TCREUR_Public/061017.mbx         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

            Tuesday, October 17, 2006, Vol. 7, No. 206

                            Headlines

A U S T R I A

KURTZ LLC: Graz Court Orders Business Shutdown
MA LLC: Property Manager Declares Insufficient Assets
SCHOEN & PLANGL: Property Manager Declares Insufficient Assets


B E L G I U M

CULLIGAN INT'L: Loan Repayment Cues S&P to Lift Rating to BB-


C R O A T I A

AGROKOR D.D.: Improved Liquidity Spurs S&P to Revise Outlook


D E N M A R K

DIGITAL LIGHTWAVE: Issues US$269,931 Promissory Note to Optel
NOVOLIPETSK STEEL: Unveils Trading Update for Third Quarter 2006


F R A N C E

AIRBUS SAS: EADS Hikes Airbus Stake to 100% After BAE Stake Buy
ALCATEL SA: Names Caroline Guillaumin Corp. Communications VP
BURGER KING: Moody's Assigns Loss-Given-Default Ratings
CNET NETWORKS: Discloses Findings of Stock Options Investigation
CNET NETWORKS: Extends Consent Solicitation for 0.75% Sr. Notes

CNET NETWORKS: Names Neil Ashe as New Chief Executive Officer


G E R M A N Y

AIRBUS SAS: EADS Hikes Airbus Stake to 100% After BAE Stake Buy
ALERIS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating
AUTO-BECKER GMBH: Creditors Must File Claims by Oct. 27
CHARIS PROJEKTMANAGEMENT: Creditors Must File Claims by Oct. 27
EGGERATH VERWALTUNGS: Claims Registration Ends Oct. 27

GHM GMBH: Creditors Must File Claim by Oct. 21
LIBERTY MEDIA: Moody's Affirms Ba2 Corporate Family Rating
KINETEK INC: Moody's Junks US$85-Mln Second Lien Term Loan
KINETEK INC: S&P Keeps Ratings on Developing Watch
GREENBIER COMPANIES: Moody's Assigns Loss-Given-Default Ratings

PRAXIS FUER: Claims Registration Ends Oct. 26
SYSTEMPARTNER COMPUTERVERTRIEBS: Claims Filing Ends Oct. 27
WINDPARK WOEHRDEN: Creditors Must File Claims by Oct. 21


I R E L A N D

LEVEL 3: Moody's Assigns Loss-Given-Default Ratings


I T A L Y

GAMESTOP CORP: Moody's Assigns Loss-Given-Default Ratings
KINETEK INC: Moody's Junks US$85-Mln Second Lien Term Loan
KINETEK INC: S&P Holds Ratings on Developing Watch
POPOLARE ITALIANA: Consents to Popolare Verona's EUR8.2-Bln Bid
SBARRO INC: Moody's Assigns Loss-Given Default Rating


K A Z A K H S T A N

ALGA KOZGALYS: Creditors Must File Claims by Nov. 8
ALMATY-AITUR: Creditors Must File Claims by Nov. 10
ARMAN: Proof of Claim Deadline Slated for Nov. 8
ASTANA-ENERGOLINE: Proof of Claim Deadline Slated for Nov. 10
AVTOTORGSERVICE: Kostanai Court Opens Bankruptcy Proceedings

ETM: Kostanai Court Begins Bankruptcy Proceedings
HIMSERVICE-SK: Court Starts Bankruptcy Procedure
KAZAKHGOLD GROUP: Gold Production Up 27% in Third Quarter 2006
KAZAKHGOLD GROUP: Fitch Rates Planned US$150-Mln Bond Issue at B
REGALIA+: Claims Registration Ends Nov. 10

TARLAN: West Kazakhstan Court Commences Bankruptcy Proceedings


K Y R G Y ZS T A N

ALIAS TOUR: Proof of Claim Deadline Slated for Nov. 24
ALIANCE GAS: Creditors Must File Claims by Nov. 24


L I T H U A N I A

MAZEIKIU NAFTA: Pegs Refinery Fire Damages at US$47.5 Million
MAZEIKIU NAFTA: Fitch Keeps B+ Rating After Refinery Fire


L U X E M B O U R G

EVRAZ GROUP: Earns US$571 Million for First Half 2006
EVRAZ GROUP: Wins License for Sobstvenno-Kachkanarskoye Field


N E T H E R L A N D S

ALFA BANK: Earns US$114.8 Million for First Half 2006
GLOBAL POWER: Can Wind Down Heat Recovery Business Segment
VNU GROUP: Completes 34.3% Solucient Stake Sale to Thompson Corp


P O L A N D

GREENBIER COMPANIES: Moody's Assigns Loss-Given-Default Ratings


R O M A N I A

BANCA COMERCIALA: Erste Bank Completes 61.8% Equity Purchase
BANCA COMERCIALA: Fitch Affirms Individual Rating at C/D
HVB TIRIAC: Begins Merger Operations With UniCredit Romania
UNICREDIT ROMANIA: Begins Merger Operations With HVB Tiriac


R U S S I A

ALFA BANK: Earns US$114.8 Million for First Half 2006
ALFA MTN: Moody's Affirms Ba2 Rating on US$1-Bln EMTN Program
BALEZINSKIY WOODWORKING: A. Galushko to Manage Assets
BANK SAINT PETERSBURG: Fitch Places Individual Rating at D
ELABUZHSKIYE TRANSPORT: K. Shamsutdinov to Manage Assets

EVRAZ GROUP: Earns US$571 Million for First Half 2006
EVRAZ GROUP: Wins License for Sobstvenno-Kachkanarskoye Field
GAZPROM NEFT: S&P Lifts Rating on Favorable Pricing Environment
GAZPROM OAO: S&P Lifts Rating to BBB- on Strong Performance
KOZMODEMYANSKIY BUTTER: S. Kachin to Manage Assets

KUDRYASHEVSKIY FEED: Bankruptcy Hearing Slated for Jan. 15
MAKARYEVSKAYA FAIR: Bankruptcy Hearing Slated for Nov. 5
MAZEIKIU NAFTA: Pegs Refinery Fire Damages at US$47.5 Million
MAZEIKIU NAFTA: Fitch Keeps B+ Rating After Refinery Fire
MENDELEEVSKAYA: Court Names A. Dyachkov as Insolvency Manager

NIZHNEKAMSKIY FACTORY: Bankruptcy Hearing Slated Oct. 23
NOVATEK OAO: Extraordinary General Meeting Slated for Dec. 13
NOVOLIPETSK STEEL: Unveils Trading Update for Third Quarter 2006
OKTYABRSKIY LEATHER-SHOE: Z. Sattarova to Manage Assets
OMSK-CARRIAGE-FACTORY: Bankruptcy Hearing Slated for Dec. 5

PIKE: Chuvashiya Court Names V. Minyunin to Manage Assets
ROSNEFT OAO: Raises Oil Production by 8.4% in First Nine Months
SUAL GROUP: Obtains US$16-Mln Investment for New ScovO Plant
TATNEFT OAO: Extends GDR Facility's Certification Date
THEMIS: Udmurtiya Court Names A. Kolpakov as Insolvency Manager

USOLYE-GLUE-FACTORY: Court Names N. Vlasenko to Manage Assets
UYAN: Irkustk Court Names I. Kolotilin as Insolvency Manager
VOLZHSKIY BAKERY: Court Names V. Chalyj as Insolvency Manager


S P A I N

CULLIGAN INT'L: Loan Repayment Cues S&P to Lift Rating to BB-


S W E D E N

GAMESTOP CORP: Moody's Assigns Loss-Given-Default Ratings


S W I T Z E R L A N D

LEVEL 3: Moody's Assigns Loss-Given-Default Ratings


U K R A I N E

ALFA BANK: Earns US$114.8 Million for First Half 2006
CLEARING HOUSE: Court Names Malvina Pidluzhna as Liquidator
CRIMEAN SALT: AR Krym Court Starts Bankruptcy Supervision
LEBID: Hmelnitskij Court Starts Bankruptcy Supervision
PETROVETS: Herson Court Names Leonid Galka as Insolvency Manager

ROMASHKA: Court Names Yurij Gorodchuk as Insolvency Manager
SELIDIVVUGLEPOSTACHZBUT: E. Lesnikov to Liquidate Assets
TARAS: Ternopil Court Starts Bankruptcy Supervision
ZORYA: Ternopil Court Starts Bankruptcy Supervision


U N I T E D   K I N G D O M

AAR CORP: Improved Credit Protection Cues S&P to Raise Rating
AIRBUS SAS: EADS Hikes Airbus Stake to 100% After BAE Stake Buy
ALERIS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating
ALLIANCE ATLANTIS: Moody's Assigns Loss-Given-Default Ratings
BANCA COMERCIALA: Erste Bank Completes 61.8% Equity Purchase

BANCA COMERCIALA: Fitch Affirms Individual Rating at C/D
BANK SAINT PETERSBURG: Fitch Places Individual Rating at D
BRITISH AIRWAYS: Continuing Union Talks Over Pension on Oct. 23
BURGER KING: Moody's Assigns Loss-Given-Default Ratings
CAPITA CENTRES: Names David Nimmo McFarlane Liquidator

CHATTEM INC: Earns US$15.2 Million in Third Quarter 2006
CNET NETWORKS: Discloses Findings of Stock Options Investigation
CNET NETWORKS: Extends Consent Solicitation for 0.75% Sr. Notes
CNET NETWORKS: Names Neil Ashe as New Chief Executive Officer
DIGITAL LIGHTWAVE: Issues US$269,931 Promissory Note to Optel

ESSEX WOOD: Appoints H. J. Sorsky to Liquidate Assets
FEDERAL-MOGUL: Retains All UK Administered Companies Under CVAs
INTELSAT LTD: Moody's Assigns Loss-Given-Default Rating
INTELSAT LTD: Fitch Junks Bermuda Unit's US$600-Million Loan
INTELSAT LTD: Promotes Linda Kokal to Sr. Vice Pres. & Treasurer

KARNAVAL GROUP: Taps Liquidator from Findlay James
KAZAKHGOLD GROUP: Gold Production Up 27% in Third Quarter 2006
KAZAKHGOLD GROUP: Fitch Rates Planned US$150-Mln Bond Issue at B
LIBERTY MEDIA: Moody's Affirms Ba2 Corporate Family Rating
MARBLE ARCH: Moody's Rates Class E1c Notes at (P)Ba1

MARBLE ARCH: S&P Assigns Low-B Ratings on Class FTc Notes
MAZEIKIU NAFTA: Pegs Refinery Fire Damages at US$47.5 Million
MAZEIKIU NAFTA: Fitch Keeps B+ Rating After Refinery Fire
PROFESSIONAL SOLUTIONS-1: Alan Simon Leads Liquidation Procedure
QUALITY MEMORIALS: Hires David Graham to Liquidate Assets

RESPONSE RECRUITMENT: Nominates Lane Bednash as Liquidator
SBARRO INC: Moody's Assigns Loss-Given Default Rating
SECUNDA INT'L: Terminates Cash Tender Offer on US$125 Mln Notes
SECUNDA INT'L: IPO Termination Prompts S&P to Revise Outlook
T.D. TRAINING: Brings In Liquidators from Grant Thornton

* Moody's Confirms U.K. Banking System's Stable Outlook

* Large Companies with Insolvent Balance Sheets

                            *********

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


KURTZ LLC: Graz Court Orders Business Shutdown
----------------------------------------------
The Land Court of Graz entered an order Sept. 4 shutting down
the business of LLC Kurtz (FN 191468x).  Court-appointed
property manager Norbert Scherbaum determined that the
continuing operation of the business would reduce the value of
the estate.

The property manager can be reached at:

         Dr. Norbert Scherbaum
         Scherbaum/Seebacher
         Einspinnergasse 3
         2nd Floor
         8010 Graz, Austria
         Tel: 0316/832460
         Fax: 0316/832460-20
         E-mail: office@scherbaum-seebacher.at  

Headquartered in Graz, Austria, the Debtor declared bankruptcy
on Aug. 31 (Bankr. Case No. 26 S 84/06g).  


MA LLC: Property Manager Declares Insufficient Assets
-----------------------------------------------------
Mag. Petra Klingenschmid, the court-appointed property manager
for LLC MA (FN 216243f), declared Sept. 4 that the Debtor's
property is insufficient to cover creditors' claim.

The Land Court of Wiener Neustadt is yet to rule on the property
manager's claim.

Headquartered in Tribuswinkel, Austria, the Debtor declared
bankruptcy on Jan. 31, 2005 (Bankr. Case No. 11 S 9/05t).  

The property manager can be reached at:

         Mag. Petra Klingenschmid
         Kaiser Franz Joseph Ring 5
         2500 Baden bei Wien, Austria
         Tel: 02252/86366
         Fax: 02252/863662
         E-mail: klingenschmid@forsthuber.at


SCHOEN & PLANGL: Property Manager Declares Insufficient Assets
--------------------------------------------------------------
Dr. Peter Schulyok, the court-appointed property manager for LLC
Schoen & Plangl (FN 123882 f), declared Sept. 4 that the
Debtor's property is insufficient to cover creditors' claim.

The Trade Court of Vienna is yet to rule on the property
manager's claim.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 28, 1993 (Bankr. Case No. 42 S 76/99d).  

The property manager can be reached at:

         Dr. Peter Schulyok
         Mariahilfer Str. 50
         1070 Vienna, Austria
         Tel: 523 62 00
         Fax: 526 72 74


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


CULLIGAN INT'L: Loan Repayment Cues S&P to Lift Rating to BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its loan and recovery
ratings on Culligan International Co.'s US$325 million senior
secured credit facility.  The secured loan rating was raised to
'BB-' from 'B+' and the recovery rating was revised to '1',
indicating a high expectation for full recovery of principal in
the event of a payment default, from the previous recovery
rating of '3'.
     
At the same time, Standard & Poor's affirmed its other ratings
on Culligan, including the 'B+' corporate credit rating. The
rating outlook is stable.  Total debt outstanding at Northbrook,
Ill.-based Culligan was approximately US$453.9 million at
June 30, 2006, excluding operating leases.
      
"The upgrade to the loan and recovery ratings reflects
Culligan's recent US$40 million repayment of term loan debt and
the increased likelihood that the enterprise value of the
company under a payment default scenario would provide senior
lenders with full recovery of principal," explained Standard &
Poor's credit analyst Mark Salierno.
     
The ratings on Northbrook, Ill.-based Culligan reflect:

   -- ongoing concerns regarding the company's
      underperforming North American operations,

   -- a highly competitive operating environment, and

   -- a leveraged financial profile.  

These factors are partly mitigated by:

   -- the company's extensive distribution network,

   -- recurring revenue streams, and

   -- global presence.
     
Culligan, a leading global provider of water treatment products
and services for household and commercial applications,
participates in a highly competitive industry with modest growth
prospects.  Volume growth remains particularly slow in the North
American market.  Within the home-office-delivery (HOD) market,
competition continues to intensify, driven by mass merchandisers
and other retail outlets offering competitively priced in-home
water coolers, eroding the market share for equipment rentals.

Standard & Poor's believes that Culligan will be challenged to
increase the level of services provided in the North American
market to mitigate the declining HOD business, which represents
just less than one-quarter of the company's total sales.


=============
C R O A T I A
=============


AGROKOR D.D.: Improved Liquidity Spurs S&P to Revise Outlook
------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Croatia-based food manufacturer and retailer Agrokor d.d. to
positive from negative.
     
At the same time, Standard & Poor's affirmed its 'B' long-term
corporate credit rating on Agrokor and assigned its 'B' senior
secured debt rating to the company's proposed EUR150 million
Eurobond issue.
     
At June 30, 2006, Agrokor's financial debt stood at Croatian
kuna (HRK) 4.37 billion.
     
"The outlook revision reflects the company's significantly
improved liquidity and upgraded corporate governance practices
following the acquisition of an 8.3% stake in the company by the
European Bank for Reconstruction and Development," said Standard
& Poor's credit analyst Ivan Strougatski.
     
The ratings on Agrokor continue to be constrained by its
aggressive, but improving, financial profile and by its exposure
to developing economies in the western Balkans.  The company's
business profile remains supported by its entrenched market
positions in the Croatian retail segment and in several key food
segments such as edible oils, margarine, ice cream, juices, and
mineral water.  

Although Croatian transport infrastructure, which requires
additional development, has to date limited the entrance of
large multinational competitors, Standard & Poor's expects
foreign competition to intensify as Croatia moves closer to EU
integration.
     
Standard & Poor's expects that Agrokor will further improve its
credit protection measures over the next 18-24 months and that
future acquisitions will be paced more gradually.  The ratings
provide no flexibility for further large debt-financed
acquisitions  
     
"The ratings could be raised if Agrokor achieves improvements in
cash flow generation that would allow the company to reach and
sustain a net-debt-to-EBITDA ratio of 4x or below and if it
further strengthens its corporate governance practices," Mr.
Strougatski added.
     
Conversely, the outlook could be revised back to stable if the
target ratio is not be met on a sustainable basis and if
progress on corporate governance standards is not consistent.


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


DIGITAL LIGHTWAVE: Issues US$269,931 Promissory Note to Optel
-------------------------------------------------------------
Digital Lightwave Inc. issued a secured promissory note in the
principal amount of US$269,931 to Optel Capital, LLC to
reimburse the draw on the letter of credit by MC Test Service,
Inc. on Oct. 4, 2006.

MC Test provides outsourced manufacturing services to the
Company pursuant to a letter of agreement.  Optel, an entity
controlled by Dr. Bryan J. Zwan, the Company's largest
stockholder and chairman of the board of directors, established
a US$6 million irrevocable letter of credit on behalf of the
Company and named MC Test as beneficiary.  The Letter of Credit
was renewed for US$2 million and the expiration date extended
until Dec. 30, 2006.

MC Test, on Oct. 4, 2006, drew down US$269,931 of the Letter of
Credit for outsourced manufacturing services provided to the
Company by MC Test.

The Company's obligation with Optel is evidenced by the secured
promissory note bears interest at 10% per annum and is secured
by a security interest in substantially all of the Company's
assets.  Principal and accrued but unpaid interest under the
secured promissory note is due and payable upon demand by Optel
at any time after Dec. 31, 2006.

The Company disclosed that it continues to have insufficient
short-term resources for the payment of its current liabilities.
As of Oct. 4, 2006, it has been unable to secure any financing
agreement or to restructure its financial obligations with
Optel.

As of October 4, 2006, the Company owed Optel approximately
US$54.4 million in principal plus approximately US$10.2 million
of accrued interest thereon.

The Company also disclosed that approximately US$64.6 million of
principal and accrued interest payable to Optel is currently due
and payable on demand.

The Company further disclosed that Optel currently is its
principal source of financing and it has not identified any
other funding source that would be prepared to provide current
or future financing.  The Company is continuing its discussions
with Optel to restructure the Short-Term Notes and the Secured
Convertible Promissory Note by extending the maturity date, and
to arrange for additional short-term working capital.  If the
Company does not reach an agreement to restructure the Short-
Term Notes and the Secured Convertible Promissory Note, and
obtain additional financing from Optel, the Company will be
unable to meet its obligations to Optel and other creditors.

A full text-copy of the Oct. 4, 2006 Secured Promissory Note
issued by Digital Lightwave to Optel, may be viewed at no charge
at http://ResearchArchives.com/t/s?1354/

Headquartered in Clearwater, Florida, Digital Lightwave Inc.
designs, develops and markets products for installing,
maintaining and monitoring fiber optic circuits and networks.  
The company's product lines include: Network Information
Computers, Network Access Agents, Optical Test Systems, and
Optical Wavelength Managers.  The company's wholly owned
subsidiaries are Digital Lightwave (UK) Limited, Digital
Lightwave Asia Pacific Pty, Ltd., and Digital Lightwave Latino
Americana Ltda.  The company also has presence in Australia,
Canada, Denmark, France, Greece, Hong Kong, India, Indonesia,
Korea, Mexico, Malaysia, Singapore, Thailand, among others.

At June 30, 2006, Digital Lightwave's balance sheet showed
US$58,504,000 in total stockholders' deficit from total assets
of US$6,394,000 and total liabilities of US$64,898,000.


NOVOLIPETSK STEEL: Unveils Trading Update for Third Quarter 2006
----------------------------------------------------------------
OJSC Novolipetsk Steel released its regular trading update for
the third quarter 2006.

Third quarter 2006 was marked by a substantial increase in steel
production compared with the same period in 2005.  The greater
volumes of high value-added products combined with decrease in
hot-rolled steel production on q-o-q basis have resulted in
improved sales mix.

Despite a slight decrease in pig iron and crude steel production
during Q3 2006 compared to Q2 2006, the production of high
value-added products increased during the reporting period. The
reduction of pig iron and crude steel production is explained by
planned midyear maintenance activities.  The decrease in
production at DanSteel A/S in Q3 2006 compared to previous
quarter is also attributable towards planned maintenance
activities.

As for NLMK's mining and coke-chemical segments, iron ore
concentrate, coking coal and coke production in Q3 2006 rose
compared to both Q2 2006 and Q3 2005.

The favorable market environment during Q3 2006 resulted in
growing prices for most of company's products in comparison with
the previous quarter.  The company's average prices throughout
the product portfolio in Q3 2006 were higher than during Q3
2005.

                           Outlook

NLMK's consolidated sales revenue in the third quarter 2006 will
benefit from rising steel prices compared with the second
quarter 2006 and third quarter 2005.  In addition, Q3 2006 sales
revenue will reflect the consolidation of VIZ-Stal since mid-
August 2006.

The increase in the company's average prices combined with
greater volumes of high value-added products in Q3 2006 will
result in improved operating profit compared with the previous
quarter.  In Q4 2006 [the company] expects the market to
stabilize although there is a possibility that prices may
decline.

NLMK will announce its U.S. GAAP results for the nine months
ended Sept. 30, 2006 in the first week of December.

Full copy of NLMK's trading update for third quarter 2006 may be
viewed at no charge at: http://researcharchives.com/t/s?1383

                       About the Company

Headquartered in Lipetsk, Russia, Novolipetsk Steel --
http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot-
rolled steel, and a variety of value-added steel products, such
as cold-rolled sheet, electrical steel and other specialty flat
products.

The group entered the Danish steel market in the first quarter
of 2006 by acquiring a 100% stake at DanSteel A/S.

                        *     *     *

As reported in TCR-Europe on July 14, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Russia-
based steelmaker OJSC Novolipetsk Steel to 'BB+' from 'BB'.  S&P
said the outlook is stable.  The Russia national scale rating
was also raised to 'ruAA+' from 'ruAA'.

"The upgrade reflects the company's continuing strong
performance and conservative financial policies," said Standard
& Poor's credit analyst Tatiana Kordyukova.


===========
F R A N C E
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AIRBUS SAS: EADS Hikes Airbus Stake to 100% After BAE Stake Buy
---------------------------------------------------------------
The European Aeronautic Defence and Space Company (EADS) N.V.
acquired from BAE Systems its 20 percent stake in Airbus SAS for
EUR2.75 billion.

This value was determined by an independent expert during the
put option process which was launched by BAE Systems in June
2006.  EADS paid in cash from the group's existing resources.  
EADS is therefore now the sole owner of Airbus.

The closing of the deal came a week after Christian Streiff
resigned as Airbus CEO and member of the EADS Executive
Committee.  Louis Gallois has replaced Mr. Streiff, while
keeping his post as co-executive at EADS.

                           BAE Sale

On July 2, Rothschild valued BAE's stake at GBP1.9 billion
(EUR2.75 billion), well below the expectation of BAE, analysts
and even EADS.   A few days after, BAE appointed independent
auditors to study why the value of its share of Airbus had
fallen from the original estimates to the Rothschild valuation.  
On Sept. 6, BAE agreed to sell its stake in Airbus to EADS for
GBP1.87 billion (EUR2.75 billion or US$3.53 billion), pending
BAE shareholder approval.  On Oct. 4, shareholders voted in
favor of the sale.

                        A380 Delays

On June 2, 2006, co-CEO Noel Forgeard and Airbus CEO Gustav
Humbert resigned following the controversy caused by the
company's June 2006 announcement that deliveries of the A380
would be delayed by a further six months.  Mr. Forgeard was also
under pressure due to the fact that he had sold EADS stock weeks
before the A380 announcement, which caused a 26% slump in the
share price.  A French shareholder group filed a class action
lawsuit against EADS in a Dutch court for failing to inform
investors of the financial implications of the A380 delays while
airlines to which deliveries were promised are expected to
demand compensation.

The delays are caused by Airbus's failure to provide uniform
software to aircraft design teams.

On Oct. 3, Airbus informed its A380 customers about a further
delay in the delivery schedule of the A380.  According to the
revised plan, the first A380 will be delivered in October 2007.  
Thirteen more will be delivered in 2008 and 25 in 2009.  The
industrial ramp-up will be completed in 2010, when 45 A380s are
going to be delivered.  The company said the postponement will
cut profit at EADS by EUR4.8 billion (GBP3.2 billion) through to
2010.

                      Profit Expectations

According to Russell Hotten of The Telegraph early this month,
EADS is now predicting a EUR2.8 billion profit shortfall over
four years on top of the EUR2 billion disclosed in June.  It has
also disclosed up to EUR2 billion in annual cost-savings measure
and is taking provisions for penalties to airlines, Mr. Hotten
relates.

Mr. Streiff has previously disclosed job cuts and other
measures, including changes in production that could see
manufacturing moved between Hamburg and Toulouse in an effort to
cut costs.

               Job Cuts in Germany Begin, Source Says

According to Financial Times Deutschland citing an unidentified
source, Airbus has already begun to cut jobs in Germany with
several posts filled by temporary workers terminated or not
extended.  Airbus executives in Germany and workers'
representatives are continuing negotiations, the source tells FT
Deutschland.  Airbus has seven plants in Germany.

Headquartered in Toulouse, France, Airbus S.A.S. --
http://www.airbus.com/en-- is a leading aircraft manufacturer  
in Europe with around 55,000 people employed at sixteen sites in
Germany, France, Spain and the United Kingdom.


ALCATEL SA: Names Caroline Guillaumin Corp. Communications VP
-------------------------------------------------------------
Alcatel S.A. disclosed that Caroline Guillaumin is appointed
Vice President, Corporate Communications as of Oct. 16.  She
will also coordinate the company sustainable development policy.  

Mr. Guillaumin will have the same position in the combined
company with Lucent Technologies.  She will report to Claire
Pedini, Senior Vice President, Corporate Human Resources and
Communications of Alcatel.

Ms. Guillaumin was Communications and corporate social
responsibility director of SFR, since May 2003.  She was
previously corporate internal and external communications
director of Alcatel, from June 1999 to May 2003, and from 1998
to 1999, senior marketing and communications manager at Alcatel
Answare, an Alcatel company.  From 1997 to 1998, she was Europe
marketing and communications director for Verity, Inc.  From
1990 to 1998, Ms. Guillaumin held several positions in marketing
and communications at P.C. Publishing, Inc. in France and in the
United States (Los Angeles and Boston).  Caroline Guillaumin is
a graduate in political sciences (IEP Bordeaux), and holds a
Master of Arts in international relations from the
Boston University, Mass.

                        About Alcatel

Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and
NYSE: ALA) -- http://www.alcatel.com/-- provides communications  
solutions to telecommunication carriers, Internet service
providers and enterprises for delivery of voice, data and video
applications to their customers or employees.  Alcatel brings
its leading position in fixed and mobile broadband networks,
applications and services, to help its partners and customers
build a user-centric broadband world.  With sales of EUR13.1
billion and 58,000 employees in 2005, Alcatel operates in more
than 130 countries.

                         *     *     *

As reported in TCR-Europe on April 5, Moody's Investors Service
has placed the Ba1 long-term debt ratings of Alcatel SA on
review for possible downgrade following its definitive agreement
to merge with Lucent Technologies (rated B1).  The ratings
placed on review include Alcatel's senior, unsecured Eurobonds,
convertible bonds, Euro-medium term notes, its EUR1.0 billion
revolving credit facility and its corporate family rating, all
at Ba1 currently.  Alcatel's rating for short-term debt was
affirmed at Not-Prime.

In March 2006, Standard & Poor's Services placed its 'BB' long-
term corporate credit rating on France-based telecommunications
equipment maker Alcatel on CreditWatch with negative
implications.


BURGER KING: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its Ba2 Corporate Family Rating and assigned its Ba3
probability-of-default rating for Burger King Corp.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$150 million
   Sr. Sec. Revolver
   due 2011               Ba2      Ba2    LGD3        35%

   US$250 million
   Sr. Sec. Term
   Loan A due 2011        Ba2      Ba2    LGD3        35%

   US$1100 Sr. Sec.
   Term Loan B
   due 2012               Ba2      Ba2    LGD3        35%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/--  
operates more than 11,100 restaurants in all 50 states and in
more than 65 countries and U.S. territories including Austria,
Cyprus, Denmark, France, Norway, Portugal, Spain, Sweden,
Switzerland, Turkey, Italy, Iceland, Germany, Malta, and
Hungary.  Approximately 90% of Burger King restaurants are owned
and operated by independent franchisees, many of them family-
owned operations that have been in business for decades.


CNET NETWORKS: Discloses Findings of Stock Options Investigation
----------------------------------------------------------------
CNET Networks Inc. said that a special committee of its Board of
Directors has reported its findings on the Company's options
granting practices and procedures to the Board of Directors.

As reported in the Troubled Company Reporter on May 24, the
Company's Board of Directors appointed a special committee of
independent directors to conduct an internal investigation
relating to past option grants, the timing of such grants and
related accounting matters.

The Special Committee consists of two independent members of
CNET Networks' audit committee of the Board of Directors - Peter
Currie and Betsey Nelson, chair of the audit committee.  The
Special Committee was assisted in the investigation by outside
legal counsel Davis Polk & Wardwell and accountants from
Navigant LLC.  The Special Committee reviewed and analyzed more
than 700,000 documents and emails, and conducted over thirty
interviews of current and former officers, directors, employees
and advisors to CNET Networks over the last four months.  The
Company says that the Special Committee and the Company continue
to cooperate with the Securities and Exchange Commission, the
NASD and the United States Attorney's Office for the Northern
District of California.

"The completion of the Special Committee report represents an
important step forward for CNET Networks," said Neil Ashe, the
Company's newly elected chief executive officer.  "We are
committed to ensuring that the highest standards of business
conduct, financial reporting and internal controls are
maintained, and we are focused on quickly implementing the
recommendations of the Special Committee.  Under the leadership
of our CFO, George Mazzotta, we look to complete the restatement
of historical financial statements related to past stock option
grants as soon as practicable."

Key findings of the Special Committee's report include:

    * there were deficiencies with the process by which options
      were granted at CNET, including in some instances the
      backdating of option grants, during the period from the
      Company's IPO in 1996 through at least 2003.

    * these deficiencies resulted in accounting errors, which
      the Company has previously announced will result in a
      restatement.

