TCREUR_Public/061030.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Monday, October 30, 2006, Vol. 7, No. 215

                            Headlines


A U S T R I A

CHRISTIAN BOES: Korneuburg Court Orders Business Closure
CHRISTIAN WAGNER: Property Manager Declares Insufficient Assets
DAAP LLC: Property Manager Declares Insufficient Assets


B E L G I U M

ADVANCED MICRO: Completes US$5.4 Billion ATI Purchase
ADVANCED MICRO: Earns US$134 Million in Quarter Ended October 1


F R A N C E

BORALEX INVESTMENT: Financial Risks Spur S&P to Assign B+ Rating
KAUFMAN & BROAD: S&P Puts Low-B Credit Ratings on Watch Negative
ITRON INC: Moody's Assigns Loss-Given-Default Rating
LEVEL 3: Selling US$600-Million 9.25% Sr. Notes at 100% of Par
LEVEL 3: S&P Junks US$600-Mln 9.25% Senior Notes Due 2014


G E R M A N Y

ASIAN-HOUSE: Claims Registration Ends November 3
DROSTEN-ZULAUF: Claims Registration Ends November 3
DAIMLERCHRYSLER AG: Losses Continue at Chrysler Group
DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit
ERTEX INTERTRADE: Claims Registration Ends November 3

GASTRON HAUSTECHNIK: Claims Registration Ends November 3
GOTTFRIED SCHROEDER: Claims Registration Ends November 3
LEIPZIG-WEST: Claims Registration Ends November 3
MT BAU: Claims Registration Ends November 3
PROVIDE-A 2003-1: S&P Affirms BB Rating on Class E Notes

RED HAT: S&P Revises Outlook on B+ Corp. Credit Rating to Stable
STOCKHECKE BAUSTOFFHANDEL: Claims Registration Ends November 3
ZENTRALE FUER: Claims Registration Ends November 3


H U N G A R Y

BORSODCHEM NYRT: Firthlion Ready to Sell 26.2% Stake to Kikkolux
VALEANT PHARMA: Delays Filing of Third Quarter 2006 Results


I T A L Y

CECCHI GORI: Huge Debt Spurs Rome Court to Declare Firm Bankrupt
PARMALAT: Meeting of Parmalat Capital Creditors Set for Nov. 9


K A Z A K H S T A N

AGROFIRMA LLP: Creditors Must File Claims by Nov. 26
ALTYN-NUR LLP: Court Begins Bankruptcy Proceedings
DAKAR-EKIBASTUZ LLP: Creditors Must File Claims by Nov. 26
EL-BAI LLP: South Kazakhstan Court Starts Bankruptcy Procedure
INTER CHEMICAL: Proof of Claim Deadline Slated for Nov. 26

IVAKON LLP: Proof of Claim Deadline Slated for Nov. 21
KAZAKHGOLD GROUP: Completes US$200 Million Eurobond Issue
TECHPROM-TRADE LLP: Creditors' Claims Due Nov. 26
TSM LLP: Creditors' Claims Due Nov. 26
ZAMGO LLP: Claims Registration Ends Nov. 26


K Y R G Y Z S T A N

AEROVISTA AIRLINES: Proof of Claim Deadline Slated for Dec. 13


N E T H E R L A N D S

CANDIDE FINANCING: Moody's Rates EUR5MM Class E Notes at (P)Ba3
CARLSON WAGONLIT: Moody's Rates EUR285-Mln Notes at (P)B2
CORUS GROUP: Severstal May Drop Bidding Interest, Source Says
CORUS GROUP: S&P Revises Watch Implications on Takeover Concerns
REGENT'S PARK: Moody's Puts Low-B Ratings to EUR21.8-Mln Notes


P O L A N D

BORSODCHEM NYRT: Firthlion Ready to Sell 26.2% Stake to Kikkolux


R U S S I A

CENTRAL TELECOM: S&P Lifts Rating to B on Improving Performance
GAGARINSKOYE GRAIN: Court Starts Bankruptcy Supervision
GAZPROMBANK OAO: To Issue RUB3-Bln Mortgage Bonds in December
GORNOMARIYSKIY: Court Starts Bankruptcy Supervision Procedure
INCOME CJSC: Court Names G. Kudryavtsev as Insolvency Manager

KNYAZHEGUBSKIY WOOD: Court Names E. Klimov as Insolvency Manager
KOVYLKINSKIY FACTORY: Court Names G. Varganyan to Manage Assets
KUDYMKAR-STROY-MONTAGE: Court Starts Bankruptcy Supervision
LUKOIL OAO: To Double Oil Production to Meet Market Demand
MARIYSKAYA OIL: Court Names R. Garifullin as Insolvency Manager

MINERAL AND DEEP-WELL: D. Yaroslavtsev to Manage Assets
NEVA-DOR-STROY: Bankruptcy Hearing Slated for Dec. 18
PETUKHOVSKIY SODA: Court Names S. Ogorodnikov to Manage Assets
REINFORCED CONCRETE: Court Names S. Ogorodnikov to Manage Assets
SEL-KHOZ-INVEST-STROY: Names V. Vashkevich to Manage Assets

SEVERSTAL OAO: May Drop Bidding Interest in Corus, Source Says
SOUTHERN TELECOM: Improving Liquidity Spurs S&P to Raise Rating
VLADIMIR-FLAX: Court Names S. Neimushev as Insolvency Manager
YEW CJSC: Primorye Court Names D. Prilipko as Insolvency Manager
YUKOS OIL: N.Y. Court Dismisses Securities Fraud Litigation


S P A I N

MILLS CORP: Responds to Gazit-Globe Recapitalization Offer


S W E D E N

SAS AB: To Sell 75% Outstanding Shares in Rezidor
SAS AB: Stake Sale Plan Prompts Moody's to Affirm Ratings
SAS AB: Unit Posts EUR43.6-Mln EBITDA in 9-Months Ended Sept. 30


U K R A I N E

BUDIVNIK LLC: Court Names Volodimir Glyadchenko as Liquidator
DONKAVAMET: Public Auction of Assets Slated for Nov. 3
INTERNET TECHNOLOGIES: Court Starts Bankruptcy Supervision
METEKS-M: Court Names Sergij Rulyov as Insolvency Manager
SOUTH RADIO: Dnipropetrovsk Court Starts Bankruptcy Supervision

YAMPILSKIJ RAJPOBUTKOMBINAT: Liquidator Starts Selling Assets
ZAGIRYA LLC: Court Names V. Olenchenko as Insolvency Manager
ZEMLYA LLC: Kyiv Court Starts Bankruptcy Supervision Procedure


U N I T E D   K I N G D O M

ABCOR SECURITY: Nominates Liquidator from Simmonds & Company
ACTIVE WORKWEAR: Claims Filing Period Ends Jan. 11, 2007
AFC ENTERPRISES: Moody's Assigns Loss-Given-Default Rating
ARK AGENCY: Appoints Anthony David Kent as Liquidator
ATMOSTHERM SERVICES: Calls In Liquidators from CLB Coopers

CETUS PRODUCTS: Nominates Liquidator from Piper Thompson
CORPORATE INTERNET: Creditors Ratify Liquidator's Appointment
COLLINS & AIKMAN: Gets US$200-Mln Funding from DaimlerChrysler
CORUS GROUP: Severstal May Drop Bidding Interest, Source Says
CORUS GROUP: S&P Revises Watch Implications on Takeover Concerns

DAIMLERCHRYSLER AG: Losses Continue at Chrysler Group
DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit
DATAWORKS LIMITED: Brings Liquidators from Recovery hjs
FORD MOTOR: To Rely on Cheaper Chinese-Made Parts to Cut Costs
GENERAL MOTORS: S&P Holds Low-B Ratings on Watch Negative

HI JEAN: Hires Stephen L. Conn to Liquidate Assets
HOUSE OF EUROPE: Moody's Rates EUR6-Mln Class E2 Notes at (P)Ba2
INCO LTD: Steelworkers Union Approves New Collective Agreement
LANGUAGE LINE: Moody's Affirms Ratings on Improved Performance
LEVEL 3: Selling US$600-Million 9.25% Sr. Notes at 100% of Par

LEVEL 3: S&P Junks US$600-Mln 9.25% Senior Notes Due 2014
MANUMOLD LIMITED: Names Liquidator from Rendell Thompson
MARK HUGHES: Taps Liquidators from Recovery hjs
MILLS CORP: Responds to Gazit-Globe Recapitalization Offer
NORTH SHROPSHIRE: Joint Liquidators Take Over Operations

SEVERSTAL OAO: May Drop Bidding Interest in Corus, Source Says
SOUTH COAST: Creditors Ratify Voluntary Liquidation
SOUTHERN WOODWORK: Names Terry Christopher Evans Liquidator
TRADE SKILLS: Brendan Eric Doyle Leads Liquidation Procedure
TRAMEC LIMITED: Creditors Confirm Liquidators' Appointment

VALEANT PHARMA: Delays Filing of Third Quarter 2006 Results
WESCO INT'L: Offers US$250-Mln Convertible Senior Debentures
WESCO INT'L: Inks Acquisition Deal With Communication Supply
WESCO INT'L: Purchase Deal Will Not Affect Ratings, Moody's Says
WHEEL SHOP: Appoints J. M. Titley to Liquidate Assets

                            *********

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


CHRISTIAN BOES: Korneuburg Court Orders Business Closure
--------------------------------------------------------
The Land Court of Korneuburg entered an order Sept. 11 closing
the business of LLC Christian Boes (FN 236389g).  Court-
appointed property manager Horst Winkelmayr recommended the
business closure after determining that the continuing
operations would reduce the value of the estate.

The property manager can be reached at:

         Mag. Horst Winkelmayr
         Porzellangasse 22A/7
         1090 Vienna, Austria
         Tel: 01/532 47 77
         Fax: 01/532 47 77 50
         E-mail: rae@kniwi.at

Headquartered in Poysdorf, Austria, the Debtor declared
bankruptcy on June 22  (Bankr. Case No. 32 S 7/06a).


CHRISTIAN WAGNER: Property Manager Declares Insufficient Assets
---------------------------------------------------------------
Dr. Georg Unger, the court-appointed property manager for LLC
Christian Wagner (FN 239038b), declared Sept. 11 that the
Debtor's property is insufficient to cover creditors' claims.

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

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 24 (Bankr. Case No. 5 S 76/06w).  Arno Maschke represents
Dr. Unger in the bankruptcy proceedings.

The property manager and his representative can be reached at:

         Dr. Georg Unger
         c/o Dr. Arno Maschke
         Mariahilfer Road 50
         1070 Vienna, Austria
         Tel: 523 62 00
         Fax: 526 72 74
         E-mail: schulyok-unger@csg.at


DAAP LLC: Property Manager Declares Insufficient Assets
-------------------------------------------------------
Mag. Caroline Klus, the court-appointed property manager for LLC
DAAP (FN 261897v), declared Sept. 11 that the Debtor's property
is insufficient to cover creditors' claims.

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

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 1 (Bankr. Case No. 5 S 124/06d).  Wolfgang Leitner
represents Mag. Klus in the bankruptcy proceedings.

The property manager and her representative can be reached at:

         Mag. Caroline Klus
         c/o Dr. Wolfgang Leitner
         Kohlmarkt 14
         1010 Vienna, Austria
         Tel: 533 19 39
         Fax: 533 19 39 39
         E-mail: kanzlei@lp-law.at


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


ADVANCED MICRO: Completes US$5.4 Billion ATI Purchase
-----------------------------------------------------
Advanced Micro Devices Inc. has completed its approximately
US$5.4 billion acquisition of ATI Technologies Inc.  With
approximately 15,000 employees, the company merges AMD's
technology leadership in microprocessors together with ATI's
leadership in graphics, chipsets and consumer electronics.

"Today marks a historic day for our employees, our partners and
our customers as we officially welcome ATI into the AMD family,"
said AMD Chairman and CEO Hector Ruiz.  "On day one, we are
delivering a winning set of complementary technologies, igniting
a new level of innovation and continuing to champion choice for
the industry.  Thanks to the strength of our talented employees,
the new AMD now has a full range of intellectual property in
microprocessors, graphics, chipsets and consumer electronics to
deliver open platforms and integrated solutions.  In the near
term, customers gain a new level of choice, and in the long
term, we believe the possibilities for innovation are truly
limitless."

                      Transaction Details

Under the terms of the transaction, AMD acquired all of the
outstanding common shares of ATI for a combination of
approximately US$4.3 billion in cash and 58 million shares of
AMD common stock, based on the number of shares of ATI common
stock outstanding on Oct. 24, 2006.  All outstanding options and
restricted stock units of ATI were assumed.  The value of the
ATI acquisition of approximately US$5.4 billion is based upon
the closing stock price of AMD common stock on Oct. 24, 2006 of
US$20.32 per share and excludes the value of assumed equity
awards.

AMD financed the cash portion of the transaction with a
combination of cash and new debt.  AMD obtained a US$2.5 billion
term loan from Morgan Stanley Senior Funding, Inc., which,
together with combined existing cash, cash equivalents, and
marketable securities balances of approximately US$1.8 billion,
provided full funding for the transaction.

AMD announced the final pro-ration applicable to ATI common
shares in the acquisition.  The total consideration to be paid
for each common share, based on the Parent Closing Stock Price
(as defined in the Plan of Arrangement, as amended), is
approximately US$21.36. The final election results indicate
these pro-ration:

     -- ATI shareholders who elected to receive cash will be
        entitled to receive, for each common share for which a
        valid cash election was made, approximately US$18.59 in
        cash plus approximately 0.1245 of a share of AMD common
        stock;

     -- ATI shareholders who elected to receive stock will be
        entitled to receive, for each common share for which a
        valid stock election was made, 0.9596 of a share of AMD
        common stock; and

     -- ATI shareholders who did not make a valid election will
        be entitled to receive, for each share for which no
        valid election was made, 0.9596 of a share of AMD common
        stock.

Pro-ration was necessary because the cash consideration elected
to be received exceeded the amount of cash available in the
acquisition. Any fractional shares will be paid in cash.

                   Integrated Platforms in 2007

Customers should benefit from AMD's and ATI's combined platform
development and technical support teams, which will be co-
located in Taipei and Shanghai.  Combined with the existing
Austin and Toronto locations, these sites offer research and
development and support to provide customers with a complete
solution for optimized platform development.

AMD plans to deliver a range of integrated platforms in 2007 to
serve key markets, including: commercial clients; mobile
computing; and gaming and media computing.  PC users will
benefit from innovations intended to extend battery life on the
next-generation AMD Turion 64 mobile technology-based platform
and enhancements to the AMD LIVE! digital media PC platform that
will enable users to get more from their favorite photos, music,
and movies.  AMD believes that these integrated platform
innovations will bring customers improved system stability,
better time-to-market, increased performance and energy-
efficiency and overall, an enhanced user experience.

"By driving innovation and integration in processing, especially
in graphics, the new AMD has the potential to empower
breakthrough computing experiences for users of Windows Vista,"
said Jim Allchin, Co-President of Microsoft's Platforms &
Services Division.  "We are excited by the potential benefits
that this union can bring to enhance the Windows Vista
experience."

AMD also sees an opportunity to deliver processing solutions to
the growing consumer electronics market.  The company intends to
leverage ATI's strength in the consumer market by pursuing new
opportunities to invest in the consumer electronics and high-end
discrete graphics markets.  With leading technology and customer
relationships, AMD is positioned to address digital convergence
by leveraging critical IP to create new innovations and devices
that facilitate end-to-end content delivery and connectivity to
improve end-user experiences.

                    CPU/GPU Silicon "Fusion"

AMD plans to create a new class of x86 processor that integrates
the central processing unit and graphics processing unit at the
silicon level with a broad set of design initiatives
collectively codenamed "Fusion."  AMD intends to design Fusion
processors to provide step-function increases in performance-
per-watt relative to today's CPU-only architectures, and to
provide the best customer experience in a world increasingly
reliant upon 3D graphics, digital media and high-performance
computing.

With Fusion processors, AMD will continue to promote an open
platform and encourage companies throughout the ecosystem to
create innovative new co-processing solutions aimed at further
optimizing specific workloads.  AMD-powered Fusion platforms
will continue to fully support high-end discrete graphics,
physics accelerators, and other PCI Express-based solutions to
meet the ever-increasing needs of the most demanding enthusiast
end-users.

"With the anticipated launch of Windows Vista, robust 3D
graphics, digital media and device convergence are driving the
need for greater performance, graphics capabilities, and battery
life," said Phil Hester, AMD senior vice president and chief
technology officer.  "In this increasingly diverse x86 computing
environment, simply adding more CPU cores to a baseline
architecture will not be enough.  As x86 scales from palmtops to
petaFLOPS, modular processor designs leveraging both CPU and GPU
compute capabilities will be essential in meeting the
requirements of computing in 2008 and beyond."

Fusion processors are expected in late 2008 or early 2009, and
the company expects to use them within all of the company's
priority computing categories, including laptops, desktops,
workstations and servers, as well as in consumer electronics and
solutions tailored for the unique needs of emerging markets.

                             About ATI

ATI Technologies Inc. designs and manufactures 3D graphics, PC
platform technologies and digital media silicon solutions.  With
fiscal 2005 revenues of US$2.2 billion, ATI has approximately
4,000 employees in the Americas, Europe and Asia.

                            About AMD

Based in Sunnyvale, California, Advanced Micro Devices Inc.
(NYSE:AMD) -- http://www.amd.com/-- provides microprocessor
solutions for computing, communications and consumer electronics
markets.  The company has a facility in Singapore.  It has sales
offices in Belgium, France, Germany, the United Kingdom, Mexico
and Brazil.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 6, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on AMD.  The rating agency also assigned its 'BB-'
bank loan rating, one notch above the corporate credit rating,
and a '1' recovery rating to the company's proposed US$2.5
billion senior secured term loan, to be used as partial funding
of the acquisition.  S&P further raised its rating on the
company's US$600 million (US$390 million outstanding) senior
notes to 'B+' from  'B'.

At the same time, Moody's Investors Service assigned a Ba3
rating to AMD's US$2.5 billion senior secured bank facility
while confirming the Ba3 corporate family rating and Ba3 rating
on the company's US$390 million senior notes due 2012.  The
ratings reflect both the overall probability of default of the
company, to which Moody's assigns a PDR of Ba3, and a loss given
default of LGD3 for both the new bank facility and the US$390
million senior notes both of which will share the same
collateral and security package.


ADVANCED MICRO: Earns US$134 Million in Quarter Ended October 1
---------------------------------------------------------------
Advanced Micro Devices Inc. reported sales of US$1.33 billion,
operating income of US$119 million, and net income of US$134
million for the quarter ended Oct. 1, 2006.  These results
include US$16.5 million of employee stock-based compensation
expense.

In the third quarter of 2005, excluding the Memory Products
segment1, AMD reported sales of US$1.01 billion and operating
income of US$129 million.  In the second quarter of 2006, AMD
reported sales of US$1.22 billion and operating income of US$102
million.

"Third quarter sales increased 9% from the prior quarter, and
32% year-over-year, due to strong demand for all AMD processor
brands," said Robert J. Rivet, AMD's chief financial officer.

"Microprocessor unit shipments grew 18% sequentially as
customers continued leveraging AMD's open platform approach.
Demand for AMD Turion 64 mobile processors was especially
strong, resulting in record mobile processor sales and unit
shipments coupled with increased average selling prices.  Record
AMD Opteron processor sales resulted from continued adoption of
dual core processors, record unit shipments and improved ASPs."

Desktop processor sales were flat sequentially with increased
unit shipments offset by decreased ASPs.

AMD continued to successfully ramp production in both Fab 36 and
Chartered Semiconductor.  The conversion to 65-nanometer
production in Fab 36 is on track, with revenue shipments planned
for the fourth quarter.

Third quarter gross margin was 51.4%, compared to 56.8% in the
second quarter of 2006 and 55.4% in the third quarter of 2005.
The gross margin decrease was largely due to lower desktop
processor ASPs which caused a decline in overall processor ASPs.

AMD expects demand for its products to be seasonally strong in
the fourth quarter and sales to increase sequentially.

                            About AMD

Based in Sunnyvale, California, Advanced Micro Devices Inc.
(NYSE:AMD) -- http://www.amd.com/-- provides microprocessor
solutions for computing, communications and consumer electronics
markets.  The company has a facility in Singapore.  It has sales
offices in Belgium, France, Germany, the United Kingdom, Mexico
and Brazil.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 6, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on AMD.  The rating agency also assigned its 'BB-'
bank loan rating, one notch above the corporate credit rating,
and a '1' recovery rating to the company's proposed USUS$2.5
billion senior secured term loan, to be used as partial funding
of the acquisition.  S&P further raised its rating on the
company's USUS$600 million (USUS$390 million outstanding) senior
notes to 'B+' from  'B'.

At the same time, Moody's Investors Service assigned a Ba3
rating to AMD's USUS$2.5 billion senior secured bank facility
while confirming the Ba3 corporate family rating and Ba3 rating
on the company's USUS$390 million senior notes due 2012.  The
ratings reflect both the overall probability of default of the
company, to which Moody's assigns a PDR of Ba3, and a loss given
default of LGD3 for both the new bank facility and the USUS$390
million senior notes both of which will share the same
collateral and security package.


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


BORALEX INVESTMENT: Financial Risks Spur S&P to Assign B+ Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B+'
rating and a '4' recovery rating to Boralex Investment L.P.'s
proposed US$80 million secured term loan B due on the seventh
anniversary of closing in 2013.

"The rating reflects the exposure of the merchant power
project's financial performance to numerous risks," said
Standard & Poor's credit analyst David Bodek.

These risks include:

   -- the project's high fixed and variable costs that
      represent a vulnerability for a revenue stream that
      is highly dependent on competitive merchant
      electric markets;

   -- a history of volatile operational performance that
      raises concerns about the strength of future
      financial results;

   -- the electric generation fleet's exposure to variability
      in the price and availability of biomass fuel,
      variations in hydrological conditions, and
      transmission constraints.

   -- management's expectation that renewable energy
      credit revenues will escalate in short order from
      less than 9% of 2005's operating revenues to between
      12% and 19% of operating revenues during the
      loan's term.  This growth could be frustrated
      by volatility within the renewable energy credit
      markets and Boralex's need to make capital
      improvements for additional facilities to qualify
      for renewable energy credit revenues.  However,
      credit concerns related to the capital improvements
      are tempered by the plan to use some of the
      loan's proceeds to fund the improvements; and

   -- refinancing risk that may be present at maturity if
      the generation portfolio fails to yield cash flow that
      can meaningfully reduce loan balances that could
      range from 100% amortization under the base case to a
      50% amortization under Standard & Poor's
      price assumptions, however the amount of
      amortization under the Standard & Poor's price
      assumptions could be greater if unexpended monies
      are available in the operating and debt-service
      reserves to be applied to debt reduction.

Credit risks are tempered by the following lender protections:

   -- the projects do not face construction risk and
      have produced electricity for numerous years;

   -- The dispatch attributes of low-cost
      run-of-the-river hydroelectric assets representing 12%
      of capacity, partially mitigates credit issues
      associated with the biomass facilities; and

In addition, lenders benefit from structural protections that
include:

   -- a trustee's custody of project monies;

   -- a requirement that 85% of available monies
      remaining following the payment of interest and
      a mandatory 1% annual amortization of the loan be used
      to repay principal;

   -- a cash trap that precludes distributions if
      post-cash-sweep debt service coverage is not at
      least 1.2x;  The presence of a US$5 million
      operating reserve to be funded from proceeds of the
      loan; and

   -- the presence of a debt service reserve account that
      must be maintained at a level equivalent to
      the succeeding 12 months' debt service, which is
      stronger than the typical account that is sized at
      six months' debt service for most other projects.

The '4' recovery rating indicates that Standard & Poor's expects
marginal recovery of principal (between 25% to 50%) if a payment
default occurs.


KAUFMAN & BROAD: S&P Puts Low-B Credit Ratings on Watch Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services put its long-term 'BB+'
corporate and 'BB' senior unsecured credit ratings on France-
based residential property developer Kaufman & Broad S.A. on
CreditWatch with negative implications.

The action follows the placement on [Wednes]day on CreditWatch
negative of the corporate credit, senior unsecured, and
subordinated debt ratings on KBSA's parent company, U.S.-based
KB Home.  KB Home owns 49.0% of KBSA's capital, and has 67.5% of
voting rights.

"If the ratings on KB Home are lowered, the ratings on KBSA are
likely to be capped by those on the parent," said Standard &
Poor's credit analyst Xavier Buffon.


ITRON INC: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed its Ba3 Corporate Family Rating for Itron Inc.  The
rating on the company's $55 million Senior Secured Revolver due
2009 was revised to Baa3 from Ba3.  Those debentures were
assigned an LGD1 rating suggesting creditors will experience a
3% loss in the event of default.

Additionally, Moody's revised its ratings on the company's
$125 million 7.875% Subordinate Notes due 2012 to Ba1 from B2.
Moody's assigned those debentures an LGD2 rating suggesting a
projected loss-given default of 25%.

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 Liberty Lake, Washington, Itron Inc. --
http://www.itron.com/-- offers products and services for energy
and water providers around the world including Canada, The
Netherlands, United Kingdom, Qatar, Mexico, Taiwan, France and
Australia.


LEVEL 3: Selling US$600-Million 9.25% Sr. Notes at 100% of Par
--------------------------------------------------------------
Level 3 Communications Inc.'s subsidiary, Level 3 Financing,
Inc., has agreed to sell $600 million aggregate principal amount
of 9.25% Senior Notes due 2014 in a private offering to
"qualified institutional buyers" as defined in Rule 144A under
the Securities Act of 1933 and outside the United States under
Regulation S under the Securities Act of 1933.  The 9.25% Senior
Notes due 2014 were priced to the investors at 100% of par.

The senior notes have not been registered under the Securities
Act of 1933 or any state securities laws and, unless so
registered, may not be offered or sold except pursuant to an
applicable exemption from the registration requirements of the
Securities Act of 1933 and applicable state securities laws.

The debt represented by the senior notes will constitute
purchase money indebtedness under the indentures of Level 3.
The net proceeds will be used solely to fund the cost of
construction, installation, acquisition, lease, development or
improvement of any assets to be used in the company's
communications business, including the cash purchase price of
any past, pending or future acquisitions.  The offering is
expected to be completed on Oct. 30, 2006, subject to customary
closing conditions.

Headquartered in Bloomfield, Colorado, Level 3 Communications,
Inc. (Nasdaq: LVLT) -- http://www.Level3.com/-- an
international communications company, provides Internet
connectivity for millions of broadband subscribers.  The company
provides a comprehensive suite of services over its broadband
fiber optic network including Internet Protocol services,
broadband transport and infrastructure services, colocation
services, voice services and voice over IP services.  In Europe,
the company maintains operations in Belgium, Denmark, France,
Germany, and the United Kingdom, among others.

At June 30, 2006, Level 3's balance sheet showed a stockholders'
deficit of US$33 million, compared to a deficit of US$476
million at Dec. 31, 2005.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 20, 2006,
Dominion Bond Rating Service placed the ratings of Level 3
Communications Inc.'s Senior Unsecured Notes (CCC) and
Subordinated Notes (C) and Level 3 Financing Inc.'s Senior
Secured Credit Facility (B(low)) and Senior Unsecured Notes
(CCC) Under Review with Positive Implications after the
announcement that Level 3 will acquire Broadwing Corporation for
approximately $1.4 billion in cash and stock.

Standard & Poor's Ratings Services affirmed its existing ratings
on Broomfield, Colorado-based Level 3 Communications Inc.,
including the 'CCC+' long-term corporate credit and 'B-3' short-
term credit ratings.  The rating agency also affirmed the 'B-'
bank loan and '1' recovery ratings on the $730 million secured
nonamortizing first-lien credit facility issued by Level 3's
wholly owned subsidiary, Level 3 Financing Inc.  The outlook is
stable.

Fitch views the recent announcement by Level 3 Communications,
Inc. to acquire Broadwing Corporation as a credit positive and
consistent with its current rating rationale.  Fitch most
recently affirmed Level 3's Issuer Default Rating at 'CCC' on
May 3, 2006 with a Positive Rating Outlook.


LEVEL 3: S&P Junks US$600-Mln 9.25% Senior Notes Due 2014
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC-' rating to
the US$600 million of 9.25% senior notes due 2014 issued by
Level 3 Financing Inc., a subsidiary of Broomfield, Colo.-based
Level 3 Communications Inc.

The notes are issued under Rule 144A with registration rights.
Under the indentures of Level 3, the new debt will constitute
purchase money indebtedness and will be used solely to fund the
cost of construction, installation, acquisition, lease, and
development or improvement of telecommunications assets.

All ratings on Level 3, including the 'CCC+' corporate credit
rating, are affirmed.  The outlook is stable.  Debt outstanding
as of Sept. 30, 2006, totaled approximately US$6.6 billion.

"The ratings on Level 3 reflect an aggressive financial policy,
elevated leverage, negative discretionary cash flow, integration
risk resulting from an active acquisition strategy, and concerns
about weakness in the long-distance telecommunications
industry," said Standard & Poor's credit analyst Susan Madison.
Tempering factors include a sizable cash balance, an absence of
significant debt maturities until 2010, and modest benefits from
industry consolidation.

A facilities-based provider of communications services, Level 3
historically provided predominantly long-haul telecom services.
In response to falling prices and declining narrowband demand,
the company, like many of its peers, has shifted its strategic
focus to selling new products such as wholesale voice over
Internet protocol in regional and metropolitan areas.  Level 3's
entry into these new markets has been accelerated through a
series of acquisitions of regional competitive local exchange
carriers, as well as the pending acquisition of Broadwing Corp.,
a long-haul communications provider with a sizable enterprise
business.


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


ASIAN-HOUSE: Claims Registration Ends November 3
------------------------------------------------
Creditors of Asian-House Himalaya GmbH have until Nov. 3 to
register their claims with court-appointed provisional
administrator Achim Thomas Thiele.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Nov. 24 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany

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

The District Court of Dortmund opened bankruptcy proceedings
against Asian-House Himalaya GmbH on Sept. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Asian-House Himalaya GmbH
         Darmstadter Highway 199
         60598 Frankfurt, Germany

The administrator can be contacted at:

         Achim Thomas Thiele
         Bronnerstrasse 7
         44141 Dortmund, Germany


DROSTEN-ZULAUF: Claims Registration Ends November 3
---------------------------------------------------
Creditors of Drosten-Zulauf GbR have until Nov. 3 to register
their claims with court-appointed provisional administrator
Frank Kebekus.

Creditors and other interested parties are encouraged to attend
the meeting at 10:35 a.m. on Nov. 23 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Room 1240
         12th Floor
         Luxemburger Road 101
         50939 Cologne, Germany

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

The District Court of Cologne opened bankruptcy proceedings
against Drosten-Zulauf GbR on Sept. 5.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Drosten-Zulauf GbR
         Kölner Str. 38 - 40
         51399 Burscheid, Germany

         Attn: Juergen Drosten and Axel Zulauf, Managers
         Gartenweg 4
         42929 Wermelskirchen, Germany

The administrator can be contacted at:

         Dr. Frank Kebekus
         Carl-Theodor-Str. 1
         40213 Duesseldorf, Germany


DAIMLERCHRYSLER AG: Losses Continue at Chrysler Group
-----------------------------------------------------
DaimlerChrysler AG achieved a third quarter operating profit of
US$1.1 billion, compared with US$2.3 billion of operating profit
for the same period in 2005.  Net income amounted to US$686
million in the third quarter, compared to US$1.085 billion in
2005.

The continuation of the very positive earnings trend at the
Mercedes Car Group, the distinct increase in operating profit at
the Truck Group as well as the Financial Services' operating
profit, which is above the high level of earnings in the prior-
year quarter, only partially compensated for the loss
contributed by the Chrysler Group.

DaimlerChrysler sold 1.0 million vehicles worldwide in the third
quarter, not equaling the high level recorded in Q3 2005.  As a
result of the lower unit sales, the Group's revenues decreased
from US$48.4 billion to US$44.6 billion. Adjusted for currency-
translation effects, the decrease was 5%.

At the end of the third quarter of 2006, DaimlerChrysler
employed a workforce of 365,451 people worldwide (end of Q3
2005: 388,014).  Of this total, 168,965 were employed in Germany
and 95,647 were employed in the United States.

                         Division Results

Mercedes Car Group

The Mercedes Car Group sold 307,500 vehicles worldwide in the
third quarter of this year (Q3 2005: 310,900).  Third quarter
unit sales by Mercedes- Benz increased slightly to 282,800
vehicles (Q3 2005: 282,100), primarily due to the success of the
new models launched in 2005 and 2006.  At smart, due to the
focus on the smart fortwo, unit sales decreased, as expected, to
24,700 vehicles (Q3 2005: 28,800).  Customer orders have been
received for nearly all smart fortwo cars that will be produced
prior to the model changeover next year.  The divisions's
revenues increased by 8% to US$17.1 billion.

The Mercedes Car Group increased its operating profit by 127% to
US$1.257 billion.  This significant increase in earnings is
primarily due to the efficiency improvements achieved in the
context of the CORE program.

Staff reductions at Mercedes-Benz Passenger Cars in the context
of the CORE program led to charges of US$60 million.  Within the
framework of the voluntary headcount reduction program announced
in September 2005, approximately 9,300 employees had signed
severance agreements or had already left the company.  The
expenses originally planned for the restructuring of smart were
adjusted, resulting in a gain of US$51 million.

The integration of smart into the Mercedes-Benz organization is
progressing according to plan and should be completed by the end
of this year.  The resulting efficiency improvements will
provide a foundation for smart's profitability as of the year
2007.

Chrysler Group

In a difficult market environment, the Chrysler Group's third
quarter retail and fleet sales totaled 635,300 vehicles.  Total
factory shipments amounted to 504,400 vehicles (Q3 2005:
663,400).

Third quarter revenues amounted to US$12.1 billion (-23%);
measured in Euros, revenues decreased by 26%.

The Chrysler Group posted an operating loss of US$1.477 billion
in the third quarter of 2006, compared with an operating profit
of US$393 million in the same quarter of last year.

The operating loss was primarily the result of a decrease in
worldwide factory unit sales, an unfavorable shift in product
and market mix, and negative net pricing.  These factors reflect
a continuing difficult market environment in the United States
as the Chrysler Group faced increased dealer inventory levels
from the prior quarter, a shift in consumer demand toward
smaller vehicles due to higher fuel prices, and increased
interest rates.

In order to reduce the high levels of dealer inventories,
Chrysler Group reduced shipments to dealers, which necessitated
corresponding production adjustments.  Total factory shipments
of 504,400 vehicles in the third quarter were 158,900 units
lower than in the third quarter of last year.

During the third quarter, the Chrysler Group launched the
compact SUV Jeep(R) Compass and the Jeep(R) Wrangler Unlimited
(4-door).  The Chrysler Aspen, the first SUV from the Chrysler
brand, was also launched in the third quarter.  By the end of
the year, the Chrysler Group will launch three more all-new
vehicles featuring fuel-efficient engines: the Chrysler Sebring,
the Dodge Nitro and the Jeep(R) Patriot.

In July, the Chrysler Group opened its new flexible assembly
plant and supplier park in Toledo, Ohio, where the all-new
Jeep(R) Wrangler models are produced.  This supplier co-location
project represents the latest example of Chrysler Group's
overall manufacturing strategy, enabling various models to be
built on the same assembly line.

Truck Group

Unit sales by the Truck Group of 141,900 vehicles were 2% above
the level of Q3 2005.  Due to the higher unit sales and a better
model mix, revenues increased by 3% to US$10.2 billion.

The Truck Group posted an operating profit of US$705 million (Q3
2005: US$449 million).  This significant increase in earnings
was due to higher unit sales, a high utilization of capacity
combined with strong productivity, and an improved model mix.
In addition, further efficiency improvements were realized in
the context of the Global Excellence program, which more than
compensated for the higher expenses incurred for new vehicle
projects and the fulfillment of future emission regulations.

Sales by Trucks Europe/Latin America of 37,700 units were
slightly higher than in Q3 2005.  Unit sales of 55,400 vehicles
by Trucks NAFTA under the Freightliner, Western Star and
Sterling brands were 3% higher than in Q3 2005.  Trucks Asia
sold 49,300 units under the Mitsubishi Fuso brand, a 2% increase
compared to the prior-year quarter.

The "Truck Dedication" initiative, which was launched during the
third quarter of this year, aims to focus sales and service
activities even more closely on customers' needs.  The key
elements of the program include more intensive customer
interaction such as additional service stations near logistics
centers and autobahns, as well as service teams with 24-hour
availability.

The Financial Services division continued its positive business
trend in the third quarter, and improved its operating profit to
US$565 million, compared with US$518 million in the third
quarter of last year.  This increase in earnings was assisted by
the higher volume of new business and improved efficiency.
There were opposing effects from increased risk costs, which had
been extremely low in the prior-year quarter.

New business of US$16 billion was 6% higher than in Q3 2005,
while contract volume of US$144.6 billion was at the prior-year
level.  Adjusted for the effects of currency translation, the
portfolio grew by 4%.

Contract volume of US$104.2 billion in the Americas region
(North and South America) was at the same level as a year
earlier; adjusted for exchange-rate effects, there was an
increase of 4%.  Contract volume in the region Europe, Africa
and Asia/Pacific increased by 4% to US$40.5 billion.  In
Germany, DaimlerChrysler Bank increased its contract volume by
5% to US$19.7 billion.

The Van, Bus, Other Segment

The Van, Bus, Other segment posted a third quarter operating
profit of US$400 million (Q3 2005: US$481 million), including
expenses of US$91 million for the implementation of the new
management model, mainly for the voluntary headcount reduction
program in administrative areas.  The sale of real estate
properties not required for operating purposes led to a gain of
US$109 million in the third quarter.

Mercedes-Benz Vans posted unit sales of 58,800 vehicles in the
third quarter, which was lower than the very high prior year
number.  The decrease was a result of the launch of the new
Sprinter and the associated production changeover in the
Dusseldorf and Ludwigsfelde plants.

DaimlerChrysler Buses sold 8,600 buses and chassis of the
Mercedes-Benz, Setra and Orion brands (Q3 2005: 9,200).

The contribution to earnings from the European Aeronautic
Defence and Space Company amounted to US$313 million, which was
slightly below the result of US$325 million in the prior-year
quarter.  This was primarily caused by less favorable currency-
hedging rates.  The delays with the delivery of the Airbus A380
did not affect the profit contribution from EADS to
DaimlerChrysler in the third quarter, as the results of EADS are
consolidated by the DaimlerChrysler Group with a three-month
time lag.

                              Outlook

DaimlerChrysler expects a slight decrease in worldwide demand
for automobiles in the fourth quarter and thus slower market
growth than in Q4 2005.  For full-year 2006, the company
anticipates market growth of around 3%.

In the United States, the world's largest market, demand is
likely to decrease slightly (2005: 16.9 million cars and light
trucks).  The Japanese market is also expected to be smaller
than in 2005 (4.7 million passenger cars), while there should be
a moderate increase in demand in Western Europe (2005: 14.5
million passenger cars).  Car sales are expected to increase
significantly in full-year 2006 in nearly all of the major
emerging markets of Asia, South America and Eastern Europe.  The
strong demand for commercial vehicles, especially in the heavy
categories, should continue for the rest of this year, although
with lower growth rates. In view of the ongoing overcapacity in
the automotive industry, DaimlerChrysler assumes that the
situation of intense competitive pressure will continue.

DaimlerChrysler expects unit sales in 2006 to be lower than in
the previous year (4.8 million units).

The Mercedes Car Group anticipates full-year unit sales at least
as high as in 2005.  The division assumes that unit sales by
Mercedes-Benz will exceed last year's figure as a result of the
market success of the brand's new products.  The Mercedes Car
Group will continue to effectively implement the CORE
efficiency-improving program. The division's positive earnings
trend is expected to continue in the fourth quarter.

Due to intense competition and the shift in demand towards
smaller vehicles, the Chrysler Group assumes that unit sales
(factory shipments) in 2006 will be lower than in the prior
year.  Eight new models, many of which are in the growing
segments of passenger cars and small SUVs, are now being
launched or will be launched this year.  The Chrysler Group will
implement further cuts in production volumes during the fourth
quarter in order to reduce dealer inventories and clear the way
for the current product offensive.  DaimlerChrysler expects the
division to post a loss of approximately US$1.3 billion for
full-year 2006.

The Truck Group expects full-year unit sales at least to reach
2005 sales figures.  Due to positive market developments in the
core markets of Europe, the United States and Japan in
connection with upcoming new emission regulations, the ongoing
strong demand for its products and further improvements in
productivity and efficiency, the Truck Group expects to
significantly exceed the prior year's earnings.

The Financial Services division anticipates a continuation of
its stable business development in the remaining months of the
year 2006, despite the higher level of interest rates and
falling growth in consumption in the United States.  Enhanced
process quality and efficiency will help to further improve the
division's competitive position. Operating profit in full-year
2006 should be higher than in the prior year.

The Vans unit expects lower unit sales than in 2005 due to the
Sprinter model change.  Unit sales of buses are likely to exceed
the high level of the prior year.  In connection with the
revised delivery planning for the Airbus A380, EADS revoked its
original earnings forecast at the beginning of October. EADS has
not issued any new earnings guidance since then.

The DaimlerChrysler Group's revenues in full-year 2006 should be
slightly higher than in 2005 (US$190 billion).

On September 15, DaimlerChrysler reduced the Group's operating-
profit target for 2006 to an amount in the magnitude of US$6.3
billion.  Although the company now has to assume that the profit
contribution from EADS will be US$0.3 billion lower than
originally anticipated because of the delayed delivery of the
Airbus A380, DaimlerChrysler is maintaining this earnings target
due to very positive business developments in the divisions
Mercedes Car Group, Truck Group and Financial Services.

This forecast also includes charges for the implementation of
the new management model (US$0.6 billion), the focus on the
smart for two (US$1.3 billion) and the staff reductions at the
Mercedes Car Group (US$0.5 billion).  There are positive effects
from gains on the disposal of the off-highway business (US$0.3
billion), the sale of real estate no longer required for
operating purposes (US$0.1 billion) and the release of
provisions for retirement-pension obligations (US$0.3 billion).

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

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

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

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and accessories
under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.

                          *     *     *

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

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


DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit
---------------------------------------------------
DaimlerChrysler AG is not planning to sell its Chrysler division
as the U.S.-German carmaker disclosed of an "aggressive" review
of the unit, The Financial Times says.

Bodo Uebber, DaimlerChrysler's Finance Director, said the
company would review all options, including structural changes,
to turn around its U.S. unit.  Mr. Uebber, however, ruled out a
sale or partnership for the Chrysler unit.

"DaimlerChrysler reaffirms its previous statements made to the
media that there are no plans to sell Chrysler Group," the
company said in a statement.  "The company appropriately chose
not to add to the speculation regarding this topic.  However,
the resulting coverage and comments made it clear that this
'not-for-sale' statement needed to be reaffirmed."

In the third quarter of 2006, Chrysler posted an operating loss
of US$1.477 billion, compared with an operating profit of US$393
million in the same period last year.

The operating loss, according to a statement by DaimlerChrysler,
was primarily the result of a decrease in worldwide factory unit
sales, an unfavorable shift in product and market mix, and
negative net pricing.

"These factors reflect a continuing difficult market environment
in the United States as the Chrysler Group faced increased
dealer inventory levels from the prior quarter, a shift in
consumer demand toward smaller vehicles due to higher fuel
prices, and increased interest rates," DaimlerChrysler added.

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

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

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

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


ERTEX INTERTRADE: Claims Registration Ends November 3
-----------------------------------------------------
Creditors of Ertex Intertrade Tschechien s.r.o. (GmbH) have
until Nov. 3 to register their claims with court-appointed
provisional administrator Christian Geiling.

Creditors and other interested parties are encouraged to attend
the meeting at 1:00 p.m. on Dec. 5 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of 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
Ertex Intertrade Tschechien s.r.o. (GmbH) on Sept. 5.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Ertex Intertrade Tschechien s.r.o. (GmbH)
         Zweigniederlassung Doehlau
         Industriestr. 3
         95182 Doehlau, Germany

The administrator can be contacted at:

         Christian Geiling
         Goethestrasse 8
         93413 Cham, Germany
         Tel: 09971/8519-0
         Fax: 09971/8519-19


GASTRON HAUSTECHNIK: Claims Registration Ends November 3
--------------------------------------------------------
Creditors of GASTRON Haustechnik GmbH have until Nov. 3 to
register their claims with court-appointed provisional
administrator Kerstin Gruettner.

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

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405 (Civil Law Courts)
         4th Floor Anbau
         Sievkingplatz 1
         20355 Hamburg, 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 Hamburg opened bankruptcy proceedings
against GASTRON Haustechnik GmbH on Sept. 11.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         GASTRON Haustechnik GmbH
         Attn: Thomas Leptien, Manager
         Emilienstrasse 34
         20259 Hamburg, Germany

The administrator can be contacted at:

         Kerstin Gruettner
         Neuer Wall 86
         20354 Hamburg, Germany


GOTTFRIED SCHROEDER: Claims Registration Ends November 3
--------------------------------------------------------
Creditors of Gottfried Schroeder GmbH have until Nov. 3 to
register their claims with court-appointed provisional
administrator Peter Knoepfel.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Dec. 5 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Celle
         Hall 014
         Ground Floor
         Branch Mill Road 4
         29221 Celle, 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 Celle opened bankruptcy proceedings
against Gottfried Schroeder GmbH on Sept. 7.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Gottfried Schroeder GmbH
         Attn: Bernd Schoeder, Manager
         Industriestr. 9
         29227 Celle, Germany

The administrator can be contacted at:

         Peter Knoepfel
         Hallerstr. 76
         20146 Hamburg, Germany
         Tel: 040/4146380
         Fax: 040/445635


LEIPZIG-WEST: Claims Registration Ends November 3
-------------------------------------------------
Creditors of Leipzig-West Liegenschaften AG have until Nov. 3 to
register their claims with court-appointed provisional
administrator Lucas F. Floether.

Creditors and other interested parties are encouraged to attend
the meeting at 1:00 p.m. on Dec. 4 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 Leipzig
         Hall 101
         Leipzig, 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 Leipzig opened bankruptcy proceedings
against Leipzig-West Liegenschaften AG on Sept. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Leipzig-West Liegenschaften AG
         Attn: Pierre Raymond Klusmeyer, Manager
         Antonienstrasse 20
         04229 Leipzig, Germany

The administrator can be contacted at:

         Dr. Lucas F. Floether
         Nikolaistrasse 3-5
         04109 Leipzig, Germany


MT BAU: Claims Registration Ends November 3
-------------------------------------------
Creditors of MT Bau GmbH have until Nov. 3 to register their
claims with court-appointed provisional administrator Anja
Commandeur.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 a.m. on Dec. 5 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bochum
         Hall A29
         Ground Floor
         Principal Establishment
         Viktoriastrasse 14
         44787 Bochum, Germany

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

The District Court of Bochum opened bankruptcy proceedings
against MT Bau GmbH on Sept. 15.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         MT Bau GmbH
         Poststr. 68
         44809 Bochum, Germany

         Attn: Mexhit Tahiri, Manager
         Herner Str. 226
         44809 Bochum, Germany

The administrator can be contacted at:

         Dr. Anja Commandeur
         Koenigsallee 200
         44799 Bochum, Germany


PROVIDE-A 2003-1: S&P Affirms BB Rating on Class E Notes
--------------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch with
positive implications the ratings on the class B, C, and D
credit-linked notes issued by Provide-A 2003-1 PLC.  At the same
time, it raised its ratings on the class B and C notes and
affirmed its ratings on the remaining notes and the senior CDS.
It also removed from CreditWatch positive the class B, C, D, and
E notes in Provide-A 2004-1 PLC.  At the same time, the ratings
on the B, C, and D notes were raised and the ratings on the
remaining notes affirmed.

The CreditWatch positive placements in both transactions
occurred on July 28 following an increase in credit enhancement
and stable performance metrics.

The rating actions follow Standard & Poor's detailed credit
analysis of the loan portfolios referenced in both transactions.
This took into account inherent risks, such as market value
decline of underlying properties and foreclosure likelihood of
delinquent borrowers, and mitigated them by applying respective
stresses.  The review led to an up-to-date assessment of the
expected foreclosure frequency and loss severity in the
portfolios at each rating level.

The results of the credit analysis showed that the Provide-A
2003-1 class B and C notes and the Provide-A 2004-1 class B, C,
and D notes have sufficient credit enhancement available to
warrant the positive rating action.

"Both portfolios are performing well and losses are currently
ranging at low levels.  At the same time, sequential
amortization has prevailed in Provide-A 2003-1 and Provide-A
2004-1 and the pool factors have now dropped to 71.5% and 73.7%,
respectively," said Standard & Poor's credit analyst Viktor
Milev.

Mr. Milev added: "Credit events and delinquencies reported in
the transaction are currently slightly outperforming the levels
observed in our German RMBS Index."

To date, repayments in both transactions have been allocated to
the senior CDS and to the class A+ notes.  Credit enhancement in
the transactions is provided through subordination and by a
junior class (a CDS in Provide 2003-1 and an unrated class F
note in Provide 2004-1, respectively), serving as loss
threshold.  As of July 31, 2006, principal losses of
EUR264,314 have been allocated to the junior class F note in
Provide-A 2004-1, reducing the outstanding amount to
EUR24,235,686.  For Provide-A 2003-1, losses as of
Sept. 30, 2006, amounted to EUR558,273 and have led to a
reduction of the threshold amount to EUR67,641,726.

As of September 2006, 2.22% of Provide-A 2003-1's current
portfolio was in arrears by more than 30 days, of which 1.15%
represents credit events.  For Provide-A 2004-1, the numbers are
1.38% and 0.75%, respectively.

In Standard & Poor's credit analysis, a 100% foreclosure
frequency was given to all loans on which a credit event has
already occurred and to all loans in default.  Loans in arrears
(30 or more days) attracted a 50% foreclosure frequency.

Provide-A 2003-1 and 2004-1 are both synthetic, partially funded
RMBS transactions which were originated by Bayerische Hypo- und
Vereinsbank AG.

                       Ratings List

   Class                    Rating
   -----                    ------
                To                        From
                --                        ----

                   Provide-A 2003-1 PLC
          EUR387.75 Million Credit-Linked Notes
       EUR2.64 Billion Senior Credit Default Swap

Ratings Removed From CreditWatch With Positive Implications And
Raised

   B            AA+                        AA/Watch Pos
   C            A+                         A/Watch Pos

Rating Removed From CreditWatch With Positive Implications And
Affirmed

   D            BBB                        BBB/Watch Pos

Ratings Affirmed

   Senior swap  AAA
   A+           AAA
   A            AAA

                    Provide-A 2004-1 PLC
             EUR374.75 Million Credit-Linked Notes

Ratings Removed From CreditWatch With Positive Implications And
Raised

   B            AA+                        AA/Watch Pos
   C            A+                         A/Watch Pos
   D            BBB+                       BBB/Watch Pos

Rating Removed From CreditWatch With Positive Implications And
Affirmed

   E            BB                         BB/Watch Pos

Ratings Affirmed

   A+           AAA
   A            AAA


RED HAT: S&P Revises Outlook on B+ Corp. Credit Rating to Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Raleigh, N.C.-based operating systems provider Red Hat Inc. to
stable from positive, and affirmed its 'B+' corporate credit
rating.

The revision comes after Oracle Corp. announced plans to offer
support services for Red Hat's Linux customers, at the
enterprise level, at a steep discount to Red Hat's prices.
While the near-term impact on Red Hat's profitability is likely
to be limited, in the best case, upgrade prospects have been
pushed out until the impact of Oracle's competitive move can be
better assessed.

"If the company is able to blunt Oracle's impact and realize
increased profitability from current levels, as well as improve
financial leverage, we could revise the outlook back to
positive.  However, if Oracle has a significant competitive
impact and sales momentum stalls and pricing pressures mount,
the outlook could be revised to negative," said Standard &
Poor's credit analyst Stephanie Crane.


STOCKHECKE BAUSTOFFHANDEL: Claims Registration Ends November 3
--------------------------------------------------------------
Creditors of Stockhecke Baustoffhandel und Transporte GmbH & Co.
KG have until Nov. 3 to register their claims with court-
appointed provisional administrator Christoph Schulte-
Kaubruegger.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Nov. 24 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany

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

The District Court of Dortmund opened bankruptcy proceedings
against Stockhecke Baustoffhandel und Transporte GmbH & Co. KG
on Aug. 30.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Stockhecke Baustoffhandel und Transporte GmbH & Co. KG
         Dahlienweg 5
         59192 Bergkamen, Germany

The administrator can be contacted at:

         Dr. Christoph Schulte-Kaubruegger
         Rheinlanddamm 199
         44139 Dortmund, Germany


ZENTRALE FUER: Claims Registration Ends November 3
--------------------------------------------------
Creditors of Zentrale fuer Wohnungsbaugesellschaften AG have
until Nov. 3 to register their claims with court-appointed
provisional administrator Lucas F. Floether.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on Dec. 4 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 Leipzig
         Hall 101
         Leipzig, 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 Leipzig opened bankruptcy proceedings
against Zentrale fuer Wohnungsbaugesellschaften AG on Sept. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Zentrale fuer Wohnungsbaugesellschaften AG
         Attn: Pierre Raymond Klusmeyer and
         Juergen Reinhardt, Managers
         Antonienstr. 20
         04229 Leipzig, Germany

The administrator can be contacted at:

         Dr. Lucas F. Floether
         Nikolaistrasse 3-5
         04109 Leipzig, Germany


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


BORSODCHEM NYRT: Firthlion Ready to Sell 26.2% Stake to Kikkolux
----------------------------------------------------------------
Firthlion Limited has decided to sell its 26.2% stake in
BorsodChem Nyrt. to Kikkolux S.a.r.l., Russian newspaper
Vedomosti says.

As reported in the TCR-Europe on July 11, Kikkolux signed option
agreements with Borsodchem's largest shareholders, Firthlion
Limited (26.158%) -- owned by Megdet Rahimkulov's family -- and
Vienna Capital Partners (21.83%), to acquire their entire stake
at the chemical group.

Luxembourg-based Kikkolux, a unit of Permira Funds, may exercise
the option between July 6 and Oct. 31.

"The conditions of the option are completely satisfactory, and I
am prepared to live with them," Mr. Rahimkulov told Vedomosti.

Mr. Rahimkulov expects to earn US$280 million from the option
deal, priced at HUF3,000 per share.

As reported in the TCR-Europe on Sept. 12, the Board of
Directors of BorsodChem Nyrt. was informed by Kikkolux S.a.r.l.
that it had completed the business/commercial, accounting & tax,
legal & insurance, technical & environmental due diligence
performed in connection with Kikkolux's potential takeover bid
for the ordinary shares of the Company.

Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt. --
http://www.borsodchem.hu/-- produces chlorine, chloric alkali,
hydrochloric acid, caustic lye and PVC resins, and additives for
the plastic and rubber industries.  The Company exports its
products mainly to Western Europe.

The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7%
higher than HUF20.5 billion in 2004.  BorsodChem's net profit
was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion
a year ago.

At Dec. 31, 2005, BorsodChem had HUF237.9 billion in total
assets, HUF98.9 billion in total liabilities and HUF139.02
billion in total equity.

                        *     *     *

The Company's long-term foreign and local issuer credit carry
Standard and Poor's BB rating with stable outlook.

As reported in the TCR-Europe on July 12, Standard & Poor's
Ratings Services placed its 'BB' long-term corporate credit
rating on Hungary-based intermediate chemicals producer
BorsodChem Rt. on CreditWatch with negative implications,
following BorsodChem's announcement of the receipt of a takeover
bid from Permira, a private equity fund.

"The CreditWatch placement reflects our concerns regarding
BorsodChem's potential higher debt load and subsequent weaker
credit protection measures if this sale materializes," said
Standard & Poor's credit analyst Khaled Zitouni.

The ratings continue to reflect the group's exposure to a single
site, limited scale of markets, and presence in cyclical
industries.  These negative factors are partially offset by the
group's leading positions and solid profitability in performance
chemicals, namely toluene di-isocyanate and methylene di-para-
phenylene isocyanate; firm positions in polyvinyl chloride;
presence in growing markets in central and Eastern Europe; and
moderate financial profile.


VALEANT PHARMA: Delays Filing of Third Quarter 2006 Results
-----------------------------------------------------------
Valeant Pharmaceuticals International disclosed in a regulatory
filing with the Securities and Exchange Commission that the
company will be unable to file quarterly report on form 10-Q for
the quarter ended Sept. 30, 2006, as well as complete the
restatement of previously issued financial statements until the
special committee of independent directors of the company's
board of directors has completed its review of the company's
option grant practices and audit of restated periods.

Bary G. Bailey, Valeant Pharmaceuticals' executive vice
president and chief financial officer, said that the company's
failure to remain current in its periodic reporting obligations
could have material adverse consequences which could include
compliance issues under the information reporting requirements
of the company's outstanding convertible and high-yield notes,
which if not timely cured could result in the acceleration of
the outstanding amounts due under those notes.

                           SEC Inquiry

The company previously received a request from the SEC for data
on its stock option granting practices since Jan. 1, 2000, as
part of an informal inquiry.

Accordingly, the company initiated a review of its option
grants, which covers option grants by the company since its
initial public offering in 1982.

The review is being conducted under the direction of the Special
Committee with the assistance of outside legal counsel.

          Stock Option Grant Review Preliminary Results

On Oct. 20, 2006, after receiving from the Special Committee a
report on certain preliminary results of its review, the Board
of Directors concluded that as a result of errors in the
company's accounting for stock options, financial statements for
certain prior periods will need to be restated.

The Special Committee reported that it has determined, with
respect to broad-based grants in 1997 and subsequent years, the
company should have used different measurement dates for the
purpose of computing compensation expense for those stock option
grants in accordance with Accounting Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees."

According to the company, while the Special Committee has not
yet reached a definitive conclusion as to the causes of these
errors, new accounting measurement dates are being applied to
the affected option grants, and the company expects to recognize
material additional non-cash, stock-based compensation expense
for the affected periods.

Because the Special Committee has not completed its review, the
company has not yet determined the magnitude of the restatement,
but based upon the review, the Board of Directors, upon
recommendation of the Finance and Audit Committee, determined
that the company's annual and interim financial statements,
earnings press releases and similar communications previously
issued by the company for and after 1997 should no longer be
relied upon.

The Company notes that the majority of errors in accounting for
options identified to date by the Special Committee pertains to
options granted prior to the change in the company's Board of
Directors and management in June 2002.

Additional errors were found in accounting for certain options
granted to employees since the board and management change, but
none of the errors related to options granted to the current
chief executive officer or chief financial officer, the company
explained.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/-- is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  In
Europe, the company has commercial offices in Belarus, Czech
Republic, France, Germany, Hungary, Italy, The Netherlands,
Poland, Russia, Slovak Republic, Spain, Turkey, Ukraine, and the
United Kingdom.

                          *     *     *

As reported in the TCR-Europe on Oct. 26, Standard & Poor's
Ratings Services placed its ratings on Costa Mesa, CA.-based
Valeant Pharmaceuticals International, including Valeant's 'BB-'
corporate credit rating, on CreditWatch with negative
implications.

In addition, Moody's Investors Service placed the ratings of
Valeant Pharmaceuticals International (B1 corporate family
rating) under review for possible downgrade.  This rating action
follows the company's announcement that it will restate certain
financial statements as a result of accounting errors related to
accounting for stock options.


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


CECCHI GORI: Huge Debt Spurs Rome Court to Declare Firm Bankrupt
----------------------------------------------------------------
A court in Rome has declared Italian filmmaker Cecchi Gori Group
bankrupt after years of financial fix and huge debt, The Variety
says.

According to the report, the Court also appointed a manager to
liquidate Cecchi Gori's assets, the most valuable of which is a
library of 1,200 Italian and international titles, including
Italo rights to most of the James Bond franchise.

The Court, however, excluded from bankruptcy proceedings Cecchi
Gori's exhibition assets, which include the Cecchi Gori Fine
Arts Cinema in Los Angeles and Rome's Adriano multiplex.

"It's a totally unexpected and inexplicable ruling," Vittorio
Cecchi Gori, the group's chairman, said in a statement, noting
that the company in the process of renegotiating terms with its
major creditors, which include Merrill Lynch and several Italian
banks.

"I will fight with all my strength to expose the injustices I
have been submitted to in these last years," Mr. Cecchi Gori
added.  "I may even die poor, but at least it will be as an
honest and respectable person."

The court slated the appeals hearing for Jan. 16, 2007.

                        Financial Slide

Cecchi Gori's financial demise started mid-1990s when its
Telemontecarlo unit challenged state broadcaster RAI and
Mediaset, controlled by former Prime Minister Silvio Berlusconi.
The unit lost the network battle and was finally sold to Telecom
Italia.

The company's acquisition of the A.C. Fiorentina soccer club in
mid-1990s also dented the group's financial condition.  Mr.
Cecchi Gori was at one time accused of illegally transferring
money from A.C. Fiorentina to Finmavi, Cecchi Gori Group's
holding company, to prop up the group's weakening finances amid
corruption charges.  Cecchi Gori had sold A.C. Fiorentina.

Cecchi Gori's first knock on the bankruptcy door came in 2002,
when Merrill Lynch and other creditors sued the company for more
than EUR600 million in unpaid debt.

Over the past years, the group has sold most of its units, but
retained its profitable core assets, including its Rome-based
cinemas.

                        About Cecchi Gori

Headquartered in Rome, Italy, Cecchi Gori Group --
http://www.cecchigori.com/-- produces and distributes movies.
At its peak, it produced a dozen films a year, including "Il
Postino" and "Life is Beautiful."  The group also operates
cinemas in Rome.


PARMALAT: Meeting of Parmalat Capital Creditors Set for Nov. 9
--------------------------------------------------------------
Gordon I. MacRae and James Cleaver of Kroll (Cayman) Limited,
the Joint Official Liquidators for Parmalat Capital Finance
Limited, will convene a meeting of Parmalat Capital's creditors
on Nov. 9, 2006, at 10:30 a.m. (U.S.) EDT.  The meeting will be
held at Kroll Cayman's offices, 4th floor, Bermuda House, Dr.
Roy's Drive, George Town, Grand Cayman, Cayman Islands.

The purpose of the meeting is to consider, and if applicable,
adopt a resolution establishing a liquidation committee.

The meeting is open to registered creditors of Parmalat Capital.
All creditors are requested to attend the meeting.

A registered creditor is one that will have provided the
Liquidators with a complete proof of debt form and supporting
documentation by Nov. 3, 2006.  Registered creditors may vote
in person or may appoint another person as their proxy to attend
and vote in their place.  Those who intend to appoint a proxy
must complete a proxy form and return it to the Liquidators by
November 8.

Parmalat Capital is "under winding up proceedings " before the
Grand Court of the Cayman Islands.

                         About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months.  It also has 40-
some brand product line, which includes yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.

The Company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.  (Parmalat Bankruptcy News, Issue
No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000,
http://bankrupt.com/newsstand)


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


AGROFIRMA LLP: Creditors Must File Claims by Nov. 26
----------------------------------------------------
LLP Agrofirma has declared insolvency.  Creditors have until
Nov. 26 to submit written proofs of claim to:

         LLP Agrofirma
         Strelkovaya devizyia
         Industrial Zone, 312
         Aktobe
         Aktube Region
         Kazakhstan
         Tel/Fax: 8 (3132) 50-38-87


ALTYN-NUR LLP: Court Begins Bankruptcy Proceedings
--------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan Region commenced bankruptcy proceedings against
LLP Altyn-Nur.

The Debtor can be contacted at:

         LLP Altyn-Nur
         Momysh-uly Str. 27
         Shymkent
         South Kazakhstan Region
         Kazakhstan


DAKAR-EKIBASTUZ LLP: Creditors Must File Claims by Nov. 26
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Dakar-Ekibastuz insolvent on July 5.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Nov. 26 to submit written proofs of claim
to:

         LLP Dakar-Ekibastuz
         Lunacharskogo Str. 49
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 55-32-62


EL-BAI LLP: South Kazakhstan Court Starts Bankruptcy Procedure
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan Region commenced bankruptcy proceedings against
LLP El-Bai.

The Debtor can be contacted at:

         LLP El-Bai
         Momysh-uly Str. 27
         Shymkent
         South Kazakhstan Region
         Kazakhstan


INTER CHEMICAL: Proof of Claim Deadline Slated for Nov. 26
----------------------------------------------------------
LLP Inter Chemical Additives has declared insolvency.  Creditors
have until Nov. 26 to submit written proofs of claim to:

         LLP Inter Chemical Additives
         Kalinin Str. 12
         Otogen baatyr
         Ilyi District
         Almaty Region
         Kazakhstan


IVAKON LLP: Proof of Claim Deadline Slated for Nov. 21
------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Ivakon insolvent on Aug. 29.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Nov. 21 to submit written proofs of claim
to:

         LLP Ivakon
         Tekstilshikov Ave. 15/1-101
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 57-33-41


KAZAKHGOLD GROUP: Completes US$200 Million Eurobond Issue
---------------------------------------------------------
KazakhGold Group Limited has completed a US$200 million
Eurobond issue.  The issue, oversubscribed by 3.75 times, was
managed by ING Debt Capital Markets and is of a 7-year bond with
a yield of 9.375p.c. to maturity and issued at par.

KazakhGold, one of the leading gold producers in Kazakhstan,
will be using the monies raised for its accelerated capital
spending program with a residual amount being for general
corporate purposes.

Aidar Assaubayev, KazakhGold's Deputy Chief Executive,
commented: "It has been an extremely successful fund raising and
very well received by the debt markets.  We are the fourth gold
mining company in the world to issue a non-convertible
Eurobond and the first company from Asia, Eastern Europe and
Africa to issue such a bond.  The fact that US$748 million was
forthcoming illustrates the interest investors have in the
KazakhGold Group.  The bond issue was accomplished all within
six working days and the result is a triumph for our company,
the dedicated team at ING, and all concerned."

Investors from more than 21 countries subscribed to the issue
with 118 accounts being accommodated.  Of the total, Asia
accounted for 24p.c. of the take-up, U.S. Offshore 23p.c, UK
21p.c, Switzerland 18p.c., Germany 5p.c., and other regions
9p.c.  Allocations went to:  Fund Managers 41p.c, Private
Bank/Retail 37p.c., Banks/Financial Institutions 21p.c., Others
1p.c.

Mr. Rob Mason, vice-president of ING Debt Capital Markets said:
"It has been an extremely smooth execution and we have been
delighted with the reception to this debut Eurobond transaction
for KazakhGold."

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

                        *    *    *

As reported in the TCR-Europe on Oct. 17, Fitch Ratings has
assigned KazakhGold Group Limited a foreign currency Issuer
Default rating of 'B' with Stable Outlook.  At the same time,
Fitch has assigned KazakhGold's proposed US$150 million senior
bond issue an expected rating of 'B'.  The final rating for the
bond issue is contingent on receipt of final documentation in
line with information already received by the agency.


TECHPROM-TRADE LLP: Creditors' Claims Due Nov. 26
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Techprom-Trade insolvent on July 5.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Nov. 26 to submit written proofs of claim
to:

         LLP Ivakon
         Lunacharskogo Str. 49
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 55-32-62


TSM LLP: Creditors' Claims Due Nov. 26
--------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP TSM insolvent on Aug. 29.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Nov. 26 to submit written proofs of claim
to:

         LLP TSM
         Micro District 28a, 6-79
         Aktau
         Mangistau Region
         Kazakhstan
         Tel: 8 (3292) 40-22-19


ZAMGO LLP: Claims Registration Ends Nov. 26
-------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP Zamgo insolvent.

Creditors have until Nov. 26 to submit written proofs of claim
to:

         LLP Zamgo
         Floor 3
         Abai Str. 10a
         Atyrau Region
         Kazakhstan


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


AEROVISTA AIRLINES: Proof of Claim Deadline Slated for Dec. 13
--------------------------------------------------------------
LLC Aerovista Airlines has declared insolvency.  Creditors have
until Dec. 13 to submit written proofs of claim to:

         LLC Aerovista Airlines
         Free Economic Zone Bishkek
         Mira Ave. 303
         Bishkek, Kyrgyzstan


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


CANDIDE FINANCING: Moody's Rates EUR5MM Class E Notes at (P)Ba3
---------------------------------------------------------------
Moody's Investors Service assigned provisional long-term ratings
to these seven classes of Notes issued by Candide Financing 2006
B.V.:

   -- EUR400,000,000 Senior Class A1 Notes due 2051: (P)Aaa;

   -- EUR350,000,000 Senior Class A2 Notes due 2051: (P)Aaa;

   -- EUR1,125,000,000 Senior Class A3 Notes due 2051: (P)Aaa;

   -- EUR47,000,000 Mezzanine Class B Notes due 2051: (P)Aa2;

   -- EUR40,000,000 Junior Class C Notes due 2051: (P)A1;

   -- EUR38,000,000 Subordinated Class D Notes due 2051:
      (P)Baa2 and

   -- EUR5,000,000 Subordinated Class E Notes due 2051: (P)Ba3.

This transaction represents the second securitization of Dutch
residential mortgage loans sold by Bank of Scotland Amsterdam
Branch and follows last year's Candide Financing 2005
transaction.  The Notes are secured on the assignment of Dutch
Residential Mortgages to the Issuer and the security assignments
closely follow the security structure observed in other Dutch
Residential Mortgage-Backed transactions. Unlike Candide
Financing 2005, the assignment of the mortgages is registered at
closing so that the legal transfer is completed without
notification of the borrowers.  The collateral characteristics
are illustrative of the Dutch mortgage market, containing first-
lien mortgage loans with lower ranking loans only in combination
with first lien, and a weighted average loan to foreclosure
value of approximately 107% at closing.

Proceeds from the issuance of Class A, B, C and D Notes will be
used to purchase a portfolio of mortgage loan receivables and
will be repaid by collections from this portfolio over time.
Class E Notes will together with the unrated Class F Notes fund
the initial Reserve Fund balance and will be repaid by the
available balance of the Reserve Fund when all Class A, B, C and
D Notes are redeemed.  The transaction has a step-up date in
November 2012.

Until May 2007, principal collections from the pool will be used
to purchase further mortgage loan receivables.  After the end of
the revolving period, principal collections will be used to
redeem the notes in sequential order starting with Class A1
Notes, followed by Class A2 Notes and then Class A3 Notes.  The
Class A Notes share the same PDL and interest will be paid pro
rata.

The transaction benefits from a swap with BOS to hedge interest
rate risk over the entire term of the transaction.  Excess
Spread is generated in the transaction through the operation of
the interest rate swap and the minimum Threshold Margin
mechanism, which ensures that interest rates will be reset to
maintain a certain amount of Excess Spread in the transaction.
The Liquidity Facility is provided by ABN AMRO Bank N.V.

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings only represent Moody's
preliminary opinion.  Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavor
to assign definitive rating to the Notes.  A final rating may
differ from a provisional rating.

The provisional ratings address the expected loss posed to
investors by the legal final maturity.  In Moody's opinion, the
structure allows for the timely payment of interest and ultimate
payment of principal by the legal final maturity.


CARLSON WAGONLIT: Moody's Rates EUR285-Mln Notes at (P)B2
---------------------------------------------------------
Moody's Investors Service assigned a provisional (P)B2 rating to
the proposed issuance of EUR285 million senior secured floating
rate notes by Carlson Wagonlit B.V.

The proceeds from the issuance, which will mature in 2015, will
be used to refinance the US$345 million mezzanine bridge
facility which was part of the package, including US$850 million
senior secured bank facilities rated Ba3 by Moody's, arranged to
primarily fund the acquisition of Accor's 50% stake in CWT by
Carlson Companies Inc. and One Equity Partners and the purchase
of Navigant International Inc. by CWT.

The notes are fully and unconditionally guaranteed on a senior
basis by Carlson Wagonlit Super Holding B.V., the parent, but
guaranteed only on an unsecured senior subordinated basis, by
the cash-flow generative operating entities, CWT Global B.V. and
certain of its subsidiaries generating around 63% and 71% of the
group's revenues and EBITDA on a pro-forma basis for the twelve
months ended Dec. 31, 2005.  The guarantees of each subsidiary
guarantor will be therefore subordinated in right of payment to
the obligations of such subsidiary guarantor under the senior
secured bank facilities.

Moody's also observes that the notes are secured by a first
ranking pledge over the shares of CWT, a first ranking pledge
over a US$165 million inter-company funding loan to CWT Global
B.V. and a second ranking pledge of the shares of CWT Global
B.V.  In Moody's view, the collateral offers limited protection
to bondholders as it is either pledged on asset-light holdings
or pledged on a priority basis for the benefit of the lenders
under the senior secured bank facilities.  The (P)B2 rating for
the senior notes therefore factors in their contractual and
effective subordination to the senior secured bank debt, which
represents more than 70% of CWT's consolidated debt.

Moody's issues a provisional rating in advance of the final sale
of securities, representing Moody's preliminary opinion.  Upon a
conclusive review of the transaction and associated
documentation, Moody's will endeavor to assign a definitive
rating to the notes.

As detailed in Moody's last action dated Aug. 1, it is still
expected that the company will focus on de-leveraging its
balance sheet in the intermediate term in order for its Ba3
corporate family rating to be positioned more solidly within its
current rating category.  In particular, Retained Cash Flow to
Net Adjusted Debt (excluding one-off integration costs) should
be maintained over 10% and Net Adjusted Debt to EBITDAR should
fall below 5 times in the intermediate term.

CWT is the second largest travel management company in the
world, serving corporations of all sizes as well as government
institutions.  It reported revenues of approximately
US$1.193 billion in 2005.


CORUS GROUP: Severstal May Drop Bidding Interest, Source Says
-------------------------------------------------------------
OAO Severstal may not launch a counteroffer for fellow
steelmaker Corus Group Plc, the Financial Times reports citing a
source privy to the company.

The Russian steelmaker, according to the source, believes that
Corus' long-term value is not as high as Tata estimates.  Thus,
the source told The Financial Times, Severstal is "extremely
unlikely" to bid for the Anglo-Dutch company.

"Tata has agreed a full price for Corus and is also happy to
take on other liabilities such as support for the company's
pension funds, and I am not sure that Severstal would think it
was in its shareholders' interests to try to outbid the company
at this stage," a banker was quoted by Financial Times as
saying.

As reported in the TCR-Europe on Oct. 23, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus share, subject
to shareholder approval.  If approved, the combined company will
create 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.

People privy to the Tata-Corus deal noted that it is "entirely
possible" that other parties will launch a counteroffer for
Corus before the merger becomes final within two-and-a-half
months.

"There is a 50/50 chance of another company declaring itself [as
a possible purchaser]," a banker told the Financial Times.

As reported in the TCR-Europe on Oct 24, Brazilian steelmaker
Companhia Siderurgica Nacional S.A. is planning to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc.
CSN has hired investment bank Lazards to advise on a potential
deal.

Steel industry observers also expect Russian steelmaker
Novolipetsk Steel to come forward with an offer.

"Corus is one of the largest steelmakers in Europe," Peter Fish,
Managing Director of U.K. steel consultancy Meps, said.   "So
the other companies will be taking a last look before Tata
concludes the deal."

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                       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.

                          *     *     *

Moody's Investors Service placed all ratings of Corus Group plc
under review with direction uncertain following the
recommendation of the board of Corus Group in favor of the
proposed acquisition of the entire capital of Corus Group by
Tata Steel Limited.

If the bondholders exercised the put option or the bonds were
tendered for above par as part of a refinancing, Moody's is
likely to withdraw the ratings for the bonds.  Similarly, a
refinancing of the rated bank loans would also result in a
likely withdrawal of the ratings for the credit facilities.  At
that juncture, Moody's remaining rating at Corus Group will be
the corporate family rating.

Ratings affected:

Corus Group plc

    * Ba2 Corporate Family Rating;

    * Ba1 Rating on EUR800 million Secured
      Bank Facilities maturing July 2008;

    * B1 Rating on EUR800 million Unsecured Notes due 2011; and

    * B1 Rating on GBP200 million in Unsecured Notes due 2008.

Moody's last rating action on Corus was the upgrade to
Ba2/Ba1/B1 on May 8.

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.

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.

Standard & Poor's Ratings Services placed its 'BB' long-term
corporate credit rating on U.K.-based steel consortium Corus
Group PLC on CreditWatch with positive implications following
the announcement by Corus concerning a possible recommended
offer for the company from Tata Steel Ltd., India's second
largest integrated steel company.

At the same time, Standard & Poor's placed its 'BB+' senior
secured bank loan ratings on Corus and its 'BB-' senior
unsecured debt ratings on Corus and related entity Corus Finance
PLC on CreditWatch with positive implications.  The 'B' short-
term corporate credit rating on Corus was also placed on
CreditWatch with positive implications.


CORUS GROUP: S&P Revises Watch Implications on Takeover Concerns
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the implications of
the CreditWatch status of its 'BB' long-term corporate credit
rating on U.K.-based steel consortium Corus Group PLC to
developing from positive, reflecting uncertainties regarding the
financing structure of the proposed bid for the company by Tata
Steel Ltd., India's second-largest integrated steel company.

At the same time, the positive implications of the CreditWatch
status of the 'B' short-term corporate credit rating on Corus
remained unchanged.  The ratings were initially placed on
CreditWatch on Oct. 18 following the announcement by Corus
concerning a possible recommended offer for the company from
Tata Steel.

"The revision of the CreditWatch status of the long-term ratings
reflects uncertainties regarding the financing structure of this
proposed transaction and to what extent it could impair Corus'
financial profile," said Standard & Poor's credit analyst
Tatiana Kordyukova.  "The potential ratings upside is still
valid and could materialize if the combined entity has a
stronger credit quality than Corus on a standalone basis, and if
there is sufficient evidence that Tata Steel will provide
financial support to Corus."

The analysis of Standard & Poor's will focus not only on the
legal structure of the financing but, more importantly, on the
economic incentives of Tata Steel to bail out Corus in a stress
situation.  Furthermore, Standard & Poor's will assess whether
Corus' weak business risk profile would be enhanced by
integration with the low-cost operations of Tata Steel.
Nevertheless, the ratings might be lowered if Tata Steel pursues
an arm's-length approach toward Corus' operations, and if the
financing of the transaction leads to a deterioration of Corus'
financial position.

Standard & Poor's will seek to resolve or update the CreditWatch
within 90 days.  Any resolution will require additional
clarification from Corus and Tata Steel, including detailed
information on terms of the potential transaction and
integration plans.  The rating agency will also monitor whether
the proposed terms of the transaction will evolve in the future.
It maintained the positive implications on the short-term
corporate rating on Corus because, currently, it does not
envisage a scenario under which Corus' credit quality could
deteriorate to such an extent to justify a lower short-term
rating.


REGENT'S PARK: Moody's Puts Low-B Ratings to EUR21.8-Mln Notes
--------------------------------------------------------------
Moody's Investors Service assigned these ratings to eleven
classes of notes issued by Regent's Park CDO B.V., a private
company with limited liability established in the Netherlands:

   -- EUR393,000,000 Class A Senior Secured Floating Rate
      Notes due 2023: Aaa;

   -- EUR40,200,000 Class B-1 Senior Secured Floating Rate
      Notes due 2023: Aa2;

   -- EUR12,000,000 Class B-2 Senior Secured Fixed Rate
      Notes due 2023: Aa2;

   -- EUR51,000,000 Class C Senior Secured Deferrable
      Floating Rate Notes due 2023: A3;

   -- EUR24,000,000 Class D Senior Secured Deferrable
      Floating Rate Notes due 2023: Baa3;

   -- EUR13,800,000 Class E Senior Secured Deferrable
      Floating Rate Notes due 2023: Ba3;

   -- EUR5,000,000 Class P Combination Notes due 2023: A3;

   -- EUR10,000,000 Class Q Combination Notes due 2023: A3;

   -- EUR6,000,000 Class R Combination Notes due 2023: Baa1;

   -- EUR13,500,000 Class T Combination Notes due 2023:
      Baa3; and

   -- EUR8,000,000 Class W Combination Notes due 2023: Ba1.

The EUR66,000,000 Class F Subordinated Notes due 2023 were not
rated.

The Class P Combination Notes represent a combination of a
principal amount of EUR 3,850,000 Class C Notes and
EUR1,150,000 Class F Subordinated Notes.

The Class Q Combination Notes represent a combination of a
principal amount of EUR7,700,000 Class C Notes and EUR2,300,000
Class F Subordinated Notes.

The Class R Combination Notes represent a combination of a
principal amount of EUR4,500,000 Class C Notes and EUR1,500,000
Class F Subordinated Notes.

The Class T Combination Notes represent a combination of a
principal amount of EUR8,250,000 Class C Notes and EUR5,250,000
Class F Subordinated Notes.

The Class W Combination Notes represent a combination of a
principal amount of EUR4,800,000 Class D Notes and EUR 3,200,000
Class F Subordinated Notes.

The initial principal amounts of each of the Class C Notes, the
Class D Notes and the Class F Subordinated Notes include the
initial principal amounts of the Combination Note components.

The ratings address the expected loss posed to investors by the
legal final maturity in 2023.  Moody's ratings address only the
credit risks associated with the transaction.  Other non-credit
risks, such as those associated with the timing of principal
prepayments and other market risks, have not been addressed and
may have a significant effect on yield to investors.

The ratings assigned to the Class P Combination Notes, Class Q
Combination Notes, Class T Combination Notes and Class W
Combination Notes address the ultimate repayment of the Rated
Balance on or before the legal final maturity, where the 'Rated
Balance' is equal at any time to the principal amount of the
each Combination Note on the Issue Date minus the aggregate of
all payments made from the Issue Date to such date, either
through interest or principal payments.  It is not an opinion
about the ability of the issuer to pay interest.

The rating assigned to the Class R Combination Notes addresses
the expected loss posed to the investors by the legal final
maturity as a proportion of the Rated Balance, where the Rated
Balance is equal on any payment date to the Rated Balance on the
preceding payment date increased by the Rated Coupon of 0.25%
per annum and reduced by the aggregate of all payments made on
such payment date, either through interest or principal.

These ratings are based upon:

   -- an assessment of the eligibility criteria and
      portfolio guidelines applicable to the future additions
      to the portfolio;

   -- the protection against losses through the subordination
      of the more junior classes of notes to the more
      senior classes of notes;

   -- the par coverage and interest coverage tests, which
      divert cash flows towards senior notes;

   -- the hedging strategy to be implemented to cover
      currency and interest rate risk;

   -- the expertise of Blackstone Debt Advisors L.P.
      as collateral manager; and

   -- the legal and structural integrity of the issue.

This transaction is a high yield collateralized loan obligation
related to a collateral portfolio of EUR585 million, comprised
primarily of senior secured loans (minimum 85% of the
portfolio), mezzanine loans, unsecured loans, high-yield bonds
and whole business securitisations.  This portfolio is
dynamically managed by Blackstone Debt Advisors L.P.  At closing
approximately 76% of the portfolio has been acquired and the
remaining portion of the portfolio will be acquired during the
12 months ramp-up period in compliance with portfolio
guidelines.  Thereafter, the portfolio of loans will be actively
managed and the portfolio manager will have the option to buy or
sell assets in the portfolio.  Any addition or removal of assets
will be subject to a number of portfolio criteria.


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


BORSODCHEM NYRT: Firthlion Ready to Sell 26.2% Stake to Kikkolux
----------------------------------------------------------------
Firthlion Limited has decided to sell its 26.2% stake in
BorsodChem Nyrt. to Kikkolux S.a.r.l., Russian newspaper
Vedomosti says.

As reported in the TCR-Europe on July 11, Kikkolux signed option
agreements with Borsodchem's largest shareholders, Firthlion
Limited (26.158%) -- owned by Megdet Rahimkulov's family -- and
Vienna Capital Partners (21.83%), to acquire their entire stake
at the chemical group.

Luxembourg-based Kikkolux, a unit of Permira Funds, may exercise
the option between July 6 and Oct. 31.

"The conditions of the option are completely satisfactory, and I
am prepared to live with them," Mr. Rahimkulov told Vedomosti.

Mr. Rahimkulov expects to earn US$280 million from the option
deal, priced at HUF3,000 per share.

As reported in the TCR-Europe on Sept. 12, the Board of
Directors of BorsodChem Nyrt. was informed by Kikkolux S.a.r.l.
that it had completed the business/commercial, accounting & tax,
legal & insurance, technical & environmental due diligence
performed in connection with Kikkolux's potential takeover bid
for the ordinary shares of the Company.

Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt. --
http://www.borsodchem.hu/-- produces chlorine, chloric alkali,
hydrochloric acid, caustic lye and PVC resins, and additives for
the plastic and rubber industries.  The Company exports its
products mainly to Western Europe.

The group's EBITDA for 2005 amounted to HUF27.0 billion, 31.7%
higher than HUF20.5 billion in 2004.  BorsodChem's net profit
was down 17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion
a year ago.

At Dec. 31, 2005, BorsodChem had HUF237.9 billion in total
assets, HUF98.9 billion in total liabilities and HUF139.02
billion in total equity.

                        *     *     *

The Company's long-term foreign and local issuer credit carry
Standard and Poor's BB rating with stable outlook.

As reported in the TCR-Europe on July 12, Standard & Poor's
Ratings
Services placed its 'BB' long-term corporate credit rating on
Hungary-based intermediate chemicals producer BorsodChem Rt. on
CreditWatch with negative implications, following BorsodChem's
announcement of the receipt of a takeover bid from Permira, a
private equity fund.

"The CreditWatch placement reflects our concerns regarding
BorsodChem's potential higher debt load and subsequent weaker
credit protection measures if this sale materializes," said
Standard & Poor's credit analyst Khaled Zitouni.

The ratings continue to reflect the group's exposure to a single
site, limited scale of markets, and presence in cyclical
industries.  These negative factors are partially offset by the
group's leading positions and solid profitability in performance
chemicals, namely toluene di-isocyanate and methylene di-para-
phenylene isocyanate; firm positions in polyvinyl chloride;
presence in growing markets in central and Eastern Europe; and
moderate financial profile.


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


CENTRAL TELECOM: S&P Lifts Rating to B on Improving Performance
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Russia-based telecommunications
operator Central Telecommunications Co. (OJSC) to 'B' from 'B-',
reflecting the company's strengthening financial profile and
improving operating performance.  The outlook is stable.

At the same time, Standard & Poor's raised its long-term Russia
national scale rating on CTC to 'ruBBB+' from 'ruBBB-'.
CTC is the incumbent fixed-line telecoms operator in the Central
European region of Russia.

"The upgrade reflects CTC's improving credit-protection
measures, helped by increasing free cash flows, tightened cost
control, drastically reduced spending, and robust EBITDA
growth," said Standard & Poor's credit analyst Ivan Strougatski.

CTC's business profile is improving, enhanced by continuing
market dominance in key business segments; and steadily
improving regulatory and industry dynamics.  Liquidity
enhancement, in the context of a positive capital markets
environment and favorable lending terms in Russia, further
benefits CTC's credit profile.

The ratings remain constrained, however, by the company's
restricted financial flexibility and weak liquidity.  They are
also constrained by CTC's limited revenue diversification, with
a prevailing reliance on traditional telephony; increasing
competition, particularly in the fast-growing Moscow Oblast
region; and uncertainty regarding further industry and
regulatory reforms in Russia.

Standard & Poor's expects CTC to continue to improve its credit-
protection measures through enhanced profitability and debt
reduction, and that it will continue to diversify its revenue
base and enhance its operations and network.  Given CTC's
significant exposure to short-term debt maturities, the rating
agency expects the company to pay particular attention to its
liquidity management and further optimization of its debt
portfolio.

"CTC's ability to continue improving operating performance and
effectively address financial risks could have positive
implications for the ratings or outlook over the next 12-18
months," said Standard & Poor's credit analyst Lorenzo
Sliusarev.  "Failure to improve the company's weak liquidity
position or continue to strengthen its financial profile, or a
sudden increase in regulatory or market risks, would put
pressure on the ratings."


GAGARINSKOYE GRAIN: Court Starts Bankruptcy Supervision
-------------------------------------------------------
The Arbitration Court of Smolensk Region commenced bankruptcy
supervision procedure on OJSC Gagarinskoye Grain Receiving
Enterprise.  The case is docketed under Case No. A62-3508/
2005(690-N/05).

The Temporary Insolvency Manager is:

         P. Utkin
         Office 12
         Lean House
         P. Lumumby Str. 8
         Cheboksary
         428022 Chuvashiya Republic
         Russia

The Debtor can be reached at:

         OJSC Gagarinskoye Grain Receiving Enterprise
         Office 12
         Lean House
         P. Lumumby Str. 8
         Cheboksary
         428022 Chuvashiya Republic
         Russia


GAZPROMBANK OAO: To Issue RUB3-Bln Mortgage Bonds in December
-------------------------------------------------------------
OAO Gazprombank will issue RUB3 billion in mortgage bonds in
early December, RIA Novosti says.

The bonds will mature in 30 years and will be placed at or near
par value.

                     About Gazprombank

Headquartered in Moscow, Russian Federation, Gazprombank --
http://www.gazprombank.ru/-- a subsidiary of OAO Gazprom,
offers services primarily to the gas industry.  It offers
syndicated loans, participation loans, factoring, lease
financing, cash and settlement services, money transfers and
credit cards.

                        *     *     *

As reported in the TCR-Europe on Oct. 25, Standard & Poor's
Ratings Services raised its long-term counterparty credit rating
on Russia-based Gazprombank to 'BB+' from 'BB', and its Russia
national scale rating to 'ruAA+' from 'ruAA'.  At the same time,
the 'B' short-term counterparty credit rating was affirmed.  S&P
said the outlook is stable.

On Dec. 22, 2005, Moody's Investors Service upgraded
Gazprombank's Financial Strength Rating to D- from E+; the
bank's Baa2/Prime-2 long-term and short-term foreign currency
deposits ratings as well as its Baa1 long-term senior debt
rating remain unchanged.  Moody's said the outlook for the
ratings is stable.


GORNOMARIYSKIY: Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------------
The Arbitration Court of Mariy El Republic commenced bankruptcy
supervision procedure on LLC Meat Combine Gornomariyskiy.  The
case is docketed under Case No. A-38-2086-11/164-2006.

The Temporary Insolvency Manager is:

         N. Smyshlyaev
         Post User Box 75
         Yoshkar-Ola
         424007 Mariy El republic
         Russia

The Debtor can be reached at:

         LLC Meat Combine Gornomariyskiy
         Gornomariyskiy Region
         Mariy El Republic
         Russia


INCOME CJSC: Court Names G. Kudryavtsev as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Murmansk Region appointed Mr. G.
Kudryavtsev as Insolvency Manager for CJSC Income.  He can be
reached at:

         G. Kudryavtsev
         Post User Box 4412
         183008 Murmansk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A42-4903/2006.

The Arbitration Court of Murmansk Region is located at:

         Knipovicha Str. 20
         Murmansk Region
         Russia

The Debtor can be reached at:

         CJSC Income
         Apatity
         Murmansk Region
         Russia


KNYAZHEGUBSKIY WOOD: Court Names E. Klimov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Murmansk Region appointed Mr. E. Klimov
as Insolvency Manager for OJSC Knyazhegubskiy Wood Processing
Combine.  He can be reached at:

         E. Klimov
         Office 3
         O. Koshevogo Str. 14/2
         183008 Murmansk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A42-4172/2006.

The Arbitration Court of Murmansk Region is located at:

         Knipovicha Str. 20
         Murmansk Region
         Russia

The Debtor can be reached at:

         OJSC Knyazhegubskiy Wood Processing Combine
         Lesnaya Str. 20
         Zelenoborskiy
         Kandalaksha
         Murmansk Region
         Russia


KOVYLKINSKIY FACTORY: Court Names G. Varganyan to Manage Assets
---------------------------------------------------------------
The Arbitration Court of Mordoviya Republic appointed Mr. G.
Varganyan as Insolvency Manager for Subsidiary Enterprise OJSC
Kovylkinskiy Factory of Silicate Brick.  He can be reached at:

         G. Varganyan
         Nesterova Str. 9-806
         603005 Nihzniy Novgorod Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A39-2701/06-103/6.

The Arbitration Court of Mordoviya Republic is located at:

         Kommunisticheskaya Str. 33
         Saransk
         Mordoviya Republic
         Russia

The Debtor can be reached at:

         Subsidiary Enterprise OJSC Kovylkinskiy Factory of
         Silicate Brick
         Silikatnyj
         Kovylkinskiy Region
         Mordoviya Republic
         Russia


KUDYMKAR-STROY-MONTAGE: Court Starts Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Komi-Permyatskiy Autonomous Region
commenced bankruptcy supervision procedure on OJSC Kudymkar-
Stroy-Montage.  The case is docketed under Case No. A30-733/
2006.

The Temporary Insolvency Manager is:

         O. Artemov
         Post User Box 5
         620033 Ekaterinburg Region
         Russia

The Arbitration Court of Komi-Permyatskiy Region is located at:

         M. Gorkogo Str. 24
         Kudymkar Region
         619000 Komi-Permyatskiy Region
         Russia

The Debtor can be reached at:

         OJSC Kudymkar-Stroy-Montage
         Stroiteley Str. 15
         Kudymkar
         619000 Komi-Permyatskiy Autonomous Region
         Russia


LUKOIL OAO: To Double Oil Production to Meet Market Demand
----------------------------------------------------------
OAO Lukoil plans to raise its fuel production output in
anticipation of greater demand for oil and gas products in
Russia and Europe, Budapest Business Journal says.

According to the report, Lukoil plans to invest up to US$112
billion by 2016 to almost double crude oil and gas production,
to around four million barrels a day.

"We do believe in natural gas in Russia, because gas prices have
been severely depressed for a long time, due to heavy regulation
of that sector," Andrei Gaidamaka, Lukoil's Vice President of
Strategy, said.  "Yet, right now there is a developing shortage
of gas, a deficit of gas on the domestic market."

Lukoil expects local fuel demand to rise faster than companies
could supply within the next three years, hampering exports to
Europe.  With the rise in demand, domestic gas prices, Lukoil
expects, will breach the US$100 per 1,000 cubic meters level in
the next five to 10 years.  Local gas currently sells at US$23
per 1,000 cubic meters, BBJ reports.

Economy Minister German Gref said in August that Russian gas
consumption will rise by 26 billion to 27 billion cubic meters
in 2007 through 2009.  Output in the same period, however, will
only rise by 21 billion cubic meters.

"We are well positioned to capture," Mr. Gaidamaka said. "We
have one of the largest gas-reserve bases in Russia."

                        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 the 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.


MARIYSKAYA OIL: Court Names R. Garifullin as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Mariy El Republic appointed Mr. R.
Garifullin as Insolvency Manager for LLC Mariyskaya Oil Company.
He can be reached at:

         R. Garifullin
         Post User Box 126
         Naberezhnye Chelny
         423831 Tatarstan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A38-1402-11/141-2006.

The Debtor can be reached at:

         R. Garifullin
         Post User Box 126
         Naberezhnye Chelny
         423831 Tatarstan Republic
         Russia


MINERAL AND DEEP-WELL: D. Yaroslavtsev to Manage Assets
-------------------------------------------------------
The Arbitration Court of Moscow appointed Mr. D. Yaroslavtsev as
Insolvency Manager for CJSC Mineral and Deep-Well Waters.  He
can be reached at:

         D. Yaroslavtsev
         Post User Box  2
         129164 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-35803/06-38-719B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Mineral And Deep-Well Waters
         Apartment 1016
         Building 5
         Musy Dzhalilya Str. 5
         115580 Moscow Region
         Russia


NEVA-DOR-STROY: Bankruptcy Hearing Slated for Dec. 18
------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
will convene on Dec. 18 to hear the bankruptcy supervision
procedure on CJSC Building Company Neva-Dor-Stroy (TIN
780462722).  The case is docketed under Case No. A56-28825/2005.

The Temporary Insolvency Manager is:

         S. Chashin
         Post User Box 15
         191024 St. Petersburg
         Russia

The Debtor can be reached at:

         CJSC Building Company Neva-Dor-Story
         Svetlanovskiy Pr. 42/1
         St. Petersburg Region
         Russia


PETUKHOVSKIY SODA: Court Names S. Ogorodnikov to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Altay Region appointed Mr. S.
Ogorodnikov as Insolvency Manager for OJSC Petukhovskiy Soda
Factory.  He can be reached at:

         S. Ogorodnikov
         Post User Box 2724
         Baranaul
         656065 Altay Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
AO3-8323/06-B.

The Debtor can be reached at:

         OJSC Petukhovskiy Soda Factory
         Stepnaya Str. 73
         Klyuchi
         Klyuchevskiy Region
         Altay Region
         Russia


REINFORCED CONCRETE: Court Names S. Ogorodnikov to Manage Assets
----------------------------------------------------------------
The Arbitration Court of Altay Region appointed Mr. S.
Ogorodnikov as Insolvency Manager for LLC Combine of Reinforced
Concrete Goods.  He can be reached at:

         S. Ogorodnikov
         Post User Box 2724
         Baranaul
         656065 Altay Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
AO3-8208/06-B.

The Debtor can be reached at:

         LLC Combine of Reinforced Concrete Goods
         Promyshlennaya Str. 8
         Zarinsk
         Altay Region
         Russia


SEL-KHOZ-INVEST-STROY: Names V. Vashkevich to Manage Assets
-----------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. V. Vashkevich as Insolvency Manager for CJSC Sel-
Khoz-Invest-Story.  He can be reached at:

         V. Vashkevich
         Apartment 20
         Bolshoy Pr. P.S. 51/9
         197101 St. Petersburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-19920/2006.

The Arbitration Court of St. Petersburg and the Leningrad Region
is located at:

         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         CJSC Sel-Khoz-Invest-Story
         Naberezhnaya Str. 21a
         Kirovsk
         188690 Leningrad Region
         Russia


SEVERSTAL OAO: May Drop Bidding Interest in Corus, Source Says
--------------------------------------------------------------
OAO Severstal may not launch a counteroffer for fellow
steelmaker Corus Group Plc, the Financial Times reports citing a
source privy to the company.

The Russian steelmaker, according to the source, believes that
Corus' long-term value is not as high as Tata estimates.  Thus,
the source told The Financial Times, Severstal is "extremely
unlikely" to bid for the Anglo-Dutch company.

"Tata has agreed a full price for Corus and is also happy to
take on other liabilities such as support for the company's
pension funds, and I am not sure that Severstal would think it
was in its shareholders' interests to try to outbid the company
at this stage," a banker was quoted by Financial Times as
saying.

As reported in the TCR-Europe on Oct. 23, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus share, subject
to shareholder approval.  If approved, the combined company will
create 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.

People privy to the Tata-Corus deal noted that it is "entirely
possible" that other parties will launch a counteroffer for
Corus before the merger becomes final within two-and-a-half
months.

"There is a 50/50 chance of another company declaring itself [as
a possible purchaser]," a banker told the Financial Times.

As reported in the TCR-Europe on Oct 24, Brazilian steelmaker
Companhia Siderurgica Nacional S.A. is planning to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc.
CSN has hired investment bank Lazards to advise on a potential
deal.

Steel industry observers also expect Russian steelmaker
Novolipetsk Steel to come forward with an offer.

"Corus is one of the largest steelmakers in Europe," Peter Fish,
Managing Director of U.K. steel consultancy Meps, said.   "So
the other companies will be taking a last look before Tata
concludes the deal."

                       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.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on July 5, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.


SOUTHERN TELECOM: Improving Liquidity Spurs S&P to Raise Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Russia-based fixed-line
telecommunications operator Southern Telecommunications Co.
(OJSC) to 'B-' from 'CCC+', in light of the company's improving
financial risk profile.  The outlook is stable.

At the same time, Standard & Poor's raised its long-term Russia
national scale rating on STC to 'ruBBB' from 'ruBB'.  STC is the
incumbent fixed-line telecoms operator in the southern region of
Russia.

"The upgrade reflects the company's improving liquidity and
increasing debt-protection measures," said Standard & Poor's
credit analyst Ivan Strougatski.

STC continues to increase its positive free cash flows on the
back of a drastically reduced investment program, a strong focus
on cost control, and sound operating profitability growth.  The
company's liquidity is improving, helped by favorable access to
improving capital markets and the declining dominance of short-
term debt in its maturity profile.

The ratings remain constrained, however, by STC's aggressive
financial risk profile, with a heavy overall debt burden and
constrained financial flexibility.  Limited revenue
diversification, combined with the need to further improve
operating efficiency, and uncertainty of further regulatory and
industry reform, also weaken the company's credit profile.

STC continues to benefit, however, from its dominant market
position in key telephony segments in its franchise area.  The
company's progress in network expansion and upgrades enhances
its ability to provide value-added services, which bodes well
for future competitiveness and profitability growth.  In the
first half of 2006, STC's adjusted EBITDA margin increased to
33% from about 27% at year-end 2005.  A steadily improving
regulatory environment, and positive economic and telecoms
industry dynamics in Russia, further support STC's business
profile.

Standard & Poor's expects that STC's continuing focus on strict
cost control and cautious investment policy, combined with sound
EBITDA and cash flow growth, will allow the company to gradually
reduce financial risk, while maintaining a dominant market share
in its franchise area.

"Further ratings upside potential would require a material
strengthening of the company's financial position and the
continuation of favorable industry, regulatory, and capital
markets dynamics in Russia," said Standard & Poor's credit
analyst Lorenzo Sliusarev.  "An unforeseen weakening of the
company's financial performance, liquidity deterioration, or a
significant increase in regulatory or market risks, could put
pressure on the ratings."


VLADIMIR-FLAX: Court Names S. Neimushev as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Vladimir Region appointed Mr. S.
Neimushev as Insolvency Manager for OJSC Vladimir-Flax.  He can
be reached at:

         S. Neimushev
         Building 2
         Nevzorovykh 89
         603024 Nizhniy Novgorod Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A11-5261/2006-K1-317B.

The Arbitration Court of Vladimir Region is located at:

         Oktyabrskiy Pr. 14
         600025 Vladimir Region
         Russia

The Debtor can be reached at:

         OJSC Vladimir-Flax
         Lunacharskogo Str. 3
         Vladimir Region
         Russia


YEW CJSC: Primorye Court Names D. Prilipko as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Primorye Region appointed Mr. D.
Prilipko as Insolvency Manager for CJSC Builder-Wood Processing
Enterprise Yew.  He can be reached at:

         D. Prilipko
         Post User Box 110
         692760 Artem Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A51-8449/06 11-221 DKhO.

The Debtor can be reached at:

         CJSC Builder - Wood Processing Enterprise Yew
         Geroev Tikhookeantsev Str. 5a
         Vladivostok Region
         Russia


YUKOS OIL: N.Y. Court Dismisses Securities Fraud Litigation
-----------------------------------------------------------
Judge William H. Pauley, III, of the U.S. District Court for the
Southern District of New York dismissed the purported class
action, "In Re Yukos Oil Company Securities Litigation," The
Associated Press reports.

The suit alleged that the Russian company concealed from the
investing public the potential risk from its tax strategies and
from the political activities of its top executive.

Named defendants in the suit:

     -- Yukos Oil Company,
     -- Yukos Universal Limited,
     -- Group Menatep Limited,
     -- Scott A. Ziegler,
     -- Mikhail Khodorkovsky,
     -- Platon Lebedev, and
     -- Bruce Misamore.

The suit claimed that Yukos employed an illegal tax-evasion
scheme since 2000 and that the political activity of Yukos
President Mikhail Khodorkovsky, exposed the company to
retribution from the Russian government.

The securities-fraud complaint had sought class-action status
for purchasers of Yukos securities between Jan. 22, 2003, and
Oct. 25, 2003.

In March, the judge allowed the claims over its tax strategies
to proceed, but dismissed the other allegations.

According to the report, in 2003, the Russian government
arrested Mr. Khodorkovsky and seized his 44 percent equity stake
in the company, charging him with fraud, embezzlement and
evasion of personal income taxes. He is serving an eight-year
sentence in a prison camp.

The Russian Ministry of Taxation also concluded the company had
used an illegal tax-evasion scheme between 2001 and 2003,
underpaying its taxes by more than $27.5 billion.

The Russian government eventually confiscated Yukos' main
production facility and billions of dollars in its bank
accounts.

The suit is "In Re Yukos Oil Company Securities Litigation, Case
No. 1:04-cv-05243-WHP," filed in the U.S. District Court for the
Southern District of New York under Judge William H. Pauley,
III.

Representing plaintiffs are:

     (1) Eric James Belfi of Labaton Rudoff & Sucharow LLP, 100
         Park Avenue, 12th Floor, New York, NY 10017, Phone:
         (212) 907-0790, Fax: (212) 883-7579, E-mail:
         ebelfi@labaton.com;

     (2) Thomas James Kennedy and Brian Philip Murray both of
         Murray, Frank & Sailer, LLP, 275 Madison Avenue, Ste.
         801, New York, NY 10016, Phone: (212)-682-1818, Fax:
         (212)-682-1892, E-mail: tkennedy@murrayfrank.com or
         bmurray@murrayfrank.com; and

     (3) David Avi Rosenfeld, Robert M. Rothman and Samuel
         Howard Rudman all of Lerach, Coughlin, Stoia, Geller,
         Rudman & Robbins, LLP, 58 South Service Road, Suite
         200, Melville, NY 11747, Phone: 631-367-7100, Fax: 631-
         367-1173, E-mail: drosenfeld@lerachlaw.com or
         rrothman@lerachlaw.com or srudman@lerachlaw.com.

Representing defendants are:

     (i) Robert Allen Horowitz of Greenberg Traurig, LLP (NYC),
         200 Park Avenue, New York, NY 10166, Phone: 212-801-
         2194, Fax: 212-224-6114, E-mail: horowitzr@gtlaw.com;
         and

    (ii) Jeffrey S. Jacobson of Debevoise & Plimpton, LLP (NYC),
         919 Third Avenue, New York, NY 10022, Phone: 212-909-
         6479, Fax: 212-909-6836, E-mail:
         jsjacobs@debevoise.com.

                         About Yukos

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

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

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

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

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

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

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


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


MILLS CORP: Responds to Gazit-Globe Recapitalization Offer
----------------------------------------------------------
The Mills Corporation responded to the press release and
Schedule 13D issued by Israeli corporation Gazit-Globe Ltd. and
its chairman Chaim Katzman.

As has been previously announced by The Mills, the company and
its board of directors -- under the leadership of a special
committee consisting of independent directors -- are in the
midst of exploring the company's strategic alternatives.

The Mills board of directors is seeking to maximize shareholder
value, for the benefit of all shareholders of The Mills, and
accordingly has no predisposition or prejudice whatsoever in the
strategic alternative process.  Whether this result will be an
outright sale of the company, a recapitalization, or some other
transaction will be determined through a competitive process in
which all interested persons have a fair opportunity to compete,
for the benefit of all shareholders of The Mills.  It is
precisely that process which The Mills and its board of
directors are currently conducting.  Gazit-Globe is welcome to
participate in that process and has been so advised by The Mills
on numerous occasions, as is reflected in Gazit-Globe's own
Schedule 13D, through in-person meetings and other contacts.

Gazit-Globe's recapitalization proposal is contingent on the
completion of the Meadowlands Xanadu transaction with Colony
Capital and other matters, including the satisfaction of a
variety of financial tests and measures that The Mills will not
be in a position to confirm or certify until the pending
restatement of its financial statements has been completed.  The
Mills' management and board of directors are focused on
completing the Meadowlands Xanadu transaction, the restatement
of the company's financials, and other steps necessary to allow
The Mills to position itself effectively to enter into a
strategic alternative transaction or transactions.

Gazit-Globe's recapitalization proposal will be considered by
The Mills' board of directors as part of the process of
exploring strategic alternatives and maximizing value for all
Mills shareholders.

                    About The Mills Corporation

Headquartered in Chevy Chase, Maryland, The Mills Corporation
(NYSE:MLS) -- http://www.themills.com/-- develops, owns,
manages retail destinations including regional shopping malls,
market dominant retail and entertainment centers, and
international retail and leisure destinations.  The Company owns
42 properties in the U.S., Canada and Europe, totaling 51
million square feet.  In addition, The Mills has various
projects in development, redevelopment or under construction
around the world.

                         *     *     *

As reported in the Troubled Company Reporter on March 24, 2006,
The Mills Corporation disclosed that the U.S. Securities and
Exchange Commission has commenced a formal investigation.

The SEC initiated an informal inquiry in January after the
Company reported the restatement of its prior period financials.

Mills is restating its financial results from 2000 through 2004
and its unaudited quarterly results for 2005 to correct
accounting errors related primarily to certain investments by a
wholly-owned taxable REIT subsidiary, Mills Enterprises, Inc.,
and changes in the accrual of the compensation expense related
to its Long-Term Incentive Plan.


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


SAS AB: To Sell 75% Outstanding Shares in Rezidor
-------------------------------------------------
SAS Group's subsidiary Rezidor Hotel Group AB has commenced the
formal process of seeking a listing on the Nordic List of the
Stockholm Stock Exchange.  The IPO will be completed by the end
of 2006, subject to market conditions and final SAS AB's Board
approval.

On June 22, SAS disclosed its intention to prepare for a listing
of Rezidor through an IPO on the Stockholm Stock Exchange.  The
divestiture of Rezidor is in line with SAS's strategy to focus
on its core airline activities.  The offering is expected to
allow SAS to exit completely from the hotel business, continuing
the process initiated in 2005 when Carlson acquired 25% of
Rezidor's shares.

Over the last several years, Rezidor has generated significant
growth.  In parallel, Rezidor has made a strategic shift from
owning hotel properties to hospitality management, initiated in
1997 and completed in 2005 when Rezidor sold its last remaining
hotel.  Rezidor continues to grow based on this flexible, asset-
light business model and believes it is well positioned to
continue to generate profitable growth.

Rezidor believes it will be able to improve its strategic focus
even further as a public company.  The board of directors and
management team will be accountable directly to its shareholders
and focused exclusively on its core hospitality management
operations.  Rezidor will not receive any of the proceeds from
the sale of the shares by SAS in the offering.

Rezidor believes its listing will increase attention from the
capital markets and the media and improve the profile of both
the company and the Rezidor brands.  Rezidor believes this
should further enhance its position in its markets, expand its
opportunities to obtain contracts with attractive partners and
property owners, and further strengthen the platform for the
future development of its business.

In connection with the IPO, SAS expects to sell its entire
shareholding, equal to 75% of all the outstanding Rezidor
shares.  No new Rezidor shares will be issued.  Carlson, a
leading U.S. travel and hospitality company, has confirmed its
intention to remain a significant shareholder in Rezidor and
will increase its stake from 25 to 35% of Rezidor through the
purchase of shares from SAS at the IPO price.

Gunnar Reitan, Acting President and CEO of SAS Group, commented:
"Listing Rezidor on the Stockholm Stock Exchange benefits all
parties.  For Rezidor, it is a logical move as it prepares for
its next stage of development and for SAS, the listing of
Rezidor is in line with SAS's stated strategy of focusing on
core airline activities."

                        About Rezidor

Rezidor is one of the fastest growing hotel companies in Europe
as measured by the number of hotel rooms added to the portfolio
from 2003 through 2005.  The hotels in its portfolio are
principally operated under two key hotel brands, Radisson SAS
and Park Inn, but also under three development brands, Regent,
Hotel Missoni and Country Inn.  As of September 30, 2006,
Rezidor had 226 hotels in operation and 46 hotels under
development, all of which, except for one hotel in China, are
located in the EMEA area.

                          About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- is the Nordic region's largest
listed airline and travel group and the fourth-largest airline
group in Europe, in terms of passengers.  It had revenues of
SEK61.89 billion in fiscal year 2005.


SAS AB: Stake Sale Plan Prompts Moody's to Affirm Ratings
---------------------------------------------------------
Moody's Investors Service affirmed SAS's ratings and changed the
outlook to stable from negative following the recent improvement
in operating performance of SAS AB, and the company's
announcement that it plans to sell the remaining 75% stake it
owns in Rezidor by the end of the year.

The ratings of SAS (B1 Corporate Family Rating, B2 Senior
Unsecured, B3 Subordinated) reflect the application of Moody's
rating methodology for government-related issuers, which combine
these inputs:

   -- SAS's Baseline Credit Assessment (BCA) of 15 (on a
      scale of 1 to 21, 15 representing the equivalent
      of B2), which is Moody's opinion on the stand-alone
      credit quality of the company,

   -- the Aaa ratings of the supporting governments:
      Denmark, Norway and Sweden,

   -- the default dependence between SAS and the
      supporting governments, which is considered as low,
      and

   -- the expected level of support from the
      supporting governments, which is also viewed as low.

Moody's acknowledges that SAS's BCA has enjoyed a gradual
strengthening, reflecting the company's improved operating
performance, driven by positive traffic and yield development,
higher load factors, the introduction of a new business model,
and the positive impact on its cost structure of the
successfully executed restructuring program.

SAS's BCA of 15 reflects the company's good position as
Scandinavia's number-one passenger carrier under the SAS brand
and other leading regional airlines, as well as its commitment
to improve its competitiveness through a substantial cost-
cutting program.  The current BCA also factors in the
increasingly competitive environment, particularly from low-cost
carriers, and the continuous pressure on profitability from high
fuel prices.

Furthermore, Moody's notes SAS's recent announcement of the
company's intention to list its remaining 75% stake in its hotel
business Rezidor.  When the transaction is completed and if the
proceeds were to be applied to debt reduction, Moody's may
revisit the ratings in light of the new corporate structure and
the pro forma credit metrics excluding Rezidor that will benefit
from a reduction in financial debt and lease-adjusted debt,
which could lead Moody's to raise SAS's BCA to 14 from 15.

Moody's also factors into the rating a degree of uncertainty
related to the potential change in SAS's ownership structure.
The newly elected Swedish government has publicly stated that
its stake in SAS could be sold as part of an upcoming
privatization program.  However, Moody's notes that there is
little clarity at this stage regarding the details of this
privatization program, in particular the sequencing of such
sales. Should a change in the ownership structure occur, Moody's
would revisit its assessment of the level of support now
embedded into the rating.  Should the BCA remain unchanged at
15, any reduction in the level of support would likely imply a
one-notch downgrade of all ratings.  If the BCA were to be
upgraded to 14, the ratings would likely be affirmed regardless
of any change in support.

SAS AB, headquartered in Stockholm, Sweden, is the Nordic
region's largest listed airline and travel group and the fourth-
largest airline group in Europe, in terms of passengers.  It had
revenues of SEK61.89 billion in fiscal year 2005.


SAS AB: Unit Posts EUR43.6-Mln EBITDA in 9-Months Ended Sept. 30
----------------------------------------------------------------
SAS Group's subsidiary Rezidor Hotel Group AB disclosed
financial results for the 9 months ended September 30, 2006.

                 Rezidor Key Financials

    * Operating revenue increased to EUR521.9 million from
      EUR419.7 million in the 9 month period last year, an
      increase of 24.3%

    * Consolidated EBITDA increased to EUR43.6 million from
      EUR24.8 million last year, an increase of 75.6%

    * EBIT increased to EUR27.9 million from EUR15.3 million
      last year, an increase of 82%

    * EBT increased to EUR26 million from EUR8.7 million last
      year

    * RevPAR (revenue per available room), including leased and
      managed hotels, increased to EUR72 from EUR67 last year,
      an increase of 7.5%

    * 23 contracts for new hotels were signed during the
      nine months to September, representing 5,485 rooms

"Under SAS's ownership, Rezidor has established a leading
position in the hotel industry in Europe, Middle East and
Africa."  Gunnar Reitan, Acting President and CEO of SAS Group,
commented.  "Rezidor's success has been built on a strong
portfolio of brands, a dedication to operational excellence and
a proven strategy executed by an experienced management team.
At the same time, it has created an attractive platform for
profitable growth also in the future by moving early into a
number of exciting markets and developing a strong pipeline of
new hotel contracts.  The momentum in Rezidor's business
resulting from the focused growth strategy is underlined by the
9 month results which demonstrate strong growth in profits and
RevPAR."

                        About Rezidor

Rezidor is one of the fastest growing hotel companies in Europe
as measured by the number of hotel rooms added to the portfolio
from 2003 through 2005.  The hotels in its portfolio are
principally operated under two key hotel brands, Radisson SAS
and Park Inn, but also under three development brands, Regent,
Hotel Missoni and Country Inn.  As of September 30, 2006,
Rezidor had 226 hotels in operation and 46 hotels under
development, all of which, except for one hotel in China, are
located in the EMEA area.

                          About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- is the Nordic region's largest
listed airline and travel group and the fourth-largest airline
group in Europe, in terms of passengers.  It had revenues of
SEK61.89 billion in fiscal year 2005.

                       *    *    *

On Oct. 26, Moody's Investors Service affirmed SAS's ratings and
changed the outlook to stable from negative following the recent
improvement in operating performance of SAS AB, and the
company's announcement that it plans to sell the remaining 75%
stake it owns in Rezidor by the end of the year.

The ratings of SAS (B1 Corporate Family Rating, B2 Senior
Unsecured, B3 Subordinated) reflect the application of Moody's
rating methodology for government-related issuers, which combine
these inputs:

   -- SAS's Baseline Credit Assessment (BCA) of 15 (on a
      scale of 1 to 21, 15 representing the equivalent
      of B2), which is Moody's opinion on the stand-alone
      credit quality of the company,

   -- the Aaa ratings of the supporting governments:
      Denmark, Norway and Sweden,

   -- the default dependence between SAS and the
      supporting governments, which is considered as low,
      and

   -- the expected level of support from the
      supporting governments, which is also viewed as low.


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


BUDIVNIK LLC: Court Names Volodimir Glyadchenko as Liquidator
-------------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Volodimir
Glyadchenko as Liquidator/Insolvency Manager for LLC Budivnik
(code EDRPOU 32447707).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 5.  The case is docketed
under Case No. B 40/211-06.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Budivnik
         Vorontsov Avenue 73
         49600 Dnipropetrovsk Region
         Ukraine


DONKAVAMET: Public Auction of Assets Slated for Nov. 3
------------------------------------------------------
The Branch of Agency of Bankruptcy Questions in Donetsk Region,
acting in its capacity as liquidator of Joint Enterprise
Donkavamet, will auction the company's properties to the public
at 11:00 a.m. on Nov. 3 at:

         Hodakovskij Str. 5
         Donetsk Region
         Ukraine

The company has set a UAH46,162,855 starting price exclusive of
VAT.

To participate, bidders must submit their bids until Oct. 31 to:

         Komsomolskij Avenue 8
         Donetsk Region
         Ukraine

Inquiries can be addressed to:

         Auction Committee
         Komsomolskij Avenue 8
         Donetsk Region Ukraine
         Tel: 8 (062) 304-77-83
                      304-37-21


INTERNET TECHNOLOGIES: Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Economic Court of Chernigiv Region commenced bankruptcy
supervision procedure on OJSC Scientific-Production Enterprise
Internet Technologies and Electronic Communications (code EDRPOU
14225079) on March 7.

The case is docketed under Case No. 9/122 b.

Temporary Insolvency Manager is:

         Oleksij Lugovij
         Kutuzov Str. 6/50
         01011 Kyiv Region
         Ukraine

The Economic Court of Chernigiv Region is located at:

         Miru Avenue 20
         14000 Chernigiv Region
         Ukraine

The Debtor can be reached at:

         OJSC Scientific-Production Enterprise
         Internet Technologies and Electronic Communications
         Odintsov Str. 17 a
         14030 Chernigiv Region
         Ukraine


METEKS-M: Court Names Sergij Rulyov as Insolvency Manager
---------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Sergij
Rulyov as Liquidator/Insolvency Manager for LLC Meteks-M (code
EDRPOU 33717197).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 27.  The case is docketed
under Case No. B 29/250-06.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Meteks-M
         Zhukovskij Str. 18
         49000 Dnipropetrovsk Region
         Ukraine


SOUTH RADIO: Dnipropetrovsk Court Starts Bankruptcy Supervision
---------------------------------------------------------------
The Economic Court of Dnipropetrovsk Region commenced bankruptcy
supervision procedure on OJSC South Radio Plant (code EDRPOU
14313949) on Aug. 22.  The case is docketed under Case No. B
15/183/06.

Sergij Pivovar Temporary Insolvency Manager is:

         Borodinska Str. 8-A
         49029 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 South Radio Plant
         Zaliznichna Str. 5
         Zhovti Vodi
         52208 Dnipropetrovsk Region
         Ukraine


YAMPILSKIJ RAJPOBUTKOMBINAT: Liquidator Starts Selling Assets
-------------------------------------------------------------
The Economic Court of Vinnitsya Region appointed Vinnitsya
Regional Sector of Bankruptcy Questions as Liquidator for LLC
Yampilskij Rajpobutkombinat.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
10/125-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Yampilskij Rajpobutkombinat
         Yampil, Lenin Str. 79
         24500 Vinnitsya Region
         Ukraine


ZAGIRYA LLC: Court Names V. Olenchenko as Insolvency Manager
------------------------------------------------------------
The Economic Court of Ternopil Region appointed Mr. V.
Olenchenko as Liquidator/Insolvency Manager for LLC Zagirya
(code EDRPOU 31966136).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 12.  The case is docketed
under Case No. 17/B-726.

The Economic Court of Ternopil Region is located at:

         Ostrozski Str. 14a
         46000 Ternopil Region
         Ukraine

The Debtor can be reached at:

         LLC Zagirya
         Zagirtsi
         Lanovetskij District
         52208 Ternopil Region
         Ukraine


ZEMLYA LLC: Kyiv Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Artistic Club Zemlya (code EDRPOU
23714328).  The case is docketed under Case No. 24/491-b.

Temporary Insolvency Manager is:

         Mikola Titarenko
         Saksaganskij Str. 24/18
         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 Artistic Club Zemlya
         Peremogi Avenue 12/66
         03026 Kyiv Region
         Ukraine


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


ABCOR SECURITY: Nominates Liquidator from Simmonds & Company
------------------------------------------------------------
Gordon Allan Mart Simmonds of Simmonds & Company was nominated
Liquidator of Abcor Security Services Limited on Oct. 17 for the
creditors' voluntary winding-up procedure.

The company can be reached at:

         Abcor Security Services Limited
         Claverton House
         Claverton Road
         Roundthorn Industrial Estate
         Manchester
         Lancashire M23 9SP
         United Kingdom
         Tel: 0161 945 3339


ACTIVE WORKWEAR: Claims Filing Period Ends Jan. 11, 2007
--------------------------------------------------------
Creditors of Active Workwear Limited have until Jan. 11, 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 Joint
Liquidator Daniel Paul Hennessy at:

         Cresswall Associates Limited
         Maple View
         White Moss Business Park
         Skelmersdale
         Lancashire WN8 9TG
         United Kingdom

The company can be reached at:

         Active Workwear Limited
         Towngate
         Leyland
         Lancashire PR252LH
         United Kingdom
         Tel: 01772 459 900


AFC ENTERPRISES: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency revised
its Corporate Family Rating for AFC Enterprises Inc. from B1 to
B2.

Additionally, Moody's affirmed its B1 ratings on the company's
US$190 million Guaranteed Senior Secured Term Loan B Due 5/2011
and US$60 million Guaranteed Senior Secured Revolver Due 5/2010.
Moody's assigned the debentures an LGD3 rating suggesting
lenders will experience a 31% loss in the event of default.

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

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

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

AFC Enterprises Inc. engages in the development, operation, and
franchising of quick-service restaurants.  Its restaurants offer
food and beverage products.  As of Dec. 25, 2005, the company
operated 1,828 Popeyes restaurants in the United States, Puerto
Rico, Guam, and 24 foreign countries.  AFC Enterprises was
founded in 1972 and is headquartered in Atlanta, Georgia.


ARK AGENCY: Appoints Anthony David Kent as Liquidator
-----------------------------------------------------
Anthony David Kent of Maidment Judd was appointed Liquidator of
Ark Agency (U.K.) Limited on Oct. 16 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Ark Agency (U.K.) Limited
         166 Bedford Road
         Kempston
         Bedford
         Bedfordshire MK428BH
         United Kingdom
         Tel: 01234 841 617


ATMOSTHERM SERVICES: Calls In Liquidators from CLB Coopers
----------------------------------------------------------
Diane Hill and Mark Getliffe of CLB Coopers were appointed
Liquidator of Atmostherm Services Limited on Oct. 12 for the
creditors' voluntary winding-up procedure.

Headquartered in Manchester, United Kingdom, Atmostherm Services
Limited installs heating and ventilation systems.


CETUS PRODUCTS: Nominates Liquidator from Piper Thompson
--------------------------------------------------------
Tony James Thompson of Piper Thompson was nominated Liquidator
of Cetus Products Limited on Oct. 16 for the creditors'
voluntary winding-up procedure.

Headquartered in Staines United Kingdom, Cetus Products Limited
-- http://www.cetus.co.uk/-- specializes in litho and screen
printing onto sheet plastic.  Its core business is the design,
manufacture, and print of promotional plastic products for the
advertising, marketing and promotions industries.


CORPORATE INTERNET: Creditors Ratify Liquidator's Appointment
-------------------------------------------------------------
Creditors of Corporate Internet Services Limited ratified
Oct. 12 the appointment of Alan H. Tomlinson of Tomlinsons as
Liquidator of the company.

The company can be reached at:

         Corporate Internet Services Limited
         High Street
         Egham
         Surrey TW209HP
         United Kingdom
         Tel: 01784 494 430


COLLINS & AIKMAN: Gets US$200-Mln Funding from DaimlerChrysler
--------------------------------------------------------------
DaimlerChrysler AG's Chrysler unit provided approximately
US$200,000,000 in financial support to Collins & Aikman Corp.
since 2005, the automaker disclosed in its third quarter
financial report filed on Form 6-K with the U.S. Securities and
Exchange Commission.

Of the amount, DaimlerChrysler says US$70,000,000 was extended
to Collins & Aikman in 2006.

Robert Kothner, DaimlerChrysler's vice president and chief
accounting officer, relates that a prolonged interruption in the
supply of components from the Company's suppliers, in particular
Collins & Aikman and Delphi Corporation, would disrupt the
production of certain Chrysler Group and Mercedes Car Group
vehicles.

"DaimlerChrysler may be required to provide additional financial
support, or take other costly actions, to avoid such
interruption," according to Mr. Kothner.

The Stuttgart, Germany-based automaker reported EUR541,000,000
in net income in the third quarter of 2006.  The Chrysler Group,
it's North American unit, however, posted a EUR1,164,000,000
operating loss, compared with a EUR310,000,000 operating profit
during the same period in 2005.

The Big 3 automakers -- DaimlerChrysler, Ford and General Motors
-- accounted for approximately 80% of Collins & Aikman's
revenues in 2005.

                     About Collins & Aikman

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
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.


CORUS GROUP: Severstal May Drop Bidding Interest, Source Says
-------------------------------------------------------------
OAO Severstal may not launch a counteroffer for fellow
steelmaker Corus Group Plc, the Financial Times reports citing a
source privy to the company.

The Russian steelmaker, according to the source, believes that
Corus' long-term value is not as high as Tata estimates.  Thus,
the source told The Financial Times, Severstal is "extremely
unlikely" to bid for the Anglo-Dutch company.

"Tata has agreed a full price for Corus and is also happy to
take on other liabilities such as support for the company's
pension funds, and I am not sure that Severstal would think it
was in its shareholders' interests to try to outbid the company
at this stage," a banker was quoted by Financial Times as
saying.

As reported in the TCR-Europe on Oct. 23, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus share, subject
to shareholder approval.  If approved, the combined company will
create 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.

People privy to the Tata-Corus deal noted that it is "entirely
possible" that other parties will launch a counteroffer for
Corus before the merger becomes final within two-and-a-half
months.

"There is a 50/50 chance of another company declaring itself [as
a possible purchaser]," a banker told the Financial Times.

As reported in the TCR-Europe on Oct 24, Brazilian steelmaker
Companhia Siderurgica Nacional S.A. is planning to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc.
CSN has hired investment bank Lazards to advise on a potential
deal.

Steel industry observers also expect Russian steelmaker
Novolipetsk Steel to come forward with an offer.

"Corus is one of the largest steelmakers in Europe," Peter Fish,
Managing Director of U.K. steel consultancy Meps, said.   "So
the other companies will be taking a last look before Tata
concludes the deal."

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                       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.

                          *     *     *

Moody's Investors Service placed all ratings of Corus Group plc
under review with direction uncertain following the
recommendation of the board of Corus Group in favor of the
proposed acquisition of the entire capital of Corus Group by
Tata Steel Limited.

If the bondholders exercised the put option or the bonds were
tendered for above par as part of a refinancing, Moody's is
likely to withdraw the ratings for the bonds.  Similarly, a
refinancing of the rated bank loans would also result in a
likely withdrawal of the ratings for the credit facilities.  At
that juncture, Moody's remaining rating at Corus Group will be
the corporate family rating.

Ratings affected:

Corus Group plc

    * Ba2 Corporate Family Rating;

    * Ba1 Rating on EUR800 million Secured
      Bank Facilities maturing July 2008;

    * B1 Rating on EUR800 million Unsecured Notes due 2011; and

    * B1 Rating on GBP200 million in Unsecured Notes due 2008.

Moody's last rating action on Corus was the upgrade to
Ba2/Ba1/B1 on May 8.

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.

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.

Standard & Poor's Ratings Services placed its 'BB' long-term
corporate credit rating on U.K.-based steel consortium Corus
Group PLC on CreditWatch with positive implications following
the announcement by Corus concerning a possible recommended
offer for the company from Tata Steel Ltd., India's second
largest integrated steel company.

At the same time, Standard & Poor's placed its 'BB+' senior
secured bank loan ratings on Corus and its 'BB-' senior
unsecured debt ratings on Corus and related entity Corus Finance
PLC on CreditWatch with positive implications.  The 'B' short-
term corporate credit rating on Corus was also placed on
CreditWatch with positive implications.


CORUS GROUP: S&P Revises Watch Implications on Takeover Concerns
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the implications of
the CreditWatch status of its 'BB' long-term corporate credit
rating on U.K.-based steel consortium Corus Group PLC to
developing from positive, reflecting uncertainties regarding the
financing structure of the proposed bid for the company by Tata
Steel Ltd., India's second-largest integrated steel company.

At the same time, the positive implications of the CreditWatch
status of the 'B' short-term corporate credit rating on Corus
remained unchanged.  The ratings were initially placed on
CreditWatch on Oct. 18 following the announcement by Corus
concerning a possible recommended offer for the company from
Tata Steel.

"The revision of the CreditWatch status of the long-term ratings
reflects uncertainties regarding the financing structure of this
proposed transaction and to what extent it could impair Corus'
financial profile," said Standard & Poor's credit analyst
Tatiana Kordyukova.  "The potential ratings upside is still
valid and could materialize if the combined entity has a
stronger credit quality than Corus on a standalone basis, and if
there is sufficient evidence that Tata Steel will provide
financial support to Corus."

The analysis of Standard & Poor's will focus not only on the
legal structure of the financing but, more importantly, on the
economic incentives of Tata Steel to bail out Corus in a stress
situation.  Furthermore, Standard & Poor's will assess whether
Corus' weak business risk profile would be enhanced by
integration with the low-cost operations of Tata Steel.
Nevertheless, the ratings might be lowered if Tata Steel pursues
an arm's-length approach toward Corus' operations, and if the
financing of the transaction leads to a deterioration of Corus'
financial position.

Standard & Poor's will seek to resolve or update the CreditWatch
within 90 days.  Any resolution will require additional
clarification from Corus and Tata Steel, including detailed
information on terms of the potential transaction and
integration plans.  The rating agency will also monitor whether
the proposed terms of the transaction will evolve in the future.
It maintained the positive implications on the short-term
corporate rating on Corus because, currently, it does not
envisage a scenario under which Corus' credit quality could
deteriorate to such an extent to justify a lower short-term
rating.


DAIMLERCHRYSLER AG: Losses Continue at Chrysler Group
-----------------------------------------------------
DaimlerChrysler AG achieved a third quarter operating profit of
US$1.1 billion, compared with US$2.3 billion of operating profit
for the same period in 2005.  Net income amounted to US$686
million in the third quarter, compared to US$1.085 billion in
2005.

The continuation of the very positive earnings trend at the
Mercedes Car Group, the distinct increase in operating profit at
the Truck Group as well as the Financial Services' operating
profit, which is above the high level of earnings in the prior-
year quarter, only partially compensated for the loss
contributed by the Chrysler Group.

DaimlerChrysler sold 1.0 million vehicles worldwide in the third
quarter, not equaling the high level recorded in Q3 2005.  As a
result of the lower unit sales, the Group's revenues decreased
from US$48.4 billion to US$44.6 billion. Adjusted for currency-
translation effects, the decrease was 5%.

At the end of the third quarter of 2006, DaimlerChrysler
employed a workforce of 365,451 people worldwide (end of Q3
2005: 388,014).  Of this total, 168,965 were employed in Germany
and 95,647 were employed in the United States.

                         Division Results

Mercedes Car Group

The Mercedes Car Group sold 307,500 vehicles worldwide in the
third quarter of this year (Q3 2005: 310,900).  Third quarter
unit sales by Mercedes- Benz increased slightly to 282,800
vehicles (Q3 2005: 282,100), primarily due to the success of the
new models launched in 2005 and 2006.  At smart, due to the
focus on the smart fortwo, unit sales decreased, as expected, to
24,700 vehicles (Q3 2005: 28,800).  Customer orders have been
received for nearly all smart fortwo cars that will be produced
prior to the model changeover next year.  The divisions's
revenues increased by 8% to US$17.1 billion.

The Mercedes Car Group increased its operating profit by 127% to
US$1.257 billion.  This significant increase in earnings is
primarily due to the efficiency improvements achieved in the
context of the CORE program.

Staff reductions at Mercedes-Benz Passenger Cars in the context
of the CORE program led to charges of US$60 million.  Within the
framework of the voluntary headcount reduction program announced
in September 2005, approximately 9,300 employees had signed
severance agreements or had already left the company.  The
expenses originally planned for the restructuring of smart were
adjusted, resulting in a gain of US$51 million.

The integration of smart into the Mercedes-Benz organization is
progressing according to plan and should be completed by the end
of this year.  The resulting efficiency improvements will
provide a foundation for smart's profitability as of the year
2007.

Chrysler Group

In a difficult market environment, the Chrysler Group's third
quarter retail and fleet sales totaled 635,300 vehicles.  Total
factory shipments amounted to 504,400 vehicles (Q3 2005:
663,400).

Third quarter revenues amounted to US$12.1 billion (-23%);
measured in Euros, revenues decreased by 26%.

The Chrysler Group posted an operating loss of US$1.477 billion
in the third quarter of 2006, compared with an operating profit
of US$393 million in the same quarter of last year.

The operating loss was primarily the result of a decrease in
worldwide factory unit sales, an unfavorable shift in product
and market mix, and negative net pricing.  These factors reflect
a continuing difficult market environment in the United States
as the Chrysler Group faced increased dealer inventory levels
from the prior quarter, a shift in consumer demand toward
smaller vehicles due to higher fuel prices, and increased
interest rates.

In order to reduce the high levels of dealer inventories,
Chrysler Group reduced shipments to dealers, which necessitated
corresponding production adjustments.  Total factory shipments
of 504,400 vehicles in the third quarter were 158,900 units
lower than in the third quarter of last year.

During the third quarter, the Chrysler Group launched the
compact SUV Jeep(R) Compass and the Jeep(R) Wrangler Unlimited
(4-door).  The Chrysler Aspen, the first SUV from the Chrysler
brand, was also launched in the third quarter.  By the end of
the year, the Chrysler Group will launch three more all-new
vehicles featuring fuel-efficient engines: the Chrysler Sebring,
the Dodge Nitro and the Jeep(R) Patriot.

In July, the Chrysler Group opened its new flexible assembly
plant and supplier park in Toledo, Ohio, where the all-new
Jeep(R) Wrangler models are produced.  This supplier co-location
project represents the latest example of Chrysler Group's
overall manufacturing strategy, enabling various models to be
built on the same assembly line.

Truck Group

Unit sales by the Truck Group of 141,900 vehicles were 2% above
the level of Q3 2005.  Due to the higher unit sales and a better
model mix, revenues increased by 3% to US$10.2 billion.

The Truck Group posted an operating profit of US$705 million (Q3
2005: US$449 million).  This significant increase in earnings
was due to higher unit sales, a high utilization of capacity
combined with strong productivity, and an improved model mix.
In addition, further efficiency improvements were realized in
the context of the Global Excellence program, which more than
compensated for the higher expenses incurred for new vehicle
projects and the fulfillment of future emission regulations.

Sales by Trucks Europe/Latin America of 37,700 units were
slightly higher than in Q3 2005.  Unit sales of 55,400 vehicles
by Trucks NAFTA under the Freightliner, Western Star and
Sterling brands were 3% higher than in Q3 2005.  Trucks Asia
sold 49,300 units under the Mitsubishi Fuso brand, a 2% increase
compared to the prior-year quarter.

The "Truck Dedication" initiative, which was launched during the
third quarter of this year, aims to focus sales and service
activities even more closely on customers' needs.  The key
elements of the program include more intensive customer
interaction such as additional service stations near logistics
centers and autobahns, as well as service teams with 24-hour
availability.

The Financial Services division continued its positive business
trend in the third quarter, and improved its operating profit to
US$565 million, compared with US$518 million in the third
quarter of last year.  This increase in earnings was assisted by
the higher volume of new business and improved efficiency.
There were opposing effects from increased risk costs, which had
been extremely low in the prior-year quarter.

New business of US$16 billion was 6% higher than in Q3 2005,
while contract volume of US$144.6 billion was at the prior-year
level.  Adjusted for the effects of currency translation, the
portfolio grew by 4%.

Contract volume of US$104.2 billion in the Americas region
(North and South America) was at the same level as a year
earlier; adjusted for exchange-rate effects, there was an
increase of 4%.  Contract volume in the region Europe, Africa
and Asia/Pacific increased by 4% to US$40.5 billion.  In
Germany, DaimlerChrysler Bank increased its contract volume by
5% to US$19.7 billion.

The Van, Bus, Other Segment

The Van, Bus, Other segment posted a third quarter operating
profit of US$400 million (Q3 2005: US$481 million), including
expenses of US$91 million for the implementation of the new
management model, mainly for the voluntary headcount reduction
program in administrative areas.  The sale of real estate
properties not required for operating purposes led to a gain of
US$109 million in the third quarter.

Mercedes-Benz Vans posted unit sales of 58,800 vehicles in the
third quarter, which was lower than the very high prior year
number.  The decrease was a result of the launch of the new
Sprinter and the associated production changeover in the
Dusseldorf and Ludwigsfelde plants.

DaimlerChrysler Buses sold 8,600 buses and chassis of the
Mercedes-Benz, Setra and Orion brands (Q3 2005: 9,200).

The contribution to earnings from the European Aeronautic
Defence and Space Company amounted to US$313 million, which was
slightly below the result of US$325 million in the prior-year
quarter.  This was primarily caused by less favorable currency-
hedging rates.  The delays with the delivery of the Airbus A380
did not affect the profit contribution from EADS to
DaimlerChrysler in the third quarter, as the results of EADS are
consolidated by the DaimlerChrysler Group with a three-month
time lag.

                              Outlook

DaimlerChrysler expects a slight decrease in worldwide demand
for automobiles in the fourth quarter and thus slower market
growth than in Q4 2005.  For full-year 2006, the company
anticipates market growth of around 3%.

In the United States, the world's largest market, demand is
likely to decrease slightly (2005: 16.9 million cars and light
trucks).  The Japanese market is also expected to be smaller
than in 2005 (4.7 million passenger cars), while there should be
a moderate increase in demand in Western Europe (2005: 14.5
million passenger cars).  Car sales are expected to increase
significantly in full-year 2006 in nearly all of the major
emerging markets of Asia, South America and Eastern Europe.  The
strong demand for commercial vehicles, especially in the heavy
categories, should continue for the rest of this year, although
with lower growth rates. In view of the ongoing overcapacity in
the automotive industry, DaimlerChrysler assumes that the
situation of intense competitive pressure will continue.

DaimlerChrysler expects unit sales in 2006 to be lower than in
the previous year (4.8 million units).

The Mercedes Car Group anticipates full-year unit sales at least
as high as in 2005.  The division assumes that unit sales by
Mercedes-Benz will exceed last year's figure as a result of the
market success of the brand's new products.  The Mercedes Car
Group will continue to effectively implement the CORE
efficiency-improving program. The division's positive earnings
trend is expected to continue in the fourth quarter.

Due to intense competition and the shift in demand towards
smaller vehicles, the Chrysler Group assumes that unit sales
(factory shipments) in 2006 will be lower than in the prior
year.  Eight new models, many of which are in the growing
segments of passenger cars and small SUVs, are now being
launched or will be launched this year.  The Chrysler Group will
implement further cuts in production volumes during the fourth
quarter in order to reduce dealer inventories and clear the way
for the current product offensive.  DaimlerChrysler expects the
division to post a loss of approximately US$1.3 billion for
full-year 2006.

The Truck Group expects full-year unit sales at least to reach
2005 sales figures.  Due to positive market developments in the
core markets of Europe, the United States and Japan in
connection with upcoming new emission regulations, the ongoing
strong demand for its products and further improvements in
productivity and efficiency, the Truck Group expects to
significantly exceed the prior year's earnings.

The Financial Services division anticipates a continuation of
its stable business development in the remaining months of the
year 2006, despite the higher level of interest rates and
falling growth in consumption in the United States.  Enhanced
process quality and efficiency will help to further improve the
division's competitive position. Operating profit in full-year
2006 should be higher than in the prior year.

The Vans unit expects lower unit sales than in 2005 due to the
Sprinter model change.  Unit sales of buses are likely to exceed
the high level of the prior year.  In connection with the
revised delivery planning for the Airbus A380, EADS revoked its
original earnings forecast at the beginning of October. EADS has
not issued any new earnings guidance since then.

The DaimlerChrysler Group's revenues in full-year 2006 should be
slightly higher than in 2005 (US$190 billion).

On September 15, DaimlerChrysler reduced the Group's operating-
profit target for 2006 to an amount in the magnitude of US$6.3
billion.  Although the company now has to assume that the profit
contribution from EADS will be US$0.3 billion lower than
originally anticipated because of the delayed delivery of the
Airbus A380, DaimlerChrysler is maintaining this earnings target
due to very positive business developments in the divisions
Mercedes Car Group, Truck Group and Financial Services.

This forecast also includes charges for the implementation of
the new management model (US$0.6 billion), the focus on the
smart for two (US$1.3 billion) and the staff reductions at the
Mercedes Car Group (US$0.5 billion).  There are positive effects
from gains on the disposal of the off-highway business (US$0.3
billion), the sale of real estate no longer required for
operating purposes (US$0.1 billion) and the release of
provisions for retirement-pension obligations (US$0.3 billion).

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

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

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

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and accessories
under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.

                          *     *     *

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

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


DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit
---------------------------------------------------
DaimlerChrysler AG is not planning to sell its Chrysler division
as the U.S.-German carmaker disclosed of an "aggressive" review
of the unit, The Financial Times says.

Bodo Uebber, DaimlerChrysler's Finance Director, said the
company would review all options, including structural changes,
to turn around its U.S. unit.  Mr. Uebber, however, ruled out a
sale or partnership for the Chrysler unit.

"DaimlerChrysler reaffirms its previous statements made to the
media that there are no plans to sell Chrysler Group," the
company said in a statement.  "The company appropriately chose
not to add to the speculation regarding this topic.  However,
the resulting coverage and comments made it clear that this
'not-for-sale' statement needed to be reaffirmed."

In the third quarter of 2006, Chrysler posted an operating loss
of US$1.477 billion, compared with an operating profit of US$393
million in the same period last year.

The operating loss, according to a statement by DaimlerChrysler,
was primarily the result of a decrease in worldwide factory unit
sales, an unfavorable shift in product and market mix, and
negative net pricing.

"These factors reflect a continuing difficult market environment
in the United States as the Chrysler Group faced increased
dealer inventory levels from the prior quarter, a shift in
consumer demand toward smaller vehicles due to higher fuel
prices, and increased interest rates," DaimlerChrysler added.

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

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

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

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DATAWORKS LIMITED: Brings Liquidators from Recovery hjs
-------------------------------------------------------
Gordon Johnston and Shane Biddlecombe of Recovery hjs were
appointed Liquidators of Dataworks Limited (formerly Practical
Software (Marketing) Limited on Oct. 12 for the creditors'
voluntary winding-up procedure.

Headquartered in Innerleithen, Scotland, Dataworks Limited --
http://www.dataworkseurope.com/-- is widely recognized as a
market leader and innovator in both direct and database
marketing.  The company conducts research and provides mailing
lists for financial, charity and mail order companies, covering
electoral roll, shareholders, company directors, lifestyle,
geo-demographic and high net worth individual data.


FORD MOTOR: To Rely on Cheaper Chinese-Made Parts to Cut Costs
--------------------------------------------------------------
Ford Motor Company aims to purchase between US$2.5 billion and
US$3 billion in auto parts from China this year, almost double
the US$1.6 billion to US$1.7 billion it spent on Chinese-made
parts in 2005, Eugene Tang and Stephen Engle at Bloomberg News
reports.

William Ford Jr., Ford's chairman, said the company is buying
more parts from China to further cut costs.  According to
Bloomberg, components procured from China include steering
systems, suspension, brakes, batteries and windshield glass.

In an interview in Beijing, Bloomberg News relates Mr. Ford's
declaration of China as a key component in Ford's global
sourcing strategy.  Mr. Ford said that Ford intends to buy more
Chinese parts as the quality of the country's manufacturing
industry improves.  Mr. Ford was recently in China to recognize
the awardees for the seventh annual Ford Motor Conservation &
Environmental Grants (China).

As reported in the Troubled Company Reporter-Europe on Oct, 24,
Ford posted a third quarter net loss of US$5.8 billion, compared
with a US$284 million net loss in the 2005 third quarter.  Ford
disclosed its performance in the current third quarter reflected
operating challenges in its North America, Asia Pacific and
Africa, and Premier Automotive Group operations.

In September this year, Ford unveiled a revised version of its
"Way Forward" turnaround plan.  The company expects ongoing
annual operating cost reductions of approximately US$5 billion
from its restructuring efforts.  Ford's actions have included
buyout offers for all 75,000 of its U.S. hourly workers, a 30%
reduction in salaried staff, and the suspension of quarterly
dividends.  The revised plan will also cut fourth-quarter
production by 21% -- or 168,000 units -- compared with the
fourth quarter a year ago, and reduce third-quarter production
by approximately 20,000 units.

                        About Ford Motor

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 the Troubled Company Reporter on Oct. 24, 2006,
Standard & Poor's Ratings Services placed its 'B' senior
unsecured debt issue ratings on Ford Motor Co. on CreditWatch
with negative implications.  At the same time, S&P affirmed all
other ratings on Ford, Ford Motor Credit Co., and related
entities, except the rating on Ford Motor Co. Capital Trust II
6.5% cumulative convertible trust preferred securities, which
was lowered to 'CCC-' from 'CCC.'

At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3'
senior unsecured debt on Rating Watch Negative reflecting Ford's
intent to raise secured financing that would impair the position
of unsecured debt holders.  Under Fitch's recovery rating
scenario it was estimated that unsecured holders would recover
approximately 68% in a bankruptcy scenario, equating to a
Recovery Rating of 'RR3' (50-70% recovery).

Moody's Investors Service has disclosed that Ford's very weak
third quarter performance, with automotive operations generating
a pre-tax loss of $1.8 billion and a negative operating cash
flow of $3 billion, was consistent with the expectations which
led to the September 19 downgrade of the company's long-term
rating to B3.


GENERAL MOTORS: S&P Holds Low-B Ratings on Watch Negative
---------------------------------------------------------
Standard & Poor's Ratings Services said 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 on March 29.  The CreditWatch update
follows GM's announcement of third-quarter results.

Third-quarter earnings improved sharply over those of 2005, with
an automotive net loss of US$116 million, before special items
of negative US$54 million, compared to a loss of US$1.6 billion
in last year's third quarter.

"The earnings improvement was driven by expense savings, but did
not translate into greatly improved cash flow," said Standard &
Poor's credit analyst Robert Schulz.  In North America, cost
savings of about US$1.8 billion, most of which were non-cash,
sharply improved GM's third-quarter net loss to US$400 million
from a US$1.7 billion loss in 2005 -- excluding US$7 million of
special items in 2006.

The North American results were boosted by lower pension and
OPEB expenses of US$1 billion and by US$800 million in benefits
from attrition and capacity reductions, partially offset by
unfavorable mix and volume effects of US$400 million.  Higher
raw material and freight costs wiped out positive contributions
from recently introduced new models, while vehicles from the
previous model year faced a more challenging sales environment.

Cash flow from automotive operations is expected to be better
for 2006; for the first nine months, automotive operating cash
flow after cash restructuring costs was a negative
US$5.9 billion versus a negative US$7.8 billion in the first
nine months of 2005.  But in the third quarter of 2006,
cash flow after restructuring expenditures was a negative
US$5 billion versus a negative US$2.5 billion in the third
quarter of 2005.  Looking ahead to the fourth quarter, GM's
vehicle production, a driver of cash flow, is expected to be at
least 13% lower in North America than it was in 2005.

GM's ratings are likely to remain on CreditWatch until S&P is
able to ascertain the financial effect on GM of its exposure to
bankrupt former unit Delphi Corp., and until the sale of a 51%
stake in GMAC LLC (formerly General Motors Acceptance Corp.) to
an investor consortium is at or near completion.

GM narrowed its own estimate of its potential exposure to Delphi
benefits guarantee to US$6 billion to US$7.5 billion and
indicated that payments by GM to reimburse Delphi for certain
labor expenses are not expected to exceed US$400 million in 2007
and would average less than US$100 million thereafter.  These
amounts would appear to be manageable within GM's liquidity
position.


HI JEAN: Hires Stephen L. Conn to Liquidate Assets
--------------------------------------------------
Stephen L. Conn of Begbies Traynor was appointed Liquidator of
Hi Jean Cleaning Services Limited on Oct. 13 for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         Hi Jean Cleaning Services Limited
         12 Forest Gardens
         Partington
         Manchester
         Lancashire M31 4PL
         United Kingdom
         Tel: 0161 775 8885


HOUSE OF EUROPE: Moody's Rates EUR6-Mln Class E2 Notes at (P)Ba2
----------------------------------------------------------------
Moody's Investors Service assigned these provisional ratings to
notes issued by House of Europe Funding V PLC:

   -- EUR200,000,000 Class A1 House of Europe Funding
      V PLC  Delayed Draw Note due 2090: (P)Aaa;

   -- EUR580,000,000 Class A1 House of Europe Funding
      V PLC Floating Rate Notes due 2090: (P)Aaa;

   -- EUR70,000,000 Class A2 House of Europe Funding
      V PLC Floating Rate Notes due 2090: (P)Aaa;

   -- EUR70,000,000 Class A3-a House of Europe Funding
      V PLC Floating Rate Notes due 2090: (P)Aaa;

   -- EUR15,000,000 Class A3-b House of Europe Funding
      V PLC Fixed Rate Notes due 2090: (P)Aaa;

   -- EUR21,000,000 Class B House of Europe Funding
      V PLC Floating Rate Notes due 2090: (P)Aa2;

   -- EUR21,000,000 Class C House of Europe Funding
      V PLC Deferrable Floating Rate Notes due 2090: (P)A2;

   -- EUR9,000,000 Class D House of Europe Funding
      V PLC Deferrable Floating Rate Notes due 2090: (P)Baa2;

   -- EUR4,000,000 Class E1 House of Europe Funding
      V PLC Deferrable Floating Rate Notes due 2090:
      (P)Baa3; and

   -- EUR6,000,000 Class E2 House of Europe Funding
      V PLC Deferrable Floating Rate Notes due 2090: (P)Ba2.

This transaction is managed by Collineo Asset Management GmbH.


INCO LTD: Steelworkers Union Approves New Collective Agreement
--------------------------------------------------------------
Members of the United Steelworkers' Local 7619 at Teck Cominco
Ltd.'s Highland Valley Copper mine have voted to accept a new
multi-year collective agreement with Inco Ltd., which will be in
place until Sept. 30, 2011.

USW Western Canada Director Steve Hunt said that worker
solidarity and tough bargaining by the union led to a contract
that leads the way in the Canadian copper mining industry, while
soundly defeating Teck Cominco's drive for concessions.

"Our members, who are the most productive copper miners in the
world, said no to concessions and stood strongly together to
achieve a solid collective agreement, with major increases to
wages and benefits," said Hunt.  "Steelworkers have negotiated
our fair share and these improvements will benefit our families
and our communities."

Local 7619 President Richard Boyce said the union's negotiating
committee counted on the strength of its membership to ensure
the last-minute agreement.  A strike was averted just minutes
before midnight on Sept. 30, 2006, as the union's nearly 800
members at HVC were poised to shut down operations.  Workers had
voted 99.8 percent in favor of taking strike action if a new
contract was not reached.

Highlights of the five-year collective agreement include across-
the-board wage increases of four per cent in each year, along
with an additional wage category negotiated for trades and
technical workers.  On Oct. 1, 2010 the top wage will be $38.91
per hour.

Retiring employees will receive increased defined pension
benefits of US$60 per month per year of service in the first
year, with subsequent increases.  Those retiring in the fifth
year of the contract will receive $68 per month per year of
service. Increased survivors' benefits will be provided at no
additional cost to workers.

To help achieve higher retirement benefits in the future,
workers will steer their future copper production bonuses -- in
which copper prices have risen by 300 per cent in the last three
years -- into the pension plan to drive further increases in
defined benefits.  If copper prices remain above CDN$1.27, the
copper bonus will add an additional $1.50 to $2 to the pension
base in each year of the deal.

Other key improvements are post-retirement medical benefits,
along with other improvements to benefit members and their
families.

To assist in training and keeping trades apprentices employed at
HVC, the union negotiated wage grade increases in all five years
of the apprenticeship period, along with a series of other
benefits.  In addition there are vacation pay increases to those
with between 18-28 years seniority.

The agreement also includes increased severance pay should any
employee be laid off as a result of the restructuring of
company's operations or in the case of a permanent closure.

The USW represents more than 280,000 men and women working in
every sector of Canada's economy.

                        About Inco Ltd.

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

                          *     *     *

As reported in the TCR-Europe on Oct. 27, Moody's Investors
Service downgraded Companhia Vale do Rio Doce's local currency
issuer rating to Baa3 from Baa1.  At the same time, Moody's
confirmed CVRD's Aaa.br National Scale Rating, its Baa3 foreign
currency rating and the Baa3 foreign currency rating of its
wholly owned subsidiary Vale Overseas
Ltd., guaranteed by CVRD.  The foreign currency rating reflects
Moody's piercing methodology.

Issuer: Inco Limited

    * Corporate Family Rating, Confirmed at Baa3

    * Subordinate Conv./Exch. Bond/Debenture, Confirmed at Ba1

    * Senior Unsecured Conv./Exch. Bond/Debenture, Confirmed
      at Baa3

    * Senior Unsecured Regular Bond/Debenture, Confirmed at Baa3


LANGUAGE LINE: Moody's Affirms Ratings on Improved Performance
--------------------------------------------------------------
Moody's Investors Service affirmed the credit ratings of
Language Line Holdings Inc. and changed the outlook to stable
from negative.  The speculative grade liquidity rating was
upgraded to SGL-2 from SGL-3.

These rating actions reflect improved operating performance and
liquidity.  During the first six months of 2006 billed minutes
increased by 18%, while the average revenue per minute declined
6%.  Revenues grew 12% year over year and profitability
improved.  The SGL-2 rating reflects a good liquidity profile
with the expectation of positive free cash flow from operations,
solid availability under the US$40 million revolver and expanded
headroom under bank financial covenants as a result of a
proposed amendment to its secured credit facility.

The ratings continue to reflect high leverage and a relatively
small revenue base for the rating category, a leading market
position supported by high EBITDA margins, and good growth
prospects for language translation services.

Moody's took the following rating actions with respect to
Language Line Holdings, Inc.:

    * affirmed US$109 million 14.125% senior discount notes
      due 2013, rated Caa1 (LGD 6- 93%)

    * affirmed corporate family rating, rated B2

    * affirmed probability of default rating, rated B2

    * upgraded speculative grade liquidity rating to SGL-2
      from SGL-3

Moody's affirmed these ratings of Language Line, Inc. (a wholly
owned subsidiary of Language Line Holdings, Inc.):

    * US$244 million senior secured term due 2011, Ba3
     (LGD 2- 24%)

    * US$40 million senior secured revolving credit facility
      due 2010, Ba3 (LGD 2- 24%)

    * US$165 million 11.125% senior subordinated notes
      due 2012, B3 (LGD 5-- 74%)

The stable outlook anticipates moderate revenue and
profitability growth over the next 12-18 months.  Consistent
with Language Line's performance in the first half of 2006,
Moody's expects billed minute growth to substantially exceed
declines in average revenue per minute.

The ratings could be upgraded if improving financial performance
results in Debt to EBITDA and free cash flow to debt that can be
sustained at less than 4.5 times and over 8%, respectively.

The ratings could be pressured if pricing trends worsen or new
competitors or technologies emerge resulting in declining
revenues and operating margins.  A significant debt financed
acquisition that weakens credit metrics could also pressure the
rating.  If these conditions result in Debt to EBITDA and free
cash flow to debt that are expected to be sustained at 7 times
and less than 3%, respectively, a downgrade is possible.

Based in Monterey, California, Language Line, through its
operating subsidiaries, is a leading global provider of over-
the-phone interpretation (OPI) services from English into more
than 150 languages.  The company reported revenues of
US$154 million for the twelve-month period ending June 30, 2006.


LEVEL 3: Selling US$600-Million 9.25% Sr. Notes at 100% of Par
--------------------------------------------------------------
Level 3 Communications Inc.'s subsidiary, Level 3 Financing,
Inc., has agreed to sell $600 million aggregate principal amount
of 9.25% Senior Notes due 2014 in a private offering to
"qualified institutional buyers" as defined in Rule 144A under
the Securities Act of 1933 and outside the United States under
Regulation S under the Securities Act of 1933.  The 9.25% Senior
Notes due 2014 were priced to the investors at 100% of par.

The senior notes have not been registered under the Securities
Act of 1933 or any state securities laws and, unless so
registered, may not be offered or sold except pursuant to an
applicable exemption from the registration requirements of the
Securities Act of 1933 and applicable state securities laws.

The debt represented by the senior notes will constitute
purchase money indebtedness under the indentures of Level 3.
The net proceeds will be used solely to fund the cost of
construction, installation, acquisition, lease, development or
improvement of any assets to be used in the company's
communications business, including the cash purchase price of
any past, pending or future acquisitions.  The offering is
expected to be completed on Oct. 30, 2006, subject to customary
closing conditions.

Headquartered in Bloomfield, Colorado, Level 3 Communications,
Inc. (Nasdaq: LVLT) -- http://www.Level3.com/-- an
international communications company, provides Internet
connectivity for millions of broadband subscribers.  The company
provides a comprehensive suite of services over its broadband
fiber optic network including Internet Protocol services,
broadband transport and infrastructure services, colocation
services, voice services and voice over IP services.  In Europe,
the company maintains operations in Belgium, Denmark, France,
Germany, and the United Kingdom, among others.

At June 30, 2006, Level 3's balance sheet showed a stockholders'
deficit of US$33 million, compared to a deficit of US$476
million at Dec. 31, 2005.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 20, 2006,
Dominion Bond Rating Service placed the ratings of Level 3
Communications Inc.'s Senior Unsecured Notes (CCC) and
Subordinated Notes (C) and Level 3 Financing Inc.'s Senior
Secured Credit Facility (B(low)) and Senior Unsecured Notes
(CCC) Under Review with Positive Implications after the
announcement that Level 3 will acquire Broadwing Corporation for
approximately $1.4 billion in cash and stock.

Standard & Poor's Ratings Services affirmed its existing ratings
on Broomfield, Colorado-based Level 3 Communications Inc.,
including the 'CCC+' long-term corporate credit and 'B-3' short-
term credit ratings.  The rating agency also affirmed the 'B-'
bank loan and '1' recovery ratings on the $730 million secured
nonamortizing first-lien credit facility issued by Level 3's
wholly owned subsidiary, Level 3 Financing Inc.  The outlook is
stable.

Fitch views the recent announcement by Level 3 Communications,
Inc. to acquire Broadwing Corporation as a credit positive and
consistent with its current rating rationale.  Fitch most
recently affirmed Level 3's Issuer Default Rating at 'CCC' on
May 3, 2006 with a Positive Rating Outlook.


LEVEL 3: S&P Junks US$600-Mln 9.25% Senior Notes Due 2014
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC-' rating to
the US$600 million of 9.25% senior notes due 2014 issued by
Level 3 Financing Inc., a subsidiary of Broomfield, Colo.-based
Level 3 Communications Inc.

The notes are issued under Rule 144A with registration rights.
Under the indentures of Level 3, the new debt will constitute
purchase money indebtedness and will be used solely to fund the
cost of construction, installation, acquisition, lease, and
development or improvement of telecommunications assets.

All ratings on Level 3, including the 'CCC+' corporate credit
rating, are affirmed.  The outlook is stable.  Debt outstanding
as of Sept. 30, 2006, totaled approximately US$6.6 billion.

"The ratings on Level 3 reflect an aggressive financial policy,
elevated leverage, negative discretionary cash flow, integration
risk resulting from an active acquisition strategy, and concerns
about weakness in the long-distance telecommunications
industry," said Standard & Poor's credit analyst Susan Madison.
Tempering factors include a sizable cash balance, an absence of
significant debt maturities until 2010, and modest benefits from
industry consolidation.

A facilities-based provider of communications services, Level 3
historically provided predominantly long-haul telecom services.
In response to falling prices and declining narrowband demand,
the company, like many of its peers, has shifted its strategic
focus to selling new products such as wholesale voice over
Internet protocol in regional and metropolitan areas.  Level 3's
entry into these new markets has been accelerated through a
series of acquisitions of regional competitive local exchange
carriers, as well as the pending acquisition of Broadwing Corp.,
a long-haul communications provider with a sizable enterprise
business.


MANUMOLD LIMITED: Names Liquidator from Rendell Thompson
--------------------------------------------------------
Robert James Thompson of Rendell Thompson was appointed
Liquidator of manumold Limited on Oct. 12 for the creditors'
voluntary winding-up proceeding.

Headquartered in Aylesbury, United Kingdom, manumold Limited --
http://www.manumold.net/-- manufactures and supplies injection
molding machines and spares.  The company also provides machine
breakdown service and offers a package of scheduled maintenance
according to customer needs.  Its engineers are also able to
service & repair, re-furbish, re-commission, many other makes of
molding machines, ancillaries & robots, including most
hydraulic, mechanical, electrical / electronic & pneumatic work.


MARK HUGHES: Taps Liquidators from Recovery hjs
-----------------------------------------------
Gordon Johnston and Shane Biddlecombe of Recovery hjs were
appointed Joint Liquidators of Mark Hughes Groundwork and Civil
Engineering Limited on Oct. 11 for the creditors' voluntary
winding-up proceeding.

Headquartered in Eastleigh, United Kingdom, Mark Hughes
Groundwork and Civil Engineering Limited --
http://www.markhughesplant.com/-- undertakes civil engineering
works that include: enabling works, bulk excavation and filling;
all types of mass and reinforced foundation construction,
Concrete substructures, basements and floor slabs; installation
of drainage and services, together with deep sewer
installations; and external works comprising of road and car
park construction, concrete slab paving, block paving, tarmac
surfacing and site furniture.


MILLS CORP: Responds to Gazit-Globe Recapitalization Offer
----------------------------------------------------------
The Mills Corporation responded to the press release and
Schedule 13D issued by Israeli corporation Gazit-Globe Ltd. and
its chairman Chaim Katzman.

As has been previously announced by The Mills, the company and
its board of directors -- under the leadership of a special
committee consisting of independent directors -- are in the
midst of exploring the company's strategic alternatives.

The Mills board of directors is seeking to maximize shareholder
value, for the benefit of all shareholders of The Mills, and
accordingly has no predisposition or prejudice whatsoever in the
strategic alternative process.  Whether this result will be an
outright sale of the company, a recapitalization, or some other
transaction will be determined through a competitive process in
which all interested persons have a fair opportunity to compete,
for the benefit of all shareholders of The Mills.  It is
precisely that process which The Mills and its board of
directors are currently conducting.  Gazit-Globe is welcome to
participate in that process and has been so advised by The Mills
on numerous occasions, as is reflected in Gazit-Globe's own
Schedule 13D, through in-person meetings and other contacts.

Gazit-Globe's recapitalization proposal is contingent on the
completion of the Meadowlands Xanadu transaction with Colony
Capital and other matters, including the satisfaction of a
variety of financial tests and measures that The Mills will not
be in a position to confirm or certify until the pending
restatement of its financial statements has been completed.  The
Mills' management and board of directors are focused on
completing the Meadowlands Xanadu transaction, the restatement
of the company's financials, and other steps necessary to allow
The Mills to position itself effectively to enter into a
strategic alternative transaction or transactions.

Gazit-Globe's recapitalization proposal will be considered by
The Mills' board of directors as part of the process of
exploring strategic alternatives and maximizing value for all
Mills shareholders.

                    About The Mills Corporation

Headquartered in Chevy Chase, Maryland, The Mills Corporation
(NYSE:MLS) -- http://www.themills.com/-- develops, owns,
manages retail destinations including regional shopping malls,
market dominant retail and entertainment centers, and
international retail and leisure destinations.  The Company owns
42 properties in the U.S., Canada and Europe, totaling 51
million square feet.  In addition, The Mills has various
projects in development, redevelopment or under construction
around the world.

                         *     *     *

As reported in the Troubled Company Reporter on March 24, 2006,
The Mills Corporation disclosed that the U.S. Securities and
Exchange Commission has commenced a formal investigation.

The SEC initiated an informal inquiry in January after the
Company reported the restatement of its prior period financials.

Mills is restating its financial results from 2000 through 2004
and its unaudited quarterly results for 2005 to correct
accounting errors related primarily to certain investments by a
wholly-owned taxable REIT subsidiary, Mills Enterprises, Inc.,
and changes in the accrual of the compensation expense related
to its Long-Term Incentive Plan.


NORTH SHROPSHIRE: Joint Liquidators Take Over Operations
--------------------------------------------------------
Peter Jones and Roderic M. Withinshaw of Royce Peeling Green
Limited were appointed Joint Liquidators of North Shropshire
Saddlery Limited on Oct. 17 for the creditors' voluntary
winding-up proceeding.

Headquartered in Whitchurch, United Kingdom, North Shropshire
Saddlery Limited retails equestrian goods.


SEVERSTAL OAO: May Drop Bidding Interest in Corus, Source Says
--------------------------------------------------------------
OAO Severstal may not launch a counteroffer for fellow
steelmaker Corus Group Plc, the Financial Times reports citing a
source privy to the company.

The Russian steelmaker, according to the source, believes that
Corus' long-term value is not as high as Tata estimates.  Thus,
the source told The Financial Times, Severstal is "extremely
unlikely" to bid for the Anglo-Dutch company.

"Tata has agreed a full price for Corus and is also happy to
take on other liabilities such as support for the company's
pension funds, and I am not sure that Severstal would think it
was in its shareholders' interests to try to outbid the company
at this stage," a banker was quoted by Financial Times as
saying.

As reported in the TCR-Europe on Oct. 23, Corus accepted Tata
Steel's offer of 455 pence in cash for each Corus share, subject
to shareholder approval.  If approved, the combined company will
create 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.

People privy to the Tata-Corus deal noted that it is "entirely
possible" that other parties will launch a counteroffer for
Corus before the merger becomes final within two-and-a-half
months.

"There is a 50/50 chance of another company declaring itself [as
a possible purchaser]," a banker told the Financial Times.

As reported in the TCR-Europe on Oct 24, Brazilian steelmaker
Companhia Siderurgica Nacional S.A. is planning to counter the
GBP4.3-billion takeover offer of Tata Steel for Corus Group Plc.
CSN has hired investment bank Lazards to advise on a potential
deal.

Steel industry observers also expect Russian steelmaker
Novolipetsk Steel to come forward with an offer.

"Corus is one of the largest steelmakers in Europe," Peter Fish,
Managing Director of U.K. steel consultancy Meps, said.   "So
the other companies will be taking a last look before Tata
concludes the deal."

                       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.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on July 5, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.


SOUTH COAST: Creditors Ratify Voluntary Liquidation
---------------------------------------------------
Creditors of South Coast Wheels Limited ratified Oct. 12 the
resolutions for voluntary liquidation and confirmed the
appointment of Jonathan Lord of Bridgestones as Liquidator.

The company can be reached at:

         South Coast Wheels Limited
         60 Commercial Road
         Southampton
         Hampshire SO151GD
         United Kingdom
         Tel: 023 8063 7972


SOUTHERN WOODWORK: Names Terry Christopher Evans Liquidator
-----------------------------------------------------------
Terry Christopher Evans was appointed Liquidator of Southern
Woodwork Machinery Company Limited on Oct. 16 for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         Southern Woodwork Machinery Company Limited
         Unit 5 Aercon Buildings
         Woodside Road
         Eastleigh
         Hampshire SO504ET
         United Kingdom
         Tel: 0870 050 0535
         Fax: 0870 050 0536


TRADE SKILLS: Brendan Eric Doyle Leads Liquidation Procedure
------------------------------------------------------------
Brendan Eric Doyle was appointed Liquidator of Trade Skills
Centre (Wales) Limited on Oct. 3 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Trade Skills Centre (Wales) Limited
         22 Nant Twyn Harris
         Ystrad Mynach
         Hengoed
         Mid Glamorgan CF827DG
         United Kingdom
         Tel: 01443 813 411
         Fax: 01443 813 769


TRAMEC LIMITED: Creditors Confirm Liquidators' Appointment
----------------------------------------------------------
Creditors of Tramec Limited confirmed Oct. 16 the appointment of
Mark Peter George Roach and Simon Edward Jex Girling of BDO Stoy
Hayward LLP as Joint Liquidators.

The company can be reached at:

         Tramec Limited
         Third Way
         Avonmouth
         Bristol
         Avon BS11 9YL
         United Kingdom
         Tel: 0117 982 2799


VALEANT PHARMA: Delays Filing of Third Quarter 2006 Results
-----------------------------------------------------------
Valeant Pharmaceuticals International disclosed in a regulatory
filing with the Securities and Exchange Commission that the
company will be unable to file quarterly report on form 10-Q for
the quarter ended Sept. 30, 2006, as well as complete the
restatement of previously issued financial statements until the
special committee of independent directors of the company's
board of directors has completed its review of the company's
option grant practices and audit of restated periods.

Bary G. Bailey, Valeant Pharmaceuticals' executive vice
president and chief financial officer, said that the company's
failure to remain current in its periodic reporting obligations
could have material adverse consequences which could include
compliance issues under the information reporting requirements
of the company's outstanding convertible and high-yield notes,
which if not timely cured could result in the acceleration of
the outstanding amounts due under those notes.

                           SEC Inquiry

The company previously received a request from the SEC for data
on its stock option granting practices since Jan. 1, 2000, as
part of an informal inquiry.

Accordingly, the company initiated a review of its option
grants, which covers option grants by the company since its
initial public offering in 1982.

The review is being conducted under the direction of the Special
Committee with the assistance of outside legal counsel.

          Stock Option Grant Review Preliminary Results

On Oct. 20, 2006, after receiving from the Special Committee a
report on certain preliminary results of its review, the Board
of Directors concluded that as a result of errors in the
company's accounting for stock options, financial statements for
certain prior periods will need to be restated.

The Special Committee reported that it has determined, with
respect to broad-based grants in 1997 and subsequent years, the
company should have used different measurement dates for the
purpose of computing compensation expense for those stock option
grants in accordance with Accounting Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees."

According to the company, while the Special Committee has not
yet reached a definitive conclusion as to the causes of these
errors, new accounting measurement dates are being applied to
the affected option grants, and the company expects to recognize
material additional non-cash, stock-based compensation expense
for the affected periods.

Because the Special Committee has not completed its review, the
company has not yet determined the magnitude of the restatement,
but based upon the review, the Board of Directors, upon
recommendation of the Finance and Audit Committee, determined
that the company's annual and interim financial statements,
earnings press releases and similar communications previously
issued by the company for and after 1997 should no longer be
relied upon.

The Company notes that the majority of errors in accounting for
options identified to date by the Special Committee pertains to
options granted prior to the change in the company's Board of
Directors and management in June 2002.

Additional errors were found in accounting for certain options
granted to employees since the board and management change, but
none of the errors related to options granted to the current
chief executive officer or chief financial officer, the company
explained.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/-- is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  In
Europe, the company has commercial offices in Belarus, Czech
Republic, France, Germany, Hungary, Italy, The Netherlands,
Poland, Russia, Slovak Republic, Spain, Turkey, Ukraine, and the
United Kingdom.

                          *     *     *

As reported in the TCR-Europe on Oct. 26, Standard & Poor's
Ratings Services placed its ratings on Costa Mesa, CA.-based
Valeant Pharmaceuticals International, including Valeant's 'BB-'
corporate credit rating, on CreditWatch with negative
implications.

In addition, Moody's Investors Service placed the ratings of
Valeant Pharmaceuticals International (B1 corporate family
rating) under review for possible downgrade.  This rating action
follows the company's announcement that it will restate certain
financial statements as a result of accounting errors related to
accounting for stock options.


WESCO INT'L: Offers US$250-Mln Convertible Senior Debentures
------------------------------------------------------------
WESCO International Inc. intends to raise around US$250 million
through an offering of Convertible Senior Debentures due 2026.
In addition, WESCO International may issue up to an additional
US$50 million of Convertible Debentures upon exercise of an
option to be granted to the initial purchasers.

WESCO Distribution will guarantee the Convertible Debentures of
WESCO International on a senior subordinated basis. Upon
conversion, WESCO International will pay cash and, if required,
shares of WESCO International common stock.

It is expected that the net proceeds from the offering, along
with borrowings under credit facilities, will be used to finance
WESCO Distribution's previously announced acquisition of
Communications Supply Holdings, Inc.  The proposed offering of
Convertible Debentures is not conditional on the completion of
the Communications Supply acquisition.

The offering is being made to qualified institutional buyers
pursuant to Rule 144A under the Securities Act.  None of the
Convertible Debentures (including any shares of common stock
issuable upon conversion thereof) or the guarantee thereof have
been registered under the Securities Act of 1933 or under any
state securities laws and, unless so registered, may not be
offered or sold in the United States or to U.S. persons except
pursuant to an exemption from, or in a transaction not subject
to the registration requirements of the Securities Act and
applicable state securities laws.

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc. (NYSE: WCC) -- http://www.wesco.com/-- is a publicly
traded Fortune 500 holding company, whose primary operating
entity is WESCO Distribution, Inc.  WESCO Distribution is a
distributor of electrical construction products and electrical
and industrial maintenance, repair and operating supplies, and
is the nation's largest provider of integrated supply services.
WESCO operates eight fully automated distribution centers and
approximately 370 full-service branches in North America and
selected international markets including the United Kingdom and
Kazakhstan, providing a local presence for area customers and a
global network to serve multi-location businesses and multi-
national corporations.

                         *    *    *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the wholesale distribution (excluding
healthcare) sector in September 2006, the rating agency
confirmed its Ba3 Corporate Family Rating for Wesco
International Inc.

Additionally, Moody's revised 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$150 million
   2.625% Convertible
   Debentures           B2       B1       LGD4     69%

   US$150 million
   7.50% Subordinated
   Notes                B2       B1       LGD4     69%


WESCO INT'L: Inks Acquisition Deal With Communication Supply
------------------------------------------------------------
WESCO International Inc. has entered into a definitive purchase
agreement to acquire Communications Supply Holdings, Inc. from
Harvest Partners LLC, a New York based private equity firm.  The
transaction is subject to certain customary conditions,
including regulatory approvals required under the Hart-Scott-
Rodino Act.  The acquisition will be financed utilizing WESCO's
existing credit facilities and other indebtedness to be
determined.

Communications Supply Corporation, Inc., the operating
subsidiary of Communications Supply Holdings, Inc. with
headquarters in Carol Stream, Illinois, was founded in 1972. CSC
had 2005 sales of US$431 million and year- to-date sales as of
August 31, 2006 of approximately US$394 million.  Full year 2006
revenues are estimated to be approximately US$600 million.  The
company is a leading national distributor of low voltage network
infrastructure and industrial wire and cable products.  Through
its network of 32 branches, CSC distributes a full range of
products to support advanced connectivity for voice and data
communications, access control, security surveillance, and
building automation.  CSC's sales force consists of over 300
associates, and its marketing activities reflect a strong focus
on the Fortune 1000 and large institutional customers in the
United States.

Mr. Roy W. Haley, WESCO's Chairman and Chief Executive Officer,
stated,"Communications Supply is a very well-run company with an
outstanding track record of above-market growth and
profitability.  The addition of CSC to WESCO's existing business
and infrastructure is consistent with our growth strategy, and
this acquisition positions WESCO as a leading provider of data
communications products in North America.  Our intent is to
rapidly build on this position by offering a broader array of
products to WESCO's substantial national accounts, contractor
and other end market customers.  We also believe that the
fragmented nature of the low voltage and data communications
supply industry will likely lead to additional acquisition
opportunities."

Mr. Steven J. Riordan, CSC's President and Chief Executive
Officer, added, "The combination of these two leading
distributors will create a dynamic enterprise.  CSC has been
recognized for delivering measurable value and outstanding
support to its customers and suppliers.  We believe that our
customers will gain even greater access to products and product
expertise, providing them with one-stop shopping.  We are
looking forward to our role in providing leadership to the
existing WESCO datacom business within the United States."
Mr. Riordan will continue in his role as President of CSC while
also serving as a member of WESCO's senior leadership team.

Mr. Stephen A. Van Oss, WESCO's Senior Vice President and Chief
Financial and Administrative Officer, stated, "We are excited
about the addition of Communications Supply Corporation, as it
significantly extends WESCO's value proposition of providing a
broad array of products and services to our diversified customer
base.  We are also very pleased that the proven and experienced
management team will remain intact and assume expanded
responsibilities for enhancing our sales and service
capabilities.  We will look for ways to apply WESCO's national
distribution capabilities, strategic account relationships, and
LEAN process improvement techniques to CSC's existing business.
We will also be identifying and adopting effective business
practices successfully utilized by CSC.  These activities should
provide significant sales opportunities, and operational and
administrative synergies."

Mr. Van Oss added, "The acquisition of Communications Supply
Corporation is expected to close in early November 2006.  We
expect this acquisition to be immediately accretive, and we
estimate an improvement to WESCO's earnings per share of US$0.04
in 2006 and US$0.35 to US$0.40 in 2007."

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc. (NYSE: WCC) -- http://www.wesco.com/-- is a publicly
traded Fortune 500 holding company, whose primary operating
entity is WESCO Distribution, Inc.  WESCO Distribution is a
distributor of electrical construction products and electrical
and industrial maintenance, repair and operating supplies, and
is the nation's largest provider of integrated supply services.
WESCO operates eight fully automated distribution centers and
approximately 370 full-service branches in North America and
selected international markets including the United Kingdom and
Kazakhstan, providing a local presence for area customers and a
global network to serve multi-location businesses and multi-
national corporations.

                         *    *    *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the wholesale distribution (excluding
healthcare) sector in September 2006, the rating agency
confirmed its Ba3 Corporate Family Rating for Wesco
International Inc.

Additionally, Moody's revised 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$150 million
   2.625% Convertible
   Debentures           B2       B1       LGD4     69%

   US$150 million
   7.50% Subordinated
   Notes                B2       B1       LGD4     69%


WESCO INT'L: Purchase Deal Will Not Affect Ratings, Moody's Says
----------------------------------------------------------------
Moody's commented that the ratings of Wesco International, Inc.
were not affected by the company's announcement that it entered
into a definitive purchase agreement to acquire Communications
Supply Holdings, Inc. from Harvest Partners LLC for
approximately US$525 million.  Wesco plans to finance the
transaction with its existing credit facilities, securitization
program, and the issuance of new convertible senior debentures
(US$250 million).

Moody's said that the purchase is significant but will not
jeopardize Wesco's positive outlook due to several reasons.
First, Moody's still expects adjusted leverage to gravitate
toward 3.0x, adjusted interest coverage to increase towards
5.0x, and retained cash flow to total adjusted debt to reach
approximately 20% in the near term.

Moody's believes that Wesco will continue to produce stable
operating performance based on steady demand trends in the
electrical products market, and that Wesco's consistent free
cash flow generation provides opportunity for debt reduction.
Although Moody's favorably view Wesco's current market
environment, the rating agency still expects some slowing in
these economic indicators within the company's key end markets.
Further, it still believes commodity pricing will retract from
current levels over the intermediate term.

Second, liquidity weakens but remains adequate.  At the
transaction close, there will be approximately US$165 million
outstanding on the US$440 million inventory revolver.  Moody's
believes that the company will continue to maintain solid
availability under the revolver and securitization facilities
for the next 12 months, and that Wesco will not be subject to
any covenants.  If availability were to fall below US$60
million, certain covenants would be triggered, including a fixed
charge coverage ratio.  After the transaction close, the company
will have approximately US$30 million of cash on the balance
sheet.

Third, the current ratings and outlook incorporate the
possibility of acquisitions.  Moody's cautions, however, that a
larger debt-financed acquisition could have negatively impacted
the ratings.  The integration of recent acquisitions still poses
a concern going forward, especially since Wesco's asset coverage
remains weak with a large amount of goodwill and other
intangibles on the balance sheet.  It should also be noted that
the company historically has had very little free cash flow
after funding acquisitions.  Therefore, future acquisitions (to
the extent they occur) must be executed at the right time, and
the right price to avoid releveraging and negative implications
to the company's financial performance.

WESCO International, Inc., headquartered in Pittsburgh, PA, is a
leading North American provider of electrical construction
products and electrical and industrial maintenance, repair and
operating supplies.


WHEEL SHOP: Appoints J. M. Titley to Liquidate Assets
-----------------------------------------------------
J. M. Titley of DTE Leonard Curtis was appointed Liquidator of
Wheel Shop Limited on Oct. 12 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Wheel Shop Limited
         Unit 3 Globe Works
         Hart Street
         Blackburn
         Lancashire BB1 1HW
         United Kingdom
         Tel: 01254 692000
         Fax: 01254 694000

                           *********

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

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