TCREUR_Public/061023.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

           Monday, October 23, 2006, Vol. 7, No. 210

                           Headlines


A U S T R I A

ANGEL LLC: Creditors' Meeting Slated for November 6
I-PENTA LLC: Innsbruck Court Orders Business Shutdown
KARL KORHERR: Creditors' Meeting Slated for November 8
KLAUS HOERMANN: Claims Registration Period Ends October 31
MAKLERPOOL LLC: Creditors' Meeting Slated for November 7


B E L G I U M

CHEMTURA CORP: Moody's Revised Outlook on Weak Cash Flow


C Y P R U S

TMK OAO: Raises US$155 Million from Syndicated Credit Facility
TMK OAO: Installs Gas Purification System at Volzhsky Site


C Z E C H   R E P U B L I C

HEXION SPECIALTY: Subsidiaries to Offer US$825-Mln Secured Notes


D E N M A R K

NOVOLIPETSK STEEL: Mulls Joint Venture with Duferco
NOVOLIPETSK STEEL: EC Reviews Joint Venture with Duferco
TDC A/S: Appoints Jens Alder as Chief Executive Officer


F R A N C E

ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005
OMNOVA SOLUTIONS: Improved Performance Spurs S&P to Lift Ratings


G E R M A N Y

BACKEREI HANSEN: Claims Registration Ends October 25
BACKEREI UND KONDITOREI: Claims Registration Ends October 31
BRANDENBURGER BUERGERHILFE: Claims Registration Ends October 25
DAIMLERCHRYSLER: Seeks to Boost Production Capacity in China
ELECTRO REDEKER: Claims Registration Ends October 30

ESTERLINE TECH: Moody's Assigns Loss-Given-Default Ratings
GESKE GMBH: Claims Registration Ends October 26
ISOFLOCK AKTIENGESELLSCHAFT: Creditors' Meeting Set for Oct. 26
IXOS GEBAUDESERVICE: Claims Registration Ends October 25
MOEBELHANDEL HANS: Claims Registration Ends October 30

NOVA CHEMICALS: Moody's Cuts Debt Ratings to Ba3 from Ba2
ROLF ABBRUCH: Claims Registration Ends October 27
SCHMIDT'S BACKSTUBE: Claims Registration Ends October 25
TRM CORP: S&P Withdraws Corp. Credit & Sr. Secured Ratings


G R E E C E

OLYMPIC AIRLINES: Launches Tender for IT Services Contract


H U N G A R Y

AES CORP: Files US$40-Million Lawsuit Against Alstom in Delaware
AES CORP: Moody's Assigns Loss-Given-Default Ratings


I T A L Y

CNH GLOBAL: DBRS Holds Sr. Unsecured Debt's Rating at BB(High)


K A Z A K H S T A N

A-SERVICE: Akmola Court Opens Bankruptcy Proceedings
ALLIANCE DPR: Fitch Assigns Issuer Default Rating at BB+
BARLYK PLUS: Creditors Must File Claims by Nov. 19
BELIEF VERA: Creditors Must File Claims by Nov. 19
KRISTALL LLP: East Kazakhstan Court Starts Bankruptcy Procedure

NOVAYA JIZN: Almaty Court Begins Bankruptcy Proceedings
OBYEDINENNYI PROTSESSINGOVYI: Creditors' Claims Due Nov. 19
OREL LLP: East Kazakhstan Court Begins Bankruptcy Proceedings
SATKO LLP: Almaty Court Commences Bankruptcy Proceedings
TENGIZ KOPIR: Creditors' Claims Due Nov. 19


K Y R G Y Z S T A N

KOSHOY-TRANS: Proof of Claim Deadline Slated for Nov. 24


L U X E M B O U R G

PSB FINANCE: Parent Completes Placement of B-Rated Eurobonds


N E T H E R L A N D S

CORUS GROUP: Board Approves Tata Steel's Takeover Bid
DEMIR-HALK: Fitch Keeps Issuer Default Rating at BB
LAURUS N.V.: Settles Obligation Dispute with HMG
LAURUS N.V.: Board Appoints J.G.B. Brouwer as President & CEO


N O R W A Y

MOOG INC: Moody's Assigns Loss-Given-Default Rating


P O L A N D

OMNOVA SOLUTIONS: Improved Performance Spurs S&P to Lift Ratings


P O R T U G A L

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


R U S S I A

BASHUROVSKOYE CJSC: Court Names V. Podkorytov to Manage Assets
BUILDER-1 CJSC: Court Names O. Syskov as Insolvency Manager
CHERNIGOVSKIY COMBINE: Court Names D. Burtylev to Manage Assets
GARMENT FACTORY: Court Names A. Lavrov as Insolvency Manager
IRTYSH: Tomsk Court Names V. Babenko as Insolvency Manager

KAMCHATSKOYE WOODWORKING: Names G. Chmutina to Manage Assets
KURGAN-PROM-STROY: Bankruptcy Hearing Slated for Dec. 25
LUKOIL OAO: Issuing RUR14-Billion Bonds via Public Placement
MDM BANK: Secures US$169-Mln Credit Limit from USDA
NOVOLIPETSK STEEL: Mulls Joint Venture with Duferco

NOVOLIPETSK STEEL: EC Reviews Joint Venture with Duferco
OMSKAYA FURNITURE: Court Names A. Shipitsyn to Manage Assets
PROMSVYAZBANK: Completes Placement of B-Rated Eurobonds
ROSNEFT OAO: Forms Vostok Energy Joint Venture with CNPC
SVYAZ-TRANS-STROY-KHABAROVSK: Court Starts Bankruptcy Process

TMK OAO: Raises US$155 Million from Syndicated Credit Facility
TMK OAO: Installs Gas Purification System at Volzhsky Site
TONKINO-AGRO-PROM-ENERGO: Court Starts Bankruptcy Supervision
TRANSIT-OIL: Court Names A. Lavrov as Insolvency Manager
USSURIYSKIY STONE: Court Starts Bankruptcy Supervision Procedure

ZVERINOGOLOVSKIY: Court Names V. Vinogradov to Manage Assets
ZYRYANSKIY BAKERY: Court Starts Bankruptcy Supervision Procedure


S P A I N

ARINC INC: Moody's Assigns Loss-Given-Default Ratings


S W I T Z E R L A N D

CONVERIUM HOLDINGS: A.M. Best Puts "b-" Debt Rating Under Review
HCA INC: Moody's Assigns Provisional Ratings to LBO Financing
HEXION SPECIALTY: Subsidiaries to Offer US$825-Mln Secured Notes
NOVA CHEMICALS: Moody's Cuts Debt Ratings to Ba3 from Ba2


T U R K E Y

DEMIR-HALK: Fitch Keeps Issuer Default Rating at BB
DENIZBANK AS: Zorlu Transfers 75% Stake to Dexia Participation
DENIZ FINANSAL: Fitch Lifts IDR to BB on Equity Purchase
TURKIYE PETROL: Fitch Affirms Foreign Currency Rating at BB


U K R A I N E

AVTOTRANSVTORMA: Court Names T. Kushnir as Insolvency Manager
DONBASTORGKOMPLEKT: Court Names Oleksandr Klinchev as Liquidator
KOSHMANIVKA AGRICULTURAL: Court Starts Bankruptcy Supervision
KREDITPROMBANK: Moody's Rates Loan Participation Notes at B2
KREDITPROMBANK: Fitch Assigns B- Rating on Upcoming Eurobond

KREMENCHUK-AUTO: Court Names I. Chornokondratenko as Liquidator
MALIN BUTTER-CHEESE: Court Names Nataliya Gubitska as Liquidator
NADIYA: Court Names Tetyana Pilipenko as Insolvency Manager
NOVI SANZHARI: Court Names O. Bruhovetskij as Liquidator
SFERA: Donetsk Court Names Ludmila Zayikina as Liquidator


U N I T E D   K I N G D O M

BECKMAN COULTER: Lumigen Deal Cues Moody's to Hold Ratings
BOCKMANN U.K.: Appoints J. M. Titley as Liquidator
BURNTWOOD FENCING: Claims Filing Period Ends Nov. 28
BUSY BEES: Taps Liquidator from DTE Leonard Curtis
CENTRAL SOUTHERN: Brings In Bridgers to Administer Assets

CHUNK LIMITED: Names Mark S. Reynolds as Administrator
CORUS GROUP: Board Approves Tata Steel's Takeover Bid
DERITEND ENGINEERING: Taps Administrators from P&A
DIGITAL RUM: Appoints Moore Stephens to Administer Assets
DIRECT SERVICES: Names T. Papanicola as Administrator

DIRECT WINDOW: Hires David R. Acland to Liquidate Assets
DIVE 69: Names Elizabeth Arakapiotis Liquidator
DOLE FOOD: Restructuring Fresh Flower Business
DOLE FOOD: Deal on JP Fruit Sale Expected in a Few Weeks
EASIWIPES LIMITED: Brings In Administrators from KPMG

FIRST HOUSING: Nominates Ninos Koumettou as Liquidator
HCA INC: Moody's Assigns Provisional Ratings to LBO Financing
HSBC BANK: Fitch Places B- Rating on Upcoming Bond Issue
HOUSE OF EUROPE: S&P Rates EUR6-Mln Class E2 Notes at BB
INCO LTD: CVRD Obtains Canadian Approval for Inco Cash Offer

INK WORKS: Brings In Liquidators from CBA
INTERIOR MOTIVES: Calls In Liquidators from PKF (U.K.) LLP
LEISURETRONICS LTD.: Creditors' Meeting Slated for October 31
LEVELMIST LIMITED: Taps Begbies Traynor as Administrators
LEXI HOLDINGS: Hires KPMG to Administer Assets

LOGIC FIRE: Taps BDO Stoy as Joint Administrators
LONDON & ESSEX: Appoints Liquidators from Ashcrofts
LUCKY DRAGON: Names Liquidators from Wilson Field
M E ENGINEERING: Hires Vantis Redhead as Administrators
MCCANN WASTE: Appoints Administrator from Bond Partners

MILOSTAR LIMITED: Names Administrators from Cresswall Associates
NEEDLEY & FIELDS: Taps Liquidator from Daly & Co.
NEWGATE FUNDING: Fitch Puts Low-B Ratings to GBP12.4-Mln Notes
NEWGATE FUNDING: S&P Puts BB Ratings on GBP12.4-Mln Notes
ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005

PROCOM MANAGEMENT: Hires Liquidators from Gibson Hewitt
PRS HAYWARDS: Appoints Liquidator from B & C Associates
REFCO INC: Ad Hoc Equity Panel Objects to Disclosure Statement
REJUVENATE SPA: N. A. Bennett Leads Liquidation Procedure
RITE PEOPLE: Brings In Administrators from Vantis

ROGER PAPWORTH: Claims Registration Ends Feb. 4, 2007
S. P. S. SYSTEMS: Names Liquidator from Wilkins Kennedy
SATURN WINDOW: Brings in Peter O'Hara to Liquidate Assets
SPACE OUT: Joint Liquidators Take Over Operations
SPIRIT AEROSYSTEMS: Moody's Assigns Loss-Given-Default Ratings

TRANSITIONS ASSOCIATES: Hires Liquidator from Parkin S. Booth
TRINITY METHODIST: Gary Stones Leads Liquidation Procedure
TRM CORP: S&P Withdraws Corp. Credit & Sr. Secured Ratings
UNITED BISCUITS: Fitch Withdraws B-/RR4 Ratings on Senior Notes
YORKSHIRE PRINT: Taps Joint Administrators from KPMG

* DLA Piper Introduces Two Managing Partners in U.K. Team
* European High-Yield Issuances Hike Default Risk, Fitch Says

                            *********

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


ANGEL LLC: Creditors' Meeting Slated for November 6
---------------------------------------------------
Creditors owed money by LLC Angel (FN 238704k) are encouraged to
attend the creditors' meeting at 10:45 a.m. on Nov. 6 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1705
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 8 (Bankr. Case No. 3 S 129/06z).  Michael Neuhauser
serves as the court-appointed property manager of the bankrupt
estate.  Stefan Jahns represents Mag. Neuhauser in the
bankruptcy proceedings.

The property manager can be reached at:

         Mag. Michael Neuhauser
         Mag. Stefan Jahns
         Esslinggasse 9
         1010 Vienna, Austria
         Tel: 536 50-0
         Fax: 536 50-14
         E-mail: officewien@aaa-law.at


I-PENTA LLC: Innsbruck Court Orders Business Shutdown
-----------------------------------------------------
The Land Court of Innsbruck entered an order Sept. 7 shutting
down the business of LLC i-penta (FN 215188d).  Court-appointed
property manager Otmar Schimana recommended the business
shutdown after determining that the continuing operations would
reduce the value of the estate.

The property manager and his representative can be reached at:

         Dr. Otmar Schimana
         c/o Dr. Markus Kostner
         Schoepfstrasse 6 a
         6020 Innsbruck, Austria
         Tel: 0512/561570
         Fax: 0512/56157015
         E-mail: office@schimana.com
                 markus.kostner@aon.at

Headquartered in Innsbruck, Austria, the Debtor declared
bankruptcy on Sept. 1 (Bankr. Case No. 19 S 85/06g).  Markus
Kostner represents Dr. Schimana in the bankruptcy proceedings.
Dr. Klaus Vergeiner represents the Debtor in the bankruptcy
proceedings.


KARL KORHERR: Creditors' Meeting Slated for November 8
------------------------------------------------------
Creditors owed money by LLC Karl Korherr & Co (FN 5454x) are
encouraged to attend the creditors' meeting at 9:30 a.m. on
Nov. 8 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

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

Headquartered in Thaya, Austria, the Debtor declared bankruptcy
on Sept. 8 (Bankr. Case No. 9 S 44/06b).  Heinrich Nagl serves
as the court-appointed property manager of the bankrupt estate.

The property manager can be reached at:

         Dr. Heinrich Nagl
         Pfarrgasse 5
         3580 Horn, Austria
         Tel: 02982/2278
         Fax: 02982/4479
         E-mail: dr.nagl.horn@aon.at


KLAUS HOERMANN: Claims Registration Period Ends October 31
----------------------------------------------------------
Creditors owed money by KEG Klaus Hoermann (FN 152802i) have
until Oct. 31 to file written proofs of claims to court-
appointed property manager Gerald Gerstacker at:

         Mag. Gerald Gerstacker
         c/o Mag. Norbert Abel
         Schrannenplatz 3/I
         2340 Moedling, Austria
         Tel: 02236/864567
         Fax: 02236/864567/1
         E-mail: g.gerstacker@utanet.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Nov. 14 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt, Austria

Headquartered in Moedling, Austria, the Debtor declared
bankruptcy on Aug. 17 (Bankr. Case No. 11 S 84/06y).


MAKLERPOOL LLC: Creditors' Meeting Slated for November 7
--------------------------------------------------------
Creditors owed money by LLC Maklerpool (FN 240438k) are
encouraged to attend the creditors' meeting at 11:00 a.m. on
Nov. 7 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of St. Poelten
         Room 216
         2nd Floor (Old Building)
         St. Poelten, Austria

Headquartered in St. Valentin, Austria, the Debtor declared
bankruptcy on Sept. 8 (Bankr. Case No. 14 S 140/06p).  Wolfgang
Strasser serves as the court-appointed property manager of the
bankrupt estate.

The property manager can be reached at:

         Dr. Wolfgang Strasser
         Main Place 11
         4300 St. Valentin, Austria
         Tel: 07435/52437
         Fax: 07435/52437-21
         E-mail: st-valentin@advocat24.at


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


CHEMTURA CORP: Moody's Revised Outlook on Weak Cash Flow
--------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Middlebury, Conn.-based Chemtura Corp. to stable from positive
and affirmed the existing 'BB+' corporate credit and senior
unsecured debt ratings.

The outlook revision reflects diminished expectations for the
strengthening of key cash flow protection measures because of
poor profitability in certain businesses and less-than-expected
debt reduction.

Chemtura's progress toward the improvement of the balance sheet
has been hampered in part by payments for antitrust litigation,
restructuring activities, and debt retirement premiums.

"Still, management's ongoing efforts to address problem
operations and commitment to strengthening the capital structure
enhance prospects that credit quality metrics can improve to the
level appropriate for the current ratings perhaps by the end of
2007," said Standard & Poor's credit analyst Wesley E. Chinn.

The ratings on Chemtura incorporate the vulnerability of its
operating results to competitive pricing pressures, raw-material
costs, and cyclical markets; and weak cash flow protection
measures.  These aspects are tempered by a diversified portfolio
of specialty and industrial chemical businesses (generating
annual pro forma revenues of roughly US$3.9 billion), which
reflects the July 2005 acquisition of Great Lakes Chemical Corp.
for approximately US$1.6 billion in common stock, plus the
assumption of debt.  The transaction resulted in an immediate
strengthening of Chemtura's business mix and cash flow
protection measures, because of the equity-financed acquisition
of a much higher-rated company.

Great Lakes Chemical added complementary product lines to
Chemtura's existing plastics additives portfolio as well as
recreational water chemicals (which has a strong market share)
and brominated flame-retardants businesses.  Key businesses of
the combined company serve diverse markets and include plastic
and specialty additives, urethane prepolymers, pool and spa
chemicals, crop protection chemicals, brominated flame-
retardants, and petroleum additives.  Still, a significant
percentage of the sales base consists of products where
profitability is being punished by markets, which are commodity-
like and highly competitive.

Consequently, the company continues to rationalize the number of
customers and products, fine-tune pricing initiatives, and
reduce the cost base in certain product lines.  Management is
also seeking to shed under-performing or non-core businesses.


===========
C Y P R U S
===========


TMK OAO: Raises US$155 Million from Syndicated Credit Facility
--------------------------------------------------------------
OAO TMK has successfully closed a US$155 million syndicated
structured facility.  Bank Natexis (ZAO), Moscow, the Russian
banking subsidiary of Natexis Banques Populaires, acted in the
sole of mandated lead arranger, facility agent and book runner.

The syndication is regarded as having been very successful: the
loan has been 47% oversubscribed from the US$105 million
originally sought allowing for an increase of the loan up to
US$155 million.  The pool of banks includes Russian banks and
international banks through their local subsidiaries:

   -- Mandated Lead Arranger: Bank Natexis ZAO

   -- Senior Lead Arrangers:

         -- Commerzbank (Eurasia), Moscow
         -- Gazprombank, Moscow
         -- ING Bank "Eurasia" ZAO, Moscow
         -- International Moscow Bank
         -- Societe Generale S.A., Paris, and
         -- Banque Societe Generale Vostok, Moscow

The facility has been signed and drawn at the end of September
2006.

The transaction has a margin of 2.20% p.a. and is a 30-month
multi-currency amortizing structured facility with an option for
tenor extension up to 42 months. The facility is secured at all
times by an assignment and pledge of commercial contracts for
the delivery of tubular products by TH TMK to prime Russian oil
companies and by a pledge of goods in circulation.

The transaction is very innovative as it is the first loan for a
Russian borrower backed with a security package registered
purely under Russian law syndicated among international and
Russian banks.

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmkgroup.ru/eng/-- manufactures the entire product
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                        *     *     *

As reported in TCR-Europe on Sept. 11, Moody's Investors Service
assigned a B1 corporate family rating to TMK and a (P)B2 senior
unsecured rating to the loan participation notes issued by TMK
Capital S.A., guaranteed by the operating subsidiaries of TMK.
Moody's said the outlook on both ratings is positive.

On Sept. 9, the TCR-Europe reported that Standard & Poor's
Ratings Services assigned a 'B+' long-term corporate credit
rating to OAO TMK.  Standard & Poor's also assigned its 'B+'
preliminary senior unsecured debt rating to TMK's proposed
Eurobond, which will be issued by special-purpose vehicle TMK
Capital S.A.


TMK OAO: Installs Gas Purification System at Volzhsky Site
----------------------------------------------------------
OAO TMK has launched a new gas purification system in the
electrical steel smelting production unit of Volzhsky Pipe
Plant, a subsidiary.  The new system was launched as part of a
program to modernize and re-equip the production capacity of TMK
subsidiaries.

The reconstruction of the gas purification system for electric
steel smelting at Volzhsky Pipe Plant is one of TMK's most
important investment projects.  Quad Engineering of Canada, one
of the world's leading manufacturers of industrial gas
purification systems, engineered and supplied the equipment for
the gas purification system.  The gas conduits, electrical
equipment, automation gear and water systems were assembled by
Montazhspetsstroy, which acted as general contractor.

The need to reconstruct the gas purification system was due to
the increased capacity of the electric smelting furnace after
its modernization in 2005, as well as the intensification of the
technological process.

The governor of Volgograd Oblast Nikolai Maksyuta congratulated
the employees of Volzhsky Pipe Plant on the launch of the new
modern gas purification system.  Speaking at a gala celebration
to mark the event, the governor noted TMK's significant
contribution to the increased investment attractiveness of the
region and to preserving its natural environment.  In the words
of TMK General Director Konstantin Semerikov, TMK's ecological
investments reflect the company's commitment to the principles
of sustainable development and to ensuring the conformity of the
company's ecological management system with international
standards.

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmkgroup.ru/eng/-- manufactures the entire product
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                        *     *     *

As reported in TCR-Europe on Sept. 11, Moody's Investors Service
assigned a B1 corporate family rating to TMK and a (P)B2 senior
unsecured rating to the loan participation notes issued by TMK
Capital S.A., guaranteed by the operating subsidiaries of TMK.
Moody's said the outlook on both ratings is positive.

On Sept. 9, the TCR-Europe reported that Standard & Poor's
Ratings Services assigned a 'B+' long-term corporate credit
rating to OAO TMK.  Standard & Poor's also assigned its 'B+'
preliminary senior unsecured debt rating to TMK's proposed
Eurobond, which will be issued by special-purpose vehicle TMK
Capital S.A.


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C Z E C H   R E P U B L I C
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HEXION SPECIALTY: Subsidiaries to Offer US$825-Mln Secured Notes
----------------------------------------------------------------
Hexion Specialty Chemicals, Inc.'s wholly owned finance
subsidiaries, Hexion 2 U.S. Finance Corp. and Hexion 2 Nova
Scotia Finance ULC, intend to offer through a private placement
an aggregate of $825 million of Second-Priority Senior Secured
Floating Rate Notes Due 2014 and Second-Priority Senior Secured
Notes Due 2014.

The senior secured Notes will be guaranteed by the Company and
certain of its domestic subsidiaries and will be senior
obligations secured by a second-priority lien on certain of the
Company and its subsidiaries' existing and future assets.  The
floating rate notes and the fixed rate notes will each have
eight-year maturities with interest payable in cash.  The Senior
Secured Notes will be offered within the United States only to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, and, outside the United States, only to
non-U.S. investors in reliance on Regulation S.

The Company disclosed that the Senior Secured Notes will not be
and have not been registered under the Securities Act of 1933,
as amended, or any state securities laws, and unless so
registered, may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
Company has 86 manufacturing and distribution facilities in 18
countries.

                          *     *     *

As reported in TCR-Europe on Oct. 19, Moody's Investors Service
assigned B3 ratings to the new guaranteed senior secured second
lien notes due 2014 of Hexion Specialty Chemicals Inc.  The
company expects to issue roughly US$825 million of notes split
(55/45) between fixed and floating rate notes.

As reported in the Troubled Company Reporter on May 4, Standard
& Poor's Ratings Services assigned its 'B+' rating and its
recovery rating of '3' to Hexion Specialty's US$1.675 billion
senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


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


NOVOLIPETSK STEEL: Mulls Joint Venture with Duferco
---------------------------------------------------
OJSC Novolipetsk Steel is in discussions with Duferco
Participations Holding Limited to create a joint venture that
would acquire certain steel production facilities currently
owned by Duferco in Europe and the United States.

