---

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

                           E U R O P E

          Thursday, January 22, 2009, Vol. 10, No. 15

                            Headlines

A U S T R I A

GOLDSTARS TOURISTIK: Claims Registration Period Ends Feb. 3
KRIEGER HAUSTECHNIK: Claims Registration Period Ends February 3
MOTECH LLC: Claims Registration Period Ends February 3
OHV LLC: Claims Registration Period Ends February 3
POLAR MANAGEMENT: Claims Registration Period Ends February 3

SCHREMPF KEG: Claims Registration Period Ends February 4
V. DRIKIC TRANS: Claims Registration Period Ends February 5
WORLE LLC: Claims Registration Period Ends February 5


B E L A R U S

BELGOSSTRAKH: Fitch Assigns 'B' Insurer Financial Strength Rating


C Z E C H   R E P U B L I C

CONCORDIA LESOV: Declared Bankrupt by Prague Municipal Court


D E N M A R K

TDC A/S: Fitch Affirms Low-B Issuer Default Ratings


G E R M A N Y

3G ENTERTAINMENT: Claims Registration Period Ends February 2
ABENTEUERLAND SPIELPLATZGERATE: Claims Filing Period Ends Feb. 16
CONTINENTAL AG: Schaeffler Calls on Chairman to Leave Post
FINEST MEDIEN: Claims Registration Period Ends February 27
FPG INGENIEURE: Claims Registration Period Ends February 10

SCHICHAUS SEEBECK: Goes Into Administration
TM-TRANSPORTE GMBH: Claims Registration Period Ends Feb. 18
VOICE COMMUNICATION: Claims Registration Period Ends March 26


I C E L A N D

KAUPTHING BANK: FME Probes Al-Thani's ISK25 Bln Stake Purchase
KAUPTHING BANK: Granted ISK84 Bln Loans Prior to Collapse


I R E L A N D

ANGLO IRISH BANK: S&P Cuts Preference Share Ratings to 'D'
FIRST EQUITY: Supreme Court Grants Appeal for Court Protection
GUILDSTONE CONSTRUCTION: High Court Hears Liquidation Case
LAMBAY CAPITAL: Moody's Junks Rating on GBP300,000,000 Notes
LAMBAY CAPITAL: Fitch Cuts Perpetual Securities to 'BB-'

RS FINISHING: High Court Hears Liquidation Case
TUSKAR ASSET: High Court Appoints Kevin Hughes as Liquidator

* IRELAND: Court Liquidation Cases Up 50% in 2008


I S R A E L

* Moody's Reports Negative Outlook for Israeli Banking System


K A Z A K H S T A N

AKNIET LLP: Proof of Claim Deadline Slated for February 27
CONTINENT-EURO ASIA: Creditors Must File Claims by February 27
ER STROY NUR: Claims Filing Period Ends February 27
GETTE LLP: Creditors' Proofs of Claim Due on February 27
GOLDEN-SAT LLP: Claims Registration Ends February 27

KORVET LLP: Proof of Claim Deadline Slated for February 27
OAZIS LTD: Creditors Must File Claims by February 27
ROZOVY FLAMINGO 2: Claims Filing Period Ends February 27
UG KAZ LLP: Creditors' Proofs of Claim Due on February 27
VK TSIK: Claims Registration Period Ends February 27


K Y R G Y Z S T A N


ORIENT MINING: Creditors Must File Claims by February 26


N E T H E R L A N D S

ABN AMRO: S&P Cuts Various Trust's Preferred Ratings to 'BB+'


R U S S I A

AKTASHSKOE MINING: Creditors Must File Claims by March 16
FAR EASTERN: Moody's Assigns B3 Probability of Default Rating
FINANCE LEASING: Moody's Junks Long-Term Issuer & Debt Ratings
HOLDING STAL-KONSTRUKTSIYA: Court Names Insolvency Manager
KERAMZIT PLANT: Creditors Must File Claims by March 16

LSR GROUP: Fitch Downgrades Issuer and Sr. Unsec. Ratings to 'B'
NOVOMALTINSKIY CONSTRUCTION: Claims Deadline on Feb. 16

* RUSSIA: Fitch Says Outlook for Construction Sector Negative
* RUSSIA: Credit Crisis to Hit Smaller Food Stores the Most


S W I T Z E R L A N D

AARE IMMOBILIEN: Creditors Must File Proofs of Claim by Jan. 29
BERREN MEDICAL: Deadline to File Proofs of Claim Set Jan. 28
BONNIE HOLDING: Creditors Have Until Jan. 29 to File Claims
BREW-CREW LLC: Proofs of Claim Filing Deadline is Jan. 29
FGW RESTAURATION: Creditors' Proofs of Claim Due by Jan. 30

MB ARCHITEKTUR: Jan. 29 Set as Deadline to File Claims
NATURE SPIRIT: Creditors Must File Proofs of Claim by Jan. 29
SOILEN LLC: Deadline to File Proofs of Claim Set Jan. 28
TLA CONSULTING: Creditors Have Until Jan. 28 to File Claims
WALTER ZWAHLEN: Proof of Claim Filing Deadline Set Jan. 29


U K R A I N E

FOODMAKERS SUPPLY: Creditors Must File Claims by Jan. 23
GAZ EQUIPMENT: Creditors Must File Claims by January 23
KARPATY LTD: Creditors Must File Claims by January 23
KARSAN CAR: Creditors Must File Claims by January 23
KIEV BREWERY #1: Creditors Must File Claims by January 23

MINE AUTOMATICS: Creditors Must File Claims by January 23
NADRA BANK: Fitch Junks Issuer Default Rating; Outlook Negative
PODZAMCHEYE LLC: Creditors Must File Claims by Jan. 23
RADO-DAR LLC: Creditors Must File Claims by January 23
SAPSAN LLC: Creditors Must File Claims by January 23

SCHERBINSKIYE LIFTY: Creditors Must File Claims by Jan. 23
VIKING LLC: Creditors Must File Claims by January 23

* Moody's Reports Negative Outlook for Ukraine Banking System


U N I T E D   K I N G D O M

ANGLO OVERSEAS: In Administration; Vantis Appointed
CO-OPERATIVE BANK: Fitch Puts Short-term IDR of 'F1' on WatchNeg
DSG INTERNATIONAL: Appoints John Allan as New Chairman
DSG INTERNATIONAL: Fitch Cuts Issuer Default Rating to 'B'
EXPOMEDIA GROUP: Goes Into Administration; MCR Appointed

FOX HAYES: Goes Into Administration; Begbies Traynor Appointed
INSPIRE GLG: Appoints Joint Administrators from Tenon Recovery
JESSE SHIRLEY: In Administration; KPMG Appointed
JJB SPORTS: Board Suspends CEO Chris Ronnie
JJB SPORTS: To Pay GBP8.3 Mln in Fees Under Bank Deal

JPM ECO: Goes Into Administration
LSG 4 DRIVERS: Appoints Joint Liquidators from Tenon Recovery
POYNTON VAN: Names Joint Administrators from Baker Tilly
ROYAL BANK: UK Government Discloses Second Bailout Plan
REDMILL DEVELOPMENTS: Taps Joint Administrators from Deloitte

L&R HOLDING: Appoints Joint Administrators from KPMG
RIGHTLAND LTD: Names Joint Administrators from KPMG
TRIMCROWN LTD: Taps Joint Administrators from KPMG
WISE 2006-1: Moody's Junks Rating on GBP11.25MM Class C Notes

* Fitch Says U.K. Government Schemes May Unlock Credit Markets


X X X X X X X X

* Fitch: Cash Flow Key to Assessing Euro Pension Deficit Impact

* Upcoming Meetings, Conferences and Seminars


                         *********


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


GOLDSTARS TOURISTIK: Claims Registration Period Ends Feb. 3
-----------------------------------------------------------
Creditors owed money by LLC Goldstars Touristik G & MM (FN
290369p) have until Feb. 3, 2009, to file written proofs of claim
to the court-appointed estate administrator:

         Michael Neuhauser
         Esslinggasse 7
         1010 Wien
         Austria
         Tel: 90 333
         Fax: 90 333
         E-mail: wien@snwlaw.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Feb. 17, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 18, 2008, (Bankr. Case No. 4 S 193/08x).


KRIEGER HAUSTECHNIK: Claims Registration Period Ends February 3
---------------------------------------------------------------
Creditors owed money by LLC Krieger Haustechnik Brennerservice (FN
123070k) have until Feb. 3, 2009, to file written proofs of claim
to the court-appointed estate administrator:

         Dr. Guenther Grassner
         Suedtirolerstrasse 4-6
         4020 Linz
         Austria
         Tel: 0732/77 08 15
         Fax: 770816
         E-mail: lawfirm@gltp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 2:45 p.m. on Feb. 17, 2009, for the
examination of claims at:

         Land Court of Steyr
         Hall 7
         2nd. Floor
         Austria

Headquartered in Kremsmuenster, Austria, the Debtor declared
bankruptcy on Dec. 15, 2008, (Bankr. Case No. 14 S 65/08v).


MOTECH LLC: Claims Registration Period Ends February 3
------------------------------------------------------
Creditors owed money by LLC Motech (FN 108135y) have until Feb. 3,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Christian Bachmann
         Opernring 8
         1010 Wien
         Austria
         Tel: 512 87 01
         Fax: 513 82 50
         E-mail: bachmann.rae@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on Feb. 17, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1607
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 17, 2008, (Bankr. Case No. 28 S 168/08x).


OHV LLC: Claims Registration Period Ends February 3
---------------------------------------------------
Creditors owed money by LLC OHV (FN 305125p) have until Feb. 3,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Klemens Dallinger
         Schulerstrasse 18
         1010 Wien
         Austria
         Tel: 513 28 33
         Fax: 513 28 33 22
         E-mail: dallinger@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Feb. 17, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 17, 2008, (Bankr. Case No. 4 S 192/08z).


POLAR MANAGEMENT: Claims Registration Period Ends February 3
------------------------------------------------------------
Creditors owed money by LLC Polar Management (FN 238095s) have
until Feb. 3, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Josef Wimmer
         Bahnhofstr. 59
         4910 Ried im Innkreis
         Austria
         Tel: 07752 / 26872
         Fax: 07752 / 26872-10
         E-mail: rechtsanwalt@wimmer.or.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:20 a.m. on Feb. 11, 2009, for the
examination of claims at:

         Land Court of Ried im Innkreis
         Hall 101
         Ried im Innkreis
         Austria

Headquartered in Scharding, Austria, the Debtor declared
bankruptcy on Dec. 11, 2008, (Bankr. Case No. 17 S 46/08h).


SCHREMPF KEG: Claims Registration Period Ends February 4
--------------------------------------------------------
Creditors owed money by KEG Schrempf (FN 208429p) have until
Feb. 4, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         LLC Kreissl & Pichler & Walther Rechtsanwalte
         Rathausplatz 4
         8940 Liezen
         Austria
         Tel: 03612-22997
         Fax: 03612-22997-83
         E-mail: mag.karl.pichler@hkp1.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Feb. 18, 2009, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         1st. Floor
         Austria

Headquartered in Schladming, Austria, the Debtor declared
bankruptcy on Dec. 11, 2008, (Bankr. Case No. 17 S 66/08m).


V. DRIKIC TRANS: Claims Registration Period Ends February 5
-----------------------------------------------------------
Creditors owed money by LLC V. Drikic Trans (FN 233471s) have
until Feb. 5, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Georg Kahlig
         Siebensterngasse 42/3
         1070 Wien
         Austria
         Tel: 523 47 91, Fax: 523 47 91 33
         E-mail: kahlig.partner@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Feb. 19, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 15, 2008, (Bankr. Case No. 5 S 141/08g).


WORLE LLC: Claims Registration Period Ends February 5
-----------------------------------------------------
Creditors owed money by LLC Worle (FN 231398t) have until Feb. 5,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Peter Pullez
         Tuchlauben 8
         1010 Wien
         Austria
         Tel: 513 29 79
         Fax: 513 29 79 25
         E-mail: pullezgschwandtner@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on Feb. 19, 2009, for the
examination of claims at:

         Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Wien, Austria, the Debtor declared bankruptcy on
Dec. 15, 2008, (Bankr. Case No. 5 S 140/08k).


=============
B E L A R U S
=============


BELGOSSTRAKH: Fitch Assigns 'B' Insurer Financial Strength Rating
-----------------------------------------------------------------
Fitch Ratings has assigned Belgosstrakh an Insurer Financial
Strength (IFS) rating of 'B'.  The Outlook is Stable.
Belgosstrakh is the largest insurer by premium volume in the
Republic of Belarus.

The rating reflects the significant support provided to the
company by the Belarusian government, its 100% owner, the leading
role performed by Belgosstrakh in the development of the
Belarusian insurance sector, and the company's reasonably good
underwriting performance.  Fitch notes that tariffs for compulsory
lines of business in Belarus are set by the state, thus limiting
Belgosstrakh's ability to control the profitability of its
portfolio.  The agency views capitalization as adequate for the
rating level and believes there is a strong likelihood that the
Belarusian government will support the company with future capital
injections.

The rating takes into account Fitch's view of the financial
strength of the Republic of Belarus, and will be affected by any
significant changes in Fitch's view of the financial condition of
the republic.  The rating also reflects the relatively high credit
risk associated with the high concentration of Belgosstrakh's
investments in state-owned enterprises.

Belgosstrakh recorded net premium income of BYR401 billion in the
first nine months of 2008, of which over 75% related to compulsory
lines of business.  The company has exclusive rights to provide
five of the nine designated compulsory insurance lines in Belarus.
At end-Q308, Belgosstrakh had a 61% share of the Belarusian non-
life insurance market and represented 29% of the sector's net
assets.  The company occupies a market-leading position in almost
every line of business in which it operates.

Fitch notes that Belgosstrakh is tasked with the provision of
practical and methodological support for the evolution of the
insurance industry in Belarus.  This role gives the company
significant influence in the determination of insurance tariffs
and in the development of insurance legislation, particularly in
the field of compulsory insurance.  The agency therefore views
Belgosstrakh to be a key component of the Belarusian government's
strategy to grow the insurance sector in the republic.

Belgosstrakh was founded in 1921 and became the state insurance
company following the independence of Belarus in 1991.  The
company has two subsidiaries: Stravita, a life insurer, and
Poligraf, which carries out polygraphic and publishing activity.
At end-Q308 Belgosstrakh had BYR100 billion in net assets and
seven branches covering all Belarusian regional centers, including
Minsk.


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


CONCORDIA LESOV: Declared Bankrupt by Prague Municipal Court
------------------------------------------------------------
The Municipal Court in Prague on Monday declared Czech china maker
Concordia Lesov bankrupt, CTK reports citing data from insolvency
register at www.justice.cz.

The report recalls insolvency proceedings were launched on October
22 due to lack of operating capital.

According to the report, creditors agreed on bankruptcy of the
company as a solution to its insolvency.  The company, the report
says, owes HSBC Bank, its largest creditor, more than CZK1
billion.

Karlovarsky porcelan, Concordia's parent company, has registered a
claim on Concordia worth almost CZK150 million, the report adds.

The report however notes Concordia, which employs 200 people,
continues production.

The employees, who will be back at work on January 26, will start
working on contracted orders, the report relates.

Meanwhile, the report discloses Karlovarsky porcelan has been put
up for sale.

Potential buyers have until the end of January to submit their
bids, the report states.


=============
D E N M A R K
=============


TDC A/S: Fitch Affirms Low-B Issuer Default Ratings
---------------------------------------------------
Fitch Ratings has revised TDC A/S's (TDC) Outlook to Positive from
Stable due to the company's improving operational metrics and
continued deleveraging.  At the same time, the agency has affirmed
TDC's Long-term Issuer Default Rating (IDR) at 'BB-' (BB minus)
and Short-term IDR at 'B'.  All of TDC's instrument ratings are
affirmed at their current levels and listed at the end of this
commentary.

"While the deleveraging to-date is a positive development, it is
mainly the improvement in EBITDA trends in TDC's core Nordic
businesses which supports the Positive Outlook," said Michelle De
Angelis, Senior Director in Fitch's Leveraged Finance team.  "A
continuation of the improvements in EBITDA margins, which offsets
the effect of downward revenue pressures and provides greater
visibility for the company's medium-term EBITDA and cash flow
generation potential, will be key in determining further positive
rating momentum in 2009."

TDC's successful deleveraging has been achieved through a
combination of internally generated cash flows and disposal
proceeds, including the proceeds from the sale of its Polkomtel
stake (received in December 2008), leading to a decreased pro
forma Fitch-adjusted net debt/EBITDA of 3.7x at Q308.

Following step-by-step disposals of the majority of its non-core
assets, TDC's portfolio now consists of the Nordic fixed line,
mobile and business segments, the Danish cable business, Sunrise
in Switzerland and a majority stake in HTCC in Hungary.  Since
Q208, the year-on-year EBITDA performance at the Nordic businesses
has returned to positive growth despite continuing downward
pressure on the revenue line.  Margins have improved as a result
of a combination of efficiency measures, including headcount
reductions, although the cost of any redundancy measures is
accounted for below the EBITDA line.  Excluding HTCC, which is
ring-fenced with its own non-recourse debt, TDC's trailing twelve
months (LTM) EBITDA was stable at DKK11.92 billion at Q308 and
DKK11.85 billion YE07, while LTM revenues declined to DKK36.1
billion at Q308 from DKK37.2 billion at YE07.  If sustained, the
EBITDA margin improvements should support EBITDA levels in the
short-term, although in the medium-term, EBITDA cannot grow
indefinitely whilst revenues continue to decline, so any evidence
of a stabilization of revenue trends in certain core businesses
would also support the medium-term outlook for EBITDA growth and
cash flow generation.

TDC's instrument ratings are affirmed:

   TDC A/S senior secured facilities: affirmed at 'BB+'

   TDC A/S unsecured EMTN programme notes: affirmed at 'BB-' (BB
minus)

   Nordic Telephone Company Holding ApS (NTCH) senior notes:
affirmed at 'B+'


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


3G ENTERTAINMENT: Claims Registration Period Ends February 2
------------------------------------------------------------
Creditors of 3G Entertainment GmbH have until Feb. 2, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on March 17, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Miguel Grosser
         Franz-Joseph-Str. 8
         80801 Muenchen
         Germany
         Tel: 089/255487-00
         Fax: 089/255487-10

The District Court opened bankruptcy proceedings against the
company on Jan. 1, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         3G Entertainment GmbH
         Landwehrstsr. 60-62
         80336 Muenchen
         Germany

         Attn: Cengiz Peker, Manager
         Englischviertelstr. 62
         8032 Zuerich/Schweiz
         Germany


ABENTEUERLAND SPIELPLATZGERATE: Claims Filing Period Ends Feb. 16
-----------------------------------------------------------------
Creditors of Abenteuerland Spielplatzgerate GmbH have until
Feb. 16, 2009, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on March 17, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Detmold
         Meeting Room 12
         Gerichtsstrasse 6
         32756 Detmold
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Oliver Schulte
         Moltkestr. 12
         32756 Detmold
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 7, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Abenteuerland Spielplatzgeräte GmbH
         Siemensstrasse 3
         32805 Horn-Bad Meinberg
         Germany

         Attn: Dieter Luebke, Manager
         Flammenkampsberg 34
         32805 Horn-Bad Meinberg
         Germany


CONTINENTAL AG: Schaeffler Calls on Chairman to Leave Post
----------------------------------------------------------
Schaeffler Group has called on Continental AG's supervisory-board
chairman to resign or wait for an extraordinary shareholders
meeting to be called, Christoph Rauwald at The Wall Street Journal
reports.

By "sabotaging a joint solution and going after his own
interests," supervisory-board Chairman Hubertus von Gruenberg
"destroyed trust," a spokesman for Schaeffler
said, as cited by the report.

Schaeffler also warned Mr. von Gruenberg it will replace all
shareholder representatives on the supervisory board, the report
discloses.

The report relates Schaeffler said an overhaul of Continental's
board wouldn't conflict with the investor agreement between the
two companies.

"Schaeffler can replace all 10 supervisory-board seats, as long as
no more than four members are appointed by Schaeffler," the report
quoted the Schaeffler spokesman as saying.

According to the WSJ, Schaeffler took control of Continental this
month after making an unsolicited bid for the German auto-parts
and tire maker in August.

As reported in the Troubled Company Reporter-Europe on Dec. 29,
2008, the European Commission cleared Schaeffler's acquisition of
Continental.  Schaeffler agreed to pay EUR75 per share to the
depositary banks of those shareholders who have tendered their
shares to Schaeffler, on or around January 8, 2009.

                       About Schaeffler KG

Germany-based Schaeffler KG -- http://www.schaeffler.com/--
manufactures a vast array of bearings, from cylindrical roller
bearings to needle roller bearings, used in the aerospace,
automotive, machine tool, and semiconductor industries.  Its three
main brands are INA, FAG, and LuK, and though the entities are
treated separately within the company, they also work
collaboratively on specific product development.  The company is
owned by Maria-Elisabeth Schaeffler, the widow of a co-founder,
and her son, Georg F. W. Schaeffler

                      About Continental AG

Headquartered in Hanover, Germany, Continental AG (OTC:CTTAY) --
http://www.conti-online.com/-- is an automotive industry
supplier.  The Company focuses its activities on the development,
production and distribution of products that improve driving
safety, driving dynamics and ride comfort.  It operates in six
main divisions.  Chassis and Safety provides active and passive
driving safety, safety and chassis sensor systems, as well as
chassis components.  Powertrain offers gasoline and diesel
systems, actuators, motor drives and fuel supply, as well as
hybrid electric vehicles systems.  Interior manufactures
information management modules and wireless  mobile devices.
Passenger and Light Truck Tires provides tires for passenger cars,
light trucks, motorcycles and bicycles.  Commercial Vehicle Tires
offers tires for trucks, as well as industrial and off-the-road
vehicles.  ContiTech specializes in the rubber and plastics
technology, offering functional parts, components and systems for
the automotive industry and other sectors.

                          *     *     *

As reported in the TCR-Europe on Dec. 17, 2008, Fitch Ratings
downgraded Continental AG's Long-term Issuer Default and senior
unsecured ratings to 'BB+' from 'BBB-' (BBB minus) and its Short-
term IDR to 'B' from 'F3'.  The Long-term IDR and senior unsecured
ratings have been placed on Rating Watch Negative.


FINEST MEDIEN: Claims Registration Period Ends February 27
----------------------------------------------------------
Creditors of Finest Medien GmbH have until Feb. 27, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at a.m. on March 30, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Ulrich Cramer
         Heiliggeiststr. 7+8
         80331 Muenchen
         Germany
         Tel: 089/21 02 88 58
         Fax: 089/23 24 95 03

The District Court opened bankruptcy proceedings against the
company on Jan. 7, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Finest Medien GmbH
         Attn: Juergen Rutzmoser, Manager
         Hochkoenigstr. 66
         81825 Muenchen
         Germany


FPG INGENIEURE: Claims Registration Period Ends February 10
-----------------------------------------------------------
Creditors of FPG Ingenieure GmbH have until Feb. 10, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on March 5, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 101
         Infanteriestr. 5
         80097 Munich
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Dr. Michael Jaffe
         Franz-Joseph-Str. 8
         80801 Muenchen
         Germany
         Tel: 089/255487-00
         Fax: 089/255487-10

The District Court opened bankruptcy proceedings against the
company on Jan. 2, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         FPG Ingenieure GmbH
         Attn: Klaus-Georg Peter, Manager
         Feringastr. 10 b
         85774 Unterfoehring
         Germany


SCHICHAUS SEEBECK: Goes Into Administration
-------------------------------------------
Ralf Witthohn and Patrick Hagen at Lloyds List reports that German
shipyard Schichaus Seebeck Shipyard (SSW) has gone into
administration after running into financial difficulties.

Lloyds List relates the district court of Bremerhaven said that
SSW managing director Karl-Heinz Jahncke had filed insolvency
papers and cited the yard's inability to pay its bills and massive
debt as reasons for the move.

The court, Lloyds List discloses, has appointed Hamburg lawyer Per
Hendrik Heerma as a preliminary administrator, who is now
evaluating the shipyard's prospects for continuing business.

Lloyds List recounts the shipyard, which employs 380 people,
declared itself insolvent in 2002 but returned to the new building
market a year later.


TM-TRANSPORTE GMBH: Claims Registration Period Ends Feb. 18
-----------------------------------------------------------
Creditors of TM-Transporte GmbH have until Feb. 18, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on March 31, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Baden-Baden
         Hall 009a
         Ground Floor
         Gutenbergstr. 17
         76532 Baden-Baden
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Andreas Fischer
         Erbprinzenstr. 27
         76133 Karlsruhe
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 7, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         TM-Transporte GmbH
         Attn: Monika Tippe, Manager
         Eichetstr. 5
         76456 Kuppenheim
         Germany


VOICE COMMUNICATION: Claims Registration Period Ends March 26
-------------------------------------------------------------
Creditors of Voice Communication Center GmbH have until March 26,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on April 27, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 1
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Andre K. Gabel
         Carl-Theodor-Reiffenstein-Platz 6
         D 60313 Frankfurt/Main
         Germany
         Tel: 069/138228290
         Fax: 069/138228299

The District Court opened bankruptcy proceedings against the
company on Jan. 7, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Voice Communication Center GmbH
         Colmarer Strasse 11
         60528 Frankfurt am Main
         Germany

         Attn: Holger Schindler, Manager
         Bindingstrasse 2
         60598 Frankfurt am Main
         Germany


=============
I C E L A N D
=============


KAUPTHING BANK: FME Probes Al-Thani's ISK25 Bln Stake Purchase
--------------------------------------------------------------
Iceland Review reports that the Icelandic Financial Supervisory
Authority is investigating Skehik Momahed bin Khalifa Al-Thani's
acquisition of a ISK25 billion (US$77 million, EUR188 million)
stake in Kaupthing bank hf, shortly before the bank collapsed.

Citing Frettabladid's sources, the report relates the Unit for the
Investigation and Prosecution of Economic and Environmental Crimes
under the National Commissioner of the Icelandic Police notified
the FME in November that there were dubious circumstances
surrounding the acquisition.

However, Olafur Thor Hauksson, a recently-appointed special
prosecutor in charge of investigating the banking collapse, would
not comment on the FME's investigation as he does not officially
assume his post until February, the report adds.

The report recounts the Stock Exchange received an announcement
from Kaupthing on September 22, 2008 that Mr. Al-Thani acquired a
five percent stake in the bank.  The stake, according to the
report, was registered to the holding company Q Iceland Finance.

Citing Morgunbladid, the report states the acquisition was
allegedly undertaken through two companies registered in the
Virgin Islands, which lent money to a third company, which again
lent it to Q Iceland Finance.

The companies in the Virgin Islands allegedly received funds from
Kaupthing collateralized with stocks in the bank, the report says.

The report notes one of the Virgin Islands companies is allegedly
owned by Olafur Olafsson, the second-largest shareholder in
Kaupthing through his company Kjalar.

Mr. Al-Thani is then supposed to have made a forward currency
contract with Kaupthing, which was meant to secure him an
exchange-rate profit and, in turn, pay for his stake in the bank,
says the report.  This trade allegedly went through Kaupthing in
Luxembourg, the report reveals.

The report discloses that according to Stod 2 television news,
Kaupthing had lost ISK37.5 billion (US$294 million, EUR221
million) because of the acquisition.

                      About Kaupthing Bank

Headquartered in Reykjavik, Iceland, Kaupthing Bank --
http://www.kaupthing.com-- is engaged in the provision of
financial services, such as private banking, asset management,
pension services, brokerage services, investment banking, as well
as corporate and retail banking.  The Bank's offer is targeted at
companies, institutional investors and individuals.  The Bank is
operational in thirteen countries, including Luxembourg,
Switzerland, the Nordic countries, the United Kingdom and the
United States.  The main subsidiaries include Kaupthing Singer &
Friedlander and FIH Erhvervsbank.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

Citing a court filing by Olafur Gardarsson, Reuters disclosed
Kaupthing has about US$14.8 billion of principal assets, including
US$222 million located in the United States, and US$26 billion of
principal indebtedness.


KAUPTHING BANK: Granted ISK84 Bln Loans Prior to Collapse
---------------------------------------------------------
Iceland Review reports that Kaupthing bank hf allegedly granted
ISK84 billion (US$660 million, EUR500 million) in loans to a
selected group of clients weeks before the collapse of the
country's banking system, without approval from its loan
committee.

Citing Morgunbladid's sources, the report discloses these clients
include Olafur Olafsson, the second-largest shareholder in
Kaupthing.  The report states they allegedly received loans
because of business contracts they were making through foreign
companies in their ownership, confident that they would deliver
profits.

The report relates that according to Morgunbladid, Kaupthing's
loan committee had neither approved these loans before they were
granted nor the bank's funding of Sheik Mohamed bin Khalifa Al-
Thani's five-percent acquisition in the bank.

The report says that according to regulations, the loan committee
of Kaupthing's board was obligated to approve the loans before
they were granted because the loan granter was the party assuming
risk.

The report recalls the risk was assumed by Kaupthing and the
bank's shareholders but not by the debtors themselves.

The debtors, the report states, were expecting profits of up to
ISK10 billion (US$78 million, EUR59 million), part of which were
supposed to be paid to Kaupthing in advance.  However, the report
notes it didn't work out as planned.

                       About Kaupthing Bank

Headquartered in Reykjavik, Iceland, Kaupthing Bank --
http://www.kaupthing.com-- is engaged in the provision of
financial services, such as private banking, asset management,
pension services, brokerage services, investment banking, as well
as corporate and retail banking.  The Bank's offer is targeted at
companies, institutional investors and individuals.  The Bank is
operational in thirteen countries, including Luxembourg,
Switzerland, the Nordic countries, the United Kingdom and the
United States.  The main subsidiaries include Kaupthing Singer &
Friedlander and FIH Erhvervsbank.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

Citing a court filing by Olafur Gardarsson, Reuters disclosed
Kaupthing has about US$14.8 billion of principal assets, including
US$222 million located in the United States, and US$26
billion of principal indebtedness.


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


ANGLO IRISH BANK: S&P Cuts Preference Share Ratings to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
GBP300 million 6.25% Tier 1 preference shares issued by Anglo
Irish Bank Corp. Ltd. (previously a public limited company; A-
/Watch Neg/A-1) to 'D' from 'B'.  At the same time, the 'B' issue
ratings on these preference shares were removed from CreditWatch,
where they had been placed with negative implications on Sept. 30,
2008.

The 'B' issue ratings on Anglo's other undated perpetual
instruments are unchanged.

"The lowering of the ratings on the GBP300 million 6.25% Tier 1
preference shares to 'D' reflects their nationalization by the
government of Ireland, along with all the common equity in Anglo.
The preference shares, unlike Anglo's other undated subordinated
debt, carry voting rights in some circumstances and are included
in the nationalization legislation approved by the Irish
parliament.  Nationalization of the preference shares means that
the investors in the instruments suffer a loss of principal and
all future coupons.  They will receive compensation, but we expect
this to be limited," S&P says.

"The 'B' issue ratings on Anglo's other undated perpetual
instruments reflect our view of the increased probability of
payment deferral on these instruments following Anglo's
nationalization.  We note that the government in its statement
announcing the nationalization of Anglo stated that Anglo would
'continue to service its obligations and will repay its debts at
maturity', and that this included obligations to bondholders.

"Nevertheless, we consider that there is heightened payment
deferral risk following the government's seizure of control of
Anglo's stock.  We consider it possible that the European
Commission, in the course of approval of a potential state-aid
package for Anglo at a future date, may prohibit Anglo from
servicing its hybrid debt obligations.

"The CreditWatch placement on the ratings on Anglo reflect our
view of the significant uncertainties about Anglo's future,
notably the government's plans in relation to Anglo's strategy,
and Anglo's funding plans and capital requirements.  We will
resolve the CreditWatch status following discussions with the
Irish authorities and Anglo's management in the coming weeks.
Given the Irish government's strong statements of support, we do
not expect to lower the counterparty credit rating on Anglo by
more than one notch in the event of a downgrade."


FIRST EQUITY: Supreme Court Grants Appeal for Court Protection
--------------------------------------------------------------
Vivion Kilfeather at Irish Examiner reports that the Supreme Court
has agreed to grant court protection for asset management firm
First Equity.

The Supreme Court granted the company's appeal against a High
Court decision last week refusing to confirm the appointment of an
examiner to the firm, the report relates.  It said its decision
was based on additional material put before the Supreme Court
which was not before the High Court, the report adds.

The report recounts Mr Justice Brian McGovern refused last week to
appoint an examiner to First Equity after the evidence relating to
the company's argument it has a reasonable prospect of survival
did not satisfy him.

The company however insisted reports from the interim examiner and
an independent accountant showed the firm has a reasonable
prospect of survival as a going concern if certain conditions were
implemented, the report notes.

The judge, the report recalls, put a stay on his decision pending
the company's appeal to the Supreme Court.

The report discloses having granted the appeal, the Supreme Court
made an order confirming Kieran Wallace, of accountancy firm KPMG,
as examiner.

Mr. Wallace, the report says, will now prepare a scheme of
arrangement aimed at procuring the survival of the company.  His
counsel, Michael Cush SC, told the court there had been six
general expressions of interest in investing in the company, the
report states.

According to the report, the Supreme Court heard that as an
ongoing concern, the company had assets of EUR54.3 million and
owed secured and unsecured creditors a total of EUR52 million.

If liquidated, the assets would be worth just EUR28 million,
leaving a deficit of some EUR24 million, the report notes.

On Dec. 30, 2008, the TCR-Europe reported that according to The
Irish Times, Mr Justice Paul Gilligan of the High Court appointed
Mr. Wallace as interim examiner at the petition of the company,
which has projects worth EUR1 billion.

The company, The Irish Times disclosed, faces severe difficulty
raising debt and project finance and fresh capital from existing
or new investors.

The Irish Times stated that as a result of its cash flow shortage,
the company cannot pay a 20-30 per cent annual coupon on unsecured
loans for a total of EUR10 million from about 25 clients,
prompting the examinership process.

Trade creditors meanwhile are owed less than EUR2 million, the
Irish Times added.

Established in 1995 First Equity is the business name of Gallium
Ltd.  The most recent accounts for Gallium show the company made
an operating loss of just over EUR5 million, but had unrecognized
profit on investments of EUR7.5 million in the 12 months to
December 2007.  The company's shareholders funds totaled EUR10.5
million, made up of a revaluation reserve of EUR11.8 million less
accumulated losses of EUR1.3 million, The Irish Times revealed.

Tom Dowling, a former tax inspector, holds a 65% stake in First
Equity, while businessman Alan Barry, owns 35% of the company.
The company also has offices in London and Los Angeles.  It
currently has 20 projects under management - in Britain, the US,
mainland Europe and Ireland.


GUILDSTONE CONSTRUCTION: High Court Hears Liquidation Case
----------------------------------------------------------
The Irish Times reported that the High Court heard the liquidation
case of Navan, Co Meath-based construction company Guildstone
Construction Ltd Wednesday last week.

According the report, the company, which concentrated on
residential and commercial developments in the midlands and
greater Dublin area, went into liquidation after being hit by the
downturn in the Navan property market and the general downturn in
the construction sector.

The company, the report disclosed, owes approximately EUR2.9
million to its bankers, EUR28,000 to the Collector General,
EUR37,000 to former employees and EUR1.1 million to trade
creditors.

The liquidator, Ken Fennell of Kavanagh Fennell, is currently
trying to sell the assets of the company, which include a block of
apartments in Navan, and lands in the Meath area, the report
stated.


LAMBAY CAPITAL: Moody's Junks Rating on GBP300,000,000 Notes
------------------------------------------------------------
Moody's Investors Service has downgraded its rating of the
GBP300,000,000 Perpetual Tier-One Pass-Through Securities issued
by Lambay Capital Securities PLC.

The rating action is the result of the downgrade to C of the
rating of the preference shares of Anglo Irish Bank Corporation
plc.  The Notes are secured by preference shares issued by AIBC
and holders of the Notes will have effectively similar credit risk
exposure to that of the AIBC preference shares.  The transaction
structure allows for a pass-through of cash flows (coupon and
principal redemption, if called) on the AIBC preference shares to
the Notes holders.

Full detailed analyses and information on Anglo Irish Bank
Corporation plc's credit ratings can be found on
http://www.moodys.com/

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for repackaged securities as described in Moody's Special Reports:

   -- Repackaged Securities (October 2001)

   -- Moody's Refines Its Approach to Rating Structured Notes
(July 1997)

These reports can be found at http://www.moodys.comin the Credit
Policy & Methodologies directory, in the Ratings Methodologies
subdirectory.  Other methodologies and factors that may have been
considered in the process of rating this issue can also be found
in the Credit Policy & Methodologies directory.

The rating action is:

Lambay Capital Securities PLC:

(1) GBP300,000,000 Perpetual Tier-One Pass-Through Securities

   Current Rating: C

   Prior Rating: A3, on review for possible downgrade

   Prior Rating: 12 November 2008, A3 placed under review for
possible downgrade


LAMBAY CAPITAL: Fitch Cuts Perpetual Securities to 'BB-'
--------------------------------------------------------
Fitch Ratings has downgraded Lambay Capital Securities Plc's
GBP300 million perpetual tier-one pass-through securities to 'BB-'
(BB minus) from 'A' and placed them on Rating Watch Negative
(RWN).

The rating addresses the full repayment of interest and principal
to noteholders.

Lambay Capital Securities plc is a limited liability company
incorporated in Ireland.  The rating of the notes is credit-linked
to the rating of the GBP300 million Series A fixed- and floating-
rate non-cumulative callable preference shares of Anglo Irish Bank
Corporation Plc ('A-'((A minus))/Stable/'F1+'), which were
downgraded to 'BB-' (BB minus) on January 16, 2009 and placed on
RWN.  The notes are secured over the aforementioned shares.

The perpetual tier-one pass-through securities have no maturity
and are callable upon the redemption of the preference shares.
The interest payments on the notes are equal to the net dividend
received and are passed through to the investors.


RS FINISHING: High Court Hears Liquidation Case
-----------------------------------------------
The Irish Times reported that the High Court heard the liquidation
case of Dublin-based RS Finishing Systems Ltd Wednesday last week.

According to the report, the company decided to go into
liquidation as it could no longer finance its working capital.
The report recalled during 2008, the company's suppliers began to
shut down lines of credit because of concerns caused by the
general downturn in the construction sector.

The company, the report disclosed, racked up debts of
approximately EUR2.5 million, of which approximately EUR1.7
million is due to unsecured creditors.

The report recounted the court granted permission to the company's
liquidator, Ken Fennell of Kavanagh Fennell, to finish a number of
the company's ongoing projects, so as to maximize the sum that can
be realized for creditors.

In 2007, the company, the report stated, suffered its first ever
substantial loss after turnover dropped by more than EUR500,000.
It had a 2006 turnover of EUR8.15 million, the report noted.

Established in March 1970, RS Finishing Systems Ltd erected roofs
on to large commercial and industrial developments, and worked for
clients such as Sisk, McNamara and Rohcon.


TUSKAR ASSET: High Court Appoints Kevin Hughes as Liquidator
------------------------------------------------------------
Tim Healy at Independent.ie reported that Mr Justice Peter Kelly
of the High Court appointed Kevin Hughes of Hughes Blake as
official liquidator to Tuskar Asset Management plc, the group
holding company.

The liquidator, Independent.ie noted, is also the court-appointed
examiner of that company -- Tuskar Commercial Investment Property
Services Ltd (TCIPS).

According to Independent.ie, the court will hear proposals to
extend protection for TCIPS today, January 22.

Mr Justice Kelly, Independent.ie recalled, ordered the directors
of TCIPS -- Alan Hynes, John Power, Scott Wallace and Mary Rowney
-- to draw up a statement of the company's affairs for the
hearing.

The Irish Times disclosed a potential scheme of arrangement for
TCIPS was agreed Wednesday last week.

The scheme, which had been approved by one class of creditors,
involved some of the investors in the group making an investment
of EUR751,000, The Irish Times related.

According to The Irish Times, the court heard that the initial
investment figure of EUR2 million could be reduced to EUR751,000
because Ulster Bank, a creditor, had reduced its terms.

TCIPS, The Irish Times revealed, owed EUR13 million to Ulster
Bank, EUR2.2 million in a reverse premium due to the Bank of
Ireland, and more than EUR1 million to the Revenue.

Tuskar Asset Management plc, the Independent.ie stated, racked up
debts of EUR50 million.  Other companies in the group, which were
earlier put into liquidation, are East Quay Hotel and Leisure Ltd;
Bodjaca 8135 Ltd; Tuskar Development Co Ltd; and Tuskar
Residential Investment Properties Ltd.

Citing Mr Justice Kelly, The Irish Times noted the other Tuskar
subsidiaries were not being saved.


* IRELAND: Court Liquidation Cases Up 50% in 2008
-------------------------------------------------
The Irish Times reported that the High Court Examiner's Office in
Ireland dealt with 80 new cases of court liquidations last year.

The report recalled in 2007 the office only handled approximately
40 new cases.

According to the report, court liquidations are much less frequent
than voluntary liquidations.  However, the report noted there is
no reason to believe the figures are not indicative of a trend.


===========
I S R A E L
===========


* Moody's Reports Negative Outlook for Israeli Banking System
-------------------------------------------------------------
The fundamental credit outlook for the Israeli banking industry is
negative, reflecting the expected slowdown in the domestic
economy, as well as the impact of the ongoing global financial and
economic crisis, says Moody's Investors Service in its new Banking
System Outlook on Israel.

Moody's negative outlook for the Israeli banking system expresses
the rating agency's view on the likely future direction of
fundamental credit conditions in the industry over the next 12 to
18 months.  It does not represent a projection of rating upgrades
versus downgrades.

In addition to the Banking System Outlook, which focuses on
performance measures and forward-looking rating drivers for the
Israeli banking system, Moody's has also published a Banking
System Profile report for Israel.  The Profile forms part of a new
series of reports on banking systems throughout the world, which
are designed to complement Moody's Banking System Outlook reports
by serving as descriptive reference guides to key structural
factors that are reflected in Moody's bank credit ratings.

"With some delay, Israel is now feeling the effects of the ongoing
global financial and economic crisis.  The banking system has been
indirectly affected by (a) the increased risk aversion and the
repricing of risk globally that has negatively affected the
valuation of their securities portfolios, (b) the defaults by
international financial institutions leading to counterparty
exposure losses, and (c) the fall in global real estate prices
that is impacting some of their larger corporate exposures," says
Constantinos Pittalis, a Moody's Vice President-Senior Analyst and
co-author of the reports.  That said, in Moody's view, the banking
system as a whole has a manageable exposure to "toxic assets" and
is not over-exposed to troubled financial institutions overseas.

Going forward, Moody's expects a gradual deterioration in the
banks' financial fundamentals, and credit quality in particular,
stemming from (a) their relatively high exposure to potential
challenged economic sectors, (b) the risk of a possible default
from a single large borrower that could lead to considerable
credit losses, and (c) the general economic slowdown in the
country.  High single borrower concentrations are a weakness for
most of the rated banks and constrain their financial strength
ratings.  Furthermore, the domestic corporate bond market has
major refinancing needs over the next couple of years, suggesting
that Israeli banks may have to participate in such refinancing
given that such corporations are also bank customers.  Finally,
the banks' asset mix has gradually moved towards a higher
proportion of loans compared to more liquid holdings and
investments, thus increasing the likely adverse impact of a
deteriorating credit portfolio on the banks' financial
fundamentals.

Moody's cautions that profitability is under pressure due to
exposure to some defaulted overseas financial institutions and
losses on the banks' securities portfolios, while the ongoing
capital markets reforms in Israel are curbing the ability of the
banking sector as a whole to generate fees and commissions.
"Problematic exposures will likely increase, leading to elevated
provisioning expenses and pressuring bottom-line profitability.
This suggests that some banks will have difficulty reaching the
12% minimum capital adequacy ratio by the end of 2009," says Mr.
Christos Theofilou, a Moody's Associate Analyst and co-author of
the reports.

On the positive side, dominant and stable franchise positioning
within Israel supports the rated banks' financial strength
ratings.  With franchise value hard to develop further in Israel,
increased competition from non-bank financial institutions and
recent reforms limiting opportunities for earnings diversification
domestically, Israeli banks have increased their cross-border
activities by acquiring banks in emerging markets and have moved
ahead with other investments abroad -- moves that have raised
their overall risk profile.

In the current market conditions, Moody's considers liquidity and
retail funding to be key strengths of the Israeli banking system.
Israeli banks benefit from a large, stable customer deposit base,
that adequately funds their lending business.  Deposits have been
highly stable over the past few years and this has supported the
banks' ratings.  Furthermore, Israeli banks do not depend on
foreign funding, and so the ongoing financial crisis has not hurt
their funding position.  Liquidity management is considered
adequate.

"In 2009, the Israeli banks are expected to implement the new
guidelines of the Basel II agreement.  Moody's expects this to
lead to more focused and better risk management, improved
decision-making and increased transparency and disclosure," adds
Mr. Theofilou.

The principal methodologies used in rating the Israeli Banking
System are the "Bank Financial Strength Ratings: Global
Methodology" and "Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology", which can be found
at http://www.moodys.comin the Credit Policy & Methodologies
directory, in the Ratings Methodologies sub-directory.  Other
methodologies and factors that may have been considered in the
process of rating this issuer can also be found in the Credit
Policy & Methodologies directory.

The two reports -- "Banking System Outlook: Israel" and "Banking
System Profile: Israel" -- are available on http://www.moodys.com


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


AKNIET LLP: Proof of Claim Deadline Slated for February 27
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Akniet insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan
         Seifullin Str. 37
         Uralsk
         West Kazakhstan
         Kazakhstan


CONTINENT-EURO ASIA: Creditors Must File Claims by February 27
--------------------------------------------------------------
LLP Continent-Euro Asia has declared insolvency.  Creditors have
until Feb. 27, 2009, to submit written proofs of claim to:

         LLP Continent-Euro Asia
         Tulebaev Str. 194-19
         Almaty
         Kazakhstan
         Tel: 8 (7272) 91-30-43


ER STROY NUR: Claims Filing Period Ends February 27
---------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Construction Company Er Stroy Nur insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan


GETTE LLP: Creditors' Proofs of Claim Due on February 27
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Gette insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel:  8 (7232) 24-06-50


GOLDEN-SAT LLP: Claims Registration Ends February 27
----------------------------------------------------
LLP Golden-Sat has declared insolvency.  Creditors have until
Feb. 27, 2009, to submit written proofs of claim to:

         LLP Golden-Sat
         Micro District 13, 20-41
         Aktau
         130000 Mangistau
         Kazakhstan
         Tel: 8 (7292) 31-48-65


KORVET LLP: Proof of Claim Deadline Slated for February 27
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Firm Korvet insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan
         Seifullin Str. 37
         Uralsk
         West Kazakhstan
         Kazakhstan


OAZIS LTD: Creditors Must File Claims by February 27
----------------------------------------------------
LLP Oazis Ltd. has declared insolvency.  Creditors have until
Feb. 27, 2009, to submit written proofs of claim to:

         LLP Oazis Ltd.
         Togysbaev Str. 1
         Shymkent
         South Kazakhstan
         Kazakhstan


ROZOVY FLAMINGO 2: Claims Filing Period Ends February 27
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Rozovy Flamingo 2 insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Respublika ave. 29-21
         Shymkent
         South Kazakhstan
         Kazakhstan


UG KAZ LLP: Creditors' Proofs of Claim Due on February 27
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Ug Kaz Building insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan


VK TSIK: Claims Registration Period Ends February 27
----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP VK Tsik insolvent.

Creditors have until Feb. 27, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel:  8 (7232) 24-06-50


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


ORIENT MINING: Creditors Must File Claims by February 26
--------------------------------------------------------
LLC Orient Mining Ltd. has declared insolvency.  Creditors have
until Feb. 26, 2009, to submit written proofs of claim to:

The company can be reached at: (0-777) 53-05-55


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


ABN AMRO: S&P Cuts Various Trust's Preferred Ratings to 'BB+'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB+' from 'BBB+'
its ratings on various Tier 1 and upper Tier 2 instruments for
which ABN AMRO Bank N.V. (A+/Developing/A-1) and its direct parent
ABN AMRO Holding N.V. (not rated), are the issuers or co-obligors.
At the same time, these issue ratings were placed on CreditWatch
with developing implications.

This follows the ratings action on U.K. bank holding company The
Royal Bank of Scotland Group PLC (RBSG; A/Stable/A-1), including
the lowering of the ratings on junior subordinated debt
instruments issued by RBSG's main operating entity, The Royal Bank
of Scotland PLC (RBS), to 'BB+' from 'BBB+'.

The downgrade of these instruments reflects the higher medium-term
risk of coupon suspension on ABN AMRO's junior subordinated debt,
which may result in the likely event that RBSG retains some or all
of these instruments in the break-up of ABN AMRO by an RBSG-led
ownership consortium.  The break-up of ABN AMRO is likely to be
completed in the second half of 2009.

The downgrade also takes into account the weakened stand-alone
credit profile of RBSG, and a capital restructuring at RBSG,
whereby the U.K. government has agreed to replace the GBP5 billion
preference shares it holds with new ordinary shares.  U.K.
government support benefits senior bondholders of RBSG more than
holders of junior subordinated instruments.

"Nevertheless, we believe that the near-term coupon suspension
risk on ABN AMRO's junior subordinated debt is more limited given
that ABN AMRO Holding N.V. paid dividends on common equity in the
second half of 2008 as part of the break-up process and the
related capital redistribution among the consortium, and is likely
to make additional dividend payments to its owners in 2009," S&P
says.  "We understand that dividends on common equity push coupon
payments on the junior subordinated debt.  Further, ABN AMRO
remains a separately managed and regulated entity until completion
of the break-up, and has announced -- on an estimated and
unaudited basis -– that it expects a profit after tax of
approximately EUR3.5 billion for the full year of 2008 and sound
regulatory capital ratios (Tier 1 at 10.5% at year end)."

"The CreditWatch with developing implications on the junior
subordinated debt of ABN AMRO reflects that ratings might be
lowered, affirmed, or raised.  The ratings could follow any rating
action that might result from resolving the CreditWatch placement
with negative implications on junior subordinated debt instruments
issued by RBS.  Conversely, the ratings on individual issues might
be raised if ABN AMRO's owners were to confirm that any of these
instruments will be absorbed in the break-up by the Dutch
government-owned businesses, which we understand is expected to be
separated from businesses retained by RBSG.  In this case,
however, an upgrade would also depend on our assessment of the N-
Share businesses' risk profile, which is currently still unclear,
and on any constraint that may emerge for the N-Share businesses
regarding coupon payments on junior subordinated debt.

RATINGS LIST
                                          To                 From
                                          --                 ----
ABN AMRO Bank N.V.
  Junior Subordinated (Tier 1)        BB+/Watch Dev           BBB+
  Junior Subordinated (Upper Tier 2)  BB+/Watch Dev           BBB+

ABN-AMRO Capital Funding Trust V
  Preferred Stock*                    BB+/Watch Dev           BBB+

ABN-AMRO Capital Funding Trust VI
  Preferred Stock*                    BB+/Watch Dev           BBB+

ABN-AMRO Capital Funding Trust VII
  Preferred Stock*                    BB+/Watch Dev           BBB+

     *Guaranteed by ABN AMRO Holding N.V.


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


AKTASHSKOE MINING: Creditors Must File Claims by March 16
---------------------------------------------------------
Creditors of OJSC Aktashskoe Mining and Smelting Enterprise have
until March 16, 2009, to submit proofs of claims to:

         G. Suslin
         Insolvency Manager
         Post User Box 3471
         6560049 Barnaul
         Russia

The Arbitration Court of Altay commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?02–664/2008.

The Debtor can be reached at:

         OJSC Aktashskoe Mining and Smelting Enterprise
         Mokhova Str. 18
         Aktash
         Ulaganskiy
         649743 Altay
         Russia


FAR EASTERN: Moody's Assigns B3 Probability of Default Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a B3 Probability of Default
Rating (PDR) for Far Eastern Shipping Company.  All of FESCO's
ratings, including its B2 Corporate Family Rating (CFR), remain on
review for possible downgrade.

"[The] rating action reflects FESCO's heightened probability of
default because of the combined effects of the economic slowdown
of the Russian economy on FESCO's operating performance, the
refinancing risk the Company faces with US$200 million of debt
maturities concentrated in H1 2009, and Moody's concerns regarding
the compliance of financial covenants contained in some of the
Company's credit agreements," explains Marco Vetulli, a Vice
President-Senior Analyst in Moody's Corporate Finance Group.

Moody's has maintained FESCO's CFR at B2, one notch higher than
the PDR, to reflect the above-average recovery assumptions for the
Company in an event of default, based on FESCO's strong asset
base.

"Moody's expects to conclude its review before the end of March
2009, when the refinancing process related to the debt maturities
expiring in H1 2009 should be completed by the Company," says Mr.
Vetulli.  "Moody's expects FESCO's banks to remain supportive, but
any potential waiver would most likely result in increased pricing
conditions, thereby creating additional stress on the Company's
cash flows."

The review will remain focused on these factors: (i) the Company's
plans to refinance its upcoming debt repayments; and (ii) the
Company's updated forecasts and its plan to mitigate risks of a
potential breach of the financial covenants included in its core
credit agreements.

These ratings are on review for possible downgrade:

   -- Probability-of-default rating at B3

   -- Corporate Family Rating at B2

   -- National Scale Rating at A3.ru

The last rating action on FESCO was implemented on November 13,
2008, when Moody's downgraded its CFR to B2 from B1 and National
Scale Rating to A3.ru from A2.ru, and also placed the ratings
under review for possible downgrade.

Headquartered in Moscow, Russia, FESCO is an integrated logistics
group active in four business segments: shipping (16.2% of H1 2008
revenues); liner and logistics operations (45.2%); container
terminals (20.2%); and railway transportation (18.3%).  FESCO's
main shareholder is Industrial Investors Group, which controls
53.81% of the Russian group.  Other important shareholders are
East Capital (7.62%), European Bank for Reconstruction and
development (3.76%) and Temasek (3.14%).  The shares in free float
amount to 28%. In FY2007, FESCO reported revenues of US$872
million.


FINANCE LEASING: Moody's Junks Long-Term Issuer & Debt Ratings
--------------------------------------------------------------
Moody's Investors Service downgraded the long-term issuer and debt
ratings of Finance Leasing Company to Caa3 from Ba3.  At the same
time, Moody's Interfax Rating Agency, which is majority-owned by
Moody's, downgraded FLC's long-term National Scale Rating (NSR) to
Caa2.ru from Aa3.ru.  The issuer and debt ratings have been placed
on review with direction uncertain.

Moody's explained that the multi-notch downgrade was triggered by
the fact that the company has defaulted on coupon payments on its
public debt.  Under Moody's rating methodology for government-
related issuers (GRIs), this default has resulted in the lowering
of FLC's baseline credit assessment (BCA) and in the removal of
the uplift that had previously been incorporated into the ratings
to reflect Moody's revised view of the probability of external
support.  To date no support has been provided even though the
issuer defaulted on its coupon payments.

Moody's has lowered FLC's BCA to 19 from 17 (on a scale of 1 to
21, where 1 represents the lowest credit risk).  Furthermore, as
the company has not benefited from any form of government support
to date, Moody's has revised its assessment of the government
support incorporated into FLC's debt and issuer ratings from
'medium' to 'none', thus removing the previous multi-notch uplift.
The company's current issuer and debt ratings are therefore now at
the same level as the new BCA.

"FLC's default has resulted from a combination of these factors:
(i) inadequate liquidity management; and (ii) a significant
deterioration in asset quality as a result of both the rapidly
worsening operating environment in the aircraft industry, which
has led to defaults on the company's lease book, and significant
corporate governance issues materially affecting the company's
assets," says Semyon Isakov, a Moscow-based Moody's Analyst, and
lead analyst for FLC.

According to Moody's, the rating review with direction uncertain
captures the current lack of visibility with regard to FLC's
future.  On the downside, the company could face bankruptcy,
accompanied by a restructuring of its obligations in such a form
that creditors incur further losses, in which case Moody's could
be prompted to downgrade the issuer rating further.  Conversely,
on the upside, if the company were to be supported, its financial
position improved and its business viability restored, its
expected loss-given-default could be reduced and downward
pressures on the Caa3 rating could be lifted.

Moody's last rating action was on 29 September 2008, when FLC's
ratings were downgraded to Ba3/Not Prime/Aa3.ru from Ba2/Not
Prime/Aa2.ru.  All the ratings carried a negative outlook.

The principal methodology used in rating Finance Leasing Company
is "Revised Methodology for Government Related Non-Bank Financial
Institutions", which can be found at http://www.moodys.comin the
Credit Policy & Methodologies directory, in the Ratings
Methodologies subdirectory.  Other methodologies and factors that
may have been considered in the process of rating the company can
also be found in the Credit Policy & Methodologies directory.

Headquartered in Moscow, Russia, Finance Leasing Company reported
shareholders' equity of US$446 million, total assets of US$766
million and net income of US$6.7 million as at year-end 2007.  The
company's lease portfolio includes 14 Russian civil aircraft.  The
controlling 51.8% stake is owned by United Aircraft Corporation,
the Russian state-owned aircraft holding company, while the
Russian Government directly holds a 28.7% stake in the company.


HOLDING STAL-KONSTRUKTSIYA: Court Names Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Moscow appointed A .Sergovskiy as
Temporary Insolvency Manager for CJSC Holding Stal-Konstruktsiya
(TIN 7707305592) (Steel Structures' Production).  The case is
docketed under Case No. ?40–67269/08–88-178.  He can be reached
at:

         Building 1
         Lubyanskiy proezd 5
         101000 Moscow
         Russia

The Debtor can be reached at:

         CJSC Holding Stal-Konstruktsiya
         Office 33/34
         Building 2
         Dmitrovskiy pereulok 4
         103031 Moscow
         Russia


KERAMZIT PLANT: Creditors Must File Claims by March 16
------------------------------------------------------
Creditors of LLC Keramzit Plant (Expanded-Clay Aggregate
Production) have until March 16, 2009, to submit proofs of claims
to:

         L. Yegorova
         Insolvency Manager
         Administration Building of LLC USSS
         Prom. Ploshchadka
         Novoulyanovsk
         433300 Ulyanovskaya
         Russia

The Arbitration Court of Ulyanovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?72–3129/08–26/29B.

The Debtor can be reached at:

         LLC Keramzit Plant
         Yunosti Str. 5
         432030 Ulyanovskiy
         Russia


LSR GROUP: Fitch Downgrades Issuer and Sr. Unsec. Ratings to 'B'
----------------------------------------------------------------
Fitch Ratings has downgraded Russia-based OJSC LSR Group's (LSR)
Long-term foreign currency Issuer Default rating (IDR) and senior
unsecured rating to 'B' from 'B+', and has simultaneously placed
both ratings on Rating Watch Negative (RWN).  The Recovery Rating
for LSR's senior unsecured debt is affirmed at 'RR4'.

The downgrade reflects Fitch's expectation that LSR's financial
performance will be negatively impacted as a result of the
downturn in the Russian property and building materials markets,
which is likely to continue throughout 2009 at least.  The agency
now expects LSR's net leverage could reach 2.9x-3.1x in 2009-2010,
compared to previous expectation of around 2x by FY10.  LSR's
liquidity score (measured by sources of liquidity divided by uses
of liquidity over a 12-month period) currently stands at 0.6x,
which is below Fitch's previous expectation of above 1x on a
through-the-cycle basis.  Fitch had initially expected LSR to
achieve the above 1x score by end-2008.

The RWN reflects Fitch's concern that LSR may breach a bank
facility interest cover (EBIT/interest expenses) covenant within
the next 12 months.  This follows the agency's revised projection
for decreased EBIT and increased interest expenses in FY09.  In
addition, the RWN reflects LSR's challenge in obtaining a
substantial amount of new financing from several state-controlled
banks over the next few months.  This new funding is needed to
refinance upcoming maturities and capital expenditure.  Fitch
understands that while negotiations are underway, no conclusions
have been reached yet.  However, the agency positively notes that
LSR is included in the Russian government's list of companies
qualifying for potential federal support, published in December
2008.  This inclusion could help the company's prospects in
obtaining the necessary financing.  Fitch will monitor LSR's
progress in this respect.

The ratings could be affirmed on successful renegotiation of the
EBIT/interest expense covenant, if needed, or if the probability
of its breach substantially decreases, and if LSR obtains the
above mentioned new financing.  Conversely, a downgrade of the
ratings, possibly by more than one notch, could be triggered by a
covenant breach or a substantial increase in the probability of
this occurring and/or failure to achieve new financing by end-
April to cover 2009 debt maturities.  The IDR 'B' factors in
Fitch's expectation that LSR will maintain its EBITDA margin above
20%, achieve the liquidity score of above 1x by end-2009 and
maintain it on a through-the-cycle basis, and keep its gross
leverage below 3.2x.

LSR is a vertically integrated building materials and real estate
development company, geographically focused on St Petersburg, with
a presence in Ekaterinburg, Moscow and some other cities and
countries.  FY07 sales were US$1.4 billion and EBITDA was US$309
million (EBITDA margin 22%), 9M08 sales were US$1.5 billion and
EBITDA was US$377 million (EBITDA margin 25%).  LSR undertook an
IPO in November 2007 in Moscow and London.


NOVOMALTINSKIY CONSTRUCTION: Claims Deadline on Feb. 16
-------------------------------------------------------
Creditors of CJSC Novomaltinskiy Construction Materials Plant (TIN
3840000403) have until Feb. 16, 2009, to submit proofs of claims
to:

         S. Galandin
         Temporary Insolvency Manager
         Post User Box 224
         664007 Irkutsk
         Russia

The Arbitration Court of Irkutsk commenced bankruptcy supervision
procedure.  The case is docketed under Case No. ?19–17584/08–60.

The Debtor can be reached at:

         CJSC Novomaltinskiy Construction Materials Plant
         Novomaltinsk
         Usolskiy
         Irkutskaya
         Russia


* RUSSIA: Fitch Says Outlook for Construction Sector Negative
-------------------------------------------------------------
Fitch Ratings says that the credit outlook for Russian
construction and property companies will continue to be negative
in 2009 as the property market extends its downturn and financing
remains tight.

"The property market downturn in Russia, which started in late
2008, is expected to intensify in 2009.  Main factors driving the
downturn are slowing Russian GDP growth, corporates' and
individual homebuyers' lower access to funds to finance property
purchases, reduced investor activity, and increasingly negative
sentiment overall," says Artem Frolov, Associate Director in
Fitch's EMEA Construction and Property team.  "Both volumes and
prices are expected to fall significantly, and we estimate Russian
property prices will decrease by 20%-40% in 2009, depending on the
region and sector."

Along with a fall in demand, 2009 is likely to see a severe
reduction in supply within the primary property market.  Many
property developers will be unable to finance planned projects
given their low levels of internal cash resources, due to negative
free cash flows, low cash balances, and a lack of access to
external funding, with banks and investors increasingly unwilling,
or simply unable, to provide new debt and equity financing.
"Build-and-sell" developers are now less able to part-finance
projects with pre-sales, as customers become increasingly
reluctant to make cash deposits on non-completed projects for fear
that developers are unable to deliver the final product.  Although
asset and project disposals, as well as investment partners, could
provide financing, these could be challenging to achieve in the
current difficult climate.  Scaling back operating expenses is
expected to only release limited additional funds - insufficient
to meet considerable construction costs.

Following a severe contraction in lending to the Russian property
sector in 2008, Fitch believes the financing environment is
unlikely to materially improve in 2009.  New public debt issuance
will be especially challenging to achieve.  Access to bank
financing - a major source of funding for the sector over the past
several years - will continue to be highly rationed, due to
liquidity constraints within the domestic banking system and with
the reduced activity of foreign banks in the sector.  Similarly,
financing via the equity market is unlikely to be a feasible
option during 2009.  Companies that are able to obtain financing
from state-controlled banks or from supportive parent companies,
such as Sistema-Hals JSC, are likely to fare better.  Fitch notes
that only one company in its rated universe of Russian developers,
OJSC LSR Group, was explicitly included in the recent government
list of corporates qualifying for potential federal support. This
implies that a large-scale state bailout of the sector is
unlikely.

The historical reliance on short-term debt to finance long-term
projects will leave some property and construction companies
facing substantial debt maturities during 2009.  In many cases,
the prospect for repaying or refinancing these debts is uncertain
because of weakening operating cash flows, the difficult
environment for asset sales, limited availability of new debt and
low levels of back-up liquidity including cash and long-term
undrawn committed credit facilities.  The risk could be even
higher for companies with substantial foreign currency-denominated
debt. These companies are particularly vulnerable to further
rouble depreciation, unless they have a sufficient proportion of
operating cash inflows denominated in or linked to foreign
currency.  Fitch also notes that the expected fall in
profitability and asset values during 2009 could lead to covenant
problems, which in turn could intensify liquidity pressures by
triggering the early repayment of certain debt packages.

Credit profiles within the sector have been under pressure since
the spring of 2008, as reflected in a number of negative ratings
actions in the past year.  Fitch currently rates four top-tier
Russian construction and property companies: JSC OPIN
('B'/Stable), Sistema-Hals JSC ('B'/Negative), OJSC LSR Group
('B'/Rating Watch Negative), and Mirax Group LLC ('B'/Rating Watch
Negative).  Given the negative trends across the sector, further
negative rating actions remain a possibility during 2009.


* RUSSIA: Credit Crisis to Hit Smaller Food Stores the Most
-----------------------------------------------------------
Russia's smaller food stores may suffer the most because of the
credit crunch and about a quarter of them may go out of business,
Bloomberg News reports citing X5 Retail Group NV Chief Executive
Officer Lev Khasis.

Mr. Khasis told Bloomberg News in an interview a shortage of bank
credit means some chains may be unable to pay suppliers and be
left with empty shelves.

"The problem of empty shelves is the problem of companies that
will go bankrupt," the news agency quoted Mr. Khasis as saying.
"Up to 25 percent of stores that are not big chains probably will
not survive this year.  Fortunately it's not a long-term
situation.  Some successors will take these stores and open
again."

Mr. Khasis, the report relates, stated bigger chains, including
X5, should benefit from the collapse of smaller rivals.

According to the report, X5 fell 6 cents, or 1 percent, to US$6
Tuesday, Jan. 20, on the London Stock Exchange.  The shares have
dropped 80 percent in the past 12 months, reducing the company's
market value to US$1.63 billion, the report notes.


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


AARE IMMOBILIEN: Creditors Must File Proofs of Claim by Jan. 29
---------------------------------------------------------------
Creditors owed money by JSC Aare Immobilien are requested to file
their proofs of claim by Jan. 29, 2009, to:

         Werner Bani
         Via Vecchia
         6705 Cresciano
         Switzerland

The company is currently undergoing liquidation in Oftringen.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 11, 2008.


BERREN MEDICAL: Deadline to File Proofs of Claim Set Jan. 28
------------------------------------------------------------
Creditors owed money by LLC Berren Medical Consulting are
requested to file their proofs of claim by Jan. 28, 2009, to:

         Obmoos 4
         6301 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 27, 2008.


BONNIE HOLDING: Creditors Have Until Jan. 29 to File Claims
-----------------------------------------------------------
Creditors owed money by JSC Bonnie Holding are requested to file
their proofs of claim by Jan. 29, 2009, to:

         Howard Rosen
         JSC Rosetrust
         Baarerstrasse 98
         6302 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 2, 2008.


BREW-CREW LLC: Proofs of Claim Filing Deadline is Jan. 29
---------------------------------------------------------
Creditors owed money by LLC Brew-Crew are requested to file their
proofs of claim by Jan. 29, 2009, to:

         Enz Peter
         Kappelerweg 9
         8570 Weinfelden
         Switzerland

The company is currently undergoing liquidation in Weinfelden.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 12, 2008.


FGW RESTAURATION: Creditors' Proofs of Claim Due by Jan. 30
-----------------------------------------------------------
Creditors owed money by JSC FGW Restauration are requested to file
their proofs of claim by Jan. 30, 2009, to:

         Peter Loetscher
         Mexican Consulation
         Aeschenvorstadt 21
         4051 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 7, 2008.


MB ARCHITEKTUR: Jan. 29 Set as Deadline to File Claims
------------------------------------------------------
Creditors owed money by LLC MB Architektur are requested to file
their proofs of claim by Jan. 29, 2009, to:

         Dario Veghini
         Oberdorfweg 13 B
         5610 Wohlen
         Switzerland

The company is currently undergoing liquidation in Wohlen AG.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 24, 2008.


NATURE SPIRIT: Creditors Must File Proofs of Claim by Jan. 29
-------------------------------------------------------------
Creditors owed money by LLC Nature Spirit are requested to file
their proofs of claim by Jan. 29, 2009, to:

         Schuler Sergio
         JSC A. Emmenegger
         Chamerstrasse 170
         6304 Zug
         Switzerland

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


SOILEN LLC: Deadline to File Proofs of Claim Set Jan. 28
--------------------------------------------------------
Creditors owed money by LLC Soilen are requested to file their
proofs of claim by Jan. 28, 2009, to:

         LLC Esof
         Obergass 3
         8193 Eglisau
         Switzerland

The company is currently undergoing liquidation in Eglisau.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 27, 2008.


TLA CONSULTING: Creditors Have Until Jan. 28 to File Claims
-----------------------------------------------------------
Creditors owed money by LLC TLA Consulting are requested to file
their proofs of claim by Jan. 28, 2009, to:

         LLC Esof
         Obergass 3
         8193 Eglisau
         Switzerland

The company is currently undergoing liquidation in Eglisau.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 27, 2008.


WALTER ZWAHLEN: Proof of Claim Filing Deadline Set Jan. 29
----------------------------------------------------------
Creditors owed money by LLC Walter Zwahlen are requested to file
their proofs of claim by Jan. 29, 2009, to:

         Daniel Jaggi
         Giessackerstrasse 27
         8951 Fahrweid-Geroldswil
         Switzerland

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


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


FOODMAKERS SUPPLY: Creditors Must File Claims by Jan. 23
--------------------------------------------------------
Creditors of CJSC Ukrainian Union on Associated Development of
Foodmakers Supply (EDRPOU 31953499) have until Jan. 23, 2009, to
submit proofs of claim to:

         Mr. Andrew Nadlonok
         Liquidator
         Zubrovskaya Str. 25a/33
         79066 Lvov
         Ukraine
         Tel: 8(097)289-43-40

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Nov. 11, 2008.
The case is docketed as 23/73-b.

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

The Debtor can be reached at:

         CJSC Ukrainian Union on
         Associated Development of Foodmakers Supply
         Apt. 304
         Zhukov Str. 45
         02166 Kiev
         Ukraine


GAZ EQUIPMENT: Creditors Must File Claims by January 23
-------------------------------------------------------
Creditors of OJSC Lvov Plant of Gaz Equipment (EDRPOU 00153471)
have until Jan. 23, 2009, to submit proofs of claim to:

         Mr. I. Shymchishyn
         Temporary insolvency Manager
         Apt. 8
         Shevchenko Str. 400
         79069 Lvov
         Ukraine

The Arbitration Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 27/91.

         The Economic Court of Lvov
         Lichakivska Str. 128
         79010 Lvov
         Ukraine

The Debtor can be reached at:

         OJSC Lvov Plant of Gaz Equipment
         Gazovaya Str. 28
         Lvov
         Ukraine


KARPATY LTD: Creditors Must File Claims by January 23
-----------------------------------------------------
Creditors of LLC Agricultural Firm Karpaty Ltd. (EDRPOU 31792432)
have until Jan. 23, 2009, to submit proofs of claim to:

         Mr. O. Savchuk
         Temporary Insolvency Manager
         Apt. 39
         V. Stus Str. 9
         76008 Ivano-Frankovsk
         Ukraine
         Tel: 8(0342)722-564

The Arbitration Court of Ivano-Frankovsk commenced bankruptcy
proceedings against the company after finding it insolvent on Nov.
11, 2008.  The case is docketed as BP-21/140.

         The Economic Court of Ivano-Frankovsk
         Shevchenko Str. 16
         76000 Ivano-Frankovsk
         Ukraine

The Debtor can be reached at:

         LLC Agricultural Firm Karpaty Ltd.
         Sobornaya Str. 15
         Podgaychiki
         Kolomiya
         Ivano-Frankovsk 78254
         Ukraine


KARSAN CAR: Creditors Must File Claims by January 23
----------------------------------------------------
Creditors of LLC Karsan Car Transport (EDRPOU 31979428) have until
Jan. 23, 2009, to submit proofs of claim to:

         Mr. Igor Boliak
         Strimka Str. 4/8
         79019 Lvov
         Ukraine
         Tel: 240-80-30

The Arbitration Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 6/150-8/233.

         The Economic Court of Lvov
         Lichakivska Str. 128
         79010 Lvov
         Ukraine

The Debtor can be reached at:

         LLC Karsan Car Transport
         Bratya Lisiki Str. 1-A
         Borislav
         Lvov
         Ukraine


KIEV BREWERY #1: Creditors Must File Claims by January 23
---------------------------------------------------------
Creditors of LLC Kiev Brewery #1 (EDRPOU 00377549) have until
Jan. 23, 2009, to submit proofs of claim to:

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

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 2, 2008.
The case is docketed as 16/62-b.

The Debtor can be reached at:

         LLC Kiev Brewery #1
         40 Years of Oct. Avenue, 8
         Kiev
         Ukraine


MINE AUTOMATICS: Creditors Must File Claims by January 23
---------------------------------------------------------
Creditors of OJSC Dniepropetrovsk Plant of Mine Automatics (EDRPOU
00159410) have until Jan. 23, 2009, to submit proofs of claim to:

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

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on Dec.
18, 2008.  The case is docketed as B 29/318-08.

The Debtor can be reached at:

         OJSC Dniepropetrovsk Plant of Mine Automatics
         Lazarian Str. 3
         49010 Dnipropetrovsk
         Ukraine


NADRA BANK: Fitch Junks Issuer Default Rating; Outlook Negative
---------------------------------------------------------------
Fitch Ratings has downgraded Nadra Bank's Long-term Issuer Default
Rating (IDR) to 'CC' from 'CCC' while maintaining a Negative
Outlook.  At the same time, the agency has withdrawn all of the
bank's ratings due to insufficient information.  The downgrade
reflects a further recent deterioration in the bank's liquidity
position and increased concerns about asset quality and capital.
Fitch will no longer provide ratings or analytical coverage on
this issuer.

Nadra Bank's ratings are:

   Long-term IDR: downgraded to 'CC' from 'CCC'; Outlook remains
Negative, rating withdrawn

   Senior unsecured debt: Long-term rating downgraded to 'CC' from
'CCC', Recovery Rating affirmed at 'RR4', ratings withdrawn

   Short-term IDR: affirmed at 'C', rating withdrawn

   Support Rating: affirmed at '5', rating withdrawn

   Individual Rating: affirmed at 'E', rating withdrawn

   Support Rating Floor: affirmed at 'No Floor', rating withdrawn



PODZAMCHEYE LLC: Creditors Must File Claims by Jan. 23
------------------------------------------------------
Creditors of Podzamcheye LLC (EDRPOU 22584473) have until Jan. 23,
2009, to submit proofs of claim to:

         Mr. V. Vinnikov
         Temporary Insolvency Manager
         Sportivnaya Str. 2/9
         Pustomity
         Lvov
         Ukraine

The Arbitration Court of Rovno commenced bankruptcy proceedings
against the company after finding it insolvent on of Aug. 29,
2008.  The case is docketed as 4/36.

         The Economic Court of Rovno
         Yavornitskiy Str. 59
         33001 Rovno
         Ukraine

The Debtor can be reached at:

         Podzamcheye LLC
         Podzamcheye
         Radivilov
         Rovno
         Ukraine


RADO-DAR LLC: Creditors Must File Claims by January 23
------------------------------------------------------
Creditors of LLC Rado-Dar (EDRPOU 35472694) have until Jan. 23,
2009, to submit proofs of claim to:

         Mr. O. Tomashevsky
         Liquidator / Insolvency Manager
         Office 72
         Rabochaya Str. 7
         Nikolaev
         Ukraine
         Tel: (0512)44-72-27

The Arbitration Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on DD.  The case is
docketed as #.

         The Economic Court of Nikolaev
         Admiralskaya Str. 22a
         65009 Nikolaev
         Ukraine

The Debtor can be reached at:

         LLC Rado-Dar
         Skliar Str. 38
         Nikolaev
         Ukraine


SAPSAN LLC: Creditors Must File Claims by January 23
----------------------------------------------------
Creditors of LLC Sapsan (EDRPOU 25481242) have until Jan. 23,
2009, to submit proofs of claim to:

         Mr. D. Geraschenko
         Liquidator / Insolvency Manager
         P.O.B. 7611
         69002 Zaporozhje
         Ukraine
         Tel: 8(067)612-11-17

The Arbitration Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent on Dec.
12, 2008.  The case is docketed as 02-7/2517-25/66/06-19/333/08.

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

The Debtor can be reached at:

         LLC Sapsan
         Perspektivnaya Str. 1
         69106 Zaporozhje
         Ukraine


SCHERBINSKIYE LIFTY: Creditors Must File Claims by Jan. 23
----------------------------------------------------------
Creditors of LLC Trading House Scherbinskiye Lifty (EDRPOU
32619694) have until Jan. 23, 2009, to submit proofs of claim to:

         Mr. Ivan Gusar
         Temporary insolvency Manager
         P.O.B. 29
         1030 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 3, 2008.
The case is docketed as 44/311-b.

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

The Debtor can be reached at:

         LLC Trading House Scherbinskiye Lifty
         Svetlogorskaya Str. 5/6
         03065 Kiev
         Ukraine


VIKING LLC: Creditors Must File Claims by January 23
----------------------------------------------------
Creditors of LLC Viking (EDRPOU 33556604) have until Jan. 23,
2009, to submit proofs of claim to:

         Mr. V. Vinnikov
         Temporary Insolvency Manager
         Sportivnaya Str. 2/9
         Pustomity
         Lvov
         Ukraine

The Arbitration Court of Rovno commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 24, 2008.
The case is docketed as 4/51.

         The Economic Court of Rovno
         Yavornitskiy Str. 59
         33001 Rovno
         Ukraine

The Debtor can be reached at:

         LLC Viking
         Volkovenko Str. 1
         Radivilov
         Rovno
         Ukraine


* Moody's Reports Negative Outlook for Ukraine Banking System
-------------------------------------------------------------
The fundamental credit outlook for Ukrainian financial
institutions is negative, reflecting the likelihood that the
banks' financial fundamentals will continue to be negatively
affected by the uncertainty in domestic and international
financial markets, funding pressures, the steep depreciation of
the Ukrainian hryvnia and a slowdown in economic growth, says
Moody's Investors Service in its new Banking System Outlook on
Ukraine.

Moody's negative outlook for the Ukrainian banking system
expresses the rating agency's view on the likely future direction
of fundamental credit conditions in the industry over the next 12
to 18 months.  It does not represent a projection of rating
upgrades versus downgrades.

In addition to the Banking System Outlook, which focuses on
performance measures and forward-looking rating drivers for the
Ukrainian banking system, Moody's has also published a Banking
System Profile report for Ukraine.  The Profile forms part of a
new series of reports on banking systems throughout the world,
which are designed to complement Moody's Banking System Outlook
reports by serving as descriptive reference guides to key
structural factors that are reflected in Moody's bank credit
ratings.

Overall, Moody's considers the financial strength of the Ukrainian
banking sector to be weak.  "Ukrainian banks are facing a number
of challenges, including a reduction in private sector inflows
coupled with the global liquidity and credit crisis, a loss of
domestic depositor confidence, a significantly weakening currency,
a worsening macroeconomic framework and political uncertainty.  A
combination of these factors will lead to a further deterioration
of the financial fundamentals for Ukrainian banks," says Yaroslav
Sovgyra, a Moody's Vice President/Senior Credit Officer and author
of this report.

Moody's believes that funding pressures due to customer deposits
outflow, lack of access to international capital markets and a
likely reduction of parental funding for foreign-owned banks will
prompt banks to adopt more defensive liquidity strategies and will
in turn constrain their ability to grow.  Competition for deposits
will further increase, boosting funding costs and contributing to
margin pressure in the coming year.  More stringent rules on
liquidity and capital requirements, which are part of regulatory
changes implemented in response to the financial crisis in autumn
2008, are likely to lead to some consolidation in the Ukrainian
banking sector.

The worsening economic environment in Ukraine will translate into
asset quality deterioration as Moody's expects both private
households and corporates to face repayment constraints.
Profitability will be adversely affected by increasing loan loss
provisioning charges in 2009, driven by the expected deterioration
in asset quality.  "Most Ukrainian banks are currently
undercapitalised and will need to maintain a larger capital
cushion to absorb an increasing level of loan losses," adds Mr.
Sovgyra.

The two key risks for the Ukrainian banking sector that Moody's
has identified are: firstly, the probability of further hryvnia
depreciation, which will contribute to worsening asset quality
with knock-on effects for the capital base of Ukrainian banks;
and, secondly, the possibility of further deposit outflows, which
might be caused by a further loss of depositors' trust in the
banking system as they seek to convert savings into more stable
foreign currencies.

The expected deterioration of financial fundamentals of Ukrainian
banks over the course of 2009 translates into a negative outlook
currently assigned to most of these banks.  Moody's recently
changed to negative from stable the outlook on the bank financial
strength ratings (BFSRs) of 15 Ukrainian banks and on the long-
term global local currency or foreign currency deposit or debt
ratings of 19 Ukrainian banks.  Moody's will closely monitor the
developments related to these banks and may take specific rating
actions on banks where deterioration in financial metrics show
material weakening relative to their current rating levels.

The principal methodologies used in rating the Ukrainian Banking
System are the "Bank Financial Strength Ratings: Global
Methodology" and "Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology", which can be found
at http://www.moodys.comin the Credit Policy & Methodologies
directory, in the Ratings Methodologies sub-directory.  Other
methodologies and factors that may have been considered in the
process of rating this issuer can also be found in the Credit
Policy & Methodologies directory.

The two reports -- "Banking System Outlook: Ukraine" and "Banking
System Profile: Ukraine" -- are available on http://www.moodys.com


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


ANGLO OVERSEAS: In Administration; Vantis Appointed
---------------------------------------------------
Glyn Mummery and Jeremy French, Client Partners at Vantis Business
Recovery Services (BRS), a division of Vantis, the UK accounting,
tax and business advisory group, were appointed joint
administrators on the administration of Anglo Overseas Limited,
the international freight forwarder, on January 16, 2009.  The
company's European parent, Ziegler Group, is not affected.

Anglo Overseas Limited has 15 sites across the UK, including two
bonded warehouses, with a head office in West Thurrock.

The business was forced into insolvency following a prolonged
period of exceptionally difficult trading conditions.  The company
recently entered into a comprise agreement with HM Revenue &
Customs regarding a VAT fraud which, as it was acknowledged, was
not the fault of the company or its staff.  This, compounded with
cash flow restrictions, has resulted in the withdrawal of group
support culminating in the appointment of administrators.

As a part of immediate cost-cutting measures, unfortunately 70 of
the company's 210 staff have had to be made redundant.

Commenting on the administration, Glyn Mummery said: "Anglo
Overseas Limited has a great deal of heritage and is highly
respected in the marketplace.  It operates what is probably the
second largest bonded warehouse in London, dealing with clients
such as the champagne house that supplies the Royal Family.  We
are working closely with the management team to assess the
opportunities to rescue all or parts of the business."


CO-OPERATIVE BANK: Fitch Puts Short-term IDR of 'F1' on WatchNeg
----------------------------------------------------------------
Fitch Ratings has placed The Co-operative Bank's (CB) Long-term
Issuer Default Rating (IDR) of 'A', Individual Rating of 'B/C' and
Short-term IDR of 'F1' on Rating Watch Negative (RWN).  Fitch has
simultaneously affirmed CB's Support Rating of '3' and Support
Rating floor of 'BB+'.  The rating action has no impact on CB's
covered bond rating of 'AAA'.  At the same time, Fitch has also
placed Britannia Building Society's (Britannia) senior debt rating
of 'A' on RWN and affirmed Britannia's other ratings.

The rating action is based on the institutions' announcement on
January 21, 2009 of their intention to merge their businesses
following this week's change in legislation, which now permits
such a combination.  As a result of the transaction, Britannia
will form a large part of the combined institution which will be
owned by Co-operative Financial Services (CFS).  CFS itself is
part of the Co-operative Group (CG).  Britannia's members will
become members of CG.

The RWN on CB's Long- and Short-term IDRs and Individual Rating
reflects the agency's view that CB's credit and funding risk
profile will weaken as a result of the merger.  In particular,
CB's historically strong deposit/loan ratio will be somewhat
diluted by the addition of Britannia's larger wholesale funding
component.  Fitch considers that certain portions of Britannia's
specialist residential mortgage lending may be more susceptible to
the weaker operating environment than CB's current residential
mortgage portfolio.  Fitch also notes CB's smaller size relative
to Britannia.  However, Fitch understands that CB's liquidity and
funding position has historically been strong and should support
the new entity's funding and liquidity position.  Fitch will
analyze the combined bank's liquidity and credit risks in greater
detail in the coming months before the transaction is completed
which could lead to CB's Short-term IDR being affirmed or
downgraded to 'F2'.

The affirmation of Britannia's issuer ratings and Outlook reflects
the fact that Britannia will contribute the bulk of loans to the
new bank.  Its funding position should improve as the combined
entity will benefit from a larger customer deposit base and a
smaller wholesale funding ratio (as calculated by Fitch).  The
conversion of Britannia from a building society into a commercial
bank will result in share accounts no longer ranking behind non-
member deposits and other unsubordinated liabilities in the event
of liquidation.  As a result, the conversion will result in an
equalization of senior debt ratings with Britannia's Long-term
IDR, hence the RWN assigned to its senior debt rating.

"The merger between The Co-operative Bank and Britannia Building
Society creates a larger mutual financial institution which has
greater UK market shares in residential mortgages and saving
deposits," said Andrea Jaehne, Director of Fitch's financial
institutions group.  "It will also offer a wider range of products
to a larger and more diversified customer base, while
strengthening The Co-operative Bank's solid niche franchise."

Both businesses will maintain their brand names over the
integration period.  The combined bank will have a nationwide
presence with more than 300 branches serving some eight million
customers.  The new bank aims to create annual synergies of at
least GBP60 million by the third year, mainly through cost
savings.  The loan book of the new bank will be split into
corporate lending, including commercial property, and retail
lending.  Residential mortgages account for the majority of retail
loans.  Based on November 2008 figures, nearly two-thirds of
residential mortgages consist of prime owner-occupied mortgages,
with the remainder being split almost equally among buy-to-let,
self-certification and adverse mortgages.  Fitch views all of the
specialist mortgage products as riskier than prime owner occupied
mortgages, especially in light of falling house prices, increasing
unemployment and a deteriorating economic environment.

The new bank's loan book will be mainly funded through customer
deposits.  The new bank should retain the good liquidity position
of both institutions.  Capitalization is expected to be adequate
in light of the new bank's risks and currently expected moderate
profitability in the initial years following the merger.  Fitch
notes that, as a result of new legislation, for regulatory
purposes Britannia's permanent interest bearing shares will no
longer be treated as a Tier 1 instrument, but as Tier 2 capital.
These capital securities will continue entirely to account as
capital in Fitch's analysis of the equity of the new institution.

The Co-operative Bank plc:
   Long-term IDR of 'A' placed on RWN
   Short-term IDR of 'F1' placed on RWN
   Individual Rating of 'B/C' placed on RWN
   Support Rating affirmed at '3'
   Support Rating Floor affirmed at 'BB+'

Britannia Building Society:
   Long-term IDR affirmed at 'A-' (A minus); Outlook Negative
   Short-term IDR affirmed at 'F2'
   Individual Rating affirmed at 'C'
   Support Rating affirmed at '3'
   Support Rating Floor affirmed at 'BB+'
   Senior unsecured debt rating of 'A' placed on Rating Watch
Negative
   Subordinated notes and permanent interest bearing shares
affirmed at 'BBB+'


DSG INTERNATIONAL: Appoints John Allan as New Chairman
------------------------------------------------------
John Allan will be taking over as Chairman of DSG International
plc.

On June 26, 2008, Sir John Collins' disclosed its intention to
retire at Group's AGM on September 2, 2009.

Mr. Allan has held senior roles in a number of blue-chip
international businesses in a career that has spanned marketing
and finance as well as general management.  He is currently Chief
Financial Officer of Deutsche Post World Net from which he will
retire in June 2009.  He was previously the Management Board
Member in charge of the group's Corporate Division LOGISTICS.  His
appointment followed Deutsche Post World Net's acquisition of Exel
plc in December 2005, where he had been Chief Executive Officer.
Prior to that Mr. Allan pursued a successful career in marketing
and management, working at Lever Brothers, Bristol-Myers, Fine
Fare Limited and BET plc.

It is expected that Mr. Allan will join the Board of DSGi as a
non-executive Director ahead of his appointment as Chairman to
provide a suitable handover period.  A further announcement on the
starting date will be made as soon as possible.

Andrew Lynch, Senior Non-Executive Director commented on the
appointment.  "I am very pleased that John has agreed to join DSG
international as our new Chairman.  John is a highly-regarded
executive with a strong track record.  He brings to the Group a
wealth of large multinational company experience from areas
including marketing, service, and corporate management, and I know
he will make a valuable contribution."

Mr. Allan said: "I am delighted to be joining DSG international at
this important time in its development.  The Group has many
challenges as well as significant opportunities under the Renewal
and Transformation plan.  I am looking forward to renewing my
involvement in retail and being part of the business as it
continues to execute this plan and improve its offering for
customers."

Headquartered in Hemel Hempstead, England, DSG international plc
-- http://www.dsgiplc.com/-- is a consumer electronics retailer.

                       *     *     *

As reported in the TCR-Europe on Nov. 13, 2008, Fitch Ratings
downgraded UK-based consumer electronics retailer DSG
International plc's Long-term Issuer Default rating to 'BB-' from
'BB+' and affirmed the company's Short-term IDR at
'B'.  The Rating Outlook remains Negative.


DSG INTERNATIONAL: Fitch Cuts Issuer Default Rating to 'B'
----------------------------------------------------------
Fitch Ratings has downgraded UK-based consumer electronics
retailer DSG International plc's (DSG) Long-term Issuer Default
rating (IDR) to 'B' from 'BB-' (BB minus) and affirmed the
company's Short-term IDR at 'B'.  The Outlook is Negative.  At the
same time, Fitch has affirmed DSG's senior notes at 'BB-' (BB
minus), with a Recovery Rating of 'RR2'.

The downgrade of the Long-term IDR reflects DSG's weak operating
trends and the expectation for materially weaker credit metrics in
FY09 (fiscal year ending April 30, 2009).  The Negative Outlook
reflects Fitch's expectation for minimal improvement in the
company's credit profile over the next 12-18 months, and the
potential for covenant compliance issues during 2009.

The affirmation of the senior notes reflects Fitch's recovery
analysis, which indicates a 71%-90% recovery to the senior note
holders in a distressed scenario, equating to a Recovery Rating of
'RR2'.  As per Fitch's notching guidelines, this leads to a rating
for the notes two notches above the Long-term IDR, or 'BB-' (BB
minus).

DSG reported that its like-for-like sales declined 10% in the 12
weeks ended January 10, 2009, following a 7% decline in H109 and a
1% increase in FY07.  The company experienced weakness in all of
its regions, including the UK and Ireland, the Nordic region and
southern Europe, offset in part by growth in the e-commerce
division.  DSG also reported that gross margins narrowed by 80pb
in the period.

DSG's management has outlined a transformation plan for the
company, which includes a variety of initiatives to improve the
customer experience, reposition its store portfolio, and reduce
costs.  While the initial results from this plan have been
positive, the difficult macroeconomic environment in the UK and
Europe suggests the recovery effort could take several years.

DSG's weak sales and margin trends have resulted in negative free
cash flow (FCF) after dividends and declining cash balances over
the past two years, and FCF is expected to remain negative in
FY09.  In view of these trends, the company eliminated its FY09
dividend of GBP78 million, and could also dispose of weaker
businesses, which would reduce their drain on consolidated cash
flow.

Fitch expects DSG's leverage will increase further in FY09, with
adjusted net debt/EBITDAR rising to above 5x at FYE09 from 4.4x at
FYE08.  In addition, the fixed charge coverage ratio may decline
to a level that leaves little, if any, cushion relative to the
minimum required in the company's bank credit facility.  The bank
covenants are next tested in June 2009 based on FY09 results.

DSG's ratings continue to be supported by the group's leading
positions within the UK (an approximately 20% market share and
three times larger than its nearest UK rival, Kesa) and Nordic,
Greek and European online consumer electronics markets.


EXPOMEDIA GROUP: Goes Into Administration; MCR Appointed
--------------------------------------------------------
Paul David Williams and Geoffrey Wayne Bouchier of MCR were
appointed joint administrators of Expomedia Group Plc on
January 16, 2009.

On November 10, 2008  Expomedia said that it had seen a
significant reduction in its revenues.  Since the announcement
Expomedia's board has vigorously explored options to address the
company's working capital requirement.  The board has been in
discussions with a number of parties including potential equity
investors, existing shareholders, the company's bankers and key
creditors.  Until recently the directors were hopeful that funding
would be secured.  However, the company has been unable to secure
the required funding.

The company's subsidiaries, which include Expomedia Events UK
Limited, Mash Media and Homebuyer Events Limited, continue to
trade.

Headquartered in Watford, Expomedia Group Plc --
http://www.expomediagroup.com/-- is a holding company and does
not operate conference or exhibitions.


FOX HAYES: Goes Into Administration; Begbies Traynor Appointed
--------------------------------------------------------------
David Wilson and Julian Pitts of rescue, recovery and
restructuring specialist Begbies Traynor, have been appointed as
joint administrators to Leeds based law firm Fox Hayes LLP.

The company's core business is property conveyancing, having sold
the traditional commercial and private client parts of its
business to another Leeds-based law firm, Lupton Fawcett, on
December 18, 2008.

As a result of the administration, all of the 115 staff have been
made redundant with immediate effect.  The administrators are
currently undertaking an assessment of the creditor position, and
will make a further announcement on any possible outcome for the
company when it is appropriate to do so.

According to Yorkshire Evening Post, Mr. Wilson said the main
reason for Fox Hayes going into administration was the collapse in
the property market.  He warned other smaller practices could
disappear for similar reasons.

"The problems were caused by a decline in the volume of work,
while the decline in interest rates reduced income from client
account money," Mr. Wilson was quoted by Yorkshire Evening Post as
as saying.


INSPIRE GLG: Appoints Joint Administrators from Tenon Recovery
--------------------------------------------------------------
Gary Steven Pettit of Begbies Traynor and Colin Nicholls of Tenon
Recovery were appointed joint administrators of Inspire GLG Ltd.
on Jan. 6, 2009.

The company can be reached at:

         Inspire GLG Ltd.
         Severn House
         Riverside North
         Bewdley
         Worcestershire
         DY12 3LL
         England


JESSE SHIRLEY: In Administration; KPMG Appointed
------------------------------------------------
Richard Philpott and Allan Graham from KPMG have been appointed
administrators to Jesse Shirley & Son Limited and Hudson and
Middleton Limited at the request of the company directors.

Jesse Shirley & Son Limited is a subsidiary of Jesse Shirley
Limited.  It was founded in 1820 and has been owned and run by the
Shirley family at the original premises in Etruria, Staffordshire,
at the heart of England's historic 'Potteries' area.  The company
has been involved in supplying boneash to Wedgwood since 1837.
Hudson & Middleton Limited is a subsidiary of Jesse Shirley
Limited and was acquired by them in 1982.  It is one of the oldest
potteries in England, founded in 1875 and is a manufacturer of
fine bone china, also based in Stoke on Trent.

Richard Philpott said: "The current climate is an extremely
difficult time for the fine china industry as a whole; however,
following the administration of Wedgwood the company has
experienced a 30% decline in turnover and suffered a bad debt of
approximately GBP120,000 across the two companies.  This, together
with the tightening of trade credit, has led to the businesses'
recent cash flow difficulties and the directors had no option but
to make the decision to call in the administrators."

The joint administrators intend to trade the businesses with a
view to selling them as a going concern.  However, some
redundancies have been inevitable with 36 redundancies at Jesse
Shirley & Son Limited and 19 redundancies at Hudson and Middleton.
The remaining staff will work with administrators and attempt to
fulfill outstanding orders.


JJB SPORTS: Board Suspends CEO Chris Ronnie
-------------------------------------------
The board of JJB Sports plc on Tuesday, January 20, suspended its
chief executive Chris Ronnie, pending the outcome of an ongoing
investigation being conducted by its legal advisers into certain
matters.

On Jan. 16, 2009, the TCR-Europe reported that according to The
Daily Telegraph, the Financial Services Authority launched an
investigation into share disposals at JJB.

According to the report, the FSA's action came after the retailer
revealed that Guro Leisure, a company in which Mr. Ronnie holds a
50% stake, had offloaded a 27.5% stake in JJB without disclosing
the disposal.

Mr. Ronnie, the report recalled, acquired the 27% stake from JJB
founder and Wigan Football Club owner Dave Whelan in June 2007
with a loan from Kaupthing Singer & Friendlander, which was placed
into administration in October last year,

The bank, report stated, is understood to have  foreclosed on the
loan last year and taken the shares as security.  However, neither
the bank nor Mr. Ronnie disclosed the move.

The reasons why Kaupthing foreclosed on the loan and why the
change in share ownership was not disclosed remain unclear, the
report noted.

JJB, as cited by the report, said "Mr. Ronnie has informed the
company that he is not aware of the date or place of the relevant
transaction or of the price per share in respect of the
transaction but that he understands that the legal and beneficial
ownership of the shares and accordingly the voting rights
attaching to the same were transferred pursuant to the loan
documents."

JJB, the report recounted, was notified Monday, January 12, that
KSF holds 65.5 million JJB shares.

The retailer was informed by Mr. Ronnie that Guro Leisure had
handed 68.9 million JJB shares to KSF, the report related.

PwC, KSF's administrator, now holds 65.5 million JJB shares and is
the company's major shareholder after the bank's collapse, says
the report.  Meanwhile, the location of the remaining 3.4 million
shares remains unclear, the report added.

                        About JJB Sports

Headquartered in Wigan, England, JJB Sports plc --
http://www.jjbcorporate.co.uk/-- is engaged in the retailing of
sportswear and sporting equipment.  The company also operates a
chain of fitness clubs, which has a smaller number of indoor
soccer centers attached to them.  It also operates a television
broadcasting and marketing business, which specializes in the
marketing of golf products and fitness equipment through Sky
Television.

On Oct. 2, 2008, the TCR-Europe reported that Deloitte & Touche
LLP raised going concern issues about JJB Sport plc's interim
report and condensed financial statements for the 26 weeks to July
27, 2008.

Deloitte pointed to material uncertainties that may cast
significant doubt on the group's ability to continue as a going
concern.  These material uncertainties comprise:

    * ongoing availability of the original facilities given the
      actual and projected covenant breaches;

    * the ability to repay the bridging facility from asset
      sales or seasonal cash flows;

    * achieving the sale of non-core businesses and/or assets
      within the timescales and at the values projected; and

    * the achievability of forecasts and key assumptions within
      the forecasts.

Deloitte warned there is a risk that the material uncertainties as
to the group's ability to continue as a going concern may not be
resolved satisfactorily.


JJB SPORTS: To Pay GBP8.3 Mln in Fees Under Bank Deal
-----------------------------------------------------
JJB Sports plc noted the recent press speculation regarding the
terms of the arrangements entered into with its three lenders
Barclays, HBOS and Kaupthing in December 2008.

JJB confirmed that the arrangement with its lenders referred to in
its announcement of December 10, 2008 was set out in a standstill
agreement entered into between the company and the lenders on
December 10, 2008 which provides for the extension of the
Kaupthing facility, and continued access to both the Barclays and
HBOS facilities, to January 30, 2009.  In consideration, the
company agreed to a margin uplift for both the Barclays and HBOS
facilities to bring them in line with the terms of the Kaupthing
facility and to pay fees of approximately GBP8.3 million to the
lenders, with payment expected in February and April 2009.

JJB said Barclays, HBOS and Kaupthing remain supportive of the
company under the leadership of the new Executive Chairman, Sir
David Jones.  It noted it is in constructive discussions with its
lenders to extend the term of the standstill agreement and the
lenders will be considering the provision of medium term
facilities to support the business.

                        About JJB Sports

Headquartered in Wigan, England, JJB Sports plc --
http://www.jjbcorporate.co.uk/-- is engaged in the retailing of
sportswear and sporting equipment.  The company also operates a
chain of fitness clubs, which has a smaller number of indoor
soccer centers attached to them.  It also operates a television
broadcasting and marketing business, which specializes in the
marketing of golf products and fitness equipment through Sky
Television.

On Oct. 2, 2008, the TCR-Europe reported that Deloitte & Touche
LLP raised going concern issues about JJB Sport plc's interim
report and condensed financial statements for the 26 weeks to July
27, 2008.

Deloitte pointed to material uncertainties that may cast
significant doubt on the group's ability to continue as a going
concern.  These material uncertainties comprise:

    * ongoing availability of the original facilities given the
      actual and projected covenant breaches;

    * the ability to repay the bridging facility from asset
      sales or seasonal cash flows;

    * achieving the sale of non-core businesses and/or assets
      within the timescales and at the values projected; and

    * the achievability of forecasts and key assumptions within
      the forecasts.

Deloitte warned there is a risk that the material uncertainties as
to the group's ability to continue as a going concern may not be
resolved satisfactorily.


JPM ECO: Goes Into Administration
---------------------------------
Kevin Feddy at Manchester Evening News reports that haulage firm
JPM Eco Logistics has gone into administration after running into
financial difficulties.

Tenon Recovery has been appointed administrator and is hoping to
sell the business as a going concern, the report relates.

"The UK's current economic situation has adversely impacted on the
haulage sector and, with a move to new premises also causing
challenges, the directors of JPM Eco Logistics have found
themselves unable to sustain the company's progress," Jeremy
Woodside, a director at Tenon Recovery, was quoted by the report
as saying.  "We are in talks with a number of parties with a view
to selling the business, and are hopeful of a positive outcome."

The report recounts Dragons' Den entrepreneurs Theo Paphitis and
Deborah Meaden acquired a 40% stake in JPM Eco Logistics for
GBP100,000 after it was launched in 2007.  The pair said in a
statement they invested a further GBP27,500 last September at
short notice, at the directors' request, the report notes.

The company, led by Jerry Mantalvanos and Paul Merker, runs its
fleet of nine trucks on 100 per cent biodiesel made from rapeseed
oil, the report discloses.


LSG 4 DRIVERS: Appoints Joint Liquidators from Tenon Recovery
-------------------------------------------------------------
Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were
appointed joint liquidators of LSG 4 Drivers Ltd. on Jan. 6, 2009,
for the creditors' voluntary winding-up proceeding.

The company can be reached through Tenon Recovery at:

         Tollgate
         Chandlers Ford
         Eastleigh
         Hampshire
         SO53 3TZ
         England


POYNTON VAN: Names Joint Administrators from Baker Tilly
--------------------------------------------------------
Lynn Robert Bailey and Guy Edward Brooke Mander of Baker Tilly
Restructuring and Recovery LLP were appointed joint administrators
of Poynton Van & Truck Centre Ltd. on Jan. 7 2009.

The company can be reached at:

         Poynton Van & Truck Centre Ltd.
         Boundary Road
         Industrial Estate
         Stafford Road
         Fordhouses
         Wolverhampton
         WV10 7ER
         England


ROYAL BANK: UK Government Discloses Second Bailout Plan
-------------------------------------------------------
The U.K. government has announced a second bailout plan designed
to protect financial institutions against exposure to exceptional
future credit losses on certain portfolios of assets.

Called the Asset Protection Scheme, the plan "is designed to
restore confidence to financial markets, supporting financial
stability and the availability of credit to creditworthy borrowers
in the economy," U.K.'s economics and finance ministry said in a
statement Monday, Jan. 19.

According to the HM Treasury, the government will be taking
forward discussions in the coming weeks with its international
partners about the establishment and co-ordination of such schemes
by a number of countries.

The Wall Street Journal reports that the latest plan comes just
three months after Prime Minister Gordon Brown announced a GBP400
billion package that included GBP37 billion of capital injections
into The Royal Bank of Scotland Group plc ("RBS"), HBOS PLC and
Lloyds TSB Group PLC.

The first bailout plan, the Journal says, prevented U.K. banks
from collapsing but failed to stabilize the broad banking markets
as the U.K. slid into recession.

Bloomberg News relates that under the new bailout plan, the U.K.
government will charge a fee to insure about 90 percent of banks'
potential losses on assets that could erode their capital.  In
addition, a GBP250 billion credit guarantee plan will be extended
until the end of this year in an effort to encourage banks to
increase lending amid a recession, the news agency says.

                 RBS Statement on the Bailout Plan

Commenting on the package of measures announced by the U.K.
government, in support of the financial system, RBS Chief
Executive, Stephen Hester said:

"A range of measures have been announced that fall broadly into
support for bank asset quality, support for funding and traded
asset pricing and clarification of capital requirements.  Clearly
there are important details yet to be worked out, especially
relating to the proposed asset insurance scheme which if done well
could be a powerful tool to help banks and in turn secure expanded
bank lending support for the economy.

"Overall the package is both wide ranging and, prospectively,
supportive and well-targeted.  The authorities have listened to
market needs and responded.  We fully understand the role banks
need to play in return, in providing support for our customers,
and will be doing just that".

Chairman Designate of RBS, Sir Philip Hampton, added:

"Around the world, the gravity of the economic threat is causing
governments and banks to work together as never before.  This is
appropriate given the interdependencies of modern economies.  I
welcome the measures announced in the UK today.  Their
effectiveness will depend crucially on details to come but I
believe the direction is right".

                    Full Year 2008 Loss Seen

RBS estimates the group will report for full year 2008 an
attributable loss, before exceptional goodwill impairments, of
between GBP7.0 billion and GBP8.0 billion, citing significant
credit impairment losses and credit-market writedowns due to the
financial crisis.

According to RBS, the group's credit impairment losses for 2008
are estimated to be between GBP6.5 billion and GBP7.0 billion
while write-downs for the full year relating to the group's credit
market exposures are estimated in the region of GBP8 billion after
hedging gains of approximately GBP1.7 billion.

RBS expects to release its 2008 results on February 26, 2009.

                      Government Stake Sale

RBS said it has reached agreement with HM Treasury ("HMT") and UK
Financial Investments ("UKFI") to replace the GBP5 billion of
preference shares it holds with new ordinary shares.

With the deal, the U.K. government's share of RBS will increase to
70% from 58%, the Journal says.

Eligible RBS shareholders will be able to apply to subscribe for
approximately GBP5 billion of new ordinary shares pro rata to
their existing shareholdings at a fixed price of 31.75 pence per
share.  This represents an 8.5 per cent discount to the closing
price on January 16, 2009.

The new ordinary shares will be offered to shareholders and new
investors on the same basis as the Offer in November 2008.  The
ordinary shares offer is fully underwritten by HMT.  The proceeds
of the issue will be used to fully redeem the preference shares
held by HMT.

                            About RBS

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


REDMILL DEVELOPMENTS: Taps Joint Administrators from Deloitte
-------------------------------------------------------------
Ian Brown and Neil Matthews of Deloitte LLP were appointed joint
administrators of Redmill Developments Ltd. on Jan. 13, 2009.


The company can be reached through Deloitte LLP at:

         Gainsborough House
         34-40 Grey Street
         Newcastle upon Tyne
         NE1 6AE
         England


L&R HOLDING: Appoints Joint Administrators from KPMG
----------------------------------------------------
Myles Antony Halley and Jane Bronwen Moriarty of KPMG LLP were
appointed joint administrators of WH2001/L&R Holding Partnership
on Jan. 12, 2009.

The company can be reached through KPMG LLP at:

         8 Salisbury Square
         London
         EC4Y 8BB
         England


RIGHTLAND LTD: Names Joint Administrators from KPMG
---------------------------------------------------
Myles Antony Halley and Jane Bronwen Moriarty of KPMG LLP were
appointed joint administrators of Rightland Ltd. on Jan. 12, 2009.

The company can be reached through KPMG LLP at:

         8 Salisbury Square
         London
         EC4Y 8BB
         England


TRIMCROWN LTD: Taps Joint Administrators from KPMG
--------------------------------------------------
Myles Antony Halley and Jane Bronwen Moriarty of KPMG LLP were
appointed joint administrators of Trimcrown Ltd. on Jan. 12, 2009.

The company can be reached through KPMG LLP at:

         8 Salisbury Square
         London
         EC4Y 8BB
         England


WISE 2006-1: Moody's Junks Rating on GBP11.25MM Class C Notes
-------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of three
classes of notes issued by Wise 2006-1 plc, and the rating of a
Super Senior CDS Swap entered into by Dexia Credit Local
(protection buyer).

The transaction is a replenishable, synthetic balance sheet CDO
with an underlying portfolio consisting of GBP denominated PFI and
utility bonds each guaranteed by one monoline in these pool (in
brackets the current Insurance Financial Strength Rating):

   -- Assured Guaranty Corp (Rating: Aa2)

   -- Ambac Assurance Corporation (Rating: Baa1)

   -- CIFG Guaranty (Rating: B3; on review, direction uncertain)

   -- Financial Guaranty Insurance Company (Rating: Caa1)

   -- Financial Security Assurance Inc. (Rating: Aa3)

   -- MBIA Insurance Corporation (Rating: Baa1)

   -- Syncora Guarantee Inc. - formerly XL Capital Assurance Inc.
(Rating: Caa1; on review, direction uncertain)

This rating action is in response to the deterioration of the
creditworthiness of the monoline pool to which this transaction is
exposed.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Report:

-- Moody's Approach to Rating Corporate Collateralized Synthetic
Obligations (December 2008)

On January 15, 2009 Moody's published a press release titled
"Moody's updates key assumptions for rating corporate synthetic
CDOs" in which it announced a revision and update to certain key
assumptions that it uses to rate and monitor corporate synthetic
CDOs.  These revised corporate correlation and default probability
parameters have been adjusted to the project finance debt context
and incorporated for the modeling of this transaction.

The rating actions are:

1) GBP30,000,000 Class A Credit-Linked Notes due 2058

   Current Rating: Ba3

   Prior Rating: Baa1, on review for possible downgrade

   Prior Rating Action Date: 31 October 2008, placed on review for
possible downgrade

2) GBP22,500,000 Class B Credit-Linked Notes due 2058

   Current Rating: B3

   Prior Rating: Ba1, on review for possible downgrade

   Prior Rating Action Date: 31 October 2008, placed on review for
possible downgrade

3) GBP11,250,000 Class C Credit-Linked Notes due 2058

   Current Rating: Caa2

   Prior Rating: Ba2, on review for possible downgrade

   Prior Rating Action Date: 31 October 2008, placed on review for
possible downgrade

4) GBP1,436,250,000 Super Senior Credit Default Swap maturing
2058.

   Current Rating: Aa1

   Prior Rating: Aaa, on review for possible downgrade

   Prior Rating Action Date: 31 October 2008, placed on review for
possible downgrade


* Fitch Says U.K. Government Schemes May Unlock Credit Markets
--------------------------------------------------------------
Fitch Ratings says the UK government's various support schemes
announced earlier this week have the potential to unlock the UK's
structured finance and broader credit markets.  However, the
success of the schemes will depend on the specifics regarding
their implementation, which remain unclear at this point.  Further
announcements detailing the schemes are anticipated from the
Treasury in the coming weeks.

"Significantly, the Treasury has announced that the guarantee
scheme for asset-backed securities will not be restricted to
mortgage-backed assets," says Stuart Jennings, EMEA Structured
Finance Risk Officer.  "Therefore the guarantee scheme could
potentially unlock a wider range of capital markets than is
currently the case."

Regardless of the scheme, it remains Fitch's view that the risk of
loss on existing 'AAA'-rated notes remains minimal.  That said,
the overlay of a government guarantee for new 'AAA'-rated
structured finance notes should provide additional comfort to
investors, while posing a minimal risk of losses to the taxpayer.

Meanwhile the Bank of England's prospective asset purchase
facility and the extension of the discount window facility, also
announced this week, will step in and maintain liquidity following
the expiry of the special liquidity scheme (SLS) on January 30,
2009.  Fitch will be publishing further commentary on the
resilience of UK Prime RMBS next week.

Fitch estimates that approximately GBP230 billion of SLS-eligible
structured finance notes have been issued since the scheme's
inception in April 2008.

From February 2, 2009 under the asset purchase facility, the Bank
of England will be authorized by the Treasury to purchase high
quality private sector assets, including paper issued under the
government's credit guarantee scheme, corporate bonds, commercial
paper, syndicated loans and a 'limited range of ABS created in
viable securitization structures'.

The measures announced on Monday are part of the UK authorities'
broader initiatives aimed at underpinning confidence in the UK
banking sector as well as attempting to free up capital and
lending capacity to allow the major UK banks to increase the
supply of credit to key segments of the UK economy.  Availability
of credit has been perceived by the UK authorities as a key factor
in efforts to prevent a more serious economic situation
developing.  Fitch views the package as broadly positive as it
provides an array of options to tackle the banking sector's
problems.  However, ultimate success, and take-up, will depend on
pricing and other criteria.  Fitch expects those UK banks with
government capital to be early users of the various schemes.

The immediate fiscal cost of the announced measures appears to be
small despite the size of the potential guarantees and liquidity
measures, with only the proposed GBP50 billion asset purchase
program being funded by the issue of Treasury bills.

Fitch expects to comment further on these proposals as further
details are released.


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


* Fitch: Cash Flow Key to Assessing Euro Pension Deficit Impact
---------------------------------------------------------------
Fitch Ratings says debt investors concerned about the impact of
rising pension deficits on the credit quality of European
corporates should look beyond headline deficits or surpluses, and
concentrate on the implications for cash funding, as this is
ultimately key to a company's ability to service its debt.

"There is likely to be a lot of bad news around corporate pensions
in the upcoming reporting season.  While accounting measures may,
in many cases, appear healthy, with the effect of falling asset
values offset by elevated corporate bond spreads, underlying
measures are likely to paint a worse picture," says Alex
Griffiths, Senior Director in Fitch's Corporate group in London.

"However, in most cases the deteriorating funding position is
expected to have a limited short-term impact on companies' cash
funding requirements, and, assuming assets recover in the medium
term, should not fundamentally change the nature of what remains a
long-term liability.  The devil is in the detail, however, and
Fitch will continue to look beyond headline numbers for specific
companies to determine the existence and extent of any additional
cash flow demands."

While Fitch recognizes pension obligations are debt-like and
computes pension-adjusted credit metrics to take this into
account, once it has been established that a pension deficit is
potentially a significant credit issue, Fitch explores in more
detail the cash flow impact of such a deficit.

While there will no doubt be pressure from some quarters for
companies to increase pension deficit funding, in reality the
practical consequences of the falling asset values will, in the
short term at least, be limited by a number of factors.

In the UK, for example, negotiations between pension scheme
trustees and sponsoring employers take place on a triennial basis,
following full actuarial valuations.  While in some circumstances
this process can be accelerated, employers will have to address
the real prospect of liquidity constraints and their own solvency
(the 'employer covenant' in UK pensions terminology).  This
suggests they will strongly resist additional demands for
additional cash by pension scheme trustees, and have their own
constrained liquidity to use as a bargaining tool.  Fitch believes
they seem likely to get some support in this stance from The
Pensions Regulator, which in recent pronouncements has emphasized
a measured response by trustees to the current crisis.  In
guidance to trustees issued in October 2008, it suggested the
current recession, and associated increase in deficits, may result
in 'longer recovery periods being proposed, recognizing the
emerging pressures on company cash flows and thus affordability.'
The market had interpreted the Regulator's previous guidance on
recovery periods as suggesting a period of no longer than 10 years
in most circumstances, with many plans having a shorter timescale.

Longer, potentially end-loaded recovery plans are likely, and
Fitch expects to see sponsoring employers using a variety of
measures to either put off paying cash into plans or to reduce the
liability.  The former includes the provision of contingent assets
and transferring non-cash assets such as property to the pension
scheme.  These can affect other creditors' recoveries in the event
of a default.  The current downturn may also give more pressured
employers the additional leverage they need to negotiate reduced
pension benefits, scheme closure to new members or the cessation
of further pension accruals for existing members, reducing their
eventual liability.

In Germany, the other European jurisdiction where significant
pension scheme deficits are often found, legislative arrangements
for defined benefit pensions still favor unfunded schemes (i.e.
where the employer simply pays pensions to former employees as
they fall due).  While this is generally the case, German
legislation allows for plans to be funded voluntarily in a number
of ways, including contractual trust arrangements (CTAs), or
other, insurance-type, structures.  While CTAs typically bear no
statutory requirement to maintain any given funding level, there
may in specific cases be additional factors which do generate some
pressure - for example previous agreements with works councils on
funding levels.

While Fitch believes it unlikely, for most companies, that higher
reported pension deficits in 2009 will lead to rating-material
increases in pension contributions in the short term, there is the
potential that in specific circumstances an increased pension
deficit could be at least a contributory factor to a wider problem
- therefore the agency will continue to investigate the
implications of pensions funding at an individual issuer level as
appropriate.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Jan. 21-22, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Corporate Governance Meetings
       Bellagio, Las Vegas, Nevada
          Contact: www.turnaround.org

Jan. 22-23, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Distressed Investing Conference
       Bellagio, Las Vegas, Nevada
          Contact: www.turnaround.org

Jan. 22-24, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Rocky Mountain Bankruptcy Conference
       Westin Tabor Center, Denver, Colorado
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 5-7, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Caribbean Insolvency Symposium
       Westin Casurina, Grand Cayman Island, AL
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 25-27, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Valcon
       Four Seasons, Las Vegas, Nevada
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 13, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Bankruptcy Battleground West
       Beverly Wilshire, Beverly Hills, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 14-16, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Conrad Duberstein Moot Court Competition
       St. John's University School of Law, New York City
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 1-4, 2009
AMERICAN BANKRUPTCY INSTITUTE
    27th Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 16-19, 2009
COMMERICAL LAW LEAGUE OF AMERICA
    2009 Chicago/Spring Meeting
       Westin Hotel on Michigan Ave., Chicago, Ill.
          Contact: (312) 781-2000; http://www.clla.org/

Apr. 17-18, 2009
NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
    NABT Spring Seminar
       The Peabody, Orlando, Florida
          Contact: http://www.nabt.com/

Apr. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Consumer Bankruptcy Conference
       John Adams Courthouse, Boston, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 27-28, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Corporate Governance Meetings
       Intercontinental Hotel, Chicago, Illinois
          Contact: www.turnaround.org

Apr. 28-30, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Spring Conference
       Intercontinental Hotel, Chicago, Illinois
          Contact: www.turnaround.org

May 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Nuts and Bolts for Young Practitioners
       Alexander Hamilton Custom House, New York City
          Contact: 1-703-739-0800; http://www.abiworld.org/

May 4, 2009
AMERICAN BANKRUPTCY INSTITUTE
    New York City Bankruptcy Conference
       New York Marriott Marquis, New York City
          Contact: 1-703-739-0800; http://www.abiworld.org/

May 7-8, 2009
RENASSANCE AMERICAN MANAGEMENT, INC.
    6th Annual Conference on
    Distressted Investing - Europe
       The Le Meridien Piccadilly Hotel, London, U.K.
          Contact: 1-903-595-3800 or
                   http://www.renaissanceamerican.com/

May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
    27th Annual Spring Meeting
       Gaylord National Resort & Convention Center
       National Harbor, Maryland
          Contact: http://www.abiworld.org/

May 12-15, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Litigation Skills Symposium
       Tulane University, New Orleans, La.
          Contact: http://www.abiworld.org/

May 14-16, 2009
ALI-ABA
    Chapter 11 Business Reorganizations
       Langham Hotel, Boston, Massachusetts
          Contact: http://www.ali-aba.org

June 11-14, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
    BANKRUPTCY PROFESSIONALS
       8th International World Congress
          TBA
             Contact: http://www.insol.org/

July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Mt. Washington Inn
          Bretton Woods, New Hampshire
             Contact: http://www.abiworld.org/

July 29-Aug. 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Westin Hilton Head Island Resort & Spa,
       Hilton Head Island, S.C.
          Contact: http://www.abiworld.org/

Aug. 6-8, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Conference
       Hotel Hershey, Hershey, Pa.
          Contact: http://www.abiworld.org/

Sept. 10-11, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Complex Financial Restructuring Program
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
    17th Annual Southwest Bankruptcy Conference
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Oct. 2, 2009
AMERICAN BANKRUPTCY INSTITUTE
    ABI/GULC "Views from the Bench"
       Georgetown University Law Center, Washington, D.C.
          Contact: http://www.abiworld.org/

Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Paris Las Vegas, Las Vegas, Nev.
          Contact: http://www.abiworld.org/

Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
    21st Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *