiaries) been
subject to bankruptcy proceedings in Delaware, USA.


ITV PLC: Nears Content Deal with US-based Web TV Service Hulu
-------------------------------------------------------------
Emma Barnett at The Daily Telegraph reports that ITV plc is 'weeks
away' from signing a deal with Hulu, the US-based web TV service,
to syndicate its content in exchange for equity in the company.

"ITV is closest to signing a deal with Hulu which will have a
level of exclusivity built into it.  Hulu has been in talks with
all the major British broadcasters but has made the most progress
with ITV.  It has offered each broadcaster the chance to take
equity in the company in exchange for full-length program rights,"
the report quoted a source close to negotiations between the two
parties as saying.

Hulu, the report discloses, will have exclusive rights to programs
made by ITV Productions for ITV including Coronation Street and
Dancing on Ice.

According to the report, final terms of commercial arrangements
are still being agreed, as ITV wanted to retain the rights to sell
the adverts around its own content, but a compromise has been
reached.  Hulu is expected to announce the terms of the
arrangement "within weeks".

                           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.

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 also affirmed ITV's senior unsecured rating at
'BB-'.


LEHMAN BROTHERS: U.K. Administrator to Appeal London Court Ruling
-----------------------------------------------------------------
PricewaterhouseCoopers LLP staff acting as joint administrators to
Lehman Brothers International (Europe) said that on July 14 they
made an application to the U.K. High Court concerning the
jurisdiction of the court to sanction a scheme of arrangement
dealing with property held on trust by LBIE.  A public hearing of
the Application took place before Mr. Justice Blackburne at the
Royal Courts of Justice on July 29 and 30.  Counsel for LBIE and
the Joint Administrators and counsel for GLG Partners LP, as a
representative of the scheme working group of creditors, made
representations in support of the Application.  Counsel for the
London Investment Banking Association made representations in
opposition of the Application.

The High Court handed down its judgment in relation to the
Application on August 21.  Mr. Justice Blackburne concluded that,
"Insofar as the scheme is concerned with the distribution by LBIE
of property held or controlled by it on trust for its clients (and
seeks to do so in ways that will vary or, in some cases,
extinguish those rights), there is no jurisdiction to enable this
to be done, so as to bind dissentients . . ." under Part 26 of the
Companies Act 2006.

Mr. Justice Blackburne has, however, given leave to appeal.  In
his judgment he noted, "Given the exceptional problems that the
administrators face in dealing with client assets and the very
great effort that they have devoted to devising a means . . . to
bring about speedy return of those assets, this is not a
conclusion which I am happy to reach.  But I must set out the law
as I see it, not as I wish it to be."

The Joint Administrators, having consulted with their legal
advisers and representatives of the creditors' working group,
intend to appeal the decision.  In parallel, the Administrators,
their legal advisers and representatives of the creditors working
group will be assessing whether the current scheme can be revised
to eliminate the jurisdictional problem and still facilitate the
return of assets to clients or whether an alternative approach
incorporating many features proposed in the current scheme should
be adopted.  The Joint Administrators are also continuing to
return assets to clients through bilateral negotiations.

The return of client assets remains a core objective of the Joint
Administrators.  The proposed scheme sought to materially reduce
the time required to return assets to clients.  The judgment is a
disappointment but does not affect our commitment to deliver the
most effective solution.

                      About Lehman Brothers

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

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

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

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

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

               International Operations Collapse

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

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

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


LINX MEDIA: Goes Into Liquidation; Three Sites Cease Trading
------------------------------------------------------------
Coinflip.com reports that Linx Media Group, the company behind
BetOnBet, Eurolinx, and Linx Casino has gone into liquidation and
the three sites have closed shop.

BetOnBet and Eurolinx were part of the Microgaming poker network.
According to Coinflip.com, it is yet unclear how player payouts
will be arranged.  Apparently customers had been complaining of
payout problems since May, the report states.

Poker Daily News reports Microgaming terminated its agreements
with BetOnBet, Eurolinx, and Linx Casino after deeming its parent
company, Linx Media Group, "insolvent."

Linx Media Group is based in Malta.


NEW BOND: Moody's Downgrades Ratings on US$100 Mil. Notes to 'C'
----------------------------------------------------------------
Moody's Investors Service has downgraded its rating of one class
of notes issued by New Bond Street CDO 1 plc, a structured finance
CDO.  The transaction experienced an event of default on 15
January 2008 and the trustee was directed to liquidate the
collateral as a post-event-of-default remedy.  Moody's was
notified by the trustee that a final distribution of liquidation
proceeds has taken place.  The rating action taken reflects the
final liquidation distribution and changes in the severity of loss
associated with the downgraded notes.

Moody's will subsequently withdraw the ratings of all classes of
notes due to the liquidation of collateral held by the Issuer.

The rating action is:

Issuer: New Bond Street CDO 1 plc

  -- US$100,000,000 Class A2 Floating Rate Notes due 2066,
     Downgraded to C; previously on Mar 11, 2009 Downgraded to Ca


RED CITY: Put Into Liquidation
------------------------------
James Ferguson at Manchester Evening News reports that Red City
Developments has been put into liquidation.

Red City Developments, a partnership between Peel Holdings,
Salford Reds and other private investors, was placed in to
administration in July last year.

The report relates relates liquidator Paul Stanley, of Begbies
Traynor, said: "The firm has gone in to liquidation in the last
two weeks. We are now in the process of agreeing creditors'
claims."

As reported in the Troubled Company Reporter-Europe on July 30,
2008, MEN said Red City Developments called in Manchester
insolvency firm Begbies Traynor after Stephen Kirby, who holds a
16% stake in the company, ran into financial issues.

Citing accounts filed with Companies House, MEN disclosed Red City
owed GBP5.7 million to Peel Investments (North), a subsidiary of
Peel Holdings.


ROYAL BANK: Says May Sell Asia Assets to Standard Chartered
-----------------------------------------------------------
Royal Bank of Scotland Group Plc may sell its units in India and
China to Standard Chartered Plc as soon as next month, Jon Menon
at Bloomberg News reports, citing a person familiar with the
situation.

According to Bloomberg, the person, who declined to be identified
because the talks are confidential, said the retail and commercial
banking assets are valued at US$300 million to US$400 million.

Citing people familiar with the matter, Sundeep Tucker at The
Financial Times reports the chances of StanChart buying the China
assets had fallen to "around three out of 10" and that talks
relating to the mainland part of the sale were "in limbo".

The FT relates the change of mood follows due diligence in which
StanChart studied RBS's consumer deposit base in China and, in
particular, its customers' product mix.  According to the FT,
people familiar with the matter said StanChart was disappointed to
discover that far more RBS customers than it had envisaged were
locked in to specific products, limiting any acquirer's ability to
shift them to alternatives.  The talks could regain momentum if
RBS showed flexibility on the sale price, the FT says citing
people familiar with the situation.

The FT notes people familiar with the situation said talks between
RBS and StanChart on India and Malaysia remained "on track",
although the prospective buyer was pushing for binding guarantees
relating to asset quality.

                            Loss

On Aug. 10, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported RBS posted a net loss of GBP1.04 billion
in the first half of 2009, compared with GBP827 million a year
earlier after setting aside GBP7.52 billion (US$12.62 billion) to
cover bad loans and declining assets.  According to about 70% of
RBS's impairments and writedowns were for assets that will be
covered by the government's asset protection program.

The U.K. government owns 70% of RBS after it invested GBP20
billion last year to rescue the bank.

                         About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.


TATA STEEL: Corus to Restart Production at Wales Plant
------------------------------------------------------
William Lyons at The Scotsman report that Corus, owned by India's
Tata Steel Ltd., confirmed it would restart production at its
Llanwern works in Wales because of a rise in the price of steel.

The report recalls the hot rolling mill in Wales was shut down in
January because of lack of demand.  According to the report,
Corus, however, said the reactivation would not restore the more
than 500 jobs cut at the time, because the mill would not be
running at full capacity.

"We are putting ourselves in the best possible position to exploit
any upswing should it occur," the report quoted a spokesman for
Corus as saying.  "The market is still very depressed but there
are signs of green shoots and we want to prepare ourselves as best
we can for any upturn."

                      About Tata Steel Limited

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer.  It
has operations in 24 countries and commercial presence in over 50
countries.  Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings.  On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc.  Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008.  In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.

                          *     *     *

As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2.  Moody's said the rating
outlook is stable.


WEEKENDS DIRECT: Goes Into Voluntary Liquidation
------------------------------------------------
David Quainton, Tom Hall and Jeremy King at Event report that
Weekends Direct, which staged corporate events as well as being a
well-known supplier of stag and hen parties, has gone into
voluntary liquidation.

The report relates administrator Tenon's Mark Liddle confirmed:
"Sales have dropped because of the economic climate and as a
result Weekends Direct has ceased trading."

The business has relocated to the address of accountant Croad & Co
in its native Bournemouth.  Croad & Co founder Raymond Croad
failed to respond to calls from Event magazine to confirm whether
the business is to liquidate or has entered administration.


WHITE TOWER: Halts Interest Payments to Junior Lender
-----------------------------------------------------
Chris Bourke at Bloomberg News, citing CB Richard Ellis Group
Inc., reports that a junior lender on London properties owned by
investor Simon Halabi is no longer entitled to interest payments.

According to Bloomberg, CB Richard Ellis, the debt's manager, said
in a statement Monday interest was halted after payments on loans
linked to GBP1.15 billion (US$1.9 billion) of White Tower 2006-3
Plc mortgage-backed bonds were accelerated.

                          Default

On July 8, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Mr. Halabi's real-estate companies failed
to remedy a default on the mortgage bonds.  Mr. Halabi's companies
had until the close of business on July 2, to stave off a default
on bonds that repackage loans to nine London properties including
JPMorgan Chase & Co.'s offices at 125 London Wall and 60 Victoria
Embankment.  White Tower, the issuer of the notes, had 10 days to
remedy the default after the bonds, which mature in 2012, breached
covenants because the properties halved in value.  According to
Bloomberg, Andrew Currie, head of Europe commercial mortgage-
backed securities at Fitch Ratings in London, said Mr. Halabi's
companies are unlikely to repay the bonds and will probably be
forced to sell the underlying properties, which were valued at
GBP929 million as of June 8, down from GBP1.83 billion in October
2006.


* UK Building Societies Face Profitability, Funding & Capital Woes
------------------------------------------------------------------
2008 has been a tumultuous year for the building societies sector,
finds KPMG's 19th annual Building Societies Database, which,
through a series of statistical tables, ratios and rankings,
summarises the financial performance of all current UK building
societies as of April 2009.  While most societies have remained
profitable and many have grown, there have been some notable
failures.  In the near future, UK building societies face
challenges around profitability, funding and capital strength.

                           Profitability

The threat to profitability for building societies come from
several sources, including: credit losses, primarily due to
commercial and non-prime lending; narrowing of margins, mainly
because of low interest rates; the Financial Services Compensation
Scheme levy; and falling fee and commission income sales of
mortgage and investment products fall.  For the overwhelming
majority of societies, pressure on profitability from the low
interest rate environment is the major issue, not mortgage fraud.
While mortgage fraud has been a common issue in the buy-to-let
market, most societies lending policies and procedures limit its
potential impact.

                              Funding

To meet the need for more liquidity and to pay down wholesale
funding, building societies need to find more retail funding.  So
far, this has been accomplished through widening a society's
agency network, introducing accounts with more transactional
functionality and turning to the Internet as a source for savings
and structured savings products.  Until bank base rates rise,
however, the savings market is likely to remain expensive for
societies and has, perhaps, moved to a new permanent level of
competitiveness.

                              Capital

If regulators require banks and building societies to hold higher
levels of capital, which seems likely given the new regulatory
emphasis on core tier one capital, this will constrain the growth
of many societies.  As a result, some societies may respond to the
need for fresh capital by disposing of assets and businesses built
over the last decade.  Others may enter joint ventures with
provides of capital or access to markets.  Overall, it is likely
that the market will see a small number of mergers over the coming
months.

Simon Walker, KPMG Financial Services partner commented: "The
challenges of profitability, funding and capital strength combined
with an anticipated increase in restrictive regulation, means
societies will need to cut costs and focus on their
customer-facing activities if they are to prosper in this new
environment."

                            About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of
KPMG Europe LLP and operates from 22 offices across the UK with
11,500 partners and staff.  The UK firm recorded a turnover of
EUR2.2 billion in the year ended September 2008.  KPMG is a global
network of professional firms providing Audit, Tax, and Advisory
services.  It operates in 148 countries and has more than 113,000
professionals working in member firms around the world.  The
independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss cooperative.  KPMG International
provides no client services.


* UK: Lobby Group Says State Aid for Carmakers Taking Too Long
--------------------------------------------------------------
Steve Rothwell at Bloomberg News reports Paul Everitt, head of the
Society of Motor Manufacturers and Traders, said the U.K.
government is taking too long to set the terms of loan guarantees
for carmakers and suppliers.

Citing the Department for Business, Innovation and Skills,
Bloomberg discloses carmakers and suppliers have asked for
guarantees worth GBP2 billion.  Bloomberg relates Britain offered
the aid as car sales tumbled in the recession, declining for 14
consecutive months through June.

According to Bloomberg, seven months after Business Secretary
Peter Mandelson made the pledge, no agreements have been signed.

Mr. Everitt, as cited by Bloomberg, said the process is
"frustrating" and the program doesn't do anything to encourage
banks to make loans.

Bloomberg notes the business department said in an e-mailed
statement it is framing "detailed plans" with 18 of more than 90
companies that expressed interest.

"It is important to understand that this scheme is about long-term
investment projects," Bloomberg quoted the agency as saying.
"With sums of this magnitude at stake we have to ensure that the
assistance we offer is the right support to the right companies."


* Alternative Funds Sector Continues to Underperform, the FT Says
-----------------------------------------------------------------
Sam Jones at The Financial Times reports that the US$10 billion
(GBP6 billion) listed alternative funds sector -- the bulk of
which is registered on the London Stock Exchange -- has continued
to underperform, in spite of a recovery across the hedge fund and
private equity industry over the past seven months.

According to the FT, listed funds of funds -- vehicles whose
portfolios consist of stakes in other funds -- are suffering most.
The FT discloses six funds of funds have already seen shareholders
vote to wind up operations.


* Some States Still Facing Losses From Stakes in Bailed-Out Banks
-----------------------------------------------------------------
Patrick Jenkins at The Financial Times reports that governments
around the world are still sitting on multi-billion dollar losses
from their direct shareholdings in banks, in spite of a strong
rebound in equity markets in recent months.

The FT says in contrast to Switzerland, the world's other large
economies -- except the US -- are sitting on combined losses of
US$10.8 billion relating to their holdings in the equity of listed
banks they bailed out over the past 12 months.

According to the FT, the UK is still sitting on the biggest losses
-- about GBP3.3 billion (US$5.5 billion) -- relating to the
government's 43 and 70% stakes in Lloyds Banking Group and Royal
Bank of Scotland respectively, although the number has shrunk
dramatically in recent weeks.  The FT notes with the FTSE World
Banks index up 130% since its lows of early March, the paper
losses that governments in France, Belgium, Luxembourg and Germany
are sitting on have also shrunk.


* READER'S DIGEST: Local Units Not Part of U.S. Bankr. Proceedings
------------------------------------------------------------------
The Reader's Digest Association, Inc. and its affiliates filed
voluntary pre-arranged petitions under Chapter 11 the U.S.
Bankruptcy Code, as part of a previously announced restructuring
plan.  Prior to the filing, more than 80% of the Company's senior
secured lenders had signed on to the plan agreement in principle.
The filing applies only to the RDA's U.S. businesses -- its
operations in Canada, Latin America, Europe, Africa, Asia and
Australia-New Zealand will not be part of the filing.

RDA's senior lender group has committed US$150 million in new
debtor-in-possession financing, which is convertible into exit
financing upon emergence.  The Company believes this financing
will ensure sufficient liquidity during the reorganization process
and beyond, and RDA's international operations will have adequate
funding based on continuing operations and access to proceeds from
the DIP financing.

The Company has filed a number of motions to ensure that the
filing does not adversely affect day-to-day operations for its
employees, customers or suppliers.  RDA is seeking -- and fully
expects to receive -- approval for a variety of first-day motions,
including requests to honor its customer obligations.  Suppliers
and vendors who provide goods and services to the Company on or
after August 24, 2009, will continue to be paid in the ordinary
course.

Mary Berner, RDA's President and Chief Executive Officer, said,
"Our business operations remain solid, with anticipated Fiscal
2009 revenue only down by low single digits, currency neutral,
despite the recession.  We look forward to emerging with a
restructured balance sheet and as a financially stronger
organization that is positioned to pursue our growth and
transformational initiatives."

RDA previously announced on August 17 that it had reached an
agreement in principle with a majority of its senior secured
lenders on the terms of a restructuring plan to significantly
reduce its debt burden and strengthen the company financially for
the future.  Under the agreement, RDA's senior lenders would
exchange a substantial portion of the company's US$1.6 billion in
senior secured debt for equity, effectively transferring ownership
to the lender group.  The agreement also establishes the
substantive terms of the US$550 million in debt that will remain
on RDA's balance sheet upon exit.

                       Road to Chapter 11

According to Thomas A. Williams, chief financial officer and
senior vice president of Reader's Digest, in the 87 years since
the Company published its first magazine edition, Reader's Digest
and its predecessors and affiliates have grown into a global,
multi-brand media and direct marketing company with over 3,000
employees worldwide (approximately 1,500 in the United States) and
annual sales of US$2.2 billion.  With an editorial philosophy
centered around publishing, marketing and delivering products that
educate, entertain and inspire, and a highly-diversified customer
base, the Debtors have built strong brand loyalty and earned
substantial credibility within the media and marketing industry.
In fact, the now iconic Reader's Digest magazine recently received
the National Magazine Award for General Excellence-the "Oscar" of
the publishing industry - by the American Society of Magazine
Editors in May 2009.

Over the past several years, the Company has been working to
transform the perception of "Reader's Digest" as a legacy print
brand into a multi-platform media company and emphasize content
focused around brand-based affinity communities.  At the same
time, the Company has been aggressively rethinking their supply
chain model and have implemented various restructuring initiatives
geared toward improving production capabilities and increasing
operational efficiencies to reduce costs and deliver savings that
can be re-directed to capture future growth opportunities.  These
actions have enabled the Debtors to obtain approximately US$100
million in cumulative cost-savings through 2009, which has
enhanced their competitive position.

However, according to Mr. Williams, despite its leading industry
position and operational restructuring initiatives, the Company,
like most major publishers and consumer marketing businesses, has
not been immune to the global financial crisis.  The current
recession has resulted in reductions in R&D's advertising, retail
and subscription revenues, placing pressure on the Debtors'
profitability.

Withdrawal of foreign lines of credit and pressure from trade
creditors have also weakened the Company's liquidity positions,
Mr. Williams added.  In short, as the economy continues to
deteriorate in several of its markets, the Company is struggling
to maintain working capital sufficient to conduct operations while
facing progressively unsustainable debt service obligations under
an over-levered capital structure.

Recognizing that their current capital structure was simply
unworkable, the Debtors determined that a comprehensive de-
leveraging transaction -- through a pre-arranged Chapter 11 plan
-- would be in the best long-term interests of the Debtors and
their stakeholders.

                   Prepetition Capital Structure

Reader's Digest said that as of June 30, 2009, it had total assets
of US$2.2 billion against total debts of US$3.4 billion.

Reader's Digest has outstanding debt for borrowed money in the
aggregate principal amount of approximately US$2,183,100,000,
consisting primarily of: (a) US$1,580,300,000 in secured
borrowings under their secured credit facility, (b) US$600,000,000
in principal amount of unsecured 9% senior subordinated notes due
2017, and (c) approximately US$2,800,000 in foreign lines of
credit an a promissory notes.  As of August 20, trade creditors
have outstanding prepetition claims of US$90,000,000.

The senior secured facility consists of (i) a six-year
US$300,000,000 revolving line of credit (ii) a seven-year U.S.
term loan in an outstanding amount of US$1,182,775,000 and (iii) a
US$100,000,000 term loan (payable in an equivalent amount of
Euros, and designated as "Euro Term Loan") owed to German
subsidiary RD German Holdings GmbH.  J.P. Morgan Chase is the
administrative agent for U.S. term loan and the revolver.  A total
of US$293,700,780 is outstanding under the revolving facility.

In R&D's list of 30 largest unsecured creditors, the Bank of New
York, as indenture trustee is on the top of the list with its
US$600,000,000 claim on account of the subordinated notes.  HCL
follows with a US$14,212,268 trade claim.  A copy of the largest
unsecured creditors' list is available for free at:

        http://bankrupt.com/misc/sdny09-23529.pdf

                          Chapter 11 Plan

Before filing for bankruptcy, Reader's Digest negotiated with
senior secured lenders a restructuring plan under which holders of
the Company's US$1.6 billion in senior secured debt will receive
(i) a 300 million second priority term loan, (ii) reinstatement of
the prepetition Euro Term Loan, (iii) 100% of the new stock of
reorganized Reader's Digest.  Holders of unsecured claims related
to operations will receive payment in full in the ordinary course.
Recovery by holders of other unsecured claims is yet to be
determined.   The Plan does not provide for any recoveries to the
Debtors' senior subordinated noteholders or current equity.  There
is, however, an "equity buy in" feature that would allow
qualifying holders of the Debtors' senior subordinated notes to
purchase up to US$50 million to 100 million of the shares of the
reorganized company, for total ownership of no more than 10% to
20%.  A full-text copy of the Restructuring Support Agreement is
available for free at http://researcharchives.com/t/s?422e

According Reader's Digest, its senior secured debt, during 2009,
has traded between 25% and 50% of face amount.  The current market
indication for its unsecured senior subordinated notes is 1% of
face amount.

The Company's said that within the 30-day period following the
filing, it expects to pay US$8,000,000 to employees, US$975,000 to
officers and directors, and US$3,957,000 for financial and
business consultants.

For the 30-day period following the filing of the Chapter 11
petition, Reader's Digest expects unpaid obligations of
US$87,878,000 and unpaid receivables of US$11,625,000.  It expects
a net cash gain of US$36,004,000:

         Cash Receipts                  US$221,585,000
         Cash Disbursements              185,581,000
                                        ------------
         Net Cash Gain                   US$36,004,000

The Debtors are in the process of completing their fiscal year
2009 audit but estimate 2009 Cash EBITDA of approximately
US$131 million.

               About The Reader's Digest Association

RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content.  With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries.  It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
approximately 40 million books, music and video products across
the world each year. Its global headquarters are in Pleasantville,
N.Y.

Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel.  Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel.  Ernst & Young LLP is auditor.  Miller Buckfire
& Co, LLC, is financial advisor.  AlixPartners, LLC, is
restructuring consultant.  Kurtzman Carson Consultants is notice
and claims agent.

                            *********

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 * * *