The main companies expected to be acquired by the joint venture
include:

   -- Duferco Farrell Corporation (U.S.A.),
   -- Carsid S.A. (Belgium),
   -- Duferco Clabecq S.A. (Belgium),
   -- Duferco La Louviere S.A. (Belgium),
   -- Duferco Coating S.A.S. (France),
   -- Sorral S.A. (France),
   -- Acciaierie Grigoli S.p.a. (Italy), and
   -- Duferco Transformation Europe (France).

The transaction, which is subject to the negotiation and
execution of a definitive agreement and competition and other
approvals, will be completed by the end of the year.

                         About Duferco

Headquartered in La Louviere, Belgium, Duferco S.A. --
http://www.duferco.com/-- manufactures and processes steel.

                       About Novolipetsk

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 also operates in Denmark.

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.


NOVOLIPETSK STEEL: EC Reviews Joint Venture with Duferco
--------------------------------------------------------
The European Commission is reviewing the proposed joint venture
between steel producers OJSC Novolipetsk Steel and Duferco
Participations Holding Ltd., AFX News says.

The European Union's executive arm, however, believes that the
joint venture, which would combine the companies' U.S. and some
European operations, does not pose any competition concerns.
The regulator hopes to complete its review by Nov 21.

                         About Duferco

Headquartered in La Louviere, Belgium, Duferco S.A. --
http://www.duferco.com/-- manufactures and processes steel.

                       About Novolipetsk

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 also operates in Denmark.

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.


TDC A/S: Appoints Jens Alder as Chief Executive Officer
-------------------------------------------------------
The Board of Directors of TDC A/S has signed a Service Agreement
with Jens Alder, engaging her as Chief Executive Officer of the
Company as of Nov. 1.  Ms. Alder, aged 49, was until the end of
January 2006 President and CEO of Swisscom.

The present CEO, Henning Dyremose, will resign as CEO by
Oct. 31.  Mr. Dyremose will continue as special advisor employed
by the Company until the Annual General Meeting of TDC in March
2007.

At the constituent Board meeting following the Annual General
Meeting, Mr. Dyremose is expected to be elected new Chairman of
the Board of Directors.

                         About TDC

Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.com/-- provides communications solutions in
Denmark and is the second-largest telecommunications provider on
the Swiss market.  It has a presence in a number of select
markets in Northern and Central Europe due to its shareholdings
in major companies.

                        *     *     *

As reported in TCR-Europe on May 11, Fitch affirmed TDC A/S's
Issuer Default Rating at BB- with Stable Outlook and senior
secured bank facilities at BB+.

The various notes issued under TDC's EMTN program are affirmed
at BB-.

EMTN bonds rated BB-:

   -- DEM 5.0% notes due 2008;
   -- JPY 1.28% notes due 2008;
   -- EUR 5.625% notes due 2009; and
   -- EUR 6.5% notes due 2012.


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


ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005
------------------------------------------------------------
Odyssey Re Holdings Corp. has filed its Annual Report on Form
10-K/A for the year ended Dec. 31, 2005, with the U.S.
Securities and Exchange Commission, restating its consolidated
financial statements as of and for the years ended Dec. 31,
2005, 2004 and 2003, along with affected Selected Consolidated
Financial Data for 2002 and 2001 and quarterly financial
information for 2005 and 2004.

The restatement corrects the accounting treatment for
investments containing embedded derivatives and certain equity
method investments.  The corrections relating to these
investments, which include the impact of changes in other
comprehensive income, resulted in a cumulative increase in
shareholders' equity of US$16.0 million, to US$1.64 billion, as
of Dec. 31, 2005.  The aggregate net effect of the restatement
for each period is to increase 2005 net loss by US$12.2 million,
increase 2004 net income by US$6.9 million, increase 2003 net
income by US$12.4 million, increase 2002 net income by US$11.2
million and increase 2001 net loss by US$3.4 million.  The
financial information contained in the Odyssey Re's Form 10-K/A
for the year ended Dec. 31, 2005, reflects the impact of this
restatement.  The effect of this restatement was reported in the
company's Quarterly Report on Form 10-Q for the second quarter
of 2006.

In connection with the restatement, management has determined
that Odyssey Re did not maintain effective controls, review
procedures and communications related to investment accounting
to ensure conformity with generally accepted accounting
principles, which constitutes a material weakness.  To address
the material weakness, management will implement a remediation
plan that will supplement the existing controls of the company.

Odyssey Re Holdings Corp. is an underwriter of property and
casualty treaty and facultative reinsurance, as well as
specialty insurance.  OdysseyRe operates through its
subsidiaries, Odyssey America Reinsurance Corporation, Hudson
Insurance Company, Hudson Specialty Insurance Company,
Clearwater Insurance Company, Newline Underwriting Management
Limited and Newline Insurance Company Limited.  The Company
underwrites through offices in the United States, London, Paris,
Singapore, Toronto and Mexico City.  Odyssey Re Holdings Corp.
is listed on the New York Stock Exchange under the symbol ORH.

                        *    *    *

Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2
from Moody's and BB from Fitch.  The Company's senior unsecured
debt and long-term issuer default ratings also carry BB+ from
Fitch.  Moody's placed its rating on Oct. 12, 2005 with a stable
outlook.  Fitch placed its ratings on March 23, 2006.


OMNOVA SOLUTIONS: Improved Performance Spurs S&P to Lift Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on
performance chemicals and decorative products manufacturer
OMNOVA Solutions Inc.  The corporate credit rating was raised to
'B+' from 'B'.  The outlook is stable.

"The upgrade acknowledges OMNOVA's improving operating
performance, the strengthening of the financial profile, and the
potential for additional debt reduction following the September
2006 sale of the GenFlex Building Products business," said
Standard & Poor's credit analyst David Bird.

OMNOVA sold GenFlex to Firestone Building Products Co. for
approximately US$40 million.  Based on management's commitment
to improving the financial profile, Standard & Poor's expects
the company to use the majority of the proceeds from the sale to
reduce debt.

The ratings reflect OMNOVA's vulnerable business position as a
niche provider of emulsion polymers, specialty chemicals, and
decorative products to mature and highly competitive markets.

The ratings also reflect OMNOVA's exposure to volatile raw
material costs, many of which are derived from oil and natural
gas, and its highly aggressive financial profile.  These
attributes are only partially offset by competitive business
positions as the No. 1 or No. 2 supplier in each of its key end
markets and moderate product diversification.

OMNOVA generated approximately $698 million in revenues over the
past 12 months ended Aug. 31, 2006 (pro forma for the sale of
the GenFlex business).  Also on that date, the company
maintained approximately US$203 million of total debt (adjusted
to capitalize operating leases) outstanding, excluding any
improvements in the capital structure from the proceeds
generated by the sale.


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


BACKEREI HANSEN: Claims Registration Ends October 25
----------------------------------------------------
Creditors of Backerei Hansen GbR have until Oct. 25 to register
their claims with court-appointed provisional administrator
Ygglev Stintzing.

Creditors and other interested parties are encouraged to attend
the meeting at 9:40 a.m. on Nov. 15 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 Flensburg
         Hall A 220
         Flensburg, 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 Flensburg opened bankruptcy proceedings
against Backerei Hansen GbR on Sept. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Backerei Hansen GbR
         Attn: Anke Ose and Hendrik Hansen, Managers
         Untergasse 8
         61389 Schmitten, Germany

The administrator can be contacted at:

         Ygglev Stintzing
         Rathausstrasse 1
         24937 Flensburg, Germany


BACKEREI UND KONDITOREI: Claims Registration Ends October 31
------------------------------------------------------------
Creditors of Backerei und Konditorei Petry GmbH i.G. have until
Oct. 30 to register their claims with court-appointed
provisional administrator Joachim Klein II.

Creditors and other interested parties are encouraged to attend
the meeting at 9:58 a.m. on Nov. 30 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 Cologne
         Meeting Room 14
         Ground Floor
         Luxemburger Road 101
         50939 Cologne, 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 Cologne opened bankruptcy proceedings
against Backerei und Konditorei Petry GmbH i.G. on Aug. 21.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Backerei und Konditorei Petry GmbH i.G.
         Industrial Road 165-167
         50999 Cologne, Germany

         Attn: Petra Petry, Manager
         Unterer Buschweg 78
         50999 Cologne, Germany

The administrator can be contacted at:

         Joachim Klein II
         Hansaring 79-81
         50670 Cologne, Germany


BRANDENBURGER BUERGERHILFE: Claims Registration Ends October 25
---------------------------------------------------------------
Creditors of Brandenburger Buergerhilfe e.V. have until Oct. 25
to register their claims with court-appointed provisional
administrator Ulrich Wenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Nov. 15 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 Potsdam
         Hall 301
         3rd Floor
         Branch Linden Road 6
         14467 Potsdam, 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 Potsdam opened bankruptcy proceedings
against Brandenburger Buergerhilfe e.V. on Sept. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Brandenburger Buergerhilfe e.V.
         Flamingstrasse 17
         14770 Brandenburg, Germany

The administrator can be contacted at:

         Dr. Ulrich Wenzel
         Grossbeerenstrasse 231
         14480 Potsdam, Germany


DAIMLERCHRYSLER: Seeks to Boost Production Capacity in China
------------------------------------------------------------
DaimlerChrysler AG seeks to boost its local production capacity
in Asia, particularly in China, apart from its plans to further
expand its business in Western and Eastern Europe, the China
Daily reports.

"In order to secure our growth over the long term, we want to
significantly increase our presence in the Asian market, of
which China is a major aspect," the Daily quotes Andreas
Renschler, member of the firm's board of management and head of
its truck group and buses, as saying.

"China is a crucial market for us both in the present and in the
future," Mr. Renschler adds.  "It holds a very important
position in our overall business strategy."

The China Daily recounts that KPMG, a consultancy firm, said in
a report published in September that China's commercial vehicle
market is expected to sustain double-digit growth in the coming
years.

According to KPMG's report, extensive road projects, increased
urbanization and a heavy reliance on public transport should
drive the automobile maker industry's growth.

"This is good news for us," Mr. Renschler said.

DaimlerChrysler's revenue on its heavy-duty trucks leapt 48%
year-on-year in the first eight months of 2006, according to
Till Becker, chairman and CEO of DaimlerChrysler North East Asia
and chairman of the firm's China executive board.

Moreover, the company has already sold 700 Mercedes-Benz branded
Actros -- its flagship truck product in China this year -- a
number that exceeds the model's total sales in 2005, according
to Mr. Renschler.

He added that the company is also planning to introduce its
technologically advanced truck products to China such as the
Blue-Tec Diesel technology, which meets Euro emission standard 4
and 5 but achieves fuel savings of up to 6 per cent compared to
Euro 3.

All DaimlerChrysler trucks sold in China are currently imported,
adding to the cost of these already expensive vehicles.

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.

It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia, and Thailand.

                          *     *     *

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of US$6.4 billion based on an
expected full-year operating loss of approximately US$1.2
billion for its Chrysler Group.

On Oct. 2, the Troubled Company Reporter - Asia Pacific reported
that DaimlerChrysler revealed its plans for a partnership with
China's Chery Automobile to produce cars for sale in the United
States and other markets.


ELECTRO REDEKER: Claims Registration Ends October 30
----------------------------------------------------
Creditors of Electro Redeker GmbH have until Oct. 30 to register
their claims with court-appointed provisional administrator
Henning Bungart.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 Essen
         Hall 293
         2nd Floor
         Principal Establishment
         Gelber Bereich
         Zweigertstr. 52
         45130 Essen, 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 Essen opened bankruptcy proceedings
against Electro Redeker GmbH on Sept. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Electro Redeker GmbH
         Attn: Thorsten Redeker, Manager
         Wuelfingstr. 3-5
         45525 Hattingen, Germany

The administrator can be contacted at:

         Henning Bungart
         Zweigertstrasse 43
         45130 Essen, Germany
         Tel: (0201) 793613
         Fax: (0201) 777516


ESTERLINE TECH: 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, the rating agency confirmed its Ba2 Corporate
Family Rating for Esterline Technologies Corp. and its Ba3
rating on the company's 7.75% Senior Subordinated Notes due
2013.  Moody's assigned those debentures an LGD5 rating
suggesting noteholders will experience a 75% loss in case of
default.

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 Bellevue, Washington, Esterline Technologies
Corp. -- http://www.esterline.com/-- is a specialized
manufacturing company serving principally aerospace and defense
markets.  Esterline operates in three business segments:
Avionics and Controls, Sensors and Systems and Advanced
Materials.  The company has manufacturing facilities in Germany,
France and the United Kingdom.


GESKE GMBH: Claims Registration Ends October 26
-----------------------------------------------
Creditors of Geske GmbH & Co. Kommanditgesellschaft have until
Oct. 26 to register their claims with court-appointed
provisional administrator Udo Claes-Hellmich.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Nov. 28 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 Bochum
         Hall A29
         Ground Floor
         Principal Establishment
         Viktoriastrasse 14
         44787 Bochum, 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 Bochum opened bankruptcy proceedings
against Geske GmbH & Co. Kommanditgesellschaft on Sept. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Geske GmbH & Co. Kommanditgesellschaft
         Hochstueck 11 a
         45701 Herten, Germany

         Attn: Roland Eitner, Manager
         Von-Burgsdorff-Str. 5
         44628 Herne, Germany

         Ralf Windgassen, Manager
         Virchowstr. 17
         40882 Ratingen, Germany

The administrator can be contacted at:

         Udo Claes-Hellmich
         Bahnhofstrasse 46
         45879 Gelsenkirchen, Germany


ISOFLOCK AKTIENGESELLSCHAFT: Creditors' Meeting Set for Oct. 26
---------------------------------------------------------------
The court-appointed provisional administrator ISOFLOCK
Aktiengesellschaft fuer elektrostatische Beflockung, Andreas
Ringstmeier, will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 11:00 a.m. on
Oct. 26.

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

         The District Court of Bonn
         Meeting Room W1.26
         1st Floor
         William Route 23
         53111 Bonn, Germany

The Court will also verify the claims set out in the
administrator's report at 8:30 a.m. on Dec. 13, at the same
venue.

Creditors have until Oct. 31 to register their claims with the
court-appointed provisional administrator.

The District Court of Bonn opened bankruptcy proceedings against
ISOFLOCK Aktiengesellschaft fuer elektrostatische Beflockung on
Sept. 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         ISOFLOCK Aktiengesellschaft
         fuer elektrostatische Beflockung
         Boevingen 125
         53804 Much, Germany

The administrator can be reached at:

         Dr. Andreas Ringstmeier
         Magnusstr. 13
         50672 Cologne, Germany


IXOS GEBAUDESERVICE: Claims Registration Ends October 25
--------------------------------------------------------
Creditors of IXOS Gebaudeservice GmbH i.L. have until Oct. 25 to
register their claims with court-appointed provisional
administrator Ulrich Weber.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 29 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The District Court of Frankfurt (Oder) opened bankruptcy
proceedings against IXOS Gebaudeservice GmbH i.L. on Sept. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         IXOS Gebaudeservice GmbH i.L.
         Dorfstrasse 12
         15370 Fredersdorf-Vogelsdorf, Germany

The administrator can be contacted at:

         Ulrich Weber
         Kurfürstendamm 212
         10719 Berlin, Germany


MOEBELHANDEL HANS: Claims Registration Ends October 30
------------------------------------------------------
Creditors of Moebelhandel Hans Tiggelbeck GmbH & Co. KG have
until Oct. 30 to register their claims with court-appointed
provisional administrator Heinrich Stellmach.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Muenster
         Meeting Room 101 B
         1st Floor
         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 Moebelhandel Hans Tiggelbeck GmbH & Co. KG on Aug. 31.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Moebelhandel Hans Tiggelbeck GmbH & Co. KG
         Attn: Hans Tiggelbeck and
         Hans Joerg Tiggelbeck, Managers
         Eschstrasse 101
         48703 Stadtlohn, Germany

The administrator can be contacted at:

         Heinrich Stellmach
         Salierstrasse 4
         46395 Bocholt, Germany


NOVA CHEMICALS: Moody's Cuts Debt Ratings to Ba3 from Ba2
---------------------------------------------------------
Moody's Investors Service downgraded NOVA Chemicals Corp.'s
corporate family rating and its senior unsecured debt ratings to
Ba3 from Ba2.  Moody's also affirmed NOVA's speculative grade
liquidity rating at SGL-3 and the company's LGD assessments.
The rating outlook is negative.

Ratings Downgraded:

Issuer: NOVA Chemicals Corp.

    * Corporate Family Rating, downgraded to Ba3 from Ba2;

    * Probability of Default Rating, downgraded to Ba3 from Ba2;

    * US$400 million Flt Rate Global Sr Unsec Notes
      due 11/2013, downgraded to Ba3 from Ba2;

    * US$400mm 6.5% Global Sr Unsec Notes due 1/2012,
      downgraded to Ba3 from Ba2;

    * US$125mm 7.25% Sr Unsec Debentures due 8/2028,
      downgraded to Ba3 from Ba2; and

    * US$100mm 7.875% Sr Unsec Debentures due 9/2025,
      downgraded to Ba3 from Ba2.

Ratings affirmed:

Issuer: NOVA Chemicals Corp.

    * Loss Given Default Assessments for all rated
      unsecured debt, LGD4; and

    * Speculative Grade Liquidity Rating, SGL-3.

The ratings downgrades reflects Moody's belief that the company
will fall short of expected peak metrics, including EBITDA and
free cash flow generation, in 2006 and hence its through-the-
cycle average metrics are not sufficient to support a Ba2
rating.

Although NOVA's Olefin business generated a record US$255
million of EBITDA (not including US$17 million of unrecognized
hedging losses) during the quarter, largely due to the
unprecedented feedstock differential versus Gulf Coast
producers, the consolidated EBITDA failed to exceed
US$200 million and the company was free cash flow negative by
more than US$100 million.  As a result, the company's balance
sheet debt and usage under the accounts receivable facility
increased above US$2.25 billion for the first time in five
years.  At this point in the cycle, Moody's does not believe
that debt should be approaching near record levels, given the
potential future volatility in earnings.  Additionally, when
using Moody's Chemical Industry Rating Methodology, the
company's metrics map to a very weak "Ba" rating.

The negative outlook reflects uncertainties over NOVA's future
financial performance given the anticipated downturn in the
ethylene and polyethylene margins over the next several years
and its ability to generate financial metrics that solidly
support the Ba3 corporate family rating with its current debt
load.  The key ratings drivers are Financial Strength,
Management Strategy and Business Profile.  If NOVA is unable to
keep EBITDA above US$450-500 million per year and reduce debt by
over US$300 million during the next two years, Moody's could
reassess the appropriateness of the company's Ba3 corporate
family rating.

Nova Chemicals is headquartered in Calgary, Alberta, Canada and
is a leading producer of ethylene, polyethylene, styrene,
polystyrene, and expanded polystyrene.  NOVA reported revenues
of US$6.3 billion for the last twelve months ending
Sept. 30, 2006.


ROLF ABBRUCH: Claims Registration Ends October 27
-------------------------------------------------
Creditors of ROLF Abbruch & Recycling GmbH have until Oct. 27 to
register their claims with court-appointed provisional
administrator Eduard Uebelacker.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Nov. 15 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 Meiningen
         Hall A 0105
         Linden Avenue 15
         Meiningen, 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 Meiningen opened bankruptcy proceedings
against ROLF Abbruch & Recycling GmbH on Aug. 24.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         ROLF Abbruch & Recycling GmbH
         Attn: Rolf Pfeffer, Manager
         Rotes Tal 4
         98530 Rohr, Germany

The administrator can be contacted at:

         Eduard Uebelacker
         Schwanthaler Str. 32/IV
         80336 Munich, Germany


SCHMIDT'S BACKSTUBE: Claims Registration Ends October 25
--------------------------------------------------------
Creditors of Schmidt's Backstube GmbH have until Oct. 25 to
register their claims with court-appointed provisional
administrator Kay Hassler.

Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on Nov. 15 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 Flensburg
         Hall A 220
         Flensburg, 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 Flensburg opened bankruptcy proceedings
against Schmidt's Backstube GmbH on Sept. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Schmidt's Backstube GmbH
         Attn: Stephan Schmidt and Jochen Schmidt, Managers
         Schleswiger Road 68
         24941 Flensburg, Germany

The administrator can be contacted at:

         Dr. Kay Hassler
         Wrangelstrasse 17-19
         24937 Flensburg, Germany


TRM CORP: S&P Withdraws Corp. Credit & Sr. Secured Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its CCC/Watch Dev/--
corporate credit and senior secured ratings for Portland, Ore.-
based TRM Corp. at the company's request.

"The company has refinanced its US$135 million and EUR15 million
credit facility with unrated bank debt," said Standard & Poor's
credit analyst Lucy Patricola.


===========
G R E E C E
===========


OLYMPIC AIRLINES: Launches Tender for IT Services Contract
----------------------------------------------------------
Olympic Airlines S.A. invites bidders for the tender of its
Information Technology Services, including essentially a
Passenger Services System (RES, TICKETING/FARES, DCS, IBE), a
Frequent Flyer System and a Yield Management System, on a hosted
environment to assist with several facets of the Company's
commercial and operational business, in accordance with the
terms specified in the Tender Documents.

Time is of essence to the contract to be concluded, in order to
achieve 100% E-ticketing operation the latest by end 2007 and
all systems to be fully operational by April 2007.

Participation in the tendering procedure requires experience in
supplying Reservations, DCS, Inventory Control and Ticketing
systems to other airlines, as specified in the Tender Documents.

Bids are acceptable only if submitted either directly by the
Bidder or through his especially for this Tender authorized
representative in Greece, stating in either case full name and
address.

Interested participants have until 12:00 GMT on Oct. 31 to
submit their bids by registered mail or courier in a sealed
envelope to:

         Olympic Airlines S.A.
         Attn.: Secretary of the B.o.D.
         Athens International Airport
         AIA Building 97, 5th km.
         Spata-Loutsa
         19019 Athens
         Greece

Bids will remain valid and binding until Jan. 31, 2007.

Request for receipt of Tender Documents, i.e.:

   -- invitation to bidders,

   -- terms of reference,

   -- technical specifications,

   -- specifying identity of the company, contact person, fax
      number and e-mail address,

must be addressed to:

         Olympic Airlines S.A.
         Attn. Mrs. Maria Giannouzi
         Legal Department
         Athens International Airport
         Building 97
         19019 Spata Attica
         Greece
         Fax: +30 2103565236

Each Bidder will bear all costs associated with the preparation
and submission of its bid, and the Company shall in no case be
responsible or liable for such costs, regardless of the conduct
or the outcome of the Tender process.

The Company reserves the right not to accept any Bid received
after the time set above.

Participation in this Tender procedure presupposes and is deemed
as acceptance of all its terms and conditions.  The Company is
not bound to accept the best or any Bid.  Furthermore, the
Company reserves the right to annul the Tender process and
reject all Bids at any time prior to award of contract by
informing the Bidders in writing, without thereby incurring any
liability to the Bidder having submitted the best offer or any
other Bidders, or any obligation to inform the Bidder having
submitted the best offer or any other Bidders on the grounds of
the Company's decision.

The present Invitation and the other Tender Documents are
governed by Greek law and in case of any disputes that my arise
from or in connection with this Invitation and the other Tender
Documents, the Courts of Athens shall have exclusive
jurisdiction.

Headquartered in Athens, Greece, Olympic Airlines S.A. --
http://www.olympicairlines.com/-- the holding company of the
Olympic Airways group of companies, flies passengers and cargo
to five continents, while offering ground handling, technical
maintenance and information technology services to third
parties.

The group's net loss widened to EUR87 million in 2004 from EUR23
million a year before.  Together with the 2004 deficit,
Olympic's EUR110 million in accumulated losses are nearly
equivalent to its EUR130 million in equity.


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


AES CORP: Files US$40-Million Lawsuit Against Alstom in Delaware
----------------------------------------------------------------
AES Corp. is seeking US$40 million from Alstom SA, a French
firm, in a trial of a warranty dispute that started in a federal
court in Delaware on Monday, Bloomberg reports.

Bloomberg notes that a unit of AES Corp. filed a lawsuit against
Alstom Power Inc. in 2004, claiming that the latter breached
contract over corrosion in pollution-control systems at an
US$800 million coal-fired power plant in Guyama, Puerto Rico.

The report says that Dane H. Butswinkas, the legal
representative of AES Corp., told the jurors on Monday that
parts of the 454-megawatt plant, which uses steam to generate
electricity, rusted to bits in a year after it started operating
in 2002.

Meanwhile, John Anthony Wolf, Alstom's attorney, said that AES
Corp. failed to maintain and run the equipment properly and that
AES Corp. is seeking exaggerated damages for problems that were
self-inflicted, Bloomberg relates.

Dane H. Butswinkas can be reached at:

            Williams & Connolly LLP
            725 Twelfth St., N.W.
            Washington, DC 20005
            Phone: 202-434-5110
            Fax: 202-434-5029
            E-mail: dbutswinkas@wc.com

John Anthony Wolf can be reached at:

            Ober Kaler
            120 East Baltimore Street
            Suite 800
            Baltimore, MD 21202-1643
            Phone: (410) 347-7346
            Fax: (410) 230-7272

                      About the Company

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

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

                        *     *     *

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

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

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


AES 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, the rating agency downgraded its B1 Corporate
Family Rating for AES 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
   ----------           -------  -------  ------   ----------

   Senior secured
   term loan due 2011     Ba2      Ba1      LGD1       2%

   Senior secured
   revolving credit
   facility due 2010      Ba2      Ba1      LGD1       2%

   Second priority
   senior secured notes
   8.75% due 2013         Ba3      Ba3      LGD3      40%

   Second priority
   senior secured notes
   9.00% due 2015         Ba3      Ba3      LGD3      40%

   Senior unsecured
   notes 8.75% due 2008    B1       B1      LGD4      55%

   Senior unsecured
   notes 9.50% due 2009    B1       B1      LGD4      55%

   Senior unsecured
   notes 9.375% due 2010   B1       B1      LGD4      55%

   Senior unsecured
   notes 8.875% due 2011   B1       B1      LGD4      55%

   Senior unsecured
   notes 7.75% due 2014    B1       B1      LGD4      55%

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%).

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

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


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


CNH GLOBAL: DBRS Holds Sr. Unsecured Debt's Rating at BB(High)
--------------------------------------------------------------
Dominion Bond Rating Service confirmed the ratings of CNH Global
N.V. and Case New Holland Inc. at BB (high) for the Issuer
Rating and Senior Unsecured Debt, respectively.

DBRS expects CNH's rating to remain steady as the Company has
made progress in enhancing its competitive position and has
substantially improved its balance sheet.  However, DBRS notes
that the Company needs to accomplish much more operationally to
narrow the gap between itself and major rivals.  In addition,
the extent to which the Company remains committed to reducing
debt levels will have a considerable impact on the Company's
credit profile, as leverage remains relatively high for a
cyclical entity with cash flow-to-debt of 0.18 at June 30, 2006.

The Company's results were primarily driven by strong global
economic conditions that bolstered demand for industrial
equipment.  However, demand was not balanced, as construction
equipment accounted for all revenue growth, while agricultural
was flat with rising farming costs and uncertainty with U.S.
government farming subsidies constraining spending decisions.
DBRS expects these trends to continue, but weakened residential
housing construction could contract growth.

In addition, CNH's strategic imperatives and reorganization have
gained traction. Equipment-buying decisions are heavily based on
brand loyalty, quality of a company's dealers, and product
performance and innovation.  As such, CNH has focused on
strengthening its brand heritage and revitalizing its product
line, which is important as customers tend to be loyal and this
adds stability.

However, this element also makes it more challenging to take
customers from rivals.  CNH introduced initiatives that have
improved dealer customer support, which is key as dealers are
the customer's primary contact.  Finally, cost efficiencies have
been gained from establishing a more common product platform,
rationalizing the supply chain, and building a lean and more
flexible manufacturing system.  This has driven recent EBITDA
margin growth of three percentage points from 2002 to the recent
12-month period.


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


A-SERVICE: Akmola Court Opens Bankruptcy Proceedings
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola Region
commenced bankruptcy proceedings against LLP A-Service on
Sept. 1.

LLP A-Service is located at:

         50 let VLKSM Str. 46
         Kokshetau
         Akmola Region
         Kazakhstan


ALLIANCE DPR: Fitch Assigns Issuer Default Rating at BB+
--------------------------------------------------------
Fitch Ratings assigned Alliance DPR Company's upcoming issue of
Series 2006-A notes an expected rating of AAA and Series 2006-B
notes an expected rating of BBB-.  Alliance DPR Company has been
assigned an Issuer Default rating of BB+.  The diversified
payment rights future flow transaction has been originated by
Alliance Bank.

The AAA expected rating is based on the 2006-A notes having a
full interest and principal guarantee from the Asian Development
Bank while the standalone underlying expected rating of these
notes is BBB-.

The final ratings are contingent upon receipt of final documents
conforming to information already received.

"This transaction has the tight structuring that has made DPR
future flows such a staple of emerging markets issuance," says
Wasif Kazi, Director within the Emerging Markets Structured
Finance team in London.  "In addition, the cash-trapping
mechanism, which is triggered when flows fall from a high to an
intermediate level, reduces the loss given default should the
transaction not perform."

The ratings are based on Fitch's long-established methodology
for rating future flow transactions and address performance risk
with respect to the generation of sufficient receivables, the
mitigation of diversion risk and structural protections
available to noteholders.

All these factors justify ratings above the bank's Issuer
Default rating of BB-.  In addition, the underlying ratings of
both series benefit from a contingent reserve mechanism, which
enhances recovery rates and therefore justifies the notes'
higher ratings than the BB+ Issuer Default rating of Alliance
DPR Company.

Alliance Bank is the fourth largest bank in Kazakhstan by
deposits, and its diversified corporate customer base means that
the bank channels a large volume of hard currency inflows into
Kazakhstan as a result of export sales.  A portion of these
flows that are transferred via SWIFT MT-100 type messages
constitutes the collateral for this transaction.


BARLYK PLUS: Creditors Must File Claims by Nov. 19
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Barlyk Plus insolvent on Aug. 17.  Subsequently, bankruptcy
proceedings were introduced at the company.

Creditors have until Nov. 19 to submit written proofs of claim
to:

         LLP Barlyk Plus
         Tsvetochnaya Str. 11-10
         Taugul
         Almaty, Kazakhstan
         Tel: 8 (3272) 93-61-19


BELIEF VERA: Creditors Must File Claims by Nov. 19
--------------------------------------------------
LLP Belief Vera Corp. has declared insolvency.  Creditors have
until Nov. 19 to submit written proofs of claim to:

         LLP Belief Vera Corp.
         Auezov Str. 108-50
         Astana, Kazakhstan


KRISTALL LLP: East Kazakhstan Court Starts Bankruptcy Procedure
---------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region commenced bankruptcy proceedings against LLP Kristall on
Sept. 5.


NOVAYA JIZN: Almaty Court Begins Bankruptcy Proceedings
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty
commenced bankruptcy proceedings against LLP Novaya Jizn
(RNN 600300052558) on Sept. 11.


OBYEDINENNYI PROTSESSINGOVYI: Creditors' Claims Due Nov. 19
-----------------------------------------------------------
CJSC Joint Processing Centre Obyedinennyi Protsessingovyi Centr
has declared insolvency.  Creditors have until Nov. 19 to submit
written proofs of claim to:

         CJSC Obyedinennyi Protsessingovyi Centr
         Gagarin Ave. 135-104
         050060 Almaty, Kazakhstan


OREL LLP: East Kazakhstan Court Begins Bankruptcy Proceedings
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region commenced bankruptcy proceedings against LLP Orel on
Aug. 25.


SATKO LLP: Almaty Court Commences Bankruptcy Proceedings
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty
commenced bankruptcy proceedings against LLP Satko
(RNN 600300107548) on Sept. 11.


TENGIZ KOPIR: Creditors' Claims Due Nov. 19
-------------------------------------------
LLP Tengiz Kopir Almaty has declared insolvency.  Creditors have
until Nov. 19 to submit written proofs of claim to:

         LLP Tengiz Kopir Almaty
         Kunaev Str. 64
         Almaty, Kazakhstan
         Tel: 8 (3272) 73-56-82


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


KOSHOY-TRANS: Proof of Claim Deadline Slated for Nov. 24
--------------------------------------------------------
LLC Koshoy-Trans has declared insolvency.  Creditors have until
Nov. 24 to submit written proofs of claim to:

         LLC Koshoy-Trans
         Mederov Str. 48
         Bishkek, Kyrgyzstan


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


PSB FINANCE: Parent Completes Placement of B-Rated Eurobonds
------------------------------------------------------------
Promsvyazbank JSCB, via its Luxembourg-based unit PSB Finance
S.A., has completed the placement of US$350-million B-Rated
Eurobonds, CBonds says.

The issue, organized by Citigroup, came in two tranches:

   -- US$125 million of ordinary Eurobonds with a five-year
      maturity and an annual coupon of 8.75%; and

   -- US$200 million of subordinated Eurobonds ($200 million)
      with maturity date of May 2012 and an annual coupon of
      9.625%.

The Eurobonds will be listed on the London Stock Exchange.

As reported in TCR-Europe on Oct. 6, Fitch Ratings assigned PSB
Finance S.A.'s upcoming senior notes issue expected ratings of
Long-term B+ and Recovery RR4.  The issue is to be used solely
for financing a loan to Russia-based JSC Promsvyazbank, which
has been upgraded to Issuer Default rating B+ from B.  Fitch has
also assigned an expected Long-term rating of B- to the bank's
pcoming subordinated debt issue.

Headquartered in Moscow, JSCB Promsvyazbank --
http://www.psbank.ru/eng/-- engages in lending business,
project finance, leasing regional projects expanding its
presence in the financial markets.

Alexey and Dmitry Annaniev are the major shareholders in the
Bank.  Nova Ljubljanska Banka (Slovenia) holds 3.65% while
Rostelecom owns 0.27%.

                        *     *     *

Moody's Investors Service assigned a Ba3 foreign currency debt
rating to the Loan Participation Notes to be issued on a limited
recourse basis by PSB Finance S.A. for the sole purpose of
funding a loan to Promsvyazbank.  The outlook for the rating is
stable.

Moody's Ba3 debt rating is based on the fundamental credit
quality of Promsvyazbank.  The holders of the notes will be
relying for repayment solely and exclusively on the ability of
Promsvyazbank to make payments under the loan agreement.


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


CORUS GROUP: Board Approves Tata Steel's Takeover Bid
-----------------------------------------------------
The boards of Tata Steel and Corus Group plc agreed on the terms
of the recommended acquisition of the entire issued and to be
issued share capital of Corus at a price of 455 pence in cash
for each Corus Share, valuing Corus at GBP4.3 billion.

Tata Steel is India's largest private sector steel company with
2005/06 revenues of US$5.0 billion and crude steel production of
5.3 million tons across India and South-East Asia.  It is a
vertically integrated manufacturer and is one of the world's
most profitable and value creating steel companies.  Tata Sons,
Tata Steel and other Tata companies had combined revenues in
2005/06 of approximately US$22 billion.  Tata Sons' current
investments are valued at approximately US$50 billion.

Corus is Europe's second largest steel producer with revenues in
2005 of GBP9.2 billion and crude steel production of 18.2
million tons, primarily in the U.K. and the Netherlands.

The combination is strategically compelling, creating a
vertically integrated global steel group:

   -- fifth largest global steel producer with pro forma crude
      steel production of 23.5 million tons in 2005;

   -- high quality, low cost, attractive growth platform in Asia
      combined with a leading European steel player;

   -- high value-added product mix and strong market positions
      in automotive, construction and packaging;

   -- a more resilient business model and a strong platform for
      further growth;

   -- a strong and committed combined management team; and

   -- a common business culture and shared values.

The price of 455 pence per Corus Share represents:

   -- on an enterprise value basis, a multiple of approximately
      7.9 times underlying EBITDA from continuing operations for
      the twelve months to July 1, 2006, (excluding, inter alia,
      the non-recurring pension credit of GBP96 million) and a
      multiple of approximately 5.4 times underlying EBITDA from
      continuing operations for the year ended Dec. 31, 2005;
      and

   -- a premium of approximately 26.2% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      twelve months ended Oct. 4, 2006, being the last business
      day prior to the announcement by Tata Steel that it was
      evaluating various opportunities including Corus.

Tata Steel has held constructive and satisfactory discussions
with Corus' two main U.K. pension schemes and has offered to:

   -- fund upfront the IAS 19 deficit on the Corus Engineering
      Steels Pension Scheme by paying GBP126 million into the
      scheme; and

   -- increase the contribution rate on the British Steel
      Pension Scheme from 10% to 12%. until March 31, 2009.

The Acquisition will be made by Tata Steel U.K., a wholly-owned
indirect subsidiary of Tata Steel, and will be implemented by
way of a scheme of arrangement under section 425 of the
Companies Act 1985.

The Corus Directors, who have been advised by Credit Suisse (as
lead financial adviser), JPMorgan Cazenove and HSBC (as
independent financial adviser for the purposes of Rule 3 of the
City Code), consider the terms of the Acquisition to be fair and
reasonable, so far as Corus Shareholders are concerned.

Accordingly, the Corus Directors intend to unanimously recommend
that Corus Shareholders vote in favor of the Scheme as they have
undertaken to do in respect of their own beneficial holdings of
Corus Shares, representing approximately 0.1%. of the existing
share capital of Corus. In providing their advice, Credit
Suisse, JPMorgan Cazenove and HSBC have taken into account the
commercial assessments of the Corus Directors.

"This proposed acquisition represents a defining moment for Tata
Steel and is entirely consistent with our strategy of growth
through international expansion," Ratan Tata, Chairman of Tata
Steel, said.  "Corus and Tata Steel are companies with long,
proud histories.  We have compatible cultures of commitment to
stakeholders and complementary strengths in technology,
efficiency, product mix and geographical spread.  Together we
will be even better equipped to remain at the leading edge of
the fast changing steel industry."

"This offer from Tata Steel reflects the substantial value
created for Corus shareholders since the placing and open offer
and launch of our "Restoring Success" program in 2003," Jim
Leng, Chairman of Corus, said.

In the middle of last year, my board agreed a strategic way
forward for Corus to seek access to low cost production and high
growth markets.  Consistent with this, the Company held talks
with a number of parties from Brazil, Russia and India.  This
transaction represents the culmination of these talks.

This combination with Tata, for Corus shareholders and employees
alike, represents the right partner at the right time at the
right price and on the right terms. This creates a well balanced
company, strategically well placed to compete in an increasingly
competitive global environment."

Full-text copy of Corus Group-Tata Steel joint statement on the
agreed takeover is available free-of-charge at:
http://researcharchives.com/t/s?13c4

                        About Tata Steel

Headquartered in Mumbai, India, Tata Steel --
http://www.tatasteel.com/-- is Asia's first and India's largest
private sector steel company.  Tata Steel is among the lowest
cost producers of steel in the world and one of the few select
steel companies in the world that is EVA+ (Economic Value
Added).  It is a small steel producer by global standards, but
has the backing of the giant Tata Group, one of India's largest
companies with interests as diverse as carmaking,
communications, tea and oil.

                        About Corus Group

Corus Group PLC -- http://www.corusgroup.com/-- produces metal
from its major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.  Corus
turns over GBP10 billion annually and employs 47,300 in over 40
countries and sales offices and service centers worldwide,
including Indonesia and the Philippines.  Corus was created
through the merger of British Steel plc and Koninklijke
Hoogovens N.V.

The group suffered six years ago from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported by TCR-Europe on June 21, Standard & Poor's removed
Corus Group PLC's CreditWatch and raised its long-term corporate
credit rating to 'BB' from 'BB-', reflecting the group's
improved financial risk profile.  S&P said the Outlook is
stable.

Fitch Ratings changed Corus Group PLC's Outlook to Positive from
Stable and affirmed the Issuer Default Rating at BB- following
the company's announcement of its 2005 results and plan to
dispose its aluminium business for EUR826 million.  Corus'
affirmed debt instruments include:

   a) Corus Group PLC EUR800 mln 7.5% senior notes B+;

   b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+;

   c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+;
      and

   d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+.

As reported in TCR-Europe on May 11, Moody's Investors
Service upgraded Corus Group plc's corporate family rating to
Ba2, upgraded its senior unsecured and supported unsecured
obligations to B1 and raised senior secured bank facility to
Ba1.


DEMIR-HALK: Fitch Keeps Issuer Default Rating at BB
---------------------------------------------------
Fitch Ratings affirmed Demir-Halk Bank (Nederland) N.V.'s
ratings at Issuer Default BB, Short-term B, Individual C/D, and
Support 5.  The rating Outlook remains Stable.

The Issuer Default, Short-term and Individual ratings reflect
DHB's limited franchise and small capital base, its exposure to
Turkish and other emerging market risks and its strong recent
loan growth.  They also take into account the bank's consistent
but modest profitability, adequate capitalization, low level of
impaired lending and a stable retail funding base.

In order to offset margin pressure in its traditional Turkish
business, the bank has been diversifying away from Turkey into
Russian and Commonwealth of Independent States markets since
2004.  Despite this, its on-balance sheet exposure to Turkish
risk remains high.

The bank has also been expanding consumer lending in the
Netherlands, Germany and Belgium.  The benefits of these
diversification efforts on profitability have yet to fully
materialize.  Furthermore, as DHB's experience in the Russian
and the CIS markets is limited, growth in these markets could
come with additional risks.

Asset quality indicators remains sound, benefiting from the
short-term nature of trade finance.  Impaired loans were low at
0.7% of total gross loans at end-H106 and were fully reserved.
Although capital ratios have come down from high levels,
reflecting growth in risk-weighted assets, they remain adequate;
at end-H106, DHB's Basel/G10 total capital ratio stood at 20.8%.

The ratio calculated as per Dutch central bank requirements
stood at 10.3%.  DHB derives most of its funding from retail
deposits, which accounted for 79% of end-H106 liabilities.
These deposits have proved stable in recent crises.

Established in 1992, DHB is 70%-owned by HCBG Holding B.V.
(solely owned by Halit Cingillioglu, a prominent Turkish
businessman) and 30% by Turkiye Halk Bankasi, the second-largest
state bank in Turkey.  A specialized trade finance bank, DHB
serves exporters worldwide, focusing on trade flows between
Europe, the CIS and Turkey.

Operating from a head office in Rotterdam, the bank has a number
of branches in the Netherlands, Germany and Belgium.  As a Dutch
bank, DHB is subject to the regulatory and supervisory framework
of the Dutch central bank.


LAURUS N.V.: Settles Obligation Dispute with HMG
------------------------------------------------
Laurus N.V. reached settlement with meat supplier Hendrix Meat
Group with respect to the dispute on historic volume purchase
obligations between Laurus and HMG.

The payment to HMG in connection to this settlement was included
in the expected restructuring costs of EUR74 million, which
relate both to the termination costs of long-term supplier
obligations and redundancy costs.

The dispute with HMG was subject to an arbitration procedure
that will be abandoned due to the current settlement agreement.

Headquartered in AD's-Hertogenbosch, the Netherlands, Laurus
N.V. -- http://www.laurus.nl/-- operates 700 supermarket & off-
license stores, employs about 24,000 workers and holds a 14.3%
market share in 2005.  Laurus was formed on Oct. 30, 1998,
through a merger of De Boer Unigro N.V. and Vendex Food Groep
B.V.

In January, the company disclosed its intention to sell its Edah
and Konmar Superstores operations in order to focus on its Super
de Boer format.  Super de Boer counts 400 supermarkets, half of
it is owned by Laurus and the other half is run by affiliated
retailers.

                        *     *     *

Laurus told Ian Bickerton of the Financial Times in September
that the company was renegotiating financing arrangements with
its banks, after it warned creditors that the company would
breach loan covenants and be loss-making this year.

In 2004, Laurus suffered a net loss of EUR128 million, a sharp
reversal compared with 2003, when the positive net result of
EUR9 million marked an -- albeit modest -- return to
profitability for the first time in several years.  In fighting
the price war, which broke out in October 2003 and continued
unabated in 2004, Laurus implemented substantial price cuts
within all three retail formats, which, combined with the
reduced sales volume, had a major negative impact on the result.
In 2005, the company posted a EUR66 million net loss against
EUR273 million in gross profits.


LAURUS N.V.: Board Appoints J.G.B. Brouwer as President & CEO
-------------------------------------------------------------
The Supervisory Board of Laurus N.V. appointed J.G.B. Brouwer as
President and Chief Executive Officer of Laurus effective
Nov. 6.

Mr. Brouwer succeeds Tonn van de Laar who was interim CEO of the
company since Aug. 28.

Jan Brouwer has been CEO of Schuitema N.V. from January 1996 to
May 2006.

Headquartered in AD's-Hertogenbosch, the Netherlands, Laurus
N.V. -- http://www.laurus.nl/-- operates 700 supermarket & off-
license stores, employs about 24,000 workers and holds a 14.3%
market share in 2005.  Laurus was formed on Oct. 30, 1998,
through a merger of De Boer Unigro N.V. and Vendex Food Groep
B.V.

In January, the company disclosed its intention to sell its Edah
and Konmar Superstores operations in order to focus on its Super
de Boer format.  Super de Boer counts 400 supermarkets, half of
it is owned by Laurus and the other half is run by affiliated
retailers.

                        *     *     *

Laurus told Ian Bickerton of the Financial Times in September
that the company was renegotiating financing arrangements with
its banks, after it warned creditors that the company would
breach loan covenants and be loss-making this year.

In 2004, Laurus suffered a net loss of EUR128 million, a sharp
reversal compared with 2003, when the positive net result of
EUR9 million marked an -- albeit modest -- return to
profitability for the first time in several years.  In fighting
the price war, which broke out in October 2003 and continued
unabated in 2004, Laurus implemented substantial price cuts
within all three retail formats, which, combined with the
reduced sales volume, had a major negative impact on the result.
In 2005, the company posted a EUR66 million net loss against
EUR273 million in gross profits.


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


MOOG 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, the rating agency confirmed its Ba2 Corporate
Family Rating for Moog Inc. and its Ba3 rating on the company's
6.50% Sr. Subordinated Notes due 2015.  Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 73% loss in case of default.

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%).

Based in East Aurora, New York, Moog Inc. --
http://www.moog.com/-- is a worldwide designer, manufacturer,
and integrator of precision control components and systems.
Moog's high-performance systems control military and commercial
aircraft, satellites and space vehicles, launch vehicles,
missiles, automated industrial machinery, and medical equipment.
In Europe, the company maintains operations in the United
Kingdom, Finland, France, Germany, Ireland, Italy, Luxembourg,
The Netherlands, Norway, Russia, Spain, Sweden, and Switzerland.


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


OMNOVA SOLUTIONS: Improved Performance Spurs S&P to Lift Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on
performance chemicals and decorative products manufacturer
OMNOVA Solutions Inc.  The corporate credit rating was raised to
'B+' from 'B'.  The outlook is stable.

"The upgrade acknowledges OMNOVA's improving operating
performance, the strengthening of the financial profile, and the
potential for additional debt reduction following the September
2006 sale of the GenFlex Building Products business," said
Standard & Poor's credit analyst David Bird.

OMNOVA sold GenFlex to Firestone Building Products Co. for
approximately US$40 million.  Based on management's commitment
to improving the financial profile, Standard & Poor's expects
the company to use the majority of the proceeds from the sale to
reduce debt.