    * a number of executives of the Company, including the
      former CFO and the recently resigned CEO, General Counsel
      and SVP of Human Resources, bear varying degrees of
      responsibility for these deficiencies.

    * the report does not conclude that any current employees of
      the Company or any recently resigned employees engaged in
      intentional wrongdoing.

    * since 2003, the Company has taken steps to remedy these
      deficiencies through personnel changes and improved
      internal controls.  The Special Committee recommended a
      number of additional remedial measures.

    * the recently resigned executives and the directors who
      received improperly priced options have agreed voluntarily
      to have these options repriced to fair market value on the
      appropriate measurement date.

The Special Committee reported that it believes that the
Compensation Committee relied upon management to establish and
maintain appropriate procedures with respect to stock option
grants.  The report stated that it would have been better
practice if the Compensation Committee had encouraged management
to adopt more rigorous procedures and controls during the 1996-
2003 period.

The Company's co-founder and the chairman of the board and chief
executive officer from 2000 to the present, Shelby Bonnie, has
resigned as chairman and CEO but will remain a director.  The
Company's general counsel and head of Human Resources have also
resigned.

With regard to Mr. Bonnie, Mr. Jarl Mohn, chairman of the Board
of Directors, commented, "We extend our appreciation to Shelby
for his founding role and many years of service, and for his
willingness to work with the Board and the Company in assisting
with this transition.  Shelby's lasting legacy will be the
innumerable positive actions he undertook to make CNET Networks
the successful industry leader it is today."

"I apologize for the option-related problems that happened under
my leadership," said Shelby Bonnie.  "I believe that the company
has come a long way since 2003 in addressing these deficiencies,
but am deeply disappointed it happened nonetheless."

The Company and its independent auditors are reviewing the
findings of the Special Committee investigation.  Management
continues to expect that CNET Networks will need to restate its
historical financial statements to record non-cash charges for
compensation expense relating to past stock option grants.  The
Company and its independent auditors are reviewing recent
accounting guidance published by the SEC, and have not yet
determined the amount of such charges, the resulting tax and
accounting impact, or which periods may require restatement.

                       About CNET Networks

CNET Networks, Inc. (Nasdaq: CNET) --
http://www.cnetnetworks.com/-- is an interactive media company  
that builds brands for people and the things they are passionate
about, such as gaming, music, entertainment, technology,
business, food, and parenting.  The Company's leading brands
include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet
and TechRepublic. Founded in 1993, CNET Networks has a strong
presence in the US, Asia and Europe including Russia, Germany,
Switzerland, France and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
CNET Networks received a notice from the trustee under the
indenture governing the Company's US$125 million aggregate
principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file
its Form 10-Q with the trustee within fifteen days after it is
required to be filed with the SEC.  

If the default is not cured within 60 days, the bonds may be
accelerated by the holders of 25% outstanding principal amount
or the trustee.  As of June 30, 2006, the Company had
approximately US$143.3 million of cash and investments.


CNET NETWORKS: Extends Consent Solicitation for 0.75% Sr. Notes
---------------------------------------------------------------
CNET Networks Inc. modified and extended its solicitation of
consents for its outstanding US$125.0 million principal amount
of 0.75% Senior Convertible Notes due 2024.  The Company also
updated its outlook for it revenues for the third quarter of
2006 and for the full year.

            Modified and Extended Consent Offering

The consent solicitation has been modified to offer holders a
two-year extension of the call protection period so that such
period would end on April 20, 2011 rather than April 20, 2009.  
The offer, which was scheduled to expire midnight, New York City
time, on October 11, 2006, will now expire at midnight, New York
City time, on Wednesday, October 18, 2006.  The solicitation is
being made upon the terms, and is subject to the conditions, set
forth in the Company's Consent Solicitation Statement, dated
Sept. 13, 2006, and in the accompanying form of consent, as
amended by the supplement to Consent Solicitation Statement
dated October 11, 2006.  The proposed amendments and waivers
require the consent of holders of 70% of aggregate principal
amount of the notes outstanding.

Requests for additional copies of the Consent Solicitation
Statement, the Letter of Consent or other related documents
should be directed to D.F. King & Co., Inc., the information and
tabulation agent, at (800) 829-6551 (toll-free) or (212) 269-
5550 (collect).  Questions regarding the consent solicitation
should be directed to the Convertibles Sales Department of Banc
of America Securities LLC, the solicitation agent, at 800-654-
1666 (toll-free) or 212-583-8206 (collect).

                     Business Outlook

In April 2006 the Company revised its outlook noting several
industry trends in the technology and video game industries.  
These factors continue to impact CNET Networks' business, and
accordingly, the Company has further revised its outlook.

    * For the third quarter of 2006, CNET Networks estimates
      total revenues were approximately US$92.8 million.  
      Previously, the Company had expected total revenues of
      US$93 million to US$96 million.

    * For the full-year 2006, CNET Networks expects total
      revenues of US$376 million to US$386 million. Previously,
      the Company had expected full year total revenues of
      US$386 million to US$403 million.

                     Form 10-Q Filing Delay

The Company will not be in a position to file its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2006 on
a timely basis, pending the completion of its financial
restatements related to its independent investigation of stock
option granting practices and of the requisite audit procedures
by the Company's independent registered public accountants.  
Consequently, CNET Networks is not in a position to provide
actual results or guidance regarding operating expense,
operating income, net income or earnings per share.

                       About CNET Networks

CNET Networks, Inc. (Nasdaq: CNET) --
http://www.cnetnetworks.com/-- is an interactive media company  
that builds brands for people and the things they are passionate
about, such as gaming, music, entertainment, technology,
business, food, and parenting.  The Company's leading brands
include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet
and TechRepublic. Founded in 1993, CNET Networks has a strong
presence in the US, Asia and Europe including Russia, Germany,
Switzerland, France and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
CNET Networks received a notice from the trustee under the
indenture governing the Company's USUS$125 million aggregate
principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file
its Form 10-Q with the trustee within fifteen days after it is
required to be filed with the SEC.  

If the default is not cured within 60 days, the bonds may be
accelerated by the holders of 25% outstanding principal amount
or the trustee.  As of June 30, 2006, the Company had
approximately USUS$143.3 million of cash and investments.


CNET NETWORKS: Names Neil Ashe as New Chief Executive Officer
-------------------------------------------------------------
CNET Networks Inc. disclosed that its Board of Directors has
unanimously appointed Neil Ashe as the Company's new chief
executive officer and director effective immediately.  Co-
founder and chief executive officer Shelby Bonnie has resigned
as chairman and CEO.

The Company also said that Jarl Mohn has been named non-
executive chairman of CNET Networks' Board of Directors.  Mr.
Mohn has extensive experience in the media and technology
industries.

Mr. Mohn has previously served as president and chief executive
officer of Liberty Digital, Inc., founding president and CEO of
E! Entertainment Television, and executive vice president and
general manager of MTV and VH1.

"CNET Networks is known for building world class brands for
people and the things they are passionate about.  It's been an
honor to work with Shelby as we have grown the company from its
technology roots and moved into new categories like
Entertainment, Food and Parenting," said Neil Ashe.  "CNET
Networks is a different kind of media company and we are
committed to continuing to be pioneers in interactive content.  
We have been and will be innovators, and together with my
colleagues worldwide, I am confident about what we can
accomplish.  Innovation is part of our DNA and will be
fundamental to our success moving forward."

Jarl Mohn, the newly appointed chairman of the Board, said,
"Neil has been instrumental in CNET Networks' growth and success
over the past few years both as head of corporate strategy and
development and through the operation of several business units.  
This announcement marks the successful completion of the Board's
succession planning started more than 18 months ago.  Neil's
broad-based expertise in all facets of the business, together
with his outstanding management and leadership skills, are
valuable assets that will serve our company well as we continue
to expand CNET Networks."

"I am confident under Neil's leadership CNET Networks will
continue to play an important role in the evolving media
landscape" said Shelby Bonnie.  "He will build upon the
company's legacy and take it to new heights."

Since joining CNET Networks in 2002, Mr. Ashe has led the
company's content expansion strategy, including numerous
acquisitions to develop its existing products and expand into
new categories which attract new audience and customer segments.  
His day-to-day responsibility for the Community and Lifestyle,
International, Channel, and Business divisions has resulted in
new product development, audience growth and revenue streams for
the company.

Prior to joining CNET Networks, Mr. Ashe founded and served as
chief executive officer of several start-up companies and held
senior positions in private equity and investment banking.  Mr.
Ashe holds an MBA from Harvard Business School and a BS from
Georgetown University.

                       About CNET Networks

CNET Networks, Inc. (Nasdaq: CNET) --
http://www.cnetnetworks.com/-- is an interactive media company  
that builds brands for people and the things they are passionate
about, such as gaming, music, entertainment, technology,
business, food, and parenting.  The Company's leading brands
include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet
and TechRepublic. Founded in 1993, CNET Networks has a strong
presence in the US, Asia and Europe including Russia, Germany,
Switzerland, France and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
CNET Networks received a notice from the trustee under the
indenture governing the Company's US$125 million aggregate
principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file
its Form 10-Q with the trustee within fifteen days after it is
required to be filed with the SEC.  

If the default is not cured within 60 days, the bonds may be
accelerated by the holders of 25% outstanding principal amount
or the trustee.  As of June 30, 2006, the Company had
approximately US$143.3 million of cash and investments.


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


AIRBUS SAS: EADS Hikes Airbus Stake to 100% After BAE Stake Buy
---------------------------------------------------------------
The European Aeronautic Defence and Space Company (EADS) N.V.
acquired from BAE Systems its 20 percent stake in Airbus SAS for
EUR2.75 billion.

This value was determined by an independent expert during the
put option process which was launched by BAE Systems in June
2006.  EADS paid in cash from the group's existing resources.  
EADS is therefore now the sole owner of Airbus.

The closing of the deal came a week after Christian Streiff
resigned as Airbus CEO and member of the EADS Executive
Committee.  Louis Gallois has replaced Mr. Streiff, while
keeping his post as co-executive at EADS.

                           BAE Sale

On July 2, Rothschild valued BAE's stake at GBP1.9 billion
(EUR2.75 billion), well below the expectation of BAE, analysts
and even EADS.   A few days after, BAE appointed independent
auditors to study why the value of its share of Airbus had
fallen from the original estimates to the Rothschild valuation.  
On Sept. 6, BAE agreed to sell its stake in Airbus to EADS for
GBP1.87 billion (EUR2.75 billion or US$3.53 billion), pending
BAE shareholder approval.  On Oct. 4, shareholders voted in
favor of the sale.

                        A380 Delays

On June 2, 2006, co-CEO Noel Forgeard and Airbus CEO Gustav
Humbert resigned following the controversy caused by the
company's June 2006 announcement that deliveries of the A380
would be delayed by a further six months.  Mr. Forgeard was also
under pressure due to the fact that he had sold EADS stock weeks
before the A380 announcement, which caused a 26% slump in the
share price.  A French shareholder group filed a class action
lawsuit against EADS in a Dutch court for failing to inform
investors of the financial implications of the A380 delays while
airlines to which deliveries were promised are expected to
demand compensation.

The delays are caused by Airbus's failure to provide uniform
software to aircraft design teams.

On Oct. 3, Airbus informed its A380 customers about a further
delay in the delivery schedule of the A380.  According to the
revised plan, the first A380 will be delivered in October 2007.  
Thirteen more will be delivered in 2008 and 25 in 2009.  The
industrial ramp-up will be completed in 2010, when 45 A380s are
going to be delivered.  The company said the postponement will
cut profit at EADS by EUR4.8 billion (GBP3.2 billion) through to
2010.

                      Profit Expectations

According to Russell Hotten of The Telegraph early this month,
EADS is now predicting a EUR2.8 billion profit shortfall over
four years on top of the EUR2 billion disclosed in June.  It has
also disclosed up to EUR2 billion in annual cost-savings measure
and is taking provisions for penalties to airlines, Mr. Hotten
relates.

Mr. Streiff has previously disclosed job cuts and other
measures, including changes in production that could see
manufacturing moved between Hamburg and Toulouse in an effort to
cut costs.

               Job Cuts in Germany Begin, Source Says

According to Financial Times Deutschland citing an unidentified
source, Airbus has already begun to cut jobs in Germany with
several posts filled by temporary workers terminated or not
extended.  Airbus executives in Germany and workers'
representatives are continuing negotiations, the source tells FT
Deutschland.  Airbus has seven plants in Germany.

Headquartered in Toulouse, France, Airbus S.A.S. --
http://www.airbus.com/en-- is a leading aircraft manufacturer  
in Europe with around 55,000 people employed at sixteen sites in
Germany, France, Spain and the United Kingdom.


ALERIS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Aleris International, Inc., and its Ba3 rating on the company's
US$400 million issue of senior secured term loan.  Moody's also
assigned an LGD3 rating to those loans, suggesting noteholders
will experience a 32% loss in the event of a default.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on Aleris
Deutschland Holding GMBH's loans obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$250 Million
   Gtd. Senior
   Secured Term Loan      Ba3      Ba3     LGD3       34%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures    
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The Company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.  The
Company operates 50 production facilities in North America,
Europe, South America and Asia, and employs approximately 8,600
employees.


AUTO-BECKER GMBH: Creditors Must File Claims by Oct. 27
-------------------------------------------------------
Creditors of Auto-Becker GmbH have until Oct. 27 to register
their claims with court-appointed provisional administrator Jens
Lieser.

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

The meeting of creditors will be held at:

         The District Court of Koblenz
         Hall 111
         Main Law Courts
         Karmeliterstrasse 14
         56068 Koblenz, Germany      
         
The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Dec. 1, while creditors
may constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Koblenz opened bankruptcy proceedings
against Auto-Becker GmbH on Aug. 16.  Consequently, all pending
proceedings against the company have been automatically stayed.

The administrator can be reached at:

         Jens Lieser
         Josef-Goerres-Platz 5
         56068 Koblenz, Germany
         Tel: 0261/304-790
         Fax: 0261/911-4729
         E-mail: info@lieser-rechtsanwaelte.de

The Debtor can be reached at:

         Auto-Becker GmbH
         Arzbacher Strasse 71
         56130 Bad Ems
         Germany

         Karl Dieter Koerting, Manager
         Hochstrasse 4
         56337 Arzbach
         Germany


CHARIS PROJEKTMANAGEMENT: Creditors Must File Claims by Oct. 27
---------------------------------------------------------------
Creditors of CHARIS Projektmanagement GmbH have until Oct. 27 to
register their claims with court-appointed provisional
administrator Rainer U. Mueller.

Creditors and other interested parties are encouraged to attend
the meeting at 10 a.m. on Nov. 16, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Augsburg
         Law Courts
         Meeting Room 162
         Alten Einlass 1
         86150 Augsburg, Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Augsburg opened bankruptcy proceedings
against CHARIS Projektmanagement GmbH on Aug. 23.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The administrator can be reached at:

         Rainer U. Mueller
         Schiessstattenstr. 15
         86159 Augsburg, Germany

The Debtor can be reached at:

         CHARIS Projektmanagement GmbH
         Lerchenauer Str. 147
         80935 Muenchen, Germany

         Johann Straub, Manager
         Hofstattstr. 14
         86919 Utting
         18825 Augsburg, Germany


EGGERATH VERWALTUNGS: Claims Registration Ends Oct. 27
------------------------------------------------------
Creditors of Eggerath Verwaltungs GmbH have until Oct. 27 to
register their claims with court-appointed provisional
administrator Thomas Georg.

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

The meeting of creditors will be held at:

         The District Court of Aachen
         Meeting Room K 5
         3rd Floor
         Alter Posthof 1
         52062 Aachen, Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Aachen opened bankruptcy proceedings
against Eggerath Verwaltungs GmbH on Aug. 29.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The administrator can be reached at:

         Thomas Georg
         Juelicher Strasse 116
         52070 Aachen, Germany

The Debtor can be reached at:

         Eggerath Verwaltungs GmbH
         Attn: Heinz Eggerath and Georg Eggerath, Managers
         Karl-Arnold-Str. 34
         52525 Heinsberg, Germany


GHM GMBH: Creditors Must File Claim by Oct. 21
----------------------------------------------
Creditors of GHM GmbH have until Oct. 21 to register their
claims with court-appointed provisional administrator Werner
Maier.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Nov. 20, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Esslingen
         1. OG
         Hall 1
         Ritterstr. 5
         Esslingen, Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Esslingen opened bankruptcy proceedings
against GHM GmbH on Aug. 23.  Consequently, all pending
proceedings against the company have been automatically stayed.

The administrator can be reached at:

         Werner Maier
         Gansheidestr. 1
         70184 Stuttgart, Germany
         Tel: 0711/16433-0
         Fax: 0711/16433-50

The Debtor can be reached at:

         GHM GmbH
         Attn: Manfred Gienger, Manager
         Mittlere Str. 16
         73265 Dettingen/Teck, Germany


LIBERTY MEDIA: Moody's Affirms Ba2 Corporate Family Rating
----------------------------------------------------------
Moody's affirmed Liberty Media LLC's Ba2 Corporate Family and
senior unsecured ratings following Liberty's establishment of a
new US$1.75 billion credit facility at QVC, Inc., Liberty's
primary operating subsidiary.  However, the rating outlook was
changed to negative from stable.

Outlook Actions:

Issuer: Liberty Media LLC

    * Outlook, Changed To Negative From Stable

The change in the rating outlook to negative reflects Moody's
concern over Liberty's more aggressive financial strategies and
profile, and that QVC may utilize the approximate US$2.3 billion
of combined unused capacity on the new facility and the existing
US$3.5 billion credit agreement signed in March 2006 to upstream
funds to Liberty for share repurchases and acquisitions that
will increase leverage.

Moody's believes there is little evident need for incremental
external financing due to QVC's good cash generation and
Liberty's sizable consolidated cash balance (US$2.7 billion at
June 30, 2006) and that the establishment of the new facility
indicates that leverage could be higher than anticipated at the
time of our May 18 rating action.

Moody's is also concerned that the level of support for the
Liberty Media bonds could decline through expansion in the level
of subsidiary debt that would increase the degree of structural
subordination to assets and cash flow of the operating
subsidiaries, or material changes in the value or risk profile
of cash and marketable securities (such as Liberty's News
Corporation stake) through returning cash to shareholders or
swaps for speculative operating assets.

Liberty Media LLC is a holding company owning interests in a
broad range of electronic retailing, communications, and
entertainment businesses.  The company maintains its
headquarters in Englewood, Colorado.


KINETEK INC: Moody's Junks US$85-Mln Second Lien Term Loan
----------------------------------------------------------
Moody's Investors Service assigned Kinetek, Inc.'s Corporate
Family Rating a B2 following The Resolute Fund L.P.'s agreement
to purchase the company.  Moody's assigned B1 ratings to the
company's US$50 million first lien revolver and US$215 million
term loan B, and a Caa1 rating to its US$85 million second lien
term loan.  Ratings on the company's existing credit facilities
will be withdrawn.

The ratings for the facilities reflect both the overall
probability of default of the company, to which Moody's assigns
a PDR of B2 and a loss given default of LGD3 for the first lien
secured facilities and LGD5 for the second lien term loan.  The
rating outlook has been changed from negative to stable.  The
ratings remain subject to review of the final financing
documentation.

The approximate US$450 million acquisition plus fees and
expenses will be financed with approximately US$216 million of
first lien bank debt, US$85 million second lien debt, and
US$160 million of sponsor equity.  The transaction resolves
questions surrounding Kinetek's pending debt maturities and
ownership.

The B2 Corporate Family Rating reflects Kinetek's high 5.3x
adjusted debt to EBITDA financial leverage, modest 1.8x interest
coverage, and historically weak to negative free cash flow.
Kinetek remains exposed to cyclical demand and competition from
larger and better capitalized companies.  

The B2 rating is supported by Kinetek's leading domestic
position in electrical motors that are used in a range of
applications including elevators, commercial floor care, and
consumer and commercial products.  Kinetek enjoys cost and
technical leadership in the markets it serves which is partially
evidenced by above average operating margins.

The stable outlook reflects Moody's expectation that the
company's financial and operating profile will improve as:

   -- Kinetek benefits from favorable demand dynamics in many
      of its end-markets, and

   -- expected discretionary cash flow is used to reduce debt.  

Factors that could cause Moody's to consider a negative rating
action include:

   -- weak demand, and

   -- substantial dividend or acquisitions that
      increase leverage.

Factors that could cause Moody's to consider a positive rating
action include:

   -- sustained improvement in operating
      performance,

   -- demonstrated commitment to lower financial leverage, and

   -- sustained strong cash flow generation.

The B1 rating of the first lien senior secured credit facilities
reflects an LGD3 loss given default assessment as this facility
is secured by a pledge of substantially all of the company's
assets and benefits from the support of the junior debt and of
the contributed equity.  

The Caa1 rating of the second-lien secured term loan reflects an
LGD5 loss given default assessment that reflects its contractual
subordination to all of Kinetek's first lien secured creditors.

Ratings/assessments assigned:

    * Corporate family rating B2;

    * Probability-of-default rating B2;

    * US$50 million first priority senior secured revolver
      due 2012 at B1 (LGD3, 35%);

    * US$215 million first priority senior secured term loan
      due 2013 at B1 (LGD3, 35%); and

    * US$85 million senior second lien secured term loan
      due 2014 at Caa1 (LGD5, 83%).

Kinetek, Inc., based in Deerfield, Illinois, is a manufacturer
of specialty purpose electric motors, gear motors, gearboxes,
gears and electronic motion controls for a wide variety of
consumer, commercial, and industrial markets.  Revenues for the
twelve-month period ended June 30, 2006 were approximately
US$353 million.


KINETEK INC: S&P Keeps Ratings on Developing Watch
--------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Kinetek Inc. and related entities, including its 'B-' corporate
credit rating, remain on CreditWatch with developing
implications where they were placed on Sept. 13.  This follows
the announcement that private equity fund The Resolute Fund will
acquire the company from current owner Jordan Industries Inc.
Proceeds of the transaction are expected to be sufficient to
refinance substantially all of Kinetek's indebtedness, including
the company's US$270 million senior unsecured notes due
Nov. 15.
     
The transaction is expected to close in the first week of
November 2006.  If it is completed successfully, Standard &
Poor's expects to resolve the CreditWatch listing and to raise
the corporate credit rating to 'B' from 'B-'.  The outlook would
be stable.  Conversely, if the transaction is delayed or failed,
or if the company defaults on its revolving credit facility,
which matures prior to the expected close of the transaction,
the rating could be lowered.
     
At the same time, Standard & Poor's assigned its 'B' bank loan
rating and a recovery rating of '2' to Kinetek's proposed
US$265 million first-lien credit facilities, indicating our
expectation for a substantial recovery of principal by first-
lien lenders (80%-100%) in the event of a default.

In addition, Standard & Poor's assigned its 'CCC+' bank loan and
a recovery rating of '5' to the proposed US$85 million second-
lien term loan, indicating our expectation of negligible
recovery of principal by second-lien lenders (0%-25%) in the
event of a default.  When the CreditWatch is resolved, the
ratings that are assigned today will be affirmed.

"Subject to successful completion of the acquisition, the
pending higher ratings will reflect Kinetek's improved liquidity
as the significant refinancing risk, which had been a major
rating factor in the recent past, will be removed," said
Standard & Poor's credit analyst Gregoire Buet.


GREENBIER COMPANIES: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the transportation sector, the rating agency
confirmed its Ba3 Corporate Family Rating for The Greenbier
Companies Inc.  Additionally, Moody's confirmed its probability-
of-default ratings and assigned new loss-given-default ratings
on these bond issues:

                                                   Projected
                                 POD      LGD      Loss-Given
   Debt Issue                    Rating   Rating   Default
   ----------                    -------  ------   ----------
   8.375% Sr. Uns. Notes
   due 2015                      B1       LGD4     64%

   2.375%, Convertible
   Sr. Nts
   due 2026                      B1       LGD4     64%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Lake Oswego, Oregon, The Greenbrier Companies
(NYSE:GBX) -- http://www.gbrx.com/-- is an international  
leading supplier of transportation equipment and services to the
railroad industry.  The Company builds, leases, repairs and
refurbishes freight railcars for a variety of customers in North
America.  It also manufactures and refurbishes freight wagons in
the European market.  Greenbrier Europe, a subsidiary of The
Greenbrier Companies, consists of a manufacturing facility,
WagonySwidnica S.A., located in Swidnica Poland, a sales support
facility, Greenbrier Germany GmbH, located in Siegen, Germany
and a marketing office located in London, England.  Greenbrier
owns a lease fleet of approximately 9,000 railcars, and performs
management services for approximately 135,000 railcars.  The
Company also is a leading supplier of ocean-going barges for the
American maritime industry.


PRAXIS FUER: Claims Registration Ends Oct. 26
---------------------------------------------
Creditors of Praxis fuer Ergo- und Physiotherapie im Kurbad
Kamen GmbH & Co.KG have until Oct. 26 to register their claims
with court-appointed provisional administrator Achim Thomas
Thiele.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Nov. 16, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Dortmund opened bankruptcy proceedings
against Praxis fuer Ergo- und Physiotherapie im Kurbad Kamen
GmbH & Co.KG on Aug. 24.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Praxis fuer Ergo- und Physiotherapie im
         Kurbad Kamen GmbH & Co.KG
         Schaferstr. 38
         59174 Kamen, Germany

         Paul Uebel, Manager
         Gerichtsstr. 9
         44135 Dortmund, Germany

The administrator can be reached at:

         Achim Thomas Thiele
         Bronnerstrasse 7
         44141 Dortmund, Germany


SYSTEMPARTNER COMPUTERVERTRIEBS: Claims Filing Ends Oct. 27
-----------------------------------------------------------
Creditors of Systempartner Computervertriebs GmbH have until
Oct. 27 to register their claims with court-appointed
provisional administrator Ralph Schmid.

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

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Room 13 B
         Gerichtsstr. 2-6
         48149 Muenster, Germany      
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Muenster opened bankruptcy proceedings
against Systempartner Computervertriebs GmbH on Aug. 25.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Ralph Schmid
         Duelmener Str. 92
         48653 Coesfeld, Germany

The Debtor can be reached at:

         Systempartner Computervertriebs GmbH
         Bahnhofstrasse 86
         48683 Ahaus, Germany

         Andre Klaus Eberlein, Manager
         Alexanderstrasse 17
         48599 Gronau, Germany


WINDPARK WOEHRDEN: Creditors Must File Claims by Oct. 21
--------------------------------------------------------
Creditors of Windpark Woehrden West Verwaltungsgesellschaft mbH
have until Oct. 21 to register their claims with court-appointed
provisional administrator Berthold Brinkmann.

Creditors and other interested parties are encouraged to attend
the meeting at 3:30 p.m. on Dec. 5, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Husum
         Saal 220
         Theodor-Storm-Road 5
         Husum, Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Husum opened bankruptcy proceedings
against Windpark Woehrden West Verwaltungsgesellschaft mbH on
Aug. 22.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Windpark Woehrden West Verwaltungsgesellschaft mbH
         2513 Suedermarsch, Germany

The administrator can be reached at:

         Berthold Brinkmann
         Sechslingspforte 2
         22087 Hamburg, Germany

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


LEVEL 3: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Telecommunications sector,
the rating agency confirmed its Caa1 Corporate Family Rating for
Level 3 Communications Inc.  Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default
ratings on these bonds:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. 3.5% Convert
   Notes Due 2012       Caa3     Caa2     LGD4     67%

   Sr. 11.0%
   Notes Due 2008       Caa3     Caa2     LGD4     67%

   Sr. 10.75% Euro
   Notes Due 2008       Caa3     Caa2     LGD4     67%

   6.0% Convert Sub
   Notes Due 2009       Ca       Caa3     LGD6     94%

   Sr. 2.875% Convert
   Notes Due 2010       Caa3     Caa2     LGD4     67%

   Sr. 11.5% Notes
   Due 2010             Caa3     Caa2     LGD4     67%

   Sr. 12.875% Discount
   Notes Due 2010       Caa3     Caa2     LGD4     67%

   Sr. 11.25% Euro
   Notes Due 2010       Caa3     Caa2     LGD4     67%

   Sr. 11.25% Notes
   Due 2010             Caa3     Caa2     LGD4     67%

   6.0% Convert Sub
   Notes Due 2010       Ca       Caa3     LGD6     94%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc. -- http://www.level3.com/-- is engaged in the  
communications and information services businesses.  Level 3 is
a facilities-based provider of a range of integrated
communications services.  The Company's network encompassed an
intercity network covering approximately 48,000 miles in North
America; an intercity network covering approximately 3,600 miles
across Europe; leased or owned local networks in approximately
20 European markets; approximately 6.7 million square feet of
Gateway and transmission facilities in North America and Europe.  
In Europe, Level 3 maintains operations in the United Kingdom,
France, Germany, Ireland, France and Switzerland.


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


GAMESTOP CORP: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for GameStop
Corporation.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$300 million
   Sr. Floating
   Rate Notes           Ba3      B1       LGD4     60%

   US$650 million
   12% Sr. Notes        Ba3      B1       LGD4     60%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers,
not specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Grapevine, Texas, GameStop Corporation is a
video game and PC entertainment software specialty retailer.  
After the merger with Electronics Boutique it will operate
approximately 3,979 stores in the U.S., Puerto Rico, Ireland,
Australia, Canada, Denmark, Germany, Guam, Italy, New Zealand,
Norway, and Sweden.


KINETEK INC: Moody's Junks US$85-Mln Second Lien Term Loan
----------------------------------------------------------
Moody's Investors Service assigned Kinetek, Inc.'s Corporate
Family Rating a B2 following The Resolute Fund L.P.'s agreement
to purchase the company.  Moody's assigned B1 ratings to the
company's US$50 million first lien revolver and US$215 million
term loan B, and a Caa1 rating to its US$85 million second lien
term loan.  Ratings on the company's existing credit facilities
will be withdrawn.

The ratings for the facilities reflect both the overall
probability of default of the company, to which Moody's assigns
a PDR of B2 and a loss given default of LGD3 for the first lien
secured facilities and LGD5 for the second lien term loan.  The
rating outlook has been changed from negative to stable.  The
ratings remain subject to review of the final financing
documentation.

The approximate US$450 million acquisition plus fees and
expenses will be financed with approximately US$216 million of
first lien bank debt, US$85 million second lien debt, and
US$160 million of sponsor equity.  The transaction resolves
questions surrounding Kinetek's pending debt maturities and
ownership.

The B2 Corporate Family Rating reflects Kinetek's high 5.3x
adjusted debt to EBITDA financial leverage, modest 1.8x interest
coverage, and historically weak to negative free cash flow.
Kinetek remains exposed to cyclical demand and competition from
larger and better capitalized companies.  

The B2 rating is supported by Kinetek's leading domestic
position in electrical motors that are used in a range of
applications including elevators, commercial floor care, and
consumer and commercial products.  Kinetek enjoys cost and
technical leadership in the markets it serves which is partially
evidenced by above average operating margins.

