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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

              Thursday, June 1, 2006, Vol. 7, No. 108

                            Headlines

A U S T R I A

BAR TRANSPORTLOGISTIK: Claims Filing Deadline Set for June 22
DOMINI: Claims Filing Deadline Slated for July 4
FASHION & MORE: Claims Filing Deadline Slated for June 20
GASTGEWERBE: Court Closes Bankruptcy Case After Claims Payment
GVOZ: Claims Filing Deadline Slated for June 28

HANF-PRODUKTIONS: Insufficient Funds Prompt Court to Close Case
HATO: Wiener Neustadt Court Closes Bankruptcy Proceedings
HISTORYWORLD AUSSTELLUNGS: Claims Filing Period Ends June 28
M&S GASTRONOMIEBETRIEBS: Vienna Court Closes Bankruptcy Case
MAC YPSILON: Court to Close Bankruptcy Case After Claims Payment

STRABAG SE: Solid Performance Prompts S&P to Lift Rating to BB+


F R A N C E

EUROTUNNEL GROUP: Citigroup Bares Alternative Rescue Plan


G E R M A N Y

COMBI-STAUFNER: Claims Registration Until June 16
ELISEO MODE: Claims Filing Period Ends June 16
ERKNER HAUSBAU: Claims Registration Ends June 15
FORTISSIMO AG: Claims Registration Ends June 14
HRB HOTEL: Claims Registration Ends June 14

JOSEF UNRUHE: Claims Filing Period Ends June 13
M & H SERVICE: Claims Registration Ends June 14
NOVAVISION SERVICES: Creditors' Meeting Slated for June 15
TOPCART INTERNATIONAL: Creditors' Meeting Slated for June 15
UMWELTTECHNIK-CURTI: Registration of Claims Ends June 15


H U N G A R Y

AES CORP: Inks Prelim Pact with BNDES to Repay Brasiliana's Debt
BORSODCHEM RT: Buying Treasury Shares to Stabilize Stock Price


I R E L A N D

EIRCOM GROUP: Credit Suisse Acquires 64,177,308 Shares


I T A L Y

ALITALIA SPA: Downplays Impact of Takeover Suspension on Results
PARMALAT SPA: Brazilian Unit's Creditors Amend Perdigao Deal
PARMALAT SPA: Clesa Unit to Close Two Spanish Production Plants


K A Z A K H S T A N

AK KASKOR: Mangistau Court Opens Bankruptcy Proceedings
ARDAK: Creditors Must File Claims by June 13
CINCO GROUP: Creditors Must File Claims by June 13
EVROPRESTIJ: Creditors Must File Claims by June 13
INTERTRUCK-URAL: Creditors' Claims Due June 13

KISANOV-A: Creditors' Claims Due June 13
MID: Proof of Claim Deadline Slated for June 13
ODINS: Mangistau Court Starts Bankruptcy Process
STROIMONTAJ: Proof of Claim Deadline Slated for June 13
WEST-POWER: Claims Registration Ends June 13


K Y R G Y Z S T A N

AIREK: Insolvency Manager Sets Asset Auction for June 8
AK-BULA: Insolvency Manager Sets June 5 Asset Auction
ANAR: Public Auction Scheduled for June 5
KYRGYZAGROPROMBANK: Public Auction Scheduled for June 6


R U S S I A

BOLSHEIGNATOV-AGRO-PROM-KHIMIYA: Court Taps Insolvency Manager
CREDIT BANK: Fitch Rates RUB1 Billion Bond at BB+
DOLGORUKOVO-AGRO-SERVICE: Court Commences Bankruptcy Supervision
IVNYA-AGRO-TRANS: Court Starts Bankruptcy Supervision
KULEBAKSKAYA STROY-MECHANIZATION: Court Taps Insolvency Manager

MALACHITE: Court Taps A. Kokorin as Interim Insolvency Manager
OAO SEVERSTAL: Russia Targets July Deadline for Arcelor Merger
OAO SEVERSTAL: Chairman to Keep Equity Stake at 32%
SEL-KHOZ-ASSEMBLING: Court Opens Bankruptcy Process
STROY-DETAIL: P. Volkov to Manage Insolvency Assets

TONKINSKAYA SEL-KHOZ-TEKHNIKA: Court Hearing Slated for June 20


S P A I N

PARMALAT SPA: Clesa Unit to Close Two Spanish Production Plants


T U R K E Y

TELSIM MOBIL: Pays US$341 Million Settlement to Nokia


U K R A I N E

ARTDAN: Court Taps Ludmila Zayikina as Insolvency Manager
CHERKASSY TIN: Cherkassy Court Starts Bankruptcy Supervision
CULTURE AND COMMERCE: Court Names Leonid Talan as Liquidator
ELTON: Court Taps Novovolinsk Tax Agency as Liquidator
PGM: Dnipropetrovsk Court Names I. Yasnogor to Liquidate Assets

SATELIT: Court Taps Yurij Bilik to Liquidate Assets
STRONG-KRIVBAS: Yurij Bilik to Manage Insolvency Assets
ZORYA: Poltava Court Commences Bankruptcy Supervision


U N I T E D   K I N G D O M

1ST CLASS: Appoints Tenon Recovery Administrators
A S COMM: Creditors Tap William Paxton to Liquidate Assets
CADVANCED LIMITED: Hires Jacksons Jolliffe Cork as Liquidator
CAMBERWELL REHABILITATION: Appoints Administrators from CBW
CHRISTOPHER MARTIN: Taps Grant Thornton as Administrator

CLEARFOLD LIMITED: Halts Operations & Appoints Liquidator
COOKING AND HEATING: Names Jackson Jolliffe to Administer Assets
CP ENGINEERING: Appoints Ian William Kings as Administrator
DATA RECOVERY: Names Paul Appleton to Liquidate Assets
ESSENTIAL ENVIRONMENT: Creditors Resolve to Liquidation

EUROTUNNEL GROUP: Citigroup Bares Alternative Rescue Plan
FM7 LIMITED: Creditors Agree to Liquidation
HMV GROUP: Ottakar's Accepts Revised GBP62.9-Mln Cash Bid
INHOUSEIT LIMITED: Financial Woes Trigger Liquidation
ISLE OF WIGHT: Creditors Confirm Voluntary Liquidation

KWIK TAPES: Names C.H.I. Moore as Administrator
MI SERVICES: Creditors' Meeting Slated for June 5
N.C. YARNS: David John Watchorn Leads Winding Up Procedure
P & S: Appoints Joint Liquidators from Parkin S Booth
RANK GROUP: Buys Back 750,000 Ordinary Shares for Cancellation

TIPIDEN LIMITED: Brings In Joint Liquidators from Insol House
TRUMAX LIMITED: Taps Menzies to Administer Assets
UNIVERSAL ENGINEERING: Brings In Tracy Taylor as Administrator
YELL GROUP: S&P to Cut Ratings to BB- on Telefonica Takeover

                            *********

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A U S T R I A
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BAR TRANSPORTLOGISTIK: Claims Filing Deadline Set for June 22
-------------------------------------------------------------
Creditors owed money by LLC Bar Transportlogistik (FN 199644w)
have until June 22 to submit written proofs of claim to:

         LLC Hochstaffl & Rupprechter
         Bahnhofstrasse 37/II
         6300 Worgl
         Austria
         Tel: 05332/71800
         Fax: 05332/718007
         E-mail: mail@hochstaffl-rupprechter.com

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on July 3 to consider the adoption of
the European Bankruptcy Code.

The first meeting of creditors will be held at:

         The Land Court of Innsbruck
         Conference Hall 212
         New Building, 2nd floor
         Maximilianstrasse 4
         6020 Innsbruck
         Austria

Headquartered in Schwaz, Austria, the Debtor declared bankruptcy
on May 4 (Bankr. Case No. 19 S 46/06x).


DOMINI: Claims Filing Deadline Slated for July 4
------------------------------------------------
Creditors owed money by Construction LLC Domini (FN 13340v) have
until July 4 to submit written proofs of claim to:

         LLC Goldsteiner Strebinger
         Wiener Strasse 14-16
         2700 Wiener Neustadt
         Austria
         Tel: 02622/24222
         Fax: 02622/24222-22
         E-mail: anwalt@rechtsbuero.at

The Land Court of Wiener Neustadt will convene at 1:00 p.m., on
July 18 to look into the Debtor's bankruptcy case.

Headquartered in Wiener Neustadt, Austria, the Debtor declared
bankruptcy on May 4 (Bankr. Case No. 11 Sa 3/06m).


FASHION & MORE: Claims Filing Deadline Slated for June 20
---------------------------------------------------------
Creditors owed money by LLC Fashion & More Trading (FN 212048k)
have until June 20 to submit written proofs of claim to court-
appointed property manager Erhard Hackl at:

         Erhard Hackl
         Hofgasse 7
         4020 Linz
         Austria
         Tel: 776234 / 776235
         Fax: 776234 22
         E-mail: hackl.hatak@aon.at

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on July 4 to consider the adoption of
the rule by revision and accountability.

Members of the Creditors' Committee:

  (a) Union of the Creditor of Alpine Countries (AKV)
  (b) Union of the Creditors' Protection (KSV)
  (c) Unioin of the Employer Protection From Insolvency (ISA)

Headquartered in Linz, Austria, the Debtor declared bankruptcy
on May 4 (Bankr. Case No. 38 S 24/06t).  


GASTGEWERBE: Court Closes Bankruptcy Case After Claims Payment
--------------------------------------------------------------
The Land Court of Krems an der Donau entered an order closing
the bankruptcy case of LLC Gastgewerbe Betriebs (FN 120821d) on
May 4 after the Debtor's final distribution to creditors.

Creditors recovered 15.28% on account of their claim.

Headquartered in Gmuend, Austria, the Debtor declared bankruptcy
on July 1, 2005 (Bankr. Case No. 9 S 24/05k).  Frank Riel served
as the court-appointed property manager for the bankrupt estate.


GVOZ: Claims Filing Deadline Slated for June 28
-----------------------------------------------
Creditors owed money by Construction and Trade LLC Gvoz (FN
261477a) have until June 28 to submit written proofs of claim to
court-appointed property manager Nikolaus Vogt at:

         Mag. Nikolaus Vogt
         Zeltgasse 3/13
         1080 Vienna
         Austria
         Tel: 402 57 01-33
         Fax: 402 57 01-57
         E-mail: nikolaus.vogt@riess.co.at

Creditors and other interested parties are encouraged to attend
the meeting at 10:50 a.m. on June 26 to consider the adoption of
the European code of rules on bankruptcy.

The first meeting of creditors will be held at:

         Room 22
         2nd Floor
         Land Court of Graz
         8010 Graz
         Austria

Headquartered in Dobl, Austria, the Debtor declared bankruptcy
on May 4 (Bankr. Case No. 4 S 69/06h).  Eva Riess represents
Mag. Vogt. in the bankruptcy proceedings.  


HANF-PRODUKTIONS: Insufficient Funds Prompt Court to Close Case
---------------------------------------------------------------
The Land Court of St. Polten dismissed the bankruptcy case of
LLC Hanf-Produktions (FN 234872a) on May 4 due to the Debtor's
administrative insolvency.  This means that the Debtor does not
have enough cash to cover costs of the bankruptcy proceedings.

As a result, creditors will not receive any distribution.

Headquartered in Kappeln, Austria, the Debtor declared
bankruptcy on July 26, 2004 (Bankr. Case No. 14 S 112/04t).  
Peter Schobel served as the court-appointed property manager for
the bankrupt estate.  


HATO: Wiener Neustadt Court Closes Bankruptcy Proceedings
---------------------------------------------------------
The Land Court of Wiener Neustadt entered an order closing the
bankruptcy case of LLC Hato (FN 118423b) on May 4.  

Creditors will recover 20% on account of their claim to be paid
in four installments:

   -- 2% within 14 days after bankruptcy case closing;
   -- after adoption of the project by compulsory compensation
      payment:

      * 5% within 12 months
      * 6% within 18 months; and
      * 7% within 24 months.

The last day for final claims distribution is set for Nov. 8,
2007.

Headquartered in Pitten, Austria, the Debtor declared bankruptcy
on June 8, 2005 (Bankr. Case No. 11 S 59/05w).  Gerhard
Schultschik served as the court-appointed property manager for
the bankrupt estate.  


HISTORYWORLD AUSSTELLUNGS: Claims Filing Period Ends June 28
------------------------------------------------------------
Creditors owed money by LLC Historyworld Ausstellungs und
Gastronomie (FN 197943v) have until June 28 to submit written
proofs of claim to court-appointed property manager Stephan Riel
at:

         Stephan Riel
         Reischachstrasse 3/12A
         1010 Vienna
         Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at

The Court will convene at 9:30 a.m., on July 12 to consider the
adoption of the rule by revision and accountability.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 4 (Bankr. Case No. 4 S 70/06f).  Johann Jaksch represents
Mr. Riel in the bankruptcy proceedings.


M&S GASTRONOMIEBETRIEBS: Vienna Court Closes Bankruptcy Case
------------------------------------------------------------
The Commercial Court of Vienna closed the bankruptcy case of LLC
M&S Gastronomiebetriebs (FN 227639p) after the Debtor's final
distribution to its creditors.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Feb. 27, 2004 (Bankr. Case No. 3 S 17/04a).  Ilse Korenjak
served as the property manager for the bankrupt estate.  


MAC YPSILON: Court to Close Bankruptcy Case After Claims Payment
----------------------------------------------------------------
The Land Court of Salzburg will close the bankruptcy case of LLC
Mac Ypsilon (FN 40379g) after the Debtor's final distribution to
creditors.

Creditors will receive a 20% recovery on account of their claim
to be paid in two installments:

   -- 10% on June 30;
   -- remaining 10% on Dec. 31.

Headquartered in Henndorf am Wallersee, Austria, the Debtor
declared bankruptcy on Nov. 24, 2005 (Bankr. Case No. 23 S
95/05y).  Christoph Koller served as the court-appointed
property manager for the bankrupt estate.  


STRABAG SE: Solid Performance Prompts S&P to Lift Rating to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Austria-based engineering and construction group
Strabag SE to 'BB+' from 'BB' due to the group's solid business
performance.  The outlook is stable.  

At the same time, the rating on Strabag's senior unsecured
EUR150 million notes issued at the Strabag SE level under the
EUR500 million medium term note program was raised to 'BB+' from
'BB'.  

"Strabag has demonstrated consistent revenue and earnings growth
over the past few years despite meaningful business expansion
and difficult market conditions in Germany, which is reflected
in steady financial measures," said Standard & Poor's credit
analyst Izabela Listowska.  

In 2005, Strabag's revenues grew 33% to EUR6.9 billion and
operating income (EBITDA) rose 9% to EUR333 million.  Good
profitability measures, including an operating margin of
5.0%-6.0%, are expected to be sustained over time, largely due
to a meaningful geographical reach whereby strong Eastern
European operations balance weak earnings in Germany, as well as
prudent risk policies.  

In 2005, cash flow measures were sustained despite a significant
increase in financial leverage to fund the recent acquisitions,
with funds from operations (FFO) to adjusted debt at about 33%
and EBITDA gross fixed-charge coverage at about 5.0x, which is
well in line with the current ratings.  

Furthermore, the group generated free operating cash flow of
EUR58 million for the year.  Nevertheless, high capital needs,
aggressive dividend payout, and periodic acquisitions will
continue to largely absorb operating cash flows; therefore S&P
expects a slow decline in financial leverage.  

The ratings are supported by the company's leading market
position in road construction in Central and Eastern Europe,
integrated low-cost operations, and its good geographical
diversification, which is likely to be enhanced further by
ongoing expansion plans in Eastern Europe (Slovenia,
Croatia, Romania, Bulgaria, and Serbia).  

The ratings are constrained by the cyclical and competitive
nature of the construction industry.  Further negative ratings
factors are Strabag's large exposure to the continuously weak
German construction sector and the group's moderately aggressive
financial policies.  

"The stable outlook reflects Standard & Poor's expectations that
Strabag's credit measures should be sustainable over the medium
term," said Ms. Listowska.  "S&P expects the ratios of FFO to
adjusted debt and adjusted debt to EBITDA to remain at more than
25% and at about 3.0x, respectively, and the group should
continue to generate free operating cash flows.  The group's
weak free cash flow generation and aggressive dividend payout
limit further upside potential in the ratings.  

Conversely, additional major debt-financed acquisitions could
put negative pressure on the ratings.


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F R A N C E
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EUROTUNNEL GROUP: Citigroup Bares Alternative Rescue Plan
---------------------------------------------------------
Citigroup Inc. is proposing an alternative restructuring plan
for Eurotunnel Group rivaling that of Goldman Sachs and
Macquarie Bank.  

The plan values Eurotunnel at approximately GBP4.5 billion,
Reuters reports.  Under the proposed agreement, Citigroup will
underwrite:

   -- GBP3 billion of lower-risk, investment grade bonds to be
      issued by Eurotunnel; and

   -- GBP500 million of non-investment grade, junk bonds to be       
      issued by Eurotunnel.

The bank is also proposing that Eurotunnel issue GBP1.8 billion
of subordinated paid-in-kind debt instruments to the lowest of
its junior bondholders who hold resettable bonds, stabilization
Notes, and participating Loan Notes, at a face value greater
than the current market value of their debt.  Citigroup,
however, will not underwrite this kind of debt.

Under the plan, Eurotunnel's current shareholders would still
own 100% of the group.  Unlike in Goldman Sachs and Macquarie
Bank's proposal, the plan would not involve dilution of equity
and would not need shareholders' approval, Anousha Sakoui writes
for the Wall Street Journal.

"Citigroup has been working on an alternative restructuring plan
for Eurotunnel that would maximize the recovery for stakeholders
without dilution," Simon Dudley, managing director of
Citigroup's London unit, told WSJ.

Mr. Dudley added, "This does not involve our owning in any part
the equity of Eurotunnel and would not require shareholder
approval.  Citigroup alone would be willing to underwrite the
investment grade and non-investment-grade portion of the new
debt, in excess of GBP3.5 billion."

According to the Independent News, Citigroup has informed some
creditors on the plan, but has yet to approach Eurotunnel's
management.  Citigroup hopes to present its proposals before
Eurotunnel hold its annual general meeting on July 12.

                    Goldman Sach's Plan

As reported in the TCR-Europe on May 26, Eurotunnel signed a
preliminary binding agreement with the Ad Hoc Committee on the
financial restructuring of the Group.  The ad hoc committee,
which holds more than 50% of the total debt, represents majority
of the Company's junior creditors, namely:

   -- European Investment Bank,
   -- Franklin Mutual Advisers LLC,
   -- MBIA, and
   -- Oaktree Capital Management

Following the interim deal, Reuters reported, Eurotunnel opened
refinancing talks with Goldman Sachs and Macquarie Bank, which
plan entails:

   -- the issuance of 1.8 billion of new bonds;

   -- the maintenance of an existing secured 740 million bond
      issue;

The plan sees the Company's existing senior debt slashed to
GBP2.55 billion.

Goldman and Macquarie are also proposing to:

   -- underwrite GBP1 billion convertible bond; and

   -- issue GBP350 million of equity-like debt called mezzanine
      finance.

The banks, however, would become shareholders in Eurotunnel for
their role as underwriters since GBP1 billion of debt will be
converted into shares after three years.  The daily quoted a
source privy to the matter as saying: "Macquarie is led by
people who want to be investors in infrastructure."

The same source noted, "One of the key things about the proposal
that Citigroup is working on is, it is not looking to have any
rights to acquire the business in part or whole."

Goldman Sachs and Macquarie's plan need approval from
bondholders and shareholders before Eurotunnel can sign a final
deal.

                       Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faces
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

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.


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G E R M A N Y
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COMBI-STAUFNER: Claims Registration Until June 16
-------------------------------------------------
Creditors of Combi-Staufner-Technik GmbH have until June 16 to
register their claims with court-appointed provisional
administrator Fritz Zanker.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on July 10, 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 Goppingen
         Hall 0.24
         Pfarrstr. 25
         73033 Goppingen, 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 Goppingen opened bankruptcy proceedings
against Combi-Staufner-Technik GmbH on April 28.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Combi-Staufner-Technik GmbH
         Attn: Andreas Leichtle, Manager        
         Market Route 58
         73061 Ebersbach, Germany

The administrator can be reached at:

         Fritz Zanker
         c/o Pluta Rechtsanwalts GmbH
         Karlstr. 33
         89073 Ulm, Germany
         Tel: 0731/968800


ELISEO MODE: Claims Filing Period Ends June 16
----------------------------------------------
Creditors of Eliseo Mode GmbH have until June 16 to register
their claims with court-appointed provisional administrator
Hendrik Gittermann.

Creditors and other interested parties are encouraged to attend
the meeting at 11:35 a.m. on July 18, 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 Hamburg
         Hall B 405
         4. Floor
         Sievekingplatz 1
         20355 Hamburg, 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 Hamburg opened bankruptcy proceedings
against Eliseo Mode GmbH on April 26.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Eliseo Mode GmbH
         Attn: Stephan Beyer, Manager
         c/o Manuel Eliseo Koppel
         Upper Port Route 1
         20097 Hamburg, Germany
                           
The administrator can be reached at:

         Hendrik Gittermann
         Palmaille 63
         22767 Hamburg, Germany
         Tel: 040/306969-10


ERKNER HAUSBAU: Claims Registration Ends June 15
------------------------------------------------
Creditors of Erkner Hausbau GbR have until June 15 to register
their claims with court-appointed provisional administrator
Anika Leffler.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on July 20, 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 Frankfurt
         Hall 401
         Muellroser Chaussee 55
         15236 Frankfurt, 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 Frankfurt opened bankruptcy proceedings
against Erkner Hausbau GbR on May 5.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Erkner Hausbau GbR
         New Zittauer Str. 41
         15537 Erkner, Germany
         
The administrator can be reached at:

         Anika Leffler
         Gross-Berliner Damm 73 c
         12487 Berlin, Germany


FORTISSIMO AG: Claims Registration Ends June 14
-----------------------------------------------
Creditors of Fortissimo AG have until June 14 to register their
claims with court-appointed provisional administrator Stephan
Holtershinken.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.m. on July 6, 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 Bueckeburg
         City Hall
         Ratskeller Bueckeburg
         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 Bueckeburg opened bankruptcy proceedings
against Fortissimo AG on May 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Fortissimo AG
         Hauptstr. 11
         31542 Bad Nenndorf, Germany

         Attn: Gisbert Haver, Manager
         Hauptstr. 57
         31840 Hessisch Oldendorf, Germany
                  
The administrator can be reached at:

         Stephan Holtershinken
         Marienstrasse 126
         32425 Minden, Germany
         Tel: 0571/64577-10
         Fax: 0571/64577-39


HRB HOTEL: Claims Registration Ends June 14
-------------------------------------------
Creditors of HRB Hotel - Restaurant- Betriebs-GmbH have until
June 14 to register their claims with court-appointed
provisional administrator Christian Graf Brockdorff.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on July 19, 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 Frankfurt
         Hall 401
         Muellroser Chaussee 55
         15236 Frankfurt, 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 Frankfurt opened bankruptcy proceedings
against HRB Hotel - Restaurant- Betriebs-GmbH on May 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         HRB Hotel - Restaurant- Betriebs-GmbH
         Schlangenluch 12
         15537 Gruenheide, Germany
                  
The administrator can be reached at:

         Christian Graf Brockdorff
         Breite Strasse 9 A
         14467 Potsdam, Germany


JOSEF UNRUHE: Claims Filing Period Ends June 13
-----------------------------------------------
Creditors of Josef Unruhe Books International GmbH & Co. KG have
until June 13 to register their claims with court-appointed
provisional administrator Jan H. Wilhelm.

Creditors and other interested parties are encouraged to attend
the meeting at 11:45 a.m. on July 13, 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 Hamburg
         Hall B 405
         4. Floor
         Sievekingplatz 1
         20355 Hamburg, 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 Hamburg opened bankruptcy proceedings
against Josef Unruhe Books International GmbH & Co. KG on May 3.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Josef Unruhe Books International GmbH & Co. KG
         Oberhauptstr. 15
         22335 Hamburg, Germany
                 
The administrator can be reached at:

         Jan H. Wilhelm
         Albert-Einstein-Ring 11/15
         22761 Hamburg, Germany
         Tel: 8995615
         Fax: 8995610


M & H SERVICE: Claims Registration Ends June 14
-----------------------------------------------
Creditors of M & H Service GmbH have until June 14 to register
their claims with court-appointed provisional administrator Dr.
Jorg Nerlich.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on July 5, 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 Duesseldorf
         Meeting Room A 341
         3. Floor
         Muehlenstrasse 34
         40213 Duesseldorf, 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 Duesseldorf opened bankruptcy proceedings
against M & H Service GmbH on May 9.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         M & H Service GmbH
         Attn: Martin Maschewski, Manager
         Balgheimer Road 77
         41542 Dormagen, Germany
         
The administrator can be reached at:

         Dr. Jorg Nerlich
         Louise-Dumont-Str. 25
         40211 Duesseldorf, Germany


NOVAVISION SERVICES: Creditors' Meeting Slated for June 15
----------------------------------------------------------
The court-appointed provisional administrator for NovaVision
Services GmbH, Dr. Dirk Wittkowski, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 10:00 a.m. on June 15.

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

         The District Court of Charlottenburg
         II Stock Hall 218
         District Court Place 1
         14057 Berlin, Germany

The Court will also verify the claims set out in the
administrator's report at 10:00 a.m. on Sept. 14 at the same
venue.

Creditors have until July 21 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against NovaVision Services GmbH on April 24.  
Consequently, all pending proceedings against the company have
been automatically stayed

The Debtor can be reached at:

         NovaVision Services GmbH
         Leibnizstrasse 53
         10629 Berlin, Germany
                 
The administrator can be reached at:

         Dr. Dirk Wittkowski
         Kirchblick 11
         14129 Berlin, Germany


TOPCART INTERNATIONAL: Creditors' Meeting Slated for June 15
------------------------------------------------------------
The court-appointed provisional administrator for TOPCART
International Nord GmbH, Jens-Soren Schroder, will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 12:15 p.m. on June 15.

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

         The District Court of Hamburg
         Area Hall B 405
         4. Floor
         Sievekingplatz 1
         20355 Hamburg, Germany

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Sept. 28 at the same
venue.

Creditors have until Sept. 4 to register their claims with the
court-appointed provisional administrator.

The District Court of Hamburg opened bankruptcy proceedings
against TOPCART International Nord GmbH on May 3.  Consequently,
all pending proceedings against the company have been
automatically stayed

The Debtor can be reached at:

         TOPCART International Nord GmbH
         Attn: Achim Guenter Halb, Manager
         Hallerstrasse 89
         20149 Hamburg, Germany
                 
The administrator can be reached at:

         Jens-Soren Schroder
         Raboisen 38
         20095 Hamburg, Germany
         Tel: 334460
         Fax: 33446111


UMWELTTECHNIK-CURTI: Registration of Claims Ends June 15
--------------------------------------------------------
Creditors of Umwelttechnik-Curti GmbH have until June 15 to
register their claims with court-appointed provisional
administrator Jan M. Antholz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on July 6, 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 Cuxhaven
         Hall 112
         Old Building
         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.

The District Court of Cuxhaven opened bankruptcy proceedings
against Umwelttechnik-Curti GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Umwelttechnik-Curti GmbH
         Trade Area 10
         27619 Schiffdorf, Germany

         Attn: Janos Cizmar, Manager
         Klinthofe 11
         27619 Schiffdorf, Germany

         Robert Curti, Manager
         Ostdeutsche Str. 10
         27619 Schiffdorf, Germany

The administrator can be reached at:

         Jan M. Antholz
         Hamburg-Amerika-Str. 1
         27472 Cuxhaven, Germany
         Tel: 04721/394962
         Fax: 04721/394961


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


AES CORP: Inks Prelim Pact with BNDES to Repay Brasiliana's Debt
----------------------------------------------------------------
The AES Corporation (NYSE:AES) disclosed that AES Transgas
Empreendimentos S.A., a wholly owned subsidiary of Brasiliana
Energia S.A., plans to sell a portion of its interest in
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A., the
largest regulated electric utility in Brazil.  

Brasiliana is jointly owned by AES and the Brazilian National
Development Bank.

Proceeds from the secondary sale are expected to be used by
Brasiliana to repay in full its debt to BNDES, which was US$582
million as of March 31, 2006.  Upon completion of the proposed
sale, Brasiliana will continue to control Eletropaulo by
maintaining a 76.5 percent stake of the controlling shares.  The
offering, which is subject to regulatory approval, is expected
to be completed this summer.

Eletropaulo serves approximately 5.3 million customers in Sao
Paulo state.  Through its interest in Brasiliana, AES currently
has:

   -- a 34 percent economic interest in Eletropaulo;

   -- a 24 percent economic interest in Tiete, a 2,650 megawatt
      hydroelectric power generation business; and

   -- a 46 percent economic interest in Uruguaiana, a 639
      megawatt gas-fired power plant.

AES has a controlling interest in all of these businesses and
also owns AES Sul, a regulated electric utility serving
approximately one million customers in the state of Rio Grande
do Sul in southern Brazil.

                      About the Company

AES Corporation -- http://www.aes.com/-- is a global power    
company.  The Company operates in South America, Europe, Africa,
Asia and the Caribbean countries.  Generating 44,000 megawatts
of electricity through 124 power facilities, the Company
delivers electricity through 15 distribution companies.

AES has been in Eastern Europe for nearly ten years, since it
acquired three power plants in Hungary in 1996.  Today, AES has
two distribution companies in Ukraine which serve 1.2 million
customers and generation plants in the Czech Republic and
Hungary.  AES is also the leading company in biomass conversion
in Hungary, generating 37 percent of the nation's total
renewable generation in 2004.

                        *     *     *

As reported in the Troubled Company Reporter on May 25, Fitch
affirmed The AES Corporation's Issuer Default Rating at 'B+'.  
Fitch also affirmed and withdrew the ratings for the company's
junior convertible debt.  Fitch said the rating outlook for all
remaining instruments is stable.

In March, Standard & Poor's Ratings Services raised its
corporate credit
rating on diversified energy company The AES Corp. to 'BB-' from
'B+'.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, Moody's
affirmed the ratings of The AES Corporation, including its Ba3
Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


BORSODCHEM RT: Buying Treasury Shares to Stabilize Stock Price
--------------------------------------------------------------
The Board of Directors of BorsodChem Rt. has mandated the
purchase of treasury shares for the purpose of maintaining the
price of the Company's shares.  The purchase is subject to three
conditions:

   -- the purchase of treasury shares must be effected by HSBC
      Bank Plc.;

   -- the purchase of treasury shares must take place between
      May 30 and Sept. 4; and

   -- the purchase of treasury shares must be carried out within
      the framework set up in Resolution no. 24/2005 of the
      Company's Extraordinary General Meeting of Nov. 25, 2005,
      and the applicable laws.

                        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 was 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 had HUF237.9 billion in total
assets, HUF98.9 billion in total liabilities and HUF139.02
billion in total shareholders' equity.

                        *     *     *

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


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


EIRCOM GROUP: Credit Suisse Acquires 64,177,308 Shares
------------------------------------------------------
Credit Suisse companies acquired on May 25 these interests in
the issued share capital of eircom Group Plc:

   -- Credit Suisse Securities (Europe) Limited: 63,706,658
      shares.  

      CSSEL held an interest in 794,495 of these shares
      under section 208 of the act by virtue of the right to
      redelivery of equivalent securities under stock lending
      arrangements; and

   -- Credit Suisse International: 470,650 shares.

The CS companies now hold a total interest of 64,177,308 shares
being equivalent to approximately 5.88% of the issued share
capital of the Company.

Headquartered in Dublin, Ireland, eircom Group plc --  
http://eircom.net/-- is the principal provider of fixed-line  
telecommunications services in Ireland, as well as the leading
Internet service provider and, following its acquisition of
Meteor, the third largest mobile operator in Ireland.

                           *    *    *

As reported in the Troubled Company Reporter on March 3, Moody's
Investors Service has assigned a Ba2 corporate family rating to
eircom Group plc (eircom).  Concurrently Moody's changed the
rating outlook to negative from stable.


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


ALITALIA SPA: Downplays Impact of Takeover Suspension on Results
----------------------------------------------------------------
Alitalia S.p.A. is optimistic that the recent decision by the
Consiglio di Stato, Italy's highest administrative court, to
suspend its takeover of rival Volare S.p.A. would not affect its
financial results, AFX News says.

As previously reported in TCR-Europe, the State Council blocked
on May 24 Alitalia's EUR38 million bid to acquire Volare due to
certain flaws in the sale process.  Air One, which made the
second highest bid for Volare, claims that Alitalia is an unfair
competitor and that it lacks the conditions to buy another
airline following a near-bankruptcy miss in 2005.  

Days after the ruling, Italy's Autorita Garante della
Concorrenza e del Mercato decided to open a probe into
Alitalia's takeover of Volare.  The Competition Commission said
it would look into the impact of the acquisition on flights from
Milan Linate to Bari, Brindisi, Lamezia, Catania, Naples, and
Paris.  Autorita expects to end the inquiry on July 10.

                    Banned Sardinia Flights

Alitalia said it is also reviewing legal options following the
re-imposition of the ban on flights to Sardinia, Il Sole 24 Ore
reports.  

According to AFX, the carrier added that it is looking for ways
to prevent their resources from becoming idle, noting that the
economic impact of the loss of the routes would depend on other
alternatives found.

The Regional Administrative Court of Lazio, which first imposed
the ban, has yet to issue a definitive ruling on the
acquisitions, thus creating uncertain impact on Alitalia's 2005-
2008 business plan.
   
                       About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in  
annual revenue and employs more than 11,000 people.  Alitalia
flies to about 80 destinations in more than 60 countries from
hubs in Rome and Milan and operates a fleet of about 185
aircraft.  The Italian government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection.  The carrier booked net losses of EUR520 million in
2003; EUR813 million in 2004; and EUR168 million in 2005.


PARMALAT SPA: Brazilian Unit's Creditors Amend Perdigao Deal
------------------------------------------------------------
Creditors of Parmalat Brasil Industria de Alimentos S.A., a
subsidiary of Parmalat S.p.A., approved on May 26 certain
amendments to its Restructuring Plan announced on Jan. 11.

Justice Alexandre Alves Lazzarini, of the First District Company
Recovery and Bankruptcy Court of Justice of Sao Paulo, in
Brazil, approved Parmalat Brasil Industria de Alimentos S.A.'s
restructuring plan in the first quarter of 2006.

The Plan, presented by Integra Consultants to the Court on
Aug. 29, 2005, confirms the unit's economic viability and
presents a schedule for the payment of its BRL800-million debt
to suppliers and banks.  The Plan also included the sale of
operating assets to help the unit pay off part of the debt and
to reinforce its working capital.

The amendments include:

   -- authorization of the subscription by Laep Capital LLC
      of PA's capital increase.  As a result, Laep will hold a
      majority shareholding of 98.5% of PA's share capital.  
      Parmalat group has waived its pre-emption rights to the
      newly issued shares;

   -- sale by PA to Perdigao Agroindustrial S.A. of the
      controlling stockholding in Batavia S.A. and of the bakery
      division and the production plant of Guaranhus in the
      State of Pernambuco; and

   -- trademark license agreement between Parmalat S.p.A. and
      Batavia.

The amendments to the Plan are subject to approval by the Court
of Sao Paulo.  Upon completion of the procedure, the control of
the Parmalat Group over Perdigao will cease.

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.


PARMALAT SPA: Clesa Unit to Close Two Spanish Production Plants
---------------------------------------------------------------
Clesa, Parmalat S.p.A.'s subsidiary in Spain, will close its
Burgos and Alicante plants, The Financial Times Ltd. cited
Diario Expansion.

Parmalat hopes to cut operating costs in shutting down the
plants, the Financial Times said.  Parmalat intends to transfer
Clesa's production of condensed milk from Burgos to Zaragoza.  
The yoghurts production will be relocated from Alicante to
Zaragoza.

The plants' shutdown is estimated to lay off 99 employees.

                     Other Parmalat Plans

To further reduce costs and improve Clesa's profitability,
Parmalat will merge Clesa and Letona into Parmalat Espana, the
Financial Times adds.   Parmalat is also thinking of replacing
its production facilities in Madrid with a new plant.

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
===================


AK KASKOR: Mangistau Court Opens Bankruptcy Proceedings
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region commenced bankruptcy proceedings against OJSC AK Kaskor
on April 11.

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

         Micro District 27
         Aktau, Kazakhstan
         Tel: 8 (3292) 41-22-37


ARDAK: Creditors Must File Claims by June 13
--------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Ardak insolvent.  Subsequently, bankruptcy
proceedings were introduced at the company.  

Creditors have until June 13 to submit written proofs of claim
to:

         LLP Ardak
         Room 40
         Tarana Str. 85
         Kostanai, Kazakhstan
         Tel: 8 (234) 94-3-65
              8 (234) 54-28-39


CINCO GROUP: Creditors Must File Claims by June 13
--------------------------------------------------
LLP Insurance Broker Cinco Group Central Asia has declared
insolvency.  Creditors have until June 13 to submit written
proofs of claim to:

         LLP Insurance Broker Cinco Group Central Asia
         Institutskaya Str. 6
         Rahat
         Karasaysky District
         Almaty Region
         Kazakhstan


EVROPRESTIJ: Creditors Must File Claims by June 13
--------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
Region declared LLP Evroprestij insolvent.

Creditors have until June 13 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan Region
         Gvardeyskaya Str. 9-18  
         Uralsk
         West Kazakhstan Region
         Kazakhstan
         Tel: 8 (3112) 51-77-10


INTERTRUCK-URAL: Creditors' Claims Due June 13
----------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
Region declared LLP Intertruck-Ural insolvent.

Creditors have until June 13 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan Region
         Gvardeyskaya Str. 9-18
         Uralsk
         West Kazakhstan Region
         Kazakhstan
         Tel: 8 (3112) 51-77-10


KISANOV-A: Creditors' Claims Due June 13
----------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared OJSC Kisanov-A insolvent on March 21.

Creditors have until June 13 to submit written proofs of claim
to:

         OJSC Kisanov-A
         Karasai batyra Str. 15a  
         Talgar, Kazakhstan
         Tel: 8 (274) 2-73-36
              8 (300) 321-43-31


MID: Proof of Claim Deadline Slated for June 13
-----------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP MID insolvent on March 20.

Creditors have until June 13 to submit written proofs of claim
to:
         
         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Office 206
         Myzy Str. 2/1  
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-34-77
         Fax: 8 (3232) 24-92-10


ODINS: Mangistau Court Starts Bankruptcy Process
------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region commenced bankruptcy proceedings against LLP Odins on
April 11.

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

         The Specialized Inter-Regional
         Economic Court of Mangistau Region
         Micro District 27
         Aktau, Kazakhstan
         Tel: 8 (3292) 41-22-37


STROIMONTAJ: Proof of Claim Deadline Slated for June 13
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Stroimontaj insolvent on March 20.

Creditors have until June 13 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region         
         Office 206
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-34-77
         Fax: 8 (3232) 24-92-10


WEST-POWER: Claims Registration Ends June 13
--------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP West-Power insolvent on March 16.  
Bankruptcy proceedings were introduced at the company.

Creditors have until June 13 to submit written proofs of claim
to:

         LLP West-Power
         Lenina Ave. 40-41
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 47-61-94


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


AIREK: Insolvency Manager Sets Asset Auction for June 8
-------------------------------------------------------
The bidding organizer and insolvency manager of LLC Airek will
auction the company's bankruptcy enterprise properties at 2:00
p.m. on June 8 at:

         LLC Airek
         Erkindik Ave. 39a
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 66-13-23
              (+996 312) 66-76-75
              (0-502) 73-29-43

The assets for sale are:  

   -- Lot 1: Yacht Bavaria.  Starting price is KGS6,906,723  
      (inclusive of VAT);

   -- Lot 2: Sports equipment. Starting price is KGS247,540
      (inclusive of VAT); and

   -- Lots 4-40: Cars, office equipment and domestic appliances.

The starting price was reduced by 20%.

Participants have until June 6 to submit their bids and deposit
an amount equivalent to 20% of the starting price to the cashier
of LLC Airek at:

         LLC Airek
         Erkindik Ave. 39a
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 66-13-23
              (+996 312) 66-76-75
              (0-502) 73-29-43
         

AK-BULA: Insolvency Manager Sets June 5 Asset Auction
-----------------------------------------------------
The bidding organizer and insolvency manager of JSC AK-Bula will
auction the company's assets on June 5, 10:00 a.m., at:

         JSC AK-Bula
         Industry Zone
         Tokmok, Kyrgyzstan

For sale are 30 lots of the Debtor's assets including:

   -- buildings,
   -- main production base,
   -- transfer devices,
   -- warehouses,
   -- cafe,
   -- stand-by reservoir, and
   -- heating and high-voltage network.

Interested bidders have until 12:00 noon June 2 to deposit an
amount equivalent to 10% of the starting price to the cashier of
JSC AK-Bula.

Participants may submit their bids to the insolvency manager at:

         JSC AK-Bula
         Industry Zone
         Tokmok, Kyrgyzstan
         Tel: (+996 3138) 5-16-99
              (0-502) 32-70-68


ANAR: Public Auction Scheduled for June 5
-----------------------------------------
The bidding organizer and insolvency manager of JSC Anar will
auction the company's bankrupt properties on June 5 at 2:00 p.m.
at:

         JSC Anar
         Transportnaya Street
         Kochkorata
         Djalal-Abad Region
         Kyrgyzstan

For sale are four lots which includes a vacuum dryer plant,
tabletting equipment, and power facilities.

Participants have until 5:00 p.m., June 2 to submit their bids
to the Debtor's temporary insolvency manager at:

         JSC Anar
         Transportnaya Street
         Kochkorata
         Djalal-Abad Region
         Kyrgyzstan
         Tel: (+996 3734) 4-11-76
              (0-502) 39-36-28

Bidders must deposit an amount equivalent to 10% of the starting
price to the cashier of the temporary insolvency manager at:

         JSC Anar
         Transportnaya Street
         Kochkorata
         Djalal-Abad Region
         Kyrgyzstan
         Tel: (+996 3734) 4-11-76
              (0-502) 39-36-28

or to:

         Kochkorata Department of the Promstroibank
         Settlement Account No. 1020002000222372
         MFO 330501317


KYRGYZAGROPROMBANK: Public Auction Scheduled for June 6
-------------------------------------------------------   
The bidding organizer and insolvency manager of the Joint-Stock
Commercial Kyrgyzagroprombank will auction the company's hotel
building on June 6, 10:00 a.m., at:

         Joint-Stock Commercial Kyrgyzagroprombank
         Chui Ave. 114
         Bishkek
         Kyrgyzstan
         Tel: (0-312) 66-13-27

The property's starting price is set at KGS100,000.

Participants have until June 5 to submit their bids and deposit
an amount equivalent to 10% of the starting price.


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


BOLSHEIGNATOV-AGRO-PROM-KHIMIYA: Court Taps Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Mordoviya Republic appointed Mr. A.
Lisitsyn as temporary insolvency manager for Municipal Unitary
Enterprise Bolsheignatov-Agro-Prom-Khimiya.  He can be reached
at:

         A. Lisitsyn
         Proletarskaya Str. 130
         Saransk
         Mordoviya Republic, Russia

The Court has commenced bankruptcy supervision procedure on the
company.  The case is docketed under Case No. A A39-911/06-30/6.

The Debtor can be reached at:

         Municipal Unitary Enterprise
         Bolsheignatov-Agro-Prom-Khimiya
         Ignatova
         Mordoviya Republic, Russia


CREDIT BANK: Fitch Rates RUB1 Billion Bond at BB+
-------------------------------------------------
Fitch Ratings assigned Credit Bank of Moscow's upcoming RUB1
billion three-year bond issue a National Long-term rating of
BB+.  CBM is rated Issuer Default B-/Outlook Stable, Short-term
B, Individual D/E, Support 5 and National Long-term BB+/Stable.

The bank's obligations under the issue will rank at least pari
passu with the claims of other senior unsecured creditors of
CBM, save those preferred by relevant legislation.  Under
Russian law, the claims of retail depositors rank above those of
other senior unsecured creditors.  At end-2005, retail deposits
bank's accounts prepared under Generally Accepted Accounting
Principles of the United States.

CBM was established in 1992.  Since 1995 it has formed part of a
group owned by Rossium Concern, which also includes investment,
industrial, agricultural, trade and construction companies.  

The group is ultimately owned by one individual, prompting some
corporate governance and succession concerns.  CBM's core
business lies in providing banking services to SMEs and, since
2002, retail customers.


DOLGORUKOVO-AGRO-SERVICE: Court Commences Bankruptcy Supervision
----------------------------------------------------------------
The Arbitration Court of Lipetsk Region has commenced bankruptcy
supervision procedure on OJSC Repair-Technical Enterprise
Dolgorukovo-Agro-Service (Case No. A36-3993/2005).

The Insolvency Manager is:

         A. Sushkov
         Post User Box 54
         394030 Voronezh Region, Russia

The Debtor can be reached at:

         OJSC Repair-Technical Enterprise
         Dolgorukovo-Agro-Service
         Dolgorukovo
         Dolgorukovskiy Region
         Lipetsk Region, Russia


IVNYA-AGRO-TRANS: Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Arbitration Court of Belgorod Region has commenced
bankruptcy supervision procedure on OJSC Ivnya-Agro-Trans (TIN
3109000212).  

The case is docketed under Case No. A 08-13827/05-2 B.

The Temporary Insolvency Manager is:

         V. Petrochenko
         Office 509
         B. Khmelnitskogo Str. 133 Zh
         308002 Belgorod, Russia

The Arbitration Court of Belgorod Region is located at:

         Room 16
         Narodnyj Avenue 135
         308610 Belgorod, Russia

The Debtor can be reached at:

         OJSC Ivnya-Agro-Trans
         Gorovtsa Str. 65
         Ivnya
         Belgorod Region, Russia


KULEBAKSKAYA STROY-MECHANIZATION: Court Taps Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
V. Kuzminykh as temporary insolvency manager for CJSC
Kulebakskaya Stroy-Mechanization (TIN 5251001464).  He can be
reached at:

         V. Kuzminykh
         Post User Box 5
         603005 Nizhniy Novgorod Region, Russia

The Court has commenced bankruptcy supervision procedure on the
company.  

The case is docketed under Case No. A43-1336/2006 24-5.

The Debtor can be reached at:

         CJSC Kulebakskaya Stroy-Mechanization:
         Serova Str. 1
         Kulebaki
         607010 Nizhniy Novgorod Region, Russia


MALACHITE: Court Taps A. Kokorin as Interim Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
A. Kokorin as temporary insolvency manager for LLC Malachite
(Case No. A43-42218/2005 24-560).  He can be reached at:

         A. Kokorin
         Torgovaya Str. 14.
         603001 Nizhniy Novgorod Region, Russia

The Court has commenced bankruptcy supervision procedure on the
company.

The Debtor can be reached at:

         LLC Malachite
         Apartment 26
         Ponomareva Str. 6
         Zavolzhye
         Gorodetskiy Region
         606524 Nizhniy Novgorod Region, Russia


OAO SEVERSTAL: Russia Targets July Deadline for Arcelor Merger
--------------------------------------------------------------
The Russian government expects the merger between OAO Severstal
and Luxembourg-based Arcelor S.A. to be completed in the second
half of July expressing its support for the merger deal,
Interfax News says.

According to the report, Prime Minister Mikhail Fradkov, in a
Cabinet meeting with President Vladimir Putin, said that the
merger should "move rapidly" due to "very fierce" competition.  

Mr. Fradkov added that the government would help resolve
technical problems that would arise in the merger.  "There is a
lot of work ahead of us," the Prime Minister said.

The Prime Minister added that Severstal's local units would
"remain residents" and would continue to pay taxes to the
federal and local government, Interfax relates.

                         About Arcelor

Headquartered in Avenue de la Liberte, Luxembourg, Arcelor S.A.
http://www.arcelor.com/-- is the number one steel company in  
the world with EUR32.6 billion in turnover in 2005.  The company
holds leadership positions in its main markets: automotive,
construction, household appliances and packaging as well as
general industry.  In 2006, Arcelor employs 110,000 associates
in over 60 countries.  The company places its commitment to
sustainable development at the heart of its strategy and
ambitions to be a benchmark for economic performance, labor
relations and social responsibility.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/is the country's largest steel  
producer, with steel production of 17.1 million tons in 2005.  
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As at March 1, 2004, 82.75% of Severstals share capital was
controlled directly or indirectly by Alexey Mordashov, Chairman
of Severstals Board of Directors.  Institutional investors held
around 6.5% of Severstals shares while management and employees
held the remaining 10.75%.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on May 30, Standard & Poor's
Ratings Services placed its 'B+' long-term corporate credit
rating on Russia-based integrated steel maker OAO Severstal on
CreditWatch with positive implications, following the
announcement of an agreed merger with Luxembourg steelmaker
Arcelor S.A.

Moody's Investors Service also placed the corporate family
rating of B1 and the senior unsecured rating of B2 of Severstal
on review for possible upgrade following the intention of
Severstal's majority owner to merge Severstal and its mining
assets with Arcelor.

On Feb. 13, Moody's has changed the outlook of Severstal's
ratings from stable to positive, following the company's
announcement of the acquisition of a majority interest in mining
assets currently held by affiliated parties outside the
borrowing group.

Fitch Ratings also placed OAO Severstal's ratings of Issuer
Default BB-, Senior Unsecured BB-, Short-term B and National
Long-term A+ on Rating Watch Positive, following Severstal's
agreement to merge with Arcelor.


OAO SEVERSTAL: Chairman to Keep Equity Stake at 32%
---------------------------------------------------
Alexei Mordashov, OAO Severstal's chairman and major
shareholder, said he does not intend to increase his stake in
Arcelor S.A. above 32%.

Only if Arcelor shareholders decide to carry out the buy-back of
shares by Arcelor -- Mr. Mordashov will not take part in the
decision and in the tendering of shares so that all the money,
distributed during the buy-back, would entirely go to existing
Arcelor shareholders -- his stake might reach approximately 38%.  

Mr. Mordashov has no plans to increase his stake further.

                          About Arcelor

Headquartered in Avenue de la Liberte, Luxembourg, Arcelor S.A.
http://www.arcelor.com/-- is the number one steel company in  
the world with EUR32.6 billion in turnover in 2005.  The company
holds leadership positions in its main markets: automotive,
construction, household appliances and packaging as well as
general industry.  In 2006, Arcelor employs 110,000 associates
in over 60 countries.  The company places its commitment to
sustainable development at the heart of its strategy and
ambitions to be a benchmark for economic performance, labor
relations and social responsibility.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/is the country's largest steel  
producer, with steel production of 17.1 million tons in 2005.  
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As at March 1, 2004, 82.75% of Severstals share capital was
controlled directly or indirectly by Alexey Mordashov, Chairman
of Severstals Board of Directors.  Institutional investors held
around 6.5% of Severstals shares while management and employees
held the remaining 10.75%.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on May 30, Standard & Poor's
Ratings Services placed its 'B+' long-term corporate credit
rating on Russia-based integrated steel maker OAO Severstal on
CreditWatch with positive implications, following the
announcement of an agreed merger with Luxembourg steelmaker
Arcelor S.A.

