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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Friday, May 19, 2006, Vol. 7, No. 99

                            Headlines

A U S T R I A


ARMAN: Insufficient Funds Prompt Court's Bankruptcy Dismissal
AUSTRO-BRITISH: Awaits Final Distribution & Closing Protocol
BAWAG PSK: BAWAG Endorses Settlement Pact with Refco Creditors
MEDIACOM DIRECT: Salzburg Court Closes Bankruptcy Proceedings
NORKA: Prepares Final Distribution & Closing Procedure

PREVMED: Prepares Final Distribution & Closing Protocol


F R A N C E

ALSTOM SA: German Unit Inks Redundancy Deal with Employees
EUROTUNNEL S.A.: Restructuring Talks with Creditors Continue
FRANCE SOIR: Appellate Court Confirms New Owners
PIF EDITIONS: Court Places Publisher Under Administration


G E R M A N Y

ALSTOM GERMANY: Inks Redundancy Deal with Employees
BS BAUTRAGER: Claims Filing Period Ends May 22
EINS COPYCENTER: Meeting of Creditors Set for June 28
GSC GERMAN: Creditors' Meeting Slated for June 21
K & C: Claims Registration Period Ends May 19

SINGA TRADE: Creditors Must File Claims Until May 30
SCHMUCK SPEZIALBAUSANIERUNG: Claims Filing Period Ends May 30
SYNTAX SOFTWARE: Claims Registration Ends May 29
TANEL GMBH: Claims Registration Ends May 29
TORSTEN GRIGO: Creditors' Meeting Slated for June 27

WILLI VOM SONDERN: Claims Filing Period Ends May 31


H U N G A R Y

BORSODCHEM RT: Will Distribute Dividend Payment on June 8


I T A L Y

BANCA POPOLARE: S&P Cuts Ratings to BB+/B on Litigation Risk
PARMALAT GROUP: Parties Agree to Allow Citibank to Sue Units


K A Z A K H S T A N

ALLIANCE BANK: Fitch Rates US$1.5 Billion Note Program at BB-
ALTAISKY ZERNOPRODUKT: Creditors Must File Claims by June 3
AZ OIL: Almaty Court Opens Bankruptcy Proceedings
DOSTYK: Creditors Must File Claims by June 3
IRTYSHSKY ELEVATOR: Pavlodar Court Begins Bankruptcy Proceedings

PAVLODARMETALLSNAB: Pavlodar Court Starts Bankruptcy Proceedings
TEPLO-TARHANKI: Claims Registration Ends June 3
TVIST: Pavlodar Court Starts Bankruptcy Process
VITA: Kyzylorda Court Opens Bankruptcy Proceedings


K Y R G Y Z S T A N

KLIRINGSENTR: Insolvency Report Out on May 24
KRISTALL PLUS: Proof of Claim Deadline Slated for July 8
OSHTURSNAB: Public Auction Scheduled for June 12
PROMSVYAZMONTAJ: Claims Registration Ends July 6
TRAST INTER-SERVIS: Claims Registration Ends July 11


N O R W A Y

FALCONBRIDGE LTD: Xstrata Submits CDN16.1 Billion Cash Offer


R U S S I A

ABSOLUT CAPITAL: Fitch Rates US$150 Million Notes at Final B
BREWERY MARKSOVSKIY: Bankruptcy Hearing Slated for May 31
BUILDING ENTERPRISE 15: Court Appoints Insolvency Manager
EXPRESS: Court Names B. Yun as Insolvency Manager
MOVABLE MECHANIZED 2: Court Names V. Malakhov Insolvency Manager

POCHEPSKIY HEMP: A. Samsonov to Manage Bankruptcy Assets
REPAIR-TECHNICAL: Court Commences Bankruptcy Supervision
RUKOPOLSKIY ELEVATOR: Court Starts Bankruptcy Supervision
STUPINSKIY GLASS-FIBER: Court Begins Bankruptcy Supervision
TATFONDBANK: Moody's Revises B3 Rating Outlook to Positive

VIMPELCOM: Moscow Court Upholds Vote on Ukrainian Radio Takeover


S W I T Z E R L A N D

CONVERIUM HOLDING: Names New Members of Global Executive Panel


U K R A I N E

AGRO-TRANS: Kyiv Court Opens Bankruptcy Proceedings
AGROEXPORT: Court Names Oleksij Solyanik as Insolvency Manager
BILOPILLYA' MACHINE: Court Commences Bankruptcy Process
INTERSPECINVEST: Kyiv Court Begins Bankruptcy Supervision
KOLOSOVSKIJ ELEVATOR: Court Begins Bankruptcy Supervision

SHOSTKINSKIJ AGROHIM: Dmitro Kozin to Liquidate Assets
VARENICHNA: Lutsk' State Tax Inspection to Liquidate Assets
YUSTAV: Court Taps Oleksij Sherban as Interim Insolvency Manager


U N I T E D   K I N G D O M

ANDERSON BUSINESS: Claims Filing Period Ends July 31
AQUASAT LIMITED: Appoints Stephen John Tancock as Administrator
ASHWORTH PRINT: Taps KPMG LLP to Administer Assets
AVELEY GARAGES: Financial Woes Trigger Liquidation
BILL WILLIAMS: Hires Joint Administrators from RMT

BIRMINGHAM ACUTE: Appoints Administrator from Crawfords
BLAZE ACQUISITIONS: Appoints Grant Thornton Administrators
CALLOW & MADDOX: Taps Joint Administrators from Kroll
CODENT LTD: Joint Administrators from Lines Henry Take Helm
DEERHUNTER LIMITED: Appoints A. Poxon to Liquidate Assets

DIRECT READY: Liquidator Sets May 21 Claims Bar Date
EUROTUNNEL: Restructuring Talks with Creditors Continue
H & M.WARD & SON: Joint Liquidators Take Over Operations
MEDITERRANEAN TRANSPORT: Creditors Agree to Liquidation
NOVELIS INC: Moody's Reviews Low-B Ratings & May Downgrade

NOVELIS INC: Lenders Extend Financial Statement Filing Schedule
OLD MANOR: Creditors Confirm Voluntary Liquidation
RANK GROUP: Cancels 500,000 Ordinary Shares in Buyback Program
REFCO: BAWAG Endorses Settlement Pact with Refco Creditors
THX TRADE: Creditors' Meeting Slated for May 25

UKAE HOLDINGS: Taps Deloitte & Touche Administrators
V R PLASTICS: Bank of Scotland Appoints PWC Receivers

* Fitch's Views on Growing Risks in Emerging Europe

                            *********

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


ARMAN: Insufficient Funds Prompt Court's Bankruptcy Dismissal
-------------------------------------------------------------
The Trade Court of Vienna dismissed the bankruptcy case of Trade
LLC Arman (FN 123002k) on May 2, after proving that the Debtor's
assets are insufficient to pay administrative expenses.

Accordingly, creditors will not receive any recovery on account
of their claims.

Trade LLC Arman declared bankruptcy on March 7 (Bankr. Case No.
28 S 12/06b).  The Debtor can be reached at:

         Trade LLC Arman
         Barmherzigengasse 17/3/63
         1030 Vienna, Austria


AUSTRO-BRITISH: Awaits Final Distribution & Closing Protocol
------------------------------------------------------------
The Court of Vienna will close the bankruptcy case of Austro-
British Society following the Debtor's final distribution to
creditors.

The court-appointed property manager, Mag. Caroline Klus,
submitted a draft on the property allocation to the court on
March 13.  Under the proposal, creditors will recover 9.2% on
account of their claim.

Headquartered in Vienna, Austria, Austro-British Society
declared bankruptcy on Sept. 30, 2005 (Bankr. Case No. 6 S
95/05w).  Dr. Helmut Platzgummer represents Ms. Klus in the
bankruptcy proceedings.


BAWAG PSK: BAWAG Endorses Settlement Pact with Refco Creditors
--------------------------------------------------------------
Bloomberg News reports that BAWAG P.S.K. Bank fur Arbeit und
Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft
has endorsed a final settlement that may resolve all claims
filed by the creditors and investors of Refco, Inc.

BAWAG has previously agreed to pay a US$675 million settlement
amount.

Under the proposed settlement, BAWAG will initially pay
US$75 million, and the remaining amount will be paid in
installments, according to Bloomberg's Matthias Wabl, citing Der
Standard newspaper.  About US$300 million will go to the Refco
creditors, while the other US$300 million will be distributed to
their U.S. counsel who will use the funds for possible class
action lawsuits, Bloomberg News reports.

In addition, BAWAG will renounce any claims against Refco,
Bloomberg relates.  BAWAG's owner -- the Austrian Trade Union
Federation -- will also pay 30% of any amount from the sale of
the bank that goes beyond US$1.8 billion.  The payments are
capped at US$200 million.

Thomas Heimhofer, spokesman for BAWAG, declined to comment on
the report.

                 Judge Drain Amends Modified TRO

BAWAG P.S.K. and the Official Committee of Unsecured Creditors
have agreed to amend the first modified order of attachment and
temporary restraining order, to substitute for one of the four
specific accounts that are required to keep a minimum of US$1.16
billion of BAWAG assets, a different account maintained at the
same institution.

Accordingly, the Bankruptcy Court issued a second amended order.

The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York rules that until the time as the
Second Amended Order is modified or vacated by the Court, BAWAG
will maintain in New York assets in these Attached Accounts:

     Attached Account      Location            Minimum
     ----------------      --------            -------
     Undisclosed           New York     US$200,000,000

     Undisclosed           New York     US$540,000,000

     Undisclosed           New York     US$350,000,000

     Various loans to                    US$66,000,000
        Counterparties
        in the U.S.

BAWAG is be permitted to use the Attached Accounts in the
ordinary course of its banking business provided that the market
value of the assets in the Attached Accounts will not at any
time fall below the minimum.

BAWAG will provide the Creditors Committee information
sufficient to identify the loans made to various U.S.
counterparties.  Any interest and principal payments made on the
loans will be deposited and maintained in a segregated account
opened by BAWAG at an undisclosed account in New York.  In
addition, any amounts deposited in the Loan Proceeds Account
will immediately be subject to the Second Amended Order.  

For purposes of the Loans, the US$66 million Minimum will be
calculated as:

   (i) the sum of the interest and principal deposited and
       maintained in the Loan Proceeds Account; and

  (ii) the aggregate outstanding loan amounts on all Loans.

Unless the Second Amended Order is modified or vacated, the
Creditors Committee and Refco Group Limited, LLC, will be deemed
to have a valid attachment pursuant to N.Y. CPLR Sec. 6200 over
all property held in the Attached Accounts that is perfected at
the time of the Attachment and TRO.  The Creditors Committee and
RGL will also be adjudicated senior to any other filing by any
other entity with respect to the Attached Property, and neither
the parties will be required to file or serve confirmations,
financing statements, mortgages or similar instruments which may
be required to perfect attachments under federal or state law in
any jurisdiction.

Furthermore, Judge Drain directs that an unredacted form of the
Attached Accounts will be filed under seal and will remain under
seal until further Court order.  The redacted form of the
Attached Accounts will be filed in public.

Judge Drain also requires BAWAG to provide daily account
statements at a time and in a form reasonably acceptable to the
Creditors Committee identifying the market value of each of the
Attached Accounts.

BAWAG waives any claim or damages arising from any claim that
the Creditors Committee or RGL was not entitled to an attachment
of BAWAG's property, or that BAWAG was wrongfully enjoined or
restrained.

Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).  
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

Headquartered in Vienna, Austria, BAWAG P.S.K. (Bank fur Arbeit
und Wirtschaft AG) is an Austrian universal bank founded in 1922
by former Austrian Chancellor Karl Renner.  As of 2004, the
bank's majority shareholder was the OGB (Osterreichischer
Gewerkschaftsbund), the Austrian Trade Union Federation.  The
bank reported total consolidated assets of EUR56 billion as of
Dec. 31, 2004.

                        *     *     *

As reported in the TCR-Europe on May 11, Moody's downgraded
BAWAG P.S.K's

   -- financial strength rating (BFSR) to D- from C-;
   -- Tier 1 debt rating to Baa3 from Baa2.  

Both ratings remain under review for possible downgrade.  At the
same time, Moody's has also downgraded to Prime-2 with stable
outlook from Prime-1 the bank's short-term debt and deposit
rating.  The A3 long-term debt and deposit ratings and the Baa1
subordinated debt rating remain on review for possible
downgrade.

These ratings were downgraded as part the rating action:

   -- BAWAG P.S.K.: bank financial strength rating from C- to
      D-;

   -- BAWAG P.S.K.: short-term rating from P-1 to P-2;

   -- BAWAG P.S.K. CAPITAL Finance (Jersey) Ltd.: debt and
      deposit rating to Baa3 from Baa2;

   -- BAWAG P.S.K. Capital Finance (Jersey) II Ltd.: debt and
      deposit rating to Baa3 from Baa2; and

   -- BAWAG P.S.K. Capital Finance (Jersey) III Ltd.: debt and
      deposit rating to Baa3 from Baa2.

These ratings are under review for possible downgrade:

   -- BAWAG P.S.K.: bank financial strength rating of D-;

   -- BAWAG P.S.K.: long-term debt and deposit


MEDIACOM DIRECT: Salzburg Court Closes Bankruptcy Proceedings
-------------------------------------------------------------
The Land Court of Salzburg closed the bankruptcy case of LLC
Mediacom direct Telekommunikation Austria (FN 231930z) on
April 27 following the Debtor's final distribution to creditors.

Creditors recovered 8.61% on account of their claim against the
Debtor.

Headquartered in Salzburg, Austria, LLC Mediacom direct
Telekommunikation Austria declared bankruptcy on Nov. 9, 2004
(Bankr. Case No. 23 S 93/04b).  Dr. Andreas Arnold served as the
court-appointed property manager for the bankrupt estate.


NORKA: Prepares Final Distribution & Closing Procedure
------------------------------------------------------
The Land Court of Korneuburg will close the bankruptcy
proceedings of book and newspaper publishing company Norka (FN
136091i) following the Debtor's final distribution to creditors.

The court-appointed property manager, Bruckner Ferdinand,
submitted a final allocation document to the Court, which calls
for a 0.30% recovery by creditors.

Headquartered in Klosterneuburg, Austria, Norka declared
bankruptcy on Oct. 21, 2003 (Bankr. Case No. 36 S 110/03y).  
Zonsics Elisabeth represented Mr. Bruckner in the bankruptcy
proceedings.


PREVMED: Prepares Final Distribution & Closing Protocol
-------------------------------------------------------
The Trade Court of Vienna will close the bankruptcy case of LLC
Prevmed following the Debtor's final distribution to creditors.

The Court confirmed the adopted compulsory compensation payment
on April 4, which calls for a 20% recovery by the creditors.  
Under the agreement, the claims will be paid in four
installments:

  (a) 5% in cash to be paid within 14 days after confirmation of
      the compulsory payment project, but not before the closing
      of the bankruptcy case;

  (b) 5% to be paid before Dec. 31, 2006;

  (c) 5% to be paid before Aug. 31, 2007; and

  (d) 5% to be paid before April 1, 2008.

Headquartered in Vienna, Austria, LLC Prevmed declared
bankruptcy on Oct. 25, 2005 (Bankr. Case No. 6 S 130/05t).  Dr.
Alexander Schoeller served as the court-appointed property
manager for the bankrupt estate.  Dr. Stephan Riel represented
Mr. Schoeller in the proceedings.


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


ALSTOM SA: German Unit Inks Redundancy Deal with Employees
----------------------------------------------------------
Alstom Germany, a unit of French engineering group Alstom S.A.,
have signed a redundancy agreement for its Mannheim production
site, Frankfurter Allgemeine Zeitung says.

According to the report, the agreement calls for:

   -- Alstom to guarantee the employment of approximately 1,550
      employees until 2010;

   -- Alstom to transfer its European steam turbine operations       
      to Mannheim from Switzerland; and

   -- the Mannheim production site to cease manufacturing
      generators after 2007, displacing 90 employees.

Alstom Germany revealed in March 2005 that it plans to reduce
450 jobs in its power station division by 2007.  The works
council had argued that Alstom is supposed to be hiring more
workers at a time when Germany is making multimillion-euro
investments in power stations.  

The works council had also opposed the plan to reduce the
Mannheim site into a sales center to collect contracts in
Germany for processing at Alstom sites in France and Poland.

Headquartered in Paris, France, Alstom S.A. --
http://www.alstom.com/-- is a leading maker of power-generation  
systems and constructs power plants, rail equipment, luxury
passenger ships, naval vessels, and natural gas tankers.  It
also produces electrical drives, motors, and generators.  The
group generates EUR13 billion in annual revenues and employs
more than 70,000 people worldwide.  The group posted EUR865
million in net loss and EUR1.4 billion in net debt for the
financial year 2004/2005.


EUROTUNNEL S.A.: Restructuring Talks with Creditors Continue
------------------------------------------------------------
Eurotunnel informed the British and French market authorities of
the state of progress with discussions underway concerning the
restructuring of the Group's finances.

Eurotunnel requested to retain suspension of its shares on the
two exchanges to allow discussions to continue.

The discussions are taking place with the creditors and the
Goldman Sachs/Macquarie consortium.  The possible enlargement of
this consortium led to prolonged negotiations.

As a result, the mid-May review announced by Eurotunnel is
postponed.  Until that time, the Group will keep the
confidentiality surrounding the negotiations.

Eurotunnel obtained on April 26 a third extension of its credit
waiver through July 12.  

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a  
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.  

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.


FRANCE SOIR: Appellate Court Confirms New Owners
------------------------------------------------
The Douai Appellate Court upheld the decision of the Commercial
Court of Lille on May 16 confirming the appointment of Jean-
Pierre Brunois and Olivier Rey as the new owners of French daily
France Soir, according to Les Echos.

As reported in the TCR-Europe on May 5, France Soir's works
council and Presse Alliance filed an appeal against the sale
with the Appeals Court of Douai.  Both parties protested against
Mr. Ray and Mr. Brunois' plan to cut the workforce by 61
employees.

Works council representative Christelle Bertrand had warned that
a reduced workforce would not be enough to keep France Soir
running and the newspaper might cease to exist if the Appeals
Court will not reverse the Commercial Court's decision.  

Works council secretary Florence Grosjean said the employees
would continue to oppose the redundancies in court, Les Echos
related.

Headquartered in Aubervilliers, France, France Soir --
http://www.francesoir.fr/-- declared bankruptcy on Oct. 27,   
2005, after failing to pay a EUR6 million debt.  Prior to this,
it asked the court to freeze debt payments, citing insufficient
resources.  At the time, the company's assets had dwindled to
EUR350,000.  A few days later, the court placed France Soir in
compulsory administration and imposed a six-month observation
period.


PIF EDITIONS: Court Places Publisher Under Administration
---------------------------------------------------------
The Commercial Court of Bobigny placed Pif Editions under court-
supervised administration on April 19 after the magazine
publisher admitted insolvency, according to Les Echos.

The Court also imposed a six-month observation period, during
which a continuation plan may be presented.  Depending on how
the group fares during the observation period, Pif Editions may
be liquidated or sold, Les Echos relates.  

The Court appointed Bleriot Philippe as judicial administrator
for the Debtor.

Headquartered in St. Denis, France, Pif Editions publishes the
famous local monthly children's magazine Pif Gadget, selling
over 360,000 copies on its first issue.  However, the
circulation figure dwindled to 131,000 copies after its relaunch
in July 2004.


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


ALSTOM GERMANY: Inks Redundancy Deal with Employees
---------------------------------------------------
Alstom Germany, a unit of French engineering group Alstom S.A.,
have signed a redundancy agreement for its Mannheim production
site, Frankfurter Allgemeine Zeitung says.

According to the report, the agreement calls for:

   -- Alstom to guarantee the employment of approximately 1,550
      employees until 2010;

   -- Alstom to transfer its European steam turbine operations       
      to Mannheim from Switzerland; and

   -- the Mannheim production site to cease manufacturing
      generators after 2007, displacing 90 employees.

Alstom Germany revealed in March 2005 that it plans to reduce
450 jobs in its power station division by 2007.  The works
council had argued that Alstom is supposed to be hiring more
workers at a time when Germany is making multimillion-euro
investments in power stations.  

The works council had also opposed the plan to reduce the
Mannheim site into a sales center to collect contracts in
Germany for processing at Alstom sites in France and Poland.

Headquartered in Paris, France, Alstom S.A. --
http://www.alstom.com/-- is a leading maker of power-generation  
systems and constructs power plants, rail equipment, luxury
passenger ships, naval vessels, and natural gas tankers.  It
also produces electrical drives, motors, and generators.  The
group generates EUR13 billion in annual revenues and employs
more than 70,000 people worldwide.  The group posted EUR865
million in net loss and EUR1.4 billion in net debt for the
financial year 2004/2005.


BS BAUTRAGER: Claims Filing Period Ends May 22
----------------------------------------------
Creditors of BS Bautrager Service GmbH have until May 22 to
register their claims with court-appointed provisional
administrator Hermann Berding.

Creditors and other interested parties are encouraged to attend
the meeting at 2:35 p.m. on June 19, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Delmenhorst
         Saal 2
         Nebenstelle 1
         Cramerstrasse 183
         27749 Delmenhorst, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Delmenhorst opened bankruptcy proceedings
against BS Bautrager Service GmbH on April 21.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         BS Bautrager Service GmbH
         Zeppelinring 26
         26197 Ahlhorn, Germany

         Attn: Alfons Marischen, Manager
         Varnhusenstr. 39
         49429 Visbek, Germany
         
The administrator can be contacted at:

         Hermann Berding
         Jammertal 1
         D-49661 Cloppenburg, Germany
         Tel: 04471/91260
         Fax: 04471/82997


EINS COPYCENTER: Meeting of Creditors Set for June 28
-----------------------------------------------------
The court-appointed provisional administrator for Eins
copycenter GmbH, Falk Eppert, will present his first report on
the Company's insolvency proceedings at a creditors' meeting at
10:30 a.m. on June 28.

The meeting of creditors and other interested parties will be
held at:

         The District Court of Frankfurt (Oder)
         Saal 401
         Muellroser Chaussee 55
         15236 Frankfurt (Oder), Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

Creditors have until May 24 to register their claims with the
court-appointed provisional administrator.

The District Court of Frankfurt opened bankruptcy proceedings
against Eins copycenter GmbH on April 24.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Eins copycenter GmbH
         Prenzlauer Strasse 38
         16352 Basdorf, Germany
                 
The administrator can be reached at:

         Falk Eppert
         Gubener Strasse 17
         15230 Frankfurt (Oder), Germany


GSC GERMAN: Creditors' Meeting Slated for June 21
-------------------------------------------------
The court-appointed provisional administrator for GSC German Sea
Craft GmbH, Bardo M. Sigwart, will present his first report on
the Company's insolvency proceedings at a creditors' meeting at
10:00 a.m. on June 21.

The meeting of creditors and other interested parties will be
held at:

         The District Court of Bingen am Rhein
         Room 9, Gerichtsgebaude
         Mainzer Road 52
         55411 Bingen am Rhein, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

Creditors have until May 22 to register their claims with the
court-appointed provisional administrator.

The District Court of Bingen am Rhein opened bankruptcy
proceedings against GSC German Sea Craft GmbH on April 25.  
Consequently, all pending proceedings against the company have
been automatically stayed

The Debtor can be reached at:

         GSC German Sea Craft GmbH
         Rheinufer
         55411 Bingen am Rhein, Germany

         Attn: Dieter Schafer, Manager
         Pfarrer-Herberer-Str. 38
         55411 Bingen am Rhein, Germany

The administrator can be reached at:

         Bardo M. Sigwart
         Ahornweg 12
         55218 Ingelheim, Germany
         Tel: 06132/88949
         Fax: 06132/896498


K & C: Claims Registration Period Ends May 19
---------------------------------------------
Creditors of K & C Autohaus GmbH have until May 19 to register
their claims with court-appointed provisional administrator Dr.
Helmut Eisner.

Creditors and other interested parties are encouraged to attend
the meeting at 11:40 a.m. on June 21, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Ansbach
         Sitzungssaal 3
         Promenade 8
         91522 Ansbach, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Ansbach opened bankruptcy proceedings
against K & C Autohaus GmbH on April 24.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         K & C Autohaus GmbH
         Schaffeldstr. 12
         91616 Neusitz, Germany
         
The administrator can be contacted at:

         Dr. Helmut Eisner
         Josef-Schmitt-Str. 10
         97922 Lauda-Konigshofen, Germany
         Tel: 09343/2065
         Fax: 09343/3833


SINGA TRADE: Creditors Must File Claims Until May 30
----------------------------------------------------
Creditors of Singa Trade GmbH have until May 30 to register
their claims with court-appointed provisional administrator
Mechthild Greve.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on June 9, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Koblenz
         Hall 123
         Hauptjustizgebaude
         Karmeliterstrasse 14
         56068 Koblenz, Germany

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on July 7, at the same
venue.

The District Court of Koblenz opened bankruptcy proceedings
against Singa Trade GmbH on April 10.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Singa Trade GmbH
         Attn: Guenter and Cornelia Weber, Managers
         Casinostrasse 16
         56154 Boppard-Buchholz, Germany
         
The administrator can be contacted at:

         Mechthild Greve
         Josef-Gorres-Platz 5
         56068 Koblenz, Germany
         Tel: 0261/30479-0
         Fax: 0261/9114729


SCHMUCK SPEZIALBAUSANIERUNG: Claims Filing Period Ends May 30
-------------------------------------------------------------
Creditors of Schmuck Spezialbausanierung GmbH have until May 30
to register their claims with court-appointed provisional
administrator Herbert Feigl.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on June 27, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Koblenz
         Hall 1.044
         Thueringer Str. 16
         06112 Halle, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Koblenz opened bankruptcy proceedings
against Schmuck Spezialbausanierung GmbH on April 10.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Schmuck Spezialbausanierung GmbH
         Hauptstrasse 4
         06198 Kloschwitz, Germany
         
The administrator can be contacted at:

         Herbert Feigl
         Hansering 1
         D-06108 Halle, Germany
         Tel: 0345/212220
         Fax: 0345/2122222


SYNTAX SOFTWARE: Claims Registration Ends May 29
------------------------------------------------
Creditors of Syntax Software GmbH have until May 29 to register
their claims with court-appointed provisional administrator Gotz
Lautenbach.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on July 17, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bad Homburg v. d. Hohe
         Zi. E 36
         Steinkaut 10-12
         61352 Bad Homburg v. d. Hohe, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bad Homburg v. d. Hohe opened bankruptcy
proceedings against Syntax Software GmbH on April 20.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Syntax Software GmbH
         Feldwies 1
         61389 Schmitten, Germany

         Attn: Bernd Franz, Manager
         Hopfengarten 7
         61389 Schmitten, Germany
         
The administrator can be contacted at:

         Gotz Lautenbach
         Zeiweg 42
         60439 Frankfurt, Germany
         Tel: 069/963761-130
         Fax: 069/963761-140


TANEL GMBH: Claims Registration Ends May 29
-------------------------------------------
Creditors of Tanel GmbH & Co. have until May 29 to register
their claims with court-appointed provisional administrator Dr.
Ulrich Wenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on June 28, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Potsdam
         Hall 301
         Nebenstelle Lindenstrasse 6
         14467 Potsdam, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Potsdam opened bankruptcy proceedings
against Tanel GmbH & Co. on March 30.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Tanel GmbH & Co.
         Grundstueck Marienfelder Allee 197-213 KG

         Attn: Dr. H. Brauner, Manager
         Charlottenstrasse 59
         14467 Potsdam, Germany
         
The administrator can be contacted at:

         Dr. Ulrich Wenzel
         Grossbeerenstrasse 231
         14480 Potsdam, Germany


TORSTEN GRIGO: Creditors' Meeting Slated for June 27
----------------------------------------------------
The court-appointed provisional administrator for Torsten Grigo
Natursteinbearbeitung GmbH, Dr. Christian Strauss, will present
his first report on the Company's insolvency proceedings at a
creditors' meeting at 9:30 a.m. on June 27.

The meeting of creditors and other interested parties will be
held at:

         The District Court of Cuxhaven
         Saal 112
         Deichstr. 12 a
         27472 Cuxhaven, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

Creditors have until May 26 to register their claims with the
court-appointed provisional administrator.

The District Court of Cuxhaven opened bankruptcy proceedings
against Torsten Grigo Natursteinbearbeitung GmbH on April 12.  
Consequently, all pending proceedings against the company have
been automatically stayed

The Debtor can be reached at:

         Torsten Grigo Natursteinbearbeitung GmbH
         Attn: Torsten Grigo, Manager
         Wilhelm-Giese-Str. 14
         27616 Beverstedt, Germany
                 
The administrator can be reached at:

         Dr. Christian Strauss
         Friedrich-Missler-Str. 42
         28211 Bremen, Germany
         Tel: 0421/7926260
         Fax: 0421/7926285


WILLI VOM SONDERN: Claims Filing Period Ends May 31
---------------------------------------------------
Creditors of Willi vom Sondern GmbH & Co. KG have until May 31
to register their claims with court-appointed provisional
administrator Stephan Ries.

Creditors and other interested parties are encouraged to attend
the meeting at 9:40 a.m. on June 20, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Sitzungssaal A234
         2. Etage
         Eiland 2
         42103 Wuppertal, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Wuppertal opened bankruptcy proceedings
against Willi vom Sondern GmbH & Co. KG on April 26.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Willi vom Sondern GmbH & Co. KG
         Attn: Heidi Stroh and Uwe Broland, Managers
         Wilhelm-Hedtmann-Strasse 6a
         42389 Wuppertal, Germany
        
The administrator can be contacted at:

         Stephan Ries
         Friedrichstr. 51
         42105 Wuppertal, Germany


=============
H U N G A R Y
=============


BORSODCHEM RT: Will Distribute Dividend Payment on June 8
---------------------------------------------------------
BorsodChem Rt. will pay shareholders a gross dividend payment of
HUF50.35 for each HUF202 nominal value BorsodChem Rt. share
after the 2005 earnings.  The dividend payment is in compliance
with the relevant resolution made at the Annual General Meeting
on April 28.

Prior to the dividend payment, BorsodChem will request an update
of its share register and identification of its shareholders.  
Shares of BorsodChem Rt. will trade with dividend coupons on the
Budapest Stock Exchange until the date of May 26.

The starting payment date for the dividend payment is Thursday,
June 8, 2006.

The Company's Board of Directors, with reference to Article
226/E of the Economics Act and Article 14 (2) of the Articles of
Association, informs the Honored Shareholders that the dividend
total of HUF52,890,409 payable on the 1,050,455 treasury shares
held by the Company, will be distributed among the remaining
shares qualified for dividend.

Following the distribution, the dividend payable amounts to
HUF51.

The conditions of the dividend payment are:

   -- that the shareholders custodian shall complete the
      shareholder identification status by May 31; and

   -- thereafter shall notify KELER Zrt., according to its rules
      and regulations, who in turn will inform BorsodChem Rt.

The group calls the attention of the shareholders that they must
expressly request the accomplishment of the shareholder
identification from their custodian and each shareholder is to
provide the necessary data for tax settlement:

   -- shareholder's name,
   -- tax identifiers,
   -- tax number,
   -- address
   -- date of birth, and
   -- mother's maiden name

by May 31 the latest.

In the case of failure of registration to the share register
prior to the above date, the Company cannot transfer the
dividend payment until all the missing data is provided.

The Board of Directors is entitled to decline the registration
in the share register if the shareholder acquired the shares in
violation of the laws or by failing to comply with the mandatory
actions prescribed by law.

Shareholders whose shares are deposited with KELER Zrt. can
obtain their dividend at the location determined by the
depositories as soon as BorsodChem Rt. has received and checked
the required identification data of the shareholders.

The group would like to note again that BorsodChem Rt. does not
take responsibility for any delay caused by providing incorrect
or incomplete information or for the time demand of data
processing.

Under the tax procedure act in force the payer of the dividend
is the legal person who in fact effects payment, i.e. BorsodChem
Rt.  This rule is also applicable in such cases when the
dividend is paid through the depositories.

In the case of resident private individuals falling under the
scope of the personal income tax act No. CXVII of 1995 the
Company as a paying-office deducts the dividend tax rate of 25%
from the gross dividend.  The Company issues a certificate of
the tax deduction, and sends it to the private individual via
mail at the latest by January 31, 2007.

The group would like to call attention that pursuant to the
prevailing regulations dividends cannot be paid to individual
shareholders who have not provided data regarding their:

   -- shareholder's name,
   -- tax identifiers,
   -- tax number,
   -- address
   -- date of birth, and
   -- mother's maiden name.

In the case of payment to nominees the rate of dividend tax
payable is 25% of the gross dividend.  Provided that the nominee
makes a declaration in a document with the authorized signature
about the amount of shares in the possession of the legal
shareholders represented by him, no tax will be deducted in case
of paying these dividends.

The right of dividend lapses after five years from the starting
date (June 8, 2006) of the dividend payment.

                        About BorsodChem

Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. --
http://www.borsodchem.hu/-- produces chlorine, chloric alkali,  
hydrochloric acid, caustic lye and PVC resins, and additives for
the plastic and rubber industries.  The Company exports its
products mainly to Western Europe.

The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7%
higher than HUF20.5 billion in 2004.  BorsodChem's net profit
was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion
a year ago.  

At Dec. 31, 2005, BorsodChem's balance sheet showed HUF237.9
billion in total assets, HUF98.9 billion in total liabilities
and HUF139.02 billion in total equity.

                        *     *     *

The Company's long-term foreign and local issuer credit carry
Standard and Poor's BB rating with stable outlook.


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


BANCA POPOLARE: S&P Cuts Ratings to BB+/B on Litigation Risk
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term counterparty credit ratings on Italian regional bank Banca
Popolare di Intra SCPARL to 'BB+/B' from 'BBB-/A-3'.

The ratings remain on CreditWatch with developing implications,
where they were placed on Feb. 15.

"The downgrade reflects the additional risk to Intra's finances
and reputation generated by recent developments regarding the
bankruptcy of Finpart," said Standard & Poor's credit analyst
Renato Panichi.

The CreditWatch developing status reflects the potential for
Intra's ratings to go up should the bank successfully complete
negotiations to become a member of a financially stronger
banking group in the near term.  It also takes into account the
negative pressure on the ratings that would arise should the
substantial legal risks compromise or delay the completion of
negotiations with other banking groups beyond a reasonable time
frame.

"S&P will resolve the CreditWatch once the buyer has been
selected, and after a review of Intra's asset quality and
business plan," said Mr. Panichi.


PARMALAT GROUP: Parties Agree to Allow Citibank to Sue Units
------------------------------------------------------------
In a stipulation approved by the Honorable Robert D. Drain of
the U.S. Bankruptcy Court for the Southern District of New York,
Citibank, N.A., and Citibank, N.A. International Banking
Facility, on one hand, and Dr. Enrico Bondi, extraordinary
administrator of Parmalat Finanziaria S.p.A. and certain of its
affiliates and CEO of Reorganized Parmalat, on the other hand,
agree that at 5:00 p.m. New York time, on May 31, the
Preliminary Injunction Order will automatically be deemed
modified to permit Citibank to take any action to enforce its
rights against Parmalat Paraguay S.A. or otherwise with respect
to the obligations of Parmalat Paraguay to Citibank in Paraguay.

During the Standstill Period, Reorganized Parmalat, as successor
to the Foreign Debtors, will provide Citibank, concerning
Parmalat Paraguay and its subsidiaries, with:

   -- access to company management;

   -- access to their Paraguayan advisers;

   -- access to their books and records; and

   -- copies of and access to forecasts, budgets, restructuring
      plans, term sheets relating to a sale or other disposition
      of the assets, purchase and sale agreements and
      correspondence of any kind or nature relating in any way
      to a sale or other disposition of the assets or the
      restructuring of the indebtedness.

The Standstill Period may be extended for an additional period
upon the parties' written agreement.

Any information obtained by Citibank pursuant to the Stipulation
will be used exclusively for accessing and seeking a
restructuring of Parmalat Paraguay's debt and will not be used
for any other purpose.  The information will be maintained as
confidential by Citibank.

Headquartered in Milan, Italy, Parmalat S.p.A. --  
http://www.parmalat.net/-- sells nameplate milk products that  
can be stored at room temperature for months.  It also has 40-
some brand product line includes yogurt, cheese, butter, cakes
and cookies, breads, pizza, snack foods and vegetable sauces,
soups and juices.  

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

The U.S. Debtors filed for chapter 11 protection on Feb. 24,
2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq.,
and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represent the Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than US$200 million in
assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.


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


ALLIANCE BANK: Fitch Rates US$1.5 Billion Note Program at BB-
-------------------------------------------------------------
Fitch Ratings placed Alliance Bank's and ALB Finance B.V.'s
US$1.5 billion global medium-term note program final ratings of
Long-term BB- for senior unsecured notes with maturities in
excess of one year and Short-term B for senior unsecured notes
with maturities of less than one year.  

It also assigned a final Long-term BB- rating to the recent
8.75% US$250 million issue due April 2011, which is the first
draw-down under the program.  Alliance is rated Issuer Default
BB-/Stable, Short-term B, Individual D, and Support 3.

Alliance was founded in 1993 in Pavlodar, and in 1999 merged
with another mid-sized regional bank.  New shareholders led by
Seimar Holding Company acquired Alliance in 2001, and since then
it has grown quickly to become one of the larger banks in
Kazakhstan; it ranked fifth by assets and fourth by
shareholders' equity at end-2005.


ALTAISKY ZERNOPRODUKT: Creditors Must File Claims by June 3
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Altaisky Zernoprodukt insolvent on Feb. 28.
Bankruptcy proceedings were introduced at the company.

Creditors have until June 3 to submit written proofs of claim
to:

         Krylova Str. 92/1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 25-12-13


AZ OIL: Almaty Court Opens Bankruptcy Proceedings
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
commenced bankruptcy proceedings against LLP Az Oil Service.

The Specialized Inter-Regional Economic Court of Almaty can be
reached at:

         Micro District 12, 7-3
         Almaty, Kazakhstan


DOSTYK: Creditors Must File Claims by June 3
--------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Dostyk insolvent on March 6.  Bankruptcy
proceedings were introduced at the company.

Creditors have until June 3 to submit written proofs of claim
to:

         Karasuatskaya Str. 28/2
         Tugyl, Tarbagataisky District
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (244) 2-21-34


IRTYSHSKY ELEVATOR: Pavlodar Court Begins Bankruptcy Proceedings
----------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
commenced bankruptcy proceedings against OJSC Irtyshsky Elevator
on Dec. 27.


PAVLODARMETALLSNAB: Pavlodar Court Starts Bankruptcy Proceedings
----------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
commenced bankruptcy proceedings against LLP Pavlodarmetallsnab
on March 27.


TEPLO-TARHANKI: Claims Registration Ends June 3
-----------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Teplo-Tarhanki insolvent on March 1.  
Bankruptcy proceedings were introduced at the company.

Creditors have until June 3 to submit written proofs of claim
to:

         Komsomolskaya Str. 19-61
         Ust-Talovka
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (232) 3-62-57


TVIST: Pavlodar Court Starts Bankruptcy Process
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
commenced bankruptcy proceedings against LLP Tvist on March 27.


VITA: Kyzylorda Court Opens Bankruptcy Proceedings
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Vita on
March 15.  Bankruptcy proceedings were introduced at the
company.

Creditors must submit written proofs of claim to:

         Aiteke bi Str. 29
         Kyzylorda, Kazakhstan


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


KLIRINGSENTR: Insolvency Report Out on May 24
---------------------------------------------
The temporary insolvency manager of the Center on Calculation
for the Clearing Supply of the Production Kliringsentr will
present his report during a creditors' meeting on May 24 at
10:00 a.m., at:
    
         Chui Ave. 106  
         Bishkek, Kyrgyzstan

The temporary insolvency manager can be reached at (+996 312)
53-05-93.


KRISTALL PLUS: Proof of Claim Deadline Slated for July 8
--------------------------------------------------------
LLC Kristall Plus (INN 01310200410109) has declared insolvency.
Creditors have until July 8 to submit written proofs of claim
to:

         Chui Ave. 50  
         Bishkek, Kyrgyzstan


OSHTURSNAB: Public Auction Scheduled for June 12
------------------------------------------------
The Subdivision Service of the Court Officers of Osh Region set
a public auction for a certain property of LLC Oshtursnab on
June 12, at 11:00 a.m., at:

         The Osh City Court, Room 16
         Kyrgyzstan

The asset for sale is a new mini-market with a US$60,000
starting price.

Participants must submit their bids and deposit an amount
equivalent to 5% of the starting price to:

         Mr. S. Satiev
         Bidding Organizer, Court Officer
         Tel: (+996 3222) 3-60-92


PROMSVYAZMONTAJ: Claims Registration Ends July 6
------------------------------------------------
LLC Scientific Production Enterprise Promsvyazmontaj has
declared insolvency.  Creditors have until July 6 to submit
written proofs of claim.

The company can be contacted at (+996 312) 66-65-22.


TRAST INTER-SERVIS: Claims Registration Ends July 11
----------------------------------------------------
LLC Trast Inter-Servis has declared insolvency.  Creditors have
until July 11 to submit written proofs of claim to:

         Jeleznodorojnaya Str. 113/1  
         Karabalta, Kyrgyzstan


===========
N O R W A Y
===========


FALCONBRIDGE LTD: Xstrata Submits CDN16.1 Billion Cash Offer
------------------------------------------------------------
Falconbridge Limited reported that Xstrata plc offered to
acquire the Company's outstanding common shares not owned by the
Xstrata group for CDN$52.50 in cash per Falconbridge share or
CDN$16.1 billion in total (approximately US$14.6 billion)
valuing the total common share capital of Falconbridge at
approximately CDN$20 billion (approximately US$18.1 billion).  

The Offer will be open until Friday, July 7.  The offer and
offering circular will be filed on May 18 and mailed to
Falconbridge shareholders.

The combination of Xstrata and Falconbridge (Enlarged Group)
will create the world's fifth largest diversified mining
company, with leading market positions in copper, nickel,
thermal and metallurgical coal, zinc, together with ferroalloys
and a world-class pipeline of growth projects.  Xstrata believes
there is a compelling strategic rationale for and substantial
benefits to be gained from the combination of the two businesses
and that the transaction is in the best interests of both
Xstrata and Falconbridge and their respective shareholders,
customers, employees and other stakeholders.

Xstrata's offer price represents a premium of:

   -- 12.3% over the value of the revised offer reported by Inco
      Limited in its competing offer for Falconbridge, based
      upon the May 5 closing price on the TSX of Inco shares,
      the last trading day prior to the announcement of the
      proposed offer by Teck Cominco Limited to acquire Inco,
      and assuming full proration of the share and cash
      consideration in accordance with the terms of Inco's
      offer; and

   -- 11.2% over the closing price of CDN$47.23 per Falconbridge
      share on May 5, 2006, the last trading day prior to the
      announcement of Teck Cominco's proposed offer for Inco.

            Financing of the Falconbridge Acquisition

New bank debt facilities have been underwritten by Barclays Bank
PLC, Deutsche Bank AG London, JP Morgan Chase Bank, N.A. and The
Royal Bank of Scotland plc.  These new syndicated loan
arrangements have been entered into expressly to:

   -- provide debt financing for the Falconbridge Acquisition,

   -- refinance Xstrata's existing bank debt and certain
      existing indebtedness of Falconbridge, and

   -- provide working capital facilities for the Enlarged Group.

Xstrata's acquisition of Falconbridge is conditional, among
other things, on approval by Xstrata shareholders at a meeting
to be held in June, certain regulatory consents (including
Investment Canada approval) and valid acceptances of the Xstrata
Offer which, together with the Falconbridge shares already owned
by the Xstrata group, constitute at least 66-2/3% of the
Falconbridge shares on a fully-diluted basis.  Once the 66-2/3%
acceptance level is met, Xstrata intends to take steps to
acquire any outstanding Falconbridge shares.  Xstrata may waive
the conditions of the Xstrata Offer in certain circumstances.

If the Falconbridge Acquisition is completed, Xstrata has
committed to undertake one or more equity capital offerings to
refinance a portion of the new debt facilities.  Deutsche Bank
and J.P. Morgan Securities Ltd. have irrevocably undertaken to
underwrite any future equity offering to raise funds to repay
any amounts outstanding, under a US$7 billion subordinated debt
facility agreement, to raise, in aggregate, such amount as is
required to pay or repay any amounts then outstanding under the
Equity Bridge Facility Agreement, together with costs and
expenses.  

The Refinancing Amount will be raised by way of an underwritten
rights issue of ordinary shares to existing Xstrata
shareholders, unless Xstrata, with the prior approval of
Deutsche Bank and JPMorgan Cazenove Limited, determines
otherwise.

The timing and terms of any such equity offering or offerings
will be based on an assessment of the Enlarged Group's capital
structure following the successful acquisition of Falconbridge.  
Xstrata is committed to maintaining a solid investment grade
credit rating.  The directors of Xstrata are confident that any
rights issue will be fully supported by Glencore International
AG.

                   Benefits of the Acquisition

Xstrata is confident that its acquisition of Falconbridge will
deliver significant benefits to the operations, employees and
stakeholders of Falconbridge.  Given the Group's stated growth
strategy, Xstrata believes its position, as a major and long-
term direct investor in its Canadian businesses, will be of
material overall benefit to Canada.  Xstrata therefore expects
to receive the necessary clearance under the Investment Canada
Act in due course.  Xstrata is also confident that the Xstrata
Offer will not encounter substantive anti-trust issues in
Canada, the United States or Europe and will promptly receive
the necessary competition authority clearances.

Xstrata currently owns 73,665,996 Falconbridge shares,
representing approximately 19.8% of Falconbridge's issued share
capital.  At the Xstrata offer price of CDN$52.50 per
Falconbridge share, the average cost per share of acquiring all
of Falconbridge's shares, including those already owned, will be
approximately CDN$47.76.  Xstrata's Directors believe that the
Falconbridge Acquisition will be substantially earnings per
share and cash flow per share accretive in the first full year
of consolidation.

"The proposed combination of Falconbridge and Xstrata will
create an outstanding global mining company, ideally positioned
to create further value for all stakeholders through active
involvement in the ongoing consolidation of our industry," Mick
Davis, Xstrata Chief Executive, said.  "I believe our all cash
offer of CDN$52.50 per share delivers to Falconbridge
shareholders a compelling opportunity to realise a guaranteed
cash value with no market and minimal regulatory risk and is
significantly superior to the revised offer that Inco has made
for Falconbridge.

                           Inco Offer

Without any prior discussion with Xstrata, Falconbridge's
largest shareholder, Inco and Falconbridge reported in October
an offer by Inco to purchase the entire issued common share
capital of Falconbridge and entered into a support agreement,
which Xstrata believes was structured unduly in favor of Inco.  
This agreement includes, amongst other things, restrictive non-
solicitation covenants, an opportunity for Inco to match any
third-party offer within a seven-day period and a break fee.

A revised Inco offer was reported in the Troubled Company
Reporter on May 15, and approved by Falconbridge's board, which
also agreed to increase the break fee by 40% to US$450 million,
in an apparent attempt to thwart a superior offer by Xstrata.  
Its effect is to deprive Falconbridge shareholders of a further
US$130 million of value.

The Offer is being made by Xstrata Canada Inc., a wholly owned
indirect subsidiary of the Company.

                        About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global  
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata maintains a meaningful position in six major
international commodity markets: copper, coking coal, thermal
coal, ferrochrome, vanadium and zinc, with additional exposures
to gold, lead and silver. The Group's operations and projects
span four continents and nine countries: Australia, South
Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and
Canada.                       

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a  
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in and
the Dominican Republic and operates a refinery and sulfuric acid
plant in Norway.  It is also a major producer of copper (38% of
sales) through its Kidd mine in Canada and its stake in Chile's
Collahuasi mine and Lomas Bayas mine.  Its other products
include cobalt, platinum group metals, and zinc.

                       *     *     *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carries Standard & Poor's BB+ rating.


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


ABSOLUT CAPITAL: Fitch Rates US$150 Million Notes at Final B
------------------------------------------------------------
Fitch Ratings assigned Absolut Capital S.A.'s recent US$150
million issue of limited recourse loan participation notes due
April 2009 a final Long-term B rating and a final Recovery
Rating RR4.

The notes are to be used solely for financing a deposit with
Russia's Absolut Bank, which is rated Issuer Default B, Short-
term B, Individual D, Support 5 and National Long-term BBB.  The
Outlooks on both the IDR and the National Long-term rating are
Stable.

Absolut is a medium-sized Russian bank founded in 1993 and 92%-
owned by five Moscow entrepreneurs and 7.5% by International
Financial Corporation.  At end-2005 Absolut ranked 39th among
domestic banks by assets.  Lending to customers in Moscow
constitutes its core business, but the bank is also building up
its SME and retail banking operations and expanding into new
regions.


BREWERY MARKSOVSKIY: Bankruptcy Hearing Slated for May 31
---------------------------------------------------------
The Arbitration Court of Saratov Region will convene on May 31
at 10:00 a.m. to hear the bankruptcy supervision procedure on
OJSC Brewery Marksovskiy (Case no. A-57-4b/06-12).

Mr. A. Tarasov has been appointed temporary insolvency manager
and can be reached at:

         Barnaulskaya Str. 34
         410049, Saratov Region, Russia

The Debtor can be reached at:

         Zagorodnayay Rosha Str. 27
         Marks
         Saratov Region, Russia


BUILDING ENTERPRISE 15: Court Appoints Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. A.
Ptashnikov as insolvency manager for LLC Building Enterprise 15
(Case no. A07-35434/05-G-ADM).  He can be reached at:

         Entuziastov Str. 4-33
         Ufa
         450096, Bashkortostan Republic, Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  

The Debtor can be reached at:

         LLC Building Enterprise 15
         Ufimskoye Shosse, 2a
         Ufa
         450081, Bashkortostan Republic, Russia


EXPRESS: Court Names B. Yun as Insolvency Manager
-------------------------------------------------
The Arbitration Court of Moscow appointed Mr. B. Yun as
insolvency manager for CJSC Express (Case no. A40-68919/05-78-
188B).  He can be reached at:

         M. Ekateriniskaya Str. 17/21
         129110, Moscow, Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  

The Debtor can be reached at:

         CJSC Express
         Room 4
         Krasnogo Mayaka Str. 13
         Moscow, Russia


MOVABLE MECHANIZED 2: Court Names V. Malakhov Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Stavropol Region appointed Mr. V.
Malakhov as insolvency manager for OJSC Movable Mechanized
Column 2 (Case no. A63-2327/05-S5).  He can be reached at:

         Batayskaya Str. 41-a
         Verkhnerusskoye
         Shpakovskiy Region
         356236 Stavropol Region, Russia
         Tel: (86553)5-94-93

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.

The Debtor can be reached at:

         OJSC Movable Mechanized Column 2
         Vokzalnaya Str., Blagodarnyj
         Blagodarnenskiy Region
         Stavropol Region, Russia


POCHEPSKIY HEMP: A. Samsonov to Manage Bankruptcy Assets
--------------------------------------------------------
The Arbitration Court of Bryansk Region appointed Mr. A.
Samsonov as insolvency manager for Federal State Unitary
Enterprise Pochepskiy Hemp Factory (Case No. A09-6251/05-27).  
He can be reached at:

         Repina Str. 16A-30
         241011, Bryansk Region, Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.

The Debtor can be reached at:

         Federal State Unitary Enterprise
         Pochepskiy Hemp Factory
         Usievicha Str. 95
         Pochep
         243400, Bryansk Region, Russia


REPAIR-TECHNICAL: Court Commences Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Adygeya Republic has commenced
bankruptcy supervision procedure on OJSC Repair-Technical
Enterprise (Case No. A01-B-1049-2004-8).

Mr. A. Fedorenko has been appointed temporary insolvency manager
and can be reached at:

         Office 301
         Lenina Str. 384
         355003, Stavropol Region, Russia

The Debtor can be reached at:

         OJSC Repair-Technical Enterprise
         Lenina Str. 242 A
         Tulskiy Region
         Maykopskiy Region
         385730, Adygeya Republic, Russia


RUKOPOLSKIY ELEVATOR: Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Saratov Region has commenced bankruptcy
supervision procedure on OJSC Rukopolskiy Elevator (TIN
6418000078).  The case was docketed under Case no. A57-393B/
05-23.

Mr. V. Potekhin has been appointed temporary insolvency manager
and can be reached at:

         Ak Zhuk Str. 27
         Balakovo
         413853, Saratov Region, Russia

The Debtor can be reached at:

         OJSC Rukopolskiy Elevator
         Rukopol
         Krasnopartizanskiy Region
         Saratov Region, Russia


STUPINSKIY GLASS-FIBER: Court Begins Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Moscow Region has commenced bankruptcy
supervision procedure on OJSC Stupinskiy Factory Of Glass-Fiber
Material (TIN 5045003040).  The case was docketed under Case No.
A41-K2-990/06.

Mr. M. Paskhin has been appointed temporary insolvency manager
and can be reached at:

         Apartment 115
         40 Let Oktyabrya Str. 63
         Kansk
         663606, Krasnoyarsk Region, Russia

The Debtor can be reached at:

         OJSC Stupinskiy Factory of Glass-Fiber Material
         Building 5/1
         Zagorodnaya Str.
         Stupino
         Moscow Region, Russia


TATFONDBANK: Moody's Revises B3 Rating Outlook to Positive
----------------------------------------------------------
Moody's Investors Service has changed the outlook on
Tatfondbank's B3 long-term foreign currency deposit rating to
positive from stable.  

The bank's Not-Prime short-term deposit rating and E+ financial
strength rating have been affirmed with a stable outlook.

At the same time, Moody's Interfax Rating Agency has affirmed
the bank's Baa2.ru long-term national scale credit rating.  
Moscow-based Moody's Interfax is majority-owned by Moody's, a
leading global rating agency.

According to Moody's and Moody's Interfax, the outlook change
reflects an increased likelihood of support for the bank in the
event of need from the regional authorities of the Republic of
Tatarstan, following the merger with Tatagroprombank, a
specialized regional lender to the agricultural sector in
Tatarstan.  

Moreover, some positive trends in the bank's financial figures
as reported under IFRS indicate that the potential for an
eventual need for outside support for Tatfondbank may have
diminished.  This applies to a reduced, though still excessive,
proportion of related party loans on the bank's books, a lower
single-party concentration level in the loan portfolio and
better bottom-line profitability.  

The rating agency notes that the B3 long-term deposit rating for
Tatfondbank may be upgraded if those trends prove sustainable
and if the financial performance and capitalization levels
improve and become more in line with Tatfondbank's higher-rated
peers.

Tatfondbank is headquartered in Kazan, Republic of Tatarstan,
Russian Federation.  The bank reported total consolidated assets
of RUB19.2 billion (US$666 million) and total equity of RUB1.8
billion (US$61 million) under IFRS as at Dec. 31, 2005.  

Following high double-digit growth during the last five years,
the bank ranked 52nd in Russia in terms of total assets as at
year-end 2005.  


VIMPELCOM: Moscow Court Upholds Vote on Ukrainian Radio Takeover
----------------------------------------------------------------
The Moscow Arbitration Court has ruled in favor of VimpelCom in
one of the lawsuits filed by Telenor East Invest A.S.  The
Company is pleased with the court's decision, which upheld the
validity of the September 2005 shareholder vote that approved
the acquisition of CJSC Ukrainian Radio Systems as an interested
party transaction.

"We are very pleased that the Moscow Arbitration Court ruled in
VimpelCom's favor and refused to invalidate the EGM decision,"
VimpelCom Chairman David Haines said.  "An overwhelming 89% of
our public shareholders who voted at the EGM voted in favor of
the URS acquisition after an open and thorough public debate.  
It is my hope that this decision and the prior vote of the
shareholders send a clear message to Telenor that it is time to
act in the best interests of all the shareholders in VimpelCom
and withdraw their remaining lawsuits against the Company."

The court ruling is subject to appeal and Telenor has announced
its intention to appeal.

                      About VimpelCom

Headquartered in Moscow, Russia, VimpelCom --
http://www.vimpelcom.com/-- provides mobile telecommunications  
services in Russia and Kazakhstan with newly acquired operations
in Ukraine, Tajikistan and Uzbekistan.  The Company operates
under the 'Beeline' brand in Russia and Kazakhstan.  In
addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS'
brands in Kazakhstan.

                        *     *     *

As reported in TCR-Europe on Feb. 16, Standard & Poor's Ratings
Services said that its ratings and outlook on Russian mobile
telecommunications operator Vimpel-Communications (VimpelCom;
BB/Positive/--) are unaffected by the company's announcement
that it has launched a bid for Ukraine-based mobile
telecommunications operator CJSC Kyivstar GSM (BB-/Watch
Positive/--) for a consideration of US$5 billion in VimpelCom
common registered shares plus assumed debt.


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


CONVERIUM HOLDING: Names New Members of Global Executive Panel
--------------------------------------------------------------
Converium Holding AG appointed Paolo De Martin and Andreas
Zdrenyk as new members of the Company's Global Executive
Committee, effective July 1.

Paolo De Martin, a 36-year-old Italian citizen, is currently
Chief Financial Officer of GE Frankona group, based in Munich.
He took on this task in 2003, following the successful
performance of a variety of internal audit and financial
planning roles within GE.

Andreas Zdrenyk, a 46-year-old Swiss citizen, currently serves
as Converium's interim Chief Financial Officer, a role he
assumed in February 2005.  As the new Chief Operating Officer,
Andreas Zdrenyk will be responsible for operations management
including Information Technology.

CEO Inga Beale commented, "I am delighted that Paolo De Martin
will join Converium.  His distinct global leadership experience
and specific expertise in all relevant finance areas, including
rating agency relations and regulatory matters, will boost our
efforts to complete Converium's turnaround and to re-establish
the Company as one of the world's top ten reinsurance players."

"My sincere thanks go to Andreas Zdrenyk who has successfully
managed our finance function in a very challenging transition
period, which also saw the restatement of prior year financial
accounts.  I am pleased that Andy will now take on the new role
of COO, enabling Converium to benefit from his vast experience
in operational management.  The creation of this function
demonstrates Converium's commitment to process excellence as a
key prerequisite to our future success," Inga Beale added.

Headquartered in Switzerland, Converium Holding AG --
http://www.converium.com/-- an independent international multi-  
line reinsurer known for its innovation, professionalism and
service.  Converium employs about 600 people in 20 offices
around the globe and is organized into four business segments:
Standard Property & Casualty Reinsurance, Specialty Lines and
Life & Health Reinsurance, which are based principally on
ongoing global lines of business, as well as the Run-Off
segment, which primarily comprises the business from Converium
Reinsurance (North America) Inc., excluding the U.S. originated
aviation business portfolio.  

                        *     *     *

Following its publication of its 2005 year-end results, restated
financial information for the periods 1998 to 2004, and for each
quarter from March 31, 2003, to June 2005, Fitch Ratings
affirmed Converium AG's Insurer Financial Strength BBB- rating
and removed it from Rating Watch Negative on which it had been
placed since Nov. 4, 2005.

Fitch also affirmed other ratings within Converium group and
also withdrawn them from RWN:

  a) Converium AG IFS affirmed at BBB-;
  b) Converium AG IDR affirmed at BBB-;
  c) Converium Insurance Limited affirmed at IFS BBB-;
  d) Converium Ruckversicherungs AG affirmed at IFS BBB-;
  e) Converium Holding AG IDR affirmed at BB; and
  f) Converium Finance S.A.'s USD 200 million subordinated debt   
     due 2032 affirmed at BB+.


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


AGRO-TRANS: Kyiv Court Opens Bankruptcy Proceedings
---------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
proceedings against LLC Agro-Trans (Case No. 43/177) after
finding it insolvent on March 23.  

Mr. Viktor Denisenko has been appointed Liquidator/Insolvency
Manager and can be reached at:

         Peremogi Avenue 57
         03113, Kyiv Region, Ukraine

The Economic Court of Kyiv Region is located in:

         B. Hmelnitskij Boulevard 44-B
         01030, Kyiv Region, Ukraine

The Debtor can be reached at:

         LLC Agro-Trans
         Bakunin Str. 4
         03061, Kyiv Region, Ukraine


AGROEXPORT: Court Names Oleksij Solyanik as Insolvency Manager
--------------------------------------------------------------
The Economic Court of Mikolaiv Region appointed Oleksij Solyanik
as Liquidator/Insolvency Manager for OJSC AGROEXPORT (code
EDRPOU 25376829).  He can be reached at:

         Nestorivskij Lane 7/12
         04053, Kyiv Region, Ukraine

The Court commenced bankruptcy proceedings against the company
on March 23 after finding it insolvent.  The case is docketed
under Case No. 10/171/06.

The Economic Court of Mikolaiv Region is located in:

         Admiralska Str. 22
         54009, Mikolaiv Region, Ukraine

The Debtor can be reached at:

         OJSC Agroexport
         57263, Mikolaiv Region,
         Zhovtnevij District, Shevchenkove,
         Vrozhajna Str. 1


BILOPILLYA' MACHINE: Court Commences Bankruptcy Process
-------------------------------------------------------
The Economic Court of Sumi Region commenced bankruptcy
supervision procedure on OJSC Bilopillya' Machine Building Plant
(code EDRPOU 14015761).  The case is docketed under Case No.
12/7-06.

Mr. Usenko Mikola has been appointed temporary insolvency
manager and can be reached at:

         Kozatskij Val Str. 2a/4
         40000, Sumi Region, Ukraine

The Economic Court of Sumi Region is located in:

         Shevchenko Avenue 18/1
         40030, Sumi Region, Ukraine

The Debtor can be reached at:

         OJSC Bilopillya' Machine Building Plant
         Makarenko Str. 1
         Bilopillya
         41800, Sumi Region, Ukraine


INTERSPECINVEST: Kyiv Court Begins Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Interspecinvest (code EDRPOU
33060009).  The case is docketed under Case No. 43/148.

Oleksij Sherban has been appointed temporary insolvency manager
and can be reached at:

         a/b 157
         01030, Kyiv Region, Ukraine

The Economic Court of Kyiv Region is located in:

         B. Hmelnitskij Boulevard 44-B
         01030, Kyiv Region, Ukraine

The Debtor can be reached at:

         LLC Interspecinvest
         Shose Zaliznichne, 57
         01103, Kyiv Region, Ukraine


KOLOSOVSKIJ ELEVATOR: Court Begins Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Mikolaiv Region renewed bankruptcy
supervision procedure on OJSC Kolosovskij Elevator (code EDRPOU
00955012) on March 9.  The case is docketed under Case No.
14/184.

Dmitro Shulga has been appointed temporary insolvency manager
and can be reached at:

         Raketna Str. 35
         Mikolaiv Region, Ukraine

The Economic Court of Mikolaiv Region is located in:

         Admiralska Str. 22
         54009, Mikolaiv Region, Ukraine

The Debtor can be reached at:

         OJSC Kolosovskij Elevator
         Kudryavtsivka
         Veselinivskij District
         Mikolaiv Region, Ukraine


SHOSTKINSKIJ AGROHIM: Dmitro Kozin to Liquidate Assets
------------------------------------------------------
The Economic Court of Sumi Region appointed Dmitro Kozin as
Liquidator/Insolvency Manager for OJSC Shostkinskij Agrohim
(code EDRPOU 05490776).  He can be reached at:

         Office 22
         Internatsionalistiv Str. 5
         40035, Sumi Region, Ukraine

The Court commenced bankruptcy proceedings against the company
on March 16 after finding it insolvent.  The case is docketed
under Case No. 6/99-05.

The Economic Court of Sumi Region is located in:

         Shevchenko Avenue 18/1
         40030, Sumi Region, Ukraine

The Debtor can be reached at:

         OJSC Shostkinskij Agrohim
         Bakinskih komisariv Str. 107
         Shostka
         41100, Sumi Region, Ukraine


VARENICHNA: Lutsk' State Tax Inspection to Liquidate Assets
-----------------------------------------------------------
The Economic Court of Volinska Region appointed Lutsk' State Tax
Inspection as liquidator for LLC Varenichn (Case No. 5/16-B).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.

The Economic Court of Volinska Region is located in:

         Voli Avenue 54-a
         43010, Lutsk Region, Ukraine

The Debtor can be reached at:

         LLC Varenichna
         Privokzalna Str. 8
         43005, Lutsk Region, Ukraine


YUSTAV: Court Taps Oleksij Sherban as Interim Insolvency Manager
----------------------------------------------------------------
The Economic Court of Kyiv Region appointed Oleksij Sherban as
temporary insolvency manager for LLC Yustav (code EDRPOU
24590041).  He can be reached at:

         a/b 157
         01030, Kyiv Region, Ukraine

The Court commenced bankruptcy supervision procedure on the
company on March 16.  The case is docketed under Case No.
43/149.

The Economic Court of Kyiv Region is located in:

         B. Hmelnitskij Boulevard 44-B
         01030, Kyiv Region, Ukraine

The Debtor can be reached at:

         LLC Yustav
         Mateyuk Str. 4
         02156, Kyiv Region, Ukraine


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


ANDERSON BUSINESS: Claims Filing Period Ends July 31
----------------------------------------------------
Anderson Business College Ltd. is liquidating its assets after
creditors decided to wind up the company's operations on
March 20.

Appointed Liquidator, E. Walls, requires creditors to send in
their full names, addresses and descriptions, full particulars
of debts or claims, and the names and addresses of Solicitors
(if any) on or before July 31.

The company can be contacted at:

         Anderson Business College Ltd.
         Wearside Bsns Innovation Cntr
         Tyne & Wear SR5 2TA
         United Kingdom
         Tel: 0191 516 6313


AQUASAT LIMITED: Appoints Stephen John Tancock as Administrator
---------------------------------------------------------------
Stephen John Tancock of Smith & Williamson Limited was appointed
administrator of Aquasat Limited (Company Number 03874257) on
April 19.

Smith & Williamson -- http://www.smith.williamson.co.uk/-- is  
an independent professional and financial services group
employing over 1,200 people.

Headquartered in Kent, England, Aquasat Limited offers remote
monitoring services to the water industry.


ASHWORTH PRINT: Taps KPMG LLP to Administer Assets
--------------------------------------------------
Richard Dixon Fleming and Howard Smith of KPMG LLP were
appointed joint administrators of Ashworth Print Limited
(Company Number 01678454) on May 4.

KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a  
strong global network of member firms with 9,500 partners and
staff working in 22 offices across the U.K. providing audit, tax
and advisory services.

Ashworth Print Limited can be reached at:

         Unit 1 Naviagation Park
         Lockside Rd
         Leeds LS10 1EP
         Tel: 0113 271 7978  


AVELEY GARAGES: Financial Woes Trigger Liquidation
--------------------------------------------------
Aveley Garages Limited is liquidating its assets after creditors
found out that the company could no longer continue its business
due to mounting debts.

Keith Barry Stout was appointed Liquidator.

The company can be contacted at:

         Aveley Garages Limited
         77-79, High Street
         Aveley
         South Ockendon
         Essex RM15 4AX
         United Kingdom
         Tel: 0170 886 7154


BILL WILLIAMS: Hires Joint Administrators from RMT
--------------------------------------------------
Anthony Alan Josephs and Linda Ann Farish of R M T were
appointed joint administrators of Bill Williams Plumbing
Supplies Ltd. (Company Number 04765944) on May 2.

The administrators can be contacted at:

         R M T
         3 Portland Terrace
         Jesmond
         Newcastle Upon Tyne
         Tyne And Wear NE2 1QQ
         United Kingdom
         Tel: 0191 281 8816
         Fax: 0191 281 0530
         E-mail: linda.farish@r-m-t.co.uk

The company can be reached at:

         Bill Williams Plumbing Supplies Limited
         8A Carrmere Road
         Leechmere Industrial Estate
         Sunderland SR2 9TW
         United Kingdom
         Tel: 0191 523 9888


BIRMINGHAM ACUTE: Appoints Administrator from Crawfords
-------------------------------------------------------
David N. Kaye of Crawfords was appointed administrator of
Birmingham Acute Transport Service Limited (Company Number
05615263) on April 24.

The administrator can be reached at:

         Crawfords
         Stanton House
         41 Blackfriars Road
         Salford
         Manchester M3 7DB
         United Kingdom
         Tel: 0161 828 1000
         Fax: 0161 832 1829
         E-mail: akachani@aol.com

Headquartered in Birmingham, England, Birmingham Acute Transport
Service Limited is engaged in ambulance services.


BLAZE ACQUISITIONS: Appoints Grant Thornton Administrators
----------------------------------------------------------
Andrew Hosking and Martin Gilbert Ellis of Grant Thornton U.K.
LLP were appointed joint administrators of Blaze Acquisitions
Limited (Company Number 02022925) on April 28.

Headquartered in London, Grant Thornton U.K. LLP --
http://www.grant-thornton.co.uk/-- is the U.K. member of Grant  
Thornton International, one of the world's leading international
organizations of independently owned and managed accounting and
consulting firms.

Headquartered in Kent, London Blaze Acquisitions Limited is a
holding company for a group engaged in illuminated sign
manufacture, maintenance and contracting.


CALLOW & MADDOX: Taps Joint Administrators from Kroll
-----------------------------------------------------
Adrian Wolstenholme and Joanne Wright of Kroll were appointed
joint administrators of Callow & Maddox Limited (Company Number
04461947) on May 5.

Kroll Limited -- http://www.krollworldwide.com/-- offers risk-
consulting services worldwide.

Callow and Maddox -- http://www.callowandmaddox.com/-- supplies  
seating and interior trim to the automotive industry, developing
and manufacturing innovative product solutions from Concept to
Production.


CODENT LTD: Joint Administrators from Lines Henry Take Helm
-----------------------------------------------------------
Neil Henry and Michael Simister of Lines Henry were appointed
joint administrators of Codent Ltd. (Company Number 02925113) on
May 5.

The administrators can be contacted at:

         Lines Henry
         27 The Downs
         Altrincham
         Cheshire WA14 2QD
         United Kingdom
         Tel: 0161 929 1905
         Fax: 0161 929 1977
         E-mail: nola@lineshenry.co.uk

Located in Stockport, Cheshire, Codent Ltd. manufactures and
supplies industrial ink jet printing machines.


DEERHUNTER LIMITED: Appoints A. Poxon to Liquidate Assets
---------------------------------------------------------
A. Poxon, of DTE Leonard Curtis, was appointed Liquidator of
Deerhunter Limited after creditors passed a resolution to wind
up the company during an extraordinary general meeting on March
14.

DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax  
consultancy, company secretarial services, corporate finance,
corporate recovery, turnaround, forensic accounting, financial
services and insurance & risk management.

Deerhunter Limited can be reached at:

         Hunter House
         Holloway Drive
         Worsley
         Manchester M28 2LA
         United Kingdom
         Tel: 0161 728 7590
         Fax: 0161 728 7599


DIRECT READY: Liquidator Sets May 21 Claims Bar Date
----------------------------------------------------
Creditors of Direct Ready Mix Limited passed a resolution to
wind up the company during an extraordinary general meeting on
March 21.

Appointed Liquidator, Barry P. Knights, of Knights & Company,
requires creditors to send in their full names, addresses and
descriptions, full particulars of debts or claims, and the names
and addresses of Solicitors (if any) on or before May 21.

The company can be reached at:

         Direct Ready Mix Limited
         Alderney Works, 14A
         St. Georges Avenue
         Parkstone, Poole
         Dorset BH12 4ND
         United Kingdom
         Tel: 0120 273 7733


EUROTUNNEL: Restructuring Talks with Creditors Continue
-------------------------------------------------------
Eurotunnel informed the British and French market authorities of
the state of progress with discussions underway concerning the
restructuring of the Group's finances.

Eurotunnel requested to retain suspension of its shares on the
two exchanges to allow discussions to continue.

The discussions are taking place with the creditors and the
Goldman Sachs/Macquarie consortium.  The possible enlargement of
this consortium led to prolonged negotiations.

As a result, the mid-May review announced by Eurotunnel is
postponed.  Until that time, the Group will keep the
confidentiality surrounding the negotiations.

Eurotunnel obtained on April 26 a third extension of its credit
waiver through July 12.  

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a  
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.  

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.


H & M.WARD & SON: Joint Liquidators Take Over Operations
--------------------------------------------------------
John Russell and Andrew Philip Wood, both of The P&A
Partnership, were appointed Joint Liquidators of H & M.Ward &
Son(Builders)Limited after creditors resolved to wind up the
company's operations on March 16.

The P&A Partnership (aka Poppleton and Appleby) --
http://www.thepandapartnership.com/-- acts for all clearing  
banks and a growing number of factors and asset lenders.  Its
clients include multinational PLCs, SMEs, financial
institutions, accountants, solicitors and business advisors.

The company can be reached at:

         H & M.Ward & Son (Builders) Limited
         Grange Lane
         Barnsley S71 5AF
         United Kingdom
         Tel: 01226 203 604
         Fax: 01226 244 789


MEDITERRANEAN TRANSPORT: Creditors Agree to Liquidation
-------------------------------------------------------
Mediterranean Transport Services Limited is winding up its
business after creditors agreed to liquidate the company's
assets during an extraordinary general meeting on March 6.

Alex Kachani, of Crawfords, was appointed Liquidator.

Director S. G. Roshier disclosed that the company could no
longer continue its operations due to mounting debts.

The company can be reached at:

         Mediterranean Transport Services Limited
         Grantham Road
         Boston Lincolnshire PE217NL
         United Kingdom
         Tel: 01205 356 653


NOVELIS INC: Moody's Reviews Low-B Ratings & May Downgrade
----------------------------------------------------------
Moody's Investors Service placed the ratings of Novelis Inc.,
and its subsidiary, Novelis Corporation, under review for
possible downgrade.  In a related rating action, Moody's changed
Novelis Inc's speculative grade liquidity rating to SGL-3 from
SGL-2.

While Moody's expects the company to file its Form 10-Q for the
third quarter 2005 and restated second and first quarter 2005
Form 10-Q's within the time frame provided by the fourth waiver,
the review is prompted by the company's further push-out of the
time frame in which the Form 10K for 2005 and the Form 10Q's for
each of the first three quarters of 2006 will be provided.

Under the company's fourth waiver with the lenders in the
revolving credit and the term loan B facilities the deadline for
filing the Form 10Q's for the first three quarters of 2005 is
extended to June 15, 2006, the 2005 10-K is extended to Sept.
29, 2006, while the filing dates for the first, second and third
quarter 10Q's are extended to Oct. 31, 2006, Nov. 30, 2006, and
Dec. 29, 2006, respectively.

While Moody's notes the company disclosed that debt has been
reduced by approximately US$380 million since the spin-off,
ringing total debt to approximately US$2.5 billion, the lack of
timely audited financials and quarterly Form 10Q's continues to
result in uncertainty over the company's financial performance.

In the event the company is not able to meet the revised filing
dates Moody's would consider withdrawing the company's ratings
at that time.

The change in the speculative grade liquidity rating to SGL-3 is
driven principally by concerns over liquidity available from
external sources.  The continued need to obtain waivers from the
bank group to extend the date required for the delivery of
financial statements makes Novelis vulnerable to the decisions
by the banks on a relatively short time scale.

While the banks have been amenable to date in providing waivers,
there is no assurance that they would do so going forward.  
Given the shorter than twelve month time horizon provided by the
waivers, Moody's methodology for SGL ratings would consider
amounts drawn, either under the revolver or the term loans, to
represent a debt maturity over the next several months.

In addition, given the continued strengthening in aluminum
prices and Moody's expectation that working capital requirements
will increase on the significant price run-up since the
beginning of 2006, continued availability under the revolver
remains a key issue.

Downgrades:

Issuer: Novelis Inc.

   * Speculative Grade Liquidity Rating, Downgraded to SGL-3
     from SGL-2

On Review for Possible Downgrade:

Issuer: Novelis Corporation

   * Senior Secured Bank Credit Facility, Placed on Review for
     Possible Downgrade, currently Ba2

Issuer: Novelis Inc.

   * Corporate Family Rating, Placed on Review for Possible
     Downgrade, currently Ba3

   * Senior Secured Bank Credit Facility, Placed on Review for
     Possible Downgrade, currently Ba2

   * Senior Unsecured Regular Bond/Debenture, Placed on Review
     for Possible Downgrade, currently B1

Outlook Actions:

Issuer: Novelis Corporation

   * Outlook, Changed To Rating Under Review From Stable

Issuer: Novelis Inc.

   * Outlook, Changed To Rating Under Review From Stable

Headquartered in Atlanta, Georgia, Novelis Inc. is the world's
leading aluminum rolled products producer.  Revenues were US$7.8
billion in 2004.


NOVELIS INC: Lenders Extend Financial Statement Filing Schedule  
---------------------------------------------------------------
Novelis Inc.'s lenders have agreed to waive the company's non-
compliance with the provision of its Jan. 7, 2005, Credit
Agreement that requires the Company to furnish timely
consolidated financial statements in the 2005 Annual Report on
Form 10-K and the Form 10-Qs for the first, second and third
quarters of 2006.  

The waiver extends the deadline for filing the Annual Report for
2005 until Sept. 29.  The quarterly filings for the first,
second and third quarters of 2006 must be completed by Oct. 31,
2006, Nov. 30, 2006, and Dec. 29, 2006, respectively.  The
waiver also extends until June 15, 2006, the deadline for filing
the third quarter of 2005, and the re-stated first and second
quarters of 2005.

On May 5, the Company applied to the Ontario Superior Court of
Justice for an order extending the time for holding the annual
meeting date to a date not later than Dec. 31, 2006.  Novelis
received the order on May 9, 2006, allowing it to extend the
date.  The Company is currently evaluating the time that will be
required to complete, print and mail its 2005 Annual Report.  
Once this analysis is finalized, the Company will announce the
new date for the annual meeting and record date.

A full-text copy of the Credit Agreement is available at no
charge at http://ResearchArchives.com/t/s?7fc

Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL)(TSX: NVL) --
http://www.novelis.com/-- provides customers with a regional  
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

                          *     *     *

As reported in the Troubled Company Reporter on April 11,
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit and bank loan ratings and 'B' senior unsecured
debt rating on Novelis Inc. on CreditWatch with negative
implications.


OLD MANOR: Creditors Confirm Voluntary Liquidation
--------------------------------------------------
Creditors of Old Manor Cottages Limited confirmed the company's
voluntary liquidation after a winding up resolution was passed
during an extraordinary general meeting on March 20.

Creditors also ratified the appointment of Stephen Robert Cork
and Joanne Elizabeth Milner, both of Prospect House, as Joint
Liquidators.

The company can be reached at:

         Old Manor Cottages Limited
         Old Manor Cottage
         Turnpike Lane
         Ickleford Hitchin Hertfordshire SG5 3UZ
         United Kingdom
         Tel: 01462 456 033


RANK GROUP: Cancels 500,000 Ordinary Shares in Buyback Program
--------------------------------------------------------------
The Rank Group Plc bought back 500,000 ordinary shares of 10
pence in the Company on May 17 for cancellation at an average
price of 216.25 pence per share.

Headquartered in London, Rank Group PLC -- http://www.rank.com/   
-- is an international leisure and entertainment company.  The
Group provides services to the film industry, including film
processing, video duplication and cinema exhibition.  The
Group's leisure and entertainment activities entail gambling
services, encompassing Mecca Bingo Clubs and Grosvenor Casinos,
and owned and franchises Hard Rock cafes.

                        *     *     *

As reported in the TCR-Europe on March 8 Moody's Investors
Service assigned a Ba2 corporate family rating to The Rank Group
Plc and concurrently downgraded the senior unsecured long-term
debt ratings of Rank Group Finance Plc (guaranteed by The Rank
Group Plc) to Ba2 (from Baa3).

At the same time, Fitch Ratings downgraded The Rank Group PLC's
Long-term Issuer Default rating and Senior Unsecured ratings to
BB- from BB+ and removed them from Rating Watch Negative.  A
Negative Outlook is assigned.  The Short-term rating is affirmed
at B.  The downgrade follows the disposal of its film processing
business, Deluxe Film, and confirmation of a return of capital
to shareholders announced in conjunction with its 2005
preliminary results.

In addition, Standard & Poor's Ratings Services lowered its
long- and short-term corporate credit ratings on U.K.-based
diversified leisure and entertainment company The Rank Group PLC
to 'BB-/B' from 'BBB-/A-3'.  S&P said the outlook is stable.


REFCO: BAWAG Endorses Settlement Pact with Refco Creditors
----------------------------------------------------------
Bloomberg News reports that BAWAG P.S.K. Bank fur Arbeit und
Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft
has endorsed a final settlement that may resolve all claims
filed by the creditors and investors of Refco, Inc.

BAWAG has previously agreed to pay a US$675 million settlement
amount.

Under the proposed settlement, BAWAG will initially pay
US$75 million, and the remaining amount will be paid in
installments, according to Bloomberg's Matthias Wabl, citing Der
Standard newspaper.  About US$300 million will go to the Refco
creditors, while the other US$300 million will be distributed to
their U.S. counsel who will use the funds for possible class
action lawsuits, Bloomberg News reports.

In addition, BAWAG will renounce any claims against Refco,
Bloomberg relates.  BAWAG's owner -- the Austrian Trade Union
Federation -- will also pay 30% of any amount from the sale of
the bank that goes beyond US$1.8 billion.  The payments are
capped at US$200 million.

Thomas Heimhofer, spokesman for BAWAG, declined to comment on
the report.

                 Judge Drain Amends Modified TRO

BAWAG P.S.K. and the Official Committee of Unsecured Creditors
have agreed to amend the first modified order of attachment and
temporary restraining order, to substitute for one of the four
specific accounts that are required to keep a minimum of US$1.16
billion of BAWAG assets, a different account maintained at the
same institution.

Accordingly, the Bankruptcy Court issued a second amended order.

The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York rules that until the time as the
Second Amended Order is modified or vacated by the Court, BAWAG
will maintain in New York assets in these Attached Accounts:

     Attached Account      Location            Minimum
     ----------------      --------            -------
     Undisclosed           New York     US$200,000,000

     Undisclosed           New York     US$540,000,000

     Undisclosed           New York     US$350,000,000

     Various loans to                    US$66,000,000
        Counterparties
        in the U.S.

BAWAG is be permitted to use the Attached Accounts in the
ordinary course of its banking business provided that the market
value of the assets in the Attached Accounts will not at any
time fall below the minimum.

BAWAG will provide the Creditors Committee information
sufficient to identify the loans made to various U.S.
counterparties.  Any interest and principal payments made on the
loans will be deposited and maintained in a segregated account
opened by BAWAG at an undisclosed account in New York.  In
addition, any amounts deposited in the Loan Proceeds Account
will immediately be subject to the Second Amended Order.  

For purposes of the Loans, the US$66 million Minimum will be
calculated as:

   (i) the sum of the interest and principal deposited and
       maintained in the Loan Proceeds Account; and

  (ii) the aggregate outstanding loan amounts on all Loans.

Unless the Second Amended Order is modified or vacated, the
Creditors Committee and Refco Group Limited, LLC, will be deemed
to have a valid attachment pursuant to N.Y. CPLR Sec. 6200 over
all property held in the Attached Accounts that is perfected at
the time of the Attachment and TRO.  The Creditors Committee and
RGL will also be adjudicated senior to any other filing by any
other entity with respect to the Attached Property, and neither
the parties will be required to file or serve confirmations,
financing statements, mortgages or similar instruments which may
be required to perfect attachments under federal or state law in
any jurisdiction.

Furthermore, Judge Drain directs that an unredacted form of the
Attached Accounts will be filed under seal and will remain under
seal until further Court order.  The redacted form of the
Attached Accounts will be filed in public.

Judge Drain also requires BAWAG to provide daily account
statements at a time and in a form reasonably acceptable to the
Creditors Committee identifying the market value of each of the
Attached Accounts.

BAWAG waives any claim or damages arising from any claim that
the Creditors Committee or RGL was not entitled to an attachment
of BAWAG's property, or that BAWAG was wrongfully enjoined or
restrained.

Headquartered in Vienna, Austria, BAWAG P.S.K. (Bank fur Arbeit
und Wirtschaft AG) is an Austrian universal bank founded in 1922
by former Austrian Chancellor Karl Renner.  As of 2004, the
bank's majority shareholder was the OGB (Osterreichischer
Gewerkschaftsbund), the Austrian Trade Union Federation.  The
bank reported total consolidated assets of EUR56 billion as of
Dec. 31, 2004.

Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).  
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.


THX TRADE: Creditors' Meeting Slated for May 25
-----------------------------------------------
Creditors of THX Trade Limited (Company Number 04401840) will
meet at 10:00 a.m. on May 25 at:

         The Institute of Directors
         West Midlands Suite
         1 Victoria Square
         Birmingham B1 1BD
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on May 24 at:

         James P.N. Martin
         Joint Administrator
         Begbies Traynor
         4th Floor
         Newater House
         11 Newhall Street
         Birmingham B3 3NY
         United Kingdom

Headquartered in Manchester, Begbies Traynor --
http://www.begbies.com/-- assists companies, creditors,  
financial institutions and individuals on all aspects of
financial restructuring and corporate recovery.  


UKAE HOLDINGS: Taps Deloitte & Touche Administrators
----------------------------------------------------
David John Langton, Andrew Philip Peters and Dominic Lee Zoong
Wong of Deloitte & Touche LLP were appointed joint
administrators of UKAE Holdings Limited (Company Number
03821210) on April 27.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.

Headquartered in Minworth, England, UKAE Holdings Limited has
subsidiaries engaged in manufacturing and distribution of window
products.


V R PLASTICS: Bank of Scotland Appoints PWC Receivers
-----------------------------------------------------
Bank of Scotland appointed Stuart David Maddison and David
Matthew Hammond of PricewaterhouseCoopers LLP joint
administrative receivers of V.R. Plastics Ltd. (Company Number
02189037) on May 4.

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--  
provides, among others, auditing services, accounting advice,
tax compliance and consulting, financial consulting and advisory
services to clients in a variety of industries.  

Headquartered in Pinxton, England, V R Plastics Ltd.
manufactures plastic closures and components.


* Fitch's Views on Growing Risks in Emerging Europe
---------------------------------------------------
Fitch Ratings articulated that some risks are growing in
emerging Europe on the back of rising inflation, widening
current account deficits and political factors.  This is one of
the conclusions in "Emerging Europe Sovereign Review: 2006",
which looked at the economic and credit outlook in the region.

Head of Fitch's Emerging Europe Sovereign Group in London,
Edward Parker, disclosed, "Overall, Fitch sees creditworthiness
continuing to improve in Emerging Europe, driven by robust
economic growth and EU convergence, though the pace of rating
upgrades has slowed over the past 12 months."

"In many countries, several risk factors are starting to
register larger on the radar screen: rising inflationary
pressures, the eye-popping scale of bank credit growth and
current account deficits and political risks associated with a
packed electoral schedule and EU and euro area enlargement
fatigue," he added.

The global backdrop remains generally favorable for the
economies of emerging Europe, which Fitch expects to expand by
5.5% this year, supported by gains in export market share, the
pick-up in Germany, strong capital inflows, rapid bank credit
growth and high oil prices in the Commonwealth of Independent
States.  

However, global monetary policy tightening and some signs of
choppier financial market conditions will raise debt service
costs and the risk premium attached to policy mistakes.  Fitch
estimates that emerging Europe has the largest gross external
financing needs of any emerging market region at US$156 billion
this year.

The scale of current account deficits and external financing
needs, rising external debt burdens, explosive pace of bank
credit growth and flashing warning signals from macro-prudential
indicators in many countries beg the question about the
sustainability of such trends, which look stretched by
historical comparisons, including relative to pre-crisis Asia.

However, some measures of liquidity are stronger in emerging
Europe, as are the quality of market institutions, data and
policy transparency, and foreign-owned banks.  Furthermore, it
is not obvious what might trigger an eventual slowdown and
whether that might be a gradual or a more abrupt correction.

Inflation rates have risen in much of the region owing to higher
commodity prices, booming economies, loose global monetary
conditions and capital inflows.  The inflation shock has been
felt more severely in countries with fixed exchange rates.

Inflation is in double-digits in most of the CIS, while
disinflation is running behind target in Romania and Turkey, and
is delaying euro adoption in the Baltic States.  The region
faces a heavy schedule of elections over the next 18 months that
could create pressures on public finances or give rise to event
risk in countries with weaker democratic institutions.  A more
general risk comes from signs of a dwindling appetite amongst
current EU members for further accession and euro area
membership, which are key anchors to political, economic and
financial stability in the region.

Sovereign credit ratings in emerging Europe have continued on
their long-standing upward trend, with five foreign currency
upgrades over the past 12 months, though none so far in 2006,
and only one downgrade.  Six out of 19 countries in the region
are on Positive Outlook, suggesting some remaining upward
momentum to ratings, albeit at a slower pace than in recent
years.

                           *********

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.  Jazel Laureno, Liv Arcipe, Julybien Atadero,
Carmel Paderog, and Joy Agravante, Editors.

Copyright 2006.  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$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.


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