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

                           E U R O P E

             Monday, August 10, 2009, Vol. 10, No. 156

                            Headlines

A U S T R I A

UNICREDIT BANK: UniCredit SpA Rating Cut Won't Move Moody's Rating


F I N L A N D

UPM KYMMENE: Fitch Cuts Long-Term Issuer Default Rating to 'BB-'


F R A N C E

PEUGEOT SA: S&P Downgrades Corporate Credit Ratings to 'BB+/B'
SILICUM DE PROVENCE: Court Opens Liquidation Proceedings


G E R M A N Y

COMMERZBANK AG: Posts EUR746 Mln Net Loss in Second Quarter 2009
ESCADA AG: May File for Bankruptcy if Bond Swap Fails, CEO Says
GENERAL MOTORS: Says More Time Needed for Talks on Opel Sale
QIMONDA AG: Elpida Acquires GDDR Technology Licenses
QIMONDA AG: DoveBid Commences Auction for Chip Factory Equipment

* GERMANY: BaFin to Ovesee Insolvent Banks Under Draft Law


I C E L A N D

GLITNIR BANKI: U.K. SFO Intensfies Probe After Kaupthing Loan Leak
KAUPTHING BANK: Regulator Probes Trenvis After Loan Leak
KAUPTHING BANK: U.K. SFO Intensfies Probe After Loan Leak
LANDSBANKI ISLANDS: U.K. SFO Intensfies Probe After Loan Leak


I R E L A N D

ALLIED IRISH: Posts US$1.19 Bln Net Loss in First Half 2009
CLUBKO: Court Orders Liquidation; KPMG Appointed
DASHAVEN LTD: Court Orders Liquidation; KPMG Appointed
IRISH NATIONWIDE: Moody's Reviews 'Ba1' Subordinated Debt Rating
THOMAS READ: Court Orders Liquidation; KPMG Appointed


I T A L Y

CARROZZERIA BERTONE: Italy's Industry Ministry Approves Fiat Offer
FIAT SPA: Italy's Industry Ministry Approves Bertone Offer
FIAT SPA: S&P Affirms Long-Term Corporate Credit Rating at 'BB+'


K Y R G Y Z S T A N

JYL PROM: Creditors Must File Claims by August 15


N O R W A Y

NEMI FORSIKRING: S&P Raises Counterparty Credit Rating to 'BB+'


R U S S I A

MOBILE TELESYSTEMS: Moody's Reviews 'Ba2' Rating for Likely Cut
MOBILE TELESYSTEMS: Fitch Maintains Issuer Default Rating at 'BB+'
NIZHNEKAMSKNEFTEKHIM OAO: Fitch Keeps 'B' Issuer Default Rating
NOVOROSSIYSK OJSC: S&P Affirms Issuer Ratings at 'BB+'


S L O V E N I A

ABANKA VIPA: Gorenjska Merger Talks Won't Affect Moody's Ratings


U N I T E D   K I N G D O M

BORDERS UK: Ernst & Young Expresses Going Concern Doubt
EPIC PLC: Fitch Cuts Ratings on Six Classes of Notes to 'D'
EPL ACCESS: Business Sold to Lavendon Access; 105 Jobs Secured
FOUR SEASONS: Nears Deal to Halve GBP1.5 Bil. Debt Pile
HFW PLASTICS: In Administration; KPMG Appointed

LLOYDS BANKING: Posts US$5.2BB 1H09 Loss; Mulls Share Sale
NORTHERN ROCK: Net Loss Widens to US$1.3 Bln in First Half 2009
ROYAL BANK: Posts GBP1.04 Bln Net Loss in First Half 2009
TRAK GROUP: In Administration; Bridge Business Appointed

* UK: SFO Intensfies Probe Into Icelandic Banks After Loan Leak

* BOND PRICING: For the Week August 3 to August 7, 2009


                         *********


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A U S T R I A
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UNICREDIT BANK: UniCredit SpA Rating Cut Won't Move Moody's Rating
------------------------------------------------------------------
Moody's Investors Service says that the ratings of UniCredit Bank
Austria AG (Bank Austria) are not affected by the rating action on
its parent, UniCredit SpA.  Moody's downgraded UniCredit's bank
financial strength rating to C from C+ with a negative outlook.
The debt and deposit ratings of UniCredit (rated Aa3 for long-term
deposits and senior debt) were not affected by this rating action.

On April 27, 2009, Moody's downgraded Bank Austria's ratings to
D+/A1 with a negative outlook.  As the rating agency stated at the
time, it assumed in its rating assessment that a EUR2 billion-EUR3
billion state capital injection would be forthcoming shortly to
raise the bank's capital ratios and enable it to absorb some of
its expected losses and write downs without adversely affecting
its overall credit profile.  However, Moody's understands that
negotiations regarding such an injection are still ongoing.

Meanwhile, Moody's is closely monitoring Bank Austria's quarterly
results and capital levels as well as the ongoing negotiations to
ensure that the bank's capital levels and credit profile are in
line with its current ratings.  Based in Vienna, Austria, Bank
Austria reported for the first half of 2009 a pre-tax profit of
EUR1,048 million, a Tier 1 capital ratio of 7.53% and total assets
of EUR207.5 billion at the end of the period


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F I N L A N D
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UPM KYMMENE: Fitch Cuts Long-Term Issuer Default Rating to 'BB-'
----------------------------------------------------------------
Fitch Ratings has downgraded Finland-based UPM Kymmene Oyj's Long-
term Issuer Default Rating and senior unsecured rating to 'BB-'
from 'BB+'.  The Short-term IDR has been affirmed at 'B'.  The
Outlook on the Long-term IDR is Negative.

The downgrades reflect a deterioration in UPM's credit profile
from a level already deemed weak for the rating.  The downgrades
also reflect what Fitch views as an aggressive shareholder-
friendly financial policy given the sustained erosion in funds
from operations (FFO) and challenging market conditions.  UPM has
confirmed that it will distribute dividends of at least one third
of net cash flow from operating activities less operational
capital expenditure, calculated as an average over a three year
period.  The group has also obtained authorization to buy-back
51,000,000 shares over the 18 months to September 2010.  The
Negative Outlook reflects Fitch's opinion that UPM's credit
metrics could come under further pressure in the near-to medium-
term, with limited prospect of a market recovery for its core
paper divisions.

The global economic downturn has accelerated demand erosion in the
structurally weak publication paper sector, causing UPM's magazine
and newsprint paper deliveries to fall 25.4% y-o-y in H109.  Fine
and specialty paper deliveries declined 19.3% over the same
period.  Moderate price increases for magazine, newsprint and
coated fine paper, supported by the industry-wide capacity
closures of 2008, were not sufficient to offset the lower volumes,
causing paper sales to decline 21.2% y-o-y to EUR2.8bn in H109.
Fitch's outlook on the paper sector remains negative with further
production curtailments and permanent capacity closures
anticipated in H209 to support producers' pricing power.  With 72%
of its revenues derived from the paper sector in FY08, UPM is
heavily exposed to the combined impact of the structural and
cyclical decline in paper demand in developed economies.

The group's remaining divisions are not immune to the difficult
economic environment and deliveries in label, plywood and forest &
timber dropped 15%, 40% and 36% y-o-y respectively in H109.  A 7%
reported increase in label prices was primarily driven by
favourable FX effects while plywood and sawn timber prices were
down 10-16% y-o-y.  The contribution from the pulp and energy sub-
segments is immaterial (2.5% of H109 sales) as production from
those operations remains primarily for captive use.

UPM's sales and EBITDA declined 22.7% and 43.7% y-o-y respectively
in H109 and the EBITDA margin contracted to 9.9% from 13.6%.
While Fitch notes that profitability improved q-o-q in Q209 due to
lower fibre costs and production curtailments, the agency believes
that those effects will not be sufficient to offset the continuous
pressure on pricing and volumes expected in most of the group's
divisions in H209.  UPM's interest coverage ratio weakened in H109
with funds from operations (FFO)/cash finance costs at 2.6x, down
from 3.5x at FYE08.  Interest-bearing liabilities/LTM Q209 EBITDA
remains high for the rating at 4.8x (4.9x at FYE08 and 3.4x on
LTMQ208) and is expected to exceed 5x in FY09, in spite of
positive free cash flow generation aided by working capital relief
and lower capex.

The ratings continue to be supported by UPM's leading market
position in the magazine segment, its cost position and its
integration into pulp and energy.  Fitch also takes a positive
view on the proposed transfer of Metsaliitto and Oy Metsa-Botnia
Ab's Uruguayan interests to UPM.  The transaction is expected to
close in Q409.  Liquidity was sound at end-H109 with cash and
available committed facilities totaling EUR1.7 billion against
scheduled debt repayments of EUR352 million in FY09.  In March
2009, the group secured a three-year EUR825 million revolving
credit facility to replace the five-year EUR1 billion RCF due to
mature in March 2010.  Committed credit lines also include a five-
year EUR1 billion RCF maturing in March 2012.


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F R A N C E
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PEUGEOT SA: S&P Downgrades Corporate Credit Ratings to 'BB+/B'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term corporate credit ratings on French automaker Peugeot S.A. to
'BB+/B' from 'BBB-/A-3'.  The outlook is negative.  The ratings
were removed from CreditWatch, where they had been placed with
negative implications on June 25, 2009.

At the same time, S&P assigned a recovery rating of '3' to the
existing senior unsecured notes, indicating S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.
Under S&P's criteria, a '3' recovery rating leads us to rate the
debt at the same level as the long-term corporate credit rating.
Consequently S&P has also lowered its issue rating on this debt to
'BB+' from 'BBB-', and removed it from CreditWatch.

S&P's 'BBB' long-term and 'A-2' short-term counterparty credit
rating on Peugeot's fully owned financing subsidiary Banque PSA
Finance (BPF) remain on Credit Watch with negative implications,
where they were placed on June 25, 2009.

"The downgrade reflects S&P's expectations that Peugeot's
profitability and financial profile will deteriorate significantly
owing to the prolonged weakness in European auto demand, which S&P
now anticipate will persist in 2010 in contrast to S&P's previous
assumption of a market recovery that was a factor in S&P's
previous ratings," said Standard & Poor's credit analyst Barbara
Castellano.

In light of these expectations and of Peugeot's historical low
industrial profitability, S&P has lowered its assessment of its
business risk profile to "fair" from "satisfactory," and of its
financial risk profile to "significant" from "intermediate".

At the time of S&P's March 5, 2009, downgrade of Peugeot, S&P
expected automotive demand in Europe to rebound in 2010 after a
weak 2009.  Now, however, S&P believes that the timing of the
economic recovery in Europe is likely to be delayed, and that the
positive effect of the various government incentives on car sales
in 2009 will probably have negative consequences for 2010 sales.
A decision to extend the incentives into next year is under
discussion in several countries.  S&P believes that only a few
countries will choose to extend incentives, however, and
historical evidence suggests that the extension of sales
incentives does not have a comparable effect to that in the
initial phase.

In the first half of 2009, Peugeot reported a 21.8% year-on-year
decrease in revenues and a substantial EUR826 million operating
loss (before EUR506 million of nonrecurring costs).  While
reported free operating cash flow (FOCF) for the industrial
activities was a positive EUR467 million.  Peugeot expects a
reversal of the positive FOCF in the second half.

Prospects presented by the new CEO still indicate an operating
loss of EUR1 billion-EUR2 billion for the current year, with
adjusted debt increasing further, leading to a ratio of funds from
operations (FFO) to debt possibly in the single digits.  Despite
Peugeot's cost cutting, S&P's expectation of weak market
conditions in 2010 leads us to forecast FFO to debt of below 20%.
For these reasons, S&P has lowered its assessment of Peugeot's
financial profile.  The ratings take into account S&P's view of
Peugeot's new strategic plan.  S&P views any significant positive
effects as unlikely before 2011.

"The negative outlook factors in S&P's expectations for continued
tough market conditions in the European automotive sector in 2009
and 2010," said Ms. Castellano.

Peugeot expects its industrial operation to be FOCF negative in
2009.  S&P has factored into the ratings S&P's expectation --
after weak results for full-year 2009 -- of a marginally negative
operating margin in 2010, if at all, and limited cash burn of a
few hundred million euros.  In 2011, S&P expects further
improvements -- including no cash burn -- which would stabilize
the credit profile.  Over the cycle, S&P expects the industrial
activities to generate FFO to debt of about 25%, and positive
FOCF.

The existence of a significant liquidity cushion and the new
strategic direction presented by the new management should, in
S&P's opinion, help Peugeot work through the difficult existing
environment and return to stronger credit ratios.

"We could lower S&P's long-term rating on Peugeot if, in 2010, S&P
perceive a further significant deterioration in expected
profitability, cash flow, and credit measures," said Ms.
Castellano.

On the other hand, S&P could revise the outlook to stable if a
significant rebound became clear for 2010.


SILICUM DE PROVENCE: Court Opens Liquidation Proceedings
--------------------------------------------------------
The competent commercial court in France on Wednesday, August 5,
opened court-ordered liquidation (liquidation judiciaire) against
Silicium de Provence S.A.S. (SilPro), which has been in
administration under French law since the beginning of April 2009.
Despite extensive negotiations with potential lenders and
investors, SilPro had failed to find a long-term solution before
the end of the prescribed period.  The company is headquartered in
Saint Auban, France, and was established to produce solar-grade
polysilicon.

SOLON SE has been indirectly affected by SilPro's insolvency via
its strategic investment in SOL Holding AG.  In the second quarter
it recognized impairment losses of EUR52 million consisting of
write-downs of EUR39 million on the carrying value of this equity
investment and of EUR13 million on the carrying amount of a
shareholder loan.

Cologne-based SOL Holding AG is also to be wound up, following a
decision by its two shareholders, SOLON SE and Ecoventures BV.
The company does not perform any business operations; it functions
purely as a holding company.  Austrian solar-cell producer Blue
Chip Energy GmbH, the other company alongside SilPro in which SOL
Holding has a stake, recently raised EUR1 million by means of a
rights issue in which its other shareholders, WFE Energy
Development GmbH and SOLON SE, took equal participations.
Consequently, SOLON now holds around 49% of Blue Chip Energy's
shares.


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G E R M A N Y
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COMMERZBANK AG: Posts EUR746 Mln Net Loss in Second Quarter 2009
----------------------------------------------------------------
Jann Bettinga and Aaron Kirchfeld at Bloomberg News report that
Commerzbank AG said it posted a net loss of EUR746 million in the
second quarter of 2009 compared with a profit of EUR817 million a
year earlier after setting aside more money for bad loans and
debt-related writedowns.

According to Bloomberg, Commerzbank set aside EUR993 million for
doubtful loans in the second quarter, up from EUR414 million a
year earlier.

Bloomberg recalls Commerzbank Chief Executive Officer Martin
Blessing had to seek EUR18.2 billion in capital from the German
government to carry the bank through the financial crisis and the
country's worst recession since World War II.  The January
takeover of Dresdner Bank saddled the company with billions of
euros in toxic assets.

On June 22, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Commerzbank management board member
Markus Beumer said the bank plans to repay state aid of
EUR16.4 billion or US$22.9 billion as early as 2011 if market
conditions are "favorable".  Bloomberg disclosed Mr. Beumer also
said that the bank plans to return to profitability in 2011 "at
the latest."

Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
https://www.commerzbank.com/ -- is the parent company of a
financial services group active around the world.  The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.


ESCADA AG: May File for Bankruptcy if Bond Swap Fails, CEO Says
---------------------------------------------------------------
Jana Randow at Bloomberg News reports that Escada AG Chief
Executive Officer Bruno Saelzer told Euro am Sonntag that the
company may have to file for bankruptcy if investors don't agree
to swap old bonds for new bonds and shares.

According to Bloomberg, Escada needs 80% of bondholders to accept
the company's offer by the deadline of Aug. 11 to win support for
a bank loan and avoid insolvency.

On July 20, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that only about 37% of Escada's
bondholders agreed to exchange their bonds for a combination of
cash and two new notes valued at 40 cents on the euro, leaving the
company at greater risk of insolvency.  Bloomberg said the company
needs backing from at least 80% of bondholders to win support from
UniCredit SpA for a EUR13 million (US$18.3 million) loan, and
trigger a capital increase of at least EUR29 million
backed by its main shareholders.

ESCADA AG -- http://www.escada.com/-- is a Germany-based fashion
group engaged in women's designer fashion.  The Company is
structured into two segments: ESCADA and PRIMERA.  Under its core
brand ESCADA, the Company sells women's designer fashions for
daytime, evening, business, leisure, wellness and special
occasions, as well as couture.  The fashion range is supplemented
with accessories like handbags, shoes and small leather goods.
Fragrances, eyewear, kids wear and jewelry from licensed partners
are also sold under the ESCADA brand.  The Company also offers the
ESCADA Sport product line with clothes and accesoires.  Through
its wholly owned subsidiary, PRIMERA AG, the Company additionally
sells the mid-priced brands apriori, BiBA, cavita and Laurel.  As
of October 31, 2008, ESCADA AG operated 182 own shops and 225
franchise shops in more than 60 countries.  Its manufacture
capacities are mainly outsourced to partner operations, located in
Germany, Italy, Eastern Europe and Asia.


GENERAL MOTORS: Says More Time Needed for Talks on Opel Sale
------------------------------------------------------------
Andreas Cremer at Bloomberg News reports that General Motors Co.'s
talks on selling its Opel division in Germany will need more time.

Bloomberg relates that in a blog posting on Thursday John Smith,
GM Group Vice President and its chief negotiator, said talks in
Berlin last week with Magna International Inc., its Moscow-based
partner, OAO Sberbank, and an unidentified third Russian investor
exposed "difficulties".  According to Bloomberg, Mr. Smith wrote
"Little progress was made" on issues such as intellectual property
and access to the Russian market, and the discussions even brought
about "the return of some issues" previously considered to be
settled".

Mr. Smith denied that Magna has been selected as winning bidder,
saying that press reports tended to exaggerate the state of
progress of the talks.

As the RHJI proposal is the simpler of the two, there were very
few significant issues with this offer, Mr. Smith said.  GM, on
the other hand, still has to resolve a number of issues with
Magna, he stated.

Mr. Smith explains the Magna proposal is more complex, owing to
the inclusion of Russia and a third, Russian-based investor.  "We
started the week with about 30 issues to resolve, including New
Opel involvement with Chevrolet in Russia, intellectual property
transfer rights in Russia, advanced technology access, product
development responsibilities, minority shareholder rights and
other items," Mr. Smith said.  Russia, intellectual property,
product development responsibilities and various governance issues
are among the unresolved issues, many of them on the table for
some time now, Mr. Smith said.

In discussions with the German automotive task force last week, GM
continued to discuss and contrast the relative commercial merits
of the two proposals.  The German government's advisor, Lazard,
left a strong impression that the RHJI bid was superior.

GM said that it has provided in excess of US$5 billion to support
GM over the past several years.  Despite its minority status, GM
will continue to support Opel by the near full reimbursement of
the new company's annual engineering budget (including a markup)
and a reduction in royalties otherwise paid during the first five
years of operation by over US$2 billion.

                       About General Motors

Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.

As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009.  This compares with a reported net loss of US$3.3 billion
in the year-ago quarter.  As of March 31, 2009, GM had US$82.2
billion in total assets and US$172.8 billion in total liabilities,
resulting in US$90.5 billion in stockholders' deficit.

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts.  Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors'
restructuring officer.  GM is also represented by Jenner & Block
LLP and Honigman Miller Schwartz and Cohn LLP as counsel.

Cravath, Swaine, & Moore LLP is providing legal advice to the GM
Board of Directors.  GM's financial advisors are Morgan Stanley,
Evercore Partners and the Blackstone Group LLP.

General Motors changed its name to Motors Liquidation Co.
following the sale of its key assets to a company 60.8% owned by
the U.S. Government.

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


QIMONDA AG: Elpida Acquires GDDR Technology Licenses
----------------------------------------------------
Elpida Memory, Inc., said it reached an agreement with Germany-
based Qimonda AG to acquire Qimonda's technology licenses and a
portion of the design assets related to Graphics Double Data Rate,
a memory architecture that has a high-speed data interface for
graphic processing applications.

Based on the licenses and assets acquired from Qimonda, Elpida
will now join the graphics DRAM business and become a memory
solutions company with an expanded range of products and services,
Elpida said in a statement.

Elpida said it plans to quickly ramp up a full-fledged GDDR
business.  GDDR technology development will continue at Elpida's
recently built Munich Design Center -- Elpida Memory Europe GmbH,
Munich branch -- where nearly 50 engineers and other former
Qimonda employees involved in GDDR development work will take up
new posts.  Shipments of 1-Gigabit GDDR3 and 1-Gigabit GDDR5
products are expected to begin in the first half of CY 2010.  The
production of both products is considered to be outsourced to
Winbond Electronics Corporation, a Taiwanese company that has
experience with Qimonda's process technology.

Elpida also said it plans to begin mass production of 2-Gigabit
GDDR5 at its Hiroshima Plant starting in the second half of CY
2010, following additional development work by a highly qualified
team of engineers working jointly in Germany and Japan.

                         Rating Downgrade

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 23, 2009, Standard & Poor's Ratings Services lowered to 'B+'
from 'BB-' its long-term corporate credit and senior unsecured
ratings on Elpida Memory Inc., and placed the ratings on
CreditWatch with negative implications.

According to the rating agency, the downgrade and CreditWatch
placement reflect the material weakening of the company's
financial soundness, due to continued losses stemming from
deteriorating market conditions and uncertainty over the company's
short-term liquidity.

                          About Elpida

Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a
Japan-based company principally engaged in the development,
design, manufacture and sale of semiconductor products, with a
focus on dynamic random access memory (DRAM) silicon chips.  The
main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile
RAM and XDR DRAM, among others.  The Company distributes its
products to both domestic and overseas markets, including the
United States, Europe, Singapore, Taiwan, Hong Kong and others.
The company has eight subsidiaries and two associated companies.

                        About Qimonda AG

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.

Qimonda AG commenced insolvency proceedings with a local court in
Munich, Germany, on January 23, 2009.

Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG.  QNA is also the parent company of Qimonda
Richmond LLC.  QNA and QR filed for Chapter 11 before the Delaware
bankruptcy court on February 20 (Bankr. D. Del. Lead Case No. 09-
10589).  Mark D. Collins, Esq., at Richards Layton & Finger PA,
has been tapped as counsel.  Roberta A. DeAngelis, the United
States Trustee for Region 3, appointed seven creditors to serve on
an official committee of unsecured creditors.  Jones Day and Ashby
& Geddes represent the Committee.  In its bankruptcy petition,
Qimonda estimated assets and debts of more than US$1 billion.

On June 15, 2009, QAG filed a petition for relief under Chapter 15
of the Bankruptcy Code (Bankr. E.D. Virginia Case No. 09-14766).


QIMONDA AG: DoveBid Commences Auction for Chip Factory Equipment
----------------------------------------------------------------
Dan Nystedt at PC World reports that the sale of advanced chip
factory equipment at the final plant run by Qimonda AG has started
on the Web site of auctioneer GoIndustry DoveBid Group.

Citing information on the site, Bloomberg discloses online
auctions of two major portions of Qimonda equipment at go-dove.com
will end on Sept. 21.  Bloomberg relates a notice on the site says
the auction was ordered by Michael Jaffe, insolvency administrator
of Qimonda Dresden GmbH & Co OHG.

                         About Qimonda AG

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.

Qimonda AG commenced insolvency proceedings with a local court in
Munich, Germany, on January 23, 2009.

Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG.  QNA is also the parent company of Qimonda
Richmond LLC.  QNA and QR filed for Chapter 11 before the Delaware
bankruptcy court on February 20 (Bankr. D. Del. Lead Case No. 09-
10589).  Mark D. Collins, Esq., at Richards Layton & Finger PA,
has been tapped as counsel.  Roberta A. DeAngelis, the United
States Trustee for Region 3, appointed seven creditors to serve on
an official committee of unsecured creditors.  Jones Day and Ashby
& Geddes represent the Committee.  In its bankruptcy petition,
Qimonda estimated assets and debts of more than US$1 billion.

On June 15, 2009, QAG filed a petition for relief under Chapter 15
of the Bankruptcy Code (Bankr. E.D. Virginia Case No. 09-14766).


* GERMANY: BaFin to Ovesee Insolvent Banks Under Draft Law
----------------------------------------------------------
Geoffrey T. Smith at The Wall Street Journal reports that the
German Economy Ministry is drawing up new powers allowing it to
put into state administration banks that it considers threatened
by insolvency.

Citing Sueddeutsche Zeitunng, the Journal discloses the draft
would amend the law on insolvency so as to support systemically
relevant banks without causing disruption in the financial
markets.

According to the Journal, under the draft, financial regulator
BaFin would have the power to ask for administrative powers over a
bank from a committee representing the chancellor's office, the
Finance and Justice ministries and the Economy Ministry.  The
Journal says if the committee declines to give BaFin
administrative powers, BaFin would have the ability to file for
the bank to be declared insolvent.  If the committee accepts
BaFin's request, it would assume the power to shrink a bank's
balance sheet, and to make changes to any plans submitted by the
bank requesting government support, the FT states.

The draft, the Journal notes, also gives the regulator powers to
suspend shareholders' voting rights in the bank temporarily, but
not to expropriate them.


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


GLITNIR BANKI: U.K. SFO Intensfies Probe After Kaupthing Loan Leak
------------------------------------------------------------------
Rowena Mason at Telegraph.co.uk reports that the Serious Fraud
Office has intensified its inquiries into failed Icelandic banks
Kaupthing, Glitnir and Landsbanki following the leak of
Kaupthing's loan book on to an Internet site, Wikileaks.org, last
week.

According to the report, a team is understood to be examining the
document connected to Kaupthing, which had a large UK client base.

The report says although it has not launched a formal criminal
investigation, a team from the SFO is known to have been looking
closely at Kaupthing, Glitnir and Landsbanki for a number of
months, following their collapse in October last year.
The three banks were nationalized by the Icelandic government,
which put their foreign operations into administration, while
relaunching their domestic operations as new banks with different
names.

The SFO's interest in Kaupthing's loan book is likely to prove
embarrassing for the bank's London advisers and its high-profile
banking clients, although there is no suggestion of any
wrongdoing, the report states.

                       About Glitnir banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services to
corporation, financial institutions, investors and individuals.

Judge Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District Court of New York granted Glitnir banki hf
permission to enter Chapter 15 of the U.S. bankruptcy code on
January 6, 2008.

Glitnir has been granted a moratorium pursuant to a ruling of the
Reykjavik District Court until Nov. 13, 2009.  On May 12,
2009, the court appointed a winding-up board for the bank, which
will handle, for instance, claims against the bank while
the moratorium is in effect and after winding-up proceedings
commence upon the conclusion of the moratorium.


KAUPTHING BANK: Regulator Probes Trenvis After Loan Leak
--------------------------------------------------------
Simon Bowers at guardian.co.uk reports that details of loans made
by Kaupthing Bank hf. to Trenvis, a British Virgin Island-based
company owned by British retail entrepreneur Kevin Stanford, have
been sent to criminal investigators in Iceland by the local
financial regulator amid allegations of market manipulation before
the bank's collapse in October.

According to the report, the focus of Icelandic regulators'
attention has been trades in Kaupthing credit derivatives carried
out last summer by Trenvis.  The firm, the report discloses, had
been set up by Kaupthing and received loans from the bank of
EUR41.7 million.  The regulator is understood to be examining
allegations this was an attempt on the part of Kaupthing to
manipulate rapidly deteriorating investor confidence in the bank,
the report says citing Icelandic newspaper Morgunbladid.

There is no suggestion of illegality on the part of Mr. Stanford
or his companies, the report notes.  Mr. Stanford owned stakes in
chains including fashion retailer All Saints, House of Fraser and
Mosaic Fashions.

                              Leak

The report relates last week leaked internal papers revealed
Mr. Stanford had been one of Kaupthing's largest clients with
borrowings of EUR519 million (GBP443 million) as at September last
year.  He was also the bank's fourth largest investor, holding
30.9 million shares, the report states.

In a ruling of the District Court of Reykjavik issued on
November 24, 2008, Kaupthing Bank hf. was granted a moratorium on
payments until February 13, 2009.  On February 19, the moratorium
was extended until November 13, 2009.  The court appointed a
Winding-up Committee for the bank on May 25, 2009, whose tasks
include dealing with claims against the bank while the moratorium
remains in effect and after winding-up proceedings have commenced
at the end of the moratorium period.

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.


KAUPTHING BANK: U.K. SFO Intensfies Probe After Loan Leak
---------------------------------------------------------
Rowena Mason at Telegraph.co.uk reports that the Serious Fraud
Office has intensified its inquiries into failed Icelandic banks
Kaupthing, Glitnir and Landsbanki following the leak of
Kaupthing's loan book on to an Internet site, Wikileaks.org, last
week.

According to the report, a team is understood to be examining the
document connected to Kaupthing, which had a large UK client base.

The report says although it has not launched a formal criminal
investigation, a team from the SFO is known to have been looking
closely at Kaupthing, Glitnir and Landsbanki for a number of
months, following their collapse in October last year.
The three banks were nationalized by the Icelandic government,
which put their foreign operations into administration, while
relaunching their domestic operations as new banks with different
names.

The SFO's interest in Kaupthing's loan book is likely to prove
embarrassing for the bank's London advisers and its high-profile
banking clients, although there is no suggestion of any
wrongdoing, the report states.

In a ruling of the District Court of Reykjavik issued on
November 24, 2008, Kaupthing Bank hf. was granted a moratorium on
payments until February 13, 2009.  On February 19, the moratorium
was extended until November 13, 2009.  The court appointed a
Winding-up Committee for the bank on May 25, 2009, whose tasks
include dealing with claims against the bank while the moratorium
remains in effect and after winding-up proceedings have commenced
at the end of the moratorium period.

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.


LANDSBANKI ISLANDS: U.K. SFO Intensfies Probe After Loan Leak
-------------------------------------------------------------
Rowena Mason at Telegraph.co.uk reports that the Serious Fraud
Office has intensified its inquiries into failed Icelandic banks
Kaupthing, Glitnir and Landsbanki following the leak of
Kaupthing's loan book on to an Internet site, Wikileaks.org, last
week.

According to the report, a team is understood to be examining the
document connected to Kaupthing, which had a large UK client base.

The report says although it has not launched a formal criminal
investigation, a team from the SFO is known to have been looking
closely at Kaupthing, Glitnir and Landsbanki for a number of
months, following their collapse in October last year.
The three banks were nationalized by the Icelandic government,
which put their foreign operations into administration, while
relaunching their domestic operations as new banks with different
names.

The SFO's interest in Kaupthing's loan book is likely to prove
embarrassing for the bank's London advisers and its high-profile
banking clients, although there is no suggestion of any
wrongdoing, the report states.

                    About Landsbanki Islands

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  On October 7, 2008, the Icelandic
Financial Supervisory Authority took control of Landsbanki and two
other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr.
S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison &
Foerster LLP, represents the Debtor.  When it filed for protection
from its creditors, it listed assets and debts of more than US$1
billion each.

As reported in the Troubled Company Reporter-Europe on June 18,
2009, on June 15, 2009, British authorities revoked the October
2008 Freezing Order on the assets of Landsbanki in Britain, which
were set using anti-terrorism legislation.  Following the fall of
Iceland's three largest banks, Icelandic banking assets in the UK
were frozen on October 8, 2008 using anti-terrorism laws.  The
Icelandic government has ever since protested the application of
this legislation against Iceland.


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


ALLIED IRISH: Posts US$1.19 Bln Net Loss in First Half 2009
-----------------------------------------------------------
Ian Guider at Bloomberg News reports that Allied Irish Banks
Plc said it posted a net loss in the six months to June 30 of
EUR829 million (US$1.19 billion) compared with a profit of EUR1.04
billion a year earlier after a surge in bad debt provisions.

Allied Irish, Bloomberg says, is facing surging losses on loans to
real- estate developers following the collapse of Ireland's
property market.

According to Bloomberg, the bank's impairment charge surged to
EUR2.37 billion, or 3.6% of average customer loans, from
EUR137 million in the year-earlier period.  The bank, as cited by
Bloomberg, said a quarter of the loan book is either impaired or
vulnerable to being classed as impaired.

Bloomberg relates Allied Irish Chief Financial Officer
John O'Donnell said the bank will transfer between  EUR15 billion
and EUR25 billion of loans to the National Asset Management
Agency, a so-called bad bank the Irish government is creating to
purge lenders of souring real-estate loans.

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

                         *      *      *

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


CLUBKO: Court Orders Liquidation; KPMG Appointed
------------------------------------------------
Aodhan O'Faolain at Irish Examiner.com reports that the High Court
has made an order winding up three companies controlled by
hotelier Hugh O'Regan.

Irish Examiner relates Mr. Justice Garrett Sheehan appointed
Kieran Wallace at KPMG as liquidator following an application from
the companies directors to have the firms Thomas Read Holdings,
Dashaven and Clubko wound up.  Less than two weeks ago Mr. Wallace
was appointed as interim examiner of the firms, which sought the
protection of the court in a bid to trade out of their financial
difficulties, Irish Examiner recounts.

According to Irish Examiner, the court heard that between them the
three firms owe Irish Nationwide Building Society and Anglo Irish
Bank more than EUR190 million.  The firms' total liability over
assets is estimated at EUR122 million, Irish Examiner states.

Clubko owns No. 8 St Stephen's Green in Dublin city center, which
previously housed the Hibernian United Services Club.


DASHAVEN LTD: Court Orders Liquidation; KPMG Appointed
-------------------------------------------------------
Aodhan O'Faolain at Irish Examiner.com reports that the High Court
has made an order winding up three companies controlled by
hotelier Hugh O'Regan.

Irish Examiner relates Mr. Justice Garrett Sheehan appointed
Kieran Wallace at KPMG as liquidator following an application from
the companies directors to have the firms Thomas Read Holdings,
Dashaven and Clubko wound up.  Less than two weeks ago Mr. Wallace
was appointed as interim examiner of the firms, which sought the
protection of the court in a bid to trade out of their financial
difficulties, Irish Examiner recounts.

According to Irish Examiner, the court heard that between them the
three firms owe Irish Nationwide Building Society and Anglo Irish
Bank more than EUR190 million.  The firms' total liability over
assets is estimated at EUR122 million, Irish Examiner states.

Dashaven is the company behind the Kilternan Hotel redevelopment.


IRISH NATIONWIDE: Moody's Reviews 'Ba1' Subordinated Debt Rating
----------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the Baa3/Prime-3 bank deposit and senior debt ratings
and the Ba1 subordinated debt rating of Irish Nationwide Building
Society.  The E+ bank financial strength rating (mapping to a
baseline credit assessment -- of B3) and the backed-Aa1 rated
senior debt, maturing prior to September 29 2010, and the backed
short-term issuer rating of Prime-1, covered by the Irish
government guarantee, are unaffected by this action.

Ross Abercromby, Vice President and lead analyst for Irish banks
at Moody's, commented on the rating action: "INBS' debt ratings
fully depend on ongoing government support to the society's
creditors and depositors.  The decision by INBS to offer an
exchange on two senior unsecured debt issues and one subordinated
debt issue that mature after the expiry of the state's blanket
guarantee at a price significantly below par (as well as the
below-par exchange on subordinated debt) raises the question how
much comfort investors can take from government support to shield
them against further losses, particularly once the blanket
guarantee expires in September 2010."

Due to the society's large exposure to commercial real estate in
Ireland, the quality of which is rapidly declining, Moody's
believes that INBS will require additional capital to remain a
going concern (as indicated by the E+/B3 BFSR/BCA).  In the
absence of its mutual owners -- mostly small retail depositors --
as a source of further capital, and in view of the likely losses
in 2009, the government appears to be the only source of such
capital.  As indicated by the investment grade Baa3 debt and
deposit ratings (six notches above the standalone BCA of B3),
Moody's are so far of the view that the government will protect
wholesale depositors and the pari-passu ranking senior unsecured
creditors (as a mutual building society, retail depositors
technically rank behind wholesale depositors and senior unsecured
creditors) against any credit losses, for example by compensating
any potential shortfall of capital.

The building society's offer to exchange senior and junior debt at
a discount -- which boosts earnings and has a positive capital
impact (please see below for details) - however raises the
question as to how actively the government is willing to shield
investors against losses and to what extent the government is
implicitly accepting that investors are among those contributing
capital in the form of realized losses on their claims.  The
implicit concern which this deeply discounted exchange offer is
benefiting from is that those debt issues that are not covered by
the guarantee may also not benefit from state support and
therefore could face a significant risk of non-payment at
maturity.  Should this interpretation prevail at the end of the
review, then Moody's would most likely classify this exchange
offer as a distressed exchange and place debt and deposit ratings
several notches lower than the current Baa3, indicating a
significantly lower likelihood of government support.

A factor that underpins the current Baa3 ratings lies in the
potential consequences also for depositors -- and therefore
potentially for the wider banking system -- of the above described
scenario: Moody's understands the current legal framework does not
allow for depositor preference.  Therefore, any losses on senior
unsecured instruments would require the government to be willing
to also impose losses on depositors (outside of the existing
deposit guarantee scheme).  At present, the scenario that the
government would continue protecting depositors but would be
willing to allow losses for senior creditors does not seem
feasible without a change in the legal framework, similar to the
changes introduced in the UK under the 2009 Banking Act.  While
such a change is clearly the government's prerogative, thus far
Moody's have no indications of this.  The other option is that
this is merely an opportunistic exchange based on market prices,
but that the government will continue to fully protect both
creditors and depositors -- in which case the ratings are likely
to be confirmed at their current level.

Overall, beyond the technicalities of this exchange offer at INBS,
Moody's general concern is these: Moody's believe that the
government has a high interest in protecting the banking system
and to undertake any necessary measures required to maintain the
confidence in this banking system.  However, to the extent that
the overall confidence is deemed sufficiently robust, the
government may be able to withdraw its blanket support for
individual Irish banks and increasingly ask investors to share a
part of the burden of recapitalizing its weak banks.

The structure of the exchange offer on the senior debt is that the
two senior bonds maturing after the expiry of the Irish government
guarantee in September 2010 can be exchanged at a 22% discount to
par for senior debt with a shorter maturity that falls within the
guaranteed period and therefore benefit from the Aa1 (negative
outlook) rating of the guarantor.  The exchange offer on the
subordinated debt (maturing in 2018) is at 55% of par value and
involves exchanging for another subordinated issue, albeit with a
shorter maturity (2016) and a higher coupon (13% instead of 5.5%).

The society's E+ (BCA: B3) BFSR is unaffected by this rating
action.  This rating already incorporates Moody's view that losses
on commercial real estate and development finance will continue to
increase and in the current environment, Moody's believe it will
be difficult for the society to generate enough capital to cover
the expected increased loan losses.  Therefore the establishment
of the "National Asset Management Agency" that will lead to the
society's development loans and some commercial lending being
removed from the balance sheet remains vital.  The E+ BFSR however
reflects that the transfer of loans to NAMA may lead to a further
requirement for capital depending on the value of the loans
transferred, but also takes into consideration the building
society's continuing strong deposit base.  The outlook remains
negative on the BFSR.

The last rating action on INBS was on July 7, 2009, when the
backed senior debt guaranteed by the Irish government was
downgraded to Aa1 (negative outlook) from Aaa (on review for
possible downgrade.)

Irish Nationwide Building Society, headquartered in Dublin,
Ireland, had total assets of EUR14.4 billion at year-end 2008.


THOMAS READ: Court Orders Liquidation; KPMG Appointed
-----------------------------------------------------
Aodhan O'Faolain at Irish Examiner.com reports that the High Court
has made an order winding up three companies controlled by
hotelier Hugh O'Regan.

Irish Examiner relates Mr. Justice Garrett Sheehan appointed
Kieran Wallace at KPMG as liquidator following an application from
the companies directors to have the firms Thomas Read Holdings,
Dashaven and Clubko wound up.  Less than two weeks ago Mr. Wallace
was appointed as interim examiner of the firms, which sought the
protection of the court in a bid to trade out of their financial
difficulties, Irish Examiner recounts.

According to Irish Examiner, the court heard that between them the
three firms owe Irish Nationwide Building Society and Anglo Irish
Bank more than EUR190 million.  The firms' total liability over
assets is estimated at EUR122 million, Irish Examiner states.

Thomas Read Holdings is a holding company for a number of Hugh
O'Regan's companies and owns a property at No 4 Parliament Street
in Dublin city center, which housed Thomas Read Cutlers.


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


CARROZZERIA BERTONE: Italy's Industry Ministry Approves Fiat Offer
------------------------------------------------------------------
Sara Gay Forden at Bloomberg News reports that Italy's Industry
Ministry has approved Fiat SpA's offer for bankrupt carmaker
Carrozzeria Bertone S.p.A.

Bloomberg relates in an e-mailed statement on Thursday the
ministry said Fiat's bid was the highest of those submitted and
included a long-term industrial plan.  The ministry didn't
disclose details.

Citing the ministry's statement, Bloomberg relates Fiat will
invest EUR150 million (US$216 million) in the company over three
years and keep all of its 1,137 employees.

As reported in the Troubled Company Reporter-Europe on Feb. 15,
2008, the bankruptcy court in Turin, Italy, declared Bertone
insolvent on Feb. 11, 2008.

                          About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.  With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on
June 16, 2009, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit rating on Italian industrial
group Fiat SpA remains on CreditWatch with negative implications,
where it was placed on Jan. 22, 2009.  At the same time, the 'B'
short-term corporate credit rating was affirmed.

                     About Carrozzeria Bertone

Headquartered in Turin, Italy, Carrozzeria Bertone S.p.A. --
http://www.bertone.it/-- manufactures car for the Bertone
Group.  The company does the product and process engineering for
all of its products and handles the entire manufacturing cycle.

As reported in the Troubled Company Reporter-Europe, Bertone filed
for bankruptcy protection in November 2007 after accumulating
EUR37.3 million in losses for the past three years.  Bertone filed
for concordato preventivo -- similar to a Chapter 11 bankruptcy
petition in the U.S. -- which prevents creditors to collect
payments while the company reorganizes.  The filing foresees
Bertone's management overseeing the reorganization.  The company,
however, excluded its design, engineering and glass businesses
from the filing.


FIAT SPA: Italy's Industry Ministry Approves Bertone Offer
----------------------------------------------------------
Sara Gay Forden at Bloomberg News reports that Italy's Industry
Ministry has approved Fiat SpA's offer for bankrupt carmaker
Carrozzeria Bertone S.p.A.

Bloomberg relates in an e-mailed statement on Thursday the
ministry said Fiat's bid was the highest of those submitted and
included a long-term industrial plan.  The ministry didn't
disclose details.

Citing the ministry's statement, Bloomberg relates Fiat will
invest EUR150 million (US$216 million) in the company over three
years and keep all of its 1,137 employees.

As reported in the Troubled Company Reporter-Europe on Feb. 15,
2008, the bankruptcy court in Turin, Italy, declared Bertone
insolvent on Feb. 11, 2008.

                      About Carrozzeria Bertone

Headquartered in Turin, Italy, Carrozzeria Bertone S.p.A. --
http://www.bertone.it/-- manufactures car for the Bertone
Group.  The company does the product and process engineering for
all of its products and handles the entire manufacturing cycle.

                          About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.  With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on
June 16, 2009, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit rating on Italian industrial
group Fiat SpA remains on CreditWatch with negative implications,
where it was placed on Jan. 22, 2009.  At the same time, the 'B'
short-term corporate credit rating was affirmed.


FIAT SPA: S&P Affirms Long-Term Corporate Credit Rating at 'BB+'
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
and 'B' short-term corporate credit ratings on Italian industrial
group Fiat SpA.  At the same time, the 'BB+' rating was removed
from CreditWatch, where it had been placed with negative
implications on January 22, 2009.  The outlook is negative.

"The affirmation reflects S&P's opinion that Fiat will continue to
make sufficient progress in improving its liquidity profile to a
level commensurate with the current ratings," said Standard &
Poor's credit analyst Barbara Castellano.

S&P sees that liquidity has improved compared with the tight
situation at year-end 2008.  S&P considers the current liquidity
situation as barely "adequate," but S&P believes that the
possibility for Fiat to use again most of the usual financing
channels should enable a further strengthening of liquidity in the
second half of this year.

S&P's affirmation also reflects S&P's view on Fiat's first-half
2009 results, which, although weak year on year, showed a small
trading profit of EUR262 million and some industrial free
operating cash generation (EUR136 million).

S&P understands that Fiat's management is actively working on the
Chrysler turnaround, which is a commitment for the next several
years.  S&P views as a risk the likelihood, in S&P's opinion, that
the Chrysler deal will absorb relevant technical and managerial
resources at Fiat.  S&P's ratings on Fiat assume no financial
support to Chrysler.  S&P expects the degree of integration
between Chrysler and Fiat to increase substantially if Chrysler's
recovery proceeds according to the initial agreement and Fiat's
stake in Chrysler's capital grows.

"However, at this stage, S&P does not see the existing ownership
structure as too binding for Fiat," said Ms. Castellano.  "We
assume that Fiat would have the opportunity to exit from Chrysler
without incurring any significant impact on its financial profile
if the turnaround proved to be unachievable."

S&P will monitor closely the evolution of the Chrysler alliance
and might, in the future, include in S&P's analysis a deeper
integration of the two companies' business risk profiles.

The negative outlook reflects S&P's opinion that there are some
risk factors that could cause us to lower S&P's ratings on Fiat:

S&P sees that the external market environment remains very tough.
S&P assume at the current rating level that Fiat will not report
any significant cash burn this year from its industrial activity
and that it will protect its financial profile, striving to reduce
financial debt.    

"We also assume that, after having generated weaker financial
ratios in 2009 than those S&P views as commensurate with the
ratings, some improvement will be achieved in 2010, and that,
starting from 2011, the group will achieve a ratio of adjusted
funds from operations to debt of about 25% over the cycle," said
Ms. Casetellano.

S&P sees fiat's liquidity position as improved, but barely
"adequate."  S&P believes that Fiat will actively strive in the
next few months to strengthen its liquidity position.  S&P
considers it important for the stability of the current ratings
for the group to increase its headroom with respect to the current
level, given the persisting tough conditions in Fiat's main
reference markets.  If this does not occur, a downgrade would be
possible.

S&P sees a risk that Chrysler's turnaround could absorb Fiat's
energies to a greater degree than what S&P currently assumes.  S&P
could review the ratings if management is distracted by this new
challenge or if S&P sees that the integration appears to be
disadvantageous for Fiat.

"We could consider a downgrade of Fiat if, in S&P's opinion, one
or more of the aforementioned risks materialize," said Ms.
Castellano.

Alternatively, S&P could revise the outlook to stable if S&P sees
that Fiat is proving to be resilient in the current environment
and is able to manage well the issues related to Chrysler's
integration and to the strengthening of liquidity.


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


JYL PROM: Creditors Must File Claims by August 15
-------------------------------------------------
LLC Construction Company Jyl Prom Stroy is currently undergoing
liquidation.  Creditors have until August 15, 2009, to submit
proofs of claim to:

         Mir Ave. 48
         Bishkek
         Kyrgyzstan
         Tel: (0-555) 99-08-77


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


NEMI FORSIKRING: S&P Raises Counterparty Credit Rating to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised to 'BB+'
from 'BB' its long-term counterparty credit and insurer financial
strength ratings on Norway-based non-life insurer NEMI Forsikring
ASA.  At the same time, the ratings were removed from CreditWatch
with positive implications, where they were originally placed on
June 15, 2009.  Prior to that, the ratings on NEMI had been on
various CreditWatch placements since October 7, 2008, following
related actions on NEMI's then parent, Iceland-based insurer
Tryggingamidstodin hf. (TM; BB/Watch Dev/--).  The outlook on NEMI
is stable.

"The upgrade follows a review of the ratings following the
acquisition of NEMI by Copenhagen-based insurer, Alpha Group (not
rated)," said Standard & Poor's credit analyst Peter McClean.  The
ratings reflect NEMI's good capitalization and conservative
investment policy.  These strengths are offset by Alpha's unproven
track record and business model, and by NEMI's marginal
competitive position and marginal financial flexibility.

"The stable outlook reflects what S&P anticipates will be a period
of consolidation and greater stability for NEMI under its new
ownership," said Mr.  McClean.  S&P believes that the conservative
approach adopted by Alpha toward its new acquisition will help
capital adequacy to remain as a minimum at a good to strong level
and therefore supportive of the rating.  In S&P's opinion, this
will act as a counter-balance to the challenges inherent in
rebuilding NEMI's competitive position and earnings, both of which
have been severely damaged over the last two years.

S&P views a positive rating action as unlikely over the rating
horizon, although over the longer term S&P does not exclude this
possibility should NEMI demonstrate a sustained ability to rebuild
its competitive position and earnings.  Conversely, any
significant deterioration in NEMI's competitive position,
capitalization, and/or operating performance may lead to a
negative rating action.


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


MOBILE TELESYSTEMS: Moody's Reviews 'Ba2' Rating for Likely Cut
---------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the Ba2 ratings of Mobile Telesystems OJSC and the Ba3
ratings of Comstar United Telesystems following the announcement
on August 5th of an agreement by Sistema JFSC (B1, negative), the
parent company of both issuers, to the acquisition by MTS of
Sistema's 50.91 percent stake in Comstar.  As a result of the
transaction, Sistema's stake in Comstar will be transferred to MTS
for an estimated consideration of US$1.272 billion.  The
transaction, though approved by Sistema's board, remains subject
to shareholder approval.  The completion of the transaction, which
Sistema indicated in its announcement is expected to take place by
the end of October 2009, is also contingent upon the fulfillment
of a number of conditions, including MTS obtaining the required
funding.

The purpose of the review is to consider the implications of the
debt funded acquisition on the two group's stand-alone financial
profiles as well as the implications from a debt capital structure
perspective of the funding to be arranged by MTS to finance the
transaction.  Moody's acknowledges that both companies are low to
moderately leveraged before taking into consideration the
transaction (Debt/Ebitda of 0.79x at MTS and 1.97x at Comstar as
of fiscal year-end 2008), and that the debt-funded acquisition
will initially be placing more pressure on the financial profile
of MTS rather than on that of Comstar.  The review process though
will also consider the extent to which the closer integration of
the two businesses will impact the business and financial profiles
and strategies of Comstar in the context of this new ownership
structure.  Moody's notes that the transaction does present some
potential for economies of scale, operating and investment cost
synergies, and the ability to provide comprehensive
telecommunications services to clients, as well as certain
marketing advantages such as co-branding of Comstar's developing
broadband business which will also be taken into consideration as
part of the review process.

The last rating action on MTS was on 2 April 2009 when Moody's
changed the outlook on MTS' ratings to stable from positive
following the agency's assessment that there was limited scope for
any material improvement in the company's credit profile over the
near term given the current economic conditions.

The last rating action on Comstar was on 10 May 2007 when Moody's
assigned a Ba3 corporate family rating to Comstar with a stable
outlook.

Open Joint Stock Company Mobile TeleSystems is the largest
wireless telecommunication operator in Russia with US$10.2 billion
in revenues and US$5.1 billion in reported EBITDA as at 31
December 2008.  About 77% of total revenue is derived from the
core Russian operations, 16% from the Ukraine, 4% from Uzbekistan,
1% from Turkmenistan, and 2% from Armenia (consolidated from Q3
2007).

Open Joint Stock Company Comstar - United TeleSystems is one of
the largest providers of fixed-line communications to operators
and corporate and residential customers in the Moscow metropolitan
area and other regions of Russia, Ukraine and Armenia.  Comstar
reported US$1.65 billion in revenues and US$689.5 million in OIBDA
in 2008, representing 10% growth year-on-year and a 41.8% OIBDA
margin.  The company reported Q1 2009 revenue of US$334 million
and OIBDA of US$126 million.


MOBILE TELESYSTEMS: Fitch Maintains Issuer Default Rating at 'BB+'
-----------------------------------------------------------------
Fitch Ratings is maintaining Russia-based OJSC Mobile TeleSystems'
(MTS) Long-term Issuer Default rating of 'BB+' and National Long-
term rating of 'AA(rus)' on Rating Watch Negative, following the
announcement of its intention to acquire Comstar from Sistema.
The RWN on MTS reflects that on parent Sistema ('BB-'/RWN).  The
Short-term IDR is affirmed at 'B'.

"The acquisition of Comstar will trigger only a modest increase in
MTS's leverage, which will still be consistent with its current
ratings.  At the same time, the combined entity will be a strongly
free cash flow-generative company, providing a flexibility to
repay debt and de-leverage," said Nikolay Lukashevich, Senior
Director with Fitch's TMT team.

MTS announced that it is going to make an offer to Sistema to
purchase its 50.91% stake in Comstar for US$1.3 billion in cash.
The purchase agreement is conditional on MTS obtaining the
required funding for this transaction.  Fitch understands this is
likely to be at least a medium-term facility.

Comstar is an integrated alternative provider of primarily fixed-
line telecoms services (including broadband) in Russia.  It also
holds a controlling majority stake in MGTS, a fixed-line incumbent
in the City of Moscow.  Although the immediate synergies from the
transaction are not obvious and are unlikely to be large, in the
long-run the tie-up would create convergence and cross-selling
opportunities and allow for certain cost efficiencies.  As the
ultimate owner Sistema does not change as a result of this
transaction under Russian law there is no obligation to make a
buy-out offer to minority shareholders of Comstar, and hence no
more cash is likely to be expensed by MTS.

As both Comstar and MTS are free cash flow-generative companies,
the combined entity is expected to be strongly FCF-positive.  MTS
and Comstar's revenues and earnings are likely to be fairly
resilient in rouble terms in the current downturn, although in US$
terms there has been a significant decline in net earnings due to
depreciation in the rouble and other CIS currencies.  While MTS's
dividend policy remains unchanged (i.e. to pay out at least 50% of
net income under US GAAP), lower net earnings are likely to lead
to dividend reduction in US$ terms.  Fitch notes that after the
acquisition MTS would have limited flexibility to maintain
shareholder remuneration in absolute US$ terms without putting its
ratings under pressure.

While MTS's ratings continue to be capped by the ratings of its
controlling shareholder Sistema, Fitch notes that Sistema's
liquidity should significantly improve after this transaction.
This may reduce Sistema's strong dependence on MTS's dividends as
a key source of cash, if only temporarily.  Under Fitch's parent-
subsidiaries methodology the ratings of MTS and Sistema are linked
and MTS's ratings may be affirmed with the assignment of a Stable
Outlook once Fitch has received enough evidence that the risk of
Sistema up-streaming excessive cash out of MTS has been reduced on
a sustainable basis.

The acquisition of Comstar is unlikely to significantly increase
refinancing risks for MTS.  The company's liquidity has improved
recently, following the US$2.5 billion raised from banks and on
capital markets since end-2008.  Fitch views this as largely
sufficient to meet MTS's 2009 and 2010 debt maturities estimated
at US$1.2 billion and US$1.6 billion respectively at end-2008.


NIZHNEKAMSKNEFTEKHIM OAO: Fitch Keeps 'B' Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings is maintaining Tatarstan-based chemical producer OAO
Nizhnekamskneftekhim's Long-term Issuer Default Rating 'B', the
senior unsecured 'B' rating on its US$200 million loan
participation notes and the National Long-term 'BBB-' (BBB minus)
(rus) rating on Rating Watch Negative.  The Short-term IDR is
affirmed at 'B'.  The Recovery Rating on the notes is 'RR4'.

The RWN reflects Fitch's concerns regarding NKNK's potential need
to secure financing ahead of the December 2010 put option on its
US$200 million loan participation notes.  While the event itself
is beyond the scope of the Rating Watch period, the bond will be
factored in Fitch's assessment of NKNK's liquidity position in
January 2010.  Therefore, the agency will need to gain assurance
that repayment or refinancing options are in place in Q110 to meet
this potential obligation.  Fitch also notes that covenants under
various facilities, which are to be tested in Q210 upon the
release of group's 2009 IFRS results, could come under pressure as
leverage and coverage metrics deteriorate in 2009 on the back of a
weaker performance.  It expects to resolve the RWN in Q110 once it
has assessed the company's funding plans and status of covenants.

Fitch stresses that it considers NKNK's short-term liquidity as
adequate.  Debt maturing in Q309-Q210 amounts to RUB6.1 billion
against forecast free cash flow generation of approximately RUB3.5
million over the same period and cash and unused committed
facilities of RUB5.3 billion at end-Q209.

Although, like its peers, NKNK is confronting a severe downturn in
the chemical sector, it managed to maintain high capacity
utilization rates so far in 2009 for most of its products, thanks
to a weak rouble and increasing sales of high-margin products.
However, materially lower selling prices y-o-y are expected to
impact the company's operating performance and credit profile in
2009 and there is still uncertainty over whether the volumes
rebound represents a sustainable recovery or a temporary factor
driven by re-stocking and a cheaper rouble.  Fitch expects revenue
to fall 15%-20% in 2009 (FY08: RUB77.9 billion), before improving
slightly in 2010.  These forecasts are predicated on sales volumes
being flat in 2009-2010, and product prices falling up to 40% in
2009 but rising 10%-15% in 2010.  EBITDAR margin is expected to be
in the 10%-12% range in 2009-2010 (FY08: 11.7%), driven by a
combination of much lower raw material prices, lower products
prices and an increasing share of high-margin products.

The agency considers the company's decision to postpone further
expansion capex as a positive step to maintain liquidity given
weaker operating cash flow generation.  On the other hand, Fitch
takes a negative view of the company's intention to continue
paying dividends averaging 15%-30% of net income.


NOVOROSSIYSK OJSC: S&P Affirms Issuer Ratings at 'BB+'
------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB+'
issuer ratings on Russian stevedore company OJSC Novorossiysk
Commercial Sea Port.  The outlook is stable.

"The affirmation reflects the improvement in NCSP's revenues and
operating cash flows over the year, in line with its business
plan.  It also reflects NCSP's slightly declining debt levels, due
to rising transshipment volumes in a difficult market," said
Standard & Poor's credit analyst Paul Lund.

"These factors are offset by the fall in container volumes and
NCSP's failure to meet its ambitious volume growth targets in
2008," said Mr. Lund.

The ratings on NCSP are constrained by its ambitious expansion
plans, its lack of sophisticated corporate governance, increasing
competition, and a potentially more difficult operating
environment in 2009 due to a global downturn in trade, high staff
unionization, potentially harsh weather, and leasehold of
government-owned berths.

These constraints are somewhat mitigated by NCSP's strong
competitive position, Russia's supportive regulatory environment
for ports, the moderate volatility of seaborne commodities traffic
through the economic cycle, an improving financial profile, and
continued growth of Russian external seaborne trade.

Gross tonnages for the first half of 2009 increased by just more
than 10% to 43.27 million tons supported by substantial growth in
grain volumes and a continuing upward trend in oil products, both
due to enhancements at the port.  The relatively stable grain and
oil volumes dominate revenues and are expected to contribute close
to 75% of revenues for 2009.  However, these strengths are offset
by underlying volatility, with a sharp year-on-year drop in
container traffic, timber, and ferrous metals.

The bulk of revenue growth in the year to December 2008 came
largely from the provision of additional services and changes to
the mix of cargo.  NCSP is subject to tariff regulation, which
lacks transparency, but historically has provided adequate cost
recovery.  Tariffs were last increased in June 2008, which
contributed to US$38.3 million, or 22%, of total revenue growth of
US$170.4 million for the full year to December 2008.

NCSP's strong market position is supported by Novorossiysk's
status as Russia's major Black Sea cargo port, high barriers to
entry, growing national seaborne transport, and state policy to
relocate Russian exports to Russian ports.  In the medium term,
however, seaborne traffic growth is likely to slow down due to
increasing competition and operating bottlenecks.  This could be
offset by the company's strategy to focus on highly profitable
cargoes, and NCSP could benefit from infrastructure improvements
in the surrounding region.

The company's financial performance for the year to December 31,
2008, improved on the back of consolidation of stevedore
subsidiaries and increased tariffs, which led to 75% year-on-year
EBITDA growth and an EBITDA margin increase to the strong level of
51%.  NCSP's ability to take a wide variety of goods has protected
margins during the global economic downturn.

NCSP invested US$340 million in expanding its stevedore capacity
at existing facilities during 2007 and 2008, but S&P expects
capital expenditure to be substantially lower for the next two
years, in line with the decline in container traffic.  Plans to
acquire independent stevedore companies are not currently a
priority.  In 2008, NCSP raised its stake in Baltic Stevedore Co.
to 100% from 50% and in JSC IPP to 99.98% from 72.65%.

NCSP's financial risk profile is significant.  Strong revenue
growth of 35%, coupled with virtually zero increase in operating
costs, resulted in a sharp increase in funds from operations (FFO)
to US$283 million in the year to Dec. 31, 2008, from US$114.7
million at year-end 2007.  This led to a similarly large increase
in FFO to adjusted debt, rising to 48.3% over the same period from
19.6% in 2007.  NCSP plans to finance its capital-spending program
through internally generated funds.  However, any potential debt-
financed acquisitions could lead to an increase in leverage, given
a long-term financial policy target of debt to EBITDA of less than
3.5x, compared with the current level of 1.6x.

NCSP's concentrated ownership structure poses additional risks to
creditors.  Existing corporate governance provides some
protection, but doesn't fully balance inherent conflicts of
interest.

The stable outlook reflects S&P's expectation that NCSP's ongoing
investment Novorossiysk will result in further diversification of
the cargo mix, helping to preserve margins and to mitigate
potentially stronger competitive pressure in the future.

S&P expects NCSP's profitability and cash flow generation to
improve in 2009 due to changes in exchange rate, traffic growth
recovery, and favorable changes in the cargo mix, supported by the
effect of recently built additional stevedore capacity.  S&P
assumes that the business risk profile will not weaken as a result
of potential acquisitions and that cash flow protection will not
fall below FFO to debt of 20%.  S&P expects future capital
expenditure to be funded from cash flow.

The ratings could come under pressure if potential large-scale
debt-financed acquisitions increase business risk or substantially
impair NCSP's financial profile.  A negative trend in NCSP's
traffic, indicating higher-than-expected volume risk and
competitive pressure in the industry, could also negatively affect
the ratings.

Conversely, a substantial improvement in the business risk profile
following non-debt-financed acquisitions, together with a
strengthening financial profile as a result of improved cash
flows, could create upside potential, although this would not be
expected in the current trading environment.


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


ABANKA VIPA: Gorenjska Merger Talks Won't Affect Moody's Ratings
----------------------------------------------------------------
Moody's said that the initiation of official merger discussions
between Abanka Vipa d.d., and the smaller Slovenian peer Gorenjska
Banka d.d. does not have an immediate effect on Abanka's rating.

Moody's comments follow the announcement by Abanka, that the
shareholders controlling the majority of shares in Abanka and
Gorenjska Banka had endorsed the initiation of discussions that
could result in the merger of the two banks.

Moody's said that although Abanka's possible merger with Gorenjska
Banka has the potential for creating a stronger bank, negotiations
are still at an early stage.  Moody's will be assessing
developments relating to the proposed merger and will factor them
in its ratings for Abanka, once it becomes clear that the merger
will be concluded.  This would involve an assessment of the
combined entity's franchise, risk profile and financial metrics,
as well as any risks related to merger integration.

Currently, Moody's maintains A3/Prime-2/D+ ratings on Abanka.  On
April 28, 2009, the outlook on the ratings was changed to
negative, from stable, to reflect concerns about the effects of a
deepening recession in Slovenia on Abanka's asset quality and
earnings.  The likely impact of the current difficult economic
environment on the banks' financial condition remains Moody's
primary rating focus for Abanka and the other rated Slovenian
banks.

Headquartered in Ljubljana, Slovenia, Abanka reported consolidated
total assets of EUR3.91 billion at December 31, 2008.


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


BORDERS UK: Ernst & Young Expresses Going Concern Doubt
-------------------------------------------------------
Andrea Felsted at The Financial Times, citing accounts filed with
Companies House, reports that auditors of Borders UK, which was
recently sold to Hilco, raised doubts about the ability of the
book retailer to continue as a going concern.

According to the FT, the accounts refer to the year ended
February 2, 2008.  They were signed off by Ernst & Young July 31
this year.  The FT relates Ernst & Young said Borders UK faced a
number of uncertainties, including that it operated in a highly
competitive sector, and the sales performance was difficult to
forecast.

The accounts also show that Borders UK’s pre-tax loss rose from
GBP10.3 million in 2007 to GBP13.6 million in 2008, while turnover
rose slightly from GBP215 million to GBP218.2 million, the FT
discloses.

Borders UK Ltd. -- http://www.borders.co.uk/-- offers books,
magazines, music, and DVDs through some 40 Borders stores
throughout the UK.


EPIC PLC: Fitch Cuts Ratings on Six Classes of Notes to 'D'
-----------------------------------------------------------
Fitch Ratings has downgraded Epic (Industrious) plc's commercial
mortgage-backed notes, due April 2014, to 'D':

  -- GBP299.7 million class A (XS0268560785): downgraded to 'D'
     from 'BB'; removed from Rating Watch Negative (RWN); assigned
     a Recovery Rating of 'RR3'

  -- GBP49 million class B (XS0268561759): downgraded to 'D' from
     'B'; removed from RWN; assigned a Recovery Rating of 'RR6'

  -- GBP19.4 million class C (XS0268562484): downgraded to 'D'
     from 'CCC'; Recovery Rating revised to 'RR6' from 'RR3'

  -- GBP37.4 million class D (XS0268562641): downgraded to 'D'
     from 'CCC'; Recovery Rating 'RR6'

  -- GBP37.9 million class E (XS0268563615): downgraded to 'D'
     from 'CC'; Recovery Rating 'RR6'

  -- GBP29.2 million class F (XS0268564266): downgraded to 'D'
     from 'CC'; Recovery Rating 'RR6'

The rating action is driven by the sale of the remaining assets in
the Industrious portfolio at a price that results in losses to all
note classes.

On August 5, 2009, Max Property Group Plc (Max) announced that it
had exchanged contracts to acquire the 90 assets remaining in the
portfolio for GBP232.1 million.  Combined with sales proceeds of
GBP43.3 million from the auction of 31 assets on July 16, 2009,
this brings the total recovery proceeds from the portfolio to
GBP275.4 million.

As per the valuation in June 2008, the portfolio sold to Max
accounts for 86% of the Industrious portfolio by market value.
Net rental income quoted by Max (GBP22.7 million) is 37% lower
than Q4 2008 net rent reported by the servicer for the entire
Industrious portfolio (GBP35.5 million on an annualized basis).
Making a pro rata adjustment for the auctioned assets, the net
rent reported by Max is therefore 25% lower.

As the total recoveries are lower than the outstanding balance of
the class A notes, the class B to F notes will not recover any
principal.  The exact loss that will be crystallized on the class
A notes remains uncertain, as it will depend on the sizing of
deductions that rank senior to principal payments, including
interest arrears owed to the lender, as well as potentially
sizeable swap breakage costs.  At present, Fitch has not received
any information on the magnitude of these senior expenses.  Based
on its estimate of the likely deductions, Fitch has assigned a
Recovery Rating of 'RR3' to the class A notes indicating an
expectation of recoveries between 51%-70% with respect to this
tranche.

At closing, the portfolio of 121 secondary UK industrial assets
was valued at GBP655.4 million, with an initial senior loan-to-
value ratio (LTV) of 74%.  The portfolio was revalued in June
2008, and the decreased value of GBP521.7 million resulted in a
LTV of 91%.  By comparison, the price at which the portfolio has
been sold equates to an LTV of 206%.  The overall decline in value
realised since closing stands at 58%.

The sale of the remaining assets occurred in spite of an
alternative restructuring proposal which was submitted to RBS and
Ernst and Young in their roles as servicer and receiver,
respectively, on July 17, 2009.


EPL ACCESS: Business Sold to Lavendon Access; 105 Jobs Secured
--------------------------------------------------------------
EPL Access Ltd.'s powered access equipment hire business which is
based in Sandy, Bedfordshire has been acquired by Lavendon Access
Services (UK) Limited.  All 105 employees, across seven depots,
have been transferred to the new company.

EPL had been placed into administration on July 2,2009.
Ian Corfield and Myles Halley of KPMG Restructuring were appointed
joint administrators of the company.

The team from KPMG's restructuring division were involved in
discussions with around 60 interested parties following the
announcement that the company had been placed into administration
and received four indicative offers for the business.

Mr. Corfield, Restructuring Director with KPMG, said: "We are very
pleased to have been able to sell EPL Access Ltd as a going
concern, saving jobs and achieving the best possible result for
all creditors.  I'd like to take this opportunity to thank the
customers and suppliers for their ongoing support in this
difficult time which has helped to ensure that this business has
been able to continue and has contributed to the retention of 105
jobs."

Lavendon Access Services (UK) Limited is part of the listed
company, Lavendon Group plc.  The company operates in the UK from
a network of 43 depots, employing over 850 staff and with a rental
fleet in excess of 13,000 machines.  Lavendon also has operations
in continental Europe and the Middle East.


FOUR SEASONS: Nears Deal to Halve GBP1.5 Bil. Debt Pile
-------------------------------------------------------
Anousha Sakoui at The Financial Times reports that Four Seasons
Healthcare Ltd. is close to securing an agreement with creditors
to halve its GBP1.5 billion debt pile after a group of hedge funds
that had previously blocked the deal gave it their support.

The restructuring agreement is still to be signed off, with some
final agreements and points of detail to be resolved, the
FT says.

According to the FT, the restructuring involves senior and junior
creditors writing off debt claims in exchange for equity stakes.
Citing people close to talks, the FT discloses Royal Bank of
Scotland, and funds it manages, is set to end up as the largest
single shareholder in Four Seasons post-restructuring, with about
a 40% stake.

Four Seasons Health Care Ltd. -- http://www.fshc.co.uk/-- with
more than 15,000 people in its care, the company is one of the
largest care home (nursing home) operators in the U.K.  The
company runs some 300 nursing homes, and its Huntercombe division
operates about eight specialized health care centers (which
provide mental health and rehabilitation services) in England,
Scotland, North Ireland, and the Isle of Man.  Allianz Capital
Partners, the private equity arm of Allianz Group, acquired the
company from Alchemy Partners for GBP775 million in 2004.


HFW PLASTICS: In Administration; KPMG Appointed
------------------------------------------------
Mark Firmin and Howard Smith of KPMG's Restructuring practice were
been appointed as joint administrators of Gateshead based HFW
Plastics on August 5, 2009.

The company, which manufactures thermo formed plastic trays for
the food production sector from its site on Albany Road, has got
into financial difficulty due to falling orders in recent months;
a situation compounded by the loss of a significant contract.

Howard Smith, Joint Administrator and KPMG Associate Partner,
said: "We are trading the business while marketing it for sale as
a going concern.  We are hopeful of generating interest as HFW
Plastics has a number of valuable strengths, primarily around
speed and flexibility.  It is able to undertake quick turnaround
and short production run jobs.

The company has 64 employees, after the administrators made 19
redundancies.

Interested parties should contact Duncan Mackenzie at KPMG on 0191
401 3768.


LLOYDS BANKING: Posts US$5.2BB 1H09 Loss; Mulls Share Sale
----------------------------------------------------------
Jon Menon at Bloomberg News reports that Lloyds Banking Group Plc
posted a loss of GBP3.1 billion (US$5.2 billion) in the first half
of 2009 compared with a profit of GBP1.95 billion in the year-
earlier period.

According to Bloomberg, the bank set aside GBP13.4 billion in the
period to cover souring commercial and real estate loans.
Bloomberg relates Lloyds said HBOS accounted for about 80% of the
combined bank’s bad loan provisions.

Lloyds Chief Executive Officer Eric Daniels, as cited by
Bloomberg, said he's shrinking the bank's balance sheet by cutting
back on riskier loans after HBOS's loss.  Bloomberg relates
Finance Director Tim Tookey told analysts on a conference call
Wednesday the bank won't renew about GBP200 billion of higher-risk
loans after they fall due over the next five years.

                         Asset Protection

Bloomberg discloses Mr. Daniels said about GBP10 billion of the
provisions will be covered by the government's asset protection
program.  The terms of the program may still take "several months"
to conclude.  Bloomberg states under the asset protection scheme,
Lloyds will absorb the first GBP25 billion of losses, with
taxpayers liable for 90% of losses after that point.

Lloyds sought a GBP17-billion bailout from taxpayers after it
agreed to buy HBOS in September in a government- brokered deal to
prevent the collapse of Britain's biggest mortgage lender.  The
U.K. owns 43% of Lloyds.

The bank earlier named Win Bischoff, 68, as chairman to replace
Victor Blank, who is retiring after brokering the HBOS
acquisition.  The former Citigroup Inc. chairman and government
adviser takes up the post on Sept. 15.

                            Share Sale

Mark Herlihy at Bloomberg News, citing The Sunday Times, reports
that Lloyds is considering plans for a multi-billion pound share
sale to lower its dependency on the U.K. Taxpayer.  According to
Bloomberg, the newspaper said the bank is mulling a partial
withdrawal from the government's asset protection program as
Mr. Daniels believes fees of GBP16 billion (US$26.7 billion) are
too high.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC (LON:LLOY) --
http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group
plc, is United Kingdom-based financial services company, whose
businesses provide a range of banking and financial services in
the United Kingdom and a limited number of locations overseas.
The operations of Lloyds TSB Group in the United Kingdom were
conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds
TSB Scotland plc and Cheltenham & Gloucester plc during the year
ended December 31, 2007.  Cheltenham & Gloucester plc (C&G) is the
Company's specialist mortgage arranger.  Following the transfer of
its mortgage lending and deposits to Lloyds TSB Bank, during 2007,
C&G arranges mortgages for Lloyds TSB Bank rather than for its own
account.  International business is conducted mainly in the United
States and continental Europe.  Lloyds TSB Group's services in
these countries are offered through branches of Lloyds TSB Bank.
In January 2009, the Company acquired HBOS plc.


NORTHERN ROCK: Net Loss Widens to US$1.3 Bln in First Half 2009
---------------------------------------------------------------
Andrew MacAskill at Bloomberg News reports that Northern Rock Plc
said its first-half net loss widened by 30% to GBP770.9 million
(US$1.3 billion), from GBP592 million a year earlier as late
payments on mortgages climbed.

According to Bloomberg, mortgages more than three months in
arrears rose to 3.9%, compared with the Council of Mortgage
Lenders members' average of 2.4%.

                            Writedowns

Bloomberg relates Gary Hoffman, chief executive officer of
Northern Rock, said provisions for bad loans surpassed GBP1
billion, and writedowns almost tripled to GBP602 million in the
first half.  Mr. Hoffman, as cited by Bloomberg, impairments will
be broadly similar in the second half, before declining in 2010.

                            New Lending

Bloomberg discloses Mr. Hoffman said new lending in 2009 would
total about GBP4 billion, below the bank's previous GBP5-billion
target, because of the lender's capital shortfall.  Gross lending
in the first half was GBP1.3 billion, Bloomberg notes.

                       About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                           *     *     *

The Troubled Company Reporter-Europe reported on June 15, 2009,
that Fitch Ratings revised the Rating Watch on Northern Rock's
Long-term Issuer Default Rating of 'A-' to Evolving from Positive.
The agency simultaneously affirmed NR's Short-term IDR at
'F1+' and the Individual Rating at 'F'.  Fitch placed the
Support Rating of '1' on Rating Watch Negative.

As reported in the Troubled Company Reporter on April 2, 2009,
Moody's Investors Service downgraded to E from E+ Northern Rock's
Bank Financial Strength Rating.  The E BFSR maps into a Baseline
Credit Assessment of Caa1.  The bank's dated and undated hybrid
subordinated debts were also downgraded to Ca from B1 and B3,
respectively.  The outlook on the subordinated instruments is
negative.  The senior long term and short term ratings of A2/P-1
were affirmed with a developing outlook.


ROYAL BANK: Posts GBP1.04 Bln Net Loss in First Half 2009
---------------------------------------------------------
Jon Menon and Andrew MacAskill at Bloomberg News report that Royal
Bank of Scotland Group Plc posted a net loss of GBP1.04 billion in
the first half of 2009, compared with GBP827 million a year
earlier after setting aside GBP7.52 billion (US$12.62 billion) to
cover bad loans and declining assets.

Bloomberg relates the bank said its non-performing and potential
problem loans more than tripled to GBP31 billion, representing
5.1% of gross loans and advances.

Bloomberg says about 70% of RBS's losses came from its so-called
non-core division, which includes assets the bank plans to sell or
discontinue.  The bulk of the division is comprised of parts of
the global banking and markets businesses, which include propriety
trading and higher risk assets, Bloomberg notes.

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

                        Asset Protection

According to Bloomberg, about 70% of RBS's impairments and
writedowns were for assets that will be covered by the
government's asset protection program.  RBS, Bloomberg discloses,
plans to put GBP316 billion of assets into the program and will be
liable for the first GBP19.5 billion of losses.  Stephen Hester,
RBS's chief executive officer, as cited by Bloomberg, said the
bank is still in negotiations with the Treasury, and there may be
changes to its asset protection filing in the next six weeks.

                           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.


TRAK GROUP: In Administration; Bridge Business Appointed
--------------------------------------------------------
James Bradney and Alex Cadwallader of Bridge Business Recovery
have been named joint administrators to Trak Group, a privately-
owned construction company based in Hemel Hempstead.  The company
was established in 1995 and carried out construction work within
the leisure, residential, industrial and commercial sectors across
the UK.

The Bridge Business Recovery partners have been appointed to
secure the position of the Hertfordshire Group for the benefit of
creditors and to establish the best way forward.  Trak Group fell
victim to the ten-year decline in UK construction activity, and
according to the restructuring specialists, is unlikely to attract
a buyer, however, they are hopeful that many active contracts will
be novated successfully and anticipate a high level of interest.

The regional building contractor is the latest casualty of the
economic downturn, which has seen the construction sector shrink
at the fastest rate in more than a decade.  Mr. Bradney said: "The
well publicized impact of the credit crunch has hit the
construction sector hard.  We will be working closely with the
management to preserve value."

The latest Construction Purchasing Managers' Index, compiled by
Markit for the Chartered Institute of Purchasing and Supply,
highlights that construction activity fell for the sixteenth
consecutive month in June, signaling a further drop in activity
compared with May.

The data suggests that conditions in the construction industry are
worsening, especially in the housing and commercial sub-sectors
where there is less activity and fierce competition between firms.


* UK: SFO Intensfies Probe Into Icelandic Banks After Loan Leak
---------------------------------------------------------------
Rowena Mason at Telegraph.co.uk reports that the Serious Fraud
Office has intensified its inquiries into failed Icelandic banks
Kaupthing, Glitnir and Landsbanki following the leak of
Kaupthing's loan book on to an Internet site, Wikileaks.org, last
week.

According to the report, a team is understood to be examining the
document connected to Kaupthing, which had a large UK client base.

The report says although it has not launched a formal criminal
investigation, a team from the SFO is known to have been looking
closely at Kaupthing, Glitnir and Landsbanki for a number of
months, following their collapse in October last year.
The three banks were nationalized by the Icelandic government,
which put their foreign operations into administration, while
relaunching their domestic operations as new banks with different
names.

The SFO's interest in Kaupthing's loan book is likely to prove
embarrassing for the bank's London advisers and its high-profile
banking clients, although there is no suggestion of any
wrongdoing, the report states.


* BOND PRICING: For the Week August 3 to August 7, 2009
-------------------------------------------------------

Issuer                      Coupon     Maturity   Currency  Price
------                      ------     --------   --------  -----

AUSTRIA
-------
BAWAG                        5.712    2/18/2035      EUR    40.21
CONWERT IMMO INV             1.500   11/12/2014      EUR    72.58
ERSTE GROUP                  8.000    8/31/2009      EUR    70.03
HTM SPORT FREIZE             8.500     2/1/2014      EUR    29.00
HTM SPORT FREIZE             8.500     2/1/2014      EUR    29.00
IMMOFINANZ                   1.250   11/19/2017      EUR    54.73
IMMOFINANZ IMMOB             2.750    1/20/2014      EUR    58.22
KOMMUNALKREDIT               0.500    3/15/2019      CAD    62.00
OESTER VOLKSBK               5.450     8/2/2019      EUR    62.49
OESTER VOLKSBK               4.000   12/14/2023      EUR    74.24
OESTER VOLKSBK               4.810    7/29/2025      EUR    47.88
OESTER VOLKSBK               5.270     2/8/2027      EUR    88.59

BELGIUM
-------
FORTIS BANK                  8.750    12/7/2010      EUR    24.64

CZECH REPUBLIC
--------------
CZECH REPUBLIC               2.750    1/16/2036      JPY    52.77

FINLAND
-------
MUNI FINANCE PLC             1.000   11/21/2016      NZD    69.27
MUNI FINANCE PLC             1.000   10/30/2017      AUD    58.41
MUNI FINANCE PLC             1.000    2/27/2018      AUD    56.76
MUNI FINANCE PLC             0.500    9/24/2020      CAD    50.50
MUNI FINANCE PLC             0.250    6/28/2040      CAD    21.01

FRANCE
------
AIR FRANCE-KLM               4.970     4/1/2015      EUR    13.75
ALCATEL SA                   4.750     1/1/2011      EUR    15.99
ATARI SA                     4.000     4/1/2020      EUR     0.63
CALYON                       6.000    6/18/2047      EUR    43.46
CAP GEMINI SA                2.500     1/1/2010      EUR    51.70
CAP GEMINI SOGET             1.000     1/1/2012      EUR    44.03
CAP GEMINI SOGET             3.500     1/1/2014      EUR    42.70
CLUB MEDITERRANE             4.375    11/1/2010      EUR    48.48
DEXIA MUNI AGNCY             4.680     3/9/2029      CAD    62.65
ESSILOR INT'L                1.500     7/2/2010      EUR    74.87
EUROPCAR GROUPE              8.125    5/15/2014      EUR    72.25
EUROPCAR GROUPE              8.125    5/15/2014      EUR    73.53
NATEX BQUES POP              4.440    3/27/2026      EUR    73.52
SOC AIR FRANCE               2.750     4/1/2020      EUR    19.56

GERMANY
-------
CITY OF KYIV                 8.250   11/26/2012      USD    66.64
DEPFA PFANDBRIEF             3.435    3/16/2011      EUR    98.87
DEPFA PFANDBRIEF             5.886    2/22/2019      EUR    65.81
DEUTSCHE BK LOND             3.000    5/18/2012      CHF    73.63
DEUTSCHE BK LOND             3.250    5/18/2012      CHF    46.90
DEUTSCHE BK LOND             1.000    3/31/2027      USD    41.04
ESCADA AG                    7.500     4/1/2012      EUR    27.63
ESCADA AG                    7.500     4/1/2012      EUR    28.47
GOTHAER ALLG VER             5.527    9/29/2026      EUR    57.57
GROHE HOLDING                8.625    10/1/2014      EUR    63.94
GROHE HOLDING                8.625    10/1/2014      EUR    57.50
HSH NORDBANK AG              4.375    2/14/2017      EUR    60.45
HVB REAL ESTATE              6.570    3/18/2022      EUR    83.31
HYPO REAL ESTATE             5.440    4/13/2034      EUR    88.09
HYPOREAL INTL AG             4.050     2/8/2016      EUR    90.16
HYPOREAL INTL AG             4.560    3/28/2021      EUR    70.44
IKB DEUT INDUSTR             4.500     7/9/2013      EUR    72.69
IKB DEUT INDUSTR             5.670    2/27/2023      EUR    73.88
IKB DEUT INDUSTR             5.760    3/31/2023      EUR    74.46
IKB DEUT INDUSTR             4.080   12/20/2035      EUR    71.84
IWKA FINANCE                 3.750    11/9/2011      EUR    73.30
KFW                          0.500   12/19/2017      EUR    74.70
KFW                          5.000   10/17/2035      EUR    65.24
L-BANK FOERDERBK             0.500    5/10/2027      CAD    39.95

GREECE
------
FAGE DAIRY IND               7.500    1/15/2015      EUR    77.88

ICELAND
-------
GLITNIR BANKI HF             6.000     3/5/2012      GBP    15.98
GLITNIR BANKI HF             6.693    6/15/2016      USD     6.98

IRELAND
-------
AIR BERLIN FINAN             1.500    4/11/2027      EUR    52.07
ALLIED IRISH BKS             7.875     7/5/2023      GBP    75.79
ALLIED IRISH BKS             5.250    3/10/2025      GBP    55.15
ALLIED IRISH BKS             5.625   11/29/2030      GBP    53.78
BANESTO FINANC               6.120    11/7/2037      EUR     6.12
BANK OF IRELAND              4.875    1/22/2018      GBP    67.23
DEPFA ACS BANK               1.650   12/20/2016      JPY    93.78
DEPFA ACS BANK               2.125   10/13/2017      CHF    94.84
DEPFA ACS BANK               0.500     3/3/2025      CAD    31.96
DEPFA ACS BANK               5.250    3/31/2025      CAD    72.36
DEPFA ACS BANK               4.600    12/5/2025      EUR    72.07
DEPFA ACS BANK               3.250    7/31/2031      CHF    60.82
DEPFA ACS BANK               4.900    8/24/2035      CAD    68.59
DEPFA ACS BANK               5.125    3/16/2037      USD   100.58
DEPFA ACS BANK               5.125    3/16/2037      USD    64.97
DEPFA BANK PLC              11.000     2/7/2011      BRL    70.90
IRISH NATIONWIDE             5.500    1/10/2018      GBP    42.39
UT2 FUNDING PLC              5.321    6/30/2016      EUR    51.75

ITALY
-----
CIR SPA                      5.750   12/16/2024      EUR    72.00
COMUNE DI MILANO             4.019    6/29/2035      EUR    66.25

LUXEMBOURG
----------
BREEZE                       4.524    4/19/2027      EUR    90.89
CERRUTI FINANCE              6.500    7/26/2004      EUR     8.49
CODERE FIN LUX               8.250    6/15/2015      EUR    76.25
CRC BREEZE                   5.290     5/8/2026      EUR    68.16
GLENCORE FINANCE             7.125    4/23/2015      EUR    97.77
GLOBUS CAPITAL               8.500     3/5/2012      USD    49.43
HELLAS III                   8.500   10/15/2013      EUR    65.39
IT HOLDING FIN               9.875   11/15/2012      EUR    17.46

NETHERLANDS
-----------
ABN AMRO BANK NV             3.375    8/15/2031      CHF    96.59
ABN AMRO BANK NV             6.000    3/16/2035      EUR    65.19
ABN AMRO BANK NV             7.540    6/29/2035      EUR    55.39
ALB FINANCE BV               9.000   11/22/2010      USD    22.48
ALB FINANCE BV               8.750    4/20/2011      USD    22.48
ALB FINANCE BV               7.875     2/1/2012      EUR    22.91
ALB FINANCE BV               9.250    9/25/2013      USD    22.45
ASTANA FINANCE               7.875     6/8/2010      EUR    19.50
BK NED GEMEENTEN             0.500    6/27/2018      CAD    67.67
BK NED GEMEENTEN             0.500    2/24/2025      CAD    43.28
BLT FINANCE BV               7.500    5/15/2014      USD    66.00
CEMEX FIN EUROPE             4.750     3/5/2014      EUR    74.38
CENTERCRDT INTL              8.625    1/30/2014      USD    75.69
CLONDALKIN BV                8.000    3/15/2014      EUR    76.85
EM.TV FINANCE BV             5.250     5/8/2013      EUR     3.26
GIVAUDAN NEDER               5.375     3/1/2010      CHF    71.67
GMAC INTL FIN BV             5.000    8/15/2010      EUR    72.75
HALYK SAVINGS BK             7.250     5/3/2017      USD    74.34
HALYK SAVINGS BK             7.250     5/3/2017      USD    73.87
HEIDELCEMENT FIN             5.625     1/4/2018      EUR    71.02
INDAH KIAT INTL             11.875    6/15/2002      USD     7.13
ING BANK NV                  4.200   12/19/2035      EUR    68.82
IVG FINANCE BV               1.750    3/29/2017      EUR    48.45
KAZKOMMERTS INTL             5.125    3/23/2011      EUR    69.90
KAZKOMMERTS INTL             7.625    2/13/2012      GBP    66.12
KAZKOMMERTS INTL             8.500    4/16/2013      USD    69.96
KAZKOMMERTS INTL             7.875     4/7/2014      USD    65.67
KAZKOMMERTS INTL             8.000    11/3/2015      USD    65.04
KAZKOMMERTS FIN              8.625    7/27/2016      USD    52.47
KAZKOMMERTS INTL             7.500   11/29/2016      USD    60.99
KAZKOMMERTS INTL             7.500   11/29/2016      USD    61.29
KAZKOMMERTS INTL             6.875    2/13/2017      EUR    57.46
KBC IFIMA NV                 6.004     2/7/2025      USD    59.48
MAGYAR TELECOM              10.750    8/15/2012      EUR    72.88
MAGYAR TELECOM              10.750    8/15/2012      EUR    72.88
TURANALEM FIN BV             7.125   12/21/2009      GBP    22.50
TURANALEM FIN BV             7.875     6/2/2010      USD    21.99
TURANALEM FIN BV             6.250    9/27/2011      EUR    19.99
TURANALEM FIN BV             7.750    4/25/2013      USD    20.96
TURANALEM FIN BV             8.000    3/24/2014      USD    21.05
TURANALEM FIN BV             8.500    2/10/2015      USD    20.94
TURANALEM FIN BV             8.250    1/22/2037      USD    19.88
TURANALEM FIN BV             8.250    1/22/2037      USD    19.83

NORWAY
------
EKSPORTFINANS                0.500     5/9/2030      CAD    31.56

SPAIN
-----
BALEAR GOV'T                 4.063   11/23/2035      EUR    72.57
BANCAJA                      4.250    5/26/2013      EUR    80.82
BANCAJA                      4.375    2/14/2017      EUR    73.85
COMUN AUTO CANAR             3.900   11/30/2035      EUR    70.61
COMUN AUTO CANAR             4.200   10/25/2036      EUR    74.33
GENERAL DE ALQUI             2.750    8/20/2012      EUR    50.15
XUNTA DE GALICIA             4.025   11/28/2035      EUR    72.07

SWITZERLAND
-----------
CYTOS BIOTECH                2.875    2/20/2012      CHF    46.44

UNITED KINGDOM
--------------
3I GROUP PLC                 5.750    12/3/2032      GBP    65.65
ALPHA CREDIT GRP             2.940     3/4/2035      JPY    65.76
AMDOCS LIMITED               0.500    3/15/2024      USD    72.00
ANGLIAN WAT FIN              2.400    4/20/2035      GBP    53.67
ASPIRE DEFENCE               4.674    3/31/2040      GBP    73.71
ASPIRE DEFENCE               4.674    3/31/2040      GBP    73.92
BANK OF SCOTLAND             2.928    6/10/2020      USD    47.11
BANK OF SCOTLAND             2.860   12/13/2021      CHF    73.47
BANK OF SCOTLAND             2.340   12/28/2026      JPY    70.97
BANK OF SCOTLAND             2.408     2/9/2027      JPY    71.53
BANK OF SCOTLAND             2.359    3/27/2029      JPY    68.44
BANK OF SCOTLAND             6.200     2/7/2035      EUR    50.21
BARCLAYS BK PLC             11.650    5/20/2010      USD    46.38
BARCLAYS BK PLC              7.610    6/30/2011      USD    49.91
BRADFORD&BIN BLD             7.625    2/16/2010      GBP     4.00
BRADFORD&BIN BLD             5.500    1/15/2018      GBP     5.99
BRADFORD&BIN BLD             5.750   12/12/2022      GBP     5.00
BRADFORD&BIN PLC             6.625    6/16/2023      GBP     5.99
BRADFORD&BIN BLD             3.500    7/16/2027      CHF    97.52
BRADFORD&BIN BLD             2.875   10/16/2031      CHF    86.30
BRADFORD&BIN BLD             4.910     2/1/2047      EUR    65.71
BRIT INSURANCE               6.625    12/9/2030      GBP    59.92
BRITANNIA BLDG               5.750    12/2/2024      GBP    65.25
BRITANNIA BLDG               5.875    3/28/2033      GBP    60.76
BRITISH LAND CO              5.264    9/24/2035      GBP    71.55
BRITISH LAND CO              5.264    9/24/2035      GBP    73.21
BRIXTON PLC                  6.000    9/30/2019      GBP    70.52
BROADGATE FINANC             5.098     4/5/2033      GBP    65.83
CATTLES PLC                  7.875    1/17/2014      GBP     8.50
CITY OF KIEV                 8.000    11/6/2015      USD    64.07
CJSC FIRST UKRAI             9.750    2/16/2010      USD    53.98
CLERICAL MED FIN             6.450     7/5/2023      EUR    72.44
CO-OPERATIVE BNK             5.625   11/16/2021      GBP    74.10
DAILY MAIL & GEN             5.750    12/7/2018      GBP    64.89
DAILY MAIL & GEN             6.375    6/21/2027      GBP    61.65
EFG HELLAS PLC               2.760    5/11/2035      JPY    55.26
ENTERPRISE INNS              6.500    12/6/2018      GBP    75.37
ENTERPRISE INNS              6.875    2/15/2021      GBP    72.04
ENTERPRISE INNS              6.875     5/9/2025      GBP    71.15
ENTERPRISE INNS              6.375    9/26/2031      GBP    71.25
EXIM OF UKRAINE              8.400     2/9/2016      USD    64.96
F&C ASSET MNGMT              6.750   12/20/2026      GBP    62.00
GRAINGER PLC                 3.625    5/17/2014      GBP    46.11
GREENE KING FIN              5.106    3/15/2034      GBP    72.72
HAMMERSON PLC                6.000    2/23/2026      GBP    74.30
HANSON LTD                   6.125    8/15/2016      USD    77.50
HBOS PLC                     4.500    3/18/2030      EUR    60.61
HBOS PLC                     6.000    11/1/2033      USD    54.80
HBOS PLC                     6.000    11/1/2033      USD    54.80
INEOS GRP HLDG               7.875    2/15/2016      EUR    50.07
INEOS GRP HLDG               7.875    2/15/2016      EUR    49.25
INEOS GRP HLDG               8.500    2/15/2016      USD    51.38
INEOS VINYLS FIN             9.125    12/1/2011      EUR    61.25
INEOS VINYLS FIN             9.125    12/1/2011      EUR    61.25
ITV PLC                      5.375   10/19/2015      GBP    75.03
NBG FINANCE PLC              2.755    6/28/2035      JPY    72.29
PRUDENTIAL BANK              6.875   12/29/2021      GBP    70.20
UNIQUE PUB FIN               7.395    3/28/2024      GBP    71.73
UNIQUE PUB FIN               6.464    3/30/2032      GBP    56.04

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


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