TCREUR_Public/090827.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, August 27, 2009, Vol. 10, No. 169

                            Headlines

A U S T R I A

BAYAT ORIENTTEPPICHE: Claims Filing Deadline is August 31
DRUCK-VENINGER KEG: Claims Filing Deadline is August 31
GEHA METALL: Creditors Must File Claims by September 1
PERFECT - JOB: Creditors Must File Claims by September 1


E S T O N I A

EESTI SPORDIKANAL: Assets Put Up for Auction


G E R M A N Y

BAYERISCHE LANDESBANK: Posts EUR359 Mil. Profit in First Half 2009
GENERAL MOTORS: Germany to Resume Opel Sale Talks Tomorrow
HAPAG-LLOYD AG: May Receive EUR92-Million Cash Injection
HAPAG-LLOYD AG: TUI Rating Lifted on Likeliness of State Aid
IKB DEUTSCHE: Calyon Files US$1.675 Billion Lawsuit

TELECOLUMBUS GMBH: Gets Three Offers From Potential Buyers
TUI AG: Morgan Stanley Upgrades Rating to Overweight


I R E L A N D

ARLO VIII: Moody's Cuts Ratings on Two Classes of Notes to 'Ba3'
INDEPENDENT NEWS: Repayment Deadline on EUR200 Mil. Loan Extended
WARNER CHILCOTT: S&P Assigns 'BB-' Corporate Credit Rating


I T A L Y

RISANAMENTO SPA: Creditor to Guarantee EUR270 Mil. Debt, MF Says

* ITALY: Banks Spearhead Corporate Bailouts, ABI Says


K Y R G Y Z S T A N

HASHIR TRADING: Creditors Must File Claims by September 17


N E T H E R L A N D S

PDM CLO: S&P Junks Rating on Class E Notes From 'BB-'


R U S S I A

36.6 OAO: Protek Seeks Unit's Bankruptcy Over Payment Row
ALYANS-STROY LLC: Bankruptcy Hearing Set September 1
AVTOVAZ OAO: Russian Tech to Consolidate Stake in Firm, Others
KAMA-TIMBER LLC: Creditors Must File Claims by September 2
KOVINSKAYA TIMBER: Creditors Must File Claims by September 2

RBC INFORMATION: Onexim Makes New Debt Restructuring Offer
RUSHYDRO JSC: Sayano Mishap's Financial Impact Depends on Gov't
STROITEL LLC: Creditors Must File Claims by August 31
STROY-PODRYAD CJSC: Creditors Must File Claims by August 31
TEKH-INVEST CJSC: Moskovskaya Bankruptcy Hearing Set September 1

VEROPHARM OAO: Protek Seeks Bankruptcy Over Payment Dispute


U K R A I N E

ARMAVIR HEAVY: Court Opens Bankruptcy Proceedings
CAREER ACADEMY: Creditors Must File Claims by August 29
INTERMET LTD: Court Starts Bankruptcy Supervision Procedure
INTERSPECIALTECHNICS-PLUS: Creditors Must File Claims by August 29
INVEST-UNIVERSAL LLC: Creditors Must File Claims by August 29

NIKOLAYEV-METTRADE LLC: Creditors Must File Claims by August 29
OTAMANSKY TECHNICAL: Creditors Must File Claims by August 29
TOPTRADESERVICE LLC: Creditors Must File Claims by August 29
SPROBA LLC: Creditors Must File Claims by August 29
STEEL ELECTRO: Creditors Must File Claims by August 29

UGLETREST LLC: Creditors Must File Claims by August 29


U N I T E D   K I N G D O M

ADMIRAL TAVERNS: Lloyds May Write Off GBP500 Mil. Debt
BUCKINGHAM SECURITIES: Goes Into Liquidation After Bond Default
CATTLES PLC: Refinancing Talks Continue; Delays 1H09 Results
DSG INTERNATIONAL: Pirc Balks at Proposed Renumeration Scheme
KEYDATA INVESTMENTS: Unveils Members of Creditors Committee

LIGHTHOUSE TRUST: In Administration; PwC Appointed
LLOYDS BANKING: To Shed 200 U.K. Jobs in General Insurance Unit
LUNAR FUNDING: Moody's Withdraws Ratings Two Classes of Notes
ROYAL BANK: To Scale Back Pension Benefits of 62,500 Workers
RMAC 2005-NS3: S&P Cuts Ratings on Two Classes of Notes to 'BB'

WHITE YOUNG: Says Debt Talks May Lead to Share Dilution

* Upcoming Meetings, Conferences and Seminars


                         *********



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A U S T R I A
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BAYAT ORIENTTEPPICHE: Claims Filing Deadline is August 31
---------------------------------------------------------
Creditors of Bayat Orientteppiche 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 8:20 a.m.

For further information, contact the company's administrator:

         Dr. Anita Einsle
         Deuringstrasse 9
         6900 Bregenz
         Austria
         Tel: 05574/54447
         Fax: 05574/54447-20
         E-mail: anita@einsle.at


DRUCK-VENINGER KEG: Claims Filing Deadline is August 31
-------------------------------------------------------
Creditors of DRUCK-VENINGER 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 11:55 a.m.

For further information, contact the company's administrator:

         Mag. Barbara Senninger
         Kastellstrasse 4
         7551 Stegersbach
         Austria
         Tel: 03326/52423
         Fax: 03326/54156
         E-mail: office@anwalt-bgld.at


GEHA METALL: Creditors Must File Claims by September 1
------------------------------------------------------
Creditors of GEHA Metall GmbH have until September 1, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 15, 2009 at 1:30 p.m. at:

         Land Court of Steyr
         Hall 7
         Second Floor
         Steyr
         Austria

For further information, contact the company's administrator:

         Dr. Hubert Just
         Hauptplatz 7
         4560 Kirchdorf/Krems
         Steyr
         Austria
         Tel: 07582/62 0 74
         Fax: DW 22
         E-mail: kanzlei@hubertjust.at


PERFECT - JOB: Creditors Must File Claims by September 1
--------------------------------------------------------
Creditors of PERFECT - JOB – GmbH have until September 1, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 15, 2009 at 1:20 p.m. at:.

         Land Court of Wels
         Hall 101
         Wels
         Austria

For further information, contact the company's administrator:

         Mag. Stephan Andreas Binder
         Eisenhowerstrasse 40
         4600 Wels
         Austria
         Tel: 07242/47024,61212
         Fax: 07242/47167
         E-mail: s.binder@kapo.at


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E S T O N I A
=============


EESTI SPORDIKANAL: Assets Put Up for Auction
--------------------------------------------
Marge Tubalkain-Trell at aripaev.ee, citing Eesti Paevaleht,
reports that the assets of bankrupt Estonian company OU Eesti
Spordikanal (Kalev Sport) have been put up for auction.

According to the report, bankruptcy trustee Andres Tootsman said
the auction started in the beginning of August and will last until
August 31.  Assets consist of roof antennas, studio furniture,
spot lights and screens, the report says.

The report discloses initial price of the assets is EEK100,000 and
their actual price is less than EEK0.5 million.

The report recalls Toomas Lepp bought Kalev Sport in February and
named it TV4.  Kalev Sport declared bankruptcy in April after
Mr. Lepp failed to find investors for the company.


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


BAYERISCHE LANDESBANK: Posts EUR359 Mil. Profit in First Half 2009
------------------------------------------------------------------
Oliver Suess at Bloomberg News reports that Bayerische Landesbank
posted a net income of EUR359 million in the first half of 2009
after a year-earlier loss of EUR722 million following a rebound in
investment income.

According to Bloomberg, narrowing credit spreads helped lift the
bank's investment income to EUR265 million after a loss of EUR920
million a year ago.

Bloomberg says BayernLB, led by Chief Executive Officer Michael
Kemmer, expects loan-loss provisions to increase further
this year on the difficult economic conditions in eastern Europe.

                           State Bailout

Bloomberg relates the European Commission is conducting a probe
into the bank's bailout and EU competition regulators will also
examine aid given to the lender's Austrian unit, Hypo Alpe-Adria
Bank International AG.  The lender, as cited by Bloomberg, said
the result of the investigation is "still expected this autumn".

Bloomberg recalls as part of its bailout, the lender received
EUR10 billion in capital and a EUR4.8-billion risk shield for its
asset-backed securities from the State of Bavaria, which in return
raised its stake in the bank to about 94%.  BayernLB also got debt
guarantees of EUR15 billion from the German Soffin bank-rescue
fund, Bloomberg notes.

                          Restructuring

BayernLB, Bloomberg discloses, plans to cut 5,600 jobs, or 29% of
the workforce, by 2013, and focus on lending to local companies.
The bank may sell some units, including Hypo Alpe-Adria and
Budapest-based subsidiary Magyar Kulkereskedelmi Bank Zrt., to
reach its restructuring targets.

Headquartered in Munich, Germany, Bayerische Landesbank (BayernLB)
-- http://www.bayernlb.de-- acts as the principal bank to the
state of Bavaria and as the central clearing house for the 75
Bavarian sparkassen (savings banks).  Also serving corporations,
national and local governments, financial institutions, and real
estate firms, the bank offers a variety of services, including
financing, security underwriting and trading, and risk management.
It provides retail and private banking services for individuals
through its Internet bank, Deutsche Kreditbank, and through
banking subsidiaries in central and southeastern Europe.
BayernLB's Landesbank Saar subsidiary (75% owned) provides
financing to small and midsized businesses in the German state of
Saarland and in France.


GENERAL MOTORS: Germany to Resume Opel Sale Talks Tomorrow
----------------------------------------------------------
Tony Czuczka at Bloomberg News reports that German government
officials will resume talks with General Motors Co. tomorrow,
Aug. 28, over the proposed sale of the U.S. carmaker's Opel unit.

Bloomberg relates Thuringia economy minister Juergen Reinholz said
German federal and state officials will meet in Berlin with GM's
top negotiator, John Smith, after a round of talks on Tuesday in
Berlin again failed to identify a favored bidder for Opel.

According to Bloomberg, Federal Economy Minister Karl-Theodor zu
Guttenberg said GM is still seeking an investor for Opel and
questioned how the carmaker, which emerged from bankruptcy July 10
and is controlled by the U.S. Treasury, would raise the money
needed to keep the money-losing German-based unit in business.
Mr. Guttenberg, as cited by Bloomberg, said GM's board is in
"internal deliberations" on options for Opel's future and a deal
may not be reached before Germany's election.

"If we were to structure such negotiations with a view to an
election date, we wouldn't have a proper view of our
responsibilities" Bloomberg quoted Mr. Guttenberg as saying.
"Negotiations have to be based on the substance of the matter."

Bloomberg recalls a person familiar with the talks said last week
GM's board is considering all options for Opel, including
rejecting the two pending bids by Magna International Inc. and RHJ
International SA and keeping it as a wholly owned subsidiary.

                        Opel Restructuring

Bertrand Benoit and John Reed at The Financial Times report a
future German government may be willing to finance a restructuring
of Opel under the ownership of GM if the sale of Opel to Magna,
the Canadian supplier, falls through.

The FT relates a German official said on Wednesday, speaking on
condition of anonymity, that should GM block a deal, a new
government next month might have little choice but to enter talks
with the US carmaker on sponsoring Opel's restructuring within GM.
According to the FT, the official said the only alternative to a
Berlin-sponsored bail-out of Opel -- regardless of who owns it --
was insolvency for the GM unit, which employs about 25,000 people
in Germany.

                             Vauxhall

Suzy Jagger and Alexandra Frean at The Times report that Lord
Mandelson is willing to commit taxpayers' money to GM in exchange
for guaranteeing the long-term survival of Vauxhall, its British
division.  The Business Secretary is prepared to pledge financial
help -- believed to be up to GBP500 million -- to whichever of the
three interested parties offers the most viable commercial future
for the carmaker in Britain, and its 5,500 UK jobs, the Times
says.  According to the Times, the minister is insistent that the
party that receives taxpayer funds will be the one that produces a
business plan protecting most of the Vauxhall workforce for the
long term.

The minister's position became clear after it emerged that the
board of GM was split over whether to sell Opel, its European
division, or keep it.

                             Decision

Tony Czuczka at Bloomberg News reports German Chancellor Angela
Merkel said she hopes GM will make a decision on the sale of its
Opel unit within two weeks.  Bloomberg relates Ms. Merkel told N24
television in Berlin yesterday in an interview that she wants to
see a decision on Opel at the latest by Sept. 8-9, when GM is
scheduled to hold a board meeting.  The German chancellor, as
cited by Bloomberg, said she sees no need at present to contact
President Barack Obama to help forge a breakthrough on Opel.

While the German government would like to see a resolution as soon
as possible, "content must come before speed," Bloomberg quoted
the German chancellor as saying.  "Issues are still emerging that
we will clear up with GM representatives thoroughly and calmly."

                             Liquidity

Andrea Thomas and Doug Cameron at The Wall Street Journal report
that GM said yesterday that Opel's liquidity is "stable".  Citing
a person familiar with the situation, the Journal discloses the
operation has enough money to run until the end of the year.  "At
the moment, we are running ahead of our original liquidity
outlook," the Journal quoted the person familiar with the
situation, who confirmed that Opel has drawn down EUR1.05 billion
(US$1.5 billion) of the EUR1.5 billion emergency bridge loan
provided by the German government.

As reported in the Troubled Company Reporter-Europe on
Aug. 26, 2009, Bloomberg News said GM advisers are recommending
that the board consider spurning a German-backed sale of its Opel
unit to retain a bigger presence in Europe and Russia.  Citing a
person familiar with the discussions, Bloomberg dislosed the
advisers suggest that GM seek aid from other European governments
to retain ownership of Opel as an alternative to surrendering
control to a group led by Magna or to RHJ.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com -- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.

As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009.  This compares with a reported net loss of US$3.3 billion
in the year-ago quarter.  As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts.  Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors'
restructuring officer.  GM is also represented by Jenner & Block
LLP and Honigman Miller Schwartz and Cohn LLP as counsel.

Cravath, Swaine, & Moore LLP is providing legal advice to the GM
Board of Directors.  GM's financial advisors are Morgan Stanley,
Evercore Partners and the Blackstone Group LLP.

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

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


HAPAG-LLOYD AG: May Receive EUR92-Million Cash Injection
--------------------------------------------------------
Brian Parkin at Bloomberg News reports that Hapag-Lloyd AG, which
is seeking a federal loan guarantee, may receive a EUR923-million
(US$1.32 billion) cash injection from owners including the city of
Hamburg.

Bloomberg relates Hamburg's finance department said in a statement
the capital increase approved Tuesday by the city's government is
more than the EUR750 million that had been previously pledged by
shareholders and should fulfill requirements for receiving the
EUR1.2-billion government guarantee.

The cash injection still needs the approval of the Hamburg's
parliament, or Buergerschaft, and of European Union regulators,
Bloomberg notes.

According to Bloomberg, Chancellor Angela Merkel's government will
decide by the end of next month whether to grant the container
line the guarantee its owners say is needed to boost liquidity as
the global economic slump hurts world trade.

TUI AG, which owns 43% of Hamburg-based Hapag, said Aug. 13 that
the company needed total financing of at least EUR1.95 billion.

Hapag-Lloyd AG -- http://www.hapag-lloyd.com/-- is the
transportation arm of German tourism giant TUI.  Subsidiary Hapag-
Lloyd Container Line, which accounts for most of Hapag-Lloyd's

sales, operates a fleet of about 135 containerships.  Overall,
Hapag-Lloyd Container Line's vessels have a capacity of more than
490,000 twenty-foot equivalent units (TEU).  The unit's routes
link Europe, Asia, the Americas, and Africa.  In addition to
freight transportation, Hapag-Lloyd offers luxury ocean and river
cruises under its Hapag-Lloyd Cruises brand.  TUI sold Hapag-
Lloyd's container operations to a German investment group in March
2009.


HAPAG-LLOYD AG: TUI Rating Lifted on Likeliness of State Aid
------------------------------------------------------------
Holger Elfes at Bloomberg News reports that Morgan Stanley analyst
Jamie Rollo has raised his rating on TUI AG, the biggest
stakeholder in container line Hapag Lloyd AG, to "overweight" from
"equal weight," saying the tour operator's share price "overly
compensates" for risks posed by its debt.

Bloomberg relates Mr. Rollo advised clients to buy the stock for
the first time in a decade.  TUI, Bloomberg discloses, has net
debt of EUR2.63 billion as of June 30, up from EUR2.58 billion at
the end of the previous quarter.

"Our upgrading is mostly due to the likeliness of state aid for
Hapag-Lloyd, which gives the shipping line more time to recover,"
Bloomberg quoted Mr. Rollo as saying.

                         State Guarantees

Bloomberg recalls on Aug. 14, lenders to Hapag-Lloyd filed an
application for state guarantees worth EUR1.2 billion (US$1.71
billion) on their loans.  According to Bloomberg, Mr. Rollo sees
an 80% probability that the German government will grant the loan
guarantees.

                               Loss

On Aug. 17, 2009, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that TUI posted a net loss of EUR524
million in the second quarter of 2009, compared with a EUR127
million loss in the same period last year due to its loan exposure
to Hapag-Lloyd.  According to the FT, TUI booked EUR371 million of
charges because of loans given to Hapag-Lloyd.  The FT said TUI
values its financial commitment to Hapag-Lloyd at EUR2.4 billion,
including its equity stake as well as almost EUR1.5 billion in
credit lines.

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


IKB DEUTSCHE: Calyon Files US$1.675 Billion Lawsuit
---------------------------------------------------
Jann Bettinga at Bloomberg News reports that French investment
bank Calyon filed a lawsuit against IKB Deutsche Industriebank AG
in the High Court of Justice in London.

According to Bloomberg, IKB said Calyon, a unit of Credit Agricole
SA, is seeking damages of more than US$1.675 billion.  Bloomberg
relates the Dusseldorf-based bank said the claim is related to
proceedings brought by U.S. bond insurer FGIC.

"IKB is in the process of reviewing the claims made against it,"
Bloombeg quoted the German lender as saying.  "Should risks from
the currently asserted claims materialize IKB anticipates that
they will not materially affect IKB's financial results."

Bloomberg recalls IKB was sued by FGIC Corp. in March 2008 over
claims that misleading information left the bond insurer facing
possible losses of US$1.88 billion.  Bloomberg notes IKB said in
its annual report the lawsuit, filed in state court in New York,
was later dismissed on "procedural" grounds and may be appealed.

                          State Guarantee

On Aug. 19, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported the European Commission approved
IKB's EUR7-billion (US$9.9 billion) guarantee from the German
state.  Bloomberg disclosed the commission said in a statement the
guarantee, which must be accompanied by a new restructuring plan
for the lender, was necessary to "protect IKB's liquidity and
financial stability in Germany".

IKB became Germany's first casualty of the U.S. subprime-mortgage
crisis in 2007 after investments in asset-backed securities
soured, requiring a government-led bailout.  The lender sought an
additional EUR7 billion in debt guarantees from Germany's
bank-rescue fund Soffin because it was struggling to raise
financing on capital markets.

                  About IKB Deutsche Industriebank

IKB Deutsche Industriebank AG -- http://www.ikb.de/-- is a
Germany-based banking company, which specializes in the field of
long-term financing.  It offers a range of financial products and
services directed at medium-sized domestic as well as
international companies and project partners.  The Company's
focuses on the two segments Corporate Customers, including
domestic corporate financing, especially lending, but also product
leasing and private equity; and Real Estate Customers, which
provides customized financing solutions as well as related
services for industrial real estate.  As of March 31, 2009, it
operated through direct and indirect subsidiaries, including the
wholly owned IKB Capital Corporation and IKB Equity Finance GmbH,
among others; its two majority owned subsidiaries; as well as two
affiliated companies.  The Company's subsidiaries are located in
Germany, the United States, the Netherlands, Luxembourg, Austria,
the Czech Republic, France, Hungary, Poland, Russia, Slovakia and
Romania.


TELECOLUMBUS GMBH: Gets Three Offers From Potential Buyers
----------------------------------------------------------
Cornelius Rahn at Bloomberg News, citing Financial Times
Deutschland, reports that Orion Cable GmbH's subsidiary
TeleColumbus GmbH has received bids from Versatel AG, Kabel
Deutschland GmbH and Blackstone Group LP.

According to Bloomberg, the newspaper said the bidding price for
indebted Telecolumbus is about EUR450 million (US$644 million).

TeleColumbus GmbH -- http://www.telecolumbus.de-- is
headquartered in Hannover, Germany.


TUI AG: Morgan Stanley Upgrades Rating to Overweight
----------------------------------------------------
Holger Elfes at Bloomberg News reports that Morgan Stanley analyst
Jamie Rollo has raised his rating on TUI AG, the biggest
stakeholder in container line Hapag Lloyd AG, to "overweight" from
"equal weight," saying the tour operator's share price "overly
compensates" for risks posed by its debt.

Bloomberg relates Mr. Rollo advised clients to buy the stock for
the first time in a decade.  TUI, Bloomberg discloses, has net
debt of EUR2.63 billion as of June 30, up from EUR2.58 billion at
the end of the previous quarter.

"Our upgrading is mostly due to the likeliness of state aid for
Hapag-Lloyd, which gives the shipping line more time to recover,"
Bloomberg quoted Mr. Rollo as saying.

                         State Guarantees

Bloomberg recalls on Aug. 14, lenders to Hapag-Lloyd filed an
application for state guarantees worth EUR1.2 billion (US$1.71
billion) on their loans.  According to Bloomberg, Mr. Rollo sees
an 80% probability that the German government will grant the loan
guarantees.

                               Loss

On Aug. 17, 2009, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that TUI posted a net loss of EUR524
million in the second quarter of 2009, compared with a EUR127
million loss in the same period last year due to its loan exposure
to Hapag-Lloyd.  According to the FT, TUI booked EUR371 million of
charges because of loans given to Hapag-Lloyd.  The FT said TUI
values its financial commitment to Hapag-Lloyd at EUR2.4 billion,
including its equity stake as well as almost EUR1.5 billion in
credit lines.

TUI AG -- http://www.tui-group.com/en/-- is a Germany-based
company mainly engaged in the tourism sector, focusing on the
markets of Central, Northern and Western Europe.  TUI owns a
network of travel agencies and tour operators, including air
tours, Thomson, First Choice and TUI Deutschland.  It also
operates several airlines, including Corsairfly, Thomsonfly and
First Choice Airways, among others.  The Company is structured
into three segments: TUI Travel, TUI Hotels and Resorts, and
Cruises.  TUI Travel comprises the Company’s distribution, tour
operating, airline and incoming activities and services over 30
million customers in 180 countries.  The TUI Hotels and Resorts
division offers a portfolio of 238 hotels, located in Spain,
Greece, Egypt, France, Turkey, Tunisia, the Balearics and the
Caribbean, among others.  The Cruises sector comprises Hapag-Lloyd
Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises,
and cruises within the German-speaking countries, respectively.

                            *    *    *

As reported in the Troubled Company Reporter-Europe on Aug. 3,
2009, Standard & Poor's Ratings Services said that it lowered its
long-term corporate credit rating on German tourism and shipping
group TUI AG to 'B-' from 'B'.  At the same time, the senior
unsecured debt ratings on TUI were lowered to 'CCC+' from 'B-' and
the junior subordinated debt rating was lowered to 'CCC-' from
'CCC'.  All ratings remain on CreditWatch, where they were placed
with negative implications on July 13, 2009

The Troubled Company Reporter-Europe reported on July 30, 2009,
that Moody's Investors Service lowered to B3 from B2 the Corporate
Family Rating and Probability of Default Rating of TUI AG; the
unsecured and subordinated ratings have been lowered to Caa1 from
B3 and to Caa2 from Caa1, respectively.  All ratings remain under
review for further possible downgrade.


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I R E L A N D
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ARLO VIII: Moody's Cuts Ratings on Two Classes of Notes to 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of two
classes of notes issued by Arlo VIII Ltd.

The transaction is a managed synthetic CDO referencing 100 equally
weighted sovereign and corporate entities.  The rating actions are
a response to credit deterioration in the underlying portfolio
which includes Ambac Assurance Corporation which was recently
downgraded multiple notches to Caa2.  The current loss in the
portfolio is about 1.9%, the subordination is 6.7% and the WARF is
777.36.

Moody's initially analyzed and 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 actions are:

  -- EUR100M Series 2007 (Weibull CDO - A) Notes, Downgraded to
     Ba3; previously on Mar 10, 2009 Downgraded to Baa3

  -- EUR50M Series 2007 (Weibull CDO - B) Notes, Downgraded to
     Ba3; previously on Mar 10, 2009 Downgraded to Baa3


INDEPENDENT NEWS: Repayment Deadline on EUR200 Mil. Loan Extended
-----------------------------------------------------------------
Elena Moya and Richard Wray at guardian.co.uk reports that
creditors of Independent News & Media plc agreed a fourth
extension of the repayment of a EUR200 million (GBP175 million)
bond originally due in May.

According to the report, the standstill agreement, which expires
today, Aug. 27, will be extended for one month.

The board of INM is due to meet today to discuss the company's
financial position ahead of half-year results on Friday, the
report discloses.

The report says there is still a considerable gap between the two
sides over the extent to which the EUR200 million tranche of bonds
will be repaid and pushing those talks into September means those
negotiations will coincide with EUR50 million of the company's
bank debt falling due.  INM insiders, however, maintain that
recent disposals and further planned divestments mean the company
has the cash to meet the bank repayment, the report notes.

                   About Independent News & Media

Headquartered in Dublin, Ireland, Independent News & Media PLC
(ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and
publishing of metropolitan, national, provincial and regional
newspapers in Australia, India, Ireland, New Zealand, South Africa
and the United Kingdom.  It also has radio operations in Australia
and New Zealand, and outdoor advertising operations in Australia,
New Zealand, South-East Asia and across Africa.  The Company also
has online operations across each of its principal markets.  The
Company has three business segments: printing, publishing, online
and distribution of newspapers and magazines and commercial
printing; radio, and outdoor advertising.  INM publishes over 200
newspaper and magazine titles, delivering a combined weekly
circulation of over 32 million copies with a weekly audience of
over 100 million consumers.  In March 2008, it acquired The Sligo
Champion.  During the year ended December 31, 2007, the Company
acquired the remaining 50% interest in Toowoomba Newspapers Pty
Ltd.


WARNER CHILCOTT: S&P Assigns 'BB-' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB-'
corporate credit rating to Ireland-based Warner Chilcott plc.  The
outlook is positive.

At the same time, S&P affirmed the 'BB-' corporate credit rating
on Warner Chilcott Corp., revising S&P's outlook on the company to
positive from stable.  This transaction will not affect S&P's
ratings on Procter & Gamble nor S&P's outlook on the company.

"The 'BB-' rating on Warner Chilcott plc reflects the threat of
generic and other competition to the company's product portfolio
and its limited research and development capabilities," said
Standard & Poor's credit analyst Michael Berrian.  These
weaknesses are partially offset by management's strong record of
operating success and the company's relatively conservative
financial metrics, highlighted by its solid cash flows and the
expected ability to quickly deleverage following the announced
acquisition.

The acquisition of P&G's prescription pharmaceutical business
significantly enhances Warner Chilcott's solid franchise.
Following this acquisition, Warner Chilcott will have much greater
scale, and is expected to generate revenues of approximately
$3 billion.  Further, S&P expects the acquisition of products
Actonel, for osteoporosis, to strengthen Warner Chilcott's women's
health care franchise while Asacol, for ulcerative colitis,
provides the company with a new therapeutic category and revenue
diversity.  There will be a significant revenue concentration on
Actonel and Asacol.  However, both products have patents that do
not expire until 2014, and help minimize the impact of expected
patent losses, such as patent expirations on Femhrt in 2010 and
Loestrin 24 FE in 2014.

S&P expects Warner Chilcott's financial profile to be
significantly levered following this debt-financed transaction, at
more than 3x in 2009 on a pro forma basis.  However, S&P believes
the company will use its increased cash flows from Actonel and
Asacol to reduce leverage to about 2.4x by the end of 2010.

Pro forma for the transaction, S&P expects Warner Chilcott to have
adequate liquidity, primarily supported by full availability of a
new $250 million revolving credit facility and a cash balance in
excess of $300 million.  The addition of Actonel and Asacol is
expected to also substantially increase Warner Chilcott's free
cash flow, which S&P anticipate will be used for debt reduction.

The positive rating outlook reflects Warner Chilcott's expanded
product profile and additional therapeutic diversity.  The outlook
also reflects S&P's belief that Warner Chilcott will use its
higher free cash flows and balance-sheet cash to reduce adjusted
pro forma leverage to well under 3x by the end of 2010.  S&P could
raise the rating upon successful integration of the P&G
prescription pharmaceutical business and the company quickly
deleveraging.  Conversely, S&P could revise the outlook to stable
if integration issues lead to reduced sales of the acquired
products, and result in leverage that remains above 3x in the next
18 months.


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


RISANAMENTO SPA: Creditor to Guarantee EUR270 Mil. Debt, MF Says
----------------------------------------------------------------
Armorel Kenna at Bloomberg News, citing daily MF, reports that
Risanamento SpA's creditor banks will guarantee EUR270 million
(US$386 million) in debt expiring in 2014.

Bloomberg relates the Italian newspaper said Intesa Sanpaolo SpA,
UniCredit SpA, Banco Popolare SC, Banca Popolare di Milano Scarl
and Banca Monte dei Paschi di Siena SpA will guarantee a EUR220-
million convertible loan, which with interest will rise to EUR270
million.

According to Bloomberg, MF said the move will block other
creditors from claiming early repayment.  The daily said creditor
banks also want to appoint representatives at Risanamento and the
holding companies that control it, Bloomberg discloses.

Risanamento, however, said press reports about a bank refinancing
plan for the company are "just a hypothesis being studied",
Bloomberg notes.

The Italian property developer, which has debt of about EUR2.9
billion, must present a restructuring plan by Sept. 1 to a Milan
court, which on July 29 gave it more time to respond to a
prosecutor's statement that the company had failed.

                    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.


* ITALY: Banks Spearhead Corporate Bailouts, ABI Says
-----------------------------------------------------
Italian banks are spearheading corporate bailouts, plowing as much
as 40% of their assets, more than twice the European average, into
troubled companies, Armorel Kenna at Bloomberg News reports,
citing the country's banking association, ABI.

According to Bloomberg, Gianfranco Torriero, head of research at
ABI, said banks' willingness to pledge more funds stems in part
from balance sheets that are healthy compared with European
rivals.

                   Extraordinary Administration

Francesco Faldi, managing associate at law firm Linklaters LLP in
Milan, as cited by Bloomberg, said lenders have been anxious to
keep companies out of extraordinary administration, Italy's
version of bankruptcy protection, because their claims come after
those of employees, certain suppliers and taxes, slimming a chance
of repayment.

"It is a last resort from a bank's perspective," Bloomberg quoted
Mr. Faldi, who is specialized in restructuring, insolvency and
banking at the law firm, as saying.  "The administrator's job is
to put the interests of the employees, and not the creditors,
first."

Citing Italy's Chambers of Commerce, Bloomberg discloses some 30
companies, most of them privately owned mom-and-pop businesses,
closed each day in the country in the first half, an increase from
21 in the year-earlier period.

                           Going Concern

Bloomberg relates 19 companies sitting on at least EUR5.7 billion
(US$8.1 billion) of debt have said since April their auditors had
"significant doubts" about their ability to continue as going
concerns.  More than 20, among them Maserati designer Pininfarina
SpA, have said they can't pay their loans and asked banks to
freeze or delay payments, Bloomberg notes.


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


HASHIR TRADING: Creditors Must File Claims by September 17
----------------------------------------------------------
LLC Hashir Trading Company is currently undergoing liquidation.
Creditors have until September 17, 2009, to submit proofs of claim
to:

         Jybek Jolu Ave. 118
         Bishkek
         Kyrgyzstan


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


PDM CLO: S&P Junks Rating on Class E Notes From 'BB-'
-----------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class D and E notes
issued by PDM CLO I B.V.  At the same time, S&P affirmed its
ratings on the class A and B notes.  S&P also removed from
CreditWatch negative and affirmed S&P's rating on the class C
notes.

On June 8, S&P placed three tranches in this transaction on
CreditWatch negative following observations of credit quality
deterioration and the defaults of speculative-grade loans in the
underlying portfolio.

The downgrades reflect S&P's view that the underlying portfolio's
credit quality has deteriorated.  S&P's analysis shows an increase
in the scenario default rates for this transaction.  At the same
time, par value losses following the defaults of corporate
obligors in the underlying portfolio have resulted in a decrease
in break-even default rates when subjected to S&P's cash flow
analysis.

In S&P's opinion, the increase in SDRs and the fall in BDRs are no
longer commensurate with the ratings previously assigned to the
class D and E notes, so S&P has lowered its ratings on them.
However, S&P's analysis of the cash flows also indicates to us
that the class C notes are currently commensurate with their
current 'A' rating, so S&P has removed this from CreditWatch
negative and affirmed the rating.

PDM CLO I is an arbitrage cash flow collateralized loan obligation
transaction managed by Permira Debt Managers Group Holdings Ltd.
that closed in December 2007.

As recently announced, S&P's criteria for rating cash flow CLOs
are under review.  This may affect S&P's ratings on the notes in
this transaction.  The rating actions are unrelated to these
proposed changes.

                           Ratings List

                          PDM CLO I B.V.
   EUR267 Million Secured Floating-Rate Notes And EUR33 Million
                        Subordinated Notes

       Ratings Lowered and Removed From Creditwatch Negative

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

       Rating Affirmed and Removed From Creditwatch Negative

                             Rating
                             ------
           Class        To              From
           -----        --              ----
           C            A               A/Watch Neg

                         Ratings Affirmed

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


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


36.6 OAO: Protek Seeks Unit's Bankruptcy Over Payment Row
---------------------------------------------------------
Maria Plis at Reuters reports that drugs distributor CV Protek is
seeking Veropharm OAO's bankruptcy following a payment dispute.

"Despite the court's backing of Protek's demands, 36.6 is in no
hurry to meet its payment commitments for goods that have been
delivered," Reuters quoted Protek as saying in a statement.

Veropharm, the drug making unit of Russian pharmacy chain 36.6
OAO, acted as the guarantor in a RUR22 million (US$697,300) deal
between Protek and another unit of 36.6, Reuters discloses.
According to Reuters, Protek said the guarantee made Veropharm
liable for payment in the deal, which it said it never received.

Reuters relates 36.6 said it had settled debts with Protek at the
end of last year and there was no reason for Protek to file for
Veropharm's bankruptcy.

"We have settled all payments owed to Protek for which Veropharm
acted as guarantor," Reuters quoted 36.6 spokeswoman Irina Lavrova
as saying.  "We do have unpaid debts to Protek, but they are in no
way connected to Veropharm guarantees."

36.6 owes a total of RUR225 million to Protek, the owner of
Russia's second largest drug retailer, Rigla, Reuters notes.

                      Debt Restructuring Talks

Reuters relates 36.6 has defaulted on RUR1.9 billion in bonds and
is now in talks to restructure its outstanding bonds and loans.

Citing a report released by investment firm Rye, Man & Gor
Securities, Reuters discloses 36.6 had planned to settle its debt
issues by selling off a controlling stake in Veropharm, but has
delayed the sale, saying it had not received any attractive offers
for the stake.

As reported in the Troubled Company Reporter-Europe on Aug. 3,
2009, Bloomberg News said 36.6 had debt of RUR4.84 billion
(US$153.5 million) at the end of the first quarter, more than
triple its current market value.  The retailer had trouble
servicing its debt after the credit crunch spread to Russia, and
lost money in 2007 as a new distribution system led to shortages
in Moscow.  Bloomberg disclosed 36.6, which operated 1,084 outlets
in 29 regions at the end of the first quarter, proposed staggering
repayment of a previous bond issue to preserve funds.  According
to Bloomberg, Otkritie Financial Corp. analyst Victor Dima said
bondholders are more likely to agree to an amended restructuring
plan proposed by 36.6, rather than push the company into
bankruptcy, given their debts aren't secured and they would be
unlikely to recover any cash.

Aptechnaya Set' 36.6 OAO (Pharmacy Chain 36.6) --
http://www.pharmacychain366.com/-- is a Russia-based company,
involved in the manufacture of drugs and products for medical
purposes, retail of health and care goods, as well as distribution
of medicaments.  The Company holds the rights to the 36.6 brand
and operates through the network of 1084 pharmacies in 29 regions
in Russia.  The Company's manufacturing business consists of the
production of modern generic pharmaceuticals, oncology products,
vitamins and medicinal plasters.  Its operational structure is
divided into retail (Aptechnaya Set' 36.6), pharmaceuticals
production (Veropharm) and children goods (ELC).  The Company's
Veropharm has three production facilities in Russia and Ukraine.
Aptechnaya set' 36.6 is a member of such organizations as National
Retail Federation and National Association of chain Drug Stores.
It has 53 subsidiaries, out of which 44 are wholly owned.


ALYANS-STROY LLC: Bankruptcy Hearing Set September 1
----------------------------------------------------
The Arbitration Court of Novosibirskaya will convene on
September 1, 2009, to hear bankruptcy supervision procedure on
LLC Alyans-Stroy (Construction).  The case is docketed under
Case No. ?45–4506/2009.

The Temporary Insolvency Manager is:

         A. Zaykov
         Post User Box 11
         Vokzalnaya Magistral 16
         630099 Novosibrsk
         Russia

The Debtor can be reached at:

         LLC Alyans-Stroy
         Chelyuskintsev Str. 15/1
         Novosibirsk
         Russia


AVTOVAZ OAO: Russian Tech to Consolidate Stake in Firm, Others
--------------------------------------------------------------
Anastasia Ustinova at Bloomberg News reports that Russian
Technologies will consolidate its stakes in carmakers OAO KamAZ
and OAO AvtoVAZ and engine-maker OAO Avtodizel in a subsidiary
called Rosavto.

Bloomberg relates Russia Technologies Chief Executive Officer Igor
Zavyalov told state broadcaster Vesti TV Tuesday KamAZ CEO Sergei
Kogogin will head the unit.

"Consolidation of assets and human resources is the most prudent
solution during the crisis," Bloomberg quoted Mr. Zavyalov as
saying.  "We made that decision based on the situation that world
industries find themselves."

Citing Kommersant, Bloomberg discloses Rosavto will own 38% of
KamAZ, 25% of AvtoVAZ and 30% of Avtodizel.

According to Bloomberg, AvtoVAZ said Boris Alyoshin will step down
as CEO and remain on the board.  Bloomberg notes Mr. Zavyalov told
Vesti Igor Komarov, the executive vice president of AvtoVAZ, will
take over the carmaker until the next board meeting.

                           Going Concern

On July 6, 2009, the Troubled Company Reporter-Europe, citing the
Financial Times, reported Avtovaz on said its auditors had raised
doubts about its future as a going concern in an audit of its 2008
results as the fall in revenues hits its ability to pay down
US$1.7 billion of debts.  The FT disclosed Avtovaz said in its
financial statement that it was confident it would continue as a
going concern, partly because of restructuring and partly due to
an US$800 million interest-free government loan.  The company's
sales fell 45 per cent in the year to May, the FT said.

Based in Tolyatti, Russia, AVTOVAZ OAO (AVTOVAZ JSC) --
http://www.lada-auto.ru/-- is engaged in the manufacture of
passenger cars.  The Company's main brands are LADA PRIORA, LADA
Kalina, LADA Samara, LADA 110 and others.  The Company is also
involved in the manufacture of automobile components, distribution
of automobiles and spare parts and operation of automobile service
centers. The Company is also active in a variety of other sectors,
such as power supply, transportation, utilities, construction,
insurance, banking and finance.  AVTOVAZ OAO sells its products on
the domestic market, as well as exports them to Kazakhstan,
Ukraine, Azerbaijan, Armenia, Egypt, Syria, Greece, Belarus,
Uruguay, Cyprus, Germany and others.  It operates through one
representative office located in Moscow, several subsidiaries and
affiliated companies.


KAMA-TIMBER LLC: Creditors Must File Claims by September 2
----------------------------------------------------------
Creditors of LLC Kama-Timber (TIN 5905256047) have until
September 2, 2009, to submit proofs of claims to:

         L. Vlasova
         Temporary Insolvency Manager
         Office 17
         Kombaynerov Str. 34
         614036 Perm
         Russia

The Arbitration Court of Permskiy will convene on September 9,
2009, to hear bankruptcy supervision procedure on the company.
The case is docketed under Case No. ?50–21009/2008.

The Debtor can be reached at:

         LLC Kama-Timber
         Promyshlennaya Str. 117
         Perm
         Russia


KOVINSKAYA TIMBER: Creditors Must File Claims by September 2
------------------------------------------------------------
Creditors of LLC Kovinskaya Timber Company (TIN 2420069915, PSRN
1052420015867) have until September 2, 2009, to submit proofs of
claims to:

         G. Dmitriev
         Insolvency Manager
         Kirova Str. 124/42
         614000 Perm
         Russia

The Arbitration Court of Krasnoyarsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?33–5107/2009.

The Debtor can be reached at:

         LLC Kovinskaya Timber Company
         Parizhskoy Kommuny Str. 25a
         660049 Krasnoyarsk
         Russia

The Court is located at:

         The Arbitration Court of Krasnoyarsk
         Mira prospect 63
         660049 Krasnoyarsk
         Russia


RBC INFORMATION: Onexim Makes New Debt Restructuring Offer
----------------------------------------------------------
RMG, citing Vedomosti, reports that Onexim Group has launched a
new debt restructuring offer to creditors of OAO RBC Information
Systems.

On July 30, 2009, the Troubled Company Reporter-Europe, citing
Reuters, reported RBC offered creditors to restructure half its
debt.  Reuters disclosed Mikhail Prokhorov's Onexim and RBC
proposed to RBC's creditors that half of the company's debts are
converted into new 5-year bonds with a 7% coupon.  According to
Reuters, for second half of the debts, the lenders are offered two
options -- to sell it back to RBC for 36% of its nominal value, or
to restructure it into 8-year bonds and receive 4% of their total
credit in cash.  Onexim agreed to buy 51% of RBC for US$80
million.

Onexim, RMG says, failed to receive votes to approve the previous
offer, which expired on Aug. 18.

                             New Offer

RGM discloses under the new offer, half of RBC debt would be
converted into new bonds with an increased interest rate (above
7%) and the new bonds would be pledged by assets, which generate
85% of RBC cash flow.  RMG states 25% of the debt would be repaid
in cash, and the remaining 25% would be written off.

The new offer expires tomorrow, Aug. 28, RMG notes.

                        Debt Restructuring

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

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


RUSHYDRO JSC: Sayano Mishap's Financial Impact Depends on Gov't
---------------------------------------------------------------
Fitch Ratings says that while the recent accident at the Sayano-
Sushenskaya hydropower station is clearly a negative credit
development for JSC RusHydro (rated 'BB+'/Negative), formerly
Federal Hydrogeneration Company HydroOGK, the full financial
impact of the accident will depend on the Russian government's
evolving response.

Following the August 18, 2009 accident, Russia's Energy Ministry
indicated it may seek a rise in regulated tariffs to help
compensate RusHydro for the capex required to rebuild the damaged
plant, currently estimated at RUB40 billion.  On August 21,2009,
Prime Minister Vladimir Putin directed the government to prepare a
decree temporarily regulating volatile wholesale power prices
following the accident.  Funding plans by RusHydro, such as a
potential sale of treasury shares, will also affect the ultimate
credit impact of the accident.

Although Fitch believes it is too early to assess the full credit
impact of the accident, it is likely that RusHydro will experience
some deterioration in its credit metrics as a result, even with
favourable government intervention.  Consequently, the Outlook on
the company's IDR is likely to remain Negative and will not
necessarily continue to move in tandem with the Sovereign rating
Outlook.

Fitch downgraded RusHydro's Long-term foreign currency Issuer
Default Rating on February 4, 2009 to 'BB+' from 'BBB-' and
maintained its Outlook at Negative following a Sovereign downgrade
to 'BBB'/Negative from 'BBB+'/Negative.  RusHydro is 61.93% owned
by the Russian Federation.


STROITEL LLC: Creditors Must File Claims by August 31
-----------------------------------------------------
Creditors of LLC Stroitel (TIN 5506056818, PSRN 1045511012370)
(Construction) have until August 31, 2009, to submit proofs of
claims to:

         T. Asainov
         Temporary Insolvency Manager
         Apt. 101
         Orlovskogo Str. 5
         644010 Omsk
         Russia

The Arbitration Court of Omskaya will convene at 10:00 a.m. on
October 20, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?46–11015/2009.

The Debtor can be reached at:

         LLC Stroitel
         Apt. 9
         4-ya Transportnaya Str. 32
         644041 Omsk
         Russia


STROY-PODRYAD CJSC: Creditors Must File Claims by August 31
-----------------------------------------------------------
Creditors of CJSC Stroy-Podryad-Plus (TIN 5501103711)
(Construction) have until August 31, 2009, to submit proofs of
claims to:

         V. Yevdokeevich
         Temporary Insolvency Manager
         Office 404
         Prospect K. Marksa 18/6
         644042 Omsk
         Russia

The Arbitration Court of Omskaya will convene at 11:00 a.m. on
October 13, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ? 46–9055/2009.

The Debtor can be reached at:

         CJSC Stroy-Podryad-Plus
         Malinovskogo Str. 17/1
         644090 Omsk
         Russia


TEKH-INVEST CJSC: Moskovskaya Bankruptcy Hearing Set September 1
----------------------------------------------------------------
The Arbitration Court of Moskovskaya will convene at 2:30 a.m. on
September 1, 2009. to hear bankruptcy supervision procedure on
CJSC Tekh-Invest-Stroy (TIN 5018088132, PSRN 1035003372304)
(Construction).  The case is docketed under Case No. ?41–4420/09.

The Temporary Insolvency Manager is:

         N. Solovyev
         Post User Box 12
         109443 Moscow
         Russia

The Debtor can be reached at:

         CJSC Tekh-Invest-Stroy
         Office 9
         Tsiolkovskogo Str. 2A
         Korolev
         141070 Moskovskaya
         Russia


VEROPHARM OAO: Protek Seeks Bankruptcy Over Payment Dispute
-----------------------------------------------------------
Maria Plis at Reuters reports that drugs distributor CV Protek is
seeking Veropharm OAO's bankruptcy following a payment dispute.

"Despite the court's backing of Protek's demands, 36.6 is in no
hurry to meet its payment commitments for goods that have been
delivered," Reuters quoted Protek as saying in a statement.

Veropharm, the drug making unit of Russian pharmacy chain 36.6
OAO, acted as the guarantor in a RUR22 million (US$697,300) deal
between Protek and another unit of 36.6, Reuters discloses.
According to Reuters, Protek said the guarantee made Veropharm
liable for payment in the deal, which it said it never received.

Reuters relates 36.6 said it had settled debts with Protek at the
end of last year and there was no reason for Protek to file for
Veropharm's bankruptcy.

"We have settled all payments owed to Protek for which Veropharm
acted as guarantor," Reuters quoted 36.6 spokeswoman Irina Lavrova
as saying.  "We do have unpaid debts to Protek, but they are in no
way connected to Veropharm guarantees."

36.6 owes a total of RUR225 million to Protek, the owner of
Russia's second largest drug retailer, Rigla, Reuters notes.

                     Debt Restructuring Talks

Reuters relates 36.6 has defaulted on RUR1.9 billion in bonds and
is now in talks to restructure its outstanding bonds and loans.

Citing a report released by investment firm Rye, Man & Gor
Securities, Reuters discloses 36.6 had planned to settle its debt
issues by selling off a controlling stake in Veropharm, but has
delayed the sale, saying it had not received any attractive offers
for the stake.

As reported in the Troubled Company Reporter-Europe on Aug. 3,
2009, Bloomberg News said 36.6 had debt of RUR4.84 billion
(US$153.5 million) at the end of the first quarter, more than
triple its current market value.  The retailer had trouble
servicing its debt after the credit crunch spread to Russia, and
lost money in 2007 as a new distribution system led to shortages
in Moscow.  Bloomberg disclosed 36.6, which operated 1,084 outlets
in 29 regions at the end of the first quarter, proposed staggering
repayment of a previous bond issue to preserve funds.  According
to Bloomberg, Otkritie Financial Corp. analyst Victor Dima said
bondholders are more likely to agree to an amended restructuring
plan proposed by 36.6, rather than push the company into
bankruptcy, given their debts aren't secured and they would be
unlikely to recover any cash.

Verofarm OAO (Veropharm OJSC) -- http://www.veropharm.ru/-- is a
Russia-based generic pharmaceutical manufacturer.  It has three
main facilities: in Voronezh, which manufactures adhesive bandages
and medical plasters; in Belgorod, divided into two workshops, one
producing tables, capsules, drops and vial (the main facility) and
one which produces ampoules, and in the Vladimir Region (the
Pokrov plant) which produces oncology products, as well as other
products that utilize various liquid delivery systems including
liquid injectables, sprays and freeze-dried injectables.  It has
four subsidiaries located in Russia, Ukraine and Cyprus.  Verofarm
OAO sells its products on the domestic market, as well as exports
them to Serbia, Montenegro, Latvia, Lithuania, Estonia and the
Commonwealth of Independent States countries.  The Company is a
member of the Association of Russian Pharmaceutical Manufacturers.


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


ARMAVIR HEAVY: Court Opens Bankruptcy Proceedings
-------------------------------------------------
Astrum IM reports that a court in the Krasnodar Region (Russia)
has commenced bankruptcy proceedings against Armavir Heavy
Machinery Plant, part of the Ukrainian holding Azovmash.

The court opened bankruptcy proceedings against Armavir at the
request of Efko-market (Russia), which is owed RUR13 million by
the company.  Marketservice-95 (Russia) also filed a bankruptcy
suit against the company, the report discloses.

The hearings on the company's bankruptcy case have been delayed
until September 7, 2009, the report notes.

According to the report, Azovmash expects to sign a settlement
agreement with the company's two creditors.


CAREER ACADEMY: Creditors Must File Claims by August 29
-------------------------------------------------------
Creditors of LLC Training Company Career Academy (code EDRPOU
34635304) have until August 29, 2009, to submit proofs of claim
to:

         D. Maliuska
         Insolvency Manager
         Office 48
         Lukianovskaya Str. 63
         04071 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 13, 2009.  The case is docketed under
Case No. 44/378-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Training Company Career Academy
         Bratislavskaya Str. 8
         02156 Kiev
         Ukraine


INTERMET LTD: Court Starts Bankruptcy Supervision Procedure
-----------------------------------------------------------
The Economic Court of Dnepropetrovsk commenced bankruptcy
supervision procedure on LLC Intermet Ltd (code EDRPOU 24604961).

The Insolvency Manager is:

         E. Kirichenko
         B. Hmelnitsky Str. 16
         49051 Dnepropetrovsk
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         LLC Intermet Ltd
         Pelin Ave. 16
         Dneprodzerzhynsk
         51900 Dnepropetrovsk
         Ukraine


INTERSPECIALTECHNICS-PLUS: Creditors Must File Claims by August 29
------------------------------------------------------------------
Creditors of LLC Interspecialtechnics-Plus (code EDRPOU 34241787)
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 Kiev commenced bankruptcy proceedings
against the company on July 15, 2009.  The case is docketed under
Case No. 43/261.

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 Interspecialtechnics-Plus
         Druzhba Narodov Blvd. 10
         01103 Kiev
         Ukraine


INVEST-UNIVERSAL LLC: Creditors Must File Claims by August 29
-------------------------------------------------------------
Creditors of LLC Invest-Universal (code EDRPOU 35309044) have
until August 29, 2009, to submit proofs of claim to:

         Trading agency 'Creative'
         Insolvency Manager
         Artem Str. 37-41
         04053 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 15, 2009.  The case is docketed under
Case No. B3/124-09.

The Court is located at:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Invest-Universal
         Zhukovsky Str. 4
         Boyarka
         08150 Kiev
         Ukraine


NIKOLAYEV-METTRADE LLC: Creditors Must File Claims by August 29
---------------------------------------------------------------
Creditors of LLC Nikolayev-Mettrade (code EDRPOU 32282926) have
until August 29, 2009, to submit proofs of claim to:

         L. Timofeyeva
         Insolvency Manager
         Post Office Box 179
         54017 Nikolayev
         Ukraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on July 21, 2009.  The case is docketed under
Case No. 5/187/09.

The Court is located at:

         The Economic Court of Nikolayev
         Admiralskaya Str. 22-a
         54009 Nikolayev
         Ukraine

The Debtor can be reached at:

         LLC Nikolayev-Mettrade
         Office 179
         Lazurnaya Str. 18-b
         Nikolayev
         Ukraine


OTAMANSKY TECHNICAL: Creditors Must File Claims by August 29
------------------------------------------------------------
Creditors of LLC Otamansky Technical Service (code EDRPOU
32254747) have until August 29, 2009, to submit proofs of claim to
the Rokitniansky regional state tax inspection, the company's
insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 12, 2009.

The Court is located at:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Otamansky Technical Service
         Kivshovata
         Taraschansky
         09543 Kiev
         Ukraine


TOPTRADESERVICE LLC: Creditors Must File Claims by August 29
------------------------------------------------------------
Creditors ofc (code EDRPOU 33236933) have until August 29, 2009,
to submit proofs of claim to:

         F. Lazarev
         Insolvency Manager
         Matrosov Str. 27
         36002 Poltava
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on May 26, 2009.  The case is docketed under
Case No. 44/113-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Otamansky Technical Service
         Schors Str. 29
         01133 Kiev
         Ukraine


SPROBA LLC: Creditors Must File Claims by August 29
----------------------------------------------------
Creditors of LLC Sproba (code EDRPOU 22349878) have until
August 29, 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 on May 28, 2009.  The case is docketed under
Case No. 4/156.

The Court is located at:

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

The Debtor can be reached at:

         LLC Sproba
         P. Mirny Str. 26
         Lvov
         Ukraine


STEEL ELECTRO: Creditors Must File Claims by August 29
------------------------------------------------------
Creditors of LLC Steel Electro Black Metals (code EDRPOU 20481970)
have until August 29, 2009, to submit proofs of claim to V.
Zhitnik, the company's insolvency manager.

The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company on July 20, 2009.  The case is docketed under
Case No. 26/50(09).

The Court is located at:

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

The Debtor can be reached at:

         LLC Steel Electro Black Metals
         Zeyskaya Str. 10
         69008 Zaporozhye
         Ukraine


UGLETREST LLC: Creditors Must File Claims by August 29
------------------------------------------------------
Creditors of LLC Coal Producer Ugletrest (code EDRPOU 33772148)
have until August 29, 2009, to submit proofs of claim to
A. Davidenko, the company's insolvency manager.

The Economic Court of Donetsk region commenced bankruptcy
proceedings against the company on July 1, 2009.  The case is
docketed under Case No. 5/162-b.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Coal Producer Ugletrest
         Kirov Str. 9
         Shakhtersk
         86200 Donetsk
         Ukraine


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


ADMIRAL TAVERNS: Lloyds May Write Off GBP500 Mil. Debt
------------------------------------------------------
Pan Kwan Yuk at The Financial Times reports that Admiral Taverns
is in talks with its lenders over a possible debt-for-equity swap
after the pub group breached banking covenants.

The FT relates accounts filed on Tuesday said "Discussions have
taken place between the interested parties regarding the preferred
options of a debt- for-equity swap by the principal banker or the
introduction of significant additional equity by new equity
investors".

According to the FT, the terms of the deal are still being
negotiated.  However, it is understood the most likely option is a
debt-for-equity swap, with Lloyds Banking Group possibly agreeing
to write off as much as GBP500 million of debt, the FT notes.

Bank of Scotland, which was acquired by Lloyds last autumn, is
Admiral's biggest lender, having provided the business with some
GBP855 million to finance a string of acquisitions over the past
five years, the FT discloses.  Irish Nationwide Building Society
is listed as its secondary lender, with which it took out a GBP106
million loan, the FT states.

Admiral Taverns -- http://www.admiraltaverns.co.uk/-- is the UK's
largest independent tenanted and leased pub company.


BUCKINGHAM SECURITIES: Goes Into Liquidation After Bond Default
---------------------------------------------------------------
Chris Bourke at Bloomberg News reports that the Buckingham
Securities Holdings Plc, property investor Simon Halabi's U.K.
advisory company, has gone into liquidation.

Buckingham "ceased all trading activity and is being liquidated,"
Bloomberg quoted Richard Merrin, a spokesman for corporate
restructuring firm MCR, which was given the task of dismantling
the firm on Aug. 21, as saying.

Bloomberg recalls GBP1.15 billion (US$1.88 billion) of bonds that
back nine of Mr. Halabi's central London office buildings
defaulted in June after the properties were valued at
GBP929 million, about half of the 2006 level, causing a breach of
the debt agreement.  Buckingham, which advises Mr. Halabi's
property owning the trust on real estate investments, reported a
GBP9.1-million loss for the year ending June 30, Bloomberg
discloses.

According to Bloomberg, a notice on the Companies House Web Site,
which holds the accounts of U.K. private businesses, said earlier
yesterday that Buckingham Securities had appointed a liquidator.


CATTLES PLC: Refinancing Talks Continue; Delays 1H09 Results
------------------------------------------------------------
Cattles plc said remains in constructive discussions with its key
financial creditors towards achieving a formal standstill which
would permit restructuring discussions to commence.  However,
these complex negotiations are not expected to be concluded for
some time.

Cattles said it will therefore not be in a position to publish its
half-yearly financial report for the six months ended June 30,
2009 by August 31, 2009 as is required by Disclosure and
Transparency Rule (DTR) 4.2.2.

On April 23, 2009, Cattles announced that, in view of the
continuing negotiations with its debt providers to seek a
restructuring of its finances, it was not in a position to publish
its report and accounts for the year ended December 31, 2008, as
required by Disclosure and Transparency Rule (DTR) 4.1.3.  As a
result, the company requested a suspension of trading in its
securities pending that publication.

A further announcement will be made when appropriate.

As reported in the Troubled Company Reporter-Europe on Aug. 12,
2009, Reuters said Cattles is in talks with lenders to agree a
formal standstill agreement after extending the maturity of the
GBP500 million banking facilities until the end of the year.
Reuters disclosed the company is saddled with GBP700 million
(US$1.2 billion) of bad debts after accounting issues and poor
impairment provisioning.

Cattles plc -- http://www.cattles.co.uk/-- is a financial
services company specializing in providing consumer credit to non-
standard customers in United Kingdom.  The Company also provides
debt recovery services to external clients and its consumer credit
business, and working capital finance for small- and medium-sized
businesses.  It also has a car retail operation, which is an
introducer of hire purchase customers to its consumer credit
business. Its business divisions include Welcome Financial
Services, The Lewis Group and Cattles Invoice Finance.  Welcome
Financial Services consists of three businesses: Welcome Finance,
Shopacheck and Welcome Car Finance.  Shopacheck provides short-
term home collected loans to some 260,000 customers through 52
branches.  The Lewis Group provides debt recovery and
investigation services, serving both external clients and Welcome
Financial Services.  In September 2007, it announced the
acquisition of a debt portfolio of United Kingdom credit card,
loan and overdraft receivables.

                        *     *     *

As reported in the Troubled Company Reporter-Europe on July 10,
2009, Fitch Ratings downgraded Cattles plc's Long-term Issuer
Default Rating to 'RD' from 'CC'. Fitch simultaneously
downgraded Cattles' Short-term IDR to 'RD' from 'C'.  The
company's senior unsecured bonds' Long-term rating was
affirmed at 'C' with a Recovery Rating of 'RR5'.


DSG INTERNATIONAL: Pirc Balks at Proposed Renumeration Scheme
-------------------------------------------------------------
Samantha Pearson and Kate Burgess at The Financial Times report
that Pirc, the investor advisory service, has voiced opposition to
DSG International plc's plans to create an exceptional
remuneration scheme that will allow executives to sacrifice up to
25% of their salaries in exchange for share options.

According to the FT, unlike the retailer's other option plans,
this scheme is not based on the participants' performance.
Pirc, as cited by the FT, said it "believes that the waiving of
performance conditions for financial year 2009-10 does not align
the interests of shareholders with those of senior management, as
rewards will be granted in spite of poor performance".

Shareholders will vote on the plan at DSG's annual meeting next
week, the FT notes.

The FT relates DSG, which owns the Curry's and PC World chains,
said it already had shareholders' backing.  "We consulted with our
shareholders on these proposals and they are in principle fully
supportive primarily because these arrangements more closely align
the remuneration of the executives with the interests of
shareholders," the FT quoted DSG
as saying.

As reported in the the Troubled Company Reporter-Europe on June
30, 2009, The Times said that DSG posted a pre-tax loss of
GBP140.4 million for the 12 months to May 2, compared with a loss
of GBP184.1 million in the previous period, citing smaller
writedowns on the value of its European businesses.

Headquartered in Hemel, Hempstead, United Kingdom, DSG
International Plc -- http://www.dsgiplc.com/-- is the parent
company of a group engaged in the multi-channel retail of high
technology consumer electronics, personal computers, domestic
appliances, photographic equipment, communication products, and
related financial and after-sales services.  The Company also
undertakes business to business (B2B) sales.  The Company operates
in three divisions: electricals, computing and e-commerce.  The
electricals division is engaged in the retail sale of high
technology consumer electronics, domestic appliances, photographic
equipment and related services.  The computing division is engaged
in the retail and B2B sale of computer hardware and software,
associated peripherals and related services. The e-commerce
division is engaged in online retail sale of high technology
consumer electronics, domestic appliances, photographic equipment
and related services.

                        *     *     *

DSG International plc continues to carry Fitch Ratings' (DSG) 'B'
long-term and short-term issuer default ratings with negative
outlook.  The company's long-term IDR was downgraded by Fitch to
its current level from 'BB-' in January 2009.


KEYDATA INVESTMENTS: Unveils Members of Creditors Committee
-----------------------------------------------------------
Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers LLP and
Joint Administrators of Keydata Investment Services Limited have
announced that the Keydata Creditors Committee will comprise:

   1) HM Revenue and Customs

   2) Credit Suisse

   3) Peter Magowan - founder of the Keydata Victims Support Group

   4) Geoff Hartnell - Independent Financial Adviser

    5) John Joseph - Independent Financial Adviser

Dan Schwarzmann, partner and joint administrator,
PricewaterhouseCoopers LLP, said: "I am grateful to the members of
the Creditors Committee for putting themselves forward and I look
forward to discussing some complex strategic issues with them.
Furthermore, I will invite further parties to attend the meetings
if I believe this would be beneficial to investors."

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

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


LIGHTHOUSE TRUST: In Administration; PwC Appointed
--------------------------------------------------
Bruce Cartwright and Laurie Manson of PricewaterhouseCoopers LLP
in Scotland were appointed as Joint Administrators to The
Lighthouse Trust, at the request of the directors, on August 25,
2009.

The Lighthouse Trust performs a role in the delivery of the
Scottish government's Architecture Policy and Creative Industries
strategies at national and local level and a developing role in
designing advocacy at all levels.

A charitable organization, The Lighthouse Trust employs 57
employees (full and part time) and reported a turnover of cGBP3.5
million in the last financial year.

The charity has traditionally derived its funding from the public
sector for specific projects as well as GBP100,000 core funding
from GCC for exhibitions and educational programs.  It also
generates commercial revenue through a number of activities such
as the lease of office and restaurant/bar space, conference and
commercial events, and retail activities.

Due to a marked reduction in demand for some of these commercial
activities, The Lighthouse Trust experienced some financial
difficulties and will as a result, record a net deficit for the
financial year 2008/09.  The Board subsequently carried out a
substantial review to reduce its overhead base, however, reached
the conclusion that due to a funding gap it would be unable to
implement it.

Bruce Cartwright, head of business recovery services at
PricewaterhouseCoopers in Scotland, stated: "Over the last ten
years, The Lighthouse Trust has played a key role in the
development of architectural policy in Scotland.  It has
traditionally been reliant on substantial income generated from
commercial activities to run the Grade A listed Mackintosh
Building and this market, particularly in relation to income from
conferences and functions has been hit hard in the current market
conditions with many organisations taking events in-house.

"I understand that the Board was in the course of taking steps to
address a funding short fall but it became apparent that while the
revised business plan addressed many of the issues it could not
address the funding deficit derived from losses incurred in the
previous twelve months.

"Our immediate priority is to investigate all possible options
with an open mind to determine if a sustainable economic structure
can be delivered that will enable The Lighthouse Trust to continue
its existing role and fulfil any immediate commitments.  While we
assess the position, the building will remain open for business."


LLOYDS BANKING: To Shed 200 U.K. Jobs in General Insurance Unit
---------------------------------------------------------------
Jon Menon at Bloomberg News reports that Lloyds Banking Group Plc
plans to cut about 200 British jobs in its general insurance unit.

Bloomberg relates Lloyds said the reductions in Newport, Gwent and
West Yorkshire will be made by the end of January.

Lloyds, Bloomberg says, is reducing employee numbers this year
following its acquisition of HBOS Plc.  The bank plans to save
more than GBP1.5 billion (US$2.5 billion) by 2011, Bloomberg
notes.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers.  The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking.  Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision.  The Company also
operates an international banking business with a global footprint
in 40 countries.  Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester.  On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.


LUNAR FUNDING: Moody's Withdraws Ratings Two Classes of Notes
-------------------------------------------------------------
Moody's Investors Service withdrawn its ratings of two classes of
notes issued by Lunar Funding I Limited.

These transactions represent the repackaging of Euro-Transferable
Custody Receipts.  The Receipts are transferable custodial
receipts issued under Ambac Assurance UK Limited's secondary
market financial guarantee programme.

These rating actions are a result of the withdrawal of the ratings
on the Receipts.  The rating actions are consistent with Moody's
modified approach to rating structured finance securities wrapped
by financial guarantors as described in a press release dated
November 10, 2008, titled "Moody's modifies approach to rating
structured finance securities wrapped by financial guarantors."

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for repackaged securities as described in Moody's Special Reports
below:

  -- Repackaged Securities (October 2001)

  -- Moody's Refines It's Approach to Rating Structured Notes
     (July 1997)

The rating actions are:

  -- GBP15M Series 2005-5 GBP15,000,000 Secured Asset-Backed
     Deferrable Fixed Rate Instalment Notes due 2031 Notes,
     Withdrawn; previously on Aug. 13, 2009 Downgraded to Caa2

  -- GBP80M Series 6 GBP80,000,000 Secured Asset-backed
     Deferrable Fixed Rate Instalment Notes due 2032 Notes,
     Withdrawn; previously on Aug. 13, 2009 Downgraded to Caa2


ROYAL BANK: To Scale Back Pension Benefits of 62,500 Workers
------------------------------------------------------------
Norma Cohen and Jane Croft at The Financial Times report that
Royal Bank of Scotland Group plc is scaling back pension benefits
for about 62,500 employees.

According to the FT, the bank is capping the portion of any salary
rise that counts as final pay for pension purposes at 2% or the
rate of inflation, whichever is lower.  From December, it will
also cut the lump sum available to each employee taking early
retirement, the FT says.

RBS, as cited by the FT, said the move was aimed at slowing the
rate at which its pension obligations rose, noting that since it
closed the plan to new members in 2006, only around a third of its
UK staff was accruing final salary pensions.

                               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.


RMAC 2005-NS3: S&P Cuts Ratings on Two Classes of Notes to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on classes M2 and B1
issued by RMAC 2005-NS3 PLC.  At the same time, S&P affirmed its
ratings on classes A2 and M1.

The actions follow S&P's credit and cash flow review of the most
recent information S&P received for this transaction.  S&P's
analysis showed a further weakening of the collateral performance,
and a generally increasing negative trend in key performance
indicators.

While S&P has seen some limited improvements in performance over
the interest period of March to June with total arrears falling
from 34.35% in March to 33.81%, S&P expects a more negative trend
to continue, with rising 90+ day arrears, repossessions, and
losses.

The transaction has experienced a significant increase in
cumulative losses which have risen 32 basis-points to 74 bps since
December 2008.  Delinquencies (including repossessions) have also
risen over this period, with total arrears rising to 35.9% from
31.9% in June 2009, of which 90+ day arrears increased 6.9% to
26.3%.  Additionally, CPR continues to fall and is currently
10.6%, resulting in a protracted build in credit enhancement
experienced from the deleveraging in the transaction.

S&P would expect the general increase in these negative trends to
continue and apply further stress to the transaction.  With the
recent falls in house price indicies, S&P would expect loss
severities to increase on the sale of future repossessions and for
arrears to increase further.

The portfolio consists of U.K nonconforming loans predominately
originated in 2005.  The portfolio contains approximately 21% of
borrowers with county court judgments, and 1% of borrowers that
were previously bankrupt.

S&P will continue to monitor the transaction's performance,
regarding long-term arrears, future repossessions, losses, and
loss severities.

                           Ratings List

                         RMAC 2005-NS3 PLC
       GBP397.5 Million and EUR448.2 Million Multi-Currency
             Mortgage-Backed Floating-Rate Notes

       Ratings Lowered and Removed From Creditwatch Negative

                              Rating
                              ------
             Class      To              From
             -----      --              ----
             M2a        A               AA-/Watch Neg
             M2c        A               AA-/Watch Neg
             B1a        BB              BBB/Watch Neg
             B1c        BB              BBB/Watch Neg

                         Ratings Affirmed

                        Class      Rating
                        -----      ------
                        A2a        AAA
                        A2c        AAA
                        M1a        AA
                        M1c        AA


WHITE YOUNG: Says Debt Talks May Lead to Share Dilution
-------------------------------------------------------
Philip Stafford at The Financial Times reports that White Young
Green Plc warned that debt talks with its banks are likely to lead
to a "material dilution" for existing shareholders.

According to the FT, the company also said that, due to the scale
of the potential dilution, it may fall foul of London Stock
Exchange rules on free float, so its shares may no longer be able
to trade on the main market.

The FT relates the company has been in talks with its banks,
Lloyds, Fortis and RBS to renegotiate its banking facilities.  It
faces a twice-deferred test of its banking covenants on August 31,
the FT notes.

At December 31, the group had net debt of GBP91.5 million, the FT
discloses.  The FT recalls the company has cut more than 550 jobs
in the past year and closed seven regional offices, resulting in
"significant" exceptional costs.

                    About White Young Green plc

Headquartered in Leeds, White Young Green plc --
http://www.wyg.com/-- operates as a consultant to the built,
natural and social environment.  WYG provides a range of
complementary engineering services to clients covering all key
engineering disciplines and many associated specialist skills.  It
offers non-design-related management services, including project
management, property management, cost management, dispute
resolution, health and safety management, security consultancy and
socio- economic advisory services.  The Company provides
environmental services to clients, including noise, air and water
quality, environmental management systems, ecology, environmental
impact assessments, waste management, landscape and urban design,
pollution control, geotechnical investigations, asbestos surveys
and contaminated land remediation services.


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


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