TCREUR_Public/090909.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, September 9, 2009, Vol. 10, No. 178

                            Headlines

A U S T R I A

IA-BAUSERVICE KG: Creditors Must File Claims by September 11
ITB GMBH: Creditors Must File Claims by September 11
KITTY KIERNAN'S: Creditors Must File Claims by September 11
TEXT.BILD.MEDIA GMBH: Creditors Must File Claims by September 11


F R A N C E

CHEMTURA CORP: Proposes De Pardieu as French Counsel


G E R M A N Y

AKSYS: Worms Court Opens Insolvency Proceedings
KRONOS INT'L: Lenders Waive Compliance for August 31 Test Period
TITAN EUROPE: Fitch Junks Ratings on Four 2006-5 Tranches


G R E E C E

DRYSHIPS INC: COO Khanna to Present at Jefferies Shipping Confab


I R E L A N D

ALLIED IRISH: Irish Gov't. Records EUR824-Mil. Profit on Bailout
BANK OF IRELAND: Irish Gov't. Records EUR824MM Profit on Bailout
INDEPENDENT NEWS: Gets Approaches From Potential Investors
IRISH LIFE: Fined by Financial Regulator Over Reporting Breach
ULSTER BANK: Royal Bank of Scotland Pumps EUR1.1 Billion

ZOE GROUP: High Court to Decide on Examinership Bid Tomorrow


I T A L Y

GONZAGA FINANCE: Moody's Lifts Rating on Class C Notes From 'Ba1'


K A Z A K H S T A N

AGS IMPEX: Creditors Must File Claims by September 11
ALSEKO LLP: Creditors Must File Claims by September 11
ATYRAU PROM: Creditors Must File Claims by September 11
BTA BANK: Creditors to Lose Up to 82.25% Under Restructuring Plan
ELECTRUM LLP: Creditors Must File Claims by September 11

INERT KURYLYS: Creditors Must File Claims by September 11
KAIRAT ALMATY: Creditors Must File Claims by September 11
KASKYR SECURITY: Creditors Must File Claims by September 11
MANK MARKET: Creditors Must File Claims by September 11
ULUSAL INSHAAT: Creditors Must File Claims by September 11

VK INVEST: Creditors Must File Claims by September 11


N E T H E R L A N D S

LYONDELL CHEMICAL: Asks Court to Halt Suits on Non-Filed Units


R O M A N I A

* ROMANIA: Corporate Insolvency Cases Up 70% in Jan-Jul 2009


R U S S I A

EUROCHEM MINERAL: Fitch Affirms Issuer Default Rating at 'BB'
MONOLIT-STROY LLC: Udmurtia Bankruptcy Hearing Set September 15
RZHEVSKIY CONSTRUCTION: Tverskaya Bankruptcy Hearing Set Sept. 15
SEVERSTAL OAO: Posts US$290 Mln Net Loss in Second Quarter 2009
SORMOVSKAYA KUZNITSA: Bankruptcy Hearing Set September 15

STANKO-LES LLC: Udmurtia Bankruptcy Hearing Set September 15
TVER PIPE: Tverskaya Bankruptcy Hearing Set September 15

* VOLGOGRAD OBLAST: S&P Assigns 'BB-' Long-Term Debt Rating


S L O V E N I A

ISTRABENZ D.D.: 30-Percent Price Movement Restrictions Retained


S W I T Z E R L A N D

AIRCENTER INVEST: Claims Filing Deadline is September 11
CATELLA AG: Claims Filing Deadline is September 14
CHEMTURA CORP: Hires Deloitte AG as European Financial Advisor
CORSIARO AG: Creditors Must File Claims by September 14
COS MANAGEMENT: Claims Filing Deadline is September 14

DR DRUCKEREI: Claims Filing Deadline is September 14
HLP MANAGEMENT: Claims Filing Deadline is September 14
KAUFHAUS STRAUSS: Claims Filing Deadline is September 11
MAX WUETHRICH: Claims Filing Deadline is September 14
MONTAGUE GOLDSMITH: Creditors Must File Claims by September 14

PUBLIC IMAGE: Claims Filing Deadline is September 14


U K R A I N E

CENTRAL EUROPEAN: S&P Affirms Corporate Credit Rating at 'B'
ENEGRYTRANSINVEST HOLDING: Creditors Must File Claims by Sept. 12
ITD SIAYVO: Creditors Must File Claims by September 12
KALINOVSKY MIXED: Court Starts Bankruptcy Supervision Procedure
LUGBUILDINGINDUSTRY LLC: Creditors Must File Claims by Sept. 12

PRIORITET-SEL LLC: Creditors Must File Claims by September 12
UPK HORIZONT: Creditors Must File Claims by September 12
VESELKA CJSC: Creditors Must File Claims by September 12
VODOGRAY LLC: Creditors Must File Claims by September 12


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Says EU Unlikely to Relax Slot Rules for Winter
CORSAIR NO 2: S&P Downgrades Rating on Series 95 CDO Notes to 'BB'
DSG INTERNATIONAL: Shareholders Back Executive Incentive Scheme
GLOBAL CROSSING: UK Unit Has GBP210-Mil. Total Deficit at June 30
NATIONAL EXPRESS: Explores Other Options Beyond CVC Takeover

ROYAL BANK: Reduces Future Overdraft Charges
ROYAL BANK: Injects EUR1.1 Bln Into Ulster Bank Unit
ROYAL BANK: Nears GBP200 Mln Deal to Sell Asian Assets
TREES: Moody's Cuts Rating on EUR225 Mln Syndicated Loan to 'B2'
WHITE TOWER: Income From Properties Backing Loans Subject to Taxes

* UK: New Entrants May Buy State-Owned Stakes in Troubled Lenders
* UK: PwC Head Expects Further Wave of Restructurings in 2010
* UK: Real Estate Insolvencies Up to 1,573 in Second Quarter 2009
* UK: Over a Quarter of Fresh Produce Companies Operating at Loss


X X X X X X X X

* EUROPE: CMA CGM Head Calls on EU to Protect Shipping Companies
* S&P Withdraws Credit Ratings on Various European CDO Notes
* S&P Puts Ratings on 16 CLO Tranches on CreditWatch Negative


                         *********



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A U S T R I A
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IA-BAUSERVICE KG: Creditors Must File Claims by September 11
------------------------------------------------------------
Creditors of IA-BAUSERVICE KG have until September 11, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 25, 2009 at 10:00 a.m. at:

         Land Court of Linz
         Room 522
         5th Floor
         Linz
         Austria

For further information, contact the company's administrator:

         Mag. Sigrun Teufer-Peyrl
         Pfarrgasse 20
         4240 Freistadt
         Austria
         Tel: 07942/7 51 51
         Fax: 07942/7 51 51-9
         E-mail: ra.peyrl@epnet.at


ITB GMBH: Creditors Must File Claims by September 11
----------------------------------------------------
Creditors of iTB GmbH have until September 11, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 25, 2009 at 9:00 a.m.

For further information, contact the company's administrator:

         Mag. Maria Kincses
         Johann Roithner Strasse 9
         4050 Traun
         Austria
         Tel: 74526
         Fax: 7452616
         E-mail: office@advomoser.at


KITTY KIERNAN'S: Creditors Must File Claims by September 11
-----------------------------------------------------------
Creditors of KITTY KIERNAN'S Irish Pub/Restaurant GmbH have until
September 11, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 25, 2009 at 10:30 a.m. at:

         Land Court of Linz
         Room 522
         Second Floor

For further information, contact the company's administrator:

         MMag. Reinhold Zeinhofer
         Hofgasse 9
         4020 Linz
         Austria
         Tel: 77 88 98
         Fax: 77 88 98 99
         E-mail: zs@anwaltskanzlei.co.at


TEXT.BILD.MEDIA GMBH: Creditors Must File Claims by September 11
----------------------------------------------------------------
text.bild.media GmbH will convene a meeting of its creditors at
09.30 a.m. on September 25, 2009, at Land Court of Linz, room
522/5th floor.

Creditors of text.bild.media GmbH have until September 11, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for September 25, 2009 at 9:30 a.m. at

For further information, contact the company's administrator:

         Dr. Hubert Maier
         Vormarktstrasse 17
         4310 Mauthausen
         Austria
         Tel: 07238/3240
         Fax: 07238/3611
         E-mail: office@maier-rechtsanwalt.at


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F R A N C E
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CHEMTURA CORP: Proposes De Pardieu as French Counsel
----------------------------------------------------
The Debtors sought and obtained authority from the Court to
employ De Pardieu Brocas Maffei A.A.R.P.I., as their French
counsel, nunc pro tunc to April 23, 2009, to advise them with
respect to their non-Debtor European subsidiaries.

De Pardieu is an international full-service law firm with more
than 100 attorneys.  It has extensive experience in cross-border
insolvencies, including those of Eurotunnel, Global Automotive
Logistics and Belvedere, the Debtors note.

As the Debtor's French counsel, De Pardieu will:

  (a) advise the Debtors with respect to the powers and duties
      of their non-Debtor French subsidiaries;

  (b) advise and consult on the impact of the Debtors' Chapter
      11 proceedings on their French subsidiaries;

  (c) take all necessary action to protect and preserve the
      Debtors' interest in their French subsidiaries and the
      value of those interests;

  (d) advise the Debtors with respect to the implementation or
      impacts of any asset dispositions relating to the non-
      Debtor French subsidiaries; and

  (e) consult with the Debtors in relation to any accounting,
      tax or other regulatory requirements regarding the non-
      Debtor French subsidiaries.

The Debtors will pay De Pardieu's services on an hourly basis and
will reimburse the firm of its actual and necessary out-of-pocket
expenses.  De Pardieu's hourly rates are:

      Partners                       EU510
      Senior Associates              EU330
      Junior Associates              EU185
      Trainees/Paralegals            EU100

Jacques Henrot, Esq., a partner at De Pardieu, assures the Court
that his firm is a "disinterested person" as the term is defined
in Section 101(14) of the Bankruptcy Code.

                   About Chemtura Corp.

Based in Middlebury, Connecticut, Chemtura Corporation (CEM) --
http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a
global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.

Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 on March 18, 2009 (Bankr.
S.D.N.Y. Case No. 09-11233).  M. Natasha Labovitz, Esq., at
Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel.
Wolfblock LLP serves as the Debtors' special counsel.  The
Debtors' auditors and accountant are KPMG LLP; their investment
bankers are Lazard Freres & Co.; their strategic communications
advisors are Joele Frank, Wilkinson Brimmer Katcher; their
business advisors are Alvarez & Marsal LLC and Ray Dombrowski
serves as their chief restructuring officer; and their claims and
noticing agent is Kurtzman Carson Consultants LLC.

As of December 31, 2008, the Debtors had total assets of
US$3.06 billion and total debts of US$1.02 billion.

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


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G E R M A N Y
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AKSYS: Worms Court Opens Insolvency Proceedings
-----------------------------------------------
PlastEurope reports that the German district court in Worms opened
insolvency proceedings for the assets of AKsys on Sept. 1.

Tobias Hoefer oversees the insolvency proceedings, Plasteurope
discloses.

"We are currently negotiating with numerous interested parties
from Germany and abroad who want to take over AKsys,"
Plasteurope quoted Mr. Hoefer as saying.

On June 2, 2009, the Troubled Company Reporter-Europe, citing
Plasteurope, reported that AKsys filed for insolvency, putting
1,900 jobs at eight of the group's 10 German sites at risk.
According to Plasteurope, the company declared itself insolvent on
May 26 after the federal government declined to fund a bailout,
and the reconstruction and development bank KfW denied a EUR22
million credit application

AKsys -- http://www.aksys.de/-- is an automotive parts supplier.
The company employs some 2,400 workers worldwide.


KRONOS INT'L: Lenders Waive Compliance for August 31 Test Period
----------------------------------------------------------------
Kronos International, Inc., discloses that on August 31, 2009,
lenders under a revolving credit facility entered into by certain
of its operating subsidiaries, waived compliance with the required
financial ratio of the Borrowers' net secured debt to earnings
before income taxes, interest and depreciation under the loan
agreement for the 12-month period ending August 31, 2009.  Among
other things, the waiver moved the next required Debt Ratio
measurement period to the 12-month period ending September 15,
2009.  The Borrowers did not pay any fee to the Lenders to obtain
the waiver.

Certain operating subsidiaries of Kronos International, namely
Kronos Titan GmbH, Kronos Europe S.A./N.V., Kronos Titan AS,
Kronos Norge AS, Titania AS and Kronos Denmark ApS -- as Borrowers
-- are parties to a Facility Agreement dated June 25, 2002, as
most recently amended on May 26, 2008, with Deutsche Bank AG, as
mandated lead arranger, Deutsche Bank Luxembourg S.A., as agent,
and the lenders participating in the facility.  The Amended
Revolving Credit Facility matures May 26, 2011.  Borrowings under
the Amended Revolving Credit Facility bear interest at the
applicable interbank market rate plus 1.75%.  The Amended
Revolving Credit Facility is collateralized by the accounts
receivable and the inventories of the Borrowers and a limited
pledge of all of the other assets of Kronos Europe S.A./N.V.  The
Amended Revolving Credit Facility contains representations,
warranties and covenants customary in lending transactions of this
type.

John A. St. Wrba, Vice President and Assistant Treasurer of Kronos
International, said the Borrowers are continuing their discussions
with the Lenders to amend the terms of the Amended Revolving
Credit Facility and expect to obtain an amendment by September 15,
2009.

"[The Company] can give no assurance that such amendment will be
obtained on or around such date or later, or if obtained that the
requirement to maintain the Debt Ratio would be eliminated (or
waived, in the event the Lenders would only agree to a waiver and
not an amendment to eliminate the Debt Ratio covenant itself)
through some future date acceptable to the Borrowers.  Any such
amendment or waiver that the Borrowers might obtain could increase
their future borrowing costs, either from a requirement that they
pay a higher rate of interest on outstanding borrowings and/or pay
a fee to the Lenders as part of agreeing to such amendment or
waiver," Mr. Wrba said.

"In the event the Borrowers are not successful in obtaining the
amendment or waiver of the Amended Revolving Credit Facility to
eliminate the requirement to comply with the Debt Ratio financial
covenant until some future date acceptable to the Borrowers, the
Borrowers would seek to refinance such facility with a new group
of lenders with terms that would not include the Debt Ratio
financial covenant or, if required, the Borrowers will use their
existing liquidity resources (which could include funds provided
by affiliates of the Borrowers).  While there is no assurance that
the Borrowers would be able to refinance the Amended Revolving
Credit Facility with a new group of lenders, the [Company]
believes these other sources of liquidity available to the
Borrowers would allow them to refinance the Amended Revolving
Credit Facility.  If required, the [Company] believes by
undertaking one or more of these steps the Borrowers will be
successful in maintaining sufficient liquidity to meet the
Company's future obligations including operations, capital
expenditures and debt service for the next 12 months," Mr. Wrba
said.

At June 30, 2009, Kronos International's consolidated debt was
comprised of:

     -- EUR400 million principal amount of its 6.5% Senior Secured
        Notes (US$561.3 million at June 30, 2009) due in 2013;

     -- EUR51.0 million (US$71.8 million) under its revolving
        credit facility which matures in May 2011; and

     -- Roughly US$6.7 million of other indebtedness.

On March 20, 2009 the Lenders waived compliance with the Debt
Ratio, for the 12-month period ending March 31, 2009.  Among other
things, such waiver moved the next required Debt Ratio measurement
period to the 12-month period ending April 30, 2009.  The
Borrowers did not pay any fee to the Lenders to obtain the waiver.

On April 29, 2009 the Lenders waived compliance with the Debt
Ratio for the 12-month period ending April 30, 2009.  Among other
things, this waiver moved the next required Debt Ratio measurement
period to the 12-month period ending June 15, 2009.  The Borrowers
also did not pay any fee to the Lenders to obtain the second
waiver.

On June 18, 2009, the Lenders waived compliance with the Debt
Ratio for the 12-month period ending June 15, 2009.  Among other
things, this waiver moved the next required Debt Ratio measurement
period to the 12-month period ending August 31, 2009.  The
Borrowers also did not pay any fee to the Lenders to obtain the
third waiver.

                       Q2 Financial Results

Kronos International swung to a net loss of US$26.1 million for
the three months ended June 30, 2009, from a US$12.9 million net
income for the same quarter in 2008.  It posted a net loss of
US$50.2 million for the first half of 2009, from net income of
US$16.7 million for the first half of 2008.

Kronos explained its net income decreased in 2009 as compared to
the same periods of 2008 primarily due to the net effects of lower
income from operations in 2009 resulting principally from lower
sales and production volumes in the 2009 periods.  In late 2008,
as a result of the decrease in global demand, the Company
experienced a build up in its inventory level.  To decrease its
inventory levels and improve liquidity, the Company implemented
production curtailments.  Through the curtailments the Company
successfully reduced inventory levels and increased liquidity,
although the resulting curtailments led to a net loss due to the
large amounts of unabsorbed fixed production costs charged to
expense as incurred.

The Company also noted its net income for the first six months of
2008 includes a second quarter income tax benefit of US$7.2
million related to a European Court ruling that resulted in the
favorable resolution of certain income tax issues in Germany.

As of June 30, 2009, the Company had total assets of US$1.028
billion against total current liabilities of US$221.0 million and
total noncurrent liabilities of US$716.8 million, resulting in
stockholder’s equity of US$90.6 million.

Kronos International Inc. is a wholly owned subsidiary of Kronos
Worldwide, Inc.  The Company is a global producer and marketer of
value-added titanium dioxide pigments -- TiO2 -- which is used for
a variety of manufacturing applications, including plastics,
paints, paper and other industrial products.  For the six months
ended June 30, 2009, approximately three-fourths of the Company's
sales volumes were into European markets.  The Company believes it
is the second largest producer of TiO2 in Europe with an estimated
19% share of European TiO2 sales volumes.  Its production
facilities are located throughout Europe.


TITAN EUROPE: Fitch Junks Ratings on Four 2006-5 Tranches
---------------------------------------------------------
Fitch Ratings has downgraded all eight tranches of Titan Europe
2006-5 plc's floating-rate notes and affirmed the class X
variable-rate notes as detailed below.  The Outlooks on classes
A2, A3, and B have been revised to Negative from Stable, and
Recovery Ratings have been assigned to the four junior tranches.

The rating actions are:

  -- EUR297 million class A1 (XS0277721618) downgraded to 'AA'
     from 'AAA'; Outlook Stable

  -- EUR5,000 class X (XS0277735758) affirmed at 'AAA'; Outlook
     Stable

  -- EUR109 million class A2 (XS0277725361) downgraded to 'A' from
     'AAA'; Outlook revised to Negative from Stable

  -- EUR60.1 million class A3 (XS0277726500) downgraded to 'BBB-'
     from 'AAA'; Outlook revised to Negative from Stable

  -- EUR55.1 million class B (XS0277728381) downgraded to 'B' from
     'AA'; Outlook revised to Negative from Stable

  -- EUR41.7 million class C (XS0277729439) downgraded to 'CCC'
     from 'A'; assigned RR4

  -- EUR35.9 million class D (XS0277732144) downgraded to 'CC'
     from 'BBB'; assigned RR6

  -- EUR4.9 million class E (XS0277733548) downgraded to 'CC' from
     'BBB-'; assigned RR6

  -- EUR11.9 million class F (XS0277734199) downgraded to 'CC'
     from 'BB'; assigned RR6

The downgrades reflect the deterioration of the German commercial
real estate market since the transaction closed in December 2006,
as well as the underperformance of the largest three loans, DIVA
Multifamily Portfolio, Hotel Adlon Kempinski and Quartier 206
Shopping Centre, which jointly comprise almost 84% of the current
securitised balance.  Following the buyback of the only Spanish
loan (Hotel Balneario Blancafort) by the originator in October
2007, the pool comprises seven commercial mortgage loans backed by
40 assets located throughout Germany.

The largest loan in the transaction, the EUR271.6 million Diva
whole loan (the EUR240.7 million A-note is securitized), defaulted
in September 2008 as the result of the insolvency of the sponsor,
a member of the Level One Group, that was triggered by the group's
financial difficulties.  Consequently, no debt service payments
were made at the October 2008 and January 2009 interest payment
dates, resulting in liquidity facility drawings to ensure the
timely payment of note interest.  The insolvency administrator
subsequently released sufficient funds to repay all liquidity
drawings and to make interest payments at the April and July IPDs.
However, EUR4.9 million of scheduled amortization remains unpaid
and there continues to be uncertainty surrounding the release of
cash by the administrator.  The loan collateral, 14 multifamily
housing properties located in the former East Germany, was re-
valued in December 2008 after the loan entered special servicing.
The reported loan-to-value ratio subsequently increased to 116%
from 88% on the whole loan and rose to 102% from 78% on the
securitized A-note, respectively.  In comparison, the Fitch LTV
stands at 112% (A-note) and 126% (whole loan), implying a market
value decline (MVD) of 30% since closing and 8% since the
revaluation.

The EUR160 million Adlon loan is secured on a five star hotel
adjacent to the Brandenburg Gate in Berlin.  In July 2009, the
servicer announced that the second-largest tenant, Adlon Holding
GmbH (37% of in-place rent), which occupies most of the non-hotel
space, received a waiver from the borrower for its rental
obligations until January 2010.  The waiver was granted as the
tenant claimed to have incurred losses in excess of EUR3 million
due to ongoing construction works.  Whilst waived amounts may
subsequently be repaid by the tenant from profits (if any) in the
next financial year, Fitch has assumed in its analysis that such
repayment will not occur.  The agency estimates a 62% MVD since
closing, resulting in a Fitch LTV of 144%, compared to the
reported LTV of 56%.

The EUR144.8 million Quartier 206 whole loan (the EUR114.8 million
A-note is securitized) has been in breach of its debt service
coverage ratio cash trap trigger of 1.05x since the April 2009
IPD, originally due to increased insurance and repair costs
related to water damage.  Subsequently, a major tenant, AMJ
Holding GmbH (34% of in-place rent), entered financial
difficulties and stopped paying rent at the July 2009 IPD.  This
resulted in a EUR0.5 million drawing from the EUR2 million debt
service reserve account to maintain a DSCR of 1x.  Although the
borrower and the tenant are currently in a dialogue regarding the
repayment of rental arrears, Fitch has assumed in its analysis
that the tenant will ultimately vacate the premises without
redeeming the unpaid amounts.  The agency estimates a MVD of 34%
on the Berlin retail property since closing.  The Fitch LTV
currently stands at 95% on the securitized A-note and 120% on the
whole loan, compared to reported ratios of 63% and 79%,
respectively.

Fitch will continue to monitor the performance of the transaction.


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DRYSHIPS INC: COO Khanna to Present at Jefferies Shipping Confab
----------------------------------------------------------------
DryShips Inc. said Pankaj Khanna, Chief Operating Officer of the
Company, will be presenting at the Jefferies 6th Annual Shipping
and Offshore Services Conference today, September 9, 2009, at
12:30 pm EDT in New York City.

As reported by the Troubled Company Reporter on August 12, 2009,
DryShips reached an agreement with WestLB on waiver terms for
US$71 million of its outstanding debt.  This agreement is subject
to customary documentation.  George Economou, Chairman and Chief
Executive Officer, said, "We continue to have constructive
discussions with the remainder of our banks who are all very
supportive of the company."

                        About DryShips Inc.

DryShips Inc., -- http://www.dryships.com/-- based in Athens,
Greece, is an owner and operator of drybulk carriers that operate
worldwide. As  DryShips owns a fleet of 41 drybulk carriers
comprising 7 Capesize, 29 Panamax, 2 Supramax and 3 newbuilding
drybulk vessels with a combined deadweight tonnage of over 3.6
million tons, 2 ultra deep water semisubmersible drilling rigs and
4 ultra deep water newbuilding drillships.  DryShips Inc.'s common
stock is listed on the NASDAQ Global Market where trades under the
symbol "DRYS."


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ALLIED IRISH: Irish Gov't. Records EUR824-Mil. Profit on Bailout
----------------------------------------------------------------
Conor Keane at Irish Examiner reports that Ireland has gained
EUR824 million from its rescue of Bank of Ireland and Allied Irish
Banks.

The state holds options on a 25% stake in each of the bank.

"There is already an EUR825 million benefit to taxpayers from
recovery in the market value of Allied Irish Bank and Bank of
Ireland," Irish Examiner quoted Bloxham stockbrokers' Kevin
McConnell as saying.  "This is apart from the benefit of the
annual 8% yield from the EUR7 billion injection into the two main
banks, which adds a further EUR560 million to the return per
annum."

On Aug. 25, 2009, the Troubled Company Reporter-Europe, citing The
Scotsman, reported Ireland's finance minister ruled out fully
nationalizing either Allied Irish Banks or Bank of Ireland
following the creation of a "bad bank".  According to the
Scotsman, the Irish government may end up with a majority stake in
its top two lenders if it has to boost their capital levels
following the transfer of property loans to the "bad bank".

Allied Irish Banks, p.l.c., together with its subsidiaries --
http://www.aibgroup.com/-- conducts retail and commercial banking
business in Ireland.  It also provides corporate lending and
capital markets activities from its head office at Bankcentre and
from Dublin’s International Financial Services Centre.  The Group
also has overseas branches in the United States, Germany, France
and Australia, among other locations.  The business of AIB Group
is conducted through four operating divisions: AIB Bank Republic
of Ireland division, Capital Markets division, AIB Bank UK
division, and Central & Eastern Europe division.  In February
2008, the Group acquired the AmCredit mortgage business in the
Baltic states of Latvia, Lithuania and Estonia.  In September
2008, the Group also acquired a 49.99% shareholding in BACB.

                         *      *      *

Allied Irish Banks plc continues to carry a 'D' individual rating
from Fitch Ratings.  The rating was downgraded by Fitch to its
current level from 'C' in February 2009.


BANK OF IRELAND: Irish Gov't. Records EUR824MM Profit on Bailout
----------------------------------------------------------------
Conor Keane at Irish Examiner reports that Ireland has gained
EUR824 million from its rescue of Bank of Ireland and Allied Irish
Banks.

The state holds options on a 25% stake in each of the bank.

"There is already an EUR825 million benefit to taxpayers from
recovery in the market value of Allied Irish Bank and Bank of
Ireland," Irish Examiner quoted Bloxham stockbrokers' Kevin
McConnell as saying.  "This is apart from the benefit of the
annual 8% yield from the EUR7 billion injection into the two main
banks, which adds a further EUR560 million to the return per
annum."

On Aug. 25, 2009, the Troubled Company Reporter-Europe, citing The
Scotsman, reported Ireland's finance minister ruled out fully
nationalizing either Allied Irish Banks or Bank of Ireland
following the creation of a "bad bank".  According to the
Scotsman, the Irish government may end up with a majority stake in
its top two lenders if it has to boost their capital levels
following the transfer of property loans to the "bad bank".

Bank of Ireland -- http://www.bankofireland.com/-- headquartered
in Dublin, provides a range of banking and other financial
services.  These include checking and deposit services,
overdrafts, term loans, mortgages, business and corporate lending,
international asset financing, leasing, installment credit, debt
factoring, foreign exchange facilities, interest and exchange rate
hedging instruments, executor, trustee, life assurance and pension
and investment fund management, fund administration and custodial
services and financial advisory services, including mergers and
acquisitions and underwriting.  The Company organizes its
businesses into Retail Republic of Ireland, Bank of Ireland Life,
Capital Markets, UK Financial Services and Group Centre.  It has
operations throughout Ireland, the United Kingdom, Europe and the
United States.

                       *      *      *

As reported in the Troubled Company Reporter-Europe on June 30,
2009, Standard & Poor's Ratings Services said that it raised its
ratings on two hybrid securities issued by subsidiaries of the
Bank of Ireland (trading name of the Governor and Company of the
Bank of Ireland; A/Watch Neg/A-1) to 'B' from 'C'

The Troubled Company Reporter-Europe on June 8, 2009, that Moody's
Investors Service downgraded Bank of Ireland's non-cumulative
preference shares and hybrids downgraded to B3 (neg) from B1
(developing).  The bank's cumulative Tier 1 hybrids were affirmed
at B1, the outlook was changed to negative from developing.  BoI
continues to carry a 'D' bank financial strength rating from
Moody's with negative outlook.


INDEPENDENT NEWS: Gets Approaches From Potential Investors
----------------------------------------------------------
Amanda Andrews at The Daily Telegraph reports that Independent
News & Media plc has received a "number of approaches" from
companies interested in taking a stake in the group.

The Daily telegraph relates sources close to the group confirmed
on Monday that German media group Axel Springer was one party
interested in helping the group by taking a large stake and
backing an emergency rights issue.

According to the Daily Telegraph, Denis O'Brien, the activist
shareholder with a 26% stake in INM, is willing to offer EUR40
million (GBP35 million) to EUR60 million of his own cash to prop
up the group.   The Daily Telegraph discloses insiders said Mr.
O'Brien would be keen to use the money to back a EUR100 million
emergency rights issue.  The Daily Telegraph notes sources close
to Mr O'Brien confirmed that he will invest more money in the
company if he gains the support of other shareholders for a
radical shake-up of the company.

On Sept. 4, 2009, the Troubled Company Reporter-Europe, citing The
Financial Times, reported Mr. O'Brien  called for an extraordinary
general meeting to vote on the disposal or closure of The
Independent and Independent on Sunday newspapers.  Mr. O'Brien
also called for a halt to the disposal of the South African
outdoor advertising business.  The shareholder also 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.

                          Standstill

The he 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.

                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.


IRISH LIFE: Fined by Financial Regulator Over Reporting Breach
--------------------------------------------------------------
The Financial Regulator has entered into a Settlement Agreement,
with effect from September 3, 2009, with Irish Life & Permanent
plc in relation to breaches of regulatory reporting requirements.

The Financial Regulator has reasonable cause to suspect that Irish
Life & Permanent's internal control mechanisms failed to ensure
the accuracy of certain regulatory reports in respect of its
banking business provided to the Financial Regulator.

The Financial Regulator reprimanded Irish Life & Permanent and
required it to pay a monetary penalty in the sum of EUR600,000.

This matter was detected by Irish Life and Permanent plc and
promptly notified to the Financial Regulator on March 3, 2009.

The Financial Regulator confirms that Irish Life and Permanent
fully co-operated with the Financial Regulator and has been open
and transparent throughout the examination.  Irish Life and
Permanent took prompt and complete remedial action to fully
rectify the breaches.  The matter is now closed.

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- is a provider of personal
financial services to the Irish market.  Its business segments
include banking, which provides retail banking services; insurance
and investment, which includes individual and group life assurance
and investment contracts, pensions and annuity business written in
Irish Life Assurance plc and Irish Life International, and the
investment management business written in Irish Life Investment
Managers Limited; general insurance, which includes property and
casualty insurance carried out through its associate, Allianz-
Irish Life Holdings plc, and other, which includes a number of
small business units.  On June 30, 2008, it acquired the rest of
the 50% interest in Joint Mortgage Holdings No. 1 Limited (the
parent of Springboard Mortgages Limited), resulting in Springboard
Mortgages becoming a wholly owned subsidiary.  On December 23,
2008, it acquired an additional 23% of Cornmarket Group Financial
Services Ltd, bringing its interest to 98%.

                       *     *     *

As reported in the Troubled Company Reporter-Europe on July 9,
2009, Moody's Investors Service downgraded Irish Life &
Permanent's undated subordinated debt to Ba1 from Baa3.  Moody's
said the outlook is negative.  The outlook on the undated
subordinated debt rating of Irish Life & Permanent is negative.
This is in line with the outlook on its D BFSR.


ULSTER BANK: Royal Bank of Scotland Pumps EUR1.1 Billion
--------------------------------------------------------
Ian Guider at Bloomberg News reports that Royal Bank of Scotland
Group Plc has injected about EUR1.1 billion (US$1.54 billion) into
its Ulster Bank unit.

Citing filings at Ireland's Companies' Registration Office in
Dublin, Bloomberg discloses the bank pumped EUR280 million into
Ulster Bank Ireland Ltd. on July 31.  According to Bloomberg, the
filings show almost EUR500 million was sent on Feb. 27 and EUR300
million at June 30.

Bloomberg relates the Dublin-based bank posted a first-half
operating loss of EUR8 million after a nine-fold surge in bad
loans following the collapse of the country's property market.
Ulster Bank, Bloomberg says, is shedding jobs and closing its
First Active mortgage lending unit to stem the losses.

                              Loss

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

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

                            About RBS

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

                         About Ulster Bank

Ulster Bank Group -- http://www.ulsterbank.ie/-- is na wholly
owned subsidiary of the enlarged RBS group.  First Active, a
leading mortgage provider, was acquired by Ulster Bank Group in
January 2004 in a EUR887 million transaction.  Serving personal
and small business customers, Ulster Bank Retail Markets provides
Branch Banking and Direct Banking throughout the Republic of
Ireland and Northern Ireland.  Ulster Bank Corporate Markets
caters for the banking needs of business and corporate customers,
treasury and money market activities, asset financing, wealth
management, ebanking and international services, with a continued
focus on providing customer choice and value.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Aug. 7,
2009, Moody's Investors Service upgraded the bank financial
strength ratings of Ulster Bank, Ulster Bank Ireland Ltd. and
First Active plc upgraded to D+ (mapping to a baseline credit
assessment of Baa3) from D (BCA: Ba2).


ZOE GROUP: High Court to Decide on Examinership Bid Tomorrow
------------------------------------------------------------
Independent.ie reports that High Court Judge Frank Clarke is
expected to decide tomorrow on an application for the appointment
of an examiner to seven companies controlled by Liam Carroll's Zoe
Group.

Independent.ie relates on Monday lawyers for Zoe Group argued that
ACC had not shown that it would do any better in an insolvency
scheme if the application for an examiner were to be turned down.

As reported in the Troubled Company Reporter-Europe on Aug. 25,
2009,  Mr. Carroll's development group, which has bank debts of
EUR1.2 billion, is seeking the appointment of an examiner after
ACC, which is owned by Dutch banking group Rabobank, demanded
immediate repayment of EUR136 million in debts.


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


GONZAGA FINANCE: Moody's Lifts Rating on Class C Notes From 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Gonzaga Finance S.r.l.

  -- EUR44,800,000 Class B Asset Backed 6.50 per cent notes due 20
     July 2014, Upgraded to Aaa; previously on February 28, 2006
     Upgraded to Aa1

  -- EUR28,500,000 Class C Asset Backed Floating Rate notes due 20
     July 2014, Upgraded to Aaa; previously on February 28, 2006
     Upgraded to Ba1

This transaction is a static cash collateralized bond obligation
with exposure to predominantly European corporate, sovereign and
financial sector bonds which closed in October 2000.  The
portfolio has amortized substantially since closing, with Classes
A1/A2/A3/A4 aggregating to about EUR629 million having been
redeemed in full.

The rating actions reflect the EUR47.2 million of available cash
and the Baa2 average credit quality of the EUR70.5 million of
bonds in the portfolio which are all publicly rated; together,
these provide for approximately 63% over-collateralization for the
rated notes above.  Barring defaults, scheduled maturities for the
remaining bonds in the pool should allow for full redemption of
the Class B notes by April 2010 and Class C notes by July 2010.

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, and specific documentation
features.  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.


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


AGS IMPEX: Creditors Must File Claims by September 11
-----------------------------------------------------
Creditors of LLP AGS Impex have until September 11, 2009, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Micro District 4, 1-89
         Taldykorgan
         Almaty
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
May 29, 2009, after finding it insolvent.


ALSEKO LLP: Creditors Must File Claims by September 11
------------------------------------------------------
Creditors of LLP Company Alseko have until September 11, 2009, to
submit proofs of claim to:

         Micro District 4, 1-89
         Taldykorgan
         Almaty
         Kazakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on June 3, 2009 after
finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Almaty region
         Tauelsyzdyk Str. 53
         Taldykorgan
         Almaty
         Kazakhstan


ATYRAU PROM: Creditors Must File Claims by September 11
-------------------------------------------------------
Creditors of LLP Atyrau Prom Hydro Stroy have until September 11,
2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         Satpaev Str. 3
         Atyrau
         Kazakhstan

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


BTA BANK: Creditors to Lose Up to 82.25% Under Restructuring Plan
-----------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that creditors of BTA
Bank may lose as much as 82.25% under a debt restructuring plan
proposed by the lender.

According to Bloomberg, the bank, which offered to restructure
US$10.3 billion of debts following its default earlier this year,
proposed four options, including paying a maximum of US$1 billion
to buy back debt at 17.75% of face value.

Bloomberg says the restructuring proposal is part of a broader
business plan for BTA that assumes Samruk Kazyna, the state
bailout fund, will convert KZT683 billion (US$4.53 billion) of
deposits and subordinated debt into equity.  The plan, Bloomberg
notes, includes a proposal for a so-called bad bank that will hold
KZT2.1 trillion of loans to retail, corporate and small and mid-
size business customers.

Citing the business plan, Bloomberg discloses the bank needs 55%
of creditors to accept the cash buyback option for the debt
restructuring plan to be successful.

According to Bloomberg, the other options available to creditors
include swapping their holdings for seven-year debt at a 60%
discount and reduced interest.  The bank said it needed 15% of
creditors to accept this option, Bloomberg notes.

Creditors, Bloomberg says, can also roll over their holdings into
15-year subordinated debt at no discount and a reduced interest
rate.  The bank needs about 10% of creditors to accept this
option, Bloomberg states.  Finally, BTA offered to convert debt
into equity at an 80% discount, Bloomberg discloses.  The bank, as
cited by Bloomberg, said 20% participation was needed for this
option.

BTA must submit restructuring plan to the Kazakh financial
watchdog by Sept. 18, Bloomberg notes.

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.  The Bank has in its
offer personal banking services, comprised of current accounts,
savings accounts, term deposits, safety deposit boxes, money
transfer services, credit facilities, and corporate banking
services, including business accounts, credit facilities, treasury
services, letters of guarantee, letters of credit, foreign
exchange services, remittances and other solutions, as well as
debt and credit cards, card services and electronic banking
services.  The Bank has 14 subsidiaries and six affiliated
companies.  It offers its services through a network of numerous
regional branches, cash settlement centers throughout Kazakhstan
and international representative offices located in Ukraine,
Russia, China and the United Arab Emirates.


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

         Satpaev Str. 136-208
         Pavlodar
         Kazakhstan

The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on June 8,
2009 after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Djambulskaya Str. 6
         Pavlodar
         Kazakhstan


INERT KURYLYS: Creditors Must File Claims by September 11
---------------------------------------------------------
Creditors of LLP Inert Kurylys have until September 11, 2009, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         Satpaev Str. 3
         Atyrau
         Kazakhstan

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


KAIRAT ALMATY: Creditors Must File Claims by September 11
---------------------------------------------------------
Creditors of JSC Kairat Almaty 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 3, 2009.


KASKYR SECURITY: Creditors Must File Claims by September 11
-----------------------------------------------------------
Creditors of LLP Security Firm Kaskyr Security have until
September 11, 2009, to submit proofs of claim to:

         Satpaev Str. 136-208
         Pavlodar
         Kazakhstan

The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on June 9,
2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Djambulskaya Str. 6
         Pavlodar
         Kazakhstan


MANK MARKET: Creditors Must File Claims by September 11
-------------------------------------------------------
Creditors of LLP Mank Market 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 3, 2009.


ULUSAL INSHAAT: Creditors Must File Claims by September 11
----------------------------------------------------------
The branch of Company Ulusal Inshaat Taahut Sanayi ve Tidjaret
Limited Shirketi is currently undergoing liquidation.  Creditors
have until September 11, 2009, to submit proofs of claim to:

         Jeltoksan Str. 37/1-3
         Astana
         Kazakhstan


VK INVEST: Creditors Must File Claims by September 11
-----------------------------------------------------
Creditors of LLP VK Invest Commerce Group have until September 11,
2009, to submit proofs of claim to:

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

The court commenced bankruptcy proceedings against the company on
May 22, 2009.


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


LYONDELL CHEMICAL: Asks Court to Halt Suits on Non-Filed Units
--------------------------------------------------------------
The U.S. Bankruptcy Court will convene a hearing today, September
8, to consider Lyondell Chemical Co.'s request to stop holders of
US$1.3 billion of two issues of notes due 2015 from taking
collection against European affiliates not in bankruptcy.
Lyondell contends that forcing the currently non-bankrupt
affiliates to begin insolvency proceedings abroad will lead to a
loss of control over "operating companies in Europe that are vital
to their reorganization efforts," Bloomberg News reported.

According to Bloomberg, Lyondell, if it succeeds in stopping the
noteholders, says it will file a reorganization plan by Sept. 15,
proposing to exchange debt for new stock.  The holders of the 2015
notes, though, are "hopelessly out of the money," according to
Lyondell, and don't stand to receive anything under the plan.
They play the role of "spoilers," the company says.

                      About Lyondell Chemical

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

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

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

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

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

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


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


* ROMANIA: Corporate Insolvency Cases Up 70% in Jan-Jul 2009
------------------------------------------------------------
Financiarul.ro, citing data released by the Romanian National
Union of Insolvency Practitioners, reports that the number of
corporate insolvency cases in Romania increased by about 70% from
January through July 2009, compared with the same interval a year
before.

According to Financiarul.ro, at July 15, 14,300 new insolvency
cases were recorded, against 14,500 in 2008,

Financiarul.ro relates UNPIR head Arin Stanescu of Stanescu, as
quoted by Ziarul financiar daily, said "The most affected field is
the commercial one, followed by investments in real estate,
constructions and textiles".


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


EUROCHEM MINERAL: Fitch Affirms Issuer Default Rating at 'BB'
-------------------------------------------------------------
Fitch Ratings has affirmed Russia-based OJSC EuroChem Mineral and
Chemical Company's Long-term Issuer Default rating and senior
unsecured debt rating at 'BB' respectively.  The Short-term IDR is
affirmed at 'B'.  The Outlook on the Long-term IDR has been
revised to Negative from Stable.

The rating action reflects Fitch's view that Eurochem's financial
profile does not provide much headroom for a further deterioration
in market conditions, or for additional spending outside its
planned investment program.

The sharp drop in global fertilizer prices and demand from the
record highs of Q308 caused EuroChem's sales to decline by 34.7%
y-o-y to RUB36.5 billion in H109, while its EBITDA margin declined
to 18.6% from 43.2% a year earlier.  Funds from operations fell
60.8% to RUB6.8 billion.  At the same time, net debt increased to
RUB41.1 billion from RUB2.3 billion as of September 30 2008,
mostly due to an aggressive investment strategy against the weak
economic backdrop.  The group secured a US$1.5 billion (RUB43.5
billion) four-year pre-export finance facility in September 2008,
the bulk of which was used to acquire a 12.51% stake in German
potash and salts producer K+S AG worth RUB31.2 billion (59.8% of
company's gross debt) between October 2008 and April 2009.  Cash
flow from operations was RUB11.3 billion in the nine months to
June 30 2009, against capex of RUB13.1 billion.  With limited
visibility on the near term fertilizer outlook, monthly
amortizations of US$35 million (RUB1.1 billion) under the PXF
facility and an estimated RUB44 billion to be spent on its potash
project between 2009 and 2012, with peak spending in 2010 and
2011, Fitch believes that EuroChem's financial metrics and
financial flexibility could come under pressure in the next 12-18
months.

EuroChem's net debt/LTM EBITDA increased to 1.6x at June 30, 2009,
from 0.1x at September 30, 2008.  Fitch forecasts net leverage at
2.5-3.0x for FY09 based on expectations of a moderate recovery in
fertilizer demand in Q309 on the back of seasonal and lag effects.
However, the agency stresses that its forecast does not factor in
any cash inflow from the possible sale of some of EuroChem's
shares in K+S, which are currently valued at around EUR740 million
or 64% of gross debt, and offer some flexibility to restore net
leverage below covenant levels on the PXF facilities and Eurobonds
should they come under pressure.  Covenant compliance is therefore
not an immediate concern.  Liquidity is considered adequate with
cash balances of RUB11.1 billion at June 30 2009 and unused bank
facilities of around US$550 million (RUB17.1 billion).  Fitch
understands that EuroChem is in the process of securing long-term
financing for its capex program, with ECA-backed (Export Credit
Agency) funding under consideration.

The agency forecasts a gradual reduction in net leverage by 2012,
based on growth in operating earnings as demand recovers and
ongoing projects (melamine, granulated urea, calcium ammonium
nitrate) come fully onstream.  Unexpected, material debt-funded
spending resulting in further pressure on leverage or a protracted
downturn in the fertilizer market with operating performance
sustained around H109 levels could result in a negative rating
action.

EuroChem's ratings continue to be supported by its leading market
positions in the growing Russian fertilizer sector, strong product
and market diversification, its strategic focus on productivity
gains and vertical integration, and positive cash flow generation
-- aided in FY09 by working capital relief.  Fitch also takes a
positive view on EuroChem's progress towards expansion into potash
as it should enhance the company's business risk profile in the
long-term, with diversification away from nitrogen fertilizers and
natural gas price volatility post market-deregulation.  Fitch sees
supply-driven risk in the medium term in nitrogen fertilizers,
with new capacity in the Middle East and Asia likely to put
pressure on prices after 2010.  The agency also notes that other
greenfield potash projects announced in Russia are still in the
initial stages of feasibility studies.

While Fitch believes that strong agricultural drivers will support
the medium to long-term demand fundamentals of the fertilizer
sector, some uncertainties remain in the near term, in particular
with regards to the timing and pace of the economic recovery, the
effect of reduced fertilizer consumption on crop yields in
2009/10, the level of inventories in the distribution pipeline,
and potentially ongoing changes in farmers' fertilizer usage as a
result of the downturn, with a return to under-utilization of
phosphate and potash fertilizers.  Market participants estimate
that the economic and financial crisis has effectively removed two
years of growth from the fertilizer sector with the level of
consumption of 2007 expected to be reached in 2011, provided that
a recovery occurs in 2010.


MONOLIT-STROY LLC: Udmurtia Bankruptcy Hearing Set September 15
---------------------------------------------------------------
The Arbitration Court of Udmurtia will convene at 1:00 p.m. on
September 15, 2009, to hear bankruptcy supervision procedure on
LLC Monolit-Stroy (TIN 1835063612) (Construction).  The case is
docketed under Case No. ?71–2828/2009 (G15).

The Temporary Insolvency Manager is:

         M. Luchikhin
         50 let Oktyabrya Sq.2
         Izhevsk
         426034 Udmurtia
         Russia

The Court is located at:

         The Arbitration Court of Udmurtia
         Lomonosova Str. 5
         Izhevsk
         426011 Udmurtia
         Russia

The Debtor can be reached at:

         LLC Monolit-Stroy
         M. Gorkogo Str. 59
         426000 Izhevsk
         Udmurtia
         Russia


RZHEVSKIY CONSTRUCTION: Tverskaya Bankruptcy Hearing Set Sept. 15
-----------------------------------------------------------------
The Arbitration Court of Tverskaya will convene at 2:30 p.m. on
September 15, 2009, to hear bankruptcy supervision procedure on
OJSC Rzhevskiy Construction Crane Manufacturing Plant (TIN
6914009688, PSRN 1026901849611).  The case is docketed under Case
No. ?66–2461/2009.

The Temporary Insolvency Manager is:

         P. Nizov
         Post User Box 121
         Postal Office 100
         170100 Tver
         Russia

The Court is located at:

         The Arbitration Court of Tverskaya
         Sovetskaya Str. 23B
         Tver
         Russia

The Debtor can be reached at:

         OJSC Rzhevskiy Construction Crane Manufacturing Plant
         Kranostroitelnaya Str. 32
         Rzhev
         172386 Tverskaya
         Russia


SEVERSTAL OAO: Posts US$290 Mln Net Loss in Second Quarter 2009
---------------------------------------------------------------
Ilya Khrennikov at Bloomberg News reports that OAO Severstal
posted a US$290 million net loss in the second quarter of 2009,
compared with net income of US$1.5 billion a year earlier.

According to Bloomberg, the company's third consecutive net loss
included a US$167 million foreign exchange gain.  Bloomberg says
Company sales fell 54% to US$2.85 billion.

Bloomberg notes no dividend was proposed for the quarter and
Severstal said it doesn't expect to make any full-year payment.

                        North American Unit

Severstal, as cited by Bloomberg, said it's finalizing a strategy
for its unprofitable North American unit and will hold on to the
most efficient operations.

Bloomberg relates the company said in a statement the unit had a
loss of US$236 million before interest, tax, depreciation and
amortization in the second quarter.

"We are committed to operating in North America," Bloomberg quoted
Severstal as saying in the statement.  We "will retain our most
efficient units with a view to making them even more flexible and
efficient."

Headquartered in Cherepovets, Russia, Severstal OAO, through its
subsidiaries -- http://www.severstal.com/-- operates in seven
segments.  The mining segment comprises iron ore and coal mining
complexes and gold mining assets.  The Russian Steel segment
comprises the Company's steel production and automotive
galvanizing facilities.  The Lucchini segment comprises plants and
service centers, including Piombino and Ascometal business units.
The North America segment consists of two integrated iron and
steel mills.  Izhora Pipe Mill operates a large-diameter pipe mill
in Northwest Russia.  The Metalware segment comprises plants
containing wire drawing equipment that takes long products from
the Russian Steel and Lucchini segments and external suppliers and
turns them into products with a higher value for the Russian and
International markets.  The Financing segment, until November
2007, operated a retail bank.  In December 2008, the Company
acquired ZAO Trade House Severstal – Invest.  In January 2008, it
acquired baracom Limited.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on July 23,
2009, Fitch Ratings downgraded Russia-based metals and mining
company OAO Severstal's Long-term Issuer Default Rating and senior
unsecured rating to 'B+' from 'BB-'.  At the same time, the agency
downgraded the company's National Long-term rating to 'A(rus)'
from 'A+(rus)'.  Fitch said the ratings remain on Rating Watch
Negative.  The Short-term IDR is affirmed at 'B'.  The Recovery
Rating for the senior unsecured debt is 'RR4'.

On July 21, 2009, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services said that it lowered to
'BB-' from 'BB' its long-term corporate credit and senior
unsecured debt ratings on Russia-based steel producer OAO
Severstal.  At the same time, the Russia national scale rating on
Severstal was lowered to 'ruAA-' from 'ruAA'.  S&P has removed all
the ratings from CreditWatch, where they were placed with negative
implications on May 27, 2009.  S&P said the outlook is negative.


SORMOVSKAYA KUZNITSA: Bankruptcy Hearing Set September 15
---------------------------------------------------------
The Arbitration Court of Nizhegorodskaya will convene at 2:30 p.m.
on September 15, 2009, to hear bankruptcy supervision procedure on
LLC Sormovskaya Kuznitsa(Metallurgy) (TIN 5259061842, PSRN
1065259038404).  The case is docketed under Case No. ?43–6584/2009
33–88.

The Temporary Insolvency Manager is:

         V. Vilkov
         Office 2
         Delovaya Str. 1
         603093 Nizhny Novgorod
         Russia

The Debtor can be reached at:

         LLC Sormovskaya Kuznitsa
         Sormovskoe shosse 21
         603052 Nizhny Novgorod
         Russia


STANKO-LES LLC: Udmurtia Bankruptcy Hearing Set September 15
------------------------------------------------------------
The Arbitration Court of Udmurtia will convene at 11.00 a.m. on
September 15, 2009, to hear bankruptcy supervision procedure on
LLC Stanko-Les (TIN 1831095660, PSRN 104180025540) (Wood-
Processing Equipment).  The case is docketed under Case No. ?71-
4503/2009-15.

The Temporary Insolvency Manager is:

         M. Fedotovskiy
         Post User Box 321
         620014 Yekaterinburg
         Russia

The Debtor can be reached at:

         LLC Stanko-Les
         Office 311B
         M. Gorkogo Str. 79
         Izhevsk
         Russia


TVER PIPE: Tverskaya Bankruptcy Hearing Set September 15
--------------------------------------------------------
The Arbitration Court of Tverskaya will convene at 10:30 a.m. on
September 15, 2009, to hear bankruptcy supervision procedure on
LLC Tver Pipe Manufacturing Plant.  The case is docketed under
Case No. ?66–1760/2009.

The Temporary Insolvency Manager is:

         V. Rosnach
         Post User Box 0616
         Postal Office 100
         170100 Tver
         Russia

The Court is located at:

         The Arbitration Court of Tverskaya
         Sovetskaya Str. 23B
         Tver
         Russia

The Debtor can be reached at:

         LLC Tver Pipe Manufacturing Plant
         Bochkina Str. 23
         Tver
         Russia


* VOLGOGRAD OBLAST: S&P Assigns 'BB-' Long-Term Debt Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB-' long-term debt rating and 'ruAA-' Russia national scale
rating to the Russian ruble (RUR) 1 billion (about US$32.3
million) senior unsecured two-year amortizing bond to be issued by
the Volgograd Oblast (BB-/Stable/--; Russia national scale
'ruAA-').

"The ratings on the amortizing fixed-coupon bond mirror those on
the oblast," said Standard & Poor's credit analyst Irina Pilman.

The issue will be placed on Sept. 8, 2009.  It will have four
semiannual fixed coupon payments: the first coupon payment will be
defined through a tender, which will take place on the date of the
bond placement; the second payment will be equal to the first one;
and the third and fourth are fixed, based on the first one (equal
to the first coupon payment minus 1%).

The first 50% of the amortizing bond falls due on Sept. 7, 2010.
The rest falls due on Sept. 6, 2011.

The ratings on the Volgograd Oblast are constrained by the
oblast's restricted financial flexibility and predictability and
low wealth levels compared with those of its peers in the Russian
Federation (foreign currency BBB/Negative/A-3; local currency
BBB+/Negative/A-2; Russia national scale 'ruAAA').  Oblast
revenues are volatile because of taxpayer concentration, and S&P
believes the economic slowdown expected over 2009–2010 will freeze
their growth.

These constraints are offset by the oblast's low debt and prudent
debt management, in S&P's view, including the authorities'
commitment to keeping the debt burden low in the medium term.  The
administration's efforts to attract investment provide additional
support for the ratings.

S&P considers Volgograd Oblast's liquidity to be modest.  Free
cash of RUR0.4 billion as of July 1, 2009, is equivalent to only
about one week's 2009 operating expenditures.  The oblast has
RUR0.8 billion in refinancing needs in October-November 2009.  In
addition to the planned bond issue, the oblast intends to arrange
a RUR2 billion low-interest budget loan by the end of the year.
Standard & Poor's forecasts the oblast's direct debt will be a low
12% for full-year 2009 and debt service a moderate 7.6% of
operating revenues.


===============
S L O V E N I A
===============


ISTRABENZ D.D.: 30-Percent Price Movement Restrictions Retained
---------------------------------------------------------------
The Ljubljana Stock Exchange on Friday, Sept. 4, decided to retain
the temporarily implemented 30-percent price movement restrictions
from the last official average price on Istrabenz, d. d., Koper,
(ticker symbol: ITBG), Infond Holding, d. d., Maribor (ticker
symbol IFFR) and Center nalozbe, d. d., Maribor (ticker symbol:
IFHR).  The purpose of this measure is to facilitate the requisite
spread for adequate trading and enable the formation of market
prices, due to a noticed greater price volatility of trades in the
above mentioned shares.

The temporary restoration of the 30-percent restriction on the
price of ITBG, IFFR and IFHR shares will remain until the Periodic
Review of the Ljubljana Stock Exchange liquidity criteria will be
made (in March 2010), when the new classification in trading
methods willl be made in compliance with the results of the
Periodic Review.

                         Receivership

On July 13, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that a court in Koper started
receivership proceedings against the company.  The court appointed
Boris Dolamic as the receiver and named a credit committee made up
of nine banks owed money by the company.

As reported in the Troubled Company Reporter-Europe reported on
April 2, 2009, Reuters said Istrabenz was forced into insolvency
after it failed to reach a deal with its creditors over its debt.
According to Reuters, Istrabenz and its affiliated firms owe some
EUR950 million or US$1.26 billion to 19 banks, including a number
of Austrian banks, namely Bank Austria, Bawag, Hypo Alpe Adria and
the Kaertner Sparkasse.  Reuters disclosed the company posted a
net loss of EUR220.8 million (US$294.2 million) in 2008 as a
result of falls in the value of its capital investments.

Istrabenz dd -- http://www.istrabenz.si/-- is a Slovenia-based
holding responsible for the asset management and supervision of
the Istrabenz Group members.  The Company has developed
investments in the number of divisions: Energy, which covers the
gas business, production and distribution of energy, transshipment
and storage of oil derivatives; Tourism, which offers hotel,
catering, wellness and congress services; Investments, which deals
with advertising, financial services and technical consulting;
Food, which markets food products, and Information Technology that
provides information support to the companies of the Istrabenz
Group.  As of December 31, 2008 Istrabenz Group comprised 77
companies.  The Company operates a number of subsidiaries,
including wholly owned Istrabenz Turizem dd and Istrabenz Marina
Invest doo.


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


AIRCENTER INVEST: Claims Filing Deadline is September 11
--------------------------------------------------------
Creditors of AirCenter Invest AG are requested to file their
proofs of claim by September 11, 2009, to:

         Probst & Baumann
         Haselstrasse 1
         5400 Baden
         Switzerland

The company is currently undergoing liquidation in Baden.  The
decision about liquidation was accepted at a general meeting held
on July 6, 2009.


CATELLA AG: Claims Filing Deadline is September 14
--------------------------------------------------
Creditors of Catella (Switzerland) AG are requested to file their
proofs of claim by September 14, 2009, to:

         Dr. Martin Forster, liquidator
         Bahnhofstrasse 46
         Mail box: 1130
         8021 Zürich
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
general meeting held on June 24, 2009.


CHEMTURA CORP: Hires Deloitte AG as European Financial Advisor
--------------------------------------------------------------
Chemtura Corp. and its affiliates sought and obtained the U.S.
Bankruptcy Court's authority to employ Deloitte AG, as its
European financial advisory services provider, nunc pro tunc to
June 5, 2009.

As the Debtors' European financial advisor, Deloitte AG will:

  (a) assist the Debtors in understanding an appropriate
      methodology to the valuation of intercompany receivables,
      specifically intercompany receivables owed by the Debtors
      and held by Swiss entities in accordance with SWISS GAAP
      in Switzerland;

  (b) assist the Debtors in assessing the financial position of
      the relevant members of Chemtura Europe Group and
      preparing the interim balance sheet and appropriate
      supporting documentation that may be used in meeting its
      statutory audit responsibilities, if appropriate;

  (c) assist the Debtors in analyzing the cascading effect of
      the analysis in the context of the overall Chemtura Europe
      Group's indebtedness;


  (d) assist the Debtors in developing planning options to deal
      with and resolve any issues that might develop in the
      context of the Debtors' indebtedness, which options may
      include the solvent or insolvent restructuring of
      entities;

  (e) assist the Debtors in developing an understanding of the
      evidence that must be provided to its statutory auditors
      to support the value attributed to horizontal loans, cash
      pool receivables or payables and for other intercompany
      financing facilities;

  (f) assist the Debtors in developing an understanding of the
      different valuation approaches that might be available in
      the context of Swiss tax/statutory planning;

  (g) assist the Chemtura Europe Group to liaise with its
      statutory auditors in order to address their concerns
      regarding the "going concern" test with a view to
      obtaining unqualified and timely audited accounts in all
      European jurisdictions; and

  (h) assist the Debtors' legal counsel with respect to certain
      matters relevant to other tasks.

The Debtors will pay Deloitte AG's services on an hourly basis
and will reimburse the firm's actual and necessary out-of-pocket
expenses.  Deloitte AG's hourly rates are:

                           Europe Staff     United Kingdom Staff
                           ------------     --------------------
  Partner                    CHF818               GBP668
  Associate Partner          CHF716               GBP668
  Director                   CHF674               GBP559
  Assistant Director         CHF572               GBP454
  Manager                    CHF460               GBP405
  Senior                     CHF296               GBP188
  Assistant                  CHF126               GBP154

Howard Da Silva, a partner at Deloitte AG, assures the Court that
his firm is a "disinterested person" as the term is defined under
Section 101(14) of the Bankruptcy Code.

                   About Chemtura Corp.

Based in Middlebury, Connecticut, Chemtura Corporation (CEM) --
http://www.chemtura.com/-- with 2008 sales of US$3.5 billion, is
a global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.

Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 on March 18, 2009 (Bankr.
S.D.N.Y. Case No. 09-11233).  M. Natasha Labovitz, Esq., at
Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel.
Wolfblock LLP serves as the Debtors' special counsel.  The
Debtors' auditors and accountant are KPMG LLP; their investment
bankers are Lazard Freres & Co.; their strategic communications
advisors are Joele Frank, Wilkinson Brimmer Katcher; their
business advisors are Alvarez & Marsal LLC and Ray Dombrowski
serves as their chief restructuring officer; and their claims and
noticing agent is Kurtzman Carson Consultants LLC.

As of December 31, 2008, the Debtors had total assets of
US$3.06 billion and total debts of US$1.02 billion.

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


CORSIARO AG: Creditors Must File Claims by September 14
-------------------------------------------------------
Creditors of Corsiaro AG are requested to file their proofs of
claim by September 14, 2009, to:

         Dr. Andreas Diem
         Trottenstrasse 6
         8542 Wiesendangen
         Switzerland

The company is currently undergoing liquidation in Wiesendangen.
The decision about liquidation was accepted at a general meeting
held on March 25, 2009.


COS MANAGEMENT: Claims Filing Deadline is September 14
------------------------------------------------------
Creditors of COS Management AG are requested to file their proofs
of claim by September 14, 2009, to:

         COS Management AG
         Taefernstrasse 11
         5405 Baden-Daettwil
         Switzerland

The company is currently undergoing liquidation in Baden. T he
decision about liquidation was accepted at an extraordinary
general meeting held on July 7, 2009.


DR DRUCKEREI: Claims Filing Deadline is September 14
----------------------------------------------------
Creditors of DR Druckerei Richterswil AG are requested to file
their proofs of claim by September 14, 2009, to:

         OBT AG
         Hardturmstrasse 120
         8005 Zurich
         Switzerland

The company is currently undergoing liquidation in Richterswil.
The decision about liquidation was accepted at a general meeting
held on June 16, 2009.


HLP MANAGEMENT: Claims Filing Deadline is September 14
------------------------------------------------------
Creditors of HLP Management AG are requested to file their proofs
of claim by September 14, 2009, to:

         Walter H. Boss
         Liquidator
         Mail Box 865
         8034 Zurich
         Switzerland

The company is currently undergoing liquidation in Luzern.  The
decision about liquidation was accepted at an extraordinary
general meeting held on July 13, 2009.


KAUFHAUS STRAUSS: Claims Filing Deadline is September 11
--------------------------------------------------------
Creditors of Kaufhaus Strauss AG are requested to file their
proofs of claim by September 11, 2009, to:

         Robert Wuethrich
         Bachmattweg 8
         3400 Burgdorf
         Switzerland

The company is currently undergoing liquidation in Burgdorf.  The
decision about liquidation was accepted at an extraordinary
general meeting held on July 6, 2009.


MAX WUETHRICH: Claims Filing Deadline is September 14
-----------------------------------------------------
Creditors of Max Wuethrich AG are requested to file their proofs
of claim by September 14, 2009, to:

         Kurt Reist Treuhand und Revision AG
         Schifflaendestrasse 27 A
         5001 Aarau
         Switzerland

The company is currently undergoing liquidation in Unterentfelden.
The decision about liquidation was accepted at an extraordinary
general meeting held on July 9, 2009.


MONTAGUE GOLDSMITH: Creditors Must File Claims by September 14
--------------------------------------------------------------
Creditors of Montague Goldsmith AG are requested to file their
proofs of claim by September 14, 2009, to:

         Urs Steiger
         Oberer Muehlacker 11
         9450 Altstaetten
         Switzerland

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


PUBLIC IMAGE: Claims Filing Deadline is September 14
----------------------------------------------------
Creditors of Public Image AG are requested to file their proofs of
claim by September 14, 2009, to:

         Fierz Steuerberatung GmbH
         Rotbuchstrasse 68
         8037 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at a general meeting held
on June 12, 2009.


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


CENTRAL EUROPEAN: S&P Affirms Corporate Credit Rating at 'B'
------------------------------------------------------------
Standard and Poor's Ratings Services said that it affirmed its 'B'
long-term corporate credit rating on Bermuda-based emerging
markets TV broadcaster Central European Media Enterprises Ltd.
The outlook is negative.

S&P also affirmed at 'B' the debt ratings on CME's $475 million
senior convertible notes due 2013, EUR245 million notes due 2012,
and EUR150 million notes due 2014.  In addition, S&P assigned a
'B' issue rating to the EUR150 million bond issue due 2016
announced by CME, in line with the corporate credit rating.

The affirmation follows CME's launch of a EUR150 million fixed-
rate bond issue due in 2016, which the group states will mainly
contribute to the refinancing of its EUR127.5 million European
Bank for Reconstruction and development loans.  S&P understands
that the final terms for the bond are due to be set in the coming
days.

"In S&P's view, the new debt issue should further support CME's
liquidity, following the recently announced disposal of 49% of the
group's Ukrainian assets, which the group expects to finalize by
the end of the third quarter of 2009, subject to regulatory
approval," said Standard & Poor's credit analyst Manuela Gabetta.

However, the accelerating decline in CME's advertising revenues
since the beginning of 2009, the magnitude of the EBITDA shortfall
experienced in the same period, and S&P's expectation of a
deterioration in the group's leverage and cash flow generation
capacity remain negative credit factors, in S&P's view.  On
June 30, 2009, CME's reported gross consolidated debt was
US$1.3 billion.

CME's debt leverage has increased heavily of late, with Standard &
Poor's fully adjusted gross debt to EBITDA reaching 8.3x on
June 30, 2009, compared with 3.7x on Dec. 31, 2008.  This increase
is due to the combination of additional drawings on credit
facilities, pressures on profitability, and the depreciation of
local currency earnings against the U.S. dollar and euro.  CME
reports in dollars and the bulk of its debt is dollar- and euro-
denominated, giving rise to a mismatch in the currency mix of its
earnings.  The group only hedges interest, not principal, on its
debt.

For full-year 2009, S&P anticipates a decline in CME's advertising
revenues of a magnitude similar to that experienced in the second
quarter (39% year on year).  As a consequence, S&P estimates that
the group's adjusted leverage could reach double-digit multiples
by year-end 2009.  Moreover, S&P is mindful that the evolution of
the group's credit measures and its highly leveraged capital
structure remain heavily dependant on currency swings.

"The negative outlook reflects S&P's view that further year-on-
year revenue and EBITDA declines in the second half of 2009, and
possibly in 2010, will likely cause further rapid and significant
increases in CME's leverage ratios, and could cause further cash
burn at its start-up operations," said Ms.  Gabetta.

Although S&P assesses positively the active steps taken by CME to
fund the cash burn it envisages at its start–up operations in
Bulgaria and Ukraine, and to partly refinance the group's short-
term maturities, S&P sees the need for some additional comfort on
the evolution of CME's liquidity profile for the next 12 months in
the context of the current tough operating environment.

The rating could come under additional pressure if S&P's
assessment of CME's liquidity position were to materially
deteriorate from its current level in the next few quarters, as a
result of higher-than-anticipated cash burn or an aggressive
financial policy.

Given the likely pressure on CME's revenues in 2009 and S&P's view
of negative year-on-year EBITDA developments in the coming
quarters, S&P sees limited potential for a positive rating action
over the next 12 months.


ENEGRYTRANSINVEST HOLDING: Creditors Must File Claims by Sept. 12
-----------------------------------------------------------------
Creditors of LLC Enegrytransinvest Holding (code EDRPOU 34880104)
have until September 12, 2009, to submit proofs of claim to:

         A. Nesterenko
         Insolvency Manager
         Office 89
         Tampere Str. 17/2
         02105 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on July 31, 2009.  The case is docketed under
Case No. 50/396.

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 Enegrytransinvest Holding
         Kikvidze Str. 11
         01103 Kiev
         Ukraine


ITD SIAYVO: Creditors Must File Claims by September 12
------------------------------------------------------
Creditors of LLC ITD Siayvo (code EDRPOU 34620565) have until
September 12, 2009, to submit proofs of claim to LLC Multi-Globus,
the company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on August 7, 2009.  The case is docketed under
Case No. 50/588.

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 ITD Siayvo
         Makarovskaya Str. 4
         04107 Kiev
         Ukraine


KALINOVSKY MIXED: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Economic Court of Vinnitsa commenced bankruptcy supervision
procedure on LLC Kalinovsky Mixed Fodder Plant (code EDRPOU
00686530).

The Insolvency Manager is:

         A. Palshyn
         Druzhba Str. 14
         Bucha
         Kiev
         Ukraine

The Court is located at:

         The Economic Court of Vinnitsa
         Hmelnitsky Highway 7
         21100 Vinnitsa
         Ukraine

The Debtor can be reached at:

         LLC Kalinovsky Mixed Fodder Plant
         Kievskaya Str. 1
         Kordelovka
         Kalinovsky
         22455 Vinnitsa
         Ukraine


LUGBUILDINGINDUSTRY LLC: Creditors Must File Claims by Sept. 12
---------------------------------------------------------------
Creditors of LLC Lugbuildingindustry (code EDRPOU 34580381) have
until September 12, 2009, to submit proofs of claim to:

         A. Tkachenko
         Insolvency Manager
         Radiusnaya str. 3
         91024 Lugansk
         Ukraine

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company on August 4, 2009.  The case is docketed under
Case No. 22/38b.

The Court is located at:

         The Economic Court of Lugansk
         Heroes of GPW Square 3-a
         91000 Lugansk
         Ukraine

The Debtor can be reached at:

         LLC Lugbuildingindustry
         Tukhachevsky Str. 9
         Lugansk
         Ukraine


PRIORITET-SEL LLC: Creditors Must File Claims by September 12
-------------------------------------------------------------
Creditors of LLC Company Prioritet-Sel (code EDRPOU 34291010) have
until September 12, 2009, to submit proofs of claim to:

         State Tax Inspection in Desniansky District of Kiev
         Insolvency Manager
         Zakrevsky Str. 41
         02217 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on June 19, 2009.  The case is docketed under
Case No. 50/354.

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 Company Prioritet-Sel
         Krasnotkatskaya Str. 7
         02094 Kiev
         Ukraine


UPK HORIZONT: Creditors Must File Claims by September 12
--------------------------------------------------------
Creditors of LLC UPK Horizont (code EDRPOU 34002189) have until
September 12, 2009, to submit proofs of claim to LLC Ur-Brock-
Service, the company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on August 7, 2009.  The case is docketed under
Case No. 50/590.

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 UPK Horizont
         Pilipovsky Lane 14
         04060 Kiev
         Ukraine


VESELKA CJSC: Creditors Must File Claims by September 12
--------------------------------------------------------
Creditors of CJSC Veselka (code EDRPOU 31793035) have until
September 12, 2009, to submit proofs of claim to:

         M. Vakulina
         Insolvency Manager
         Office 46
         Sovetskaya Str. 43
         Novomoskovsk
         Dnepropetrovsk
         Ukraine

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company on August 6, 2009.  The case is
docketed under Case No. B24/283-09.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Veselka
         Budenny Str. 2A
         49600 Dnepropetrovsk
         Ukraine


VODOGRAY LLC: Creditors Must File Claims by September 12
--------------------------------------------------------
Creditors of LLC Trading Union Vodogray (code EDRPOU 34619942)
have until September 12, 2009, to submit proofs of claim to LLC
Lavidin, the company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on August 7, 2009.  The case is docketed under
Case No. 50/589.

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 Union Vodogray
         Schusev Str. 10
         04060 Kiev
         Ukraine


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


BRITISH AIRWAYS: Says EU Unlikely to Relax Slot Rules for Winter
----------------------------------------------------------------
Kaveri Niththyananthan at Dow Jones Newswires reports that George
Stinnes, British Airways plc's group treasurer and head of
investor relations, said Thursday the European Union is unlikely
to relax take-off and landing slot rules for the winter season.

According to Dow Jones, under the E.U.'s 80/20 rule, an airline
loses its slot if it doesn't use it at least 80% of the time.

Dow Jones relates Mr. Stinnes, said the U.K. carrier's winter
program is already in place and has been "set in the context of
not seeing any alleviation in slot rules."

                             New Routes

Steve Rothwell at Bloomberg News reports BA will use planes freed
up by the slump in business travel to start flying to longhaul
leisure destinations such as Las Vegas, Jamaica and the Maldives.

Bloomberg discloses five of the six new routes that the
London-based carrier will begin for its winter timetable are to
vacation hotspots, including Sharm El-Sheikh on the Red Sea and
Punta Cana in the Dominican Republic.  Initial bookings are "very
encouraging," Bloomberg quoted Richard Tams, head of U.K. sales,
as saying in an interview.

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

                       About British Airways

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

                           *     *     *

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


CORSAIR NO 2: S&P Downgrades Rating on Series 95 CDO Notes to 'BB'
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB' from 'BB+' and
kept on CreditWatch negative its rating on the series 95
collateralized debt obligation notes issued by Corsair (Jersey)
No. 2 Ltd.

The rating action follows S&P's discovery of an administrative
error, which meant S&P downgraded these notes to an incorrect
rating level on Sept. 3.

The downgrade follows S&P's assessment of deterioration in the
underlying reference portfolio, which has led to asset downgrades
in the portfolio in recent months.


DSG INTERNATIONAL: Shareholders Back Executive Incentive Scheme
---------------------------------------------------------------
Andrea Felsted and Adam Jones at The Financial Times report that
shareholders of DSG International plc backed the company's
executive incentive scheme.

According to the FT, the company said that 87.21% of the votes
cast were in favor of the scheme, with 12.79% against.

The scheme, the FT says, enables executives to sacrifice up to 25%
of their salaries in exchange for share options.  However, unlike
the retailer's other plans, it is not based on the participants'
performance, the FT notes.

On Aug. 27, 2009, the Troubled Company Reporter-Europe, citing the
FT, reported Pirc, the investor advisory service, voiced
opposition to the scheme as it "believes that the waiving of
performance conditions for financial year 2009-10 does not align
the interests of shareholders with those of senior management, as
rewards will be granted in spite of poor performance".

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.


GLOBAL CROSSING: UK Unit Has GBP210-Mil. Total Deficit at June 30
-----------------------------------------------------------------
Global Crossing Limited unveiled second quarter results for its
subsidiary, Global Crossing (UK) Telecommunications Limited.

As of June 30, 2009, GCUK had GBP302.1 million in total assets and
GBP513.1 in total liabilities and GBP210.9 in net liabilities.

As of June 30, 2009, GCUK had cash and cash equivalents of
GBP17 million compared with GBP33 million at March 31, 2009, and
GBP27 million at June 30, 2008.  GCUK had accumulated deficit of
GBP242.7 million and total deficit of GBP210.9 million as of
June 30, 2009.

GCUK generated revenue of GBP77 million, a decrease of
GBP1 million or 2%, sequentially and a decrease of GBP3 million or
4% on a year-over-year basis.  The sequential decrease in revenue
was primarily due to lower equipment sales compared to the
previous quarter.  The year-over-year decrease in revenue was
primarily due to attrition from the Camelot contract, partially
offset by growth from other customers across the Company's
enterprise and carrier sales channels.  For the six months ended
June 30, 2009, a year-over-year decline in revenue from the
Camelot relationship of GBP12 million was largely offset by
revenue growth from other customers across our enterprise and
carrier sales channels of GBP9 million.

Cost of revenue, which includes cost of access, technical real
estate, network and operations, third party maintenance and cost
of equipment sales, was GBP54 million for the quarter, compared
with GBP52 million in the prior quarter and GBP51 million in the
second quarter of 2008.  The sequential increase was primarily due
to the impact of a GBP3 million retroactive real estate tax
assessment revision for the cumulative period of December 2006
through June 2009.  The year-over-year increase was primarily due
to the real estate tax assessment.

Sales, general and administrative expenses were GBP10 million for
the quarter, an increase of GBP1 million from the prior quarter
and essentially flat on a year-over-year basis.  The sequential
increase was primarily due to higher restructuring provisions for
real estate.

GCUK's Operating Income Before Depreciation and Amortization for
the second quarter was GBP12 million, compared with GBP17 million
in the first quarter of 2009 and GBP20 million in the second
quarter of 2008.  The sequential decrease in OIBDA was primarily
due to lower gross margin from equipment sales, higher real estate
taxes and higher restructuring provisions for real estate.  The
year-over-year decrease in OIBDA was due to lower revenue,
primarily due to the attrition of the Camelot contract, and higher
real estate taxes.

GCUK recorded net income of GBP10 million for the second quarter
of 2009, compared with a net loss of GBP2 million in the first
quarter of 2009 and net income of GBP1 million in the second
quarter of 2008.  In addition to the variances, the increase in
net income was primarily due to foreign exchange gains on the
GCUK's U.S. dollar-denominated Senior Secured Notes in the second
quarter of 2009 as compared with the prior comparable quarters.

Net cash used in operating activities during the second quarter
totaled GBP12 million after operating working capital use of
GBP8 million pounds and interest paid of GBP16 million.  GCUK's
cash and cash equivalents decreased by GBP16 million in the second
quarter, after purchases of property, plant and equipment of
GBP4 million and principal payments on finance leases and other
debt obligations of GBP2 million.

In accordance with the indenture governing the senior secured
notes, the company repurchased GBP7 million of the Senior Secured
Notes, excluding accrued interest, on May 29, 2009.  To support
this debt repurchase and other working capital needs, GCUK
borrowed GBP10 million from GC Impsat during the quarter.

"Demand for our value-added products and services continue to be
robust despite a challenging economic and competitive
environment," said John Legere, Global Crossing's chief executive
officer.  "We continue to see healthy levels of new orders and
good opportunities in the UK market as customers pursue
productivity gains and cost reductions through the deployment of
advanced IP-based networking solutions."

The results were prepared in accordance with International
Financial Reporting Standards and presented in U.S. Generally
Accepted Accounting Principles (U.S. GAAP) format.

A full-text copy of GCUK's earnings release is available at no
charge at http://ResearchArchives.com/t/s?444e

                    About Global Crossing (Uk)

Global Crossing (UK) Telecommunications Limited provides a full
range of managed telecommunications services in a secure
environment ideally suited for IP-based business applications.
The company provides managed voice, data, Internet and e-commerce
solutions to a strong and established commercial customer base,
including more than 100 UK government departments, as well as
systems integrators, rail sector customers and major corporate
clients.  In addition, GCUK provides carrier services to national
and international communications service providers.

                       About Global Crossing

Global Crossing Limited (NASDAQ: GLBC) is a leading global IP
solutions provider with the world's first integrated global IP-
based network. The company offers a full range of secure data,
voice, and video products to approximately 40 percent of the
Fortune 500, as well as to 700 carriers, mobile operators and
ISPs.  It delivers services to nearly 700 cities in more than 60
countries and six continents around the globe.

As reported by the Troubled Company Reporter on August 7, 2009,
Global Crossing Ltd. reported US$2.32 billion in total assets and
US$2.61 billion in total liabilities, resulting in US$28.5 million
in stockholders' deficit at June 30, 2009.  Global Crossing's
balance sheet at June 30 also showed strained liquidity, with
US$749 million in total current assets, including US$268 million
in cash and cash equivalents, against US$945 million in total
current liabilities.


NATIONAL EXPRESS: Explores Other Options Beyond CVC Takeover
------------------------------------------------------------
Helen Power and Miles Costello at The Times report that National
Express Group plc on Sunday night was weighing whether to accept a
GBP765 million joint bid from CVC and Stagecoach or sell assets.

According to the Times, the sale of the UK assets to Stagecoach
would allow National Express to reduce significantly the size of a
deeply discounted rights issue that was initially intended to
raise GBP350 million.

Stagecoach, the Times discloses, has provisional agreement from
the Department for Transport to take on National Express's East
Anglia and C2C rail franchises.

The Times says advisers to National Express were also looking at
other options, including breaking up the company.

                             Payment

Martin Flanagan at The Scotsman reports that Stagecoach is
expected to pay the government about GBP100 million as a "change
of control" payment to take over National Express's rail business
even though many City analysts believe it is a high price to pay.

According to the Scotsman, the Scottish company is expected to
argue that any amount paid to the Department for Transport will in
effect be taken off what it will have paid for National's rail and
bus assets if the Cosmen family/CVC consortium bid for National is
successful.

                        Going Concern

On Aug. 4, 2009, the Troubled Company Reporter-Europe, citing
Telegraph.co.uk, said National Express made a pre-tax loss of
GBP48.1 million in the first six months of 2009, down from a
profit of GBP52.4 million last year, after taking a GBP54.7
million hit from its forced exit from the East Coast mainline
franchise, which is being taken back into government hands.
According Telegraph.co.uk, the accounts declared that while the
directors are confident of renegotiating covenant obligations with
lenders, "covenant compliance remains dependent on actions which
are yet to be delivered".  In light of this the accounts warned
that "underlying implementation risks represent a material
uncertainty that may cast significant doubt upon the group's
ability to continue as a going concern".

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


ROYAL BANK: Reduces Future Overdraft Charges
--------------------------------------------
James Charles and Patrick Hosking at The Times report that Royal
Bank of Scotland Group plc has reduced its future overdraft
charges.

According to the report, the decision to lower the charges, which
also affects customers of NatWest, the RBS subsidiary, will see
the cost of a bounced cheque or an unpaid direct debit or standing
order fall from GBP38 to GBP5.  The charge for paying for an item
on an overdrawn account will be halved to GBP15, the report
discloses.  The report says the new fees will come into effect on
October 1.

The report relates a recent investigation by Which?, the consumer
association, found that RBS's penalty charges for unauthorized
overdrafts were the highest among 13 biggest banks and building
societies.

The report recalls in June, the battle over the legality of
overdraft charges, waged between the Office of Fair Trading (OFT)
and high street banks, including RBS and Nationwide Building
Society, moved to the House of Lords and, from October,
jurisdiction over the case will lie with the new Supreme Court.

                              Loss

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

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

                          About RBS

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


ROYAL BANK: Injects EUR1.1 Bln Into Ulster Bank Unit
----------------------------------------------------
Ian Guider at Bloomberg News reports that Royal Bank of Scotland
Group Plc has injected about EUR1.1 billion (US$1.54 billion) into
its Ulster Bank unit.

Citing filings at Ireland's Companies' Registration Office in
Dublin, Bloomberg discloses the bank pumped EUR280 million into
Ulster Bank Ireland Ltd. on July 31.  According to Bloomberg, the
filings show almost EUR500 million was sent on Feb. 27 and EUR300
million at June 30.

Bloomberg relates the Dublin-based bank posted a first-half
operating loss of EUR8 million after a nine-fold surge in bad
loans following the collapse of the country's property market.
Ulster Bank, Bloomberg says, is shedding jobs and closing its
First Active mortgage lending unit to stem the losses.

                             Loss

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

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

                      About Ulster Bank

Ulster Bank Group -- http://www.ulsterbank.ie/-- is a wholly
owned subsidiary of the enlarged RBS group.  First Active, a
leading mortgage provider, was acquired by Ulster Bank Group in
January 2004 in a EUR887 million transaction.  Serving personal
and small business customers, Ulster Bank Retail Markets provides
Branch Banking and Direct Banking throughout the Republic of
Ireland and Northern Ireland.  Ulster Bank Corporate Markets
caters for the banking needs of business and corporate customers,
treasury and money market activities, asset financing, wealth
management, e-banking and international services, with a continued
focus on providing customer choice and value.

                            About RBS

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


ROYAL BANK: Nears GBP200 Mln Deal to Sell Asian Assets
------------------------------------------------------
Richard Wachman at The Guardian reports that Royal Bank of
Scotland Group plc is close to reaching a GBP200 million deal to
sell its retail and commercial banking operations in India, China
and Malaysia to Standard Chartered.

"Standard Chartered is currently the frontrunner in this auction,"
the Guardian quoted a well-placed City source as saying, adding
that HSBC was "still hovering in the background".

                               Loss

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

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

                           About RBS

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


TREES: Moody's Cuts Rating on EUR225 Mln Syndicated Loan to 'B2'
----------------------------------------------------------------
Moody's Investors Service has taken this rating action on a
syndicated loan facility entered into by TREES.  This is a
collateralized debt obligation transaction with zero subordination
referencing a managed portfolio of European RMBS, CMBS and ABS.
Following the breach of CDOROM Test, the portfolio has become
static.

* UBS AG, London Branch - EUR225,000,000 Syndicated Loan Facility
  to TREES Downgraded to B2; previously on Jul 3, 2009 A3 Placed
  Under Review for Possible Downgrade

Moody's explained that the rating action taken is the result of
the deterioration of the credit quality of the reference
portfolio.  The weighted average expected loss of the portfolio
has deteriorated from 0.0493% from the last downgrade rating
action in April 2009 to 0.8690%, equivalent to an average rating
of the current portfolio of Baa3 (benchmarked against the current
portfolio weighted average life of 4.7 years).  The reference
portfolio includes exposure to a UK CMBS, The Mall Funding plc
Notes which were downgraded from Aaa to Baa3, two German RMBSs, E-
MAC DE 2005-1 B.V.  Class A Notes which were downgraded from Aa1
to Baa1, and E-MAC DE 2006-I B.V.  Class A Notes which were
downgraded from A1 to Baa1.  As the rated tranche does not benefit
from any form of credit enhancement, these downgrades directly
affect the expected loss of the rated tranche.

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

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

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the strength of the legal
framework as well as specific documentation features, and
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.


WHITE TOWER: Income From Properties Backing Loans Subject to Taxes
------------------------------------------------------------------
Chris Bourke at Bloomberg News reports that income from London
properties owned by investor Simon Halabi's real-estate companies
are subject to withholding tax.

The effect of the tax will be "reducing the funds available from
each property affected," Bloomberg quoted CB Richard Ellis Group
Inc., the debt’s servicer, as saying in a statement.

Bloomberg discloses loans on the properties are packaged into
GBP1.15 billion (US$1.9 billion) of bonds issued by White Tower
2006-3 Plc, a vehicle established for selling commercial mortgage-
backed securities.  White Tower became the largest commercial MBS
transaction sold by a single borrower to default in the U.K. this
year after the properties linked to the bonds halved in value.


* UK: New Entrants May Buy State-Owned Stakes in Troubled Lenders
-----------------------------------------------------------------
Cecilia Valente at Reuters, citing the Financial Times, reports
that banks will be forbidden to buy Northern Rock plc or the
state-owned stake in Lloyds Banking Group plc and Royal Bank of
Scotland plc, if they have big existing operations in the UK.

Reuters relates the newspaper quoted finance minister Alistair
Darling as saying at an event: "Banks with government
shareholdings are now restructuring their business and we will
ensure that happens in a way that . . . supports new banks
entering the market."


* UK: PwC Head Expects Further Wave of Restructurings in 2010
-------------------------------------------------------------
Jennifer Hughes at The Financial Times, citing Ian Powell,
chairman of accountancy firm PwC, reports that property groups,
pubs and other leisure companies in the United Kingdom could
experience a further wave of restructurings in the next year.

Mr. Powell told the FT "We think there's a big overhang in terms
of possible restructurings from real estate and leisure and pub
companies we see as remaining under pressure."


* UK: Real Estate Insolvencies Up to 1,573 in Second Quarter 2009
-----------------------------------------------------------------
Daryl Loo at Reuters reports that the number of real estate and
construction firms going bust more than doubled since the credit
crunch started two years ago.

Reuters relates accounting firm Wilkins Kennedy said on Friday,
citing data from the UK Insolvency Service, some 1,573 companies
in the property sector went bust in the second quarter of 2009,
compared with 696 in the third quarter of 2007 when the run on
British bank Northern Rock occurred.  Reuters notes Wilkins
Kennedy said the sector, which includes developers, agencies and
investors, as well as construction-related businesses, represented
24% of all British insolvencies in the second quarter to be the
single largest group.

According to Reuters, Wilkins Kennedy said the property downturn
has also hit the hotel sector, where insolvencies nearly trebled
to 53 in the second quarter of 2009, from 18 in the third quarter
of 2007, despite more British staying near home for their
holidays.


* UK: Over a Quarter of Fresh Produce Companies Operating at Loss
-----------------------------------------------------------------
Alex Beckett at thegrocer.co.uk reports that over a quarter of
U.K. fresh produce companies are operating at a loss.

Citing Plimsoll Publishing, thegrocer.co.uk discloses an analysis
of the leading 1,000 fresh produce companies revealed 288 were
making a loss.  According to thegrocer.co.uk, about half of those
businesses had made a loss for the first time in their history
this year, with tough economic conditions the likely cause.

thegrocer.co.uk relates senior analyst David Pattison said the
recession was only an excuse masking long-term problems for 131
companies which had made a loss several years in succession.


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


* EUROPE: CMA CGM Head Calls on EU to Protect Shipping Companies
----------------------------------------------------------------
Robert Wright at The Financial Times reports that Jacques Saade,
the founder and chairman of container shipping line CMA CGM,
called on banks and public bodies to help protect the survival of
Europe's three big shipping companies.

According to the FT, the sector has been hit by a slump in traffic
volumes and a collapse in earnings per container shipped to well
below levels that cover costs, and several operators are
undergoing emergency bail-outs.

The FT relates Mr. Saade told the annual summer university meeting
of Medef, the French employers' federation, last week that
European shipping companies were being handicapped by European
Commission rules brought in last year that prevent shipping lines
conferring on prices, capacity and other market issues.   The FT
says banks were also trying to force shipping lines to pay extra
for new ships -- sometimes US$30 million to US$40 million -- to
cover the fall in their value as collateral during the crisis.
Mr. Saade, as cited by the FT, said shipowners could not afford
the extra money banks were demanding.

"I call on the competent authorities -– banks and public bodies -–
to protect the three big European maritime companies and ensure
the survival of the maritime sector in Europe," the FT quoted
Mr. Saade as saying, reffering to CMA CGM as well as Switzerland's
Mediterranean Shipping Company and Denmark's AP Moller-Maersk.


* S&P Withdraws Credit Ratings on Various European CDO Notes
------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
various European collateralized debt obligation notes.

The rating withdrawals follow the early redemption of the notes.

                           Ratings List

                        Ratings Withdrawn

                          Cloverie PLC
      JPY1 Billion Fixed-Rate Portfolio Credit-Linked Notes
                     Series 2004-52 (Rotonda)

                                   Rating
                                   ------
                  Class       To            From
                  -----       --            ----
                  B           NR            A+

    Credit-Linked Enhanced Asset Repackagings (C.L.E.A.R.) PLC
       US$40 Million Limited Recourse Secured Floating-Rate
           Credit-Linked Notes Series 5 (Acqua Series 5)

                             Rating
                             ------
                        To            From
                        --            ----
                        NR            CCC-

                              ELM B.V.
  JPY1 Billion Class A Secured Credit-Linked Floating-Rate Notes
                    Series 51 (Morro Bay Notes)

                               Rating
                               ------
              Class       To            From
              -----       --            ----
              A           NR            A+/Watch Neg

                          NR — Not rated.


* S&P Puts Ratings on 16 CLO Tranches on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on 16 tranches issued across six collateralized
loan obligation transactions.  At the same time, S&P also placed
on CreditWatch negative S&P's credit ratings on three tranches
issued by one synthetic CLO of leverage loans.

The affected transactions are:

* North Westerly CLO III;
* Harvest CLO IV PLC;
* Oak Hill European Credit Partners I PLC;
* Jubilee CDO VIII B.V.;
* ACA Euro CLO 2007-1;
* Avoca CLO VIII Ltd.; and
* Skye CLO I Ltd.

These rating actions are due to deterioration in the credit
quality of the underlying portfolios.  S&P has also observed par
value losses following the default of portfolio holdings in some
of these deals.

In determining whether to place a CLO tranche rating on
CreditWatch negative, S&P consider a number of factors, including,
but not limited to:

* The percentage of assets (including any change to this) rated
  below 'B-' based on S&P's analysis, and the percentage of
  defaults already experienced in the portfolios;

* S&P's rated overcollateralization metric, which provides an
  estimate of rating stability for cash flow CDO tranches based on
  output from S&P's CDO Evaluator model and a simplified cash flow
  analysis; and

* Trends in performance results across similar transactions.

                           Rating List

              Ratings Placed on Creditwatch Negative

                    North Westerly CLO III B.V.
           EUR409.8 Million Secured Floating-Rate Notes

                                  Rating
                                  ------
          Class         To                         From
          -----         --                         ----
          C             A/Watch Neg                A
          D             BBB/Watch Neg              BBB
          E             BB/Watch Neg               BB
          Q combo       BBB/Watch Neg              BBB

                        Harvest CLO IV PLC
           EUR580.0 Million Senior Floating-Rate Notes

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

             Oak Hill European Credit Partners I PLC
EUR446.0 Million Senior Secured And Deferrable Floating-Rate Notes

                                  Rating
                                  ------
          Class         To                         From
          -----         --                         ----
          S combo       A/Watch Neg                A

                       Jubilee CDO VIII B.V.
        EUR400 Million Senior Secured Floating-Rate Notes

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

                     ACA Euro CLO 2007-1 PLC
                EUR400 Million Floating-Rate Notes

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

                        Avoca CLO VIII Ltd.
                EUR508 Million Floating-Rate Notes

                                  Rating
                                  ------
          Class         To                         From
          -----         --                         ----
          C def         A/Watch Neg                A
          D def         BBB/Watch Neg              BBB
          E def         BB/Watch Neg               BB

                          Skye CLO I Ltd.
     EUR210 Million Secured Floating-Rate Credit-Linked Notes

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




                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *