TCREUR_Public/061024.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Tuesday, October 24, 2006, Vol. 7, No. 211

                            Headlines

A U S T R I A

BAUMEISTER REINHOLD: Vienna Court Orders Closing of Business
EXTRA MARKETING: Creditors to Recover 1.84% of Claims
GAMA TEXTILMASCHINEN: Property Manager Places Property for Sale
NETDISK.CC: Property Manager Declares Insufficient Assets
VAMA LLC: Steyr Court Orders Business Shutdown


B E L G I U M

AEP INDUSTRIES: Moody's Assigns LGD4 Rating on 7.875% Sr. Notes
METHANEX CORP.: Moody's Assigns Loss-Given-Default Ratings
TEKNI-PLEX INC: Moody's Assigns Loss-Given-Default Ratings


F I N L A N D

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


F R A N C E

ACTUANT CORPORATION: Moody's Assigns Loss-Given-Default Rating
CLIENTLOGIC CORP: Inks US$450-Mln Merger Pact with Sitel Corp.
CLIENTLOGIC CORP: SITEL Offer Cues S&P to Put Rating on Watch
CNET NETWORKS: Fails to Get Needed Consents to Amend Indenture
CNET NETWORKS: S&P Junks Credit Rating Due to Indenture Default

KB HOME: Disputes Notice of Default for 6-1/4% Senior Notes
QUEBECOR WORLD: Closing French Roto-Gravure Facility
REMY COINTREAU: Achieves 1.3% Sales Growth in 2006 First Half
SAKS INC: Moody's Assigns Loss-Given-Default Ratings
VISKASE COMPANIES: Moody's Assigns LGD3 Rating on 11.5% Notes


G E R M A N Y

A V B VERWOHLT: Claims Registration Ends October 25
ALLGEMEINE HYPOTHEKENBANK: Moody's Cuts Debt and Deposit Ratings
AMMERSEE GEBAUDETECHNIK: Claims Registration Ends October 29
AQUATREND GMBH: Claims Registration Ends October 28
COPY TEC: Claims Registration Ends October 27

EDDIE BAUER: Moody's Assigns Loss-Given-Default Rating
FINN-HAUS: Claims Registration Ends October 26
GEBR. SPALL: Claims Registration Ends October 25
GFC GRUNDSTUECKSVERWALTUNGS: Creditors' Meeting Set for Oct. 26
HWVZ HANDWERKER: Claims Registration Ends October 27

INVISTA B.V.: Moody's Assigns Loss-Given-Default Ratings
KOMUNIK VERLAG: Claims Registration Ends October 27
NATURA 2000: Claims Registration Ends October 27
OPEN TEXT: Plans 15% Workforce Cut on Hummingbird Integration
OPEN TEXT: Mulls Streamlining of Employees and Facilities

PIXEL-FORM: Claims Registration Ends October 27
TREUGARD RAUMAUSSTATTUNGS: Claims Registration Ends October 26
WACH- UND KONTROLLDIENST: Claims Registration Ends October 27

* Fitch Updates Q-Insurer Financial Strength Ratings in Germany


G R E E C E

HOUGHTON INT'L: Moody's Assigns Loss-Given-Default Ratings
OLYMPIC AIRLINES: Greece to Face EUR10,000 Daily Penalty


I T A L Y

ALITALIA SPA: Updates Industrial Plan & Reviews Alliance Options
ALITALIA SPA: Names Giovanni Sabatini to Board of Directors
DRESSER INC: Moody's Rates US$935-Mln Credit Facilities at B1
DRESSER INC: S&P Rates US$935 Million Credit Facilities at B
LYONDELL CHEMICAL: Moody's Assigns Loss-Given-Default Ratings


K A Z A K H S T A N

AVTOTRANSSBYT LLP: Creditors Must File Claims by Nov. 17
BUSINESS TECHNOLOGIIES: Creditors Must File Claims by Nov. 17
DIAS-T LLP: Claims Registration Ends Nov. 17
FREEDOMLAND KAZAKHSTAN: Claims Registration Ends Nov. 17
JULDYZ LLP: Proof of Claim Deadline Slated for Nov. 17

NEFTESTROYENERGOSERVICE LLP: Court Opens Bankruptcy Procedure
REMSTROYBYT LLP: Creditors' Claims Due Nov. 17
TECHPROM-TRADE LLP: Pavlodar Court Opens Bankruptcy Proceedings
VICTORIYA LLP: Creditors' Claims Due Nov. 17


K Y R G Y Z S T A N

MYASOKONSERVNYI KOMBINAT: Public Auction Scheduled for Oct. 27
OPTIKA LLC: Insolvency Manager Sets Oct. 27 Asset Auction


L U X E M B O U R G

ECONOMY LUXEMBOURG: Fitch Assigns BB Rating to Sub. Notes Issue
EVRAZ GROUP: Conflict of Interest Prompts Bruno Bolfo to Resign
EVRAZ GROUP: Strong Performance Spurs Moody's to Change Outlook
NOVELIS INC: Expects Improved Financial Performance in 2007


M A L T A

LE MERIDIEN: Mediterranean Hotel Up for Sale


N E T H E R L A N D S

ASHLAND INC: Moody's Assigns Loss-Given-Default Ratings
CORUS GROUP: Companhia Siderurgica Nacional Eyes Counteroffer
CORUS GROUP: Fitch Changes Rating Watch to Negative on Tata Deal
FIREARMS TRAINING: Selling Outstanding Shares to Meggitt-USA


P O L A N D

BRE BANK: Fitch Affirms Individual Rating at D
GETIN BANK: Fitch Assigns Issuer Default Rating at BB


P O R T U G A L

COMPANHIA SIDERURGICA: Eyes Counteroffer for Corus Group


R U S S I A

ARDATOVSKIY OJSC: Court Names S. Salnik as Insolvency Manager
ARZAMASSKAYA CONFECTIONARY: Names V. Veselov to Manage Assets
ASPHALT CONCRETE: Penza Bankruptcy Hearing Slated for Oct. 26
BUILDER CJSC: Court Names A. Ptashnikov as Insolvency Manager
CHASTINSKIY CHEESE: Court Names I. Korovnikov to Manage Assets

DALI CAPITAL: Fitch Puts B+/RR4 Ratings on RUR2 Billion Issue
EVRAZ GROUP: Conflict of Interest Prompts Bruno Bolfo to Resign
EVRAZ GROUP: Strong Performance Spurs Moody's to Change Outlook
IZHEVSKIY FACTORY: Court Names V. Nagovitsyn to Manage Assets
KHOSHEVSKAYA NIVA: Court Names I. Zolin as Insolvency Manager

KOVROVETS: Court Names V. Pronyushkina as Insolvency Manager
LUKOIL OAO: Unveils Strategic Development Plan for 2007-2016
NEVERKINSKIY BUTTER: Court Names L. Bychkova to Manage Assets
NOVOLIKEEVSKOYE LLC: Bankruptcy Hearing Slated for Jan. 16
PSB FINANCE: Fitch Places B+/RR4 Ratings to US$125-Mln Issue

RYB-KHOZ MOZHAYSKIY: Bankruptcy Hearing Slated for Dec. 21
SEL-KHOZ-TEKHNIKA: Court Names A. Baskakov as Insolvency Manager
SHIGONY-SEL-KHOZ-TRANS: Court Starts Bankruptcy Supervision
STILLWATER MINING: Moody's Assigns Loss-Given-Default Rating
TRANS-TOUR-SERVICE: Court Names V. Veselov as Insolvency Manager


S P A I N

TDA IBERCAJA: Moody's Rates EUR7-Mln Series E Notes at Ba1


S W I T Z E R L A N D

GRAFTECH INT'L: Moody's Assigns Loss-Given-Default Ratings
HCA INC: Shareholders' Special Meeting Set for November 16
HCA INC: US$33-Bln Merger Deal Cues S&P's B+ Corp. Debt Rating
REYNOLDS & REYNOLDS: S&P Affirms Loan and Recovery Ratings
UNIVERSAL COMPRESSION: Moody's Rates New Credit Facility at Ba1


T U R K E Y

TURK EKONOMI: Fitch Assigns Low-B Ratings on Sub. Notes Issue
PROFILO TELRA: Fitch Assigns Foreign Currency IDR at B


U K R A I N E

ALLIANCE LLC: Court Names Pavlo Duplika as Insolvency Manager
BK UKRSPECMONTAZH: Odessa Court Starts Bankruptcy Supervision
MUSTANG LLC: Court Names Oleksandr Shevich as Insolvency Manager
OKEAN LLC: Herson Court Starts Bankruptcy Supervision
REGUL LLC: Kyiv Court Starts Bankruptcy Supervision Procedure

SVITANOK LLC: Harkiv Court Starts Bankruptcy Supervision
VASILKIV BREAD: Court Starts Bankruptcy Supervision Procedure


U N I T E D   K I N G D O M

ACTUANT CORPORATION: Moody's Assigns Loss-Given-Default Rating
ADVERT ENGINE: Claims Filing Period Ends Nov. 6
ALLEN POWER: Appoints Fanshawe Lofts to Administer Assets
AQUARIUS INFORMATION: Liquidator Sets Nov. 16 Claims Bar Date
BAA PLC: Hochtief AG Eyes Majority Stake in Budapest Airport

BUSINESS MORTGAGE: Fitch Rates GBP8.7-Mln Class C Notes at BB
CAIRNSERVE LTD.: Taps BDO Stoy as Joint Administrators
CARDEW COMMUNICATIONS: Names J. Harvey Madden Liquidator
CLIFF NICHOLLS: Names Administrator from Haines Watts
CNET NETWORKS: Fails to Get Needed Consents to Amend Indenture

CNET NETWORKS: S&P Junks Credit Rating Due to Indenture Default
COLLINS & AIKMAN: GM Balks at Consolidation of Tooling Plea
COLLINS & AIKMAN: Resolves Tooling Dispute with Huron Mold
CONSTAR INT'L: Moody's Assigns Loss-Given-Default Ratings
COREL CORP: Earns US$5.5 Million in Third Quarter 2006

CORUS GROUP: Companhia Siderurgica Nacional Eyes Counteroffer
CORUS GROUP: Fitch Changes Rating Watch to Negative on Tata Deal
DALI CAPITAL: Fitch Puts B+/RR4 Ratings on RUR2 Billion Issue
DANCERS WORLD: Creditors Confirms Voluntary Liquidation
DEETFREE LIMITED: Creditors Confirm Liquidators' Appointment

EMI GROUP: Expects 3% Revenue Decline in 2006 First Half
EMI GROUP: Moody's Cuts Rating on Weak Debt Protection Measures
ENTERPRISE INNS: Moody's May Upgrade Rating on Strong Finances
FIREARMS TRAINING: Selling Outstanding Shares to Meggitt-USA
FORD MOTOR: Restating Results for Accounting Under SFAS 133

FORD MOTOR: Incurs US$5.8 Billion Net Loss in 2006 Third Quarter
FORD MOTOR: FMCC Earns US$262 Million in 2006 Third Quarter
FORD MOTOR: Taps Delphi to Build Hybrid Powertrain Systems
FTI CONSULTING: Buys Brower Kriz & G3 Consulting for US$14 Mln
FURNITURE EXPRESS: Brings In PwC as Joint Administrators

GENERAL MOTORS: GMAC Gets EC Clearance for Cerberus Purchase
GENERAL MOTORS: Prepares for Possible Proxy Battle vs. Kerkorian
GENERAL STEELS: Appoints Administrators from Gerald Edelaman
HCA INC: Shareholders' Special Meeting Set for November 16
HCA INC: US$33-Bln Merger Deal Cues S&P's B+ Corp. Debt Rating

HEMRO ASSOCIATES: Appoints G.D. Sharma as Administrator
HERGOLD AND COMPANY: Claims Registration Ends Dec. 23
HUGHES LIMITED: Brings In PKF to Administer Assets
INFO-TECH SYSTEMS: Taps Liquidator from B & C Associates
INGREDIENT MANAGEMENT: Appoints Liquidator from Findlay James

INSTRUMENT TECHNOLOGY: Hires Menzies to Administer Assets
INVESTA PLC: FA Simms Selling Structured Product Provider
KOPPERS HOLDING: Moody's Assigns LGD6 Rating on Sr. Unsec. Notes
N.P.W. DUCTWORK: Appoints Administrators from Rothman Pantall
NATIONWIDE SECURITY: Creditors' Claims Due Nov. 13

NEIL GRINNALL: Dunbar Bank Appoints Moore Stephens as Receivers
NEWMAN SUPPORT: Brings In XL Business to Administer Assets
NOVELIS INC: Expects Improved Financial Performance in 2007
OVERSEAS SHIPHOLDING: Gets Early Termination of Waiting Period
PROFILO TELRA: Fitch Assigns Foreign Currency IDR at B

PURVES & PURVES: Creditors Confirm Liquidator's Appointment
QUEBECOR WORLD: Closing French Roto-Gravure Facility
RADNOR HOLDINGS: Blocks Panel's Move to Extend Bidding Process
RBA RESEARCH: Appoints Begbies Traynor as Administrators
ROY FIRMAN: HSBC Bank Taps PwC as Administrative Receivers

ROY FIRMAN: PwC Selling Garden Furniture Distributor
SEA CONTAINERS: First Meeting of Creditors Slated for Nov. 21
SEA CONTAINERS: Trustee Sets Organizational Meeting for Oct. 26
SEA CONTAINERS: Reed Conner Ceases to be Major Shareholder
SOLO CUP: Ends Review of Accounting Issues & Restates Financials

SOLO CUP: Moody's Reviewing Ratings & May Downgrade
SOLO CUP: Incurs US$299 Million Net Loss in 2006 Second Quarter
SOLO CUP: S&P Cuts Corp. Credit Rating to CCC+ & Removes Watch
TIMKEN CO: To Exit U.K. Seamless Steel Tube Manufacturing
VICFORGE AIR: Brings In Rothman Pantall as Joint Administrators

WHE EUROPE: Claims Filing Period Ends Jan. 9, 2007
WORDMAP LIMITED: Creditors' Meeting Slated for October 31

* Large Companies with Insolvent Balance Sheets

                            *********

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


BAUMEISTER REINHOLD: Vienna Court Orders Closing of Business
------------------------------------------------------------
The Trade Court of Vienna entered an order Sept. 8 closing the
business of LLC Baumeister Reinhold Weiss (FN 82053t).  Court-
appointed property manager Florian Gehmacher recommended the
business closure after determining that the continuing
operations would reduce the value of the estate.

The property manager and his representative can be reached at:

         Dr. Florian Gehmacher
         c/o Dr. Matthias Schmidt
         Dr. Karl Lueger-Ring 12
         1010 Vienna, Austria
         Tel: 533 16 95
         Fax: 535 56 86
         E-mail: gehmacher@preslmayr.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 7 (Bankr. Case No. 5 S 97/06h).  Matthias Schmidt
represents Dr. Gehmacher in the bankruptcy proceedings


EXTRA MARKETING: Creditors to Recover 1.84% of Claims
-----------------------------------------------------
The Land Court of Wiener Neustadt approved Sept. 8 the final
decision on allocation of Gernot Faber, the court-appointed
property manager of LLC Extra Marketing (FN 66102i).

Under the property manager's project by final allocation,
creditors will recover 1.84% of their claims.

Headquartered in Traiskirchen, Austria, the Debtor declared
bankruptcy on March 9, 2005 (Bankr. Case No. 11 S 23/05a).

The property manager can be reached at:

         Mag. Gernot Faber
         Neunkirchner Road 34
         2700 Wiener Neustadt, Austria
         Tel: 02622/82118
         Fax: 02622/82118-6
         E-mail: kanzlei@ra-faber.at


GAMA TEXTILMASCHINEN: Property Manager Places Property for Sale
---------------------------------------------------------------
Mag. Werner Dax, the court-appointed property manager for LLC
GAMA Textilmaschinen (FN 262231i), declared Sept. 8 that the
Debtor's property is up for sale or rent.

Headquartered in Lafnitztal, Austria, the Debtor declared
bankruptcy on July 14 (Bankr. Case No. 26 S 67/06i).  On
July 19, the Land Court of Eisenstadt ordered the closing of the
Debtor's business.

The property manager can be reached at:

         Mag. Werner Dax
         Esterhazyplatz 5
         7000 Eisenstadt, Austria
         Tel: 05/90105500
         Fax: 05/90105510
         E-mail: guessing@rapartner.at


NETDISK.CC: Property Manager Declares Insufficient Assets
---------------------------------------------------------
Dr. Richard Bickel, the court-appointed property manager for LLC
Netdisk.cc (FN 230549v), declared Sept. 8 that the Debtor's
property is insufficient to cover creditors' claim.

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

Headquartered in Goetzis, Austria, the Debtor declared
bankruptcy on May 10 (Bankr. Case No. 13 S 21/06b).  Michael
Brandauer represents Dr. Bickel in the bankruptcy proceedings.

The property manager and his representative can be reached at:

         Dr. Richard Bickel
         c/o Dr. Michael Brandauer
         Marktplatz 11
         6800 Feldkirch, Austria
         Tel: 05522/71900
         Fax: 05522/71900-4
         E-mail: kanzlei@bmplegal.at


VAMA LLC: Steyr Court Orders Business Shutdown
----------------------------------------------
The Land Court of Steyr entered an order Sept. 8 shutting down
the business of LLC Vama (FN 123632m).  Court-appointed property
manager Hubert Just recommended the business shutdown after
determining that the continuing operations would reduce the
value of the estate.

The property manager can be reached at:

         Dr. Hubert Just
         Hauptplatz 7
         4560 Kirchdorf/Krems, Austria
         Tel: 07582/62 0 74
         E-mail: ra.just.kirchdorf@utanet.at

Headquartered in Molln, Austria, the Debtor declared bankruptcy
on Aug. 17 (Bankr. Case No. 14 S 46/06x).  Julius Bitter
represents Dr. Just in the bankruptcy proceedings.

The property manager's representative can be reached at:

         Dr. Julius Bitter
         Schmideggstrasse 5
         4560 Kirchdorf/Krems, Austria
         Tel: 07582/60040
         Fax: 07582600404
         E-mail: ra.bitter@aon.at


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


AEP INDUSTRIES: Moody's Assigns LGD4 Rating on 7.875% Sr. Notes
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the non-paper Packaging sector, the rating
agency confirmed its Ba3 Corporate Family Rating for
AEP Industries Inc., and its B1 rating on the company's
US$175 million 7.875% senior notes due 2015.  Additionally,
Moody's assigned an LGD4 rating to those bonds, suggesting
noteholders will experience a 69% loss in the event of a
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 our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 South Hackensack, New Jersey, AEP Industries
Inc. -- http://www.aepinc.com/-- is engaged in the production,
manufacture and distribution of plastic packaging films.  The
Company manufactures and markets a line of polyethylene,
polyvinyl chloride (PVC) and polypropylene flexible packaging
products, with consumer, industrial and agricultural
applications.  In Europe, AEP maintains its Flexibles division
in Belgium and The Netherlands.


METHANEX CORP.: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its Ba1 Corporate Family Rating for
Methanex Corp.

Moody's also affirmed its probability-of-default ratings and
assigned loss-given-default ratings to these two bond issues:

                                          Projected
                        POD      LGD      Loss-Given
   Debt Issue           Rating   Rating   Default
   ----------           -------  -------  ----------
   US$200 million
   8.75%
   Sr Unsec Notes
   due 2012             Ba1      LGD4     56%

   US$150 million
   6.00%
   Sr Unsec Notes
   due 2015             Ba1      LGD4     56%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Vancouver, British Columbia, Methanex Corp. --
http://www.methanex.com-- is a producer and marketer of
methanol.  The marketing and logistics offices in Waterloo,
Belgium, and Tees, United Kingdom, oversee the management and
administration of all Methanex's sales and distribution
operations in Europe.


TEKNI-PLEX 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 for the non-paper Packaging sector, the rating
agency confirmed its Caa1 Corporate Family Rating for
Tekni-Plex Inc.

Moody's also 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
   ----------           -------  -------  ------   ----------
   US$150 million
   10.87% Sr. Sec.
   Notes due 2012       B3       B1       LGD2     15%

   US$275 million
   8-3/4% Sr. Sec.
   Notes due 2013       Caa2     Caa1     LGD3     45%

   US$275 million
   12-3/4% Sr. Sub.
   Notes due 2010       Ca       Caa3     LGD5     85%

   US$40 million
   12-3/4% Sr. Sub.
   Notes due 2010       Ca       Caa3     LGD5     85%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Somerville, New Jersey, Tekni-Plex Inc. --
http://www.tekni-plex.com/-- is a global, diversified
manufacturer of packaging, products, and materials for the
healthcare, consumer, and food packaging industries.  The
company maintains its European headquarters in Belgium.


=============
F I N L A N D
=============


HERCULES 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 for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its Ba2 Corporate Family Rating for
Hercules Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$150 million
   Gtd Sr Sec
   Revolving
   Credit Facility
   due 10/2010          Ba1      Baa3      LGD2    18%

   US$391 million
   Gtd Sr Sec
   Term Loan B
   due 10/2010          Ba1      Baa3      LGD2    18%

   US$100 million
   6.60% Gtd
   Sr Sec Notes
   due 2027             Ba1      Baa3      LGD2    18%

   US$16 million
   11.125%
   Gtd Sr Unsec Notes
   due 2007             Ba2      Ba2       LGD3    40%

   US$250 million
   6.75%
   Gtd Sr Sub Notes
   due 2029             Ba3      Ba3       LGD4    61%

   US$3 million
   8.00% Conv Sub
   Debentures
   due 2010             B1       B1        LGD5    89%

   US$217 million
   6.50% Jr Sub
   Deferrable Int.
   Debentures
   due 2029             B1       B1        LGD5    89%

   Shelf - Sr Unsec     Ba2      Ba2       LGD3    40%

   Shelf - Sub          B1       Ba3       LGD4    61%

   Shelf - Jr Sub       B1       B1        LGD5    89%

   Shelf - Pref Cum     B1       B1        LGD6    97%

   Shelf - Pref Non Cum B1       B1        LGD6    97%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Wilmington, Delaware, Hercules Inc.  --
http://www.herc.com/-- manufactures and markets specialty
chemicals and related services for a range of business, consumer
and industrial applications.  The Company's principal products
include chemicals used by the paper industry, water-soluble
polymers, polypropylene fibers and polypropylene/polyethylene
bicomponent fibers, and specialty resins.  It operates on a
global scale, with significant operations in North America,
Europe, Asia and Latin America.  In Europe, Hercules maintains
operations in Switzerland, The Netherlands, France, Spain
Germany, and Finland.


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


ACTUANT CORPORATION: Moody's Assigns Loss-Given-Default Rating
--------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
affirmed its Ba2 Corporate Family Rating for Actuant Corp.

Additionally, Moody's held its Ba2 ratings on the company's
US$250 million Senior Unsecured Revolver Due 2009, and US$250
million Senior Term Loan Due 2009.  Moody's assigned those
debentures an LGD3 rating suggesting lenders will experience a
43% loss in the event of a 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 Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial
company with operations in more than 30 countries, including
Austria, Hungary, Poland, Italy, Spain, the Netherlands, France,
Russia, Turkey, Germany, and the United Kingdom.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from US$482 million to over
US$1 billion and its market capitalization from US$113 million
to over US$1.5 billion.  The company employs a workforce of
approximately 6,000 worldwide.  Actuant Corporation trades on
the NYSE under the symbol ATU.


CLIENTLOGIC CORP: Inks US$450-Mln Merger Pact with Sitel Corp.
--------------------------------------------------------------
ClientLogic Corp. will acquire rival Sitel Corp. for US$450
million in cash.  The parties entered into a definitive merger
agreement under which a newly formed subsidiary of ClientLogic
will merge with SITEL and pay US$4.05 per share in cash for all
of the outstanding common stock of SITEL.

The Board of Directors of each company has unanimously approved
the transaction.  The transaction is expected to be completed in
the first quarter of 2007 and is subject to customary closing
conditions, including approval of SITEL's shareholders and
regulatory clearances.

SITEL's Board of Directors has recommended to SITEL's
shareholders that they vote in favor of the transaction.
Approximately 19.9% of the outstanding common stock of SITEL is
subject to voting agreements, which require such shares to be
voted in favor of the merger.

SITEL has agreed to pay a termination fee to ClientLogic should
the transaction not close due to certain circumstances.
ClientLogic will fund the transaction with the proceeds of a
committed loan facility.  The transaction values SITEL at
approximately US$450 million.

Commenting on the pending transaction, Jim Lynch, Chairman and
CEO of SITEL Corporation, said, "Our board and our financial
advisor Citigroup reviewed numerous opportunities while
searching for strategic alternatives that would create the
greatest value for our shareholders.  Based on this review, it
was clear to SITEL's board that the offer from ClientLogic
represents the best alternative to create significant
shareholder value."

The US$4.05 to be paid in cash in the merger for each SITEL
share represents a 33% premium to the volume-weighted average
SITEL share price for the 30-trading day period ending Oct. 11.
The combined entity will continue to be named ClientLogic
Corporation, and will have approximately 65,000 employees across
28 countries.  Dave Garner will be Chief Executive Officer of
the combined entity.

"Growing market demand for bigger, more complex customer-care
BPO solutions requires larger service providers with increased
geographic presence, capacity and service capabilities", said
Dave Garner, President and CEO of ClientLogic.  "Our missionwill
be to deliver the BPO industry's highest-quality services, while
providing our clients with the strategic insight, scale and
diversity of offerings to guarantee success."

The combination of ClientLogic and SITEL will create a company
with revenue of over US$1.7 billion, and one of the most diverse
client bases, service offerings, and geographic footprint in the
industry.  The combined entity will offer clients world-class
options for onshore, nearshore and offshore customer care
solutions, in over 145 facilities throughout the Americas, EMEA
and Asia Pacific.

Client benefits from the combined entity include:

    * proven experience that will deliver better results

      Clients of both companies will benefit from the in-depth
      knowledge acquired through a combined corporate heritage
      of over thirty years.  The merged team will have deep
      industry experience and expertise across many different
      vertical markets, providing clients with strategic insight
      into their business and how to best achieve measurable
      results.

    * expanded capacity, geographic footprint and
      communications network will offer greater flexibility
      and choice

      With over 145 facilities in 28 countries and unparalleled
      routing capability, the combined company will provide even
      more Right-Shore options to best serve its clients' in-
      country and global service needs.

    * broadest solutions offering in the customer care
      BPO industry, providing measurable value to clients

      The combined company will offer the broadest array of
      customer care service including customer service,
      technical support, sales and saves, outbound acquisition,
      collections, professional services, technology solutions
      and transaction processing.  This more diversified service
      base will allow the combined entity to offer greater value
      to current and potential clients.

Citigroup Global Capital Markets is acting as financial advisor
to SITEL and has provided a fairness opinion in connection with
the transaction.  Davis Polk & Wardwell and Faegre & Benson are
acting as legal counsel to SITEL in connection with the
transaction.  Goldman, Sachs & Co. is acting as financial
advisor to ClientLogic.  Mayer, Brown, Rowe & Maw LLP and
Oppenheimer Wolff & Donnelly LLP are acting as legal counsel to
ClientLogic in connection with the transaction.

                        About SITEL

SITEL Corp. -- http://www.sitel.com/-- is a leading global
provider of outsourced customer support services.  SITEL designs
and improves customer contact models across its clients'
customer acquisition, retention, and development cycles.  SITEL
manages approximately two million customer interactions per day
via the telephone, e-mail, Internet, and traditional mail.
SITEL has over 42,000 employees in 101 global contact centers
located in 26 countries.

                     About ClientLogic

ClientLogic Corp. (NYSE:SWW) -- http://www.clientlogic.com/--
is a leading global business process outsourcing (BPO) provider
in the customer care and back office processing industries.
ClientLogic's global footprint spans 49 facilities in 13
countries throughout North America, Europe, Africa, Central
America and Asia.  In Europe, the company maintains operations
in Austria, France, Germany, Ireland, Netherlands, and the
United Kingdom.  Its clients include Sony Corp., DIRECTV, ABN
AMRO, TiVo, British Telecom (BT), National Geographic
Television, LTU, Neuf Telecom and United Online (Juno/NetZero).
A portfolio company of Canadian diversified company Onex
Corporation, ClientLogic is among the top five global customer
care providers, managing more than half a million customer
interactions each day of the year.

                         *     *     *

In February 2005, Moody's Investors Service assigned a B3 rating
to ClientLogic Corporation's US$122 million first lien bank
credit facilities and a Caa2 rating to its US$35 million second
lien bank credit facilities -- Term Loan C.  This is the first
time that Moody's has rated the debt of the Company.  The rating
outlook is stable.


CLIENTLOGIC CORP: SITEL Offer Cues S&P to Put Rating on Watch
-------------------------------------------------------------
Standard & Poor's Rating Services placed its 'B' corporate
credit rating on Nashville, Tenn.-based ClientLogic Corp. on
CreditWatch with positive implications.  The CreditWatch listing
follows ClientLogic's announcement that it has made an offer to
acquire Omaha, Neb.-based SITEL Corp. for approximately
US$450 million in cash, which has been accepted by SITEL's board
of directors and recommended to the shareholders.  The
transaction price includes the assumption of SITEL's debt.

Standard & Poor's estimates the transaction would result in pro
forma financial leverage in the high 4x to low 5x, up from about
3.7x currently, and believe the transaction will provide the
combined company with increased scale, with revenue estimated to
reach US$1.7 billion on a pro forma basis.  It also should
provide operational efficiencies, a more diversified customer
base, and significant cost savings, which could bring leverage
below the pro forma level.

On a standalone basis, ClientLogic provides outsourced customer-
care and fulfillment services through its 42 customer contact
centers and five distribution warehouses located across the
globe.  Revenues, which reached about US$586 million in 2005,
were concentrated on several large companies: The company's top
five clients generated 44% of 2005 revenues.  Standard & Poor's
believes the acquisition of SITEL -- also involved in outsourced
customer support services -- would triple the revenue, further
diversify the client base, expand service offerings, and
increase the geographic footprint for the combined company.

In completing the CreditWatch review, the rating agency will
meet with management from ClientLogic to better understand both
the integration risks and opportunities and future growth
strategies to determine the rating.


CNET NETWORKS: Fails to Get Needed Consents to Amend Indenture
--------------------------------------------------------------
CNET Networks Inc. disclosed the results of its solicitation of
consents of holders of any and all of its US$125,000,000
aggregate principal amount of outstanding 0.75% Convertible
Senior Notes due 2024 pursuant to its consent solicitation for
the securities, which expired on Oct. 18, 2006.

CNET Networks did not receive a sufficient number of consents
from holders to satisfy the 70% requisite consent threshold.
Therefore, CNET Networks will not accept any of the consents
delivered by the holders of the notes, and the indenture related
to the notes will not be amended.

                     Form 10-Q Filing Delay

As reported in the TCR-Europe on Oct. 17, the Company will not
be in a position to file its Quarterly Report on Form 10-Q for
the quarter ended September 30, 2006 on a timely basis, pending
the completion of its financial restatements related to its
independent investigation of stock option granting practices and
of the requisite audit procedures by the Company's independent
registered public accountants.  Consequently, CNET Networks is
not in a position to provide actual results or guidance
regarding operating expense, operating income, net income or
earnings per share.

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

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

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


CNET NETWORKS: S&P Junks Credit Rating Due to Indenture Default
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on CNET
Networks Inc., including lowering the corporate credit rating to
'CCC+' from 'B', and placed the ratings on CreditWatch with
developing implications.

The action was based on the company receiving a notice of
acceleration from the trustee for the holders of US$125 million
in 0.75% senior convertible notes due 2024 and not having a
sufficient number of consents to waive default from indenture
violation.

Total debt outstanding as of June 30, 2006, was US$143.3
million.

San Francisco-based CNET connects buyers and suppliers of
information technology and electronic products through
advertiser-supported online news and product reviews.  More
recently, the company has branched out to automotive and other
categories.

The trustee is accelerating the maturity on the convertible
notes because CNET failed to file its quarterly report for the
period ended June 30, 2006, with the SEC.  CNET was unable to
file because a special committee formed by its board of
directors is reviewing stock option practices.  Certain stock
options granted between 1998 and 2001 differ from the recorded
measurement dates.  As a result of the filing delinquency, the
company violated provisions of the indenture that require the
report to be filed with the trustee 15 days after the report is
submitted to the SEC.

If the company repays the accelerated maturity of US$125
million, S&P may raise the rating back to the 'B' category.  On
the other hand, if the company does not meet the accelerated
maturity, S&P will likely lower the ratings to 'D'.


KB HOME: Disputes Notice of Default for 6-1/4% Senior Notes
-----------------------------------------------------------
KB Home received a letter on Oct. 18, 2006, purporting to be a
notice of default under the indenture related to its
6-1/4% Senior Notes due 2015.  The letter asserts that KB Home
is in default under the indenture because of the delay in filing
its Quarterly Report on Form 10-Q for the quarter ended Aug. 31,
2006 with the Securities and Exchange Commission.

KB Home has notified the senders of this letter, and the trustee
under the Indenture, that the letter does not satisfy the
indenture requirements for a notice of default, in part because
the letter fails to take into account the 15 day period
following the Securities and Exchange Commission filing date as
specified in the reporting covenant at issue.

In the event the above-mentioned letter is not invalid, or if a
subsequent valid notice of default for the delayed 10-Q filing
is delivered to KB Home under the indenture for any series of
its senior notes, and KB Home fails to cure the default within
the 60 days after notice is given, the default could become an
"event of default" under the indenture, allowing the Trustee or
the holders of at least 25% in aggregate outstanding principal
amount of such senior notes to accelerate the maturity of the
series of senior notes.

Headquartered in Los Angeles, California, KB Home (NYSE: KBH) --
http://www.kbhome.com/-- is a homebuilder with domestic
operating divisions in some of the fastest-growing regions and
states: West Coast-California; Southwest-Arizona, Nevada and New
Mexico; Central-Colorado, Illinois, Indiana and Texas; and
Southeast-Florida, Georgia, North Carolina and South Carolina.
Kaufman & Broad S.A., the Company's publicly traded French
subsidiary, a homebuilding company in France.  It also operates
KB Home Mortgage Company, a full-service mortgage company for
the convenience of its buyers.

                          *     *     *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Fitch Ratings affirmed and revised the Rating Outlook to Stable
from Positive these ratings for KB Home's Issuer Default Rating
'BB+', Senior unsecured debt and revolving credit facility 'BB+'
and Senior subordinated debt 'BB-'.

As reported in the Troubled Company Reporter on July 14, 2006,
Moody's Investors Service affirmed all of the ratings of KB
Home, including its Corporate Family Rating of Ba1, senior debt
rating of Ba1, and senior subordinated debt rating of Ba2.
Moody's said the rating outlook is revised to stable, from
positive.


QUEBECOR WORLD: Closing French Roto-Gravure Facility
----------------------------------------------------
Quebecor World Inc. intends to close its roto-gravure facility
in Lille, France as part of its ongoing restructuring efforts.

The Lille facility will be phased out during the coming months
and is expected to close at the end of the second quarter of
2007.  The closure will affect approximately 230 employee
positions.  Some of the workforce will be offered opportunities
to transfer to the Charleroi, Belgium facility.

Taking into account earlier restructuring initiatives and the
investment in the latest wide-web gravure technology in
Charleroi, the Company estimates the impact to its European
gravure capacity is essentially neutral.

Quebecor World Inc. -- http://www.quebecorworld.com/-- provides
print solutions to publishers, retailers, catalogers and other
businesses with marketing and advertising activities.  Quebecor
World has approximately 29,000 employees working in more than
120 printing and related facilities in the United States,
Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia,
Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland
and the United Kingdom.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 2, 2006,
Standard & Poor's Ratings Services lowered its ratings on
commercial printer Quebecor World Inc., including its long-term
corporate credit rating to 'B+' from 'BB-', and placed the
ratings on CreditWatch with negative implications.

As reported in the Troubled Company Reporter on Aug. 18, 2006,
Moody's Investors Service placed the Ba3 Corporate Family
Rating, Ba3 Senior Unsecured rating and B2 Senior Subordinated
ratings of Quebecor World Inc.'s subsidiaries under review for
possible downgrade.

As reported in the Troubled Company Reporter on Aug. 11, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of Quebecor World Inc. and related entities to BB from
BB (high) and downgraded the Cumulative Redeemable Preferred
Shares to Pfd-4 from Pfd-4 (high).  DBRS said the trends remain
negative.


REMY COINTREAU: Achieves 1.3% Sales Growth in 2006 First Half
-------------------------------------------------------------
At Sept. 30, 2006, Remy Cointreau reported consolidated turnover
of EUR354.4 million for the first six months of the 2006/07
financial year.  This represented a year-on-year organic growth
of 1.3%.  The Group's own brands grew by 4.8%, due to the
dynamic performance of the Champagne and Cognac divisions.

                             Cognac

Remy Martin consolidated its position in the superior quality
segment, particularly in the top-of-the-range cognacs, which
showed strong growth in Europe (Russia), Asia (China) and the
U.S.

                       Liqueurs & Spirits

Divisional sales increased in all geographic areas, with
accelerated growth in the U.S. for Cointreau, in Europe for
St. Remy and in France for Passoa in particular.

                            Champagne

The excellent performance by the Champagne division was
primarily due to Piper-Heidsieck.  The brand experienced a 13.8%
increase in sales, the higher volumes combining with a firm
price increase policy and an improved product mix.  The U.S. and
Japanese markets confirmed their growth potential.

                          Partner brands

The division recorded a growth in sales of Scotch whisky and
Californian wines in the U.S.  The decline in overall sales was
due to discontinuing a number of distribution contracts after
the end of the previous financial year.

Performance in the first six months of the financial year was
driven by the quality of the brands and the Group's value
strategy.  It is fully in line with the profitability growth
target Remy Cointreau set itself for the 2006/07 financial year.

Headquartered in Cognac, France, Remy Cointreau --
http://www.remycointreau.com/-- offers a range of premium wine
and spirit brands, known and recognized throughout the world.
These brands include, among others, Remy Martin, Cointreau,
Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper-
Heidsieck.

                          *     *     *

Remy Cointreau's senior unsecured debt carries a Ba2 rating from
Moody's Investors Service since 2003.  Standard & Poor's rated
the Company's issuer credit at BB- in 2004.


SAKS 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 for the the US and Canadian Retail sector, the
rating agency confirmed its B2 Corporate Family Rating for Saks
Incorporated.

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
   ----------           -------  -------  ------   ----------
   2% Convertible
   Senior Notes
   due 2024             B2       B3       LGD4     69%

   7% Senior
   Unsecured Notes
   due 2013             B2       B3       LGD4     69%

   7.375% Senior
   Unsecured Notes
   due 2019             B2       B3       LGD4     69%

   7.5 Senior
   Unsecured Notes
   due 2010             B2       B3       LGD4     69%

   8.25% Senior
   Unsecured Notes
   due 2008             B2       B3       LGD4     69%

   9.875% Senior
   Unsecured Notes
   due 2011             B2       B3       LGD4     69%

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 Birmingham, Alabama, Saks Incorporated (NYSE: SKS) --
http://www.saksincorporated.com/-- operates Saks Fifth Avenue
Enterprises, which consists of 55 Saks Fifth Avenue stores, 50
Saks Off 5th stores, and Saks.com.  The Company also operates 39
Parisian stores and 57 Club Libby Lu specialty stores.


VISKASE COMPANIES: Moody's Assigns LGD3 Rating on 11.5% Notes
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the non-paper Packaging sector, the rating
agency confirmed its B2 Corporate Family Rating for Viskase
Companies Inc., and upgraded its B2 rating on the company's
US$90 million 11.5% senior secured notes due 2011 to B1.
Additionally, Moody's assigned an LGD3 rating to those bonds,
suggesting noteholders will experience a 32% loss in the event
of a 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 our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Darien, Illinois, Viskase Companies Inc. --
http://www.viskase.com/-- is a global producer of non-edible
cellulosic and plastic casings, and specialty plastic bags used
to prepare and package processed meat products, and provides
value-added support services relating to these products. It
operates eight manufacturing facilities and eight distribution
centers in North America, Europe and South America.
In Europe, the company has manufacturing locations in France and
sales offices in Germany, Italy and Poland.


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


A V B VERWOHLT: Claims Registration Ends October 25
---------------------------------------------------
Creditors of A V B Verwohlt Baumaschinen GmbH i.L have until
Oct. 25 to register their claims with court-appointed
provisional administrator Ingo Thurm.

Creditors and other interested parties are encouraged to attend
the meeting at 2:10 p.m. on Nov. 14 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 Hildesheim
         Hall 13
         Main Building
         Emperor Route 60
         31134 Hildesheim, 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 Hildesheim opened bankruptcy proceedings
against A V B Verwohlt Baumaschinen GmbH i.L on Sept. 8.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         A V B Verwohlt Baumaschinen GmbH i.L
         Gutenbergstr. 6
         31157 Sarstedt, Germany

         Attn: Alois Verwohlt, Liquidator
         Holzweg 4
         30880 Laatzen, Germany

The administrator can be contacted at:

         Ingo Thurm
         Aegidientorplatz 2B
         30159 Hanover, Germany
         Tel: 0511/475577-0
         Fax: 0511/475577-98
         E-mail: kanzlei@rae-bax.de


ALLGEMEINE HYPOTHEKENBANK: Moody's Cuts Debt and Deposit Ratings
----------------------------------------------------------------
Moody's Investors Service downgraded the long-term debt and bank
deposit ratings of Allgemeine Hypothekenbank Rheinboden to Ba3
from Baa3 and the short-term debt and deposit ratings to Not
Prime from Prime-3.

The rating for AHBR's subordinated debt (lower tier 2) was
downgraded to B1 from Ba1.  The outlook on all long-term ratings
is negative.  The rating for AHBR's profit participation rights
(Genussscheine) was confirmed at Ca with a stable outlook.
These actions conclude the rating review initiated on Dec. 23,
2005.  The E financial strength rating was affirmed and the
outlook was changed to positive.

The downgrade of the long-term debt and deposit ratings to Ba3
and the subordinated debt rating (lower tier 2) to B1 reflects
Moody's concern that AHBR now benefits from a weaker level of
support than in the past.  Furthermore, in Moody's view, the
likelihood of medium- to long-term support from majority owner
Lone Star Funds may ultimately reflect the relative future
success of AHBR's still unproven business model and the
potential investment exit strategies available.  The long-term
ratings continue to incorporate AHBR's status as a regulated
banking institution in Germany, but the bank's systemic
importance is declining as the bank downsizes and this is a main
contributing factor to the negative outlook.

The short-term debt and deposit ratings were downgraded to Not-
Prime from Prime-3 to reflect the non-investment grade status of
AHBR's senior obligations.  The Ca rating for AHBR's
Genussscheine continues to reflect the highly speculative nature
of these securities due to their documented participation in
past and future balance sheet losses at AHBR and the resultant
write-down to principal suffered by investors.

In affirming the E FSR and assigning a positive outlook, Moody's
highlighted the progress made by AHBR towards preparing the
institution for its future as a specialized institution serving
the commercial real estate and capital markets.  The bank has
already sold major portions of its historical business
portfolios and Moody's expects that the bank would be successful
in pursuing plans to sell its sizeable portfolio of low-risk and
low-margin public finance business over the coming months.

Moody's views AHBR's management as strong and experienced and
therefore able to successfully implement their new strategy.
Nonetheless, the FSR also reflects the competitive environment
for real estate finance in Germany, AHBR's still untested
business model, as well as legacy issues such as the bank's
still sizeable portfolio of non-performing assets.

Allgemeine Hypothekenbank Rheinboden is headquartered in
Frankfurt, Germany and is majority owned by U.S.-based Lone Star
Funds.


AMMERSEE GEBAUDETECHNIK: Claims Registration Ends October 29
------------------------------------------------------------
Creditors of Ammersee Gebaudetechnik GmbH have until Oct. 29 to
register their claims with court-appointed provisional
administrator Nikolaus Gaede.

Creditors and other interested parties are encouraged to attend
the meeting at 8:40 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 Augsburg
         Law Courts
         Meeting Room 162
         1 Stick
         Alten Einlass 1
         86150 Augsburg, Germany

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

The District Court of Augsburg opened bankruptcy proceedings
against Ammersee Gebaudetechnik GmbH on Sept. 5.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Ammersee Gebaudetechnik GmbH
         Attn: Uwe Scharrelmann, Manager
         Lindenstr. 1a
         86949 Windach, Germany

The administrator can be contacted at:

         Nikolaus Gaede
         Buerkleinstr. 10
         80538 Munich, Germany


AQUATREND GMBH: Claims Registration Ends October 28
---------------------------------------------------
Creditors of AQUATREND GmbH have until Oct. 28 to register their
claims with court-appointed provisional administrator Georg
Kreplin.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Nov. 17 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Duesseldorf
         Area A 341
         3rd Floor
         Muehlenstrasse 34
         40213 Duesseldorf, 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 Duesseldorf opened bankruptcy proceedings
against AQUATREND GmbH on Sept. 19.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         AQUATREND GmbH
         Attn: Zvonko Sabljak, Manager
         Flachshof 1
         41462 Neuss, Germany

The administrator can be contacted at:

         Georg Kreplin
         Breite Strasse 27
         40213 Duesseldorf, Germany


COPY TEC: Claims Registration Ends October 27
---------------------------------------------
Creditors of Copy Tec GmbH have until Oct. 27 to register their
claims with court-appointed provisional administrator Matthias
Riemer.

Creditors and other interested parties are encouraged to attend
the meeting at 8:00 a.m. on Nov. 17 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Landshut
         Meeting Room 9/I
         Insolvency Court
         Maximilianstrasse 22-24
         Landshut, 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 Landshut opened bankruptcy proceedings
against Copy Tec GmbH on Sept. 4.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Copy Tec GmbH
         Neustadt 528
         84028 Landshut, Germany

The administrator can be contacted at:

         Matthias Riemer
         Bayerwaldstrasse 57
         84030 Landshut, Germany
         Tel: 0871/4307593
         Fax: 0871/4307595


EDDIE BAUER: Moody's Assigns Loss-Given-Default Rating
------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its B2 Corporate Family Rating for Eddie Bauer,
Inc. and its B2 rating on the Company's US$300 million term
loan.  In addition, Moody's assigned an LGD4 rating to notes,
suggesting noteholders will experience a 55% loss in the event
of a 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 Redmond, Washington, Eddie Bauer Holdings, Inc.
-- http://www.eddiebauer.com/-- is a specialty retailer that
sells casual sportswear and accessories for the "modern outdoor
lifestyle."  Established in 1920 in Seattle, Eddie Bauer
believes the Eddie Bauer brand is a nationally recognized brand
that stands for high quality, innovation, style, and customer
service.  Eddie Bauer products are available at approximately
375 stores throughout the United States and Canada, through
catalog sales and online at http://www.eddiebaueroutlet.com/The
Company also participates in joint venture partnerships in Japan
and Germany and has licensing agreements across a variety of
product categories.  Eddie Bauer employs approximately 10,000
part-time and full-time associates in the United States and
Canada.


FINN-HAUS: Claims Registration Ends October 26
----------------------------------------------
Creditors of Finn-Haus Beteiligungs- und Verwaltungsgesellschaft
mbH have until Oct. 26 to register their claims with court-
appointed provisional administrator Hans-Achim Ernst.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Nov. 16 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         4 Floor
         Court Route 6
         33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings
against Finn-Haus Beteiligungs- und Verwaltungsgesellschaft mbH
on Sept. 6.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Finn-Haus Beteiligungs- und Verwaltungsgesellschaft mbH
         Attn: Marlies Trunk, Manager
         Kokturkanal 18
         32549 Bad Oeynhausen, Germany

The administrator can be contacted at:

         Hans-Achim Ernst
         Bunsenstr. 3
         32052 Herford, Germany


GEBR. SPALL: Claims Registration Ends October 25
------------------------------------------------
Creditors of Gebr. Spall GmbH u. Co. KG have until Oct. 25 to
register their claims with court-appointed provisional
administrator Jochen Lang.

Creditors and other interested parties are encouraged to attend
the meeting at 11:20 a.m. on Nov. 22 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 Aschaffenburg
         Meeting Room 5.103
         1st Upper Floor
         Schlossplatz 5
         63739 Aschaffenburg, 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 Aschaffenburg opened bankruptcy
proceedings against Gebr. Spall GmbH u. Co. KG on Sept. 8.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Gebr. Spall GmbH u. Co. KG
         Viktoriaheim 3
         63906 Erlenbach, Germany

The administrator can be contacted at:

         Jochen Lang
         Fruehlingstr. 11
         63743 Aschaffenburg, Germany
         Tel: 06021/909100
         Fax: 06021/4497831


GFC GRUNDSTUECKSVERWALTUNGS: Creditors' Meeting Set for Oct. 26
---------------------------------------------------------------
The court-appointed provisional administrator GFC
Grundstuecksverwaltungs GmbH, Christoph Rosenmueller, will
present his first report on the Company's insolvency proceedings
at a creditors' meeting at 9:30 a.m. on Oct. 26.

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

         The District Court of Charlottenburg
         II. Stock Hall 218
         District Court Place 1
         14057 Berlin, Germany

The Court will also verify the claims set out in the
administrator's report at 9:40 a.m. on Jan. 11, 2007, at the
same venue.

Creditors have until Nov. 30 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against GFC Grundstuecksverwaltungs GmbH on Sept. 5.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         GFC Grundstuecksverwaltungs GmbH
         Keithstr.26
         10787 Berlin, Germany

The administrator can be reached at:

         Christoph Rosenmueller
         Berliner Str. 117
         10713 Berlin, Germany


HWVZ HANDWERKER: Claims Registration Ends October 27
----------------------------------------------------
Creditors of HWVZ Handwerker-Verrechnungszentrum Ag have until
Oct. 27 to register their claims with court-appointed
provisional administrator Mechthild Bruche.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Nuernberg
         Meeting Room 152/I
         Flaschenhofstr. 35
         Nuernberg, 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 Nuernberg opened bankruptcy proceedings
against HWVZ Handwerker-Verrechnungszentrum Ag on Sept. 6.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         HWVZ Handwerker-Verrechnungszentrum Ag
         Attn: Klaus Platzer and Matthias Koenig, Managers
         Johannisstr. 44
         90419 Nuernberg, Germany

The administrator can be contacted at:

         Mechthild Bruche
         Stahlstr. 17
         90411 Nuernberg, Germany
         Tel: 0911/951285-0
         Fax: 0911/951285-10


INVISTA B.V.: Moody's Assigns Loss-Given-Default Ratings
--------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its Ba2 Corporate Family Rating for
Invista B.V.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$400 million
   Gtd Sr Sec
   Revolving
   Credit Facility
   due Apr 2010         Ba2      Ba1      LGD2     29%

   US$303 million
   Gtd Sr Sec
   Credit Facility-
   Tranche A-1, A-2
   Term Loan
   due 2010             Ba2      Ba1      LGD2     29%

   US$930 million
   Gtd Sr Sec
   Credit Facility-
   Tranche B-1, B-2
   Term Loan
   due 2011             Ba2      Ba1      LGD2     29%

   US$675 million
   9.25%
   Sr Notes 2012        Ba3      Ba3      LGD5     79%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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, Invista V.B. --
http://invista.com/ -- manufactures textile and polymer.
Invista is composed of five business units -- Apparel,
Interiors, Intermediates, Performance and Textile Fibers, and
Polymers and Resins.  Invista owns more than 700 unique pending
or granted U.S. patents, with corresponding patents in almost
all of the countries where it has a business presence.  In
Europe, the company maintains operations in Switzerland and
Germany.


KOMUNIK VERLAG: Claims Registration Ends October 27
---------------------------------------------------
Creditors of Komunik Verlag & Marketing GmbH have until Oct. 27
to register their claims with court-appointed provisional
administrator Hanns Poellmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Nov. 21 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 Munich
         Meeting Room 102
         Infanteriestr. 5
         Munich, 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 Munich opened bankruptcy proceedings
against Komunik Verlag & Marketing GmbH on Sept. 4.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Komunik Verlag & Marketing GmbH
         Lucile-Grahn-Str. 39
         81675 Munich, Germany

The administrator can be contacted at:

         Hanns Poellmann
         Prannerstr. 11
         80333 Munich, Germany
         Tel: 089/330080999


NATURA 2000: Claims Registration Ends October 27
------------------------------------------------
Creditors of Natura 2000 Medienservice GmbH have until Oct. 27
to register their claims with court-appointed provisional
administrator Rainer U. Mueller.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 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 Augsburg
         Law Courts
         Meeting Room 162
         Alten Einlass 1
         86150 Augsburg, Germany

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

The District Court of Augsburg opened bankruptcy proceedings
against Natura 2000 Medienservice GmbH on Sept. 6.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Natura 2000 Medienservice GmbH
         Attn: Klaus Griehl, Manager
         Rotter Str. 18
         86911 Diessen am Ammersee, Germany

The administrator can be contacted at:

         Rainer U. Mueller
         Schiessstattenstr. 15
         86159 Augsburg, Germany


OPEN TEXT: Plans 15% Workforce Cut on Hummingbird Integration
-------------------------------------------------------------
Open Text Corporation has disclosed plans to integrate the newly
acquired operations of Hummingbird.  The changes align Open Text
with its business strategy to lead the ECM market by delivering
advanced software solutions in vertical markets and leveraging
strategic relationships with major enterprise software partners.

Open Text is moving quickly on its integration plan to leverage
its strong and unique position as the world's largest
independent software company focused exclusively on ECM.  Open
Text also remains the only ECM vendor with strong global
partnerships with three of the world's largest enterprise
software companies -- Microsoft, Oracle and SAP.  This is
matched with deep vertical-market solutions expertise realized
through the combination of Open Text and Hummingbird.  This
position allows Open Text to deliver powerful solutions that
bridge content across multiple enterprise systems, helping
customers across many industries manage their toughest business
and compliance challenges.

"Our plan to integrate the companies is based on our long-term
vision for the future and the strategic plans we've staked out
to lead the ECM market," said John Shackleton, President and
Chief Executive Officer of Open Text.  "With the changes we're
making, we will be organized to deliver on our strategy, and
leverage our unique strengths, including our extensive vertical-
market expertise, to deliver leading solutions to customers."

                 Business Integration Strategy

Open Text is continuing to organize its product and solutions
expertise into groups focused on key vertical segments,
including legal, financial services, energy, pharmaceuticals,
retail, manufacturing, and media and entertainment.  This
structure allows the Company to align its industry and ECM
solutions expertise with specific customer needs in each
segment.  RedDot Solutions will be maintained as part of the
Company's Web Content Management strategy and the Hummingbird
Connectivity unit will continue to operate as a distinct brand.

As part of the integration, Open Text said that it is reducing
worldwide employment by approximately 15 percent of a combined
workforce of 3,500 people.  Functions impacted by the cuts
include redundant positions or areas of the business that are
not consistent with the Company's strategic focus.  Open Text is
also reducing facilities by closing or consolidating offices.
As of the current date, the full details of the reductions in
the workforce and facilities are still being determined and it
is expected that these details will be determined during the
second quarter of fiscal 2007.

"The changes we're making involve some tough decisions.
Unfortunately, this is necessary to eliminate the redundancies
that invariably come when turning two companies into one," said
Mr. Shackleton.  "As we go through this transition, customers
will remain our top priority.  Customers expect us to be there
for them when they need us.  We have a track record of
delivering excellent service and we will continue to do so
through a combined organization composed of highly trained
service and support professionals."

"In our experience with acquisitions, we typically see a
reduction of the acquired company's revenue run-rate going
forward, usually in the 30 percent range.  We believe this
metric is consistent with our expectations of Hummingbird ECM
revenue," said Mr. Shackleton.

                           About Open Text

Open Text Corp -- http://www.opentext.com/-- provides
Enterprise Content Management solutions, processes and
information in global organizations.  The company supports
approximately 20 million seats across 13,000 deployments in 114
countries and 12 languages worldwide.  In Europe, the company is
headquartered in Grasbrunn, Germany.

                         *     *     *

As reported in the Troubled Company Reporter on Sept. 18, 2006,
Moody's Investors Service assigns a first-time Ba3 rating to the
senior secured facilities and B1 rating to the corporate family
of Open Text Corp.  The ratings reflect both the overall
probability of default of the company, to which Moody's assigns
a PDR of B2, and a loss-given-default of LGD-2 for the senior
secured facilities.  Moody's also assigned a SGL-1 speculative
grade liquidity rating, reflecting very good liquidity.  Moody's
said the ratings outlook is stable.

As reported in the Troubled Company Reporter on Sept. 12, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Open Text Corp.  At the same time,
Standard & Poor's assigned its 'BB-' bank loan rating, with a
recovery rating of '2', to the company's proposed US$490 million
senior secured bank facility, which consists of a US$75 million
five-year revolving credit facility and a US$415 million seven-
year term loan B.


OPEN TEXT: Mulls Streamlining of Employees and Facilities
---------------------------------------------------------
Open Text Corporation will release financial results for its
first quarter of fiscal 2007 on Monday, Nov. 6, 2006 at
approximately 4:00 p.m. Easter Time.

For the quarter ended Sept. 30, 2006, the Company expects to
report revenue of between US$99 million and US$101 million.

As reported in the Troubled Company Reporter on Oct. 18, 2006
Open Text, through its wholly owned subsidiary 6575064 Canada
Inc., acquired all of the issued and outstanding common shares
of Hummingbird at a cash price of US$27.85 per common share
which, together with the 764,850 common shares of Hummingbird
owned by Open Text prior to the transaction, represent all of
the issued and outstanding shares of Hummingbird.  The
transaction is valued at approximately US$489 million.

John Shackleton, president and chief executive officer,
commented on the Company's restructuring: "As part of the
integration of Hummingbird into Open Text, we are examining
global operations to ensure we leverage the best assets of both
companies," Mr. Shackleton said.  "Streamlining employees and
facilities of both Hummingbird and Open Text is necessary to
fully capitalize on the economies of scale and synergies that
are available from this integration."

                       About Open Text

Open Text Corp -- http://www.opentext.com/-- provides
Enterprise Content Management solutions, processes and
information in global organizations.  The company supports
approximately 20 million seats across 13,000 deployments in 114
countries and 12 languages worldwide.  In Europe, the company is
headquartered in Grasbrunn, Germany.

                         *     *     *

As reported in the Troubled Company Reporter on Sept. 18, 2006,
Moody's Investors Service assigns a first-time Ba3 rating to the
senior secured facilities and B1 rating to the corporate family
of Open Text Corp.  The ratings reflect both the overall
probability of default of the company, to which Moody's assigns
a PDR of B2, and a loss-given-default of LGD-2 for the senior
secured facilities.  Moody's also assigned a SGL-1 speculative
grade liquidity rating, reflecting very good liquidity.  Moody's
said the ratings outlook is stable.

As reported in the Troubled Company Reporter on Sept. 12, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Open Text Corp.  At the same time,
Standard & Poor's assigned its 'BB-' bank loan rating, with a
recovery rating of '2', to the company's proposed US$490 million
senior secured bank facility, which consists of a US$75 million
five-year revolving credit facility and a US$415 million seven-
year term loan B.


PIXEL-FORM: Claims Registration Ends October 27
-----------------------------------------------
Creditors of Pixel-Form GmbH have until Oct. 27 to register
their claims with court-appointed provisional administrator
Heinrich Stellmach.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Nov. 8 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 Nordhorn
         Hall 42
         Seilerbahn 15
         48529 Nordhorn, 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 Nordhorn opened bankruptcy proceedings
against Pixel-Form GmbH on Sept. 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Pixel-Form GmbH
         Alfred-Mozer-Str. 50
         48527 Nordhorn, Germany

         Attn: Martin Koernig, Manager
         Marrinksweg 12
         48531 Nordhorn, Germany

The administrator can be contacted at:

         Heinrich Stellmach
         Kollegienwall 3-4
         D-49074 Osnabrueck, Germany
         Tel: 0541/18170
         Fax: 0541/1817-3209


TREUGARD RAUMAUSSTATTUNGS: Claims Registration Ends October 26
--------------------------------------------------------------
Creditors of TREUGARD Raumausstattungs-GmbH have until Oct. 26
to register their claims with court-appointed provisional
administrator Andreas Schenk.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Dec. 7 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 Chemnitz
         Hall 28
         Law Courts Prince Road 21
         Chemnitz, 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 Chemnitz opened bankruptcy proceedings
against TREUGARD Raumausstattungs-GmbH on Sept. 12.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         TREUGARD Raumausstattungs-GmbH
         Attn: Bernd Schaarschmidt, Manager
         Weissensander Road 2
         08233 Treuen, Germany

The administrator can be contacted at:

         Andreas Schenk
         Franz-Mehring-Str. 15
         08058 Zwickau, Germany


WACH- UND KONTROLLDIENST: Claims Registration Ends October 27
-------------------------------------------------------------
Creditors of Wach- und Kontrolldienst Oberfranken GmbH have
until Oct. 27 to register their claims with court-appointed
provisional administrator Gerald Bittner.

Creditors and other interested parties are encouraged to attend
the meeting at 1:30 p.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 Hof
         Meeting Room 012
         Ground Floor
         Berliner Place 1
         95030 Hof, 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 Hof opened bankruptcy proceedings against
Wach- und Kontrolldienst Oberfranken GmbH on Sept. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Wach- und Kontrolldienst Oberfranken GmbH
         Maulschelle 7
         95213 Muenchberg, Germany

The administrator can be contacted at:

         Gerald Bittner
         Schillerstr. 2
         95028 Hof, Germany
         Tel: 09281/71550
         Fax: 09281/715555


* Fitch Updates Q-Insurer Financial Strength Ratings in Germany
---------------------------------------------------------------
Fitch Ratings updated its Quantitative Insurer Financial
Strength (Q-IFS) ratings for 134 insurers in Germany.  Of the
134 updated ratings, only companies carrying low-B ratings were
included in this report.  There are eight upgrades, one
downgrade, one new rating, 17 affirmations and one rating
withdrawn.

A full list of the Q-IFS ratings is provided along with
definitions, limitations and details of which entities provided
additional disclosure.

The Q-IFS ratings are point-in-time ratings using year-end 2005
and prior years' annual financial results and are based on
publicly available financial information, unless otherwise
indicated.

Entities that have an asterisk (*) after their name have offered
additional data disclosures, which have, on occasion, proved
material to the ratings.

Upgrades:

   -- ARAG Krankenversicherungs-Aktiengesellschaft*: BBBq from
      BBq;

   -- Concordia Lebensversicherungs-Aktiengesellschaft: BBBq
      from BBq;

   -- Fahrlehrerversicherung Verein auf Gegenseitigkeit: BBBq
      from BBq;

   -- Inter Allgemeine Versicherung Aktiengesellschaft: BBBq
      from BBq;

   -- Inter Krankenversicherung aG: BBBq from BBq;

   -- ONTOS Versicherung Aktiengesellschaft: BBBq from BBq;

   -- Provinzial Krankenversicherung Hannover AG: BBBq from BBq;
      and

   -- Vereinigte Hagelversicherung VVaG: BBBq from BBq.

Downgrade:

   -- Saarland Lebensversicherung Aktiengesellschaft: BBq from
      BBBq.

New Rating:

   -- PAX-Familienfursorge Krankenversicherung im Raum der
      Kirche: BBq.

Affirmations:

   -- ARAG Lebensversicherungs-Aktiengesellschaft*: BBq;

   -- Badische Allgemeine Versicherung Aktiengesellschaft: BBq;

   -- Bayerische Beamten Lebensversicherung a.G.: BBq;

   -- Freie Arzt- und Medizinkasse der Angehoerigen der
      Berufsfeuerwehr und der Polizei VVaG: BBq;

   -- German Assistance Versicherung AG: BBq;

   -- Haeger Versicherungsverein auf Gegenseitigkeit: BBq;

   -- HanseMerkur Speziale Krankenversicherung AG: BBq;

   -- Inter Lebensversicherung aG: BBq;

   -- Muenchener Verein Lebensversicherung a.G.: BBq;

   -- oeco capital Lebensversicherung Aktiengesellschaft: BBq;

   -- Prudentia Lebensversicherungs-Aktiengesellschaft: BBq;

   -- Rheinland Lebensversicherung Aktiengesellschaft: BBq;

   -- Rheinland Versicherungs Aktiengesellschaft: BBq;

   -- Schwestern-Versicherungsverein vom Roten Kreuz in
      Deutschland a.G.: Bq;

   -- Sueddeutsche Krankenversicherung a.G.*: BBq;

   -- Suedeutsche Lebensversicherung a.G.*: BBq; and

   -- Union Reiseversicherung Aktiengesellschaft: Bq.

Withdrawal:

   -- uniVersa Lebensversicherung a.G.: BBq.

Quantitative Insurer Financial Strength Ratings Definitions:
Q-IFS ratings differ from traditional IFS ratings based on the
methodology employed.  Traditional IFS ratings are established
by a Fitch rating committee using a methodology that
incorporates a comprehensive review of both quantitative and
qualitative factors.  In-depth discussions with senior
management typically play an important part in Fitch's
evaluation.

In contrast, Q-IFS ratings are generated solely using a
statistical model that utilizes financial statement information.
This information is the historical publicly available
information generally available to brokers, Independent
Financial Advisers and other counterparties to insurers.

The model incorporates "rating logic" that mirrors the
quantitative analysis used to assign traditional IFS ratings,
and the model itself is subject to rating committee review.
However, individual ratings are not established or reviewed by
the rating committee.

The statistical model generally requires a minimum of three
years of financial statement information - Fitch will not
publish Q-IFS ratings if the information is deemed incomplete.

Additional differences between the Q-IFS ratings and traditional
IFS ratings include the following: Q-IFS ratings make no
assessment of management quality; affiliate/parent relationships
are not considered; and qualitative factors requiring subjective
assessment are excluded, such as prudence of reserving
assumptions, reinsurance and asset hedging strategies.

Q-IFS Ratings are identified using a "q" subscript.  They are
'point-in-time' ratings, and are reviewed on no less than an
annual basis.  The concept of 'point-in-time' is intended to
denote the fact that the ratings are valid as of the last
balance sheet date used to derive the rating and carry no
forward-looking elements.  The ratings do not incorporate Rating
Outlook or Rating Watch designations used in traditional IFS
ratings.

The Q-IFS rating uses a rating scale and definitions that are
similar to that used by Fitch for traditional IFS ratings.
Ratings of BBBq and higher are considered to be Secure, and
those of BBq and lower are considered to be Vulnerable.

The rating scale does not utilize the + and - suffixes
associated with traditional IFS ratings.  In addition, the
rating scale does not incorporate the CC and C equivalent
ratings, which require certain qualitative analytical judgments
that are not included in the model.

Insurers that have either failed to make payments on their
obligations in a timely manner, are deemed to be insolvent, or
have been subject to some form of regulatory intervention are
assigned ratings using the traditional IFS rating scale.

BBq: Moderately weak.  Insurers are viewed as moderately weak
with an uncertain capacity to meet policyholder and contract
obligations based solely on their stand-alone publicly available
financial statement information.  Though positive factors are
present, overall risk factors are high, and the impact of any
adverse business and economic factors is expected to be
significant.

Bq: Weak.  Insurers are viewed as weak with a poor capacity to
meet policyholder and contract obligations based solely on their
stand-alone publicly available financial statement information.
Risk factors are very high, and the impact of any adverse
business and economic factors is expected to be very
significant.

CCCq: Very weak.  Insurers rated in this category are viewed as
very weak with a very poor capacity to meet policyholder and
contract obligations based solely on their stand-alone publicly
available financial statement information.  Risk factors are
extremely high, and the impact of any adverse business and
economic factors is expected to be insurmountable.  Some form of
insolvency or liquidity impairment appears probable or imminent.


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


HOUGHTON INT'L: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its B2 Corporate Family Rating for
Houghton International Inc.

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

                                          Projected
                        POD      LGD      Loss-Given
   Debt Issue           Rating   Rating   Default
   ----------           -------  -------  ----------
   US$90 million
   Gtd Sr
   Sec Term Loan
   due 2011             B2       LGD3     45%

   US$25mm Gtd Sr
   Sec Revolving
   Credit Facility
   due 2010             B2       LGD3     45%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Valley Forge, Pennsylvania, Houghton
International Inc. -- http://www.houghtonintl.com/--
manufactures oils and specialty chemicals for lubrication in
most of the big Midwestern industries: metalworking, automotive,
and steel.  Its products range from aluminum and steel rolling
lubricants to rust preventatives to fire-resistant hydraulic
fluids.  Houghton maintains more than 30 sales and manufacturing
facilities in North and South America, Europe, Africa,
Australia, and Asia.  In Europe, Houghton operates in Austria,
Denmark, United Kingdom, Finland, France, Germany, Greece,
Ireland, Italy, Poland, Norway, Romania, and Turkey.


OLYMPIC AIRLINES: Greece to Face EUR10,000 Daily Penalty
--------------------------------------------------------
The Greek government may face a EUR10,000-a-day penalty for
failing to recover EUR161 million in illegal aid allotted to
national carrier Olympic Airlines, BBC News reports.

As reported in TCR-Europe on Oct. 11, the European Commission
warned the Greek government of a possible legal action if the
state remains adamant in recovering amount from Olympic
Airlines.

The Greek government, however, still refused to reclaim the
state aid, saying it would assess the ruling before responding.
BBC says Greece's position apparently caused the regulator to
lose its patience and requested the European Union Court of
Justice to impose the daily fine.

The daily penalty would continue until Greece recovers all the
money from Olympic Airlines.  Inaction on the part of the Greek
government may push the Commission to raise the fine to
EUR53,000 daily.

As reported in TCR-Europe on May 20, 2005, the European Court
ordered Greece to recover EUR194 million (US$249.2 million) in
illegal aid from the carrier.  In May 2006, the European
Commission referred Greece to the European Court of Justice for
failure to comply with its state aid decision of Sept. 14, 2005.

In its decision of September 2005, the Commission found that
Greece had granted illegal and incompatible state aid through a
number of measures:

   -- EUR40 million from the Greek State and Olympic Airways to
      cover part of the costs to Olympic Airlines of leasing
      aircraft;

   -- an unjustified payment of some EUR90 million from the
      Greek State to Olympic Airways when Olympic Airlines was
      set up and transferred to the State, achieved by
      overvaluing the assets transferred to the State;

   -- the Greek State's toleration of Olympic Airways' failure
      to pay more than EUR350 million in tax and social security
      liabilities due between December 2002 and December 2004;

   -- the assumption by the Greek State of a number of Olympic
      Airways' financial obligations, e.g. in connection with
      aircraft leasing contracts and the repayment of a bank
      loan, amounting to up to EUR60 million.

The European Court of Justice then ruled that Greece infringed
European Union rules by failing to comply with the EC's request.
The Commission also deemed the Greek government of distorting
competition for failure to recover the illegal state aid.

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.


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


ALITALIA SPA: Updates Industrial Plan & Reviews Alliance Options
----------------------------------------------------------------
The Board of Directors examined an update of Alitalia S.p.A.'s
Industrial Plan which constitutes a useful and appropriate basis
to be further integrated, taking into consideration -- as in the
guidance provided by the Italian government -- a feasible and
convenient alliance, in order to ensure a suitable long term
industrial framework in which the company can operate.

This updated plan confirms the strategic positioning of Alitalia
as a "highly efficient network carrier" as well as the medium
term financial targets previously announced.

According to the company, certain events that occurred in 2006
have slowed the company's restructuring.  These include:

   -- higher fuel prices;

   -- higher than expected growth of low cost airlines in Italy;

   -- strikes and threat of strikes that have periodically
      impacted the company; and

   -- the delay in implementation of certain restructuring
      measures foreseen in the plan.

Although key performance figures for 2006 provide confirmation
and show progress towards the Plan targets, they also show
delays in achieving some of the results.

The review of the strategic guidelines examined represents
continuity with the recent past and confirm Alitalia's
positioning as a "highly efficient network carrier" with a
strong focus on its core business.

The structure of the plan is confirmed to be in two phases:

   -- the restructuring phase: aimed at restoring the company's
      financial equilibrium; and

   -- the relaunch phase: aimed at increasing Alitalia's
      presence in the market.

The Plan regards all key areas of the Company:

   -- fleet: increased capacity, improved product quality and
      reduced average age of the fleet and its maintenance costs
      will be achieved thanks to the introduction of
      new airplanes.

   -- network: increased activity will be generated during the
      implementation of the plan (this increase will take place
      all airports operated by the company) thanks to a redesign
      of the network and development of the fleet.

   -- group Companies: each company will be used and developed
      in accordance to demand.  This, in particular, will affect
      the Group's positioning in new markets through Volare.

   -- sales and marketing: improvement in service will boost
      sales particularly direct sales through web channels and
      call centers and leading to further cost reductions.

   -- cost reduction: confirmation of the stated target of
      reduction of unit costs (excluding fuel) up to 24%, to be
      achieved through both efficiency projects and improved use
      of resources.

In this context and considering all above, the Board has also
mandated the Chairman and Chief Executive Officer to start
immediately examining structural alliance options with another
carrier aimed at generating industrial synergies and maximizing
the company's profitability, and therefore to adjust the
Industrial Plan accordingly.

The Board also examined the Group's recent performance both in
terms of financial results.

Based on these results and also in compliance with a request
made by CONSOB under the terms of article 114, section 5, of
Decree no. 58/98, these are stated:

   -- indication of key updated financial results, in particular
      revenues and main costs, such as personnel and fuel costs.

      From January to August 2006 the Group's key financial
      results were:

         -- consolidated profits of about EUR3.101 million;

         -- fuel cost of about EUR678 million;

         -- labor cost of about EUR510 million;

   -- update regarding the implementation of the Industrial Plan
      2005-2008 announced to the market, highlighting, from a
      quantitive perspective, the main variances between the
      financial results outlined in point 1 and forecasts
      formulated on the basis of this plan.

      In order to compare figures from point 1 with those
      figures originally foreseen in the first year of the Plan,
      it is important to remember that on Jan. 31, 2006 the
      Board approved a budget that identified the same positive
      results target foreseen in the first year of the
      Industrial Plan as announced to the market.  The
      budget is today the most accurate base on which to analyze
      such variances.

      The major quantitative shifts in the figures regarding
      January-August 2006 and the budget available can be
      summarized as:

         -- in terms of consolidated revenues, there is a
            negative difference of about EUR82 million mainly
            due to reduced capacity in the first 8 months of the
            year, due to strikes that occurred in January and
            the actual flight hours.

         -- fuel costs are about EUR25 million higher than
            originally expected also due to the sharp increase
            of fuel prices in the past few months (almost US$80
            per barrel)

         -- in terms of labor costs, the difference is EUR40
            million compared to the planned target for the first
            eight months of 2006 mainly due to the unsuccessful
            implementation of efficiency programs

   -- data, updated with respect to what was previously declared
      in the first half results for 2006, on forecasted results
      for the second half of 2006 and, where available, on the
      estimated results for the same period, in order to
      highlight the main variances regarding the targets laid
      out in the Industrial Plan.

      Since what described in the above point 1) was already
      available to the company at the time of the approval for
      its first half results, the Company confirms what was
      announced in the release regarding first half results for
      2006.  The forecast for the second half of the year is for
      positive operating and net results, partly due to some
      non-recurring items.  The Group's consolidated net result
      for the full year 2006 should approach the level achieved
      in 2005.

   -- directors' valuation regarding the impairment test on the
      Group's assets carried out with reference to the first
      half 2006 results and foreseen changes to the
      Industrial Plan

      As regards the test for value reduction (also known as
      impairment test), aimed at ascertaining the recoverability
      of the book value of the assets that generate financial
      flows (assets relative to short  or medium haul
      activities, long haul of expected future cash flow
      activities and all cargo) through the discounting
      retrievable from the same assets, the result was positive.

      this test, carried out in accordance Group does not need
      to devaluate the assets with IAS 36, was conducted on the
      basis of the documentation regarding the update to the
      Industrial Plan, starting from the forecast regarding the
      end of 2006 examined at the Board Meeting that took place
      on Sept. 12, 2006.

   -- update on the implementation of non-recurring operations
      indicated in the first half results for 2006.  With
      reference to non-recurring operations indicated in the
      half results for 2006, there is confidence in a positive
      result by the end of the year.  A selection process to
      find buyers is currently underway.

   -- evaluation of the Directors regarding the existence of
      sufficient cash flow over the next 12 months to cover the
      Group's financial needs

   -- the Board of Directors has also examined the projection of
      the Group's financial flows, which highlight that the
      current available liquidity and future cash flow
      generation of the Company are enough to cover its
      financial needs over the next 12 months and thereafter

   -- timing and mode of the review of the business plan.

The timeframe to adjust the Industrial Plan will be strictly
correlated to the mandate given to Chairman and Chief Executive
Officer with regards to structural alliance options.

As reported on Oct 13, 2006, Italian Prime Minister Romano Prodi
foresees a bankrupt national carrier in January 2007 unless
involved parties come up with an "agreed solution."

"We have until January to hammer out a solution which can avoid
bankruptcy," Mr. Prodi said, sharing the same observation posed
by Alitalia CEO Giancarlo Cimoli.

According to the TCR-Europe on Oct. 11, Mr. Cimoli revealed
that Alitalia is poised for collapse given its current cost
structure and market conditions.

"At present, the national carrier is unable to generate profit,
even for previously invested capital," Mr. Cimoli said.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in
annual revenue and employs more than 11,000 people.  Alitalia
flies to about 80 destinations in more than 60 countries from
hubs in Rome and Milan and operates a fleet of about 185
aircraft.  The Italian government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection.  The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.


ALITALIA SPA: Names Giovanni Sabatini to Board of Directors
-----------------------------------------------------------
The Board of Directors of Alitalia S.p.A. appointed Giovanni
Sabatini, as Director of the Company.

Mr. Sabatini is General Manager at the Treasure Department of
the Ministry of Economy and Finance.

Mr Sabatini's curriculum vitae is available at the Company's
registered office, so are the curricula of the other Directors.

Mr Sabatini is not member of internal committees or has not been
awarded mandates that would make him Executive Director.  He is
not an independent Director of Alitalia.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in
annual revenue and employs more than 11,000 people.  Alitalia
flies to about 80 destinations in more than 60 countries from
hubs in Rome and Milan and operates a fleet of about 185
aircraft.  The Italian government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection.  The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.


DRESSER INC: Moody's Rates US$935-Mln Credit Facilities at B1
-------------------------------------------------------------
Moody's Investors Service assigned a B1, LGD 3 (37%) rating to
Dresser, Inc.'s proposed US$935 million of senior secured bank
credit facilities.  At the same time, Moody's affirmed Dresser's
B1 Corporate Family Rating and changed the company's Probability
of Default Rating to B2 from B1.  The outlook remains negative
pending the filing of its restated financial statements.
Proceeds from the new bank credit facility are being used to
refinance Dresser's existing senior secured credit facility,
senior unsecured term loan, and senor subordinated notes.
Moody's will withdraw the ratings on the existing secured credit
facility, senior unsecured term loan, and subordinated notes
upon their redemption.

The negative outlook reflects:

   (1) Moody's concern that the amount of time to complete the
       restatements could be considerable and

   (2) the challenges the company faces to remediate its
       material weaknesses over internal controls.

In March of this year, Dresser announced its inability to file
its 2005 Annual Report on Form 10-K by the March 31, 2006
requirement.  And in May, the company announced that it would
need to restate its financial statements for fiscal year 2004,
as well as the 2004 and 2005 quarterly financial statements,
representing the third time that the company has had to restate
its financial results over the past three years.  It remains
unclear at this time if the company will need to restate its
financial statements for periods prior to 2004.  Moody's
believes that ongoing financial statement filing delays have
created significant management distractions.  It is possible
that the restatement process could continue to be protracted.

Dresser has reported six material weaknesses, two of which
relate to its former on/off valves business, which was sold in
November 2005. These weaknesses are the root cause for the
company's filing delays and restatements.  While Moody's notes
that the financial impact of the restatements appears to be
modest, the nature and pervasiveness of the internal control
issues reported are very serious because they relate to
company-level controls and indicate a weak control environment.
Dresser is making efforts to address the material weaknesses;
however, the company still has substantial work to do in
addressing company-level controls and the control environment,
which will continue to remain a significant distraction for
management.  Until the material weaknesses are fully
resolved, some uncertainty remains regarding the company's
financial reporting, particularly given the company's
substantial international exposure.

Should the delay in completing the financial statements become
extended materially beyond December 2006 and if Moody's
determines that it lacks sufficient financial information to
appropriately monitor the company's credit, the ratings could be
withdrawn.

The ratings could be pressured if the company does not maintain
relatively conservative financial policies. The company is
currently exploring strategic alternatives, including the
potential sale of the company.  Approximately 88% of Dresser's
outstanding equity is currently owned by First Reserve
Corporation and Odyssey Investment Partners.  Uncertainty
remains as to a potential new owner's strategic direction for
the company, depth of industry experience, and credit quality.

The outlook could stabilize if Dresser:

   -- is able to file its restated financial statements with the
      SEC in the near-term and becomes current on its quarterly
      financial statement filings;

   -- is able to make material progress in resolving its
      material weaknesses; and

   -- continues to exhibit positive trends with respect to its
      financial performance.

However, the rating and outlook would be subject to a full
review of the audited financial statements.

Dresser's B1 Corporate Family Rating is restrained by the
company's:

   -- high leverage relative to cyclical and competitive sector
      conditions;

   -- working capital intensity;

   -- low hard asset coverage of debt (high intangible assets
      and low tangible fixed assets), reflecting a significant
      service orientation;

   -- increasing exposure to political risk as a result of
      expected growth in certain international markets;

   -- financial performance that while improving has been below
      expectations; and

   -- weak internal controls.

The B1 rating is supported by the company's

   -- substantial scale and diversification;

   -- long-standing, leading market positions;

   -- large installed base of client infrastructure, deployed
      and served by Dresser over many decades, which adds
      durability to its earnings;

   -- manageable cash flow cycles for the rating and leverage;

   -- seasoned management;

   -- improving financial performance;

   -- the breadth and financial strength of much of its customer
      base; and

   -- low maintenance capital spending needs.

Dresser's proposed US$935 million senior secured credit
facilities consist of:

   -- a seven-year US$785 million term loan facility,

   -- a seven-year US$50 million synthetic letter of credit
      facility, and

   -- a six-year US$100 million revolving credit facility, which
      is expected to be unfunded at closing.

The term loan facility, which has minimal amortization until
maturity, is expected to have a cash sweep mechanism that would
require a portion of free cash flow to be applied toward debt
reduction if leverage exceeds certain thresholds.  Financial
covenants under the facilities are expected to include a
leverage ratio, interest coverage ratio, and maximum capital
expenditures.  In addition to the proposed credit facilities,
Dresser's pro-form capitalization will consist of a modest
amount of debt at foreign subsidiaries (approximately US$15
million as of June 30, 2006).

The B1 rating and LGD 3 assessment on Dresser's senior secured
credit facilities and the company's B2 Probability of Default
Rating reflect a pro forma capital structure that is comprised
almost entirely of first lien bank debt.  The credit facilities
are secured pari passu by perfected liens on Dresser's domestic
receivables, inventory, and fixed assets, as well as a pledge of
stock of domestic subsidiaries and a pledge of stock of 65% of
the stock of foreign subsidiaries. The facilities are guaranteed
by Dresser Holdings, Inc. and by all of Dresser, Inc.'s wholly-
owned domestic subsidiaries.  The ratings on the bank facilities
are restrained by the amount of non-debt liabilities at the
foreign operating subsidiaries (primarily comprised of accounts
payables and unfunded pension obligations), the ability for
Dresser to incur additional debt at these subsidiaries (up
to the sum of US$75 million and 10% of the backlog of all
foreign subsidiaries), and by weak coverage of secured debt by
the tangible assets of the domestic subsidiaries.  Foreign
operating subsidiaries account for more than half of Dresser's
total tangible assets.

                        About Dresser

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets
equipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The Company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide including Italy,
Germany and Switzerland.


DRESSER INC: S&P Rates US$935 Million Credit Facilities at B
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' senior
secured rating and its '3' recovery rating to energy and
oilfield equipment manufacturer Dresser Inc.'s US$935 million
credit facilities, which are composed of a new US$785 million
term loan B, a US$50 million synthetic LOC facility, and a
US$100 million revolving credit facility.  In addition, Standard
& Poor's revised its CreditWatch listing on Dresser to
developing implications from negative implications.

Dresser will use proceeds from the new term loan to refinance
existing bank debt and outstanding subordinated note issues.

The CreditWatch listing reflects the potential for ratings to be
raised, lowered, or affirmed in the near term. The ratings on
Dresser had been placed on CreditWatch with negative
implications due to delays in filing audited financial
statements.

"Pending completion of the announced refinancing and receipt of
audited financial statements from prior periods, we will conduct
a full review and resolve the CreditWatch listing on Dresser in
the near term," said Standard & Poor's credit analyst Jeffrey
Morrison.

Key considerations for whether the corporate credit rating will
be raised, affirmed at 'B', or lowered additionally, will
include:

    * implications of the company's previous announcement that
      it is currently exploring strategic alternatives, which
      could include a potential sale of the company;

    * Dresser's ability to successfully resolve recent
      accounting issues that have resulted in delayed filings;

    * financial policy with regard to growth capital and
      potential acquisitions;

    * a comprehensive review of Dresser's financial statements
      and its recent operating and financial performance; and

    * an assessment of the near- to intermediate-term outlook
      for Dresser's various business lines.


LYONDELL CHEMICAL: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Chemicals and Allied Products sector, the
rating agency confirmed its Ba3 Corporate Family Rating for
Lyondell Chemical Co.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$800 million
   Gtd Sr Sec
   Revolving
   Credit Facility
   due 8/2011           Ba3      Ba2      LGD2     28%

   US$1,775 million
   Gtd Sr Sec
   Term Loan
   due 8/2013           Ba3      Ba2      LGD2     28%

   US$430 million
   9.5% Gtd Sr Sec
   Global Notes
   due 12/2008          Ba3      Ba2      LGD2     28%

   US$849 million
   9.625%
   Sr Sec Notes
   Series A
   due 5/2007           Ba3      Ba2      LGD2     28%

   US$325 million
   10.5%
   Gtd Sr Sec
   Global Notes
   due 6/2013           Ba3      Ba2      LGD2     28%

   US$278 million
   11.125
   Gtd Sr Sec
   Notes due 7/2012     Ba3      Ba2      LGD2     28%

   US$875 million
   8.0% Gtd
   Sr Unsec Notes
   due 9/2014           B1       B1       LGD5     73%

   US$900 million
   8.25%
   Gtd Sr Unsec Notes
   due 9/2016           B1       B1       LGD5     73%

   US$100 million
   10.25%
   Sr Unsec Debentures
   due 11/2010          B1       B1       LGD5     73%

   US$225 million
   9.8%
   Sr Unsec Debentures
   due 2/2020           B1       B1       LGD5     73%

   US$500 million
   10.875%
   Sr Sub Notes
   due  5/2009          B2       B2       LGD6     95%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Houston, Texas, Lyondell Chemical Company
(NYSE: LYO) -- http://www.lyondell.com/-- is North America's
third-largest independent, publicly traded chemical company.
Lyondell manufacturers basic chemicals and derivatives including
ethylene, propylene, titanium dioxide, styrene, polyethylene,
propylene oxide and acetyls.  It also refines heavy, high-sulfur
crude oil and produces gasoline- blending components.  It
operates on five continents and employs approximately 11,000
people worldwide.  In Europe, the company maintains operations
in Austria, Belgium, France, Germany, Italy, The Netherlands,
Spain, and the United Kingdom.


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


AVTOTRANSSBYT LLP: Creditors Must File Claims by Nov. 17
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Auto Sale Company Avtotranssbyt insolvent.

Creditors have until Nov. 17 to submit written proofs of claim
to:

         LLP Avtotranssbyt
         Jambyl Str. 9
         Karaganda
         Karaganda Region
         Kazakhstan


BUSINESS TECHNOLOGIIES: Creditors Must File Claims by Nov. 17
-------------------------------------------------------------
LLP Business Technologiies Corp. has declared insolvency.
Creditors have until Nov. 17 to submit written proofs of claim
to:

         LLP Business Technologiies Corp.
         Ablaihan Ave. 10-7
         Almaty District
         Astana, Kazakhstan


DIAS-T LLP: Claims Registration Ends Nov. 17
--------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Dias-T insolvent.

Creditors have until Nov. 17 to submit written proofs of claim
to:

         LLP Dias-T
         Jambyl Str. 9
         Karaganda
         Karaganda Region
         Kazakhstan


FREEDOMLAND KAZAKHSTAN: Claims Registration Ends Nov. 17
--------------------------------------------------------
LLP Freedomland Kazakhstan has declared insolvency.  Creditors
have until Nov. 17 to submit written proofs of claim to:

         LLP Freedomland Kazakhstan
         Gornaya Str. 11
         Saryagash
         South Kazkhstan Region
         Kazakhstan


JULDYZ LLP: Proof of Claim Deadline Slated for Nov. 17
------------------------------------------------------
The Tax Committee of Almaty Region entered an order placing
LLP Juldyz (RNN 090400004961) into compulsory liquidation.

Creditors have until Nov. 17 to submit written proofs of claim
to:

         LLP Juldyz (RNN 090400004961)
         Room 208
         Jangusurov Str. 113a
         Taldykorgan
         Almaty Region
         Kazakhstan
         Tel: 8 (32822) 24-19-77


NEFTESTROYENERGOSERVICE LLP: Court Opens Bankruptcy Procedure
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region commenced bankruptcy proceedings against LLP Oil Company
Neftestroyenergoservice on Sept. 13.


REMSTROYBYT LLP: Creditors' Claims Due Nov. 17
----------------------------------------------
The Tax Committee of Almaty Region entered an order placing
LLP Remstroybyt (RNN 090400017699) into compulsory liquidation.

Creditors have until Nov. 17 to submit written proofs of claim
to:

         LLP Remstroybyt
         Room 208
         Jangusurov Str. 113a
         Taldykorgan
         Almaty Region
         Kazakhstan
         Tel: 8 (32822) 24-19-77


TECHPROM-TRADE LLP: Pavlodar Court Opens Bankruptcy Proceedings
---------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
commenced bankruptcy proceedings against LLP Techprom-Trade on
May 31.


VICTORIYA LLP: Creditors' Claims Due Nov. 17
--------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Victoriya insolvent on Aug. 23.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Nov. 17 to submit written proofs of claim
to:

         LLP Victoriya
         Lenin Ave. 40-41
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 47-61-94


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


MYASOKONSERVNYI KOMBINAT: Public Auction Scheduled for Oct. 27
--------------------------------------------------------------
The Chui-Bishkek-Talas Territorial Department of the State
Committee on State Property will auction 16.15% of OJSC
Bishkeksky Meat Packing Plant Myasokonservnyi Kombinat's state
share holding, representing 206,558 shares, at 10:00 a.m. on
Oct. 27 at:

         Chui-Bishkek-Talas Territorial Department
         of the State Committee on State Property
         Room 5
         Floor 5
         Moskovskaya Str. 172
         Bishkek, Kyrgyzstan

The entity has declared a KGS6,321,151 starting price for the
equity stake.

OJSC Bishkeksky Meat Packing Plant Myasokonservnyi Kombinat is
engaged in the meat-processing business.  It has 1,307,810 total
number of shares.  The company has an authorized capital of
KGS76.9 million and reports KGS400.2 million in cost of assets
as of Jan. 1.  The company also reports a clear profit of
KGS54,344 as of Jan. 1.

Participants have until 5:00 p.m. on Oct. 26 to deposit an
amount equivalent to 10% of the starting price to the settlement
account of:

         Chui-Bishkek-Talas Territorial Department of
         the State Committee on State Property
         Settlement Account No. 8504172080101005/205802605
         OJSC Settlement and Saving Company
         Treasure Department of Lenin District
         MFO 129001

and submit their bids and necessary documents to:

         Chui-Bishkek-Talas Territorial Department of
         the State Committee on State Property
         Room 1
         Floor 5
         Moskovskaya Str. 172
         Bishkek, Kyrgyzstan

The winner of the auction will pay 7% of the selling price.

Inquiries can be addressed to (+996 312) 21-87-34, 21-87-25.


OPTIKA LLC: Insolvency Manager Sets Oct. 27 Asset Auction
---------------------------------------------------------
The bidding organizer and insolvency manager of LLC Optics
Optika will auction the company's spherical lens and equipment
mini-factory to the public at 2:00 p.m. on Oct. 27 at:

         LLC Optics Optika
         Building of Mini Factory
         Pirogov Str. 14
         Kara-Balta
         Chui Region
         Kyrgyzstan

The mini-factory has a total area of 579.3 square meters.

The property's starting price is set at EUR173,173, which was
reduced by 75%.

Participants have until Oct. 26 to deposit an amount equivalent
to 10% of the starting price and submit their bids to:

         LLC Optics Optika
         Building of Mini Factory
         Pirogov Str. 14
         Kara-Balta
         Chui Region
         Kyrgyzstan
         Tel: (0-502) 76-06-62


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


ECONOMY LUXEMBOURG: Fitch Assigns BB Rating to Sub. Notes Issue
---------------------------------------------------------------
Fitch Ratings assigned Economy Luxembourg S.A.'s issue of step-
up loan participation notes a foreign currency Long-term rating
of BB.  The notes are to be used solely to finance a
subordinated loan to Turkey's Turk Ekonomi Bankasi A.S.  The
issue will only pay noteholders amounts, if any, received from
TEB under the subordinated loan agreement.

TEB has a foreign currency Issuer Default rating of BB and a
local currency IDR of BB+, all with Positive Outlook.  The BB
rating of the subordinated notes reflects Fitch's standard
notching practice for subordinated instruments of issuers with
IDRs of BB- or higher.  The subordinated issue rating has been
notched down once from TEB's BB+ local currency rating.

TEB Mali Yatirimlar A.S., which is jointly owned by BNP Paribas
and the Colakoglu Group, holds 84.25% of TEB, with 15.63% of the
shares publicly traded and 0.12% held by other shareholders.


EVRAZ GROUP: Conflict of Interest Prompts Bruno Bolfo to Resign
---------------------------------------------------------------
Evraz Group S.A. disclosed that Bruno Bolfo has tendered his
resignation as a member of the Board of Directors of the
Company.  He will also cease to be a member of the Company's
Audit Committee.

On Oct. 20, Mr. Bolfo notified the Company of his resignation
from the Board effective immediately due to a conflict of
interests arising out of a proposed joint venture agreement
between Duferco, a steel trader and producer, and steel making
company NLMK.  Mr. Bolfo is the owner and Chairman of the Board
of Directors of Duferco.

Bruno Bolfo had been a member of Evraz's Board since Aug. 9
following his election by the extraordinary general meeting of
shareholders in July 2006.

                         About Evraz

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

                        *     *     *

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

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

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


EVRAZ GROUP: Strong Performance Spurs Moody's to Change Outlook
---------------------------------------------------------------
Moody's Investors Service changed the outlook on all ratings
assigned to Evraz Group S.A. to positive from stable.

The change in the outlook for positive reflects EVRAZ's
continuous robust performance in 2006 and Moody's expectation
that the Russian steel market will remain resilient and will
continue to support financial performance of the group.  In 1H
2006, EVRAZ reported strong USD 3.7 billion in Revenues and
US$1.1 billion in EBITDA, while cash flow generation improved
and liquidity remained satisfactory.

The positive outlook also reflects Moody's expectation that
EVRAZ should sustain its strong financial metrics and maintain
cash flow cushion to service the increased absolute level of
debt through the cycle, particularly as its substantial CAPEX
programme in Russia is at its closing stages.

Taking into account recent changes in the ownership of the
group, Moody's will monitor any potential developments to
EVRAZ's corporate profile, in particular changes to corporate
and financial policies before considering any future upward
rating actions.

Ratings affected:

EVRAZ Group S.A.

    * Ba3 Corporate Family Ratings Ba3

    * B2 Senior Unsecured rating on global bonds

EVRAZ Securities S.A

    * B1 Senior guaranteed rating on eurobonds

EVRAZ group is Russia's largest vertically integrated steel
company (by volume and assets) that produced 13.9 m tones of
crude steel in 2005.  EVRAZ principal assets are three steel
plants and three iron ore mining and processing facilities, as
well as two coal mines and logistics and trading assets.


NOVELIS INC: Expects Improved Financial Performance in 2007
-----------------------------------------------------------
Novelis Inc. would be providing guidance for 2006 and 2007 as
part of its strategic and financial update.

                            Highlights

   -- the company continues to generate solid cash flow.
      Novelis expects total free cash flow for 2006 to be
      between US$150 million and US$200 million, and believes
      it will remain in that range for 2007 as the company
      improves its risk mitigation program.

   -- the company anticipates a return to positive earnings
      before taxes in 2007.  For the full year of 2006, Novelis
      expects to post a loss before taxes of between
      US$240 million and US$285 million.  For the full year of
      2007, the company anticipates earnings before taxes of
      between US$35 million and US$100 million.  This expected
      upswing is due primarily to the elimination of half of the
      company's can sheet price ceiling exposure, expected
      increases in rolled product shipments, and expected
      corporate cost reductions.

   -- the company estimates that shipments for 2006 will be
      between 3,140 and 3,170 kilotons.  In 2007, shipments are
      forecasted to grow by 3 to 4 percent compared to 2006.

   -- for 2006, Novelis estimates capital expenditures of
      between US$110 million and US$115 million.  For 2007, the
      company expects that its capital expenditure run rate will
      return to traditional investment levels of between
      US$165 million and US$175 million.

   -- longer term, the company will target:

      * an annual growth rate of 7% to 10% for regional income
        less corporate costs;

      * annual returns on invested capital exceeding 12%;

      * annual free cash flow surpassing USUS$400 million; and

      * a debt-to-EBITDA ratio of between 2.5x and 3.0x.

Novelis said that all forward estimates assume an average price
for primary aluminum of US$2,500 per metric ton on the London
Metal Exchange.

"We believe that we are nearing the end of a difficult
transition period," William T. Monahan, chairman and interim
chief executive officer, said.  "The fundamentals of our
business remain strong, and we are pleased with our future
outlook as the result of the actions we have taken, and will
continue to take, to enhance shareholder value."

The company reiterated that it is on track to file its Form 10-Q
for the second quarter by Oct. 20, 2006, and to be current with
its filings once it files its third-quarter report during the
fourth quarter.

The company also noted that its previously reported commitments
for backstop financing facilities totaling US$2.855 billion from
Citigroup Global Markets Inc. have been extended to Oct. 31,
2006.  In the event that Novelis is not able to file its
quarterly report on Form 10-Q for the second quarter of 2006 by
the deadlines defined in the notice of default and in its Credit
Agreement waiver, the backstop financing facilities would
provide the funding necessary to retire the Senior Notes and, if
needed, replace the Company's existing term loan and revolving
credit facility.

In addition, Novelis announced that it will be requesting an
amendment to its US$1.8 billion Credit Agreement to modify
certain financial covenants and other provisions contained in
the Agreement. Specifically, Novelis will request that the
lenders under the Credit Agreement temporarily relax the
interest coverage covenant, leverage ratio covenant, and fixed
charges covenant among other things.

                        About Novelis Inc.

Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  In Europe, the company maintains operations in
France, Germany, Luxembourg, Switzerland and the United Kingdom.
Through its advanced production capabilities, the company
supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 19,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for Novelis Inc. in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the North American
Metals & Mining sectors.

As reported in TCR-Europe on Oct. 13, Fitch initiated the
ratings for Novelis Inc. and its subsidiary Novelis Corp.:

Novelis Inc.

   -- Issuer Default Rating B;
   -- Senior secured credit facility BB/Recovery Rating 1; and
   -- Senior unsecured notes B/RR4;

Novelis Corp.

   -- Issuer Default Rating B; and
   -- Senior secured credit facility BB/RR1.


=========
M A L T A
=========


LE MERIDIEN: Mediterranean Hotel Up for Sale
--------------------------------------------
Christie Group Plc is selling Le Meridien Hotels Ltd.,
Mediterranean Hotels located in Valletta, Malta.

The assets for sale features:

   -- 136 air conditioned bedrooms and suites;

   -- substantial conference, banqueting and meeting facilities;

   -- extensive landscaped gardens and grounds;

   -- further development potential, subject to the necessary
      consents;

   -- available with the benefit of a management contract under
      the Le Meridien brand or alternatively on an unencumbered
      free of management contract basis

   -- 2005 total revenue of EUR6.2 million; and

   -- substantial offers in excess of EUR10 million invited on a
      share sale basis.

Inquiries can be addressed to:

         Jeremy Jones
         Christies Group Plc
         39 Victoria Street
         London SW1H 0EU
         United Kingdom
         Tel: +44 (0) 20 7227 0755
              +44 (0) 20 7227 0792
         E-mail: jeremy.jones@christie.com

Christie Group Plc -- http://www.christiecorporate.com/--
offers a portfolio of professional business services covering
surveying, valuation, agency, consultancy, finance, insurance,
stock control and business software solutions.


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


ASHLAND 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 for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its Ba1 Corporate Family Rating for
Ashland Inc.

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

                                          Projected
                        POD      LGD      Loss-Given
   Debt Issue           Rating   Rating   Default
   ----------           -------  -------  ----------
   Sr Unsec MTN
   due through 2019     Ba1      LGD4     60%

   8.8% Debentures
   due 2012             Ba1      LGD4     60%

   6.86% MTN Series H
   due 2009             Ba1      LGD4     60%

   6.625% Sr Notes
   due 2008             Ba1      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 our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Covington, Kentucky, Ashland, Inc. --
http://www.ashland.com/-- manufactures specialty chemicals and
gelcoats, metal-casting consumables and adhesives.  Its products
are used by the building and construction, packaging and
converting, transportation, marine and metal-casting industries.
Ashland Distribution buys and resells chemicals, plastics and
resins in North America and plastics in Europe.  In Europe,
Ashland maintains operations in The Netherlands.


CORUS GROUP: Companhia Siderurgica Nacional Eyes Counteroffer
-------------------------------------------------------------
Companhia Siderurgica Nacional S.A. plans to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc,
reports BBC citing the Sunday Times as its source.

According to the Sunday Times, CSN has hired investment bank
Lazards to advise on a potential deal.

Thyssenkrupp Steel, meanwhile, dismissed reports it was also
planning to launch an offer for Corus.

As reported in the TCR-Europe yesterday, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus Share, subject
to shareholder approval.

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.

Tata, however, did not rule job cuts at Corus should it succeed
in taking over the Anglo-Dutch steelmaker.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                       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.


CORUS GROUP: Fitch Changes Rating Watch to Negative on Tata Deal
----------------------------------------------------------------
Fitch Ratings changed the Rating Watch on Corus Group PLC's
Issuer Default and senior unsecured BB- and Short-term B ratings
to Negative from Positive.  This follows the recommendation by
the CS Board of an offer from India-based Tata Steel Ltd. valued
at GBP4.3 billion.

The RWN also applies to these debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

The RWN encompasses the possibilities that the CS's ratings
could either be downgraded or affirmed at the current levels.
The RWN reflects further clarity on the financing structure for
the transaction, in particular that the GBP3.1 billion of debt
raised by the acquisition vehicle - Tata Steel U.K. Limited -
will not benefit from any credit support provided by Tata Steel,
its parent entity, but will be dependant on CS's stand alone
cash flows for debt service.

In this regard Fitch notes that pro-forma leverage of 4.9x based
on CS's LTM Q2 2006 continuing EBITDA would be indicative of a
rating in the B rating category.

Fitch continues to view that a tie-up with Tata Steel would be
positive for CS's operational profile.  However, given that CS
will continue to operate as a standalone company it is currently
unclear to what extent operational benefits, such as the ability
to access cheap semi-finished steel from Tata Steel's Indian
operations, will be reflected in an improvement in its financial
metrics.

Fitch will resolve the Rating Watch following publication of
CS's 2006 results, further details on the level of synergies and
operational benefits that could accrue under the transaction,
and the closure of the deal.


FIREARMS TRAINING: Selling Outstanding Shares to Meggitt-USA
------------------------------------------------------------
Firearms Training Systems Inc. has sold all of its outstanding
shares to Meggitt-USA Inc., an indirect U.S. subsidiary of
Meggitt PLC.

Holders of the Company's Class A Common Stock received cash
in the amount of US$1.08 per share owned immediately before the
effective time of the merger and holders of FATS' Series C
Preferred Stock received cash in the amount equal to the sum of
the liquidation preferences of such preferred stock plus accrued
and any unpaid dividends on such shares to the extent not
previously added to the liquidation preference, for each
outstanding share owned immediately before the effective time
of the merger.

All holders of stock options outstanding at the closing received
cash payments equal to the sum of the difference between the
per-share option exercise prices of their respective options and
US$1.08 for each share subject to an option.

Firearms Training Systems, Inc. -- http://www.fatsinc.com/--
and its subsidiary, FATS, Inc., provides fully-integrated,
simulated training to professional military and law enforcement
personnel.  Utilizing quality engineered simulated weapons,
FATS' state-of-the-art virtual training solutions offer
judgmental, tactical and combined arms experiences.  The company
serves U.S. and international customers from headquarters in
Suwanee, Georgia, with branch offices in Australia, Canada,
Netherlands and United Kingdom.  The ISO-certified company
celebrated its 20th anniversary in 2004.

                         *     *     *

At June 30, 2006, Firearms Training Systems, Inc.'s balance
sheet showed a US$24,931,000 stockholders' deficit compared to a
$25,702,000 deficit at Mar. 31, 2006.


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


BRE BANK: Fitch Affirms Individual Rating at D
----------------------------------------------
Fitch Ratings affirmed Poland-based BRE Bank's ratings at Issuer
Default A-, Short-term F2, Support 1, and Individual D.  The
Outlook remains Stable.

BRE Bank's financial performance has seen further improvement in
2006.  Strong growth in fees and commissions as well as FX
income has helped grow and diversify BRE's revenues.  Retail
banking continued to gain market share, but good results from
the core investment banking and corporate divisions are driving
profitability.  Like other Polish banks, BRE was hit by bond
market turbulence in H106, but its losses were comparatively
modest.

Loan growth remains robust, particularly in retail, but it has
also picked up on a revival in the corporate market.  "BRE is
well placed to benefit from an apparent revival in demand for
corporate credit; however, this is likely to put pressure on
already weak capital," Chris Birney, Director with Fitch's
Financial Institutions team disclosed.  "Internal capital
generation may not be sufficient to finance this growth."

Asset quality continues to improve.  Impaired loans net of
reserves were a small 2.6% of end-H106 equity.  Like most Polish
banks, BRE offers Swiss franc mortgages, which Fitch considers
higher risk.  With a growing retail mortgage portfolio and the
addition of BRE Hipoteczny's portfolio of corporate mortgages,
real estate lending now represents 20% of BRE's corporate and
86% of its retail loan book.

The Issuer Default, Short-term and Support ratings are based on
the high potential for support from BRE's 70.3% shareholder,
Commerzbank in case of need.  Commerzbank includes BRE in the
list of subsidiaries backed by its Patronatserklaerung published
in its 2005 annual report.  In Fitch's view, Commerzbank's
oversight of BRE Bank has strengthened in recent years and BRE's
risk management functions have become increasingly aligned with
those of its parent.

Commerzbank is the smallest of Germany's "Big Four" banks.  At
end-2005, it employed 33,056 staff and had equity of EUR13.7
billion.

BRE is Poland's fifth largest bank by assets and is based in
Warsaw.  The bank operates through 24 corporate branches, 98
retail branches and 47 retail kiosks.  BRE group has 4,527 full
time employees.


GETIN BANK: Fitch Assigns Issuer Default Rating at BB
-----------------------------------------------------
Fitch Ratings assigned Poland-based Getin Bank S.A. ratings of
Issuer Default BB; Short-term B; Individual D; and Support 5.
The Outlook is Stable on the Issuer Default rating.

"Getin has rapidly established itself as a significant player on
the Polish retail banking market" Chris Birney, Director at
Fitch's Financial Institutions Group disclosed.

"We are witnessing a transformation of Getin Bank from a
regional player into a bank with a national presence.  However,
the quick succession of acquisitions, combined with rapid
growth, means operational risk is relatively high," he added.

The Issuer Default, Short-term and Individual ratings reflect
Getin Bank's operational risks, short track record, relatively
small size, as well as moderate liquidity and capitalization.
They also reflect the bank's success in building a profitable
franchise, its high cost-efficiency and small appetite for
market risk.

Downside risk to Getin Bank's ratings could result from evidence
of mismanaged growth, a weakening of asset quality caused by a
downturn in the housing market or PLN depreciation, or a
significant decline in capitalization or liquidity.

The bank's rating could be upgraded if Getin Bank continues to
increase the size and strength of its franchise and demonstrates
a longer track record of successful credit risk management.

Getin Bank is 99.3%-owned by Getin Holding, a private-owned
integrated financial group quoted on the Warsaw Stock Exchange.
At end-H106 the banks' total assets amounted to PLN8.6 billion
(US$2.7bn).

The bank's history dates back to 2004 when Getin Holding took
over Gornoslaski Bank Gospodarczy and renamed it to Getin Bank
S.A.  The bank expanded through further acquisitions, including
Bank Przemyslowy in December 2004 and Wschodni Bank Cukrownictwa
in March 2006.

Getin Bank's business model is based on targeting the rapidly
growing Polish retail banking market and leveraging third-party
distribution channels.  At end-H106 the loan book was split as
follows: mortgage loans, auto loans, consumer lending, and
business banking.


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


COMPANHIA SIDERURGICA: Eyes Counteroffer for Corus Group
--------------------------------------------------------
Companhia Siderurgica Nacional S.A. plans to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc,
reports BBC citing the Sunday Times as its source.

According to the Sunday Times, CSN has hired investment bank
Lazards to advise on a potential deal.

Thyssenkrupp Steel, meanwhile, dismissed reports it was also
planning to launch an offer for Corus.

As reported in the TCR-Europe yesterday, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus Share, subject
to shareholder approval.

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.

Tata, however, did not rule job cuts at Corus should it succeed
in taking over the Anglo-Dutch steelmaker.

                        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.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  The outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


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


ARDATOVSKIY OJSC: Court Names S. Salnik as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Mordoviya Republic appointed Mr. S.
Salnik as Insolvency Manager for OJSC Butter-Making Plant
Ardatovskiy.  He can be reached at:

         S. Salnik
         Post User Box 1068
         432026 Ulyanovsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A39-369/06-5/7.

The Arbitration Court of Mordoviya Republic is located at:

         Kommunisticheskaya Str. 33
         Saransk
         Mordoviya Republic
         Russia

The Debtor can be reached at:

         OJSC Butter-Making Plant Ardatovskiy
         Rabochaya Str. 79
         Ardatov
         431860 Mordoviya Republic
         Russia


ARZAMASSKAYA CONFECTIONARY: Names V. Veselov to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
V. Veselov as Insolvency Manager for CJSC Arzamasskaya
Confectionary (TIN 5202008280).  He can be reached at:

         V. Veselov
         Office 106
         Strelka Str. 4a
         603086 Nizhniy Novgorod Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A43-15769/2005 33-270.

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         CJSC Arzamasskaya Confectionary
         Berezina Str. 3
         Arzamas
         Nizhniy Novgorod Region
         Russia


ASPHALT CONCRETE: Penza Bankruptcy Hearing Slated for Oct. 26
-------------------------------------------------------------
The Arbitration Court of Penza Region will convene on Oct. 26 to
hear the bankruptcy supervision procedure on LLC Asphalt
Concrete Factory.  The case is docketed under Case No.
A49-2225/2006-2220b/3.

The Temporary Insolvency Manager is:

         A. Makeev
         Apartment 86
         Ladozhskaya Str. 35
         Penza Region
         Russia

The Arbitration Court of Penza Region is located at:

         Belinskogo Str. 2
         440600 Penza Region
         Russia

The Debtor can be reached at:

         LLC Asphalt Concrete Factory
         Ryaboa Str. 3
         Penza Region
         Russia


BUILDER CJSC: Court Names A. Ptashnikov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. A.
Ptashnikov as Insolvency Manager for CJSC Builder (TIN
0274021891).  He can be reached at:

         A. Ptashnikov
         Apartment 33
         Entuziastov Str. 4
         Ufa
         450096 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A07-15632/06-G-ADM.

The Arbitration Court of Bashkortostan Republic is located at:

         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan Republic
         Russia

The Debtor can be reached at:

         CJSC Builder
         Chernyshevskogo Str. 95
         Ufa
         450000 Bashkortostan Republic
         Russia


CHASTINSKIY CHEESE: Court Names I. Korovnikov to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Perm Region appointed Mr. I. Korovnikov
as Insolvency Manager for LLC Chastinskiy Cheese Making Plant.
He can be reached at:

         I. Korovnikov
         G. Zvezda Str. 13
         614045 Perm Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A50-6447/2006-B.

The Arbitration Court of Perm Region is located at:

         Lunacharskogo Str. 3
         Perm Region
         Russia

The Debtor can be reached at:

         LLC Chastinskiy Cheese Making Plant
         Sovetskaya Str. 63
         Chastye
         617170 Perm Region
         Russia


DALI CAPITAL: Fitch Puts B+/RR4 Ratings on RUR2 Billion Issue
-------------------------------------------------------------
Fitch Ratings assigned Dali Capital PLC's further issue of RUB2
billion Series 23 fixed-rate notes ratings of Long-term B+ and
Recovery RR4.  The Long-term rating of the issue is placed on
Rating Watch Positive.

The notes are to finance an unsecured loan made by Barclays Bank
PLC to Russia's Rosbank, rated foreign currency and local
currency Issuer Default B+/RWP, Short-term B/RWP, Individual D,
Support 4/RWP, and National Long-term A-/RWP.

The further notes form a single series with the original Series
23 RUB5 billion notes due September 2009 (rated B+/RWP).  Dali
will only pay noteholders principal and interest received by
Barclays from Rosbank.

Rosbank was founded in 1992 and ranks among the top 10 banks in
Russia by total assets.  About 70% of its shares are currently
controlled by Interros, one of Russia's largest financial
industrial groups, with interests in the metals, power-machine
building, agricultural and insurance sectors.

Societe Generale holds a stake of 20% minus 1 share in the bank
and has acquired from Interros a call option to further increase
its stake to 50% plus one share.  The RWP on Rosbank's ratings,
and hence the notes, reflects the greater probability of support
for Rosbank being forthcoming in case of need if Societe
Generale becomes the bank's majority owner.


EVRAZ GROUP: Conflict of Interest Prompts Bruno Bolfo to Resign
---------------------------------------------------------------
Evraz Group S.A. disclosed that Bruno Bolfo has tendered his
resignation as a member of the Board of Directors of the
Company.  He will also cease to be a member of the Company's
Audit Committee.

On Oct. 20, Mr. Bolfo notified the Company of his resignation
from the Board effective immediately due to a conflict of
interests arising out of a proposed joint venture agreement
between Duferco, a steel trader and producer, and steel making
company NLMK.  Mr. Bolfo is the owner and Chairman of the Board
of Directors of Duferco.

Bruno Bolfo had been a member of Evraz's Board since Aug. 9
following his election by the extraordinary general meeting of
shareholders in July 2006.

                         About Evraz

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

                        *     *     *

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

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

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


EVRAZ GROUP: Strong Performance Spurs Moody's to Change Outlook
---------------------------------------------------------------
Moody's Investors Service changed the outlook on all ratings
assigned to Evraz Group S.A. to positive from stable.

The change in the outlook for positive reflects EVRAZ's
continuous robust performance in 2006 and Moody's expectation
that the Russian steel market will remain resilient and will
continue to support financial performance of the group.  In 1H
2006, EVRAZ reported strong USD 3.7 billion in Revenues and
US$1.1 billion in EBITDA, while cash flow generation improved
and liquidity remained satisfactory.

The positive outlook also reflects Moody's expectation that
EVRAZ should sustain its strong financial metrics and maintain
cash flow cushion to service the increased absolute level of
debt through the cycle, particularly as its substantial CAPEX
programme in Russia is at its closing stages.

Taking into account recent changes in the ownership of the
group, Moody's will monitor any potential developments to
EVRAZ's corporate profile, in particular changes to corporate
and financial policies before considering any future upward
rating actions.

Ratings affected:

EVRAZ Group S.A.

    * Ba3 Corporate Family Ratings Ba3

    * B2 Senior Unsecured rating on global bonds

EVRAZ Securities S.A

    * B1 Senior guaranteed rating on eurobonds

EVRAZ group is Russia's largest vertically integrated steel
company (by volume and assets) that produced 13.9 m tones of
crude steel in 2005.  EVRAZ principal assets are three steel
plants and three iron ore mining and processing facilities, as
well as two coal mines and logistics and trading assets.


IZHEVSKIY FACTORY: Court Names V. Nagovitsyn to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Udmurtiya Republic appointed Mr. V.
Nagovitsyn as Insolvency Manager for OJSC Izhevskiy Factory of
Building Ceramics (TIN 1831059260).  He can be reached at:

         V. Nagovitsyn
         Post User Box 972
         Izhevsk
         426069 Udmurtiya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A71-23/2006-G26.

The Arbitration Court of Udmurtiya Republic is located at:

         Lomonosova Str. 5
         Izhevsk
         426004 Udmurtiya Republic
         Russia

The Debtor can be reached at:

         OJSC Izhevskiy Factory Of Building Ceramics
         Kholmogorova Str. 11
         Izhevsk
         426011 Udmurtiya Republic
         Russia


KHOSHEVSKAYA NIVA: Court Names I. Zolin as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
I. Zolin as Insolvency Manager for OJSC Khoshevskaya Niva.  He
can be reached at:

         I. Zolin
         Post User Box 166
         603043 Nizhniy Novgorod Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A43-4186/2006-33-30.

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         OJSC Khoshevskaya Niva
         Khvoshevka
         Bogorodskiy Region
         Nizhniy Novgorod Region
         Russia


KOVROVETS: Court Names V. Pronyushkina as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Vladimir Region appointed Ms. V.
Pronyushkina as Insolvency Manager for CJSC Engineering Plant
Kovrovets (TIN 330505756).  She can be reached at:

         V. Pronyushkina
         Office 302
         Building 15
         Nizhegorodskaya Str. 32
         109029 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A11-9607/2006-K1-439B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Arbitration Court of Vladimir Region is located at:

         Oktyabrskiy Pr. 14
         600025 Vladimir Region
         Russia

The Debtor can be reached at:

         CJSC Engineering Plant Kovrovets
         Lopatina Str. 5 1A
         Kovrov
         601900 Vladimir Region
         Russia


LUKOIL OAO: Unveils Strategic Development Plan for 2007-2016
------------------------------------------------------------
The President of OAO LUKOIL, Vagit Alekperov, presented the main
principles of the Company's strategic development program for
2007-2016 to the business community.

The strategy of accelerated growth will place LUKOIL among the
largest global energy companies.  The main aim is to achieve
increasing growth rates and to maximize shareholder value.

LUKOIL plans to practically double its main industrial
indicators.  The average annual rate of growth of hydrocarbon
production is scheduled to increase by almost 50% to 6.7%
(compared with the previous strategic development program),
reaching a daily production level of four million boe.

The Company's investment program will total US$78 billion,
assuming the conservative scenario, or US$112 billion including
acquisitions, assuming the optimistic scenario.  In the latter
case acquisitions will represent nearly a third of total
investments.  The proportion between investments in exploration
& production and in refining & marketing will be 70:30.  Capital
expenditures per barrel of production will remain lower than
average level of main international companies.

LUKOIL's biggest investment projects in Russia are development
of oil & gas provinces in the north of the European part of the
country and on the shelf of the Caspian Sea.  Daily production
of hydrocarbons by LUKOIL Group will increase to 3.5-4.0 million
boe, depending on the scenario.  The share of gas in overall
hydrocarbon production volumes will increase from 6% in 2005 to
33%.

The Company plans to significantly increase its oil refining
capacities in the course of the decade, both in Russia and
abroad.  LUKOIL expects to increase its daily oil refining
capacities by more than 70% to two million barrels by expansion
of existing refineries and acquisition of new ones.

As a result the proportion between volumes of oil refining and
production will become more balanced and will reach 70%.
Geographical diversification will increase in favor of refining
outside Russia: the share of refining in Russia will decrease
from current 70% to 56%.  Achievement of this task will increase
stability of Company cash flows, making them less vulnerable to
price volatility on the crude oil market, and increase
profitability of the Company's business.

LUKOIL is pressing ahead with modernization of its refineries in
order to meet rapid growth of demand for high-quality,
environmentally safe petroleum products.  The main goal in this
context is to increase added value of outputs.  LUKOIL expects
to produce only high-octane gasoline by 2016, when all of the
Company's production will meet the Euro-5 standard.  LUKOIL
refinery complexity will double by that time, enabling LUKOIL to
produce twice as much high-quality motor fuel from the same
amount of crude oil.

Achievement of targets in the strategic development program
should increase the volume and quality of cash flows, generated
by the Company, making them less vulnerable to price volatility
on the crude oil market.  Even using a conservative estimate of
long-term international oil prices in a range of US$35-40 per
barrel, the potential for LUKOIL value growth will rise by 2 -
2.5 times.

The Company's financial policy will remain conservative with
debt-to-capital ratio below 30%.  This will allow the Company to
carry out a flexible financial policy and raise additional
funding in an efficient manner, both for implementation of
large-scale projects and for acquisition of new assets.  One of
LUKOIL's strategic tasks is to ensure that ROACE is no lower
than 15-17%.

The Company is careful to ensure avoidance of harm to people and
the environment in all aspects of its industrial activities.
LUKOIL is currently insured for environmental risks up to a sum
of US$15 billion.  LUKOIL's new ecology program plans spending
of US$1.7 billion in the period up to 2010.

                        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.


NEVERKINSKIY BUTTER: Court Names L. Bychkova to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Penza Region appointed Ms. L. Bychkova
as Insolvency Manager for OJSC Neverkinskiy Butter Factory.
She can be reached at:

         L. Bychkova
         Shmidta Str. 4
         440039 Penza Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A49-4226/2006-440b/10.

The Arbitration Court of Penza Region is located at:

         Belinskogo Str. 2
         440600 Penza Region
         Russia

The Debtor can be reached at:

         OJSC Neverkinskiy Butter Factory
         Kirova Str. 96
         Neverkino
         Penza Region
         Russia


NOVOLIKEEVSKOYE LLC: Bankruptcy Hearing Slated for Jan. 16
----------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region will convene at
1:15 p.m. on Jan. 16, 2007, to hear the bankruptcy supervision
procedure on LLC Novolikeevskoye.  The case is docketed under
Case No. A43-20104/2006-33-199.

The Temporary Insolvency Manager is:

         O. Vdovin
         Post User Box 5
         Kstovo
         607663 Nizhniy Novgorod Region
         Russia

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         LLC Novolikeevskoye
         Novolikeevo
         Kstovskiy Region
         607686 Nizhniy Novgorod Region
         Russia


PSB FINANCE: Fitch Places B+/RR4 Ratings to US$125-Mln Issue
------------------------------------------------------------
Fitch Ratings assigned PSB Finance S.A.'s US$125 million 8.75%
senior notes due October 2011 final ratings of Long-term B+ and
Recovery RR4.  The issue is to be used solely for financing a
loan to Russia-based JSC Promsvyazbank, rated Issuer Default
rating B+ with Stable Outlook, Short-term B, Individual D, and
Support 5.

Fitch has also assigned PSB Finance S.A.'s US$200 million 9.675%
subordinated notes due May 2012 final ratings of Long-term B-
and Recovery RR6.  The proceeds are to be used for redeeming the
outstanding principal of US$45 million privately placed notes,
which financed an existing subordinated loan to PSB and for
financing a new loan to PSB.

In case the new loan is not accepted by the Russian Central Bank
as eligible for inclusion as Tier 2 Capital within 60 days after
the loan agreement date, PSB has the right to prepay the amount
in whole.

PSB is one of the six largest Russian privately held banks.  It
is majority-owned by the Ananiev brothers, who are well-
connected businessmen.  Germany's Commerzbank has received
regulators' preliminary approval for the acquisition of a 15%
stake in PSB and may seek to gain control over the bank in the
medium term.

PSB mainly serves large and mid-sized corporate clients.  It has
built a network of over 120 points of sale across Russia to
facilitate an ongoing regional diversification and franchise
expansion into the retail and SME segments.


RYB-KHOZ MOZHAYSKIY: Bankruptcy Hearing Slated for Dec. 21
----------------------------------------------------------
The Arbitration Court of Moscow Region will convene at 10:45
a.m. on Dec. 21 to hear the bankruptcy supervision procedure on
OJSC Ryb-Khoz Mozhayskiy (TIN 5028022035).  The case is docketed
under Case No. A41-K2-18831/06.

The Temporary Insolvency Manager is:

         N. Kopytiva
         Building 1
         Teplyj Stan 11
         117465 Moscow Region
         Russia

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Ryb-Khoz Mozhayskiy
         Bolshie Parfenki 22
         Mozhayskiy Region
         143231 Moscow Region
         Russia


SEL-KHOZ-TEKHNIKA: Court Names A. Baskakov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Saratov Region appointed Mr. A.
Baskakov as Insolvency Manager for OJSC Sel-Khoz-Tekhnika (TIN
6408000110).  He can be reached at:

         A. Baskakov
         Ak. Zhuk Str. 27
         413853 Saratov region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A57-563B/06-31.

The Arbitration Court of Saratov Region is located at:

         Babushkin Vvoz 1
         Saratov Region
         Russia

The Debtor can be reached at:

         OJSC Sel-Khoz-Tekhnika
         Privolskaya St.
         Volsk
         Saratov Region
         Russia


SHIGONY-SEL-KHOZ-TRANS: Court Starts Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Samara Region commenced bankruptcy
supervision procedure on OJSC Shigony-Sel-Khoz-Trans.  The case
is docketed under Case No. A55-9386/06-40.

The Temporary Insolvency Manager is:

         I. Ponomarev
         Shmidta Str. 4
         440039 Penza Region
         Russia

The Debtor can be reached at:

         OJSC Shigony-Sel-Khoz-Trans
         Shigony
         Shigonskiy Region
         Samara Region
         Russia


STILLWATER MINING: Moody's Assigns Loss-Given-Default Rating
------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Stillwater Mining Company.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100 Million
   Term Loan
   Facility due 2010      B1       B1      LGD3       43%

   US$40 Million
   Revolving Credit
   Facility due 2012      B1       B1      LGD3       43%

   US$30 Million
   8% State of
   Montana Revenue
   Bonds due 2020         B2       B3      LGD6       93%

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%).

Stillwater Mining Company -- http://www.stillwatermining.com/--
produces palladium and platinum and platinum group metals
outside of South Africa and Russia.  The Company's shares are
traded on the New York Stock Exchange under the symbol SWC.


TRANS-TOUR-SERVICE: Court Names V. Veselov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Primorye Region appointed Mr. V.
Veselov as Insolvency Manager for CJSC Trans-Tour-Service.  He
can be reached at:

         V. Veselov
         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.
A43-15769/2005, 33-270.

The Debtor can be reached at:

         CJSC Trans-Tour-Service
         Apartment 23
         Shilkinskaya Str. 6
         Vladivostok Region
         Russia


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


TDA IBERCAJA: Moody's Rates EUR7-Mln Series E Notes at Ba1
----------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
seven series of Bonos de Titulizacion de Activos
(securitization bonds) to be issued by TdA Ibercaja 4 Fondo de
Titulizacion de Activos, a Spanish asset securitization fund
that has been created by Titulizacion de Activos, S.G.F.T, S.A.:

   -- EUR250 million Series A1 notes: Aaa;
   -- EUR819.4 million Series A2 notes: Aaa;
   -- EUR270.4 million Series A3PAC notes: Aaa;
   -- EUR14 million Series B notes: Aa1;
   -- EUR28 million Series C notes: A1;
   -- EUR11.2 million Series D notes: Baa1; and
   -- EUR7 million Series E notes: Ba1.

Moody's definitive ratings address the expected loss posed to
investors by the legal final maturity.  The rating agency
believes that the structure of the TdA Ibercaja 4 notes allows
for timely payment of interest and ultimate payment of principal
at par, on or before the final legal maturity date and not at
any other expected maturity date.  The ratings do not address
the full redemption of the notes on the expected maturity date.
Moody's ratings address only the credit risks associated with
the transaction. Other non-credit risks have not been addressed,
but may have a significant effect on yield to investors.

According to Moody's, this deal benefits from strong features,
including:

   -- the swap agreements, which guarantees 65 bppa
      excess spread;

   -- a reserve fund that is fully funded upfront to cover
      a potential shortfall in interest and principal;

   -- an 18-month artificial write-off mechanism;

   -- the securing of 100% of loans by residential
      mortgages; and

   -- the good performance data on previous Ibercaja deals.

However, Moody's notes that the deal also has weaknesses,
including:

   -- the deferral of interest payments on each of Series B,
      C, D and E increases the expected loss on
      these subordinated series; and

   -- pro-rata amortization of the B, C, D and E Series of
      notes leads to reduced credit enhancement of the
      senior series in absolute terms.  These increased
      risks were reflected in Moody's Credit
      Enhancement calculation.

The products being securitized are first-lien mortgage loans
granted to individuals (all of whom will use these loans to
acquire or refurbish properties located in Spain), originated by
Ibercaja, which will continue to service them.

As of Sept. 14, the provisional portfolio comprised 14,877 loans
for a total amount of EUR1,550,004,113.  The original weighted
average loan-to-value (WALTV) is 74.86%.  The current WALTV is
67.72%. The average loan size is EUR104,188.  The loans were
originated between 1997 and 2006, with a weighted average
seasoning of 27.24 months.  The pool is concentrated in the
Madrid (33%), Aragon (20%) and Catalonia (13%).

All the properties on which the mortgage security has been
granted are covered by property damage insurance and fire
insurance.

To hedge the potential mismatch risk derived from the different
index reference rates on the assets side and the notes side, or
the risk derived from any amendment in the terms of the mortgage
agreements, the Fondo will enter into a swap agreement with
Ibercaja.

Moody's bases its ratings on:

   -- an evaluation of the underlying portfolio of
      mortgage loans securing the structure, and

   -- the transaction's structural protections, which
      include the subordination, the strength of the
      cash flows (including the reserve fund) and any
      excess spread available to cover losses.

Moody's assigned provisional ratings to this transaction on
Oct. 9.


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


GRAFTECH INT'L: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its B1 Corporate Family Rating for
Graftech International Ltd.

Moody's also affirmed and revised its probability-of-default
ratings and assigned loss-given-default ratings on these two
bond issues and a loan facility:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$215 millin
   Gtd Sr Sec
   Revolving
   Credit Facility
   due 2010             Ba3      Ba1      LGD1     7%

   US$435 million
   10.25%
   Gtd Sr Unsec
   Global Notes
   due 2012             B2       B2       LGD4     62%

   US$225 million
   1.625% Gtd
   Sr Unsec Conv
   Debentures
   due 2024             B2       B2       LGD4     62%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Parma, Ohio, Graftech International Ltd.--
http://www.graftech.com/GrafTech/-- manufactures a range of
graphite electrodes, products essential to the production of
electric arc furnace (EAF) steel and various other ferrous and
non-ferrous metals.  The Company also manufactures natural
graphite products enabling thermal management solutions for the
electronics industry, and fuel cell solutions for the
transportation and power generation industries.  The products,
which include carbon and graphite electrodes, carbon and
graphite cathode blocks, advanced carbon and graphite materials,
and flexible graphite, are manufactured on four continents and
sold in over 70 countries around the world.  In Europe, Graftech
maintains operations facilities and/or sales offices in Russia,
France, Spain, Italy and Switzerland.


HCA INC: Shareholders' Special Meeting Set for November 16
----------------------------------------------------------
HCA Inc. has established a record date and special meeting date
for its shareholders to consider and vote upon the proposal to
adopt the previously announced merger agreement providing for
the acquisition of HCA by an investor group led by Bain Capital,
Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private
Equity and HCA founder Dr. Thomas F. Frist, Jr.

HCA shareholders of record at the close of business on Oct. 6,
2006, will be entitled to notice of the special meeting and to
vote on the proposal.  The special meeting will be held on
Nov. 16, 2006 at 11:00 a.m., local time, at HCA's executive
offices located at One Park Plaza, Nashville, Tennessee 37203.

Headquartered in Nashville, Tennessee, HCA (Hospital Corporation
of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/--
is a healthcare services provider, composed of locally managed
facilities that include approximately 182 hospitals and 94
outpatient surgery centers in 22 states, England and
Switzerland.  At its founding in 1968, HCA was one of the
nation's first hospital companies.


HCA INC: US$33-Bln Merger Deal Cues S&P's B+ Corp. Debt Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its existing ratings
on Nashville, Tennessee-based HCA Inc.  The corporate credit
rating was lowered to 'B+' from 'BB+'.  The ratings were removed
from CreditWatch, where they were placed with negative
implications July 24, 2006, following the announcement that the
company had entered into a merger agreement with a private
equity consortium; the transaction is valued at about
US$33 billion.  The rating outlook is negative.

"The three-notch downgrade of the corporate credit rating
reflects our lower rating opinion of HCA assuming that its
pending LBO is completed, and is financed by the US$22.5 billion
of proposed senior secured debt currently being considered by
investors," explained Standard & Poor's credit analyst David
Peknay.

Also, Standard & Poor's assigned its loan and recovery ratings
to HCA's proposed US$16.8 billion senior secured credit
facilities and US$5.7 billion second-lien notes.  The first-lien
credit facilities were rated 'BB' with a recovery rating of '1',
indicating a high expectation for full recovery of principal in
the event of a payment default.  The second-lien notes were
rated 'BB-' with a recovery rating of '1', also indicating a
high expectation for full recovery of principal in the event of
a default.  The ratings are subject to revision if the size or
terms of the deal change.

In addition, S&P lowered the rating on HCA's senior unsecured
notes by five notches, to 'B-' from 'BB+'.  The rating on the
unsecured notes is now two notches below the 'B+' corporate
credit rating -- in line with Standard & Poor's criteria.
Although the notes are considered senior, the company will now
have a sizable amount of priority debt (primarily secured bank
debt and capitalized operating leases).  Because of the
overwhelming magnitude of priority debt in the capital structure
(now totaling about 100% of total eligible assets -- far greater
than the 30% threshold in our criteria), the unsecured notes are
considered materially disadvantaged.

The low-speculative grade rating on HCA reflects the company's
significant debt leverage as a result of its pending LBO, as
well as key industry risks, such as uncertain third-party
reimbursement, rising bad debt, and competitive forces that have
hurt patient volume.  HCA is the largest U.S. owner and operator
of acute health care facilities, with a large portfolio of 172
hospitals and 95 ambulatory surgery centers in 21 U.S. states,
the U.K., and Switzerland.


REYNOLDS & REYNOLDS: S&P Affirms Loan and Recovery Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its loan and
recovery ratings on Dayton, Ohio-based Reynolds & Reynolds Co.'s
first-lien bank facilities, which consist of a six-year,
US$75 million revolving credit facility, and a six-year,
US$1.640 billion term loan, which was increased from US$1.485
billion.  The facilities are rated 'BB-', with a recovery rating
of '1', indicating the expectation for full recovery of
principal by creditors in the event of a payment default.

The second-lien facility, which consists of a seven-year,
US$520 million term loan, was notched down to 'B-' from 'B', and
the recovery rating was revised to '5' from '3', reflecting
lower recovery prospects driven by the increase in higher
priority debt within the capital structure.  The '5' recovery
rating reflects our expectation of negligible (0%-25%) recovery
of principal by creditors in the event of a payment default.

The third-lien facility has been downsized to US$250 million
from US$405 million, and the rating was affirmed at 'B-' with a
recovery rating of '5', also reflecting our expectation of
negligible (0%-25%) recovery of principal by creditors in the
event of a payment default.

Proceeds from the facilities will be used to fund the
acquisition of Reynolds & Reynolds by privately held and unrated
Universal Computer Systems for about US$2.8 billion, including
the assumption of the company's debt.  The merged company will
operate under the Reynolds & Reynolds name.

                         Ratings List
                    Reynolds & Reynolds Co.

Ratings Affirmed

  Corporate credit rating          B+/Positive/--
  First-lien facilities            BB- (Recovery Rating: 1)
  Third-lien facility              B-  (Recovery Rating: 5)

Ratings Lowered
                        To                      From
                        --                      ----
  Second-lien facility  B-                      B
                       (Recovery Rating: 5) (Recovery Rating: 3)


UNIVERSAL COMPRESSION: Moody's Rates New Credit Facility at Ba1
---------------------------------------------------------------
Moody's Investors Service assigned a Ba1, LGD3 (36%) rating to
Universal Compression, Inc.'s US$500 million senior secured bank
credit facility.  At the same time, Moody's affirmed Universal's
Ba2 Corporate Family Rating, its Ba2 Probability of Default
Rating and its B1, LGD5 (88%) ratings on its US$175 million 7 ¼%
Senior Notes.  The outlook remains stable.

Universal Compression Inc. is a wholly owned subsidiary of
Universal Compression Holdings Inc.  Proceeds from the new
credit facility are being used to refinance Universal's existing
senior secured revolver and senior secured term loan.  Moody's
will withdraw the ratings on the existing secured credit
facilities once they have been repaid.

Pete Speer, Moody's Vice President/Senior Analyst commented,
"While Moody's has affirmed the stable outlook, the recent IPO
of Universal Compression Partners creates uncertainties
regarding the future capital structure and leverage profile of
the combined enterprise which limits Universal's positive credit
momentum and could pressure the ratings."  Universal believes
that the MLP structure of Universal Compression Partners L.P.
provides a lower cost of capital that could be utilized to
accelerate growth of the domestic compression business.

Moody's observes that UCLP adds the MLP constituency to the mix,
an equity base that requires substantial and growing
distributions.  Universal intends to drop down its U.S.
compression business into UCLP over time, which provides UCLP
with a built-in growth profile.  However, the compression
business is untested in the MLP model and established MLP's are
showing evidence of the strain of simultaneously growing their
distributions, pursuing organic and acquisition growth, and
maintaining their credit profile.

The ratings could be pressured if the company incurs substantial
leverage at UCLP in its drop down transactions without an
appropriate reduction of leverage at Universal in order to
maintain a reasonable combined leverage profile for the Ba2
rating.  An aggressive use of UCLP debt to fund share buybacks
at the Universal level or acquisitions could result in a
negative outlook or downgrade.

The Ba2 rating is supported by the company's leading position as
the second largest natural gas compression services company in
the world with 2.5 million horsepower as of June 2006, its
recent pricing power and record fabrication backlog which has
strengthened its earnings and cash flows, and its general
reduction in leverage over recent years (LTM Debt/EBITDA of 3.1x
and debt to capitalization of 43% at June 30, 2006).
Universal's core contract compression business provides 85% of
the company's gross margin and is very stable in comparison to
other oil and gas related businesses.

In addition to the uncertainties regarding the future capital
structure and leverage profile, Universal's Ba2 Corporate Family
Rating is restrained by the growth challenges in the domestic
compression sector which necessitates the pursuit of growth in
higher risk and more challenging foreign markets, the
substantial capital expenditures required for expansions and
acquisition event risk.

Universal Compression, Inc. is headquartered in Houston, Texas.


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


TURK EKONOMI: Fitch Assigns Low-B Ratings on Sub. Notes Issue
-------------------------------------------------------------
Fitch Ratings assigned Economy Luxembourg S.A.'s issue of step-
up loan participation notes a foreign currency Long-term rating
of BB.  The notes are to be used solely to finance a
subordinated loan to Turkey's Turk Ekonomi Bankasi A.S.  The
issue will only pay noteholders amounts, if any, received from
TEB under the subordinated loan agreement.

TEB has a foreign currency Issuer Default rating of BB and a
local currency IDR of BB+, all with Positive Outlook.  The BB
rating of the subordinated notes reflects Fitch's standard
notching practice for subordinated instruments of issuers with
IDRs of BB- or higher.  The subordinated issue rating has been
notched down once from TEB's BB+ local currency rating.

TEB Mali Yatirimlar A.S., which is jointly owned by BNP Paribas
and the Colakoglu Group, holds 84.25% of TEB, with 15.63% of the
shares publicly traded and 0.12% held by other shareholders.


PROFILO TELRA: Fitch Assigns Foreign Currency IDR at B
------------------------------------------------------
Fitch Ratings assigned Turkey-based Profilo Telra Elektronik
Sanayi ve Ticaret A.S. a foreign currency Issuer Default rating
of B with Stable Outlook.

Fitch has also assigned Profilo-related HD Capital S.A.'s
prospective EUR100 million fixed-rate guaranteed loan
participation notes an expected foreign currency senior
unsecured rating of B and an expected Recovery Rating of RR4.
At the same time, Profilo's local currency IDR B with Stable
Outlook and National Long-term rating BBB+ with Stable Outlook
are affirmed.

The final ratings on the LPNs are contingent on receipt of final
documents conforming to information already received and receipt
of satisfactory legal opinions.

HD Capital has the sole purpose of using the LPNs proceeds to
finance a loan to Profilo as set out in a loan agreement, the
rights and benefits of which are charged to the benefit of LPN
noteholders.  The expected rating of the LPNs is in line with
Profilo's foreign currency IDR B.

Proceeds of the notes will be used to fund working capital
requirements, refinance existing debt and for general corporate
purposes.  The notes will constitute direct, unsecured and
unconditional obligations of Profilo.

The notes will rank equally with all other present or future
unsecured and unsubordinated obligations of Profilo.  The terms
and conditions of the loan agreement include a limitation on
Profilo's debt, using a maximum leverage ratio of 4x and
consolidated fixed charge coverage ratio of 2.25x.

There are also restrictions on dividend payments by Profilo.
Furthermore, upon asset sales by Profilo above a certain amount,
noteholders can request that these proceeds be used to prepay
their LPNs at par.  In the event of a change of control relating
to Profilo, noteholders have the right to require the issuer to
prepay their LPNs.

There are also covenants relating to transactions with
affiliates, mergers and disposals as described in the loan
agreement.  The governing law of the loan agreement, including
the guarantees in place and the LPNs, is English law and the
jurisdiction is the courts of England.


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


ALLIANCE LLC: Court Names Pavlo Duplika as Insolvency Manager
-------------------------------------------------------------
The Economic Court of Rivne Region appointed Pavlo Duplika as
Liquidator/Insolvency Manager for LLC Alliance (code EDRPOU
13992552).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 13.  The case is docketed
under Case No. 8/36.

The Economic Court of Rivne Region is located at:

         Yavornitski Str. 59
         33001 Rivne Region
         Ukraine

The Debtor can be reached at:

         LLC Alliance
         Oleksandriya
         Rivne District
         Rivne Region
         Ukraine


BK UKRSPECMONTAZH: Odessa Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Economic Court of Odessa Region commenced bankruptcy
supervision procedure on LLC BK Ukrspecmontazh (code EDRPOU
33798957).  The case is docketed under Case No. 7/251-06-8225.

The Temporary Insolvency Manager is:

         O. Sharmonov
         Travnya Str. 3
         Pershogo
         Illichivsk
         68000 Odessa Region
         Ukraine

The Economic Court of Odessa Region is located at:

         Shevchenko Avenue 4
         65032 Odessa Region
         Ukraine

The Debtor can be reached at:

         LLC BK Ukrspecmontazh
         Travnya Str. 3
         Pershogo
         Illichivsk
         68000 Odessa Region
         Ukraine


MUSTANG LLC: Court Names Oleksandr Shevich as Insolvency Manager
----------------------------------------------------------------
The Economic Court of Sumi Region appointed Oleksandr Shevich as
Liquidator/Insolvency Manager for LLC Mustang (code EDRPOU
32462070).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 15.  The case is docketed
under Case No. 12/73-0650.

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         LLC Mustang
         Bilopilske shose Str. 26
         Sumi Region
         Ukraine


OKEAN LLC: Herson Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Economic Court of Herson Region commenced bankruptcy
supervision procedure on LLC Okean (code EDRPOU 32059825) on
Sept. 12.  The case is docketed under Case No. 6/170-B-06.

The Temporary Insolvency Manager is:

         Sergij Pavluk
         Shors Str. 22/9
         Nova Kahovka
         74900 Herson Region
         Ukraine

The Economic Court of Herson Region is located at:

         Gorkij Str. 18
         73000 Herson Region
         Ukraine

The Debtor can be reached at:

         LLC Okean
         Komunariv Str. 73-A
         Skadovsk
         75700 Herson Region
         Ukraine


REGUL LLC: Kyiv Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Agro-Industrial Enterprise Regul
(code EDRPOU 31252120) on Sept. 7.  The case is docketed under
Case No. 165/14 b-06.

The Temporary Insolvency Manager is:

         Mr. U. Bilik
         Ahmatova Str. 13/67
         Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Agro-Industrial Enterprise Regul
         Dniprovskij Avenue 19/48
         Ukrainka
         08720 Kyiv Region
         Ukraine


SVITANOK LLC: Harkiv Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Economic Court of Harkiv Region commenced bankruptcy
supervision procedure on Agricultural LLC Svitanok (code EDRPOU
00708590) on Sept. 13.  The case is docketed under Case No.
19/95-06.

The Temporary Insolvency Manager is:

         N. Ivleva
         Tarhov Str. 5/9
         61189 Harkiv Region
         Ukraine

The Economic Court of Harkiv Region is located at:

         Derzhprom 8th Entrance
         Svobodi Square 5
         61022 Harkiv Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Svitanok
         Ostrovskij Str. 2
         Kolomak
         63100 Harkiv Region
         Ukraine


VASILKIV BREAD: Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------------
The Economic Court of Dnipropetrovsk Region commenced bankruptcy
supervision procedure on OJSC Vasilkiv Bread Receiving
Enterprise (code EDRPOU 00954455) on Aug. 31.  The case is
docketed under Case No. B 29/209-06.

The Temporary Insolvency Manager is:

         Maxim Reva
         Karl Marks Avenue 98
         49038 Dnipropetrovsk Region
         Ukraine

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Vasilkiv Bread Receiving Enterprise
         Budyonnij Str. 88
         Zhovti Vodi
         52209 Dnipropetrovsk Region
         Ukraine


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


ACTUANT CORPORATION: Moody's Assigns Loss-Given-Default Rating
--------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
affirmed its Ba2 Corporate Family Rating for Actuant
Corporation.

Additionally, Moody's held its Ba2 ratings on the company's
US$250 million Senior Unsecured Revolver Due 2009, and US$250
million Senior Term Loan Due 2009.  Moody's assigned those
debentures an LGD3 rating suggesting lenders will experience a
43% loss in the event of a 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 Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial
company with operations in more than 30 countries, including
Austria, Hungary, Poland, Italy, Spain, the Netherlands, France,
Russia, Turkey, Germany, and the United Kingdom.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from US$482 million to over
US$1 billion and its market capitalization from US$113 million
to over US$1.5 billion.  The company employs a workforce of
approximately 6,000 worldwide.  Actuant Corporation trades on
the NYSE under the symbol ATU.


ADVERT ENGINE: Claims Filing Period Ends Nov. 6
-----------------------------------------------
Creditors of Advert Engine Limited (formerly Rextraven Limited)
have until Nov. 6 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 Martin C. Armstrong at:

         Martin C. Armstrong
         Turpin Barker Armstrong
         Allen House
         1 Westmead Road
         Sutton
         Surrey
         United Kingdom

Headquartered in Southampton, United Kingdom, Advert Engine
Limited provides advertising and design services.


ALLEN POWER: Appoints Fanshawe Lofts to Administer Assets
---------------------------------------------------------
Antony Robert Fanshawe and Stephen John Adshead of Fanshawe
Lofts were appointed joint administrators of Allen Power
Equipment Ltd. (Company Number 02229557) on Oct. 9.

The administrators can be reached at:

         Antony Robert Fanshawe and Stephen John Adshead
         Fanshawe Lofts
         41 Castle Way
         Southampton
         Hampshire SO14 2BW
         United Kingdom
         Tel: 023 8023 3522
         Fax: 023 8023 3504
         E-mail: sa@fanshawe-lofts.co.uk
                 arf@fanshawe-lofts.co.uk

Allen Power Equipment Ltd. can be reached at:

         The Broadway
         Didcot
         Oxfordshire OX11 8ES
         United Kingdom
         Tel: 012 3551 5400


AQUARIUS INFORMATION: Liquidator Sets Nov. 16 Claims Bar Date
-------------------------------------------------------------
Creditors of Aquarius Information Technology Limited have until
Nov. 16 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 C. H. I. Moore at:

         K.J.Watkin & Co.
         Emerald House
         20-22 Anchor Road
         Aldridge
         Walsall
         United Kingdom

The company can be reached at:

         Aquarius Information Technology Limited
         30A The Green
         Kings Norton
         Birmingham
         West Midlands B38 8SD
         United Kingdom
         Tel: 0121 382 0220


BAA PLC: Hochtief AG Eyes Majority Stake in Budapest Airport
------------------------------------------------------------
Hochtief AirPort GmbH, a wholly owned subsidiary of Hochtief AG,
plans to acquire BAA Plc's interests in Budapest Airport.

BAA, owned by Spain's Grupo Ferrovial SA since June, acquired a
75 percent stake in Budapest Airport from the Hungarian
government last December for a consideration of approximately
EUR1.9 billion.

Under the memorandum of agreement signed Oct. 18, Hochtief will
purchase a 50 percent stake in the airport, while Caisse de
Depot et Placement du Quebec and KfW will buy the remaining 25
percent.  The Hungarian government will keep the 25 percent
stake it holds in the airport.

BAA and the HOCHTIEF consortium seek to finalize the acquisition
in the fourth quarter of 2006, subject to Hungarian government
consent.

Budapest Airport is the biggest international airport in
Hungary.

                     About the HOCHTIEF Ag

Headquartered in Essen, Germany, HOCHTIEF Aktiengesellschaft is
the country's largest construction company.  HOCHTIEF AirPort is
an airport management business that has consolidated Hochtief's
interests in the privatization and operation of airports since
1997.  It holds stakes in Athens International Airport,
Düsseldorf International Airport, Hamburg Airport, Kingsford
Smith International Airport (Sydney) and a new concession
agreement covering Rinas Mother Teresa Airport (Tirana).

                         About BAA Plc

Headquartered in London, United Kingdom, BAA plc --
http://www.baa.com/-- owns and operates seven airports in the
United Kingdom, including Healthrow, the world's busiest
international airport, and Budapest Airport, serving 700
destination by around 300 airlines.  Its U.K. airports handled
over 117 million international passenger during the 12 months up
to October 2005.  International passengers make up 81% of its
total U.K. airport traffic.  BAA had total assets of GBP15.2
billion and pre-tax profits of GBP757 million for the year ended
March 31, 2006.

                        *     *     *

As reported in TCR-Europe on June 9, Moody's Investors Service
downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well
as the ratings for:

   -- GBP425 million convertible bonds due August 2009;
   -- GBP424 million convertible bonds due April 2008; and
   -- GBP200 million 7.875% bonds due February 2007.

BAA's short-term rating was also downgraded to Not Prime from
Prime-3.  All other long-term debt ratings remain at Baa2.  All
long-term ratings remain on review for further downgrade.


BUSINESS MORTGAGE: Fitch Rates GBP8.7-Mln Class C Notes at BB
-------------------------------------------------------------
Fitch Ratings placed final ratings to Business Mortgage Finance
5 PLC's floating-rate notes due April 2039, at the date of
closing on Oct. 18:

   -- GBP100 million Class A1 floating-rate notes: AAA;
   -- Detachable A1 coupons: AAA;
   -- EUR180 million Class A2 floating-rate notes: AAA;
   -- Detachable A2 coupons: AAA;
   -- Mortgage early redemption certificates: AAA.
   -- GBP27 million Class M floating-rate notes: A;
   -- EUR36.5 million Class M floating-rate notes: A;
   -- GBP12 million Class B1 floating-rate notes: BBB;
   -- EUR11.5 million Class B2 floating-rate notes: BBB; and
   -- GBP8.7 million Class C floating-rate notes: BB.

This transaction is a securitization of a pool of commercial
mortgages originated in the U.K. by Commercial First Mortgages
Ltd.

The ratings reflect the credit enhancement provided to each
Class by subordination of the Classes junior to it, the positive
and negative features of the underlying real estate collateral
and the integrity of the transaction's legal and financial
structures.

The rating on the MERCs addresses only the likelihood that the
MERC-holders will receive early redemption amounts actually
received by the issuer, if enforceable.  The detachable A
coupons are extremely sensitive to the prepayment rate, an issue
that the rating does not address.  If borrowers prepay on the
loans faster or slower than expected, investors in the interest-
only Class or MERCs, respectively, may fail to recover their
initial investment.

Fitch's analysis is based on a provisional pool consisting of
938 loans with an aggregate outstanding balance of GBP207.9
million, secured by 1,000 secondary and tertiary quality
commercial, mixed-use and residential properties in the U.K.

The closing pool comprised an additional 197 loans with an
aggregate outstanding balance of GBP43.9 million, resulting in
the pool now comprising a total of 1,135 loans with an aggregate
outstanding balance of GBP252.2 million.

Fitch ensured that all the individual and global eligibility
criteria for the inclusion of these loans had been met and that
these additions would not have a detrimental effect on the
transaction.  A further, pre-funded loan portfolio of
approximately GBP47.8 million will be included on the first
interest payment date February 15, 2007.

This transaction is the fifth securitization of mortgages
originated by CFML; the previous four transactions have thus far
performed in line with Fitch's expectations.

While approximately 66% of the pool balance is secured by
commercial properties, and a large proportion of the remaining
balance is secured by assets that are of a semi-commercial
nature and/or subject to business-related uses, the pool has
many characteristics that are normally found in RMBS
transactions.

These include full borrower recourse, minimal exposure to
individual borrower and asset concentrations, a large proportion
of owner occupation and some exposure to borrowers with self-
certified income and/or impaired credit histories.


CAIRNSERVE LTD.: Taps BDO Stoy as Joint Administrators
------------------------------------------------------
Shay Bannon and Antony David Nygate BDO Stoy Hayward LLP were
appointed joint administrators of Cairnserve Ltd. (Company
Number 02406689), Cairnserve Northwest Ltd. (Company Number
04844730), and Mickleburgh (HV) Ltd. (Company Number 01615872)
on Oct. 9.

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.

Cairnserve Ltd., Cairnserve Northwest Ltd., and Mickleburgh (HV)
Ltd. can be reached at:

         201 Bellegrove Road
         Welling
         Kent DA16 3RA
         United Kingdom
         Fax: 020 8319 3443


CARDEW COMMUNICATIONS: Names J. Harvey Madden Liquidator
--------------------------------------------------------
J. Harvey Madden was appointed Liquidator of Cardew
Communications Limited on Oct. 12 for the creditors' voluntary
winding-up procedure.

Headquartered in Darlington, United Kingdom, Cardew
Communications Limited is a telecommunications service provider.


CLIFF NICHOLLS: Names Administrator from Haines Watts
-----------------------------------------------------
Andrew Appleyard of Haines Watts was named administrator of
Cliff Nicholls Roofing & Scaffolding Ltd. (Company Number
04503735) on Oct. 4.

Headquartered in Manchester, United Kingdom, Haines Watts --
http://www.hwca.com/-- is a national U.K. business advisory and
accountancy firm with a network of practices strategically
placed throughout United Kingdom, Wales and Scotland, offering
tax and general business advice.  Its experienced tax
accountants, business advisors and special service teams will
help its clients with every aspect of its business.

Cliff Nicholls Roofing & Scaffolding Ltd. can be reached at:

         Patrick Gregory Road
         Wolverhampton
         West Midlands WV11 3DU
         United Kingdom
         Tel: 01902 739 220
         Fax: 01902 304 920


CNET NETWORKS: Fails to Get Needed Consents to Amend Indenture
--------------------------------------------------------------
CNET Networks Inc. disclosed the results of its solicitation of
consents of holders of any and all of its US$125,000,000
aggregate principal amount of outstanding 0.75% Convertible
Senior Notes due 2024 pursuant to its consent solicitation for
the securities, which expired on Oct. 18, 2006.

CNET Networks did not receive a sufficient number of consents
from holders to satisfy the 70% requisite consent threshold.
Therefore, CNET Networks will not accept any of the consents
delivered by the holders of the notes, and the indenture related
to the notes will not be amended.

                     Form 10-Q Filing Delay

As reported in the TCR-Europe on Oct. 17, the Company will not
be in a position to file its Quarterly Report on Form 10-Q for
the quarter ended September 30, 2006 on a timely basis, pending
the completion of its financial restatements related to its
independent investigation of stock option granting practices and
of the requisite audit procedures by the Company's independent
registered public accountants.  Consequently, CNET Networks is
not in a position to provide actual results or guidance
regarding operating expense, operating income, net income or
earnings per share.

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

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

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


CNET NETWORKS: S&P Junks Credit Rating Due to Indenture Default
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on CNET
Networks Inc., including lowering the corporate credit rating to
'CCC+' from 'B', and placed the ratings on CreditWatch with
developing implications.

The action was based on the company receiving a notice of
acceleration from the trustee for the holders of US$125 million
in 0.75% senior convertible notes due 2024 and not having a
sufficient number of consents to waive default from indenture
violation.

Total debt outstanding as of June 30, 2006, was US$143.3
million.

San Francisco-based CNET connects buyers and suppliers of
information technology and electronic products through
advertiser-supported online news and product reviews.  More
recently, the company has branched out to automotive and other
categories.

The trustee is accelerating the maturity on the convertible
notes because CNET failed to file its quarterly report for the
period ended June 30, 2006, with the SEC.  CNET was unable to
file because a special committee formed by its board of
directors is reviewing stock option practices.  Certain stock
options granted between 1998 and 2001 differ from the recorded
measurement dates.  As a result of the filing delinquency, the
company violated provisions of the indenture that require the
report to be filed with the trustee 15 days after the report is
submitted to the SEC.

If the company repays the accelerated maturity of US$125
million, S&P may raise the rating back to the 'B' category.  On
the other hand, if the company does not meet the accelerated
maturity, S&P will likely lower the ratings to 'D'.


COLLINS & AIKMAN: GM Balks at Consolidation of Tooling Plea
-----------------------------------------------------------
General Motors Corp. asserts that Collins & Aikman Corporation
and its debtor-affiliates have failed to explain how its Amended
Tooling Request is related to an adversary proceeding filed by
General Electric Capital Corporation.

As previously reported, GM amended its request to obtain
possession of certain tooling to narrow the scope of the
request.  The Debtors sought to dismiss that request arguing
that it should be consolidated with an adversary proceeding by
GECC.

The GECC Adversary Proceeding addresses prepetition receivables
that GECC believes were sold by the Debtors to Carcorp, Inc.,
and subsequently sold by Carcorp to GECC.  GECC seeks a
declaratory judgment as to its interest in the prepetition
receivables, and the Debtors want to collect them as GECC's
collection agent.

                        GM's Arguments

Contrary to the Debtors' assertions, the issue of whether GM has
paid all outstanding tooling receivables is not the subject of
the GECC Adversary Proceeding, Adam L. Kochenderfer, Esq., at
Honigman Miller Schwartz and Cohn LLP, in Detroit, Michigan,
argues.  Mr. Kochenderfer explains that the GECC Adversary
Proceeding is concerned only with certain prepetition
receivables with no articulated connection to GM's relevant
tooling.

When considering consolidation, the court must "balance the
savings of time and effort gained through consolidation against
the inconvenience, delay or expense that might result from
simultaneous disposition of separate actions," Mr. Kochenderfer
notes, citing Kelly v. Kelly, 911 F. Supp. 66, 69 (N.D.N.Y.
1996).

The GECC Adversary Proceeding implicates over US$28 million in
prepetition receivables.  According to Mr. Kochenderfer, very
little of this amount is implicated by GM's Tooling Request.
Only two GM purchase orders -- totaling US$26,800 -- were
payable
prepetition, Mr. Kochenderfer notes.

It should also be noted, Mr. Kochenderfer maintains, that the
GECC Adversary Proceeding has been repeatedly stayed and
consolidation may subject GM's Tooling Request to unnecessary
delay.

"Consolidation would serve no purpose other than to cause delay,
confusion, and inefficiencies for all involved parties," Mr.
Kochenderfer notes.

                 GM's Request Fails, Debtors Say

Patrick J. Kukla, Esq., at Carson Fischer, P.L.C., in Bloomfield
Hills, Michigan, asserts that GM still fails to establish cause
with respect to its Amended Tooling Request.

Mr. Kukla points out that the Debtors have legal and equitable
interest in the Tooling and that the Tooling remains essential
to the prospect of a successful reorganization of the Debtors.

The Amended Tooling Request is based on speculative and unlikely
future events, Mr. Kukla notes.  In the Amended Tooling Request,
GM asks the Court to lift the automatic stay in case of certain
circumstances including the conversion of the Debtors' Chapter
11 cases to Chapter 7 of the Bankruptcy Code, among others.

Furthermore, GM has failed to include necessary third parties
with asserted ownership or lien rights in the Tooling, Mr. Kukla
says.  According to Mr. Kukla, while GM asserts that no other
parties are know to claim a valid interest in the Tooling, there
are indeed parties that have asserted security interests and
even ownership interests in the Tooling including Tri-Way Mold &
Engineering and Hallmark Tools.

The Debtors ask the Court to deny GM's Amended Tooling Request.

                         More Objections

(1) Tri-Way and Hallmark

Tri-Way Mfg., Inc., doing business as Tri-Way Mold &
Engineering, and Hallmark Tools, a division of Hallmark
Technologies, Inc., have fabricated certain molds that the
Debtors use in making instrument panels for the GMX 384 Saturn
Aura.  Hallmark has also performed engineering changes on the
instrument panel for the Debtors.

Tri-Way and Hallmark assert separate liens on their Molds
pursuant to the Michigan Mold Lien Act, MCL 445.611 et seq.
They believe that some or all of their Molds may be included in
the tooling referenced in GM's Amended Motion.

Representing both companies, Dennis W. Loughlin, Esq., at Strobl
& Sharp, P.C., in Bloomfield Hills, Michigan, relates that Tri-
Way and Hallmark filed UCC-1 financing statements relative to
their Molds as required by the Act.  Pursuant to the Act, Tri-
Way and Hallmark have statutory liens against their Molds, Mr.
Loughlin says.

Mr. Loughlin contends that the GM Amended Motion fails to (i)
recognize Tri-Way's and Hallmark's statutory lien on the Molds
and (ii) provide for payment to satisfy their lien on the Molds.

Based on GM's supporting documentation, Tri-Way and Hallmark
believe that GM may have paid the Debtors for their Molds.
According to Mr. Loughlin, Tri-Way and Hallmark have not been
paid by the Debtors for the Molds.  Mr. Loughlin also notes that
the Debtors have represented to Tri-Way and Hallmark that GM has
not paid for the Molds.

Accordingly, Tri-Way and Hallmark object to GM's request to the
extent that their ownership interest or statutory lien on their
Molds is not recognized or satisfied.  They do not object to the
request relative to other molds and tools.

(2) Creditors Committee

The Official Committee of Unsecured Creditors contends that GM's
Amended Tooling Motion does nothing to remedy the legal and
factual defects of the Original Tooling Motion.  To the
contrary, the defects apply equally to the Amended Motion.

In its Amended Tooling Motion, GM asserts that certain relevant
Tooling is not subject to the automatic stay because it
contracted with non-debtor entities, including Collins & Aikman
Canada, Inc., to produce the Tooling.

The Creditors Committee does not agree that GM contracted with
non-debtor entities to produce the Tooling.  Even assuming that
GM did contract with non-debtor entities, GM's assertion is
incorrect as a matter of law, Abid Qureshi, Esq., at Akin Gump
Strauss Hauer & Feld LLP, in New York, contends.

Mr. Qureshi reminds Judge Rhodes that courts have applied the
protections of Section 362(a) to non-debtor entities where,
among other things:

   -- the debtor and non-debtor entities had an identity of
      interest; or

   -- an adverse judgment against the non-debtor entities would
      have immediate adverse economic consequence for the
      debtor's estate.

Mr. Qureshi points the Court to Queenie Ltd. v. Nygard Int'l,
321 F.3d 282, 287-88 (2d Cir. 2003), wherein the U.S. Court of
Appeals for the Second Circuit stayed appeal proceedings against
wholly owned non-debtor corporation as well as the debtor; and
Badalament, Inc. V. Mel-O-Ripe Banana Brands, Ltd., 265 B.R. 732
(E.D. Mich. 2001), wherein the U.S. Bankruptcy Court for the
Eastern District of Michigan extended automatic stay protection
to an officer of the non-debtor because strong relationship
between the non-debtor and debtor evidence identity of interest.

The Debtors and GM are currently conducting discovery
concerning, among other things, the relationship between the
Debtors and other entities with whom GM contracted to produce
the Tooling, as well as the impact granting GM's Amended Motion
may have on the Debtors' reorganization efforts.  The Creditors
Committee reserves the right to supplement its objections upon
the conclusion of discovery.

                          GM Talks Back

The Debtors' response is fraught with inconsistencies,
misinterpretations of case law, and willful ignorance of the
limited relief GM seeks, Scott A. Wolfson, Esq., at Honigman
Miller Schwartz and Cohn LLP, in Detroit, Michigan, contends.
The Debtors blindly cling to the assertion that GM seeks actual
repossession via the Bankruptcy Court, Mr. Wolfson points out.
He notes that GM only wants relief from the stay to proceed in
state court to determine ownership and possessory rights in the
relevant Tooling.  As a result of the limited relief, no third
parties must be joined before the Court adjudicates the Amended
Motion.

Mr. Wolfson also notes that GM only requests relief from the
automatic stay as it relates to Relevant Tooling that GM has
paid for.  This does not include secondary capital equipment
purchased by the Debtors for which GM has not compensated the
Debtors.  Any third-party vendor's right to assert a lien
against the Relevant Tooling is immaterial to the Amended
Motion.  If third-party vendors wish to assert a lien, they may
do so in the state court proceeding that GM would bring to
obtain possession of the Relevant Tooling.

Mr. Wolfson also argues that the Debtors' intellectual property
rights, if any exist, do not affect GM's right to use the
Relevant Tooling.  GM has fully paid for the Relevant Tooling
and now holds a license to use the Relevant Tooling.

In addition, the Relevant Tooling is not necessary to an
effective reorganization upon the occurrence of certain events.
If there was a  "material interruption of GM's production," Mr.
Wolfson says GM's possession of the Relevant Tooling would
actually be helpful to the Debtors because it would reduce GM's
administrative expense claim against the Debtors for breach of
production purchase orders.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 43;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


COLLINS & AIKMAN: Resolves Tooling Dispute with Huron Mold
----------------------------------------------------------
Wallace M. Handler, mediator for Huron Mold & Tool, Ltd., tells
the U.S. Bankruptcy Court for the Eastern District of Michigan
that Huron and Collins & Aikman Corporation have resolved their
dispute over certain tooling delivered to the Debtor.

As reported in the Troubled Company Reporter on July 28, 2006,
Huron asked the Court to lift the automatic stay to repossess
tooling from Collins & Aikman.  Huron asserted Collins & Aikman
and its debtor-affiliates owe Huron approximately US$1.4 million
for the tooling.

The Debtors moved to block Huron's lift-stay request saying
Huron has not established that it has a valid and enforceable
first lien on the Molds.

After extensive negotiations, the parties agree, with the
Court's consent, that the Debtors will pay Huron US$350,000 for
its claims.

Huron will continue to render services to the Debtors, provided
that it will be duly compensated for the continued services.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
US$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 43;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


CONSTAR INT'L: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the non-paper Packaging sector, the rating
agency confirmed its B3 Corporate Family Rating for Constar
International Inc.

Moody's also revised and affirmed its probability-of-default
ratings and assigned loss-given-default ratings on these two
bond issues:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$220 million
   Sr. Sec. FRNs
   due 2012             B3       B2       LGD3     33%

   US$175 million
   11% Sr. Sub.
   Notes due 2012       Caa2     Caa2     LGD5     88%

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

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 One Crown Way, Philadelphia, Constar
International Inc. -- http://www.constar.net/-- is a global
producer of polyethylene terephthalate (PET), plastic containers
for food and beverages.  The Company's products are used in a
variety of end-use markets, including soft drinks, water, peanut
butter, edible oils, salad dressing, juices, teas, beer and
flavored alcoholic beverages.  It primarily manufactures and
sells bottles in the United States.  In Europe, the Company
primarily sells preforms and maintains operations in the United
Kingdom, The Netherlands and Italy.


COREL CORP: Earns US$5.5 Million in Third Quarter 2006
------------------------------------------------------
Corel Corp. reported financial results for its third quarter
ended Aug. 31, 2006.  Revenues in the third quarter of fiscal
2006 were US$41.3 million, an increase of 7% over revenues of
US$38.5 million in the third quarter of fiscal 2005.  GAAP net
income in the third quarter of fiscal 2006 was US$5.5 million.
This compares to a GAAP net loss of US$3.0 million in the third
quarter of fiscal 2005.

Non-GAAP adjusted net income for the third quarter of fiscal
2006 was US$9.2 million, an increase of 88% compared to non-GAAP
adjusted net income for the third quarter of fiscal 2005 of
US$4.9 million.  Non-GAAP adjusted EBITDA in the third quarter
of fiscal 2006 was US$12.4 million, a 16% increase compared to
US$10.7 million in the third quarter of fiscal 2005.

"Corel continued to execute against all aspects of our strategy
in the third quarter," said David Dobson, CEO of Corel
Corporation.  "Our announced acquisition of InterVideo and
recent launches of Snapfire and Paint Shop Pro Photo XI show
that we are focused on delivering the products and value that
customers and partners demand.  We also showed our discipline
around driving profits as earnings growth outpaced revenue
growth.  With strong revenue performance, new global
partnerships, and increasing traction in developing and emerging
markets, Corel is successfully executing its strategy to deliver
long-term, shareholder value."

Headquartered in Ottawa, Ontario, Corel Corporation
(NASDAQ:CREL) (TSX:CRE) -- http://www.corel.com/-- is a
packaged software company with an estimated installed base of
over 40 million users.  The Company provides productivity,
graphics and digital imaging software.  Its products are sold in
over 75 countries through a scalable distribution platform
comprised of original equipment manufacturers, Corel's
international websites, and a global network of resellers and
retailers.  The Company's product portfolio features
CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office,
WinZip(R), Corel(R) Paint Shop(R) Pro, andCorel Painter(TM).

In Europe, the company maintains operations in France, Germany,
Italy, the Netherlands, and the United Kingdom.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 19,
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 Caa1 Corporate
Family Rating for Corel Corporation.


CORUS GROUP: Companhia Siderurgica Nacional Eyes Counteroffer
-------------------------------------------------------------
Companhia Siderurgica Nacional S.A. plans to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc,
reports BBC citing the Sunday Times as its source.

According to the Sunday Times, CSN has hired investment bank
Lazards to advise on a potential deal.

Thyssenkrupp Steel, meanwhile, dismissed reports it was also
planning to launch an offer for Corus.

As reported in the TCR-Europe yesterday, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus Share, subject
to shareholder approval.

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.

Tata, however, did not rule job cuts at Corus should it succeed
in taking over the Anglo-Dutch steelmaker.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        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.


CORUS GROUP: Fitch Changes Rating Watch to Negative on Tata Deal
----------------------------------------------------------------
Fitch Ratings changed the Rating Watch on Corus Group PLC's
Issuer Default and senior unsecured BB- and Short-term B ratings
to Negative from Positive.  This follows the recommendation by
the CS Board of an offer from India-based Tata Steel Ltd. valued
at GBP4.3 billion.

The RWN also applies to these debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

The RWN encompasses the possibilities that the CS's ratings
could either be downgraded or affirmed at the current levels.
The RWN reflects further clarity on the financing structure for
the transaction, in particular that the GBP3.1 billion of debt
raised by the acquisition vehicle - Tata Steel U.K. Limited -
will not benefit from any credit support provided by Tata Steel,
its parent entity, but will be dependant on CS's stand alone
cash flows for debt service.

In this regard Fitch notes that pro-forma leverage of 4.9x based
on CS's LTM Q2 2006 continuing EBITDA would be indicative of a
rating in the B rating category.

Fitch continues to view that a tie-up with Tata Steel would be
positive for CS's operational profile.  However, given that CS
will continue to operate as a standalone company it is currently
unclear to what extent operational benefits, such as the ability
to access cheap semi-finished steel from Tata Steel's Indian
operations, will be reflected in an improvement in its financial
metrics.

Fitch will resolve the Rating Watch following publication of
CS's 2006 results, further details on the level of synergies and
operational benefits that could accrue under the transaction,
and the closure of the deal.


DALI CAPITAL: Fitch Puts B+/RR4 Ratings on RUR2 Billion Issue
-------------------------------------------------------------
Fitch Ratings assigned Dali Capital PLC's further issue of RUB2
billion Series 23 fixed-rate notes ratings of Long-term B+ and
Recovery RR4.  The Long-term rating of the issue is placed on
Rating Watch Positive.

The notes are to finance an unsecured loan made by Barclays Bank
PLC to Russia's Rosbank, rated foreign currency and local
currency Issuer Default B+/RWP, Short-term B/RWP, Individual D,
Support 4/RWP, and National Long-term A-/RWP.

The further notes form a single series with the original Series
23 RUB5 billion notes due September 2009 (rated B+/RWP).  Dali
will only pay noteholders principal and interest received by
Barclays from Rosbank.

Rosbank was founded in 1992 and ranks among the top 10 banks in
Russia by total assets.  About 70% of its shares are currently
controlled by Interros, one of Russia's largest financial
industrial groups, with interests in the metals, power-machine
building, agricultural and insurance sectors.

Societe Generale holds a stake of 20% minus 1 share in the bank
and has acquired from Interros a call option to further increase
its stake to 50% plus one share.  The RWP on Rosbank's ratings,
and hence the notes, reflects the greater probability of support
for Rosbank being forthcoming in case of need if Societe
Generale becomes the bank's majority owner.


DANCERS WORLD: Creditors Confirms Voluntary Liquidation
-------------------------------------------------------
Creditors of Dancers World Limited confirmed Oct. 6 the
resolutions for voluntary liquidation and the appointment of
John Russell and Andrew Philip Wood of The P&A Partnership as
Liquidators.

Headquartered in Mexborough, United Kingdom, Dancers World
Limited is a dancewear shop.


DEETFREE LIMITED: Creditors Confirm Liquidators' Appointment
------------------------------------------------------------
Creditors of DEETfree Limited confirmed Oct. 10 the resolutions
for voluntary liquidation and the appointment of John Russell
and Andrew Philip Wood of The P&A Partnership as Liquidators.

Headquartered in Ripon, United Kingdom, DEETfree Limited --
http://www.deetfree.com/-- manufactures a range of natural
insect repellents and sun care products.


EMI GROUP: Expects 3% Revenue Decline in 2006 First Half
--------------------------------------------------------
EMI Group PLC provides trading update for the six months ended
Sept. 30, 2006, outlining strong second-half release schedule
and confirming confidence in its expectations for the full year.

EMI Group expects to report a decline in total revenues of
approximately 3% on a constant currency basis for the six months
to Sept. 30, 2006.  The year-on-year decline in revenues is due
to the phasing of EMI Music's planned release schedule which, as
previously indicated, has a greater weighting to the second half
of the financial year than in prior years.  After the impact of
exchange rate movements over the period, group revenues are
expected to decline by close to 5% on a reported basis.

Underlying profit before tax, amortization and exceptional items
(underlying PBT) is expected to be approximately GBP27 million.
The strength of upcoming releases, together with continuing
strong momentum at EMI Music Publishing and further good
progress on the cost savings initiatives announced in
April 2006, give the Board confidence that the Group is on track
to deliver results in line with its expectations for the full
year.

EMI Music is expected to report a decline in revenues at
constant currency of approximately 4% for the six months to
Sept. 30, 2006.  Digital revenues continue to show strong growth
and in the first half represented approximately 9% of divisional
revenues.  Top-selling releases over the period included new
albums from international superstar Janet Jackson and local
superstars Hikaru Utada, Chingy, Bob Seger, Trace Adkins,
Underoath, Tiziano Ferro and Renaud.  Of particular note was the
strong contribution from breaking and developing acts, with
successful new releases from Cherish, Letoya, Lily Allen, Jolin
Tsai, 30 Seconds to Mars, The Red Jumpsuit Apparatus and on-
going sales of albums from Corinne Bailey Rae, The Kooks and
Diam's.

The impact on EMI Music's divisional profit from both lower
revenues and the changed mix of releases as compared to the
prior year will be partly mitigated by progress on the cost
savings initiatives announced in April 2006.  The divisional
operating margin is expected to be approximately 3% for the
period to Sept. 30, 2006.

EMI Music's planned release schedule for the remainder of the
financial year to March 31, 2007 features an exciting line up of
albums from long-established international and local superstars,
as well as newly emerging global and local talent.  The
highlights include albums from Norah Jones, Robbie Williams,
Keith Urban, Joss Stone, Dierks Bentley, RBD, Relient K, Tina
Turner, All Saints, Vasco Rossi, Simon Webbe, Depeche Mode, Moby
and a Beatles release which contains new music as featured in
the highly acclaimed Cirque du Soleil show, "Love", in Las
Vegas.  The planned artist releases, continued growth in digital
revenues and delivery of the announced cost savings, are
expected to drive strong growth in underlying revenues and
profits in the second half of the financial year.

On a constant currency basis, EMI Music Publishing is expected
to report first half revenues in line with the prior year.
Performance revenues exhibited particular strength, reflecting
strong on-going chart share.  The divisional operating margin is
expected to increase to approximately 25%.  It is expected that
EMI Music Publishing will continue to make good progress in the
second half of the current financial year, with key releases
from the likes of Sting, Kelly Clarkson, Fergie, Diddy, Scissor
Sisters, Natasha Bedingfield, Kanye West and Daddy Yankee.

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20.  The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.


EMI GROUP: Moody's Cuts Rating on Weak Debt Protection Measures
---------------------------------------------------------------
Moody's Investors Service downgraded EMI Group plc's senior debt
and guaranteed debt ratings to Ba2 from Ba1.  At the same time
Moody's assigned a Ba2 Corporate Family Rating to EMI.  The
downgrade is based on Moody's expectation that EMI's debt
protection measurements will not improve near-term to a level
commensurate with the Ba1 rating category.  The rating outlook
is now stable.

Despite a visible improvement in operating performance during
the 2005/6 financial year EMI's cash-flow based measures of
indebtedness have remained relatively weak with Adj. RCF/Adj.
Net Debt at 8.3% while free cash flow (after capital
expenditures and dividends) was negative as it has been in four
out of the last five years.  While Moody's believes that EMI's
second half release schedule will help to compensate for a weak
first half performance (reported revenues -5%) during the
company's 2006/7 financial year, it will be challenging for EMI
to show meaningfully improved revenue and profits for the year
against the backdrop of a still struggling global market for
recorded music.

Current year operating cash flows will also be held back by
significant restructuring spending (GPP60 million) although
Moody's acknowledges that EMI has completed compensatory
property sales to fund these outflows.  In addition, the company
is, in Moody's opinion likely to use any financial flexibility
gained over the medium term to consider add-on acquisitions
(music publishing catalogues, smaller recorded music labels)
given that acquisition activity has been very muted over the
last couple of years.

The Ba2 rating continues to recognize EMI's position as a global
player in the oligopolistic recorded music industry as well as
the company's leading world-wide position in music publishing
with a more stable revenue base compared to recorded music.
EMI Music Publishing is currently the world's largest music
publisher, but is likely to cede its top place to Universal
Music once Universal's acquisition of Bertelsmann Music Group's
music publishing business becomes effective.

The rating further acknowledges the significant restructuring
steps EMI has been taking over the last few years to lower the
company's cost base, including the outsourcing of manufacturing
in the U.S., Europe and Japan and the tight management of the
artist roster.  Current year cost savings are expected to save
GBP30 million on a run-rate basis from 2007/8 onwards.  In
addition, EMI's performance in music publishing remains
relatively resilient with mechanical revenues directly related
to recorded music sales representing no more than 45% (in
2005/6) of EMI's music publishing revenues.

The Ba2 rating and a stable outlook assume that EMI can:

   -- translate its strong release schedule into revenue
      and profit growth for the second half of 2005/6;

   -- deliver consolidated revenue growth thereafter; and

   -- achieve cost reductions as forecast.

Failure to deliver these objectives, near-term debt-financed
acquisitions or failure to move the ratio of Adj. RCF/Adj.  Net
Debt towards 10% over time could result in ratings pressure. The
possible business combination between EMI and Warner Music Group
adds an element of uncertainty to the outlook over time.  While
any such combination would have significant cost saving
potential, the financing of a potential transaction and who
would be in the role of acquirer remain unclear.

However, merger talks have ceased for the time being as the EU
reconsiders the competitive implications of the merger between
Sony Music and Bertelsmann Music Group following the annulment
of the initial approval for this transaction by the European
Court of First Instance.  If after the review process the Sony
BMG merger were to be re-approved Moody's believes that a
resumption of the talks between EMI and Warner would likely
follow.

Moody's notes that the operating environment for recorded music
remains difficult.  The global recorded music markets have been
shrinking since 2001 and total global music sales (on a trade
values basis) fell by a further 4% during the first calendar
half of 2006 (after -1.9 % in 2005) despite continuing strong
digital sales.  Moody's believes that the fall for the first
half of 2006 is aggravated by the phasing of release schedules
with a further increasing bias towards releases during the
second half of the calendar year.

Nevertheless it will remain challenging for the industry to
reverse first half trends and achieve overall growth for the
calendar year.  Notwithstanding the relative success of both the
industry's legitimate download products and concerted legal
action, download and physical music piracy remain a constricting
factor for the global recorded music industry.  In addition, the
very success of the legitimate download product also means that
EMI and the industry as a whole will have to carefully manage
the retail channel as the continuing move towards digital
distribution is likely to take a toll on specialist retailers.

Ratings affected are:

EMI Group plc

    * CFR of Ba2 assigned
    * 8.25% GBP bonds due 2008
    * 8.625% notes due 2013

Capitol Records Inc. (gtd. by EMI Group plc)

    * 8.375% guaranteed notes due 2009

EMI Group plc, one of the world's leading music recording and
publishing companies is headquartered in London, England.


ENTERPRISE INNS: Moody's May Upgrade Rating on Strong Finances
--------------------------------------------------------------
Moody's Investors Service placed the Ba2 corporate family rating
and Baa3 senior secured rating of Enterprise Inns plc's on
review for possible upgrade due to the recent strengthening of
the company's financial profile.

The rating review reflects:

   -- the group's solid cash flow generation which,
      together with pub disposals and cash transfers from
      the securitization, results in Enterprise
      Inns demonstrating strengthening financial metrics,
      with net adjusted debt to EBITDA now below 5.75x
      and interest cover above 2.5x,

   -- the reduced, albeit still existing, potential for
      sizeable acquisitions, and

   -- the possibility, albeit low, that Enterprise Inns
      might convert into a Real Estate Investment Trust
     (REIT), which could affect its cash retention ability.

Moody's adds that the impact of the forthcoming smoking ban on
the U.K. pub industry remains uncertain, although Enterprise
Inns should be partly protected, in the agency's opinion, by the
good quality of its estate.

In Moody's view, Enterprise Inns ratings could be upgraded by no
more than one notch subject to:

   -- ongoing management of the share buyback program so as
      to maintain net adjusted debt to EBITDA below 5.75x
      and interest cover above 2.5x on a sustainable basis,

   -- an undertaking by the company not to make new
      investments into Unique (via loans or equity), and

   -- greater clarity on the potential of a conversion into
      a REIT.

Moody's adds that, as part of the review, it will assess the
impact of the forthcoming roll-out in Europe of the Loss-Given-
Default (LGD) methodology on the current notching of Enterprise
Inns senior secured rating.  Moody's anticipates to conclude its
review on Enterprise Inns ratings in the first quarter of 2007.

Moody's last rating action on Enterprise Inns was on
March 5, 2004, when the agency confirmed the ratings at
Ba2/Baa3.

Headquartered in Solihull, United Kingdom, Enterprise Inns plc
is a leading owner of tenanted pubs in the U.K., and generated
turnover of GBP920 million in the year to September 2005.


FIREARMS TRAINING: Selling Outstanding Shares to Meggitt-USA
------------------------------------------------------------
Firearms Training Systems Inc. has sold all of its outstanding
shares to Meggitt-USA Inc., an indirect U.S. subsidiary of
Meggitt PLC.

Holders of the Company's Class A Common Stock received cash
in the amount of US$1.08 per share owned immediately before the
effective time of the merger and holders of FATS' Series C
Preferred Stock received cash in the amount equal to the sum of
the liquidation preferences of such preferred stock plus accrued
and any unpaid dividends on such shares to the extent not
previously added to the liquidation preference, for each
outstanding share owned immediately before the effective time
of the merger.

All holders of stock options outstanding at the closing received
cash payments equal to the sum of the difference between the
per-share option exercise prices of their respective options and
US$1.08 for each share subject to an option.

Firearms Training Systems, Inc. -- http://www.fatsinc.com/--
and its subsidiary, FATS, Inc., provides fully-integrated,
simulated training to professional military and law enforcement
personnel.  Utilizing quality engineered simulated weapons,
FATS' state-of-the-art virtual training solutions offer
judgmental, tactical and combined arms experiences.  The company
serves U.S. and international customers from headquarters in
Suwanee, Georgia, with branch offices in Australia, Canada,
Netherlands and United Kingdom.  The ISO-certified company
celebrated its 20th anniversary in 2004.

At June 30, 2006, Firearms Training Systems, Inc.'s balance
sheet showed a US$24,931,000 stockholders' deficit compared to a
$25,702,000 deficit at Mar. 31, 2006.


FORD MOTOR: Restating Results for Accounting Under SFAS 133
-----------------------------------------------------------
Ford Motor Company plans to restate previous financial results
from 2001 through the second quarter of 2006 to correct the
accounting for certain derivative transactions under the
Statement of Financial Accounting Standards 133, Accounting for
Derivative Instruments and Hedging Activities.

The correction to the accounting does not affect the economics
of the derivative transactions, nor have any impact on the
company's cash.  However, the restatements are expected to
affect the preliminary financial results Ford reported for its
2006 third quarter.  The company expects to finalize restatement
amounts for the current period and all previous periods by the
time of the filing of its Quarterly Report on Form 10-Q for the
quarter ended Sept. 30, 2006.

Ford discovered that since 2001, certain interest rate swaps
Ford Motor Credit Company had entered into to hedge the interest
rate risk inherent in certain long-term fixed rate debt were
accounted for incorrectly under SFAS 133 because they did not
satisfy the standard's technical accounting rules to qualify for
exemption from the more strict effectiveness testing
requirements.  Ford Motor Credit Company uses transactions
involving derivatives, including swaps, forwards and options, to
reduce economic risk and volatility in a disciplined and
defensive manner.

PricewaterhouseCoopers LLP, the company's independent registered
public accounting firm, audited Ford's 2001 through 2005
financial statements, which included a review of these swaps.

"This is a very complicated accounting standard, and
interpretation of its proper application has continued to
evolve," said Executive Vice President and Chief Financial
Officer Don Leclair.  "Our overall hedging strategy is sound.
We will correct our accounting for these types of derivative
instruments.  We remain committed to strong internal controls
and reporting transparency."

Ford Motor Credit Company's interest rate swaps were entered
into as part of the unit's asset-liability management strategy.
The swaps economically hedge the interest rate risk associated
with long-term debt issuances. Although the final restatement
amounts have not yet been determined, we estimate based on the
information to date that Ford and Ford Motor Credit Company's
results in 2002 will improve materially.  Other periods are
still under study.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

                           *     *     *

As reported in TCR-Europe on Sept. 21, Moody's Investors Service
lowered Ford Motor Company's corporate family rating and senior
unsecured to B3 from B2, and Ford Motor Credit Company's senior
unsecured to B1 from Ba3.

Ford's Speculative Grade Liquidity rating has also been lowered
to SGL-3 from SGL-1.  The rating outlook is negative.  These
rating actions conclude a review for possible downgrade that was
initiated on Aug. 18.

At the same time, Standard & Poor's Ratings Services lowered its
long-term corporate credit ratings on Ford Motor Co., Ford Motor
Credit Co. and all related units -- except FCE Bank PLC -- to
'B' from 'B+' and its short-term ratings on these entities to
'B-3' from 'B-2.'

The ratings on FCE Bank, Ford Credit's European bank, were
lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch
rating differential between FCE and its parent that was
established in July.

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle
from R-3 high.  DBRS also lowered Ford Motor Credit Company's
long-term debt rating to BB(low) from BB, and confirmed Ford
Credit's short-term debt rating at R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to
'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured
rating to 'BB-/RR2' from 'BB/RR2'.  The Rating Outlook remains
Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor
Credit Co., and related entities on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  Moody's said the outlook for the
ratings is negative.


FORD MOTOR: Incurs US$5.8 Billion Net Loss in 2006 Third Quarter
--------------------------------------------------------------
Ford Motor Company reported Monday preliminary third-quarter
2006 financial results.  For the third quarter 2006, Ford Motor
reported a net loss of US$5.8 billion, compared with a net loss
of
US$284 million in the same quarter last year.  Excluding special
items, the third quarter loss from continuing operations was
US$1.2 billion, compared with a loss of US$191 million, or 10
cents per share, a year earlier.

The performance from continuing operations primarily reflected
operating challenges in the company's North America, Asia
Pacific and Africa, and Premier Automotive Group operations.
Performance also included continued profitability in South
America and at Ford Credit.  Though it lost money during the
quarter, Ford Europe showed a year-over-year improvement in
operating results and remained poised to deliver full-year
profitability.

Special items included in the quarter's net loss primarily
reflected the costs associated with restructuring efforts,
primarily in North America, as well as the revaluation of long-
lived assets related to automotive operations in North America
and Jaguar/Land Rover.  On an after-tax basis, special items
reduced third-quarter earnings by a total of US$4.6 billion.
The total pre-tax effect of these special items was US$5.3
billion.

In addition, effective this quarter, the company established a
valuation allowance of US$2.2 billion against deferred tax
assets primarily at its North America and Jaguar/Land Rover
operations.  The valuation allowance was established because of
the cumulative losses the company has incurred and the financial
outlook for these operations.

Alan Mulally, Ford's president and chief executive officer, said
he and his senior management team are committed to creating a
viable Ford Motor Company business going forward.

"These business results are clearly unacceptable," Mulally said.
"We are committed to dealing decisively with the fundamental
business reality that customer demand is shifting to smaller,
more efficient vehicles.  Our focused priorities are to
restructure aggressively to operate profitably at lower volumes,
and to accelerate the development of new, more efficient
vehicles that customers really want.

"We have great global assets and resources that we will leverage
to significantly improve our product strategy, our production
efficiency and quality.  This will enable us to meet customer
expectations for distinctive vehicles much more cost
effectively. These actions will lead to profitable growth of our
business over the long term."

                       Automotive Sector

On a pre-tax basis, worldwide Automotive Sector losses in the
third quarter were US$1.8 billion. This compares with a pre-tax
loss of US$1.3 billion during the same period a year ago.

Worldwide automotive sales for the third quarter declined to
US$32.6 billion from US$34.7 billion in the same period last
year. Worldwide vehicle unit sales in the quarter were
1,511,000, down from 1,531,000 a year ago.

North America:

In the third quarter, Ford's North America automotive operations
reported a pre-tax loss of US$2 billion, compared with a pre-tax
loss of US$1.2 billion a year ago.  The decline was largely
attributed to lower volumes and unfavorable mix, primarily
associated with lower industry volume and lower market share,
and higher incentives.  Cost reductions were a partial offset.
Sales were US$15.4 billion, down from US$18.2 billion for the
same period a year ago.

South America:

Ford's South America automotive operations reported a third-
quarter pre-tax profit of US$222 million, an improvement from a
pre-tax profit of US$96 million a year ago.  The improvement was
primarily explained by higher volume and favorable pricing.
Sales for the third quarter improved to US$1.5 billion from
US$1.2 billion in 2005.

Ford Europe

Ford Europe's third-quarter pre-tax loss was US$13 million
compared with a pre-tax loss of US$55 million during the 2005
period.  The improvement came from higher vehicles sales,
partially offset by higher pension-related costs, lower profits
from operations in Turkey and negative net pricing.  During the
third quarter, Ford Europe's sales were US$7.3 billion, compared
with US$6.4 billion during third quarter 2005.


Premier Automotive Group:

Premier Automotive Group reported a pre-tax loss of US$593
million for the third quarter, compared with a pre-tax loss of
US$108 million for the same period in 2005.   The decline was
explained by adverse cost performance, primarily reflecting
adjustments to Jaguar and Land Rover warranty accruals and lower
volume at all operations, excluding Aston Martin.  Improvements
in overhead costs were offset by increases in advertising.
Third-quarter sales for PAG were US$6.5 billion, compared with
US$6.8 billion a year ago.

Asia Pacific and Africa:

For the third quarter, Asia Pacific and Africa reported a pre-
tax loss of US$56 million, compared with a pre-tax profit of
US$21 million a year ago.  The decline primarily reflected lower
production and dealer inventories, adverse mix, and higher
incentives, partially offset by cost reductions. Sales were
US$1.6 billion, compared with US$1.9 billion in 2005.

Mazda:

During the third quarter of 2006, Ford's share of Mazda pre-tax
profits and associated operations was US$40 million, compared
with US$112 million during the same period a year ago.  The
decline primarily reflected the non-recurrence of mark-to-market
gains on Mazda convertible bonds during 2005, which have now
been entirely converted to equity.

Other Automotive:

Third-quarter results included a pre-tax profit of US$553
million in Other Automotive, compared with a loss of US$241
million a year ago.  The year-over-year improvement relates to
tax-related interest and higher portfolio returns.

                  Financial Services Sector

For the third quarter, the Financial Services sector earned a
pre-tax profit of US$448 million, compared with a pre-tax profit
of US$1.1 billion a year ago.

Ford Motor Credit Company reported net income of US$262 million
in the third quarter of 2006, down US$315 million from net
income of US$577 million a year earlier.  On a pre-tax basis
from continuing operations, Ford Motor Credit earned US$428
million in the third quarter, compared with US$901 million in
the previous year.  The decrease in earnings was attributed to
lower financing margins, higher depreciation expense and the
impact of lower average receivable levels.

                     Cash and Liquidity

The company ended the quarter with total cash, including
automotive cash, marketable securities, loaned securities and
short-term Voluntary Employee Beneficiary Association assets at
Sept. 30, 2006 of US$23.6 billion, unchanged from the end of the
second quarter.  The company's operating-related cash flow was
US$3.1 billion negative for the quarter.  During the quarter,
US$3 billion was transferred out of long-term VEBA and is now
included in total cash.

Don Leclair, executive vice president and chief financial
officer said, "As we restructure our business we will continue
to make investments in products necessary to ensure Ford's
future success. Throughout this period, maintaining strong
liquidity will continue to be a high priority."

                          Restatement

Ford has announced plans to restate certain financial results to
correct accounting under SFAS 133.  The preliminary third-
quarter results do not reflect these corrections.  The company
expects to finalize restatement amounts for this and previous
periods by the time it files its Quarterly Report on Form 10-Q
for the quarter ended Sept. 30, 2006. Financial statements
pertaining to the 2006 third quarter will be provided at that
time.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

                           *     *     *

As reported in TCR-Europe on Sept. 21, Moody's Investors Service
lowered Ford Motor Company's corporate family rating and senior
unsecured to B3 from B2, and Ford Motor Credit Company's senior
unsecured to B1 from Ba3.

Ford's Speculative Grade Liquidity rating has also been lowered
to SGL-3 from SGL-1.  The rating outlook is negative.  These
rating actions conclude a review for possible downgrade that was
initiated on Aug. 18.

At the same time, Standard & Poor's Ratings Services lowered its
long-term corporate credit ratings on Ford Motor Co., Ford Motor
Credit Co. and all related units -- except FCE Bank PLC -- to
'B' from 'B+' and its short-term ratings on these entities to
'B-3' from 'B-2.'

The ratings on FCE Bank, Ford Credit's European bank, were
lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch
rating differential between FCE and its parent that was
established in July.

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle
from R-3 high.  DBRS also lowered Ford Motor Credit Company's
long-term debt rating to BB(low) from BB, and confirmed Ford
Credit's short-term debt rating at R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to
'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured
rating to 'BB-/RR2' from 'BB/RR2'.  The Rating Outlook remains
Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor
Credit Co., and related entities on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  Moody's said the outlook for the
ratings is negative.


FORD MOTOR: FMCC Earns US$262 Million in 2006 Third Quarter
-----------------------------------------------------------
Ford Motor Credit Company reported preliminary financial results
with third quarter profits.  At the same time, Ford Motor Credit
disclosed plans to restate previous financial results from 2001
through the second quarter of 2006 to correct the accounting for
certain derivative transactions under the Statement of Financial
Accounting Standards 133, Accounting for Derivative Instruments
and Hedging Activities.

Ford Motor Credit reported net income of US$262 million in the
third quarter of 2006, down US$315 million from earnings of
US$577 million a year earlier.  On a pre-tax basis from
continuing operations, Ford Motor Credit earned US$428 million
in the third quarter, compared with US$901 million in the
previous year.  The decrease in earnings primarily reflected
lower financing margins, higher depreciation expense and the
impact of lower average receivable levels.

"Our high-quality portfolio continues to perform very well,
generating profits and dividends for Ford Motor Company," said
Mike Bannister, chairman and CEO.  "Our recently announced North
American restructuring along with our efforts to reduce our
costs globally will further enhance our operational
effectiveness."

On September 30, Ford Motor Credit's on-balance sheet net
receivables totaled US$135 billion, compared with US$132 billion
on December 31, 2005.  Managed receivables, which include on-
balance sheet receivables and securitized off-balance sheet
receivables that we continue to service, were US$148 billion,
compared with US$150 billion on December 31, 2005. Ford Motor
Credit paid cash dividends of US$300 million during the third
quarter.

               Restatement of Financial Results

Ford Motor Credit Company plans to restate previous financial
results from 2001 through the second quarter of 2006 to correct
the accounting for certain derivative transactions under the
Statement of Financial Accounting Standards 133, Accounting for
Derivative Instruments and Hedging Activities.

The correction to the accounting does not affect the economics
of the derivative transactions, or have any impact on the
company's cash.  However, the restatements are expected to
affect the preliminary financial results Ford Motor Credit
Company for its 2006 third quarter.  Ford Motor Credit Company
expects to finalize restatement amounts for the current and all
previous periods by the time of the filing of its Quarterly
Report on Form 10-Q for the quarter ended Sept. 30, 2006.

The company discovered that since 2001, certain interest rate
swaps Ford Motor Credit Company had entered into to hedge the
interest rate risk inherent in certain long-term fixed rate debt
were accounted for incorrectly under SFAS 133 because they did
not satisfy the standard's technical accounting rules to qualify
for exemption from the more strict effectiveness testing
requirements. Ford Motor Credit Company uses transactions
involving derivatives, including swaps, forwards and options, to
reduce economic risk and volatility in a disciplined and
defensive manner.

PricewaterhouseCoopers LLP, the company's independent registered
public accounting firm, audited Ford Motor Credit Company's 2001
through 2005 financial statements, which included a review of
these swaps.

"We are very disappointed that we must restate our earnings,"
said Bannister.  "We are committed to strong internal controls
and reporting transparency.  Our business fundamentals remain
sound, and our operations remain highly efficient and
profitable."

Ford Motor Credit Company's interest rate swaps were entered
into as part of its asset-liability management strategy.  The
swaps economically hedge the interest rate risk associated with
long-term debt issuances.  Although the final restatement
amounts have not yet been determined, based on the information
to date, the Company estimates that Ford Motor Credit Company's
results in 2002 will improve materially - other periods are
still under study.

                        About FMCC

Ford Motor Credit Company -- http://www.fordcredit.com/-- is
one of the world's largest automotive finance companies and has
supported the sale of Ford products since 1959.  Ford Motor
Credit operates in 36 countries and manages approximately US$148
billion in receivables.  Ford Motor Credit is an indirect,
wholly owned subsidiary of Ford Motor Company.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

                           *     *     *

As reported in TCR-Europe on Sept. 21, Moody's Investors Service
lowered Ford Motor Company's corporate family rating and senior
unsecured to B3 from B2, and Ford Motor Credit Company's senior
unsecured to B1 from Ba3.

Ford's Speculative Grade Liquidity rating has also been lowered
to SGL-3 from SGL-1.  The rating outlook is negative.  These
rating actions conclude a review for possible downgrade that was
initiated on Aug. 18.

At the same time, Standard & Poor's Ratings Services lowered its
long-term corporate credit ratings on Ford Motor Co., Ford Motor
Credit Co. and all related units -- except FCE Bank PLC -- to
'B' from 'B+' and its short-term ratings on these entities to
'B-3' from 'B-2.'

The ratings on FCE Bank, Ford Credit's European bank, were
lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch
rating differential between FCE and its parent that was
established in July.

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle
from R-3 high.  DBRS also lowered Ford Motor Credit Company's
long-term debt rating to BB(low) from BB, and confirmed Ford
Credit's short-term debt rating at R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to
'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured
rating to 'BB-/RR2' from 'BB/RR2'.  The Rating Outlook remains
Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor
Credit Co., and related entities on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  Moody's said the outlook for the
ratings is negative.


FORD MOTOR: Taps Delphi to Build Hybrid Powertrain Systems
----------------------------------------------------------
Ford Motor Company has selected Delphi Corporation to provide
hybrid electrical powertrain systems technologies for two Ford
hybrid vehicle platforms.

Delphi will provide the battery pack systems and cooling systems
for the 2008 Ford Fusion Hybrid and Mercury Milan Hybrid
vehicles.  It will also provide hybrid vehicle electronics for
several other yet-to-be announced vehicle customers.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

                           *     *     *

As reported in TCR-Europe on Sept. 21, Moody's Investors Service
lowered Ford Motor Company's corporate family rating and senior
unsecured to B3 from B2, and Ford Motor Credit Company's senior
unsecured to B1 from Ba3.

Ford's Speculative Grade Liquidity rating has also been lowered
to SGL-3 from SGL-1.  The rating outlook is negative.  These
rating actions conclude a review for possible downgrade that was
initiated on Aug. 18.

At the same time, Standard & Poor's Ratings Services lowered its
long-term corporate credit ratings on Ford Motor Co., Ford Motor
Credit Co. and all related units -- except FCE Bank PLC -- to
'B' from 'B+' and its short-term ratings on these entities to
'B-3' from 'B-2.'

The ratings on FCE Bank, Ford Credit's European bank, were
lowered to 'B+/B-3' from 'BB-/B-2', maintaining the one-notch
rating differential between FCE and its parent that was
established in July.

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle
from R-3 high.  DBRS also lowered Ford Motor Credit Company's
long-term debt rating to BB(low) from BB, and confirmed Ford
Credit's short-term debt rating at R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to
'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured
rating to 'BB-/RR2' from 'BB/RR2'.  The Rating Outlook remains
Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor
Credit Co., and related entities on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  Moody's said the outlook for the
ratings is negative.


FTI CONSULTING: Buys Brower Kriz & G3 Consulting for US$14 Mln
--------------------------------------------------------------
FTI Consulting Inc. has acquired Brower, Kriz & Stynchcomb and
G3 Consulting for a total of US$14 million.

Jack Dunn, president and chief executive officer, commented: "We
are excited to welcome BKS and G3 to FTI, and these purchases
are in keeping with our stated acquisition strategy.  These are
excellent companies that expand our capabilities to take
advantage of related market opportunities.  BKS brings
unparalleled experience in the domestic and international
construction industry to our Forensic and Litigation Consulting
segment.  G3's overall experience leveraging technology on
behalf of clients not only further extends our capabilities in
the UK, but also fits well with the needs of our newly-acquired
Financial Dynamics client base."

                   Brower, Kriz & Stynchcomb

Brower Kriz is a privately held, 31-person construction
consulting firm based in Maryland specializing in critical path
method schedule development, technical schedule review and
progress evaluation.  The purchase price for the acquisition was
approximately US$11.5 million, payable through a combination of
cash and restricted shares of the Company's common stock, plus
the opportunity for future contingent consideration based on
specified financial objectives over the next five years.  The
three key Brower Kriz principals, Barry Brower, Jarad Kriz and
Paul Stynchcomb have joined the Company and have signed five
year employment agreements.

Mr. Brower said: "Joining with FTI is a major forward step for
us.  It offers us a broader range of client opportunities as
well as providing FTI's clients in the construction industry
with deep service capability."

                         G3 Consulting

Privately held G3 Consulting is a UK-based, six-person
organization that delivers technology and business consulting to
UK clients facing corporate litigation, electronic disclosure
and public inquiries.  The Company acquired G3 for approximately
$2.5 million through a combination of cash and restricted shares
of the Company's common stock.  For the past six years G3 has
served as the primary direct UK supplier of the Company's
Ringtail Legal products, as well as provided associated
Application Service Provider and professional and consulting
services.  G3 also brings extensive experience in the area of
electronic disclosure, having advised the UK's top law firms and
corporate legal departments on how best to increase the speed,
efficiency and quality of their electronic review using web
based tools.

Andrew Kennell, a Director of G3, said: "G3 has enjoyed a long
and productive relationship with FTI Ringtail.  Joining forces
with FTI's team is the natural progression to being able to
provide a wider range of services and support to our clients."

FTI Consulting Inc. (NYSE:FCN) provides problem-solving
consulting and technology services to major corporations,
financial institutions and law firms when confronting critical
issues that shape their future and the future of their clients,
such as financial and operational improvement, major litigation,
complex investigations, mergers and acquisitions and regulatory
issues.  FTI's total workforce of more than 1,400 employees
includes numerous PhDs, MBAs, CPAs, CIRAs and CFEs, who are
committed to delivering the highest level of service to clients.
FTI Consulting has offices in the United States, the United
Kingdom, Australia, China, Hong Kong, Japan, and Singapore.

                           *     *     *

As reported in the Troubled Company Reporter on Sept. 19, 2006,
Standard & Poor's Ratings Services assigned its 'B+' rating to
FTI Consulting Inc.'s US$215 million senior notes due 2016.

At the same time, Standard & Poor's affirmed the corporate
credit rating of FTI at 'BB-' and revised the outlook to
positive from stable, based on strong earnings performance and
talent retention.

As reported in the Troubled Company Reporter on Sept. 18, 2006
Moody's Investors Service assigned a Ba2 rating to FTI
Consulting, Inc.'s proposed US$215 million of senior unsecured
notes and lowered the ratings on its US$150 million senior
subordinated convertible notes to B1 from Ba3.  Moody's affirmed
the Ba2 corporate family rating and the Ba2 rating on FTI's
existing senior unsecured notes.  Moody's said the rating
outlook remains stable.


FURNITURE EXPRESS: Brings In PwC as Joint Administrators
--------------------------------------------------------
David Walker and Roger Marsh of PricewaterhouseCoopers LLP were
appointed joint administrators of Furniture Express Ltd.
(Company Number 05590213) on Oct. 4.

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--
provides, among others, auditing services, accounting advice,
tax compliance and consulting, financial consulting and advisory
services to clients in a variety of industries.

Furniture Express Ltd. can be reached at:

         Unit 8
         Colima Avenue
         Hylton Riverside
         Sunderland Enterprise Park
         Sunderland
         Tyne and Wear SR5 3XF
         United Kingdom
         Tel: 01772 888812


GENERAL MOTORS: GMAC Gets EC Clearance for Cerberus Purchase
------------------------------------------------------------
The European Commission has granted clearance under the EU
Merger Regulation to the acquisition of sole control of General
Motors Acceptance Corporation by Cerberus Group.

Cerberus is active in investment in real property and personal
property worldwide and is ultimately controlled by Stephen A.
Feinberg.  GMAC is active in the EEA in vehicle related
activities such as loan and leasing finance, reinsurance, second
hand vehicle sales and fleet management services and in
financial services and employee relocation services.

The Commission examined the operation under its simplified
merger review procedure.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                           *     *     *

As reported in the Troubled Company Reporter on Oct. 11, 2006,
Standard & Poor's Ratings Services said that its 'B' long-term
and 'B-3' short-term corporate credit ratings on General Motors
Corp. would remain on CreditWatch with negative implications,
where they were placed March 29, 2006.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corporation and General Motors of
Canada Limitedto B.  The commercial paper ratings of both
companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.

The 'RR1' is based on the collateral package and other
protections that are expected to provide full recovery in the
event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors
Corporation, affirmed the company's B3 corporate family and SGL-
3 speculative grade liquidity ratings, and lowered its senior
unsecured rating to Caa1 from B3.  The rating outlook is
negative.


GENERAL MOTORS: Prepares for Possible Proxy Battle vs. Kerkorian
----------------------------------------------------------------
General Motors Corp. has beefed up its ranks of legal and
financial advisors in preparation for a possible takeover by
investor Kirk Kerkorian, Bernard Simon writes for the Financial
Times.

Analysts interviewed by FT say that Mr. Kerkorian could launch a
proxy battle to replace some of GM's directors and exert greater
control over the automaker.

Mr. Kerkorian, however, has kept silent about his plans for GM
after a proposed merger with Renault-Nissan, which he had
supported, collapsed last month.  Jerome York, Mr. Kerkorian's
representative to GM, resigned from the automaker's board after
talks with Renault-Nissan ended.

GM had refused to pursue an alliance with Renault-Nissan, saying
a partnership with the Franco-Japanese carmaker would
substantially disadvantage GM shareholders.  GM stated that it
will focus its energies on its turnaround program and claimed
that it is making real progress in its efforts.

Mr. Simon further reports that GM's board has approved certain
changes in the Company's bylaws intended to curb outsiders from
removing existing directors and putting issues to a shareholder
vote.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                           *     *     *

As reported in the Troubled Company Reporter on Oct. 11, 2006,
Standard & Poor's Ratings Services said that its 'B' long-term
and 'B-3' short-term corporate credit ratings on General Motors
Corp. would remain on CreditWatch with negative implications,
where they were placed March 29, 2006.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corporation and General Motors of
Canada Limited to B.  The commercial paper ratings of both
companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.

The 'RR1' is based on the collateral package and other
protections that are expected to provide full recovery in the
event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors
Corporation, affirmed the company's B3 corporate family and SGL-
3 speculative grade liquidity ratings, and lowered its senior
unsecured rating to Caa1 from B3.  The rating outlook is
negative.


GENERAL STEELS: Appoints Administrators from Gerald Edelaman
------------------------------------------------------------
Ian Douglas Yerrill and Bernard Hoffman of Gerald Edelman
Business Recovery were appointed joint administrators of General
Steels Ltd. (Company Number 02777360) on Oct. 10.

Headquartered in London, United Kingdom, Gerald Edelman --
http://www.geraldedelman.com/-- is registered to carry on audit
work by the Institute of Chartered Accountants in England and
Wales and is authorized and regulated by the Financial Services
Authority.

General Steels Ltd. can be reached at:

         Conduit Road
         Norton Canes
         Cannock
         Staffordshire WS11 9TJ
         United Kingdom
         Tel: 01543 458800


HCA INC: Shareholders' Special Meeting Set for November 16
----------------------------------------------------------
HCA Inc. has established a record date and special meeting date
for its shareholders to consider and vote upon the proposal to
adopt the previously announced merger agreement providing for
the acquisition of HCA by an investor group led by Bain Capital,
Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private
Equity and HCA founder Dr. Thomas F. Frist, Jr.

HCA shareholders of record at the close of business on Oct. 6,
2006, will be entitled to notice of the special meeting and to
vote on the proposal.  The special meeting will be held on
Nov. 16, 2006 at 11:00 a.m., local time, at HCA's executive
offices located at One Park Plaza, Nashville, Tennessee 37203.

Headquartered in Nashville, Tennessee, HCA (Hospital Corporation
of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/--
is a healthcare services provider, composed of locally managed
facilities that include approximately 182 hospitals and 94
outpatient surgery centers in 22 states, England and
Switzerland.  At its founding in 1968, HCA was one of the
nation's first hospital companies.


HCA INC: US$33-Bln Merger Deal Cues S&P's B+ Corp. Debt Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its existing ratings
on Nashville, Tennessee-based HCA Inc.  The corporate credit
rating was lowered to 'B+' from 'BB+'.  The ratings were removed
from CreditWatch, where they were placed with negative
implications July 24, 2006, following the announcement that the
company had entered into a merger agreement with a private
equity consortium; the transaction is valued at about
US$33 billion.  The rating outlook is negative.

"The three-notch downgrade of the corporate credit rating
reflects our lower rating opinion of HCA assuming that its
pending LBO is completed, and is financed by the US$22.5 billion
of proposed senior secured debt currently being considered by
investors," explained Standard & Poor's credit analyst David
Peknay.

Also, Standard & Poor's assigned its loan and recovery ratings
to HCA's proposed US$16.8 billion senior secured credit
facilities and US$5.7 billion second-lien notes.  The first-lien
credit facilities were rated 'BB' with a recovery rating of '1',
indicating a high expectation for full recovery of principal in
the event of a payment default.  The second-lien notes were
rated 'BB-' with a recovery rating of '1', also indicating a
high expectation for full recovery of principal in the event of
a default.  The ratings are subject to revision if the size or
terms of the deal change.

In addition, S&P lowered the rating on HCA's senior unsecured
notes by five notches, to 'B-' from 'BB+'.  The rating on the
unsecured notes is now two notches below the 'B+' corporate
credit rating -- in line with Standard & Poor's criteria.
Although the notes are considered senior, the company will now
have a sizable amount of priority debt (primarily secured bank
debt and capitalized operating leases).  Because of the
overwhelming magnitude of priority debt in the capital structure
(now totaling about 100% of total eligible assets -- far greater
than the 30% threshold in our criteria), the unsecured notes are
considered materially disadvantaged.

The low-speculative grade rating on HCA reflects the company's
significant debt leverage as a result of its pending LBO, as
well as key industry risks, such as uncertain third-party
reimbursement, rising bad debt, and competitive forces that have
hurt patient volume.  HCA is the largest U.S. owner and operator
of acute health care facilities, with a large portfolio of 172
hospitals and 95 ambulatory surgery centers in 21 U.S. states,
the U.K., and Switzerland.


HEMRO ASSOCIATES: Appoints G.D. Sharma as Administrator
-------------------------------------------------------
G. D. Sharma of Sharma & Co. was appointed administrator of
Hemro Associates Ltd. (Company Number 04353549) on Oct. 6.

The administrator can be reached at:

         G. D. Sharma
         Sharma & Co.
         50 Newhall Street
         Birmingham
         West Midlands B3 3QE
         Tel: 0121 248 5007
         Fax: 0121 248 5010
         E-mail: gagen@sharmaandco.com

Hemro Associates Ltd. can be reached at:

         Albany House
         14 Shute End
         Wokingham
         Berkshire RG40 1BJ
         United Kingdom
         Tel: 01189 742 36


HERGOLD AND COMPANY: Claims Registration Ends Dec. 23
-----------------------------------------------------
Creditors of Hergold and Company Limited have until Dec. 23 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
Anthony Hyams at:

         Marriotts LLP
         Allan House
         10 John Princes Street
         London W1G 0AH
         United Kingdom

The company can be reached at:

         Hergold and Company Limited
         Cannon Lane
         Luton LU2 8BJ
         United Kingdom
         Tel: 01582 725 506
         Fax: 01582 483 454


HUGHES LIMITED: Brings In PKF to Administer Assets
--------------------------------------------------
S. P. Holgate and P. L. Armstrong of PKF (U.K.) LLP were
appointed joint administrators of Hughes (Finishings) Ltd.
(Company Number 3212643) on Oct. 6.

Headquartered in London, United Kingdom, PKF (UK) LLP --
http://www.pkf.co.uk-- is one of U.K.'s leading firms of
accountants and business advisers, which specializes in advising
the management of developing private and public businesses.  Its
principal services include assurance & advisory; corporate
finance; corporate recovery & insolvency; forensic; management
consultancy and taxation.  It also offers financial services
through its FSA authorized company, PKF Financial Planning
Limited.

Hughes (Finishings) Ltd. can be reached at:

         Unit 8
         Suffolk Drive
         Chelmsford
         Essex CM2 6UN
         United Kingdom
         Tel: 01245 466 200
         Fax: 01245 467 111


INFO-TECH SYSTEMS: Taps Liquidator from B & C Associates
--------------------------------------------------------
Jeffrey Mark Brenner of B & C Associates was appointed
Liquidator of Info-Tech Systems.com Limited (formerly Task Tick
Limited) on Oct. 11 for the creditors' voluntary winding-up
procedure.

Headquartered in Mansfield, United Kingdom, Info-Tech
Systems.com Limited -- http://www.infotechshop.co.uk/--
supplies computer systems, servers, components, networking and
consultancy for business, resellers and education.


INGREDIENT MANAGEMENT: Appoints Liquidator from Findlay James
-------------------------------------------------------------
Alisdair J. Findlay of Findlay James was appointed Liquidator of
Ingredient Management Limited on Oct. 10 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Ingredient Management Limited
         7 St. Johns Road
         Harrow
         Middlesex HA1 2EY
         United Kingdom
         Tel: 01372 379 999


INSTRUMENT TECHNOLOGY: Hires Menzies to Administer Assets
---------------------------------------------------------
Andrew Gordon Stoneman and Paul John Clark of Menzies Corporate
Restructuring were appointed joint administrators of Instrument
Technology Ltd. (Company Number 02631363) on Oct. 9.

Headquartered in London, Menzies Corporate Restructuring --
http://www.menzies.co.uk/-- is a member of Moores Rowland
International, an association of independent accounting firms
throughout the world with some 20,800 partners and staff,
operating from 628 offices in 92 countries.

Instrument Technology Ltd. can be reached at:

         Ponswood Industrial Estate
         Menzies Road
         St. Leonards-On-Sea
         East Sussex TN38 9AZ
         United Kingdom
         Tel: 01424 442121


INVESTA PLC: FA Simms Selling Structured Product Provider
---------------------------------------------------------
R.F. Simms Esq., FCA & M.R. Buttriss Esq., Mipa., of F.A. Simms
& Partners Plc., in their capacity as joint administrators for
Eurolife Assurance  Group Limited, are offering for sale the
assets of Investa Plc, a structured product provider.

The assets for sale features:

   -- GBP122 million of funds under management;

   -- 12,000 current investors

   -- total database of approximately 70,000 investors; and

   -- potential to generate in excess of GBP2.5 million in
      revenue over next four years.

Inquiries can be addressed to:

         F.A. Simms & Partners Plc
         Insol House
         39 Station Road,
         Lutterworth
         Leicestershire LE17 4AP
         Tel: 01455 555444
         Fax: 01455 552572
         E-mail: Mbuttriss@fasimms.com

F.A. Simms and Partners PLC -- http://www.fasimms.com/--
provides insolvency-related service to businesses and
individuals.


KOPPERS HOLDING: Moody's Assigns LGD6 Rating on Sr. Unsec. Notes
----------------------------------------------------------------
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. Chemicals and Allied Products sector,
the rating agency confirmed its B1 Corporate Family Rating for
Koppers Holding Inc. and its B3 rating on the company's
US$203 million 9.875% Sr Unsec Discount Global Notes due 2014.
Additionally, Moody's assigned an LGD6 rating to those bonds,
suggesting noteholders will experience a 90% loss in the event
of a 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 our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's 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 Pittsburgh, Pennsylvania, Koppers Holding Inc.,
-- http://www.koppers.com/-- is an integrated global provider
of carbon compounds and commercial wood treatment products.  The
Company's products are used in a variety of applications in a
range of end markets, including the aluminum, railroad,
specialty chemical, utility, rubber and steel industries. The
Company operates two principal businesses: Carbon Materials &
Chemicals, and Railroad & Utility Products.  Through the Carbon
Materials and Chemicals business, the Company is a distiller of
coal tar in North America, Australia, the United Kingdom and
Scandinavia.


N.P.W. DUCTWORK: Appoints Administrators from Rothman Pantall
-------------------------------------------------------------
R. D. Smailes and S. B. Ryman of Rothman Pantall & Co. were
appointed joint administrators of N.P.W. Ductwork Services Ltd.
(Company Number 03718390) on Oct. 9.

Rothman Pantall & Co. -- http://www.rothman-pantall.co.uk/--
was established in 1955 as a general accountancy practice, and
has grown to its present 18 offices across the South of England.
It is one of the largest independent firms of Chartered
Accountants in the region, and rank in the top 40 in the United
Kingdom.

Headquartered in Reading, United Kingdom, N.P.W. Ductwork
Services Ltd. manufactures metal structures and parts.


NATIONWIDE SECURITY: Creditors' Claims Due Nov. 13
--------------------------------------------------
Creditors of Nationwide Security Solutions Limited have until
Nov. 13 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 C. H. I. Moore at:

         H. I. Moore
         K J Watkin & Co.
         Emerald House
         20-22 Anchor Road
         Aldridge
         Walsall
         United Kingdom

Headquartered in West Bromwich, United Kingdom, Nationwide
Security Solutions Limited installs burglar alarms and security
systems.


NEIL GRINNALL: Dunbar Bank Appoints Moore Stephens as Receivers
---------------------------------------------------------------
Dunbar Bank PLC appointed N. Price, M. E. T. Bowen and D. Rolph
of Moore Stephens LLP joint administrative receivers of Neil
Grinnal Classic Homes Ltd. (Company Number 03591318) on
Sept. 20.

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 Stourport on Severn, United Kingdom, Neil
Grinnal Classic Homes Ltd. sells and manages real estates.


NEWMAN SUPPORT: Brings In XL Business to Administer Assets
----------------------------------------------------------
Jeremy Nicholas Bleazard of XL Business Solutions Ltd. was
appointed administrator of Newman Support Services Ltd. (Company
Number 05345752) on Oct. 10.

The administrator can be reached at:

         Jeremy Nicholas Bleazard
         XL Business Solutions Limited
         1st Floor
         2-4 Market Street
         Cleckheaton BD19 5AJ
         United Kingdom
         Fax: 01274 870606
         Tel: 01274 870101
         E-mail: enquiries@xlbs.co.uk
                 jbleazard@xlbs.co.uk

Newman Support Services Ltd. can be reached at:

         9C Sandygate
         Wath-Upon-Dearne
         Rotherham
         South Yorkshire S63 7LN
         United Kingdom
         Tel: 01709 760 696
         Fax: 01709 876 215


NOVELIS INC: Expects Improved Financial Performance in 2007
-----------------------------------------------------------
Novelis Inc. would be providing guidance for 2006 and 2007 as
part of its strategic and financial update.

                            Highlights

   -- the company continues to generate solid cash flow.
      Novelis expects total free cash flow for 2006 to be
      between US$150 million and US$200 million, and believes
      it will remain in that range for 2007 as the company
      improves its risk mitigation program.

   -- the company anticipates a return to positive earnings
      before taxes in 2007.  For the full year of 2006, Novelis
      expects to post a loss before taxes of between
      US$240 million and US$285 million.  For the full year of
      2007, the company anticipates earnings before taxes of
      between US$35 million and US$100 million.  This expected
      upswing is due primarily to the elimination of half of the
      company's can sheet price ceiling exposure, expected
      increases in rolled product shipments, and expected
      corporate cost reductions.

   -- the company estimates that shipments for 2006 will be
      between 3,140 and 3,170 kilotons.  In 2007, shipments are
      forecasted to grow by 3 to 4 percent compared to 2006.

   -- for 2006, Novelis estimates capital expenditures of
      between US$110 million and US$115 million.  For 2007, the
      company expects that its capital expenditure run rate will
      return to traditional investment levels of between
      US$165 million and US$175 million.

   -- longer term, the company will target:

      * an annual growth rate of 7% to 10% for regional income
        less corporate costs;

      * annual returns on invested capital exceeding 12%;

      * annual free cash flow surpassing USUS$400 million; and

      * a debt-to-EBITDA ratio of between 2.5x and 3.0x.

Novelis said that all forward estimates assume an average price
for primary aluminum of US$2,500 per metric ton on the London
Metal Exchange.

"We believe that we are nearing the end of a difficult
transition period," William T. Monahan, chairman and interim
chief executive officer, said.  "The fundamentals of our
business remain strong, and we are pleased with our future
outlook as the result of the actions we have taken, and will
continue to take, to enhance shareholder value."

The company reiterated that it is on track to file its Form 10-Q
for the second quarter by Oct. 20, 2006, and to be current with
its filings once it files its third-quarter report during the
fourth quarter.

The company also noted that its previously reported commitments
for backstop financing facilities totaling US$2.855 billion from
Citigroup Global Markets Inc. have been extended to Oct. 31,
2006.  In the event that Novelis is not able to file its
quarterly report on Form 10-Q for the second quarter of 2006 by
the deadlines defined in the notice of default and in its Credit
Agreement waiver, the backstop financing facilities would
provide the funding necessary to retire the Senior Notes and, if
needed, replace the Company's existing term loan and revolving
credit facility.

In addition, Novelis announced that it will be requesting an
amendment to its US$1.8 billion Credit Agreement to modify
certain financial covenants and other provisions contained in
the Agreement. Specifically, Novelis will request that the
lenders under the Credit Agreement temporarily relax the
interest coverage covenant, leverage ratio covenant, and fixed
charges covenant among other things.

                        About Novelis Inc.

Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  In Europe, the company maintains operations in
France, Germany, Luxembourg, Switzerland and the United Kingdom.
Through its advanced production capabilities, the company
supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 19,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for Novelis Inc. in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the North American
Metals & Mining sectors.

As reported in TCR-Europe on Oct. 13, Fitch initiated the
ratings for Novelis Inc. and its subsidiary Novelis Corp.:

Novelis Inc.

   -- Issuer Default Rating B;
   -- Senior secured credit facility BB/Recovery Rating 1; and
   -- Senior unsecured notes B/RR4;

Novelis Corp.

   -- Issuer Default Rating B; and
   -- Senior secured credit facility BB/RR1.


OVERSEAS SHIPHOLDING: Gets Early Termination of Waiting Period
--------------------------------------------------------------
Overseas Shipholding Group Inc. and Maritrans Inc. jointly
disclosed that the Federal Trade Commission, on behalf of the
Antitrust Division of the Department of Justice, granted early
termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.

As reported by the Troubled Company Reporter on Sept. 28, 2006,
Overseas Shipholding Group and Maritrans entered into a
definitive merger agreement pursuant to which the Company will
acquire Maritrans Inc. for US$37.50 per share, subject to other
customary conditions, including approval of Maritrans'
stockholders.

                        About Maritrans

Headquartered in Tampa, Florida, Maritrans Inc., (NYSE: TUG)
-- http://www.maritrans.com/-- is a U.S.-based company with a
78-year commitment to building and operating petroleum transport
vessels for the U.S. domestic trades.  Maritrans employs a fleet
of 11 ATBs, five product carriers, two of which have been
redeployed to transport non-petroleum cargoes, and three large
ATBs under construction.  Approximately 75% of the Company's oil
carrying fleet capacity is double-hulled with a fleet capacity
aggregating approximately 3.4 million barrels, 79% of which is
barge capacity. Maritrans maintains an office in the
Philadelphia area.

              About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE:OSG) --
http://www.osg.com/-- is a publicly traded tanker companies in
the world with an owned, operated and newbuild fleet of 117
vessels, aggregating 13.0 million dwt and 865,000 cbm, as of
June 30, 2006.  As a market leader in global energy
transportation services for crude oil and petroleum products in
the U.S. and International Flag markets, the Company is
committed to setting high standards of excellence for its
quality, safety and environmental programs.  OSG is recognized
as one of the world's most customer-focused marine
transportation companies, with offices in New York, Athens,
London, Newcastle and Singapore.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 9, 2006,
Moody's Investors Service affirmed the debt ratings of Overseas
Shipholding Group, Inc.'s Senior Unsecured at Ba1.  The outlook
has been changed to stable from negative.


PROFILO TELRA: Fitch Assigns Foreign Currency IDR at B
------------------------------------------------------
Fitch Ratings assigned Turkey-based Profilo Telra Elektronik
Sanayi ve Ticaret A.S. a foreign currency Issuer Default rating
of B with Stable Outlook.

Fitch has also assigned Profilo-related HD Capital S.A.'s
prospective EUR100 million fixed-rate guaranteed loan
participation notes an expected foreign currency senior
unsecured rating of B and an expected Recovery Rating of RR4.
At the same time, Profilo's local currency IDR B with Stable
Outlook and National Long-term rating BBB+ with Stable Outlook
are affirmed.

The final ratings on the LPNs are contingent on receipt of final
documents conforming to information already received and receipt
of satisfactory legal opinions.

HD Capital has the sole purpose of using the LPNs proceeds to
finance a loan to Profilo as set out in a loan agreement, the
rights and benefits of which are charged to the benefit of LPN
noteholders.  The expected rating of the LPNs is in line with
Profilo's foreign currency IDR B.

Proceeds of the notes will be used to fund working capital
requirements, refinance existing debt and for general corporate
purposes.  The notes will constitute direct, unsecured and
unconditional obligations of Profilo.

The notes will rank equally with all other present or future
unsecured and unsubordinated obligations of Profilo.  The terms
and conditions of the loan agreement include a limitation on
Profilo's debt, using a maximum leverage ratio of 4x and
consolidated fixed charge coverage ratio of 2.25x.

There are also restrictions on dividend payments by Profilo.
Furthermore, upon asset sales by Profilo above a certain amount,
noteholders can request that these proceeds be used to prepay
their LPNs at par.  In the event of a change of control relating
to Profilo, noteholders have the right to require the issuer to
prepay their LPNs.

There are also covenants relating to transactions with
affiliates, mergers and disposals as described in the loan
agreement.  The governing law of the loan agreement, including
the guarantees in place and the LPNs, is English law and the
jurisdiction is the courts of England.


PURVES & PURVES: Creditors Confirm Liquidator's Appointment
-----------------------------------------------------------
Creditors of Purves & Purves Limited (formerly Honeyminster
Limited) confirmed Oct. 10 the appointment of Mark Stephen
Goldstein as the company's Liquidator.

The company can be reached at:

         Purves & Purves Limited
         220 224
         Tottenham Court Road
         Camden
         London W1T 7PZ
         United Kingdom
         Tel: 020 7580 8223
         Fax: 020 7580 8244


QUEBECOR WORLD: Closing French Roto-Gravure Facility
----------------------------------------------------
Quebecor World Inc. intends to close its roto-gravure facility
in Lille, France as part of its ongoing restructuring efforts.

The Lille facility will be phased out during the coming months
and is expected to close at the end of the second quarter of
2007.  The closure will affect approximately 230 employee
positions.  Some of the workforce will be offered opportunities
to transfer to the Charleroi, Belgium facility.

Taking into account earlier restructuring initiatives and the
investment in the latest wide-web gravure technology in
Charleroi, the Company estimates the impact to its European
gravure capacity is essentially neutral.

Quebecor World Inc. -- http://www.quebecorworld.com/-- provides
print solutions to publishers, retailers, catalogers and other
businesses with marketing and advertising activities.  Quebecor
World has approximately 29,000 employees working in more than
120 printing and related facilities in the United States,
Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia,
Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland
and the United Kingdom.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 2, 2006,
Standard & Poor's Ratings Services lowered its ratings on
commercial printer Quebecor World Inc., including its long-term
corporate credit rating to 'B+' from 'BB-', and placed the
ratings on CreditWatch with negative implications.

As reported in the Troubled Company Reporter on Aug. 18, 2006,
Moody's Investors Service placed the Ba3 Corporate Family
Rating, Ba3 Senior Unsecured rating and B2 Senior Subordinated
ratings of Quebecor World Inc.'s subsidiaries under review for
possible downgrade.

As reported in the Troubled Company Reporter on Aug. 11, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of Quebecor World Inc. and related entities to BB from
BB (high) and downgraded the Cumulative Redeemable Preferred
Shares to Pfd-4 from Pfd-4 (high).  DBRS said the trends remain
negative.


RADNOR HOLDINGS: Blocks Panel's Move to Extend Bidding Process
--------------------------------------------------------------
Radnor Holdings Corporation and its debtor-affiliates oppose the
Official Committee of Unsecured Creditors' motion to amend
bidding procedures governing the sale of substantially all of
their assets.  The Debtors say the Committee's extension motion
will place them in default under the terms of their debtor-in-
possession financing agreement.

As reported in the Troubled Company Reporter on Oct. 5, 2006,
the Court has scheduled a Nov. 20 auction for the assets.  TR
Acquisition Company, Inc., an affiliate of Tennenbaum Capital
Partners, LLC, the Debtors' prepetition term loan agent, will be
offering the face amount of its claim as a substitute for some
of the cash at the auction.  TR Acquisition has been designated
as the "stalking horse bidder" under an agreement previously
entered into with the Debtors.

Under the approved bid procedures, other bidders have until
Nov. 16, 2006 to challenge Tennenbaum's "stalking-horse" status.
The Committee wants the Court to move the "stalking horse" bid
deadline to Nov. 20, 2006 and set Nov. 21, 2006, as the
"stalking horse" selection date.  The Committee further asks the
Court to extend the remaining dates in the Bid Procedures by
approximately 30 days.

                      Committee's Reasons

Victoria W. Counihan, Esq., at Greenberg Traurig, LLP, told the
Court the Committee remains convinced that the sale process is
nothing more than a scheme to transfer the Debtors' assets to
Tennenbaum, who is a prepetition lender, a shareholder and
insider of the Debtors.

According to Ms. Counihan, the Committee agreed to the bid
procedures on the premise that it would provide a level playing
field for bidders to participate and would be structured so as
not to shut out a restructuring plan or other internal
reorganization to the extent one was viable.

However, the Committee accuses the Debtors of engaging in
activities that effectively freeze potential bidders out of the
auction and bar the Committee from developing its own
reorganization strategy.  The Committee says, the proposed
revision of the bid process will allow other bidders to
participate and give them sufficient time to formulate an
alternative reorganization plan.

                       Debtors' Response

The Debtors discount the Committee's allegations.  According to
the Debtors,  the committee's motion seeks to enjoin TR
Acquisition from exercising its rights as permitted by the bid
procedures and is a collateral attack on the final DIP financing
order.

The Debtors remind the court that a failure to proceed with an
auction on Nov. 20, 2006 would constitute a default on the DIP
financing agreement, triggering termination of the DIP agreement
on Dec. 1, 2006.

Headquartered in Radnor, Pennsylvania, Radnor Holdings
Corporation -- http://www.radnorholdings.com/-- manufactures
and distributes a broad line of disposable food service products
in the United States, and specialty chemicals worldwide.  The
Debtor and its affiliates filed for chapter 11 protection on
Aug. 21, 2006 (Bankr. D. Del. Case No. 06-10894).  Gregg M.
Galardi, Esq., and Mark L. Desgrosseilliers, Esq., at Skadden,
Arps, Slate, Meagher, represent the Debtors.  Victoria Watson
Counihan, Esq., at Greenberg Traurig, LLP, represents the
Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed total
assets of US$361,454,000 and total debts of US$325,300,000.


RBA RESEARCH: Appoints Begbies Traynor as Administrators
--------------------------------------------------------
Michael Edward George Saville and Rob Sadler of Begbies Traynor
were appointed joint administrators of RBA Research Ltd.
(Company Number 02345850) on Oct. 11.

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 Leeds, United Kingdom, RBA Research Ltd. is
engaged in market research and opinion polling.


ROY FIRMAN: HSBC Bank Taps PwC as Administrative Receivers
----------------------------------------------------------
HSBC Bank PLC appointed Karen Lesley Dukes, Colin Michael
Trevethyn Haig and Michael David Gercke of
PricewaterhouseCoopers LLP joint administrative receivers of Roy
Firman Ltd. (Company Number 01306909) on Oct. 11.

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--
provides, among others, auditing services, accounting advice,
tax compliance and consulting, financial consulting and advisory
services to clients in a variety of industries.

Roy Firman Ltd. can be reached at:

         14 Maple Road
         Eastbourne
         East Sussex BN23 6NY
         United Kingdom
         Tel: 01323 644 444
         Fax: 01323 410 753


ROY FIRMAN: PwC Selling Garden Furniture Distributor
----------------------------------------------------
Michael Gercke, Colin Haig and Karen Dukes, in their capacity as
joint administrative receivers for Roy Firman Ltd., are offering
to sell the company's business and assets.

The assets for sale features:

   -- a reputable distributor of garden furniture;
   -- established for over 25 years;
   -- turnover of around GBP4 million;
   -- strong customer base; and
   -- dedicated and experienced staff.

Inquiries can be addressed to:

         Mark Andrews
         PricewaterhouseCoopers LLP
         First Point
         Buckingham Gate
         Gatwick RH6 0PP
         Tel: 01293 566682
         Fax: 01293 566601
         E-mail: mark.andrews@uk.pwc.com

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--
provides auditing services, accounting advice, tax compliance
and consulting, financial consulting and advisory services to
clients in a variety of industries.


SEA CONTAINERS: First Meeting of Creditors Slated for Nov. 21
-------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
will convene a meeting of Sea Containers, Ltd., Sea Containers
Services, Ltd., and Sea Containers Caribbean, Inc.'s creditors
at 10:00 a.m., on Nov. 21.

The meeting will be held at:

         Room 2112
         2nd Floor
         J. Caleb Boggs Federal Building
         844 North King Street
         Wilmington, Delaware

This is the first meeting of creditors required under 11 U.S.C.
Sec 341(a) in all bankruptcy cases.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

                    About Sea Containers Ltd.

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.


SEA CONTAINERS: Trustee Sets Organizational Meeting for Oct. 26
---------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
will convene an organizational meeting in Sea Containers, Ltd.,
Sea Containers Services, Ltd., and Sea Containers Caribbean,
Inc.'s Chapter 11 cases at 1:00 p.m. on Oct. 26.

The meeting will be held at:

         Room 2112
         2nd Floor
         J. Caleb Boggs Federal Building
         844 North King Street
         Wilmington, Delaware

The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' bankruptcy
cases.  This is not a meeting of creditors pursuant to Section
341 of the Bankruptcy Code.  However, a Debtor's representative
will attend and provide background information regarding the
cases.

                    About Sea Containers Ltd.

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.


SEA CONTAINERS: Reed Conner Ceases to be Major Shareholder
----------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Reed Conner & Birdwell, LLC, discloses that it has
ceased to be the beneficial owner of more than 5% of the Common
Stock of Sea Containers, Ltd.

As of October 20, 2006, the investment adviser beneficially
owned 1,100 shares of the Company's common stock.

A month earlier, as of September 11, 2006, Reed Conner
beneficially owned 2,818,510 shares, representing 10.84% equity
stake in Sea Containers.

Donn B. Conner is the firm's president and chief executive
officer while Jeffrey Bronchick is the chief investment officer.

                    About Sea Containers Ltd.

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.


SOLO CUP: Ends Review of Accounting Issues & Restates Financials
----------------------------------------------------------------
Solo Cup Company has completed its review of accounting issues
and, based on that review, has restated some of its previously
issued consolidated financial statements.

The company filed with the Securities and Exchange Commission on
Oct. 16, 2006, two restated financials:

   -- for the year ended Jan. 1, 2006, and
   -- for the first quarter ended April 2, 2006.

The company has also filed its Form 10-Q for the second quarter
ended July 2, 2006, with the SEC, the filing of which had been
delayed pending completion of the review.

The filing of the second quarter 2006 Form 10-Q has satisfied
the terms of the indenture for the company's 8.5% Senior
Subordinated Notes due 2014.  In addition, on Oct. 13, 2006, the
company concluded its previously announced discussions with its
lenders under its credit facilities and obtained a waiver and
amendment through Jan. 2, 2007, with regard to those facilities.

The company's second-quarter results included:

   -- net sales of US$670.3 million, an increase of US$23.4
      million, or 3.6%, from the prior-year quarter, as
      restated;

   -- gross profit of US$92.0 million, up 12% from the prior-
      year quarter, as restated; and

   -- a net loss of US$299.4 million, primarily reflecting a
      US$228.5 million non-cash charge for the impairment of the
      company's goodwill and a US$105.0 million non-cash charge
      to income taxes to establish a valuation allowance for its
      deferred tax assets.

"Two months to the day since we announced the delay in the
filing of our second-quarter results and the launch of our
internal review, we are pleased to report that we have completed
the review, that we have filed our restated consolidated
financial statements and our consolidated financial statements
for the second quarter of 2006, and that we can now focus 100%
of our attention on running the company and building value for
our customers, other business partners, investors and
employees," Robert M. Korzenski, chief executive officer, said.

"The restatement work was a rigorous and intense process that
revealed certain material weaknesses in our financial controls
and we are taking decisive steps to address those issues," Mr.
Korzenski said.

"Importantly, this work renewed our confidence in the
fundamentals of our business, reaffirmed the compelling
strategic, operational and financial rationale of the Solo
Cup/Sweetheart merger, and highlighted the quality and
dedication of our employee team.

"The restatement of our consolidated financial statements has
impacted our reported financial results but the process we have
gone through positions us well for long-term strength and
success," Mr. Korzenski concluded.

Full-text copies of the financial statements are available for
free at:

   For the year ended
   Jan. 1, 2006             http://ResearchArchives.com/t/s?13cc

   For the first quarter
   ended April 2, 2006      http://ResearchArchives.com/t/s?13cb

   For the second quarter
   ended July 2, 2006       http://ResearchArchives.com/t/s?13cd

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable foodservice
products for the consumer and retail, foodservice, packaging,
and international markets.  Solo Cup has broad expertise in
plastic, paper, and foam disposables and creates brand name
products under the Solo, Sweetheart, Fonda, and Hoffmaster
names.  The Company was established in 1936 and has a global
presence with facilities in Asia, Canada, Europe, Mexico, Panama
and the United States.


SOLO CUP: Moody's Reviewing Ratings & May Downgrade
---------------------------------------------------
Moody's Investors Service is continuing the Review for Possible
Downgrade of Solo Cup Co. first initiated on Aug. 16, 2006, and
reiterated on Sept. 15, 2006.  Although Solo Cup has met its
obligation to file financial statements and has completed its
previously announced review of accounting issues, Moody's
continues to have concerns regarding liquidity and ongoing
business strategy.  Moody's will continue to assess
developments, specifically adequacy of any revisions to
financial covenants and prospective financial strategy and
performance.

Moody's notes that Solo Cup continues to face a challenging
business environment and that there was no free cash flow for
the fiscal second quarter (i.e. deficit of US$66 million), well
short of Moody's expectations.  Total debt to EBITDA at the end
of the quarter was about 7.8 times after Moody's standard
adjustments and about 7.0 times unadjusted.  EBIT interest
coverage was in the area of 0.6 times.

Moody's expects to conclude the review by the end of January
2007.  These ratings remain under Review for Possible Downgrade:

   -- US$150 million senior secured revolving credit facility
      maturing Feb. 27, 2010, B2;

   -- US$635 million senior secured term loan B due
      Feb. 27, 2011, B2;

   -- US$80 million senior secured second lien term loan due
      Feb. 27, 2012, Caa1; and

   -- US$325 million 8.5% subordinated notes due Feb. 15, 2014,
      Caa2.

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable foodservice
products for the consumer and retail, foodservice, packaging,
and international markets.  Solo Cup has broad expertise in
plastic, paper, and foam disposables and creates brand name
products under the Solo, Sweetheart, Fonda, and Hoffmaster
names.  The Company was established in 1936 and has a global
presence with facilities in Asia, Canada, Europe, Mexico, Panama
and the United States.



SOLO CUP: Incurs US$299 Million Net Loss in 2006 Second Quarter
---------------------------------------------------------------
Solo Cup Company filed its financial statements for the second
quarter ended July 2, 2006, with the U.S. Securities and
Exchange Commission on Oct. 16, 2006.

For the second quarter ended July 2, 2006, the Company reported
a US$299,364,000 net loss, compared with a US$2,787,000 net loss
for the quarter ended July 3, 2005.

Net sales increased US$23.4 million, or 3.6%, for the 13 weeks
ended July 2, 2006, compared with the prior year period.  The
increase in net sales reflected a 6.5% increase in average
realized sales price partially offset by a 2.9% decrease in
sales volume compared with the 13 weeks ended July 3, 2005.

The increase in average realized sales price reflects price
increases implemented during the second half of 2005 and the
first half of 2006 in response to higher raw material costs.
The volume decrease primarily reflects pricing pressure in the
marketplace and, to a lesser extent, the company's decision to
eliminate certain less profitable business.

Cost of goods sold increased US$13.5 million, or 2.4%, for the
13 weeks ended July 2, 2006, compared with the prior year
period.  The increase in cost of goods sold for the 13 weeks
ended July 2, 2006, included an additional US$9.8 million
reserve for spare parts and inventory obsolescence due to
changes in estimation methodology related to the valuation of
these assets. These increases in cost of goods sold were offset
by US$22.1 million of curtailment gains related to negotiated
changes in postretirement benefits for certain active employees.
The remaining increase in cost of goods sold was a result of
increases in raw material and transportation costs.  The company
continues to experience fluctuations in raw material prices.

For the 13 weeks ended July 2, 2006, gross profit increased
US$9.8 million compared with the prior year period.  As a
percentage of net sales, gross profit was 13.7% in the second
quarter of 2006 versus 12.7% in the second quarter of 2005.

Excluding the additional US$9.8 million reserve for spare parts
and inventory obsolescence and US$22.1 million in curtailment
gains related to postretirement benefits, the gross profit
percentage would have been 11.9% for the 13 weeks ended July 2,
2006.

Selling, general, and administrative expenses increased
US$7.6 million for the 13 weeks ended July 2, 2006, compared
with the 13 weeks ended July 3, 2005.  The increase was
primarily driven by severance related to its reduction-in-force
announced in April 2006 as well as the departure of certain
senior executives.  As a percentage of net sales, selling,
general, and administrative  expenses were 11.0% in the second
quarter of 2006 versus 10.2% in  the second quarter of 2005.

Impairment of goodwill for the 13 weeks ended July 2, 2006, was
US$228.5 million.

For the 13 weeks ended July 2, 2006, interest expense, net,
increased US$3.8 million compared with the prior year period.
This increase is primarily attributable to amounts outstanding
under its Second Lien Facility entered into in March 2006 and
higher outstanding balances under its domestic revolving credit
facility.  To a lesser extent, the increase is due to higher
interest rates compared with the prior year period.

For the 13 weeks ended July 2, 2006, foreign currency exchange
(gain) loss, net, was a gain of US$2.7 million compared with a
loss of US$2 million for the 13 weeks ended July 3, 2005.  This
change is primarily attributed to currency fluctuations in the
United Kingdom pound sterling denominated inter-company debt.

For the 13 weeks ended July 2, 2006, the income tax provision of
US$68.3 million included a US$105.0 million income tax charge to
establish a valuation allowance for certain deferred tax assets
partially offset by the tax benefit generated from domestic
operations.

During the 13 weeks ended July 2, 2006, the company prepared an
updated analysis of the recoverability of its deferred tax
assets considering recent developments in its operations and
financial condition, including, among other things, its
continued net losses, and the impact of raw material and
petroleum cost increases on its cost of goods sold.

As a result of these events, and considering the level of
historical taxable income and projections for future taxable
income over the periods in which the deferred tax assets are
deductible, the management concluded that it is more likely than
not that it will not fully realize the benefits of its existing
deductible differences.

Accordingly, the company recorded an additional provision for
income taxes during the second fiscal quarter of 2006 to
increase the valuation allowance for its deferred tax assets by
US$105.0 million.

At July 2, 2006, the Company's balance sheet showed
US$1,619,270,000 in total assets, US$1,550,053,000 in total
liabilities, and US$69,217,000 in total stockholders' equity.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?13cd

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable foodservice
products for the consumer and retail, foodservice, packaging,
and international markets.  Solo Cup has broad expertise in
plastic, paper, and foam disposables and creates brand name
products under the Solo, Sweetheart, Fonda, and Hoffmaster
names.  The Company was established in 1936 and has a global
presence with facilities in Asia, Canada, Europe, Mexico, Panama
and the United States.


SOLO CUP: S&P Cuts Corp. Credit Rating to CCC+ & Removes Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered all its ratings on
Solo Cup Co. by two notches, including its corporate credit
rating to 'CCC+', and removed them from CreditWatch where they
had been placed with negative implications on Aug. 18, 2006.
The outlook is negative.

"The downgrade was prompted by significantly weaker-than-
expected earnings, cash flow, and liquidity as well as concerns
about the company's ability to absorb additional raw material
cost volatility and to obtain further financial covenant relief
or restructure its debt," said Standard & Poor's credit analyst
Cynthia Werneth.  "Based on these factors, we now believe that
meaningful operating and capital structure improvements will
have to be achieved to reduce the risk of a default within the
next year."

Although detailed information on third-quarter performance is
not yet available, on Oct. 16, 2006, Solo's liquidity was
substantially unchanged from June 30, 2006, with cash and unused
bank line availability totaling only US$59 million.  Liquidity
is unexpectedly low for this time of year, particularly given
that the company obtained US$80 million in new second-lien debt
in March 2006.

This leads S&P to conclude that the company generated little if
any operating cash flow in the third quarter, which is usually a
seasonally strong period, after having used about US$100 million
of cash during the first half of the year.  Because of its
limited liquidity, S&P is concerned about Solo's ability to
continue to shoulder its heavy debt burden and to absorb any
future raw material cost increases, any slowdown in demand, or
other adverse developments.  Also, the company faces higher
interest margin on its bank credit facility in conjunction with
a waiver of financial covenants through year end and will incur
additional costs for an independent review of its supply chain.

Solo may also face near-term refinancing risk if it requires and
is unable to obtain financial covenant relief after expiration
of the current waiver.  S&P is are particularly concerned in
view of Solo's very weak financial profile, its repeated
requests for bank loan waivers and amendments during the past
year, and its recent addition of a tranche of second-lien debt.

The company is very highly leveraged.  As of June 30, 2006,
total debt, adjusted to include about US$200 million of
capitalized operating leases and unfunded postretirement
obligations on a tax-effected basis, was nearly US$1.4 billion.


TIMKEN CO: To Exit U.K. Seamless Steel Tube Manufacturing
---------------------------------------------------------
The Timken Company disclosed its intention to exit its European
seamless steel tube manufacturing operations located in Desford,
United Kingdom, as part of its strategy to manage its business
portfolio to improve performance.

Timken will begin consultations with representatives of the 400
associates located at the Desford facility to explore
alternative solutions to closure.

"The proposed action is part of the company's strategy to focus
on lines of business that produce differentiated products while
driving profitable growth," said Salvatore J. Miraglia, Jr.,
president of Timken's Steel Group.  "Exiting this business would
further advance the focus of the Steel Group on differentiated
products that deliver value to both customers and shareholders."

The Desford facility generated sales of approximately US$85
million to US$95 million in recent years but has not been
profitable.  It manufactures seamless steel tube for machining
and mechanical applications, primarily serving the bearing
industry in Europe.

In conjunction with the proposed exit of the business, Timken
would intend to sell some portion of the plant's assets and
secure a reliable alternative source of steel tube for its
European bearing operations.

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The Company has
operations in 27 countries and employs 27,000 employees.

                           *     *     *

The Timken Company's 7.16% Medium-Term Notes, Series A due 2027
carry Moody's Investors Service's Ba1 rating.


VICFORGE AIR: Brings In Rothman Pantall as Joint Administrators
---------------------------------------------------------------
R. D. Smailes and S. B. Ryman of Rothman Pantall & Co. were
appointed joint administrators of Vicforge Air Systems Ltd.
(Company Number 01447901) and Vicforge Management Limited
(Company Number 05320885) on Oct. 9.

Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was
established in 1955 as a general accountancy practice, and has
grown to its present 18 offices across the South of England. It
is one of the largest independent firms of Chartered Accountants
in the region, and rank in the top 40 in the United Kingdom.

Vicforge Air Systems Ltd. and Vicforge Management Ltd. can be
reached at:

         Lufton 2000
         Oak Way
         Yeovil
         Somerset BA22 8HS
         United Kingdom
         Tel: 0870 850 9471
         Fax: 0870 850 9472


WHE EUROPE: Claims Filing Period Ends Jan. 9, 2007
--------------------------------------------------
Creditors of WHE Europe Limited (formerly Arrestiva Limited and
Waterfall Home Entertainment Limited) have until Jan. 9, 2007,
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
Kevin Brown at:

         Marriotts LLP
         Allan House
         10 John Princes Street
         London W1G 0AH
         United Kingdom

Headquartered in Basingstoke, United Kingdom, WHE Europe Limited
engages in the sale and distribution of DVDs.


WORDMAP LIMITED: Creditors' Meeting Slated for October 31
---------------------------------------------------------
Creditors of Wordmap Limited (Company Number 03641734) will meet
at 11:00 a.m. on Oct. 31 at:

         BDO Stoy Hayward
         Fourth Floor
         One Victoria Street
         Bristol BS1 6AA
         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:

         S. E. J. Girling
         Joint Administrator
         BDO Stoy Hayward
         Fourth Floor
         One Victoria Street
         Bristol BS1 6AA
         United Kingdom
         Tel: 0117 934 2800
         Fax: 0117 922 5191

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.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders   Total    Working
                                   Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                              (214)       1,756      293


BELGIUM
-------
City Hotels               CITY.BR     (7)         210      (15)
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)


DENMARK
-------
Elite Shipping                       (28)         101       19


FRANCE
------
Acces Industrie                       (8)         106      (35)
Arbel                     PA.ARB     (98)         222      (72)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Charbo De France                  (3,872)       4,738   (2,868)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256       21
Dollfus Mieg & Cie S.A.   DS         (16)         143      (45)
Euro Computer System                (110)         682      377
Genesys S.A.              GNS.PA     (10)         120       (5)
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (68)         233       29
Labo Dolisos              DOLI.PA    (28)         110      (33)
Matussiere et Forest S.A. MTF        (78)         294      (28)
Oeneo S.A.                SABT.PA    (12)         292       38
Pneumatiques Kleber S.A.             (34)         480      139
Rhodia S.A.               RHA       (788)       6,681      171
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Selcodis S.A.             SPVX       (18)         128       22
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
St Fiacre (FIN)                       (1)         111      (33)
Teamlog                   TLO        (19)         109       (3)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Cognis Deutschland
   GmbH & Co. KG                    (174)       3,003      606
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG        (8)         111      N.A.
Kaufring AG               KAUG       (19)         151      (51)
Maternus Kliniken AG      MAK.F       (3)         207      (30)
Nordsee AG                            (8)         195      (31)
Plambeck Neue
   Energien AG            PNE3        (4)         141       19
Primacom AG               PRIG      (268)       1,257   (1,048)
Rinol AG                  RLIG       (64)         104      (15)
Schaltbau Hold            SLTG       (23)         144       (7)
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
Vivanco Gruppe                       (55)         131      (31)


GREECE
------
Empedos S.A.              EMPED      (34)         175      (48)
Pouliadis Associates
   Corporation            POUL       (28)         124      (31)
Radio A.Korassidis        KORA      (101)         181     (139)
   Commercial

HUNGARY
-------
Exbus Asset Management
   Nyrt.                  EXBUS      (30)         118   (5,162)


ICELAND
-------
Decode Genetics Inc.      DCGN        (9)         229      141

ITALY
-----
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                      (152)         732     (322)
Gruppo Coin S.p.A.        GC        (150)       4,218      N.A.
I Viaggi del
   Ventaglio S.p.A.       VVE.MI     (61)         487      (58)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (18,419)       4,121  (12,481)
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)
Wind Telecomunicazioni
   S.p.A.                            (10)      12,698     (815)

NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Mostostal Zabrze          MECOF.PK    (6)         227     (366)
Vista Alegre Atlantis
   SGPS S.A.              VAAAE      (18)         193      (83)

ROMANIA
-------
Oltchim RM Valce          OLT        (45)         232     (321)


RUSSIA
------
OAO Samaraneftegas                  (332)         892  (16,942)
Zil Auto                            (185)         378  (11,107)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.                     (116)       1,283     (278)
Santana Motor S.A.                   (46)         223       41
Sniace S.A.                          (10)         134      (37)


SWITZERLAND
-----------
Wedins Skor
    Accessoarer AB                   (10)         139     (129)


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UKRAINE
-------
Dnepropetrovsk Metallurgical
   Plant Imeni Petrovsko              (2)         278     (509)
Dniprooblenergo                      (38)         478     (797)
Donetskoblenergo                    (166)         706   (1,320)


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
AEA Technology Plc        AAT.L      (24)         340      (50)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Anker Plc                 ANK.L      (22)         115       13
Atkins (WS) Plc           ATK        (63)       1,279       70
Bonded Coach
   Holiday Group Plc                  (6)         188      (44)
Blenheim Group                      (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Plc        BGY     (5,823)       4,921      434
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST       (39)         567       (5)
Danka Bus System          DNK.L     (108)         540       34
Dawson Holdings           DWN.L      (12)         158      (19)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music
   Industries Group       EMI     (1,264)       2,818     (253)
Euromoney Institutional
   Investor Plc           ERM.L      (88)         297      (56)
European Home Retail Plc  EHRL       (14)         111      (37)
Gartland Whalley                     (11)         145       (8)
Global Green Tech Group             (156)         408      (18)
Gondola Holdings Plc      GND.L     (239)         987     (396)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV         (4)         948     (175)
Homestyle Group Plc       HME        (29)         409     (124)
Imperial Chemical
   Industries Plc         ICI       (835)       8,881      (49)
Invensys PLC                      (1,031)       3,875      494
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L    (683)         492     (371)
Lambert Fenchurch Group               (1)       1,827        3

Lattice Group                     (1,290)      12,410   (1,228)
Leeds United              LDSUF.PK   (73)         144      (29)
M 2003 Plc                        (2,204)       7,205     (756)
Manchester City                      (17)         154      (21)
Micro Focus
   International Plc      MCRO.L     (14)         115      (11)
Mytravel Group            MT.L      (283)       1,159     (410)
Orange Plc                ORNGF     (594)       2,902        7
Park Group Plc            PKG.L       (5)         111      (13)
Partygaming Plc           PRTY       (46)         398     (110)
Premier Farner Plc        PFL        (33)         964      127
Premier Foods Plc         PFD.L      (31)       1,475       16
Probus Estates Plc        PBE.L      (28)         113      (49)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,134)       2,678      (45)
RHM Plc                   RHM       (586)       2,411       59
Saatchi & Saatchi         SSI       (119)         705      (41)
Seton Healthcare                     (11)         157        0
SFI Group                           (108)         178     (162)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,361)
UK Coal Plc               UKC        (25)         865      (62)
Virgin Mobile
   Holdings Plc           VMOB.L    (490)         155      (80)
Wincanton Plc             WIN        (66)       1,236      (71)


                           *********

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

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

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

                           *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *