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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

             Wednesday, August 13, 2008, Vol. 9, No. 160

                             Headlines


A U S T R I A

AGKS VINDOBONA: Claims Registration Period Ends August 21
BAUSANIERUNG NOWAK: Claims Registration Period Ends August 18
HELI?WACHAU LLC: Claims Registration Period Ends August 20
HOERMANN LLC: Claims Registration Period Ends August 28
KRAUS & CO: Claims Registration Period Ends August 18

MAGNA ENTERTAINMENT: MID Provides Update on Shakeup Plan, Review
MAGNA ENTERTAINMENT: MID Warns of Possible Bankruptcy
MAGNA ENTERTAINMENT: Has US$250MM in Debts Maturing This Month
MAGNA ENTERTAINMENT: Obtains Waiver for Unit's Credit Facilities
MI DEVELOPMENTS: Provides Update on Shakeup Plan, MEC Review


B E L G I U M

ADVANCED MICRO: Moody's Lowers Corporate Family Ratings to B2
ADVANCED MICRO: Fitch Holds 'CCC/RR6' Sr. Unsecured Debt Rating


B U L G A R I A

BULGARIA STEEL: Moody's Withdraws Ca/D Corporate Family Ratings


F R A N C E

CREDIT FONCIER: S&P Affirms Zebre 2006-1 M2 Notes Rating at BB
GAP INC: Net Sales Down 5% to US$998MM for Period Ended Aug. 2


G E O R G I A

* Fitch Cuts Ratings on 4 Georgian Banks; Shifts Outlook to Neg.


G E R M A N Y

10TACLE STUDIOS: Failed EUR6.2MM Funding Prompts Insolvency
AUTOMOBILCENTER BROCK: Claims Registration Period Ends Aug. 20
AUTO- UND FAHRRADELEKTRIK: Claims Filing Period Ends August 20
B + B CREATIV: Claims Registration Period Ends August 20
BKT TECHNOLOGIE: Claims Registration Period Ends August 20

BRANCO BRANDS: Claims Registration Period Ends August 20
CHIQUITA BRANDS: Earns US$62.1 Million in 2008 Second Quarter
CUBUS WOHNBAU: Claims Registration Period Ends August 20
ECW IMMOBILIEN: Claims Registration Period Ends August 21
ELEKTRONIK UND TECHNOLOGIE: Claims Period Ends August 20

GUBA HANDELSGESELLSCHAFT: Claims Registration Ends Aug. 20
HANSEN SECURITY: Claims Registration Period Ends August 21
HYTEC NONWOVEN: Claims Registration Period Ends Aug. 20
KBB-KONSTRUKTIV-BAUTRAGER: Claims Registration Ends August 21
KTG KUNERSDORF: Claims Registration Period Ends August 20

MAXIMAL SERVICE: Claims Registration Period Ends August 20
ROCK-IT VERANSTALTUNGS: Creditors' Meeting Slated for Aug. 21
SPECTRUM BRANDS: Posts US$283.9MM Net Loss in Qtr. Ended June 29
VIKTORIA CHEM: Creditors' Meeting Slated for August 20


H U N G A R Y

AES CORP: Second Quarter Net Income Rose to US$903 Mil. in 2008


I R E L A N D

BARRAMUNDI CDO: Fitch Junks Ratings on Four Classes of Notes
BIFROST INVESTMENTS 16: Fitch Cuts Rating on EUR65MM Swaps to B
BIFROST INVESTMENTS 17: Fitch Chips EUR63MM Swaps Rating to 'BB'
IRVINGTON SCDO: Moody's Chips Two Notes Ratings to B3 from Baa3
MULBERRY STREET: Fitch Downgrades Ratings on Three Note Classes

NOVASTAR ABS: Fitch Cuts BB Rating on US$238.7MM Notes to CCC


I T A L Y

BERRY PLASTICS: Posts US$11.2 Million Net Loss in Q2 2008
BLOCKBUSTER INC: Incurs US$41.9 Million Net Loss in 2008 2nd Qtr
MONEYGRAM INT'L: June 30 Balance Sheet Upside-Down by US$885.7MM
PARMALAT SPA: Parma Court Starts Trial Against Tanzi, 53 Others
TISCALI SPA: Posts EUR57.22 Mln Group Loss for First Half 2008

TISCALI SPA: S&P Puts B+ Corp. Credit Rating on Negative Watch


K A Z A K H S T A N

DAN-EL LLP: Creditors Must File Claims by September 25
DEKORT AVISTA: Claims Deadline Slated for September 25
HALYK AGRO: Claims Filing Period Ends September 25
KAMERTON LLP: Creditors' Proofs of Claim Due on September 25
KULAN ANT: Claims Registration Ends September 25

MER DAULET: Claims Deadline Slated for September 25
TEMIR-SAUDA LLP: Claims Filing Period Ends September 25


K Y R G Y Z S T A N

STROY ELEGANT: Creditors Must File Claims by September 16


L U X E M B O U R G

LEAR CORP: Reports US$4BB Net Sales for Second Quarter 2008


N E T H E R L A N D S

PRIDE INT'L: Earns US$187.7 Million in Second Qtr. Ended June 30
X5 RETAIL: Retains Karusel Name as Hypermarket Brand


P O L A N D

AFFILIATED COMPUTER: S&P Affirms 'BB' Corporate Credit Rating


P O R T U G A L

HIPOTOTTA NO.5: S&P Affirms BB/CCC- Rating on Class E/F Notes
HIPOTOTTA NO.6: S&P Lowers Rating on Class D/E Notes to BB/B
HIPOTOTTA NO.7: S&P Cuts Class D/E Floating Notes Rating to BB/B


R U S S I A

ANGARIYA LLC: Court Sets Supervision Hearing on October 22
B.I.N.BANK: S&P Lifts Long-Term Corp. Credit Rating to B From B-
BUINSKAYA COTTON: Court Sets Supervision Hearing on August 20
KANASHSKAYA CJSC: Names V. Stepanov as Administrative Receiver
KURGANSKAYA ENERGOSBYTOVAYA: Supervision Hearing Set October 22

LIVADIYSKIY FISH: Court Sets Supervision Hearing on October 22
REAL TRADE: Court Sets Supervision Hearing on November 11
URAL BANK: Moody's Affirms E+ Bank Financial Strength Rating
UVINSKOE REPAIR: Court Starts Bankruptcy Supervision Procedure
X5 RETAIL: Retains Karusel Name as Hypermarket Brand


S W I T Z E R L A N D

ALTSTADT PAPETERIE: Creditors Must File Claims by August 23
DESIGN B: August 24 Set as Deadline to File Proofs of Claim
HAUSTECHNIK ? E. BAUMGARTNER: Creditors' Claim Due by August 24
HJARTBRO JSC: Proofs of Claim Filing Deadline is August 24
SEMGROUP LP: Hiland Companies Disclose US$13MM Exposure

SEMGROUP LP: Paramount Energy Discloses Financial Exposure


U K R A I N E

BOLSHEVIK OJSC: Proofs of Claim Filing Deadline Set August 21
ELECTRIC TECHNICAL: Creditors Must File Claims by August 21
FIRST UKRAINIAN: Fitch Affirms Individual Rating at 'D'
GALICH GLASS: Proofs of Claim Filing Deadline Set August 21
GRAN LLC: Creditors Must File Proofs of Claim by August 21

INTER-PALATIUM LLC: Creditors Must File Claims by August 21
INVESTAGRO AND K: Creditors Must File Proofs of Claim by Aug. 20
KOLOS LLC: Creditors Must File Proofs of Claim by August 21
KRATON OJSC: Creditors Must File Proofs of Claim by August 21
NADEZHDA LLC: Proofs of Claim Filing Deadline Set August 21

PROGRESS LLC: Proofs of Claim Filing Deadline Set August 21
RESOURCE LLC: Creditors Must File Proofs of Claim by August 21
SERDIUKOVKA BREADRECEIVING: Creditors' Claims Due August 21
SONKATEL INDUSTRY: Creditors Must File Claims by August 21
TECHCABLE UKRAINE: Creditors Must File Claims by August 21

VASHKOVTSY CANNERY: Proofs of Claim Filing Deadline Set Aug. 21


U N I T E D   K I N G D O M

ANY SERVICE: Taps Administrators from Smith & Williamson
ARD LTD: Brings in Joint Administrators from Baker Tilly
BEANSCENE LTD: KPMG Set Aug. 15 as Bid Submission Deadline
CHESAPEAKE CORP: S&P Cuts Rating to 'CCC+', on CreditWatch Neg
CMS REFRIGERATION: Taps Smith & Williamson to Administer Assets

ENTERTAINMENT DISTRIBUT'N: Hires Administrators from BDO Stoy
ENGLISH COURTYARD: Calls in Joint Administrators from BDO Stoy
EUROSAIL-UK: S&P Puts BB/BB-/B Ratings on CreditWatch Negative
GOALS 2006-1: S&P Removes Class D Notes BB Rating From WatchPos.
HURST HOUSE: Appoints Joint Administrators from PwC

J&A PLASTICS: Acquired by Almaak International
M & A ROARTY: Brings in Joint Administrators from Vantis
PROMINENT CMBS: S&P Holds Class E Floating-Rate Notes BB Rating
S GOLD: Taps Joint Administrators from BDO Stoy Hayward
WARNER MUSIC: International Revenue Up 17.2% for Third Qtr. 2008

WENTWORTH MILTON: Appoints Administrators from Grant Thornton

* Fitch Says Euro Automaker Credit Profile Improvements May Slow
* UK Loses GBP600 Billion of Wealth Over Credit Crunch, PwC Says
* KPMG: Pensions Crunch Looming, Trustees to Demand More Cash


                             *********


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


AGKS VINDOBONA: Claims Registration Period Ends August 21
---------------------------------------------------------
Creditors owed money by LLC Agks Vindobona have until Aug. 21,
2008, to file written proofs of claim to the court-appointed
estate administrator:

          Dr. Johannes Jaksch
          Landstrasser Hauptstrasse 1/2
          1030 Vienna
          Austria
          Tel: 713 44 33, 713 34 05
          Fax: 713 10 33
          E-mail: kanzlei@jsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on Sept. 4, 2008, for the
examination of claims at:

          The Trade Court of Vienna
          Room 1707
          Vienna
          Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 3, 2008, (Bankr. Case No. 2 S 79/08t).


BAUSANIERUNG NOWAK: Claims Registration Period Ends August 18
-------------------------------------------------------------
Creditors owed money by LLC BauSanierung Nowak have until Aug.
18, 2008, to file written proofs of claim to the court-appointed
estate administrator:

          Dr. Christian Ransmayr
          Honauerstrasse 2
          4020 Linz
          Austria
          Tel: 77 77 66
          Fax: 77 77 66-10
          E-mail: christian.ransmayr@iura.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:40 a.m. on Sept. 1, 2008, for the
examination of claims at:

          Land Court of Linz
          Room 522
          5th Floor
          Linz
          Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 4, 2008, (Bankr. Case No. 12 S 59/08a).


HELI?WACHAU LLC: Claims Registration Period Ends August 20
----------------------------------------------------------
Creditors owed money by LLC Heli-Wachau have until Aug. 20,
2008, to file written proofs of claim to the court-appointed
estate administrator:

          Dr. Ulla Reisch
          Goeglstrasse 11b
          3500 Krems an der Donau
          Austria
          Tel: 02732/484600
          Fax: 02732/484610
          E-mail: office.krems@ulsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Sept. 3, 2008, for the
examination of claims at:

          The Land Court of Krems an der Donau
          Hall A
          2nd Floor
          Krems an der Donau
          Austria

Headquartered in Kottes, Austria, the Debtor declared bankruptcy
on July 3, 2008, (Bankr. Case No. 9 S 40/08t).


HOERMANN LLC: Claims Registration Period Ends August 28
-------------------------------------------------------
Creditors owed money by LLC Hoermann have until Aug. 28, 2008,
to file written proofs of claim to the court-appointed estate
administrator:

          Dr. Herwig Ernst
          Hauptplatz 32
          2100 Korneuburg
          Austria
          Tel: 02262/72 3 17, 75 1 29
          Fax: 02262/756 57
          E-mail: lawoffice@mack-ernst.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 11, 2008, for the
examination of claims at:

          The Land Court of Korneuburg
          Hall II
          1st Floor
          Korneuburg
          Austria

Headquartered in Hollabrunn, Austria, the Debtor declared
bankruptcy on July 3, 2008, (Bankr. Case No. 32 S 20/08s).


KRAUS & CO: Claims Registration Period Ends August 18
-----------------------------------------------------
Creditors owed money by LLC Kraus & Co. Bau-Holding have until
Aug. 18, 2008, to file written proofs of claim to the court-
appointed estate administrator:

          Dr. Guenther Grassner
          Suedtirolerstrasse 4-6
          4020 Linz
          Austria
          Tel: 7077 0815
          Fax: 7077 0816
          E-mail: lawfirm@gltp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Sept. 1, 2008, for the
examination of claims at:

          Land Court of Linz
          Room 522
          5th Floor
          Linz
          Austria

Headquartered in Linz, Austria, the Debtor declared bankruptcy
on July 3, 2008, (Bankr. Case No. 12 S 49/08f).


MAGNA ENTERTAINMENT: MID Provides Update on Shakeup Plan, Review
----------------------------------------------------------------
On March 31, 2008, MI Developments, Inc. received a
reorganization proposal on behalf of various shareholders of
MID, including entities affiliated with the Stronach Trust,
MID's controlling shareholder.  The principal components of the
reorganization proposal are set out in MID's press release dated
March 31, 2008, which can be found at
http://www.midevelopments.comand http://www.sedar.com.

MID's Board of Directors mandated a special committee of
independent directors to review the proposal and make
recommendations to the Board.

The proposal contemplated MID calling by May 30, 2008 a special
meeting of shareholders to consider the reorganization and
closing the transaction no later than July 30, 2008.  On May 30,
2008, MID called a special meeting of shareholders for July 24,
2008.

In early June 2008, at the direction of the MID Special
Committee, MID management commenced discussions with a number of
MID Class A shareholders, including those shareholders (owning
in aggregate more than 50% of the outstanding Class A
Subordinate Voting Shares) that supported the original
reorganization proposal announced on March 31, 2008.  The
discussions are intended to develop a consensus on how to best
amend and structure the proposed reorganization.  As a result of
these discussions, on June 27, 2008, MID announced that the
special meeting discussed was being postponed.

Given that no consensus has yet been reached with respect to
amending the reorganization proposal, MID intends to continue to
explore a range of alternatives in respect of its Magna
Entertainment Corp. investment.  These alternatives include,
without limitation, examining an amended reorganization proposal
and evaluating whether or to what extent MID might participate
in a recapitalization or restructuring of MEC.  MID is not
subject to any restrictions regarding future investments in MEC.

Any potential transactions with MEC would be subject to review
by the MID Special Committee and the approval of the MID Board.
Neither the MID Special Committee nor the MID Board has made any
decisions or recommendations with respect to the reorganization
proposal or any other transaction relating to MEC.  There can be
no assurance that the transaction contemplated by the
reorganization proposal, or any other transaction relating to
MEC, will be completed.

The unaudited interim consolidated financial statements do not
reflect any adjustments that may be required should the
reorganization proposal, or any other transaction relating to
MEC, be completed.

At June 30, 2008, US$4.3 million of advisory and other costs had
been incurred in connection with the reorganization proposal,
which costs are included in the Real Estate Business' "general
and administrative expenses" on the Company's unaudited interim
consolidated statements of income (loss) for the three and six
months ended June 30, 2008.

The participation by MID in a recapitalization or restructuring
of MEC could result in a  significant increase in the Company's
financial leverage, change the risk profile of the Real Estate
Business and/or limit its financial flexibility to take
advantage of certain investment opportunities.  In addition, if
the Real Estate Business' funded debt were to exceed 40% of its
total capitalization as a result of these changes, the Company
might be required to repay the Debentures and potentially pay a
prepayment premium determined in accordance with the terms of
the applicable trust indenture, as described in the annual
consolidated financial statements for the year ended
Dec. 31, 2007.

                            About MID

MID -- http://www.midevelopments.com/--  is a real estate
operating company focusing primarily on the ownership, leasing,
management, acquisition and development of a predominantly
industrial rental portfolio for Magna and its subsidiaries in
North America and Europe.  MID also acquires land that it
intends to develop for mixed-use and residential projects.  MID
holds a controlling interest in MEC, North America's number one
owner and operator of horse racetracks, based on revenue, and
one of the world's leading suppliers, via simulcasting, of live
horse racing content to the growing inter-track, off-track and
account wagering markets.

At Dec. 31, 2007, the company owned 105 industrial and
commercial properties located in Canada, Austria, the United
States, Germany, Mexico, the United Kingdom, the Czech Republic,
Spain and Poland.

                     About Magna Entertainment

Headquartered in Aurora, Ontario, Magna Entertainment Corp.
(Nasdaq: MECA)(TSX: MEC.A) -- http://www.magnaentertainment.com/
-- acquires, develops, owns and operates horse racetracks and
related pari-mutuel wagering operations, including off-track
betting facilities.  The company also develops, owns and
operates casinos in conjunction with its racetracks where
permitted by law.  The company owns production facilities in
Austria.


MAGNA ENTERTAINMENT: MID Warns of Possible Bankruptcy
-----------------------------------------------------
In September 2007, following a strategic review, Magna
Entertainment Corp. announced a Debt Elimination Plan designed
to eliminate MEC's net debt by December 31, 2008 and provide
funding for MEC's operations.  The MEC Debt Elimination Plan
contemplated generating aggregate proceeds of approximately
US$600 to US$700 million through:

      (i) the sale of certain real estate, racetracks and other
          assets;

     (ii) the sale of, or entering into strategic transactions
          involving, MEC's other racing, gaming and technology
          operations; and

    (iii) a possible future equity issuance by MEC, likely in
       2008.

To address MEC's short-term liquidity concerns and provide it
with sufficient time to implement the MEC Debt Elimination Plan,
MI Development, Inc. made available a bridge loan of up to
US$80.0 million (subsequently increased to US$110.0 million) to
MEC.  The MEC Debt Elimination Plan also contemplated a
US$20.0 million private placement to Fair Enterprise Limited, a
company that forms part of an estate planning vehicle for the
family of Mr. Frank Stronach (the Company's Chairman and the
Chairman and Chief Executive Officer of MEC), of MEC Class A
Stock, which closed in October 2007.

Given that the sale of MEC assets under the MEC Debt Elimination
Plan continues to take longer than originally contemplated, on
May 23, 2008, the maturity date of the MEC Bridge Loan and the
deadline for repayment of at least US$100.0 million under the
Gulfstream Park project financing facility were extended from
May 31, 2008 to August 31, 2008.  At the same time, the maximum
commitment under the MEC Bridge Loan was increased from US$80.0
million to US$110.0 million, and MEC was given the ability to
re-borrow the US$21.5 million previously repaid from proceeds of
asset sales.

Whether the MEC Debt Elimination Plan will be successful is not
determinable at this time.  To date, MEC has generated aggregate
asset sale proceeds under the MEC Debt Elimination Plan of
US$37.7 million, of which US$26.0 million has been used to make
repayments under the MEC Bridge Loan.  Although MEC continues to
take steps to implement its plan, MEC does not expect to execute
the MEC Debt Elimination Plan on the originally contemplated
time schedule, if at all.  Furthermore, MEC has advised MID
that, given the potential impact on MEC's financial position of
the MID reorganization proposal, and pending determination of
whether it will proceed and an evaluation of any amended terms,
MEC is in the process of reconsidering whether to sell certain
of the assets originally identified for disposition under the
MEC Debt Elimination Plan.

MID management expects that MEC will be unable at Aug. 31, 2008,
to repay the MEC Bridge Loan or make the required
US$100.0 million repayment under the Gulfstream Park project
financing facility.

Furthermore, MID management expects that MEC will again need to
seek extensions from existing lenders, including MID, and
additional funds in the short-term from one or more possible
sources, which may include MID.  If MEC is unable to repay its
obligations when due or satisfy required covenants in its debt
agreements, substantially all of its current and long-term debt
will also become due on demand as a result of cross-default
provisions within loan agreements, unless MEC is able to obtain
waivers, modifications or extensions.

The availability of any required waivers, modifications,
extensions or additional funds is not assured and, if available,
the terms thereof are not yet determinable.  If MEC is
unsuccessful in its efforts, it could be required to liquidate
assets in the fastest manner possible to raise funds, seek
protection from its creditors in one or more ways, or be unable
to continue as a going concern.  Accordingly, MEC's ability to
continue as a going concern is in substantial doubt.

                            About MID

MID -- http://www.midevelopments.com/--  is a real estate
operating company focusing primarily on the ownership, leasing,
management, acquisition and development of a predominantly
industrial rental portfolio for Magna and its subsidiaries in
North America and Europe.  MID also acquires land that it
intends to develop for mixed-use and residential projects.  MID
holds a controlling interest in MEC, North America's number one
owner and operator of horse racetracks, based on revenue, and
one of the world's leading suppliers, via simulcasting, of live
horse racing content to the growing inter-track, off-track and
account wagering markets.

At Dec. 31, 2007, the company owned 105 industrial and
commercial properties located in Canada, Austria, the United
States, Germany, Mexico, the United Kingdom, the Czech Republic,
Spain and Poland.

                     About Magna Entertainment

Headquartered in Aurora, Ontario, Magna Entertainment Corp.
(Nasdaq: MECA)(TSX: MEC.A) -- http://www.magnaentertainment.com/
-- acquires, develops, owns and operates horse racetracks and
related pari-mutuel wagering operations, including off-track
betting facilities.  The company also develops, owns and
operates casinos in conjunction with its racetracks where
permitted by law.  The company owns production facilities in
Austria.


MAGNA ENTERTAINMENT: Has US$250MM in Debts Maturing This Month
------------------------------------------------------------
Magna Entertainment Corp. has incurred a net loss before
minority interest recovery of US$45.0 million for the six months
ended June 30, 2008, and net losses before minority interest
recovery of US$68.8 million, US$65.4 million and US$107.4
million for the years ended December 31, 2007, 2006 and 2005,
respectively.

At June 30, 2008, MEC had a working capital deficiency of
US$220.9 million and US$230.6 million of debt scheduled to
mature in the 12-month period ending June 30, 2009, including:

      (i) amounts owing under MEC's US$40.0 million senior
          secured revolving credit facility with a Canadian
          financial institution, which is scheduled to mature on
          August 15, 2008,

     (ii) amounts owing under a bridge loan of up to
          US$110.0 million (initially up to US$80.0 million) from
          a wholly owned subsidiary of MID, which is scheduled to
          mature on August 31, 2008, and

    (iii) MEC's obligation to repay US$100.0 million of
          indebtedness under the Gulfstream Park project
          financing facility with the MID Lender by
          Aug. 31, 2008.

Accordingly, MEC's ability to continue as a going concern is in
substantial doubt and is dependent on MEC generating cash flows
that are adequate to sustain the operations of the business,
renewing or extending current financing arrangements and meeting
its obligations with respect to secured and unsecured creditors,
none of which is assured.  If MEC is unable to repay its
obligations when due or satisfy required covenants in its debt
agreements, substantially all of its current and long-term debt
will also become due on demand as a result of cross-default
provisions within loan agreements, unless MEC is able to obtain
waivers, modifications or extensions.  The availability of such
waivers, modifications or extensions is not assured and, if
available, the terms thereof are not yet determinable.

On September 12, 2007, MEC's Board of Directors approved a debt
elimination plan designed to eliminate MEC's net debt by
December 31, 2008 by generating funds from the sale of assets
(notes 4 and 5), entering into strategic transactions involving
certain of MEC's racing, gaming and technology operations, and a
possible future equity issuance.  The success of the MEC Debt
Elimination Plan is not assured.  To address short-term
liquidity  concerns and provide sufficient time to implement the
MEC Debt Elimination Plan, MEC arranged US$100.0 million of
funding in September 2007, comprised of:

      (i) a US$20.0 million private placement of MEC's Class A
          Subordinate Voting Stock to Fair Enterprise Limited
          (FEL), a company that forms part of an estate planning
          vehicle for the family of Mr. Frank Stronach, the
          Company's Chairman and the Chairman and Chief
          Executive Officer of MEC, completed in October 2007;
          and

     (ii) the MEC Bridge Loan.

Although MEC continues to take steps to implement the MEC Debt
Elimination Plan, MEC does not expect to execute its plan on the
originally contemplated time schedule, if at all.  Furthermore,
MEC has advised MID that, given the potential impact on MEC's
financial position of the MID reorganization proposal, and
pending determination of whether it will proceed and an
evaluation of any amended terms, MEC is in the process of
reconsidering whether to sell certain of the assets originally
identified for disposition under the MEC Debt Elimination Plan.

As a result, MEC has needed and will again need to seek
extensions from existing lenders and additional funds in the
short-term from one or more possible sources, which may include
the Company.  The availability of such extensions and additional
funds is not assured and, if available, the terms thereof are
not yet determinable.  These unaudited interim consolidated
financial statements do not give effect to any adjustments to
recorded amounts and their classification which would be
necessary should MEC be unable to continue as a going concern
and, therefore, be required to realize its assets and discharge
its liabilities in other than the normal course of business and
at amounts different from those reflected in the unaudited
interim consolidated financial statements.

The uncertainty regarding MEC's ability to continue as a going
concern does not impact the realization of the Company's assets
and discharge of its liabilities in the normal course of its
real estate business.  MID's real estate business has not
guaranteed any of MEC's indebtedness.

MEC's racing business is seasonal in nature and racing revenues
and operating results for any quarter will not be indicative of
the racing revenues and operating results for the year.  MEC's
racing operations have historically operated at a loss in the
second half of the year, with the third quarter typically
generating the largest operating loss.  This seasonality has
resulted in large quarterly fluctuations in MEC's revenues and
operating results.

                            About MID

MID -- http://www.midevelopments.com/--  is a real estate
operating company focusing primarily on the ownership, leasing,
management, acquisition and development of a predominantly
industrial rental portfolio for Magna and its subsidiaries in
North America and Europe.  MID also acquires land that it
intends to develop for mixed-use and residential projects.  MID
holds a controlling interest in MEC, North America's number one
owner and operator of horse racetracks, based on revenue, and
one of the world's leading suppliers, via simulcasting, of live
horse racing content to the growing inter-track, off-track and
account wagering markets.

At Dec. 31, 2007, the company owned 105 industrial and
commercial properties located in Canada, Austria, the United
States, Germany, Mexico, the United Kingdom, the Czech Republic,
Spain and Poland.

                     About Magna Entertainment

Headquartered in Aurora, Ontario, Magna Entertainment Corp.
(Nasdaq: MECA)(TSX: MEC.A) -- http://www.magnaentertainment.com/
-- acquires, develops, owns and operates horse racetracks and
related pari-mutuel wagering operations, including off-track
betting facilities.  The company also develops, owns and
operates casinos in conjunction with its racetracks where
permitted by law.  The company owns production facilities in
Austria.


MAGNA ENTERTAINMENT: Obtains Waiver for Unit's Credit Facilities
----------------------------------------------------------------
Two of Magna Entertainment Corp.'s wholly owned subsidiaries
that own and operate Pimlico Race Course and Laurel Park had
borrowings of US$9.0 million outstanding at June 30, 2008 under
term loan credit facilities with a U.S. financial institution.
At June 30, 2008, MEC was not in compliance with one of the
financial covenants contained in those credit agreements.  MEC
obtained a waiver from the lender on August 5, 2008 for this
financial covenant breach at June 30, 2008 and the loan
facilities were amended to temporarily modify this financial
covenant as at September 30, 2008.

One of these MEC subsidiaries, Pimlico Racing Association, Inc.,
has a revolving term loan facility with the same U.S. financial
institution that permits the prepayment of outstanding principal
without penalty.  This facility matures on December 1, 2013,
bears interest at either the U.S. prime rate or LIBOR plus 2.6%
per annum and is collateralized by deeds of trust on land,
buildings and improvements and security interests in all other
assets of the subsidiary and certain affiliates of The Maryland
Jockey Club.  At June 30, 2008, there were no drawings on this
facility.

On August 5, 2008, the revolving term loan facility was amended
to  reduce the maximum undrawn availability from US$7.7 million
to US$4.5 million.

                     About Magna Entertainment

Headquartered in Aurora, Ontario, Magna Entertainment Corp.
(Nasdaq: MECA)(TSX: MEC.A) -- http://www.magnaentertainment.com/
-- acquires, develops, owns and operates horse racetracks and
related pari-mutuel wagering operations, including off-track
betting facilities.  The company also develops, owns and
operates casinos in conjunction with its racetracks where
permitted by law.  The company owns production facilities in
Austria.


MI DEVELOPMENTS: Provides Update on Shakeup Plan, MEC Review
------------------------------------------------------------
On March 31, 2008, MI Developments, Inc. received a
reorganization proposal on behalf of various shareholders of
MID, including entities affiliated with the Stronach Trust,
MID's controlling shareholder.  The principal components of the
reorganization proposal are set out in MID's press release dated
March 31, 2008, which can be found at
http://www.midevelopments.comand http://www.sedar.com

MID's Board of Directors mandated a special committee of
independent directors to review the proposal and make
recommendations to the Board.

The proposal contemplated MID calling by May 30, 2008 a special
meeting of shareholders to consider the reorganization and
closing the transaction no later than July 30, 2008.  On May 30,
2008, MID called a special meeting of shareholders for July 24,
2008.

In early June 2008, at the direction of the MID Special
Committee, MID management commenced discussions with a number of
MID Class A shareholders, including those shareholders (owning
in aggregate more than 50% of the outstanding Class A
Subordinate Voting Shares) that supported the original
reorganization proposal announced on March 31, 2008.  The
discussions are intended to develop a consensus on how to best
amend and structure the proposed reorganization.  As a result of
these discussions, on June 27, 2008, MID announced that the
special meeting discussed was being postponed.

Given that no consensus has yet been reached with respect to
amending the reorganization proposal, MID intends to continue to
explore a range of alternatives in respect of its Magna
Entertainment Corp. investment.  These alternatives include,
without limitation, examining an amended reorganization proposal
and evaluating whether or to what extent MID might participate
in a recapitalization or restructuring of MEC.  MID is not
subject to any restrictions regarding future investments in MEC.

Any potential transactions with MEC would be subject to review
by the MID Special Committee and the approval of the MID Board.
Neither the MID Special Committee nor the MID Board has made any
decisions or recommendations with respect to the reorganization
proposal or any other transaction relating to MEC.  There can be
no assurance that the transaction contemplated by the
reorganization proposal, or any other transaction relating to
MEC, will be completed.

The unaudited interim consolidated financial statements do not
reflect any adjustments that may be required should the
reorganization proposal, or any other transaction relating to
MEC, be completed.

At June 30, 2008, US$4.3 million of advisory and other costs had
been incurred in connection with the reorganization proposal,
which costs are included in the Real Estate Business' "general
and administrative expenses" on the Company's unaudited interim
consolidated statements of income (loss) for the three and six
months ended June 30, 2008.

The participation by MID in a recapitalization or restructuring
of MEC could result in a  significant increase in the Company's
financial leverage, change the risk profile of the Real Estate
Business and/or limit its financial flexibility to take
advantage of certain investment opportunities.  In addition, if
the Real Estate Business' funded debt were to exceed 40% of its
total capitalization as a result of these changes, the Company
might be required to repay the Debentures and potentially pay a
prepayment premium determined in accordance with the terms of
the applicable trust indenture, as described in the annual
consolidated financial statements for the year ended
Dec. 31, 2007.

                            About MID

MID -- http://www.midevelopments.com/--  is a real estate
operating company focusing primarily on the ownership, leasing,
management, acquisition and development of a predominantly
industrial rental portfolio for Magna and its subsidiaries in
North America and Europe.  MID also acquires land that it
intends to develop for mixed-use and residential projects.  MID
holds a controlling interest in MEC, North America's number one
owner and operator of horse racetracks, based on revenue, and
one of the world's leading suppliers, via simulcasting, of live
horse racing content to the growing inter-track, off-track and
account wagering markets.

At Dec. 31, 2007, the company owned 105 industrial and
commercial properties located in Canada, Austria, the United
States, Germany, Mexico, the United Kingdom, the Czech Republic,
Spain and Poland.


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


ADVANCED MICRO: Moody's Lowers Corporate Family Ratings to B2
-------------------------------------------------------------
Moody's Investors Service downgraded Advanced Micro Devices'
corporate family ratings to B2 from B1.  At the same time, the
rating on the US$390 million senior note due 2012 was revised to
B3 (LGD4, 59%) from B2.  The outlook is negative.

The downgrade was prompted by AMD's ongoing operating losses
driven primarily by business execution, diminished liquidity and
high financial leverage.  Moody's believes that AMD will remain
challenged to internally fund the advancement of its process
capability and production capacity, which is essential to keep
pace with competitor manufacturing cost reduction and process
node advances.

The rating action, rationale, and outlook do not include the
potential that the company may announce or finalize its "asset
smart" strategy, to which it has referred since late 2007.  To
the extent that AMD announces developments in this regard,
Moody's will consider the business, financial, and rating
implications as sufficient information becomes available.

Moody's decision to lower AMD's ratings also incorporated the
ongoing high level of business risk inherent to the volatile and
capital intensive microprocessor segment of the semiconductor
industry and the intense competition from the company's much
larger rival, Intel Corporation, who, with a strong product line
and significant financial, technical, and manufacturing
resources will continue to compete very aggressively in order to
maintain market share that it regained from AMD in 2007.

According to Richard Lane, Senior Vice President, "While overall
PC market demand remains good, unit growth continues to be
driven by a lower end mix of PC's and servers, where processors
tend to carry lower profit margins.  To the extent that the
developing macro demand environment becomes more cautious, AMD's
profitability and cash flow would likely suffer unless there
were a significant reversal of product mix and operational
efficiencies."  Given AMD's high financial leverage and more
limited financial flexibility, it would then be constrained to
invest in necessary product development and manufacturing
capability in order to remain competitive.

AMD's negative rating outlook reflects the company's challenges
to move its operating performance towards a level of self
funding profitability and then to sustain that momentum.  To the
extent that AMD does not show demonstrable signs of improving
its financial results in the second half of 2008, the rating
could come under downward pressure.

Ratings downgraded include:

    -- Corporate family rating to B2 from B1;

    -- Probability-of-default rating to B2 from B1;

    -- US$390 million senior unsecured notes due August 2012
       to B3 (LGD4, 59%) from B2.

Advanced Micro Devices, Inc., headquartered in Sunnyvale,
California, is the world's second largest designer and
manufacturer of microprocessors.  With an approximate 20% unit
share of the microprocessor market, AMD generated US$6.3 billion
of revenues for the twelve months ended June 2008.


ADVANCED MICRO: Fitch Holds 'CCC/RR6' Sr. Unsecured Debt Rating
---------------------------------------------------------------
Fitch has affirmed these ratings on Advanced Micro Devices Inc.:

   -- Issuer Default Rating at 'B-';
   -- Senior unsecured debt at 'CCC/RR6'.

The Rating Outlook is Negative.

The ratings and outlook continue to reflect:

    -- Fitch's expectations that AMD's operating performance will
       remain relatively weak over the near term, despite recent
       new product introductions, due in part to key product
       delays in 2007, enabling Intel Corp. to strengthen its
       market leadership position with a refreshed product
       portfolio.

       Nonetheless, for the second half of 2008, AMD should
       benefit from approximately 10% unit growth for the broader
       microprocessor industry, although Fitch believes the
       currently challenged consumer macroeconomic environment
       will disproportionately impact AMD, given its greater
       consumer exposure than Intel, on a relative basis.
       Increased unit demand for its new quad-core Opteron and
       graphics chips and lower fixed costs due to ongoing
       restructuring also should bolster AMD's operating
       performance.  However, Fitch believes meaningful
       profitability expansion will be constrained by pressured
       average selling prices, driven by Intel's low-cost
       manufacturing footprint and increased sales of lower-
       priced models into developing markets.

    -- AMD's limited financial flexibility and modest liquidity
       position was supported by approximately US$1.4 billion of
       cash and cash equivalents at June 28, 2008, not including
       approximately US$180 million of auction rate securities
       the company classifies as marketable securities but that
       Fitch believes do not represent a reliable source of
       liquidity over the near term.  While liquidity has been
       bolstered by approximately US$200 million of proceeds from
       the sale of 200-millimeter tools during the first half of
       2008, Fitch expects free cash flow will approach negative
       US$1 billion for the full year absent AMD cutting capital
       spending further from the planned US$900 million.  The
       company believes it could raise an additional US$250
       million via the sales of non-operating assets, mostly
       administrative buildings, although Fitch views this as a
       more likely 2009 event.

Additionally, during the quarter ended June 28, 2008, the
company announced its intention to sell its hand held and
digital television business acquired with ATI Technologies,
potentially adding modestly to liquidity.  AMD also entered into
an accounts receivable sales program with IBM Credit Corp.,
which provided an additional US$60 million of liquidity as of
the end of the second quarter.  Nonetheless, in the absence of
meaningfully higher-than-expected free cash flow generation
and/or additional asset sales, Fitch expects AMD's cash levels
will approach US$1 billion exiting 2008.

In Fitch's opinion, additional negative rating actions will
likely occur if AMD depletes its current cash balance at a
faster-than-expected pace or if profitability contracts further.
Alternatively, the ratings could be stabilized over the next few
quarters if AMD steadily improves profitability or bolsters
financial flexibility by obtaining additional external funding.

Ratings concerns continue to center on:

    -- Significant product technology risk associated with the
       MPU market, resulting in cyclical operating results.
       Furthermore, Fitch believes AMD's ability to withstand
       technology roadmap missteps is constrained by the
       company's limited market share and financial flexibility.

    -- Intel's meaningful manufacturing technology advantage over
       AMD, driven by capital expenditures consistently in excess
       of US$5 billion, pressuring AMD to continue investing
       aggressively to upgrade its manufacturing facilities.

    -- Fitch's expectations that AMD's debt levels will remain
       high and likely increase, driven by the company's
       investment requirements, thereby constraining AMD's
       financial flexibility for the foreseeable future.
       However, Fitch believes the successful implementation of
       AMD's planned (although not yet announced) 'asset light'
       strategy could meaningfully reduce capital spending
       requirements.

The ratings are supported by:

    -- Expectations for solid MPU unit growth and AMD's
       relatively consistent market share over the next couple of
       years.

    -- The company's strengthened and expanding relationships
       with all personal computer original equipment
       manufacturers, driven in part by AMD's enhanced ability to
       provide platform products to the marketplace following the
       acquisition of ATI Technologies in October 2006.

    -- AMD's staggered and longer-term debt maturities, as well
       as its now proven willingness to cut capital spending in
       the face of less-favorable market conditions.

At June 28, 2008, total debt was US$5.3 billion, and consisted
of:

    -- US$858 million of debt related to Fab 36, including
       US$795 million of Fab 36 Euro Term Loan due 2011.

    -- US$1.5 billion 5.75% convertible senior unsecured notes
       due 2012;

    -- US$2.2 billion 6% senior unsecured convertible notes due
       2015;

    -- US$390 million 7.75% senior unsecured notes due 2012; and

    -- other debt, including capital leases, of approximately
       US$313 million.

The Recovery Ratings reflect Fitch's belief that AMD would be
reorganized rather than liquidated in a bankruptcy scenario,
given Fitch's estimates that the company's reorganization value
of approximately US$1.8 billion exceeds a projected liquidation
value of approximately US$970 million, driven by AMD's improved
operating EBITDA in the first half of 2008 versus that of 2007.
Furthermore, Fitch believes AMD's role as a viable alternative
microprocessor supplier to Intel, which currently has nearly 80%
market share, supports the case for reorganizing rather than
liquidating AMD in a bankruptcy scenario.

To arrive at a reorganization value, Fitch applies a 30%
discount its estimate of AMD's operating EBITDA for the latest
12 months ended June 28, 2008, of approximately US$511 million,
reflecting the company's substantial historical operating
volatility.  Fitch assumes a 5 times reorganization multiple and
arrives at an adjusted reorganization value of approximately
US$1.6 billion after subtracting administrative claims.  Based
upon these assumptions, and given that approximately US$1
billion of unrated borrowings is related to Fab 36 and capital
leases, which Fitch views as essentially secured, minimal
recovery (0%-10%) would be available for the approximately
US$4.1 billion of senior unsecured debt, resulting in 'RR6'
ratings.


===============
B U L G A R I A
===============


BULGARIA STEEL: Moody's Withdraws Ca/D Corporate Family Ratings
---------------------------------------------------------------
Moody's Investors Service has withdrawn ratings of Kremikovtzi
AD and its guaranteed subsidiaries.  The ratings are being
withdrawn under Moody's Guidelines for the Withdrawal of Ratings
in situations associated with Bankruptcies, Reorganizations and
Liquidations.

The ratings withdraw are as follows:

-- Ca/D Corporate Family Ratings at Kremikovtzi AD;

-- Ca/LGD 4 (53) ratings of EUR325 million senior secured
    guaranteed notes at Bulagaria Steel Finance BV.

Kremikovtzi AD is a single-site steel producer in Bulgaria.
Kremikovtzi restated revenues in 2006 were BGN896 million
(US$704 million) and EBITDA was negative BGN13 million
(US$7 million).


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


CREDIT FONCIER: S&P Affirms Zebre 2006-1 M2 Notes Rating at BB
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its credit
ratings on the notes issued in 11 French residential mortgage-
backed securities (RMBS) transactions.  The securitizations fall
under the Partimmo, Antilope, and Zebre shelves and were
originated by Credit Foncier de France (CFF), or one of its
founding entities.

The rating actions follow a full review of each securitization
and rely, where applicable, on the most recent loan-level
information.  S&P also took into account performance metrics and
the structural deleveraging.

S&P's analysis demonstrated that all the transactions are
performing well and that the current levels of credit
enhancement available are still sufficient to maintain the
current ratings on all FCC (Fonds Commun de Créance) units.
Relative credit enhancement has actually increased for the FCC
units affected following the semi-sequential amortization
mechanism in the transactions.

The affected notes, issued between 2000 and 2006, are backed by
portfolios of first-ranking prime residential mortgages secured
over owner and non-owner-occupied properties in France.

In its reviews, S&P took into account the installment caps
offered by CFF to the borrowers.  These installment caps are a
free offer to the borrowers and S&P has assumed in its analysis
that borrowers will accept these offers.  Effectively, the caps
will prevent the rise of monthly installments at a pace higher
than the actual inflation.

If, however, for floating-rate loans the monthly installments
rise due to rising interest rates, but inflation remains low,
the there will be a risk of interest shortfalls.  In such cases,
CFF's offer foresees that a higher portion of the monthly
installment will be considered as interest.  As a result, a
principal balloon will be created.  Principal balloons will
become obligations of CFF at the maturity of the loans, if the
borrower stays solvent and does not go into arrears.  S&P
assumed the full loss of these principal balloons.  S&P
calculated the level of balloons for each transaction by
applying a conservative prepayment assumption.

  Ratings List:

  Class           Rating
              To          From

  Ratings Affirmed:

  Partimmo 06-2000
  EUR1.829 Billion Fixed-Rate Notes

              A1          AAA

  Partimmo 10-2001
  EUR1,663 Billion Fixed-Rate Notes

              P           AAA

  Partimmo 07-2002
  EUR1.22 Billion Fixed-Rate Notes

              P           AAA

  Partimmo 10-2002
  EUR706.74 Million Fixed-Rate Notes

              P           AAA

  Partimmo 05-2003
  EUR986.84 Million Fixed-Rate Notes

              P           AAA

  Partimmo 11-2003
  EUR1.04 Billion Fixed-Rate Notes

             P            AAA

  Antilope 1
  EUR1.23 Billion Mortgage Loan-Backed FCC Units

             Snr P        AAA

  Antilope 2
  EUR1.6 Billion Mortgage Loan-Backed FCC Units

             Snr P        AAA

  Zebre One
  EUR1.173 Billion Mortgage Loan-Backed FCC Units

             P Snr        AAA

  Zebre Two
  EUR680.1 Million Mortgage-Backed FCC Units

             Snr P        AAA

  Zebre 2006-1
  EUR688.43 Million Mortgage Loan-Backed FCC Units

             P            AAA
             M1           BBB
             M2           BB


GAP INC: Net Sales Down 5% to US$998MM for Period Ended Aug. 2
--------------------------------------------------------------
Gap Inc. reported net sales of US$998 million for the four-week
period ended Aug. 2, 2008, which is a decrease of 5 percent as
compared with net sales of US$1.05 billion for the same period
ended Aug. 4, 2007.  The company's comparable store sales for
July 2008 decreased 11 percent compared with a 7 percent
decrease for July 2007.

Comparable store sales by division for July 2008 were:

     * Gap North America: negative 6 percent versus positive 2
       percent last year

     * Banana Republic North America: negative 8 percent versus
       positive 1 percent last year

     * Old Navy North America: negative 16 percent versus
       negative 18 percent last year

     * International: negative 9 percent versus positive 11
       percent last year

"In July, we focused on clearing through remaining summer
product and preparing our stores for fall deliveries,": said
Sabrina Simmons, chief financial officer of Gap Inc.  "We're
pleased that we delivered merchandise margins significantly
above last year."

                 Second Quarter Sales Results

For the thirteen weeks ended Aug. 2, 2008, total company net
sales were US$3.50 billion, which is a decrease of 5 percent as
compared with net sales of US$3.69 billion for the thirteen
weeks ended Aug. 4, 2007.  The company's second quarter
comparable store sales decreased 10 percent compared with a
decrease of 5 percent in the second quarter of the prior year.

Comparable store sales by division for the second quarter of
fiscal year 2008 were:

     * Gap North America: negative 6 percent versus negative 6
       percent last year

     * Banana Republic North America: negative 6 percent versus
       positive 4 percent last year

     * Old Navy North America: negative 16 percent versus
       negative 9 percent last year

     * International: negative 6 percent versus positive 3
       percent last year

         Second Quarter and Fiscal Year Earnings Guidance

The company expects diluted earnings per share on a GAAP basis
for the second quarter to be US$0.30 to US$0.31.

The company is increasing its guidance for earnings per share on
a GAAP basis for fiscal year 2008 to US$1.30 to US$1.35 from its
previous guidance of US$1.20 to US$1.27.

                           About Gap

Headquartered in San Francisco, California, Gap Inc. (NYSE: GPS)
-- http://www.gapinc.com/-- is an international specialty
retailer offering clothing, accessories and personal care
products for men, women, children and babies under the Gap,
Banana Republic, Old Navy, Forth & Towne and Piperlime brand
names.  Gap Inc. has subsidiaries in the United Kingdom, Canada,
France, Ireland, Japan, Hong Kong, Bermuda and Mexico, among
others.  In addition, Gap Inc. is expanding its international
presence with franchise agreements for Gap and Banana Republic
in Southeast Asia and the Middle East.

                           *     *     *

In April 2008, Fitch affirmed its BB+ rating on The Gap, Inc.'s
Issuer Default Rating and Senior unsecured notes.  Fitch however
revised the Rating Outlook to Stable from Negative.


=============
G E O R G I A
=============


* Fitch Cuts Ratings on 4 Georgian Banks; Shifts Outlook to Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded and revised the Rating Outlook on
these four Georgian banks to Negative from Stable:

   -- ProCredit Bank (PCG) to 'B+' from 'BB-';
   -- JSC VTB Bank (VTBG) to 'B+' from 'BB-';
   -- Bank of Georgia (BOG) to 'B' from 'B+';
   -- TBC Bank (TBC) to 'B' from 'B+'.

At the same time, Fitch has revised the Rating Watch on JSC BTA
Bank to Evolving from Positive and affirmed the ratings of JSC
Basisbank.

The rating actions follow the downgrade on Aug. 8, 2008 of the
Georgian sovereign Long-term foreign and local currency Issuer
Default Ratings and Country Ceiling to 'B+' from 'BB-' and the
Outlook revision on the Long-term IDRs to Negative from Stable
as a result of the escalation of the military conflict in the
country involving Georgian and Russian forces.

The downgrades on the four banks reflect Fitch's view of the
reduced probability of support being available to those banks in
case of need.  In the cases of PCG and VTBG, this is due to
heightened Georgian transfer and convertibility risks, as
reflected in the downgrade of the Country Ceiling, which may
make it harder for those banks to receive and utilize support
from their majority foreign shareholders.  PCG is 91%-owned by
Germany's ProCredit Holding AG (Long-term IDR rated 'BBB-' with
a Stable Outlook by Fitch).  VTBG is 76%-owned by Russian state-
controlled JSC Bank VTB (Long-term IDR rated 'BBB+' with a
Stable Outlook).

The Negative Outlook on PCG's and VTBG's ratings reflects those
on the sovereign ratings and the potential for Fitch to
downgrade the Country Ceiling further.  In addition, Fitch notes
the heightened risks associated with VTBG given its ultimate
Russian state ownership and the potential either for the bank's
operations to be significantly disrupted and/or JSC Bank VTB's
propensity to support the bank to be weakened in light of the
sharp deterioration in Russo-Georgian relations.

The downgrades of BOG and TBC reflect Fitch's view of the
reduced ability of the Georgian authorities to provide support
to these banks, in case of need, as reflected in the sovereign
rating downgrade.  The Negative Outlook for the banks reflects
the potential for a further deterioration in the authorities'
ability to provide support, as reflected in the Outlook on the
sovereign rating, and also the risk of a marked deterioration in
the operating environment in terms of deposit outflow and/or
weaker asset quality resulting from potential economic
dislocations.

At the same time, Fitch notes that the Georgian Financial
Supervision Agency has stated its readiness to provide prompt
liquidity support to the banking system in case of need and has
suspended commercial bank lending operations for one week.
Fitch also understands that deposit outflow from the banking
sector has generally been moderate and manageable over for the
last few days, and banks are for the most part continuing to
operate as normal.

The revision of the Rating Watch on BTAG reflects the potential
for the Long-term IDR to be either upgraded to the 'B+' Country
Ceiling (upon consolidation of a majority stake in the bank by
Kazakhstan's BTA Bank, rated foreign currency Long-term IDR
'BB+' with a Negative Outlook) or to remain unchanged/be
downgraded in case of a downgrade of the Country Ceiling.

The affirmation of Basisbank reflects the fact that, while the
bank is significantly exposed to potential deposit outflow in
light of its dependence on short-term customer funding, in
Fitch's view, these risks are already sufficiently captured in
the bank's 'CCC' Long-term IDR.

  ProCredit Bank

   -- Long-term foreign currency IDR downgraded to 'B+'
      from 'BB-'

   -- Long-term local currency IDR downgraded to 'BB-' from 'BB'

   -- Outlooks on the Long-term IDRs revised to 'Negative' from
      'Stable'

   -- Support rating downgraded to '4' from '3'

   -- Short-term foreign and local currency IDRs affirmed at 'B'

   -- Individual rating affirmed at 'D'

  JSC VTB

   -- Long-term IDR downgraded to 'B+' from 'BB-'

   -- Outlook on the Long-term IDR revised to 'Negative' from
      'Stable'

   -- Support rating downgraded to '4' from '3'

   -- Short-term foreign currency IDR affirmed at 'B'

   -- Individual rating affirmed at 'D/E'

  Bank of Georgia

   -- Long-term foreign and local currency IDRs downgraded to 'B'
      from 'B+'

   -- Outlooks on the Long-term IDRs revised to 'Negative' from
      'Stable'

   -- Support rating floor downgraded to 'B' from 'B+'

   -- Short-term foreign and local currency IDRs affirmed at 'B'

   -- Support rating affirmed at '4'

   -- Individual rating affirmed at 'D'

  TBC Bank

   -- Long-term IDR downgraded to 'B' from 'B+'

   -- Outlook on the Long-term IDR revised to 'Negative' from
      'Stable'

   -- Support rating floor downgraded to 'B' from 'B+'

   -- Short-term IDR affirmed at 'B'

   -- Support rating affirmed at '4'

   -- Individual rating affirmed at 'D'

  JSC BTA Bank

   -- Long-term IDR remains at 'B'

   -- Rating Watch on the Long-term IDR revised to 'Evolving'
      from 'Positive'

   -- Short-term IDR affirmed at 'B'

   -- Support rating affirmed at '4'

   -- Individual rating affirmed at 'D/E'

  JSC Basisbank

   -- Long-term IDR affirmed at 'CCC'
   -- Outlook on Long-term IDR remains Stable
   -- Short-term IDR affirmed at 'C'
   -- Support rating affirmed at '5'
   -- Support rating floor affirmed at 'No Floor'
   -- Individual rating affirmed at 'D/E'


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


10TACLE STUDIOS: Failed EUR6.2MM Funding Prompts Insolvency
-----------------------------------------------------------
10TACLE STUDIOS AG has declared insolvency after a EUR6.2
million funding failed to materialize, according to various
reports.

Blimey! Games Ltd., the company's UK studio, is not affected by
the insolvency.

"Despite 10T's unfortunate and recently announced insolvency,
Blimey! Games is in a very strong position.  We have recently
signed an unannounced major project for a top tier publisher
which secures our continued growth, and our Ferrari title
remains unaffected.  Work will continue as normal at our
studio," Blimey! Games CEO/Creative Director Ian Bell said.

                   About 10TACLE STUDIOS AG

Listed in the General Standard of the Frankfurt Stock Exchange,
10TACLE STUDIOS AG (WKN: TACL10, ISIN DE000TACL107) --
http://10tacle.com/-- is one of the leading independent
development- and production-companies for high quality computer-
and video games (Games) with future emphasis on the area of
Online-Gaming.  The company produces on international top level
and covers all relevant and growing sectors of the games market.
Currently, over 400 employees work for the company at its
headquarters in Darmstadt and the development sites in Berlin,
Darmstadt, Duisburg, Hanover, Budapest, Charleroi, London,
Singapore and Vienna.


AUTOMOBILCENTER BROCK: Claims Registration Period Ends Aug. 20
--------------------------------------------------------------
Creditors of Automobilcenter Brock & Co. GmbH have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Goetz Lautenbach.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Sept. 10, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Offenbach am Main
          Hall 166N
          First Floor
          Kaiserstrasse 16-18
          63065 Offenbach am Main
          Germany

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

The insolvency manager can be reached at:

          Goetz Lautenbach
          Zeilweg 42, D
          60439 Frankfurt am Main
          Germany
          Tel: 069/963761-130
          Fax: 069/963761-145

The District Court of Offenbach am Main opened bankruptcy
proceedings against Automobilcenter Brock & Co. GmbH on July 9,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

          Automobilcenter Brock & Co. GmbH
          Attn: Fichteneck 18
          63303 Dreieich
          Germany

          Attn: Michael Urban, Manager
          Buchschlager Allee 15
          63303 Dreieich
          Germany


AUTO- UND FAHRRADELEKTRIK: Claims Filing Period Ends August 20
--------------------------------------------------------------
Creditors of AUFA Auto- und Fahrradelektrik GmbH have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Thore Voss.

Creditors and other interested parties are encouraged to attend
the meeting at 1:45 p.m. on Sept. 3, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Meiningen
          Meeting Hall A 0105
          Lindenallee 15
          98617 Meiningen
          Germany

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

The insolvency manager can be reached at:

          Thore Voss
          Untermarkt 23
          99963 Muehlhausen
          Germany

The District Court of Meiningen opened bankruptcy proceedings
against AUFA Auto- und Fahrradelektrik GmbH on June 26, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

          AUFA Auto- und Fahrradelektrik GmbH
          Goldberg 2
          99817 Eisenach
          Germany


B + B CREATIV: Claims Registration Period Ends August 20
--------------------------------------------------------
Creditors of B + B Creativ Gesellschaft fuer Beleuchtungssysteme
und Einrichtungsbedarf mbH have until Aug. 20, 2008, to register
their claims with court-appointed insolvency manager Marc
Herbert.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.m. on Sept. 17, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Saarbruecken
          Meeting Hall 24
          Second Floor
          Vopeliusstrasse 2
          66280 Sulzbach
          Germany

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

The insolvency manager can be reached at:

          Marc Herbert
          Neikesstrasse 3
          66111 Saarbruecken
          Germany
          Tel: 0681 - 954580
          Fax: 0681 - 954 5823

The District Court of Saarbruecken opened bankruptcy proceedings
against B + B Creativ Gesellschaft fuer Beleuchtungssysteme und
Einrichtungsbedarf mbH on June 18, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

          B + B Creativ Gesellschaft fuer Beleuchtungssysteme
          und Einrichtungsbedarf mbH
          Attn: Oliver Dalheimer, Manager
          Merziger Strasse 268
          66763 Dillingen
          Germany


BKT TECHNOLOGIE: Claims Registration Period Ends August 20
----------------------------------------------------------
Creditors of BKT Technologie GmbH (formerly Balcke-Duerr
Technologie GmbH)have until Aug. 20, 2008, to register their
claims with court-appointed insolvency manager Bernd Capellen.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 19, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Duisburg
          Hall C207
          Second Floor
          Kardinal-Galen-Strasse 124-132
          47058 Duisburg
          Germany

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

The insolvency manager can be reached at:

          Bernd Capellen
          Schalbruchstr.33
          42781 Haan
          Germany

The District Court of Duisburg opened bankruptcy proceedings
against  BKT Technologie GmbH on June 25, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

          BKT Technologie GmbH
          Duisburger Str. 375
          46049 Oberhausen
          Germany

          Attn: Bernd Capellen, Manager
          Schalbruchstr.33
          42781 Haan
          Germany


BRANCO BRANDS: Claims Registration Period Ends August 20
--------------------------------------------------------
Creditors of BRANCO Brandschutzkonstruktionen GmbH have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Falk Eppert.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 24, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

          Falk Eppert
          Vietmannsdorfer Str. 23
          17268 Templin
          Germany

The District Court of Frankfurt (Oder) opened bankruptcy
proceedings against BRANCO Brandschutzkonstruktionen GmbH on
July 1, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

          BRANCO Brandschutzkonstruktionen GmbH
          Alte Heerstrasse 36a
          16259 Bad Freienwalde
          Germany


CHIQUITA BRANDS: Earns US$62.1 Million in 2008 Second Quarter
-------------------------------------------------------------
Chiquita Brands International Inc. reported income from
continuing operations of US$59.5 million for the second quarter
ended June 30, 2008, compared to US$5.4 million in the year-ago
period.  Including the results of discontinued operations, the
company reported income of US$62.1 million, compared to US$8.6
million in the year-ago period.

For continuing operations, the company reported net sales of
US$994.6 million, up 6 percent year-over-year.

The 2008 quarter includes other income, net of tax, of
US$6.0 million from the resolution of a claim related to a non-
income tax refund, and the 2007 quarter included a charge of
US$3.0 million related to the settlement of U.S. antitrust
litigation.

"I am very pleased with our strong second quarter results, which
mark our best quarterly performance in three years," said
Fernando Aguirre, chairman and chief executive officer.  "Our
ability to deliver year-on-year improvements, despite
unprecedented cost increases, is a testament to the strength of
our business, the diversity of our product portfolio, and our
strategy to drive profitable growth.

"We are particularly satisfied that our pricing discipline and
focus on profitability has improved the performance and momentum
of our banana segment for the fourth consecutive quarter.  We
are disappointed, however, with the current performance of our
salad operations, and we are focused on executing plans to
improve our salad margins over time."

Mr. Aguirre concluded, "While quarter-to-quarter volatility is
typical due to the seasonality of our industry, we continue to
expect to achieve significantly better operating results for the
full year.  We remain focused on aggressively improving
profitability, and prudently investing in the launch of
innovative products to become the global leader in healthy,
fresh foods."

Quarterly sales rose primarily due to higher banana pricing and
a favorable euro exchange rate, offset by lower banana volumes
principally reflecting industry-wide constraints on volume
availability.

Quarterly operating income improved year-over-year due to higher
banana pricing in each of the company's markets, strengthening
of the euro and savings from the company's business
restructuring.

Higher banana pricing in core European and Trading markets
continued to be attributable to constrained supply during the
quarter as well as the company's strategy to maintain and favor
its premium product quality and price differentiation rather
than market share.

In the North American market, higher banana pricing was
attributable to increases in base contract prices, the company's
fuel-related surcharge and the continuation of a surcharge to
mitigate the higher costs due to constrained industry-wide
volume availability.  The positive banana results were partially
offset by weakness in value-added salads and increased
investment in
innovation.

Operating cash flow was US$121.0 million for the second quarter
of 2008 compared to US$77.0 million for the second quarter of
2007.  The increase resulted primarily from improvements in
operating income.

The company's total debt at June 30, 2008, was US$874.0 million,
up US$29.0 million from a year ago, principally due to the
company's issuance of US$200.0 million of convertible notes in
February 2008.  At June 30, 2008, the company's debt-to-capital
ratio was 45 percent, as compared to the company's long-term
target debt-to-capital ratio of 40 percent.

                       Update on Sale of Atlanta AG

On May 13, 2008, the company entered a definitive agreement to
sell its wholly owned German distribution business, Atlanta AG,
to UNIVEG Fruit and Vegetables BV for approximately US$85.0
million in proceeds, plus working capital and net debt
adjustments.  The sale proceeds will be used primarily for debt
reduction.  The transaction will enable the company to increase
its focus on providing branded, healthy, fresh foods to
consumers worldwide, while ensuring continued reliable, high-
quality ripening and distribution services of Chiquita bananas
in the German, Austrian and Danish markets.  The Atlanta AG sale
is expected to be completed during the third quarter, after the
completion of a normal review by EU competition authorities.

As the company previously disclosed, it determined that Atlanta
AG's commodity distribution business was no longer a strong fit
with Chiquita's long-term strategy to drive profitable growth.
Although Atlanta AG represented US$1.2 billion in revenues from
non-Chiquita products in 2007, its results have not been
significant to Chiquita's annual operating income in recent
periods.  Chiquita anticipates that the sale and related entry
into a long-term banana ripening and distribution services
agreement with UNIVEG will result in a gain as well as a one-
time tax benefit.

                         About Chiquita Brands

Headquartered in Cincinnati, Ohio, Chiquita Brands International
Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer
and distributor of high-quality fresh and value-added food
products.  The company markets its products under the
Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 23,000
people operating in more than 70 countries worldwide.

At March 31, 2008, the company's consolidated balance sheet
showed US$2.80 billion in total assets, US$1.87 billion in total
liabilities, and US$933.0 million in total shareholders' equity.

                          *    *    *

As reported in the Troubled Company Reporter on March 4, 2008,
Moody's Investors Service affirmed Chiquita Brands International
Inc.'s US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5), LGD % to 82% from 89%; and US$225 million 8.875%
senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82%
from 89%.


CUBUS WOHNBAU: Claims Registration Period Ends August 20
--------------------------------------------------------
Creditors of CUBUS Wohnbau GmbH have until Aug. 20, 2008, to
register their claims with court-appointed insolvency manager
Michael Bremen.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Sept. 10, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Duesseldorf
          Meeting Hall A 341
          Fourth Floor
          Muehlenstrasse 34
          40213 Duesseldorf
          Germany

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

The insolvency manager can be reached at:

          Michael Bremen
          Sternstr. 58
          40479 Duesseldorf
          Germany

The District Court of Duesseldorf opened bankruptcy proceedings
against CUBUS Wohnbau GmbH on July 9, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

          CUBUS Wohnbau GmbH
          Oberkasseler Strasse 110
          40545 Duesseldorf
          Germany

          Attn: Stephan Wolfgang Hammer, Manager
          Joachimstrasse 62
          40547 Duesseldorf
          Germany


ECW IMMOBILIEN: Claims Registration Period Ends August 21
---------------------------------------------------------
Creditors of ECW Immobilien GmbH have until Aug. 21, 2008, to
register their claims with court-appointed insolvency manager
Frank Moessle.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 22, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Frankfurt (Main)
          Hall 2
          Building F
          Klingerstrasse 20
          60313 Frankfurt (Main)
          Germany

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

The insolvency manager can be reached at:

          Frank Moessle
          PLUTA Rechtsanwalts GmbH
          Eingang A
          Trakehner Strasse 7-9
          60487 Frankfurt am Main
          Germany
          Tel: 069/85096930
          Fax: 069/850969329
          E-mail: frankfurt@pluta.net
          Web site: http://www.pluta.net

The District Court of Frankfurt am Main opened bankruptcy
proceedings against ECW Immobilien GmbH on June 6, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

          ECW Immobilien GmbH
          Enkheimer Strasse 38
          60385 Frankfurt am Main
          Germany


ELEKTRONIK UND TECHNOLOGIE: Claims Period Ends August 20
--------------------------------------------------------
Creditors of Elektronik und Technologie Rump GmbH have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Dr. Christoph Schulte-Kaubruegger.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 25, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Dortmund
          Hall 3.201
          Gerichtsplatz 22
          44135 Dortmund
          Germany

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

The insolvency manager can be reached at:

          Dr. Christoph Schulte-Kaubruegger
          Koenigswall 21
          44137 Dortmund
          Germany

The District Court of Dortmund opened bankruptcy proceedings
against Elektronik und Technologie Rump GmbH on July 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

          Elektronik und Technologie Rump GmbH
          Altwickeder Hellweg 195
          44319 Dortmund
          Germany

          Attn: Jessica Gerhart, Manager
          Kirchenweg 15
          63840 Hausen
          Germany


GUBA HANDELSGESELLSCHAFT: Claims Registration Ends Aug. 20
----------------------------------------------------------
Creditors of Guba-Handelsgesellschaft-mbH have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Falk Eppert.

Creditors and other interested parties are encouraged to attend
the meeting at 10:05 a.m. on Sept. 24, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

          Falk Eppert
          Vietmannsdorfer Strasse 23
          17268 Templin
          Germany

The District Court of Frankfurt (Oder) opened bankruptcy
proceedings against Guba-Handelsgesellschaft-mbH on July 8,
2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

          Guba-Handelsgesellschaft-mbH
          Nibelungenstr. 7
          16348 Wandlitz
          Germany


HANSEN SECURITY: Claims Registration Period Ends August 21
----------------------------------------------------------
Creditors of Hansen Security GmbH have until Aug. 21, 2008, to
register their claims with court-appointed insolvency manager
Dr. Thomas Troll.

Creditors and other interested parties are encouraged to attend
the meeting at 2:30 p.m. on Sept. 11, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Rottweil
          Room 0.05
          Branch Office
          Koernerstr. 29
          Rottweil
          Germany

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

The insolvency manager can be reached at:

          Dr. Thomas Troll
          Hochstr. 1
          88045 Friedrichshafen
          Germany
          Tel: 07541-289670
          Fax: 07541-289679

The District Court of Rottweil opened bankruptcy proceedings
against Hansen Security GmbH on June 23, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

          Hansen Security GmbH
          Hauptstr. 46
          78576 Emmingen-Liptingen
          Germany


HYTEC NONWOVEN: Claims Registration Period Ends Aug. 20
-------------------------------------------------------
Creditors of Hytec Nonwoven GmbH have until Aug. 20, 2008, to
register their claims with court-appointed insolvency manager
Andreas Kienast.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Sept. 24, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Magdeburg
          Hall 13
          Breiter Weg 203 - 206
          39104 Magdeburg
          Germany

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

The insolvency manager can be reached at:

          Andreas Kienast
          Lennestr. 10
          39112 Magdeburg
          Germany
          Tel: 0391/5973322
          Fax: 0391/5973333

The District Court of Magdeburg opened bankruptcy proceedings
against Hytec Nonwoven GmbH on July 3, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

          Hytec Nonwoven GmbH
          Auf den Steinen 26
          06507 Gernrode
          Germany


KBB-KONSTRUKTIV-BAUTRAGER: Claims Registration Ends August 21
-------------------------------------------------------------
Creditors of KBB-Konstruktiv-Bautrager GmbH have until Aug. 21,
2008, to register their claims with court-appointed insolvency
manager Gerd Mensendiek.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 29, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Paderborn
          Meeting Hall 230a
          Second Floor
          Bogen 2-4
          33098 Paderborn
          Germany

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

The insolvency manager can be reached at:

          Gerd Mensendiek
          Detmolder Strasse 43
          33604 Bielefeld
          Germany
          Tel: 0521966410
          Fax: 05219664190

The District Court of Paderborn opened bankruptcy proceedings
against KBB-Konstruktiv-Bautrager GmbH on July 3, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

          KBB-Konstruktiv-Bautrager GmbH
          Greiteler Weg 84
          33102 Paderborn
          Germany


KTG KUNERSDORF: Claims Registration Period Ends August 20
---------------------------------------------------------
Creditors of KTG Kunersdorf Beteiligungsgesellschaft mbH have
until Aug. 20, 2008, to register their claims with court-
appointed insolvency manager Dr. jur. Rainer Eckert.

Creditors and other interested parties are encouraged to attend
the meeting at 8:15 a.m. on Sept. 24, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

          The District Court of Hannover
          Hall 226
          Second Upper Floor
          Service Bldg.
          Hamburger Allee 26
          30161 Hannover
          Germany

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

The insolvency manager can be reached at:

          Dr. jur. Rainer Eckert
          Arthur-Menge-Ufer 5
          30169 Hannover
          Germany
          Tel: 0511 626287-0
          Fax: 0511 626287-10

The District Court of Hannover opened bankruptcy proceedings
against KTG Kunersdorf Beteiligungsgesellschaft mbH on
July 4, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

          KTG Kunersdorf Beteiligungsgesellschaft mbH
          Fernroder Strasse 9
          30161 Hannover
          Germany

          Attn: Joerg Sturm, Manager
          Hohenzollernstrasse 53
          30161 Hannover
          Germany


MAXIMAL SERVICE: Claims Registration Period Ends August 20
----------------------------------------------------------
Creditors of MSK Maximal-Service-Kurierdienste GmbH have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Dr. Christian Strauss.

The District Court of Bremen will verify the claims set out in
the insolvency manager's report at 9:30 a.m. on Sept. 18, 2008,
at:

          The District Court of Bremen
          Hall 115
          Ostertorstr. 25-31
          28195 Bremen
          Germany

Creditors may constitute a creditors' committee or opt to
appoint a new insolvency manager.

The insolvency manager can be reached at:

          Dr. Christian Strauss
          Friedrich-Missler-Str. 42
          28211 Bremen
          Germany
          Tel: 0421/7926260
          Fax: 0421/7926285
          E-mail: info@kanzlei-dr-strauss.de
          Web site: www.kanzlei-dr-strauss.de

The District Court of Bremen opened bankruptcy proceedings
against MSK Maximal-Service-Kurierdienste GmbH on March 31,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

          MSK Maximal-Service-Kurierdienste GmbH
          Thueringer Str. 10
          28217 Bremen
          Germany


ROCK-IT VERANSTALTUNGS: Creditors' Meeting Slated for Aug. 21
-------------------------------------------------------------
The court-appointed insolvency manager for Rock-it
Veranstaltungsgesellschaft mbH, Udo Feser will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at noon on Aug. 21, 2008.

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

          The District Court of Charlottenburg
          Hall 218
          Second Floor
          Amtsgerichtsplatz 1
          14057 Berlin
          Germany

The Court will also verify the claims set out in the insolvency
manager's report at 11:35 a.m. on Nov. 13, 2008, at the same
venue.

Creditors have until Oct. 2, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

          Udo Feser
          Uhlandstr. 165/166
          10719 Berlin
          Germany

The District Court of Charlottenburg opened bankruptcy
proceedings against Rock-it Veranstaltungsgesellschaft mbH on
July 8, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

          Rock-it Veranstaltungsgesellschaft mbH
          Obentrautstr. 19-21
          10963 Berlin
          Germany


SPECTRUM BRANDS: Posts US$283.9MM Net Loss in Qtr. Ended June 29
----------------------------------------------------------------
Spectrum Brands Inc. disclosed its financial results for its
third fiscal quarter ended June 29, 2008.

The company reported a net loss of US$283.9 million for the
fiscal 2008 third quarter, compared with a net loss of
US$7.5 million in the same period of fiscal 2007.

Results for the fiscal 2008 third quarter include:

    -- Goodwill and trade names impairment charges of
       US$253.7 million, primarily related to the company's Home
       & Garden and Global Pet Supply businesses;

    -- Adjustments to income tax expense of US$19.1 million to
       exclude the effect of the impact of the valuation
       allowance against deferred taxes and other tax related
       items;

    -- Restructuring and related charges of US$14.3 million,
       primarily associated with the company's strategy to exit
       Ningbo Baowang, a battery manufacturing facility in China,
       and company-wide cost reduction initiatives;

    -- Professional fees of US$2.9 million incurred in connection
       with the proposed sale of the company's Global Pet
       Supplies business;

    -- other items netting to a benefit of US$2.8 million

With strong top-line growth in all three business segments, the
company's third quarter net sales of US$729.6 million
represented a 10.5 percent increase over the prior year, after
excluding the Canadian division of the Home & Garden Business,
which the company sold in November 2007.  Favorable foreign
currency exchanges contributed US$29.6 million.

?I'm pleased with our strong sales growth for the quarter, which
I believe reflects the strength of our new product offerings and
marketing programs as well as a consumer shift towards value
brands during this tough economic time,? said Kent Hussey, chief
executive officer of Spectrum Brands.

The company saw strong adjusted EBITDA growth, a non-GAAP
measurement which the company believes is a useful indicator of
the operating health of the business and its trajectory, in both
its Global Batteries & Personal Care and its Global Pet Supplies
segments.  These results were offset, however, by significant
raw material input cost pressures in the company's Home & Garden
Business segment.  Consolidated adjusted EBITDA was
US$81.2 million as compared with US$87.7 million in the third
quarter of the prior year, a 7.4 percent decline driven by the
unprecedented cost increases in the company's fertilizer
operations within its Home & Garden Business segment.

Gross profit and gross margin for the quarter were
US$261.4 million and 35.8 percent, respectively, versus US$253.9
million and 38.5 percent for the same period last year.  Within
cost of sales, the company incurred restructuring and related
charges of approximately US$13.9 million, negatively impacting
this quarter's margin by 190 basis points, primarily related to
the company's strategy to exit the Ningbo battery manufacturing
facility in China.  During the third quarter of fiscal 2007,
cost of sales included US$4.1 million of restructuring and
related charges.  The remainder of the variance was primarily
driven by extremely volatile commodity costs.

The company generated a third quarter operating loss from
continuing operations of US$259.8 million versus operating
income of US$45.6 million in the same period last year.  The
primary reasons for the decline were US$303.3 million in
goodwill and trade names impairments.

Interest expense was US$57.1 million compared to US$59.4 million
in the same period last year.

                        About Spectrum Brands

Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE:
SPC) -- http://www.spectrumbrands.com/-- is a supplier of
consumer batteries, lawn and garden care products, specialty pet
supplies, shaving and grooming products, household insect
control products, personal care products and portable lighting.

The company's European unit, Rayovac Europe GmbH, is
headquartered in Sulzbach, Germany.  Outside the United States,
the company also has manufacturing facilities in Brazil,
Columbia and China.

At March 30, 2008, the company's consolidated balance sheet
showed US$3.31 billion in total assets and US$3.54 million in
total liabilities, resulting in a US$232.9 million total
stockholders' deficit.

                            *     *     *

As reported in the Troubled Company Reporter-Europe on
July 30, 2008, Moody's Investors Service affirmed Spectrum
Brands Inc.'s  Corporate family rating at Caa1 and Probability-
of-default rating at Caa2.


VIKTORIA CHEM: Creditors' Meeting Slated for August 20
------------------------------------------------------
The court-appointed insolvency manager for Viktoria chem.
Reinigung und Wascherei GmbH, Stephan Koenicke will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 9:00 a.m. on Aug. 20, 2008.

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

          The District Court of Saarbruecken
          Meeting Hall 13
          First Floor
          Vopeliusstrasse 2
          66280 Sulzbach
          Germany

The Court will also verify the claims set out in the insolvency
manager's report at 9:00 a.m. on Sept. 24, 2008, at the same
venue.

Creditors have until Aug. 27, 2008, to register their claims
with the court-appointed insolvency manager.

The insolvency manager can be reached at:

          Stephan Koenicke
          Beethovenstrasse 16
          66606 St. Wendel
          Germany
          Tel: 06851/939 8770
          Fax: 06851/939 8790

The District Court of Saarbruecken opened bankruptcy proceedings
against Viktoria chem. Reinigung und Wascherei GmbH on July 18,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

          Viktoria chem. Reinigung und Wascherei GmbH
          Attn: Sven Moeller, Manager
          Hartmanns Au 5
          66119 Saarbruecken
          Germany


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


AES CORP: Second Quarter Net Income Rose to US$903 Mil. in 2008
---------------------------------------------------------------
The AES Corporation reported US$903 million of net income on
US$4.1 billion of net revenues for the second quarter of 2008,
compared to US$254 million on US$3.3 billion for the same
quarter of 2007.

"Our year-to-date results are ahead of expectations and we are
increasing our full year earnings guidance accordingly.
Guidance for free cash flow will come in at the lower end of our
range due to higher fuel and energy costs, which are mostly
recoverable," said Paul Hanrahan, AES President and Chief
Executive Officer.  "We continue to make good progress on the
growth front.  This past quarter we achieved simple cycle
operation on our 370 MW [megawatt] plant in Jordan and began
construction on four power plants with a total capacity of 953
MW. We also acquired a stake in a 49.5 MW wind project in China.
And our Climate Solutions group achieved a notable milestone by
registering its first methane recovery project in Malaysia with
the UN, a major step in creating Certified Emission Reductions."

                    Second Quarter 2008 in Review

During the second quarter 2008, the Company benefited from
higher demand in Latin America, as well as higher pricing in
Europe and Latin American generation businesses, offset in part
by planned outages at North American generation businesses, the
July 2007 tariff reset at Eletropaulo, one of our utilities in
Brazil, and increased corporate overhead costs related primarily
to SAP implementation worldwide.

                              Cash Flow

Second quarter 2008 net cash flow from operating activities was
US$320 million as compared to US$514 million in second quarter
2007.  Excluding an US$18 million contribution from EDC, a
business sold in May 2007 but which is included in the
consolidated statement of cash flows for second quarter 2007,
net cash from operating activities would have decreased by
approximately US$176 million.

The period over period change in cash flow from operating
activities in second quarter 2008 primarily reflects planned
outages at its North America generation businesses, previously
announced tariff resets and an increase in regulatory assets
primarily comprised of recoverable purchased energy costs at its
Latin America utilities, higher fuel costs in Asia, and
additional interest associated with higher average Parent debt
balances, offset in part by improved net working capital as a
result of improved margin performance at its Latin America
generation businesses.

Second quarter 2008 free cash flow (a non-GAAP financial
measure) was US$135 million as compared to US$207 million in
second quarter 2007.  Excluding any contribution from EDC, free
cash flow (a non-GAAP financial measure) would have decreased by
approximately US$67 million.

Free cash flow in second quarter 2008 reflects the decrease in
cash flow from operating activities offset in part by a decrease
in maintenance capital expenditures.

                            2008 Outlook

On the basis of strong performance in the first half of the
year, combined with a positive outlook regarding the next two
quarters, the company increased guidance for full-year 2008
adjusted earnings per diluted share by US$0.02 to US$1.16.

The company also updated its full-year 2008 cash flow guidance,
reflecting its year-to-date performance and outlook for the
remainder of the year.  The revised 2008 estimates for cash flow
from operating activities and free cash flow (a non-GAAP
financial measure) are US$2.2 billion and US$1.4 billion,
respectively.  This compares to the previous guidance issued in
March 2008 of US$2.3 to 2.4 billion for cash flow from operating
activities and US$1.4 to 1.6 billion for free cash flow (a non-
GAAP financial measure).

                     Stock Buyback Authorization

AES's Board of Directors has approved a share repurchase plan
for up to US$400 million of its outstanding common stock.  The
Board authorization permits the Company to effect the
repurchases from time to time for the next six months through a
variety of methods, including open market repurchases and
privately negotiated transactions.  There can be no assurance as
to the amount, timing or prices of repurchases, which may
vary based on market conditions and other factors.  The stock
repurchase program may be modified, extended or terminated by
the Board of Directors at any time.

                              About AES

The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a
power company with operations in South America, Europe, Africa,
Asia, and the Caribbean.  The Company generates 44,000 megawatts
of electricity through 124 power facilities, and delivers
electricity through 15 distribution companies.

AES has been in Eastern Europe for more than ten years since it
acquired three power plants in Hungary in 1996.  Currently, 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% of the nation's
total renewable generation in 2004. The company has Latin
America operations in Argentina, Brazil, Chile, Dominican
Republic, El Salvador, and Panama.

AES's business group in Asia & Middle East is comprised of
electric utilities and generation plants in China, India,
Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka.  Fuels include
coal, diesel, hydro, gas and oil. AES has been in the region
since 1994, when it acquired the Cili generation plant in China.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 15, 2008, Moody's Investors Service assigned a B1 rating to
The AES Corporation's proposed issuance of US$600 million senior
unsecured notes due 2020.  In addition, Moody's has affirmed the
ratings of AES, including the company's Corporate Family Rating
at B1, its Probability of Default Rating at B1, its senior
secured credit facilities at Ba1, its second priority senior
secured notes at Ba3, its senior unsecured notes at B1 and its
trust preferred securities at B3.  Moody's said the rating
outlook for AES is stable.

The company also carries Fitch Ratings' 'BB/RR1' rating
on US$500 million issue of senior unsecured notes due 2017.


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


BARRAMUNDI CDO: Fitch Junks Ratings on Four Classes of Notes
------------------------------------------------------------
Fitch downgraded and removed from Rating Watch Negative six
classes of notes issued by Barramundi CDO I Ltd.  These rating
actions are effective immediately:

   -- US$469,944,289 class A-1 notes to 'CCC' from 'BBB+';
   -- US$56,000,000 class A-2 notes to 'CC' from 'BBB';
   -- US$76,000,000 class B notes to 'CC' from 'BB+';
   -- US$48,000,000 class C notes to 'C' from 'B+';
   -- US$38,400,000 class D notes to 'C' from 'CCC';
   -- US$19,200,000 class E notes to 'C' from 'CC'.

Fitch's rating actions reflect the significant collateral
deterioration within the portfolio, specifically in subprime
residential mortgage backed securities.

Barramundi is a hybrid structured finance collateralized debt
obligation that closed on Dec. 12, 2006 and is managed by C-BASS
Investment Management LLC.  Presently 78.1% of the portfolio is
comprised of 2005, 2006 and 2007 vintage U.S. subprime RMBS,
16.0% pre-2005 vintage subprime RMBS, 2.2% 2007 vintage U.S. SF
CDOs, 0.5% U.S.  Non-SF CDOs, 2.1% asset backed securities, 0.7%
commercial mortgage backed securities and 0.4% manufactured
housing.

Since Nov. 21, 2007, approximately 74.9% of the portfolio has
been downgraded with 4.5% of the portfolio currently on Rating
Watch Negative. 78.3% of the portfolio is now rated below
investment grade, with 50% of the portfolio rated 'CCC+' and
below.  Overall, 84.8% of the assets in the portfolio now carry
a rating below the rating assumed in Fitch's November 2007
review.

The collateral deterioration has caused each of the
overcollateralization ratios to fall below 100% and fail their
respective triggers.  As of the trustee report dated June 27,
2008, the class A/B OC ratio was 92.8%, the class C OC ratio was
85.7% and the class D OC ratio was 80.7%.  As a result of the
A/B OC test failure, interest proceeds remaining after paying
class B interest are being diverted to the synthetic reserve
account to reduce the TRS notional amount and will continue
until the OC test is cured.  The class C, D and E notes are
deferring interest and Fitch does not expect these notes to
receive any interest or principal payments going forward.  The
downgrades to the rated notes reflect Fitch's updated view of
the default risk associated with each of the notes.

The ratings on the class A-1, A-2 and B notes address the
likelihood that investors will receive full and timely payments
of interest, as per the governing documents, as well as the
stated balance of principal by the maturity date.  The ratings
on the class C, D and E notes address the likelihood that
investors will receive ultimate and compensating interest
payments, as per the governing documents, as well as the stated
balance of principal by the maturity date.


BIFROST INVESTMENTS 16: Fitch Cuts Rating on EUR65MM Swaps to B
---------------------------------------------------------------
Fitch Ratings has downgraded seven tranches of Bifrost
Investments Limited-Series 16's unfunded mezzanine swaps and
removed them from Rating Watch Negative.  In addition, one
remaining tranche has been affirmed.

The rating actions reflect Fitch's view on the credit risk of
the rated tranches following the release of its new Corporate
CDO rating Criteria.

   -- EUR160 million Class 7A Series 16 due August 2010: affirmed
      at 'AAA'

   -- EUR125 million Class 7B Series 16 due August 2010:
      downgraded to 'AA' from 'AAA'; RWN removed

   -- EUR67.5 million Class 7C Series 16 due August 2010:
      downgraded to 'BBB' from 'AA+'; RWN removed

   -- EUR55 million Class 7D Series 16 due August 2010:
      downgraded to 'BB' from 'A'; RWN removed

   -- EUR195 million Class 10A Series 16 due August 2013:
      downgraded to 'AA' from 'AAA'; RWN removed

   -- EUR135 million Class 10B Series 16 due August 2013:
      downgraded to 'A' from 'AAA'; RWN removed

   -- EUR80 million Class 10C Series 16 due August 2013:
      downgraded to 'BB' from 'AA'; RWN removed

   -- EUR65 million Class 10D Series 16 due August 2013:
      downgraded to 'B' from 'BBB+'; RWN removed

Key drivers of this transaction's credit risk include an
increase of the portfolio's credit risk, with 17% of the
portfolio now rated sub-investment grade, compared to 8% at the
previous rating action in February 2007.  In addition, portfolio
migration risk has increased, with 6% of the portfolio on RWN
and 14% on Negative Outlook.  Fitch also notes the industry
concentration of 37% in the three largest sectors, made up of
23% in banking and finance, 7% in telecommunications and 7% in
supermarkets and drugstores.

Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels below
are not sufficient to justify the previous ratings of the
tranches listed below.

   -- Class 7B Series 16: 6.47%
   -- Class 7C Series 16: 5.12%
   -- Class 7D Series 16: 4.02%
   -- Class 10A Series 16: 10.15%
   -- Class 10B Series 16: 7.45%
   -- Class 10C Series 16: 5.85%
   -- Class 10D Series 16: 4.55%

For the affirmed tranche, current credit enhancement levels are
deemed to be sufficient to justify their current ratings.

At closing, Bifrost, a special purpose vehicle incorporated
under the laws of Ireland, entered into 12 mezzanine credit
default swaps with BNP Paribas (rated 'AA'/'F1+'/Outlook
Stable), under which it provides notional protection on a static
reference portfolio of 100 corporate entities with a total
notional value of EUR5 billion.  The mezzanine swaps for each
series relate to the same reference portfolio of 100 corporate
entities, although the swaps have different loss thresholds and
maturity dates.

Fitch released its updated criteria on 30 April 2008 for
Corporate CDOs and, at that time, noted it would be reviewing
its ratings accordingly to establish consistency for existing
and new transactions.  As part of this review, Fitch makes
standard adjustments for any names on RWN or Outlook Negative,
reducing such ratings for default analysis purposes by two
notches and one notch, respectively.  Fitch has previously noted
that its review will be focused first on ratings most exposed to
risks it has highlighted in its updated criteria.  As such, the
transaction was placed on RWN on 19 May 2008.  As previously
indicated, resolution of the Rating Watch status depends on any
plans managers/arrangers may choose to modify either the
structure or the portfolio.  In this case, the arranger has
confirmed that it does not intend to make any modifications.


BIFROST INVESTMENTS 17: Fitch Chips EUR63MM Swaps Rating to 'BB'
----------------------------------------------------------------
Fitch Ratings has downgraded six tranches of Bifrost Investments
Limited-Series 17's unfunded mezzanine swaps and removed them
from Rating Watch Negative.  In addition, Fitch affirmed the
remaining two tranches, as listed below.

The rating actions reflect Fitch's view on the credit risk of
the rated tranches following the release of its new Corporate
CDO rating criteria.

   -- EUR160 million Class 7A Series 17 due August 2010: affirmed
      at 'AAA'

   -- EUR125 million Class 7B Series 17 due August 2010:
      downgraded to 'AA' from 'AAA'; RWN removed

   -- EUR67.5 million Class 7C Series 17 due August 2010:
      downgraded to 'A' from 'AAA'; RWN removed

   -- EUR50 million Class 7D Series 17 due August 2010:
      downgraded to 'BB' from 'A+'; RWN removed

   -- EUR190 million Class 10A Series 17 due August 2013:
      affirmed at 'AAA'

   -- EUR150 million Class 10B Series 17 due August 2013:
      downgraded to 'A' from 'AAA'; RWN removed

   -- EUR80 million Class 10C Series 17 due August 2013:
      downgraded to 'BBB' from 'AA'; RWN removed

   -- EUR65 million Class 10D Series 17 due August 2013:
      downgraded to 'BB' from 'BBB+'; RWN removed

Key drivers of this transaction's credit risk include an
increase of the portfolio's credit risk, with 14% of the
portfolio now rated sub-investment grade, compared to 7% at the
previous rating action in February 2007.  In addition, portfolio
migration risk has increased, with 11% of the portfolio on RWN
and 10% on Negative Outlook.  Fitch also notes the industry
concentration of 31% in the three largest sectors, made up of
11% in banking and finance, 10% in energy and 10% in
telecommunications.

Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels below
are not sufficient to justify the previous ratings of the
tranches.

   -- Class 7B Series 17: 6.33%
   -- Class 7C Series 17: 4.98%
   -- Class 7D Series 17: 3.98%
   -- Class 10B Series 17: 7.3%
   -- Class 10C Series 17: 5.7%
   -- Class 10D Series 17: 4.4%

For the affirmed tranches, current credit enhancement levels are
deemed to be sufficient to justify their current ratings.

At closing, Bifrost, a special purpose vehicle incorporated
under the laws of Ireland, entered into 12 mezzanine credit
default swaps with BNP Paribas (rated 'AA'/'F1+'/Outlook
Stable), under which it provides notional protection on a static
reference portfolio of 100 corporate entities with a total
notional value of EUR5 billion.  The mezzanine swaps for each
series relate to the same reference portfolio of corporate
entities, although the swaps have different loss thresholds and
maturity dates.

Fitch released its updated criteria on 30 April 2008 for
Corporate CDOs and, at that time, noted it would be reviewing
its ratings accordingly to establish consistency for existing
and new transactions.  As part of this review, Fitch makes
standard adjustments for any names on RWN or Outlook Negative,
reducing such ratings for default analysis purposes by two
notches and one notch, respectively.  Fitch has previously noted
that its review will be focused first on ratings most exposed to
risks it has highlighted in its updated criteria.  As such, the
transaction was placed on RWN on 22 May 2008.

As previously indicated, resolution of the Rating Watch status
depends on any plans managers/arrangers may choose to modify
either the structure or the portfolio.  In this case, the
arranger has confirmed that it does not intend to make any
modifications.


IRVINGTON SCDO: Moody's Chips Two Notes Ratings to B3 from Baa3
---------------------------------------------------------------
Moody's Investors Service has downgraded the ratings on the
notes issued by Irvington SCDO 2004-1 Ltd.:

Class Description: Class A-3L Notes Due March 11, 2010

   -- Prior Rating: A2, on watch for possible downgrade
   -- Current Rating: Ba2

Class Description: Class A-3L-1 Notes Due March 11, 2010

   -- Prior Rating: A2, on watch for possible downgrade
   -- Current Rating: Ba2

Class Description: Class B-1F Notes Due March 11, 2010

   -- Prior Rating: Baa3, on watch for possible downgrade
   -- Current Rating: B3

Class Description: Class B-1L-1 Notes Due March 11, 2010

   -- Prior Rating: Baa3, on watch for possible downgrade
   -- Current Rating: B3

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's
underlying collateral pool, which consists primarily of
corporate securities.


MULBERRY STREET: Fitch Downgrades Ratings on Three Note Classes
---------------------------------------------------------------
Fitch downgraded and removed from Rating Watch Negative three
classes of notes issued by Mulberry Street CDO Ltd./Corp.  These
rating actions are effective immediately:

   -- US$32,141,153 class A-1B notes to 'CCC' from 'B';
   -- US$52,500,000 class A-2 notes to 'CC' from 'CCC';
   -- US$31,192,169 class B note to 'C' from 'CC';
   -- US$5,596,820 class C notes remain at 'C'.

The downgrades are a result of collateral deterioration within
the portfolio, specifically in subprime residential mortgage-
backed securities, Alternative-A RMBS, and structured finance
collateralized debt obligations with underlying exposure to
subprime RMBS.

Mulberry Street is a cash flow SF CDO that closed on
Dec. 18, 2002 and is managed by Clinton Group, Inc.  Presently
23.4% of the portfolio is comprised of 2005, 2006 and 2007
vintage U.S. subprime RMBS, 5.0% consists of 2005 through 2007
vintage U.S. SF CDOs and 5.8% is comprised of 2005 through 2007
vintage U.S. Alt-A RMBS.

Since Fitch's last review of Mulberry Street on Nov. 21, 2007,
approximately 35.6% of the portfolio has been downgraded and
13.0% of the portfolio currently on Rating Watch Negative.
40.8% of the portfolio is now rated below investment grade, with
28.6% being rated 'CCC+' and below.  The negative credit
migration experienced since the last review has resulted in the
weighted average rating factor deteriorating to 25.7 as of the
June 5, 2008 trustee report, from 13.5, breaching its covenant
of 17.0.

The collateral deterioration has caused the A-1
overcollateralization ratio to decline to 104.7%, as of the
June 5, 2008 trustee report, relative to a trigger of 118%,
causing interest proceeds to be diverted to redeem the class A-
1A and A-1B notes pro rata after paying class A-2 current
interest.

Furthermore, an event of default will be deemed to have occurred
if the A-1 OC ratio falls below 102%.  Upon the occurrence of an
event of default, and subject to the approval of the majority of
the class A-1 note holders, all principal and interest proceeds
will be redirected to repay the A-1A and A-1B notes on a pro
rata basis, after paying class A-1A and A-1B current interest.

The rating of the A-1A notes was withdrawn on June 26, 2008
after Fitch withdrew its rating of MBIA Inc.  The 'CCC' and 'CC'
ratings assigned to the class A-1B and A-2 notes, respectively,
reflect the increased likelihood of an event of default
occurring, based on the current A-1 OC ratio, and the expected
principal and interest payments to be received thereafter.
Since June 2008 and December 2007, payment of interest to the
class B and C notes, respectively, has been made in kind by
writing up the principal balance of each class by the amount of
interest owed.  Fitch does not currently expect the class B and
C notes to receive any payments going forward, irrespective of
the occurrence of an event of default.

The ratings on the class A-1B and A-2 notes address the timely
receipt of scheduled interest payments and the ultimate receipt
of principal as per the transaction's governing documents.  The
ratings on the class B and C notes address the ultimate receipt
of interest payments and ultimate receipt of principal as per
the transaction's governing documents.


NOVASTAR ABS: Fitch Cuts BB Rating on US$238.7MM Notes to CCC
-------------------------------------------------------------
Fitch Ratings downgraded and removed from Rating Watch Negative
five classes of notes issued by NovaStar ABS CDO I Ltd.  These
rating actions are effective immediately:

   -- US$238,719,597 class A-1 to 'CCC' from 'BB';
   -- US$34,900,000 class A-2 to 'C' from 'B+';
   -- US$28,500,000 class B to 'C' from 'B';
   -- US$25,179,706 class C to 'C' from 'CCC';
   -- US$16,343,103 class D to 'C' from 'CC'.

Fitch's rating actions reflect the significant collateral
deterioration within the portfolio specifically in subprime
residential mortgage backed securities.

NovaStar is a cash flow structured finance collateralized debt
obligation that closed on Feb. 26, 2007 and is managed by
NovaStar Asset Management Company.  Presently 95.7% of the
portfolio is comprised of 2005, 2006 and 2007 vintage U.S.
subprime RMBS and 4.3% prime RMBS.

Since Nov. 21, 2007, approximately 86.4% of the portfolio has
been downgraded with 3.0% of the portfolio currently on Rating
Watch Negative.  Of the portfolio, 97% is now rated below
investment grade, with 95.8% of the portfolio rated 'CCC' and
below.  Overall, 90.3% of the assets in the portfolio now carry
a rating below the rating assumed in Fitch's November 2007
review.

The collateral deterioration has caused each of the
overcollateralization tests to fall below 100% and fail their
respective triggers.

As of the trustee report dated June 30, 2008, the class A/B OC
ratio was 45.2%, the class C OC ratio was 41.7% and the class D
OC ratio was 39.7%.  The class A/B OC ratio fell below 100% for
the first time in February 2008 which caused an Event of Default
to occur.  As a result of the Event of Default, the transaction
accelerated thereby making all distributions of principal and
interest to only the class A-1 until paid in full, which led to
a default in the payment of interest to the timely classes A-2
and B.  Payment of interest to the class C and D notes has been
made in kind by writing up the principal balance of each class
by the amount of interest owed.  Fitch expects classes A-2, B, C
and D notes to receive no further interest or principal
distributions in the future.

Also, although it is likely the class A-1 notes will receive
interest, Fitch does not expect class A-1 to receive its full
principal.  The downgrades to the rated notes reflect Fitch's
updated view of the default risk associated with each of the
notes.

The ratings on the class A-1, A-2 and B notes address the timely
receipt of scheduled interest payments and the ultimate receipt
of principal as per the transaction's governing documents.  The
ratings on the class C and D notes address the ultimate receipt
of interest payments and ultimate receipt of principal as per
the transaction's governing documents.  The ratings are based
upon the capital structure of the transaction, the quality of
the collateral, and the protections incorporated within the
structure.


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


BERRY PLASTICS: Posts US$11.2 Million Net Loss in Q2 2008
-------------------------------------------- ------------
Berry Plastcis Corp. reported a net loss of US$11.2 million for
the second quarter ended June 28, 2008, compared to a net loss
of US$46 million for the same period ended June 30, 2007.

Net sales increased 16% to US$939.9 million for the current
quarter from US$807.3 million for the prior quarter.  This
US$132.6 million increase includes acquisition volume growth of
10%.

Net sales in the rigid open top business increased from
US$251.4 million in the prior quarter to US$284.6 million in the
current quarter.  Base volume growth in the rigid open top
business, excluding net selling price increases, was 4%, driven
primarily by growth in the company's various container product
lines and thermoformed drink cups.

Net sales in the rigid closed top business increased from
US$152.0 million in the prior quarter to US$247.5 million in the
current quarter primarily as a result of acquisition volume
growth attributed to Captive and MAC totaling US$84.6 million
for the current quarter.

The flexible films business net sales increased from
US$264.2 million in the prior quarter to US$278.0 million in the
current quarter.  Base volume declined, excluding net selling
price increases, by 4%, primarily due to the the company's
decision to discontinue historically lower margin business.

Net sales in the tapes/coatings business decreased from
US$139.7 million in the prior quarter to US$129.8 million in the
current quarter primarily driven by softness in the new home
construction and automotive markets partially offset by strong
volume growth in the corrosion protection business.

Gross profit decreased slightly to US$139.1 million (15% of net
sales) for the current quarter from US$139.4 million (17% of net
sales) for the prior quarter.  This decrease is primarily
attributed to the timing lag of passing through increased raw
material costs to customers partially offset by additional sales
volume and productivity improvements in the flexible films and
tapes/coatings segments as a result of realizing synergies from
the Berry Covalence merger.

Selling, general and administrative expenses decreased by
US$3.1 million to US$85.5 million for the current quarter from
US$88.6 million for the prior quarter primarily the result of an
US$8.8 million decrease in stock compensation expense in the
current quarter over the prior quarter and the realization of
synergies from the Berry Covalence merger partially offset by a
US$5.1 million increase in amortization of intangible assets and
increased expenses as a result of organic and acquisition
growth.

Restructuring and impairment charges were US$3.4 million in the
current quarter due to the continued execution of the shut down
of several facilities in the flexible films, closed top and
tapes/coatings segments.  Other expenses decreased from
US$17.0 million in the prior quarter to US$3.6 million for the
current quarter primarily as a result of a decrease in
transaction and integration costs associated with the Berry
Covalence merger.

Net interest expense increased US$4.4 million to US$64.2 million
for the current quarter from US$59.8 million in the prior
quarter primarily as a result of increased borrowings to finance
the Captive acquisition.

For the current quarter, the company recorded an income tax
benefit of US$6.4 million or an effective tax rate of 36.4%,
which is a change of US$21.5 million from the income tax benefit
of US$27.9 million or an effective tax rate of 37.8% in the
prior quarter.  This decrease in the income tax benefit relates
to a decrease in the loss before income taxes in the current
quarter versus the prior quarter and a decline in the effective
tax rate.

At June 28, 2008, the company's cash balance was
US$19.1 million, and the company had unused borrowing capacity
of US$374.8 million under its US$400.0 million revolving line of
credit.

                          Balance Sheet

At June 28, 2008, the company's consolidated balance sheet
showed US$4.53 billion in total assets, US$4.14 billion in total
liabilities, and US$390.2 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 28,2008, are available for
free at http://researcharchives.com/t/s?3090

                       About Berry Plastics

Headquartered in Evansville, Ind., Berry Plastics Corporation
-- http://www.berryplastics.com/-- is a manufacturer and
marketer of plastic packaging products.  Berry Plastics products
include open-top and closed top packaging, polyethylene-based
plastic films, industrial tapes, medical specialties, packaging,
heat-shrinkable coatings and specialty laminates.   The company
has operations in Italy.

                                *      *      *

As reported in the Troubled Company Reporter on April 16, 2008,
Moody's Investors Service affirmed its Caa1 (LGD 4, 63%) rating
on each of the company's US$225.0 million senior secured second
lien FRN due 2014 and US$525.0 million senior secured lien notes
due 2014, and its Caa2 (LGD 5, 85%) rating on the company's
US$265.0 million senior subordinated notes due 2016.


BLOCKBUSTER INC: Incurs US$41.9 Million Net Loss in 2008 2nd Qtr
----------------------------------------------------------------
Blockbuster Inc. disclosed Thursday its financial results for
the second quarter ended July 6, 2008.

Total revenues for the second quarter of 2008 increased 3.3%, or
US$41.3 million, to US$1.30 billion, as compared to the second
quarter of 2007.  Net loss for the second quarter of 2008 was
US$41.9 million, as compared with a net loss of US$31.4 million,
for the second quarter of 2007, which included an US$81.3
million gain on asset sale.

Net income improved US$70.8 million year-over-year, excluding
the prior year gain on asset sale.  Adjusted net loss for the
second quarter of 2008 totaled US$36.1 million, a significant
improvement as compared with adjusted net loss of US$96.5
million for the second quarter of 2007.

Adjusted EBITDA for the second quarter of 2008 improved
US$58.2 million to US$28.2 million, reflecting the positive
impact of the company's strategic initiatives, including the
increased availability of top new movies, improved store
merchandising, more effective pricing and a lower cost
structure.

"Our second quarter results mark Blockbuster's fourth
consecutive quarter of improved same-store sales," said Jim
Keyes, Blockbuster chairman and chief executive officer.  "We
are especially pleased with the 14.2 percent increase in
domestic same-store revenues, which includes a 6.5 percent
increase in rental revenues.  Also, we are launching our movie
downloading service, Movielink(R), on blockbuster.com, giving
customers the ability to rent, buy and download thousands of
movies online.  Our achievement of these strategic milestones
underscores that our efforts to transform Blockbuster into a
multi-channel provider of entertainment are working and are
contributing to our improved financial results."

                  Second Quarter Financial Results

Total revenues for the second quarter of 2008 increased 3.3%, or
US$41.3 million, to US$1.30 billion, as compared to the second
quarter of last year primarily reflecting a 54.4% growth in
domestic merchandise revenues driven by a significant increase
in game sales.

Domestic same-store revenues increased 14.2% as compared to the
second quarter of 2007, driven by a 6.5% growth in same-store
rental revenues and a 69.2% increase in same-store merchandise
sales demonstrating the underlying strength of company's
emerging retail business.  International same-store revenues
remained essentially flat as compared to the same period last
year, reflecting a 6.0% increase in same-store merchandise
sales, offset by a 4.3% decline in same-store rental revenues.
Worldwide same-store revenues grew 9.0% from the same period
last year.

Gross profit for the second quarter of 2008 increased
US$20.4 million to US$655.2 million as compared to the second
quarter of 2007 and gross margin remained essentially flat at
50.2%.  General and administrative expenses for the period
declined US$17.3 million as a result of a smaller company-
operated store base and the company's ongoing cost reduction
actions.  Advertising expense for the second quarter of 2008
totaled US$31.9 million as compared to US$54.8 million for the
second quarter of 2007.

Cash flow used for operating activities increased US$23.1
million to US$63.4 million for the second quarter of 2008 from
cash used of US$40.3 million for the second quarter of 2007.
Free cash flow  decreased US$24.3 million to a negative US$84.1
million for the second quarter of 2008 from a negative US$59.8
million for the second quarter of 2007.  Both changes were
primarily the result of changes in working capital pursuant to
the company's investment in additional game hardware, software
and accessories for all domestic stores during the second
quarter of 2008.

A full-text copy of the company's press release containing
additional financial and operational information, including the
calculation of adjusted results and the reconciliations of other
non-GAAP financial measures, is available for free at:

                http://researcharchives.com/t/s?308d

                       About Blockbuster Inc.

Blockbuster Inc. -- http://www.blockbuster.com/-- (NYSE: BBI,
BBI.B) is a global provider of in-home movie and game
entertainment, with over 7,800 stores throughout the Americas,
Europe, Asia and Australia.  The company maintains operations in
Brazil, Mexico, Denmark, Italy, Taiwan, Thailand, Australia,
among others.

At April 6, 2008, the company's consolidated balance sheet
showed US$2.69 billion in total assets, US$1.98 billion in total
liabilities, and US$706.5 million in total stockholders' equity.

                           *     *     *

In December 2007, Blockbuster Inc. carries Fitch Ratings' 'CCC'
long-term Issuer Default Rating.  The company's senior
subordinated notes is rated 'CC/RR6' by Fitch.  The rating
outlook is stable.


MONEYGRAM INT'L: June 30 Balance Sheet Upside-Down by US$885.7MM
----------------------------------------------------------------
MoneyGram International Inc. disclosed Thursday its preliminary
financial results for the second quarter ended June 30, 2008.
The second quarter 2008 financial results are preliminary as the
company is finalizing the market valuation of embedded
derivatives within the Series B Preferred Stock agreements.

MoneyGram International Inc.'s consolidated balance sheet at
June 30, 2008, showed US$7.78 billion in total assets,
US$7.93 billion in total liabilities, and US$738.5 million in
total mezzanine equity, resulting in a US$885.7 million
shareholders' deficit.

Following are significant items affecting operating results
during the second quarter of 2008:

    -- Fee and other revenue increased 21 percent to
       US$281.9 million in the second quarter of 2008 from
       US$232.5 million in the second quarter of 2007, driven by
       continued growth in money transfer transaction (including
       bill payment) volume.

    -- Global Funds Transfer segment fee and other revenue grew
       22 percent in the second quarter of 2008, driven by
       23 percent growth in money transfer transaction revenue
       and 19 percent growth in money transfer transaction
       (including bill payment) volume.

    -- The company recorded US$30.3 million of net securities
       losses including market-to-market losses in auction rate
       securities and other-than-temporary impairments on other
       asset-backed securities.  The recapitalization on
       March 25, 2008, included funds to cover these losses.

    -- Investment commissions expense reflects a gain of
       US$29.3 million from increases in the fair value of swaps.
       All swaps were terminated in the second quarter.

    -- EBITDA and Adjusted EBITDA (EBITDA adjusted for net
       securities losses, swap termination, and severance costs)
       were US$39.5 million and US$58.2 million in the second
       quarter of 2008 compared to US$68.8 million and
       US$69.2 million in the second quarter of 2007.

    -- Interest expense increased to US$24.0 million in the
       second quarter of 2008 from US$2.0 million in 2007 due to
       higher outstanding debt as a result of the
       recapitalization completed in March 2008, partially offset
       by a US$4.2 million gain from increases in the fair value
       of swaps.

    -- Expenses include US$17.7 million of executive severance
       and related costs.

    -- Net loss of US$16.0 million as a result of the
       aforementioned items.

Anthony Ryan, executive vice president and chief operating
officer said, "I want to thank our employees for their efforts
and contributions during the second quarter as we continued to
execute our purpose; to help people and businesses by providing
affordable, reliable, and convenient payment services.  We were
able to complete another strong quarter in the money transfer
business complemented by exceptional growth in our agent network
further demonstrating the global growth opportunity ahead of
us."

Mr. Ryan continued, "While we reported a net loss, we measure
our financial performance based on certain cash flow metrics,
including EBITDA, which was very strong in the second quarter
despite the decrease in investment revenue as a result of our
newly adopted investment policy and the repositioning of the
investment portfolio.  Our strong cash flow will support capital
spending to rapidly grow our agent network and to invest in the
infrastructure to support our 2008 growth plans."

Total revenue for the Global Funds Transfer segment is comprised
primarily of fees on money transfers, as well as fees on retail
money orders and bill payment products, investment revenue and
securities gains and losses.  Total revenue increased
US$25.2 million, or 10 percent, in the second quarter of 2008
over the second quarter of 2007, despite an US$18.9 million
decrease in investment revenue and net securities losses of
US$4.6 million that were recorded from the investment portfolio
and allocated to this segment.  Excluding net securities losses,
total segment revenue increased 12 percent.

Total fee and other revenue for the Global Funds Transfer
segment increased US$48.7 million, or 22 percent, in the second
quarter of 2008 over the second quarter of 2007, and continues
to be driven by the growth in the money transfer business.
Money transfer fee and other revenue (including bill payment)
grew 23 percent while money transfer transaction volume
(including bill payment) increased 19 percent in the second
quarter of 2008 as a result of network expansion and targeted
pricing initiatives.  The higher revenue growth rate versus
transaction volume growth is due to changes in product mix
(money transfer versus bill payment) and the Euro exchange rate.

Domestic originated transactions (including bill payment), which
contribute lower revenue per transaction, increased 20 percent,
in the second quarter of 2008, compared to the second quarter of
2007, while internationally originated transactions (outside of
North America) increased at a rate of 23 percent from the prior
year.  Transaction volume to Mexico grew 3 percent in the second
quarter of 2008 over the second quarter of 2007, above the
market pace as reported by the Banco de Mexico.

The growth in money transfer continues to reflect the company's
strategy of providing consumer choice through network expansion.
The money transfer agent base expanded 26 percent, to about
157,000 locations, in the second quarter of 2008 over the second
quarter of 2007, primarily due to increases in international
agent locations.

Fee and other revenue for retail money order for the second
quarter of 2008 increased 13 percent primarily due to the
acquisition of Property Bridge, which closed in October 2007.
Money order fees were down approximately 4% compared to the
second quarter of 2007, consistent with the decline in volume.
The decline in volume is expected to continue.

Investment revenue in Global Funds Transfer decreased 78 percent
in the second quarter of 2008 compared to the second quarter of
2007, reflecting lower yields from the realignment of the
investment portfolio away from asset-backed securities into
highly liquid assets.

Commissions expense in the second quarter of 2008 increased 22
percent compared to the same period in 2007, primarily driven by
higher money transfer transaction volume, tiered commission
rates paid to certain agents and increases in the Euro exchange
rate.  Higher money transfer transaction volumes increased fee
commissions expense by US$20.2 million, while higher average
commissions per transaction, primarily from tiered commissions,
increased commissions by US$4.8 million.

Operating income of US$30.6 million and operating margin of 11.2
percent for the second quarter of 2008 reflects lower investment
revenue, as well as the net securities losses of US$4.6 million.
Excluding net securities losses, operating income was
US$35.2 million and operating margin was 12.7 percent for the
second quarter of 2008.

Total revenue includes investment revenue, net securities gains
and losses, per-item fees charged to official check financial
institution customers and fees earned on the rebate processing
business.  The net revenue in the Payment Systems segment of
US$18.5 million in the second quarter of 2008 reflects the net
securities losses of US$25.7 million that were recorded in the
investment portfolio and allocated to this segment.  In
addition, investment revenue decreased US$47.6 million, or 62
percent, in the second quarter of 2008 due to the substantial
decrease in investment balances and lower yields earned.

In the first quarter of 2008, MoneyGram initiated a
restructuring of the official check business by changing the
commission structure and exiting certain large customer
relationships.  The company has termination agreements with nine
of its top ten financial institutions and anticipates the
balances associated with these institutions will runoff over 12
to 18 months.  At the end of April, the company re-priced the
commission rate paid to a substantial majority of its other
official check financial institution customers.  The new lower
commission rates took effect mostly on June 1 and the remainder
on July 1.

Commission expense decreased 108 percent in the second quarter
of 2008, compared to the second quarter of 2007, reflecting a
US$29.3 million increase in the fair value of swaps and a lower
interest rate environment.

                Capital Transaction, Unrestricted
                  Assets, Interest and Dividends

As previously disclosed, MoneyGram completed a capital
transaction on March 25, 2008, pursuant to which the company
received US$1.5 billion of gross equity and debt capital to
support the long-term needs of the business and provide
necessary capital due to investment portfolio losses.  The
equity component consisted of a US$767.5 million private
placement of participating convertible preferred stock.  The
debt component consisted of the issuance of US$500.0 million of
senior secured second lien notes with a ten-year maturity.

MoneyGram also entered into a senior secured amended
and restated credit agreement amending the company's existing
US$350.0 million debt facility to increase the facility by
US$250.0 million to a total facility size of US$600.0 million.
The new facility includes US$350.0 million in two term loan
tranches and a US$250.0 million revolving credit facility.  The
company has availability under the revolving facility of
approximately US$100.0 million.

The net proceeds of the capital transaction were invested in
cash and cash equivalents to supplement unrestricted assets,
which stood at US$348.6 million at the end of the second quarter
of 2008.

Under the terms of the equity instruments and debt issued in
connection with the capital transaction, the company has a
limited ability to pay common stock dividends and, therefore,
does not anticipate declaring any common stock dividends for the
foreseeable future.

In the second quarter of 2008 the company elected to pay cash
interest on the US$500.0 million of senior secured second lien
notes and pay-in-kind dividends on the US$767.5 million in
participating convertible preferred stock.

                Preliminary Second Quarter 2008 Results

MoneyGram will be bifurcating embedded derivatives contained in
its Series B Preferred Stock.  The company will recognize a
liability equal to the fair value of the embedded derivatives,
with a corresponding reduction in the value of the Series B
Stock recognized in "Mezzanine equity" in the consolidated
balance sheets when it files its 10-Q for the quarter ended
June 30, 2008.

The company is finalizing the value of this embedded derivative;
however, the preliminary fair value estimate of the liability is
approximately US$25.0 million as of June 30, 2008.  The change
in the fair value during the second quarter is estimated to be
approximately US$12.0 million and will be reflected as a gain in
the company's second quarter consolidated statements of (loss)
income when it files its quarterly report on Form 10-Q for the
quarter ended June 30, 2008.

The company and the investors expect to enter into a separate
binding agreement that clarifies the provisions of the Series B
Preferred Stock that give rise to the embedded derivatives.
This agreement when finalized, is expected to allow the company
to eliminate the option liability and the fair value accounting
in the third quarter of 2008.

A full-text copy of the company's press release reporting
financial results for its second quarter ended June 30, 2008, is
available for free at http://researcharchives.com/t/s?308e

                   About MoneyGram International

Headquartered in Minneapolis, Minnesota, MoneyGram International
Inc. (NYSE: MGI) -- http://www.moneygram.com/-- is a global
payment services company.  The company's major products and
services include global money transfers, money orders and
payment processing solutions for financial institutions and
retail customers.  MoneyGram is a New York Stock Exchange listed
company with approximately 157,000 global money transfer agent
locations in 180 countries and territories.

                          *      *      *

As reported in the Troubled Company Reporter on April 22, 2008,
Moody's Investors Service confirmed MoneyGram International's B1
corporate family rating with a negative rating outlook.  This
rating confirmation concludes the review for further possible
downgrade initiated on Oct. 18, 2007, which was prompted by the
company's statement that it had experienced losses to its
investment portfolio as a result of the illiquidity in the
market for subprime asset backed securities and CDO's.


PARMALAT SPA: Parma Court Starts Trial Against Tanzi, 53 Others
---------------------------------------------------------------
Italian Judge Eleonora Fiengo in Parma, Italy, granted in July
2008 the request of Enrico Bondi, chief executive officer of
Parmalat SpA, to seek cash for the company in a criminal trial
against Calisto Tanzi, founder of Parmalat, and 53 individuals
accused of fraud which led to Parmalat's 2003 bankruptcy, Sara
Gay Forden of Bloomberg News reported.

"The court upheld our request to receive damages from the
defendants in the trial," Manuela Cigna, Mr. Bondi's lawyer,
told Bloomberg.

Fabio Belloni, Mr. Tanzi's lawyer, stated that his client and
the other defendants did not oppose Mr. Bondi's request.  Judge
Fiengo also allowed 30,000 individual investors to seek redress,
Bloomberg added.

The decision is a victory for Mr. Bondi, Ms. Forden said, since
in a Milan criminal trial he had lost the right to seek damages
for market manipulation.  Additionally, the U.S. District Court
had also dismissed most of the claims against Citigroup Inc.,
Parmalat's bank, Bloomberg noted.

Mr. Bondi is seeking compensation for the EUR14,000,000,000, or
US$21,600,000,000, shortfall when Parmalat went bankrupt in
2003.  According to Bloomberg, the amount of the award will be
decided by the Parma Court at the end of the trial, along with a
guilty verdict.

In a subsequent ruling, Judge Fiengo transferred the case
against Cesare Geronzi, chairman of Mediobanca SpA, to Rome for
jurisdictional reasons, Bloomberg reported.  Mr. Geronzi was
charged with extortion and fraudulent bankruptcy, in connection
with the 1999 sale of Eurolat to Parmalat.

"Finally the court has upheld the request we made from the
beginning to move the trial to the competent jurisdiction,"
Ennio Amodio, Mr. Geronzi's lawyer, was quoted as saying.  "Now
the trial will be transferred to Rome, where we expect to
clarify that Cesare Geronzi had no responsibility for the
charges he is accused of."

                         About Parmalat

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
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations 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.

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.

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 has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  On June 21, 2007, the U.S. Court granted
Parmalat permanent injunction.


TISCALI SPA: Posts EUR57.22 Mln Group Loss for First Half 2008
--------------------------------------------------------------
The Board of Directors of Tiscali S.p.A. has approved the
company's financial results for first half ended June 30, 3008.

The Tiscali Group posted EUR57.22 million in net losses on
EUR535.17 million in net revenues for the first half 2008,
compared with EUR22.43 million in net income on EUR393 million
in net net revenues for the same period in 2007.

The 2008 figures include both organic growth and external growth
in relation to the acquisition of Pipex in the U.K.

The company notes that the higher competitive pressure in the
second quarter of 2008, both in Italy and in the U.K., as well
as the redefinition of the customer database aimed at
eliminating inactive customers and at creating higher
efficiencies, led to a slowdown in growth if compared
to the first quarter 2008.  This trend affected especially the
U.K. operations, due also to a further weakening of the Pound
Sterling exchange rate versus Euro during the second quarter of
this year.

In the first half 2008, Internet access and voice services -?
the Group?s core business -? represented around 86% of total
turnover. Group profitability increased, with a Gross Operating
Income (EBITDA) before provisions of EUR95.8 million, up by 55%
compared to the EBITDA of EUR61.9 million recorded during the
first half of 2007.  Profitability as a percentage of revenues
increased by two percentage points (18% in the first half of
2008 compared to 16% in the first half of 2007).

ADSL users have grown by around 376,000 compared to
June 30, 2007, bringing the total number of customers to over
2.4 million, including over 1.2 million LLU customers and more
than 1 million customers purchasing "bundled" services (voice
with VoIP and CPS and Internet access).  The Group ADSL retail
ARPU was EUR29 stable versus 2007, in spite of increased
competition in the market.

At June 30, 2008, the Tiscali Group held cash and cash
equivalents totaling EUR 58.9 million, against a net financial
debt, at the same date, of EUR589.5 million, an improvement on
the EUR636.5 million at Dec. 31, 2007.

At June 30, 2008, the Tiscali Group's balance sheet showed
EUR1.57 billion in total assets, EUR1.35 billion in total
liabilities, and EUR217.88 million in total shareholders equity.

At June 30, 2008, the Group had EUR383.55 million in current
assets and EUR561.48 million in current liabilities, resulting
in EUR177.93 million in net working deficit.

A copy of Tiscali S.p.A.'s results for the first half of 2008 is
available free-of-charge at:

               http://researcharchives.com/t/s?30a7

                          About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the
country.  The group also operates in other European countries,
serving more than seven million subscribers, of which over 1.5
million are broadband users.

Tiscali posted consecutive net losses for the past years: EUR5.5
million in 1999, EUR101 million in 2000, EUR1.66 billion in
2001, EUR593.1 million in 2002, EUR242.4 million in 2003,
EUR131.8 million in 2004, EUR12.9 million in 2005, and EUR103.6
million in 2006.  It posted EUR3.88 million in net losses on
EUR614.33 million in net revenues for the nine months ended
Sept. 30, 2007.

                          *     *     *

Tiscali S.p.A. continues to carry Standard & Poor's Ratings
Services' B+ long-term corporate credit rating.  The rating was
previously at B and was raised by S&P to its current level in
February 2008.


TISCALI SPA: S&P Puts B+ Corp. Credit Rating on Negative Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B+' long-term
corporate credit rating on Tiscali SpA, an alternative provider
of Internet, telephony, and TV services in Italy and the U.K.,
on CreditWatch with negative implications.

The CreditWatch listing also applies to S&P's 'B+' and 'BB-'
long-term debt ratings on, respectively, the EUR50 million
senior secured term loan and EUR50 million senior secured
revolving credit facility taken on by financing vehicle Tiscali
U.K. Holdings Ltd. and guaranteed by Tiscali SpA.  The recovery
ratings on these obligations are unchanged, at respectively '3'
(indicating S&P's expectation of meaningful {50%-70%} recovery
in the event of a payment default given the presence of the
EUR400 million bridge facility) and '2' (indicating S&P's
expectation of substantial {70%-90%} recovery in the event of a
payment default).

"The CreditWatch placement primarily reflects the significant
shortfall in Tiscali's second-quarter 2008 earnings growth and
cash flow generation compared with the company's earlier
expectations, and the likely tightening of covenant headroom
during the second half of the year," said S&P's credit analyst
Leandro de Torres Zabala.

Following its disappointing second-quarter results, the company
has revised its full-year expectations to revenues of EUR1
billion to EUR1.1 billion and EBITDA of EUR220 million to EUR230
million, compared with earlier forecasts of EUR1.3 billion and
EUR290 million, respectively.  The weaker-than-expected
half-year results and the lower full-year EBITDA prospects are
likely to materially reduce the headroom under the increasingly
demanding covenants of Tiscali's credit facility in the second
half.  Debt levels remained high as of June 30, 2008, at about
EUR589 million.

The company, which is evaluating offers for its disposal, has
said that it expects to release a new business plan in the
fourth quarter of 2008.

S&P expects to resolve the CreditWatch status over the next few
months.

"Key drivers of the resolution will be the company's
expectations for trading, cash flow generation, and leverage for
the second half of 2008 and for 2009, and their subsequent
impact on covenant headroom," said Mr. de Torres.


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


DAN-EL LLP: Creditors Must File Claims by September 25
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared LLP Dan-El insolvent.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of Jambyl
          Suleimanov Str. 17
          Taraz
          Jambyl
          Kazakhstan


DEKORT AVISTA: Claims Deadline Slated for September 25
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Kamerton insolvent.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of Akmola
          Room 228
          Auelbekov Str. 139a
          Kokshetau
          Akmola
          Kazakhstan
          Tel: 8 (7162) 25-79-32


HALYK AGRO: Claims Filing Period Ends September 25
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Halyk Agro Service insolvent.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of Akmola
          Room 308
          Abai Str. 89
          Kokshetau
          Akmola
          Kazakhstan
          Tel: 8 (7162) 25-51-74


KAMERTON LLP: Creditors' Proofs of Claim Due on September 25
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Kamerton insolvent.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of Akmola
          Room 228
          Auelbekov Str. 139a
          Kokshetau
          Akmola
          Kazakhstan
          Tel: 8 (7162) 25-79-32


KULAN ANT: Claims Registration Ends September 25
------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared LLP Kulan Ant insolvent.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of Jambyl
          Suleimanov Str. 17
          Taraz
          Jambyl
          Kazakhstan


MER DAULET: Claims Deadline Slated for September 25
---------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Mer Daulet insolvent on June 30, 2008.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of West Kazakhstan
          Komsomolskaya Str. 82
          Uralsk
          West Kazakhstan
          Kazakhstan
          Tel: 8 (7112) 51-15-29


TEMIR-SAUDA LLP: Claims Filing Period Ends September 25
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Temir-Sauda insolvent.

Creditors have until Sept. 25, 2008, to submit written proofs of
claims to:

          The Specialized Inter-Regional
          Economic Court of Almaty
          Micro District Samal, 15-29
          Taldykorgan
          Almaty
          Kazakhstan
          Tel: 8 (3282) 25-43-90
               8 777 382 33-86
               8 701 668 13-30


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


STROY ELEGANT: Creditors Must File Claims by September 16
---------------------------------------------------------
LLC Stroy Elegant Trading has declared insolvency.  Creditors
have until Sept. 16, 2008, to submit written proofs of claim to:

          LLC Stroy Elegant Trading
          Elebesov Str. 234
          720015 Bishkek
          Kyrgyzstan
          Tel: (0-772) 31-13-49


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


LEAR CORP: Reports US$4BB Net Sales for Second Quarter 2008
-----------------------------------------------------------
Lear reported net sales of US$4.0 billion, slightly lower than
US$4.2 billion net sales in the same quarter in 2007.  Pretax
income was US$55.8 million, including restructuring costs of
US$58.3 million while in the same period of 2007 pretax income
was US$143.9 million, including restructuring costs of US$34.8
million and other special items of US$3.4 million.

Net income was US$18.3 million, or US$0.23 per share, for the
second quarter of 2008 as compared with net income of
US$123.6 million, or US$1.58 per share, for the second quarter
of 2007.

Bob Rossiter, Lear Chairman, Chief Executive Officer and
President, said, "Business conditions in North America were very
difficult in the second quarter, primarily due to sharply lower
industry production, a significant mix shift away from full-size
pickups and large SUVs and higher raw material and energy
prices.  In this challenging environment, the Lear team remained
focused on further diversifying our sales, implementing
structural cost reduction actions, investing in growth
opportunities and proactively managing our liquidity
requirements.  We have a clear operating plan and committed
liquidity to manage through the challenging business conditions
we see ahead."

The decline in net sales for the quarter primarily reflects a
15% decline in industry production in North America, including
the impact of the American Axle strike, partially offset by
favorable foreign exchange.

                     Full-Year 2008 Outlook

Lear expects 2008 net sales to be approximately US$15.0 billion,
compared with its prior outlook of US$15.3 billion.  The
decrease is primarily the result of lower forecast in industry
production in North America.

Lear anticipates 2008 income before interest, other expense,
income taxes, restructuring costs and other special items (core
operating earnings) of US$550 to US$600 million, down from the
previous outlook of US$600 to US$640 million, also reflecting
lower industry production in North America.  Restructuring costs
in 2008 are estimated to increase to approximately US$140
million, reflecting further capacity actions and census
reductions.

Key assumptions underlying Lear's financial outlook include
expectations for 2008 industry vehicle production in North
America of approximately 13.5 million units as compared with
about 13.8 million units in our previous guidance.  Lear expects
2008 production in North America for the Domestic Three to be
down about 15% from 2007.  In Europe, it expects industry
production of approximately 20.3 million units.  In addition, it
is assuming an exchange rate of US$1.54/Euro.

                     About Lear Corporation

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems,
electrical distribution systems and related electronic products.
The company has around 91,000 employees at 215 facilities in 35
countries.  Outside the United States, Lear has subsidiaries in
Germany, Luxembourg, Sweden, Singapore, China, India and Mexico,
among others.

                          *     *     *

Lear Corp. still carries Standard & Poor's Ratings Services' B+
corporate credit, Long-Term Foreign and Local Issuer Credit
ratings, which the rating agency affirmed in May 2008.

Lear Corp. also carries B2 Corporate Family, Bank Loan Debt and
Probability-of-Default ratings, and B3 Senior Unsecured Debt
rating from Moody's Investors Service, which said the outlook is
stable.


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


PRIDE INT'L: Earns US$187.7 Million in Second Qtr. Ended June 30
----------------------------------------------------------------
Pride International Inc. reported US$187.7 million of net income
on US$560.3 million of net revenues for the three months ended
June 30, 2008, compared to US$146.1 million of net income on
US$530.0 million of net revenues for the same period in 2007.

Cash flows from operating activities were US$165.6 million
during the three months ended June 30, 2008, while capital
expenditures totaled US$187.8 million.  Capital expenditures for
the remainder of 2008 are expected to total approximately
US$505 million, or US$995 million for the year, including an
estimated US$610 million in 2008, excluding capitalized
interest, related to the construction of three ultra-deepwater
drillships.

Total debt at June 30, 2008, was US$737.9 million, down US$453.6
million, or 38 percent, from total debt at Dec. 31, 2007.  The
decline was primarily attributable to the retirement in May 2008
of US$300 million outstanding principal amount of the company's
3.25 percent convertible senior notes due 2033.  In connection
with the retirement, the company delivered an aggregate of
US$300 million in cash and approximately 5.0 million in shares
of common stock.  At June 30, 2008, and following the effect of
the retirement, shares of common stock outstanding were
172.9 million.  Beginning with the third quarter of 2008, the
company expects its fully diluted share count to be 1.0 million
to 1.5 million greater than the shares outstanding, inclusive of
common stock equivalents, representing an estimated 5.0 million
share reduction from the weighted average fully diluted share
count at March 31, 2008.

"Second quarter 2008 results once again established record
levels for revenues and income from continuing operations and
were underscored by excellent performance in our deepwater
fleet, where five out of eight units achieved utilization of 98
percent or higher, including 100 percent utilization of the
Pride North America," Louis A. Raspino, President and Chief
Executive Officer of Pride International, Inc. commented.  "In
addition, our Gulf of Mexico jackup rig fleet registered notable
improvement in utilization, achieving 83 percent in the second
quarter of the year following utilization of 58 percent as
recently as the fourth quarter of 2007."

"As we look forward to the second half of 2008, several
developments strongly support further improvement in our
financial results," Mr. Raspino stated.  "We are expected to
begin benefiting from the commencement of new contracts with
significantly higher dayrates on a number of our floating rigs,
including our deepwater semisubmersible rigs Pride Brazil and
Pride Carlos Walter and the drillship Pride Angola.  In our
midwater fleet, the semisubmersible rig Pride Mexico commenced
in July 2008 a five-year contract offshore Brazil.  In addition,
following the improvement in utilization seen to date in our US
Gulf of Mexico jackup rig fleet, dayrates are now increasing to
levels not seen in 24 months, as evidenced by recent contract
awards at dayrates of up to US$90,000."

"The improving Gulf of Mexico jackup market provides a strong
backdrop to continue pursuing alternatives for divesting our
mat-supported jackup fleet based in the region, as we believe
today's share price does not properly reflect the true value of
our core business and our Gulf of Mexico mat-supported jackup
business when valued separately.  While divestiture alternatives
include a variety of capital market and private sale
transactions, a tax-free distribution to our shareholders
appears most attractive, and when completed, would allow our
shareholders to more fully realize the value of these two
businesses," Mr. Raspino said.

In closing, Mr. Raspino added, "With the company's improved
operating performance, growing cash flow and expanding contract
backlog, coupled with the addition of three ultra-deepwater
drillships beginning in 2010, all of which have attractive
multi-year contracts, and the repricing of our existing fleet,
we believe our earnings growth prospects are among the best in
the offshore drilling industry."

Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 64 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 10 platform rigs, five managed deepwater rigs
and seven Eastern Hemisphere-based land rigs.  The company has
subsidiaries in France, Netherlands, Venezuela, Bahamas, Mexico,
Malaysia, and Singapore.

                          *     *     *

To date, Pride International carries Standard & Poor's Ratings
Service's BB+ corporate credit rating.  The company's unsecured
debt is also rated BB+ by S&P.  The outlook on the ratings is
stable.


X5 RETAIL: Retains Karusel Name as Hypermarket Brand
----------------------------------------------------
X5 Retail Group N.V. has decided to retain the Karusel brand and
to use it for all of its hypermarkets.

As announced, in addition to purchasing the entire issued share
capital in Formata Holding B.V, the owner of the Karusel
hypermarket chain, the Company has also acquired certain
intellectual property, which originally was not part of the Call
Option Agreement, including Karusel brand.

X5 has thoroughly reviewed its initial approach towards
rebranding of the acquired stores, analyzed brand awareness and
customer loyalty to the Karusel brand.  Based on the results of
this analysis, X5 has decided to retain the brand and to use it
for all of the Company's hypermarkets.

All new hypermarkets will be opened under the Karusel brand,
while rebranding of existing stores will be done gradually.

The decision to retain the brand will enable X5 to optimize the
Karusel integration process, while a single brand for all
hypermarkets means more efficiency in terms of operating the
stores and clearer value proposition for the customers.

The Company is considering using the Mercado brand for its
future projects.

X5 Retail Group plans to provide an update on the progress of
Karusel's integration and the integration plan along with the
announcement of the Company's financial results for the first
half of 2008, which is preliminarily scheduled for the end of
August.

Simultaneously X5 will provide 2008 guidance for the joint
Company.

                        About X5 Retail

Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V.
(LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm
for the group of companies that operate retail grocery stores.
The main activity of the company is the development and
operation of grocery retail stores.  The company operated
Pyaterochka and Perekrestok retail chains in Russia, including
Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan,
Samara, Ekaterinburg and Kiev, Ukraine.

                           *     *     *

X5 Retail Group N.V. continues to carry a B1 Corporate Family
Rating from Moody's Investors Service with positive outlook.

X5 Retail and its subsidiaries also carries a 'BB-' long-term
corporate credit rating from Standard & Poor's Ratings Services.
S&P said the outlook is stable.


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


AFFILIATED COMPUTER: S&P Affirms 'BB' Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Dallas, Texas-based Affiliated Computer Services Inc. (ACS) to
stable from negative.  At the same time, S&P affirmed the 'BB'
corporate credit rating on the company.  The outlook revision
reflects ACS' good market position, consistent financial
performance and moderate leverage for the rating.

"The current rating incorporates ACS' recent history of
cumulative debt-financed, net share repurchases of approximately
US$1.5 billion in fiscal 2006 and 2007, the March 2007 buyout
offer by private equity firm Cerberus Capital Management
(subsequently withdrawn in October 2007), and substantial senior
management and independent director turnover," said Standard &
Poor's credit analyst Martha Toll-Reed.  These factors are
partially mitigated by ACS' growing, annuity-like revenue
streams, solid historic profitability, and good cash-flow
generation.  In addition, ACS' near-term ability to pursue a
more aggressive financial policy is limited by covenant
constraints in its existing credit facilities and current
capital markets conditions.

ACS reported fiscal 2008 revenues of US$6.2 billion, up 7% from
the prior year. ACS has maintained consistent EBITDA margins in
the low- to mid-20% area.  A focus on higher-margin business
process outsourcing (more than three-quarters of total revenues)
and a growing, lower-cost offshore services capability has
enabled ACS to sustain higher margins than many of its IT
outsourcing peers.  While ACS faces competitive threats from
larger, more globally positioned IT providers, the company's
very strong position in state and local government outsourcing
services provides a measure of ratings stability.

ACS' capital requirements are expected to be moderate, at 6%-7%
of revenues, and free operating cash flow remains solid, at more
than US$700 million in the fiscal year ended June 2008.  ACS'
current leverage (in the 3x area) is moderate for the rating,
given ACS' satisfactory business profile.  At the 'BB' rating
level, S&P expects ACS to manage its debt leverage at 3x-5x over
the near-to-intermediate term, allowing the company to make
modest-size acquisitions or share repurchases.


===============
P O R T U G A L
===============


HIPOTOTTA NO.5: S&P Affirms BB/CCC- Rating on Class E/F Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its credit
ratings on the class B to E notes issued by HipoTotta No. 6 PLC
and HipoTotta No. 7 Ltd.  At the same time, S&P affirmed the
ratings on the class A notes and class F notes in both deals.
S&P also affirmed the ratings on all classes of notes issued by
HipoTotta No. 4 PLC and HipoTotta No. 5 PLC.

The rating actions on the notes issued by Hipototta No. 6 and
No. 7 reflect S&P's updated view on the aggregation of single
borrower's exposures.  This results in an increase in the
assessed weighted-average loan-to-value ratio for both
transactions.  S&P took into account these revised assumptions,
together with the most recent performance information, in its
credit and cash flow analysis.  The results of this analysis
showed that the credit enhancement available for the class B to
E notes in both transactions was insufficient to maintain the
current ratings.

The affirmation of all rated notes issued by HipoTotta No. 4 and
No. 5 follows a full credit and cash flow analysis of the most
recent transaction information that S&P received.  The ratings
on these transactions are currently supported by high credit
enhancement levels provided by a cash reserve and subordinated
tranches; the results from S&P's analysis confirmed that these
levels are sufficient to support the current credit ratings.

In June, the credit ratings on the junior tranches of HipoTotta
No. 1 PLC and HipoTotta No. 2 PLC were placed on CreditWatch
with positive implications.  S&P expects to resolve the
CreditWatch placements within the next two months.

The Hipototta deals are Portuguese residential mortgage-backed
securities transactions backed by static pools of performing
residential mortgage-backed loans secured over residential
properties in Portugal granted to private first-time buyers and
originated by Banco Santander Totta, S.A. (AA/Stable/A-1+).

  Ratings Lowered:

  Class                   Rating
             To                       From

  HipoTotta No. 6 PLC:

   -- EUR2.2 Billion Residential Mortgage-Backed Floating-Rate
      Notes

  B          A                         AA
  C          BBB                       A
  D          BB                        BBB
  E          B                         BB-

  HipoTotta No. 7 Ltd.:

    -- EUR2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  B          A                         AA
  C          BBB                       A
  D          BB                        BBB
  E          B                         BB

  Ratings Affirmed:

  HipoTotta No. 4 PLC:

    -- EUR2.4 Billion Residential Mortgage-Backed Floating-Rate
      Notes

  A         AAA

  HipoTotta No. 5 PLC:

    -- EUR2.01 Billion Residential Mortgage-Backed Floating-Rate
      Notes

  A2         AAA
  B          AA
  C          A
  D          BBB
  E          BB
  F          CCC-

  HipoTotta No. 6 PLC:

    -- EUR2.2 Billion Residential Mortgage-Backed Floating-Rate
      Notes

  A1         AAA
  A2         AAA
  F          CCC-

  HipoTotta No. 7 Ltd.:

    -- EUR2 Billion Residential Mortgage-Backed Floating-Rate
      Notes

  A1         AAA
  A2         AAA
  F          CCC-


HIPOTOTTA NO.6: S&P Lowers Rating on Class D/E Notes to BB/B
------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its credit
ratings on the class B to E notes issued by HipoTotta No. 6 PLC
and HipoTotta No. 7 Ltd.  At the same time, S&P affirmed the
ratings on the class A notes and class F notes in both deals.
S&P also affirmed the ratings on all classes of notes issued by
HipoTotta No. 4 PLC and HipoTotta No. 5 PLC.

The rating actions on the notes issued by Hipototta No. 6 and
No. 7 reflect S&P's updated view on the aggregation of single
borrower's exposures.  This results in an increase in the
assessed weighted-average loan-to-value ratio for both
transactions.  S&P took into account these revised assumptions,
together with the most recent performance information, in its
credit and cash flow analysis.  The results of this analysis
showed that the credit enhancement available for the class B to
E notes in both transactions was insufficient to maintain the
current ratings.

The affirmation of all rated notes issued by HipoTotta No. 4 and
No. 5 follows a full credit and cash flow analysis of the most
recent transaction information that S&P received.  The ratings
on these transactions are currently supported by high credit
enhancement levels provided by a cash reserve and subordinated
tranches; the results from S&P's analysis confirmed that these
levels are sufficient to support the current credit ratings.

In June, the credit ratings on the junior tranches of HipoTotta
No. 1 PLC and HipoTotta No. 2 PLC were placed on CreditWatch
with positive implications.  S&P expects to resolve the
CreditWatch placements within the next two months.

The Hipototta deals are Portuguese residential mortgage-backed
securities transactions backed by static pools of performing
residential mortgage-backed loans secured over residential
properties in Portugal granted to private first-time buyers and
originated by Banco Santander Totta, S.A. (AA/Stable/A-1+).

  Ratings Lowered:

  Class                   Rating
              To                       From

  HipoTotta No. 6 PLC:

    -- EUR2.2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  B          A                         AA
  C          BBB                       A
  D          BB                        BBB
  E          B                         BB-

  HipoTotta No. 7 Ltd.:

    -- EUR2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  B          A                         AA
  C          BBB                       A
  D          BB                        BBB
  E          B                         BB

  Ratings Affirmed:

  HipoTotta No. 4 PLC:

    -- EUR2.4 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A         AAA

  HipoTotta No. 5 PLC:

    -- EUR2.01 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A2         AAA
  B          AA
  C          A
  D          BBB
  E          BB
  F          CCC-

  HipoTotta No. 6 PLC:

    -- EUR2.2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A1         AAA
  A2         AAA
  F          CCC-

  HipoTotta No. 7 Ltd.:

    -- EUR2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A1         AAA
  A2         AAA
  F          CCC-


HIPOTOTTA NO.7: S&P Cuts Class D/E Floating Notes Rating to BB/B
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its credit
ratings on the class B to E notes issued by HipoTotta No. 6 PLC
and HipoTotta No. 7 Ltd.  At the same time, S&P affirmed the
ratings on the class A notes and class F notes in both deals.
S&P also affirmed the ratings on all classes of notes issued by
HipoTotta No. 4 PLC and HipoTotta No. 5 PLC.

The rating actions on the notes issued by Hipototta No. 6 and
No. 7 reflect S&P's updated view on the aggregation of single
borrower's exposures.  This results in an increase in the
assessed weighted-average loan-to-value ratio for both
transactions.  S&P took into account these revised assumptions,
together with the most recent performance information, in its
credit and cash flow analysis.  The results of this analysis
showed that the credit enhancement available for the class B to
E notes in both transactions was insufficient to maintain the
current ratings.

The affirmation of all rated notes issued by HipoTotta No. 4 and
No. 5 follows a full credit and cash flow analysis of the most
recent transaction information that S&P received.  The ratings
on these transactions are currently supported by high credit
enhancement levels provided by a cash reserve and subordinated
tranches; the results from S&P's analysis confirmed that these
levels are sufficient to support the current credit ratings.

In June, the credit ratings on the junior tranches of HipoTotta
No. 1 PLC and HipoTotta No. 2 PLC were placed on CreditWatch
with positive implications.  S&P expects to resolve the
CreditWatch placements within the next two months.

The Hipototta deals are Portuguese residential mortgage-backed
securities transactions backed by static pools of performing
residential mortgage-backed loans secured over residential
properties in Portugal granted to private first-time buyers and
originated by Banco Santander Totta, S.A. (AA/Stable/A-1+).

  Ratings Lowered:

  Class                   Rating
              To                       From

  HipoTotta No. 6 PLC:

    -- EUR2.2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  B          A                         AA
  C          BBB                       A
  D          BB                        BBB
  E          B                         BB-

  HipoTotta No. 7 Ltd.:

    -- EUR2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  B          A                         AA
  C          BBB                       A
  D          BB                        BBB
  E          B                         BB

  Ratings Affirmed:

  HipoTotta No. 4 PLC:

    -- EUR2.4 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A         AAA

  HipoTotta No. 5 PLC:

    -- EUR2.01 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A2         AAA
  B          AA
  C          A
  D          BBB
  E          BB
  F          CCC-

  HipoTotta No. 6 PLC:

    -- EUR2.2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A1         AAA
  A2         AAA
  F          CCC-

  HipoTotta No. 7 Ltd.:

    -- EUR2 Billion Residential Mortgage-Backed Floating-Rate
       Notes

  A1         AAA
  A2         AAA
  F          CCC-


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


ANGARIYA LLC: Court Sets Supervision Hearing on October 22
----------------------------------------------------------
The Arbitration Court of Irkutsk commenced bankruptcy
supervision procedure against LLC Factory of Ice-Cream Angariya
and appointed D. Murashov as interim receiver.  The case is
docketed under Case No. A19-7471/08-37.

Creditors have to submit proofs of claim to:

          D. Murashov, Interim Receiver
          Dekabrskih Sobytiy Str. 109-48
          664007 Irkutsk
          Russia

The Court will convene at 11:30 a.m. on Oct. 22, 2008, to hear
the case at:

          The Arbitration Court of Irkutsk
          Room 303
          Gagarina Avenue 70
          664025 Irkutsk
          Russia

The Debtor can be reached at:

          LLC Factory of Ice-Cream Angariya
          Mira Str. 34
          Angariya
          665830 Irkutsk
          Russia


B.I.N.BANK: S&P Lifts Long-Term Corp. Credit Rating to B From B-
----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
counterparty credit rating to 'B' from 'B-' and affirmed its 'C'
short-term rating on Russian B.I.N.Bank.  At the same time, the
Russian national scale rating was raised to 'ruBBB' from
'ruBBB-'.  The outlook is stable.

"The upgrade reflects the reduction of the uncertainties related
to the shareholder changes over the past 12 months," said S&P's
credit analyst Tatiana Nikolenko. "B.I.N.Bank's success in
building up its loan portfolio in first-half 2008, its ability
to maintain a good level of deposit-based funding, and its
historically below-market-average level of nonperforming loans
also buoy the ratings.

The ratings continue to be pressured by the bank's high exposure
to credit risk on the back of still-significant single-party
loan concentration; relatively high operational costs; and
capitalization that, although adequate at present, is challenged
by future growth prospects.

"The outlook is stable because we expect B.I.N.BANK to continue
its development in line with its current strategy, while
expanding its franchise.  We would consider raising the ratings
if the bank further improves the diversification of its assets,
maintains adequate capitalization and asset quality, and
demonstrates its ability to generate sustainable profits from a
wider customer base," said Ms. Nikolenko.

The ratings could be lowered if the bank's liquidity position,
asset quality, financial performance, funding profile, and
capitalization deteriorate significantly.  If the bank adopts a
strategy that could negatively affect its further development,
the ratings could also come under pressure.

B.I.N.BANK is a midsize commercial bank ranked among Russia's
top 40 banks, with assets of RUR69.3 billion (US$2.95 billion)
as of June 30, 2008.  The bank provides a wide range of banking
services to corporate and retail clients.


BUINSKAYA COTTON: Court Sets Supervision Hearing on August 20
-------------------------------------------------------------
The Arbitration Court of Tatarstan commenced bankruptcy
supervision procedure against OJSC Buinskaya Cotton Factory and
appointed A. Sibgatullin as interim receiver.  The case is
docketed under Case No. A65-6950/2008? SG4-39.

Creditors have to submit proofs of claim to:

          A. Sibgatullin, Interim Receiver
          Post User Box 24
          Kazan
          420021 Tatarstan
          Russia

The Court will convene on Aug. 20, 2008, to hear the case at:

          The Arbitration Court of Tatarstan
          Room 12
          Floor 2
          Entrance 2
          Building 1
          Kremlin
          Kazan
          Tatarstan
          Russia

The Debtor can be reached at:

          OJSC Buinskaya Cotton Factory
          Buinsk
          422430 Tatarstan
          Russia


KANASHSKAYA CJSC: Names V. Stepanov as Administrative Receiver
--------------------------------------------------------------
The first creditors meeting of CJSC Motor Depot Kanashskaya has
resolved to place the company under financial rehabilitation and
appointed V. Stepanov as administrative receiver.

The Arbitration Court of Chuvashiya has sanctioned the
creditors' resolution.  The case is docketed under Case No.
A79-2737/2008.

Creditors have to submit proofs of claim to:

          V. Stepanov, Administrative Receiver
          P. Lulumby Str. 8
          Chuvashiya
          Russia

The Debtor can be reached at:

          V. Stepanov, Administrative Receiver
          P. Lulumby Str. 8
          Chuvashiya
          Russia


KURGANSKAYA ENERGOSBYTOVAYA: Supervision Hearing Set October 22
--------------------------------------------------------------
The Arbitration Court of Kurgan commenced bankruptcy supervision
procedure against OJSC Kurganskaya Energosbytovaya Company and
appointed A. Maslakov as interim receiver.  The case is docketed
under Case No. A34-1643/2008.

Creditors have to submit proofs of claim to:

          A. Maslakov, Interim Receiver
          Office 212
          K. Myagotina 119
          640000 Kurgan
          Russia

The Court will convene at 2:00 p.m. on Oct. 22, 2008, to hear
the case at:

          The Arbitration Court of Kurgan
          Sovetskaya Str. 192
          640003 Kurgan
          Russia

The Debtor can be reached at:

          OJSC Kurganskaya Energosbytovaya Company
          Volodargskogo 57
          640000 Kurgan
          Russia


LIVADIYSKIY FISH: Court Sets Supervision Hearing on October 22
--------------------------------------------------------------
The Arbitration Court of Primorye commenced bankruptcy
supervision procedure against LLC Livadiyskiy Fish Processing
Factory and appointed O. Rusakova as interim receiver.  The case
is docketed under Case No. A51-2406/2008 21-75b.

Creditors have to submit proofs of claim to:

          O. Rusakova, Interim Receiver
          Post User Box 105
          690105 Vladivostok
          Russia

The Court will convene at 4:00 p.m. on Oct. 22, 2008, to hear
the case at:

          Arbitration Court of Primorye
          Room 313
          Svetlanovskaya Str. 54
          Vladivostok
          Russia

The Debtor can be reached at:

          LLC Livadiyskiy Fish Processing Factory
          Naberezhnaya Str. 32
          Livadiya
          Primorye
          Russia


REAL TRADE: Court Sets Supervision Hearing on November 11
---------------------------------------------------------
The Arbitration Court of Ryazan commenced bankruptcy supervision
procedure against LLC Real Trade and appointed Y. Artemov as
interim receiver.  The case is docketed under Case No. A54-1902/
2008.

Creditors have to submit proofs of claim to:

          Y. Artemov, Interim Receiver
          Michurina Str. 1
          Ramzay
          Mokshanskiy
          442395 Penza
          Russia
          Tel: 8-84150-27780

The Court will convene at 12:30 p.m. on Nov. 11, 2008, to hear
the case at:

          The Arbitration Court of Ryazan
          Pochtovaya Str. 43/44
          Ryazan
          Russia

The Debtor can be reached at:

          LLC Real Trade
          Rytikova St. 18/32
          Ryazan
          Russia


URAL BANK: Moody's Affirms E+ Bank Financial Strength Rating
------------------------------------------------------------
Moody's Investors Service confirmed the B3 long-term local and
foreign currency deposit ratings of Ural Bank for Reconstruction
and Development with stable outlook.  Concurrently, Moody's
Interfax Rating Agency confirmed UBRD's Baa2.ru long-term
national scale rating.  The NSR carries no specific outlook.
Moscow-based Moody's Interfax is majority-owned by Moody's, a
leading global rating agency.

These confirmations conclude the review for possible upgrade
commenced by Moody's on these ratings on Aug. 24, 2007.
Moody's affirmed UBRD's E+ bank financial strength rating with
stable outlook, as well as the bank's Not Prime short-term local
and foreign currency deposit ratings, which were not affected by
the rating review.

Moody's rating review, which primarily focused on UBRD's plans
to reduce its related-party exposure and improve profitability,
revealed that the related-party business continued to weigh
heavily on the bank's operations and to exert negative pressure
on its economic capitalization levels, while UBRD's
profitability and cost efficiency metrics, albeit showing an
improving trend, still remain modest.

Moody's recognizes UBRD's growing franchise, its historically
strong brand name in its home region of Sverdlovsk Oblast, the
consistent diversification of its operations to the SME and
retail segments and the ongoing geographical broadening of the
bank's business.  According to Moody's, an easing of the
pressure exerted by the key factors currently constraining
UBRD's ratings could exert upward pressure on the bank's deposit
ratings.

UBRD is headquartered in Yekaterinburg, Russian Federation.  At
December 31, 2007, the bank reported under IFRS total assets of
US$1.652 billion (2006: US$1.026 billion) and shareholders'
equity of US$176 million (US$102 million).  Net IFRS profits
totaled US$12.8 million in both 2007 and 2006.


UVINSKOE REPAIR: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Arbitration Court of Udmurtiya commenced bankruptcy
supervision procedure against OJSC Uvinskoe Repair-Technical
Enterprise and appointed Y. Tsapin as interim receiver.  The
case is docketed under Case No. A71-3619/2008 -G26.

Creditors have to submit proofs of claim to:

          Y. Tsapin, Interim Receiver
          Parkovyj 7-49
          Mozhga
          427791 Udmurtiya
          Russia

The Court is located at:

          The Arbitration Court of Udmurtiya
          Lomonosova Str. 5
          Izhevsk
          426004 Udmurtiya
          Russia

The Debtor can be reached at:

          OJSC Uvinskoe Repair-Technical Enterprise
          Mekhanizatorov Str. 15
          Uva
          427260 Udmurtiya
          Russia


X5 RETAIL: Retains Karusel Name as Hypermarket Brand
----------------------------------------------------
X5 Retail Group N.V. has decided to retain the Karusel brand and
to use it for all of its hypermarkets.

As announced, in addition to purchasing the entire issued share
capital in Formata Holding B.V, the owner of the Karusel
hypermarket chain, the Company has also acquired certain
intellectual property, which originally was not part of the Call
Option Agreement, including Karusel brand.

X5 has thoroughly reviewed its initial approach towards
rebranding of the acquired stores, analyzed brand awareness and
customer loyalty to the Karusel brand.  Based on the results of
this analysis, X5 has decided to retain the brand and to use it
for all of the Company's hypermarkets.

All new hypermarkets will be opened under the Karusel brand,
while rebranding of existing stores will be done gradually.

The decision to retain the brand will enable X5 to optimize the
Karusel integration process, while a single brand for all
hypermarkets means more efficiency in terms of operating the
stores and clearer value proposition for the customers.

The Company is considering using the Mercado brand for its
future projects.

X5 Retail Group plans to provide an update on the progress of
Karusel's integration and the integration plan along with the
announcement of the Company's financial results for the first
half of 2008, which is preliminarily scheduled for the end of
August.

Simultaneously X5 will provide 2008 guidance for the joint
Company.

                        About X5 Retail

Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V.
(LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm
for the group of companies that operate retail grocery stores.
The main activity of the company is the development and
operation of grocery retail stores.  The company operated
Pyaterochka and Perekrestok retail chains in Russia, including
Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan,
Samara, Ekaterinburg and Kiev, Ukraine.

                           *     *     *

X5 Retail Group N.V. continues to carry a B1 Corporate Family
Rating from Moody's Investors Service with positive outlook.

X5 Retail and its subsidiaries also carries a 'BB-' long-term
corporate credit rating from Standard & Poor's Ratings Services.
S&P said the outlook is stable.


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


ALTSTADT PAPETERIE: Creditors Must File Claims by August 23
-----------------------------------------------------------
Creditors owed money by LLC Altstadt Papeterie Bremgarten are
requested to file their proofs of claim by Aug. 23, 2008, to:

          Hartmut Andrzejewski
          Steigstrasse 10
          5233 Stilli AG
          Switzerland

The company is currently undergoing liquidation in Bremgarten
AG.  The decision about liquidation was accepted at an
extraordinary shareholders' meeting held on June 19, 2008.


DESIGN B: August 24 Set as Deadline to File Proofs of Claim
-----------------------------------------------------------
Creditors owed money by JSC Design B are requested to file their
proofs of claim by Aug. 24, 2008, to:

          Peter-Maria Brunner
          Unternbergstrasse 84
          5023 Biberstein
          Switzerland

The company is currently undergoing liquidation in Aarau.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 25, 2008.


HAUSTECHNIK ? E. BAUMGARTNER: Creditors' Claim Due by August 24
---------------------------------------------------------------
Creditors owed money by LLC Haustechnik - E. Baumgartner are
requested to file their proofs of claim by Aug. 24, 2008, to:

          Bahnhofstrasse 4
          6052 Hergiswil / NW
          Switzerland

The company is currently undergoing liquidation in Buochs.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on  May 13, 2008.


HJARTBRO JSC: Proofs of Claim Filing Deadline is August 24
----------------------------------------------------------
Creditors owed money by JSC Hjartbro are requested to file their
proofs of claim by Aug. 24, 2008, to:

          Dr. Caspar Hurlimann
          Rainstrasse 8
          8712 Stafa
          Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 3, 2008.


SEMGROUP LP: Hiland Companies Disclose US$13MM Exposure
-------------------------------------------------------
On July 22, 2008, SemGroup, L.P. and certain subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
U.S. Bankruptcy Code.  Affiliates of SemGroup, L.P. purchase
from The Hiland companies, Hiland Partners, LP and Hiland
Holdings GP, LP natural gas liquids and condensate, primarily at
their Bakken and Badlands plants and gathering systems.  As a
result, the Partnership established an allowance for doubtful
accounts and bad debt expense by approximately US$8.1 million in
the three and six month period ended June 30, 2008.

The Partnership estimates additional potential exposure of
approximately US$5.0 million with this purchaser for uninvoiced
product sales from July 1 through July 18, 2008.

The Partnership has made temporary arrangements with other third
parties for its product sales while assessing its options in
light of SemGroup's bankruptcy.  The Partnership is monitoring
the bankruptcy cases closely to pursue the best course of action
to obtain payment of the amounts owed to us and to continue
natural gas liquids and condensate sales at its Bakken and
Badlands plants and gathering systems.  This matter is not
expected to cause the Partnership to be out of compliance with
its covenants under its credit facility or impact its liquidity
position in any material respect.

Based upon information contained in available court filings made
by SemGroup, L.P., the Partnership believes that the bankruptcy
of SemGroup, L.P. may be attributable to circumstances unique to
SemGroup, L.P., including significant margin requirements for
large futures and options trading positions by SemGroup, L.P.,
which are not representative of the liquidity and financial
position of other companies in the midstream sector.
Accordingly, the Partnership believes that the circumstances
that led to the SemGroup, L.P. bad debt expense are highly
unusual and are unlikely to occur in the future with respect to
receivables from other purchasers of the Partnership's natural
gas liquids and condensate.

                       About SemGroup L.P.

SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt.  Services include purchasing,
selling, processing, transporting, terminaling and storing
energy.  SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.

SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525).  These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil Gotshal & Manges LLP.  Kurtzman Carson
Consultants L.L.C. is the Debtors' claims agent.  The Debtors'
financial advisors are The Blackstone Group L.P. and A.P.
Services LLC.  Margot B. Schonholtz, Esq., and Scott D.
Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber
Silverstein, Esq., at Potter Anderson & Corroon LLP, represent
the Debtors' prepetition lenders.

SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008.  Ernst & Young, Inc.
The CCAA stay expires on Aug. 20, 2008.

SemGroup L.P.'s consolidated, unaudited financial conditions as
of June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts.  In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.


SEMGROUP LP: Paramount Energy Discloses Financial Exposure
----------------------------------------------------------
In July 2008, SemGroup, L.P. filed a voluntary position for
reorganization under Chapter 11 of the Bankruptcy Code in the
United States Bankruptcy Court.  Paramount Energy Trust sold gas
production from certain of its Saskatchewan assets to CEG Energy
Options Inc., a Canadian subsidiary of SemGroup, and has
determined its exposure to CEG to be around US$0.2 million,
related to natural gas sales for June and a portion of July
2008.

Natural gas deliveries to CEG have been terminated and as such
there is no additional potential financial exposure for the
Trust.

                       About SemGroup L.P.

SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt.  Services include purchasing,
selling, processing, transporting, terminaling and storing
energy.  SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.

SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525).  These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil Gotshal & Manges LLP.  Kurtzman Carson
Consultants L.L.C. is the Debtors' claims agent.  The Debtors'
financial advisors are The Blackstone Group L.P. and A.P.
Services LLC.  Margot B. Schonholtz, Esq., and Scott D.
Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber
Silverstein, Esq., at Potter Anderson & Corroon LLP, represent
the Debtors' prepetition lenders.

SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008.  Ernst & Young, Inc.
The CCAA stay expires on Aug. 20, 2008.

SemGroup L.P.'s consolidated, unaudited financial conditions as
of June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts.  In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.


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


BOLSHEVIK OJSC: Proofs of Claim Filing Deadline Set August 21
-------------------------------------------------------------
Creditors of OJSC Bolshevik (code EDRPOU 00386318) have until
Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Kirovograd
          Lunacharski Str. 29
          25006 Kirovograd
          Ukraine

The Economic Court of Kiev commenced bankruptcy supervision
procedure on the company.  The case is docketed as 10/83.

The Debtor can be reached at:

          OJSC Bolshevik
          Malotimoshevka
          Novoukrainsky District
          Kirovograd
          Ukraine


ELECTRIC TECHNICAL: Creditors Must File Claims by August 21
-----------------------------------------------------------
Creditors of LLC Electric Technical Set (code EDRPOU 32333446)
have until Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Nikolaev
          Admiralskaya Str. 22
          54009 Nikolaev
          Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on July 15, 2008.
The case is docketed as 5/368/08.

The Debtor can be reached at:

          LLC Electric Technical Set
          Apartment 6
          Nikolskaya Str. 23
          Nikolaev
          Ukraine


FIRST UKRAINIAN: Fitch Affirms Individual Rating at 'D'
-------------------------------------------------------
Fitch Ratings has upgraded First Ukrainian International Bank's
National Long-term rating to 'A(ukr)' from 'A-(ukr)'.  At the
same time, Fitch affirmed FUIB's other ratings at Long-term
Issuer Default 'B', Short-term IDR 'B', Individual 'D', Support
'5', and Support Rating Floor 'No Floor'.  The Outlooks for the
Long-term IDR and National rating remain Stable.

Fitch has also affirmed the ratings of Standard Bank PLC's
US$275 million 9.75% limited recourse loan participation notes
due in February 2010 at Recovery 'RR4' and Long-term 'B'.  The
notes were issued solely to finance a loan to FUIB.

Fitch has also assigned FUIB's UAH300m Series B notes with
three-year maturity a final National Long-term 'A(ukr)'rating.

The rating upgrade reflects the continued broadening and
regional expansion of the bank's franchise, further reductions
in business concentrations, low loan impairment to date and
continued sound capitalization, which remains one of the highest
among Ukrainian banks.  It also considers the bank's funding
diversification, limited related-party exposures and reasonable
profitability.  At the same time, the ratings also reflect high
risks from the bank's rapid lending growth and weaknesses in the
operating environment.

Upside potential for FUIB's ratings could result from sustained
good asset quality during its rapid business expansion.
Downward pressure could result from weakening credit quality or
major liquidity shortfalls.

At end-Q108, FUIB was the 13th-largest bank in Ukraine, with a
2.3% market share by total assets.  FUIB's core franchise is in
the larger corporate segment, although since 2006 it has
targeted SMEs and affluent retail customers.  SCM, one of the
largest industrial conglomerates in Ukraine, is FUIB's ultimate
parent; its core businesses are metals and mining, energy and
finance with other interests in telecoms, real estate, oil
products, retail and media. SCM is ultimately controlled by
Rinat Akhmetov, a leading Ukrainian businessman.  SCM's finance
activities include Dongorbank, a regional bank focused on
eastern Ukraine; ASKA, the fourth-largest non-life insurance
company in the country; and ASKA Life, the sixth-largest life
insurer in Ukraine.


GALICH GLASS: Proofs of Claim Filing Deadline Set August 21
-----------------------------------------------------------
Creditors of LLC Galich Glass (code EDRPOU 31588702) have until
Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Odessa
          Shevchenko Avenue 4
          65032 Odessa
          Ukraine

The Economic Court of Odessa commenced bankruptcy supervision
procedure on the company on June 25, 2008.  The case is docketed
as 24/49-08-2659.

The Debtor can be reached at:

          LLC Galich Glass
          Golovkovskaya Str. 57/1
          65005 Odessa
          Ukraine


GRAN LLC: Creditors Must File Proofs of Claim by August 21
----------------------------------------------------------
Creditors of LLC Gran (code EDRPOU 31222447) have until
Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Zaporozhje
          Shaumiana Str. 4
          69001 Zaporozhje
          Ukraine

The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent on
July 10, 2008.  The case is docketed as 21/62/08.

The Debtor can be reached at:

          LLC Gran
          Rekordnaya Str. 2
          Zaporozhje
          Ukraine


INTER-PALATIUM LLC: Creditors Must File Claims by August 21
-----------------------------------------------------------
Creditors of LLC Inter-Palatium (code EDRPOU 35356576) have
until Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Nikolaev
          Admiralskaya Str. 22
          54009 Nikolaev
          Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on July 15, 2008.
The case is docketed as 5/369/08.

The Debtor can be reached at:

          LLC Inter-Palatium
          Ochakovskaya Str. 175
          Nikolaev
          Ukraine


INVESTAGRO AND K: Creditors Must File Proofs of Claim by Aug. 20
----------------------------------------------------------------
Creditors of LLC Investagro and K (code EDRPOU 33662159) have
until Aug. 20, 2008, to submit proofs of claim to:

          Victor Goruk, Liquidator
          Apartment 145
          Shevchenko Str. 37
          Zhytomir
          Ukraine

The Economic Court of Zhytomir commenced bankruptcy proceedings
against the company after finding it insolvent on July 8, 2008.
The case is docketed as 4/62-b.

The Court is located at:

          The Economic Court of Zhytomir
          Putiatinskiy Square 3/65
          10014 Zhytomir
          Ukraine

The Debtor can be reached at:

          LLC Investagro and K
          Kornin
          Popelniansky District
          Zhytomir
          Ukraine


KOLOS LLC: Creditors Must File Proofs of Claim by August 21
-----------------------------------------------------------
Creditors of Agricultural LLC Kolos (code EDRPOU 31003771) have
until Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Kharkov
          Derzhprom 8th Entrance
          Svoboda Square 5
          61022 Kharkov
          Ukraine

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent on July 9, 2008.
The case is docketed as B-50/98-08.

The Debtor can be reached at:

          Agricultural LLC Kolos
          Central Str. 7
          Komarovka
          Izium District
          64334 Kharkov
          Ukraine


KRATON OJSC: Creditors Must File Proofs of Claim by August 21
-------------------------------------------------------------
Creditors of OJSC Kraton (code EDRPOU 14314417) have until
Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Lugansk
          Geroiv VVV Square 3a
          91000 Lugansk
          Ukraine

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on May 29, 2008.
The case is docketed as 20/117b.

The Debtor can be reached at:

          OJSC Kraton
          Gorky Str. 99a
          Alchevsk
          94200 Lugansk
          Ukraine


NADEZHDA LLC: Proofs of Claim Filing Deadline Set August 21
-----------------------------------------------------------
Creditors of LLC Agricultural Sector Nadezhda (code EDRPOU
34391358) have until Aug. 21, 2008, to submit proofs of claim
to:

          The Economic Court of Kharkov
          Derzhprom 8th Entrance
          Svoboda Square 5
          61022 Kharkov
          Ukraine

The Economic Court of Kharkov commenced bankruptcy supervision
procedure on the company on July 4, 2008.  The case is docketed
as B-24/124-08.

The Debtor can be reached at:

          LLC Agricultural Sector Nadezhda
          Moscow Ave. 199-A
          61037 Kharkov
          Ukraine


PROGRESS LLC: Proofs of Claim Filing Deadline Set August 21
-----------------------------------------------------------
Creditors of LLC Progress (code EDRPOU 22092927) have until
Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Zakarpatye
          Kociubinsky Str. 2a
          Uzhgorod
          88000 Zakarpatye
          Ukraine

The Economic Court of Zakarpatye commenced bankruptcy
supervision procedure on the company on June 6, 2008.  The case
is docketed as 6/106.

The Debtor can be reached at:

          LLC Progress
          Mendeleyev Str. 3
          Mukachevo
          Zakarpatye
          Ukraine


RESOURCE LLC: Creditors Must File Proofs of Claim by August 21
--------------------------------------------------------------
Creditors of LLC Resource (code EDRPOU 30489939) have until
Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Odessa
          Shevchenko Avenue 4
          65032 Odessa
          Ukraine

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent on July 8, 2008.
The case is docketed as 2/132-08-2741.

The Debtor can be reached at:

          LLC Resource
          Armeyskaya Str. 15
          Apartment 8
          Odessa
          Ukraine


SERDIUKOVKA BREADRECEIVING: Creditors' Claims Due August 21
-----------------------------------------------------------
Creditors of OJSC Serdiukovka Breadreceiving Enterprise (code
EDRPOU 05395470) have until Aug. 21, 2008, to submit proofs of
claim to:

          The Economic Court of Cherkassy
          Shevchenko Avenue 307
          18005 Cherkassy
          Ukraine

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company after finding it insolvent on May 6, 2008.
The case is docketed as 14/1911.

The Debtor can be reached at:

          OJSC Serdiukovka Breadreceiving Enterprise
          Zheleznodorozhnaya Str. 1
          Serdiukovka
          Smila District
          Cherkassy
          Ukraine


SONKATEL INDUSTRY: Creditors Must File Claims by August 21
----------------------------------------------------------
Creditors of LLC Sonkatel Industry (code EDRPOU 34600470) have
until Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Kiev
          B. Hmelnitskij Boulevard 44-B
          01030 Kiev
          Ukraine

The Economic Court of Kiev has commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 15/767-b.

The Debtor can be reached at:

          LLC Sonkatel Industry
          Academic Zabolotny Str. 20-A
          03178 Kiev
          Ukraine


TECHCABLE UKRAINE: Creditors Must File Claims by August 21
----------------------------------------------------------
Creditors of LLC Techcable Ukraine (code EDRPOU 32205375) have
until Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Kiev
          B. Hmelnitskij Boulevard 44-B
          01030 Kiev
          Ukraine

The Debtor can be reached at:

          LLC Techcable Ukraine
          Apartment 50
          Raduzhnaya Str. 33
          02218 Kiev
          Ukraine


VASHKOVTSY CANNERY: Proofs of Claim Filing Deadline Set Aug. 21
---------------------------------------------------------------
Creditors of OJSC Vashkovtsy Cannery (code EDRPOU 00380847) have
until Aug. 21, 2008, to submit proofs of claim to:

          The Economic Court of Chernovcy
          O. Kobylianska Str. 14
          58000 Chernovcy
          Ukraine

The Economic Court of Chernovcy commenced bankruptcy supervision
procedure on the company on June 17, 2008.  The case is docketed
as 10/138/B.

The Debtor can be reached at:

          OJSC Vashkovtsy Cannery
          Sobornaya Str. 39-B
          Vashkovtsy
          58210 Chernovcy
          Ukraine


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


ANY SERVICE: Taps Administrators from Smith & Williamson
--------------------------------------------------------
Roger Tulloch and Robert William Leslie Horton of Smith &
Williamson Ltd. were appointed joint administrators of Any
Service Bureau Ltd. (Company Number 05519291) on July 25, 2008.

Smith & Williamson -- http://www.smith.williamson.co.uk/--
provides investment management, financial advisory and
accountancy services to private clients, professional practices,
mid to large corporates and non-profit organizations.

The company can be reached at:

          Any Service Bureau Ltd.
          c/o Smith & Williamson Ltd.
          No. 1 Bishops Wharf
          Walnut Tree Close
          Guildford
          GU1 4RA
          England


ARD LTD: Brings in Joint Administrators from Baker Tilly
--------------------------------------------------------
Philip Pierce and Mark Ranson of Baker Tilly Restructuring and
Recovery LLP were appointed joint administrators of ARD (Russell
Dykes) Ltd. (Company Number 04137834) on July 29, 2008.

Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing
and other services for mid-cap and smaller publicly listed
companies and private companies, particularly those expanding
into new foreign markets.  Services include business and
financial planning, tax-related services, corporate finance,
litigation support, turnaround services, and technology
consulting.

The company can be reached at:

          ARD (Russell Dykes) Ltd.
          Knedlington Road Industrial Estate
          Howden
          East Yorkshire
          DN14 7HZ
          England


BEANSCENE LTD: KPMG Set Aug. 15 as Bid Submission Deadline
----------------------------------------------------------
Companies interested in acquiring Beanscene Ltd. have until
Friday, Aug. 15, 2008, to submit their bids, the Scotsman
reports citing administrator KPMG.

Blair Nimmo, joint administrator and head of restructuring for
KPMG in Scotland, disclosed they have received almost 150
expressions of interest for the business, which went into
administration following a funding failure.

"The Beanscene brand is very strong and this has been reflected
in the support provided to date by employees, landlords,
suppliers and customers, as well as in the number of inquiries
we have received about the business ? which now stands at almost
150," Mr. Nimmo was quoted by the Scotsman as saying.

According to the report, Beanscene founder Gordon Richardson,
who quit and sold the business five months ago to Tinderbox
after a boardroom row, is among the 150 potential buyers,
although he said "what it is going to cost is not that clear
yet.  We need to look at what situation the company is in at the
moment."

Mr. Richardson, the report relates, is seeking to regain control
of Beanscene, which has 14 outlets and 142 staff.  He intends to
transform the business into an "evening destination" and music
venue rather than an on-the-go coffee chain like Starbucks or
Costa, the report adds.

"The investors are no longer in the business and the board is
behind my ideas.  Beanscene is not Starbucks, Costa or Caffe
Nero ? it's more of an environmental experience with a big
commitment to music.  It seems to me that I am closer to the
business as it stands than other prospective buyers," Mr.
Richardson told the Scotsman.

As reported in the Troubled Company Reporter-Europe on Aug. 1,
2008, Beanscene called in Blair Nimmo and Tony Friar of KPMG LLP
as joint administrators after its new owners failed to proceed
with an additional investment funding.

Following the transfer of Beanscene's business to its new owners
in April 2008, a significant injection of funds was made.

However, Beanscene said that with an unexpected change in
circumstances, the new owners were unable to make further
planned cash injections.

The company's GBP4 million revenue from its 14 shops was not
enough to sustain its overhead base.

Headquartered in Glasgow, Scotland, Beanscene Ltd. --
http://www.beanscene.com/-- is a small chain of local coffee
houses, established to provide a laid back alternative to the
tidal wave of brash city center coffee chains.


CHESAPEAKE CORP: S&P Cuts Rating to 'CCC+', on CreditWatch Neg
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Richmond, Va.-based Chesapeake Corp.  The corporate credit
rating was lowered to 'CCC+' from 'B'.  The ratings remain on
CreditWatch, where they were placed on July 2, 2008, with
negative implications.

The downgrade reflects S&P heightened concern regarding
Chesapeake's viability as a going concern as disclosed in its
recent quarterly financial filing.

"Ongoing earnings pressures have led to the high likelihood of
further covenant violations, which if not waived or amended
could lead to a default under the credit agreement and a cross-
default with other outstanding debt," credit analyst Andy
Sookram said.

As a result, the company will need to either seek continued
covenant relief or successfully execute on its previously
announced refinancing plan in the near term, which includes an
exchange of its existing notes for new debt and equity.

In resolving the CreditWatch listing, S&P will closely monitor
the company's near-term liquidity position relative to potential
covenant violations and its refinancing plan.


CMS REFRIGERATION: Taps Smith & Williamson to Administer Assets
---------------------------------------------------------------
Anthony Cliff Spicer and James Money and Henry Anthony Shinners
of Smith & Williamson Ltd. were appointed joint administrators
of CMS Refrigeration Ltd. (Company Number 00928386) on July 31,
2008.

Smith & Williamson -- http://www.smith.williamson.co.uk/--
provides investment management, financial advisory and
accountancy services to private clients, professional practices,
mid to large corporates and non-profit organizations.

The company can be reached at:

          CMS Refrigeration Ltd.
          Crown House
          151 High Road
          Loughton
          Essex
          IG10 4LG
          England


ENTERTAINMENT DISTRIBUT'N: Hires Administrators from BDO Stoy
-------------------------------------------------------------
David H. Gilbert and Martha H. Thompson of BDO Stoy Hayward
LLP,were appointed joint administrators of Entertainment
Distribution Services Ltd. (Company Number 04276521) on July 30,
2008.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality.  The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.


ENGLISH COURTYARD: Calls in Joint Administrators from BDO Stoy
--------------------------------------------------------------
Martha Thompson and Mark Shaw of BDO Stoy Hayward LLP were
appointed joint administrators of English Courtyard Developments
Ltd. (Company Number 01143895) on July 29, 2008.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality.  The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.


EUROSAIL-UK: S&P Puts BB/BB-/B Ratings on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch
with negative implications its ratings on the class D1a, D1c,
DTC, E1c, ETc, and FTc notes issued by Eurosail-UK 2007-1NC PLC.
The other notes are unaffected by this rating action.

The CreditWatch placements follow an initial review of the most
recent performance data received for Eurosail-UK 2007-1NC.

On the June 2008 interest payment date, the transaction drew
GBP579,916 from its reserve fund, which represents 12.8% of the
fund's opening quarter reserve fund balance.  The current
reserve fund balance of GBP3,970,084 represents 0.72% of the
outstanding note balance.

In the transaction's sixth quarter, the coupon on the class A3c
detachable A coupon notes will step up, rising to 1.48% from
1.35% and placing further strain on excess spread.  This coupon
will continue to step up in future quarters, to 2% in Q7, 2.43%
in Q8 and Q9, 2.56% in Q10, 2.90% in Q11, and then 3.24% in Q12.
On the assumption that performance of the collateral doesn't
improve, this will continue to place the cash flows in this
transaction under pressure and S&P expects to see a further
reserve fund draw on the September 2008 interest payment date.

As of June 2008, 90+ day delinquencies for Eurosail-UK 2007-1NC
increased to 20.92% from 18.79% as of March 2008.  Total losses
in Q2 were GBP838,758 with cumulative losses now at 0.18% of the
initial pool balance.  The weighted-average loss severity in the
current period was 24.35%.

S&P will carry out a new credit and cash flow analysis based on
loan-level data for this transaction and will publish the
results, together with a resolution of the CreditWatch
placements, in due course.

Ratings Placed On CreditWatch With Negative Implications:

  Eurosail-UK 2007-1NC PLC

   -- GBP328.6 Million And EUR552.15 Million Mortgage-Backed
      Floating-Rate Notes And An Overissuance Of GBP28.7 Million
      Excess-Spread-Backed Floating-Rate Notes

   Class      Rating To               Rating From
   -----      ---------               -----------
   D1a        BBB/Watch Neg                 BBB
   D1c        BBB/Watch Neg                 BBB
   DTC        BBB+/Watch Neg                BBB+
   E1c        BB/Watch Neg                  BB
   ETc        BB-/Watch Neg                 BB-
   FTc        B/Watch Neg                   B


GOALS 2006-1: S&P Removes Class D Notes BB Rating From WatchPos.
----------------------------------------------------------------
Standard & Poor's Ratings Services has raised and removed from
CreditWatch with positive implications its credit ratings on the
class B and C notes issued by GOALS 2006-1 Ltd.  The ratings on
the class D notes have been removed from CreditWatch positive
and affirmed.  At the same time the class A notes were affirmed.

The notes were initially placed on CreditWatch positive on
May 8.

The rating actions follow a full credit and cash flow analysis
of the most recent information that S&P received.

S&P's analysis has shown that the performance of the underlying
collateral has been robust with very low levels of delinquencies
and defaults.  All defaults to date have been cured by excess
spread.  The current level of protection available to the class
B and C notes from subordination and the reserve fund has
considerably increased.

In July 2008, the level of credit enhancement available to the
class B notes had increased to 33.40% from 9.25% at closing and
for the class C notes it had increased to 12.64% from 4.25% at
closing.  This supported S&P's raising of the credit ratings on
those classes and the affirmation of the class A and D notes.

The EUR250 million transaction, which closed in August 2006, is
backed by a pool of German equipment lease receivables
originated by Grenke Leasing AG.

  Ratings List:

  Class                  Rating
              To                From

  GOALS 2006-1 Ltd.

    -- EUR250 Million Floating-Rate Asset-Backed Notes

  Ratings Raised And Removed From CreditWatch Positive

  B           AAA               A/Watch Pos
  C           A                 BBB/Watch Pos

  Rating Affirmed And Removed From CreditWatch Positive

  D           BB                BB/Watch Pos

  Rating Affirmed

  A           AAA


HURST HOUSE: Appoints Joint Administrators from PwC
---------------------------------------------------
Robert Nicholas Lewis and Derek Anthony Howell of
PricewaterhouseCoopers LLP were appointed joint administrators
of Hurst House on the Marsh Ltd. (Company Number 05618453) and
Hurst House Laugharne Ltd. (Company Number 06373686) on July 29,
2008.
PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--
provides auditing services, accounting advice, tax compliance
and consulting, financial consulting and advisory services to
clients in a variety of industries.


J&A PLASTICS: Acquired by Almaak International
----------------------------------------------
J&A Plastics (Krefeld), which is in administration, has been
acquired by Almaak International.  The remaining 65 employees
and tangible assets were absorbed by the new owners.  J&A
meanwhile will retain control of the property.

With its new acquisition, Almaak expects an annual sales of
EUR24 million.  The company will now concentrate on toll
production and terminate J&A's compounding program.

J&A Plastics Benelux in Eupen/Belgium is not affected with the
insolvency as it is independent of the German company.


M & A ROARTY: Brings in Joint Administrators from Vantis
--------------------------------------------------------
Frank Wessely and Peter James Hughes-Holland of Vantis Business
Recovery Services were appointed joint administrators of M & A
Roarty Construction Ltd. (Company Number 02287945) on July 25,
2008.

Headquartered in United Kingdom, Vantis Plc (fka Vantis
Numerica) -- http://www.vantisplc.com/-- provides accounting,
business and tax advisory services in the United Kingdom.

The company can be reached at:

          M & A Roarty Construction Ltd.
          c/o Vantis Business Recovery Services
          81 Station Road
          Marlow
          Buckinghamshire
          SL7 1NS
          England


PROMINENT CMBS: S&P Holds Class E Floating-Rate Notes BB Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its ratings on
all the classes of commercial mortgage-backed floating-rate
notes issued by Prominent CMBS Funding No. 1 PLC.

According to the latest quarterly investor report issued on June
20, 2008 by the servicer, Bank of Scotland PLC, the collateral
pool comprised 23 loans with an aggregate balance of GBP631.3
million.  This is down from 33 loans with a balance of GBP1
billion at closing.  As a result of loans redeeming and
principal payments being applied to the notes sequentially,
relative credit enhancement has improved for all the notes
except for the class D notes.  Credit enhancement for the class
D notes has decreased as excess spread has been used to redeem
the class E notes.

The servicer reported a weighted-average interest-coverage ratio
(ICR) of 1.62x (with 1x as the lowest ICR and 5x as the
highest), up from 1.43x at closing and a weighted-average
loan-to-value (LTV) ratio of 62.2% (with 13.5% as the lowest LTV
ratio and 93.3% as the highest), down from 72.5% at closing.

The collateral pool is now secured on 180 properties located
across the U.K.  The largest loan accounts for 12.7% of the
aggregate collateral pool balance and the five largest for
52.5%.

One loan (GBP78 million, 12.4% of the current collateral pool,
and the second-largest loan in the pool) has been designated by
the servicer as impaired with no loss since October 2007 due to
a technical breach of the ICR covenant (the actual ICR is 1x
compared with an ICR covenant of 1.25x).  However, the actual
ICR of the loan has remained unchanged since closing.  Any
shortfall in income to service debt is guaranteed by the loan
sponsor, a joint venture partnership.  All other loans in the
pool are current and performing in line with S&P's expectations.

Six loans (14% of the current collateral pool) mature by the end
of 2009, and S&P has considered the potential refinancing risk
of these loans in S&P's analysis.

The servicer retains significant flexibility to make further
advances and amendments to the loan terms.  Several loans have
seen maturity dates extended by the servicer.  All amendments to
the loan terms are subject to certain pool tests, including:

   -- Pool adjustment criteria, which include: (i) a
      weighted-average LTV ratio equal to or less than 80%; (ii)
      an ICR of at least 1.3x; (iii) a weighted-average margin
      equal to or higher than 1%; and (iv) limits regarding
      property type and geographical distribution;

   -- Additional pool adjustment criteria restricting the total
      debt of a single borrower;

   -- Limits on the individual loan financial ratios to a
      maximum LTV ratio of 85% and minimum ICR of 1.1x; and

   -- The weighted-average remaining loan term being no less than
      10 years, subject to no loan having an expiry date beyond
      December 2030.

All the pool tests have been met since closing.

Overall, the transaction performance has improved since closing.
However, as this transaction allows the issuer to dynamically
manage the collateral pool, key credit metrics such as the ICR
and LTV ratio could migrate to the limits of the pool adjustment
criteria.  Therefore, at this stage, S&P considers an
affirmation of the ratings to be appropriate.

  Prominent CMBS Funding No. 1 PLC:

    -- EUR584 Million And GBP600 Million Mortgage-Backed
       Floating-Rate Notes

  Ratings Affirmed:

      Class           Rating
      -----           ------
      A1               AAA
      A2               AAA
      B                AA+
      C                A
      D                BBB
      E                BB


S GOLD: Taps Joint Administrators from BDO Stoy Hayward
-------------------------------------------------------
David H. Gilbert and Martha H. Thompson of BDO Stoy Hayward LLP
were appointed joint administrators of S Gold and Sons Ltd.
(Company Number 00861869) on July 30, 2008.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality.  The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.


WARNER MUSIC: International Revenue Up 17.2% for Third Qtr. 2008
----------------------------------------------------------------
Warner Music Group Corp. reported its third quarter 2008
financial results for the period ended June 30, 2008.

"This quarter, we continued to outperform our competitors, even
in the midst of a challenging recorded music environment," said
Edgar Bronfman, Jr., Warner Music Group's Chairman and CEO.  "We
continue to advance our strategy to lead the recorded music
industry's transition with new business models, key partnerships
and successful A&R investments.  As we transform the business to
position it for future growth in an evolving industry, we remain
focused on driving profitability and cash flow, while prudently
managing capital and costs."

Michael Fleisher, Warner Music Group's Executive Vice President
and CFO, added: "Benefits from the steps we've taken to increase
our financial flexibility were evidenced this quarter by our
building cash balance and rising quarterly year-over-year Free
Cash Flow.  Our capital deployment strategy designed to improve
shareholder returns by conserving cash and sustaining A&R
investment levels remains a priority."

                    Third Quarter Results

For the third quarter 2008, revenue grew 5.5% to US$848 million
from US$804 million in the prior-year quarter, and fell 1.1% on
a constant-currency basis.  This performance continues to
reflect the ongoing transition in the recorded music industry
characterized by a shift in consumption patterns from physical
sales to new forms of digital music and the continued impact of
digital piracy.  Domestic revenue declined 6.5%.  International
revenue grew 17.2%, and grew 3.6% on a constant-currency basis.
On a constant-currency basis, revenue grew in Europe and Canada.

Operating income from continuing operations grew 10.9% to US$51
million from US$46 million in the prior-year quarter and
operating margin from continuing operations increased 0.3
percentage points to 6.0%.  OIBDA from continuing operations
increased 7.4% to US$116 million from US$108 million in the
prior-year quarter and OIBDA margin from continuing operations
grew 0.3 percentage points to 13.7%.  Operating income,
operating margin, OIBDA and OIBDA margin from continuing
operations for the third quarter of fiscal 2007 reflected the
net benefit of US$6 million from the Prior-Year Items.

Loss from continuing operations was US$9 million, or US$0.06 per
diluted share for the quarter, an improvement from a loss of
US$16 million, or US$0.11 per diluted share in the prior-year
quarter.  The net benefit of US$6 million from the Prior-Year
Items amounted to US$0.04 per diluted share.

The company reported a cash balance of US$338 million as of
June 30, 2008, an increase from the March 31, 2008 balance of
US$249 million, which rose from the Dec. 31, 2007 balance of
US$160 million.  As of June 30, 2008, the company reported total
long-term debt of US$2.27 billion and net debt (total long-term
debt minus cash) of US$1.93 billion.

For the quarter, net cash provided by operating activities was
US$89 million.  Free Cash Flow (defined as cash flow from
operations less capital expenditures and cash paid or received
for investments) was US$93 million, compared to Free Cash Flow
of US$57 million in the comparable fiscal 2007 quarter.
Unlevered After-Tax Cash Flow (defined as Free Cash Flow
excluding cash interest paid) was US$140 million, compared to
Unlevered After-Tax Cash Flow of US$105 million in the
comparable fiscal 2007 quarter.

Recorded Music

Revenue from the company's Recorded Music business increased
5.1% from the prior-year quarter to US$686 million, and was down
1.0% on a constant-currency basis.  The decline in constant-
currency revenue primarily reflected strength in Europe offset
by declines in the U.S., Asia-Pacific and Latin America.  Year-
over-year revenue increased in the international physical
Recorded Music business and the global digital Recorded Music
business on a constant-currency basis.

Recorded Music digital revenue of US$156 million grew 39.3% over
the prior-year quarter and represented 22.7% of total Recorded
Music revenue.  Domestic Recorded Music digital revenue amounted
to US$101 million or 31.7% of total domestic Recorded Music
revenue.  Digital sales strength was primarily driven by growth
in global online downloads, and to a lesser extent growth in
international mobile.

Major sellers in the quarter included titles from Madonna,
Disturbed, Plies, Luis Miguel and Frank Sinatra.  International
Recorded Music revenue climbed 19.2% from the prior-year quarter
to US$367 million, and rose 5.1% on a constant-currency basis,
while domestic Recorded Music revenue fell 7.5% from the prior-
year quarter to US$319 million.

The constant-currency growth in international Recorded Music
revenue in the quarter was the result of increases in the U.K.,
France and Germany.  Gains in international revenue were
attributable to improved local repertoire and international
releases as compared to the prior-year quarter and a
contribution from international touring and management
businesses.

Year-over-year revenue differences in the domestic Recorded
Music business were due to the timing of releases and declines
in the physical business, which are not currently being offset
by growth in the digital business.  In addition, domestic
retailers have continued to more actively manage their inventory
levels in response to the tougher economy and credit markets as
well as the changing underlying demand for physical recorded
music product.

Quarterly Recorded Music operating income remained flat at US$66
million, resulting in an operating margin from continuing
operations of 9.6% compared to 10.1% in the prior-year quarter.
Recorded Music OIBDA from continuing operations remained flat at
US$110 million for the quarter.  Recorded Music OIBDA margin
from continuing operations contracted 0.8 percentage points to
16.0% from the prior-year quarter.  Recorded Music operating
income, OIBDA, operating margin and OIBDA margin from continuing
operations for the third quarter of fiscal 2007 reflected a
portion of the Prior-Year Items  -- a US$49 million benefit
related to our settlement with Bertelsmann AG regarding Napster
and US$33 million in expenses related to the company's fiscal
2007 realignment initiatives.

Music Publishing

Music Publishing revenue in the quarter increased 7.0% from the
prior-year quarter to US$168 million, and was down 0.6% on a
constant-currency basis.  Music Publishing revenue was flat
domestically, and grew 11.1% internationally, but declined 1.1%
internationally on a constant-currency basis.  Digital revenue
from Music Publishing amounted to US$10 million, representing
6.0% of total Music Publishing revenue.

On a constant-currency basis, the decline in mechanical revenue
of 14.3% was largely offset by a 7.9% increase in performance
revenue, a 6.3% rise in synchronization revenue, and a strong
increase in digital revenue.  Mechanical revenue weakness
reflected the industry-wide decline in physical record sales.

Music Publishing operating income amounted to US$15 million,
down 16.7% from US$18 million in the prior-year quarter,
resulting in an operating margin of 8.9%, down 2.5 percentage
points from the prior-year quarter.  Music Publishing OIBDA was
flat at US$33 million for the quarter and OIBDA margin of 19.6%
declined 1.4 percentage points from the prior-year quarter.
Music Publishing operating income, OIBDA, operating margin and
OIBDA margin for the third quarter of fiscal 2007 reflected a
portion of the Prior-Year Items -- a US$3 million benefit
related to our settlement with Bertelsmann AG regarding Napster
and US$1 million in expenses related to the company's fiscal
2007 realignment initiatives.

Warner Music Group Corp. -- http://www.wmg.com/-- (NYSE: WMG)
is a publicly traded in the United States.  With its broad
roster of new stars and legendary artists, Warner Music Group is
home to a collection of the best-known record labels in the
music industry including Asylum, Atlantic, Bad Boy, Cordless,
East West, Elektra, Lava, Nonesuch, Reprise, Rhino, Roadrunner,
Rykodisc, Sire, Warner Bros. and Word.  Warner Music
International, a leading company in national and international
repertoire, operates through numerous international affiliates
and licensees in more than 50 countries.  Warner Music Group
also includes Warner/Chappell Music, one of the world's leading
music publishers, with a catalog of more than one million
copyrights worldwide.

Outside the United States, the company has two subsidiaries in
Austria, one in Nova Scotia and another in Luxembourg.  It has
Latin American operations in Argentina, Brazil and Chile.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 2, 2008, Standard & Poor's Rating Services affirmed its
ratings on Warner Music Group, including its 'BB-' corporate
credit rating, based on S&P's expectation that the company will
have sufficient resources to meet its financial covenant step-
downs over the near term.  S&P also removed all ratings from
CreditWatch with negative implications, where they were placed
on Feb. 22, 2007.


WENTWORTH MILTON: Appoints Administrators from Grant Thornton
-------------------------------------------------------------
Trevor Patrick O'Sullivan and Nigel Morrison of Grant Thornton
U.K. LLP were appointed joint administrators of Wentworth Milton
Mount Ltd. (Company Number 00101424) on July 28, 2008.

Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/--
provides value-added professional services as assurance
services, compensation and benefits, merger and acquisition
transaction services, management advisory services, tax
consulting and valuation services.

The company can be reached at:

          Wentworth Milton Mount Ltd.
          College Road
          Bournemouth
          Dorset
          BH5 2DY
          England


* Fitch Says Euro Automaker Credit Profile Improvements May Slow
----------------------------------------------------------------
Fitch Ratings says it is increasingly concerned that
improvements in European automotive manufacturers' credit
profiles - as seen in their solid H108 results - may slow
sharply or even start to reverse in the next six to 18 months.
However, some of the industry's growing challenges are cyclical
and should not lead to an immediate revision of ratings across
the board.

"European carmakers' cautious statements about their
expectations for H208 and 2009 have overshadowed the more
robust-than-expected H108 results and recent improvement in the
sector's profitability," says Emmanuel Bulle, Senior Director in
Fitch's European Corporates group.  "Market conditions have
clearly deteriorated over the past 12 months and are taking
their toll on recent restructuring measures."

In H108, the majority of European OEMs reported higher operating
margins than in H107: Fiat Spa ('BBB-'/'F3'/Outlook Stable) at
5.9% in H108 versus 5.3% in H107; Peugeot SA ('A-'/'F2'/Outlook
Stable) at 3.6% versus 2.7%; Renault SA ('BBB+'/Outlook Stable)
at 4.1% versus 3.9% and Volkswagen Group ('A-'/'F2'/RWN) at 6.1%
versus 5.1%.  As previously noted, European manufacturers'
financial profiles have strengthened, thanks to various cost-
saving efforts including reduced sourcing, labor costs, capital
expenditure and R&D investments.  Most companies have also
expanded geographic diversification, increased their product
offerings to broaden their customer base, established lower-cost
production bases, formed numerous alliances and signed
technological agreements.

However, after a few years of continuous improvements in
operating performance, it is becoming clear that growth rates
have peaked.  Although part of this is seasonal, cuts in
production and negative changes in working capital reported by
several groups in H108 constitute an early warning of the
deteriorating trend seen by carmakers.  Indeed, these negative
swings mostly reflect increased inventories because of slowing
demand, and represent an opportune reminder of the auto
industry's cyclical patterns.

Cautious outlook statements accompanying European OEMs' H108
results confirm Fitch's concerns about a deteriorating
environment - cyclical and structural - undermining recent
improvements in their financial profiles.  "BMW's and Daimler
AG's revised earnings expectations as well as Renault's
acknowledgment that it will not meet its volume growth target by
2009 are testaments to the deterioration in the global
conditions faced by car manufacturers," says Mr Bulle.  BMW now
forecasts a pre-tax profit margin of at least 4%, well below its
2007 margin of 6.9%, while the group previously expected to
exceed last year's pre-tax profit.  Likewise, Daimler AG
('A-'/'F2'/Outlook Positive) said it now expects to report EBIT
of more than EUR7 billion in 2008, excluding effects from
associate Chrysler, compared with earlier profit forecasts that
were significantly higher than last year's EUR7.7 billion.

Importantly, because Fitch rates "through the cycle", the re-
surfacing of negative cyclical patterns should not have an
immediate substantial impact on ratings across the board.
Overall, Fitch has not made a broad rating upgrade of car
manufacturers as a result of stronger demand, improved financial
metrics or recent successful restructuring actions, as some of
these benefits only allowed manufacturers to catch up with
deteriorating credit metrics.  Conversely, the agency does not
expect slowing demand and moderate deterioration in key credit
ratios to trigger negative rating revisions across the board -
provided the slowdown remains cyclical.

Fitch views the current demand slowdown in western Europe and
the US as typical of a cyclical decline.  However, other
negative factors have substantially burdened the credit profiles
of European OEMs in the past 12-18 months.  Headwinds include
rapidly rising raw material prices, unfavorable currency moves,
increasingly more expensive emission legislations and slowing
contribution from financial services operations on the back of
falling residual values, mostly in the US.  It is not yet clear
to what extent these headwinds are structural and whether they
will be a long-lasting burden for auto manufacturers.
Historically, the auto industry has demonstrated a strong
capacity to adapt to long-term challenging conditions, survive
in a worsening environment and rebound adequately.  Fitch
cautions, nonetheless, that rating pressure is likely to
increase should deterioration accelerate faster than it would
expect in a cyclical slowdown.


* UK Loses GBP600 Billion of Wealth Over Credit Crunch, PwC Says
----------------------------------------------------------------
The on-going global credit crunch has wiped-out around GBP600
billion of UK wealth due to the fall in house prices and equity
values, according to analysis by PricewaterhouseCoopers LLP
economists.

This level of wealth destruction is expected to lead to around
GBP12-16 billion (around 1% of GDP) of lost expenditure over the
next twelve to eighteen months as the negative stock market and
housing wealth effects feed through to reduced spending by UK
businesses and households.

The PricewaterhouseCoopers analysis focuses on the impact of
lost wealth related to housing and finance as these sectors have
been most directly and most severely impacted by the credit
crunch over the twelve months ending June 2008.

John Hawksworth, head of macroeconomics at
PricewaterhouseCoopers LLP commented:

"The fall in UK house prices that began in September of 2007 has
driven down the level of wealth tied up in UK housing by around
GBP400 billion, representing a 9% fall year-on-year of the value
of the UK's housing stock over the twelve month period to June
2008.

"In addition to this, the drop in value of finance related
equities has generated a loss of stock market capitalization of
around GBP200 billion for finance related firms in the year to
June 2008.  The combined loss of national wealth of around
GBP600bn will add to downward pressures on UK economic growth
over the next year."

Based on published research into the relationship between the
change in national wealth and expenditure PricewaterhouseCoopers
estimate that the GBP600 billion fall in UK wealth could reduce
UK expenditure by GBP12-16 billion (around 1% of GDP).  The
lagged effect of reduced wealth on spending means this reduction
would take a year or so before the full effect was felt, a view
that is incorporated into PricewaterhouseCoopers assessment that
UK household spending growth will slow to just 0.5% in 2009.

The analysis is a conservative estimate of the financial impact
of the credit crunch on UK wealth and expenditure.  It is
restricted to the housing and finance related sectors, therefore
excluding the impact and any spill-over into other related
sectors.  Also, it compares the June 2008 values for housing and
stock market with those of a year earlier.  However, in the
absence of the credit crunch the expectation might have been
that both house prices and share prices would have continued to
trend upwards, thus leaving a larger gap between where the
selected measures currently stand and where they would have been
without the credit crunch.

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


* KPMG: Pensions Crunch Looming, Trustees to Demand More Cash
-------------------------------------------------------------
Despite deteriorating market conditions adding around GBP20
billion to the FTSE 100's pension accounting deficits in the
first half of this year, around six out of ten FTSE 100
companies are potentially paying too much into their pension
schemes, with up to half overpaying by over GBP20 million a
year, according to KPMG's 2008 Pensions Repayment Monitor.

And the situation could get worse as nervous pension trustees,
rattled by the current market turmoil, may demand more funds to
shore up the growing perceived deficits.

Pensions partner, Mike Smedley, commented: "We are heading for a
'pensions crunch' as nervous trustees demand more cash from
companies just as those companies have less of it."

The demands stem from an understandable desire to take a more
cautious view in the current uncertain economy.  However, cash
diverted into the pension scheme is not available to the rest of
the business and KPMG's 2008 Pensions Repayment Monitor suggests
that six out of ten FTSE100 companies are paying more into their
pension schemes than is actually required to clear the deficits
within a reasonable (10 years) time period.

"It's all a question of timing," added Mr. Smedley.  "At a time
when cash is plentiful, using it to clear debt can be a very
good idea ? similar to a householder flush with cash deciding to
pay off a mortgage early ? but as the credit squeeze tightens,
financial obligations need to be prioritized and if pensions can
be met over a longer time period, that can reduce the demand for
cash outgoings today.  This flexibility ought to improve the
long-term health of companies which is the pension trustees'
primary interest."

                   Results of the 2007 Survey

The 2008 KPMG Pensions Repayment Monitor's analysis of year end
accounts shows that 70 per cent of FTSE 100 companies with
defined benefit pension schemes could pay off their pension
deficits (calculated at the end of 2007) in a single year using
pure discretionary cash flows.  This is an improvement on 2006
when 50 per cent of companies could have done so and on 2007
when the figure was 60 per cent.  Over 2007, the accounting
deficits of the FTSE 100 fell by around GBP40 billion.

And extending the time period to three years gave an even more
positive figure with 80 per cent of the sample able to clear
deficits in this time frame, up from 70 per cent in both the
previous surveys.

In addition, the number of companies recording an accounting
surplus in the 2008 sample increased to 21 compared with only 9
in the 2007 survey.

Although the proportion of those companies able to pay off
deficits quickly increased, 15 per cent of the sample are unable
to clear them within any realistic time frame without diverting
cash from elsewhere.  For this group, pensions remain a
significant challenge.

For the first time, the KPMG Pensions Repayment monitor examined
the FTSE 250, where it revealed that 60 per cent of those with
defined benefit pension schemes could clear their deficits from
discretionary cashflow within one year and 70 per cent within
three years.  A limited analysis of the 2006 sample conducted
for comparative purposes suggests that just 25 per cent of these
companies could have cleared their deficits within one year at
that time and around 50 per cent could do so over a three year
period.

                    A trend set to continue?

The decline in the markets since the end of 2007, (the FTSE 100
index was at 6,456.90 on Dec. 31, 2007 and at 5,477.5 on Aug. 7,
2008) has led to an increase in pension deficits.  However,
close to six out of ten FTSE 100 companies are still paying more
than is required to pay off their deficits over ten years.

As well as market movements, pension liabilities are highly
sensitive to the assumptions made about the longevity of the
current and future pensioners the scheme is providing for.  The
pensions regulator is putting pressure on trustees to use much
stronger longevity assumptions for funding purposes which could
increase total liabilities by around GBP40 billion.

Mr. Smedley commented: "A sustained fall in the markets will
inevitably lead to an increase in assessed pension deficits and
increasing mortality assumptions will add further pressure.  How
the pension trustees react to this can have a profound effect on
a company.  Additional cash pumped in now may make the trustees
feel better but in practice will make little difference relative
to the impact of market movements and long-term company
strength.  Trustees are very long-term creditors and need to
work with companies to develop a coherent strategy to manage
pensions through these turbulent times."

                      The Buyout Option

The market for "buyout" (where a company pays a third party
insurer to take on the pension scheme liabilities) has grown
significantly recently as a result of increased competition
among buyout providers and the impact that credit conditions
have had on pricing.

For trustees and companies wishing to secure pension liabilities
and their inherent risk, buyout can be an attractive option.
But, for many companies, a full buyout may not always offer best
value or the most efficient method for managing pension risk and
pension financing.  A number of companies are beginning to
implement actions themselves similar to those taken by those
insurers offering formal buyouts to manage pension risk, rather
than go to a third party to insure their liabilities in full.

Mr. Smedley concluded: "While a buyout of pension liabilities
can be the right solution in some circumstances and many
companies and pension trustees are actively considering it,
buyout is not a panacea but one of many ways to tackle pension
risks.  In some ways buyout could even be seen as a last resort
for strong companies who cannot reach an efficient funding and
investment strategy with their trustees."

The 2008 KPMG Pensions Repayment Monitor "Taking control of
pensions financing" is available at www.kpmg.co.uk

KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit,
and tax-related services to customers in such target industries
as banking, media and entertainment, consumer products, health
care providers, insurance, and pharmaceuticals.


                             *********

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

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

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

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

                             *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy
Agravante, Julybien Atadero, Marie Therese Profetana and Peter
A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

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

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


                  * * * End of Transmission * * *