The stable outlook reflects Moody's expectation that the
company's financial and operating profile will improve as:

   -- Kinetek benefits from favorable demand dynamics in many
      of its end-markets, and

   -- expected discretionary cash flow is used to reduce debt.  

Factors that could cause Moody's to consider a negative rating
action include:

   -- weak demand, and

   -- substantial dividend or acquisitions that
      increase leverage.

Factors that could cause Moody's to consider a positive rating
action include:

   -- sustained improvement in operating
      performance,

   -- demonstrated commitment to lower financial leverage, and

   -- sustained strong cash flow generation.

The B1 rating of the first lien senior secured credit facilities
reflects an LGD3 loss given default assessment as this facility
is secured by a pledge of substantially all of the company's
assets and benefits from the support of the junior debt and of
the contributed equity.  

The Caa1 rating of the second-lien secured term loan reflects an
LGD5 loss given default assessment that reflects its contractual
subordination to all of Kinetek's first lien secured creditors.

Ratings/assessments assigned:

    * corporate family rating B2;

    * probability-of-default rating B2;

    * US$50 million first priority senior secured revolver
      due 2012 at B1 (LGD3, 35%);

    * US$215 million first priority senior secured term loan
      due 2013 at B1 (LGD3, 35%); and

    * US$85 million senior second lien secured term loan
      due 2014 at Caa1 (LGD5, 83%).

Kinetek, Inc., based in Deerfield, Illinois, is a manufacturer
of specialty purpose electric motors, gearmotors, gearboxes,
gears and electronic motion controls for a wide variety of
consumer, commercial, and industrial markets.  Revenues for the
twelve-month period ended June 30, 2006 were approximately
US$353 million.


KINETEK INC: S&P Holds Ratings on Developing Watch
--------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Kinetek Inc. and related entities, including its 'B-' corporate
credit rating, remain on CreditWatch with developing
implications where they were placed on Sept. 13.  This follows
the announcement that private equity fund The Resolute Fund will
acquire the company from current owner Jordan Industries Inc.
Proceeds of the transaction are expected to be sufficient to
refinance substantially all of Kinetek's indebtedness, including
the company's US$270 million senior unsecured notes due
Nov. 15.
     
The transaction is expected to close in the first week of
November 2006.  If it is completed successfully, Standard &
Poor's expects to resolve the CreditWatch listing and to raise
the corporate credit rating to 'B' from 'B-'.  The outlook would
be stable.  Conversely, if the transaction is delayed or failed,
or if the company defaults on its revolving credit facility,
which matures prior to the expected close of the transaction,
the rating could be lowered.
     
At the same time, Standard & Poor's assigned its 'B' bank loan
rating and a recovery rating of '2' to Kinetek's proposed
US$265 million first-lien credit facilities, indicating our
expectation for a substantial recovery of principal by first-
lien lenders (80%-100%) in the event of a default.

In addition, Standard & Poor's assigned its 'CCC+' bank loan and
a recovery rating of '5' to the proposed US$85 million second-
lien term loan, indicating our expectation of negligible
recovery of principal by second-lien lenders (0%-25%) in the
event of a default.  When the CreditWatch is resolved, the
ratings that are assigned today will be affirmed.

"Subject to successful completion of the acquisition, the
pending higher ratings will reflect Kinetek's improved liquidity
as the significant refinancing risk, which had been a major
rating factor in the recent past, will be removed," said
Standard & Poor's credit analyst Gregoire Buet.


POPOLARE ITALIANA: Consents to Popolare Verona's EUR8.2-Bln Bid
---------------------------------------------------------------
The Board of Directors of Banca Popolare Italiana accepted
Sunday a EUR8.2-billion takeover offer from larger rival Banca
Popolare di Verona e Novara.

On a 14-2 vote, BPI's board approved an agreement, which calls
for the merger between the bank and BPVN to form a holding
company that will launch a share swap to stakeholders of the
groups:

   -- 0.43 share for every BPI share, and
   -- a share for every BPVN share.

Aside from the share swap, BPI would distribute an extraordinary
dividend of EUR2 per share, for a total cash of EUR1.5 billion,
to existing shareholders.  

The share-and-cash offer values BPI at EUR12 per share, based on
BPVN's share price of EUR22.81 on Oct. 13.  BPI shareholders
have yet to confirmed with due diligence the agreement.

According to BPI, the merger will generate annual pretax
synergies of EUR500 million starting 2010, but costs will reach
an overall EUR300 million before tax.  The merged group, BPI
added, will have a market capitalization of EUR15.5 billion,
2,183 branches and more than 2.4 million clients.

The merged group, the Financial Times reports, will remain as a
cooperative bank, and has to prove that it could maintain
"standards of governance" equal to those of Italy's largest
private-sector banks.  Analysts expect that Fabio Innocenzi,
BPVN's chief executive, will head the merged group.

BPI had been looking for a merger partner to prop up its
weakening financial position, which was severely affected by the
failed takeover of Banca Antonveneta.  

The Bank of Italy, headed by new governor Mario Draghi, had been
pressuring BPI to strike a merger deal.  Mr. Draghi has favored
local mergers than foreign takeovers.

                 About Banco Popolare di Verona

Headquartered in Verona, Italy, Banco Popolare di Verona e
Novara (BPVN) -- http://www.bpv.it/-- offers private banking,  
investment banking and asset management services, as well as
other services in the tax and real estate sectors.  The
Company's banking network comprises over 1,170 branches, which
are spread throughout the Italian regions of the Veneto, Emilia-
Romagna, Piedmont and Lombardy, and internationally in London,
Luxembourg, Hong Kong and Shanghai.

                  About Banca Popolare Italiana

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and     
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.   
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                        *     *     *

As reported in TCR-Europe on April 3, Fitch Ratings downgraded
Banca Popolare Italiana's Issuer Default and Short-term ratings
to BBB from BBB+ and F3 from F2 respectively.  Its Individual
and Support rating are affirmed at C and 3 respectively.  Its
senior debt and trust preferred stock are also downgraded to BBB
and BB+ respectively from BBB+ and BBB-. The Issuer Default,
Short-term and Individual ratings are removed from Rating Watch
Negative.  A Stable Outlook is assigned for the Issuer Default
rating.


SBARRO INC: Moody's Assigns Loss-Given Default Rating
-----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its B3 Corporate Family Rating for Sbarro Inc.
and its Caa1 rating on the company's US$255 million Guaranteed
11% senior unsecured notes due Sept. 2009.  Additionally,
Moody's assigned and LGD4 rating to those bonds, suggesting
noteholders will experience a 53% loss in the event of a
default.        

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Sbarro Inc. -- http://www.sbarro.com/-- operates quick service  
Italian restaurants in close to 1,000 locations across 30
countries including the United Kingdom, Belgium, Cyprus, Greece,
Italy, The Netherlands, Poland, and Russia.


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


ALGA KOZGALYS: Creditors Must File Claims by Nov. 8
---------------------------------------------------
LLP Alga Kozgalys declared insolvency.  Creditors have until
Nov. 8 to submit written proofs of claim to:

         LLP Alga Kozgalys
         Micro District 11a, 7-10
         Karaganda
         Karaganda Region
         Kazakhstan


ALMATY-AITUR: Creditors Must File Claims by Nov. 10
---------------------------------------------------
LLP Almaty-Aitur declared insolvency.  Creditors have until
Nov. 10 to submit written proofs of claim to:

         LLP Almaty-Aitur
         Mukanov Street
         Corner of Kabanbai baatyr Str. 233/149, 92
         Almaty, Kazakhstan


ARMAN: Proof of Claim Deadline Slated for Nov. 8
------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region entered an order placing LLP Arman into compulsory
liquidation.

Creditors have until Nov. 8 to submit written proofs of claim
to:

         LLP Arman
         Jambyl Str. 9
         Karaganda
         Karaganda Region
         Kazakhstan


ASTANA-ENERGOLINE: Proof of Claim Deadline Slated for Nov. 10
-------------------------------------------------------------
LLP Astana-Energoline declared insolvency.  Creditors have until
Nov. 10 to submit written proofs of claim to:

         LLP Astana-Energoline
         Korchagin Str. 100-99
         Rudnyi
         Kostanai Region
         Kazakhstan


AVTOTORGSERVICE: Kostanai Court Opens Bankruptcy Proceedings
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
commenced bankruptcy proceedings against LLP Auto Trade Service
Avtotorgservice on Aug. 31.

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

         Baitursynov Str. 70
         Kostanai
         Kostanai Region
         Kazakhstan
         Tel: 8 (3142) 543022


ETM: Kostanai Court Begins Bankruptcy Proceedings
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
commenced bankruptcy proceedings against LLP Company ETM on
Sept. 7.

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

         Baitursynov Str. 70
         Kostanai
         Kostanai Region
         Kazakhstan
         Tel: 8 (3142) 543022


HIMSERVICE-SK: Court Starts Bankruptcy Procedure
------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region commenced bankruptcy proceedings against
LLP Chemical Service-SK Himservice-SK on Aug. 28.


KAZAKHGOLD GROUP: Gold Production Up 27% in Third Quarter 2006
--------------------------------------------------------------
KazakhGold Group Limited disclosed a production update for the
quarter ended Sept. 30, 2006.

Gold production from Aksu, Bestobe and Zholymbet, the Group's
three operating mines in northern Kazakhstan, totaled 78,361
ounces during the third quarter.  This equates to an increase of
27% over the 61,530 ounces produced in the second quarter and
brings total gold produced in the nine months to September 30,
2006 to 173,521 ounces.

Gold sales in the third quarter of 2006 were 97,318 ounces at an
average sales price of US$556/oz compared to US$507/oz achieved
in the first half of the year.  Gold sales for the nine months
to end-September totaled162,105 ounces.

Inventory at September 30, 2006, has been reduced to 29,864
ounces from 48,821 ounces at June 30, 2006, and the company
intends to reduce this further by year-end.

Headquartered in Stepnogorsk, Kazakhstan, KazakhGold Group --
http://www.kazakhgold.com/-- is one of the leading gold mining  
companies in Kazakhstan whose business dates back to 1929.  The
Group's core assets are the Aksu, Bestobe and Zholymbet mines
located in Northern Kazakhstan, in close proximity to the
country's capital city Astana.  Since its London listing on last
year, the company has acquired several new deposits in Eastern
Kazakhstan, which are subject to the joint venture with Barrick
Gold.  The company employs 3,200 workers.


KAZAKHGOLD GROUP: Fitch Rates Planned US$150-Mln Bond Issue at B
----------------------------------------------------------------
Fitch Ratings has assigned KazakhGold Group Limited a foreign
currency Issuer Default rating of 'B' with Stable Outlook.  At
the same time, Fitch has assigned KazakhGold's proposed US$150
million senior bond issue an expected rating of 'B'.  The final
rating for the bond issue is contingent on receipt of final
documentation in line with information already received by the
agency.

KazakhGold is a Kazakhstan-based gold producer, which is
undertaking a major expansion and modernization program at the
company's three operating gold mines.  The capital expenditure
is being funded by proceeds from the company's IPO on the London
Stock Exchange (late 2005) and the proposed bond issue.  The
expansion is planned to result in a substantial increase in gold
production to over 500,000 ounces over the next two to three
years, from less than 100,000 oz per annum in 2005.

The ratings reflect KazakhGold's extensive gold reserve base,
which is expected to support long mine lives (in excess of 15
years) at expanded levels of production.  The ratings also
reflect its projected low production costs, which are expected
to be close to the lowest quartile by world standards.  They
take into account KazakhGold's modest operating diversity, with
production sourced from three mines -- each having both
underground and open pit reserves with well established
infrastructure.  The company should also benefit from the recent
relatively strong gold prices of over US$500/oz, although these
prices may not be sustainable over the longer term and Fitch has
therefore based its analysis on longer-term gold price
assumption of US$425/oz.

On the other hand, KazakhGold has a single commodity focus, is
fully exposed to gold price volatility and has a very limited
relevant financial track record.  Operational and financial
results to date provide little indication as to how the company
is expected to perform following its expansion program, while
the full benefit (in terms of increased gold production, cash
flow and earnings) is expected to be progressively realized only
in future years.  As such, Fitch's financial analysis has been
focused on forward-looking cash flow projections, which carry an
inherent degree of uncertainty.

Fitch's base case cash flow projections show relatively robust
cash flow and coverage ratios and ability to repay the proposed
bond by its maturity date, although this ability could be
adversely affected by a variety of factors.  A major risk
involves the company's ability to execute the expansion program
in line with projected capital costs as well as meeting expanded
gold production levels at projected operating costs.  While
Fitch has factored in some downside to these key drivers into
its base case assumptions, a material deterioration in these
could place downward pressure on the ratings.  Conversely, the
ratings are constrained at existing levels until KazakhGold is
able to demonstrate a sustained period of operational and
financial performance at expanded levels of gold production.

Other risks include some uncertainty involving the conversion of
reserves from former Soviet Union standards to western (JORC)
standards.  Following discussions with an independent technical
consultant, Fitch, however, does not expect to see a material
reduction in reported reserves upon adopting the western
standard.  The agency also notes other traditional risks
associated with mining and metals processing projects - both
underground and open pit.


REGALIA+: Claims Registration Ends Nov. 10
------------------------------------------
LLP Regalia+ has declared insolvency.  Creditors have until
Nov. 10 to submit written proofs of claim to:

         LLP Regalia+
         Malahov Str. 5-3
         Almaty, Kazakhstan


TARLAN: West Kazakhstan Court Commences Bankruptcy Proceedings
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
Region commenced bankruptcy proceedings against LLP Tarlan on
Aug. 25.


==================
K Y R G Y ZS T A N
==================


ALIAS TOUR: Proof of Claim Deadline Slated for Nov. 24
------------------------------------------------------
LLC Alias Tour has declared insolvency.  Creditors have until
Nov. 24 to submit written proofs of claim to:

         Belinskyi Str. 61-110
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 29-20-22


ALIANCE GAS: Creditors Must File Claims by Nov. 24
---------------------------------------------------
LLC Aliance Gas has declared insolvency.  Creditors have until
Nov. 24 to submit written proofs of claim to:

         LLC Aliance Gas
         Jurnalnaya Str. 7
         Bishkek, Kyrgyzstan


=================
L I T H U A N I A
=================


MAZEIKIU NAFTA: Pegs Refinery Fire Damages at US$47.5 Million
-------------------------------------------------------------
AB Mazeikiu Nafta estimated damages caused by a fire at the
Lithuanian oil refinery on Thursday to be between US$22.5
million and US$47.5 million (LTL62 million and LTL131 million).  
The company's 2006 net profit is forecasted to be reduced due to
the incident by US$38 million (LTL105 million).

According to preliminary data, a leak developed at 2:32 p.m. on
Oct. 12 that led to depressurization of the Vacuum Distillation
column of the Vacuum Unit followed by hot bottom product release
into the atmosphere.  Due to the contact with atmosphere, the
self-ignition of the bottom product occurred.  Because of the
flame impact on the supporting structure of the vacuum column,
the latter started leaning and fell on the heat exchangers
block.  Additional petroleum products released and further
fueled the fire.

The company's management has developed an action plan which
organizes company operations to ensure petroleum product
supplies to the Baltic markets (i.e. Lithuania, Latvia, and
Estonia) with minimum impacts.

The company has continued its crude oil refining.  The past
incident capacity of Mazeikiu Nafta refinery is 15,000 tons per
day excluding the Vacuum unit.

Following the immediate incident, refinery operations will
transition through two or more stages of recovery before
returning to normal and optimal operations.  The company
estimates that it will take from six to nine months until
refinery can return to pre-fire daily throughput of 27,400 tons
a day.

                           Insurance

Mazeikiu Nafta said it has property and business interruption
losses insured in the international insurance market via the
broker AON Limited, London.  The biggest insurance risk part
(46.2%) is shared among three companies:

   -- Liberty International Underwriters (London, UK),
   -- AIG Europe (UK) Limited, and
   -- SCOR UK Company Limited.

Property is insured under reinstatement value.  AB Mazeikiu
Nafta liability insurance is secured in the international
insurance market as well.

                         Investigation

The Company is currently involved in a thorough investigation of
the incident supported by industry experts and including the
involvement of state institutions.  Upon completion of the
investigation and more detailed assessment of the damage an
adjusted estimate of greater accuracy will be developed and
hopefully the true cause of the incident will be identified and
understood with the ultimate goal of prevention of recurrence.

Poland's largest oil refiner PKN ORLEN S.A. is on its way to
completing the acquisition of Mazeikiu Nafta from Yukos
International UK B.V. for US$1.49 billion under a share sale and
purchase agreement dated May 26, 2006.  PKN has also agreed to
purchase a 30.66% stake in Mazeikiu from the Lithuanian
government for US$852 million.

The company is awaiting regulatory approval from the
Antimonopoly Committee of Ukraine and the appropriate antitrust
authorities in the United States before the deal's expected
completion early next year.  PKN does not expect that the
requirement to obtain additional consents in Ukraine and the US
will delay the closing of the transaction or increase the risks
for the successful closing.

The European Commission will consider the approval of the deal
next month.

                        PKN Orlen Statement

In a teleconference with capital market analysts Friday, PKN
ORLEN President of the Board Igor Chalupec announced a delay in
the signing of the financing program in support of the
acquisition of Mazeikiu Nafta.  This delay is caused by the need
to analyze the emergent situation in the Lithuanian refinery.

PKN ORLEN president of the Board Igor Chalupec also spoke on the
telephone with Lithuanian Prime Minister Gedyminas Kirkilas, who
visited the refinery in Mazeikiu.  Prime Minister Kirkilas
informed President Chalupec of the activities undertaken by the
Lithuanian side, including the appointment of a special
government committee to investigate the causes of the incident.  
President Chalupec assured Prime Minister Kirkilas of PKN
ORLEN's intention to complete the transaction and provide
assistance to resolve the emergent problems.  President Chalupec
also indicated that PKN ORLEN will analyze in detail the impact
of this incident on the operational and financial status of the
Mazeikiu Nafta refinery.

PKN ORLEN has declared its will to cooperate in removing the
consequences of Thursday's incident as quickly as possible.

                       About PKN Orlen

Headquartered in Poland, PKN Orlen operates three refineries
located in Plock, Trzebinia and Jedlicze.  It processes mainly
URAL blend crude oil, shipped from Russia via the Friendship
pipeline.  Alternative supplies of crude oil to Plock may be
sourced via the Pomerania pipeline, which connects the fuel
reloading facility on the Baltic Sea with the Plock refinery.
PKN ORLEN's retail network in Poland is made of 1,326 company
owned stations, 504 affiliated stations and 87 franchised
stations.

                         About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On July 25, Yukos creditors voted to liquidate the oil firm
after rejecting a management rescue plan, which valued the
company's assets at about US$30 billion.  This would have
permitted Yukos to continue its operations and attempt to pay
off US$18 billion in debts through asset sales.

The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate Yukos Oil and declared what was
once Russia's biggest oil firm bankrupt on Aug. 1.  The expected
court ruling paves the way for the company's liquidation and
auction.

Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta
-- http://nafta.it/en-- is an integrated downstream oil company   
that comprises in one complex pipeline operations, oil refining,
marine terminal operations, and logistics of crude oil and
refined products.


MAZEIKIU NAFTA: Fitch Keeps B+ Rating After Refinery Fire
---------------------------------------------------------
Fitch Ratings is keeping Lithuanian oil refining company
Mazeikiu Nafta AB's Issuer Default rating of 'B+' on Rating
Watch Positive despite Friday's fire at its Mazeikiai refinery.  
MN's Short-term rating is affirmed at 'B'.

The RWP reflects MN's pending ownership change as a result of
Polish oil refining and marketing company Polski Koncern Naftowy
ORLEN S.A.'s (rated 'BBB', Rating Watch Negative) planned
acquisition of the Lithuanian company.

In Fitch's view the recent fire at MN's Mazeikiai refinery,
while unfortunate, does not presently warrant a rating action as
it expects the company to substantially cover reconstruction
costs and business disruption losses via insurance claims.  
Medium-to-long-term reconstruction will now likely be
incorporated into PKN's capital expenditure plans for MN,
further supporting the maintenance of RWP.

The fire has, however, caused significant damage to the
refinery, including one of the vacuum pipe tower distillation
columns.  As a result, the company's only refinery is likely to
operate well below its full capacity (at around 50% of capacity)
for several months until the damaged installations are rebuilt.  
While the cost of reconstruction is expected to be covered by
MN's property insurance, the company's profitability will
deteriorate in the coming months due to decreased throughput.  
Business interruption insurance in place will cover only a part
of lost profits due to standard deductibles.  The company will
most likely have to declare "force majeure" and suspend a
significant part of its refined products exports due to lower
fuel production resulting from the fire.  Fitch will continue to
monitor developments closely.

The fire is the second significant unexpected incident at MN
(after suspended pipeline deliveries to MN from Russia) since
existing controlling shareholder, Yukos International UK B.V.,
agreed to sell its 53.7% stake in the company to PKN for
US$1.492 billion in May 2006.  PKN has also agreed to purchase a
30.66% stake in MN from the Lithuanian government for US$852
million.  The acquisition has yet to be approved by the EU but
is expected to close by first quarter of 2007, upon which the
RWP will be resolved.


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


EVRAZ GROUP: Earns US$571 Million for First Half 2006
-----------------------------------------------------
Evraz Group S.A. released its unaudited interim results for the
six months ended June 30, 2006, with both revenues and cash flow
increasing to record levels.

Highlights:

   -- 2006 first half revenue was a record US$3.825 billion, up
      5% from the corresponding period in 2005

   -- consolidated steel sales increased by 23% to 8.3 million
      tons from 6.75 million tons in the first half of 2005

   -- Russian construction products sales volumes grew 23%

   -- volumes of semi-finished steel products increased 21% due
      to growing slab production

   -- higher value-added sales into attractive European and USA
      markets increased fivefold

   -- adjusted EBITDA remains largely unchanged year-on-year at
      US$1,096 million

   -- net profit reduced marginally to US$571 million from
      US$612 million in 2005

   -- further US$262 million investment in cost efficiency
      program

   -- further expansion of mining segment with an additional
      US$225 million equity investment in OAO Raspadskaya

"Evraz achieved satisfactory results during the first six months
of 2006 especially when compared with the exceptional
performance supported by high steel prices in the first half of
2005," Valery Khoroshkovsky, Evraz Group's CEO, commented.

"Contributing to our record high revenues in the first half of
2006 was significant sales volume increase from the successful
business integration of the European steel mills acquisitions
coupled with strong organic growth in Russia delivered from the
group's capital investment program.

"Additionally, steel prices have shown good recovery starting
from March 2006 from the lower levels seen in the second half of
2005 and the first quarter of 2006.  Evraz has continued to
reduce its steel costs by increasing operational efficiency and
achieving a higher level of production as a result of our
capital investment program."

"In the second half of 2006, Evraz will continue to enhance its
position as one of the most cost-effective and profitable
integrated steel producing and mining groups in Russia and CIS
while expanding and strengthening its presence in non-Russian
markets," Mr. Khoroshkovsky added.  "Evraz will continue to
focus on cost management and ongoing efficiency improvements to
enhance our competitiveness in the global steel market.

"Evraz intends to deliver further benefits from the integration
of the recent acquisitions, facilitating a gradual shift in
product mix towards higher margin products.

"Our volumes are expected to remain strong for the rest of the
year with the rolled products output increasing 22% year-on-year
to 10.8 million tons in the first nine months of 2006. We expect
the price recovery, which started in the second quarter of 2006
to continue on the back of growing demand.

"The acquisition of Strategic Minerals Corporation in August
will contribute both to the group's revenue and profit growth
and our equity investment in Highveld Steel and Vanadium
Corporation will further support our earnings."

               lidated Group Financial Position

Cash flow from operating activities increased by 24.3% year-on-
year to US$904 million from US$727 million.  The increase in net
cash generated by operations was primarily due to a substantial
decrease in net working capital requirement.

Cash used in investing activities was US$1.036 million in the
first half of 2006 vs. US$657 million in the first half of 2005.  
This includes short-term deposits in the amount of US$264
million, the first payment of US$10 million for the acquisition
of Stratcor as well as US$275 million paid as the last
instalment for the shares of Yuzhkuzbassugol purchased in
December 2005.

In the first half of 2006 capital expenditure amounted to US$262
million compared with US$280 million in the first half of 2005.

Net debt increased when compared with June 30, 2005 by US$1.384
billion to US$2.120 billion as of June 30, 2006.  

Evraz has sufficient liquidity to support its current operations
and meet its current debt obligations.  Evraz estimated
liquidity (defined as cash and cash equivalents, amounts
available under unrestricted credit facilities and short-term
bank deposits) amounted to US$1.513 billion as of June 30, 2006
compared with US$1,373 million as of Dec. 31, 2005.  The cash
balance, including US$287 million in short-term deposits, grew
by 20% to US$769million.

As of June 30, 2006, total assets amounted to US$7.317 billion
reflecting an increase of 9.8% to US$6.663 billion as of Dec.
31, 2005.

Parent shareholders' equity, including reserves and accumulated
profits as at June 30, 2006, increased 24.6% to US$3.373 billion
from US$2.707 billion as at Dec. 31, 2005.

                           About Evraz

Headquartered in Luxembourg, Evraz Group S.A. --
http://www.evraz.com/-- manufactures and distributes steel and  
related products. In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in Sverdlovsk
region and two mills in Kemerovo region.  

                        *     *     *

As reported by TCR-Europe on Oct. 11, Fitch Ratings upgraded
Luxembourg-registered Evraz Group S.A.'s Issuer Default and
senior unsecured ratings to BB from BB-.  The agency also
upgraded Cyprus-registered subsidiary Mastercroft Limited's
Issuer Default rating and Evraz Securities S.A.'s senior
unsecured notes to BB from BB-.  

Mastercroft's and Evraz's Short-term B ratings are affirmed.  
The Outlooks for both IDRs remain Stable.  Evraz Securities is a
100%-owned subsidiary of Mastercroft.

Evraz Group's 8-1/4% notes due November 2015 has been given by
Moody's Investors Service's (P)B2 rating, Standard & Poor's B+
rating and Fitch's BB- rating.


EVRAZ GROUP: Wins License for Sobstvenno-Kachkanarskoye Field
-------------------------------------------------------------
Evraz Group S.A. reveals that its subsidiary, Kachkanarsky Ore
Mining and Processing Enterprise Vanady, has been proclaimed the
winner in an auction to buy a license to develop the Sobstvenno-
Kachkanarskoye magnetite and titanium deposit in Central Ural.

KGOK offered RUR220.5 million (approximately US$8.2 million) for
the license at the auction.

The Sobstvenno-Kachkanarskoye deposit is located in the
Sverdlovsk Region next to the Gusevogorskoye ore deposit and has
reserves of 3.3 billion tons of ore with estimated iron content
of 16%.  The license for developing the deposit is valid for a
period of 25 years.

At present KGOK processes iron ore from the Gusevogorskoye ore
deposit.  In 2005 KGOK mined around 46 million tons of ore and
produced 8.6 million tons of concentrate.

                           About Evraz

Headquartered in Luxembourg, Evraz Group S.A. --
http://www.evraz.com/-- manufactures and distributes steel and  
related products. In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in Sverdlovsk
region and two mills in Kemerovo region.  

                        *     *     *

As reported by TCR-Europe on Oct. 11, Fitch Ratings upgraded
Luxembourg-registered Evraz Group S.A.'s Issuer Default and
senior unsecured ratings to BB from BB-.  The agency also
upgraded Cyprus-registered subsidiary Mastercroft Limited's
Issuer Default rating and Evraz Securities S.A.'s senior
unsecured notes to BB from BB-.  

Mastercroft's and Evraz's Short-term B ratings are affirmed.  
The Outlooks for both IDRs remain Stable.  Evraz Securities is a
100%-owned subsidiary of Mastercroft.

Evraz Group's 8-1/4% notes due November 2015 has been given by
Moody's Investors Service's (P)B2 rating, Standard & Poor's B+
rating and Fitch's BB- rating.

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


ALFA BANK: Earns US$114.8 Million for First Half 2006
-----------------------------------------------------
Alfa Banking Group, which embodies OJSC Alfa-Bank and its
subsidiaries, released solid results for the first half of 2006,
based on audited IFRS figures.

Net profit after tax of the Group climbed 31.5% to US$114.8
million from US$87.3 million in the first half of 2005.  

Total assets grew by 25.4% to US$12.3 billion at the end of June
2006 from US$9.8 billion at the end of 2005. The key financial
ratios, such as annualized after tax return on equity and cost
to income, improved to 24.2% and 52.4% at June 2006 from 23.1%
and 52.7% at the end of December 2005 respectively.

Alfa Banking Group's total loan portfolio growth (before
provisions) grew 37.9% to US$8.2 billion, compared to US$6.0
billion as at 31 December 2005.  Outstanding results have been
achieved in the Group's corporate loan portfolio, which showed
significantly higher growth than the market. By the end of June
2006, corporate loans (before provisions) had increased by 35.0%
to US$7.9 billion, up from US$5.8 billion at the end of 2005.

Strong growth in the first half of 2006 by all the retail
banking divisions pushed Alfa Banking Group's retail loan
portfolio (before provisions) to US$364.4 million, up from just
US$145 million as at 31 December 2005. By the end of June 2006,
the total number of retail customers grew by almost 300,000 to
number approximately 1.8 million.

Funds raised by Alfa Banking Group from individuals and
corporate clients increased by 20.1% to US$6.5 billion, compared
to US$5.5 billion as at 31 December 2005.

Following the strategy of increasing diversification of funding
sources, Alfa-Banking Group has accomplished a number of
successful deals on the international debt capital markets.

In March 2006, Alfa Banking Group successfully closed its debut
US$350 million transaction for the securitization of diversified
payment rights (mainly international swift payments). This
transaction marked the first ever securitization of diversified
payment rights by a Russian institution and was also Alfa
Banking Group's first 144A offering targeting U.S. investors.

In May 2006, Alfa-Bank entered into a US$438 million trade-
related syndicated loan with a 364-day term and an option to
extend for a second year.  The deal, which was subscribed by
leading European and international banks, was the largest
syndicated loan ever for a Russian private bank.  At the end of
the reporting period Alfa Banking Group's international
borrowings totaled US$2.0 billion or 17.4% of total liabilities.

The total equity of the Group in the reporting period increased
by 21.6% to US$1.0 billion, up from US$855.8 million as at
Dec. 31, 2005.

                         About Alfa Bank

Headquartered in Moscow, Russia, Alfa Bank --
http://www.alfabank.com/-- provides services in every key    
sector of the financial service industry, including corporate
banking, retail banking, investment banking, trade finance,
insurance and asset management.  Alfa-Bank's branch network has
grown to 121, including subsidiary banks in Russia, Ukraine,
Kazakhstan and the Netherlands.

In 2005 total assets of the Alfa-Bank and its subsidiaries grew
to US$9.8 billion, total equity increased to US$855.8 million,
loan portfolio net of provisions increased to US$5.7 billion.
The net profit for a year 2005 was US$180.6 million.

                        *     *     *

As reported in TCR-Europe on Oct. 6, Fitch Ratings assigned Alfa
MTN Issuance Limited's US$400 million 7.875% notes issue due
October 2009 a Long-term BB- rating.  The proceeds from the
issue will be on-lent to Alfa-Bank, rated Issuer Default BB-
/Outlook Stable, Short-term B, Support 4, Individual C/D, and
National Long-term A+/Outlook Stable.

As reported in TCR-Europe on Sept. 12, Fitch Ratings upgraded
Russia-based Alfa Bank's ratings to Issuer Default BB- from B+,
Individual C/D from D and National Long-term to A+ from A.  The
Outlooks on the Issuer Default and National Long-term ratings
remain Stable.  Alfa's other ratings are affirmed at Short-term
B and Support 4.

Alfa's outstanding senior unsecured debt issues are also
upgraded to BB- from B+ and its subordinated debt issue due
December 2015 to B+ from B-.  The two-notch upgrade of the
subordinated debt reflects the rules-based, rather than
recoveries-based, approach to assigning Recovery Ratings to
issues of entities rated BB- and above.

As reported in TCR-Europe on July 17, Moody's Investors Service
upgraded Alfa Bank's Financial Strength Rating to D from D- and
changed its outlook to stable from positive.

At the same time, the bank's Ba2 long-term foreign currency
deposit and senior unsecured debt ratings have been affirmed
with their corresponding outlooks changed to stable.  The bank's
Not-Prime short-term foreign currency deposit and debt ratings
and their outlook remain unchanged.


GLOBAL POWER: Can Wind Down Heat Recovery Business Segment
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware
authorized Global Power Equipment Group Inc. and its debtor-
affiliates to wind down the operations of the heat recovery
steam generator business segment.

The Debtors tell the Court that they had determined to wind down
this business segment prior to filing for bankruptcy, but in the
interest of caution, they asked for approval from the Court.

The Debtors say that they lack sufficient funds to operate this
business segment, which will likely sustain substantial cash
losses in the future.  The Debtors contend that the cessation
and orderly wind down of this business is in their best interest
as well as that of their estates, creditors and parties-in-
interest.

The Court also authorizes the Debtors to reject certain
executory contracts and unexpired leases in connection with the
wind down.  The Court has set 4:00 p.m. ET, on Oct. 23, 2006, as
the deadline for filing objections on the proposed rejections.  
The hearing on the proposed rejection and objections is
scheduled at 10:00 a.m. ET, on Oct. 26.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides    
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and
auxiliary equipment primarily used to enhance the efficiency and
facilitate the operation of gas turbine power plants as well as
for other industrial and power-related applications.  The
Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma;
Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico;
Shanghai, China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  As of Sept. 30, 2005, the Debtors
reported total assets of US$381,131,000 and total debts of
US$123,221,000.  The Debtors' exclusive period to file a chapter
11 plan expires on Jan. 26, 2007.


VNU GROUP: Completes 34.3% Solucient Stake Sale to Thompson Corp
----------------------------------------------------------------
VNU Group B.V. has completed the sale of its 34.3% stake in
Solucient, an information products company serving the
healthcare industry, to The Thomson Corp.  Terms were not
disclosed.

VNU disclosed an agreement to sell its stake in Solucient on
Sept. 18, saying the business no longer was considered a
strategic fit with VNU's Marketing Information group, which
focuses primarily on the fast-moving consumer goods sector.

VNU had been a minority owner in Solucient since 1999, when it
formed a joint-venture business with private-equity firm
Veronis, Suhler & Associates (now Veronis Suhler Stevenson) that
was later renamed Solucient.

With the closing of this transaction, Thomson now owns 100% of
Solucient.

Headquartered in Haarlem, Netherlands, VNU N.V. --
http://www.vnu.com/-- operates publishing businesses and offers  
marketing and media information.  The Company publishes and
distributes telephone directories, children's books and
periodicals, and business information periodicals.  VNU also
offers television and Internet usage data and advertising
expenditure analysis.

                        *     *     *

As reported in TCR-Europe on July 20, Moody's Investors Service
downgraded the Corporate Family Rating of VNU NV to B2 from B1
and its senior unsecured debt ratings to Caa1 from B1.  This
concludes Moody's review of VNU's ratings, which was last
continued on May 26.

Rating downgraded to B2 from B1:

   -- Corporate Family Rating

Ratings downgraded to Caa1 from B1:

   -- floating rate Euro MT Notes due 2012;

   -- 6.75% Euro MT Notes due 2012;

   -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT
      Notes due 2010;

   -- 5.625% GBP MT Notes due 2010/17;

   -- 5.5% Eurobonds due 2008;

   -- 6.75% Eurobonds due 2008;

   -- 6.625% Eurobonds due 2007;

   -- Euro MTN program; and

   -- Nielsen Media Research Inc.'s 7.6% Notes due 2009
      guaranteed by VNU.

In a TCR-Europe report on July 19, Standard & Poor's Ratings
Services has lowered its long-term corporate credit rating on
Dutch media group VNU N.V. to 'B' from 'B+', and affirmed its
'B' short-term corporate credit rating.

All ratings have been removed from CreditWatch, where they were
placed with negative implications on Oct. 12, 2005.  S&P said
the outlook is negative.


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


GREENBIER COMPANIES: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the transportation sector, the rating agency
confirmed its Ba3 Corporate Family Rating for The Greenbier
Companies Inc.  Additionally, Moody's confirmed its probability-
of-default ratings and assigned new loss-given-default ratings
on these bond issues:

                                                   Projected
                                 POD      LGD      Loss-Given
   Debt Issue                    Rating   Rating   Default
   ----------                    -------  ------   ----------
   8.375% Sr. Uns. Notes
   due 2015                      B1       LGD4     64%

   2.375%, Convertible
   Sr. Nts
   due 2026                      B1       LGD4     64%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Lake Oswego, Oregon, The Greenbrier Companies
(NYSE:GBX) -- http://www.gbrx.com/-- is an international  
leading supplier of transportation equipment and services to the
railroad industry.  The Company builds, leases, repairs and
refurbishes freight railcars for a variety of customers in North
America.  It also manufactures and refurbishes freight wagons in
the European market.  Greenbrier Europe, a subsidiary of The
Greenbrier Companies, consists of a manufacturing facility,
WagonySwidnica S.A., located in Swidnica Poland, a sales support
facility, Greenbrier Germany GmbH, located in Siegen, Germany
and a marketing office located in London, England.  Greenbrier
owns a lease fleet of approximately 9,000 railcars, and performs
management services for approximately 135,000 railcars.  The
Company also is a leading supplier of ocean-going barges for the
American maritime industry.


=============
R O M A N I A
=============


BANCA COMERCIALA: Erste Bank Completes 61.8% Equity Purchase
------------------------------------------------------------
Erste Bank der oesterreichischen Sparkassen AG (Erste Bank)
completed the acquisition of Banca Comerciala Romana S.A. for
EUR3.75 billion.

Erste Bank has acquired 61.8% of BCR's shares from:

   -- a 36.8% stake from the Romanian government;

   -- 12.5% + 1 share from the European Bank for Reconstruction
      and Development; and

   -- 12.5% + 1 share from the International Finance Corp.

The funds were transferred Oct. 12 with Citibank acting as
escrow agent.  The closing of the acquisition marks the
completion of a two-stage privatization process in which nine
European banks originally competed.

"We shall start to implement our ambitious new business plan
tomorrow.  Within the next 12 months, our clients will start to
feel the benefits of BCR's membership in our group through new
products and services provided at EU-quality-standards," said
Andreas Treichl, CEO of Erste Bank.  "With our already
established EU offices we want to help our clients to get access
to EU funds on favourable terms, in order to develop their
business fast," added Mr. Treichl.

New Shareholders' Structure (in %)

                                 Old       New   
                                -----     -----
   Romanian government          36.9        --
   EBRD                         12.5        --
   IFC                          12.5        --
   Erste Bank                    --        61.9
   SIFs                         30.1       30.1
   Employees                     8.0        8.0

With the purchase of BCR, Erste Bank Group adds Romania, one of
the strongest growth markets in the region, to its existing
network in Austria, the Czech Republic, Slovakia, Hungary,
Croatia, Serbia and Ukraine.  With a new total of over 15.6
million customers the Group will significantly strengthen its
position as one of the leading financial institutions in Central
and Eastern Europe, operating in a market with almost 120
million inhabitants with a retail market share of some 15%.

                   Supervisory Board Changes

As of Oct. 12, Erste Bank CEO Mr. Treichl has assumed his
function as the new chairman of the Supervisory Board.  Manfred
Wimmer, head of Group Program Management of Erste Bank, was
appointed as vice chairman of the Supervisory Board.  The other
new members of the Supervisory Board, nominated by Erste Bank,
are:

   -- Christian Coreth (Board member of Erste Bank responsible
      for risk management); and

   -- Herbert Juranek (Head of Group IT of Erste Bank),

thus replacing former members of AVAS (Gheorghe Ionescu and
Joszef Birtalan), EBRD (Oliver Greene) and IFC (Thomas
Krayenbuehl).

The former chairman of the Supervisory Board, Daniel Daianu,
agreed to remain as a member of the Supervisory Board.  Teodor
Mihaescu (SIF Muntenia) and Mr. Mihai Fercala (SIF Transilvania)
will continue to represent the SIFS on the Supervisory Board.

With an average real gross domestic product growth of 6.1%
between 2002 and 2004, a GDP per capita of around EUR2,700 in
2004 (compared to EUR 29,000 in Austria) and a ratio of deposits
to GDP of 24 % (compared to 89 % in Austria), Romania is
significantly less developed than the economies and banking
markets of EU countries.  Erste Bank is convinced that such a
low level of banking penetration will result in a substantial
long-term growth potential as the Romanian market converges with
the more developed parts of Europe.  Considerable growth
potential is expected in corporate banking, consumer credit,
savings deposits, bankcards and asset management.

                        About the EBRD

The European Bank for Reconstruction and Development is the
largest single investor in the region and mobilizes significant
foreign direct investment beyond its own financing.  It is owned
by 60 countries and two intergovernmental institutions.  It
provides project financing for banks, industries and businesses,
both new ventures and investments in existing companies.  It
also works with publicly owned companies, to support
privatization, restructuring state-owned firms and improvement
of municipal services.  The Bank uses its close relationship
with governments in the region to promote policies that will
bolster the business environment.

                      About Erste Bank

Headquartered in Vienna, Austria, Erste Bank is a retail bank in
Central Europe with operations in Austria, Croatia, the Czech
Republic, Hungary, Romania, Serbia, and Slovakia.


BANCA COMERCIALA: Fitch Affirms Individual Rating at C/D
--------------------------------------------------------
Fitch Ratings has upgraded Romania-based Banca Comerciala
Romana's ratings to Issuer Default 'A-' (A minus) from 'BBB-',
Short-term 'F2' from 'F3' and Support '1' from '2'.  The Rating
Watch Positive on these ratings has been removed.  The
Individual rating is affirmed at 'C/D'.  A Stable Outlook is
assigned to the Issuer Default rating.

This action follows the completion of the acquisition of a
majority stake in BCR by Austria-based Erste Bank der
oesterreichischen Sparkassen.  The Issuer Default, Short-term
and Support ratings reflect the extremely high potential support
available to BCR from new majority shareholder Erste Bank.

Erste Bank has a strong franchise in Central and Eastern Europe,
and the area represents around half of Erste Bank's pre-tax
profit.

"Romania is attractive to Erste Bank due to its large population
and low banking penetration," says Tim Beck, Director in Fitch's
Financial Institutions Group.  "The market has attractive growth
prospects, and BCR, with its large franchise, is well placed to
benefit from this."

Erste Bank has acquired 61.9% of BCR, the stakes previously held
by the Romanian Government as well as EBRD and IFC.  The
remaining shares are owned by private Romanian investment
companies (30.1%) and employees of BCR (8%).

Banca Comerciala Romana is the largest bank in Romania and
accounts for approximately 26% of the banking system's assets.


HVB TIRIAC: Begins Merger Operations With UniCredit Romania
-----------------------------------------------------------
HVB Tiriac Bank and UniCredit Romania began merger operations to
be completed by the second half of 2007, pending approval by
regulatory authorities, reports Reporter.gr citing Nine o'Clock
as its source.

The current representatives of both banks consist the management
of the merged entity.

HVB Tiriac CEO Dan Pacariu will take the office as president of
the administration board of the new entity.  UniCredit's current
executive president Rasyan Radu will sit as executive president
of the future credit institution.

Manuela Plapcianu, Melih Mengu, Andreas Gschwenter, and Marco
Cravario will consist the Managing Committee.

Ms. Plapcianu will be an executive member of the Managing
Committee, responsible for Retail activities, a similar position
to the one currently held within HVB Tiriac Bank.

Ms. Mengu will handle the corporation division.  Mr. Gschwenter
will coordinate the operations of Global Banking Services, and
Mr. Cravario will be the financial manager of the new entity.

UniCredit Romania financial manager Matteo Cavazolli will take
over a new responsibility within the group in Italy.  

Florian Kubinschi, currently financial manager of HVB Tiriac
Bank, and Wolfgang Schoiswohl, responsible for corporations
within HVB Tiriac Bank, will be assigned responsibilities
outside the group.

                        UniCredit Romania

UniCredit Romania -- http://www.unicredit.ro/--is a Romanian  
commercial bank with foreign ownership, targeting both corporate
and retail customers.  UniCredit Group (UCI), one of the leading
banking groups in Europe, is the main shareholder of the bank
with 99.94% total shares.

                         HVB Tiriac Bank

HVB Tiriac -- http://www.bancatiriac.ro/-- is the fourth  
largest bank in Romania, with a market share of around 6.5%.  

                        *     *     *

As reported in TCR-Europe on Sept. 21, Fitch assigned Banca
Comerciala HVB Tiriac ratings of Issuer Default A- with a Stable
Outlook, Short-term F2, Individual D and Support 1.  The
Individual rating has been placed on Rating Watch Evolving.


UNICREDIT ROMANIA: Begins Merger Operations With HVB Tiriac
-----------------------------------------------------------
HVB Tiriac Bank and UniCredit Romania began merger operations to
be completed by the second half of 2007, pending approval by
regulatory authorities, reports Reporter.gr citing Nine o'Clock
as its source.

The current representatives of both banks consist the management
of the merged entity.

HVB Tiriac CEO Dan Pacariu will take the office as president of
the administration board of the new entity.  UniCredit's current
executive president Rasyan Radu will sit as executive president
of the future credit institution.

Manuela Plapcianu, Melih Mengu, Andreas Gschwenter, and Marco
Cravario will consist the Managing Committee.

Ms. Plapcianu will be an executive member of the Managing
Committee, responsible for Retail activities, a similar position
to the one currently held within HVB Tiriac Bank.

Ms. Mengu will handle the corporation division.  Mr. Gschwenter
will coordinate the operations of Global Banking Services, and
Mr. Cravario will be the financial manager of the new entity.

UniCredit Romania financial manager Matteo Cavazolli will take
over a new responsibility within the group in Italy.  

Florian Kubinschi, currently financial manager of HVB Tiriac
Bank, and Wolfgang Schoiswohl, responsible for corporations
within HVB Tiriac Bank, will be assigned responsibilities
outside the group.

                         HVB Tiriac Bank

HVB Tiriac -- http://www.bancatiriac.ro/-- is the fourth  
largest bank in Romania, with a market share of around 6.5%.  

                        UniCredit Romania

UniCredit Romania -- http://www.unicredit.ro/--is a Romanian  
commercial bank with foreign ownership, targeting both corporate
and retail customers.  UniCredit Group (UCI), one of the leading
banking groups in Europe, is the main shareholder of the bank
with 99.94% total shares.

                        *     *     *

As reported in TCR-Europe on Oct. 3, Fitch affirmed ratings of
UniCredit Romania at Issuer Default Rating of A-, Short-term F2,
Individual D and Support Rating at 1. Outlook is Stable.


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


ALFA BANK: Earns US$114.8 Million for First Half 2006
-----------------------------------------------------
Alfa Banking Group, which embodies OJSC Alfa-Bank and its
subsidiaries, released solid results for the first half of 2006,
based on audited IFRS figures.

Net profit after tax of the Group climbed 31.5% to US$114.8
million from US$87.3 million in the first half of 2005.  

Total assets grew by 25.4% to US$12.3 billion at the end of June
2006 from US$9.8 billion at the end of 2005. The key financial
ratios, such as annualized after tax return on equity and cost
to income, improved to 24.2% and 52.4% at June 2006 from 23.1%
and 52.7% at the end of December 2005 respectively.

Alfa Banking Group's total loan portfolio growth (before
provisions) grew 37.9% to US$8.2 billion, compared to US$6.0
billion as at 31 December 2005.  Outstanding results have been
achieved in the Group's corporate loan portfolio, which showed
significantly higher growth than the market. By the end of June
2006, corporate loans (before provisions) had increased by 35.0%
to US$7.9 billion, up from US$5.8 billion at the end of 2005.

Strong growth in the first half of 2006 by all the retail
banking divisions pushed Alfa Banking Group's retail loan
portfolio (before provisions) to US$364.4 million, up from just
US$145 million as at 31 December 2005. By the end of June 2006,
the total number of retail customers grew by almost 300,000 to
number approximately 1.8 million.

Funds raised by Alfa Banking Group from individuals and
corporate clients increased by 20.1% to US$6.5 billion, compared
to US$5.5 billion as at 31 December 2005.

Following the strategy of increasing diversification of funding
sources, Alfa-Banking Group has accomplished a number of
successful deals on the international debt capital markets.

In March 2006, Alfa Banking Group successfully closed its debut
US$350 million transaction for the securitization of diversified
payment rights (mainly international swift payments). This
transaction marked the first ever securitization of diversified
payment rights by a Russian institution and was also Alfa
Banking Group's first 144A offering targeting U.S. investors.

In May 2006, Alfa-Bank entered into a US$438 million trade-
related syndicated loan with a 364-day term and an option to
extend for a second year.  The deal, which was subscribed by
leading European and international banks, was the largest
syndicated loan ever for a Russian private bank.  At the end of
the reporting period Alfa Banking Group's international
borrowings totaled US$2.0 billion or 17.4% of total liabilities.

The total equity of the Group in the reporting period increased
by 21.6% to US$1.0 billion, up from US$855.8 million as at
Dec. 31, 2005.

                         About Alfa Bank

Headquartered in Moscow, Russia, Alfa Bank --
http://www.alfabank.com/-- provides services in every key    
sector of the financial service industry, including corporate
banking, retail banking, investment banking, trade finance,
insurance and asset management.  Alfa-Bank's branch network has
grown to 121, including subsidiary banks in Russia, Ukraine,
Kazakhstan and the Netherlands.

In 2005 total assets of the Alfa-Bank and its subsidiaries grew
to US$9.8 billion, total equity increased to US$855.8 million,
loan portfolio net of provisions increased to US$5.7 billion.
The net profit for a year 2005 was US$180.6 million.

                        *     *     *

As reported in TCR-Europe on Oct. 6, Fitch Ratings assigned Alfa
MTN Issuance Limited's US$400 million 7.875% notes issue due
October 2009 a Long-term BB- rating.  The proceeds from the
issue will be on-lent to Alfa-Bank, rated Issuer Default BB-
/Outlook Stable, Short-term B, Support 4, Individual C/D, and
National Long-term A+/Outlook Stable.

As reported in TCR-Europe on Sept. 12, Fitch Ratings upgraded
Russia-based Alfa Bank's ratings to Issuer Default BB- from B+,
Individual C/D from D and National Long-term to A+ from A.  The
Outlooks on the Issuer Default and National Long-term ratings
remain Stable.  Alfa's other ratings are affirmed at Short-term
B and Support 4.

Alfa's outstanding senior unsecured debt issues are also
upgraded to BB- from B+ and its subordinated debt issue due
December 2015 to B+ from B-.  The two-notch upgrade of the
subordinated debt reflects the rules-based, rather than
recoveries-based, approach to assigning Recovery Ratings to
issues of entities rated BB- and above.

As reported in TCR-Europe on July 17, Moody's Investors Service
upgraded Alfa Bank's Financial Strength Rating to D from D- and
changed its outlook to stable from positive.

At the same time, the bank's Ba2 long-term foreign currency
deposit and senior unsecured debt ratings have been affirmed
with their corresponding outlooks changed to stable.  The bank's
Not-Prime short-term foreign currency deposit and debt ratings
and their outlook remain unchanged.


ALFA MTN: Moody's Affirms Ba2 Rating on US$1-Bln EMTN Program
-------------------------------------------------------------
Moody's Investors Service has affirmed the Ba2 long-term rating
of the US$1 billion EMTN Program of Alfa MTN Issuance Limited,
Alfa MTN Markets Limited, Alfa MTN Invest Limited and Alfa MTN
Projects Limited, unconditionally and irrevocably guaranteed by
ABH Financial Limited and Open Joint-Stock Company Alfa-Bank
(Russia), following the amendment of terms and conditions of the
notes.  The outlook for the rating is stable.

According to Moody's, the Ba2 rating remains based on the
fundamental credit strength of Alfa-Bank (Russia) and does not
incorporate any potential support from the authorities in case
of need.

The fourth drawdown of US$400 million has been assigned a Ba2
rating in line with the Program's rating.

Moody's notes that the amendments to the original Program's
documentation were mainly aimed at bringing the guarantor's
covenants more in line with the bank's actual scale of business
and to capture its short-to-mid-term development plans.  In
Moody's opinion, they do not affect the overall credit quality
of the Program to an extent incompatible with the Ba2 rating.  

According to the terms of the Program, the guarantors will have
to comply with a number of covenants such as a negative pledge,
a limitation on mergers and consolidations and a limitation on
affiliate transactions.  As one of the financial covenants, ABH
Financial Limited is also obliged to maintain a minimum capital
adequacy ratio of 8% calculated in accordance with BIS
guidelines.

Alfa-Bank is incorporated in Moscow, Russia, and is wholly owned
by ABH Financial Limited, which had reported total IFRS-
consolidated assets of US$9.8 billion at Dec. 31, 2005.


BALEZINSKIY WOODWORKING: A. Galushko to Manage Assets
-----------------------------------------------------
The Arbitration Court of Udmurtiya Republic appointed Mr. A.
Galushko as Insolvency Manager for OJSC Balezinskiy Woodworking
Combine (TIN 1802019030).  He can be reached at:

         A. Galushko
         50 Let Oktyabrya Square 2
         Izhevsk
         426034 Udmurtiya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A71-000613/2006-G21.

The Arbitration Court of Udmurtiya Republic is located at:

         Lomonosova Str. 5
         Izhevsk
         426004 Udmurtiya Republic
         Russia

The Debtor can be reached at:

         OJSC Balezinskiy Woodworking Combine
         Shkolnaya Str. 1
         Balezino
         Udmurtiya Republic
         Russia


BANK SAINT PETERSBURG: Fitch Places Individual Rating at D
----------------------------------------------------------
Fitch Ratings has assigned Russia's Bank Saint Petersburg
ratings of Issuer Default 'B', Short-term 'B', Individual 'D'
and Support '5'.  The Outlook for the Issuer Default rating is
Stable.

The ratings reflect BSP's large exposure to the real estate and
construction sectors and high individual borrower
concentrations, which may lead to losses and liquidity
constraints in the event of an economic downturn or any serious
price correction in the real estate market.  Stronger
capitalization would be required to absorb any such shock.  At
the same time, the ratings also consider BSP's sound earnings
performance underpinned by a solid net interest margin, good
local brand recognition, significant regional franchise, low
levels of loan impairment to date and acceptable loan loss
reserves.

Upward movement in the IDR is viewed by Fitch as unlikely in the
near term and would be possible if BSP diversifies its loan
portfolio by reducing exposure to high risk industries and
strengthens its capital base, or if the Russian operating
environment significantly improves.  Near-term equity-raising
plans are currently being determined, and any marked
deterioration in the bank's modest capital position resulting
from continued strong growth could put downward pressure on the
ratings.

BSP is a mid-sized Russian bank with a large presence in St.
Petersburg and the surrounding region.  The franchise is
currently focused primarily on serving local corporates, in part
by leveraging a close relationship with the St. Petersburg City
administration, although retail lending is also targeted to
grow.  The bank is ultimately controlled by senior management,
including the Chairman, Alexander Saveliev (50.6%), with most of
the remainder owned by two groups of local investors.


ELABUZHSKIYE TRANSPORT: K. Shamsutdinov to Manage Assets
--------------------------------------------------------
The Arbitration Court of Tatarstan Republic appointed Mr. K.
Shamsutdinov as Insolvency Manager for OJSC Elabuzhskiye
Transport Enterprise.  He can be reached at:

         K. Shamsutdinov
         Post User Box 35
         Elabuga
         423604 Tatarstan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A65-8757/2006-SG4-31.

The Arbitration Court of Tatarstan Republic is located at:

         Room 12
         Floor 2
         Entrance 2
         Building 1
         Kremlin
         Kazan
         Tatarstan Republic
         Russia

The Debtor can be reached at:

         OJSC Elabuzhskiye Transport Enterprise
         Elabuga
         Tatarstan Republic
         Russia


EVRAZ GROUP: Earns US$571 Million for First Half 2006
-----------------------------------------------------
Evraz Group S.A. released its unaudited interim results for the
six months ended June 30, 2006, with both revenues and cash flow
increasing to record levels.

Highlights:

Strong operational performance delivers solid results

   -- 2006 first half revenue was a record US$3.825 billion, up
      5% from the corresponding period in 2005

   -- consolidated steel sales increased by 23% to 8.3 million
      tons from 6.75 million tons in the first half of 2005

   -- Russian construction products sales volumes grew 23%

   -- volumes of semi-finished steel products increased 21% due
      to growing slab production

   -- higher value-added sales into attractive European and USA
      markets increased fivefold

   -- adjusted EBITDA remains largely unchanged year-on-year at
      US$1,096 million

   -- net profit reduced marginally to US$571 million from
      US$612 million in 2005

   -- further US$262 million investment in cost efficiency
      program

   -- further expansion of mining segment with an additional
      US$225 million equity investment in OAO Raspadskaya


"Evraz achieved satisfactory results during the first six months
of 2006 especially when compared with the exceptional
performance supported by high steel prices in the first half of
2005," Valery Khoroshkovsky, Evraz Group's CEO, commented.

"Contributing to our record high revenues in the first half of
2006 was significant sales volume increase from the successful
business integration of the European steel mills acquisitions
coupled with strong organic growth in Russia delivered from the
group's capital investment program.

"Additionally, steel prices have shown good recovery starting
from March 2006 from the lower levels seen in the second half of
2005 and the first quarter of 2006.  Evraz has continued to
reduce its steel costs by increasing operational efficiency and
achieving a higher level of production as a result of our
capital investment program."

"In the second half of 2006, Evraz will continue to enhance its
position as one of the most cost-effective and profitable
integrated steel producing and mining groups in Russia and CIS
while expanding and strengthening its presence in non-Russian
markets," Mr. Khoroshkovsky added.  "Evraz will continue to
focus on cost management and ongoing efficiency improvements to
enhance our competitiveness in the global steel market.

"Evraz intends to deliver further benefits from the integration
of the recent acquisitions, facilitating a gradual shift in
product mix towards higher margin products.

"Our volumes are expected to remain strong for the rest of the
year with the rolled products output increasing 22% year-on-year
to 10.8 million tons in the first nine months of 2006. We expect
the price recovery, which started in the second quarter of 2006
to continue on the back of growing demand.

"The acquisition of Strategic Minerals Corporation in August
will contribute both to the group's revenue and profit growth
and our equity investment in Highveld Steel and Vanadium
Corporation will further support our earnings."

               Consolidated Group Financial Position

Cash flow from operating activities increased by 24.3% year-on-
year to US$904 million from US$727 million.  The increase in net
cash generated by operations was primarily due to a substantial
decrease in net working capital requirement.

Cash used in investing activities was US$1.036 million in the
first half of 2006 vs. US$657 million in the first half of 2005.  
This includes short-term deposits in the amount of US$264
million, the first payment of US$10 million for the acquisition
of Stratcor as well as US$275 million paid as the last
instalment for the shares of Yuzhkuzbassugol purchased in
December 2005.

In the first half of 2006 capital expenditure amounted to US$262
million compared with US$280 million in the first half of 2005.

Net debt increased when compared with June 30, 2005 by US$1.384
billion to US$2.120 billion as of June 30, 2006.  

Evraz has sufficient liquidity to support its current operations
and meet its current debt obligations.  Evraz estimated
liquidity (defined as cash and cash equivalents, amounts
available under unrestricted credit facilities and short-term
bank deposits) amounted to US$1.513 billion as of June 30, 2006
compared with US$1,373 million as of Dec. 31, 2005.  The cash
balance, including US$287 million in short-term deposits, grew
by 20% to US$769million.

As of June 30, 2006, total assets amounted to US$7.317 billion
reflecting an increase of 9.8% to US$6.663 billion as of
Dec. 31, 2005.

Parent shareholders' equity, including reserves and accumulated
profits as at June 30, 2006, increased 24.6% to US$3.373 billion
from US$2.707 billion as at Dec. 31, 2005.

                           About Evraz

Headquartered in Luxembourg, Evraz Group S.A. --
http://www.evraz.com/-- manufactures and distributes steel and  
related products. In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in Sverdlovsk
region and two mills in Kemerovo region.  

                        *     *     *

As reported by TCR-Europe on Oct. 11, Fitch Ratings upgraded
Luxembourg-registered Evraz Group S.A.'s Issuer Default and
senior unsecured ratings to BB from BB-.  The agency also
upgraded Cyprus-registered subsidiary Mastercroft Limited's
Issuer Default rating and Evraz Securities S.A.'s senior
unsecured notes to BB from BB-.  

Mastercroft's and Evraz's Short-term B ratings are affirmed.  
The Outlooks for both IDRs remain Stable.  Evraz Securities is a
100%-owned subsidiary of Mastercroft.

Evraz Group's 8-1/4% notes due November 2015 has been given by
Moody's Investors Service's (P)B2 rating, Standard & Poor's B+
rating and Fitch's BB- rating.


EVRAZ GROUP: Wins License for Sobstvenno-Kachkanarskoye Field
-------------------------------------------------------------
Evraz Group S.A. reveals that its subsidiary, Kachkanarsky Ore
Mining and Processing Enterprise Vanady (KGOK), has been
proclaimed the winner in an auction to buy a license to develop
the Sobstvenno-Kachkanarskoye magnetite and titanium deposit in
Central Ural.

KGOK offered RUR220.5 million (approximately US$8.2 million) for
the license at the auction.

The Sobstvenno-Kachkanarskoye deposit is located in the
Sverdlovsk Region next to the Gusevogorskoye ore deposit and has
reserves of 3.3 billion tons of ore with estimated iron content
of 16%.  The license for developing the deposit is valid for a
period of 25 years.

At present KGOK processes iron ore from the Gusevogorskoye ore
deposit.  In 2005 KGOK mined around 46 million tons of ore and
produced 8.6 million tons of concentrate.

                           About Evraz

Headquartered in Luxembourg, Evraz Group S.A. --
http://www.evraz.com/-- manufactures and distributes steel and  
related products. In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in Sverdlovsk
region and two mills in Kemerovo region.  

                        *     *     *

As reported by TCR-Europe on Oct. 11, Fitch Ratings upgraded
Luxembourg-registered Evraz Group S.A.'s Issuer Default and
senior unsecured ratings to BB from BB-.  The agency also
upgraded Cyprus-registered subsidiary Mastercroft Limited's
Issuer Default rating and Evraz Securities S.A.'s senior
unsecured notes to BB from BB-.  

Mastercroft's and Evraz's Short-term B ratings are affirmed.  
The Outlooks for both IDRs remain Stable.  Evraz Securities is a
100%-owned subsidiary of Mastercroft.

Evraz Group's 8-1/4% notes due November 2015 has been given by
Moody's Investors Service's (P)B2 rating, Standard & Poor's B+
rating and Fitch's BB- rating.


GAZPROM NEFT: S&P Lifts Rating on Favorable Pricing Environment
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on JSC Gazprom Neft, a Russian vertically integrated oil
company 76% owned by OAO Gazprom, to 'BB+' from 'BB', following
the upgrade of its parent Gazprom.  At the same time, the
national scale rating on Gazprom Neft was raised to 'ruAA+' from
'ruAA'.  The outlook is stable.
     
"The upgrade follows that of the parent Gazprom, which reflected
the increasingly favorable pricing environment, so that Gazprom
should in 2006 see evidence of strong free cash flow for the
first time," said Standard & Poor's credit analyst Elena
Anankina.
     
The rating action on Gazprom Neft retains the one-notch
difference with the parent.  Gazprom Neft is Gazprom's key
strategic oil subsidiary and is likely to be considered subject
to cross default on Gazprom's MTNs, which increases Gazprom's
economic incentive to support the company if needed.  With its
76% stake, Gazprom has full control over the company's
management and strategy (25% constitutes a blocking stake under
Russian law).  Because Gazprom is, in turn, majority owned by
the Russian government, the company's exposure to sovereign
interference risk is lower because the state effectively
controls it.
     
The stable outlook on Gazprom Neft mirrors that on Gazprom.  The
stable outlook on Gazprom reflects our expectation that strong
export prices will help the group to finance growing capital
expenditures (budgeted at a high US$12 billion for 2006 for the
gas business and US$1.8 billion for Gazprom Neft) from
internally generated funds.
     
Gazprom Neft's 2006 and 2007 financial performance is expected
to be strong given the continuing high oil price environment,
but capital expenditures and investments are set to further
increase to about US$1.9 billion, to sustain production levels
by investing in new fields (notably Priobskoye) to offset
declines at other major fields.  The company is expected to
maintain broadly stable production.
     
The future rating evolution will largely depend on the rating of
Gazprom and on Gazprom Neft's role in the group.  In particular,
Standard & Poor's will monitor whether Gazprom buys out the
company's minority shareholders (notably Yukos) and provides
closer integration of Gazprom Neft within the group and for
stronger parental support.  

The rating agency will consider the relative status of the
company's creditors compared with those of Gazprom, and the
company's future strategic importance to and integration within
the Gazprom group, before it considers equalizing the ratings on
the two companies.


GAZPROM OAO: S&P Lifts Rating to BBB- on Strong Performance
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit and senior unsecured debt ratings on Russia-
based gas company OAO Gazprom to 'BBB-' from 'BB+', reflecting
Gazprom's strengthening operating performance in 2006.  At the
same time, the long-term corporate credit rating on JSC Gazprom
Neft, a Russian oil company 76% owned by Gazprom, was raised to
'BB+' from 'BB'.  The outlooks on both ratings are stable.

"The upgrade of Gazprom reflects the increasingly favorable
pricing environment for both domestic gas sales and for exports
to the former Soviet Union and Europe," said Standard & Poor's
credit analyst Elena Anankina.  "Indeed, the pricing environment
has improved to the extent that Gazprom should in 2006 see
evidence of strong free cash flow for the first time."
     
Standard & Poor's now sees Gazprom's business risk profile as
satisfactory.  Its financial risk profile, although improving,
remains aggressive, due to rising capital expenditures,
acquisition risk, a large debt burden, and high short-term debt.     

The ratings remain anchored by Gazprom's stand-alone credit
quality, to which one notch is added to reflect our expectations
of extraordinary support from the majority shareholder, The
Russian Federation.

Gazprom's close and gradually strengthening links with the
sovereign enhances its business risk profile and access to
financial markets.  As the key government-related entity in
Russia's strategic hydrocarbon sector, Gazprom enjoys
considerable sway over new hydrocarbon projects and strong
bargaining power.

Standard & Poor's expects that some extraordinary support could
be afforded to the company if needed, given Gazprom's standing
as the country's largest natural-resource company, taxpayer, and
employer.  Gazprom plays an important policy role by covering
about 40% of Russia's energy requirements with low-priced gas.
We continue to differentiate, however, between the corporate and
sovereign ratings, because Gazprom's operations are autonomous
and the Russian government's willingness to provide timely
financial support is uncertain.
     
Strong export prices will help the company to finance growing
capital expenditures from internally generated funds.  Gazprom's
export prices are expected to reach a record high in 2006 and
2007, because they lag international oil prices by about nine
months and terms of supply to certain countries in Eastern
Europe and the former Soviet Union were renegotiated upwards in
2006, with prices further increasing in 2007.
     
"The future rating evolution will be largely driven by changes
in the positive and negative aspects of ongoing and
extraordinary state influence, including any social burden and
increasingly politicized decision-making for new investment
projects and gas exports," said Ms. Anankina.
     
Rating upside is currently limited because of the company's
ambitions for debt-financed acquisitions.  Failure to maintain
momentum during the rise of domestic gas prices and cost
inflation containment could also limit rating upside.  Very
large debt-financed acquisitions could pressure the ratings if
not offset by higher state support.


KOZMODEMYANSKIY BUTTER: S. Kachin to Manage Assets
--------------------------------------------------
The Arbitration Court of Mariy El Republic appointed Mr. S.
Kachin as Insolvency Manager for OJSC Kozmodemyanskiy Butter
Factory.  He can be reached at:

         S. Kachin
         Office 211
         Tekstilshikov Str. 10
         428008 Cheboksary Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-38-940-19/158-2006.

The Debtor can be reached at:

         OJSC Kozmodemyanskiy Butter Factory
         Gagarina Str. 52
         Kozmodemyansk
         Mariy El Republic
         Russia


KUDRYASHEVSKIY FEED: Bankruptcy Hearing Slated for Jan. 15
----------------------------------------------------------
The Arbitration Court of Novosibirsk Region will convene at
11:00 a.m. on Jan. 15 to hear the bankruptcy supervision
procedure on OJSC Kudryashevskiy Feed Mill.  The case is
docketed under Case No. A45-12572/06-54/313.

The Temporary Insolvency Manager is:

         D. Shitoev
         Post User Box 31
         630035 Novosibirsk Region
         Russia

The Arbitration Court of Novosibirsk Region is located at:

         Kirova Str. 3
         630007 Novosibirsk Region
         Russia

The Debtor can be reached at:

         OJSC Kudryashevskiy Feed Mill
         Promyshlennaya Str. 1
         Krivodanovka
         630511 Novosibirsk Region
         Russia


MAKARYEVSKAYA FAIR: Bankruptcy Hearing Slated for Nov. 5
--------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region will convene at
10:00 a.m. on Nov. 5 to hear the bankruptcy supervision
procedure on OJSC Makaryevskaya Fair (TIN 5222003379).  The case
is docketed under Case No. A43-9320/2006-27-439.

The Temporary Insolvency Manager is:

         A. Shepetov
         Post User Box 132
         603005 Nizhniy Novgorod Region
         Russia

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         OJSC Makaryevskaya Fair
         Lenina Str. 23
         Lyskovo
         Nizhniy Novgorod Region
         Russia


MAZEIKIU NAFTA: Pegs Refinery Fire Damages at US$47.5 Million
-------------------------------------------------------------
AB Mazeikiu Nafta estimated damages caused by a fire at the
Lithuanian oil refinery on Thursday to be between US$22.5
million and US$47.5 million (LTL62 million and LTL131 million).  
The company's 2006 net profit is forecasted to be reduced due to
the incident by US$38 million (LTL105 million).

According to preliminary data, a leak developed at 2:32 p.m. on
Oct. 12 that led to depressurization of the Vacuum Distillation
column of the Vacuum Unit followed by hot bottom product release
into the atmosphere.  Due to the contact with atmosphere, the
self-ignition of the bottom product occurred.  Because of the
flame impact on the supporting structure of the vacuum column,
the latter started leaning and fell on the heat exchangers
block.  Additional petroleum products released and further
fueled the fire.

The company's management has developed an action plan which
organizes company operations to ensure petroleum product
supplies to the Baltic markets (i.e. Lithuania, Latvia, and
Estonia) with minimum impacts.

The company has continued its crude oil refining.  The past
incident capacity of Mazeikiu Nafta refinery is 15,000 tons per
day excluding the Vacuum unit.

Following the immediate incident, refinery operations will
transition through two or more stages of recovery before
returning to normal and optimal operations.  The company
estimates that it will take from six to nine months until
refinery can return to pre-fire daily throughput of 27,400 tons
a day.

                           Insurance

Mazeikiu Nafta said it has property and business interruption
losses insured in the international insurance market via the
broker AON Limited, London.  The biggest insurance risk part
(46.2%) is shared among three companies:

   -- Liberty International Underwriters (London, UK),
   -- AIG Europe (UK) Limited, and
   -- SCOR UK Company Limited.

Property is insured under reinstatement value.  AB Mazeikiu
Nafta liability insurance is secured in the international
insurance market as well.

                         Investigation

The Company is currently involved in a thorough investigation of
the incident supported by industry experts and including the
involvement of state institutions.  Upon completion of the
investigation and more detailed assessment of the damage an
adjusted estimate of greater accuracy will be developed and
hopefully the true cause of the incident will be identified and
understood with the ultimate goal of prevention of recurrence.

Poland's largest oil refiner PKN ORLEN S.A. is on its way to
completing the acquisition of Mazeikiu Nafta from Yukos
International UK B.V. for US$1.49 billion under a share sale and
purchase agreement dated May 26, 2006.  PKN has also agreed to
purchase a 30.66% stake in Mazeikiu from the Lithuanian
government for US$852 million.

The company is awaiting regulatory approval from the
Antimonopoly Committee of Ukraine and the appropriate antitrust
authorities in the United States before the deal's expected
completion early next year.  PKN does not expect that the
requirement to obtain additional consents in Ukraine and the US
will delay the closing of the transaction or increase the risks
for the successful closing.

The European Commission will consider the approval of the deal
next month.

                        PKN Orlen Statement

In a teleconference with capital market analysts Friday, PKN
ORLEN President of the Board Igor Chalupec announced a delay in
the signing of the financing program in support of the
acquisition of Mazeikiu Nafta.  This delay is caused by the need
to analyze the emergent situation in the Lithuanian refinery.

PKN ORLEN president of the Board Igor Chalupec also spoke on the
telephone with Lithuanian Prime Minister Gedyminas Kirkilas, who
visited the refinery in Mazeikiu.  Prime Minister Kirkilas
informed President Chalupec of the activities undertaken by the
Lithuanian side, including the appointment of a special
government committee to investigate the causes of the incident.  
President Chalupec assured Prime Minister Kirkilas of PKN
ORLEN's intention to complete the transaction and provide
assistance to resolve the emergent problems.  President Chalupec
also indicated that PKN ORLEN will analyze in detail the impact
of this incident on the operational and financial status of the
Mazeikiu Nafta refinery.

PKN ORLEN has declared its will to cooperate in removing the
consequences of Thursday's incident as quickly as possible.

                       About PKN Orlen

Headquartered in Poland, PKN Orlen operates three refineries
located in Plock, Trzebinia and Jedlicze.  It processes mainly
URAL blend crude oil, shipped from Russia via the Friendship
pipeline.  Alternative supplies of crude oil to Plock may be
sourced via the Pomerania pipeline, which connects the fuel
reloading facility on the Baltic Sea with the Plock refinery.
PKN ORLEN's retail network in Poland is made of 1,326 company
owned stations, 504 affiliated stations and 87 franchised
stations.

                         About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On July 25, Yukos creditors voted to liquidate the oil firm
after rejecting a management rescue plan, which valued the
company's assets at about US$30 billion.  This would have
permitted Yukos to continue its operations and attempt to pay
off US$18 billion in debts through asset sales.

The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate Yukos Oil and declared what was
once Russia's biggest oil firm bankrupt on Aug. 1.  The expected
court ruling paves the way for the company's liquidation and
auction.

Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta
-- http://nafta.it/en-- is an integrated downstream oil company   
that comprises in one complex pipeline operations, oil refining,
marine terminal operations, and logistics of crude oil and
refined products.


MAZEIKIU NAFTA: Fitch Keeps B+ Rating After Refinery Fire
---------------------------------------------------------
Fitch Ratings is keeping Lithuanian oil refining company
Mazeikiu Nafta AB's Issuer Default rating of 'B+' on Rating
Watch Positive despite Friday's fire at its Mazeikiai refinery.  
MN's Short-term rating is affirmed at 'B'.

The RWP reflects MN's pending ownership change as a result of
Polish oil refining and marketing company Polski Koncern Naftowy
ORLEN S.A.'s (rated 'BBB', Rating Watch Negative) planned
acquisition of the Lithuanian company.

In Fitch's view the recent fire at MN's Mazeikiai refinery,
while unfortunate, does not presently warrant a rating action as
it expects the company to substantially cover reconstruction
costs and business disruption losses via insurance claims.  
Medium-to-long-term reconstruction will now likely be
incorporated into PKN's capital expenditure plans for MN,
further supporting the maintenance of RWP.

The fire has, however, caused significant damage to the
refinery, including one of the vacuum pipe tower distillation
columns.  As a result, the company's only refinery is likely to
operate well below its full capacity (at around 50% of capacity)
for several months until the damaged installations are rebuilt.  
While the cost of reconstruction is expected to be covered by
MN's property insurance, the company's profitability will
deteriorate in the coming months due to decreased throughput.  
Business interruption insurance in place will cover only a part
of lost profits due to standard deductibles.  The company will
most likely have to declare "force majeure" and suspend a
significant part of its refined products exports due to lower
fuel production resulting from the fire.  Fitch will continue to
monitor developments closely.

The fire is the second significant unexpected incident at MN
(after suspended pipeline deliveries to MN from Russia) since
existing controlling shareholder, Yukos International UK B.V.,
agreed to sell its 53.7% stake in the company to PKN for
US$1.492 billion in May 2006.  PKN has also agreed to purchase a
30.66% stake in MN from the Lithuanian government for US$852
million.  The acquisition has yet to be approved by the EU but
is expected to close by first quarter of 2007, upon which the
RWP will be resolved.


MENDELEEVSKAYA: Court Names A. Dyachkov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Tatarstan Republic appointed Mr. A.
Dyachkov as Insolvency Manager for OJSC Mendeleevskaya Sel-Khoz-
Tekhnika.  He can be reached at:

         A. Dyachkov
         Post User Box 32
         Mendeleevsk
         423650 Tatarstan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A65-14159/2006-SG4-40.

The Arbitration Court of Tatarstan Republic is located at:

         Room 12
         Floor 2
         Entrance 2
         Building 1
         Kremlin
         Kazan
         Tatarstan Republic
         Russia

The Debtor can be reached at:

         OJSC Mendeleevskaya Sel-Khoz-Tekhnika
         Druzhby Str. 2
         Mendeleevsk
         423650 Tatarstan Republic
         Russia


NIZHNEKAMSKIY FACTORY: Bankruptcy Hearing Slated Oct. 23
--------------------------------------------------------
The Arbitration Court of Tatarstan Republic will convene at 8:15
a.m. on Oct. 23 to hear the bankruptcy supervision procedure on
LLC Nizhnekamskiy Factory of Building and Metal Constructions.
The case is docketed under Case No. A65-14690/2006-SG4-26.

The Temporary Insolvency Manager is:

         R. Radyno
         Post User Box 103
         Nizhnekamsk-6
         423576 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

         Room 12
         Floor 2
         Entrance 2
         Building 1
         Kremlin
         Kazan
         Tatarstan Republic
         Russia

The Debtor can be reached at:

         LLC Nizhnekamskiy Factory of
         Building and Metal Constructions
         Post User Box 103
         Nizhnekamsk-6
         423576 Tatarstan Republic
         Russia


NOVATEK OAO: Extraordinary General Meeting Slated for Dec. 13
-------------------------------------------------------------
OAO Novatek will hold an Extraordinary General Meeting of
Shareholders on Dec. 13, in Moscow.

The EGM will be convened at the request of OOO Levit to approve
the dissolution of the current Board of Directors and Revision
Committee of Novatek and for the election of a new Board of
Directors and Revision Committee for the Company.

                        About Novatek

Headquartered in Moscow, OAO Novatek (RTS: NVTK; LSE: NVTK;
NASDAQ: NVATY) is Russia's second largest gas company after
state-controlled Gazprom, and the largest of the country's
independent gas producers.

For the first half of 2006, Novatek posted RUR7.2 billion in
net profit on RUR23.5 billion in revenues, compared to RUR7.9
billion in net profit on RUR17.4 billion in revenues for the
same period in 2005.   As of June 30, 2006, OAO Novatek had
RU80.5 billion in total assets, RUR17.2 billion in total
liabilities and RUR63.3 billion in total equity.

                        *     *     *

As reported in TCR-Europe on March 21, Standard & Poor's
Services assigned its 'BB-' long-term corporate credit rating to
OAO Novatek, Russia's largest independent gas producer.  S&P
said the outlook is stable.


NOVOLIPETSK STEEL: Unveils Trading Update for Third Quarter 2006
----------------------------------------------------------------
OJSC Novolipetsk Steel released its regular trading update for
the third quarter 2006.

Third quarter 2006 was marked by a substantial increase in steel
production compared with the same period in 2005.  The greater
volumes of high value-added products combined with decrease in
hot-rolled steel production on q-o-q basis have resulted in
improved sales mix.

Despite a slight decrease in pig iron and crude steel production
during Q3 2006 compared to Q2 2006, the production of high
value-added products increased during the reporting period. The
reduction of pig iron and crude steel production is explained by
planned midyear maintenance activities.  The decrease in
production at DanSteel A/S in Q3 2006 compared to previous
quarter is also attributable towards planned maintenance
activities.

As for NLMK's mining and coke-chemical segments, iron ore
concentrate, coking coal and coke production in Q3 2006 rose
compared to both Q2 2006 and Q3 2005.

The favorable market environment during Q3 2006 resulted in
growing prices for most of company's products in comparison with
the previous quarter.  The company's average prices throughout
the product portfolio in Q3 2006 were higher than during Q3
2005.

                           Outlook

NLMK's consolidated sales revenue in the third quarter 2006 will
benefit from rising steel prices compared with the second
quarter 2006 and third quarter 2005.  In addition, Q3 2006 sales
revenue will reflect the consolidation of VIZ-Stal since mid-
August 2006.

The increase in the company's average prices combined with
greater volumes of high value-added products in Q3 2006 will
result in improved operating profit compared with the previous
quarter.  In Q4 2006 [the company] expects the market to
stabilize although there is a possibility that prices may
decline.

NLMK will announce its U.S. GAAP results for the nine months
ended Sept. 30, 2006 in the first week of December.

Full copy of NLMK's trading update for third quarter 2006 may be
viewed at no charge at: http://researcharchives.com/t/s?1383

                       About the Company

Headquartered in Lipetsk, Russia, Novolipetsk Steel (NLMK) --
http://www.nlmksteel.com/- manufactures pig iron, slabs, hot-
rolled steel, and a variety of value-added steel products, such
as cold-rolled sheet, electrical steel and other specialty flat
products.

The group entered the Danish steel market in the first quarter
of 2006 by acquiring a 100% stake at DanSteel A/S.

                        *     *     *

As reported in TCR-Europe on July 14, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Russia-
based steelmaker OJSC Novolipetsk Steel to 'BB+' from 'BB'.  S&P
said the outlook is stable.  The Russia national scale rating
was also raised to 'ruAA+' from 'ruAA'.

"The upgrade reflects the company's continuing strong
performance and conservative financial policies," said Standard
& Poor's credit analyst Tatiana Kordyukova.


OKTYABRSKIY LEATHER-SHOE: Z. Sattarova to Manage Assets
-------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Ms. Z.
Sattarova as Insolvency Manager for OJSC Oktyabrskiy Leather-
Shoe Factory (TIN 0265023388, OGRN 1030203314217).  She can be
reached at:

         Z. Sattarova
         Initsiativnaya Str. 12
         Kirillovo
         Ufimskiy Region
         450069 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A07-24525/05-G-FLE.

The Arbitration Court of Bashkortostan Republic is located at:

         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan Republic
         Russia

The Debtor can be reached at:

         OJSC Oktyabrskiy Leather-Shoe Factory
         Sadovoye Koltso, 1
         Oktyabrskiy
         452600 Bashkortostan republic
         Russia


OMSK-CARRIAGE-FACTORY: Bankruptcy Hearing Slated for Dec. 5
-----------------------------------------------------------
The Arbitration Court of Omsk Region will convene at 11:00 a.m.
on Dec. 5 to hear the bankruptcy supervision procedure on OJSC
Omsk-Carriage-Factory.  The case is docketed under Case No.
A46-9729/2006.

The Temporary Insolvency Manager is:

         A. Volodin
         Post User Box 7
         Nikolsko-Arkhangelskoye
         Balashikhinskiy Region
         143956 Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Omsk-Carriage-Factory
         Krasnyj Per. 2
         644020 Omsk Region
         Russia


PIKE: Chuvashiya Court Names V. Minyunin to Manage Assets
---------------------------------------------------------
The Arbitration Court of Chuvashiya Republic appointed Mr. V.
Minyunin as Insolvency Manager for OJSC Novocheboksarskaya
Factory Pike (TIN 2124002117/KPP 212401001).  He can be reached
at:

         V. Minyunin
         Petrova Str. 6
         Cheboksary
         428020 Chuvashiya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A79-1627/2005.

The Debtor can be reached at:

         OJSC Novocheboksarskaya Factory Pike
         10 Pyatiletki Str. 23
         Novocheboksarsk
         Chuvashiya Republic
         Russia


ROSNEFT OAO: Raises Oil Production by 8.4% in First Nine Months
---------------------------------------------------------------
The Board of Directors of OAO Rosneft has confirmed the results
of its operations and business activities for the first nine
months of 2006.

With respect to the same period in 2005, in the first nine
months of 2006, the Company increased oil production by 8.4% and
gas production by 7.2%.  These increases were significantly
ahead of average industry growth.  

In total, Rosneft produced 59.4 million tons of oil and gas
condensate (0.4% above the planned level) and 10.1 billion cubic
meters of gas (0.4% above the planned level).  Average daily oil
production during the first nine months of 2006 stood at 217,700
tons versus the planned level of 216,800 tons and the 200,800
tons per day produced during the same period in 2005.  
Production growth was the result of an increased average well-
flow from 13.9 tons per day to 15 tons per day, which includes
an average increase at new wells from 76.6 tons per day to 105.4
tons per day.

In the first nine months of 2006, approximately 3,700 work-over
operations were performed, which resulted in an additional 6.1
million tons of oil produced -- an increase of 39% over the
figure for the same period in 2005.

In the first nine months of 2006, the Company sold 40.2 million
tons of crude oil and gas condensate, which is 21.9% higher than
during the same period in 2005.  This increase is primarily due
to increased oil and gas condensate deliveries to the Caspian
Pipeline Consortium (a 2.3-fold increase), the De-Kastri port (a
1.67-fold increase, which includes oil from Sakhalin-1), and to
China (a 2.1-fold increase).

In January-September 2006, 17.7 million tons of the Company's
oil were refined at Russian refineries (a 10.8% increase over
the same period in 2005).  At the Company's own refineries, 8
million tons of oil were refined (an increase of 3.6% over the
same period in 2005).  At third-party refineries 9.6 million
tons of oil were refined (an increase of 17.7%), and 0.1 million
tons of oil were refined at mini refineries (an increase of
1.4%).

A total of 17.2 million tons of oil products were sold in
January-September 2006, an 8.5% increase over the first nine
months of 2005.  Exports accounted for 9.9 million tons of oil
product sales (103.9%, of the figure for the same period in
2005), and 7.3 million tons were sold to the domestic market
(115.5% of the figure for the same period in 2005).  The
Company's marketing network sold 4.65 million tons of oil
products.

                        About Rosneft

Headquartered in Moscow, Russia, OAO Rosneft --
http://www.rosneft.ru/eng-- produces and markets petroleum
products.  The Company explores for, extracts, refines and
markets oil and natural gas.  Rosneft produces oil in Western
Siberia, Sakhalin, the North Caucasus and the Arctic regions of
Russia.

                        *     *     *

As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings
Services raised its long-term corporate credit and senior
unsecured debt ratings on Russia-based OJSC Oil Company Rosneft
to 'BB' from 'B+'.  S&P said the outlook is stable.


SUAL GROUP: Obtains US$16-Mln Investment for New ScovO Plant
------------------------------------------------------------
SUAL Group has commissioned a new ScovO plant to produce non-
stick aluminium cookware.  Investments in the project have been
worth US$16 million.

The ScovO plant is located four kilometers from the town of
Stupino, Moscow Region, and was built in 15 months.  The plant
expects to produce 500,000 units in 2006.  In 2007 the plant
will begin producing cookware at full capacity at 5.5-6 million
units per year.  This will help SUAL to more than double the
volume currently produced by Demidovsky Consumer Goods.  SUAL
expects that by 2009 the two plants will produce 10 million
units of a wide range of non-stick aluminium cookware -- from
mass-market to premium-market goods.

In order to use the best global experiences on working with non-
stick coating, the company invited Du Pont and Akzo Nobel to
advise on the process of building the equipment.  In the future
they will partner with ScovO and provide the non-stick coating
to the plant.  The main raw materials for the plant will be
delivered from three leading Russian manufacturers of aluminium
semi-finished products: Kamensk-Uralsky Metallurgical Plant,
Samara Metallurgical Plant and Stupino Metallurgical Plant.  The
ScovO plant will be certified under the ISA 9001:2000 quality
management system and the ISO 14001 environmental management
system.

"The commissioning of SUAL Group's new enterprise for the
downstream business unit is in line with its strategy to focus
on manufacturing value-added products," Vladimir Skornyakov,
SUAL Holding Senior Vice President, said.  "The downstream
production of aluminium culminates the work of all the
production divisions and serves our final goal of creating
ready-made consumer goods, supplying the Russian domestic market
with high-quality products."

"The ScovO plant will become a leader in Russian industry in
terms of productivity and the variety of technologies used to
apply non-stick coating as well as in terms of design and
quality, which is especially important for our customers,"
Inessa Smirnova, general director of the ScovO plant and
Demidovsky Consumer Goods and project supervisor, said.  "The
new plant is comparable with the leading West European producers
of non-stick aluminium cookware in terms of the high quality and
advanced technologies of production.  The new design, a wide
variety of colours and the high quality of the cookware meet the
increasing requirements of Russian consumers."

Demidovsky Consumer Goods (Kamensk-Uralsky, Sverdlovsk Region)
is a leading Russian producer of matte, polished and non-stick
aluminium cookware, which is incorporated in SUAL Group.  It was
established in October 2000.

Demidovsky Consumer Goods was the first in Russia to receive a
license by the U.S. Du Pont for the production of cookware with
world-famous non-stick coatings Teflon Classic and Teflon
latinum.  The plant's production, manufactured under the ScovO
trademark has won numerous Russian national competitions,
including "Commodity of the Year" and "100 Best Russian
Commodities."

                         About SUAL

Headquartered in Moscow, Russia, Siberian-Urals Aluminium
Company -- http://www.sual.com/-- produces and smelts aluminium
and ranks amongst the world's top ten producers.  It comprises
18 businesses that are located in nine Russian regions and in
Ukraine, Zaporozhye City, are involved in the production of
bauxite, alumina, primary aluminium, silicon, semi-finished and
finished aluminium products.  The Group's revenue for the year
ended Dec. 31, 2005, was US$2.7 billion.  It has 60,000
employees.

                        *     *     *

Standard & Poor's Ratings Services assigned its 'BB-'long-term
corporate credit rating to SUAL International Ltd. The outlook
is stable.  Standard & Poor's also assigned its 'ruAA-' Russian
national scale rating to SUAL.

At the same time, Moody's Investors Service, assigned 'Ba3'
corporate family rating to SUAL International Ltd. Outlook is
stable.


TATNEFT OAO: Extends GDR Facility's Certification Date
------------------------------------------------------
OAO Tatneft has extended to Nov. 15, 2006 the first
"Certification Date" designated under its Amended and Restated
Deposit Agreement, dated as of July 10, 2006, between the
Company, The Bank of New York, as Depositary, and owners and
beneficial Owners of Global Depositary Receipts.

As before, the ordinary shares of the Company underlying all
GDRs except those beneficially owned by persons who, on or
before the extended Certification Date,

   -- have certified that they are not "resident in the United
      States" or

   -- have certified that they are "qualified institutional
      buyers" and have been approved by the Company,

will be sold by the Depositary outside the United States
pursuant to Regulation S under the U.S. Securities Act of 1933,
as amended, and, upon completion of those sales, the proceeds of
those sales will be transferred to the beneficial holders of
such GDRs on the terms and conditions of the Deposit Agreement.  

The certification process will be administered by the
Depositary. Owners and beneficial owners of GDRs may withdraw
the ordinary shares of the Company evidenced by their GDRs at
any time prior to the earlier of the extended Certification Date
and the date on which they provide to the Depositary the
certification described above.1*

                     About the Company

Tatneft JSC explores for, produces, refines and markets crude
oil.  The company operates a chain of retain gasoline filling
stations and exports some of its petrochemical products to
former Soviet Union countries and Europe.

                        *     *     *

As reported in TCR-Europe on Aug. 28, Standard & Poor's Ratings
Services withdrew its 'B-' long-term corporate credit rating on
Russia-based oil company Tatneft OAO.  The rating had been
placed on CreditWatch with negative implications on April 14,
due to a continuing lack of consistent information on the
company's financial position.

On Aug. 3, 2006, Fitch Ratings revised Tatneft's Long-Term
Issuer Default Rating to 'B' and affirmed the group's 'B' Short
Term Rating.


THEMIS: Udmurtiya Court Names A. Kolpakov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Udmurtiya Republic appointed Mr. A.
Kolpakov as Insolvency Manager for CJSC Legal Company Themis
(TIN 1831056653).  He can be reached at:

         A. Kolpakov
         Elektrozavodskaya Str. 6
         Sarapul
         427962 Udmurtiya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A71-004947/2006-G2.

The Arbitration Court of Udmurtiya Republic is located at:

         Lomonosova Str. 5
         Izhevsk
         426004 Udmurtiya Republic
         Russia

The Debtor can be reached at:

         CJSC Legal Company Themis
         K. Marksa Str. 191a
         Izhevsk
         426000 Udmurtiya Republic
         Russia


USOLYE-GLUE-FACTORY: Court Names N. Vlasenko to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Irkutsk Region appointed Mr. N.
Vlasenko as Insolvency Manager for OJSC Usolye-Glue-Factory (TIN
3819001362).  He can be reached at:

         N. Vlasenko
         Post User Box 161
         664025 Irkutsk-25
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A19-45509/05-29.

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         OJSC Usolye-Glue-Factory
         Usolye-Sibirskoye 3
         665470 Irkutsk Region
         Russia


UYAN: Irkustk Court Names I. Kolotilin as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Irkustk Region appointed Mr. I.
Kolotilin as Insolvency Manager for OJSC Uyan.  He can be
reached at:

         I. Kolotilin
         Post User Box 74
         664046 Irkustk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A19-8215/06-37.

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         OJSC Uyan
         Uyan
         Kuytunskiy Region
         665312 Irkustk Region
         Russia


VOLZHSKIY BAKERY: Court Names V. Chalyj as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Mariy El Republic appointed Mr. V.
Chalyj as Insolvency Manager for OJSC Volzhskiy Bakery (TIN
1216013981).  He can be reached at:

         V. Chalyj
         Post User Box 6
         Yoshkar-Ola
         424006 Mariy El Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-38-11/95-06.

The Debtor can be reached at:

         OJSC Volzhskiy Bakery
         Lenina Str. 65
         Volzhsk
         Mariy El Republic
         Russia


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


CULLIGAN INT'L: Loan Repayment Cues S&P to Lift Rating to BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its loan and recovery
ratings on Culligan International Co.'s US$325 million senior
secured credit facility.  The secured loan rating was raised to
'BB-' from 'B+' and the recovery rating was revised to '1',
indicating a high expectation for full recovery of principal in
the event of a payment default, from the previous recovery
rating of '3'.
     
At the same time, Standard & Poor's affirmed its other ratings
on Culligan, including the 'B+' corporate credit rating. The
rating outlook is stable.  Total debt outstanding at Northbrook,
Ill.-based Culligan was approximately US$453.9 million at
June 30, 2006, excluding operating leases.
      
"The upgrade to the loan and recovery ratings reflects
Culligan's recent US$40 million repayment of term loan debt and
the increased likelihood that the enterprise value of the
company under a payment default scenario would provide senior
lenders with full recovery of principal," explained Standard &
Poor's credit analyst Mark Salierno.
     
The ratings on Northbrook, Ill.-based Culligan reflect:

   -- ongoing concerns regarding the company's
      underperforming North American operations,

   -- a highly competitive operating environment, and

   -- a leveraged financial profile.  

These factors are partly mitigated by:

   -- the company's extensive distribution network,

   -- recurring revenue streams, and

   -- global presence.
     
Culligan, a leading global provider of water treatment products
and services for household and commercial applications,
participates in a highly competitive industry with modest growth
prospects.  Volume growth remains particularly slow in the North
American market.  Within the home-office-delivery (HOD) market,
competition continues to intensify, driven by mass merchandisers
and other retail outlets offering competitively priced in-home
water coolers, eroding the market share for equipment rentals.

Standard & Poor's believes that Culligan will be challenged to
increase the level of services provided in the North American
market to mitigate the declining HOD business, which represents
just less than one-quarter of the company's total sales.


===========
S W E D E N
===========


GAMESTOP CORP: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for GameStop
Corporation.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$300 million
   Sr. Floating
   Rate Notes           Ba3      B1       LGD4     60%

   US$650 million
   12% Sr. Notes        Ba3      B1       LGD4     60%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers,
not specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Grapevine, Texas, GameStop Corporation is a
video game and PC entertainment software specialty retailer.  
After the merger with Electronics Boutique it will operate
approximately 3,979 stores in the U.S., Puerto Rico, Ireland,
Australia, Canada, Denmark, Germany, Guam, Italy, New Zealand,
Norway, and Sweden.


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


LEVEL 3: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Telecommunications sector,
the rating agency confirmed its Caa1 Corporate Family Rating for
Level 3 Communications Inc.  Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default
ratings on these bonds:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. 3.5% Convert
   Notes Due 2012       Caa3     Caa2     LGD4     67%

   Sr. 11.0%
   Notes Due 2008       Caa3     Caa2     LGD4     67%

   Sr. 10.75% Euro
   Notes Due 2008       Caa3     Caa2     LGD4     67%

   6.0% Convert Sub
   Notes Due 2009       Ca       Caa3     LGD6     94%

   Sr. 2.875% Convert
   Notes Due 2010       Caa3     Caa2     LGD4     67%

   Sr. 11.5% Notes
   Due 2010             Caa3     Caa2     LGD4     67%

   Sr. 12.875% Discount
   Notes Due 2010       Caa3     Caa2     LGD4     67%

   Sr. 11.25% Euro
   Notes Due 2010       Caa3     Caa2     LGD4     67%

   Sr. 11.25% Notes
   Due 2010         Caa3     Caa2     LGD4     67%

   6.0% Convert Sub
   Notes Due 2010       Ca       Caa3     LGD6     94%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc. -- http://www.level3.com/-- is engaged in the  
communications and information services businesses.  Level 3 is
a facilities-based provider of a range of integrated
communications services.  The Company's network encompassed an
intercity network covering approximately 48,000 miles in North
America; an intercity network covering approximately 3,600 miles
across Europe; leased or owned local networks in approximately
20 European markets; approximately 6.7 million square feet of
Gateway and transmission facilities in North America and Europe.  
In Europe, Level 3 maintains operations in the United Kingdom,
France, Germany, Ireland, France and Switzerland.


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


ALFA BANK: Earns US$114.8 Million for First Half 2006
-----------------------------------------------------
Alfa Banking Group, which embodies OJSC Alfa-Bank and its
subsidiaries, released solid results for the first half of 2006,
based on audited IFRS figures.

Net profit after tax of the Group climbed 31.5% to US$114.8
million from US$87.3 million in the first half of 2005.  

Total assets grew by 25.4% to US$12.3 billion at the end of June
2006 from US$9.8 billion at the end of 2005. The key financial
ratios, such as annualized after tax return on equity and cost
to income, improved to 24.2% and 52.4% at June 2006 from 23.1%
and 52.7% at the end of December 2005 respectively.

Alfa Banking Group's total loan portfolio growth (before
provisions) grew 37.9% to US$8.2 billion, compared to US$6.0
billion as at 31 December 2005.  Outstanding results have been
achieved in the Group's corporate loan portfolio, which showed
significantly higher growth than the market. By the end of June
2006, corporate loans (before provisions) had increased by 35.0%
to US$7.9 billion, up from US$5.8 billion at the end of 2005.

Strong growth in the first half of 2006 by all the retail
banking divisions pushed Alfa Banking Group's retail loan
portfolio (before provisions) to US$364.4 million, up from just
US$145 million as at 31 December 2005. By the end of June 2006,
the total number of retail customers grew by almost 300,000 to
number approximately 1.8 million.

Funds raised by Alfa Banking Group from individuals and
corporate clients increased by 20.1% to US$6.5 billion, compared
to US$5.5 billion as at 31 December 2005.

Following the strategy of increasing diversification of funding
sources, Alfa-Banking Group has accomplished a number of
successful deals on the international debt capital markets.

In March 2006, Alfa Banking Group successfully closed its debut
US$350 million transaction for the securitization of diversified
payment rights (mainly international swift payments). This
transaction marked the first ever securitization of diversified
payment rights by a Russian institution and was also Alfa
Banking Group's first 144A offering targeting U.S. investors.

In May 2006, Alfa-Bank entered into a US$438 million trade-
related syndicated loan with a 364-day term and an option to
extend for a second year.  The deal, which was subscribed by
leading European and international banks, was the largest
syndicated loan ever for a Russian private bank.  At the end of
the reporting period Alfa Banking Group's international
borrowings totaled US$2.0 billion or 17.4% of total liabilities.

The total equity of the Group in the reporting period increased
by 21.6% to US$1.0 billion, up from US$855.8 million as at Dec.
31, 2005.

                         About Alfa Bank

Headquartered in Moscow, Russia, Alfa Bank --
http://www.alfabank.com/-- provides services in every key    
sector of the financial service industry, including corporate
banking, retail banking, investment banking, trade finance,
insurance and asset management.  Alfa-Bank's branch network has
grown to 121, including subsidiary banks in Russia, Ukraine,
Kazakhstan and the Netherlands.

In 2005 total assets of the Alfa-Bank and its subsidiaries grew
to US$9.8 billion, total equity increased to US$855.8 million,
loan portfolio net of provisions increased to US$5.7 billion.
The net profit for a year 2005 was US$180.6 million.

                        *     *     *

As reported in TCR-Europe on Oct. 6, Fitch Ratings assigned Alfa
MTN Issuance Limited's US$400 million 7.875% notes issue due
October 2009 a Long-term BB- rating.  The proceeds from the
issue will be on-lent to Alfa-Bank, rated Issuer Default BB-
/Outlook Stable, Short-term B, Support 4, Individual C/D, and
National Long-term A+/Outlook Stable.

As reported in TCR-Europe on Sept. 12, Fitch Ratings upgraded
Russia-based Alfa Bank's ratings to Issuer Default BB- from B+,
Individual C/D from D and National Long-term to A+ from A.  The
Outlooks on the Issuer Default and National Long-term ratings
remain Stable.  Alfa's other ratings are affirmed at Short-term
B and Support 4.

Alfa's outstanding senior unsecured debt issues are also
upgraded to BB- from B+ and its subordinated debt issue due
December 2015 to B+ from B-.  The two-notch upgrade of the
subordinated debt reflects the rules-based, rather than
recoveries-based, approach to assigning Recovery Ratings to
issues of entities rated BB- and above.

As reported in TCR-Europe on July 17, Moody's Investors Service
upgraded Alfa Bank's Financial Strength Rating to D from D- and
changed its outlook to stable from positive.

At the same time, the bank's Ba2 long-term foreign currency
deposit and senior unsecured debt ratings have been affirmed
with their corresponding outlooks changed to stable.  The bank's
Not-Prime short-term foreign currency deposit and debt ratings
and their outlook remain unchanged.


CLEARING HOUSE: Court Names Malvina Pidluzhna as Liquidator
-----------------------------------------------------------
The Economic Court of Kyiv Region appointed Malvina Pidluzhna as
Liquidator/Insolvency Manager for LLC Financial Company Clearing
House (code EDRPOU 30437409).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 8.  The case is docketed
under Case No. 43/619.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Financial Company Clearing House
         Mechnikov Str. 8/22
         01023 Kyiv Region
         Ukraine


CRIMEAN SALT: AR Krym Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of AR Krym Region commenced bankruptcy
supervision procedure on LLC Crimean Salt Company (code EDRPOU
31481349).  The case is docketed under Case No. 2-20/11124-2006.

The Temporary Insolvency Manager is:

         K. Kubalov
         Micro Region Koryavko, 20/116
         Armyansk
         96012 AR Krym Region
         Ukraine

The Economic Court of AR Krym Region is located at:

         Karl Marks Str. 18
         Simferopol
         95000 AR Krym Region
         Ukraine

The Debtor can be reached at:

         LLC Crimean Salt Company
         Micro Region 10, 9
         Krasnoperekopsk
         96000 AR Krym Region
         Ukraine


LEBID: Hmelnitskij Court Starts Bankruptcy Supervision
------------------------------------------------------
The Economic Court of Hmelnitskij Region commenced bankruptcy
supervision procedure on Production-Commercial Enterprise Lebid
(code EDRPOU 14169263) on Aug. 14.  The case is docketed under
Case No. 13/192-B.

The Temporary Insolvency Manager is:

         Valentin Ivashuk
         Kurchatov Str. 13/1-92
         Hmelnitskij Region

The Economic Court of Hmelnitskij Region is located at:

         Nezalezhnosti Square 1
         29000 Hmelnitskij Region
         Ukraine

The Debtor can be reached at:

         Production-Commercial Enterprise Lebid
         Ivan Franko Str. 28
         Hmelnitskij Region
         Ukraine


PETROVETS: Herson Court Names Leonid Galka as Insolvency Manager
----------------------------------------------------------------
The Economic Court of Herson Region appointed Leonid Galka as
Liquidator/Insolvency Manager for Production-Commercial Company
Petrovets (code EDRPOU 24945610).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on July 27.  The case is docketed
under Case No. 5/44-B-06.

The Economic Court of Herson Region is located at:

         Gorkij Str. 18
         73000 Herson Region
         Ukraine

The Debtor can be reached at:

         Production-Commercial Company Petrovets
         Tiraspilska Str. 1
         73000 Herson Region
         Ukraine


ROMASHKA: Court Names Yurij Gorodchuk as Insolvency Manager
-----------------------------------------------------------
The Economic Court of Ivano-Frankivsk Region appointed Yurij
Gorodchuk as Liquidator/Insolvency Manager for State Enterprise
Drugstore Romashka (code EDRPOU 22176538).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
B-14/376.

The Economic Court of Ivano-Frankivsk Region is located at:

         Shevchenko Str. 16a
         76000 Ivano-Frankivsk Region
         Ukraine

The Debtor can be reached at:

         State Enterprise Drugstore Romashka
         Galitska Str. 20
         Bludniki
         Galitskij District
         77100 Ivano-Frankivsk Region
         Ukraine


SELIDIVVUGLEPOSTACHZBUT: E. Lesnikov to Liquidate Assets
--------------------------------------------------------
The Economic Court of Donetsk Region appointed Mr. E. Lesnikov
as Liquidator/Insolvency Manager for Selidivvuglepostachzbut
(code EDRPOU 24806713).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Aug. 17.  The case is docketed
under Case No. 42/90 B.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         Selidivvuglepostachzbut
         Karl Marks Str. 41-A
         Selidove
         85400 Donetsk Region
         Ukraine


TARAS: Ternopil Court Starts Bankruptcy Supervision
---------------------------------------------------
The Economic Court of Ternopil Region commenced bankruptcy
supervision procedure on CJSC Taras (code EDRPOU 30910868).  The
case is docketed under Case No. 10/b-775.

The Temporary Insolvency Manager is:

         Vasil Taras
         Rodini Barvinskih Str. 7
         Ternopil Region
         Ukraine

The Economic Court of Ternopil Region is located at:

         Ostrozski Str. 14a
         46000 Ternopil Region
         Ukraine

The Debtor can be reached at:

         CJSC Taras
         Shumbar
         Shumskij District
         Ternopil Region
         Ukraine


ZORYA: Ternopil Court Starts Bankruptcy Supervision
---------------------------------------------------
The Economic Court of Ternopil Region commenced bankruptcy
supervision procedure on Agricultural LLC Zorya (code EDRPOU
03782380).  The case is docketed under Case No. 15/B-562.  

The Temporary Insolvency Manager is:

         F. Monastirskij
         Cherneliv-Ruskij
         Ternopil District
         Ternopil Region
         Ukraine

The Economic Court of Ternopil Region is located at:

         Ostrozski Str. 14a
         46000 Ternopil Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Zorya
         Cherneliv-Ruskij
         Ternopil District
         Ternopil Region
         Ukraine


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


AAR CORP: Improved Credit Protection Cues S&P to Raise Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on
Dale, Ill.-based aviation support services provider AAR Corp.,
including the corporate credit to 'BB' from 'BB-'.  The outlook
is stable.  About US$300 million of debt is outstanding
(excluding US$30 million of nonrecourse debt).

"The upgrade is based on improved credit protection measures,
benefiting from generally better industry environment, expanding
scope of services, and increasing operating efficiency," said
Standard & Poor's credit analyst Roman Szuper.
     
The global airline industry continues to recover in 2006,
spurred by a healthy economy and growing air traffic, although
high oil prices have constrained gains at many air carriers.
Profit increases in 2005 and 2006 and conversion of debt to
equity strengthened credit protection measures to levels overall
appropriate for the rating


AIRBUS SAS: EADS Hikes Airbus Stake to 100% After BAE Stake Buy
---------------------------------------------------------------
The European Aeronautic Defence and Space Company (EADS) N.V.
acquired from BAE Systems its 20 percent stake in Airbus SAS for
EUR2.75 billion.

This value was determined by an independent expert during the
put option process which was launched by BAE Systems in June
2006.  EADS paid in cash from the group's existing resources.  
EADS is therefore now the sole owner of Airbus.

The closing of the deal came a week after Christian Streiff
resigned as Airbus CEO and member of the EADS Executive
Committee.  Louis Gallois has replaced Mr. Streiff, while
keeping his post as co-executive at EADS.

                           BAE Sale

On July 2, Rothschild valued BAE's stake at GBP1.9 billion
(EUR2.75 billion), well below the expectation of BAE, analysts
and even EADS.   A few days after, BAE appointed independent
auditors to study why the value of its share of Airbus had
fallen from the original estimates to the Rothschild valuation.  
On Sept. 6, BAE agreed to sell its stake in Airbus to EADS for
GBP1.87 billion (EUR2.75 billion or US$3.53 billion), pending
BAE shareholder approval.  On Oct. 4, shareholders voted in
favor of the sale.

                        A380 Delays

On June 2, 2006, co-CEO Noel Forgeard and Airbus CEO Gustav
Humbert resigned following the controversy caused by the
company's June 2006 announcement that deliveries of the A380
would be delayed by a further six months.  Mr. Forgeard was also
under pressure due to the fact that he had sold EADS stock weeks
before the A380 announcement, which caused a 26% slump in the
share price.  A French shareholder group filed a class action
lawsuit against EADS in a Dutch court for failing to inform
investors of the financial implications of the A380 delays while
airlines to which deliveries were promised are expected to
demand compensation.

The delays are caused by Airbus's failure to provide uniform
software to aircraft design teams.

On Oct. 3, Airbus informed its A380 customers about a further
delay in the delivery schedule of the A380.  According to the
revised plan, the first A380 will be delivered in October 2007.  
Thirteen more will be delivered in 2008 and 25 in 2009.  The
industrial ramp-up will be completed in 2010, when 45 A380s are
going to be delivered.  The company said the postponement will
cut profit at EADS by EUR4.8 billion (GBP3.2 billion) through to
2010.

                      Profit Expectations

According to Russell Hotten of The Telegraph early this month,
EADS is now predicting a EUR2.8 billion profit shortfall over
four years on top of the EUR2 billion disclosed in June.  It has
also disclosed up to EUR2 billion in annual cost-savings measure
and is taking provisions for penalties to airlines, Mr. Hotten
relates.

Mr. Streiff has previously disclosed job cuts and other
measures, including changes in production that could see
manufacturing moved between Hamburg and Toulouse in an effort to
cut costs.

               Job Cuts in Germany Begin, Source Says

According to Financial Times Deutschland citing an unidentified
source, Airbus has already begun to cut jobs in Germany with
several posts filled by temporary workers terminated or not
extended.  Airbus executives in Germany and workers'
representatives are continuing negotiations, the source tells FT
Deutschland.  Airbus has seven plants in Germany.

Headquartered in Toulouse, France, Airbus S.A.S. --
http://www.airbus.com/en-- is a leading aircraft manufacturer  
in Europe with around 55,000 people employed at sixteen sites in
Germany, France, Spain and the United Kingdom.


ALERIS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Aleris International, Inc., and its Ba3 rating on the company's
US$400 million issue of senior secured term loan.  Moody's also
assigned an LGD3 rating to those loans, suggesting noteholders
will experience a 32% loss in the event of a default.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on Aleris
Deutschland Holding GMBH's loans obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$250 Million
   Gtd. Senior
   Secured Term Loan      Ba3      Ba3     LGD3       34%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures    
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The Company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.  The
Company operates 50 production facilities in North America,
Europe, South America and Asia, and employs approximately 8,600
employees.


ALLIANCE ATLANTIS: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American diversified media sector, the
rating agency confirmed its Ba2 Corporate Family Rating for
Alliance Atlantis Communications Inc.  Additionally, Moody's
revised its probability-of-default ratings and assigned loss-
given-default ratings on these loans:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. Secured
   Term Loan A
   due 12/09             Ba2      Ba1      LGD2

   Sr. Secured
   Term Loan C
   due 12/11             Ba2      Ba1      LGD2

   Revolving Credit
   Facility
   due 12/09             Ba2      Ba1      LGD2

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alphanumeric scale.  They express Moody's opinion of the
likelihood that any entity within a corporate family will
default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Ontario, Canada, Alliance Atlantis
Communications Inc. -- http://www.allianceatlantis.com/--  
broadcasts, creates and distributes filmed entertainment
content.  The Company offers Canadians 13 specialty television
channels with targeted, programming.  The Company also co-
produces and distributes Crime Scene Investigation (CSI)
franchise and indirectly holds a 51% limited partnership
interest in Motion Picture Distribution LP, a distributor of
motion pictures in Canada, with a presence in motion picture
distribution in the United Kingdom and Spain.


BANCA COMERCIALA: Erste Bank Completes 61.8% Equity Purchase
------------------------------------------------------------
Erste Bank der oesterreichischen Sparkassen AG (Erste Bank)
completed the acquisition of Banca Comerciala Romana S.A. for
EUR3.75 billion.

Erste Bank has acquired 61.8% of BCR's shares from:

   -- a 36.8% stake from the Romanian government;

   -- 12.5% + 1 share from the European Bank for Reconstruction
      and Development; and

   -- 12.5% + 1 share from the International Finance Corp.

The funds were transferred Oct. 12 with Citibank acting as
escrow agent.  The closing of the acquisition marks the
completion of a two-stage privatization process in which nine
European banks originally competed.

"We shall start to implement our ambitious new business plan
tomorrow.  Within the next 12 months, our clients will start to
feel the benefits of BCR's membership in our group through new
products and services provided at EU-quality-standards," said
Andreas Treichl, CEO of Erste Bank.  "With our already
established EU offices we want to help our clients to get access
to EU funds on favourable terms, in order to develop their
business fast," added Mr. Treichl.

New Shareholders' Structure (in %)

                                 Old       New   
                                -----     -----
   Romanian government          36.9        --
   EBRD                         12.5        --
   IFC                          12.5        --
   Erste Bank                    --        61.9
   SIFs                         30.1       30.1
   Employees                     8.0        8.0

With the purchase of BCR, Erste Bank Group adds Romania, one of
the strongest growth markets in the region, to its existing
network in Austria, the Czech Republic, Slovakia, Hungary,
Croatia, Serbia and Ukraine.  With a new total of over 15.6
million customers the Group will significantly strengthen its
position as one of the leading financial institutions in Central
and Eastern Europe, operating in a market with almost 120
million inhabitants with a retail market share of some 15%.

                   Supervisory Board Changes

As of Oct. 12, Erste Bank CEO Mr. Treichl has assumed his
function as the new chairman of the Supervisory Board.  Manfred
Wimmer, head of Group Program Management of Erste Bank, was
appointed as vice chairman of the Supervisory Board.  The other
new members of the Supervisory Board, nominated by Erste Bank,
are:

   -- Christian Coreth (Board member of Erste Bank responsible
      for risk management); and

   -- Herbert Juranek (Head of Group IT of Erste Bank),

thus replacing former members of AVAS (Gheorghe Ionescu and
Joszef Birtalan), EBRD (Oliver Greene) and IFC (Thomas
Krayenbuehl).

The former chairman of the Supervisory Board, Daniel Daianu,
agreed to remain as a member of the Supervisory Board.  Teodor
Mihaescu (SIF Muntenia) and Mr. Mihai Fercala (SIF Transilvania)
will continue to represent the SIFS on the Supervisory Board.

With an average real gross domestic product growth of 6.1%
between 2002 and 2004, a GDP per capita of around EUR2,700 in
2004 (compared to EUR 29,000 in Austria) and a ratio of deposits
to GDP of 24 % (compared to 89 % in Austria), Romania is
significantly less developed than the economies and banking
markets of EU countries.  Erste Bank is convinced that such a
low level of banking penetration will result in a substantial
long-term growth potential as the Romanian market converges with
the more developed parts of Europe.  Considerable growth
potential is expected in corporate banking, consumer credit,
savings deposits, bankcards and asset management.

                        About the EBRD

The European Bank for Reconstruction and Development is the
largest single investor in the region and mobilizes significant
foreign direct investment beyond its own financing.  It is owned
by 60 countries and two intergovernmental institutions.  It
provides project financing for banks, industries and businesses,
both new ventures and investments in existing companies.  It
also works with publicly owned companies, to support
privatization, restructuring state-owned firms and improvement
of municipal services.  The Bank uses its close relationship
with governments in the region to promote policies that will
bolster the business environment.

                      About Erste Bank

Headquartered in Vienna, Austria, Erste Bank is a retail bank in
Central Europe with operations in Austria, Croatia, the Czech
Republic, Hungary, Romania, Serbia, and Slovakia.


BANCA COMERCIALA: Fitch Affirms Individual Rating at C/D
--------------------------------------------------------
Fitch Ratings has upgraded Romania-based Banca Comerciala
Romana's ratings to Issuer Default 'A-' (A minus) from 'BBB-',
Short-term 'F2' from 'F3' and Support '1' from '2'.  The Rating
Watch Positive on these ratings has been removed.  The
Individual rating is affirmed at 'C/D'.  A Stable Outlook is
assigned to the Issuer Default rating.

This action follows the completion of the acquisition of a
majority stake in BCR by Austria-based Erste Bank der
oesterreichischen Sparkassen.  The Issuer Default, Short-term
and Support ratings reflect the extremely high potential support
available to BCR from new majority shareholder Erste Bank.

Erste Bank has a strong franchise in Central and Eastern Europe,
and the area represents around half of Erste Bank's pre-tax
profit.

"Romania is attractive to Erste Bank due to its large population
and low banking penetration," says Tim Beck, Director in Fitch's
Financial Institutions Group.  "The market has attractive growth
prospects, and BCR, with its large franchise, is well placed to
benefit from this."

Erste Bank has acquired 61.9% of BCR, the stakes previously held
by the Romanian Government as well as EBRD and IFC.  The
remaining shares are owned by private Romanian investment
companies (30.1%) and employees of BCR (8%).

Banca Comerciala Romana is the largest bank in Romania and
accounts for approximately 26% of the banking system's assets.


BANK SAINT PETERSBURG: Fitch Places Individual Rating at D
----------------------------------------------------------
Fitch Ratings has assigned Russia's Bank Saint Petersburg
ratings of Issuer Default 'B', Short-term 'B', Individual 'D'
and Support '5'.  The Outlook for the Issuer Default rating is
Stable.

The ratings reflect BSP's large exposure to the real estate and
construction sectors and high individual borrower
concentrations, which may lead to losses and liquidity
constraints in the event of an economic downturn or any serious
price correction in the real estate market.  Stronger
capitalization would be required to absorb any such shock.  At
the same time, the ratings also consider BSP's sound earnings
performance underpinned by a solid net interest margin, good
local brand recognition, significant regional franchise, low
levels of loan impairment to date and acceptable loan loss
reserves.

Upward movement in the IDR is viewed by Fitch as unlikely in the
near term and would be possible if BSP diversifies its loan
portfolio by reducing exposure to high risk industries and
strengthens its capital base, or if the Russian operating
environment significantly improves.  Near-term equity-raising
plans are currently being determined, and any marked
deterioration in the bank's modest capital position resulting
from continued strong growth could put downward pressure on the
ratings.

BSP is a mid-sized Russian bank with a large presence in St.
Petersburg and the surrounding region.  The franchise is
currently focused primarily on serving local corporates, in part
by leveraging a close relationship with the St. Petersburg City
administration, although retail lending is also targeted to
grow.  The bank is ultimately controlled by senior management,
including the Chairman, Alexander Saveliev (50.6%), with most of
the remainder owned by two groups of local investors.


BRITISH AIRWAYS: Continuing Union Talks Over Pension on Oct. 23
---------------------------------------------------------------
The GMB union claims a possibility of averting a strike action
over British Airways pension scheme, PersonnelToday.com reports.

Ed Blissett, GMB National Officer representing BA staff said,
"Whil[e] there is the glimmer of a possibility of reaching a
settlement we did not make that much progress.  GMB will keep
talking but we have a long, long way to go.  GMB is very
disappointed that BA has rejected our proposal for a GBP50,000
cap on every pension members' annual pension."

The parties will reconvene on Oct. 23 to continue the
discussions.

                       Pension Plan Proposal

As reported in the TCR-Europe on Oct. 4, the actuarial deficit
in British Airways PLC New Airways Pension Scheme is set to rise
from GBP928 million to some GBP2.1 billion, despite a doubling
of BA's contributions and a recovery of the stock market.

The trustees have confirmed that annual contributions of GBP497
million would be needed to fund the scheme unless changes to
future benefits proposed earlier this year are introduced.  This
means the company's contributions would go up from five to 12
times members' contributions.

The proposed changes include:

   -- raising the normal retirement age to 65;
   -- a slower accrual rate;
   -- inflation capped pensionable pay increases;
   -- capped pension increases on retirement at 2.5%; and
   -- sharing the impact of changes in life expectancy.

The proposal keeps a final salary scheme with no increase in
staff contribution rates and no changes to pension benefits
already earned.  Once the changes are accepted, BA proposes to
make a GBP500 million one-off payment to the scheme.

Independent financial analysis from PricewaterhouseCoopers for
the trustees led them to conclude that company contributions
'much in excess of the current levels may not be sustainable'.

In a letter to NAPS members in July, the trustees said BA could
not afford to use all its cash reserves to pay off all the
deficit because it would put the "long term viability of BA in
jeopardy".  "Reductions to future benefits were also likely to
be required to help reduce the deficit," they added.

                        About the Company

Headquartered in West Drayton, England, British Airways Plc --
http://www.ba.com/-- is the U.K.'s largest international  
scheduled airline, flying to over 550 destinations.  The British
Airways group consists of British Airways Plc and a number of
subsidiary companies including in particular British Airways
Holidays Limited and British Airways Travel Shops Limited.

                        *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


BURGER KING: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its Ba2 Corporate Family Rating and assigned its Ba3
probability-of-default rating for Burger King Corp.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$150 million
   Sr. Sec. Revolver
   due 2011               Ba2      Ba2    LGD3        35%

   US$250 million
   Sr. Sec. Term
   Loan A due 2011        Ba2      Ba2    LGD3        35%

   US$1100 Sr. Sec.
   Term Loan B
   due 2012               Ba2      Ba2    LGD3        35%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/--  
operates more than 11,100 restaurants in all 50 states and in
more than 65 countries and U.S. territories including Austria,
Cyprus, Denmark, France, Norway, Portugal, Spain, Sweden,
Switzerland, Turkey, Italy, Iceland, Germany, Malta, and
Hungary.  Approximately 90% of Burger King restaurants are owned
and operated by independent franchisees, many of them family-
owned operations that have been in business for decades.


CAPITA CENTRES: Names David Nimmo McFarlane Liquidator
------------------------------------------------------
David Nimmo McFarlane of Cowan & Partners CA was appointed
Liquidator of Capita Centres (U.K.) Limited on Sept. 22 for the
creditors' voluntary winding-up procedure.

The company can be reached at:

         Capita Centres (U.K.) Limited
         St. Andrew Square
         Edinburgh
         Midlothian EH2 2AF
         United Kingdom
         Tel: 0131 475 4000
         Fax: 0131 475 4080


CHATTEM INC: Earns US$15.2 Million in Third Quarter 2006
--------------------------------------------------------
Chattem Inc. disclosed financial results for the third fiscal
quarter and nine months ended August 31, 2006.

                Third Quarter Financial Results

Total revenues for the third quarter of fiscal 2006 increased 6%
to US$72 million from total revenues of US$68.2 million in the
prior year quarter.  Total revenues increased 9% over the third
quarter of fiscal 2005 excluding sales of pHisoderm, which was
divested in Nov. 2005.  Revenue growth for the quarter was
driven by the continued strength of the Gold Bond(R) franchise,
up 24%; the Dexatrim(R) franchise, up 42%; the BullFrog(R)
franchise, up 9%; along with incremental sales growth from Icy
Hot(R) Pro-Therapy(TM) and Selsun(R) Salon(TM).

Net income in the third quarter of fiscal 2006 was US$15.2
million, compared to US$9.4 million in the prior year quarter.  
Net income in the third quarter of fiscal 2006 included a net
recovery related to the Dexatrim litigation settlement and SFAS
123R employee stock option expense.  Net income for the third
quarter of fiscal 2005 included legal expenses related to the
Dexatrim litigation settlement and a severance charge.  As
adjusted to exclude these items, net income for the third
quarter of fiscal 2006 was US$8.9 million, compared to US$11.3
million in the prior year quarter.

              Nine-Month Period Financial Results

For the first nine months of fiscal 2006, total revenues were
US$235.4 million, compared to total revenues of US$215.4 million
in the prior year period, representing a 9% increase.  Total
revenues increased 13% over the prior year period excluding
sales of pHisoderm.  Revenue growth for the first nine months of
fiscal 2006 was led by the new product launches of Icy Hot Pro-
Therapy and Selsun Salon and continued growth of the Gold Bond
business.  For the first nine months of fiscal 2006, the Selsun
franchise increased 11% and the Gold Bond franchise increased
16%, as compared to the prior year period.

Net income in the first nine months of fiscal 2006 was
US$40.2 million, compared to US$33.6 million in the prior year
period.  Net income in the first nine months of fiscal 2006
included a loss on early extinguishment of debt, net recoveries
related to the Dexatrim litigation settlement and SFAS 123R
employee stock option expense.  Net income in the first nine
months of fiscal 2005 included a loss on early extinguishment of
debt, a net recovery related to the Dexatrim litigation
settlement and a severance charge.  Excluding these items, net
income in the first nine months of fiscal 2006 was US$31.6
million, compared to US$34 million in the prior year period.

                  Income Statements Highlights

Operating Metrics

   -- Gross margin for the third quarter and first nine months
      of fiscal 2006 was lower compared to the prior year
      quarter and nine month period.  The decline was largely
      attributable to the launch of Icy Hot Pro-Therapy, which
      has lower gross margins than our other products.

   -- Advertising and promotion expense increased for the third
      quarter and first nine months of fiscal 2006 compared to
      the prior year quarter and nine month period, due
      primarily to increased spending to support the Company's
      new product introductions.

   -- Selling, general and administrative expenses decreased for
      the third quarter and first nine months of fiscal 2006
      compared to the prior year quarter and nine month period
      reflecting lower restricted stock and variable
      compensation expense, offset by share-based payment
      expense under SFAS 123R.

Interest Expense

Interest expense decreased for the third quarter and first nine-
month period of fiscal 2006 as compared to the same prior year
periods as a result of the Company's retirement of the US$75
million Floating Rate Senior Notes in the first quarter of
fiscal 2006.

             Share Repurchase and Capital Resources

The Company successfully completed, on July 25, 2006, a consent
solicitation from the holders of its US$107.5 million 7% Senior
Subordinated Notes due 2014 to an amendment to the indenture.  
Relative to the consent solicitation, the Company's board of
directors authorized the repurchase of up to an additional
US$100 million of its common stock under the terms of the
Company's existing stock repurchase program.  From June 1, 2006
to Oct. 5, 2006, the Company repurchased 572,863 shares of its
common stock at an average cost of US$31.42 per share, or US$18
million in the aggregate.  As of Oct. 5, 2006 a total of US$88.1
million remains available under the Company's board authorized
stock repurchase program.

The Company's total debt less cash as of Aug. 31, 2006 was
US$134.1 million compared to US$139.4 million as of Aug. 31,
2005.

                   Dexatrim Litigation Update

The Company has resolved all of the claims submitted in the
Dexatrim PPA class action settlement and all claims have been
paid by the settlement trust that was funded by its insurance
carriers and the manufacturer of Dexatrim products containing
PPA.  The Court granted, on July 14, 2006, a motion to dissolve
the settlement trust and the Company received a payment of
US$10.7 million from the trust on Aug. 31, 2006.

Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT)
-- http://www.chattem.com/-- manufactures and markets a variety   
of branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products.  The
Company's products include Icy Hot(R), Gold Bond(R), Selsun
Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 10,
Moody's Investors Service placed Chattem Inc's corporate family
rating and senior subordinated ratings of Ba3 and B1,
respectively, under review for possible downgrade prompted by
the company's announcement that it had entered into an agreement
to acquire the U.S. rights to five leading consumer and over-
the-counter brands from Johnson & Johnson and the consumer
healthcare business of Pfizer Inc. for US$410 million in cash.  
The review for downgrade reflects the potential for
significantly increased leverage and weakened debt protection
measures as a result of this likely all-debt financed
acquisition.


CNET NETWORKS: Discloses Findings of Stock Options Investigation
----------------------------------------------------------------
CNET Networks Inc. said that a special committee of its Board of
Directors has reported its findings on the Company's options
granting practices and procedures to the Board of Directors.

As reported in the Troubled Company Reporter on May 24, the
Company's Board of Directors appointed a special committee of
independent directors to conduct an internal investigation
relating to past option grants, the timing of such grants and
related accounting matters.

The Special Committee consists of two independent members of
CNET Networks' audit committee of the Board of Directors - Peter
Currie and Betsey Nelson, chair of the audit committee.  The
Special Committee was assisted in the investigation by outside
legal counsel Davis Polk & Wardwell and accountants from
Navigant LLC.  The Special Committee reviewed and analyzed more
than 700,000 documents and emails, and conducted over thirty
interviews of current and former officers, directors, employees
and advisors to CNET Networks over the last four months.  The
Company says that the Special Committee and the Company continue
to cooperate with the Securities and Exchange Commission, the
NASD and the United States Attorney's Office for the Northern
District of California.

"The completion of the Special Committee report represents an
important step forward for CNET Networks," said Neil Ashe, the
Company's newly elected chief executive officer.  "We are
committed to ensuring that the highest standards of business
conduct, financial reporting and internal controls are
maintained, and we are focused on quickly implementing the
recommendations of the Special Committee.  Under the leadership
of our CFO, George Mazzotta, we look to complete the restatement
of historical financial statements related to past stock option
grants as soon as practicable."

Key findings of the Special Committee's report include:

    * there were deficiencies with the process by which options
      were granted at CNET, including in some instances the
      backdating of option grants, during the period from the
      Company's IPO in 1996 through at least 2003.

    * these deficiencies resulted in accounting errors, which
      the Company has previously announced will result in a
      restatement.

    * a number of executives of the Company, including the
      former CFO and the recently resigned CEO, General Counsel
      and SVP of Human Resources, bear varying degrees of
      responsibility for these deficiencies.

    * the report does not conclude that any current employees of
      the Company or any recently resigned employees engaged in
      intentional wrongdoing.

    * since 2003, the Company has taken steps to remedy these
      deficiencies through personnel changes and improved
      internal controls.  The Special Committee recommended a
      number of additional remedial measures.

    * the recently resigned executives and the directors who
      received improperly priced options have agreed voluntarily
      to have these options repriced to fair market value on the
      appropriate measurement date.

The Special Committee reported that it believes that the
Compensation Committee relied upon management to establish and
maintain appropriate procedures with respect to stock option
grants.  The report stated that it would have been better
practice if the Compensation Committee had encouraged management
to adopt more rigorous procedures and controls during the 1996-
2003 period.

The Company's co-founder and the chairman of the board and chief
executive officer from 2000 to the present, Shelby Bonnie, has
resigned as chairman and CEO but will remain a director.  The
Company's general counsel and head of Human Resources have also
resigned.

With regard to Mr. Bonnie, Mr. Jarl Mohn, chairman of the Board
of Directors, commented, "We extend our appreciation to Shelby
for his founding role and many years of service, and for his
willingness to work with the Board and the Company in assisting
with this transition.  Shelby's lasting legacy will be the
innumerable positive actions he undertook to make CNET Networks
the successful industry leader it is today."

"I apologize for the option-related problems that happened under
my leadership," said Shelby Bonnie.  "I believe that the company
has come a long way since 2003 in addressing these deficiencies,
but am deeply disappointed it happened nonetheless."

The Company and its independent auditors are reviewing the
findings of the Special Committee investigation.  Management
continues to expect that CNET Networks will need to restate its
historical financial statements to record non-cash charges for
compensation expense relating to past stock option grants.  The
Company and its independent auditors are reviewing recent
accounting guidance published by the SEC, and have not yet
determined the amount of such charges, the resulting tax and
accounting impact, or which periods may require restatement.

                       About CNET Networks

CNET Networks, Inc. (Nasdaq: CNET) --
http://www.cnetnetworks.com/-- is an interactive media company  
that builds brands for people and the things they are passionate
about, such as gaming, music, entertainment, technology,
business, food, and parenting.  The Company's leading brands
include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet
and TechRepublic. Founded in 1993, CNET Networks has a strong
presence in the US, Asia and Europe including Russia, Germany,
Switzerland, France and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
CNET Networks received a notice from the trustee under the
indenture governing the Company's US$125 million aggregate
principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file
its Form 10-Q with the trustee within fifteen days after it is
required to be filed with the SEC.  

If the default is not cured within 60 days, the bonds may be
accelerated by the holders of 25% outstanding principal amount
or the trustee.  As of June 30, 2006, the Company had
approximately US$143.3 million of cash and investments.


CNET NETWORKS: Extends Consent Solicitation for 0.75% Sr. Notes
---------------------------------------------------------------
CNET Networks Inc. modified and extended its solicitation of
consents for its outstanding US$125.0 million principal amount
of 0.75% Senior Convertible Notes due 2024.  The Company also
updated its outlook for it revenues for the third quarter of
2006 and for the full year.

            Modified and Extended Consent Offering

The consent solicitation has been modified to offer holders a
two-year extension of the call protection period so that such
period would end on April 20, 2011 rather than April 20, 2009.  
The offer, which was scheduled to expire midnight, New York City
time, on October 11, 2006, will now expire at midnight, New York
City time, on Wednesday, October 18, 2006.  The solicitation is
being made upon the terms, and is subject to the conditions, set
forth in the Company's Consent Solicitation Statement, dated
Sept. 13, 2006, and in the accompanying form of consent, as
amended by the supplement to Consent Solicitation Statement
dated October 11, 2006.  The proposed amendments and waivers
require the consent of holders of 70% of aggregate principal
amount of the notes outstanding.

Requests for additional copies of the Consent Solicitation
Statement, the Letter of Consent or other related documents
should be directed to D.F. King & Co., Inc., the information and
tabulation agent, at (800) 829-6551 (toll-free) or (212) 269-
5550 (collect).  Questions regarding the consent solicitation
should be directed to the Convertibles Sales Department of Banc
of America Securities LLC, the solicitation agent, at 800-654-
1666 (toll-free) or 212-583-8206 (collect).

                     Business Outlook

In April 2006 the Company revised its outlook noting several
industry trends in the technology and video game industries.  
These factors continue to impact CNET Networks' business, and
accordingly, the Company has further revised its outlook.

    * For the third quarter of 2006, CNET Networks estimates
      total revenues were approximately US$92.8 million.  
      Previously, the Company had expected total revenues of
      US$93 million to US$96 million.

    * For the full-year 2006, CNET Networks expects total
      revenues of US$376 million to US$386 million. Previously,
      the Company had expected full year total revenues of
      US$386 million to US$403 million.

                     Form 10-Q Filing Delay

The Company will not be in a position to file its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2006 on
a timely basis, pending the completion of its financial
restatements related to its independent investigation of stock
option granting practices and of the requisite audit procedures
by the Company's independent registered public accountants.  
Consequently, CNET Networks is not in a position to provide
actual results or guidance regarding operating expense,
operating income, net income or earnings per share.

                       About CNET Networks

CNET Networks, Inc. (Nasdaq: CNET) --
http://www.cnetnetworks.com/-- is an interactive media company  
that builds brands for people and the things they are passionate
about, such as gaming, music, entertainment, technology,
business, food, and parenting.  The Company's leading brands
include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet
and TechRepublic. Founded in 1993, CNET Networks has a strong
presence in the US, Asia and Europe including Russia, Germany,
Switzerland, France and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
CNET Networks received a notice from the trustee under the
indenture governing the Company's USUS$125 million aggregate
principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file
its Form 10-Q with the trustee within fifteen days after it is
required to be filed with the SEC.  

If the default is not cured within 60 days, the bonds may be
accelerated by the holders of 25% outstanding principal amount
or the trustee.  As of June 30, 2006, the Company had
approximately USUS$143.3 million of cash and investments.


CNET NETWORKS: Names Neil Ashe as New Chief Executive Officer
-------------------------------------------------------------
CNET Networks Inc. disclosed that its Board of Directors has
unanimously appointed Neil Ashe as the Company's new chief
executive officer and director effective immediately.  Co-
founder and chief executive officer Shelby Bonnie has resigned
as chairman and CEO.

The Company also said that Jarl Mohn has been named non-
executive chairman of CNET Networks' Board of Directors.  Mr.
Mohn has extensive experience in the media and technology
industries.

Mr. Mohn has previously served as president and chief executive
officer of Liberty Digital, Inc., founding president and CEO of
E! Entertainment Television, and executive vice president and
general manager of MTV and VH1.

"CNET Networks is known for building world class brands for
people and the things they are passionate about.  It's been an
honor to work with Shelby as we have grown the company from its
technology roots and moved into new categories like
Entertainment, Food and Parenting," said Neil Ashe.  "CNET
Networks is a different kind of media company and we are
committed to continuing to be pioneers in interactive content.  
We have been and will be innovators, and together with my
colleagues worldwide, I am confident about what we can
accomplish.  Innovation is part of our DNA and will be
fundamental to our success moving forward."

Jarl Mohn, the newly appointed chairman of the Board, said,
"Neil has been instrumental in CNET Networks' growth and success
over the past few years both as head of corporate strategy and
development and through the operation of several business units.  
This announcement marks the successful completion of the Board's
succession planning started more than 18 months ago.  Neil's
broad-based expertise in all facets of the business, together
with his outstanding management and leadership skills, are
valuable assets that will serve our company well as we continue
to expand CNET Networks."

"I am confident under Neil's leadership CNET Networks will
continue to play an important role in the evolving media
landscape" said Shelby Bonnie.  "He will build upon the
company's legacy and take it to new heights."

Since joining CNET Networks in 2002, Mr. Ashe has led the
company's content expansion strategy, including numerous
acquisitions to develop its existing products and expand into
new categories which attract new audience and customer segments.  
His day-to-day responsibility for the Community and Lifestyle,
International, Channel, and Business divisions has resulted in
new product development, audience growth and revenue streams for
the company.

Prior to joining CNET Networks, Mr. Ashe founded and served as
chief executive officer of several start-up companies and held
senior positions in private equity and investment banking.  Mr.
Ashe holds an MBA from Harvard Business School and a BS from
Georgetown University.

                       About CNET Networks

CNET Networks, Inc. (Nasdaq: CNET) --
http://www.cnetnetworks.com/-- is an interactive media company  
that builds brands for people and the things they are passionate
about, such as gaming, music, entertainment, technology,
business, food, and parenting.  The Company's leading brands
include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet
and TechRepublic. Founded in 1993, CNET Networks has a strong
presence in the US, Asia and Europe including Russia, Germany,
Switzerland, France and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
CNET Networks received a notice from the trustee under the
indenture governing the Company's US$125 million aggregate
principal amount of 0.75% Convertible Senior Notes due 2024,
stating that the company is in default of its covenant to file
its Form 10-Q with the trustee within fifteen days after it is
required to be filed with the SEC.  

If the default is not cured within 60 days, the bonds may be
accelerated by the holders of 25% outstanding principal amount
or the trustee.  As of June 30, 2006, the Company had
approximately US$143.3 million of cash and investments.


DIGITAL LIGHTWAVE: Issues US$269,931 Promissory Note to Optel
-------------------------------------------------------------
Digital Lightwave Inc. issued a secured promissory note in the
principal amount of US$269,931 to Optel Capital, LLC to
reimburse the draw on the letter of credit by MC Test Service,
Inc. on Oct. 4, 2006.

MC Test provides outsourced manufacturing services to the
Company pursuant to a letter of agreement.  Optel, an entity
controlled by Dr. Bryan J. Zwan, the Company's largest
stockholder and chairman of the board of directors, established
a US$6 million irrevocable letter of credit on behalf of the
Company and named MC Test as beneficiary.  The Letter of Credit
was renewed for US$2 million and the expiration date extended
until Dec. 30, 2006.

MC Test, on Oct. 4, 2006, drew down US$269,931 of the Letter of
Credit for outsourced manufacturing services provided to the
Company by MC Test.

The Company's obligation with Optel is evidenced by the secured
promissory note bears interest at 10% per annum and is secured
by a security interest in substantially all of the Company's
assets.  Principal and accrued but unpaid interest under the
secured promissory note is due and payable upon demand by Optel
at any time after Dec. 31, 2006.

The Company disclosed that it continues to have insufficient
short-term resources for the payment of its current liabilities.
As of Oct. 4, 2006, it has been unable to secure any financing
agreement or to restructure its financial obligations with
Optel.

As of October 4, 2006, the Company owed Optel approximately
US$54.4 million in principal plus approximately US$10.2 million
of accrued interest thereon.

The Company also disclosed that approximately US$64.6 million of
principal and accrued interest payable to Optel is currently due
and payable on demand.

The Company further disclosed that Optel currently is its
principal source of financing and it has not identified any
other funding source that would be prepared to provide current
or future financing.  The Company is continuing its discussions
with Optel to restructure the Short-Term Notes and the Secured
Convertible Promissory Note by extending the maturity date, and
to arrange for additional short-term working capital.  If the
Company does not reach an agreement to restructure the Short-
Term Notes and the Secured Convertible Promissory Note, and
obtain additional financing from Optel, the Company will be
unable to meet its obligations to Optel and other creditors.

A full text-copy of the Oct. 4, 2006 Secured Promissory Note
issued by Digital Lightwave to Optel, may be viewed at no charge
at http://ResearchArchives.com/t/s?1354/

Headquartered in Clearwater, Florida, Digital Lightwave Inc.
designs, develops and markets products for installing,
maintaining and monitoring fiber optic circuits and networks.  
The company's product lines include: Network Information
Computers, Network Access Agents, Optical Test Systems, and
Optical Wavelength Managers.  The company's wholly owned
subsidiaries are Digital Lightwave (UK) Limited, Digital
Lightwave Asia Pacific Pty, Ltd., and Digital Lightwave Latino
Americana Ltda.  The company also has presence in Australia,
Canada, Denmark, France, Greece, Hong Kong, India, Indonesia,
Korea, Mexico, Malaysia, Singapore, Thailand, among others.

At June 30, 2006, Digital Lightwave's balance sheet showed
US$58,504,000 in total stockholders' deficit from total assets
of US$6,394,000 and total liabilities of US$64,898,000.


ESSEX WOOD: Appoints H. J. Sorsky to Liquidate Assets
-----------------------------------------------------
H. J. Sorsky of SPW Poppleton & Appleby was appointed Liquidator
of Essex Wood Recycling Limited on Oct. 3 for the creditors'
voluntary winding-up procedure.

Headquartered in Ware, United Kingdom, Essex Wood Recycling
Limited -- http://www.essexwoodrecycling.co.uk/-- supplies Bio-
mass fines fuel across Europe and over 150 organizations
worldwide.  The company recycles old pallets, dead trees or old
furniture for alternate use.


FEDERAL-MOGUL: Retains All UK Administered Companies Under CVAs
---------------------------------------------------------------
Federal-Mogul Corp. disclosed that the United Kingdom
Administrated Company Voluntary Arrangements resolution became
effective on Oct. 11, 2006.

Under the CVAs, Federal-Mogul retains all of the U.K.
Administrated businesses.  The U.K. Administrated companies
include activities in Europe, the Americas and Asia-Pacific.  
This completes a substantial portion of Federal-Mogul's global
restructuring, which began on Oct. 1, 2001, when the Company
decided to separate its asbestos liabilities from its true
operating potential by voluntarily filing for Administration
proceedings in the U.K. and for financial restructuring in the
United States under Chapter 11 of the Bankruptcy Code.

As reported in the TCR-Europe on Aug. 24, a court-approved U.K.
Global Settlement Agreement resolved issues between the Debtors
and the other co-plan proponents on the one hand, and the
administrators of Federal-Mogul's affiliates in the United
Kingdom, on the other hand, as to the reorganization of the
U.K. Debtors.

The cornerstone of the U.K. Global Settlement Agreement is that
the Administrators will propose company voluntary arrangements
for certain of the U.K. Debtors.

Initially, the Administrators intended to propose CVAs for the
20 principal U.K. Debtors.  However, after negotiations over the
past several months, the Administrators agreed to propose CVAs
for 51 of the U.K. Debtors, which comprise virtually all of the
U.K. Debtors that have material assets or third-party
liabilities, Scotta E. McFarland, Esq., at Pachulski Stang Ziehl
Young Jones & Weintraub LLP, in Wilmington, Delaware, relates.

The CVAs will principally be funded by cash held by the U.K.
Debtors and cash that was transferred to the Administrators in
exchange for certain intercompany loan notes held by T&N
Limited, one of the U.K. Debtors.

Pursuant to the CVAs, the holders of most claims against the
U.K. Debtors will receive a payment under the CVAs in
satisfaction of their claims.  The Debtors believe that the CVAs
becoming effective will be the most important step in
facilitating the conclusion of the U.K. Debtors' administration
proceedings.

Federal-Mogul and the Plan Co-proponents in the U.S. are working
to finalize the Amended Chapter 11 Plan of Reorganization, the
Supplemental Disclosure Statement and a Supplemental Voting and
Notice Procedures Motion that is expected to lead to emergence
from bankruptcy.

"We are pleased with the recent developments that bring the
company closer to emergence from a complex bankruptcy
proceeding," said Federal-Mogul Chairman, President and Chief
Executive Officer Jos, Maria Alapont.  "We remain focused on our
global profitable growth strategy to provide world-class
products and services with leading technology and innovation
that satisfy customer, employee and stakeholder expectations."

                       About Federal-Mogul

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's  
largest automotive parts companies with worldwide revenue of
some US$6 billion.  The Company filed for chapter 11 protection
on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J.
Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at
Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at
Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C.,
represent the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they listed
US$10.15 billion in assets and US$8.86 billion in liabilities.  
Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based
at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at
Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq.,
Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard
Firm represent the Official Committee of Unsecured Creditors.


INTELSAT LTD: Moody's Assigns Loss-Given-Default Rating
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Towers & Satellites sector, the rating
agency confirmed its B2 Corporate Family Rating for Intelsat,
Ltd.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

      
   Intelsat Ltd:  

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. 5.25%
   Notes Due
   2008                  Caa2     Caa1    LGD6        93%

   Sr. 7.625%
   Notes Due
   2012                  Caa2     Caa1    LGD6        93%

   Sr. 6.50%
   Notes Due
   2013                  Caa2     Caa1    LGD6        93%


   Intelsat Intermediate Holding Company:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. 9.25%
   Discount Notes
   Due 2015              Caa1      B3     LGD5        72%

  
   Intelsat Subsidiary Holding Company:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. Sec.
   R/C Due 2012           B1       Ba2    LGD1         8%

   Sr. Sec. TL
   Due 2013               B1       Ba2    LGD1         8%

   Sr. FRN Due 2012       B2       B2     LGD3        46%

   Sr. 8.25% Notes
   Due 2013               B2       B2     LGD3        46%

   Sr. 8.625% Notes
   Due 2015               B2       B2     LGD3        46%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).


INTELSAT LTD: Fitch Junks Bermuda Unit's US$600-Million Loan
------------------------------------------------------------
Fitch Ratings has assigned a 'CCC+' rating and 'RR6' Recovery
Rating to the US$600 million senior unsecured credit facility of
Intelsat (Bermuda), Ltd., which is a subsidiary of Intelsat,
Ltd.  The proceeds from the facility were used to fund Intelsat
(Bermuda)'s acquisition of PanAmSat Holding Corporation on
July 3, 2006.  The Rating Outlook is Stable.

The rating reflects the similar position of the credit facility
in the capital structure as Intelsat (Bermuda)'s 11-1/4% senior
unsecured non-guaranteed notes due 2016 (the 2016 notes)
previously rated 'CCC+/RR6' by Fitch.  The senior unsecured
credit facility contains substantially the same covenants and
events of default as the 2016 notes.  If any borrowings under
the credit facility remain outstanding on the one-year
anniversary date of the closing of the credit facility, the
initial loans will automatically be exchanged for senior
unsecured notes that will mature on the tenth anniversary of the
closing of the credit facility.  If issued, the notes will have
a fixed interest rate of 11-1/4%.

Liquidity is provided by cash on hand and credit facilities.  
Cash on hand amounted to US$475 million at the end of the second
quarter of 2006 for Intelsat, and US$73 million at Intelsat
Corporation (formerly PanAmSat Corporation).  A portion of cash
on hand was used to finance the acquisition of PanAmSat Holding
Corporation on July 3, 2006.  Credit facilities consist of an
undrawn US$300 million, six-year credit facility located at
Intelsat (Bermuda)'s indirect subsidiary Intelsat Subsidiary
Holding Company, Ltd. (Intelsat Sub Holdco) and a US$250 million
six-year facility at indirect subsidiary Intelsat Corporation.  
The Intelsat Sub Holdco facility has a financial covenant
restricting pro forma senior secured leverage to no greater than
1.5 times (x) at the end of each fiscal quarter, and the
Intelsat Corporation facility requires pro forma senior secured
leverage to be no greater than 4.25x at the end of each fiscal
quarter.

Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the
event of a default.  


INTELSAT LTD: Promotes Linda Kokal to Sr. Vice Pres. & Treasurer
----------------------------------------------------------------
Intelsat Ltd. promoted Linda J. Kokal to Senior Vice President
and Treasurer.  Ms. Kokal's areas of responsibility and
oversight include treasury, risk management, and financial
planning and analysis.  She joined Intelsat's finance department
in April 2006 as Vice President and Treasurer and played an
integral role in the capital structuring related to the merger
with PanAmSat.

"Linda has proven herself to be an invaluable member of
Intelsat's new finance team.  With this promotion we are
delighted to recognize the solid leadership and integration
process expertise she brings to our company," said Jeff
Freimark, Executive Vice President and Chief Financial Officer
of Intelsat.

Prior to joining Intelsat, Ms. Kokal was Vice President,
Treasury and Risk Management at MCI. In that position she was
responsible for treasury operations, debt management, and risk
management.  Her prior experience includes senior financial
positions at Digex, PSINet, e.spire Communications, and GTE.

Ms. Kokal received a Bachelor's degree in Finance from the
University of Florida and a MBA from Duke University.

                      About Intelsat

Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony,  
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.

                        *     *     *

On June 12, 2006, Moody's Investor Service affirms Intelsat
(Bermuda) Ltd.'s ratings:

      -- New Guaranteed Sr. Notes: Assigned B2,
      -- New Sr. Notes: Assigned Caa1, and
      -- Sr. Discount Notes, due 2015: Downgraded to Caa1 from
         B3 (these notes will be moved to Intelsat Intermediate
         Holding Company Ltd. Upon closing of the merger).


KARNAVAL GROUP: Taps Liquidator from Findlay James
--------------------------------------------------
Alisdair J. Findlay of Findlay James was appointed Liquidator of
Karnaval Group Limited on Sept. 29 for the creditors' voluntary
winding-up procedure.

Headquartered in Swansea, United Kingdom, Karnaval Group Limited
-- http://www.karnavalcoatings.com/-- manufactures Karnaval  
Kolor, a coating specifically created for the use on plastics
and other surfaces within the construction, sign writing,
automotive and other industries.  


KAZAKHGOLD GROUP: Gold Production Up 27% in Third Quarter 2006
--------------------------------------------------------------
KazakhGold Group Limited disclosed a production update for the
quarter ended Sept. 30, 2006.

Gold production from Aksu, Bestobe and Zholymbet, the Group's
three operating mines in northern Kazakhstan, totaled 78,361
ounces during the third quarter.  This equates to an increase of
27% over the 61,530 ounces produced in the second quarter and
brings total gold produced in the nine months to September 30,
2006 to 173,521 ounces.

Gold sales in the third quarter of 2006 were 97,318 ounces at an
average sales price of US$556/oz compared to US$507/oz achieved
in the first half of the year.  Gold sales for the nine months
to end-September totaled162,105 ounces.

Inventory at September 30, 2006, has been reduced to 29,864
ounces from 48,821 ounces at June 30, 2006, and the company
intends to reduce this further by year-end.

Headquartered in Stepnogorsk, Kazakhstan, KazakhGold Group --
http://www.kazakhgold.com/-- is one of the leading gold mining  
companies in Kazakhstan whose business dates back to 1929.  The
Group's core assets are the Aksu, Bestobe and Zholymbet mines
located in Northern Kazakhstan, in close proximity to the
country's capital city Astana.  Since its London listing on last
year, the company has acquired several new deposits in Eastern
Kazakhstan, which are subject to the joint venture with Barrick
Gold.  The company employs 3,200 workers.


KAZAKHGOLD GROUP: Fitch Rates Planned US$150-Mln Bond Issue at B
----------------------------------------------------------------
Fitch Ratings has assigned KazakhGold Group Limited a foreign
currency Issuer Default rating of 'B' with Stable Outlook.  At
the same time, Fitch has assigned KazakhGold's proposed US$150
million senior bond issue an expected rating of 'B'.  The final
rating for the bond issue is contingent on receipt of final
documentation in line with information already received by the
agency.

KazakhGold is a Kazakhstan-based gold producer, which is
undertaking a major expansion and modernization program at the
company's three operating gold mines.  The capital expenditure
is being funded by proceeds from the company's IPO on the London
Stock Exchange (late 2005) and the proposed bond issue.  The
expansion is planned to result in a substantial increase in gold
production to over 500,000 ounces over the next two to three
years, from less than 100,000 oz per annum in 2005.

The ratings reflect KazakhGold's extensive gold reserve base,
which is expected to support long mine lives (in excess of 15
years) at expanded levels of production.  The ratings also
reflect its projected low production costs, which are expected
to be close to the lowest quartile by world standards.  They
take into account KazakhGold's modest operating diversity, with
production sourced from three mines -- each having both
underground and open pit reserves with well established
infrastructure.  The company should also benefit from the recent
relatively strong gold prices of over US$500/oz, although these
prices may not be sustainable over the longer term and Fitch has
therefore based its analysis on longer-term gold price
assumption of US$425/oz.

On the other hand, KazakhGold has a single commodity focus, is
fully exposed to gold price volatility and has a very limited
relevant financial track record.  Operational and financial
results to date provide little indication as to how the company
is expected to perform following its expansion program, while
the full benefit (in terms of increased gold production, cash
flow and earnings) is expected to be progressively realized only
in future years.  As such, Fitch's financial analysis has been
focused on forward-looking cash flow projections, which carry an
inherent degree of uncertainty.

Fitch's base case cash flow projections show relatively robust
cash flow and coverage ratios and ability to repay the proposed
bond by its maturity date, although this ability could be
adversely affected by a variety of factors.  A major risk
involves the company's ability to execute the expansion program
in line with projected capital costs as well as meeting expanded
gold production levels at projected operating costs.  While
Fitch has factored in some downside to these key drivers into
its base case assumptions, a material deterioration in these
could place downward pressure on the ratings.  Conversely, the
ratings are constrained at existing levels until KazakhGold is
able to demonstrate a sustained period of operational and
financial performance at expanded levels of gold production.

Other risks include some uncertainty involving the conversion of
reserves from former Soviet Union standards to western (JORC)
standards.  Following discussions with an independent technical
consultant, Fitch, however, does not expect to see a material
reduction in reported reserves upon adopting the western
standard.  The agency also notes other traditional risks
associated with mining and metals processing projects - both
underground and open pit.


LIBERTY MEDIA: Moody's Affirms Ba2 Corporate Family Rating
----------------------------------------------------------
Moody's affirmed Liberty Media LLC's Ba2 Corporate Family and
senior unsecured ratings following Liberty's establishment of a
new US$1.75 billion credit facility at QVC, Inc., Liberty's
primary operating subsidiary.  However, the rating outlook was
changed to negative from stable.

Outlook Actions:

Issuer: Liberty Media LLC

    * Outlook, Changed To Negative From Stable

The change in the rating outlook to negative reflects Moody's
concern over Liberty's more aggressive financial strategies and
profile, and that QVC may utilize the approximate US$2.3 billion
of combined unused capacity on the new facility and the existing
US$3.5 billion credit agreement signed in March 2006 to upstream
funds to Liberty for share repurchases and acquisitions that
will increase leverage.

Moody's believes there is little evident need for incremental
external financing due to QVC's good cash generation and
Liberty's sizable consolidated cash balance (US$2.7 billion at
June 30, 2006) and that the establishment of the new facility
indicates that leverage could be higher than anticipated at the
time of our May 18 rating action.

Moody's is also concerned that the level of support for the
Liberty Media bonds could decline through expansion in the level
of subsidiary debt that would increase the degree of structural
subordination to assets and cash flow of the operating
subsidiaries, or material changes in the value or risk profile
of cash and marketable securities (such as Liberty's News
Corporation stake) through returning cash to shareholders or
swaps for speculative operating assets.

Liberty Media LLC is a holding company owning interests in a
broad range of electronic retailing, communications, and
entertainment businesses.  The company maintains its
headquarters in Englewood, Colorado.


MARBLE ARCH: Moody's Rates Class E1c Notes at (P)Ba1
----------------------------------------------------
Moody's Investors Service assigned these provisional credit
ratings to the following classes of Notes issued by Marble Arch
Residential Securitization No. 4 Limited:

   -- Class A1 Mortgage Backed Floating Rate Notes
      due [2023]:  (P)Aaa;

   -- Class A2 Mortgage Backed Floating Rate Notes
      due [2040]: (P)Aaa;

   -- Class A3 Mortgage Backed Floating Rate Notes
      due [2040]: (P)Aaa;

   -- Class A3c Detachable A Coupons due [2040]: (P)Aaa;

   -- Class B Mortgage Backed Floating Rate Notes
      due [2040]: (P)Aa3;

   -- Class C Mortgage Backed Floating Rate Notes
      due [2040]: (P)A2;

   -- Class D1 Mortgage Backed Floating Rate Notes
      due [2040]: (P)Baa1; and

   -- Class E1c Mortgage Backed Floating Rate Notes
      due [2040]: (P)Ba1.

It is anticipated that the Class A1, Class A2, Class A3, Class
B, Class C, and Class D1 Notes may be issued in USD, GBP and/or
Euros, subject to market demand.  The final currency
denominations within each separate class of note will rank
pari-passu with each other in all respects.

This transaction represents the fourth securitization of
mortgage loans originated by Matlock Bank and also includes
loans originated by Langersal No. 2 Limited, Southern Pacific
Personal Loans Limited and Southern Pacific Mortgage Limited.
The assets supporting the Notes are non-conforming mortgage
loans secured on residential properties in England and Wales.

The total debt raised by Marble Arch Residential Securitisation
No.4 Limited will be used to purchase a portfolio of mortgage
loans and will be split as follows: [80.00]% Class A Notes,
[7.00]% Class B Notes, [5.25]%, Class C Notes, [4.75] Class D1
Notes and [3.00]% Class E1 Notes.  The reserve fund, which will
be fully funded at closing by subordinated loans granted to the
Issuer by Matlock bank will [1.50%] of the initial transaction
amount.

The ratings of the Notes are based upon the analysis of the
characteristics of the mortgage pool backing the Notes, the
protection the Notes receive from credit enhancement against
defaults and arrears in the mortgage pool, and the legal and
structural integrity of the issue.

The ratings address the expected loss posed to investors by the
legal final maturity.  The structure allows for timely payment
of interest and ultimate payment of principal at par on or
before the rated final legal maturity date.  Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed but may have a
significant effect on the yield to investors.

Capstone Mortgage Services Limited, with delegation to Vertex
Financial Services Ltd. and Lightfoots Solicitors is the master
servicer for the mortgage loans.  SMS Mortgage Services Ltd.
will be the Standby Servicer for the pool, if the appointment of
Capstone as Servicer is terminated.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings only represent Moody's
preliminary opinion.  Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavor
to assign definitive rating to the Notes.  A final rating may
differ from a provisional rating.


MARBLE ARCH: S&P Assigns Low-B Ratings on Class FTc Notes
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the GBP840 million (equivalent) mortgage-
backed floating-rate notes, an overissuance of GBP14.28 million
mortgage-backed floating-rate notes, and GBP0.42 million
mortgage-backed deferrable-interest notes to be issued by Marble
Arch Residential Securitization No. 4 PLC, a special-purpose
entity.
  
The collateral comprises a pool of first-charge and second-
charge mortgages secured by freehold and leasehold owner-
occupied properties, and buy-to-let properties in England and
Wales.
  
This mortgage transaction is the fourth U.K. mortgage
securitization under the Marble Arch program.
  
The key structural changes since the previous MARS transaction
are:

   -- the inclusion of near-prime and second-lien mortgages
      in the pool;

   -- the inclusion of the excess spread notes
      (classes DTc, Etc, and FTc notes);

   -- the inclusion of detachable A3c coupons (DACs);

   -- an amortizing liquidity facility, subject to triggers;

   -- the inclusion of a bullet cap proceeds reserve fund;

   -- the inclusion of a fixed/floating swap; and

   -- the inclusion of a BBR/LIBOR swap.
  
                        Ratings List
     Marble Arch Residential Securitisation No. 4 PLC
GBP840 Million (Equivalent) Mortgage-Backed Floating-Rate Notes
  An Overissuance of GBP14.28 Million Mortgage-Backed
              Floating-Rate Notes, and
  GBP0.42 Million Mortgage-Backed Deferrable-Interest Notes
  
                        Prelim.        Prelim.
         Class          rating         amount (Mil. GBP equiv.)
         -----          ------         ------
         A1a            AAA            TBD
         A1b            AAA            TBD
         A1c            AAA            252.00
         A2a            AAA            TBD
         A2b            AAA            TBD
         A2c            AAA            189.00
         A3a            AAA            TBD
         A3b            AAA            TBD
         A3c            AAA            231.00
         A3c DACs(1)    AAA            N/A
         B1a            AA             TBD
         B1b            AA             TBD
         B1c            AA             58.80
         C1a            A              TBD
         C1b            A              TBD
         C1c            A              44.10
         D1a            BBB            TBD
         D1b            BBB            TBD
         D1c            BBB            39.90
         DTc            BBB            8.40
         E1c            BB             25.20
         ETc            BB             5.88
         FTc(2)         B              0.42
  
   (1) Detachable A3c coupons for the class A3c notes.

   (2) The FTc notes are deferrable interest notes.  When
       there is no available revenue, interest will accrue
       on the FTc ledger.

       N/A-Not applicable.  


MAZEIKIU NAFTA: Pegs Refinery Fire Damages at US$47.5 Million
-------------------------------------------------------------
AB Mazeikiu Nafta estimated damages caused by a fire at the
Lithuanian oil refinery on Thursday to be between US$22.5
million and US$47.5 million (LTL62 million and LTL131 million).  
The company's 2006 net profit is forecasted to be reduced due to
the incident by US$38 million (LTL105 million).

According to preliminary data, a leak developed at 2:32 p.m. on
Oct. 12 that led to depressurization of the Vacuum Distillation
column of the Vacuum Unit followed by hot bottom product release
into the atmosphere.  Due to the contact with atmosphere, the
self-ignition of the bottom product occurred.  Because of the
flame impact on the supporting structure of the vacuum column,
the latter started leaning and fell on the heat exchangers
block.  Additional petroleum products released and further
fueled the fire.

The company's management has developed an action plan which
organizes company operations to ensure petroleum product
supplies to the Baltic markets (i.e. Lithuania, Latvia, and
Estonia) with minimum impacts.

The company has continued its crude oil refining.  The past
incident capacity of Mazeikiu Nafta refinery is 15,000 tons per
day excluding the Vacuum unit.

Following the immediate incident, refinery operations will
transition through two or more stages of recovery before
returning to normal and optimal operations.  The company
estimates that it will take from six to nine months until
refinery can return to pre-fire daily throughput of 27,400 tons
a day.

                           Insurance

Mazeikiu Nafta said it has property and business interruption
losses insured in the international insurance market via the
broker AON Limited, London.  The biggest insurance risk part
(46.2%) is shared among three companies:

   -- Liberty International Underwriters (London, UK),
   -- AIG Europe (UK) Limited, and
   -- SCOR UK Company Limited.

Property is insured under reinstatement value.  AB Mazeikiu
Nafta liability insurance is secured in the international
insurance market as well.

                         Investigation

The Company is currently involved in a thorough investigation of
the incident supported by industry experts and including the
involvement of state institutions.  Upon completion of the
investigation and more detailed assessment of the damage an
adjusted estimate of greater accuracy will be developed and
hopefully the true cause of the incident will be identified and
understood with the ultimate goal of prevention of recurrence.

Poland's largest oil refiner PKN ORLEN S.A. is on its way to
completing the acquisition of Mazeikiu Nafta from Yukos
International UK B.V. for US$1.49 billion under a share sale and
purchase agreement dated May 26, 2006.  PKN has also agreed to
purchase a 30.66% stake in Mazeikiu from the Lithuanian
government for US$852 million.

The company is awaiting regulatory approval from the
Antimonopoly Committee of Ukraine and the appropriate antitrust
authorities in the United States before the deal's expected
completion early next year.  PKN does not expect that the
requirement to obtain additional consents in Ukraine and the US
will delay the closing of the transaction or increase the risks
for the successful closing.

The European Commission will consider the approval of the deal
next month.

                        PKN Orlen Statement

In a teleconference with capital market analysts Friday, PKN
ORLEN President of the Board Igor Chalupec announced a delay in
the signing of the financing program in support of the
acquisition of Mazeikiu Nafta.  This delay is caused by the need
to analyze the emergent situation in the Lithuanian refinery.

PKN ORLEN president of the Board Igor Chalupec also spoke on the
telephone with Lithuanian Prime Minister Gedyminas Kirkilas, who
visited the refinery in Mazeikiu.  Prime Minister Kirkilas
informed President Chalupec of the activities undertaken by the
Lithuanian side, including the appointment of a special
government committee to investigate the causes of the incident.  
President Chalupec assured Prime Minister Kirkilas of PKN
ORLEN's intention to complete the transaction and provide
assistance to resolve the emergent problems.  President Chalupec
also indicated that PKN ORLEN will analyze in detail the impact
of this incident on the operational and financial status of the
Mazeikiu Nafta refinery.

PKN ORLEN has declared its will to cooperate in removing the
consequences of Thursday's incident as quickly as possible.

                       About PKN Orlen

Headquartered in Poland, PKN Orlen operates three refineries
located in Plock, Trzebinia and Jedlicze.  It processes mainly
URAL blend crude oil, shipped from Russia via the Friendship
pipeline.  Alternative supplies of crude oil to Plock may be
sourced via the Pomerania pipeline, which connects the fuel
reloading facility on the Baltic Sea with the Plock refinery.
PKN ORLEN's retail network in Poland is made of 1,326 company
owned stations, 504 affiliated stations and 87 franchised
stations.

                         About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On July 25, Yukos creditors voted to liquidate the oil firm
after rejecting a management rescue plan, which valued the
company's assets at about US$30 billion.  This would have
permitted Yukos to continue its operations and attempt to pay
off US$18 billion in debts through asset sales.

The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate Yukos Oil and declared what was
once Russia's biggest oil firm bankrupt on Aug. 1.  The expected
court ruling paves the way for the company's liquidation and
auction.

Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta
-- http://nafta.it/en-- is an integrated downstream oil company   
that comprises in one complex pipeline operations, oil refining,
marine terminal operations, and logistics of crude oil and
refined products.


MAZEIKIU NAFTA: Fitch Keeps B+ Rating After Refinery Fire
---------------------------------------------------------
Fitch Ratings is keeping Lithuanian oil refining company
Mazeikiu Nafta AB's Issuer Default rating of 'B+' on Rating
Watch Positive despite Friday's fire at its Mazeikiai refinery.  
MN's Short-term rating is affirmed at 'B'.

The RWP reflects MN's pending ownership change as a result of
Polish oil refining and marketing company Polski Koncern Naftowy
ORLEN S.A.'s (rated 'BBB', Rating Watch Negative) planned
acquisition of the Lithuanian company.

In Fitch's view the recent fire at MN's Mazeikiai refinery,
while unfortunate, does not presently warrant a rating action as
it expects the company to substantially cover reconstruction
costs and business disruption losses via insurance claims.  
Medium-to-long-term reconstruction will now likely be
incorporated into PKN's capital expenditure plans for MN,
further supporting the maintenance of RWP.

The fire has, however, caused significant damage to the
refinery, including one of the vacuum pipe tower distillation
columns.  As a result, the company's only refinery is likely to
operate well below its full capacity (at around 50% of capacity)
for several months until the damaged installations are rebuilt.  
While the cost of reconstruction is expected to be covered by
MN's property insurance, the company's profitability will
deteriorate in the coming months due to decreased throughput.  
Business interruption insurance in place will cover only a part
of lost profits due to standard deductibles.  The company will
most likely have to declare "force majeure" and suspend a
significant part of its refined products exports due to lower
fuel production resulting from the fire.  Fitch will continue to
monitor developments closely.

The fire is the second significant unexpected incident at MN
(after suspended pipeline deliveries to MN from Russia) since
existing controlling shareholder, Yukos International UK B.V.,
agreed to sell its 53.7% stake in the company to PKN for
US$1.492 billion in May 2006.  PKN has also agreed to purchase a
30.66% stake in MN from the Lithuanian government for US$852
million.  The acquisition has yet to be approved by the EU but
is expected to close by first quarter of 2007, upon which the
RWP will be resolved.


PROFESSIONAL SOLUTIONS-1: Alan Simon Leads Liquidation Procedure
----------------------------------------------------------------
Alan Simon was appointed Liquidator of Professional Solutions-1
Limited (t/a PS-1) on Oct. 3 for the creditors' voluntary
winding-up procedure.

Headquartered in Bracknell, United Kingdom, Professional
Solutions-1 Limited -- http://www.ps-1.com/-- provides  
recruitment and business solutions.  The company's business
offerings include resourcing, recruitment managed services,
change management, and behavioral transformation.


QUALITY MEMORIALS: Hires David Graham to Liquidate Assets
---------------------------------------------------------
David Graham Platt of David Platt & Associates was appointed
Liquidator of Quality Memorials Ltd. on Oct. 4 for the
creditors' voluntary winding-up procedure.

Headquartered in Salford, United Kingdom, Quality Memorials Ltd.
-- http://www.qualitymemorials.co.uk/-- supplies memorial  
stones and plaques.  Quality Memorials specializes in Hebrew and
English inscriptions.  The company also supplies tiles, flooring
and worktops for home or business.


RESPONSE RECRUITMENT: Nominates Lane Bednash as Liquidator
----------------------------------------------------------
Lane Bednash of David Rubin & Partners was nominated Liquidator
of Response Recruitment (Northern) Limited (formerly Charlie
Echo Limited) on Sept. 28 for the creditors' voluntary winding-
up procedure.

The company can be reached at:

         Response Recruitment (Northern) Limited
         6 Chase Road
         Ealing
         London NW106HZ
         United Kingdom
         Tel: 020 8965 1575
         Fax: 020 8965 1655


SBARRO INC: Moody's Assigns Loss-Given Default Rating
-----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its B3 Corporate Family Rating for Sbarro Inc.
and its Caa1 rating on the company's US$255 million Gtd. 11%
senior unsecured notes due Sept. 2009.  Additionally, Moody's
assigned and LGD4 rating to those bonds, suggesting noteholders
will experience a 53% loss in the event of a default.        

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Sbarro Inc. -- http://www.sbarro.com/-- operates quick service  
Italian restaurants in close to 1,000 locations across 30
countries including the United Kingdom, Belgium, Cyprus, Greece,
Italy, The Netherlands, Poland, and Russia.


SECUNDA INT'L: Terminates Cash Tender Offer on US$125 Mln Notes
---------------------------------------------------------------
Secunda International Ltd. terminated Oct. 13 the cash tender
offer and consent solicitation for any and all of its
outstanding US$125,000,000 aggregate principal amount of Senior
Secured Floating Rate Notes due 2012 (CUSIP No. 81370FAB4).

The company terminated the tender offer and consent solicitation
as a result of the termination of the initial public offering of
its common shares in Canada at this time due to adverse market
conditions and therefore the company has determined that the
financing condition described in the company's offer to purchase
and consent solicitation dated June 27, 2006 would not be
satisfied.  All notes that previously have been tendered will be
promptly returned to holders.

Headquartered in Nova Scotia, Secunda International Ltd.
-- http://www.secunda.com/-- is a wholly owned Canadian vessel  
owner/operator with locations in the UK and Barbados.  Secunda
is the leading supplier of marine support services to oil and
gas companies in one of the world's harshest marine environments
-- off the East Coast of Canada.


SECUNDA INT'L: IPO Termination Prompts S&P to Revise Outlook
------------------------------------------------------------
Standard & Poor's Ratings Services revised its CreditWatch
implications for its 'B-' long-term corporate credit and senior
secured debt ratings on Nova Scotia-based Secunda International
Ltd. to developing from positive.  The rating action follows
Secunda's announcement that it has terminated the IPO of its
common shares in Canada and the consent solicitation for its
outstanding senior secured floating rate notes due 2012.
     
Secunda announced it would terminate the IPO of its common
shares in Canada due to adverse market conditions.  In
conjunction with its decision to discontinue the IPO process,
Secunda also announced that it has terminated the cash tender
offer and consent solicitation for its senior secured floating
rate notes due 2012.
     
"As a result of Secunda's termination of its IPO in Canada, the
company will be unable to reduce its leverage to the extent
anticipated," said Standard & Poor's credit analyst Jamie
Koutsoukis.

"Although the company has demonstrated continued improvement in
both its financial and business profiles on the strength of
higher-than-historical utilization and day rates, and strong
market conditions for its services, we will need to assess the
company's near- and medium-term funding plans and the effect
they will have on Secunda's overall credit profile," Ms.
Koutsoukis added.
     
Standard & Poor's intends to meet with Secunda's management to
review its revised strategy following the termination of the IPO
and tender offering.  Standard & Poor's will then determine
whether the ratings could be raised, lowered, or affirmed.

If Secunda adds further debt to its balance sheet to finance
further vessel acquisitions and fund growth initiatives, the
company's credit profile would likely weaken and consequently
could have a negative effect on the ratings.  

Conversely, if Secunda is able reduce its leverage as a result
of improved market conditions and increased internal cash flow
generation, its credit profile will likely strengthen and could
result in a positive rating action, although an upgrade higher
than one notch is unlikely.  

If the company expects to remain with its current financial
profile, the corporate credit rating might remain at its current
level.  

Standard & Poor's will resolve the CreditWatch action further
consultation with Secunda's management and an assessment of the
company's financial policies following the termination of the
IPO.


T.D. TRAINING: Brings In Liquidators from Grant Thornton
--------------------------------------------------------
Richard Hawes and David Thomas of Grant Thornton U.K. LLP were
appointed Joint Liquidators of T.D. Training Limited on Oct. 3
for the creditors' voluntary winding-up procedure.

The company can be reached at:

         T.D. Training Limited
         3 Blaenau Gwent Workshops
         Pond Road
         Nantyglo
         Ebbw Vale      
         Gwent NP23 4BL
         United Kingdom
         Tel: 01495 315408   


* Moody's Confirms U.K. Banking System's Stable Outlook
-------------------------------------------------------
Moody's Investors Service has published its latest Banking
System Outlook for the U.K.  The overall stable outlook for the
U.K. banking sector remains in place, although selective rating
changes for individual banks are a possibility.

In Moody's opinion, the U.K. banking sector is well positioned
to weather the potentially more difficult conditions ahead both
domestically and globally.

"Ratings across the U.K. banking sector generally remain very
high, underpinned by robust profitability, strong capital levels
and good efficiency indicators.  Risk management practices have
also been improved over recent years, reinforcing U.K. banks'
ability to operate through a downswing," says Edward Vincent,
Vice President -- Senior Credit Officer at Moody's and one of
the authors of this report.

However, the report highlights various challenges.  One of the
key risks could emerge from the "search for yield", with banks
chasing higher returns.  "Moody's believes that, with risk
premiums lower than ever, banks could be driven towards higher-
risk investments, moving funds into less liquid instruments or
embarking on unwise ventures into more volatile asset classes,"
says Mr. Vincent.  "So far, though, there is little firm
evidence of this happening on a significant scale."

More specific challenges are also presented by the rising
indebtedness of U.K. consumers and the threat of a "hard
landing" for the property sector.  These problems could be
compounded by the knock-on effects of steadily rising global
interest rates.

"After years of cheap money, over-borrowing by U.K. consumers
has become a growing cause for concern, with a number of banks
seeing a dramatic upturn in arrears on unsecured lending and
credit cards -- albeit from a low base," says Mr Vincent.
"However, the major U.K. banks' substantial and well diversified
profit-generating ability and loan portfolios should enable them
to withstand these pressures without a significant impact on
their credit strength."

In addition, Moody's highlights the fact that a number of
studies show that insolvents are typically not home owners and
so the chances of this problem spreading to the mortgage sector
appear limited.

Moody's believes that the core strengths of the sector should
provide an extremely strong buffer against possible
deterioration in the operating environment.  The global
financial and economic crises of 2001-2003 -- most prominently
the 9/11 terrorist attacks in the U.S., the Argentinean crisis,
various corporate failures and scandals such as Enron and
WorldCom, and the difficulties encountered by the
telecommunications and insurance sectors -- were comfortably
managed by the major U.K. banks despite the costs they entailed.

The rating agency sees nothing to suggest that U.K. banks cannot
take another "event shock" in their stride, noting that the U.K.
banking sector continues to demonstrate a healthy degree of
stability.  "The stability of U.K. banks, both strategically and
in terms of financial fundamentals, is a key factor underpinning
the high ratings Moody's holds for them," says Mr. Vincent.

Going forward, Moody's sees limited scope for further domestic
consolidation among the U.K.'s "Big Five" -- namely HSBC, RBSG,
Barclays, HBOS and Lloyds TSB.  However, the rating agency does
expect selective "bolt-on" acquisitions to continue and regards
the mid-market mortgage lenders (Northern Rock, Bradford &
Bingley and Alliance & Leicester) as potential consolidators, or
indeed targets for European banking groups looking to gain a
foothold in the market.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders   Total    Working
                                   Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                              (214)       1,756      293


BELGIUM
-------
City Hotels               CITY.BR     (7)         210      (15)
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)


DENMARK
-------
Elite Shipping                       (28)         101       19


FRANCE    
------
Acces Industrie                       (8)         106      (35)
Arbel                     PA.ARB     (98)         222      (72)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Charbo De France                  (3,872)       4,738   (2,868)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256       21
Dollfus Mieg & Cie S.A.   DS         (16)         143      (45)
Euro Computer System                (110)         682      377
Genesys S.A.              GNS.PA     (10)         120       (5)
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (68)         233       29
Labo Dolisos              DOLI.PA    (28)         110      (33)
Matussiere et Forest S.A. MTF        (78)         294      (28)
Oeneo S.A.                SABT.PA    (12)         292       38
Pneumatiques Kleber S.A.             (34)         480      139
Rhodia S.A.               RHA       (788)       6,681      171
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Selcodis S.A.             SPVX       (18)         128       22
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
St Fiacre (FIN)                       (1)         111      (33)
Teamlog                   TLO        (19)         109       (3)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Cognis Deutschland
   GmbH & Co. KG                    (174)       3,003      606
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG        (8)         111      N.A.
Kaufring AG               KAUG       (19)         151      (51)
Maternus Kliniken AG      MAK.F       (3)         207      (30)
Nordsee AG                            (8)         195      (31)
Plambeck Neue
   Energien AG            PNE3        (4)         141       19
Primacom AG               PRIG      (268)       1,257   (1,048)
Rinol AG                  RLIG       (64)         104      (15)
Schaltbau Hold            SLTG       (23)         144       (7)
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
Vivanco Gruppe                       (55)         131      (31)


GREECE
------
Empedos S.A.              EMPED      (34)         175      (48)
Pouliadis Associates      
   Corporation            POUL       (28)         124      (31)
Radio A.Korassidis        KORA      (101)         181     (139)
   Commercial

HUNGARY
-------
Exbus Asset Management
   Nyrt.                  EXBUS      (30)         118   (5,162)


ICELAND
-------
Decode Genetics Inc.      DCGN        (9)         229      141

ITALY
-----
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                      (152)         732     (322)
Gruppo Coin S.p.A.        GC        (150)       4,218      N.A.
I Viaggi del
   Ventaglio S.p.A.       VVE.MI     (61)         487      (58)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (18,419)       4,121  (12,481)
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)
Wind Telecomunicazioni
   S.p.A.                            (10)      12,698     (815)

NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Mostostal Zabrze          MECOF.PK    (6)         227     (366)
Vista Alegre Atlantis
   SGPS S.A.              VAAAE      (18)         193      (83)  

ROMANIA
-------
Oltchim RM Valce          OLT        (45)         232     (321)


RUSSIA
------
OAO Samaraneftegas                  (332)         892  (16,942)
Zil Auto                            (185)         378  (11,107)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.                     (116)       1,283     (278)
Santana Motor S.A.                   (46)         223       41
Sniace S.A.                          (10)         134      (37)


SWITZERLAND
-----------
Wedins Skor
    Accessoarer AB                   (10)         139     (129)


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UKRAINE
-------
Dnepropetrovsk Metallurgical
   Plant Imeni Petrovsko              (2)         278     (509)
Dniprooblenergo                      (38)         478     (797)
Donetskoblenergo                    (166)         706   (1,320)


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
AEA Technology Plc        AAT.L      (24)         340      (50)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Anker Plc                 ANK.L      (22)         115       13
Atkins (WS) Plc           ATK        (63)       1,279       70
Bonded Coach
   Holiday Group Plc                  (6)         188      (44)
Blenheim Group                      (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Plc        BGY     (5,823)       4,921      434
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST       (39)         567       (5)
Danka Bus System          DNK.L     (108)         540       34
Dawson Holdings           DWN.L      (12)         158      (19)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music              
   Industries Group       EMI     (1,264)       2,818     (253)
Euromoney Institutional
   Investor Plc           ERM.L      (88)         297      (56)
European Home Retail Plc  EHRL       (14)         111      (37)
Gartland Whalley                     (11)         145       (8)
Global Green Tech Group             (156)         408      (18)
Gondola Holdings Plc      GND.L     (239)         987     (396)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV         (4)         948     (175)
Homestyle Group Plc       HME        (29)         409     (124)
Imperial Chemical
   Industries Plc         ICI       (835)       8,881      (49)
Invensys PLC                      (1,031)       3,875      494
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L    (683)         492     (371)
Lambert Fenchurch Group               (1)       1,827        3

Lattice Group                     (1,290)      12,410   (1,228)
Leeds United              LDSUF.PK   (73)         144      (29)
M 2003 Plc                        (2,204)       7,205     (756)
Manchester City                      (17)         154      (21)
Micro Focus
   International Plc      MCRO.L     (14)         115      (11)
Mytravel Group            MT.L      (283)       1,159     (410)
Orange Plc                ORNGF     (594)       2,902        7
Park Group Plc            PKG.L       (5)         111      (13)
Partygaming Plc           PRTY       (46)         398     (110)
Premier Farner Plc        PFL        (33)         964      127
Premier Foods Plc         PFD.L      (31)       1,475       16
Probus Estates Plc        PBE.L      (28)         113      (49)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,134)       2,678      (45)
RHM Plc                   RHM       (586)       2,411       59
Saatchi & Saatchi         SSI       (119)         705      (41)
Seton Healthcare                     (11)         157        0
SFI Group                           (108)         178     (162)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,361)
UK Coal Plc               UKC        (25)         865      (62)
Virgin Mobile
   Holdings Plc           VMOB.L    (490)         155      (80)
Wincanton Plc             WIN        (66)       1,236      (71)


                           *********

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/books/to 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.  Jazel Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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                 * * * End of Transmission * * *