Moody's Investors Service also placed the corporate family
rating of B1 and the senior unsecured rating of B2 of Severstal
on review for possible upgrade following the intention of
Severstal's majority owner to merge Severstal and its mining
assets with Arcelor.

On Feb. 13, Moody's has changed the outlook of Severstal's
ratings from stable to positive, following the company's
announcement of the acquisition of a majority interest in mining
assets currently held by affiliated parties outside the
borrowing group.

Fitch Ratings also placed OAO Severstal's ratings of Issuer
Default BB-, Senior Unsecured BB-, Short-term B and National
Long-term A+ on Rating Watch Positive, following Severstal's
agreement to merge with Arcelor.


SEL-KHOZ-ASSEMBLING: Court Opens Bankruptcy Process
---------------------------------------------------
The Arbitration Court of Voronezh Region has commenced
bankruptcy supervision procedure on OJSC Sel-Khoz-Assembling
(Case No. A14-1435-2006/6/16b).

The Temporary Insolvency Manager is:

         A. Dubishev
         Bugor Str. 25
         Barkhatnyj
         394071 Voronezh Region, Russia

The Arbitration Court of Voronezh Region is located at:

         Srednemoskovskaya Str. 77.
         394030 Voronezh Region, Russia

The Debtor can be reached at:

         OJSC Sel-Khoz-Assembling
         Lenina Str. 60/2
         Novaya Usman
         Novousmanskiy Region
         Voronezh Region, Russia


STROY-DETAIL: P. Volkov to Manage Insolvency Assets
---------------------------------------------------
The Arbitration Court of Murmansk Region appointed Mr. P. Volkov
as temporary insolvency manager for OJSC Factory Stroy-Detail
(TIN 5108300087).  He can be reached at:

         P. Volkov
         Starostina Str. 19.
         183071 Murmansk Region, Russia

The Court has commenced bankruptcy supervision procedure on the
company.  The case is docketed under Case No. A42-7326/2005.

The Debtor can be reached at:

         OJSC Factory Stroy-Detail
         Stroitelnaya Str. 67A
         Olenegorsk
         184533 Murmansk Region, Russia


TONKINSKAYA SEL-KHOZ-TEKHNIKA: Court Hearing Slated for June 20
---------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region will convene on
June 20 to hear the bankruptcy supervision procedure on OJSC
Tonkinskaya Sel-Khoz-Tekhnika (Case No. A43-45866/05 18-735).

The Temporary Insolvency Manager is:

         V. Kopchenov
         K. Marksa Str. 32
         603159 N. Novgorod, Russia

The Debtor can be reached at:

         OJSC Tonkinskaya Sel-Khoz-Tekhnika
         Pervomayskaya Str. 43
         Tonkino
         Nizhniy Novgorod Region, Russia


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


PARMALAT SPA: Clesa Unit to Close Two Spanish Production Plants
---------------------------------------------------------------
Clesa, Parmalat S.p.A.'s subsidiary in Spain, will close its
Burgos and Alicante plants, The Financial Times Ltd. cited
Diario Expansion.

Parmalat hopes to cut operating costs in shutting down the
plants, the Financial Times said.  Parmalat intends to transfer
Clesa's production of condensed milk from Burgos to Zaragoza.  
The yoghurts production will be relocated from Alicante to
Zaragoza.

The plants' shutdown is estimated to lay off 99 employees.

                     Other Parmalat Plans

To further reduce costs and improve Clesa's profitability,
Parmalat will merge Clesa and Letona into Parmalat Espana, the
Financial Times adds.   Parmalat is also thinking of replacing
its production facilities in Madrid with a new plant.

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.


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


TELSIM MOBIL: Pays US$341 Million Settlement to Nokia
-----------------------------------------------------
Nokia received a settlement payment of US$341.25 million
following the completion of the sale of Telsim Mobil's assets,
in accordance with an arrangement with Telsim and the Turkish
Savings and Deposit Insurance Fund, which sold Telsim's assets
to Vodafone.  

This follows the settlement reached in August 2005 of Nokia's
financial claims against Telsim, subject to the successful sale
of the Turkish network operator's assets.

Nokia's claims arose from Telsim's default on its repayment
obligations under a loan facility related to network equipment
delivered in 2000.  In February 2004, the Arbitral Tribunal in
Zuerich fully approved the claim against Telsim.

On May 10, Rosamara Trading Ltd. started its legal proceedings
against Telsim after the company defaulted on the US$738 million
promissory notes it issued in 2003.

Headquartered in Finland, Nokia -- http://www.nokia.com/-- is a  
world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry.  Nokia connects
people to each other and the information that matters to them
with easy-to-use and innovative products like mobile phones,
devices and solutions for imaging, games, media and businesses.  
Nokia provides equipment, solutions and services for network
operators and corporations.

Headquartered in Istanbul, Turkey, Telsim Mobil --
http://www.telsim.com/-- is a high-technology company offering  
services in the GSM (Global System for Mobile Communication)
market.


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


ARTDAN: Court Taps Ludmila Zayikina as Insolvency Manager
---------------------------------------------------------
The Economic Court of Kyiv Region appointed Ludmila Zayikina as
Liquidator/Insolvency Manager for CJSC Artdan (code EDRPOU
20028229).  She can be reached at:

         Ludmila Zayikina
         lnikov Str. 2/10
         Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 22.  The case is docketed
under Case No. 43/180.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         CJSC Artdan
         M. Grushevskij Str. 28/2
         Kyiv Region
         Ukraine


CHERKASSY TIN: Cherkassy Court Starts Bankruptcy Supervision
------------------------------------------------------------
The Economic Court of Cherkassy Region commenced bankruptcy
supervision procedure on State Enterprise Cherkassy Tin Combine
(code EDRPOU 05529691) on March 30.  The case is docketed under
Case No. 14/1090.

The Temporary Insolvency Manager is:

         Oleksandr Bilik
         Konev Str. 13/87
         Cherkassy Region
         Ukraine

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         State Enterprise Cherkassy Tin Combine:
         Chigirin Str. 13
         18030 Cherkassy Region
         Ukraine


CULTURE AND COMMERCE: Court Names Leonid Talan as Liquidator
------------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Leonid
Talan as Liquidator/Insolvency Manager for LLC Culture and
Commerce (code EDRPOU 21873614).  He can be reached at:

         Leonid Talan
         a/b 158
         49000 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Jan. 17.  The case is docketed
under Case No. B 24/9/04.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Culture and Commerce
         Metalurgiv Avenue 76-B/29
         Dniprodzerzhinsk
         52628 Dnipropetrovsk Region
         Ukraine


ELTON: Court Taps Novovolinsk Tax Agency as Liquidator
------------------------------------------------------
The Economic Court of Volinska Region appointed Novovolinsk
United State Tax Inspection as Liquidator for LLC Elton (code
EDRPOU 20141783).  The Liquidator can be reached at:

         Novovolinsk United State Tax Inspection
         Pionerska Str. 1
         Novovolinsk
         45400 Volinska Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Feb. 23.  The case is docketed
under Case No. 8/22-B.

The Economic Court of Volinska Region is located at:

         Voli Avenue 54-a
         43010 Lutsk
         Ukraine

The Debtor can be reached at:

         LLC Elton
         Lutska Str. 25
         Novovolinsk
         45400 Volinska Region
         Ukraine


PGM: Dnipropetrovsk Court Names I. Yasnogor to Liquidate Assets
---------------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Mr. I.
Yasnogor as Liquidator/Insolvency Manager for LLC PGM (code
EDRPOU 33516336).  He can be reached at:

         I. Yasnogor
         a/b 2350
         49040 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 6.  The case is docketed
under Case No. B 15/189/05.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC PGM
         Mandrikivska Str. 64-a
         49094 Dnipropetrovsk Region
         Ukraine


SATELIT: Court Taps Yurij Bilik to Liquidate Assets
---------------------------------------------------
The Economic Court of Kyiv Region appointed Yurij Bilik as
Liquidator/Insolvency Manager for LLC Satelit (code EDRPOU
20602310).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 6.  The case is docketed
under Case No. 114/14 b-05.

The Economic Court of Kyiv Region is located at:

         Komintern Str. 165
         01032 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Satelit
         M. Yakubovsky Str. 66
         Fastiv
         Kyiv Region
         Ukraine


STRONG-KRIVBAS: Yurij Bilik to Manage Insolvency Assets
-------------------------------------------------------
The Economic Court of Kyiv Region appointed Yurij Bilik as
Liquidator/Insolvency Manager for LLC Strong-Krivbas (code
EDRPOU 30499706).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 16.  The case is docketed
under Case No. 58/14 b-04.

The Economic Court of Kyiv Region is located at:

         Komintern Str. 165
         01032 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Strong-Krivbas
         Kiyivska Str. 78
         Glevaha
         Kyiv Region
         Ukraine


ZORYA: Poltava Court Commences Bankruptcy Supervision
-----------------------------------------------------
The Economic Court of Poltava Region commenced bankruptcy
supervision procedure on LLC Zorya (code EDRPOU 02971386) on
April 4.  The case is docketed under Case No. 7/32.

The Temporary Insolvency Manager is:

         O. Dubovskij
         Frunze Str. 48/49
         36039 Poltava Region
         Ukraine

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         LLC Zorya
         Korolenko Str. 2
         Kobelyaki
         39200 Poltava Region
         Ukraine


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


1ST CLASS: Appoints Tenon Recovery Administrators
-------------------------------------------------
Carl Stuart Jackson and Nigel Ian Fox of Tenon Recovery were
appointed joint administrators of 1st Class Driving Limited
(Company Number 3965586) on May 10.

Tenon Recovery -- http://www.tenongroup.com/-- provides  
accounting and business advice to owner-managed and private
business.

1st Class Driving Limited can be reached at:

         38 Hawthorn Road
         Wallington
         Surrey SM6 0SY
         United Kingdom
         Tel: 020 8408 4600


A S COMM: Creditors Tap William Paxton to Liquidate Assets
----------------------------------------------------------
William Paxton, of Robinson Laidler LLP, was appointed
Liquidator of A S Comm (North East) Limited after creditors
passed a resolution to wind up the company during an
extraordinary general meeting on March 24.

The company can be reached at:

         A S Comm (North East) Limited
         135 Sandyford Road
         Newcastle Upon Tyne NE2 1QR
         United Kingdom
         Tel: 0191 212 1098


CADVANCED LIMITED: Hires Jacksons Jolliffe Cork as Liquidator
-------------------------------------------------------------
Cadvanced Limited is liquidating its assets after creditors
passed a resolution to wind up the company on March 23.

Matthew Colin Bowker and David Antony Willis of Jacksons
Jolliffe Cork were appointed Joint Liquidators.

The company can be reached at:

         Cadvanced Limited
         1 Appleby Court
         Worksop
         Nottinghamshire S81 7QJ
         United Kingdom
         Tel: 01909 506 655


CAMBERWELL REHABILITATION: Appoints Administrators from CBW
-----------------------------------------------------------
John Alfred George Alexander and Patricia Kay Hartley-Mills of
Carter Backer Winter were appointed joint administrators of
Camberwell Rehabilitation Association Limited (Company Number
01114883) on May 11.

Headquartered in Aldgate, Carter Backer Winter, --
http://www.cbw.co.uk-- is an independent firm of Chartered  
Accountants, business advisers and tax specialists established
for over 50 years.

Headquartered in London, United Kingdom, Camberwell
Rehabilitation Association Limited manufactures transformers.


CHRISTOPHER MARTIN: Taps Grant Thornton as Administrator
--------------------------------------------------------
Nicholas Stewart Wood and Anthony Norman Flynn of Grant Thornton
U.K. LLP were appointed joint administrators of Christopher
Martin Associates Limited (Company Number 04024614) on May 10.

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 Aldershot, United Kingdom, Christopher Martin
Associates Limited is engaged in labor recruitment.


CLEARFOLD LIMITED: Halts Operations & Appoints Liquidator
---------------------------------------------------------
Creditors of Clearfold Limited passed a resolution to wind up
the company's operations during an extraordinary general meeting
on March 23.

Stephen Evans of Pure Recovery LLP was appointed Liquidator.

The company can be reached at:

         Clearfold Limited
         4C Warwick Court
         Shirland Mews
         London W9 3DY
         United Kingdom
         Tel: 020 8964 5115


COOKING AND HEATING: Names Jackson Jolliffe to Administer Assets
----------------------------------------------------------------
Matthew Colin Bowker and David Antony Willis of Jacksons
Jolliffe Cork were appointed joint administrators of Cooking and
Heating Limited (Company Number 03007154) on May 10.

Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- is engaged  
exclusively in business recovery and insolvency work and
comprises certified and chartered accountants, licensed
insolvency practitioners and business turnaround consultants,
many having joined us from senior positions within National
firms.

Headquartered in Grimsby, United Kingdom, Cooking and Heating
Limited wholesales and retails cooking and heating appliances.


CP ENGINEERING: Appoints Ian William Kings as Administrator
-----------------------------------------------------------
Ian William Kings of Tenon Recovery was appointed administrator
of CP Engineering Limited (Company Number 4436437) on May 12.

Tenon Recovery -- http://www.tenongroup.com/-- provides  
accounting and business advice to owner-managed and private
business.

CP Engineering Limited can be reached at:

         15 Brooklands Way
         Boldon Business Park Boldon Colliery
         Tyne and Wear NE35 9LZ
         United Kingdom
         Tel: 0191 519 1444
         Fax: 0191 519 3777


DATA RECOVERY: Names Paul Appleton to Liquidate Assets
------------------------------------------------------
Data Recovery U.K. Limited is liquidating its assets after
creditors decided to wind up the company's operations on
March 24.

Paul Appleton of David Rubin & Partners was appointed
Liquidator.

The company can be reached at:

         Data Recovery U.K. Limited
         45 Lafone Street
         London SE1 2LX
         United Kingdom
         Tel: 0800 783 9350
         Fax: 020 7407 4003


ESSENTIAL ENVIRONMENT: Creditors Resolve to Liquidation
-------------------------------------------------------
Creditors of Essential Environment Services Limited resolved to
liquidate the company's assets during an extraordinary general
meeting on March 24.

The voluntary liquidation came as a result of the Debtor's
inability to continue its operations due to its liabilities.

M.J. Wilson of Baker Tilly was appointed Liquidator.

The company can be reached at:

         Essential Environment Services Limited
         43 Knowl Piece
         Wilbury Way
         Hitchin Hertfordshire SG4 0TY
         United Kingdom
         Tel: 01462 459 029
         Fax: 01462 456 488


EUROTUNNEL GROUP: Citigroup Bares Alternative Rescue Plan
---------------------------------------------------------
Citigroup Inc. is proposing an alternative restructuring plan
for Eurotunnel Group rivaling that of Goldman Sachs and
Macquarie Bank.  

The plan values Eurotunnel at approximately GBP4.5 billion,
Reuters reports.  Under the proposed agreement, Citigroup will
underwrite:

   -- GBP3 billion of lower-risk, investment grade bonds to be
      issued by Eurotunnel; and

   -- GBP500 million of non-investment grade, junk bonds to be       
      issued by Eurotunnel.

The bank is also proposing that Eurotunnel issue GBP1.8 billion
of subordinated paid-in-kind debt instruments to the lowest of
its junior bondholders who hold resettable bonds, stabilization
Notes, and participating Loan Notes, at a face value greater
than the current market value of their debt.  Citigroup,
however, will not underwrite this kind of debt.

Under the plan, Eurotunnel's current shareholders would still
own 100% of the group.  Unlike in Goldman Sachs and Macquarie
Bank's proposal, the plan would not involve dilution of equity
and would not need shareholders' approval, Anousha Sakoui writes
for the Wall Street Journal.

"Citigroup has been working on an alternative restructuring plan
for Eurotunnel that would maximize the recovery for stakeholders
without dilution," Simon Dudley, managing director of
Citigroup's London unit, told WSJ.

Mr. Dudley added, "This does not involve our owning in any part
the equity of Eurotunnel and would not require shareholder
approval.  Citigroup alone would be willing to underwrite the
investment grade and non-investment-grade portion of the new
debt, in excess of GBP3.5 billion."

According to the Independent News, Citigroup has informed some
creditors on the plan, but has yet to approach Eurotunnel's
management.  Citigroup hopes to present its proposals before
Eurotunnel hold its annual general meeting on July 12.

                    Goldman Sach's Plan

As reported in the TCR-Europe on May 26, Eurotunnel signed a
preliminary binding agreement with the Ad Hoc Committee on the
financial restructuring of the Group.  The ad hoc committee,
which holds more than 50% of the total debt, represents majority
of the Company's junior creditors, namely:

   -- European Investment Bank,
   -- Franklin Mutual Advisers LLC,
   -- MBIA, and
   -- Oaktree Capital Management

Following the interim deal, Reuters reported, Eurotunnel opened
refinancing talks with Goldman Sachs and Macquarie Bank, which
plan entails:

   -- the issuance of 1.8 billion of new bonds;

   -- the maintenance of an existing secured 740 million bond
      issue;

The plan sees the Company's existing senior debt slashed to
GBP2.55 billion.

Goldman and Macquarie are also proposing to:

   -- underwrite GBP1 billion convertible bond; and

   -- issue GBP350 million of equity-like debt called mezzanine
      finance.

The banks, however, would become shareholders in Eurotunnel for
their role as underwriters since GBP1 billion of debt will be
converted into shares after three years.  The daily quoted a
source privy to the matter as saying: "Macquarie is led by
people who want to be investors in infrastructure."

The same source noted, "One of the key things about the proposal
that Citigroup is working on is, it is not looking to have any
rights to acquire the business in part or whole."

Goldman Sachs and Macquarie's plan need approval from
bondholders and shareholders before Eurotunnel can sign a final
deal.

                       Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faces
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

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.


FM7 LIMITED: Creditors Agree to Liquidation
-------------------------------------------
FM7 Limited is winding up its business after creditors agreed to
liquidate the company's assets during an extraordinary general
meeting on March 27.

P.R. Boyle and J.C. Sallabank of Harrisons were appointed Joint
Liquidators.

The company can be reached at:

         FM7 Limited
         Cardinal Point
         Park Road
         Rickmansworth
         Hertfordshire WD3 1RE
         United Kingdom
         Tel: 01923 432 634


HMV GROUP: Ottakar's Accepts Revised GBP62.9-Mln Cash Bid
---------------------------------------------------------
Ottakar's PLC accepted a revised offer for its entire issued and
to be issued share capital by HMV Group PLC two weeks after it
rejected a previous bid by the books and music retailer.

In the latest approach, HMV offers to pay 285 pence in cash for
each Ottakar's share, valuing the entire issued share capital of
Ottakar's at approximately GBP62.8 million and GBP62.9 million
on a fully diluted basis.

"The acquisition is a value enhancing opportunity to all
stakeholders, and is expected to be earnings enhancing, pre
exceptional, from the first full year of acquisition and to
exceed our cost of capital by the end of the second full year,"
HMV Group Chief Executive Alan Giles said.

Mr. Giles adds, "The Ottakar's store portfolio is highly
complementary to that of Waterstone's, and will benefit from the
introduction of Waterstone's proven, sophisticated stock
management systems, as part of a wider integration process to be
led by Waterstone's Managing Director, Gerry Johnson, and his
senior management team.  This will enable Ottakar's to offer an
even wider and more relevant range of books, and to provide
customers with an enhanced shopping experience."

The Offer represents:

   -- a 0.7% discount to the closing price of Ottakar's Shares
      on May 30, being the last business day prior to this
      announcement;

   -- a 10.7% discount to the closing price of Ottakar's Shares
      on May 11, being the last business day prior to the
      commencement of the offer period;

   -- a 1.4% premium to the price of Ottakar's Shares on
      Aug. 15, 2005, being the last business day prior to the
      announcement by the Board of Ottakar's confirming that it
      had received an approach from a third party; and

   -- a multiple of 61x Ottakar's reported basic earnings per
      share for the 52-week period ended Jan. 28, 2006.

The Board of Directors for Ottakar's, advised by Bridgewell,
consider the terms of the Offer to be fair and reasonable and
unanimously intend to recommend that, in the absence of a higher
offer, Ottakar's shareholders accept the Offer.

"Over the past year the book market has undergone a significant
change with new levels of competition from the supermarkets and
on-line retailers impacting all specialist booksellers and in
particular those with insufficient scale to compete on equal
terms," Ottakar's Chairman Philip Dunne disclosed.  "Against
this background, and given the costs and risks associated with
implementing the necessary restructuring program to compete
longer term, the Board of Ottakar's believes that the Offer is
fair and reasonable.  The Offer represents an opportunity for
Ottakar's Shareholders to realize their investment for cash now.  
Accordingly the Directors intend to recommend it to all
Ottakar's Shareholders, in the absence of a higher offer."

The Ottakar's Directors have provided irrevocable undertakings
to accept the Offer in respect of all of their own beneficial
shareholdings in Ottakar's Shares, with the exception of 140,700
shares in which Philip Dunne is interested and 6,000 shares in
which Mark Fane is interested.  

The Ottakar's Directors have therefore provided irrevocable
undertakings over, in aggregate, 3,344,231 Ottakar's Shares,
representing approximately 15.2% of the existing issued share
capital of Ottakar's.  These undertakings will continue to be
binding even in the event of a higher offer.  In addition,
Michael Hitchcock provided an irrevocable undertaking in respect
of 100,000 Ottakar's Shares for which he has an option to
subscribe.

                        About Ottakar's

Headquartered in London, United Kingdom, Ottakar's --
http://www.ottakars.co.uk/-- is one of Britain's leading book  
chains with a reputation for strongly individual high street
shops staffed by book enthusiasts able to offer superlative
levels of customer service.

Ottakar's employs around 2000 staff in over 140 stores
throughout Great Britain.

                           About HMV

Headquartered in Maindenhead, United Kingdom, HMV Group PLC --
http://www.hmvgroup.com/-- operates 580 stores in eight  
different countries under two powerful retail brands, HMV and
Waterstone's.  On March 31, 2005, the Group completed a
refinancing of its senior bank facilities, creating a more
efficient capital structure.  A five-year GBP260 million
revolving credit facility was arranged, replacing an existing
GBP150 million revolving credit facility, together with
outstanding term debt of GBP160 million which was repaid in
full.  Consequent to the refinancing, GBP2.7 million of
unamortized deferred financing fees were written-off in the
financial year to April 30, 2005, as a non-cash exceptional
interest charge.

At Oct. 29, 2005, the company's balance sheet showed GBP49.7
million in stockholders' deficit.


INHOUSEIT LIMITED: Financial Woes Trigger Liquidation
-----------------------------------------------------
InhouseIT Limited is winding up its operations after creditors
established the company could no longer continue its business
due to mounting debts.

K. B. Stout was appointed Liquidator.

The company can be reached at:

         InhouseIT Limited
         Dyna House
         Lympne Industrial Estate
         Lympne Hythe
         Kent CT214LR
         United Kingdom
         Tel: 0845 644 6684


ISLE OF WIGHT: Creditors Confirm Voluntary Liquidation
------------------------------------------------------
Creditors of Isle of Wight Airport Limited confirmed the
company's voluntary liquidation during an extraordinary general
meeting on March 20.

Creditors also ratified the appointment of A.H. Beckingham and
D. B. Coakley of BDO Stoy Hayward LLP as Joint Liquidators.

The company can be reached at:

         Isle of Wight Airport Limited
         Isle of Wight Airport
         Scotchells Brook Lane
         Sandown Isle of Wight PO360JP
         United Kingdom
         Tel: 01983 405 125
         Fax: 01983 406 117
         Web: http://isleofwightairport.co.uk/
              http://wwww.isleofwightairport.co.uk/


KWIK TAPES: Names C.H.I. Moore as Administrator
-----------------------------------------------
C.H.I. Moore of K. J. Watkin & Co. was appointed administrator
of Kwik Tapes Limited (Company Number 01494371) on May 8.

The administrator can be reached at:

         K. J. Watkin & CO.
         Emerald House
         20-22 Anchor Road
         Aldridge
         Walsall WS9 8PH
         United Kingdom
         Tel: 01922 452881
         Fax: 01922 450525

Headquartered in Stirchley, United Kingdom, Kwik Tapes Limited
supplies labeling systems.


MI SERVICES: Creditors' Meeting Slated for June 5
-------------------------------------------------
Creditors of MI Services Group Limited (Company Number
SC087221), MI Services International Limited (Company Number
SC201452) and MI Consulting Group Limited (Company Number
SC201451) will meet at 10:00 a.m. on June 5 at:

         BDO Stoy Hayward LLP
         8 Baker Street
         London W1U 3LL
         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 June 2 at:

         Shay Bannon and Shagun Dubey
         Joint Administrative Receivers
         Bdo Stoy Hayward LLP
         8 Baker Street
         London W1U 3LL
         United Kingdom
         Tel: 020 7486 5888
         Fax: 020 7487 3686
         E-mail: london@bdo.co.uk

BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member  
firm of BDO International, the world's fifth largest accountancy
network with more than 600 offices in 100 countries.  Its
services include: audit and assurance, business restructuring,
corporate finance, disputes and investigations, investment
management, risk assurance services, tax services, and
valuations.


N.C. YARNS: David John Watchorn Leads Winding Up Procedure
----------------------------------------------------------
Creditors of N.C. Yarns Limited agreed to wind up the company's
operations during an extraordinary general meeting on March 28.

David John Watchorn of Elwell Watchorn & Saxton LLP was
appointed Liquidator.

The company can be reached at:

         N.C. Yarns Limited
         115 Barkby Road
         Syston Leicester LE7 2AH
         United Kingdom
         Tel: 0116 274 0661
         Fax: 0116 246 0716


P & S: Appoints Joint Liquidators from Parkin S Booth
-----------------------------------------------------
Jonathan R. Booth and Paul J. Fleming of Parkin S Booth & Co
were appointed joint administrators of P & S (Northern) Limited
(Company Number 00110220) on May 12.

Parkin S. Booth & Co http://www.parkinsbooth.co.uk/--  
independent Accountants Licensed Insolvency Practitioners is a
medium sized firm with particular expertise in its own field.

P & S (Northern) Limited can be reached at:

         Acornfield Rd
         Knowsley Indstl Pk
         Knowsley
         Merseyside L33 7SY
         United Kingdom
         Tel: 0151 549 2626
         Fax: 0151 430 9088


RANK GROUP: Buys Back 750,000 Ordinary Shares for Cancellation
--------------------------------------------------------------
The Rank Group Plc bought back 750,000 ordinary shares of 10
pence in the Company on May 23 for cancellation at an average
price of 208.0333 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.


TIPIDEN LIMITED: Brings In Joint Liquidators from Insol House
-------------------------------------------------------------
Richard Frank Simms and Martin Richard Buttriss of Insol House
were appointed Joint Liquidators of Tipiden Limited after
creditors resolved to liquidate the company's assets during an
extraordinary general meeting on March 24.

The company can be reached at:

         Tipiden Limited
         Disraeli Street
         Leicester LE2 8LX
         United Kingdom
         Tel: 0116 223 0333
         Fax: 0116 223 0332
         Web: http://www.tipiden.co.uk/


TRUMAX LIMITED: Taps Menzies to Administer Assets
-------------------------------------------------
Paul John Clark and Jason James Godefroy of Menzies Corporate
Restructuring were appointed joint administrators of Trumax
Limited (Company Number 01599411) on May 15.

Headquartered in London, Menzies Corporate Restructuring --
http://www.menzies.co.uk/-- is a member of Moores Rowland  
International, an association of independent accounting firms
throughout the world with some 20,800 partners and staff,
operating from 628 offices in 92 countries.

Headquartered in North Bristol, Trumax Limited --
http://www.trumax.co.uk/-- is a manufacturer and supplier of  
screen printing machinery and have been providing first class
service to the industry since 1981.


UNIVERSAL ENGINEERING: Brings In Tracy Taylor as Administrator
--------------------------------------------------------------
Tracy A. Taylor of Abbey Taylor Ltd. was appointed administrator
of Universal Engineering and Design Limited (Company Number
03058117) on May 12.

The administrator can be reached at:

         Abbey Taylor Ltd.
         The Blade Enterprise Centre
         John Street
         Sheffield
         South Yorkshire S2 4SU
         United Kingdom
         Tel: 0114 292 2402
         Fax: 0114 292 2403
         E-mail: tracy.taylor@abbeytaylor.co.uk

Universal Engineering and Design Limited can be reached at:

         Universal House
         41 Catley Road
         Sheffield S9 5JF
         United Kingdom
         Tel: 0114 262 6060
         Fax: 0114 262 6061



YELL GROUP: S&P to Cut Ratings to BB- on Telefonica Takeover
------------------------------------------------------------
Standard & Poor's Ratings Services commented on its CreditWatch
placement of U.K. -based classified directory publisher Yell
Group PLC.  

The 'BB' long-term corporate credit rating remains on
CreditWatch with negative implications, where it had originally
been placed on April 28, following Yell's announced agreement to
buy Spanish Telefonica S.A.'s (BBB+/Negative/A-2) 59.9% stake in
subsidiary Telefonica Publicidad e Informacion, S.A. (TPI) and
plans to launch a tender offer for the remaining TPI shares
listed on the Madrid stock exchange.   

Standard & Poor's will resolve the CreditWatch status following
the acquisition's approval by the Spanish competition
authorities and Yell's shareholders, which S&P foresees in the
coming weeks.  

"Upon completion of the transaction and execution of the
financing plan, which is likely in July 2006, S&P expects to
lower the rating on Yell to 'BB-', with a stable outlook," said
Standard & Poor's credit analyst Melvyn Cooke.  

Including assumed debt, the total price paid is roughly EUR3.3
billion (GBP2.1 billion).  Although the level of final
acceptance for Yell's minority buy-out offer is uncertain, this
is unlikely to impact the expected one-notch downgrade.

The post-acquisition rating will reflect Yell's leveraged
capital structure while taking into account the group's leading
position in the U.K. cash-generative classified directory
publishing business and attractive growth opportunities in the
U.S.  

"Purchasing TPI will enhance Yell's geographic diversity and
provide the group with a leading position in the unregulated
Spanish market, which offers better growth prospects than the
mature and price-capped U.K. market," added Mr. Cooke.


                           *********


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, 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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