The ratings reflect OMNOVA's vulnerable business position as a
niche provider of emulsion polymers, specialty chemicals, and
decorative products to mature and highly competitive markets.

The ratings also reflect OMNOVA's exposure to volatile raw
material costs, many of which are derived from oil and natural
gas, and its highly aggressive financial profile.  These
attributes are only partially offset by competitive business
positions as the No. 1 or No. 2 supplier in each of its key end
markets and moderate product diversification.

OMNOVA generated approximately $698 million in revenues over the
past 12 months ended Aug. 31, 2006 (pro forma for the sale of
the GenFlex business).  Also on that date, the company
maintained approximately US$203 million of total debt (adjusted
to capitalize operating leases) outstanding, excluding any
improvements in the capital structure from the proceeds
generated by the sale.


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


SEQUA 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, the rating agency confirmed its B1 Corporate Family
Rating for Sequa Corporation.  Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default
ratings on these bond issues:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   9% Sr. Unsecured
   Notes due 2009       B1       B2       LGD4      60%

   8.875% Sr. Unsec.
   Notes due 2008       B1       B2       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 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 New York, Sequa Corp. --
http://www.sequa.com/-- is a diversified industrial company.
The company manufactures and repairs jet engine components,
performs metal coating, and produces automotive airbag
inflators, chemical detergent additives, auxiliary printing
press equipment, emissions control systems, men's formal wear,
and automotive cigarette lighters and power outlets.  Its
subsidiary Warwick International maintains a headquarters in the
United Kingdom and chemical distribution companies in Spain,
France, Italy, Portugal, and South Africa as well as offices in
Latin America and Asia-Pacific region.


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


BASHUROVSKOYE CJSC: Court Names V. Podkorytov to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Evreyskiy Autonomous Region appointed
Mr. V. Podkorytov as Insolvency Manager for CJSC Bashurovskoye.
He can be reached at:

         V. Podkorytov
         Dzerzhinskogo Str. 28
         680000 Khabarovsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A16-445/2006-5.

The Debtor can be reached at:

         CJSC Bashurovskoye
         Bashurovo
         Obluchenskiy Region
         Evreyskiy Autonomous Region
         Russia


BUILDER-1 CJSC: Court Names O. Syskov as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Khabarovsk Region appointed Mr. O.
Syskov as Insolvency Manager for CJSC Builder-1 (TIN
2710000841).  He can be reached at:

         O. Syskov
         Dzerzhinskogo Str. 28
         680000 Khabarovsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A73-8402/2006-39.

The Debtor can be reached at:

         CJSC Builder-1
         Sovetskaya Str. 105
         Chegdomyn
         Verkhnebureinskiy Region
         Khabarovsk Region
         Russia


CHERNIGOVSKIY COMBINE: Court Names D. Burtylev to Manage Assets
---------------------------------------------------------------
The Arbitration Court of Primorye Region appointed Mr. D.
Burtylev as Insolvency Manager for LLC Chernigovskiy Combine of
Grain Products.  He can be reached at:

         D. Burtylev
         Post User Box 45
         690105 Vladivostok-105
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A51-7159/06/21-231 B.

The Debtor can be reached at:

         LLC Chernigovskiy Combine Of Grain Products
         Krupozavodskaya Str. 2
         Chernigovka
         Russia


GARMENT FACTORY: Court Names A. Lavrov as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Chelyabinsk Region appointed Mr. A.
Lavrov as Insolvency Manager for LLC Garment Factory (TIN
740434343).  He can be reached at:

         A. Lavrov
         Post User Box 2234
         Zlatoust
         456208 Chelyabinsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A76-15875/06-34-237.

The Arbitration Court of Chelyabinsk Region is located at:

         Vorovskogo Str. 2
         454091 Chelyabinsk Region
         Russia

The Debtor can be reached at:

         LLC Garment Factory
         Taganayskaya Str. 204
         Zlatoust
         Chelyabinsk Region
         Russia


IRTYSH: Tomsk Court Names V. Babenko as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Tomsk Region appointed Mr. V. Babenko
as Insolvency Manager for CJSC Omskaya Furniture Factory Irtysh.
He can be reached at:

         V. Babenko
         Office 207
         Nakhimova Str. 13/1
         634059 Tomsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A67-4814/06.

The Debtor can be reached at:

         V. Babenko
         Office 207
         Nakhimova Str. 13/1
         634059 Tomsk Region
         Russia


KAMCHATSKOYE WOODWORKING: Names G. Chmutina to Manage Assets
------------------------------------------------------------
The Arbitration Court of Kamchatka Region appointed Ms. G.
Chmutina as Insolvency Manager for CJSC Kamchatskoye Woodworking
Industrial Enterprise.  She can be reached at:

         G. Chmutina
         Post User Box 113
         23 GOS
         Petropavlovsk-Kamchatskiy
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A24-2190/06-08.

The Debtor can be reached at:

         G. Chmutina
         Post User Box 113
         23 GOS
         Petropavlovsk-Kamchatskiy
         Russia


KURGAN-PROM-STROY: Bankruptcy Hearing Slated for Dec. 25
--------------------------------------------------------
The Arbitration Court of Khanty-Mansiyskiy Autonomous Region
will convene on Dec. 25 to hear the bankruptcy supervision
procedure on OJSC Kurgan-Prom-Stroy.  The case is docketed under
Case No. A75-4975/2006.

The Temporary Insolvency Manager is:

         V. Vinogradov
         50 Let Profsoyuzov Str. 61
         644065 Omsk Region
         Russia

The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is
located at:

         Lenina Str. 54/1
         Khanty-Mansiysk Autonomous Region
         Russia

The Debtor can be reached at:

         OJSC Kurgan-Prom-Story
         Lenina Str. 1/3
         Mortki
         Kondinskiy Region
         Khanty-Mansiyskiy Autonomous Region
         Russia


LUKOIL OAO: Issuing RUR14-Billion Bonds via Public Placement
------------------------------------------------------------
The Board of Directors of Lukoil OAO has decided to issue RUR14
billion in bonds through a public offer in the Moscow Interbank
Currency Exchange, Cbonds says.

The bond issue entails:

   -- 8,000,000 non-convertible documentary interest-bearing
      bonds to bearer with nominal value of RUR1,000 apiece.
      The bonds have 10 coupon periods and mature after
      five years;

   -- 6,000,000 non-convertible documentary interest-bearing
      bonds to bearer with nominal value of RUR1,000 apiece.
      The bonds have 14 coupon periods and matures after seven
      years.

The first coupon's interest will be determined through a tender
among interested buyers.  The bonds are not subject to any prior
redemption and preferential purchase rights.  Lukoil has yet to
set the issue date based on favorable market conditions.

The Ruble borrowing, CBonds reports, will allow the company to
reduce its bank borrowings.

Lukoil has authorized capital of RUR21,264,081 divided into
850,563,255 ordinary shares.

                        About Lukoil

Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX,
RTS: LKOH) -- http://www.lukoil.com/-- explores and produces
oil & gas, petroleum products and petrochemicals, and markets
the outputs.  Most of the Company's exploration and production
activity is located in Russia, and its main resource base is in
Western Siberia.

                        *     *     *

As reported in TCR-Europe on July 12, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Lukoil
OAO to 'BB+' from 'BB'.  S&P said the outlook is positive.

As reported in the TCR-Europe on Jan. 26, Moody's Investors
Service has changed the outlook of OAO Lukoil's Ba1 Corporate
Family Rating and Ba2 Issuer Rating to positive from stable.

Moody's last rating action on LUKOIL was on April 26, when the
agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2.


MDM BANK: Secures US$169-Mln Credit Limit from USDA
---------------------------------------------------
The United States Department of Agriculture has increased MDM
Bank's credit limit from US$86.8 million to US$169 million under
the Commodity Credit Corporation's Export Credits Guarantee
Program (GSM-102).

MDM Bank estimates this is the largest credit limit ever
extended to a Russian private bank by the USDA.  The bank said
the step underscores the USDA's confidence in the reliability
and financial stability of MDM Bank.  The new credit limit will
enable the bank to significantly increase its cooperation with
companies engaged in food and agricultural imports from the
United States.

Headquartered in Moscow, Russia, MDM Bank --
http://www.mdmbank.com/provides financial services organized
across four divisions: corporate banking, retail banking, and
investment banking.  The bank owns and operates 100 offices
throughout Russia.

                        *     *     *

As reported in the Troubled Company Reporter on March 14,
Moody's Investors Service has assigned Ba2 and Not Prime long-
and short-term foreign currency bank deposit ratings and a D
Financial Strength Rating (FSR) to MDM Bank (Russia), which is
the lead operating entity in MDM Financial Group (MDM FG),
comprising over 90% of the group's total IFRS-consolidated
assets and shareholders' equity.

At the same time Moody's has affirmed the Ba2/Not Prime ratings
assigned to MDM Bank's US$2 billion Program for the Issuance of
Loan Participation Notes.  The Notes will be issued by, but with
limited recourse to, MDM International Funding Plc (Ireland) for
the sole purpose of financing advances to MDM Bank.  The outlook
for all ratings is stable.

According to Moody's, the Ba2/Not Prime/D ratings are based on
the fundamental credit strength of MDM Bank, and do not
incorporate any potential support from the authorities in case
of need.


NOVOLIPETSK STEEL: Mulls Joint Venture with Duferco
---------------------------------------------------
OJSC Novolipetsk Steel is in discussions with Duferco
Participations Holding Limited to create a joint venture that
would acquire certain steel production facilities currently
owned by Duferco in Europe and the United States.

The main companies expected to be acquired by the joint venture
include:

   -- Duferco Farrell Corporation (U.S.A.),
   -- Carsid S.A. (Belgium),
   -- Duferco Clabecq S.A. (Belgium),
   -- Duferco La Louviere S.A. (Belgium),
   -- Duferco Coating S.A.S. (France),
   -- Sorral S.A. (France),
   -- Acciaierie Grigoli S.p.a. (Italy), and
   -- Duferco Transformation Europe (France).

The transaction, which is subject to the negotiation and
execution of a definitive agreement and competition and other
approvals, will be completed by the end of the year.

                         About Duferco

Headquartered in La Louviere, Belgium, Duferco S.A. --
http://www.duferco.com/-- manufactures and processes steel.

                       About Novolipetsk

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 also operates in Denmark.

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.


NOVOLIPETSK STEEL: EC Reviews Joint Venture with Duferco
--------------------------------------------------------
The European Commission is reviewing the proposed joint venture
between steel producers OJSC Novolipetsk Steel and Duferco
Participations Holding Ltd., AFX News says.

The European Union's executive arm, however, believes that the
joint venture, which would combine the companies' U.S. and some
European operations, does not pose any competition concerns.
The regulator hopes to complete its review by Nov 21.

                         About Duferco

Headquartered in La Louviere, Belgium, Duferco S.A. --
http://www.duferco.com/-- manufactures and processes steel.

                       About Novolipetsk

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 also operates in Denmark.

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.


OMSKAYA FURNITURE: Court Names A. Shipitsyn to Manage Assets
------------------------------------------------------------
The Arbitration Court of Omsk Region appointed Mr. A. Shipitsyn
as Insolvency Manager for CJSC Omskaya Furniture Factory (TIN
5502047450).  He can be reached at:

         A. Shipitsyn
         Spot User Box 5222
         644043 Omsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A46-8740/2006.

The Debtor can be reached at:

         CJSC Omskaya Furniture Factory
         Omsk Region
         Russia


PROMSVYAZBANK: Completes Placement of B-Rated Eurobonds
-------------------------------------------------------
Promsvyazbank JSCB, via its Luxembourg-based unit PSB Finance
S.A., has completed the placement of US$350-million B-Rated
Eurobonds, CBonds says.

The issue, organized by Citigroup, came in two tranches:

   -- US$125 million of ordinary Eurobonds with a five-year
      maturity and an annual coupon of 8.75%; and

   -- US$200 million of subordinated Eurobonds ($200 million)
      with maturity date of May 2012 and an annual coupon of
      9.625%.

The Eurobonds will be listed on the London Stock Exchange.

As reported in TCR-Europe on Oct. 6, Fitch Ratings assigned PSB
Finance S.A.'s upcoming senior notes issue expected ratings of
Long-term B+ and Recovery RR4.  The issue is to be used solely
for financing a loan to Russia-based JSC Promsvyazbank, which
has been upgraded to Issuer Default rating B+ from B.  Fitch has
also assigned an expected Long-term rating of B- to the bank's
pcoming subordinated debt issue.

Headquartered in Moscow, JSCB Promsvyazbank --
http://www.psbank.ru/eng/-- engages in lending business,
project finance, leasing regional projects expanding its
presence in the financial markets.

Alexey and Dmitry Annaniev are the major shareholders in the
Bank.  Nova Ljubljanska Banka (Slovenia) holds 3.65% while
Rostelecom owns 0.27%.

                        *     *     *

Moody's Investors Service assigned a Ba3 foreign currency debt
rating to the Loan Participation Notes to be issued on a limited
recourse basis by PSB Finance S.A. for the sole purpose of
funding a loan to Promsvyazbank.  The outlook for the rating is
stable.

Moody's Ba3 debt rating is based on the fundamental credit
quality of Promsvyazbank.  The holders of the notes will be
relying for repayment solely and exclusively on the ability of
Promsvyazbank to make payments under the loan agreement.


ROSNEFT OAO: Forms Vostok Energy Joint Venture with CNPC
--------------------------------------------------------
Sergey Bogdanchikov, president of OJSC Rosneft and Chen Geng,
president of China National Petroleum Company, have signed a
protocol on the creation of Vostok Energy Ltd.  The protocol was
signed on Oct. 16.

The charter capital of Vostok Energy was set at RUR 10 million.
Rosneft will hold a 51% stake in the company, and CNPC will hold
49%. The company's board of directors will be comprised of five
persons, three of whom will come from Rosneft and two from CNPC.

The new joint venture company was established primarily to
conduct exploration work in Russia and obtain licenses for
various types of subsoil resource use.  Moreover, Vostok Energy
intends to undertake production and sales of hydrocarbons, as
well as implement new technologies leading to increased
effectiveness of exploration and production.  In the future, the
company's operations will promote increased foreign investment
in Russia, as well as greater employment opportunities for
Russian citizens.

On March 21 in Beijing, Mr. Bogdanchikov and Mr. Geng signed an
agreement on general principles of creating joint venture
companies in Russia and China in order to expand cooperation
between Rosneft and CNPC.

                        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.


SVYAZ-TRANS-STROY-KHABAROVSK: Court Starts Bankruptcy Process
-------------------------------------------------------------
The Arbitration Court of Khabarovsk Region commenced bankruptcy
supervision procedure on LLC Svyaz-Trans-Stroy-Khabarovsk.
The case is docketed under Case No. A73-7958/06-38.

The Temporary Insolvency Manager is:

         N. Postnikov
         Post User Box 43/3
         680013 Khabarovsk Region
         Russia

The Debtor can be reached at:

         LLC Svyaz-Trans-Stroy-Khabarovsk
         Promyshlennaya Str. 9
         Khabarovsk Region
         Russia


TMK OAO: Raises US$155 Million from Syndicated Credit Facility
--------------------------------------------------------------
OAO TMK has successfully closed a US$155 million syndicated
structured facility.  Bank Natexis (ZAO), Moscow, the Russian
banking subsidiary of Natexis Banques Populaires, acted in the
sole of mandated lead arranger, facility agent and book runner.

The syndication is regarded as having been very successful: the
loan has been 47% oversubscribed from the US$105 million
originally sought allowing for an increase of the loan up to
US$155 million.  The pool of banks includes Russian banks and
international banks through their local subsidiaries:

   -- Mandated Lead Arranger: Bank Natexis ZAO

   -- Senior Lead Arrangers:

         -- Commerzbank (Eurasia), Moscow
         -- Gazprombank, Moscow
         -- ING Bank "Eurasia" ZAO, Moscow
         -- International Moscow Bank
         -- Societe Generale S.A., Paris, and
         -- Banque Societe Generale Vostok, Moscow

The facility has been signed and drawn at the end of September
2006.

The transaction has a margin of 2.20% p.a. and is a 30-month
multi-currency amortizing structured facility with an option for
tenor extension up to 42 months. The facility is secured at all
times by an assignment and pledge of commercial contracts for
the delivery of tubular products by TH TMK to prime Russian oil
companies and by a pledge of goods in circulation.

The transaction is very innovative as it is the first loan for a
Russian borrower backed with a security package registered
purely under Russian law syndicated among international and
Russian banks.

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmkgroup.ru/eng/-- manufactures the entire product
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                        *     *     *

As reported in TCR-Europe on Sept. 11, Moody's Investors Service
assigned a B1 corporate family rating to TMK and a (P)B2 senior
unsecured rating to the loan participation notes issued by TMK
Capital S.A., guaranteed by the operating subsidiaries of TMK.
Moody's said the outlook on both ratings is positive.

On Sept. 9, the TCR-Europe reported that Standard & Poor's
Ratings Services assigned a 'B+' long-term corporate credit
rating to OAO TMK.  Standard & Poor's also assigned its 'B+'
preliminary senior unsecured debt rating to TMK's proposed
Eurobond, which will be issued by special-purpose vehicle TMK
Capital S.A.


TMK OAO: Installs Gas Purification System at Volzhsky Site
----------------------------------------------------------
OAO TMK has launched a new gas purification system in the
electrical steel smelting production unit of Volzhsky Pipe
Plant, a subsidiary.  The new system was launched as part of a
program to modernize and re-equip the production capacity of TMK
subsidiaries.

The reconstruction of the gas purification system for electric
steel smelting at Volzhsky Pipe Plant is one of TMK's most
important investment projects.  Quad Engineering of Canada, one
of the world's leading manufacturers of industrial gas
purification systems, engineered and supplied the equipment for
the gas purification system.  The gas conduits, electrical
equipment, automation gear and water systems were assembled by
Montazhspetsstroy, which acted as general contractor.

The need to reconstruct the gas purification system was due to
the increased capacity of the electric smelting furnace after
its modernization in 2005, as well as the intensification of the
technological process.

The governor of Volgograd Oblast Nikolai Maksyuta congratulated
the employees of Volzhsky Pipe Plant on the launch of the new
modern gas purification system.  Speaking at a gala celebration
to mark the event, the governor noted TMK's significant
contribution to the increased investment attractiveness of the
region and to preserving its natural environment.  In the words
of TMK General Director Konstantin Semerikov, TMK's ecological
investments reflect the company's commitment to the principles
of sustainable development and to ensuring the conformity of the
company's ecological management system with international
standards.

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmkgroup.ru/eng/-- manufactures the entire product
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                        *     *     *

As reported in TCR-Europe on Sept. 11, Moody's Investors Service
assigned a B1 corporate family rating to TMK and a (P)B2 senior
unsecured rating to the loan participation notes issued by TMK
Capital S.A., guaranteed by the operating subsidiaries of TMK.
Moody's said the outlook on both ratings is positive.

On Sept. 9, the TCR-Europe reported that Standard & Poor's
Ratings Services assigned a 'B+' long-term corporate credit
rating to OAO TMK.  Standard & Poor's also assigned its 'B+'
preliminary senior unsecured debt rating to TMK's proposed
Eurobond, which will be issued by special-purpose vehicle TMK
Capital S.A.


TONKINO-AGRO-PROM-ENERGO: Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region commenced
bankruptcy supervision procedure on CJSC Tonkino-Agro-Prom-
Energo (TIN 5233000193).  The case is docketed under Case No.
A43-8637/2006 27-377.

The Temporary Insolvency Manager is:

         N. Lipey
         Post User Box 116
         450032 Ufa
         Russia

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         CJSC Tonkino-Agro-Prom-Energo
         Trudovaya Str. 17
         Tonkino
         Nizhniy Novgorod Region
         Russia


TRANSIT-OIL: Court Names A. Lavrov as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Chelyabinsk Region appointed Mr. A.
Lavrov as Insolvency Manager for CJSC Transit-Oil (TIN
7434001560).  He can be reached at:

         A. Lavrov
         Post User Box 2234
         Zlatoust
         456208 Chelyabinsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A76-14326/06-52-134.

The Arbitration Court of Chelyabinsk Region is located at:

         Vorovskogo Str. 2
         454091 Chelyabinsk Region
         Russia

The Debtor can be reached at:

         CJSC Transit-Oil
         Zlokazovo
         Kusinskiy Region
         456955 Chelyabinsk Region
         Russia


USSURIYSKIY STONE: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------------
The Arbitration Court of Perm Region commenced bankruptcy
supervision procedure on CJSC Ussuriyskiy Stone Working Factory.
The case is docketed under Case No. A51-10562/06 15-303b.

The Temporary Insolvency Manager is:

         D. Prilipko
         Post User Box 110
         692760 Artem Region
         Russia

The Arbitration Court of Perm Region is located at:

         Lunacharskogo Str. 3
         Perm Region
         Russia

The Debtor can be reached at:

         CJSC Ussuriyskiy Stone Working Factory
         Izvestkovaya Str. 1
         Ussuriysk Region
         Russia


ZVERINOGOLOVSKIY: Court Names V. Vinogradov to Manage Assets
------------------------------------------------------------
The Arbitration Court of Kurgan Region appointed Mr. V.
Vinogradov as Insolvency Manager for CJSC Zverinogolovskiy
Spirit-Vodka Distillery.  He can be reached at:

         V. Vinogradov
         50 Let Profsoyuzov Str. 61
         644065 Omsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A34-3658/2006.

The Debtor can be reached at:

         LLC Oil Company Sakhalin
         Rabochaya Str. 89
         Zverigolovskoye
         Zverinogolovskiy Region
         Kurgan Region
         Russia


ZYRYANSKIY BAKERY: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------------
The Arbitration Court of Sakha Republic-Yakutiya commenced
bankruptcy supervision procedure on State Unitary Enterprise
Zyryanskiy Bakery.  The case is docketed under Case No.
A58-2314/06.

The Temporary Insolvency Manager is:

         A. Arbatskiy
         Room 25
         Petrovskogo Str. 21/2
         Yakutsk

The Arbitration Court of Sakha Republic-Yakutiya is located at:

         Kurashova Str. 28
         677000 Sakha Republic-Yakutiya
         Russia

The Debtor can be reached at:

         State Unitary Enterprise Zyryanskiy Bakery
         Pishevikov 4
         Zyryanka
         Verkhnekolymskiy Ulus
         Sakha Republic-Yakutiya
         Russia


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


ARINC INC: 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, the rating agency confirmed its Ba3 Corporate
Family Rating for Arinc Inc.

Additionally, Moody's affirmed its probability-of-default
ratings and assigned loss- given-default ratings on these loans:


                                          Projected
                        POD      LGD      Loss-Given
   Debt Issue           Rating   Rating   Default
   ----------           -------  -------  -------
   Sr. Secured
   Revolving Credit
   Facility due 2009    Ba3      LGD3       48%

   Sr. Secured Term
   Loan B due 2011      Ba3      LGD3       48%

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 Annapolis, Maryland, ARINC Inc. --
http://www.arinc.com/ -- provides transportation communications
and systems engineering solutions for five major industries:
aviation, airports, defense, government, and transportation.
The company employs 3,200 people located in 100 offices around
the world including the United Kingdom, Spain, Italy and
Germany.


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


CONVERIUM HOLDINGS: A.M. Best Puts "b-" Debt Rating Under Review
----------------------------------------------------------------
A.M. Best Co. has placed the financial strength rating of B-
(Fair) and the issuer credit rating of "bb-" of Converium
Reinsurance (North America) Inc. and the FSR of B (Fair) and the
ICR of "bb" of Converium Insurance (North America) Inc. under
review with positive implications.

Concurrently, A.M. Best has placed the ICR of "b-" and the debt
rating of "b-" on US$200 million 7.125% senior unsecured notes,
due 2023 of Converium Holdings (North America) Inc. (CHNA)
(Stamford, CT) under review with positive implications.

The under review with positive implications follows the recent
announcement that Converium AG has entered into a definitive
agreement with National Indemnity Company, a Berkshire Hathaway
company, to sell CHNA, its North American operation.  The US$295
million transaction is comprised of US$95 million in cash and
US$200 million in the assumption of debt.  In addition,
Converium has not provided any guarantee or indemnity with
respect to the reserves of the North American operations.  The
transaction is subject to regulatory approvals and customary
closing conditions.  The positive implications reflect A.M.
Best's opinion of the outstanding financial strength and
capacity of the National Indemnity Company.

A.M. Best Co., established in 1899, is the world's oldest and
most authoritative insurance rating and information source.


HCA INC: Moody's Assigns Provisional Ratings to LBO Financing
-------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the
proposed financing of the leveraged buyout of HCA Inc. (Newco).
The ratings of the existing company HCA Inc. (Oldco) remain
under review for possible downgrade.

Ratings assigned:

HCA Inc. (Newco):

    * US$2,000 ABL Revolver due 2012, (P)Ba2, LGD2, 13%

    * US$2,000 Revolving credit facility due 2012,
     (P)Ba3, LGD3, 32%

    * US$2,750 Term Loan A due 2012, (P)Ba3, LGD3, 32%

    * US$8,800 Term Loan B due 2013, (P)Ba3, LGD3, 32%

    * US$1,250 Euro Term Loan due 2013, (P)Ba3, LGD2, 23%

    * US$1,500 Second Lien PIK Notes due 2016, (P)B2, LGD4, 57%

    * US$4,200 Second Lien Notes due 2016, (P)B2, LGD4, 57%

    * Corporate Family Rating, (P)B2

    * PDR, B2

    * Speculative Grade Liquidity Rating, SGL-2

    * Outlook Stable

The provisional ratings are subject to Moody's review of final
documentation.

Ratings remaining under review for possible downgrade:

HCA Inc. (Oldco):

    * Senior Unsecured Revolving Credit Facility, Ba2, LGD4, 60%
    * Senior Unsecured Notes, Ba2, LGD4, 60%
    * Corporate Family Rating, Ba2
    * Speculative Grade Liquidity Rating, SGL-2

Ratings placed under review for possible downgrade:

HCA Inc. (Oldco):

    * PDR, Ba2

Moody's expects to conclude the rating review and withdraw the
Corporate Family Rating of HCA Inc. (Oldco) at the closing of
the transaction.  The ratings for the securities to be tendered
are also expected to be withdrawn once the tender offer is
completed.  Moody's anticipates that it will downgrade existing
senior unsecured notes remaining in the capital structure of HCA
Inc. (Newco) (notes with maturities of 2010 and beyond) to Caa1
at the closing of the transaction reflecting the deeply
subordinated position of these instruments in the proposed
capital structure.

The review of the ratings was initiated on July 24 following the
announcement that the company had agreed to be acquired in a
leveraged buyout led by private equity investors Bain Capital,
Kohlberg Kravis Roberts & Co., and Merrill Lynch Global Private
Equity.  The transaction is valued at approximately
US$33 billion, including the assumption or repayment of
approximately US$11.7 billion of existing debt, and is expected
to close in the fourth quarter of 2006.

HCA Inc.'s (Newco) Corporate Family Rating of (P)B2 is primarily
driven by the significant increase in financial leverage and the
resulting constraints on cash flow and interest coverage
metrics.  Moody's believes the increased debt load will result
in a significant reduction in financial flexibility in a period
in which the company and the sector are challenged by weak
volume trends and increasing exposure to bad debt.  Therefore,
Moody's placed additional weight on these factors in determining
the Corporate Family Rating resulting in a differentiation
between the assigned rating and the indicated rating of Ba3
under the Global For-Profit Hospital Rating Methodology.

The significant financial leverage expected following the
transaction results in a number of financial metrics that
constrain the rating.  Operating and free cash flow coverage of
debt, two of the most heavily weighted factors in Moody's rating
methodology, are expected to be at levels appropriate for the
single B and Caa rating categories, respectively, throughout the
rating horizon.

The assignment of a speculative grade liquidity rating of SGL-2
to HCA Inc. (Newco) reflects our expectation of good liquidity
over the twelve months following the transaction.  Moody's
anticipates cash flow metrics will be constrained as a result of
the increased debt associated with the leveraged buyout of the
company for the four quarters ending Dec. 31, 2007.  Moody's
estimates that the company will have to fund over US$2 billion
in cash interest expense for the year ended Dec. 31, 2007.

The stable outlook reflects Moody's expectation that HCA Inc.
(Newco) will be able to offset lower admission growth trends
with expense management, especially in the areas of salaries,
wages and benefits and supply costs and, therefore, continue to
modestly grow EBITDA.  Moody's also notes that the company has
no near term maturities as a result of the proposed capital
structure thereby reducing any near term refinancing risk.

HCA Inc., headquartered in Nashville, Tennessee is the nation's
largest and most diversified acute care hospital company.  At
June 30, 2006, the company, through its subsidiaries, owned and
operated 176 hospitals and 92 freestanding surgery centers and
outpatient facilities.  The company's subsidiaries were also
partners in joint ventures that owned and operated seven
hospitals and seven freestanding surgery centers.


HEXION SPECIALTY: Subsidiaries to Offer US$825-Mln Secured Notes
----------------------------------------------------------------
Hexion Specialty Chemicals, Inc.'s wholly owned finance
subsidiaries, Hexion 2 U.S. Finance Corp. and Hexion 2 Nova
Scotia Finance ULC, intend to offer through a private placement
an aggregate of $825 million of Second-Priority Senior Secured
Floating Rate Notes Due 2014 and Second-Priority Senior Secured
Notes Due 2014.

The senior secured Notes will be guaranteed by the Company and
certain of its domestic subsidiaries and will be senior
obligations secured by a second-priority lien on certain of the
Company and its subsidiaries' existing and future assets.  The
floating rate notes and the fixed rate notes will each have
eight-year maturities with interest payable in cash.  The Senior
Secured Notes will be offered within the United States only to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, and, outside the United States, only to
non-U.S. investors in reliance on Regulation S.

The Company disclosed that the Senior Secured Notes will not be
and have not been registered under the Securities Act of 1933,
as amended, or any state securities laws, and unless so
registered, may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
Company has 86 manufacturing and distribution facilities in 18
countries.

                          *     *     *

As reported in TCR-Europe on Oct. 19, Moody's Investors Service
assigned B3 ratings to the new guaranteed senior secured second
lien notes due 2014 of Hexion Specialty Chemicals Inc.  The
company expects to issue roughly US$825 million of notes split
(55/45) between fixed and floating rate notes.

As reported in the Troubled Company Reporter on May 4, Standard
& Poor's Ratings Services assigned its 'B+' rating and its
recovery rating of '3' to Hexion Specialty's US$1.675 billion
senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


NOVA CHEMICALS: Moody's Cuts Debt Ratings to Ba3 from Ba2
---------------------------------------------------------
Moody's Investors Service downgraded NOVA Chemicals Corp.'s
corporate family rating and its senior unsecured debt ratings to
Ba3 from Ba2.  Moody's also affirmed NOVA's speculative grade
liquidity rating at SGL-3 and the company's LGD assessments.
The rating outlook is negative.

Ratings Downgraded:

Issuer: NOVA Chemicals Corp.

    * Corporate Family Rating, downgraded to Ba3 from Ba2;

    * Probability of Default Rating, downgraded to Ba3 from Ba2;

    * US$400 million Flt Rate Global Sr Unsec Notes
      due 11/2013, downgraded to Ba3 from Ba2;

    * US$400mm 6.5% Global Sr Unsec Notes due 1/2012,
      downgraded to Ba3 from Ba2;

    * US$125mm 7.25% Sr Unsec Debentures due 8/2028,
      downgraded to Ba3 from Ba2; and

    * US$100mm 7.875% Sr Unsec Debentures due 9/2025,
      downgraded to Ba3 from Ba2.

Ratings affirmed:

Issuer: NOVA Chemicals Corp.

    * Loss Given Default Assessments for all rated
      unsecured debt, LGD4; and

    * Speculative Grade Liquidity Rating, SGL-3.

The ratings downgrades reflects Moody's belief that the company
will fall short of expected peak metrics, including EBITDA and
free cash flow generation, in 2006 and hence its through-the-
cycle average metrics are not sufficient to support a Ba2
rating.

Although NOVA's Olefin business generated a record US$255
million of EBITDA (not including US$17 million of unrecognized
hedging losses) during the quarter, largely due to the
unprecedented feedstock differential versus Gulf Coast
producers, the consolidated EBITDA failed to exceed
US$200 million and the company was free cash flow negative by
more than US$100 million.  As a result, the company's balance
sheet debt and usage under the accounts receivable facility
increased above US$2.25 billion for the first time in five
years.  At this point in the cycle, Moody's does not believe
that debt should be approaching near record levels, given the
potential future volatility in earnings.  Additionally, when
using Moody's Chemical Industry Rating Methodology, the
company's metrics map to a very weak "Ba" rating.

The negative outlook reflects uncertainties over NOVA's future
financial performance given the anticipated downturn in the
ethylene and polyethylene margins over the next several years
and its ability to generate financial metrics that solidly
support the Ba3 corporate family rating with its current debt
load.  The key ratings drivers are Financial Strength,
Management Strategy and Business Profile.  If NOVA is unable to
keep EBITDA above US$450-500 million per year and reduce debt by
over US$300 million during the next two years, Moody's could
reassess the appropriateness of the company's Ba3 corporate
family rating.

Nova Chemicals is headquartered in Calgary, Alberta, Canada and
is a leading producer of ethylene, polyethylene, styrene,
polystyrene, and expanded polystyrene.  NOVA reported revenues
of US$6.3 billion for the last twelve months ending
Sept. 30, 2006.


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


DEMIR-HALK: Fitch Keeps Issuer Default Rating at BB
---------------------------------------------------
Fitch Ratings affirmed Demir-Halk Bank (Nederland) N.V.'s
ratings at Issuer Default BB, Short-term B, Individual C/D, and
Support 5.  The rating Outlook remains Stable.

The Issuer Default, Short-term and Individual ratings reflect
DHB's limited franchise and small capital base, its exposure to
Turkish and other emerging market risks and its strong recent
loan growth.  They also take into account the bank's consistent
but modest profitability, adequate capitalization, low level of
impaired lending and a stable retail funding base.

In order to offset margin pressure in its traditional Turkish
business, the bank has been diversifying away from Turkey into
Russian and Commonwealth of Independent States markets since
2004.  Despite this, its on-balance sheet exposure to Turkish
risk remains high.

The bank has also been expanding consumer lending in the
Netherlands, Germany and Belgium.  The benefits of these
diversification efforts on profitability have yet to fully
materialize.  Furthermore, as DHB's experience in the Russian
and the CIS markets is limited, growth in these markets could
come with additional risks.

Asset quality indicators remains sound, benefiting from the
short-term nature of trade finance.  Impaired loans were low at
0.7% of total gross loans at end-H106 and were fully reserved.
Although capital ratios have come down from high levels,
reflecting growth in risk-weighted assets, they remain adequate;
at end-H106, DHB's Basel/G10 total capital ratio stood at 20.8%.

The ratio calculated as per Dutch central bank requirements
stood at 10.3%.  DHB derives most of its funding from retail
deposits, which accounted for 79% of end-H106 liabilities.
These deposits have proved stable in recent crises.

Established in 1992, DHB is 70%-owned by HCBG Holding B.V.
(solely owned by Halit Cingillioglu, a prominent Turkish
businessman) and 30% by Turkiye Halk Bankasi, the second-largest
state bank in Turkey.  A specialized trade finance bank, DHB
serves exporters worldwide, focusing on trade flows between
Europe, the CIS and Turkey.

Operating from a head office in Rotterdam, the bank has a number
of branches in the Netherlands, Germany and Belgium.  As a Dutch
bank, DHB is subject to the regulatory and supervisory framework
of the Dutch central bank.


DENIZBANK AS: Zorlu Transfers 75% Stake to Dexia Participation
--------------------------------------------------------------
Zorlu Holding A.S. transferred 237,063,940,440 Denizbank A.S.
shares amounting to US$2.43 billion to Dexia Participation
Belgique S.A. on Oct. 17.

The shares represents 75% of Denizbank's capital to Dexia
Participation Belguige SA, which is directly and indirectly 100%
owned by Dexia S.A./NV.

Denizbank A.S. -- http://www.denizbank.com.tr/-- focuses on SME
and retail clients, ranking as Turkey's sixth-largest private
bank.  It has 245 branches nationwide, owns banks in Austria and
Russia and is engaged in investment, brokerage, leasing and
factoring.


DENIZ FINANSAL: Fitch Lifts IDR to BB on Equity Purchase
--------------------------------------------------------
Fitch Ratings upgraded Turkey's Deniz Finansal Kiralama A.S.'s
("Deniz Leasing") ratings to foreign currency Issuer Default BB
from BB-, local currency Issuer Default BB+ from BB- and
National Long-term AA from A.

At the same time Fitch affirmed Deniz Leasing's other ratings at
Short-term foreign and local currency B and Support 3.  This
follows the announcement on Oct. 17 that Dexia has acquired 75%
of Denizbank's shares from Zorlu Holding in line with the share
purchase agreement signed on May 31.

As part of the transaction, Dexia is purchasing 75% of
Denizbank's financial services subsidiaries including Deniz
Leasing.

The Rating Watch Positive on the above ratings has been removed.
A Positive Outlook has been assigned to foreign and local
currency Issuer Default ratings and the Outlook for the National
rating is Stable.  The foreign currency Issuer Default rating is
now at Turkey's Country Ceiling.

The upgrade reflects the support and benefits that Deniz Leasing
is expected to receive from its new shareholder, Dexia.  Fitch
views that while Dexia has a very high propensity to support
Denizbank, its ability to do so could be constrained by Turkey's
BB Country Ceiling.

Denizbank focuses on SME and retail clients and ranks as
Turkey's sixth-largest private bank.  It has 245 branches
nationwide, owns banks in Austria and Russia and is engaged in
investment, brokerage, leasing and factoring.


TURKIYE PETROL: Fitch Affirms Foreign Currency Rating at BB
-----------------------------------------------------------
Fitch Ratings affirmed Turkiye Petrol Rafinerileri A.S.'s local
currency Issuer Default rating at BBB- and foreign currency IDR
at BB, which is capped by the Country Ceiling.  The Outlooks are
Stable and Positive respectively.

The National Long-term rating is affirmed at AA+ with a Stable
Outlook.  Tupras has no bond issues outstanding as of
October 2006.

The ratings reflect Tupras' leading position in the Turkish
energy sector and its strong balance sheet supported by refining
margins that are expected to remain above the historical average
in the short to medium term.

Furthermore, possible business synergies with Shell and Opet -
the second and fourth largest player in the Turkish fuel
distribution market respectively - will further consolidate
Tupras' financial profile, provided that its balance sheet
remains strong and is not encumbered in the medium term by the
holding company Enerji Yatirimlari A.S., which is majority
controlled by Koc Holding.

In Fitch's view, Tupras remains well positioned to maintain or
further increase its high utilization rates, due to rising
domestic demand and its favorable cost structure.  New entrants
to the Turkish refinery market, Petrol Ofisi A.S., OAO LUKoil
and Calik Holding are expected to start operating in 2011-2012
with refining capacity in the 20-30 mpta range.  Consequently,
Tupras' domestic market share may decline in the long term.

Despite its ongoing capital expenditure program and focus on
manufacturing products in line with EU environmental
specifications, gross debt at Tupras remains modest at TRY479
million at FY05.  The company has been in a net cash position in
the past three years, with healthy cash balances of TRY984
million at YE05, TRY1.1 billion at YE04 and TRY930 million at
YE03.

Credit ratios are very strong for the rating level, including
with FY05 gross debt-to-EBITDA of 0.5x and funds from operations
fixed charge cover of 130.5x.  Fitch notes that Tupras' debt may
increase further owing to a rise in capital expenditure, but
leverage and coverage ratios are expected to remain strong.
Fitch understands that Tupras' cash balance dropped to TRY396
million as of H106 from TRY984 million at YE05 due to dividend
payments and elevated inventory levels.

The dividend payouts for FY04 and FY05 were high at around 90%,
but remained in line with the company's payout history.  Fitch
expects Tupras to maintain its dividend policy in the near term
as EA depends solely on these funds for servicing US$1.8 billion
of debt.  Legislation in Turkey limits dividends to the level of
the net profit for any given period.  However, Fitch will
continue to closely monitor developments surrounding EA, Tupras
and Koc Holding.

Fitch also notes that Koc Holding may engage in more spin-offs
and divestments in 2007 and does not rule out the possibility of
a new minority shareholder in Tupras.

Tupras is the largest industrial corporate in Turkey, owning and
operating four oil refineries with a combined annual refining
capacity of 27.6m tons.  It generated EBITDA of US$784 million
in 2005.


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


AVTOTRANSVTORMA: Court Names T. Kushnir as Insolvency Manager
-------------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. T. Kushnir as
Liquidator/Insolvency Manager for OJSC Avtotransvtorma (code
EDRPOU 21610352).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
24/645-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         OJSC Avtotransvtorma
         Kolektorna Str. 38/40
         02660 Kyiv Region
         Ukraine


DONBASTORGKOMPLEKT: Court Names Oleksandr Klinchev as Liquidator
----------------------------------------------------------------
The Economic Court of Lugansk Region appointed Oleksandr
Klinchev as Liquidator/Insolvency Manager for LLC
Donbastorgkomplekt (code EDRPOU 26071049).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 11.  The case is docketed
under Case No. 20/53 B.

The Economic Court of Lugansk Region is located at:

         Geroiv VVV Square 3a
         91000 Lugansk Region
         Ukraine

The Debtor can be reached at:

         LLC Donbastorgkomplekt
         Oboronna Str. 14
         91011 Donetsk Region
         Ukraine


KOSHMANIVKA AGRICULTURAL: Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Economic Court of Poltava Region commenced bankruptcy
supervision procedure on OJSC Koshmanivka Agricultural Machine-
Technological Station (code EDRPOU 30131464).   The case is
docketed under Case No. 20/47.

The Temporary Insolvency Manager is:

         Andrij Dulenko
         Frunze Str. 55-A
         Karlivka
         39500 Poltava Region
         Ukraine

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         OJSC Koshmanivka Agricultural
         Machine-Technological Station
         Lenin Str. 1
         Koshmanivka
         Mashivskij District
         39400 Poltava Region
         Ukraine


KREDITPROMBANK: Moody's Rates Loan Participation Notes at B2
------------------------------------------------------------
Moody's Investors Service assigned a B2 long-term foreign
currency debt rating to the upcoming issue of Loan Participation
Notes to be issued by HSBC Bank plc (U.K.) on a limited recourse
basis for the sole purpose of funding a senior unsecured loan to
Kreditprombank.  The outlook for the rating is stable.

The B2 rating is primarily based on the credit quality of
Kreditprombank as an underlying borrower.  However, Moody's
notes that the structure of the transaction does not completely
eliminate the credit risk inherent to HSBC Bank plc as both
issuer of the notes and a principal paying agent, given that it
has not charged and assigned its rights and interests to the
trustee for the LPN holders.

Although in the event of default HSBC Bank plc may -- and shall
if instructed by the trustee -- assign to the trustee the
benefit of relevant loan rights, the noteholders must rely not
only on the credit quality of Kreditprombank but also upon the
financial standing of HSBC Bank plc, as they will have no
recourse to any of the issuer's assets in relation to the LPNs
and are therefore unsecured creditors of the issuer without any
direct recourse to payments by Kreditprombank under the loan
agreement with HSBC Bank plc.

At the same time, Moody's adds, given the current credit
strength of HSBC Bank the probability of such an event occurring
is rather low, which does not alter the credit risk inherent to
the LPNs to an extent that would be incompatible with the
B2 rating, while should HSBC Bank be downgraded, this may have
negative repercussions for the rating of the instrument.

Moody's also adds that the underlying loan agreement contains a
set of covenants such as negative pledge, cross default,
maintenance of capital adequacy, limitations on mergers,
disposals, transactions with affiliates and restricted payments.
The rating agency notes that, while the likelihood of any of the
above covenants being triggered is relatively low, if such were
to occur, it could potentially have adverse liquidity
implications for the bank and might exert severe downward
pressure on its ratings.

Moody's cautions that the transaction also has an embedded
rating trigger whereby the notes will become payable if during
the six months after the occurrence of any reorganization,
corporate reconstruction or change of control of Kreditprombank,
its ratings are either be put on negative outlook or downgraded
or withdrawn.  If the noteholders' put option were to be
exercised, this could result in a need to repay a sizeable
obligation, thus putting a burden on the bank's financial
resources.

Kreditprombank is headquartered in Kiev (Ukraine) and as of
June 30, 2006 reported total IFRS assets and net income of
US$919 million and US$3.6 million, respectively.


KREDITPROMBANK: Fitch Assigns B- Rating on Upcoming Eurobond
------------------------------------------------------------
Fitch Ratings assigned HSBC Bank PLC's upcoming issue of limited
recourse loan participation notes expected ratings of Recovery
RR4 and Long-term B-.

The notes are to be used solely for financing a loan to Ukraine-
based Kreditprombank, which is rated Issuer Default B-, Short-
term B, Individual D/E, Support 5, and National Long-term BBB-.
The Outlooks on the Issuer Default and National long-term
ratings are Stable.

The final ratings are contingent upon receipt of final
documentation conforming materially to information already
received.

HSBC Bank PLC, a U.K.-domiciled public limited company, will
only pay noteholders principal and interest received from
Kreditprombank.  It will not grant security to The Law Debenture
Trust Corporation PLC over its rights under the loan agreement.

Following an event of default, the issuer may, and shall if
instructed by the trustee, assign to the trustee the benefit of
relevant loan rights.  Its claims under the loan agreement will
rank at least equally with the claims of other senior unsecured
creditors of Kreditprombank, save those whose claims are
preferred by any bankruptcy, insolvency, liquidation or similar
laws of general application.

Under Ukrainian law, the claims of retail depositors rank above
those of other senior unsecured creditors.  At end-H106, retail
deposits accounted for 20% of Kreditprombank's total
liabilities, according to the bank's reviewed IFRS accounts.

The loan agreement contains covenants restricting mergers and
disposals by Kreditprombank and its material subsidiaries,
transactions between the bank and its affiliates and certain
payments and distributions by the bank and its subsidiaries.  It
also contains a cross default clause and a 'negative pledge'
clause, the latter of which allows for up to 20% of gross loans
to customers to be securitized by Kreditprombank and its
subsidiaries.

Were such transactions to be undertaken, Fitch comments that the
nature and extent of any over-collateralization would be
assessed by the agency for any potential impact on unsecured
creditors.  Kreditprombank must ensure full compliance with
capital adequacy requirements of the National Bank of Ukraine,
with respective threshold currently being at 10%.

According to National Bank of Ukraine, Kreditprombank was the
13th largest Ukrainian bank by assets at end-June 2006.
Kreditprombank's principal activities are corporate banking,
with a focus on small and medium-sized companies and retail
banking.  The bank is majority-owned by a Greek citizen with
business ties in Ukraine.


KREMENCHUK-AUTO: Court Names I. Chornokondratenko as Liquidator
---------------------------------------------------------------
The Economic Court of Poltava Region appointed Mr. I.
Chornokondratenko as Liquidator/Insolvency Manager for LLC
Kremenchuk-Auto (code EDRPOU 32399025).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 12.  The case is docketed
under Case No. 7/79.

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         LLC Kremenchuk-Auto
         Salganna Str. 14A
         Kremenchuk
         39612 Poltava Region
         Ukraine


MALIN BUTTER-CHEESE: Court Names Nataliya Gubitska as Liquidator
----------------------------------------------------------------
The Economic Court of Zhitomir Region appointed for Enterprise
Malin Butter-Cheese Plant (code EDRPOU 30916168).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Aug. 22.  The case is docketed
under Case No. 3/130 B.

The Economic Court of Zhitomir Region is located at:

         Berdichivska Str. 25
         Mala
         10014 Zhitomir Region
         Ukraine

The Debtor can be reached at:

         Enterprise Malin Butter-Cheese Plant
         Sichovih Striltsiv Str. 57
         Terebovlya
         48100 Ternopil Region
         Ukraine


NADIYA: Court Names Tetyana Pilipenko as Insolvency Manager
-----------------------------------------------------------
The Economic Court of Cherkassy Region appointed Tetyana
Pilipenko as Liquidator/Insolvency Manager for Agricultural LLC
Nadiya (code EDRPOU 32278181).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 25.  The case is docketed
under Case No. 10/2643.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Nadiya
         Taraso-Grigorivka
         Chigirin District
         20943 Cherkassy Region
         Ukraine


NOVI SANZHARI: Court Names O. Bruhovetskij as Liquidator
--------------------------------------------------------
The Economic Court of Poltava Region appointed Mr. O.
Bruhovetskij as Liquidator/Insolvency Manager for OJSC Novi
Sanzhari Leather Plant (code EDRPOU 00307939).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Aug. 31.  The case is docketed
under Case No. 20/344.

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         OJSC Novi Sanzhari Leather Plant
         Chkalov Str. 11B
         Novi Sanzhari
         39300 Poltava Region
         Ukraine


SFERA: Donetsk Court Names Ludmila Zayikina as Liquidator
---------------------------------------------------------
The Economic Court of Donetsk Region appointed Ludmila Zayikina
as Liquidator/Insolvency Manager for LLC Sfera (code EDRPOU
31377429).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 14.  The case is docketed
under Case No. 27/170 B.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         LLC Sfera
         Vorovskij Str. 7/16
         83045 Donetsk Region
         Ukraine


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


BECKMAN COULTER: Lumigen Deal Cues Moody's to Hold Ratings
----------------------------------------------------------
Moody's Investors Service affirmed the ratings of Beckman
Coulter.  The outlook on Beckman's ratings remains stable.

The rating action follows Beckman's agreement to acquire Lumigen
Inc. for US$185 million in cash.  Beckman reportedly will
finance the transaction through US$185 million of long-term
borrowings.  Lumigen generated over US$33 million in revenues
during 2005 with Beckman having accounted for about 40% of the
total.  In addition, Lumigen generated free cash flow of nearly
US$12 million in 2005.  The exact terms and structure of the
planned debt financing have not yet been announced.  As such,
Moody's is not assigning a rating on the proposed financing
instrument until the details have been finalized and made
public.

While Moody's is affirming the company's existing ratings
despite the increase in leverage to finance the acquisition of
Lumigen, Moody's notes that this transaction will constrain the
company's future financial flexibility and place Beckman at the
low end of its existing rating category with respect to several
credit metrics, most prominently including adjusted free cash
flow to adjusted debt.  As a result, the ratings would become
more unfavorable if Beckman were to pursue another debt-financed
acquisition.  The ratings would also be under pressure if there
is a meaningful deterioration in the company's cash flow in the
short-term to intermediate-term.

Lumigen develops and manufacturers detection chemistries for
high-sensitivity testing in clinical diagnostics and life
science research.  Beckman uses Lumigen's proprietary reagents
in its immunoassay systems.  As a result, the acquisition
ensures that Beckman will have a steady supply of current
technology as well as future Lumigen technology to be used for
its immunochemical and other high-sensitive testing.  Lumigen
also manufactures and licenses proprietary chemicals used by
other clinical diagnostics and life-science manufacturers.
Moody's expects the transaction to close by November 2006.

Despite the increase in long-term debt, the affirmation of
Beckman's rating and stable outlook incorporates Moody's
expectation that the company will continue to generate
meaningful operating cash flow relative to its long-term debt of
30% to 35%, which is still indicative of an investment grade
company.  The outlook also assumes that the company will be
effective in integrating Lumigen without having a significant
impact on its credit metrics.  While Beckman is paying US$185
million for Lumigen and financing the transaction with long-term
debt, Moody's notes that Beckman should benefit from continued
growth of the business and high margins historically derived by
Lumigen.

These ratings were affirmed:

   -- US$500 Million Universal Shelf Registration (Senior and
      Subordinate); (P) Baa3/ (P) Ba1

   -- US$240 Million 7.45% Senior Notes due 2008; Baa3

   -- US$235 Million 6.875% Senior Notes due 2011; Baa3

   -- US$100 Million 7.05% Senior Debentures due 2026; Baa3

   -- US$300 Million revolving credit facility, due 2010; Baa3

Beckman Coulter, Inc., headquartered in Fullerton, California,
is a leading provider of instrument systems and complementary
products that simplify and automate processes in biomedical
research and clinical laboratories.  The company reported total
revenue of US$2.4 billion during 2005.  In Europe, the company
maintains operations in Russia, Germany, Italy, the Netherlands,
Turkey and the United Kingdom, among others.


BOCKMANN U.K.: Appoints J. M. Titley as Liquidator
--------------------------------------------------
J. M. Titley of DTE Leonard Curtis was appointed Liquidator of
Bockmann U.K. Limited on Oct. 4 for the creditors' voluntary
winding-up procedure.

Headquartered in Leyland, United Kingdom, Bockmann U.K. Limited
-- http://www.bockmann.co.uk/ -- manufactures commercial
trailers as well as horse trailers and boxes.  The company has a
manufacturing facility in Lastrup, Northern, Germany.  It
employs over 250 people and produces in excess of 22,000
trailers a year.


BURNTWOOD FENCING: Claims Filing Period Ends Nov. 28
----------------------------------------------------
Creditors of Burntwood Fencing Limited have until Nov. 28 to
send in their full names, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their Solicitors (if any) to appointed Liquidator
Jonathan Elman Avery-Gee at:

         Kay Johnson Gee
         Griffin Court
         201 Chapel Street
         Salford
         Manchester M3 5EQ
         United Kingdom

The company can be reached at:

         Burntwood Fencing Limited
         161-167 High St.
         Chasetown
         Burntwood
         Staffordshire WS7 3XL
         United Kingdom
         Tel: 01543 673072


BUSY BEES: Taps Liquidator from DTE Leonard Curtis
--------------------------------------------------
A. Clifton of DTE Leonard Curtis was appointed Liquidator of
Busy Bees U.K. Limited on April 18 for the creditors' voluntary
winding-up procedure.

Headquartered in Colchester, United Kingdom, Busy Bees U.K.
Limited -- http://www.busy-bees.org.uk/-- specializes in
providing a complete range of cleaning services to both domestic
and commercial customers all over the East Anglia and London
area.

The company offers a comprehensive service covering: window
cleaning, carpet cleaning, office cleaning, house cleaning and
clearance, ironing, builders cleans, spring cleaning, pest
control and ground maintenance.


CENTRAL SOUTHERN: Brings In Bridgers to Administer Assets
---------------------------------------------------------
Peter Bridger and John Kirkpatrick of Bridgers were appointed
joint administrators of Central Southern Interiors Ltd. (Company
Number 3372447) on Oct. 2.

The administrators can be reached at:

         Bridgers
         6c Church Street
         Reading
         Berkshire RG1 2SB
         United Kingdom
         Tel: 0118 951 2131

Central Southern Interiors Ltd. can be reached at:

         Parklands Business Park
         Forest Road
         Denmead
         Waterlooville
         Hampshire PO7 6AR
         United Kingdom
         Tel: 023 9223 2020


CHUNK LIMITED: Names Mark S. Reynolds as Administrator
------------------------------------------------------
Mark S. Reynolds of Valentine & Co. was appointed administrator
of Chunk Ltd. (Company Number 04078656) on October 10.

The administrator can be reached at:

         Valentine & Co.
         4 Dancastle Court
         14 Arcadia Avenue
         London N3 2HS
         United Kingdom
         Tel: 020 8343 3710
         Fax: 020 9343 4486
         Web site: http://www.valentine-co.com/

Headquartered in London, United Kingdom, Chunk Ltd. supplies
printed T-Shirts.


CORUS GROUP: Board Approves Tata Steel's Takeover Bid
-----------------------------------------------------
The boards of Tata Steel and Corus Group plc agreed on the terms
of the recommended acquisition of the entire issued and to be
issued share capital of Corus at a price of 455 pence in cash
for each Corus Share, valuing Corus at GBP4.3 billion.

Tata Steel is India's largest private sector steel company with
2005/06 revenues of US$5.0 billion and crude steel production of
5.3 million tons across India and South-East Asia.  It is a
vertically integrated manufacturer and is one of the world's
most profitable and value creating steel companies.  Tata Sons,
Tata Steel and other Tata companies had combined revenues in
2005/06 of approximately US$22 billion.  Tata Sons' current
investments are valued at approximately US$50 billion.

Corus is Europe's second largest steel producer with revenues in
2005 of GBP9.2 billion and crude steel production of 18.2
million tons, primarily in the U.K. and the Netherlands.

The combination is strategically compelling, creating a
vertically integrated global steel group:

   -- fifth largest global steel producer with pro forma crude
      steel production of 23.5 million tons in 2005;

   -- high quality, low cost, attractive growth platform in Asia
      combined with a leading European steel player;

   -- high value-added product mix and strong market positions
      in automotive, construction and packaging;

   -- a more resilient business model and a strong platform for
      further growth;

   -- a strong and committed combined management team; and

   -- a common business culture and shared values.

The price of 455 pence per Corus Share represents:

   -- on an enterprise value basis, a multiple of approximately
      7.9 times underlying EBITDA from continuing operations for
      the twelve months to July 1, 2006, (excluding, inter alia,
      the non-recurring pension credit of GBP96 million) and a
      multiple of approximately 5.4 times underlying EBITDA from
      continuing operations for the year ended Dec. 31, 2005;
      and

   -- a premium of approximately 26.2% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      twelve months ended Oct. 4, 2006, being the last business
      day prior to the announcement by Tata Steel that it was
      evaluating various opportunities including Corus.

Tata Steel has held constructive and satisfactory discussions
with Corus' two main U.K. pension schemes and has offered to:

   -- fund upfront the IAS 19 deficit on the Corus Engineering
      Steels Pension Scheme by paying GBP126 million into the
      scheme; and

   -- increase the contribution rate on the British Steel
      Pension Scheme from 10% to 12%. until March 31, 2009.

The Acquisition will be made by Tata Steel U.K., a wholly-owned
indirect subsidiary of Tata Steel, and will be implemented by
way of a scheme of arrangement under section 425 of the
Companies Act 1985.

The Corus Directors, who have been advised by Credit Suisse (as
lead financial adviser), JPMorgan Cazenove and HSBC (as
independent financial adviser for the purposes of Rule 3 of the
City Code), consider the terms of the Acquisition to be fair and
reasonable, so far as Corus Shareholders are concerned.

Accordingly, the Corus Directors intend to unanimously recommend
that Corus Shareholders vote in favor of the Scheme as they have
undertaken to do in respect of their own beneficial holdings of
Corus Shares, representing approximately 0.1%. of the existing
share capital of Corus. In providing their advice, Credit
Suisse, JPMorgan Cazenove and HSBC have taken into account the
commercial assessments of the Corus Directors.

"This proposed acquisition represents a defining moment for Tata
Steel and is entirely consistent with our strategy of growth
through international expansion," Ratan Tata, Chairman of Tata
Steel, said.  "Corus and Tata Steel are companies with long,
proud histories.  We have compatible cultures of commitment to
stakeholders and complementary strengths in technology,
efficiency, product mix and geographical spread.  Together we
will be even better equipped to remain at the leading edge of
the fast changing steel industry."

"This offer from Tata Steel reflects the substantial value
created for Corus shareholders since the placing and open offer
and launch of our "Restoring Success" program in 2003," Jim
Leng, Chairman of Corus, said.

In the middle of last year, my board agreed a strategic way
forward for Corus to seek access to low cost production and high
growth markets.  Consistent with this, the Company held talks
with a number of parties from Brazil, Russia and India.  This
transaction represents the culmination of these talks.

This combination with Tata, for Corus shareholders and employees
alike, represents the right partner at the right time at the
right price and on the right terms. This creates a well balanced
company, strategically well placed to compete in an increasingly
competitive global environment."

Full-text copy of Corus Group-Tata Steel joint statement on the
agreed takeover is available free-of-charge at:
http://researcharchives.com/t/s?13c4

                        About Tata Steel

Headquartered in Mumbai, India, Tata Steel --
http://www.tatasteel.com/-- is Asia's first and India's largest
private sector steel company.  Tata Steel is among the lowest
cost producers of steel in the world and one of the few select
steel companies in the world that is EVA+ (Economic Value
Added).  It is a small steel producer by global standards, but
has the backing of the giant Tata Group, one of India's largest
companies with interests as diverse as carmaking,
communications, tea and oil.

                        About Corus Group

Corus Group PLC -- http://www.corusgroup.com/-- produces metal
from its major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.  Corus
turns over GBP10 billion annually and employs 47,300 in over 40
countries and sales offices and service centers worldwide,
including Indonesia and the Philippines.  Corus was created
through the merger of British Steel plc and Koninklijke
Hoogovens N.V.

The group suffered six years ago from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported by TCR-Europe on June 21, Standard & Poor's removed
Corus Group PLC's CreditWatch and raised its long-term corporate
credit rating to 'BB' from 'BB-', reflecting the group's
improved financial risk profile.  S&P said the Outlook is
stable.

Fitch Ratings changed Corus Group PLC's Outlook to Positive from
Stable and affirmed the Issuer Default Rating at BB- following
the company's announcement of its 2005 results and plan to
dispose its aluminium business for EUR826 million.  Corus'
affirmed debt instruments include:

   a) Corus Group PLC EUR800 mln 7.5% senior notes B+;

   b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+;

   c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+;
      and

   d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+.

As reported in TCR-Europe on May 11, Moody's Investors
Service upgraded Corus Group plc's corporate family rating to
Ba2, upgraded its senior unsecured and supported unsecured
obligations to B1 and raised senior secured bank facility to
Ba1.


DERITEND ENGINEERING: Taps Administrators from P&A
--------------------------------------------------
M. D. Hardy and M. T. Coyne of Poppleton & Appleby were
appointed joint administrators of Deritend Engineering Services
Ltd. (Company Number 04438668) and Deritend Engineering
International Ltd. (Company Number 04438933) on Oct. 3.

The administrators can be reached at:

         M. D. Hardy and M. T. Coyne
         Poppleton & Appleby
         35 Ludgate Hill
         Birmingham B3 1EH
         United Kingdom
         Tel: 0121 200 2962
         Web site: http://www.pandabirmingham.co.uk/

Deritend Engineering Services Ltd. and Deritend Engineering
International Ltd. can be reached at:

         21 Aldridge Road
         Perry Barr
         Birmingham
         West Midlands B42 2TJ
         United Kingdom
         Tel: 0121 356 5545
         Fax: 0121 356 8207


DIGITAL RUM: Appoints Moore Stephens to Administer Assets
---------------------------------------------------------
Phillip Sykes and Jeremy Willmont of Moore Stephens LLP were
appointed joint administrators of Digital Rum Ltd. (Company
Number 03943687) on Oct. 6.

Moore Stephens -- http://www.moorestephens.co.uk/-- offers
audit, business support, corporate finance, corporate recovery,
dispute analysis, financial services, insurance broking, IT
consultancy, pensions audit, risk advisory services, tax and
trusts & estates services.  Its U.K. network comprises over
1,400 partners and staff.

Headquartered in London, United Kingdom, Digital Rum Ltd. is
engaged in mobile telecommunications technology and messaging
services.


DIRECT SERVICES: Names T. Papanicola as Administrator
-----------------------------------------------------
T. Papanicola of Bond Partners LLP was named administrator of
Direct Services South East Ltd. (Company Number 04115431) on
Oct. 9.

The administrator can be reached at:

         T. Papanicola
         Bond Partners LLP
         Turnpike Gate House
         Alcester Heath, Alcester
         Warwickshire B49 5NJ
         United Kingdom
         Tel: 01789 766406

Direct Services South East Ltd. can be reached at:

         33 Gunn Road
         Swanscombe
         Kent DA10 0JW
         United Kingdom
         Tel: 01474 531 273


DIRECT WINDOW: Hires David R. Acland to Liquidate Assets
--------------------------------------------------------
David R. Acland of Begbies Traynor was appointed Liquidator of
Direct Window Supply Limited on Oct. 5 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Direct Window Supply Limited
         Mold Road
         Gwersyllt
         Wrexham
         Clwyd LL114AQ
         United Kingdom
         Tel: 01978 355 020
         Fax: 01978 355 025


DIVE 69: Names Elizabeth Arakapiotis Liquidator
-----------------------------------------------
Elizabeth Arakapiotis was appointed Liquidator of
Dive 69 Limited on Oct. 6 for the creditors' voluntary
winding-up procedure.

Headquartered in Epsom, United Kingdom, Dive 69 Limited --
http://www.69diving.clara.net./-- offers the (Professional
Association of Diving Instructors) PADI system of diver
training.  The company also sells BCD's, dive regulators,
wetsuits, fins, masks and drysuits.


DOLE FOOD: Restructuring Fresh Flower Business
----------------------------------------------
Dole Food Co., Inc., disclosed that it was restructuring its
Dole Fresh Flowers division to better focus on high-value
products and flower varieties, and position the business unit
for future growth.  Dole said these actions are a continuation
of performance-improving measures that began in 2005, and
represent an acknowledgement of the global challenges facing the
fresh flower industry.

"The fresh flower business is highly fragmented and competitive.
Industry oversupply has driven prices down, creating significant
pressure on growers to improve performance.  Latin American
growers are also facing new competition from emerging markets in
Africa and Asia," said John Amaya, president Dole Fresh Flowers.
"Being a market leader also means making difficult decisions,
and today we continue to take necessary steps to reinvent our
business, implementing changes that will create efficiencies,
improve performance and allow DFF to focus on markets in which
Dole's quality products and service can earn a premium."

In a move to better align supply with demand, and focus on
delivering superior products and service for its customers, DFF
is implementing measures that will allow it to focus on
delivering more desirable varieties of flowers to market, and
increase the quality of those products.  Specific actions Dole
Fresh Flowrs is taking include:

   -- Dole Fresh Flowers will close the flowers operation in
      Ecuador and two farms in Colombia
      (Porcelain and Splendor-Corzo), affecting 2,188
      employees.  These farms have historically produced
      products with limited/seasonal demand and have high
      costs.

   -- Additionally, Dole Fresh Flowers is downsizing other farms
      of the flowers operation, which will impact 1,275
      employees.

   -- A global sales force reduction of 35 percent is underway,
      and Dole Fresh Flowers is making additional
      administrative/management workforce reductions of 29%.

   -- Dole Fresh Flowers subsidiaries' employees in Colombia and
      Ecuador who are affected by this disclosure will receive
      appropriate severance benefits.

   -- In addition to reducing headcount in the operation, Dole
      Fresh Flowers is also taking steps to lower
      infrastructure/overhead costs throughout the operation.

   -- The above measures are expected to improve annual cash
      flow by approximately US$35 million.  Restructuring
      charges, the bulk of which are expected to be recorded
      during the third and fourth quarters of 2006, are
      estimated at US$26 million, which approximately US$13
      million represents cash.

   -- Certain Dole Fresh Flowers customers will be affected by
      this restructuring, and are currently being notified by
      the company.  Dole Fresh Flowers is committed to
      maintaining relationships with current or past customers
      as it completes this restructuring and focuses efforts on
      penetrating new markets with a premium product.

The Miami Herald underscores that Dole Fresh did not say how
many jobs would be cut at its headquarters, which are located
west of Miami International Airport.

Dole Food told Central Valley Business Times that the measures
are aimed at improving annual cash flow by US$35 million.

Some clients will be affected by the restructuring, Central
Valley Business says, citing Dole Food.

"Dole Fresh Flowers understands, and takes very seriously, the
impact the announcement will have on employees and their
families.  We are working with our employees and government
officials in Colombia and Ecuador to ensure the payment of
severance benefits and a smooth transition for these changes,"
said Mr. Amaya.

                   About Dole Fresh Flowers

Dole Fresh Flowers is the largest producer of fresh-cut flowers
in Latin America. Over 90% of the company's Latin American
flowers are shipped into North America.  Its products include
over 800 varieties of fresh-cut flowers, such as roses,
carnations and alstroemeria, and are produced on approximately
1,400 acres in Colombia and Ecuador.  The company's subsidiaries
own and operate packing and cooling facilities on their flower
farms, and one of its subsidiaries leases a facility in Bogota,
Colombia for bouquet construction.

                     About Dole Food Co.

Headquartered in Westlake Village, California, Dole Food
Company's -- http://www.dole.com/-- is a producer and marketer
of fresh fruit, fresh vegetables and fresh-cut flowers, and
markets a line of packaged foods.  The company has four primary
operating segments.  The fresh fruit segment produces and
markets fresh fruit to wholesale, retail and institutional
customers worldwide.  The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia.  The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.  Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the United States.

                        *     *     *

As reported in TCR-Europe on Sept. 28, 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. Consumer Products, Beverage, Toy,
Natural Product Processors, Packaged Food Processors, and
Agricultural Cooperative sectors, the rating agency confirmed
its Ba3 Corporate Family Rating for Dole Food Company, Inc.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

   Issuer: Dole Food Company, Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan B Due 2013      Ba3      Ba2     LGD2       20%

Gtd. Sr. Sec.
Letter of Credit
Due 2013                  Ba3      Ba2     LGD2       20%

Gtd. Global Notes
Due 2010                  B3       B3      LGD5       77%

Global Notes Due 2009     B3       B3      LGD5       77%

Gtd. Global Bonds
Due 2011                  B3       B3      LGD5       77%

Debentures Due 2013       B3       B3      LGD5       77%


DOLE FOOD: Deal on JP Fruit Sale Expected in a Few Weeks
--------------------------------------------------------
Dr. Marshall Hall, the managing director of the Jamaica
Producers Group Ltd., told RJR News that the deal regarding the
sale of its 65% shareholdings in JP Fruit Distributors Ltd. to
Dole Food Co. could be closed in a few weeks.

As reported in the Troubled Company Reporter - Latin America on
Oct. 4, 2006, the Jamaica Producers accepted Dole Food's offer
to buy the shareholdings in JP Fruit for J$2.76 billion or
US$41.9 million.  Details of the accord are currently being
finalized with Dole.  Under the offer obligations, the Jamaica
Producers had two choices:

          -- to accept the bid, or
          -- to buy back Dole Food's interest in the JF Fruit.

Dole Food already holds a 35% stake in JP Fruit.

                About Jamaica Producers Group

Jamaica Producers Group Ltd. cultivates, distributes and markets
bananas and other fresh produce.  It manufactures and
distributes juices.  It is the largest grower of bananas in
Jamaica, controlling about 80% of the island's production.  It
is also a major marketer of the fruit in Britain.  The company
has had a partnership with Dole Food Co. since 1994 when
Producers sold 35% of JP Fruit Distributors Ltd. to Dole Food.

                     About Dole Food Co.

Headquartered in Westlake Village, California, Dole Food
Company's -- http://www.dole.com/-- is a producer and marketer
of fresh fruit, fresh vegetables and fresh-cut flowers, and
markets a line of packaged foods.  The company has four primary
operating segments.  The fresh fruit segment produces and
markets fresh fruit to wholesale, retail and institutional
customers worldwide.  The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia.  The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.  Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the United States.

                        *     *     *

As reported in TCR-Europe on Sept. 28, 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. Consumer Products, Beverage, Toy,
Natural Product Processors, Packaged Food Processors, and
Agricultural Cooperative sectors, the rating agency confirmed
its Ba3 Corporate Family Rating for Dole Food Company, Inc.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

   Issuer: Dole Food Company, Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan B Due 2013      Ba3      Ba2     LGD2       20%

Gtd. Sr. Sec.
Letter of Credit
Due 2013                  Ba3      Ba2     LGD2       20%

Gtd. Global Notes
Due 2010                  B3       B3      LGD5       77%

Global Notes Due 2009     B3       B3      LGD5       77%

Gtd. Global Bonds
Due 2011                  B3       B3      LGD5       77%

Debentures Due 2013       B3       B3      LGD5       77%


EASIWIPES LIMITED: Brings In Administrators from KPMG
-----------------------------------------------------
Jane Bronwen Moriarty and Myles Antony Halley of KPMG LLP were
appointed joint administrators of Easiwipes Ltd. (Company Number
1427084) on Oct. 6.

KPMG LLP-- http://www.kpmg.co.uk/-- in the UK is part of a
strong global network of member firms with 9,500 partners and
staff working in 22 offices across the UK providing audit, tax
and advisory services.

Headquartered in Gillingham, United Kingdom, Easiwipes Ltd.
manufactures industrial wipes.


FIRST HOUSING: Nominates Ninos Koumettou as Liquidator
------------------------------------------------------
Ninos Koumettou of AlexanderLawsonJacobs was nominated
Liquidator of First Housing (London) Ltd. on Oct. 9 for the
creditors' voluntary winding-up procedure.

Headquartered in London, United Kingdom, First Housing (London)
Ltd. engages in letting and management of properties.


HCA INC: Moody's Assigns Provisional Ratings to LBO Financing
-------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the
proposed financing of the leveraged buyout of HCA Inc. (Newco).
The ratings of the existing company HCA Inc. (Oldco) remain
under review for possible downgrade.

Ratings assigned:

HCA Inc. (Newco):

    * US$2,000 ABL Revolver due 2012, (P)Ba2, LGD2, 13%

    * US$2,000 Revolving credit facility due 2012,
     (P)Ba3, LGD3, 32%

    * US$2,750 Term Loan A due 2012, (P)Ba3, LGD3, 32%

    * US$8,800 Term Loan B due 2013, (P)Ba3, LGD3, 32%

    * US$1,250 Euro Term Loan due 2013, (P)Ba3, LGD2, 23%

    * US$1,500 Second Lien PIK Notes due 2016, (P)B2, LGD4, 57%

    * US$4,200 Second Lien Notes due 2016, (P)B2, LGD4, 57%

    * Corporate Family Rating, (P)B2

    * PDR, B2

    * Speculative Grade Liquidity Rating, SGL-2

    * Outlook Stable

The provisional ratings are subject to Moody's review of final
documentation.

Ratings remaining under review for possible downgrade:

HCA Inc. (Oldco):

    * Senior Unsecured Revolving Credit Facility, Ba2, LGD4, 60%
    * Senior Unsecured Notes, Ba2, LGD4, 60%
    * Corporate Family Rating, Ba2
    * Speculative Grade Liquidity Rating, SGL-2

Ratings placed under review for possible downgrade:

HCA Inc. (Oldco):

    * PDR, Ba2

Moody's expects to conclude the rating review and withdraw the
Corporate Family Rating of HCA Inc. (Oldco) at the closing of
the transaction.  The ratings for the securities to be tendered
are also expected to be withdrawn once the tender offer is
completed.  Moody's anticipates that it will downgrade existing
senior unsecured notes remaining in the capital structure of HCA
Inc. (Newco) (notes with maturities of 2010 and beyond) to Caa1
at the closing of the transaction reflecting the deeply
subordinated position of these instruments in the proposed
capital structure.

The review of the ratings was initiated on July 24 following the
announcement that the company had agreed to be acquired in a
leveraged buyout led by private equity investors Bain Capital,
Kohlberg Kravis Roberts & Co., and Merrill Lynch Global Private
Equity.  The transaction is valued at approximately
US$33 billion, including the assumption or repayment of
approximately US$11.7 billion of existing debt, and is expected
to close in the fourth quarter of 2006.

HCA Inc.'s (Newco) Corporate Family Rating of (P)B2 is primarily
driven by the significant increase in financial leverage and the
resulting constraints on cash flow and interest coverage
metrics.  Moody's believes the increased debt load will result
in a significant reduction in financial flexibility in a period
in which the company and the sector are challenged by weak
volume trends and increasing exposure to bad debt.  Therefore,
Moody's placed additional weight on these factors in determining
the Corporate Family Rating resulting in a differentiation
between the assigned rating and the indicated rating of Ba3
under the Global For-Profit Hospital Rating Methodology.

The significant financial leverage expected following the
transaction results in a number of financial metrics that
constrain the rating.  Operating and free cash flow coverage of
debt, two of the most heavily weighted factors in Moody's rating
methodology, are expected to be at levels appropriate for the
single B and Caa rating categories, respectively, throughout the
rating horizon.

The assignment of a speculative grade liquidity rating of SGL-2
to HCA Inc. (Newco) reflects our expectation of good liquidity
over the twelve months following the transaction.  Moody's
anticipates cash flow metrics will be constrained as a result of
the increased debt associated with the leveraged buyout of the
company for the four quarters ending Dec. 31, 2007.  Moody's
estimates that the company will have to fund over US$2 billion
in cash interest expense for the year ended Dec. 31, 2007.

The stable outlook reflects Moody's expectation that HCA Inc.
(Newco) will be able to offset lower admission growth trends
with expense management, especially in the areas of salaries,
wages and benefits and supply costs and, therefore, continue to
modestly grow EBITDA.  Moody's also notes that the company has
no near term maturities as a result of the proposed capital
structure thereby reducing any near term refinancing risk.

HCA Inc., headquartered in Nashville, Tennessee is the nation's
largest and most diversified acute care hospital company.  At
June 30, 2006, the company, through its subsidiaries, owned and
operated 176 hospitals and 92 freestanding surgery centers and
outpatient facilities.  The company's subsidiaries were also
partners in joint ventures that owned and operated seven
hospitals and seven freestanding surgery centers.


HSBC BANK: Fitch Places B- Rating on Upcoming Bond Issue
--------------------------------------------------------
Fitch Ratings assigned HSBC Bank PLC's upcoming issue of limited
recourse loan participation notes expected ratings of Recovery
RR4 and Long-term B-.

The notes are to be used solely for financing a loan to Ukraine-
based Kreditprombank, which is rated Issuer Default B-, Short-
term B, Individual D/E, Support 5, and National Long-term BBB-.
The Outlooks on the Issuer Default and National long-term
ratings are Stable.

The final ratings are contingent upon receipt of final
documentation conforming materially to information already
received.

HSBC Bank PLC, a U.K.-domiciled public limited company, will
only pay noteholders principal and interest received from
Kreditprombank.  It will not grant security to The Law Debenture
Trust Corporation PLC over its rights under the loan agreement.

Following an event of default, the issuer may, and shall if
instructed by the trustee, assign to the trustee the benefit of
relevant loan rights.  Its claims under the loan agreement will
rank at least equally with the claims of other senior unsecured
creditors of Kreditprombank, save those whose claims are
preferred by any bankruptcy, insolvency, liquidation or similar
laws of general application.

Under Ukrainian law, the claims of retail depositors rank above
those of other senior unsecured creditors.  At end-H106, retail
deposits accounted for 20% of Kreditprombank's total
liabilities, according to the bank's reviewed IFRS accounts.

The loan agreement contains covenants restricting mergers and
disposals by Kreditprombank and its material subsidiaries,
transactions between the bank and its affiliates and certain
payments and distributions by the bank and its subsidiaries.  It
also contains a cross default clause and a 'negative pledge'
clause, the latter of which allows for up to 20% of gross loans
to customers to be securitized by Kreditprombank and its
subsidiaries.

Were such transactions to be undertaken, Fitch comments that the
nature and extent of any over-collateralization would be
assessed by the agency for any potential impact on unsecured
creditors.  Kreditprombank must ensure full compliance with
capital adequacy requirements of the National Bank of Ukraine,
with respective threshold currently being at 10%.

According to National Bank of Ukraine, Kreditprombank was the
13th largest Ukrainian bank by assets at end-June 2006.
Kreditprombank's principal activities are corporate banking,
with a focus on small and medium-sized companies and retail
banking.  The bank is majority-owned by a Greek citizen with
business ties in Ukraine.


HOUSE OF EUROPE: S&P Rates EUR6-Mln Class E2 Notes at BB
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR996 million fixed- and floating-rate
notes, and the EUR4 million annuity notes to be issued by House
of Europe Funding V PLC, a special purpose entity.

Under this transaction, the proceeds of the notes issued at
closing will be invested in a portfolio of approximately
EUR800 million European ABS, rated 'BBB' and higher.  The
collateral manager is Collineo Asset Management GmbH.

This transaction is Collineo's fifth CDO backed by high-grade
European assets, but the first of this type to be rated by
Standard & Poor's.  Collineo also manages several CDOs of
mezzanine European ABS.

The House of Europe transactions are the only CDOs backed by
European high-grade ABS paper, although this transaction allows
up to 45% of the portfolio to be rated below 'AA-'.

In addition, this transaction features pro rata note redemption,
together with turbo payments on the class E1 and E2 notes, in
order to manage the CDO's cost of funds.

                        Ratings List
               House of Europe Funding V PLC
         EUR996 Million Fixed- And Floating-Rate Notes
                 and EUR4 Million Annuity Notes

                           Prelim.        Prelim.
            Class          rating         amount (Mil. EUR)
            -----          ------         ------
            A1 delayed     AAA              200
            draw notes
            A1             AAA              580
            A2             AAA               70
            A3-a           AAA               70
            A3-b           AAA               15
            B              AA                21
            C              A                 21
            D              BBB                9
            E1             BBB-               4
            E2             BB                 6
            F              NR                 4

            NR - Not rated.


INCO LTD: CVRD Obtains Canadian Approval for Inco Cash Offer
------------------------------------------------------------
Companhia Vale do Rio Doce has obtained approval under the
Investment Canada Act, in the form of a "net benefit to Canada"
ruling from the Canadian Minister of Industry, in connection
with its offer to acquire all of the outstanding common shares
of Inco Ltd.  CVRD has now received all regulatory approvals
necessary to complete its all-cash offer.

"We are delighted with this news, which confirms that the
Minister of Industry is satisfied that CVRD's acquisition of
Inco will be of net benefit to Canada," CVRD's CEO, Roger
Agnelli, said.  "We have always believed that this transaction
was good for Inco and for Canada.  In fact, we think it is
positive for everyone involved -- for CVRD, Inco shareholders,
employees, suppliers and the provinces and communities in Canada
where Inco carries on business.  We now look forward to CVRD
completing the offer."

      Creation of a Canadian-based Global Nickel Business

In order to demonstrate to the Minister of Industry that its
offer will be of net benefit to Canada, CVRD has made
commitments to the Minister to establish CVRD's global nickel
business (CVRD Inco) and based it in Toronto, Ontario, with
responsibility for the global nickel business of CVRD and a
mandate to expand its business as a global leader in the nickel
industry.

In furtherance of this mandate, CVRD will transfer management
responsibility for its interest in existing and future nickel
projects to CVRD Inco, including its interest in the Onca Puma
and Vermelho projects in Brazil.

CVRD Inco's global activities will be managed from its Toronto,
Ontario head office, which will continue to exercise head office
functions and activities with significant Canadian
participation, including a Canadian Chief Operating Officer and
a majority of its senior management.

There will be no layoffs at Canadian operating facilities for at
least three years, and in any event total employment at the
facilities will not fall below 85% of current levels.

       Acceleration of Voisey's Bay Development Project

CVRD fully supports the Voisey's Bay Project and endorses Inco's
obligations under the Voisey's Bay Development Agreement.  CVRD
will, following completion of the offer, approach the Government
of Newfoundland and Labrador to initiate discussions with
respect to CVRD's desire to accelerate the Voisey's Bay
development project, as described in the Voisey's Bay
Development Agreement, by a period of 12 to 18 months.  CVRD
believes the acceleration would deliver very substantial
economic benefits to Newfoundland and Labrador.

        Enhanced Investments in Inco's Long-term Future

To ensure the long-term, sustained success of CVRD Inco,
Canadian expenditures will be increased in a number of areas,
including exploration and research and development, for a three-
year period.  CVRD believes the investments will strengthen CVRD
Inco's position as a leader in the global nickel mining
business, and will contribute to ensuring the long-term
viability of CVRD Inco's operations in Sudbury, Ontario, and
Thompson, Manitoba.  CVRD Inco's participation in CVRD is
expected to provide long-term stability, growth and employment
in Canada.

          Social and Environmental Responsibility

CVRD is committed to the highest standards of social and
environmental responsibility.  These responsibilities are
important aspects of CVRD's overall business strategy,
permeating CVRD's entire operation and the whole of its
relationship with society.

Consistent with this approach, CVRD Inco will increase spending
on apprenticeship programs for First Nations, student employment
programs and employee recruitment, education, apprenticeship and
training programs in Canada for a three-year period.  CVRD Inco
will increase spending on environmental compliance programs in
Canada over that same period.

        Continuing Inco's Contributions to Communities

CVRD's success as a global company has been supported by close
relationships with the local communities where it carries on
business.  CVRD Inco will maintain its involvement and
commitment to the growth of Ontario's mining cluster, including
its membership in the Mineral Industry Cluster Council.

CVRD Inco will respect all agreements entered into with
provincial governments, local governments, labor unions and
aboriginal groups, including the Labrador Inuit Association and
the Innu Nation, in Canada.

It will also honor all commitments made with regard to the
funding of educational institutions, including commitments made
with respect to the Centre for Excellence in Mining Innovation
at Laurentian University in Sudbury, Ontario.

The expiry time of CVRD's offer to purchase all of the
outstanding common shares of Inco at a price of CDN$86 in cash
per share is midnight (Toronto time) on Monday, Oct. 23.

As previously reported in TCR-Europe on Oct. 9, CVRD disclosed
that it has obtained an unconditional clearance from the
European Commission under the EC Merger Regulation with respect
to its offer to acquire all of the outstanding common shares of
Inco.

                         About CVRD

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                         About Inco Ltd.

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) --
http://www.inco.com/-- produces nickel, which is used primarily
for manufacturing stainless steel and batteries.  Inco also
mines and processes copper, gold, cobalt, and platinum group
metals.  It makes nickel battery materials and nickel foams,
flakes, and powders for use in catalysts, electronics, and
paints.  Sulphuric acid and liquid sulphur dioxide are produced
as byproducts.  The company's primary mining and processing
operations are in Canada, Indonesia, and the U.K.

                          *     *     *

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.


INK WORKS: Brings In Liquidators from CBA
-----------------------------------------
Mark Grahame Tailby and Geoff Robbins of CBA were appointed
Joint Liquidators of The Ink Works Online Limited (formerly
Kreati Limited) on Oct. 10 for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         The Ink Works Online Limited
         1514 Pershore Road
         Stirchley
         Birmingham
         West Midlands B30 2NW
         United Kingdom
         Tel: 0121 459 6600
         Fax: 0121 459 6601


INTERIOR MOTIVES: Calls In Liquidators from PKF (U.K.) LLP
----------------------------------------------------------
Edward Terence Kerr and Ian James Gould of PKF (U.K.) LLP were
appointed Joint Liquidators of Interior Motives U.K. Limited on
Oct. 5 for the creditors' voluntary winding-up proceeding.

Headquartered in Grantham, United Kingdom, Interior Motives U.K.
Limited -- http://www.interiormotivesuk.co.uk/-- specializes in
the supply of a wide range of storage solutions from static and
dynamic pallet racking applications, parts storage, garment
hanging, multi tier storage and mezzanine floors through to
archive shelving, office furniture, materials handling equipment
and consumables.


LEISURETRONICS LTD.: Creditors' Meeting Slated for October 31
-------------------------------------------------------------
Creditors of Leisuretronics (U.K.) Ltd. (Company Number 5107712)
will meet at 11:00 a.m. on Oct. 31 at:

         Lines Henry
         Sixth Floor
         Grafton Tower
         Stamford New Road
         Altrincham
         Cheshire WA14 2QD
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at noon on Oct. 30 at:

         Neil Henry and Michael Simister
         Joint Administrators
         Lines Henry
         Sixth Floor
         Grafton Tower
         Stamford New Road
         Altrincham
         Cheshire WA14 2QD
         United Kingdom
         Tel: 0161 929 1905


LEVELMIST LIMITED: Taps Begbies Traynor as Administrators
---------------------------------------------------------
Sarah Bell and Steven Williams of Begbies Traynor were appointed
joint administrators of Levelmist Ltd. (Company Number 03838545)
on Oct. 4.

Headquartered in Manchester, Begbies Traynor --
http://www.begbies.com/-- assists companies, creditors,
financial institutions and individuals on all aspects of
financial restructuring and corporate recovery.

Headquartered in Cheshire, United Kingdom, Levelmist Ltd.
manages bars, restaurants and night clubs.


LEXI HOLDINGS: Hires KPMG to Administer Assets
----------------------------------------------
Richard Dixon Fleming and Brian Green of KPMG LLP were appointed
joint administrators from Lexi Holdings PLC (Company Number
04049814) on Oct. 5.

KPMG LLP-- http://www.kpmg.co.uk/-- in the U.K. is part of a
strong global network of member firms with 9,500 partners and
staff working in 22 offices across the U.K. providing audit, tax
and advisory services.

Lexi Holdings PLC can be reached at:

         1 St. Ann Street
         Manchester
         Lancashire M2 7LG
         United Kingdom
         Tel: 0161 839 9796


LOGIC FIRE: Taps BDO Stoy as Joint Administrators
-------------------------------------------------
Dermot Brendan Coakley and Andrew Beckingham of BDO Stoy Hayward
LLP were appointed joint administrators of Logic Fire and
Security Systems Ltd. (Company Number 03185714) on Oct. 5.

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

Headquartered in Fleet, United Kingdom, Logic Fire and Security
Systems Ltd. installs and maintains security alarms.


LONDON & ESSEX: Appoints Liquidators from Ashcrofts
---------------------------------------------------
Harjinder Johal and George Michael of Ashcrofts were appointed
Joint Liquidators of London & Essex Property Services Limited on
Oct. 11 for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         London & Essex Property Services Limited
         4 The Triangle
         Tanner Street
         Barking
         Essex IG118QA
         United Kingdom
         Tel: 020 8591 4000


LUCKY DRAGON: Names Liquidators from Wilson Field
-------------------------------------------------
Lisa Hogg and Claire Foster of Wilson Field were appointed Joint
Liquidators of Lucky Dragon (Leeds) Limited on Oct. 10 for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Lucky Dragon (Leeds) Limited
         Saxon Hawke House
         Templar Lane
         Leeds
         West Yorkshire LS2 7LN
         United Kingdom
         Tel: 0113 245 0520
         Fax: 0113 245 0520


M E ENGINEERING: Hires Vantis Redhead as Administrators
-------------------------------------------------------
J.S. French and G. Mummery of Vantis Redhead French Ltd. were
appointed joint administrators of M E Engineering Ltd. (Company
Number 03984516) on Oct. 4.

The administrators can be reached at:

         Vantis Redhead French Ltd.
         43-45 Butts Green Road
         Hornchurch
         Essex RM11 2JX
         United Kingdom
         Tel: 01708 458211
         Fax: 01708 442308
         E-mail: jeremy.french@vantisredheadfrench.co.uk

M E Engineering Ltd. can be reached at:

         Springfield House
         Springfield Road
         Grantham
         Lincolnshire NG31 7BG
         United Kingdom
         Tel: 014 7658 4300
         Fax: 014 7658 4301


MCCANN WASTE: Appoints Administrator from Bond Partners
-------------------------------------------------------
T. Papanicola of Bond Partners LLP was appointed administrator
of McCann Waste Management Ltd. (Company Number 03572048) on
Oct. 6.

The administrator can be reached at:

         T. Papanicola
         Bond Partners LLP
         Turnpike Gate House
         Alcester Heath, Alcester
         Warwickshire B49 5NJ
         United Kingdom
         Tel: 01789 766406

Headquartered in Wigan, United Kingdom, McCann Waste Management
Ltd. is engaged in skip hire and waste disposal.


MILOSTAR LIMITED: Names Administrators from Cresswall Associates
----------------------------------------------------------------
Gordon Craig and Daniel Paul Hennessy of Cresswall Associates
Ltd. were appointed joint administrators of Milostar Ltd.
(Company Number 02949187) on Sept. 25.

The administrators can be reached at:

         Cresswall Associates Ltd.
         West Lancashire Investment Centre
         Maple View
         Whitemoss Business Park
         Skelmersdale
         Lancashire WN8 9TG
         United Kingdom
         Tel: 01695 712683

Milostar Ltd. can be reached at:

         Cotton House
         Old Hall Street
         Liverpool
         Merseyside L3 9TX
         United Kingdom
         Tel: 0151 427 8800


NEEDLEY & FIELDS: Taps Liquidator from Daly & Co.
-------------------------------------------------
Philip Malachy Daly of Daly & Co. was appointed Liquidator of
Needley & Fields (Immingham) Limited on Oct. 5 for the
creditors' voluntary winding-up proceeding.

Headquartered in Immingham, United Kingdom, Needley & Fields
(Immingham) Limited provides road haulage services.


NEWGATE FUNDING: Fitch Puts Low-B Ratings to GBP12.4-Mln Notes
--------------------------------------------------------------
Fitch Ratings assigned expected ratings to Newgate Funding Plc's
Series 2006-3 GBP622.5 million equivalent mortgage-backed
medium-term notes due 2050:

   -- GBP-equivalent 208.3 million Class A1: AAA;
   -- GBP-equivalent 177.2 million Class A2: AAA;
   -- GBP-equivalent 162.5 million Class A3: AAA;
   -- GBP-equivalent 16.3 million Class M: AAA;
   -- GBP-equivalent 39.5 million Class B: AA;
   -- GBP-equivalent 24.7 million Class C: A;
   -- GBP-equivalent 15.6 million Class D: BBB;
   -- GBP-equivalent 5.9 million Class E: BB;
   -- GBP-equivalent 6.2 million Class T: BBB-; and
   -- GBP-equivalent 6.5 million Class Q: BB-.
   -- MERC N.A.: AAA.

The final ratings are contingent upon receipt of final documents
conforming to information already received.

This transaction is a securitization of sub-prime residential
mortgages originated and located in the U.K.  The expected
ratings are based on the quality of the collateral, available
credit enhancement, the underwriting criteria and the servicing
capabilities of Mortgages PLC, and the back up servicing of
capabilities of Homeloan Management Limited and the
transaction's sound legal structure.

Credit enhancement for the Class A notes totals 16.99% and will
be provided by the subordination of the Class M notes (2.51%),
the Class B notes (6.08%), the Class C notes (3.8%), the Class D
notes (2.40%) and the Class E notes (0.91%) and an initial and
target reserve fund of 1.3%.

The Class T notes, will receive interest equally and pro rata
with the Class D notes, and the Class T notes will receive
principal after any necessary payments into the reserve fund.
Interest on the Class Q notes will be paid after the
replenishment of the reserve fund, if needed, and before
principal on the Class T.  Principal on the Class Q will be paid
after the principal on the Class T has been repaid in full.

To determine appropriate credit enhancement levels, Fitch
analyzed the collateral using its U.K. Residential Mortgage
Default Model III.  The agency also modeled cash flows using the
results of the default model, with structural stresses including
various prepayment and interest rate scenarios.

The cash flow tests showed that each Class of notes could
withstand loan losses at a level corresponding to the related
stress scenario without incurring any principal loss or interest
shortfall and can retire principal by legal final maturity.


NEWGATE FUNDING: S&P Puts BB Ratings on GBP12.4-Mln Notes
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the GBP650 million (equivalent) mortgage-
backed floating-rate notes series 2006-3 to be issued by Newgate
Funding PLC, a special purpose entity.  At the same time,
Newgate Funding will issue GBP12.7 million excess spread rated
notes.

The ratings reflect the sound payment structure and cash flow
mechanics of the transaction, and a cash flow analysis to verify
that the notes will be repaid under stress test scenarios.

The class A1, A2, and A3 notes will be paid pari passu and will
be protected by a combination of the subordinate class M, B, C,
D, and E notes, the cash reserve fund, the discount reserve, and
excess spread.

The class M, B, C, and D notes will be protected by the
subordinate classes down to the class E notes, the cash reserve
fund, the discount reserve, and excess spread.  Credit support
will also be provided by the issuer's ability to meet interest
shortfalls on the rated notes through available amounts under
the liquidity facility.

The proceeds of the class T and Q notes, the DACs, residuals,
and MERCs, will be used to fund the initial cash reserve and the
discount reserve fund, and to meet the issuer's costs and
expenses in relation to the notes.

This is Mortgages PLC's third securitization of a portfolio of
mortgages using the Newgate Funding mortgage asset-backed MTN
program.

Standard & Poor's expects to rate the notes on a segregated
basis, that is, the rating on each series will be independent
from the rating on each previous and subsequent series.  This is
the third series to be issued.

                         Ratings List
                     Newgate Funding PLC
         GBP662.7 Million (Equivalent) Mortgage-Backed
      and Excess Spread Floating-Rate Notes Series 2006-3

                                            Prelim.
                             Prelim.        amount
              Class          rating         (Mil. GBP equiv.)
              -----          ------         -----------------
              A1             AAA            208.3
              A2             AAA            177.2
              A3             AAA            162.5
              M              AAA             16.3
              B              AA              39.5
              C              A               24.7
              D              BBB             15.6
              E              BB               5.9
              T (1)          BBB              6.2
              Q (1)          BB               6.5
              MERCs          AAA              N/A

   (1) The cash reserve fund and discount reserve fund will
       be funded at closing by using part of the
       issuance proceeds from the class T and Q notes,
       DACs, residuals, and MERCs.  The class T and Q notes
       will be repaid through excess spread.

       N/A-Not applicable.


ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005
------------------------------------------------------------
Odyssey Re Holdings Corp. has filed its Annual Report on Form
10-K/A for the year ended Dec. 31, 2005, with the U.S.
Securities and Exchange Commission, restating its consolidated
financial statements as of and for the years ended Dec. 31,
2005, 2004 and 2003, along with affected Selected Consolidated
Financial Data for 2002 and 2001 and quarterly financial
information for 2005 and 2004.

The restatement corrects the accounting treatment for
investments containing embedded derivatives and certain equity
method investments.  The corrections relating to these
investments, which include the impact of changes in other
comprehensive income, resulted in a cumulative increase in
shareholders' equity of US$16.0 million, to US$1.64 billion, as
of Dec. 31, 2005.  The aggregate net effect of the restatement
for each period is to increase 2005 net loss by US$12.2 million,
increase 2004 net income by US$6.9 million, increase 2003 net
income by US$12.4 million, increase 2002 net income by US$11.2
million and increase 2001 net loss by US$3.4 million.  The
financial information contained in the Odyssey Re's Form 10-K/A
for the year ended Dec. 31, 2005, reflects the impact of this
restatement.  The effect of this restatement was reported in the
company's Quarterly Report on Form 10-Q for the second quarter
of 2006.

In connection with the restatement, management has determined
that Odyssey Re did not maintain effective controls, review
procedures and communications related to investment accounting
to ensure conformity with generally accepted accounting
principles, which constitutes a material weakness.  To address
the material weakness, management will implement a remediation
plan that will supplement the existing controls of the company.

Odyssey Re Holdings Corp. is an underwriter of property and
casualty treaty and facultative reinsurance, as well as
specialty insurance.  OdysseyRe operates through its
subsidiaries, Odyssey America Reinsurance Corporation, Hudson
Insurance Company, Hudson Specialty Insurance Company,
Clearwater Insurance Company, Newline Underwriting Management
Limited and Newline Insurance Company Limited.  The Company
underwrites through offices in the United States, London, Paris,
Singapore, Toronto and Mexico City.  Odyssey Re Holdings Corp.
is listed on the New York Stock Exchange under the symbol ORH.

                        *    *    *

Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2
from Moody's and BB from Fitch.  The Company's senior unsecured
debt and long-term issuer default ratings also carry BB+ from
Fitch.  Moody's placed its rating on Oct. 12, 2005 with a stable
outlook.  Fitch placed its ratings on March 23, 2006.


PROCOM MANAGEMENT: Hires Liquidators from Gibson Hewitt
-------------------------------------------------------
Lynn Gibson and Robert David Hewitt of Gibson Hewitt were
appointed Joint Liquidators of Procom Management Limited on
Oct. 10 for the creditors' voluntary winding-up procedure.

The company can be reached at:

         Procom Management Limited
         37 Highfield Road
         Dartford
         Kent DA1 2JS
         United Kingdom
         Tel: 01322 280 400


PRS HAYWARDS: Appoints Liquidator from B & C Associates
-------------------------------------------------------
Jeffrey Mark Brenner of B & C Associates was appointed
Liquidator of PRS (Haywards Heath) Limited on Oct. 10 for the
creditors' voluntary winding-up procedure.

Headquartered in Haywards Heath, United Kingdom, PRS (Haywards
Heath) Limited is a recruitment agency.


REFCO INC: Ad Hoc Equity Panel Objects to Disclosure Statement
--------------------------------------------------------------
The Ad Hoc Committee of Equity Security Holders of Refco, Inc.,
asks the United States Bankruptcy Court for the Southern
District of New York to deny approval of the Debtors' Disclosure
Statement with respect to their First Amended Plan of
Reorganization because it describes a Plan that:

   (i) effectively consolidates parent level entities with other
       debt-laden, subsidiary estates without factual or legal
       basis;

  (ii) provides the parent equity holders with less than the
       would receive in a Chapter 7 liquidation; and

(iii) incorporates other improper provisions.

Paul N. Silverstein, Esq., at Andrews Kurth LLP, in New York,
tells Judge Drain that the Amended Disclosure Statement portrays
the Plan confirmation as consisting of nothing more than the
approval of "a series of interdependent settlements and
compromises" negotiated by certain "Settlement Negotiation
Parties," pursuant to Rule 9019 of the Federal Rules of
Bankruptcy Procedure.

The portrayal is incorrect, and the Disclosure Statement needs
to be clarified, the Ad Hoc Equity Committee asserts.

The Ad Hoc Equity Committee insists that the rights of non-
parties to the "Settlements" should be preserved and must be
addressed at confirmation under Sections 1129(a) and (b) of the
Bankruptcy Code.

Mr. Silverstein argues that the Debtors and the Official
Committee of Unsecured Creditors have the burden of proof by
preponderance of evidence to show that the applicable
requirements of Section 1129 are satisfied as to each disputed
term of the Plan.  The inquiry under Rule 9019, by contrast, is
largely whether an arm's-length compromise on a dispute falls
within the lowest point of range of reasonable outcomes.  Rule
9019 requires a lesser showing virtually by definition.  Thus,
he says, the Disclosure Statement language should be corrected.

Mr. Silverstein notes that the disclosure of the "Settlement" of
the mystery "Substantive Consolidation Dispute" is also woefully
lacking, even by Rule 9019 standards.  He points out that the
Plan Proponents do not describe:

   (i) the particular factors that tend to support or negate
       substantive consolidation under governing Second Circuit
       precedent;

  (ii) the particular constituencies that have opposed or likely
       will oppose substantive consolidation;

(iii) the positions of each constituency;

  (iv) the relative litigation risks or probabilities;

   (v) the relative benefits or harms of substantive
       consolidation; and

  (vi) how substantive consolidation will affect each particular
       Debtor constituency.

Furthermore, the Ad Hoc Equity Committee complains that while
the Plan purports to include a schedule of retained causes of
action, no list of claims has been filed with the Court, and
that schedule is not referenced in the Plan or Disclosure
Statement.

Mr. Silverstein states that failure to disclose the potential
defendants may preclude a litigation trustee from asserting the
claims post-confirmation.  While the Plan contains a general
reservation clause, it may be insufficient to preserve the
causes of action.

The Ad Hoc Equity Committee also wants the Disclosure Statement
revised to include a meaningful description of potential
defendants against whom the Debtors may hold claims.

In addition, Mr. Silverstein contends that the Disclosure
Statement does not contain any information regarding the Plan
administrator's or the litigation trustee's selection,
qualifications, and compensation.

The Disclosure Statement contains no Chapter 7 liquidation
analysis, Mr. Silverstein further notes.

The statement that the Ad Hoc Equity Committee members acquired
their interests at "distressed prices" is irrelevant and largely
false, since those holders purchased shares on open market
trades, Mr. Silverstein argues.

"If [that] statement is made as to the Ad Hoc [Equity] Committee
members, the Disclosure Statement should state that the RGL
notes are held by many 'distressed' investors who purchased
those securities after the bankruptcy filing for as little as 23
cents on the dollar," Mr. Silverstein asserts.

The Ad Hoc Equity Committee also asserts that the Disclosure
Statement should disclose:

   -- the terms of a Litigation Trust Agreement, which will
      control and materially affect ultimate distributions to be
      received by stakeholders;

   -- the terms of Private Actions Trust as contemplated by a
      Global Term Sheet;

   -- claims and potential conflicts between the Private Actions
      Trust and the Litigation Trust, including the potential
      for limited recoveries against insolvent defendants,
      tension or inconsistencies in claims; and

   -- the directors and officers to be released, along with any
      potential estate or third party claims against those
      parties.

The Ad Hoc Equity Committee proposes that the boiler-plate
language in the Disclosure Statement about "forced sale"
discounts and erosion in value in a Chapter 7 liquidation should
be excised because the Debtors are being liquidated, and their
assets have largely already been sold.

Moreover, the Ad Hoc Equity Committee proposes that the Debtors
should describe alternatives to the Plan consummation, including
comparative de-consolidated results for different estates and
classes.  The Plan release should also be clarified to state
that the release of certain lenders does not release those
parties in any other capacity, including their capacities as
underwriters.

                        About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported $16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on Nov.
25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is a
regulated commodity futures company that has businesses in the
United States, London, Asia and Canada.  Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).


REJUVENATE SPA: N. A. Bennett Leads Liquidation Procedure
---------------------------------------------------------
N. A. Bennett of Leonard Curtis was appointed Liquidator of
Rejuvenate Spa Limited on Oct. 10 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Rejuvenate Spa Limited
         Dunster
         Wood Lane
         Beech Hill
         Reading
         Berkshire RG7 2BE
         United Kingdom
         Tel: 0118 979 4450


RITE PEOPLE: Brings In Administrators from Vantis
-------------------------------------------------
Colin Ian Vickers and Julie Anne Kinnison of Vantis Numerica
were appointed joint administrators of Rite People Ltd. (Company
Number 04745366) on Oct. 6.

Headquartered in West Sussex, Vantis PLC --
http://www.vantisplc.com/-- provides accounting, business and
tax advisory services in the United Kingdom.

Rite People Ltd. can be reached at:

         71 London Road
         Sevenoaks
         Kent TN13 1AX
         United Kingdom
         Tel: 01621 841 600
         Fax: 01621 841 511


ROGER PAPWORTH: Claims Registration Ends Feb. 4, 2007
-----------------------------------------------------
Creditors of Roger Papworth (Butchers) Limited have until
Feb. 4, 2007, to send their names and addresses, and particulars
of their debts or claims, and the names and addresses of their
Solicitors (if any) to appointed Joint Liquidators
Robert Michael Young and Peter Blair at:

         Begbies Traynor
         The Old Barn
         Caverswall Park
         Caverswall Lane
         Stoke on Trent ST3 6HP
         United Kingdom

The company can be reached at:

         Roger Papworth (Butchers) Limited
         O'tonel
         St. Georges Lane
         Riseholme
         Lincoln
         Lincolnshire LN2 2LQ
         United Kingdom
         Tel: 01522 575 292


S. P. S. SYSTEMS: Names Liquidator from Wilkins Kennedy
-------------------------------------------------------
Keith Aleric Stevens of Wilkins Kennedy was appointed Liquidator
of S. P. S. Systems Limited on Oct. 5 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         S. P. S. Systems Limited
         28d High Street
         Hampton Hill
         Hampton
         Middlesex TW12 1PD
         Tel: 020 8977 4868


SATURN WINDOW: Brings in Peter O'Hara to Liquidate Assets
---------------------------------------------------------
Peter O'Hara of O'Hara & Co. was appointed Liquidator of
Saturn Window Systems Limited on Oct. 6 for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         Saturn Window Systems Limited
         Edlington Lane
         Edlington
         Doncaster
         South Yorkshire DN121BS
         United Kingdom
         Tel: 01709 860 046


SPACE OUT: Joint Liquidators Take Over Operations
-------------------------------------------------
Richard Eaglesfield Floyd and William Jeremy Jonathan Knight of
Richard Floyd & Co. were appointed Joint Liquidators of
Space Out Limited on Oct. 5 for the creditors' voluntary
winding-up proceeding.

Headquartered in Haslemere, United Kingdom, Space Out Limited
supplies and builds garden offices.


SPIRIT AEROSYSTEMS: 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, the rating agency assigned its Ba3 Corporate Family
Rating and B1 Probability-of-Default Rating for Spirit
Aerosystems Inc. to B1.

Additionally, Moody's affirmed its probability-of-default
ratings and assigned loss-given-default ratings on these loans:

                                          Projected
                        POD      LGD      Loss-Given
   Debt Issue           Rating   Rating   Default
   ----------           ------  ------    -------
   Sr. Secured
   Revolving Credit
   Facility due 2010    Ba3     LGD3       31%

   Sr. Secured Term
   Loan B due 2011      Ba3     LGD3       31%

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 Wichita, Kansas, Spirit AeroSystems, Inc.
-- http://www.spiritaero.com/-- with facilities in Wichita,
Tulsa and McAlester, Oklahoma, and Prestwick, Scotland, designs
and manufactures fuselages, struts, nacelles, thrust reversers
and other complex components for Boeing and Airbus.


TRANSITIONS ASSOCIATES: Hires Liquidator from Parkin S. Booth
-------------------------------------------------------------
Paul James Fleming of Parkin S. Booth & Co. was appointed
Liquidator of Transitions Associates Limited on Oct. 10 for the
creditors' voluntary winding-up proceeding.

Headquartered in Morden, United Kingdom, Transitions Associates
Limited is a special needs school.


TRINITY METHODIST: Gary Stones Leads Liquidation Procedure
----------------------------------------------------------
Gary Stones of Stones & Co was appointed Liquidator of Trinity
Methodist (Penarth) Developments Limited on Oct. 6 for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Trinity Methodist (Penarth) Developments Limited
         16 Archer Road
         Penarth
         South Glamorgan CF643HW
         United Kingdom
         Tel: 029 2070 7312


TRM CORP: S&P Withdraws Corp. Credit & Sr. Secured Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its CCC/Watch Dev/--
corporate credit and senior secured ratings for Portland, Ore.-
based TRM Corp. at the company's request.

"The company has refinanced its US$135 million and EUR15 million
credit facility with unrated bank debt," said Standard & Poor's
credit analyst Lucy Patricola.


UNITED BISCUITS: Fitch Withdraws B-/RR4 Ratings on Senior Notes
---------------------------------------------------------------
Fitch Ratings has withdrawn the B-/RR4 ratings on United
Biscuits Finance PLC's 10.625% euro-denominated and 10.75%
sterling-denominated senior notes, which were on Rating Watch
Positive.

This follows the early redemption of these instruments with the
net proceeds from the sale of UB's Southern European business
completed in early September.

These ratings remain on RWP:

   -- Regentrealm Limited Issuer Default rating: B- on RWP;
   -- Regentrealm Limited Sr. secured debt: BB-/RR1 on RWP; and
   -- United Biscuits Finance PLC IDR: B- on RWP.

Fitch expects to resolve the RWP in the next few weeks, pending
management's feedback regarding the future business and
financial profile of the group.

As highlighted by Fitch in its statement dated July 13, 2006,
the net de-leveraging effect following the completion of the
senior notes early redemption and the disposal of the group's
Southern European biscuits division, could result in an upgrade
of at least two notches for the IDR of Regentrealm Limited and
United Biscuits Finance PLC.


YORKSHIRE PRINT: Taps Joint Administrators from KPMG
----------------------------------------------------
Howard Smith and Richard Dixon Fleming of KPMG LLP were
appointed joint administrators of Yorkshire Print Solutions Ltd.
(Company Number 05490442) on Oct. 9.

KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a
strong global network of member firms with 9,500 partners and
staff working in 22 offices across the U.K. providing audit, tax
and advisory services.

Yorkshire Print Solutions Ltd. can be reached at:

         28 Albert Street
         Huddersfield HD1 3PU
         United Kingdom
         Tel: 0113 231 3332


* DLA Piper Introduces Two Managing Partners in U.K. Team
---------------------------------------------------------
DLA Piper Rudnick Gray Cary disclosed that it will make changes
to its U.K. management team following an extensive review of
senior management teams across Europe and Asia.

Under the proposed new structure, to be implemented from
Jan. 1. 2007, two regional managing partner roles will be
introduced in the U.K., one to cover London and one to cover the
regional offices.

Two new office managing partners, Simon Woolley and Stephen Sly,
have also been appointed to lead the Manchester and Sheffield
offices, respectively.  Simon will take over from Roy Beckett,
who will continue to be an active partner in the real estate
team.  Stephen Sly will take over from Paul Firth, who will
become Regional Managing Partner for the U.K. regions.

The U.K. management team effective Jan. 1 2007, will comprise
of:

U.K. Regional Managing Partners

    * Catherine Usher (London)
    * Paul Firth (U.K. Regions)

U.K. Office Managing Partners

    * Chris Rawstron (Birmingham)
    * Neil McLean (Leeds)
    * Philip Rooney (Liverpool)
    * Catherine Usher (London)
    * Simon Woolley (Manchester)
    * Bruce Westbrook (Scotland)
    * Stephen Sly (Sheffield)

The U.K. management changes are part of a comprehensive review
which will also see DLA Piper's international practice groups
across Europe and Asia streamlined into eight vertical streams
and the introduction of sector focused groups.

The introduction of U.K. RMPs will help us leverage the strength
of our U.K. offices, nationally and internationally." Andrew
Darwin, U.K. Managing Director said.  "The new members of the
team and those taking on new roles have considerable strengths
and I am confident they will make a significant contribution to
the success of the UK practice.  I want to take this opportunity
to thank Roy Beckett, who will continue to be a valuable member
of the real estate practice, for the enormous contribution that
he has made developing the Manchester office and our
capabilities in the North West."


* European High-Yield Issuances Hike Default Risk, Fitch Says
-------------------------------------------------------------
Fitch Ratings disclosed that year-to-date European high-yield
issuance of EUR30.7 billion has eclipsed the EUR26 billion
recorded during the whole of 2005 and establishes a new record
for annual issuance with two-and-half months remaining in 2006.

Supporting market growth are signs of greater accommodation and
flexibility from high-yield investors in meeting the demands of
corporate and financial sponsors, particularly in terms of
accepting greater call risk in floating-rate structures and more
flexible covenants.

Large leveraged corporate acquisitions and large private equity-
sponsored buy-outs have driven over two-thirds of high-yield
issuance this year compared to only one-third in 2005, when the
market was more dependent on corporate refinancing activity and
cable issuers.

"An increase in acquisition-related debt incurred by already
leveraged issuers has resulted in higher risk in the European
high-yield market," says Matthias Volkmer, Associate Director in
Fitch's Leveraged Finance team.

In Q306 the proportion of CCC+ and below instruments increased
by EUR2 billion over H106 to EUR12.9 billion or 9.5% of
outstandings.  This shift was driven by a number of low-rated
issues from Treofan, VNU, TDS and Impress Holdings as well as
downgraded volumes relating to issues from Dura, Schefenacker
and Damovo, among others.

Despite the seasonal slowdown in Q3, strong M&A activity
generated a number of jumbo transactions for the European high-
yield market: in July, German forklifts and industrial gases
manufacturer Linde issued EUR1.06 billion equivalent of hybrid
bonds to partly fund the takeover of its British peer BOC; in
July U.K. cable operator NTL issued EUR550 million equivalent of
notes to complete the financing of its merger with Telewest and
the acquisition of Virgin Mobile.

In August, Netherlands-based publishing and media company VNU
issued US$1.67 billion equivalent in bonds to partly fund its
LBO; and in September, Netherlands-based metal packaging
manufacturer Impress Holdings issued EUR753 million equivalent
of senior secured floating-rate notes and EUR250 million of
senior subordinated notes to fund the group's recent
acquisitions in the U.S. and Europe.

Issuance in Q306 of EUR5.2 billion (EUR24.6bn YTD Q306) was
followed in early October by a record EUR4.5 billion multi-
tranche combination of senior secured floating-rate notes and
subordinated fixed-rate notes by NXP to fund the LBO of Philips
Electronics's semiconductor unit; a EUR500 million refinancing
by Softbank; and a EUR1.1 billion high-yield refinancing from
specialty chemicals producer Rhodia, which boosted total
issuance to EUR30.7 billion in the year to date.

With the remaining pipeline of approximately EUR1.22 billion
that is expected to materialize in Q406, including EUR725
million by TNT Logistics, EUR345 million by Carson Wagonlit and
EUR150 million by Algeco/Elliot, total European high-yield
issuance could total EUR31.9 billion by year-end, up from the
EUR26 billion recorded in 2005.  This would also surpass the
EUR29.3 billion in 2004 and EUR23.9 billion in 2003 and could
constitute a record year for European high-yield.

Despite strong y-o-y growth in high-yield issuance, private
mezzanine instruments continue to exert substitution pressure on
bond volumes.  Q306 saw the largest ever mezzanine tranche of
EUR1 billion in support of the Dutch cable merger between
Multikabel, Casema and Kabelcom, an amount which until recently
was the preserve of the high-yield market.

While the number of high-yield issuers remained similar with 56
issuers in the first nine months of 2006, the increase in
average volume per issuer to EUR432 million in Q306 compared to
EUR416 million in Q206, EUR325 million at YE05 and EUR262
million at YE04 reflects the ongoing shift towards jumbo-size
high-yield issuance, as smaller transactions continue to be
financed by combinations of stretched senior and jumbo mezzanine
debt.  Taking the October issuance into account, the average
volume per issuer in the year to date would have been EUR520
million.

The trailing-12-month default rate remains stable at 0.3% based
on defaulted amounts of EUR513 million, including Dana
Corporation and Global Automotive Logistics, as no further
default occurred in Q306.  However, the current rate could
double to 0.6% if troubled issuers Damovo and Dura were to
default in Q406.

Last week U.K. telecoms provider Damovo announced that its
Italian business was experiencing problems with short-term
impact on its working capital and that it was considering a
deferral of its interest payment due on October 30 on its EUR358
million notes due 2012.

On the same day the U.S. automotive components supplier Dura
informed its lenders that its debtor-in-possession financing
requirements had increased due to lower-than-anticipated
operating cash flow and announced on 16 October that it would
not make an interest payment due on its US$400 million notes due
in 2012.

Following the potential default after 30-day-grace-period, this
could result in a cross default on Dura's outstanding EUR100
million notes whose next coupon payment is due on November 1.
Bonds for Schefenacker and Focus trade at a deep discount, and
advisors have reportedly been hired to support balance sheet
restructurings, which could potentially add to the default
statistics by end-2006 or 2007.

                           *********

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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