TCREUR_Public/090904.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, September 4, 2009, Vol. 10, No. 175

                            Headlines

A U S T R I A

DER HERR: Claims Filing Deadline is September 10
KOMMUNALKREDIT AUSTRIA: Moody's Retains Review on Ratings
MARTINA BICHLER: Claims Filing Deadline is September 10
MTC MUNDUS: Claims Filing Deadline is September 10
PETERS GMBH: Creditors Must File Claims by September 10

S 4 IMMOBILIENANLAGE: Claims Filing Deadline is September 10
S.A.L.G.E.N. BAU: Claims Filing Deadline is September 10
SEV GMBH: Claims Filing Deadline is September 10
SEVEN COCKTAILS: Claims Filing Deadline is September 10
SH 106: Claims Filing Deadline is September 10

SOJAL GMBH: Claims Filing Deadline is September 10
SSG GMBH: Claims Filing Deadline is September 10


B E L G I U M

EVADIX GROUP: Court Grants Creditor Protection to Three Units


C Z E C H   R E P U B L I C

PERLA BAVLNARSKE: Halts Production; Dismisses Remaining Staff
SPOLCHEMIA AS: Delays Payment of Loans Totaling CZK2.77 Billion

* CZECH REPUBLIC: Construction Sector Bankruptcies Up 49% in 1H09


F R A N C E

ALCATEL LUCENT: Moody's Assigns 'B1' Rating on Senior Bonds
ALCATEL LUCENT: S&P Affirms Corporate Credit Ratings at 'B+/B'
ALCATEL-LUCENT: To Raise EUR1 Bil. in Bond Issue to Refinance Debt
BELVEDERE SA: Bondholder Group Turns Down Recovery Plan
PEUGEOT CITROEN: Financing Arm to Sell EUR500 Mil. Bonds


G E R M A N Y

ARCANDOR AG: Schickedanz Liable to Pay EUR215 Mil. In Loans
ARCANDOR AG: Board Member Mulls Legal Action Over Dismissal
ESCADA AG: Five-Member Creditors' Committee Formed in U.S. Case
GENERAL MOTORS: Germany Rejects RHJ's Improved Offer for Opel Unit
IM STOPPING: Voluntary Chapter 15 Case Summary

PORSCHE AUTOMOBIL: Faces Frankfurt Probe Into VW Stock Trading
TREOFAN HOLDINGS: Moody's Changes Default Rating to 'Ca/LD'


I R E L A N D

INDEPENDENT NEWS: O'Brien Wants EGM to Vote on Fate of Newspapers
LIGHTPOINT PAN-EUROPEAN: Moody's Cuts Rating on EUR12M Notes to B2

* IRELAND: Corporate Failures Up 136% in First 8 Months of 2009


I T A L Y

RISANAMENTO SPA: Board, Bank Lenders Approve Restructuring Plan


K A Z A K H S T A N

AKTOBE SPORT: Creditors Must File Claims by September 11
BES TAU: Creditors Must File Claims by September 11
KAZ STROY: Creditors Must File Claims by September 11
KAZ TRANS: Creditors Must File Claims by September 11
LINOLIT LLP: Creditors Must File Claims by September 11

METALLOIZDELIYA LLP: Creditors Must File Claims by September 11
METR STROY: Creditors Must File Claims by September 11
NAURYZ LEASING: Creditors Must File Claims by September 11
NOVY VEK: Creditors Must File Claims by September 11
UVELIRNOYE PREDPRIYATIYE: Creditors Must File Claims by Sept. 11


K Y R G Y Z S T A N

DEKA CITY: Court Names B. Aralbaev as Insolvency Manager
INDIRA LLC: Court Names R. Jundubaev as Insolvency Manager
PLUTON SERVICE: Court Names B. Aralbaev as Insolvency Manager
RESOURCE STROY: Court Names A. Mamytova as Insolvency Manager
TECH SYSTEM: Court Names B. Usekeyev as Insolvency Manager


L U X E M B O U R G

EVRAZ GROUP: To Discuss Covenant Changes with Banks


P O L A N D

PKN ORLEN: Fitch Puts 'BB+' Issuer Rating on Negative Watch


R U S S I A

ALANIYA OJSC: Creditors Must File Claims by September 10
AVTOVAZ OAO: Board Appoints Igor Komarov as New President
EVRAZ GROUP: To Discuss Covenant Changes with Banks
FINANCE LEASING: Moody's Withdraws 'Caa3' Issuer Ratings
GLAS FIBER: Under External Management Bankruptcy Procedure

ISTRA-LES LLC: Court Appoints Temporary Insolvency Manager
NUR-STROY LLC: Court Appoints Temporary Insolvency Manager
PERVOMAYSKIY LLC: Creditors Must File Claims by September 10
STROY-NEFTE-GAZ: Creditors Must File Claims by September 10
STROY-SERVIS LLC: Creditors Must File Claims by September 10

TMK OAO: S&P Affirms 'B' Rating on Bonds Issued by TMK Capital
TOMSK ELECTRIC: Under External Management Bankruptcy Procedure
TUMEN-ENERGO OJSC: Creditors Must File Claims by September 10
ULYANOVSK HEAVY: Court Names L.Lazarenko as Insolvency Manager

* KEMEROVO REGION: Fitch Affirms Currency Ratings at 'BB-


S L O V A K   R E P U B L I C

SKYEUROPE AIRLINES: Letiste in Talks with CSA to Cover Services


S P A I N

AYT FTPYME II: Moody's Cuts Rating on Series F3 Notes to 'Ba3'
SANTANDER CONSUMER: Fitch Cuts Rating on Class E Notes to 'CC'


S W I T Z E R L A N D

AL + DE BAUCONSULTING: Claims Filing Deadline is September 21
NICK LOCHER: Claims Filing Deadline is September 24
PATTERNE QUINZE: Claims Filing Deadline is September 21
PRIMECALC GMBH: Claims Filing Deadline is September 22


T U R K E Y

* ERZURUM MUNICIPALITY: Fitch Affirms 'B+' Currency Ratings


U K R A I N E

AGROSVIT-XXI LLC: Creditors Must File Claims by September 9
AROMATNY AGRICULTURAL: Creditors Must File Claims by September 9
ARTOL-AGRO LLC: Creditors Must File Claims by September 9
AVTOSHKOLA LLC: Creditors Must File Claims by September 6
DANKO LLC: Court Starts Bankruptcy Supervision Procedure

EMONT CJSC: Creditors Must File Claims by September 9
ERFOLG LLC: Creditors Must File Claims by September 6
FRANK-AGRO LLC: Creditors Must File Claims by September 9
GARANTIS-SOUTH LLC: Creditors Must File Claims by September 9
NAFTOGAZ OF UKRAINE: 75% of Creditors to Back Debt Restructuring

NAFTOGAZ OF UKRAINE: Credit Suisse to Advise on Debt Restructuring
NATSIONALNYI KREDIT: Acquired by Andriy Onistrat and Kluyiv Bros.
OTM LLC: Creditors Must File Claims by September 9
SIMFEROPOL EMPTIES: Court Starts Bankruptcy Supervision Procedure
STEEL CJSC: Court Starts Bankruptcy Supervision Procedure

SOUTHWESTERN INDUSTRIAL: Creditors Must File Claims by Sept. 10
UTTK LLC: Court Starts Bankruptcy Supervision Procedure


U N I T E D   K I N G D O M

BRITAIN'S AQUATIC: In Administration; KPMG Appointed
CATTLES PLC: To Close 30 Welcome Units; More Than 500 Jobs Axed
DSG INTERNATIONAL: Sells Polish Unit to IDMSA for Nominal Price
EUROMASTR PLC: S&P Junks Rating on Class E Series 2007-1V Notes
GLADEDALE HOMES: Has Debt-for-Equity Swap Deal with Lloyds

INCISIVE MEDIA: To Split; Banks to Keep Troubled UK Arm
KETECH GROUP: Gov't Investment Arm Probes Into Pension Black Hole
LEHMAN BROTHERS: Gets NY Court Nod to Represent U.K. Estates
LLOYDS BANKING: Cash Call Gets Shareholder Backing
MCINERNEY HOLDINGS: Posts Wider 1H09 Loss After EUR156MM Writedown

* UK: Analysts Expect Second Wave of Corporate Restructurings


X X X X X X X X

* BEARINGPOINT INC: Completes Sale of EMEA Practice for US$69 Mil.

* BOOK REVIEW: The Deregulation of the Banking and Securities


                         *********


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


DER HERR: Claims Filing Deadline is September 10
------------------------------------------------
Creditors of DER HERR GmbH have until September 10, 2009 to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 16, 2009 at 10:40 a.m.

For further information, contact the company's administrator:

         Mag. Georg Dieter
         Kalchbergg. 10
         8010 Graz
         Austria
         Tel: 0316/22 89 22
         Fax: 0316/22 89 22 - 89
         E-mail: office@sdra.at


KOMMUNALKREDIT AUSTRIA: Moody's Retains Review on Ratings
---------------------------------------------------------
Moody's Investors Service says that the ratings of Kommunalkredit
Austria AG and its subsidiary Kommunalkredit International Bank
Ltd remain on review for possible downgrade given that the
European Commission has not yet completed the review of the bank's
restructuring plan.  The rating agency will conclude its review
process in the coming few weeks based on the banking group's
existing structure and profile.

On June 23, 2009, the rating agency commented on Kommunalkredit's
announcement of a restructuring plan that would divide it into a
'going concern' bank and an entity to be wound down, noting that
the plan was subject to EU approval.  Moody's announced that it
would close its review of Kommunalkredit's ratings in light of the
European Commission's comments, which Moody's expected by mid-July
at the earliest.  However, the rating agency understands that the
European Commission's approval process has not yet been concluded
and does not expect it or the bank's restructuring process to be
finalised shortly.  Hence, Moody's will conclude its review of
Kommunalkredit's ratings within the coming weeks on the basis of
the existing structure and profile of the bank and the group.

Moody's review is focusing on Kommunalkredit's reliance on outside
support for both liquidity and capital, and the rating agency's
concern about the potential erosion of the group's franchise.
Further important factors include the uncertainty regarding the
extent and duration of the required government support, as well as
the bank's ability to return to sustainable profitability in the
foreseeable future.

Moody's review of KIB's ratings will be concluded at the same time
as its review of Kommunalkredit's ratings.  As KIB is an integral
part of Kommunalkredit, its ratings are closely aligned with those
of its parent.

The last rating action on Kommunalkredit was on February 17, 2009,
when Moody's downgraded its bank financial strength rating (BFSR)
to D from C-.  At the same time, the Tier 1 preferred securities
of Kommunalkredit and Kommunalkredit Capital I Limited were
downgraded to Caa1 from A2, and Kommunalkredit's upper Tier 2
securities were downgraded to B1 from A1.  All the ratings
(including the Aa3 senior debt and deposit ratings as well as the
Prime-1 short-term rating) remained on review for further
downgrade.

The last rating action on KIB was on February 18, 2009, when
Moody's downgraded its BFSR to D from C- and kept it on review for
possible further downgrade.  At the same time, Moody's kept KIB's
A1 senior debt and issuer ratings and its Prime-1 commercial paper
and short-term issuer ratings on review for possible further
downgrade.

Headquartered in Vienna, Kommunalkredit Austria AG reported
consolidated assets of EUR37.5 billion at the end of 2008 and an
after-tax loss of EUR1.5 billion for the full year.
Kommunalkredit International Bank's results are incorporated into
those of its parent.


MARTINA BICHLER: Claims Filing Deadline is September 10
-------------------------------------------------------
Creditors of Martina Bichler GmbH have until September 10, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 11:30 a.m.

For further information, contact the company's administrator:

         Dr. Peter Zens
         Esteplatz 5/5
         1030 Wien
         Austria
         Tel: 534 90 0
         Fax: 534 90 50
         E-mail: office@schopf-zens.at


MTC MUNDUS: Claims Filing Deadline is September 10
--------------------------------------------------
Creditors of MTC MUNDUS TRADE CONSULT GmbH have until September
10, 2009 to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 11:15 a.m.

For further information, contact the company's administrator:

         Mag. Martin Honemann
         Oelzeltgasse 4
         1030 Wien
         Austria
         Tel: 713 61 92
         Fax: 713 61 92 22
         E-mail: martin.honemann@kosesnik-langer.at


PETERS GMBH: Creditors Must File Claims by September 10
-------------------------------------------------------
Creditors of Peters GmbH have until September 10, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 16, 2009 at 10:00 a.m. at:

         Civil Court of Graz
         Room 222
         Second Floor
         Graz
         Austria

For further information, contact the company's administrator:

         Dr. Norbert Scherbaum
         Einspinnergasse 3, 2
         8010 Graz
         Austria
         Tel: 0316/83 24 60
         Fax: 0316/83 24 60 - 20
         E-mail: office@scherbaum-seebacher.at


S 4 IMMOBILIENANLAGE: Claims Filing Deadline is September 10
------------------------------------------------------------
Creditors of S 4 Immobilienanlage GmbH have until September 10,
2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 10:15 a.m.

For further information, contact the company's administrator:

         Dr. Eva Riess
         Zeltgasse 3/13
         1080 Wien
         Austria
         Tel: 402 57 01
         Fax: 402 57 01 21
         E-mail: law@riess.co.at


S.A.L.G.E.N. BAU: Claims Filing Deadline is September 10
--------------------------------------------------------
Creditors of S.A.L.G.E.N. Bau GmbH have until September 10, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 11:45 a.m.

For further information, contact the company's administrator:

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


SEV GMBH: Claims Filing Deadline is September 10
------------------------------------------------
Creditors of SEV GmbH have until September 10, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 12:15 p.m.

For further information, contact the company's administrator:

         Dr. Susanne Fruhstorfer
         Seilerstatte 17
         1010 Wien
         Austria
         Tel: 512 57 76
         Fax: 512 57 76 50
         E-mail: office@fg-layers.at


SEVEN COCKTAILS: Claims Filing Deadline is September 10
-------------------------------------------------------
Creditors of seven cocktails GmbH have until September 10, 2009 to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 10:45 a.m.

For further information, contact the company's administrator:

         Dr. Matthias Schmidt
         Dr. Karl Lueger-Ring 12
         1010 Wien
         Austria
         Tel: 533 16 95
         Fax: 535 56 86
         E-mail: schmidt@preslmayr.at


SH 106: Claims Filing Deadline is September 10
----------------------------------------------
Creditors of SH 106 Kfz GmbH have until September 10, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 11:00 a.m.

For further information, contact the company's administrator:

         Dr. Matthias Klissenbauer
         Gonzagagasse 15
         1010 Wien
         Austria
         Tel: 533 28 55
         Fax: 533 28 55 28
         E-mail: office@klissenbauer.com


SOJAL GMBH: Claims Filing Deadline is September 10
--------------------------------------------------
Creditors of SOJAL GmbH have until September 10, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 10:30 a.m.

For further information, contact the company's administrator:

         Mag. Birgit Linder
         Am Heumarkt 9/I/11
         1030 Wien
         Austria
         Tel: 713 46 51
         Fax: 713 84 35
         E-mail: proksch@eurojuris.at


SSG GMBH: Claims Filing Deadline is September 10
------------------------------------------------
Creditors of SSG GmbH have until September 10, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 24, 2009 at 10:00 a.m.

For further information, contact the company's administrator:

         Dr. Leopold Riess
         Zeltgasse 3/12
         1080 Wien
         Austria
         Tel: 402 57 01
         Fax: 402 57 01 21
         E-mail: law@riess.co.at


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


EVADIX GROUP: Court Grants Creditor Protection to Three Units
-------------------------------------------------------------
John Martens at Bloomberg News reports that the commercial court
in Tourna, Belgium, granted creditor protection to Evadix Group
SA's three unprofitable units, Evadix DMS, Casterman Printing and
Evadix, for six months.

Citing a statement posted on the company's Web site, Bloomberg
says the protection will allow the units to start talks with
creditors and reorganize themselves.

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


===========================
C Z E C H   R E P U B L I C
===========================


PERLA BAVLNARSKE: Halts Production; Dismisses Remaining Staff
-------------------------------------------------------------
CTK, citing daily Mlada fronta Dnes, reports that Czech textile
firm PERLA bavlnarske zavody A.S., which is being overseen by an
insolvency administrator, has halted production and dismissed its
30 remaining employees.

Citing the daily, the report discloses a total of 110 employees
already received notice at end-August.

PERLA bavlnarske zavody A.S. -- http://www.perla.cz-- is
headquartered in Usti nad Orlici, Czech Republic.


SPOLCHEMIA AS: Delays Payment of Loans Totaling CZK2.77 Billion
---------------------------------------------------------------
CTK reports that Spolchemie AS will put up all of its assets as
collateral with a consortium of five banks to defer the payment of
loans totaling CZK2.77 billion.

The report relates outgoing board chairman Martin Prochazka said
this step was necessary to secure the future of the company.

According to the report, for fear of the impact of the global
economic crisis, the banks have started demanding that Spolchemie
pay back the loans.

The report states the agreement with banks is to ensure that the
company will have to pay the loans by the end of 2015.

The report notes management said if Spolchemie did not agree to
pledge its assets, banks might start claiming the money this week
already.

Spolek pro chemickou a hutni vyrobu as --
http://www.spolchemie.cz/-- is a company based in the Czech
Republic that is mainly engaged in the research, development,
production, processing and trading of various chemical and
biochemical products.  The Company manufactures its products in
three product profiles: basic inorganic compounds, including
sodium and potassium hydroxide, chlorine, hydrochloric acid,
sodium hypochlorite; special inorganic compounds, including
hydrofluoric acid, sodium fluoride and potassium permanganate, and
synthetic resins, including basic and modified low, medium and
high molecular epoxide resins, alkyd and polyurethane resins and
lacquer colophony-type resins.  The Company operates through its
subsidiaries, including Synpo as, Epispol as, Spolchemie as,
Metal-Tech Cz as, Spolpharma sro, STZ as, Oleochem as, INFRASPOL
sro and CHS Resins as.


* CZECH REPUBLIC: Construction Sector Bankruptcies Up 49% in 1H09
-----------------------------------------------------------------
CTK, citing daily Lidove noviny, reports that the number of
construction companies going bankrupt in the Czech Republic
increased by 49% year-on-year in the first half of 2009.

The report says 79 building companies ended in bankruptcy this
year compared to 53 last year.  According to the report, the
reason for their bankruptcies was the firms' inability to pay
contractors or a dramatic fall in orders related with the economic
crisis.


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


ALCATEL LUCENT: Moody's Assigns 'B1' Rating on Senior Bonds
-----------------------------------------------------------
Moody's Investors Service has assigned a B1 rating and a loss
given default assessment of LGD3 (47%) to the senior convertible
bonds to be issued by Alcatel Lucent.  The B1 Corporate Family
Rating and all instrument ratings of the Alcatel Lucent group have
been affirmed.  The new, as well as the existing ratings carry a
negative outlook in view of the company's near-term challenges to
business volumes and execution of restructuring aimed at bringing
the company to around a break-even level of adjusted operating
profit in 2009 and towards Moody's expectation of cash generation
in the following year.

Wolfgang Draack, Senior Vice President and lead analyst for
Alcatel Lucent, noted: "The ratings for Alcatel-Lucent reflect (i)
the company's broad product portfolio and installed base of
equipment, positioning it well for the convergence of
communication technologies, (ii) its large cost savings potential,
(iii) solid liquidity position as well as (iv) the pressure on
revenues and pricing caused by the generally subdued investment
behaviour of the telecom carriers in the developed markets, and
(v) the challenges to contain cash consumption from operations to
preserve its liquidity position".

In the second quarter of 2009, Alcatel Lucent has performed
largely within Moody's expectations, by reducing the rate of the
year-over-year sales decline to 4.8% from 6.9% in the previous
quarter, and by narrowing its operating loss before restructuring
charges to EUR62 million -- although consuming about
EUR700 million net cash including working capital requirements.
The cash consumption was mitigated by the EUR1.566 billion
proceeds from the sale of its 20.8% stake in Thales which also
further strengthened the company's financial flexibility.  While
the communication equipment market remains challenging, Moody's
expects Alcatel Lucent to increasingly benefit from its cost- and
cash-saving initiatives, and to gradually stabilize profitability
and cash flow.

Moody's expects the issuance of this convertible bond and use of
proceeds for debt redemptions to extend Alcatel Lucent's maturity
profile, which includes -- in the near term -- the EUR532 million
Lucent Technologies Series A convertible bonds, maturing in 2023,
but with a put option effective June 15, 2010, and the
EUR1.022 billion senior bonds of Alcatel (OCEANE) due January 1,
2011.  The rating agency understands that, contrary to the two
outstanding legacy capital market issues of Alcatel, the new
convertibles will not benefit from subordinated upstream
guarantees by Alcatel Lucent USA, formerly Lucent Technologies.
Moody's views this as a slight disadvantage of the convertibles
compared to the legacy bonds, which, however, does not warrant a
rating or LGD distinction because of the limited added recovery
expected from subordinated claims on Alcatel Lucent USA.

Moody's last rating action for Alcatel Lucent was the downgrade to
B1 and change in rating outlook to negative on February 18, 2009.

Headquartered in Paris, France, Alcatel-Lucent is one of the world
leaders in providing advanced solutions for telecommunications
systems and equipment to service providers, enterprises and
governments.  The company reported sales of EUR7.5 billion in the
first half of fiscal year 2009.


ALCATEL LUCENT: S&P Affirms Corporate Credit Ratings at 'B+/B'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it has affirmed its 'B+/B'
long-term and short-term corporate credit ratings on French
telecommunications equipment supplier Alcatel Lucent.  The outlook
is negative.

At the same time, S&P assigned a 'B+' issue rating to Alcatel
Lucent's senior unsecured convertible bond issue, in line with the
corporate credit rating.  S&P also assigned a recovery rating of
'4' to this bond, reflecting S&P's expectations for average (30%-
50%) recovery in the event of a payment default.

In addition, S&P lowered the recovery rating on Alcatel Lucent's
previously existing senior unsecured debt, rated 'B+', to '4' from
'3.

The 'B+' rating on unsecured debt issued by Alcatel-Lucent USA
Inc. (B+/Negative/--; formerly Lucent Technologies Inc., a
subsidiary of Alcatel Lucent) remains unchanged, as does the '4'
recovery rating on this debt.

"Our affirmation follows Alcatel Lucent's launch of an
EUR870 million convertible bond, which the company said will
contribute to debt refinancing," said Standard & Poor's credit
analyst Patrice Cochelin.  "We expect the new convertible debt
issue to further support Alcatel Lucent's liquidity following
recent asset disposals."

S&P understands final terms are to be set in the coming days.

Still, the size of Alcatel Lucent's upcoming debt maturities, and
its low margins and significant cash burn remain negative credit
factors in S&P's view.

The lowering of the recovery rating on Alcatel Lucent's senior
unsecured debt primarily reflects a shift in the company's debt
structure, which leads us to expect a dilution of the value
available to Alcatel Lucent's senior debtholders in a default
scenario.

At June 30, 2009, Alcatel Lucent reported consolidated gross debt
of EUR4.7 billion, including the equity component of convertible
bonds.

The ratings on Alcatel Lucent remain constrained by S&P's
assessment of: the company's thin operating margins and negative
free cash flow; intense competition in the telecom equipment
sector, which creates ongoing and costly restructuring needs;
expected declining demand for telecom equipment in 2009 that could
trigger further revenue falls and post-restructuring operating
losses for Alcatel Lucent; and the company's relatively sizable
debt maturities through 2011.

The main ratings support stems from S&P's assessment of Alcatel
Lucent's liquidity as adequate, following recent asset disposals
and the new convertible bond.  The company's broad technology
portfolio, client base, and geographic footprint also underpin the
ratings.

Although the ratings incorporate S&P's expectation that low
margins and high restructuring costs will likely result in highly
negative adjusted free cash flow in 2009, Alcatel Lucent's cash
burn in first-half 2009 was larger than anticipated.

"We expect that Alcatel Lucent's cash burn will likely remain high
in 2009," said Mr. Cochelin.  "The negative outlook also
integrates the possibility of a downgrade later this year or early
in 2010 if S&P's expectations for a recovery starting in late 2009
diminish or if Alcatel Lucent's restructuring plan does not
successfully limit strain on the operating margin."

On the upside, with all other factors remaining constant, S&P
could revise the outlook to stable were Alcatel Lucent to
demonstrate that it is able to limit its cash burn while
withstanding the current economic downturn.  Improved access to
consolidated cash balances for the parent company and debt-issuing
entities could also help support rating stability.


ALCATEL-LUCENT: To Raise EUR1 Bil. in Bond Issue to Refinance Debt
------------------------------------------------------------------
The Financial Times reports that Alcatel-Lucent said it plans to
raise up to EUR1 billion (US$1.4 billion) by issuing convertible
bonds to help it refinance its debt.

The FT relates the company, which carries about EUR4 billion in
long-term debt, initially said it would launch a EUR750 million
bond, but raised the amount to EUR870 million following better-
than-expected demand.

"The principal purpose of the offering is to contribute to the
refinancing of the group's debt and the extension of its maturity,
and, secondarily, to further enhance the group's financial
position," the FT quoted Alcatel-Lucent as saying.

According to the FT, the company said the joint lead managers and
bookrunners have an additional option to increase the bond issue
to EUR1 billion by September 8.

                        About Alcatel-Lucent

France-based Alcatel-Lucent (Euronext Paris and NYSE: ALU) --
http://www.alcatel-lucent.com/-- provides product offerings that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  In the field of fixed, mobile and converged broadband
networking, Internet protocol (IP) technologies, applications and
services, the company offers the end-to-end product offerings that
enable communications services for residential, business customers
and customers.  It has operations in more than 130 countries.  It
has three segments: Carrier, Enterprise and Services.  The Carrier
segment is organized into seven business divisions: IP, fixed
access, optics, multicore, applications, code division multiple
access networks and mobile access.  Its Enterprise business
segment provides software, hardware and services that interconnect
networks, people, processes and knowledge.  Its Services business
segment integrates clients' networks.  In October 2008, the
company completed the acquisition of Motive, Inc.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on March 5,
2009, Standard & Poor's Ratings Services lowered to 'B+' from
'BB-' its long-term corporate credit ratings and senior unsecured
ratings on France-based telecom equipment and services supplier
Alcatel Lucent and its subsidiary Alcatel-Lucent USA Inc.
(formerly Lucent Technologies Inc.).  The 'B' short-term rating on
Alcatel Lucent was affirmed.  S&P said the outlook is negative.


BELVEDERE SA: Bondholder Group Turns Down Recovery Plan
-------------------------------------------------------
Steve Rhinds at Bloomberg News reports that a group of investors
representing the main bondholders of Belvedere SA rejected the
company's recovery plan.

According to Bloomberg the group, which represents 60% of
Belvedere's bondholders, said in an e-mailed statement Wednesday
that the company's growth forecasts are highly unrealistic.

Belvedere SA -- http://www.belvedere.fr/-- is a France-based
company engaged in the production and distribution of beverages.
The Company’s range of products includes vodka and spirits, wines,
and other beverages, under such brands as Sobieski, William Peel,
Marie Brizard, Danzka and others.  Belvedere SA operates through
its subsidiaries, including Belvedere Czeska, Belvedere
Scandinavia, Belvedere Baltic, Belvedere Capital Management,
Sobieski SARL and Sobieski USA, among others.  It is present in a
number of countries, such as Poland, Lithuania, Bulgaria, Denmark,
France, Spain, Russia, Ukraine, the United States and others.  In
addition, the Company holds a minority stake in Abbaye de
Talloires, involved in the hotel and wellness centre activities.


PEUGEOT CITROEN: Financing Arm to Sell EUR500 Mil. Bonds
--------------------------------------------------------
Esteban Duarte at Bloomberg News, citing Societe Generale SA,
reports that Banque PSA Finance, the financing arm of PSA Peugeot
Citroen, will sell EUR500 million of bonds due March 2011 at a
yield of 235 basis points more than the benchmark mid-swap rate.

Societe Generale is managing the sale with Royal Bank of Scotland
Group Plc.

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

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Aug. 10,
2009, Standard & Poor's Ratings Services lowered its long- and
short-term corporate credit ratings on Peugeot to 'BB+/B' from
'BBB-/A-3'.  S&P said the outlook is negative.  The ratings were
removed from CreditWatch, where they had been placed with negative
implications on June 25, 2009.  "The downgrade reflects S&P's
expectations that Peugeot's profitability and financial profile
will deteriorate significantly owing to the prolonged weakness in
European auto demand, which S&P now anticipate will persist in
2010 in contrast to S&P's previous assumption of a market recovery
that was a factor in S&P's previous ratings," said Standard &
Poor's credit analyst Barbara Castellano.


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


ARCANDOR AG: Schickedanz Liable to Pay EUR215 Mil. In Loans
-----------------------------------------------------------
Angela Cullen at Bloomberg News reports that Stern magazine,
citing official documents said, Madeleine Schickedanz is liable
for as much as EUR215 million in loans granted by Sal. Oppenheim
Jr. & Cie. to purchase shares in Arcandor AG.

According to Bloomberg, the magazine said the bank can confiscate
at least 11 properties and lots if Ms. Schickedanz fails to repay
the money on time.

On June 18, 2009, the Troubled Company Reporter-Europe, citing Dow
Jones Newswires, reported that Sal. Oppenheim Jr. & Cie. said it
sold its 3.7% stake in Arcandor on the free market.  Dow Jones
disclosed Sal. Oppenheim said it hasn't made a decision yet on the
24.9% stake its industrial holding company holds in the retailer.

                      Insolvency Proceedings

On Sept. 2, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that a local court in Essen formally
opened insolvency proceedings for the German retailer on Tuesday,
Sept. 1.  Bloomberg disclosed the proceedings started for the
Arcandor holding company and for 14 units, including the Karstadt
department-store chain and Primondo mail-order division.

                         About Arcandor AG

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

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


ARCANDOR AG: Board Member Mulls Legal Action Over Dismissal
-----------------------------------------------------------
Karin Matussek at Bloomberg News, citing Handelsblatt, reports
that Arcandor AG board member Stefan Herzberg is considering
carrying out legal action over his dismissal by the company's
insolvency administrator Hubert Goerg.

According to Bloomberg, the newspaper said Mr. Herzberg, who was
responsible for Arcandor's Karstadt unit, argues that in an
insolvency only the supervisory board can remove management board
members.

                      Insolvency Proceedings

On Sept. 2, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that a local court in Essen formally
opened insolvency proceedings for the German retailer on Tuesday,
Sept. 1.  Bloomberg disclosed the proceedings started for the
Arcandor holding company and for 14 units, including the Karstadt
department-store chain and Primondo mail-order division.

                        About Arcandor AG

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

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


ESCADA AG: Five-Member Creditors' Committee Formed in U.S. Case
---------------------------------------------------------------
Pursuant to Section 1102 of the Bankruptcy Code, Diana G. Adams,
the United States Trustee for Region 2, appointed on September 3,
2009, five creditors to serve as members of the Official Committee
of Unsecured Creditors in Escada (USA) Inc.'s Chapter 11 case.

The Committee members are:

   (1) Bayerische Hypo-und Veriensbank
       c/o William H. Schrag
       Duane Morris
       1540 Broadway
       New York, NY 10036
       Tel.: 212-692-1049
       Fax:  212-202-7555

   (2) The Bank of New York Mellon Trust Company, N.A.
       c/o Stephanie Wickouski
       Drinker Biddle & Reath LLP
       140 Broadway - 39th Floor
       New York, NY 10005
       Tel.: 212-248-3170
       Fax:  212-248-3141

   (3) Basil David Postan
       c/o Edward Sassower
       Kirkland & Ellis LLP
       601 Lexington Avenue
       New York, NY 10022
       Tel.: 212-446-4800
       Fax:  212-446-4900

   (4) Century Direct LLC
       c/o Michael Kellogg
       30-00 47th Avenue
       Long Island City, NY 11101
       Tel.: 212-763-0609
       Fax:  718-349-9528

   (5) Specialty Transport Solutions Int'l Inc.
       63 Old Wood Road
       Berlin, CT 06037
       Tel.: 860-829-1629
       Fax:  860-828-7527

Bayerische Hypo-und holds a guaranty claim amounting to
EUR13,000,000 and US$18,400,000, and is one of the largest
creditors in the Debtor's case.  Also constituting the largest
creditors list are Century Direct and Specialty Transport
Solutions which assert debt trade claims against the Debtor
totaling US$25,000.

                          About Escada AG

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

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

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

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

            http://bankrupt.com/misc/sdny09-15008.pdf


GENERAL MOTORS: Germany Rejects RHJ's Improved Offer for Opel Unit
------------------------------------------------------------------
Andreas Cremer and Brian Parkin at Bloomberg News report that the
German government rejected RHJ International SA's improved offer
for General Motors Co.'s Opel unit.

As reported in the Troubled Company Reporter-Europe, Bloomberg
News said RHJ increased its offer for Opel.  Bloomberg disclosed
Arnaud Denis, a spokesman for the Brussels-based investor, said in
an interview Tuesday that under the revised bid, RHJ would
contribute EUR300 million (US$426 million) instead of EUR275
million.  Bloomberg said the offer foresees loan guarantees of
EUR3.2 billion instead of EUR3.8 billion, with repayment planned
by 2013, one year earlier.

According to Bloomberg, the German government said RHJ's improved
offer for Opel is too low and reiterated its preference for
Canadian car-parts maker Magna International Inc.  Bloomberg
relates German Economy Ministry spokesman Steffen Moritz Wednesday
said at a regular news conference in Berlin "The preference for
Magna remains even after reviewing this" new bid.

"Germany isn't going to change its mind on RHJ only because they
improved their numbers a bit," Bloomberg quoted Uwe Andersen, a
politics professor at the University of Bochum, the western German
city where Opel employs about 5,300 workers, as saying.  "Merkel
has misgivings in principle about a financial investor like RHJ,
whether they pull in an industrial partner or not.  She's made her
preference for Magna crystal clear."

                             Options

Katie Merx and Jeff Green at Bloomberg News report that GM's board
is studying options for the money-losing Opel unit.  Citing a
person familiar with the situation, Bloomberg discloses GM
officials presented the board with funding options ranging from
full German government support to no European backing.  According
to Bloomberg, the person said GM has received expressions of
possible financial support from other European governments, which
haven't made any commitments.

Bloomberg notes the person, who asked not to be identified because
the talks are private, said directors should have enough
information to make a decision about the European division at a
meeting scheduled to start Sept. 8 after getting an update on
Aug. 31.

Citing John D. Stoll at The Wall Street Journal reports that GM
anticipates the governments of Britain, Spain and Poland will
provide about EUR1 billion, or roughly US$1.4 billion, in combined
aid to restructure its Opel.

                         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)


IM STOPPING: Voluntary Chapter 15 Case Summary
----------------------------------------------
Chapter 15 Petitioner: IM Stopping Power GmbH

Chapter 15 Debtor: IM Stopping Power GmbH
                   Kaulbachstr, 1, 80539
                   Munich, Germany 91436

Chapter 15 Case No.: 09-21491

Chapter 15 Petition Date: September 1, 2009

Court: Central District of California (San Fernando Valley)

Chapter 15 Petitioner's Counsel: Douglas M. Neistat, Esq.
                                 twilliams@greenbass.com
                                 Greenberg & Bass LLP
                                 16000 Ventura Blvd., #1000
                                 Encino, CA 91436
                                 Tel: (818) 382-6200
                                 Fax: (818) 986-6534

Estimated Assets: US$50,000 to US$100,000

Estimated Debts: US$1 million to US$10 million

The petition is signed by Axel Bierbach, administrator of the
company.


PORSCHE AUTOMOBIL: Faces Frankfurt Probe Into VW Stock Trading
--------------------------------------------------------------
Karin Matussek at Bloomberg News reports that Porsche Automobil
Holding SE is facing a separate probe by Frankfurt prosecutors
into possible violations regarding the trading of Volkswagen AG
shares.

Bloomberg relates Thomas Bechtel, a spokesman for the prosecutor's
office, said Frankfurt prosecutors have asked BaFin, Germany's
financial regulator, to help them in the case.

Bloomberg recalls prosecutors in Stuttgart, the capital of
Porsche's home state of Baden-Wurttemberg, earlier this month
opened a probe against people including Porsche ex-Chief Executive
Officer Wendelin Wiedeking and former Chief Financial Officer
Holger Haerter.  BaFin had asked Stuttgart prosecutors to
investigate allegations of market manipulations and possible
violations of security rules, Bloomberg recounts.

Separately, Bloomberg News reports Porsche spokesman Frank
Scholtys said Tuesday that Stuttgart prosecutors had raided the
home of one more employee at the sports-car maker as part of the
probe.

On Aug. 24, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported German prosecutors raided Porsche in an
investigation of possible violations of securities law and market
manipulation.  Bloomberg disclosed Porsche said in a statement
officials seized documents from the Stuttgart headquarters on
Aug. 20.  According to Bloomberg, Anja Engelland, an agency
spokeswoman, said BaFin, the regulator, handed a complaint to the
prosecutor's office after a probe into Porsche's attempt to gain
control of VW.   "Based on evidence provided by Bafin, we have
opened a preliminary investigation into suspected market
manipulation and unauthorized leaks of insider information,"
Bloomberg quoted Claudia Krauth, a spokeswoman for the
prosecutor's office as saying, declining to name individuals under
investigation.

Bloomberg said Aug. 22 Mr. Wiedeking and Mr. Haerter had their
homes searched during a raid by German prosecutors as part of the
investigation.

                              Merger

On Aug. 17, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported VW will pay about EUR3.3 billion (US$4.7
billion) for a 42% stake in Porsche's automotive unit.  According
to Bloomberg, Volkswagen plans to issue new preferred shares in
the first half of next year to help pay for the purchase, which
values Stuttgart, Germany-based Porsche's car division at EUR12.4
billion.

Bloomberg disclosed Volkswagen Chief Executive Officer Martin
Winterkorn will be CEO of the Porsche SE holding company as of
Sept. 15 and VW's chief financial officer, Hans Dieter Poetsch,
will take the same role at the company.  Volkswagen, whose brands
include the Audi luxury division and the cheaper Seat and Skoda
marques, said the founding Porsche and Piech families will remain
the largest VW shareholders and the German state of Lower Saxony
will be the second-biggest investor.  Porsche said Qatar will buy
a 10% stake and take over most of the company's options for
Volkswagen shares as part of an agreement for the two German
manufacturers to merge.  Qatar Holding LLC will acquire ordinary
shares from the Porsche and Piech families, who own the voting
stock.  According to Bloomberg, Porsche said the Persian Gulf
emirate also agreed to provide EUR265 million (US$376 million) to
participate in a syndicated loan that includes 16 banks.

                             Net Debt

On July 27, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Porsche said its net debt is about
EUR10 billion (US$14 billion).  Porsche's net debt tripled after
the company increased its stake in VW to 50.8% at the beginning of
this year from a 42.6% holding in October.

Headquartered in Stuttgart, Germany, Porsche Automobil Holding SE
-- http://www.porsche-se.com/-- is a holding company engaged in
the car manufacture industry.  The Company's core products are
sports cars and all-terrain vehicles.  The Porsche sports car
range includes the Boxster, the Cayman, the 911 and the Carrera
GT.  The Boxster and the Boxster S are contemporary
reinterpretations of the Company's original roadsters, the 356/1
and the 550 Spyder.  There are several varieties of the 911,
representing the model's continuous evolution.  The Carrera GT has
the race-derived chassis construction and minimum weight.  The
Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo
and Cayenne Turbo S are balanced, four-wheel drive vehicles for
on-road and off-road use.  Porsche Automobil Holding SE also
offers financing services, spare parts and accessories for new and
classic models, as well as an approved used car service.


TREOFAN HOLDINGS: Moody's Changes Default Rating to 'Ca/LD'
-----------------------------------------------------------
Moody's Investors Service has changed the probability of default
rating of Treofan to Ca/LD from Ca.  The rating outlook remains
negative.

The rating action reflects Moody's understanding that Treofan has
failed to make the interest payment on its 11% Second Lien Notes
due 2013 within the 30 day grace period following the August 1,
2009 interest payment date.  Moody's deems a default to have
occurred when an interest payment is not made by the end of a
grace period, regardless of whether an Event of Default has been
declared by noteholders.  The rating action is in line with
Moody's Issuer Comment published on August 4 stating that Moody's
would view a failure to make the August 1st interest payment
within the 30-day grace period as an event of default.

This non-payment is part of the ongoing financial restructuring
process announced on April 30 which led to a downgrade of
Treofan's Probability of Default Rating to Ca from Caa2 in
May 2009 already.

On July 3, 2009, Treofan announced that it will launch a consent
solicitation process to extend the due date for the payment of
interest on the Notes which was due on August 1, 2009, to
October 31, 2009 (unless the restructuring agreement is terminated
before then).

Key elements of the envisaged restructuring include:

  (i) an offer to Second Lien Note holders to tender their notes
      for equity of the Treofan Group

(ii) extending the maturity of the existing EUR80 million senior
      revolving credit facility by one year to July 2011 along
      with a reset of financial covenants

(iii) a capital injection by existing shareholders and noteholders
      to principally finance planned operational and financial
      restructuring measures.

The current Caa2 Corporate Family Rating continues to reflect the
expected recovery rate and probability of default after the
closure of the exchange offer and the new capital structure with
lower leverage, if successfully implemented.  The rating outlook
remains negative in view of (i) the remaining uncertainty
regarding the implementation of the proposed debt for equity
exchange and (ii) in view of the still limited visibility for
Treofan's operating performance.

Adjustment:

Issuer: Treofan Holdings GmbH

  -- Probability of Default Rating, Adjusted to Ca/LD from Ca

The last rating action was implemented on May 7, 2009, when the
Probability of Default rating was downgraded to Ca from Caa2.

Treofan Holdings GmbH, based in Raunheim, Germany, is a
manufacturer of polypropylene film, which is primarily used to
produce flexible packaging as well as labels for food and other
consumer products such as cigarette wrappings and technical
applications such as capacitors.  Since two ownership changes, the
company went through two major restructuring programs, under one
of which Goldman Sachs became majority shareholder.  Treofan
reported EUR488 million of revenues for 2008.


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


INDEPENDENT NEWS: O'Brien Wants EGM to Vote on Fate of Newspapers
-----------------------------------------------------------------
Salamander Davoudi and Anousha Sakoui at The Financial Times
report that Denis O'Brien, the Irish businessman and
second-largest shareholder in Independent News & Media plc, called
for an extraordinary general meeting to vote on the disposal or
closure of The Independent and Independent on Sunday newspapers.

The FT relates INM rejected the demands as the closure of the
newspaper titles would carry guaranteed contractual costs of up to
EUR30 million (GBP26 million).

According to the FT, Mr. O'Brien, who owns a 26% stake in INM and
controls three board seats, also called for a halt to the disposal
of the South African outdoor advertising business.

Mr. O'Brien, the FT discloses, called for annual payments of
EUR300,000 to Sir Anthony O'Reilly in his new role as president
emeritus to be ceased.  He also called for the removal of Brian
Hillery as chairman, the closure of the INM's London office and
detailed board expenses since 2000 to be released, the FT notes.

The FT says to get his resolutions approved, Mr. O'Brien needs the
support of 50% of shareholders who vote at the EGM.

                               Loss

On Sept. 1, 2009, the Troubled Company Reporter-Europe, citing the
FT, reported INM posted a pre-tax loss of EUR48.5 million for the
six months to June 30, compared with a profit of EUR96.6 million a
year earlier.  According to the FT, INM said first-half revenues
fell 22% from EUR780.4 million (GBP686 million) to EUR608.8
million.

                             Standstill

The FT disclosed INM said talks with bondholders remained
"constructive" amid an extended standstill agreement to September
25.  The company's net debt stands at EUR1.3 billion.

As reported in the Troubled Company Reporter-Europe on Aug. 28,
2009, INM said the extension of the standstill period will
facilitate the continuation of ongoing and constructive
discussions between all key stakeholders in relation to the
group's financial restructuring.  The company said it has
sufficient funding in place to meet all working capital
requirements during the standstill period.

                  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.


LIGHTPOINT PAN-EUROPEAN: Moody's Cuts Rating on EUR12M Notes to B2
------------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Lightpoint Pan-European CLO 2007-1 P.L.C

  -- EUR259M Class A Senior Secured Floating Rate Notes due 2026,
     Downgraded to Aa3; previously on Dec 20, 2007 Assigned Aaa

  -- EUR10M Class B Senior Secured Deferrable Floating Rate Notes
     due 2026, Downgraded to Baa3; previously on Mar 4, 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- EUR19M Class C Senior Secured Deferrable Floating Rate Notes
     due 2026, Downgraded to Ba3; previously on Mar 18, 2009
     Downgraded to Baa3 and Remained under Review for Possible
     Downgrade

  -- EUR12M Class D Senior Secured Deferrable Floating Rate Notes
     due 2026, Downgraded to B2; previously on Mar 18, 2009
     Downgraded to B1 and Remained under Review for Possible
     Downgrade

  -- EUR13M Class E Senior Secured Deferrable Floating Rate Notes
     due 2026, Confirmed at Caa3; previously on Mar 18, 2009
     Downgraded to Caa3 and Remained under Review for Possible
     Downgrade

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans.

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

Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates.  As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.

According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2870), an increase in the amount of defaulted
securities (currently 3% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 16% of the portfolio), and a failure of some par value
tests.  These measures were taken from the recent trustee report
dated 23 July 2009.  Moody's also performed a number of
sensitivity analyses, including consideration of a further decline
in portfolio WARF quality.

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


* IRELAND: Corporate Failures Up 136% in First 8 Months of 2009
---------------------------------------------------------------
Niamh Hennessy at Irish Examiner.com, citing the insolvency
journal, reports that the number of firms going out business in
the first eight months of 2009 increased by 136%.

According to the report, there were 985 insolvencies in the first
eight months of this year, up 346% on the same period in 2007.

The report says figures released Tuesday showed that receiverships
increased last month as banks pursue an aggressive push to recoup
outstanding money before loans are transferred to NAMA.  The
number of Irish firms going into examinerships, however, fell by
71% to four in August, compared with 14 in July and the year high
of 15 in April, the report states.

In the services sector the highest number of monthly insolvencies
were recorded to date this year, the report notes.


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


RISANAMENTO SPA: Board, Bank Lenders Approve Restructuring Plan
---------------------------------------------------------------
James Amott at Bloomberg News reports that Risanamento SpA said
its board and creditor banks approved its reorganization plan.

According to Bloomberg, the company said its six- month results
will be approved at a later date.

                         Capital Increase

Jerrold Colten and Armorel Kenna at Bloomberg News report that
Risanamento said in a statement yesterday that its Sept. 2
agreement with creditors includes a plan for the banks to buy up
to EUR150 million in new shares and for them to underwrite
convertible debt expiring in December 2014.

                        Zunino to Liquidate

Separately, Chris Staiti at Bloomberg News reports Zunino
Investimenti SpA, the holding company of former Risanamento
Chairman Luigi Zunino, said it will disband and liquidate as the
property company it controls reorganizes to stave off bankruptcy.

According to Bloomberg, Zunino Investimenti said it supports
Risanamento's restructuring.

Zunino Investimenti and its units control about 73% of the Italian
property developer.

As reported in the Troubled Company Reporter-Europe, Bloomberg
News, citing news agency Ansa, said a deadline for Risanamento to
present its restructuring plan to a Milan court has been extended
to Sept. 9 from Sept. 1.  Risanamento was ordered to come up with
the plan in response to a prosecutor's statement in July that the
real- estate company had failed.

                           Takeover Bid

Andrew Davis at Bloomberg News reports that stock market regulator
Consob said in a statement Risanamento's creditor banks, who are
planning to take control of the company in a planned capital
increase, will be exempt from rules that would force them to make
a full takeover bid.

According to Bloomberg, Consob said in a statement distributed by
the Italian exchange it accepted a petition on behalf of the real
estate company's main shareholders -- Intesa Sanpaolo SpA,
UniCredit SpA, Banco Popolare SC, Banca Popolare di Milano Scarl
and Banca Monte dei Paschi di Siena SpA -- not to have to make a
bid when they cross an ownership threshold through the capital
increase that aims to save the company from bankruptcy.

                      About Risanamento SpA

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


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


AKTOBE SPORT: Creditors Must File Claims by September 11
--------------------------------------------------------
Creditors of LLP Aktobe Sport have until September 11, 2009 to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Satpaev Str. 16
         Aktobe
         Aktube
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
June 15, 2009.


BES TAU: Creditors Must File Claims by September 11
---------------------------------------------------
Creditors of LLP Bes Tau Mys have until September 11, 2009, to
submit proofs of claim to:

         Manas Str. 2
         Room 106
         Astana
         Kazakhstan

The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on June 1, 2009, after
finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Astana
         Abai Ave. 36
         Astana
         Kazakhstan


KAZ STROY: Creditors Must File Claims by September 11
-----------------------------------------------------
LLP Kaz Stroy 5 is currently undergoing liquidation.  Creditors
have until September 11, 2009, to submit proofs of claim to:

         Podvoisky Str. 107
         Shymkent
         South Kazakhstan
         Kazakhstan


KAZ TRANS: Creditors Must File Claims by September 11
-----------------------------------------------------
Creditors of LLP Kaz Trans Him have until September 11, 2009, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Brusilovsky Str. 60
         Petropavlovsk
         North Kazakhstan
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
June 1, 2009.


LINOLIT LLP: Creditors Must File Claims by September 11
-------------------------------------------------------
Creditors of LLP Linolit have until September 11, 2009, to submit
proofs of claim to:

         Myzy Str. 1
         Office 102
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on May 26,
2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Bajov Str. 2
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan


METALLOIZDELIYA LLP: Creditors Must File Claims by September 11
---------------------------------------------------------------
Creditors of LLP Metalloizdeliya have until September 11, 2009, to
submit proofs of claim to:

         Myzy Str. 1
         Office 102
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on June 1,
2009, after finding it insolvent.

The Court is located at:

          The Specialized Inter-Regional
          Economic Court of East Kazakhstan
          Bajov Str. 2
          Ust-Kamenogorsk
          East Kazakhstan
          Kazakhstan


METR STROY: Creditors Must File Claims by September 11
------------------------------------------------------
LLP Metr Stroy is currently undergoing liquidation.  Creditors
have until September 11, 2009, to submit proofs of claim to:

         Abylhair han ave. 67b-116
         Aktobe
         Aktube
         Kazakhstan


NAURYZ LEASING: Creditors Must File Claims by September 11
----------------------------------------------------------
Creditors of LLP Nauryz Leasing have until September 11, 2009, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Baizakov Str. 273b
         Almaty
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
June 15, 2009.


NOVY VEK: Creditors Must File Claims by September 11
----------------------------------------------------
Creditors of LLP Novy Vek have until September 11, 2009, to submit
proofs of claim to:

         Building of Auto Station
         Micro District 28
         Aktau
         Mangistau
         Kazakhstan

The Specialized Inter-Regional Economic Court of Mangistau
commenced bankruptcy proceedings against the company on June 1,
2009 without finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Mangistau
         Building of former Kindergarten 51
         Aktau
         Mangistau
         Kazakhstan


UVELIRNOYE PREDPRIYATIYE: Creditors Must File Claims by Sept. 11
----------------------------------------------------------------
Creditors of LLP Uvelirnoye Predpriyatiye have until September 11,
2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Karaganda
         Alalykin Str. 9
         Karaganda
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
June 1, 2009.


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


DEKA CITY: Court Names B. Aralbaev as Insolvency Manager
--------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues appointed
B. Aralbaev as Insolvency Manager for LLC Advertisement
Information Agency Deka City on June 19, 2009.  He can be reached
at:

         B. Aralbaev
         Moskovskaya Str. 151
         Room 108
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 61-40-74
              (0-555) 50-35-76

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case
No. ED-567/09 M??9.


INDIRA LLC: Court Names R. Jundubaev as Insolvency Manager
----------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues appointed
B. Usekeyev as Insolvency Manager for LLC Indira on August 5,
2009.  He can be reached at:

         Kulatov Str. 3
         Bishkek
         Kyrgyzstan
         Tel: (0-772) 28-78-36

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
ED-756/09M??4.


PLUTON SERVICE: Court Names B. Aralbaev as Insolvency Manager
-------------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues appointed
B. Aralbaev as Insolvency Manager for LLC Pluton Service on
April 7, 2009.  He can be reached at:

         B. Aralbaev
         Moskovskaya Str. 151
         Room 108
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 61-40-74
              (0-555) 50-35-76

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case
No. ED-166/06 M??5.


RESOURCE STROY: Court Names A. Mamytova as Insolvency Manager
-------------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues appointed
A. Mamytova as Insolvency Manager for LLC Resource Stroy on
July 16, 2009.  She can be reached at:

         Moskovskaya Str. 151
         Room 108
         Bishkek
         Kyrgyzstan
         Tel: (0-555) 74-58-18

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
ED-691/09M??8.


TECH SYSTEM: Court Names B. Usekeyev as Insolvency Manager
----------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues appointed
B. Usekeyev as Insolvency Manager for LLC Tech System on July 20,
2009.  He can be reached at:

         Moskovskaya Str. 151
         Room 108
         Bishkek
         Kyrgyzstan
         Tel: (0-555) 49-44-72

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
ED-742/09M??5.


===================
L U X E M B O U R G
===================


EVRAZ GROUP: To Discuss Covenant Changes with Banks
---------------------------------------------------
Ilya Khrennikov and Yuriy Humber at Bloomberg News report that
Evraz Group SA plans to discuss covenant changes with banks,
including Deutsche Bank AG and Societe Generale SA, as as a slump
in its earnings threatens to breach the agreements.

Bloomberg relates Chief Financial Officer Giacomo Baizini said
Wednesday in an interview in Moscow that the the company will also
seek to extend overall debt maturity and may sell ruble bonds to
refinance short-term debt.

Mr. Baizi, as cited by Bloomberg, said one covenant at risk this
year requires Evraz to prevent net debt exceeding earnings before
interest, taxes, depreciation and amortization by more than three
times.  Bloomberg discloses the company now has net debt of about
US$7.5 billion, while first-half Ebitda totaled US$468 million.

                           Loan Extension

According to Bloomberg, Evraz said Tuesday it was in talks to
extend a loan of RUR10 billion (US$315 million) with state-run VTB
Group by four years and close to signing a one-year year extension
on US$1.8 billion in financing from VEB bank.

Headquartered in Luxembourg, Evraz Group SA --
http://www.evraz.com/-- is a vertically integrated steel and
mining businesses with operations based in the Russian Federation,
the United States, Canada, Ukraine, Czech Republic, Italy and
South Africa.  Evraz's business is divided into three segments:
steel production segment, comprising the production and sale of
semi-finished and finished steel products, coke and coking
products, and refractory products; the mining segment, comprising
the production, enrichment and sale of iron ore and coal, and the
vanadium segment, comprising the production and sale of vanadium
products.  Other operations include management, logistics and
supporting activities.  During the year ended December 31, 2008,
Evraz produced 17.7 million tonnes of crude steel.  Evraz's assets
comprise of nine steel plants, five iron ore mining and processing
facilities and coal mining assets.  During 2008, Evraz acquired
Claymont Steel Holdings, In.c., General Scrap Inc and Palmrose
Limited.


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


PKN ORLEN: Fitch Puts 'BB+' Issuer Rating on Negative Watch
-----------------------------------------------------------
Fitch Ratings has placed Polski Koncern Naftowy ORLEN S.A.'s Long-
term foreign and local currency Issuer Default Ratings of 'BB+'
and the company's foreign and local currency senior unsecured
ratings of 'BB+' on Rating Watch Negative.  Fitch has affirmed the
Polish oil refining and marketing company's Short-term foreign and
local currency IDRs at 'B'.

The rating action reflects the agency's projections of weak EBITDA
and funds from operations (FFO) of PKN for 2009 and 2010 due to
the depressed refining environment, which is the company's main
business segment.  The weakened EBITDA outlook will likely result
in a substantial erosion of PKN's credit metrics in 2009 and 2010,
compared with 2008, and potentially delay the company's de-
leveraging plan as its continues an ambitious capex programme of
PLN12.6 billion for 2009-2013.  Fitch notes that management
reduced capex planned for 2009 compared to the original strategic
plan amid challenging market conditions.  PKN's net debt/last
twelve months EBITDA, excluding non-recurring inventory holding
gains/losses, deteriorated to 3.5x at end-June 2009 from 2.5x at
end-2008.  Fitch anticipates that this ratio will deteriorate
further in H209.

The agency believes it will be challenging for PKN to meet the
financial covenant included in its main funding facilities at end-
December 2009, defined as the net debt/EBITDA ratio of 3.5x, due
to lower EBITDA caused by the cyclical downturn affecting its
refining and petrochemicals businesses.  PKN's actual leverage
ratio based on EBITDA, including inventory gains/losses,
calculated in line with its loan agreements is dependent on a
number of external factors, including refining margins, the Brent
to Ural oil price differential, oil price and foreign currency
fluctuations.

Fitch expects to resolve the RWN in the next few months depending
on the company's cash flow generation, PKN's progress in non-core
asset disposals, in particular the Polkomtel stake, and changes to
regulations currently planned by the government that would reduce
PKN's working capital needs for compulsory stock.  Fitch regards
PKN's financial burden, related to the funding of a compulsory
stock of crude oil and petroleum products, as considerably higher
than other European companies with refining operations rated by
the agency.

Fitch notes that PKN had solid liquidity at end-June 2009 with
short-term debt of PLN1.9 billion covered with cash of
PLN1.1 billion, and unused committed bank facilities of more than
EUR1 billion (PLN4.5 billion) due in 2012.


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


ALANIYA OJSC: Creditors Must File Claims by September 10
--------------------------------------------------------
Creditors of OJSC Alaniya (TIN 1501006171, PSRN 1021500942605)
(Airlines) have until September 10, 2009, to submit proofs of
claims to:

         V. Kryuchkov
         Insolvency Manager
         Post User Box 140
         Office 1
         Pushkina Str. 7a
         Kumertau
         453300 Bashkortostan
         Russia

The Arbitration Court of North Ossetia Alania commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?61–1768/08–5.

The Debtor can be reached at:

         OJSC Alaniya
         Vladikavkaz Airport
         Beslan
         Pravoberezhny
         363028 North Ossetia
         Russia


AVTOVAZ OAO: Board Appoints Igor Komarov as New President
---------------------------------------------------------
RIA Novosti reports that the board of directors of OAO AvtoVAZ has
appointed Igor Komarov as the company's new president, replacing
Boris Alyoshin.

Mr. Alyoshin announced his decision to resign from the post
Tuesday last week.

According to the report, Mr. Komarov, 45, previously worked as
deputy director general at state-run Russian Technology
Corporation from October 2008 before being appointed as AvtoVAZ
deputy CEO in May 2009.

On Aug. 27, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Russian Technologies will
consolidate its stakes in carmakers AvtoVAZ and OAO KamAZ and
enginemaker OAO Avtodizel in a subsidiary called Rosavto.
Citing Kommersant, Bloomberg disclosed Rosavto will own 38% of
KamAZ, 25% of AvtoVAZ and 30% of Avtodizel.

                          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% in the year to May, the FT noted.

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.


EVRAZ GROUP: To Discuss Covenant Changes with Banks
---------------------------------------------------
Ilya Khrennikov and Yuriy Humber at Bloomberg News report that
Evraz Group SA plans to discuss covenant changes with banks,
including Deutsche Bank AG and Societe Generale SA, as as a slump
in its earnings threatens to breach the agreements.

Bloomberg relates Chief Financial Officer Giacomo Baizini said
Wednesday in an interview in Moscow that the the company will also
seek to extend overall debt maturity and may sell ruble bonds to
refinance short-term debt.

Mr. Baizi, as cited by Bloomberg, said one covenant at risk this
year requires Evraz to prevent net debt exceeding earnings before
interest, taxes, depreciation and amortization by more than three
times.  Bloomberg discloses the company now has net debt of about
US$7.5 billion, while first-half Ebitda totaled US$468 million.

                           Loan Extension

According to Bloomberg, Evraz said Tuesday it was in talks to
extend a loan of RUR10 billion (US$315 million) with state-run VTB
Group by four years and close to signing a one-year year extension
on US$1.8 billion in financing from VEB bank.

Headquartered in Luxembourg, Evraz Group SA --
http://www.evraz.com/-- is a vertically integrated steel and
mining businesses with operations based in the Russian Federation,
the United States, Canada, Ukraine, Czech Republic, Italy and
South Africa.  Evraz's business is divided into three segments:
steel production segment, comprising the production and sale of
semi-finished and finished steel products, coke and coking
products, and refractory products; the mining segment, comprising
the production, enrichment and sale of iron ore and coal, and the
vanadium segment, comprising the production and sale of vanadium
products.  Other operations include management, logistics and
supporting activities.  During the year ended December 31, 2008,
Evraz produced 17.7 million tonnes of crude steel.  Evraz's assets
comprise of nine steel plants, five iron ore mining and processing
facilities and coal mining assets.  During 2008, Evraz acquired
Claymont Steel Holdings, In.c., General Scrap Inc and Palmrose
Limited.


FINANCE LEASING: Moody's Withdraws 'Caa3' Issuer Ratings
--------------------------------------------------------
Moody's Investors Service and Moody's Interfax announced that they
would withdraw all ratings of Russia's Finance Leasing Company for
business reasons.  FLC's long-term Caa3 issuer and debt ratings
and Caa2.ru National Scale rating had been on review with
direction uncertain prior to the rating withdrawal.  Moscow-based
Moody's Interfax is majority-owned by Moody's, a leading global
rating agency.

Moody's and Moody's Interfax's withdrawal of all the
aforementioned ratings of FLC for business reasons follows the
company's official request and is due to lack of relevant
information.  Please refer to Moody's Withdrawal Policy on
moodys.com.

Moody's commented that it was not able to conclude its rating
review due to lack of relevant information requested from the
issuer.  Moody's rated FLC's loan participation notes remain
outstanding in the amount of US$150 million and as of the date of
this Press Release the company remains in default on these
liabilities.  The rating review of the long-term Caa3 issuer and
debt ratings and Caa2.ru National Scale rating was initiated in
January 2009 when the ratings had been downgraded and had remained
on review with direction uncertain.  Moody's believes that it is
not in a position to adequately estimate the current financial
position of the company, and/or the expected recovery on the loan
participation notes.

Moody's notes that it will no longer maintain rating coverage or
publish research on these loan participation notes and/or the
issuer ratings for FLC due to the lack of information.

Moody's most recent rating action on FLC was taken on January 20,
2009, when the rating agency downgraded the company's issuer and
debt ratings to Caa3 from Ba3 and placed FLC's rating on review
with a direction uncertain.

Headquartered in Moscow, Russia, Finance Leasing Company -- till
the default on its public debts in December 2008 -- was one of the
largest specialised aircraft leasing companies in Russia, with a
lease portfolio of 14 Russian civil aircraft.  The controlling
51.8% stake is owned by United Aircraft Corporation, the Russian
state-owned aircraft holding company, while the Russian Government
directly holds a 28.7% stake in the company.


GLAS FIBER: Under External Management Bankruptcy Procedure
----------------------------------------------------------
The Arbitration Court of Dagestan has commenced external
management bankruptcy procedure on OJSC Glass Fiber Plant.  The
Case is docketed under No. ?15–1937/08.

The External Insolvency Manager is:

         S. Magomedov
         Askerkhanova Str. 3
         Makhachkala
         Russia

The Debtor can be reached at:

         OJSC Glass Fiber Plant
         Beybulatova Str. 27
         Makhachkala
         Russia


ISTRA-LES LLC: Court Appoints Temporary Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Moskovskaya appointed M. Golov as
Temporary Insolvency Manager for CJSC Istra-Les (Lumbering).  The
case is docketed under Case No. ?41–2024/08.  He can be reached
at:

         Apt. 94
         Tokmakov pereulok 13-15
         105066 Moscow
         Russia

The Debtor can be reached at:

         CJSC Istra-Les
         Lesnaya Str. 1
         Istra
         143590 Moskovskaya
         Russia


NUR-STROY LLC: Court Appoints Temporary Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Moscow appointed V. Shirokov as Temporary
Insolvency Manager for LLC Nur-Stroy-Group (TIN 7703600117, PSRN
1067746811208) (Construction).  The case is docketed under Case
No. ?40–24953/09–73-55B.  He can be reached at:

         Post User Box 153
         1225047 Moscow
         Russia

The Debtor can be reached at:

         LLC Nur-Stroy-Group
         Prospect Akademika Sakharova 10
         107996 Moscow
         Russia


PERVOMAYSKIY LLC: Creditors Must File Claims by September 10
------------------------------------------------------------
Creditors of LLC Pervomayskiy (TIN 2101004598, PSRN1052131005761)
(Timber Mill)have until September 10, 2009, to submit proofs of
claims to:

         A. Smyshlyaev
         Insolvency Manager
         Post User Box 15
         424005 Ioshkar-Ola
         Russia

The Arbitration Court of Chuvashia commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?79–5586/2009.

The Debtor can be reached at:

         LLC Pervomayskiy
         Lenina Str. 43
         Pervomayskiy
         Alatyrskiy
         429806 Chuvashia
         Russia


STROY-NEFTE-GAZ: Creditors Must File Claims by September 10
-----------------------------------------------------------
Creditors of LLC Stroy-Nefte-Gaz-SMP-9 (Construction) have until
September 10, 2009, to submit proofs of claims to:

         A. Yelshin
         Insolvency Manager
         Apt. 230
         Severnaya Str. 279
         350020 Krasnodar
         Russia

The Arbitration Court of Rostovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?53–24738/08.

The Debtor can be reached at:

         LLC Stroy-Nefte-Gaz-SMP-9
         Office 635
         M. Nagibina prospect 14a
         344038 Rostov-on-Don
         Russia


STROY-SERVIS LLC: Creditors Must File Claims by September 10
------------------------------------------------------------
Creditors of LLC Stroy-Servis (TIN 5071710802) (Construction) have
until September 10, 2009, to submit proofs of claims to:

         T. Geft
         Insolvency Manager
         Post User Box 13263
         454091 Chelyabinsk
         Russia

The Arbitration Court of Moskovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?-41–6140/08.

The Debtor can be reached at:

         LLC Stroy-Servis
         Tolstova Str. 10
         Lukhovtsy
         140501 Moskovskaya
         Russia


TMK OAO: S&P Affirms 'B' Rating on Bonds Issued by TMK Capital
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'B' ratings on the bonds issued by TMK Capital S.A., and
guaranteed by Russia-based steel pipe producer OAO TMK
(B/Negative/--).  The ratings were removed from CreditWatch where
they had been placed with negative implications on July 8, 2009.

The 'B' issue ratings on the US$300 million bond due 2009 and
US$187 million (previously US$600 million) bond due 2011 are in
line with the corporate credit rating on the guarantor, TMK.  The
recovery rating on this debt remains unchanged at '4', indicating
Standard & Poor's expectation of average (30%-50%) recovery in the
event of a payment default.  The removal of the ratings from
CreditWatch reflects the recent completion of the group's tender
offer and approval of amendments following a bond consent
solicitation.

As a result of changes agreed as part of a recent bond consent
solicitation, S&P sees potential for negative impact on recovery
prospects for the unsecured bonds in the event that the group
seeks to use the headroom provided to raise additional secured
debt.  S&P believes that the material headroom under this covenant
could, in S&P's view, lead to increasing subordination of the
outstanding bonds and lower recovery prospects.

                        Recovery Analysis

Recovery prospects are based on S&P's valuation of the business as
a going concern and S&P's stressed enterprise valuation of about
US$2.6 billion, based on a 4x multiple of EBITDA under S&P's
hypothetical default scenario.  Recovery is also underpinned by
the group's extensive asset base.

From S&P's stressed enterprise valuation of around US$2.6 billion,
S&P deduct priority liabilities comprising enforcement costs and
secured debt claims.  S&P currently assumes up to US$600 million
of prior-ranking secured debt in S&P's payment waterfall; however,
S&P expects this amount to increase materially in the short to
medium term.  For the purposes of S&P's recovery assessment, S&P
has assumed that all other debt facilities raised at parent or
subsidiary level rank pari passu.

After deducting priority obligations S&P sees recovery prospects
in the 30%-50% range.  Based on the current capital structure and
debt levels, recovery prospects could be higher than the indicated
range.  However, S&P expects recovery prospects to move into this
range if the group's capital structure evolves with a greater
emphasis on secured debt issuance in the near term, hence S&P is
maintaining the recovery rating at the current level.


TOMSK ELECTRIC: Under External Management Bankruptcy Procedure
--------------------------------------------------------------
The Arbitration Court of Tomskaya has commenced external
management bankruptcy procedure on OJSC Tomsk Electric-Bulb Plant
(TIN 7017012504, PSRN 1027000861172.  The Case is docketed under
No. ?-67–2236/08.

The External Insolvency Manager is:

         Yu. Ponomarev
         Prospect Kirova 5
         634034 Tomsk
         Russia

The Debtor can be reached at:

         OJSC Tomsk Electric-Bulb Plant
         Prospect Kirova 5
         634034 Tomsk
         Russia


TUMEN-ENERGO OJSC: Creditors Must File Claims by September 10
-------------------------------------------------------------
Creditors of OJSC Tumen-Energo-Bank (TIN 7203000880, Registration
No. 2419) have until September 10, 2009, to submit proofs of
claims to:

         Investment Insurance Bank
         Acting Insolvency Manager
         Respubliki Str. 145
         625026 Tumen
         Russia
         Tel: 8(3452)20-03-00

The Arbitration Court of Tumenskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?70–8795/3–2008.

The Debtor can be reached at:

         OJSC Tumen-Energo-Bank
         Respubliki Str. 145
         625026 Tumen
         Russia


ULYANOVSK HEAVY: Court Names L.Lazarenko as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Ulyanovskaya appointed L.Lazarenko as
Insolvency Manager for OJSC Ulyanovsk Heavy and Unique Machine
Plant.  The case is docketed under Case No. A72–346/09–20/1B.  He
can be reached at:

         Aviatsionnaya Str. 5
         302010 Orel
         Russia

The Debtor can be reached at:

         OJSC Ulyanovsk Heavy and Unique Machine Plant
         Gerasimova Str. 10
         432042 Ulyanovsk
         Russia


* KEMEROVO REGION: Fitch Affirms Currency Ratings at 'BB-
---------------------------------------------------------
Fitch Ratings has affirmed the Kemerovo region in Russia's Long-
term foreign and local currency ratings at 'BB-' and the National
Long-term rating at 'A+(rus)' and changed the outlooks on these
ratings to Negative from Stable.  The Outlooks are revised as
Fitch expects the region's budget performance to deteriorate on
declining operating revenues in 2009.  The agency also affirmed
the Short-term foreign currency rating at 'B'.

All ratings are withdrawn and Fitch will no longer provide rating
or analytical coverage of this issuer.


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


SKYEUROPE AIRLINES: Letiste in Talks with CSA to Cover Services
---------------------------------------------------------------
Lenka Ponikelska at Bloomberg News reports that Letiste Praha AS,
the operator of Prague's main airport, said it's in talks with
Ceske Aerolinie AS, or CSA, to cover some of the services of
SkyEurope Airlines AS and increase the frequency of some routes
operated by the bankrupt airline.

Citing Jiri Pos, Letiste's senior executive director, Bloomberg
says SkyEurope, which filed for bankruptcy on Monday, represented
about 1.1 million customers at the airport each year.

As reported in The Troubled Company Reporter-Europe, Reuters,
citing the Vienna bourse Web site, disclosed the Slovak
court-appointed restructuring trustee of SkyEurope Airlines
commenced bankruptcy proceedings for the carrier, the operating
subsidiary of SkyEurope Holding AG, due to the lack of sufficient
interim funding to finance ongoing operations.

On June 24, 2009, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that SkyEurope said it had been granted
protection from its creditors by the district court in Bratislava.
The FT disclosed the low-cost airline was forced to seek court-
administered protection from its creditors following several years
of heavy losses.

SkyEurope Airlines -- http://www.skyeurope.com/-- was a low-cost
airline headquartered in Bratislava.  The airline operated short-
haul scheduled and charter passenger services.


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


AYT FTPYME II: Moody's Cuts Rating on Series F3 Notes to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has downgraded the long-term credit
ratings of these notes issued by AyT FTPYME II, FTA:

  -- EUR34 million series F3 notes due 2032, downgraded to Ba3
     from  Baa3.  This rating action concludes the review for
     possible downgrade initiated on 23 March 2009.

Moody's initially assigned definitive ratings in December 2004.

The rating action concludes the rating review resulting from
Moody's revision of its methodology for granular SME portfolios in
Europe, the Middle East and Africa.  This revised methodology was
introduced on March 17, 2009, and the affected transactions were
subsequently placed on review for possible downgrade on March 23,
2009.

As a result of its revised methodology, Moody's has reviewed its
assumptions for AyT FTPYME II's collateral portfolio, taking into
account anticipation of performance deterioration in the current
down cycle and, the exposure of the transaction to the real estate
sector (either through security in the form of a mortgage or
debtors operating in the real estate sector).  The deterioration
of the Spanish economy has been reflected in the Moody's negative
sector outlook Moody's published on the Spanish SME securitization
transactions ("EMEA ABS, CMBS & RMBS Asset Performance Outlooks",
July 2009).  To date, this transaction has been performing better
than the Spanish SME index published by Moody's ("Spanish SME Q2
2009 Indices", September 2009).

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the low Ba-range for the non-real-estate debtors.
At the same time, Moody's estimated the remaining weighted average
life of the portfolio to equal 5.6 years.  As a consequence, these
revised assumptions have translated into an increase of the
cumulative mean default assumption for this transaction to 13.0%
of the current portfolio balance.  Moody's original mean default
assumption was 4.8% (as a percentage of original balance), with a
coefficient of variation of 40%.  Given the relatively low
effective number of borrowers in the portfolio (578), the rating
agency used a Monte-Carlo simulation to determine the probability
function of the defaults, with a resulting coefficient of
variation of 38%.  The recovery rate assumption is now 40% while
values in the 33% to 43% range were tested at closing.  The
revised constant prepayment rate assumption is now 5%, which is
comparable to values observed throughout the last reporting
periods, while the CPR assumption was 15% at closing.

In summary, Moody's concluded that the negative effects of the
revised default and recovery assumptions were not fully offset by
the increased credit support available for the outstanding series
F3 notes and the limited reduction in the remaining life of the
portfolio and notes.

AyT FTPYME II is a securitisation fund, which purchased a pool of
loans granted by Caja de Ahorros y Monte de Piedad de Madrid, Caja
de Ahorros de Vitoria y Alava, Caixa d'Estalvis de Terrassa, Caja
de Ahorros y Monte de Piedad de Navarra, Monte de Piedad Caja
Ahorros Huelva, Jerez y Sevilla, and Caja de Ahorros de Granada to
Spanish SMEs.  At closing, in December 2004, the portfolio
consisted of 6,132 loans.  The loans were originated between 1993
and 2004, with a weighted average seasoning of 2.8 years and a
weighted average remaining term of 11.5 years.  Geographically,
the pool was concentrated in Madrid (28%), Andalucia (27%) and
Navarra (9.0%).  At closing, the concentration in the real estate
sector was 14% of the original pool balance.

As of July 2009, the number of loans in the portfolio amounted to
2,021 and the weighted average remaining term was 10 years.  The
concentration levels per industry and regions are similar to their
levels at closing with around a 15% exposure in the building and
real estate sector, which is lower than the average concentration
in this sector in the SME ABS portfolios.  The pool factor was
32%.

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


SANTANDER CONSUMER: Fitch Cuts Rating on Class E Notes to 'CC'
--------------------------------------------------------------
Fitch Ratings has downgraded the auto-loan receivables-backed
notes issued under the Santander Consumer Spain Auto 06
transaction, removing them from the Rating Watch Negative assigned
on August 27, 2009.  Classes A to C of the notes are also placed
on Negative Outlook.

The rating actions are:

  -- Class A EUR656 million notes: downgraded to 'AA+' from 'AAA';
     removed from RWN, and placed on Outlook Negative; Loss
     Severity-1 (LS-1)

  -- Class B EUR22.3 million notes: downgraded to 'A' from 'AA';
     removed from RWN and placed on Outlook Negative; LS-3

  -- Class C EUR22.3 million notes: downgraded to 'BBB' from 'A';
     removed from RWN, and placed on Outlook Negative; LS-3

  -- Class D EUR22.9 million notes: downgraded to 'CCC' from
     'BBB'; removed from RWN and assigned RR4

  -- Class E EUR10.2 million notes: downgraded to 'CC' from 'CCC';
     removed from RWN and assigned RR5

The rating actions follow a review of the transaction, focusing on
both the performance of the underlying receivables, as well as a
forecast of the continued impact of factors such as the economic
situation in Spain and the type of receivables securitized on both
the expected levels of protection available to the notes, and the
levels of losses which could be absorbed by Santander 06, whilst
also taking into account the expected amortization of the notes.

Both delinquencies and defaults have continued to increase over
the last 12 months, with the Fitch Delinquency Ratio rising to
5.1% in July 2009 (from 1.6% in July 2008) and the Fitch
Cumulative Net Default Ratio moving slightly above its 1% base
case, at 1.03% for the same period.

The agency also notes that Santander 06 reported a draw on its
Reserve Fund for the first time in July 2009 (of EUR689,974).  The
Reserve Fund provides enhancement to all the classes of notes
under the transaction.  Given the performance of the transaction
to date and the current economic environment in Spain, Fitch
believes that there is a strong likelihood that further reserve
fund draws will occur in the coming quarters, with the expected
loss levels potentially leading to some losses being allocated to
some of the more junior notes in the future.

Given the current challenging outlook for consumer ABS
transactions in Spain, Fitch expects this auto-loan receivables-
backed transaction to continue to be heavily affected by the
deterioration in the Spanish economy, given it has significant
exposure to some of Spain's worst-hit regions in terms of
unemployment levels (Andalucia and the Canary Islands).  Fitch
also expects a large increase in defaults from the transaction's
delinquency pipeline in the medium to long term, which will
ultimately affect the amount of enhancement protection available
to all the rated classes of notes.


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


AL + DE BAUCONSULTING: Claims Filing Deadline is September 21
-------------------------------------------------------------
Creditors of AL + DE Bauconsulting GmbH are requested to file
their proofs of claim by September 21, 2009, to:

         Archidraft Trading - Scherrer Ruth
         Bahnhofplatz 10
         8853 Lachen
         Switzerland

The company is currently undergoing liquidation in Lachen.  The
decision about liquidation was accepted at a shareholders' meeting
on June 5, 2009.


NICK LOCHER: Claims Filing Deadline is September 24
---------------------------------------------------
Creditors of Nick Locher GmbH are requested to file their proofs
of claim by September 24, 2009, to:

         KSP Treuhand GmbH
         Katharina Sulzer Platz 4
         8400 Winterthur
         Switzerland

The company is currently undergoing liquidation in Winterthur.
The decision about liquidation was accepted at a shareholders'
meeting held on April 28, 2009.


PATTERNE QUINZE: Claims Filing Deadline is September 21
-------------------------------------------------------
Creditors of Patterne Quinze AG are requested to file their proofs
of claim by September 21, 2009, to:

         P. Friedli und Partner
         Seestrasse 18
         8702 Zollikon
         Switzerland

The company is currently undergoing liquidation in Zollikon.  The
decision about liquidation was accepted at a general meeting held
on October 3, 2003.


PRIMECALC GMBH: Claims Filing Deadline is September 22
------------------------------------------------------
Creditors of PrimeCalc GmbH are requested to file their proofs of
claim by September 22, 2009, to:

         PrimeCalc GmbH
         Untere Parkstrasse 9
         5212 Hausen AG
         Switzerland

The company is currently undergoing liquidation in Hausen AG.  The
decision about liquidation was accepted at a shareholders' meeting
on May 14, 2009.


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


* ERZURUM MUNICIPALITY: Fitch Affirms 'B+' Currency Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed the Turkish Metropolitan Municipality
of Erzurum's Long-term foreign and local currency ratings at 'B+',
respectively, with Stable Outlooks.  Fitch has affirmed the
municipality's National Long-term rating at 'A-(tur)' with a
Stable Outlook.  The agency has simultaneously withdrawn the
ratings.

Fitch will no longer provide ratings or analytical coverage of the
Metropolitan Municipality of Erzurum.


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


AGROSVIT-XXI LLC: Creditors Must File Claims by September 9
-----------------------------------------------------------
Creditors of LLC Agrosvit-XXI (code EDRPOU 35828815) have until
September 9, 2009, to submit proofs of claim to S. Polianichko,
the company's insolvency manager.

The Economic Court of Odessa commenced bankruptcy proceedings
against the company on July 2, 2009.  The case is docketed under
Case No. 7/169-09-3224.

The Court is located at:

         The Economic Court of Odessa
         Shevchenko Ave. 29
         65032 Odessa
         Ukraine

The Debtor can be reached at:

         LLC Agrosvit-XXI
         Katerininskaya Str. 27
         Odessa
         Ukraine


AROMATNY AGRICULTURAL: Creditors Must File Claims by September 9
----------------------------------------------------------------
Creditors of Agricultural LLC Aromatny (code EDRPOU 00388091) have
until September 9, 2009, to submit proofs of claim to:

         S. Meteleva
         Insolvency Manager
         Vishnevaya Str. 60
         Simferopol
         AR Krym
         Ukraine

The Economic Court of AR Krym commenced bankruptcy proceedings
against the company.  The case is docketed under Case No 2-
17/3732-2009.

The Court is located at:

         The Economic Court of AR Krym
         R. Luxembourg Str. 29/Rechnaya Str. 11
         95000 Simferopol
         AR Krym
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Aromatny
         Lenin Str. 1
         Golubinka
         98474 Bakhchisaray
         AR Krym
         Ukraine


ARTOL-AGRO LLC: Creditors Must File Claims by September 9
---------------------------------------------------------
Creditors of LLC Artol-Agro (code EDRPOU 33797864) have until
September 9, 2009, to submit proofs of claim to M. Tsurika, the
company's insolvency manager.

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on July 28, 2009.  The case is docketed under
Case No. 5/191/09.

The Court is located at:

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

The Debtor can be reached at:

         LLC Artol-Agro
         8th of March Str. 14-A
         54029 Nikolayev
         Ukraine


AVTOSHKOLA LLC: Creditors Must File Claims by September 6
---------------------------------------------------------
Creditors of State Enterprise LLC Avtoshkola (code EDRPOU
31123689) have until September 6, 2009, to submit proofs of claim
to:

         V. Vernigora
         Insolvency Manager
         Sivolap Str. 44/2
         Krivoy Rog
         50000 Dnepropetrovsk
         Ukraine

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company on July 23, 2009.  The case is
docketed under Case No. B24/206-09.

The Court is located at:

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

The Debtor can be reached at:

         State Enterprise LLC Avtoshkola
         Butlerov Lane 10
         Krivoy Rog
         50053 Dnepropetrovsk
         Ukraine


DANKO LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------
The Economic Court of Donetsk commenced bankruptcy supervision
procedure on LLC Agrarian Enterprise Danko (code EDRPOU 32362833).

The Insolvency Manager is:

         D. Godovichenko
         Office 22
         Kuybishev Str. 194
         83060 Donetsk
         Ukraine

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Agrarian Enterprise Danko
         Sovetskaya Str. 51
         Volnovakha
         85700 Donetsk
         Ukraine


EMONT CJSC: Creditors Must File Claims by September 9
----------------------------------------------------
Creditors of CJSC Emont (code EDRPOU 01412779) have until
September 9, 2009, to submit proofs of claim to:

         O. Gaydarenko
         Insolvency Manager
         Glisernaya Str. 8
         69063 Zaporozhye
         Ukraine

The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company on July 30, 2009.  The case is docketed under
Case No. 26/60/09.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Emont
         Glisernaya Str. 8
         69063 Zaporozhye
         Ukraine


ERFOLG LLC: Creditors Must File Claims by September 6
----------------------------------------------------
Creditors of LLC Erfolg (code EDRPOU 31735883) have until
September 6, 2009, to submit proofs of claim to:

         E. Marchenko
         Insolvency Manager
         Post Office Box 3495
         Krivoy Rog
         50069 Dnepropetrovsk
         Ukraine

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company on July 14, 2009.  The case is
docketed under Case No. B29/229-09.

The Court is located at:

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

The Debtor can be reached at:

         LLC Erfolg
         Dimitrov Str. 35/54
         Krivoy Rog
         50065 Dnepropetrovsk
         Ukraine


FRANK-AGRO LLC: Creditors Must File Claims by September 9
---------------------------------------------------------
Creditors of LLC Frank-Agro (code EDRPOU 35938694) have until
September 9, 2009, to submit proofs of claim to M. Tsurika, the
company's insolvency manager.

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on July 28, 2009.  The case is docketed under
Case No. 5/190/09.

The Court is located at:

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

The Debtor can be reached at:

         LLC Frank-Agro
         Veselinovskaya Str. 53
         54036 Nikolayev
         Ukraine


GARANTIS-SOUTH LLC: Creditors Must File Claims by September 9
-------------------------------------------------------------
Creditors of LLC Garantis-South (code EDRPOU 35890710) have until
September 9, 2009, to submit proofs of claim to M. Tsurika, the
company's insolvency manager.

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on July 28, 2009.  The case is docketed under
Case No. 5/192/09.

The Court is located at:

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

The Debtor can be reached at:

         LLC Garantis-South
         Office 406
         Heroes of Stalingrad Ave. 91
         54025 Nikolayev
         Ukraine


NAFTOGAZ OF UKRAINE: 75% of Creditors to Back Debt Restructuring
----------------------------------------------------------------
The FINANCIAL reports that Ihor Umanskyi, Ukraine's acting finance
minister, said at least 75% of NJSC Naftogaz of Ukraine's
creditors will agree to the terms of the company's debt
restructuring.

According to the report, Mr. Umanskyi said only few creditors
controlling 2% of the company's eurobonds made attempts to hinder
the debt restructuring.

"There are relatively moderate investors who control, as far as I
know, up to 2% [of the eurobonds of the national company] and make
attempts to arrange a sort of a scandal on the matter.  I don't
think this value can have a decisive influence on the position of
investors," the report quoted the acting financing minister as
saying.

The acting minister voiced confidence that the national company
will manage to find a mutually beneficial decision by
September 30, 2009, the date for redemption of the eurobonds
issued in 2004 for US$500 million, the report notes.  He did not
rule out that the negotiations could continue after September 30.

Citing Ukrainian News, the report discloses Ukraine's Deputy Fuel
and Energy Minister Burzu Aliev said the redemption of the
eurobonds of Naftogaz for US$500 million could be postponed from
September 30 until a later date as a result of the negotiations
with creditors.

As reported in the Troubled Company Reporter-Europe on Sept. 1,
2009, Reuters said Naftogaz held initial talks with creditors on
restructuring its US$500 million Eurobond due by the end of
September.

On July 31, 2009, the Troubled Company Reporter-Europe, citing the
Associated Press, reported experts said the Ukrainian government
was likely to come to Naftogaz' rescue in case the company fails
to come to an agreement with its lenders, after the International
Monetary Fund approved a third US$3.3 billion instalment of a
US$16.4 billion rescue loan.

                   About NJSC Naftogaz of Ukraine

Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine --
http://www.naftogaz.com/-- is a vertically integrated oil and gas
company engaged in full cycle of operations in gas and oil field
exploration and development, production and exploratory drilling,
gas and oil transport and storage, supply of natural gas and LPG
to consumers.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on June 2,
2009, Moody's Investors Service downgraded to Caa1 from B2, the
foreign currency corporate family rating, and probability of
default and debt ratings of NJSC Naftogaz of Ukraine.  Moody's
said the outlook on the ratings was changed to negative.


NAFTOGAZ OF UKRAINE: Credit Suisse to Advise on Debt Restructuring
------------------------------------------------------------------
Roman Olearchyk at The Financial Times reports that NJSC Naftogaz
of Ukraine said it had hired Credit Suisse as an adviser to help
restructure more than US$1.7 billion in debts, including a US$500
million eurobond issue, due to mature on September 30.

The FT relates in a statement, the company said Credit Suisse's
liability management team would act as dealer manager in the
planned restructuring of the eurobonds and the bilateral loan
obligations.

According to the FT, Yulia Tymoshenko, Ukraine's prime minister,
said she hoped to restructure Naftogaz's debts to free up
financial resources needed to reform the gas sector and help pull
the Ukraine out of recession.

On July 31, 2009, the Troubled Company Reporter-Europe, citing the
Associated Press, reported experts said the Ukrainian government
was likely to come to Naftogaz' rescue in case the company fails
to come to an agreement with its lenders, after the International
Monetary Fund approved a third US$3.3 billion instalment of a
US$16.4 billion rescue loan.

                   About NJSC Naftogaz of Ukraine

Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine --
http://www.naftogaz.com/-- is a vertically integrated oil and gas
company engaged in full cycle of operations in gas and oil field
exploration and development, production and exploratory drilling,
gas and oil transport and storage, supply of natural gas and LPG
to consumers.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on June 2,
2009, Moody's Investors Service downgraded to Caa1 from B2, the
foreign currency corporate family rating, and probability of
default and debt ratings of NJSC Naftogaz of Ukraine.  Moody's
said the outlook on the ratings was changed to negative.


NATSIONALNYI KREDIT: Acquired by Andriy Onistrat and Kluyiv Bros.
-----------------------------------------------------------------
Daryna Krasnolutska at Bloomberg News, citing Kommersant
newspaper, reports that Ukrainian businessmen Andriy Onistrat and
brothers Andriy and Serhiy Klyuevs acquired AKB Natsionalnyi
Kredit:

     -- Onistrat bought a 48.21% stake; and
     -- the Klyuevs purchased a 48.35% stake.

On Aug. 11, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that the Natsionalnyi Bank Ukrainy
suspended payments for six months by Natsionalnyi Kredit.
The Ukrainian lender is under temporary state administration.


OTM LLC: Creditors Must File Claims by September 9
--------------------------------------------------
Creditors of LLC Trading and Implementing Company OTM (code EDRPOU
35670664) have until September 9, 2009, to submit proofs of claim
to:

         LLC Lu-sin
         Insolvency Manager
         M. Raskovaya Str. 19
         02002 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on August 4, 2009.  The case is docketed under
Case No. 44/429-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 Trading and Implementing Company OTM
         Frunze Str. 20-22
         04080 Kiev
         Ukraine


SIMFEROPOL EMPTIES: Court Starts Bankruptcy Supervision Procedure
-----------------------------------------------------------------
The Economic Court of AR Krym commenced bankruptcy supervision
procedure on OJSC Simferopol Empties Plant (code EDRPOU 0023350).

The Insolvency Manager is:

         O. Asriyants
         Dzhankoy str. 22
         Simferopol
         95051 AR Krym
         Ukraine

The Court is located at:

         The Economic Court of AR Krym
         R. Luxembourg/Rechnaya Str. 29/11
         95003 Simferopol
         Ukraine

The Debtor can be reached at:

         OJSC Simferopol Empties Plant
         Industrialnaya str. 41
         Simferopol
         95051 AR Krym
         Ukraine


STEEL CJSC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------
The Economic Court of Dnepropetrovsk commenced bankruptcy
supervision procedure on CJSC Corporation Steel (code EDRPOU
25517425).

The Insolvency Manager is:

         I. Yasnogor
         Post Office Box 2350
         49040 Dnepropetrovsk
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         CJSC Corporation Steel
         Eupatoriya Str. 40
         49000 Dnepropetrovsk
         Ukraine


SOUTHWESTERN INDUSTRIAL: Creditors Must File Claims by Sept. 10
---------------------------------------------------------------
Creditors of Joint Ukrainian and American Enterprise Southwestern
Industrial Company (code EDRPOU 247042220) have until September
10, 2009, to submit proofs of claim to:

         O. Gorobchuk
         Insolvency Manager
         Pionerskaya Str. 1
         10005 Zhytomir
         Ukraine

The Economic Court of Zhytomir commenced bankruptcy proceedings
against the company on July 29, 2009.  The case is docketed under
Case No. 7/202-b.

The Court is located at:

         The Economic Court of Zhytomir
         Putiatinsky Square 3/65
         Zhytomir
         Ukraine

The Debtor can be reached at:

         Joint Ukrainian and American Enterprise
         Southwestern Industrial Company
         Pobeda Str. 24
         Zhytomir
         Ukraine


UTTK LLC: Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------
The Economic Court of Zaporozhye commenced bankruptcy supervision
procedure on LLC UTTK (code EDRPOU 35124755).

The Insolvency Manager is:

         A. Zabrodin
         Post Office Box 6335
         69121 Zaporozhye
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         LLC UTTK
         Chkalov Str. 31
         Melitopol
         72318 Zaporozhye
         Ukraine


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


BRITAIN'S AQUATIC: In Administration; KPMG Appointed
----------------------------------------------------
Paul Flint and Brian Green, of KPMG's Restructuring practice were
appointed as Joint Administrators to Bolton based aquatic products
retailer, Britain's Aquatic Superstore, on Sept. 1.

The business has been trading for over 43 years and markets itself
as one of the largest aquatic and reptile product wholesale
distributors in the UK.  Its 70,000 sq ft premises include 30,000
sq ft of retail space, which is home to one of the largest angling
centres in the North West and more than 500 stock tanks with a
wide range of fish.

The Administrators plan to trade the business in the short term
whilst a buyer is sought . Unfortunately, however, six employees
have had to be made redundant immediately on appointment, leaving
a workforce of 30.

Joint Administrator and KPMG Associate Partner, Paul Flint, said:
"We are keen to secure a going concern sale of this long
established business and would encourage any parties who may be
interested in acquiring the business and its assets to contact us
as soon as possible."


CATTLES PLC: To Close 30 Welcome Units; More Than 500 Jobs Axed
---------------------------------------------------------------
Elizabeth Judge at Times Online reports that Cattles plc plans to
close 30 of its 180 Welcome Financial units and cut back its sales
and support teams.

According to Times Online, the company -- which has debt of
GBP2.4 billion -- said more than 500 workers have been given
notice Wednesday that they are at risk of redundancy in the
division, the group's main business accounting for 95% of its
turnover .

Times Online relates in a statement, Cattles said: "As part of an
ongoing comprehensive review of the Welcome business, Cattles
proposes the closure of 30 branches where leases have expired or
are due to expire and a reduction in the number of its sales and
support teams.  Cattles' new management team believes the proposed
measures better align the network with reduced levels of lending
and will deliver efficiencies."

                             Standstill

Times Online notes Cattles, whose shares have been suspended since
April, said it remained in "constructive discussions with key
financial creditors to obtain a standstill agreement".  The group,
Times discloses, has a standstill agreement from its banks for
about GBP1.3 billion in debt but is now seeking an arrangement
with bondholders.

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.


DSG INTERNATIONAL: Sells Polish Unit to IDMSA for Nominal Price
---------------------------------------------------------------
Adam Jones at The Financial Times reports that DSG International
Plc said it had agreed to sell its Polish unit for EUR1.

Electro World Poland, its Polish arm, comprises eight stores.  The
FT relates in a stock exchange announcement, DSG said the stores
were being bought by IDMSA Brokerage House, a Polish financial
services group, working with Mix Electronics, a Polish retailer.
According to the FT, DSG said it was selling the loss-making
business as part of a broader strategic refocusing on businesses
with a clearer short-term potential.

                               Sales

The FT discloses in the 16 weeks to August 22, DSG’s like-for-like
sales fell 6%, compared with an 11% decline in the second half of
2008, while gross margin increased by 0.7 of a percentage point.
The sales decline was 14% in its UK and Ireland electricals
business, and 15% per cent in its UK computing arm, the FT states.

The FT recalls DSG carried out a rights issue earlier this year
following an increase in its indebtedness.

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.


EUROMASTR PLC: S&P Junks Rating on Class E Series 2007-1V Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class D and E notes series 2007-1V issued by EuroMASTR PLC.
At the same time, S&P placed the class B, C, and D notes on
CreditWatch negative.  S&P also affirmed all the other notes in
this transaction.

The downgrades follow S&P's credit and cash flow analysis of the
most recent loan-level information and the June investor report.
S&P's analysis showed that the credit enhancement available to the
class D and E notes was, in S&P's view, not commensurate with the
existing ratings on these notes.

The transaction's performance has continued to deteriorate in
recent quarters.  Cumulative losses increased to 2.24% in June
from 1.66% in March.  The weighted-average loss severity since
closing is 32.11% and total delinquencies (including
repossessions) are 42.67%.  The reserve fund is currently at
19.76% of its target balance.

If performance does not improve compared with previous quarters,
S&P would expect loss levels to cause interest shortfalls on the
class E notes within the next year.

S&P will continue to monitor the transaction's performance and
will aim to resolve the CreditWatch placements after the September
2009 interest payment date.

The notes, issued in June 2007, are backed by a portfolio of
first-ranking nonconforming residential mortgages secured over
owner-occupied and buy-to-let properties in England and Wales.

                            Ratings List

                           EuroMASTR PLC
      GBP200.75 Million Mortgage-Backed Floating-Rate Notes
                           Series 2007-1V

                          Rating Lowered

                                   Rating
                                   ------
              Class       To                     From
              -----       --                     ----
              E           CCC                    B

        Rating Lowered and Placed On CreditWatch Negative

                                   Rating
                                   ------
              Class       To                     From
              -----       --                     ----
              D           BB-/Watch Neg          BB

              Ratings Placed on CreditWatch Negative

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

                         Ratings Affirmed

                        Class       Rating
                        -----       ------
                        A1          AAA
                        A2          AAA
                        MERCs       AAA


GLADEDALE HOMES: Has Debt-for-Equity Swap Deal with Lloyds
----------------------------------------------------------
David Fickling at The Financial Times reports that Gladedale Homes
will announce today a debt-for-equity swap with Lloyds Banking
Group.

The FT relates Lloyds took on its loans when it acquired HBOS and
is expected to take preference shares in the company in exchange
for writing off GBP500 million of debt.  Galdedale, the FT
discloses, has a GBP1 billion debt pile.

According to the FT, the Dipre family, whose holdings in the group
were valued at GBP500 million in 2007, will still have formal
control of Gladedale’s voting shares.

Gladedale -- http://www.gladedale.com/-- is a privately owned,
national residential house building and property development
company specializing in new build, city regeneration, historical
restoration and refurbishment projects.  Headquartered in Epsom,
Surrey and Stirling in Scotland the company has offices throughout
the UK.  The company was founded in 1996 by Gladedale's Chairman
Remo Dipre, who has been involved in property development and
investment for more than 30 years.


INCISIVE MEDIA: To Split; Banks to Keep Troubled UK Arm
-------------------------------------------------------
Martin Arnold at The Financial Times reports that Incisive Media
plc is splitting into two.

According to the FT, Apax Partners, its private equity owner, will
keep control of the American Lawyer Media business in the US,
while banks will take over the struggling UK arm.

Apax, the FT discloses, has agreed to inject US$15 million (GBP9.2
million) of fresh equity into American Lawyer Media as part of a
debt-for-equity swap deal with Royal Bank of Scotland, cutting its
total debt from US$450 million to US$300 million.  The deal is
expected to be completed later this month, the FT says.

The FT recalls Incisive breached its banking covenants in December
after falls in advertising at its magazines and a drop in
attendance at its industry conferences.

Incisive Media plc -- http://www.incisivemedia.com/-- provides
business information related to a variety of markets: risk
management, legal services, insurance, mortgage, private equity,
and financial information technology services, among others.
Incisive Media publishes magazines, Web sites, Web-based
conference series, newsletters, and related databases.  It also
organizes conferences and exhibitions.  Publications include
"Investment Week", "Mortgage Solutions", and "Risk".  Apax
Partners and company management took Incisive Media private in
2006.


KETECH GROUP: Gov't Investment Arm Probes Into Pension Black Hole
-----------------------------------------------------------------
Richard Tyler at The Daily Telegraph reports that Capital for
Enterprise Limited, the investment arm of Lord Mandelson's
Business Department, has launched an investigation into how a
taxpayer-funded scheme rescued KeTech Group Ltd. without noticing
that one of its subsidiaries had failed to pass on thousands of
pounds of its employees' pension contributions.

KeTech became the first recipient of investment under Lord
Mandelson's Capital for Enterprise fund.

According to the report, a Daily Telegraph investigation has found
that the subsidiary of Bedford-based engineer KeTech, called Key
Radio Systems, did not pass on staff pension contributions to
their group personal pensions run by Aegon Scottish Equitable.
The report relates the pension shortfalls only came to light after
Key Radio was placed into administration as part of a GBP2 million
refinancing deal agreed by Octopus Capital, one of two fund
managers appointed by the Business Department to invest the GBP75
million Capital for Enterprise fund.

"Capital for Enterprise Ltd is in discussions with Octopus to
assure themselves that proper due diligence was conducted on this
deal," the report quoted a spokesman for the Business Department
as saying.

Octopus has told The Daily Telegraph that it had examined KeTech
Group's books fully before agreeing the invest the public money.

In an Aug. 31 report The Daily Telegraph, citing documents,
disclosed Key Radio employee and employer contributions were not
paid for at least four months.  Key Radio, which was making
losses, was placed into administration by KeTech on July 31 and
its workforce made redundant without notice.  Ther report said the
administrators from BDO Stoy Hayward are now investigating all the
Key Radio liabilities and will examine whether there is any claim
on KeTech.

KeTech Group Ltd. -- http://www.ketech.com/-- provides
communication systems consultancy, design, engineering, software
development and maintenance services to the transport sector.
KeTech has offices in London, Bedford, Nottingham, Preston,
Bristol and Aldermaston.


LEHMAN BROTHERS: Gets NY Court Nod to Represent U.K. Estates
------------------------------------------------------------
In light of this development, Lehman Brothers Holdings Inc. and
its affiliated debtors other than Lehman Brothers Special Funding
Inc., obtained authority from the U.S. Bankruptcy Court to act as
the foreign representatives of their estates in the U.K., seek
recognition of their Chapter 11 cases on behalf of their estates,
and ask that the High Court lend assistance to the U.S. Bankruptcy
Court in protecting their estates.

Following the bankruptcy filing of Lehman Brothers Holdings Inc.
and its affiliated debtors under Chapter 11 of the U.S.
Bankruptcy Code, some of their foreign units commenced
insolvency, administration or similar proceedings.

Given the global nature of their businesses, many of the assets
and activities of these foreign units and LBHI are deeply
integrated with each other and spread across different
jurisdictions.  The Lehman units recognized that the efficient
administration of each of their cases is through their
cooperation on matters that are common to their cases.

Following negotiations, LBHI and its units executed the Cross-
Border Insolvency Protocol to coordinate their proceedings.  The
protocol was approved on June 17, 2009, by the U.S. Bankruptcy
Court for the Southern District of New York.

On July 7, 2009, Lehman Brothers Special Financing Inc., one of
the U.S.-based debtors, sought authorization from the U.S.
Bankruptcy Court to act as the foreign representative of its
estate in the United Kingdom to defend itself in that country
against a series of potential litigations.  At that time, LBHI
and the other debtors hesitated to follow suit because they were
not certain of their need to seek recognition in the High Court
of Justice Chancery Division, Royal Courts of Justice in London.
They anticipated that they would request approval only if the
assistance of a foreign court would be necessary.

On July 17, 2009, the signatories to the insolvency protocol
convened their first meeting in London, where they discussed how
they might arrive at a settlement of inter-company claims through
a streamlined, multilaterally consistent, and transparent process
that reduces administrative expenses and avoids years of
potential litigation in various jurisdictions.  To arrive at a
consensual resolution of intercompany claims, the Protocol
Signatories have set forth an aggressive timeline of milestones
that will lead to a second meeting in mid-October.

In furtherance of their effort to arrive at a settlement of
inter-company claims and to assist each other in some aspects of
their proceedings in which they share mutual interests, some of
the Lehman units indicated that they may need the assistance of
the U.K. High Court as foreign debtors subject to foreign main
proceedings pursuant to the Cross-Border Insolvency Regulations
2006, which enacts into English law the United Nations Commission
on International Trade Law (UNCITRAL) Model Law on Cross-Border
Insolvency.

                      About Lehman Brothers

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

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

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

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

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

               International Operations Collapse

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

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

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


LLOYDS BANKING: Cash Call Gets Shareholder Backing
--------------------------------------------------
Richard Wachman at The Guardian reports that Lloyds Banking Group
plc has obtained support from its investors to raise GBP10 billion
reduce its dependence on the taxpayer.

The bank, the Guardian discloses, is looking at plans to reduce
its exposure to the government scheme set up to shelter banks from
the worst losses on their bad debts.  According to the Guardian,
under the government's asset protection scheme, Lloyds would have
to pay a GBP15 billion fee to insure GBP260 billion of toxic
loans.

Eric Daniels, the chief executive who took on the takeover of HBOS
after the former chairman, is drawing up an alternative plan that
would involve Lloyds insuring against bad loans worth only
GBP130 billion, the Guardian relates.  The Guardian says important
City shareholders are prepared to back Mr. Daniels if he decides
on a partial withdrawal from the government's insurance scheme.

The Guardian notes if Lloyds won support for a shares issue it
would be able to use some of the funds to bolster its capital
position, as well as pay the fee.

As reported in the Troubled Company Reporter-Europe, Lloyds sought
a GBP17-billion bailout from taxpayers after it agreed to buy HBOS
in September in a government- brokered deal to prevent the
collapse of Britain's biggest mortgage lender.  The U.K. owns 43%
of Lloyds.

                   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.


MCINERNEY HOLDINGS: Posts Wider 1H09 Loss After EUR156MM Writedown
------------------------------------------------------------------
Fergal O'Brien at Bloomberg News reports that McInerney Holdings
Plc wrote down the value of its land by a further EUR156 million
(US$223 million).

Bloomberg relates McInerney took an impairment charge of EUR110
million in its 2008 results and has now written down the value of
its Irish and U.K. land by 52% and 41% respectively since the
middle of last year.

The latest writedown means that the company's liabilities exceed
assets.

                               Loss

According to Bloomberg, the company's net loss widened to EUR171
million in the first half of 2009 as revenue fell 42% to EUR80.8
million.  Bloomberg notes excluding the writedowns, the net loss
was EUR12.8 million.

                               Talks

The company, Bloomberg discloses, is in "constructive discussions"
with lenders in the U.K. and Ireland about revised loan facilities
and expects to extend the U.K. banking facility maturity date to
2011 from March 2010.  Bloomberg says lenders also have agreed to
defer a certain covenant test.

"There is now an increased likelihood of having to raise further
equity at some point in the future," Bloomberg quoted Killian
Jones and John Mattimoe, analysts at Merrion Capital, as saying in
a note.  "Investors should not consider investing more cash into
the company until a suitable debt structure has been agreed with
the banks that will see the company through the downturn and there
is clear evidence of a recovery in sales rates."

The company will hold a shareholders' meeting on Sept. 28.

McInerney Holdings plc -- http://www.mcinerneyholdings.eu/-- is a
home builder and regional home builder in the North and Midlands
of England.  It also undertakes commercial and leisure projects in
Ireland, United Kingdom and Spain.  It operates in Ireland, the
United Kingdom and Spain.  The main trading activities of the
Company’s Irish home building business during the year ended
December 31, 2008 consisted of construction of private houses,
trading in developed sites and land, development of residential
land for third-parties and in joint-ventures, and contracting for
third-parties.  The Company’s commercial property development
division, Hillview Developments Ltd (Hillview), develops
industrial units in the Greater Dublin area.  Hillview completed
1,223 square meters of industrial units as of December 31, 2008.
Its Spanish division, Alanda Group, is developing freehold
apartment schemes.  As of December 31, 2008, the Company completed
1,359 private and contracting residential units in Ireland, the
United Kingdom and Spain.


* UK: Analysts Expect Second Wave of Corporate Restructurings
-------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that insolvency
specialists expect a second wave of corporate restructurings in
the United Kingdom in September.

According to the FT, after January, September is the second
important crunch date in the year for companies and lenders, as
companies draw heavily on working capital to stock up ahead of
Christmas and pressure builds on their ability to meet year-end
financial covenants.

The FT says recovery in certain markets, a year on from the
collapse of Lehman Brothers, is expected to provide the visibility
on company performance to allow restructurings to go ahead.

"On the one-year anniversary of the collapse of Lehman, work-out
bankers are feeling much more confident about how to deal with the
repercussions of the recession," the FT quoted Philip Davidson,
European head of restructuring at KPMG, as saying.

"After months of uncertainty, market volatility and a liquidity
freeze, bankers are rolling up their sleeves, having assembled and
substantially grown their ranks over the last six months.  With
asset values unlikely to rebound for several years, the time has
come for decisions to be made on how untenable business models
should be addressed."


===============
X X X X X X X X
===============


* BEARINGPOINT INC: Completes Sale of EMEA Practice for US$69 Mil.
------------------------------------------------------------------
BearingPoint, Inc., the management and technology consulting firm,
said it has completed the sale of the Company's Europe, Middle
East and Africa (EMEA) practice to its European management team
for an aggregate price of approximately US$69 million in total
consideration.

Following the transaction, the EMEA practice will operate as an
independent, private partnership and will continue to serve
clients under the BearingPoint brand.  Peter Mockler, who has been
serving as the EMEA leader for BearingPoint since 2006, and his
management team will continue to lead the organization, providing
leadership stability and continuity in the transition process.

"We are very pleased to finalize the purchase of BearingPoint EMEA
and look forward to continuing to serve our valued clients for
many years to come," said Mr. Mockler.  "The EMEA leadership team
and approximately 3000 consultants are dedicated to the success of
our business and remain steadfast in our commitment to providing
leading-edge management and technology consulting services to our
clients.  We are confident that this is the best path forward for
our clients and employees, as many examples have shown that the
private business model makes sense for a professional services
firm."

                      About BearingPoint

BearingPoint, Inc. -- http://www.BearingPoint.com/-- was one of
the world's largest providers of management and technology
consulting services to Global 2000 companies and government
organizations in more than 60 countries worldwide.  Based in
McLean, Va., BearingPoint -- a former consulting arm of KPMG LLP -
- has approximately 15,000 employees focusing on the Public
Services, Commercial Services and Financial Services industries.
The Company's service offerings are designed to help clients
generate revenue, increase cost-effectiveness, manage regulatory
compliance, integrate information and transition to "next-
generation" technology.

BearingPoint, Inc., fka KPMG Consulting, Inc., together with its
units, filed for Chapter 11 protection on February 18, 2009
(Bankr. S.D.N.Y., Case No. 09-10691).  Alfredo R. Perez, Esq., at
Weil Gotshal & Manges LLP, in Houston; Marcia J. Goldstein, Esq.,
Ronit J. Berkovich, Esq., and Jose R. Alcantar, Esq., at Weil
Gotshal & Manges LLP, in New York, represent the Debtors as
restructuring counsel.  AlixPartners, LLP, is the Debtors'
restructuring advisors.  Greenhill & Co., LLC, is the Debtor's
financial advisor & investment banker.  Jeffrey S. Sabin, Esq., at
Bingham McCutchen LLP represents the Creditors' Committee as
counsel.

BearingPoint disclosed total assets of US$1,762,689,000, and debts
of US$2,231,839,000 as of September 30, 2008.


* BOOK REVIEW: The Deregulation of the Banking and Securities
              Industries
-------------------------------------------------------------
Edited by Lawrence G. Goldberg and Lawrence J. White
Publisher: Beard Books
Softcover: 362 pages
List Price: US$34.95
by Henry Berry

The sixteen collected articles arose out of a May 1978 conference
sponsored by the Salomon Brothers Center for the Study of
Financial Institutions at the New York University Graduate School
of Business Administration.  The editors Goldberg and White were
the organizers of the conference.  The articles are grouped into
four parts.  Each part concludes with comments from conference
participants.  Part I contains introductory articles, the other
three Parts cover the securities industry, the banking industry,
and the intersection of the two.  Because the financial industry
is so complex, basically conservative, and critical to the
economy, the topics and the discussions remain elucidating and
timely even though they reflect the framework of the financial
industry established by the Glass-Steagall Act passed in 1933 and
repealed in 1999.

The editors note in their Introduction, "Though deregulation is in
the air and is hotly discussed (particularly among economists), it
is far from a ubiquitous trend."  The spread of deregulation
throughout the economy since this collection of articles was first
published in 1979 has not resulted in a laissez-faire business
environment for the banking or securities industries.  Though
deregulation may have nominally been lifted with the repeal of the
Glass-Steagall Act in 1999, government continues to wield a strong
hand in the financial sector.  For instance, while roughly a
decade after Glass-Steagall's repeal, there is hardly any
resistance to the principle of the freeing of prices.  Prices
continue to be -- as they always have for business -- a critical
issue.  Pricing decisions and changes from competitive pressures,
supply patterns, technological development, and consumer behavior
are ongoing in the airline and oil industries, to name only two.
How loan rates, securities prices, the timing of new issues,
savings rates, and bond sales are affected by this deregulation is
of keen interest to the financial sector.  Accordingly, these
matters are addressed in many of the articles.

Another business phenomenon recognized by some articles is that
the increase in competition from the relaxing of regulations has
led to more business failures -- "one of the consequences of
competitive capitalism," say the editors.  This includes bank
failures and the bankruptcies of large corporations; the latter
affecting the securities field especially.  So, while deregulation
has allowed banks and securities firms to operate more freely in
many ways, it has also led to greater regulation to safeguard the
interests of depositors, stockholders, and investors from fraud
and incompetent management.  The spectacular failures or losses of
some prominent securities firms over the past few years attest to
the necessity of safety regulation despite the widespread movement
for deregulation in other areas.

Although written before the repeal of the Glass-Steagall Act in
1999, the articles still reflect conditions and issues faced by
today's financial institutions.  The articles deal with
fundamental, unchanging concerns such as pricing and the role of
government in regards to banks and securities firms.  It also
looks at the many other variables, including new competition and
political concerns, that have shaped these industries.

Lawrence G. Goldberg is Professor of Finance at the University of
Miami.  Lawrence J. White is the Arthur E. Imperatore Professor of
Economics at the New York University Stern School of Business.
Both authors have experience in the private and public business
sectors and have published many articles in business journals.

                            *********

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

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