TCREUR_Public/061120.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, November 20, 2006, Vol. 7, No. 230  

                            Headlines


A U S T R I A

BOEHM KG: Claims Registration Ends November 28
CM RADER: Claims Registration Ends November 27
DELITA LLC: Creditors to Recover 8.5% of Claims
ERICH HAIDEN: Creditors' Meeting Slated for December 4
FPET FAIRPRICE: Creditors' Meeting Slated for November 23

GEOLIT RENOVIERUNGSSERVICE: Creditors' Meeting Slated for Dec. 5
HOTEL PINZGAUER: Court Closes Diskothek Piccadilly Branch
LETAL LLC: Creditors' Meeting Slated for December 4
MARTIN WAGNER: Creditors' Meeting Slated for November 28
TOGETHER FOR MORE: Creditors' Meeting Slated for November 23


B E L G I U M

GOODYEAR TIRE: Steelworkers Blast US$1 Billion Sr. Notes Offer
GOODYEAR DUNLOP: Moody's Rates Credit Facilities at Low-B


C R O A T I A

ZAGREBACKA BANKA: Fitch Affirms Individual Rating at C/D


C Z E C H   R E P U B L I C

VALEANT PHARMA: Filing Delay Concerns Spur S&P to Cut Ratings
READER'S DIGEST: Inks US$2.4-Bln Merger Deal with Ripplewood
READER'S DIGEST: Moody's Reviewing Ratings and May Downgrade
READER'S DIGEST: Pending Acquisition Cues S&P's Watch Negative


F R A N C E

CNET NETWORKS: Faces Nasdaq Delisting Due to 10-Q Filing Delay
DIGITAL LIGHTWAVE: Posts US$2 Million Net Loss in Third Quarter
SEQUANA CAPITAL: S&P Cuts Ratings to B on Restructuring Approval
VERSAILLES CLO: S&P Assigns BB Rating to EUR14-Mln Class E Notes

* French Banking System Remains Stable, Moody's Says


G E R M A N Y

ALERIS INTERNATIONAL: Posts US$24.2 Mln Net Loss in Third Qtr.
APPTIS DE: Moody's Puts B1 Rating on US$180-Mln Credit Facility
DATAPOS SICHERHEITSSYSTEME: Claims Registration Ends Nov. 28
DIPL.-ING. LESSMEISTER: Claims Registration Ends November 29
DRUCK & MEDIEN: Claims Registration Ends November 28

FICHTESTRASSE 16: Creditors' Meeting Slated for November 28
HAGA GMBH: Claims Registration Ends November 28
HILLEBRAND GMBH: Claims Registration Ends November 29
KANA SOFTWARE: Sept. 30 Balance Sheet Upside-Down by US$4.5 Mln
KLEMME & PARTNER: Claims Registration Ends November 28

RASANT AUTOMOBILE: Claims Registration Ends November 27
RIECKMANN & BORGWEDEL: Claims Registration Ends November 28
VIDEOTRONIK INTERNATIONAL: Claims Registration Ends November 28
VLB WIRTSCHAFTSBERATUNGS: Claims Registration Ends November 28
VOLKSWAGEN AG: Board Approves Martin Winterkorn as Chairman


I R E L A N D

AVOCA CLO: Fitch Gives Low-B Ratings to EUR33.9-Mln Loans
BCM IRELAND: PIK Note Issuance Cues S&P to Lower Rating to B+
DECO 10: S&P Assigns BB Rating on EUR1.37-Mln Class F Notes
VALENTIA TELECOM: S&P Downgrades Corporate Credit Rating to B+


I T A L Y

IMPREGILO SPA: Earns EUR195.3 Million for First Nine Months 2006
KINETEK INC: S&P Lifts Rating to B Following Acquisition

* Fitch Places City of Taranto's BB+ Rating on Watch Negative


K A Z A KH S T A N

ABZAL CREDIT: Creditors Must File Claims by Dec. 15
AK-BULAK TRADE: Creditors Must File Claims by Dec. 19
ALGABAS-XXI LLP: Proof of Claim Deadline Slated for Dec. 19
ALSER-TUR LLP: Proof of Claim Deadline Slated for Dec. 22
ARMAN LLP: Kostanai Court Begins Bankruptcy Proceedings

BASS XXI: South Kazakhstan Court Starts Bankruptcy Procedure
CHAGLINSKOYE LLP: Claims Filing Period Ends Dec. 15
CONTINENTAL PAVLODAR: Claims Filing Period Ends Dec. 22
DUET-SERVICE LLP: Claims Registration Ends Dec. 15
INTEGRATION KORDAI: Claims Registration Ends Dec. 15

INTERTRANS LLP: Creditors' Claims Due Dec. 20
KARABULAK-K LLP: Akmola Court Opens Bankruptcy Proceedings
KOS-KARAGAI: Akmola Court Commences Bankruptcy Proceedings
REAL INDUSTRIAL: Claims Filing Period Ends Dec. 19
SESTA CJSC: Claims Filing Period Ends Dec. 19


K Y R G Y Z S T A N

BAKAI-ATINSKY FORESTRY: Public Auction Scheduled for Nov. 28
LENINSKY REGIONAL: Public Auction Scheduled for Dec. 12
TALDY-BULAK GOLD: Creditors' Claims Due Dec. 29
TORGKAZ-TRADE LLC: Creditors' Claims Due Dec. 29


L U X E M B O U R G

EVRAZ GROUP: Natexis Syndicates US$525-Million Credit Facilities
EVRAZ GROUP: Russia Unit Hikes Profit for Third Quarter 2006
EVRAZ GROUP: Declares Interim Dividend for First Half 2006


N E T H E R L A N D S

AMSTEL CORPORATE: Moody's Rates EUR100MM Class E Notes at (P)Ba2
CORUS GROUP: Bondholders' Meeting Slated for December 4
KANA SOFTWARE: Sept. 30 Balance Sheet Upside-Down by US$4.5 Mln


P O L A N D

VALEANT PHARMA: Filing Delay Concerns Spur S&P to Cut Ratings


R U S S I A

ACB PETROVKA: Names Agency On Endowment Insurance as Liquidator
AK-DOVURAK-BREAD: Court Names A. Naumov as Insolvency Manager
AMBER LLC: Court Names P. Lozhkin as Insolvency Manager
BOLGARSKAYA GARMENT: Court Starts Bankruptcy Supervision
BRATSKOYE TIMBER: Court Names V. Trofimenko to Manage Assets

CHERNOZEMYE OJSC: Court Names N. Postnikov as Insolvency Manager
DUBYAZSKIY BRICKWORKS: Court Starts Reorganization Process
EVRAZ GROUP: Natexis Syndicates US$525-Million Credit Facilities
EVRAZ GROUP: Russia Unit Hikes Profit for Third Quarter 2006
EVRAZ GROUP: Declares Interim Dividend for First Half 2006

GAZPROM NEFT: S&P Places BB+ Rating on CreditWatch Positive
INTERNATIONAL TRADING: Names M. Vakhrameev to Manage Assets
KALTUKSKIY DIARY: Irkutsk Bankruptcy Hearing Slated for Feb. 19
KHLEBNIKOVSKOYE CJSC: Court Names S. Sergejchuk to Manage Assets
LIQUEUR-VODKA: Tyva Court Starts Bankruptcy Supervision

MINE DOLINSKAYA: Court Starts Bankruptcy Supervision Procedure
MOBILE TELESYSTEMS: Hikes Number of Subscribers to 68.53 Million
NATALI-INVEST: Court Names S. Suvorov as Insolvency Manager
NOVOSIBIRSKIY OJSC: Bankruptcy Hearing Slated for Jan. 29
OB'-OIL-GAS-STROY: Court Names V. Kravchenko to Manage Assets

PETROVSKAYA FURNITURE: Names A. Gritsepanov to Manage Assets
PROGRESS-GARANT: Fitch Revises Outlook to Positive
ROS-RESOURCE: Court Names A. Kozhematov as Insolvency Manager
RUSSIA CJSC: Novosibirsk Bankruptcy Hearing Slated for Feb. 12
RYZDVYANENSKIY COMBINE: Court Starts Bankruptcy Supervision

SEVERSTAL OAO: To Issue RUR2 Dividend for Third Quarter 2006
SIBERIA FURS: Court Names S. Suvorov as Insolvency Manager
TAKUCHET-WOOD: Court Names I. Gorn as Insolvency Manager
TOTEMSKIY LLC: Vologda Bankruptcy Hearing Slated for Feb. 20
TUVA-GRAIN-PRODUCT: Court Names S. Cherkasova to Manage Assets

TRANS-CONTAINER: Court Names E. Eliseeva as Insolvency Manager
VOZROZHDENIYE OJSC: Kurgan Court Starts Bankruptcy Supervision
VORONTSOVSKOYE CJSC: Court Starts Reorganization Process
VITAMIN CJSC: Court Names S. Suvorov as Insolvency Manager
YUKOS OIL: Debt Claims Rise to US$23.6 Billion After Court Order


S L O V E N I A

BANKA CELJE: Fitch Keeps Individual Rating at C

* Moody's Reports Stable Outlook for Slovenian Banks


S P A I N

VALENCIA HIPOTECARIO: Moody's Junks EUR10.4-Mln Series D Notes


T U R K E Y

ALBARAKA TURK: Fitch Keeps Foreign Currency Default Rating at B
GENERAL NUTRITION: Parent Prices US$425 Million Senior Notes
GENERAL NUTRITION: Moody's Junks US$425 Million Note Issue


U K R A I N E

ALERIS INTERNATIONAL: Posts US$24.2 Mln Net Loss in Third Qtr.
ALFA BANK: Moody's Assigns B1 Rating to UAH200-Mln Bond Issue
ASSOCIATION SHAMBALA: Court Names Volodimir Derbin as Liquidator
AQUAVITAS LLC: Court Names Podilskij Tax Agency as Liquidator
BOLDEKO ENGINEERING: Court Names S. Statetskij as Liquidator

INTERPROMEKO LLC: Court Names Viktor Savinov as Liquidator
KONTINENT LLC: Court Names S. Kitsul as Insolvency Manager
MOBILE TELESYSTEMS: Hikes Number of Subscribers to 68.53 Million
POLTAVA-NHS-AUTO: Poltava Court Starts Bankruptcy Supervision
SBS PRODUCTION-COMMERCIAL: Olga Moroz to Liquidate Assets

SOUTH-EAST TRADE-INDUSTRIAL: Sergij Chalapluk to Manage Assets
GENERAL NUTRITION: Parent Prices US$425 Million Senior Notes
GENERAL NUTRITION: Moody's Junks US$425 Million Note Issue


U N I T E D   K I N G D O M

ALERIS INTERNATIONAL: Posts US$24.2 Mln Net Loss in Third Qtr.
BRITISH AIRWAYS: Inks Funding Plan Agreement With NAPS Trustees
COLLINS & AIKMAN: Still Unable to File Fin'l. Reports with SEC
CNET NETWORKS: Faces Nasdaq Delisting Due to 10-Q Filing Delay
COLT TELECOM: Inks Contract to Provide Fidelity's Data Center

DIGITAL LIGHTWAVE: Posts US$2 Million Net Loss in Third Quarter
EUROMONEY INSTITUTIONAL: March 31 Equity Deficit is GBP56.4-Mln
FARRINGDON MORTGAGES: Fitch Puts GBP5.1-Mln BB Rating on RWN
FISHER SCIENTIFIC: Thermo Merger Cues Moody's to Lift Ba2 Rating
FISHER SCIENTIFIC: Thermo Merger Prompts S&P to Lift Ratings

GOODYEAR TIRE: Steelworkers Blast US$1 Billion Sr. Notes Offer
GOODYEAR TIRE: Moody's Rates US$1-Bln Unsecured Notes at B2
HERTZ CORP: S&P Affirms BB Rating After Parent's US$1.3-Bln IPO
KRISPY KREME: Posts US$135.8MM Net Loss in Year Ended Jan. 2006
MONEY PARTNERS: Fitch Puts Final BB Rating to GBP14.75-Mln Notes

NBS TECHNOLOGIES: Inks US$3.6-Million Deal with Brookfield
READER'S DIGEST: Inks US$2.4-Bln Merger Deal with Ripplewood
READER'S DIGEST: Moody's Reviewing Ratings and May Downgrade
READER'S DIGEST: Pending Acquisition Cues S&P's Watch Negative
REFCO INC: Court Sets Protocol on Plan Confirmation Discovery

REFCO INC: GAIN Capital Buys Refco FX's Customer & Mktg. List
SCOTTISH RE: Moody's Reviews Ratings With Direction Uncertain
SEA CONTAINERS: Taps Kirkland as Special Conflicts Counsel
SEA CONTAINERS: Wants to Employ PwC as Investment Banker
SEVERSTAL OAO: To Issue RUR2 Dividend for Third Quarter 2006

* Moody's Mulls Changes to European Utility Rating Methodology

                            *********

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


BOEHM KG: Claims Registration Ends November 28
----------------------------------------------
Creditors owed money by KG Boehm (FN 24799w) have until Nov. 28
to file written proofs of claims to court-appointed property
manager Rene Lindner at:

         Mag. Rene Lindner
         Fadingerstr. 9
         4020 Linz, Austria
         Tel: 78 40 80-34
         Fax: 78 40 80-5
         Email: konkurs@hengstschlaeger-lindner.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Dec. 12 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Linz
         Hall 522
         5th Floor
         Linz, Austria

Headquartered in Saxen, Austria, the Debtor declared bankruptcy
on Oct. 6 (Bankr. Case No. 38 S 46/06b).


CM RADER: Claims Registration Ends November 27
----------------------------------------------
Creditors owed money by LLC CM Rader (FN 181470v) have until
Nov. 27 to file written proofs of claims to court-appointed
property manager Thomas Kurz at:

         Mag. Thomas Kurz
         Roseggerstrasse 58
         4020 Linz, Austria
         Tel: 78 43 31-0
         Fax: 78 43 31-57
         Email: manuela.winkelmayr@haslinger-nagele.com  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Dec. 11 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Linz
         Hall 522
         5th Floor
         Linz, Austria

Headquartered in Herzogsdorf, Austria, the Debtor declared
bankruptcy on Sept. 27 (Bankr. Case No. 12 S 84/06z).


DELITA LLC: Creditors to Recover 8.5% of Claims
-----------------------------------------------
The Trade Court of Vienna approved Oct. 6 the final decision on
allocation of Thomas Deschka, the court-appointed property
manager of LLC DELITA (FN 94530s).

Under the property manager's project by final allocation,
creditors will recover 8.5% of their claims.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on March 17 (Bankr. Case No. 5 S 49/06z).  Robert Klein
represents Dr. Deschka in the bankruptcy proceedings.

The property manager and his representative can be reached at:

         Dr. Thomas Deschka
         c/o Dr. Robert Klein
         Spiegelgasse 10
         1010 Vienna, Austria
         Tel: 513 99 39
         Fax: 513 99 39 30
         E-mail: deschka@lawcenter.at   


ERICH HAIDEN: Creditors' Meeting Slated for December 4
------------------------------------------------------
Creditors owed money by LLC Erich Haiden (FN 126486i) are
encouraged to attend the creditors' meeting at 10:15 a.m. on
Dec. 4 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of Eisenstadt
         Hall F
         Eisenstadt, Austria

Headquartered in Eisenstadt, Austria, the Debtor declared
bankruptcy on Oct. 9 (Bankr. Case No. 26 S 113/06d).  Adalbert
Hausmann serves as the court-appointed property manager of the
bankrupt estate.  

The property manager can be reached at:

         Mag. Adalbert Hausmann
         Esterhazyplatz 6a
         7000 Eisenstadt,, Austria
         Tel: 02682/64044
         Fax: 02682/64044 30
         E-mail: ra.schreiner@aon.at


FPET FAIRPRICE: Creditors' Meeting Slated for November 23
---------------------------------------------------------
Creditors owed money by LLC FPET Fairprice Electronic Trade (FN
258557g) are encouraged to attend the creditors' meeting by
compensation at 3:50 p.m. on Nov. 23.

The creditors' meeting will be held at:

         The Land Court of Graz
         Hall L
         2nd Floor
         Graz, Austria

Headquartered in Fuerstenfeld, Austria, the Debtor declared
bankruptcy on Oct. 9 (Bankr. Case No. 25 Sa 2/06s).  Ulf
Schulze-Bauer serves as the court-appointed compensation manager
of the estate.  

The compensation manager can be reached at:

         Mag. Ulf Schulze-Bauer
         Realschulstrasse 2a
         8280 Fuerstenfeld, Austria
         Tel: 03382/53737-0
         Fax: 03382/53737-37
         E-mail: office@rechtsanwaelte-lsb.at


GEOLIT RENOVIERUNGSSERVICE: Creditors' Meeting Slated for Dec. 5
----------------------------------------------------------------
Creditors owed money by LLC Geolit Renovierungsservice (FN
254032b) are encouraged to attend the creditors' meeting at
11:00 a.m. on Dec. 5 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 13 (Bankr. Case No. 4 S 114/06a).  Andrea Eisner serves
as the court-appointed property manager of the bankrupt estate.  
Josef Ebner represents Mag. Eisner in the bankruptcy
proceedings.

The property manager and his representative can be reached at:

         Mag. Andrea Eisner
         c/o Dr. Josef Ebner
         Mahlerstrasse 7
         1010 Vienna, Austria
         Tel: 512 29 94
         Fax: 512 29 04
         E-mail: rae.ebner.eisner@aon.at


HOTEL PINZGAUER: Court Closes Diskothek Piccadilly Branch
---------------------------------------------------------
The Land Court of Salzburg entered an order Oct. 6 closing the
Diskothek Piccadilly branch of LLC Hotel Pinzgauer (FN 33641y).  
Court-appointed property manager Klaus Weber recommended the
business closure after determining that the continuing
operations would reduce the value of the estate.

The property manager can be reached at:

         Dr. Klaus Weber
         Kirchgasse 12
         5730 Mittersill, Austria
         Tel: 06562-6311-0
         Fax: 06562-516022
         E-mail: ra.klausweber@aon.at  

Headquartered in Zell am See, Austria, the Debtor declared
bankruptcy on May 3 (Bankr. Case No. 44 S 16/06m).


LETAL LLC: Creditors' Meeting Slated for December 4
---------------------------------------------------
Creditors owed money by LLC Letal (FN 218818t) are encouraged to
attend the creditors' meeting at 9:30 a.m. on Dec. 4 to consider
the adoption of the rule by revision and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1705
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 6 (Bankr. Case No. 3 S 135/06g).  Susi Pariasek serves
as the court-appointed property manager of the bankrupt estate.  
Beate Holper represents Dr. Pariasek in the bankruptcy
proceedings.

The property manager and her representative can be reached at:

         Dr. Susi Pariasek
         c/o Mag. Beate Holper
         Gonzagagasse 15
         1010 Vienna, Austria
         Tel: 533 28 55
         Fax: 533 28 55-28
         E-mail: office@anwaltwien.at


MARTIN WAGNER: Creditors' Meeting Slated for November 28
--------------------------------------------------------
Creditors owed money by KEG Martin Wagner (FN 186128v) are
encouraged to attend the creditors' meeting at 9:50 a.m. on
Nov. 28 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of St. Poelten
         Room 216
         2nd Floor
         St. Poelten, Austria

Headquartered in Amstetten, Austria, the Debtor declared
bankruptcy on Oct. 6 (Bankr. Case No. 14 S 159/06g).  Michael
Pfleger serves as the court-appointed property manager of the
bankrupt estate.  

The property manager can be reached at:

         Mag. Michael Pfleger
         Hauptplatz 1
         3300 Amstetten, Austria
         Tel: 07472/61303
         Fax: 07472/61303/50
         E-mail: amstetten@lhup.at


TOGETHER FOR MORE: Creditors' Meeting Slated for November 23
------------------------------------------------------------
Creditors owed money by LLC Together for more (FN 263234i) are
encouraged to attend the creditors' meeting at 10:15 a.m. on
Nov. 23 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1607
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 27 (Bankr. Case No. 28 S 58/06t).  Michael Lesigang
serves as the court-appointed property manager of the bankrupt
estate.  

The property manager can be reached at:

         Mag. Andrea Eisner
         Landstrasser Hauptstrasse 14-16/8
         1030 Vienna, Austria
         Tel: 715 25 26
         Fax: 715 25 26 27
         E-mail: michael@lesigang.at


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


GOODYEAR TIRE: Steelworkers Blast US$1 Billion Sr. Notes Offer
--------------------------------------------------------------
The United Steelworkers blasted Goodyear Tire and Rubber
Company's announcement to place about US$1 billion of three-year
and five-year senior unsecured notes, subject to market and
other customary conditions.  

The company has indicated that it will use about one-half of the
proceeds to repay existing notes due Dec. 1, 2006 and March 1,
2007.  The rest of the money will be used for general purposes,
including funding the strike with the USW.

"Goodyear is already carrying about US$6.4 billion dollars in
debt, and its credit is poor and getting worse," said USW
International president Leo W. Gerard.  "Now they plan to borrow
more money to flush down a rat hole of a fight they can never
win."

"Quite simply, this latest move by the company is the wrong
thing for the wrong reasons at the wrong time," said USW
International vice president Tom Conway. Mr. Conway heads the
USW's bargaining team in its negotiations with Goodyear. "When
you borrow money, you have to pay it back, and to pay it back
Goodyear needs to build tires that people want to buy," said
Conway.  "This company has no such plan in place."

"It is really time for the company's owners to step forward and
stop this madness," said Mr. Gerard. "Bob Keegan is looking
increasingly like Captain Queeg in the The Caine Mutiny."

Queeg is the fictional character in Herman Wouk's 1951 novel,
who was removed from command of a World War II minesweeper
because of eccentric behavior that lead to mistakes that
endangered his crew.

The USW represents more than 17,000 workers at Goodyear
facilities in the U.S. and Canada.  On Oct. 5, about 15,000 USW-
represented workers at 16 locations in North America went out on
strike in an effort to win a fair and equitable contract.

Overall, the USW presents more than 850,000 members in the U.S.
and Canada.  Some 70,000 are employed in the tire, rubber and
plastics industry.

                       About Goodyear Tire

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest   
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  It has marketing operations in almost every country
around the world.  Goodyear employs more than 80,000 people
worldwide.

It has marketing operations in almost every country around the
world.  Goodyear employs more than 80,000 people worldwide.  It
has marketing operations in almost every country around the
world, including Indonesia, Australia, China, India, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, and
Thailand.  The company's European headquarters is based in
Brussels, Belgium.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 27,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for The Goodyear Tire & Rubber Company in connection with
the rating agency's implementation of its new Probability-of-
Default and Loss-Given-Default rating methodology for the U.S.
Automotive and Equipment sectors.

As reported in the TCR-Europe on Oct. 26, Standard & Poor's
Ratings Services placed its 'B+' corporate credit rating on
Goodyear Tire & Rubber Co. on CreditWatch with negative
implications because of the potential for business disruptions
and earnings pressures that could result from the ongoing labor
dispute at some of its North American operations.  Goodyear has
total debt of about US$7 billion.

In a TCR-Europe report on Oct. 20, Fitch Ratings placed The
Goodyear Tire & Rubber Company on Rating Watch Negative.  
Goodyear's current debt and recovery ratings are -- Issuer
Default Rating (IDR) 'B'; US$1.5 billion first lien credit
facility 'BB/RR1'; US$1.2 billion second lien term loan
'BB/RR1'; US$300 million third lien term loan 'B/RR4'; US$650
million third lien senior secured notes 'B/RR4'; Senior
Unsecured Debt 'CCC+/RR6'.


GOODYEAR DUNLOP: Moody's Rates Credit Facilities at Low-B
---------------------------------------------------------
Moody's Investors Service assigned a B2, LGD4, 63% rating to
Goodyear Tire & Rubber Co.'s new US$1 billion offering of
unsecured notes.  

At the same time, the rating agency affirmed Goodyear's
Corporate Family Rating of B1 and negative outlook and revised
its Speculative Grade Liquidity rating to SGL-2.  All other
long-term ratings are unchanged.

The new unsecured notes will consist of a US$0.5 billion
floating rate issue with a three-year maturity, and a
US$0.5 billion fixed rate issue with a five-year maturity.  
Both issues will benefit from upstreamed guarantees from
Goodyear's material North American subsidiaries.  Goodyear will
use US$515 million of the proceeds to repay maturing obligations
in December (US$215 million) and March 2007 (US$300 million)
with the balance retained for general corporate purposes.  The
new financing will strengthen Goodyear's liquidity profile as it
works to resolve the strike affecting its U.S. production
capacity.

Goodyear's Corporate Family rating of B1 recognizes strong
scores for several factors in Moody's Automotive Supplier
Methodology.  These factors include:

   -- the company's substantial scale,
   -- global brands,
   -- leading market share,
   -- diversified geographic markets, and
   -- improved debt maturity and liquidity profiles.

Scores for those qualitative attributes would normally track to
a higher Corporate Family rating.  However, the B1 rating
considers Goodyear's relatively weak quantitative scores
including leverage, which has stepped-up further from recent
borrowings, low EBIT returns and weak FCF/debt ratios.
Contributions to pension plans will remain substantial for
another year before declining in 2008.  Scores from those
quantitative factors counter qualitative strengths.  The company
faces challenges in restoring its balance sheet, resolving its
U.S. organized labor contract and contending with various
contingent liabilities.  Nonetheless, debt levels have likely
peaked and leverage measurements could quickly retreat should a
satisfactory accord be reached with its North American union
with incremental debt retired in short order.

The negative outlook anticipates that the strike will be settled
within several months, but recognizes stepped-up leverage from
recent financing, and weak demand in North American replacement
tire markets.  Several pro forma metrics already suggest lower
rating categories.  However, leverage measurements could decline
if the strike was resolved quickly, recent incremental debt was
unwound, and lower underfunded pension liabilities anticipated
at year-end were recognized.  

In addition, the company is positioned with strong liquidity and
faces minimal debt maturities until 2009.  On balance, Moody's
believes the risks are weighted to the downside by these short-
term issues until the company's North American cost structure is
resolved. Developments on these concerns could either evolve
rapidly or emerge over several months depending upon the outcome
of its labor negotiations.

Ongoing challenges also include:

   -- maintaining and bolstering profitability in the face
      of elevated and volatile raw material prices,

   -- generating adequate cash flow from its operations, and

   -- strengthening its capital structure.

Recent replacement tire demand has been less than robust which
could intensify competition and pricing.  Growth in replacement
tire demand should also resume over the intermediate period.

Goodyear Tire & Rubber Co.

Ratings assigned:

    * US$500 million senior unsecured guaranteed notes
      due 2009, B2 LGD-4, 63%

    * US$500 million senior unsecured guaranteed notes
      due 2011, B2 LGD-4, 63%

Ratings affirmed:

    * Corporate Family Rating, B1
    * Outlook, Negative
    * Probability of Default, B1
    * first lien credit facility, Ba1, LGD2, 10%
    * second lien term loan, Ba3, LGD3, 35%
    * third lien secured term loan, B2, LGD4, 63%
    * 11% senior secured notes, B2, LGD4, 63%
    * floating rate senior secured notes, B2, LGD4, 63%
    * 9% senior notes, B2, LGD4, 63%
    * 6-5/8% senior notes, B3, LGD6, 94%
    * 8-1/2% senior notes, B3, LGD6, 94%
    * 6-3/8% senior notes, B3, LGD6, 94%
    * 7-6/7% senior notes, B3, LGD6, 94%
    * 7% senior notes, B3, LGD 6, 94%
    * senior unsecured convertible notes, B3, LGD6, 94%

Goodyear Dunlop Tyres Europe

    * Euro revolving credit facilities, Ba1, LGD2, 10%
    * Euro secured term loan, Ba1, LGD2, 10%

Ratings changed:

    * Speculative Grade Liquidity rating to SGL-2 from SGL-3

The last rating action was on Oct. 16 at which time the outlook
was changed to negative and the liquidity rating was lowered to
SGL-3.

The B2, LGD4, 63% rating assigned to the new notes recognizes
their junior position relative to the company's first, second
and third lien credit facilities as well as the benefits of
upstreamed guarantees from material North American subsidiaries,
an enhancement that is not in place on certain other unsecured
notes.

The SGL-2 liquidity rating, representing good liquidity over the
next 12 months, emphasizes substantial balance sheet cash
sourced through the recent revolving credit borrowings and note
issuance.  However, external liquidity is very limited as the
company's domestic revolving credit is nearly fully utilized.
The company should have adequate room under its financial
covenants, but the cushion could diminish should North American
results be adversely affected by the strike.  While substantial
assets have been pledged, the company does have flexibility on
the use of proceeds from prospective asset sales.

Goodyear Tire & Rubber Co., based in Akron, OH, is one of the
world's largest tire companies with more than 100 facilities in
29 countries around the world.  Products include tires,
engineered rubber products, and chemicals.  Revenues in 2005
were approximately US$20 billion.


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


ZAGREBACKA BANKA: Fitch Affirms Individual Rating at C/D
--------------------------------------------------------
Fitch Ratings affirmed Croatia-based Zagrebacka Banka's ratings
at Issuer Default BBB+, Short-term F2, Support 2, and Individual
C/D.  The Outlook is Stable.

The IDR, Short-term and Support ratings for ZB are based on
potential support from its majority shareholder UniCredito
Italiano and are constrained by the Country Ceiling for Croatia.  

ZB's Individual rating reflects its dominant market share, sound
profitability, satisfactory liquidity and operational benefits
as part of the UCI group.  The rating also reflects the bank's
relatively high, but declining, impaired loans and the risk
inherent in its foreign business.

ZB's performance is sound and driven by a wide net interest
margin, although spreads are increasingly being squeezed by
competition and more stringent regulatory requirements.  Asset
quality has improved; at end-June 2006 impaired loans-to-gross
loans fell to 4.1% (2005: 4.5%) and reserve coverage remained
sound at 119%.

However, risks arising from ZB's subsidiary in Bosnia and
Herzegovina are a concern, although they are still relatively
small.  The bank's capital base is satisfactory, and compares
well with those of its peers.

ZB is the largest bank in Croatia, controlling around 25% of
system assets.  UCI and Allianz, the German insurer, currently
control 81.91% and 13.67%, respectively of ZB's total voting
share capital.  However, in August 2006 UCI announced that it
would transfer its Central and Eastern European banking
shareholdings to Bank Austria Creditanstalt.

The transaction, which is expected to be completed in January
2007, will result in 81.91% of ZB being owned by BACA.  BACA is
currently majority-owned by Germany's Bayerische Hypo- und
Vereinsbank.  However, following the expected corporate
transactions within the UCI group, BACA will become a 96% direct
subsidiary of UCI in 2007.


===========================
C Z E C H   R E P U B L I C
===========================


VALEANT PHARMA: Filing Delay Concerns Spur S&P to Cut Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Costa
Mesa, Calif.-based Valeant Pharmaceuticals International.  The
corporate credit rating was lowered to 'B+' from 'BB-'.  

The ratings remain on CreditWatch with negative implications,
where they were placed Oct. 24 to reflect the ongoing
uncertainty regarding the company's inability to file its Form
10-Q for the third quarter and the consequences if the company
is not able to resolve the situation in 60 days.

"The ratings downgrade reflects our concern regarding specialty
pharmaceutical company Valeant's continued struggles to generate
earnings and cash flow growth," explained Standard & Poor's
credit analyst Arthur Wong.

Sales growth of the company's core product portfolio has been
tepid.  Valeant is highly reliant on product acquisitions for
growth.  Compelling product acquisition opportunities, however,
are few, and those that do exist are expensive for the company.
Valeant also faces increasing R&D funding needs and, with the
major setback in the development of its lead product prospect
(viramidine), no new product launches are expected soon from the
company's internal pipeline.

The third-quarter 10-Q filing delay was attributed to Valeant's
need to restate its financials, possibly as far back as 1997,
due to errors in accounting for stock option grants.  This
failure to file on time constitutes a default of reporting
requirements under the company's convertible and high-yield note
agreements, which, if not cured within 60 days, could result in
an acceleration of the amounts outstanding under those notes.
Standard & Poor's will monitor the cost and ability of Valeant
to cope with this situation before resolving the CreditWatch
listing.


READER'S DIGEST: Inks US$2.4-Bln Merger Deal with Ripplewood
------------------------------------------------------------
An investor group led by Ripplewood Holdings LLC has entered
into a definitive merger agreement to acquire The Reader's
Digest Association, Inc. in a transaction with an aggregate
value of US$2.4 billion.  

The investor group also includes:

   -- the J. Rothschild Group,

   -- GoldenTree Asset Management,

   -- GSO Capital Partners, Merrill Lynch Capital Corp.,
      and    

   -- Magnetar Capital.

Under the terms of the merger agreement, Reader's Digest's
shareholders will receive US$17 per share in cash for each
common share of Reader's Digest they hold, representing a
premium of approximately 23% over Reader's Digest's average
closing share price during the 45 trading days ended
Nov. 15, 2006.  The Board of Directors of Reader's Digest has
approved the merger agreement and recommended that Reader's
Digest's stockholders adopt the agreement.

Reader's Digest is a publisher and direct marketing company that
creates and delivers products and content for magazines, books,
recorded music collections, home videos and online websites.  
Its flagship magazine, Reader's Digest magazine, is published in
50 editions and 21 languages with a monthly circulation of
approximately 18 million and a global readership of
approximately 80 million.  The company reaches millions of
consumers through more than 20 other magazines and online
portals, including Every Day with Rachael Ray, Allrecipes.com,
and Taste of Home, America's best-selling food and cooking
magazine.  Reader's Digest's products are organized around four
key affinities: food, home and garden, health, and English as a
second language.  For the fiscal year ending June 30, 2006, the
company generated revenue of approximately US$2.4 billion.

Ripplewood Holdings has considerable investment expertise in the
publishing and direct marketing industries.  Portfolio
investments include Direct Holdings Worldwide, a leading global
direct marketer of entertainment products under the Time Life
brand, and WRC Media, a leading publisher of supplementary
educational materials for the school, library, and home markets.
WRC's stable of distinguished brands includes Weekly Reader,
World Almanac, and CompassLearning.

Timothy C. Collins, CEO of Ripplewood Holdings, remarked, "We
are very excited to reach this agreement to acquire Reader's
Digest, a truly wonderful company with a broad array of global
assets and growth businesses that are extending a rich heritage.
Together with our portfolio companies, Direct Holdings and WRC
Media, Reader's Digest will enjoy the benefits of a diversified,
multi-channel publishing platform."

Robert L. Berner III, Managing Director at Ripplewood Holdings,
added, "We look forward to working with the Reader's Digest team
to further develop and strengthen the company's robust
collection of assets, including brands, content, affinity
groups, and distribution channels."

Eric Schrier, CEO of Reader's Digest, remarked, "This
partnership represents a great opportunity for RDA and its
shareholders and employees.  I look forward to working with
Ripplewood in continuing to drive the growth of this great
company."

Affiliates of JPMorgan, Citigroup, Merrill Lynch and Royal Bank
of Scotland provided the buyer with committed debt financing,
which is subject to customary conditions.  Morgan Stanley,
JPMorgan, Citigroup, and Merrill Lynch served as financial
advisors to the investor group.  Cravath, Swaine & Moore LLP
served as legal advisor to Ripplewood Holdings.

The transaction is subject to the approval of the holders of a
majority of the outstanding shares of Reader's Digest common
stock and receipt of financing by the investor group, as well as
other customary closing conditions, including antitrust
clearance.  The transaction is expected to close in the first
quarter of calendar 2007.

                   About Ripplewood Holdings LLC

Based in New York, Ripplewood Holdings LLC is a private equity
firm established in 1995 by Timothy C. Collins.  Through five
institutional private equity funds managed by Ripplewood, the
firm has invested over US$3 billion in transactions in the U.S.,
Asia, Europe, and the Middle East.

                       About Reader's Digest

Headquartered in Pleasantville, New York, The Reader's Digest
Association Inc. (NYSE: RDA) -- http://www.rda.com/-- is a  
global publisher and direct marketer of products including
magazines, books, recorded music collections, and home videos.  
Products include Readers Digest magazine, which is published in
50 editions and 21 languages.  In the United Kingdom, the
company publishes Moneywise, a leading consumer investment /
personal finance magazine.  The company also publishes Receptar,
a lifestyle magazine in the Czech Republic, and a local edition
of The Family Handyman in Australia.

The company reported net losses for the 2007 first fiscal
quarter ended Sept. 30, 2006, were US$26.7 million compared with
US$8.2 million net loss in the comparable quarter of 2006.

At Sept. 30, 2006, Reader's Digest's balance sheet showed
US$2.249 billion in total assets, US$2.111 billion in total
liabilities, and US$138 million in total stockholders' equity.
At June 30, 2006, the Company had US$175 million in total
equity.

The Company's September 30 balance sheet showed strained
liquidity with US$824.1 million in total current assets
available to pay US$899 million in total current liabilities.


READER'S DIGEST: Moody's Reviewing Ratings and May Downgrade
------------------------------------------------------------
Moody's Investors Service is expanding the scope of its review
for downgrade of The Reader's Digest Association, Inc.'s
following the company's announcement that Ripplewood Holdings
LLC will take the company private for approximately US$2.4
billion.  

Moody's originally placed Reader's Digest's Ba1 Corporate Family
Rating and Ba2 senior unsecured note rating on review for
downgrade on Sept. 6.

Ratings remaining on review for possible downgrade:

Issuer: Reader's Digest Association, Inc. (The)

    * Corporate Family Rating, currently Ba1

    * Probability of Default Rating, currently Ba1

    * Senior Unsecured Regular Bond/Debenture,
      currently Ba2, LGD5, 82%

Moody's will evaluate Ripplewood's proposed financing structure
including the amount of any equity contribution, strategies to
grow revenues and enhance operating margins, and plans for asset
sales, but believe the cash purchase price will likely result in
a significant increase in leverage and a multi-notch downgrade
of the CFR.  Reader's Digest's existing US$300 million notes
indenture has a change of control provision that allows
bondholders to put the notes back to the company at 101% of par.
Moody's expects the notes and the existing US$500 million credit
agreement (not rated by Moody's) will be retired if the
acquisition closes at which point the rating on the notes would
be withdrawn.

As part of the review, Moody's will continue to evaluate the
company's plans to stabilize and reverse the significant
operating performance decline in the consumer business segments,
and improve working capital management in support of new product
introductions and the international expansion strategy.  Moody's
believes negative pressure remains on the rating if a leveraged
acquisition of the company does not close.

The Reader's Digest Association, Inc., headquartered in
Pleasantville, New York, is a global publisher and direct
marketer of products including magazines, books, recorded music
collections and home videos.  Products include Readers Digest
magazine, which is published in 50 editions and 21 languages.
Annual revenues approximate US$2.4 billion.


READER'S DIGEST: Pending Acquisition Cues S&P's Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Reader's Digest Association Inc. (BB/Watch Neg/--) remain on
CreditWatch with negative implications, where they were placed
on Aug. 15.  

The company has entered into a definitive agreement to be
acquired by an investor group led by Ripplewood Holdings LLC for
US$2.4 billion, including the assumption of debt.

"The transaction is expected to significantly increase debt
leverage, which is likely to result in a ratings downgrade,"
said Standard & Poor's credit analyst Hal F. Diamond.
     
Pleasantville, N.Y.-based Reader's Digest is a leading direct
marketer of books. Total debt outstanding at Sept. 30, 2006, was
US$776 million.


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


CNET NETWORKS: Faces Nasdaq Delisting Due to 10-Q Filing Delay
--------------------------------------------------------------
CNET Networks Inc. received a Nasdaq Staff Determination notice
on Nov. 13, 2006 stating that the company was not in compliance
with Nasdaq Marketplace Rule 4310(c)(14).  

The letter, which was expected, was issued in accordance with
Nasdaq procedures due to the company's failure to timely file
its Form 10-Q with the U.S. Securities and Exchange Commission
for its fiscal quarter ended Sept. 30, 2006.

In response to a similar letter the company received in August
2006 following the company's failure to file its Form 10-Q for
the quarter ended June 30, 2006, the company requested and was
granted a hearing on September 26, 2006 with the Nasdaq Listing
Qualifications Panel.  The Nov. 13, 2006 Nasdaq notice states
that the September 30, 2006 10-Q filing delinquency will serve
as an additional basis for delisting the company's securities on
the Nasdaq Global Market and that the Nasdaq Listing
Qualifications Panel will consider this matter in rendering a
determination regarding the company's continued listing on the
Nasdaq Global Market.  Pending a decision by the hearing panel,
CNET Networks' common stock will continue to be listed on the
Nasdaq Global Market.  There can be no assurance that the
hearing panel will grant the company's request for continued
listing.

The company previously announced that a Special Committee
of the company's Board of Directors completed an independent
review of CNET Networks' past stock option practices and related
accounting.  Management expects that CNET Networks will restate
its historical financial statements to record non-cash charges
for compensation expense relating to past stock option grants.  
The company is in the process of preparing its restated
financial statements which the company expects to file with the
Securities and Exchange Commission along with its delinquent
Form 10-Qs as soon as practicable.

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

                        *     *     *

As reported in the TCR-Europe on Oct. 24, Standard & Poor's
Ratings Services lowered its ratings on CNET Networks Inc.,
including lowering the corporate credit rating to 'CCC+' from
'B', and placed the ratings on CreditWatch with developing
implications.

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

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


DIGITAL LIGHTWAVE: Posts US$2 Million Net Loss in Third Quarter
---------------------------------------------------------------
Digital Lightwave Inc. filed its third quarter financial
statements for the three months ended Sept. 30, 2006, with the
U.S. Securities and Exchange Commission on Nov. 7, 2006.

For the three months ended Sept. 30, 2006, the Company incurred
a US$2,095,000 net loss on US$2,587,000 of net revenues compared
to a US$2,083,000 net loss on US$4,898,000 of net revenues from
the same period in 2005.

At Sept. 30, 2006, the Company's balance sheet showed US$7.3
million in total assets and US$67.8 million in total
liabilities, resulting in a US$60.5 million stockholders'
deficit.  

The Company's Sept. 30 balance sheet also showed strained
liquidity with US$7 million in total current assets available to
pay US$67.5 million in total current liabilities.

As of Sept. 30, 2006, the Company's unrestricted cash and cash
equivalents totaled approximately US$50,000, a decrease of
approximately US$621,000 from Dec. 31, 2005.  As of Sept. 30,
2006, the Company's working capital deficit was US$60.5 million
as compared to a working capital deficit of US$48.8 million at
Dec. 31, 2005.  The Company had an accumulated deficit of
approximately US$148.1 million at Sept. 30, 2006.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1535

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


SEQUANA CAPITAL: S&P Cuts Ratings to B on Restructuring Approval
----------------------------------------------------------------  
Standard & Poor's Ratings Services removed from CreditWatch and
lowered its short-term corporate credit and CP ratings on
France-based Sequana Capital to 'B' from 'A-2', following
shareholder approval for the company's restructuring plan to
refocus on the paper sector.

The ratings were originally placed on CreditWatch on Sept. 7,
when it was first announced that Sequana would transfer a 23.8%
stake in Switzerland-based Societe Generale de Surveillance
S.A., which represents about 50% of Sequana's portfolio, to its
shareholders.  Sequana is expected to complete the public offer
to buy back its shares, in exchange for shares in SGS or cash,
by Dec. 18.  Following shareholder approval on Oct. 30, Standard
& Poor's anticipates that the offer will be widely accepted.

This move will impair Sequana's creditworthiness.  Following the
transaction, the company's portfolio will consist of its 100%
ownership stakes in the specialty paper producer Arjowiggins and
the paper distribution company Antalis, which operate in the
very challenging paper industry.

"Given Sequana's refocusing of its activities on a single
sector, Standard & Poor's now considers the company as an
investment holding company," said Standard & Poor's credit
analyst Andreas Zsiga.  "As such, Sequana will not benefit from
the financial flexibility offered by listed holdings, and the
rating will be construed from the creditworthiness of its two
remaining holdings."


VERSAILLES CLO: S&P Assigns BB Rating to EUR14-Mln Class E Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR304.45 million floating-rate notes to
be issued by Versailles CLO M.E. I PLC, a special purpose
entity.  At the same time, it will issue EUR32.25 million of
unrated subordinated notes.
  
This transaction will securitize a portfolio of leveraged loans
selected and managed by CLO Management Europe.  The portfolio is
expected to be 70% ramped up at closing.  CLOME will be
responsible for acquiring the target par amount within 180 days
of the closing date.
  
Up to 10% of the collateral may consist of mezzanine loans
and/or second-lien loans, which are typically contractually
subordinated with a subordinated equity piece.  The borrowers of
the loans are based mainly in Europe.
  
The transaction allows the manager to acquire non-euro-
denominated assets, but any currency risk must be hedged through
asset-specific swaps.
  
                         Ratings List
                   Versailles CLO M.E. I PLC
           EUR304.45 Million Floating-Rate Notes and
              EUR32.25 Million Subordinated Notes
  
                            Prelim.        Prelim.
             Class          rating         amount (Mil. EUR)
             -----          ------         ------
             S              AAA            6.7
             A-1-D          AAA            89.
             A-1-T          AAA            109.05
             A-2            AAA            33
             B              AA             22.5
             C              A              18
             D              BBB            12.2
             E              BB             14
             Subordinated   NR             32.25


* French Banking System Remains Stable, Moody's Says
----------------------------------------------------
The outlook for the French banking system remains stable,
although French banks are probably close to reaching a peak in
terms of financial performance, says Moody's Investors Service
in its latest Banking System Outlook for France, released
{Thurs]day.

"There are still no signs of any weakening in the financial
performance of French banks, with figures for 2005 and the first
half of 2006 showing historically high levels, and they are in
better shape than ever to face a possible downcycle," says
Stephane Le Priol, Moody's VP -- Senior Analyst, and the author
of the report.

"Results are expected to be strong again for full-year 2006, but
the cost of credit risk is unlikely to remain at the present
extremely low levels and 2007 looks like being a slightly more
difficult year," says Mr Le Priol.  "In addition, rising
interest rates may start to have an impact on the large
fixed-income portfolios of the banks."

More generally, the sheer size of the financial markets
activities of French banks does raise some questions about the
sustainability of present levels of profitability.  
Nevertheless, Moody's has confidence in the largest banks' risk
management capacities and maintains a stable outlook for the
French banking sector overall.

Moody's notes that the French banking market is concentrated,
dominated by six domestic groups and one foreign player, and
significant further consolidation in the sector is unlikely. Of
the six large domestic groups, four are cooperatives, which
together control 50-60% of the banking market.

"French cooperatives have all but reinvented themselves in
recent years," says Mr Le Priol.  "They all own non-cooperative
banks, they all have -- or are about to have -- one listed
vehicle and they have all adopted a profit-oriented profile,
with good results.  The French cooperative groups have also
generally developed cohesive structures, more so than their
German counterparts for instance."

Moody's observes that all the French banks, whether with a
cooperative or common law status, have now rolled out a
universal banking business model. On top of improving their
diversification, this has given them additional clout in various
financial arenas.  "The adoption of universal business models
has also enabled French banks to surf the disintermediation wave
rather than become a victim of it," says Mr Le Priol.  "Although
the total amount of bank deposits has decreased in France, as
elsewhere in Europe, French banks have remained unparalleled
asset gatherers in their home market.  They have also built
leadership positions in the life insurance and asset management
markets."

The top three French banks have also significantly expanded
their operations abroad, accelerating the pace of foreign
acquisitions.  This expansion has created new growth
opportunities for French banks and has generally been well
managed, both financially and operationally.  Societe Generale
and BNP Paribas now make about half of their net banking income
outside France.  Credit Agricole trails its competitors in this
regard but is catching up at a rapid pace.

"Although the major French banks' international development
shows similarities -- for instance in the establishment of
strong specialized financial services franchises across Europe -
- there are significant differences from one bank to the next.
Societe Generale, for instance, has favored numerous but small
acquisitions in emerging markets, while BNP Paribas has focused
its efforts on a smaller number of developed markets, namely
Italy and the U.S.," says Mr Le Priol.

The past year has also seen the creation of a potentially major
new bank, La Banque Postale, the former financial division of
the French Post Office which has now become a common law bank,
and the announcement of an alliance between two of the
cooperative groups, Caisse d'Epargne Group and Banque Populaire
Group, through a joint venture in corporate and investment
banking.  These two events, despite their scale, have yet to
show their full potential but Moody's believes that they could
eventually have a major impact on the French banking landscape.


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


ALERIS INTERNATIONAL: Posts US$24.2 Mln Net Loss in Third Qtr.
--------------------------------------------------------------
Aleris International Inc. reported a US$24.2 million net loss on
US$1.4 billion of revenues for the third quarter ended Sept. 30,
2006, compared with a US$31.5 million of net income earned on
US$554.9 million of revenues for the same period in 2005.

Consolidated revenues for the three months ended Sept. 30, 2006
increased US$840.1 million as compared to the three months ended
Sept. 30, 2005.  The acquired operations of Corus Aluminum,
ALSCO, Tomra Latasa, Alumitech and the acquired assets of Ormet
accounted for an estimated US$578.5 million of this increase.  
The impact of rising primary aluminum prices and higher shipment
levels were partially offset, however, by slightly lower rolling
margins.

At Sept. 30, 2006, the company's balance sheet showed US$3.3
billion in total assets, US$2.8 billion in total liabilities,
and US$452.8 million in total stockholders' equity.

Full-text copies of the company's third quarter financial
statements are available for free at:

                  http://researcharchives.com/t/s?14f3
                                  
Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures    
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.  

On Aug. 1, 2006, the company acquired the aluminum business of
Corus Group plc for a cash purchase price of approximately
US$885.7 million.  The acquisition included Corus Group plc's
aluminum rolling and extrusions business but did not include
Corus's primary aluminum smelters.

Along with company's aluminum recycling operations in Germany,
the United Kingdom, Mexico and Brazil and magnesium recycling
operations in Germany and the Netherlands, with the Corus
Aluminum acquisition, the company now has rolled products and
extrusions operations in Germany, Belgium, Canada and China. In
addition, the company is in the process of constructing a zinc
recycling facility in China.

                    *      *      *

As reported in the Troubled Company Reporter-Europe on Oct. 17,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for Aleris International, Inc. and its Ba3 rating on the
company's US$400 million issue of senior secured term loan, in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology.  Moody's
also assigned an LGD3 rating to those loans, suggesting
noteholders will experience a 32% loss in the event of a
default.  


APPTIS DE: Moody's Puts B1 Rating on US$180-Mln Credit Facility
---------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to the proposed
US$180 million credit facility of Apptis (DE), Inc.  

Despite a sizable amount of the net proceeds being used to
return capital to its financial sponsor, New Mountain Capital,
LLC, Moody's affirmed the B2 corporate family rating.

Apptis is undertaking a recapitalization to:

   -- repay outstanding of US$77 million under its
      existing credit facility;

   -- fully retire US$50 million of the existing
      senior subordinated cash pay notes held by the Sponsor;

   -- partially repay approximately US$20.5 million of
      senior subordinated payment-in-kind (PIK) notes
      and related accrued interest also held by the Sponsor; and

   -- pay related fees and expenses.

The transaction is being financed with proposed credit
facilities that include a US$30 million senior secured first
lien revolver (expected to be undrawn at close) and a
US$150 million senior secured first lien term loan.

Moody's took these actions:

    * US$30 million proposed senior secured first lien
      revolver maturing 2011, assigned B1 (LGD3, 33%);

    * US$150 million proposed senior secured first lien
      term loan B due 2012, assigned B1 (LGD3, 33%);

    * Corporate Family Rating, affirmed B2; and

    * Probability of Default Rating, affirmed B2.

Ratings for the prior US$107 million credit facility, rated Ba2,
are to be withdrawn upon conclusion of the proposed transaction.

The ratings outlook is stable.

The ratings are subject to the conclusion of the proposed
transactions and Moody's review of final documentation.

The affirmation of the B2 Corporate Family Rating continues to
acknowledge Apptis' stable business as evidenced by strong win
and retention rates on government contracts.  This track record
helps to allay some concern regarding the meaningful amount of
contracts up for recompete within the next year.  Other business
concerns reflected in the B2 corporate family rating include a
high concentration of revenue, Apptis' small revenue base --
notably when compared to its high debt burden, and the inherent
exposure to delays or reduction in federal spending, which is
prevalent in the government contract services business industry-
wide.  The sizable return of capital to the financial sponsor of
approximately US$70 million puts downward pressure on the
ratings as pro forma adjusted leverage is expected to be
approximately 5.7 times while year to date EBIT and EBITDA are
below original expectations.

The B1 rating on the senior secured credit facility reflects the
facility's priority position in the capital structure and a Loss
Given Default (LGD) assessment of LGD3 (33%).  The credit
facility has a first priority perfected lien on all the capital
stock and tangible and intangible assets of the borrower,
Apptis (DE), Inc., and its parent and subsidiaries.  The rating
on the credit facility benefits from the loss absorption
provided by the US$43 million PIK mezzanine notes at Apptis
Holdings, Inc. (DE), the company's parent, which are expected to
remain pro forma for the proposed transaction.  The company's
parent and all existing and future subsidiaries guarantee the
credit facility.

The stable ratings outlook reflects Moody's expectation that
Apptis will grow its services revenue, maintain positive free
cash flow and use excess cash to reduce borrowings under its
secured credit facility.  In Moody's opinion, there is some room
under pro forma credit statistics to absorb some negative
variance without triggering a downgrade of the ratings.

Sustained financial performance above current expectations
resulting in adjusted debt to EBITDA at or below 4.5 times, free
cash flow to adjusted debt ranging between 7% and 10%, and
evidence of maintaining adjusted EBIT to cash interest above
2 times could result in a positive change in the outlook or
ratings.

The outlook or ratings could be lowered if Apptis loses a
significant contract, otherwise experiences operational
challenges (specifically, working capital management), or
pursues financial policies that result in adjusted debt to
EBITDA rising above 6 times and adjusted EBIT to cash interest
falling below 1.5 times.

Apptis, headquartered in Chantilly, Virginia, provides
information technology services and solutions primarily to
federal government agencies.  The company's core capabilities
include software development and engineering, network
infrastructure deployment and support services, and product
fulfillment.  Revenue for the twelve months ended June 2006 was
approximately US$303 million.


DATAPOS SICHERHEITSSYSTEME: Claims Registration Ends Nov. 28
------------------------------------------------------------
Creditors of datapos Sicherheitssysteme & Logistik GmbH have
until Nov. 28 to register their claims with court-appointed
provisional administrator Ruediger Werres.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Dec. 19 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Room 14
         Ground Floor
         Luxemburger Road 101
         50939 Cologne, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Cologne opened bankruptcy proceedings
against datapos Sicherheitssysteme & Logistik GmbH on Oct. 13.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         datapos Sicherheitssysteme & Logistik GmbH
         Attn: Daniel Franke, Manager
         Jesuitengasse 80
         50735 Cologne, Germany

The administrator can be contacted at:

         Dr. Ruediger Werres
         Friesenplatz 17 a
         50672 Cologne, Germany


DIPL.-ING. LESSMEISTER: Claims Registration Ends November 29
------------------------------------------------------------
Creditors of Dipl.-Ing. Lessmeister GmbH & Co. KG have until
Nov. 29 to register their claims with court-appointed
provisional administrator Christoph Schulte-Kaubruegger.

Creditors and other interested parties are encouraged to attend
the meeting at 1:00 p.m. on Jan. 17, 2007, 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 Dipl.-Ing. Lessmeister GmbH & Co. KG on Oct. 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Dipl.-Ing. Lessmeister GmbH & Co. KG
         Lippestr. 13
         59368 Werne, Germany

         Attn: Lothar Lessmeister, Manager
         Friedrich-Hebbel-Str. 33
         59368 Werne, Germany

The administrator can be contacted at:

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


DRUCK & MEDIEN: Claims Registration Ends November 28
----------------------------------------------------
Creditors of Druck & Medien im Umweltzentrum GmbH have until
Nov. 28 to register their claims with court-appointed
provisional administrator Cornelia Moenert.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Dec. 19 at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         4 Floor
         Court Route 6
         33602 Bielefeld, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bielefeld opened bankruptcy proceedings
against Druck & Medien im Umweltzentrum GmbH on Oct. 5.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Druck & Medien im Umweltzentrum GmbH
         August-Bebel-Str. 16-18
         33602 Bielefeld, Germany

         Attn: Uwe Siegfried, Manager
         Bielefelder Str. 92
         33824 Werther, Germany

         Ralf Jacobsen, Manager
         Milchstr. 155
         32120 Hiddenhausen, Germany

The administrator can be contacted at:

         Cornelia Moenert
         Lise-Meitner-Str. 13
         33605 Bielefeld, Germany


FICHTESTRASSE 16: Creditors' Meeting Slated for November 28
-----------------------------------------------------------
The court-appointed provisional administrator for Fichtestrasse
16 Grundstuecks GmbH & Co. KG, Joachim Voigt-Salus, will present
his first report on the Company's insolvency proceedings at a
creditors' meeting at 9:05 a.m. on Nov. 28.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:05 a.m. on Feb. 27, 2007, at the
same venue.

Creditors have until Jan. 5, 2007, to register their claims with
the court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Fichtestrasse 16 Grundstuecks GmbH & Co. KG
on Oct. 5.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Fichtestrasse 16 Grundstuecks GmbH & Co. KG
         Miquelstrasse 56-58
         14195 Berlin, Germany

The administrator can be reached at:

         Joachim Voigt-Salus
         Rankestrasse 33
         10789 Berlin, Germany


HAGA GMBH: Claims Registration Ends November 28
-----------------------------------------------
Creditors of HAGA GmbH have until Nov. 28 to register their
claims with court-appointed provisional administrator Thomas
Lauterfeld.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Dec. 19 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 Duisburg
         Area C407
         4th Floor
         Cardinal Galen Road 124-132
         47058 Duisburg, 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 Duisburg opened bankruptcy proceedings
against HAGA GmbH on Oct. 13.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         HAGA GmbH
         Rheinstr. 24
         45478 Muelheim an der Ruhr, Germany

         Attn: Nedim and Suphi Umay, Managers
         Lintorfer Way 6
         40885 Ratingen, Germany

The administrator can be contacted at:

         Thomas Lauterfeld
         Friedrich-Ebert-Str. 34
         45468 Muelheim an der Ruhr, Germany


HILLEBRAND GMBH: Claims Registration Ends November 29
-----------------------------------------------------
Creditors of Hillebrand GmbH & Co. have until Nov. 29 to
register their claims with court-appointed provisional
administrator Andreas Amelung.

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

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Room 14
         Ground Floor
         Luxemburger Road 101
         50939 Cologne, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Cologne opened bankruptcy proceedings
against Hillebrand GmbH & Co. on Nov. 29.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Hillebrand GmbH & Co.
         Oststrasse 40 A
         50189 Elsdorf, Germany

         Attn: Dieter Hillebrand, Manager
         Gartenstrasse 46
         50189 Elsdorf, Germany

The administrator can be contacted at:

         Andreas Amelung
         Mediapark 6 B
         50670 Cologne, Germany


KANA SOFTWARE: Sept. 30 Balance Sheet Upside-Down by US$4.5 Mln
---------------------------------------------------------------
KANA Software Inc. disclosed of in its third quarter financial
statements on Form 10-Q to the U.S. Securities and Exchange
Commission on Nov. 14, 2006.

The company incurred a US$582,000 net loss on US$13.1 million of
net revenues for the three months ended Sept. 30, 2006, compared
with a US$1.2 million net loss on US$10.9 million of net
revenues from the same period in 2005.   

At Sept. 30, 2006, the Company's balance sheet showed
US$28,388,000 million in total assets and US$32,910,000 million
in total liabilities, resulting in a US$4,522,000 stockholders'
deficit.

The Company's Sept. 30 balance sheet also showed strained
liquidity with US$14.2 million in total current assets available
to pay US$27.6 million in total current liabilities.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1531

                      Going Concern Doubt

As reported in the Troubled Company Reporter on July 12, 2006,
KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's
financial statement for the year ending Dec. 31, 2005.  Burr
Pilger pointed to the Company's recurring losses from
operations, net capital deficiency, negative cash flow from
operations and accumulated deficit.

                          About KANA

Headquartered in Menlo Park, California, KANA Software, Inc.,
provides multi-channel customer service software applications.  
KANA's integrated solutions allow companies to deliver service
across all channels, including email, chat, call centers and Web
self-service, so customers have the freedom to choose the
service they want, how and when they want it.  The Company's
target market is the Global 2000 with a focus on large
enterprises with high volumes of customer interactions such as
banks, telecommunications companies, high-tech manufacturers,
healthcare organizations and government agencies.  

The Company is headquartered in Menlo Park, California, with
offices in Japan, Hong Kong, Korea and throughout the United
States and Europe, including Austria, Germany, the Netherlands
and the United Kingdom.


KLEMME & PARTNER: Claims Registration Ends November 28
------------------------------------------------------
Creditors of Klemme & Partner Computer-Software- Vertriebs GmbH
have until Nov. 28 to register their claims with court-appointed
provisional administrator Joachim Walterscheid.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Dec. 19 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         4 Floor
         Court Route 6
         33602 Bielefeld, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bielefeld opened bankruptcy proceedings
against Klemme & Partner Computer-Software- Vertriebs GmbH on
Oct. 6.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Klemme & Partner Computer-Software- Vertriebs GmbH
         Pastorenholz 37
         32584 Loehne, Germany

         Attn: Joerg Klemme, Manager
         Wiesenweg 14
         73773 Aichwald, Germany

The administrator can be contacted at:

         Joachim Walterscheid
         Kurpark 2
         32545 Bad Oeynhausen, Germany


RASANT AUTOMOBILE: Claims Registration Ends November 27
-------------------------------------------------------
Creditors of Rasant Automobile Am Detershof GmbH have until
Nov. 27 to register their claims with court-appointed
provisional administrator Hermann Berding.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on Dec. 18 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 Oldenburg
         Meeting Room
         2nd Floor
         Elizabeth Route 6
         26135 Oldenburg, 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 Oldenburg opened bankruptcy proceedings
against Rasant Automobile Am Detershof GmbH on Oct. 4.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Rasant Automobile Am Detershof GmbH
         Detershof 2-4
         26655 Westerstede, Germany

         Attn: Andreas Backhaus, Manager
         Hugo-Eckener-Str. 4
         26127 Oldenburg, Germany

The administrator can be contacted at:

         Hermann Berding
         Jammertal 1
         49661 Cloppenburg, Germany
         Tel: 04471/91260
         Fax: 04471/82997
         E-mail: info@kanzlei-berding.de


RIECKMANN & BORGWEDEL: Claims Registration Ends November 28
-----------------------------------------------------------
Creditors of Rieckmann & Borgwedel Bauunternehmen GmbH have
until Nov. 28 to register their claims with court-appointed
provisional administrator Hans-Peter Rechel.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Dec. 19 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 Lueneburg
         Hall 302
         Ochsenmarket 3
         21335 Lueneburg, 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 Lueneburg opened bankruptcy proceedings
against Rieckmann & Borgwedel Bauunternehmen GmbH on Oct. 9.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Rieckmann & Borgwedel Bauunternehmen GmbH
         Attn: Ulrich Rieckmann, Manager
         Boerse 9
         21441 Garstedt, Germany

The administrator can be contacted at:

         Hans-Peter Rechel
         c/o Zeuner & Rechel Insolvenz GbR
         Lehmweg 17
         20251 Hamburg, Germany
         Tel: 040/480639-0
         Fax: 040/48063999
         E-mail: Hans-Peter.Rechel@wzr-legal.com


VIDEOTRONIK INTERNATIONAL: Claims Registration Ends November 28
---------------------------------------------------------------
Creditors of Videotronik International GmbH have until Nov. 28
to register their claims with court-appointed provisional
administrator Andreas Fischer.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 a.m. on Jan. 9, 2007, 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 Baden-Baden
         009a
         Ground Floor
         Gutenbergstr. 17
         76532 Baden-Baden, 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 Baden-Baden opened bankruptcy proceedings
against Videotronik International GmbH on Oct. 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Videotronik International GmbH
         Attn: Werner Vogt, Manager
         Steingeruest 27
         76437 Rastatt, Germany

The administrator can be contacted at:

         Andreas Fischer
         Kriegstr. 25
         76133 Karlsruhe, Germany


VLB WIRTSCHAFTSBERATUNGS: Claims Registration Ends November 28
--------------------------------------------------------------
Creditors of VLB Wirtschaftsberatungs GmbH have until Nov. 28 to
register their claims with court-appointed provisional
administrator Biner Bahr.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Dec. 13 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Essen
         Hall 185
         2nd Floor
         Principal Establishment
         Gelber Bereich
         Zweigertstr. 52
         45130 Essen, Germany         
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Essen opened bankruptcy proceedings
against VLB Wirtschaftsberatungs GmbH on Oct. 17.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         VLB Wirtschaftsberatungs GmbH
         Attn: Rudi van Loon-Behr, Manager
         Felderbachstr. 131
         45529 Hattingen, Germany

The administrator can be contacted at:

         Dr. Biner Bahr
         Graf-Adolf-Place 15
         40213 Duesseldorf, Germany
         Tel: 0211/540680192
         Fax: 0211 540680199


VOLKSWAGEN AG: Board Approves Martin Winterkorn as Chairman
-----------------------------------------------------------
Volkswagen AG's supervisory board agreed Nov. 17 to appoint Dr.
Martin Winterkorn as Chairman of the Board of Management
effective Jan. 1, 2007.

Volkswagen outgoing CEO Bernd Pischetsrieder will leave the
board of management effective Dec. 31.  He will continue to work
for the group and will assume functions in the interests of the
group.

The supervisory board will decide at a later date on a successor
to Dr. Winterkorn in his present function as Chairman of the
Board of Management of Audi AG.

           Supervisory Board discusses Group planning

At its meeting on Nov. 17, the Supervisory Board also discussed
the Group's current financial and capital expenditure planning
for the period 2007 to 2009.  According to this, Volkswagen will
be investing EUR24.7 billion in the Automotive Division in the
coming three years.

In addition to investments in property, plant and equipment,
this amount also includes additions to capitalized development
costs and investments in financial assets.  Of the total amount,
EUR17.7 billion is accounted for by investments in property,
plant and equipment, of which EUR10.7 billion will be invested
in Germany alone.

After a relatively low capex/revenue ratio in recent years, this
ratio will be maintained at a competitive long-term level of
below six percent, as in the previous planning round.  At
EUR11.8 billion, the bulk of the Group's spending on property,
plant and equipment for the Automotive Division will be devoted
to modernizing and expanding the product range.

               Indian Investment Project Approved

The Supervisory Board also approved the plans by the Board of
Management for an investment project in India.  Volkswagen will
build a production plant in the north of the city of Pune in the
state of Maharashtra.  Under the current plans, the new plant
will employ around 2,500 people and will start production of a
small passenger car model in the second half of 2009.

               Supervisory Board on MAN and Scania

Volkswagen's Supervisory Board continues to support the merger
of MAN and Scania and confirmed its two resolutions adopted on
October 15.  It continues to seek an amicable solution, but is
open to other strategies if necessary.

Volkswagen will offer MAN its interest in Scania if MAN holds at
least 56.01 percent of Scania's voting rights and at least 71.31
of its share capital.  However, if it is clear that the offer
will not be successful, Volkswagen reserves the right to seek
any alternative solution.

Headquartered in Wolfsburg, Germany, the Volkswagen Group --
http://www.volkswagen.de/-- is one of the world's leading  
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.

                        *    *    *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.


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


AVOCA CLO: Fitch Gives Low-B Ratings to EUR33.9-Mln Loans
---------------------------------------------------------
Fitch Ratings assigned Avoca CLO VI Plc's issue of EUR508
million floating-rate notes due 2023 final ratings.  The
transaction, a European arbitrage collateralized loan
obligation, is a securitization of primarily senior secured
loans:

   -- EUR301.5 million Class A1 senior secured notes
      XS0272579763: AAA;

   -- EUR64 million Class A2 senior secured notes XS0272580266:
      AAA;

   -- EUR19.4 million Class B senior secured deferrable notes
      XS0272580779: AA;

   -- EUR31.5 million Class C senior secured deferrable notes
      XS0272580936: A;

   -- EUR20 million Class D senior secured deferrable notes
      XS0272582395: BBB;

   -- EUR23.85 million Class E senior secured deferrable notes
      XS0272583286: BB;

   -- EUR10 million Class F senior secured deferrable notes
      XS0272583955: B;

   -- EUR37.75 million Class M subordinated notes XS0272584417:
      not rated; and

   -- EUR7 million Class V combination notes XS0272586891: BBB+.

The final ratings are based on the quality and diversity of the
portfolio of assets, which are selected by the collateral
manager, Avoca Capital Holdings. Fitch assigned Avoca Capital
Holdings a CDO Asset Manager Rating of 2 for leveraged loans in
May 2006.  The final ratings are also based on the credit
enhancement provided to the various Classes of notes, which
consists of the subordinated notes, structural protection
covenants and excess spread.

The final ratings of the Class A1 and Class A2 notes address
ultimate repayment of principal at maturity and timely payment
of interest according to the terms of the notes.  For all other
rated Classes of notes, the final ratings address ultimate
payment of principal and interest, including any deferred
interest, at maturity according to the terms of the notes.

The rating on the Class V combination notes addresses the
ultimate receipt of interest and principal payments resulting in
a yield of 0.25% at maturity according to the terms of the
notes.

The portfolio comprises primarily senior secured loans and up to
15% of mezzanine loans and second-lien loans.  In addition, up
to 5% of the portfolio can contain high-yield bonds.  The
portfolio guidelines outlined in the investment management
agreement limit the collateral manager's portfolio allocations
with respect to obligor, industry and asset type.  

Fitch's European Leveraged Finance Group who will assign and
maintain Issuer Default ratings and Recovery ratings will
analyze each asset of the portfolio.

Avoca CLO VI PlC is a company with limited liability,
incorporated under the laws of Ireland.  The net proceeds from
the note issuance are used to purchase a portfolio of primarily
European senior secured loans.


BCM IRELAND: PIK Note Issuance Cues S&P to Lower Rating to B+
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit ratings on BCM Ireland Finance Ltd., BCM
Ireland Holdings Ltd., and Valentia Telecommunications upc
-- the parent companies of Ireland-based fixed and mobile
telecommunications operator eircom Ltd. -- to 'B+' from 'BB-'.  

This follows the announcement of a EUR425 million payment-in-
kind note issue by BCM Ireland Preferred Equity Ltd., the newly
created parent company of BCMIF, to fund a dividend payment to
shareholders Babcock & Brown Capital Ltd. and certain
affiliates, and eircom ESOP Trustee Ltd.  The outlook is stable.

The ratings on BCMIH's EUR3.3 billion senior secured facilities
were lowered to 'B+' from 'BB-' and the ratings on BCMIH's
EUR350 million second-lien loan and BCMIF's EUR350 million
subordinated floating-rating notes were lowered to 'B-' from
'B'.  The related recovery ratings of '2' on the senior secured
facilities and '5' on the second-lien loan were affirmed.

At the same time, Standard & Poor's assigned its 'B+' long-term
corporate credit rating to BCM Ireland Preferred Equity Ltd.
(BCMIPE) and its 'B-' long-term subordinated debt rating to
BCMIPE's EUR425 million floating-rate senior PIK note issue due
2017.

"The downgrade reflects higher-than-expected leverage for the
group due to the PIK note issue, which comes not long after a
highly leveraged buyout in August 2006 of eircom Group, the
owner of Valentia, and signals a more aggressive than expected
financial policy on the part of BCMIPE's owners," said Standard
& Poor's credit analyst Michael O'Brien.

"The note issue places an added future burden on the group
in terms of the obligation to repay or refinance this additional
debt in years to come," Mr. O'Brien added.  "In this context, it
is important to note that our current expectation for eircom's
cash flow generating ability--which we consider to be
relatively weak given the company's substantial investment needs
-- has not substantially changed."

Pro forma for the PIK note issue, we estimate that the group's
lease- and pension-adjusted debt to annualized EBITDA would be
about 7.2x for the six months ended Sept. 30, 2006, compared
with the actual ratio of 6.6x.  Pro forma total adjusted debt
was EUR4.8 billion at Sept. 30, 2006.

Standard & Poor's expects that BCMIH will deliver solid
operating and cash flow performance over the next 18 months,
along with meaningful improvement in leverage.  This implies
strong execution at Meteor and sound management of its market
position and cost base at eircom, in an environment
in which the revenue mix is changing and competition is
increasing.  At this point, before substantial deleveraging, we
do not see any upside in the ratings.  A lack of operating
progress and deleveraging and a tightening of covenant headroom
or pressure on liquidity would put strain on the ratings on
BCMIF, BCMIH, Valentia, and BCMIPE.


DECO 10: S&P Assigns BB Rating on EUR1.37-Mln Class F Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR1.039 billion commercial mortgage-
backed floating-rate notes to be issued by DECO 10-Pan Europe 4
PLC, an special purpose entity incorporated in Ireland.
  
At closing, the issuer will use the proceeds of the note
issuance to purchase:

   -- nine loans secured by 72 commercial properties in
      Germany and one loan secured by a single office
      property in The Netherlands.  These loans were
      originated by Deutsche Bank AG;

   -- 50% of a loan secured by 303 commercial properties
      in Germany.  The loan was originated by Deutsche Bank
      and Landesbank Hessen-Thueringen Girozentrale (Helaba);

   -- 50% of a loan secured by 48 commercial properties
      in Germany.  The loan was originated by Deutsche Bank
      and Citibank N.A. New York, NY, London branch; and

   -- two notes to be issued by the Swiss issuer,
      DECO - PE4 Swiss AG, which are backed by two loans
      and ultimately secured by two commercial properties
      in Switzerland.  
  
The loan pool collateral is well diversified throughout Germany,
Switzerland, and The Netherlands.  In addition, no single
property accounts for more than 7.4% of the pool by value.
  
The Dresdner office portfolio is the largest loan in the pool,
with a whole loan balance of EUR841.3 million, and is a
syndicated loan between Deutsche Bank (EUR420.7 million) and
Helaba (EUR420.7 million) on a pari passu basis.
  
                          Ratings List
                    DECO 10-Pan Europe 4 PLC
EUR1.039 Billion Commercial Mortgage-Backed Floating-Rate Notes
  
                           Prelim.        Prelim.
            Class          rating         amount (Mil. EUR)
            -----          ------         ------
            A1             AAA            650
            X              AAA            0.05
            A2             AAA            277.5
            B              AA             38.35
            C              A              38.35
            D              BBB            23.8
            E (1)          BBB-           10.1
            F (1)          BB             1.37

   (1) Subject to an available funds cap mechanism.  

       Consequently, the class E and F noteholders may receive
       a variable interest coupon in the event of various
       loan prepayment scenarios.


VALENTIA TELECOM: S&P Downgrades Corporate Credit Rating to B+
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit ratings on BCM Ireland Finance Ltd. (BCMIF),
BCM Ireland Holdings Ltd., and Valentia Telecommunications upc -
- the parent companies of Ireland-based fixed and mobile
telecommunications operator eircom Ltd. -- to 'B+' from 'BB-'.  

This follows the announcement of a EUR425 million payment-in-
kind note issue by BCM Ireland Preferred Equity Ltd., the newly
created parent company of BCMIF, to fund a dividend payment to
shareholders Babcock & Brown Capital Ltd. and certain
affiliates, and eircom ESOP Trustee Ltd.  The outlook is stable.

The ratings on BCMIH's EUR3.3 billion senior secured facilities
were lowered to 'B+' from 'BB-' and the ratings on BCMIH's
EUR350 million second-lien loan and BCMIF's EUR350 million
subordinated floating-rating notes were lowered to 'B-' from
'B'.  The related recovery ratings of '2' on the senior secured
facilities and '5' on the second-lien loan were affirmed.

At the same time, Standard & Poor's assigned its 'B+' long-term
corporate credit rating to BCM Ireland Preferred Equity Ltd.
(BCMIPE) and its 'B-' long-term subordinated debt rating to
BCMIPE's EUR425 million floating-rate senior PIK note issue due
2017.

"The downgrade reflects higher-than-expected leverage for the
group due to the PIK note issue, which comes not long after a
highly leveraged buyout in August 2006 of eircom Group, the
owner of Valentia, and signals a more aggressive than expected
financial policy on the part of BCMIPE's owners," said Standard
& Poor's credit analyst Michael O'Brien.

"The note issue places an added future burden on the group
in terms of the obligation to repay or refinance this additional
debt in years to come," Mr. O'Brien added.  "In this context, it
is important to note that our current expectation for eircom's
cash flow generating ability--which we consider to be
relatively weak given the company's substantial investment needs
-- has not substantially changed."

Pro forma for the PIK note issue, we estimate that the group's
lease- and pension-adjusted debt to annualized EBITDA would be
about 7.2x for the six months ended Sept. 30, 2006, compared
with the actual ratio of 6.6x.  Pro forma total adjusted debt
was EUR4.8 billion at Sept. 30, 2006.

Standard & Poor's expects that BCMIH will deliver solid
operating and cash flow performance over the next 18 months,
along with meaningful improvement in leverage.  This implies
strong execution at Meteor and sound management of its market
position and cost base at eircom, in an environment
in which the revenue mix is changing and competition is
increasing.  At this point, before substantial deleveraging, we
do not see any upside in the ratings.  A lack of operating
progress and deleveraging and a tightening of covenant headroom
or pressure on liquidity would put strain on the ratings on
BCMIF, BCMIH, Valentia, and BCMIPE.


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


IMPREGILO SPA: Earns EUR195.3 Million for First Nine Months 2006
----------------------------------------------------------------
Impregilo S.p.A. released its approved consolidated financial
results for the first nine months ended Sept. 30, 2006.

For the first nine months of 2006, the Group posted EUR195.3
million in net profit on EUR1.83 billion in revenues, compared
with EUR347.9 million in net losses on EUR1.72 billion in
revenues for the same period in 2005.

Factors contributing to the nine-months results included:

   -- lower interest expense, largely as a result of the
      reduction in debt, with a decrease of around EUR31 million
      in charges in the first nine months;

   -- a reduction of approximately EUR13 million in expense and
      commissions relating to banks and guarantees obtained by
      the Group, compared with the first nine months of 2005;

   -- the debt restructuring at the Argentine subsidiary Caminos
      de las Sierras S.A., and the simultaneous remission of a
      capitalized amount of EUR28.5 million, recognized in full
      in finance income for the period.

The share of results of associates in the first nine months of
2006 was EUR26.5 million.  This compared with EUR32.4 million in
the 2005 period, which benefited from a significant capital gain
of EUR15.6 million on the sale of Leonardo Holding.  

Another contributing factor in the Group's operating results
were assets held for sale, including a capital gain of EUR105.1
million on the sale of the Chilean motorway concession Costanera
Norte S.A.

                             Outlook

In the absence of currently unforeseeable extraordinary events,
the Group expects the growth of its industrial operations for
the first nine months of 2006 to continue in the last quarter of
the year.

No additional capital gains are expected on the disposals plan
before the end of the year.

                        About Impregilo

Headquartered in Milan, Italy, Impregilo S.p.A. --
http://www.impregilo.it/-- is involved in the construction of  
dams and hydroelectric schemes since 1906.  In 2005, Impregilo
posted consolidated net sales of EUR2.4 billion, compared to
EUR2.9 billion in 2004.  It attributed the decrease to a general
downturn in sales volumes, the de-consolidation of some
operations and the absence of extraordinary items recognized in
2004.  

In 2005, the Group posted a consolidated operating loss of
EUR254.4 million.  A significant factor in the result was the
aggregate operating loss (EUR260 million) of the non-core
businesses (Building & Services, Campania MSW Project, Imprepar
in liquidation), which are being sold/retired or are in
liquidation.

At Dec. 31, 2005, the company reported EUR739.18 million of net
debt, including discontinued operations.  Shareholders' equity
at Dec. 31, 2005, amounted to EUR516.7 million, an increase of
EUR305 million from Dec. 31, 2004.  Impregilo is optimistic it
could achieve its profit forecast and debt-to-equity ratio of
0.5 in 2007.  Lazard Freres & Co. LLC is advising Impregilo.


KINETEK INC: S&P Lifts Rating to B Following Acquisition
--------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Kinetek Inc. to 'B' from 'B-', and removed it from
CreditWatch with developing implications, where it was placed
Sept. 13.  The outlook is stable.
     
As the same time, Standard & Poor's affirmed its 'B' bank loan
rating and recovery rating of '2' on Kinetek's US$270 million
first-lien credit facilities, and its 'CCC+' bank loan rating
and a recovery rating of '5' on the company's US$95 million
second-lien credit facilities.  The company's US$270 million
senior notes due Nov. 15, were repaid at maturity, and the
rating on these notes has been withdrawn.
      
"The upgrade reflects the completion of the acquisition of
Kinetek by The Resolute Fund LP, and the company's improved
liquidity position," said Standard & Poor's credit analyst
Gregoire Buet.


* Fitch Places City of Taranto's BB+ Rating on Watch Negative
-------------------------------------------------------------
Fitch Ratings placed the City of Taranto BB+ Long-term rating on
Rating Watch Negative.  The action affects the outstanding
short- and long-term debt of approximately EUR340 million.

The RWN follows conflicting messages from the city's
commissioners about the municipality's capacity to pay the debt
installment of about EUR10 million due by end-December 2006.  It
also takes into account the risk that if the payment is missed
the installment will be included in the liabilities eligible for
proportional settlement, which could mean lenders forfeiting the
installment falling due.

In mid-October Taranto declared financial distress.  Despite the
financial strains, Italian cities can continue to prioritize the
repayment of debt even during the distress procedure given
preferential payments allowed by the national law.  However,
there is uncertainty as to whether Taranto has effectively put
in place the procedure to maintain the debt installments among
the expenses eligible for preferential payments.

Fitch expects to conclude its review and resolve the Rating
Watch over the next two months.  The review will focus on the
current status of Taranto's finance and confirmation of whether
or not the city has put in place the legal procedures to serve
the financial debt in priority.


==================
K A Z A KH S T A N
==================


ABZAL CREDIT: Creditors Must File Claims by Dec. 15
---------------------------------------------------
LLP Credit Partnership Abzal Credit & Company has declared
insolvency.  Creditors have until Dec. 15 to submit written
proofs of claim to:

         LLP Abzal Credit & Company
         Office 65
         Micro District 5, 17
         Almaty, Kazakhstan


AK-BULAK TRADE: Creditors Must File Claims by Dec. 19
-----------------------------------------------------
LLP AK-Bulak Trade has declared insolvency.  Creditors have
until Dec. 19 to submit written proofs of claim to:

         LLP AK-Bulak Trade
         Amangeldy Str. 14
         B. Ashekeev
         Karasai District
         Almaty Region
         Kazakhstan


ALGABAS-XXI LLP: Proof of Claim Deadline Slated for Dec. 19
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl Region
declared LLP Algabas-XXI insolvent on Sept. 14.  Subsequently,
bankruptcy proceedings were introduced at the company.

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

         LLP Algabas-XXI
         Tole bi Str. 73/1
         Taraz
         Jambyl Region
         Kazakhstan


ALSER-TUR LLP: Proof of Claim Deadline Slated for Dec. 22
---------------------------------------------------------
LLP Alser-Tur has declared insolvency.  Creditors have until
Dec. 22 to submit written proofs of claim to:

         LLP Alser-Tur
         Micro District Taugul-3, 458
         Almaty, Kazakhstan


ARMAN LLP: Kostanai Court Begins Bankruptcy Proceedings
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
commenced bankruptcy proceedings against LLP Arman on Sept. 22.


BASS XXI: South Kazakhstan Court Starts Bankruptcy Procedure
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan Region commenced bankruptcy proceedings against
LLP Bass XXI.


CHAGLINSKOYE LLP: Claims Filing Period Ends Dec. 15
---------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Chaglinskoye insolvent on
Sept. 25.

Creditors have until Dec. 15 to submit written proofs of claim
to:

         LLP Chaglinskoye
         Department of Agriculture
         Konstitutsiya Kazakhstana Str. 38
         Petropavlovsk
         North Kazakhstan Region
   

CONTINENTAL PAVLODAR: Claims Filing Period Ends Dec. 22
-------------------------------------------------------
LLP Continental Pavlodar has declared insolvency.  Creditors
have until Dec. 22 to submit written proofs of claim to:

         LLP Continental Pavlodar
         Toraigyrov Str. 68/1
         Pavlodar
         140000 Pavlodar Region
         Kazakhstan


DUET-SERVICE LLP: Claims Registration Ends Dec. 15
--------------------------------------------------
LLP Duet-Service has declared insolvency.  Creditors have until
Dec. 15 to submit written proofs of claim to:

         LLP Duet-Service
         Zavodskaya Str. 108
         Aksai
         West Kazakhstan Region
         Kazakhstan


INTEGRATION KORDAI: Claims Registration Ends Dec. 15
----------------------------------------------------
LLP Integration Kordai has declared insolvency.  Creditors have
until Dec. 15 to submit written proofs of claim to:

         LLP Integration Kordai
         Tole bi Str. 58
         Kordai
         Kordai District
         080400 Jambyl Region
         Kazakhstan


INTERTRANS LLP: Creditors' Claims Due Dec. 20
---------------------------------------------
LLP Intertrans has declared insolvency.  Creditors have until
Dec. 20 to submit written proofs of claim to:

         LLP Intertrans
         Masanchi Str. 76-61
         Almaty, Kazakhstan
   
The juridical address is:

         Dostyk Ave. 38.
         Almaty, Kazakhstan
         Tel: 8 (3272) 92-01-12


KARABULAK-K LLP: Akmola Court Opens Bankruptcy Proceedings
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola Region
commenced bankruptcy proceedings against LLP Karabulak-K on
Sept. 22.


KOS-KARAGAI: Akmola Court Commences Bankruptcy Proceedings
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola Region
commenced bankruptcy proceedings against LLP Kos-Karaga on
Sept. 22.


REAL INDUSTRIAL: Claims Filing Period Ends Dec. 19
--------------------------------------------------
LLP Real Industrial has declared insolvency.  Creditors have
until Dec. 19 to submit written proofs of claim to:

         LLP Real Industrial
         Micro District Taugul-2, 24-20
         Almaty, Kazakhstan
         Tel: 8 701 772 14-70


SESTA CJSC: Claims Filing Period Ends Dec. 19
---------------------------------------------
CJSC Company Sesta has declared insolvency.  Creditors have
until Dec. 20 to submit written proofs of claim to:

         CJSC Sesta
         Sanatornaya Str. 14
         Micro District Baganashyl
         Almaty, Kazakhstan
         Tel: 8 (3272) 50-33-73


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


BAKAI-ATINSKY FORESTRY: Public Auction Scheduled for Nov. 28
------------------------------------------------------------
The Chui-Bishkek-Talas Territorial Department of the State
Committee on State Property will auction the Bakai-Atinsky
Forestry Fruit Storehouse of State Forest Service to the public
at 11:00 a.m. on Nov. 28 at:

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

The Bakai-Atinsky Forestry Fruit Storehouse of State Forest
Service is located at:

         Urmaral
         Bakai-ata
         Talas Region
         Kyrgyzstan

The property's starting price is set at KGS561,838.

The conditions of the commercial tender- presentation of
business-offer include:

   -- preposition of the price for the object,

   -- the volume and terms of proposed investments,

   -- preservation of the activity profile,

   -- social program in the field of salary, level
      of employment,

   -- increasing of optimal work places, and

   -- providing the preservation of the environment.

All liabilities should have quantitative term, and also the
period of their implementation.

The winner of the commercial tender is the obligatory person who
proposed the highest price for the object of privatization,
exposed to the tender.

Information on Bakai-Atinsky Forestry Fruit Storehouse as of
Sept. 1:

    * main activity: forestry
    * condition of immovable property: satisfactory
    * land land: 0.27 hectares

Interested bidders have until 5:00 p.m. on Nov. 27 to deposit an
amount equivalent to 10% of the starting price to the settlement
account of:

         The Chui-Bishkek-Talas Territorial Department of
         the State Committee on State Property
         Personal Account No. 205802605
         Settlement Account No. 1020002080100155
         MFO 102002
         Leninsky ROK
         Lenin Branch of OJSC Kyrgyzpromstroybank
         Bishkek, Kyrgyzstan

Participants may submit their bids and necessary documents at:

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

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

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


LENINSKY REGIONAL: Public Auction Scheduled for Dec. 12
-------------------------------------------------------
The Leninsky Regional Subdivision Service of the Court Officers
of Bishkek will auction a house building to the public at
10:00 a.m. on Dec. 12 at:

         Altyn-Bakan Street
         Ak-Orgo
         Bishkek, Kyrgyzstan

The house building is located at:

         Altyn-Bakan Street
         Ak-Orgo
         Bishkek, Kyrgyzstan

The property's starting price is set at KGS733,000.

Interested bidders have until Dec. 11 to deposit an amount
equivalent to 5% of the lot's starting price to the deposit
account of Leninsky Regional Court of Bishkek.

Participants may submit their bids at:

         Altyn-Bakan Street
         Ak-Orgo
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 65-13-15
              (+996 312) 65-12-93


TALDY-BULAK GOLD: Creditors' Claims Due Dec. 29
-----------------------------------------------
LLC Taldy-Bulak Gold Mining Company has declared insolvency.  
Creditors have until Dec. 29 to submit written proofs of claim
to:

         LLC Taldy-Bulak Gold Mining Company
         Shopokov Str. 99/1
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 90-09-39
              (+996 312) 90-09-38


TORGKAZ-TRADE LLC: Creditors' Claims Due Dec. 29
------------------------------------------------
LLC Torgkaz-Trade has declared insolvency.  Creditors have until
Dec. 29 to submit written proofs of claim to:

         LLC Torgkaz-Trade
         Kokchetavskaya Str. 261
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 41-65-67


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


EVRAZ GROUP: Natexis Syndicates US$525-Million Credit Facilities
----------------------------------------------------------------
Evraz Group S.A. reveals that the group of the banks led by
Natexis Banques Populaires has successfully closed the
syndication of US$525 million of financings originally arranged
in May and July 2006 by Natexis Banques Populaires in favor of
Evraz Group SA and OAO Raspadskaya.

The Transaction was oversubscribed and was syndicated among 12
international banks:

   -- Calyon,
   -- Commerzbank (Eurasja) SAO,
   -- DZ Bank AG,
   -- ICICI Bank Eurasia LLC,
   -- ING Bank Eurasia (ZAO),
   -- KfW - IPEX BANK,
   -- Raiffeisenlandesbank Niederosterreich-Wien AG,
   -- San Paolo IMI S.p.A. London Branch,
   -- Societe Generale,
   -- VTB Bank Europe plc,
   -- The Shanghai Commercial and Savings Bank Ltd.
      Offshore Banking Branch, and
   -- ZAO Banca Intesa.

The Transaction is split between a US$225 million 5-year Term
Loan to the benefit of Evraz, to finance the purchase and the
consolidation of coal assets under Raspadskaya in May 2006, and
a US$300 million Bridge Facility in favour of Raspadskaya.

The Mandated Lead Arrangers are Bank of Tokyo-Mitsubishi UFJ
Ltd, BNP Paribas SA, Natexis Banques Populaires and Bank Natexis
ZAO and Sumitomo Mitsui Banking Corporation, all acting also as
Underwriters and Bookrunners. Natexis Banques Populaires and
Bank Natexis ZAO are also acting as Coordinating Mandated Lead
Arrangers and Natexis Banques Populaires as Facility Agent.

The one year Bridge Facility has a margin of 0.85% and is
guaranteed by Evraz. The Term Loan has a margin of 1.25% and a
5-year tenor with amortisation following an 18-month grace
period. It carries the guarantee of Mastercroft Ltd.

This Transaction is the first unsecured facility syndicated in
the Russian steel sector. It is also one of the largest steel
financings ever completed in the Russian Federation.

                         About Evraz

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

                        *     *     *

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

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

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


EVRAZ GROUP: Russia Unit Hikes Profit for Third Quarter 2006
------------------------------------------------------------
The major Russian operating subsidiaries of Evraz Group S.A.
have filed financial results with the Federal Financial Markets
Service of the Russian Federation for the three months ended
Sept. 30, 2006.  The results are prepared in accordance with
Russian accounting standards.

The major subsidiary companies include:

   -- OAO Nizhny Tagil Iron and Steel Plant (NTMK),

   -- OAO West Siberian Iron and Steel Plant (Zapsib),

   -- OAO Kachkanarsky Mining and Processing Integrated Works
      (KGOK),

   -- OAO Vysokogorsky Mining and Processing Integrated Works
      (VGOK)

                           Highlights

   -- Higher sales volumes and increased prices for steel
      products fuelled profit growth at NTMK and ZapSib;

   -- The net profit of NTMK and ZapSib for third quarter 2006
      went up 95.7% and 672.2% respectively vs. third quarter
      2005 as a result of increased sales volumes and stronger
      prices in the domestic and export markets while the
      increased costs for iron ore were partially offset by
      lower prices for coking coal year-on-year;

   -- ZapSib's outstanding results are particularly attributable
      to significant increase in slabs sales after commissioning
      of a slab caster in November 2005, and growth in
      construction products sales driven by robust demand in the
      Russian market;

   -- KGOK and VGOK net profit increase significantly due to
      strong prices.

   -- The two GOKs' third quarter 2006 net profits expanded more
      than fivefold due to higher prices and growing production
      volumes at KGOK.  The prices increased on average by 30-
      45% year-on-year and more than 10% vs. the previous
      quarter.

                         About Evraz

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

                        *     *     *

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

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

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


EVRAZ GROUP: Declares Interim Dividend for First Half 2006
----------------------------------------------------------
The Board of Directors of Evraz Group S.A. declared an interim
dividend for the first six months 2006 of US$1.95 per common
share, or US$0.65 per Global Depositary Receipt payable before
Feb. 15, 2007, to shareholders on the share register record date
of Nov. 14, 2006.

Holders of the Company's GDRs may contact The Bank of New York
as depositary for the related GDRs record date and payment date.

                         About Evraz

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

                        *     *     *

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

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

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


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


AMSTEL CORPORATE: Moody's Rates EUR100MM Class E Notes at (P)Ba2
----------------------------------------------------------------
Moody's Investors Service assigned these following provisional
ratings to the notes to be issued by Amstel Corporate Loan
Offering 2006 B.V. and to the related senior swap:

   -- EUR450,000,000 Class A Floating Rate Notes
      due 2016: (P)Aaa;

   -- EUR150,000,000 Class B Floating Rate Notes
      due 2016: (P)Aa2;

   -- EUR100,000,000 Class C Floating Rate Notes
      due 2016: (P)A2;

   -- EUR100,000,000 Class D Floating Rate Notes
      due 2016: (P)Baa2;

   -- EUR100,000,000 Class E Rate Notes due 2016: (P)Ba2; and

   -- EUR8,870,000,000 Super Senior Credit Default Swap
      related to the ACLO 2006 issuance: (P)Aaa.

The ratings on the notes address the expected loss posed to
investors versus amounts due by the final maturity date in
October 2016.  The rating on the swap addresses the probability
and extent to which the protection provider would have to make a
protection payment.

The provisional ratings of the notes are based upon:

   1. the credit quality and diversification of the
      reference portfolio;

   2. the conditions to replenishment of the
      reference portfolio;

   3. the subordination position of each class of notes
      and their performance in relation to various
      default scenarios and related stress-test analyses; and

   4. structural features of the issue, including
      extra enhancement provided by the excess spread and
      the reserve account.

The issuer is providing protection to ABN Amro Bank N.V., via
credit default swaps, on a Euro 10 billion portfolio.  ACLO 2006
is hedging the first 11.3% of losses on the portfolio.  The
remaining 88.7% on top of that will be hedged with an unfunded
super senior credit default swap.  This portfolio is composed of
credit facilities to corporate entities, approximately 50% of
which are European.  ABN Amro has the possibility to add and/or
remove reference loans from the portfolio, so long as the
portfolio maintains certain credit characteristics.

The main constraints are:

   -- total notional amount of protection to be no
      greater than EUR10 billion;

   -- a maximum single obligor exposure of 1.5%
      of the portfolio, decreasing to 0.5% for
      low investment grade entities; and

   -- maximum exposure per industry sector of 8% to 12%.

The proceeds of the notes are to be deposited with ABN Amro
under cash deposits which will collateralize the vehicles'
obligations firstly under the credit default swaps, and secondly
towards the note holders.  Should ABN Amro's long term rating
fall below A1, either the deposits will be moved to a bank with
a long term rating of at least A1, or the deposits will be
liquidated and the vehicles will enter into repo agreements over
at least Aa3 Euro denominated government bonds with an
A1/Prime-1 bank.

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 ratings to the Notes.  A final rating may
differ from a provisional rating.


CORUS GROUP: Bondholders' Meeting Slated for December 4
-------------------------------------------------------
Corus Group PLC, through Corus Nederland BV, called a Bondholder
Meeting for holders of its NLG345 million 4.625% convertible
bonds due April 2007, of which NLG335 million are currently
outstanding.

Corus is offering Bondholders the opportunity to redeem the
Bonds early in conjunction with the acquisition.  Bondholders
are asked to consider whether they wish the Bonds to be redeemed
on the Early Redemption Date as detailed below.  The necessary
resolution will be voted upon at a Bondholder Meeting to be held
on Dec. 4, 2006.  Bondholders may vote by proxy if they do not
wish to attend the Bondholder Meeting.

Corus Group PLC, Tata Steel Ltd. and Tata Steel U.K. Ltd.
announced Oct. 20 their agreement on the terms of the
recommended acquisition of the entire issued and to be issued
share capital of Corus at a price of 455 pence in cash for each
share, valuing Corus at GBP4.3 billion.

The Acquisition is to be made by Tata Steel U.K., a wholly-owned
indirect English subsidiary of Tata Steel.  The Acquisition is
proposed to be effected by means of a scheme of arrangement
under section 425 of the Companies Act 1985 of England and
Wales, but may, in the alternative, be effected by way of an
offer in accordance with the City Code on Takeovers and Mergers
in the United Kingdom.

                          The Proposal

If the Resolution is passed the Issuer and the Trustee would
enter into a supplemental trust deed amending the terms of the
Bonds.  If the effective date of the Scheme, or the date on
which an offer by Tata Steel U.K. becomes unconditional in all
respects, then occurs on or before Feb. 28, 2007, the redemption
of the Bonds will occur on the day two business days after the
Effective Date, instead of on April 22, 2007 as currently
documented.

In these circumstances the Bonds will be redeemed at a price per
NLG1,000 principal amount of the Bonds of NLG1,037.50, plus
accrued interest on the principal amount of the Bonds up to the
Early Redemption Date.

If the Resolution is passed and the Bonds are redeemed on the
Early Redemption Date, Bondholders on whose behalf a Dutch bank
or other institution submits a Voting Instruction in favor of
the Resolution to the Tabulation Agent so that it arrives prior
to 4:00 p.m. CET on the Early Submission Date of Nov. 24, 2006
will receive, in addition, a premium in an amount of NLG5.00 per
NLG1,000 principal amount of the Bonds which were the subject of
that Voting Instruction, provided that such Bondholders do not
revoke their Voting Instructions or attend the Bondholder
Meeting or Adjourned Bondholder Meeting.

            Participating in the Consent Solicitation

Bondholders may vote at the Bondholder meeting by one of two
methods:

   -- By giving proxy to the Trustee, or its nominee, to vote on
      the Bondholder's behalf.  This can be implemented by
      instructing an Affiliate Institution which holds the Bonds
      on behalf of the Bondholder to submit a Voting Instruction
      to the Tabulation Agent prior to 4:00 p.m. CET on the
      Final Submission Date or the Adjourned Meeting Submission
      Date, respectively.  

      The Voting Instruction must be accompanied by a
      Declaration from that Affiliate Institution.  Details of
      how to do this and Forms of Voting Instruction and
      Declaration are included in the Consent Solicitation
      Statement.

   -- By attending the Bondholder Meeting in person or by
another proxy.  Details of how to do this are included in the
notice of for the Bondholder.

The Bondholder Meeting will at 10:00 a.m. CET on Dec. 4, to be
held at:

         The offices of De Brauw Blackstone Westbroek at          
         Tripolis (Tower 100)
         Burgerweeshuispad 301
         1076 Amsterdam, The Netherlands

If necessary, the Adjourned Bondholder Meeting will be held at
the same address on Dec. 21.

             Conditions of the Consent Solicitation

The Proposal will only become effective if the Resolution is
passed at the Bondholder Meeting and if the Effective Date
occurs on or before the Backstop Date, being Feb. 28, 2007.
Should these conditions not be met, the terms and conditions of
the Bonds will remain unchanged, the Bonds will not be redeemed
on the Early Redemption Date and no Early Voting Premium will be
payable.

Transaction timetable

   Date              Time                           Event

   Nov. 24, 2006   4:00 p.m. CET   Early Submission Date.
                                   Bondholders must submit a
                                   Qualifying Voting Instruction
                                   in favor of the resolution by
                                   this in order to be eligible
                                   to receive the Early Voting
                                   Premium.

   Nov. 30, 2006   4:00 p.m. CET   Final Submission Date.  
                                   Final date for submission of
                                   Voting Instructions.
   
   Dec. 4, 2006    10:00 a.m. CET  Bondholder Meeting.  If a
                                   quorum is not present, it
                                   will be necessary to call the
                                   Adjourned Bondholder Meeting.
                                   If Resolution is passed,
                                   execution of the Supplemental
                                   Trust Deed.
                           
                                   Notice of Results.  As soon
                                   as practicable after the
                                   Bondholder Meeting, notice of
                                   results of Bondholder Meeting
                                   published in Het Financieele
                                   Dagblad, and Euronext
                                   Amsterdam Official Price
                                   List, and on Bloomberg and
                                   Reuters IIIA.
                           
                                   Anticipated date of court
                                   meeting and extraordinary
                                   general meeting of Corus
                                   Shareholders to approve the          
                                   Scheme.

   Dec. 19, 2006  10:00 a.m. CET   Adourned Meeting Submission
                                   Date. Final date of
                                   submission of Voting
                                   Instructions for Adjourned
                                   Bondholder Meeting.

   Dec, 21, 2006  10:00 a.m. CET   Adjourned Bondholder Meeting.
                                   If the Resolution is passed,
                                   execution of the Supplemental
                                   Trust Deed.
                           
                                   Notice of Results.  As soon
                                   as practicable after the
                                   Adjourned Bondholder Meeting,
                                   notice of results of
                                   Adjourned Bondholder Meeting
                                   published in Het Financieele
                                   Dagblad, and Euronext
                                   Amsterdam Official Price
                                   List, and on Bloomberg and
                                   Reuters IIIA.

   Jan. 16, 2007    Business       Anticipated Scheme Effective    
                    hours          Date.

   Effective Date   Business       Early Redemption Date
   + two business   hours
   days

   Feb. 28, 2007    Close of       Backstop Date
                    business   

                        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.


KANA SOFTWARE: Sept. 30 Balance Sheet Upside-Down by US$4.5 Mln
---------------------------------------------------------------
KANA Software Inc. disclosed of in its third quarter financial
statements on Form 10-Q to the U.S. Securities and Exchange
Commission on Nov. 14, 2006.

The company incurred a US$582,000 net loss on US$13.1 million of
net revenues for the three months ended Sept. 30, 2006, compared
with a US$1.2 million net loss on US$10.9 million of net
revenues from the same period in 2005.   

At Sept. 30, 2006, the Company's balance sheet showed
US$28,388,000 million in total assets and US$32,910,000 million
in total liabilities, resulting in a US$4,522,000 stockholders'
deficit.

The Company's Sept. 30 balance sheet also showed strained
liquidity with US$14.2 million in total current assets available
to pay US$27.6 million in total current liabilities.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1531

                      Going Concern Doubt

As reported in the Troubled Company Reporter on July 12, 2006,
KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's
financial statement for the year ending Dec. 31, 2005.  Burr
Pilger pointed to the Company's recurring losses from
operations, net capital deficiency, negative cash flow from
operations and accumulated deficit.

                          About KANA

Headquartered in Menlo Park, California, KANA Software, Inc.,
provides multi-channel customer service software applications.  
KANA's integrated solutions allow companies to deliver service
across all channels, including email, chat, call centers and Web
self-service, so customers have the freedom to choose the
service they want, how and when they want it.  The Company's
target market is the Global 2000 with a focus on large
enterprises with high volumes of customer interactions such as
banks, telecommunications companies, high-tech manufacturers,
healthcare organizations and government agencies.  

The Company is headquartered in Menlo Park, California, with
offices in Japan, Hong Kong, Korea and throughout the United
States and Europe, including Austria, Germany, the Netherlands
and the United Kingdom.


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


VALEANT PHARMA: Filing Delay Concerns Spur S&P to Cut Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Costa
Mesa, Calif.-based Valeant Pharmaceuticals International.  The
corporate credit rating was lowered to 'B+' from 'BB-'.  

The ratings remain on CreditWatch with negative implications,
where they were placed Oct. 24 to reflect the ongoing
uncertainty regarding the company's inability to file its Form
10-Q for the third quarter and the consequences if the company
is not able to resolve the situation in 60 days.

"The ratings downgrade reflects our concern regarding specialty
pharmaceutical company Valeant's continued struggles to generate
earnings and cash flow growth," explained Standard & Poor's
credit analyst Arthur Wong.

Sales growth of the company's core product portfolio has been
tepid.  Valeant is highly reliant on product acquisitions for
growth.  Compelling product acquisition opportunities, however,
are few, and those that do exist are expensive for the company.
Valeant also faces increasing R&D funding needs and, with the
major setback in the development of its lead product prospect
(viramidine), no new product launches are expected soon from the
company's internal pipeline.

The third-quarter 10-Q filing delay was attributed to Valeant's
need to restate its financials, possibly as far back as 1997,
due to errors in accounting for stock option grants.  This
failure to file on time constitutes a default of reporting
requirements under the company's convertible and high-yield note
agreements, which, if not cured within 60 days, could result in
an acceleration of the amounts outstanding under those notes.
Standard & Poor's will monitor the cost and ability of Valeant
to cope with this situation before resolving the CreditWatch
listing.


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


ACB PETROVKA: Names Agency On Endowment Insurance as Liquidator
---------------------------------------------------------------
The Arbitration Court of Moscow Region appointed State
Corporation Agency on Endowment Insurance as Insolvency Manager
for ACB Petrovka (CJSC).  The company is located at:

         State Corporation Agency on Endowment Insurance
         Verkhne-Vaganskiy Tupik Str. 4
         109240 Moscow Region
         Russia

The Representative of Insolvency Manager can be reached at:

         Post User Box 4
         123022 Moscow Region
         Russia
         Tel: 8-800-200-08-05

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-40563/06-73-816B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         ACB Petrovka (CJSC)
         Petrovskiy Linii Str. 1/20
         127051 Moscow Region
         Russia


AK-DOVURAK-BREAD: Court Names A. Naumov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Tatarstan Republic appointed Mr. A.
Naumov as Insolvency Manager for OJSC Ak-Dovurak-Bread.  He can
be reached at:

         A. Naumov
         Ak-Dovurak
         Tyva Republic
         Russia
         Tel/Fax: (8-39422) 5-10-75

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A69-663/06-2.

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         OJSC Ak-Dovurak-Bread
         Ak-Dovurak
         Tyva Republic
         Russia


AMBER LLC: Court Names P. Lozhkin as Insolvency Manager
-------------------------------------------------------
The Arbitration Court of Krasnodar Region appointed Mr. P.
Lozhkin as Insolvency Manager for LLC Amber.  He can be reached
at:

         P. Lozhkin
         Stroitelnaya Str. 37
         Deverskaya St.
         Severskiy Region
         353240 Krasnodarf Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-32-17658/2006-46/958-B.

The Arbitration Court of Krasnodar Region is located at:

         Krasnaya Str. 6
         Krasnodar Region
         Russia

The Debtor can be reached at:

         LLC Amber
         Oktyabrskaya Str. 314
         Sredniye Chuburki
         Kushevskiy Region
         Krasnodar Region
         Russia


BOLGARSKAYA GARMENT: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Tatarstan Republic commenced bankruptcy
supervision procedure on OJSC Bolgarskaya Garment Factory.
The case is docketed under Case No. A 65-18791/2006-SG4-27.

The Temporary Insolvency Manager is:

         F. Kuleev
         Post User Box 87
         Kazan
         420029 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         OJSC Bolgarskaya Garment Factory
         Spasskiy region
         Bolgar
         Tatarstan Republic
         Russia


BRATSKOYE TIMBER: Court Names V. Trofimenko to Manage Assets
------------------------------------------------------------
The Arbitration Court of Irkutsk Region appointed Mr. V.
Trofimenko as Insolvency Manager for OJSC Bratskoye Timber-
Transport Enterprise (TIN 3803000187).  He can be reached at:

         V. Trofimenko
         Post User Box 920
         Bratsk-17
         665717 Irkutsk Region
         Russia

The Court will convene at 2:30 p.m. on Aug. 29, 2007, to hear
the bankruptcy supervision procedure.  The case is docketed
under Case No. A19-17148/06-49.

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         OJSC Bratskoye Timber-Transport Enterprise
         Yuzhnaya Str. 13-13
         Pokosnoye
         Bratskiy Region
         665740 Irkutsk Region
         Russia


CHERNOZEMYE OJSC: Court Names N. Postnikov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Orel Region appointed Mr. N. Postnikov
as Insolvency Manager for OJSC Aluminum of Chernozemye.  He can
be reached at:

         N. Postnikov
         Post User Box 94
         302025 Orel Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A48-3415/06-20b.

The Arbitration Court of Orel Region is located at:

         Gorkogo Str. 42
         302000 Orel Region
         Russia

The Debtor can be reached at:

         OJSC Aluminum of Chernozemye
         Stepana Razina Str. 3
         Orel Region
         Russia


DUBYAZSKIY BRICKWORKS: Court Starts Reorganization Process
----------------------------------------------------------
The Arbitration Court of Tatarstan Republic commenced external
management bankruptcy procedure on CJSC Dubyazskiy Brickworks.
The case is docketed under Case No. A65-42027/2005-SG4-27.

The External Insolvency Manager is:

         F. Safin
         Akademicheskaya Str. 2-212
         Kazan
         420097 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         CJSC Dubyazskiy Brickworks
         Vysokogorskiy Region
         Tatarstan Republic
         Russia


EVRAZ GROUP: Natexis Syndicates US$525-Million Credit Facilities
----------------------------------------------------------------
Evraz Group S.A. reveals that the group of the banks led by
Natexis Banques Populaires has successfully closed the
syndication of US$525 million of financings originally arranged
in May and July 2006 by Natexis Banques Populaires in favor of
Evraz Group SA and OAO Raspadskaya.

The Transaction was oversubscribed and was syndicated among 12
international banks:

   -- Calyon,
   -- Commerzbank (Eurasja) SAO,
   -- DZ Bank AG,
   -- ICICI Bank Eurasia LLC,
   -- ING Bank Eurasia (ZAO),
   -- KfW - IPEX BANK,
   -- Raiffeisenlandesbank Niederosterreich-Wien AG,
   -- San Paolo IMI S.p.A. London Branch,
   -- Societe Generale,
   -- VTB Bank Europe plc,
   -- The Shanghai Commercial and Savings Bank Ltd.
      Offshore Banking Branch, and
   -- ZAO Banca Intesa.

The Transaction is split between a US$225 million 5-year Term
Loan to the benefit of Evraz, to finance the purchase and the
consolidation of coal assets under Raspadskaya in May 2006, and
a US$300 million Bridge Facility in favour of Raspadskaya.

The Mandated Lead Arrangers are Bank of Tokyo-Mitsubishi UFJ
Ltd, BNP Paribas SA, Natexis Banques Populaires and Bank Natexis
ZAO and Sumitomo Mitsui Banking Corporation, all acting also as
Underwriters and Bookrunners. Natexis Banques Populaires and
Bank Natexis ZAO are also acting as Coordinating Mandated Lead
Arrangers and Natexis Banques Populaires as Facility Agent.

The one year Bridge Facility has a margin of 0.85% and is
guaranteed by Evraz. The Term Loan has a margin of 1.25% and a
5-year tenor with amortisation following an 18-month grace
period. It carries the guarantee of Mastercroft Ltd.

This Transaction is the first unsecured facility syndicated in
the Russian steel sector. It is also one of the largest steel
financings ever completed in the Russian Federation.

                         About Evraz

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

                        *     *     *

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

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

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


EVRAZ GROUP: Russia Unit Hikes Profit for Third Quarter 2006
------------------------------------------------------------
The major Russian operating subsidiaries of Evraz Group S.A.
have filed financial results with the Federal Financial Markets
Service of the Russian Federation for the three months ended
Sept. 30, 2006.  The results are prepared in accordance with
Russian accounting standards.

The major subsidiary companies include:

   -- OAO Nizhny Tagil Iron and Steel Plant (NTMK),

   -- OAO West Siberian Iron and Steel Plant (Zapsib),

   -- OAO Kachkanarsky Mining and Processing Integrated Works
      (KGOK),

   -- OAO Vysokogorsky Mining and Processing Integrated Works
      (VGOK)

                           Highlights

   -- Higher sales volumes and increased prices for steel
      products fuelled profit growth at NTMK and ZapSib;

   -- The net profit of NTMK and ZapSib for third quarter 2006
      went up 95.7% and 672.2% respectively vs. third quarter
      2005 as a result of increased sales volumes and stronger
      prices in the domestic and export markets while the
      increased costs for iron ore were partially offset by
      lower prices for coking coal year-on-year;

   -- ZapSib's outstanding results are particularly attributable
      to significant increase in slabs sales after commissioning
      of a slab caster in November 2005, and growth in
      construction products sales driven by robust demand in the
      Russian market;

   -- KGOK and VGOK net profit increase significantly due to
      strong prices.

   -- The two GOKs' third quarter 2006 net profits expanded more
      than fivefold due to higher prices and growing production
      volumes at KGOK.  The prices increased on average by 30-
      45% year-on-year and more than 10% vs. the previous
      quarter.

                         About Evraz

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

                        *     *     *

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

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

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


EVRAZ GROUP: Declares Interim Dividend for First Half 2006
----------------------------------------------------------
The Board of Directors of Evraz Group S.A. declared an interim
dividend for the first six months 2006 of US$1.95 per common
share, or US$0.65 per Global Depositary Receipt payable before
Feb. 15, 2007, to shareholders on the share register record date
of Nov. 14, 2006.

Holders of the Company's GDRs may contact The Bank of New York
as depositary for the related GDRs record date and payment date.

                         About Evraz

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

                        *     *     *

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

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

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


GAZPROM NEFT: S&P Places BB+ Rating on CreditWatch Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' corporate
credit rating and 'ruAA+' national scale rating on Russia-based
oil company JSC Gazprom Neft on CreditWatch with positive
implications.  

The action reflects Wednesday's placement of the parent OAO
Gazprom, on CreditWatch with positive implications as part of a
review of government influence on government-related entities in
Russia.

"The CreditWatch listing is expected to be resolved in
conjunction with that of its parent over the next several weeks
following reviews of the risks and benefits of links to the
Russian Federation, as well as other relevant credit quality
factors," Standard & Poor's credit analyst Rob Richards.

The current rating on Gazprom Neft is one-notch below the
parent.  Gazprom Neft is Gazprom's key strategic oil subsidiary
and is likely to be considered subject to cross default on
Gazprom's MTNs.  This increases Gazprom's economic incentive to
support the company if needed.  With its 76% stake, Gazprom has
full control over the company's management and strategy (25%
constitutes a blocking stake under Russian law).  

The difference between the corporate credit ratings on
Gazprom Neft and its parent reflects the lack of clarity
about the details of Gazprom's strategy in the oil business,
including whether Gazprom Neft will manage Gazprom's other oil
assets, and if so under what terms and whether it will be forced
to make substantial acquisitions (after the Udmurtneft bid
failed in 2006).  

Gazprom Neft currently operates with a high degree of autonomy
from other Gazprom assets.  Its debt is not guaranteed by the
parent, and it has substantial minority shareholders.  Defaulted
Russian oil company OAO NK Yukos owns a 20% stake in Gazprom
Neft; the status of this shareholding will depend on the Yukos
liquidation procedure.

"Resolution of the CreditWatch placements is likely to result in
the rating on Gazprom Neft being revised in parallel with that
of its parent in the absence of new differentiating factors that
come to light during the review," said Mr. Richards.


INTERNATIONAL TRADING: Names M. Vakhrameev to Manage Assets
-----------------------------------------------------------
The Arbitration Court of Yaroslavl Region appointed Mr. M.
Vakhrameev as Insolvency Manager for CJSC International Trading
Company.  He can be reached at:

         M. Vakhrameev
         Post User Box 42
         152935 Rybinsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A82-10997/06-30-B/448.

The Debtor can be reached at:

         CJSC International Trading Company
         Pyatnitskaya Str. 4
         Yaroslavl Region
         Russia


KALTUKSKIY DIARY: Irkutsk Bankruptcy Hearing Slated for Feb. 19
---------------------------------------------------------------
The Arbitration Court of Irkutsk Region will convene at 11:30
a.m. on Feb. 19, 2007, to hear the bankruptcy supervision
procedure on CJSC Kaltukskiy Diary (TIN 3823004253).  The case
is docketed under Case No. A19-18127/06-29.

The Temporary Insolvency Manager is:

         V. Safonov
         Post User Box 146
         664025 Irkutsk Region
         Russia

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         CJSC Kaltukskiy Diary
         Gagarina Str
         Kaltuk
         Bratskiy region
         665780 Irkutsk Region
         Russia


KHLEBNIKOVSKOYE CJSC: Court Names S. Sergejchuk to Manage Assets
----------------------------------------------------------------
The Arbitration Court of Kaliningrad Region appointed Mr. S.
Sergejchuk as Insolvency Manager for CJSC Khlebnikovskoye.  He
can be reached at:

         S. Sergejchuk
         Room 209
         Donskogo Str. 7/11
         Kaliningrad Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A21-1478/2006.

The Arbitration Court of Kaliningrad Region is located at:  

         Rokossovskogo Str. 2
         Kaliningrad Region
         Russia

The Debtor can be reached at:

         CJSC Khlebnikovskoye
         Khlebnikovskoye
         Krasnoznamenskiy Region
         Kaliningrad Region
         Russia

LIQUEUR-VODKA: Tyva Court Starts Bankruptcy Supervision
-------------------------------------------------------
The Arbitration Court of Tyva Republic commenced bankruptcy
supervision procedure on LLC Liqueur-Vodka Distillery.  The case
is docketed under Case No. A69-1723/06-2.

The Temporary Insolvency Manager is:

         S. Cherkasova
         K. Marksa Str. 21
         660049 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         LLC Liqueur-Vodka Distillery
         Rabochaya Str. 4
         Kyzyl
         667001 Tyva Republic
         Russia  


MINE DOLINSKAYA: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Arbitration Court of Sakhalin Region commenced bankruptcy
supervision procedure on LLC Mine Dolinskaya.  The case is
docketed under Case No. A59-2038/06-S4.

The Temporary Insolvency Manager is:

         L. Lazareva
         Post User Box 48
         693007 Yuzhno-Sakhalinsk 7
         Russia

The Arbitration Court of Sakhalin Region is located at:

         Kommunisticheskiy Pr. 24
         693020 Yuzhno-Sakhalinsk Region
         Russia

The Debtor can be reached at:

         LLC Mine Dolinskaya
         Vokzalnaya Str. 1
         Bykov
         Dolinskiy Region
         Sakhalin Region
         Russia


MOBILE TELESYSTEMS: Hikes Number of Subscribers to 68.53 Million
----------------------------------------------------------------
Mobile TeleSystems OJSC reveals that its consolidated subscriber
base reached 68.53 million users on October 31, 2006.

During October 2006, MTS' consolidated subscriber base increased
by 0.94 million subscribers, of which 0.23 million were added in
Russia.

   Subscribers          10/31/06     9/30/2006         Growth
   (Mln)                                            Subs     %
   -----------          --------     ---------      ----    ---       
   Total consolidated
      Subscribers       68.53        67.59          0.94    1.4%

   Russia               50.22        49.99          0.23    0.5%

   Moscow and the
      Moscow region     11.05        11.01          0.04    0.4%

   St. Petersburg and
      the Leningrad
      Region             2.70         2.69          0.01    0.4%

   Rest of Russia       36.46        36.29          0.17    0.5%

   Ukraine              16.92        16.36          0.56    3.4%

   Uzbekistan            1.24         1.09          0.15   13.2%

   Turkmenistan          0.15         0.14          0.01    6.3%

   MTS Belarus           2.98         2.89          0.09    3.0%

                    About Mobile TeleSystems

Headquartered in Moscow, Russia, Mobile TeleSystems OJSC --
http://www.mtsgsm.com/-- company provides global system for    
mobile communications technology-based mobile telecommunications
services in Russia, Belarus, Ukraine, Uzbekistan and
Turkmenistan.  Since June 2000, MTS' Level 3 ADRs have been
listed on the New York Stock Exchange (ticker symbol MBT).

As of Dec. 31, 2005, MTS had a working capital deficit of
US$631.6 million, compared with a US$189 million working capital
deficit at Dec. 31, 2004.

MTS is rated to BB-/outlook stable by S&P in and Ba3/outlook
stable by Moody's.


NATALI-INVEST: Court Names S. Suvorov as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Moscow appointed Mr. S. Suvorov as
Insolvency Manager for CJSC Natali-Invest.  He can be reached
at:

         S. Suvorov
         Post User Box 183
         127018 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-39445/06-101-691B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Natali-Invest
         Krymskiy Val 8
         Moscow Region
         Russia


NOVOSIBIRSKIY OJSC: Bankruptcy Hearing Slated for Jan. 29
---------------------------------------------------------
The Arbitration Court of Novosibirsk Region will convene on
Jan. 29, 2007, to hear the bankruptcy supervision procedure on
OJSC Breeding Poultry Farm Novosibirskiy.  The case is docketed
under Case No. A45-15837/06-54/431.

The Temporary Insolvency Manager is:

         A. Petrov
         Office 315
         Nemirovicha-Danchenko Str. 165
         630087 Novosibirsk Region
         Russia

The Arbitration Court of Novosibirsk Region is located at:

         Kirova Str. 3
         630007 Novosibirsk Region
         Russia

The Debtor can be reached at:

         OJSC Breeding Poultry Farm Novosibirskiy
         Post User Box 134
         Koltsova
         Novosibirsk Region
         Russia


OB'-OIL-GAS-STROY: Court Names V. Kravchenko to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Yamalo Nenetskiy Autonomous Region
appointed Mr. V. Kravchenko as Insolvency Manager for OJSC Ob'-
Oil-Gas-Story.  He can be reached at:

         V. Kravchenko
         Post User Box 696
         Main Post Office
         Respubliki Str. 56
         625000 Tyumen Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A81-313/2006.

The Arbitration Court of Yamalo-Nenetskiy Autonomous Region is
located at:

         Chubynina Str. 37A
         Salekhard
         Yamalo-Nenetskiy Autonomous Region
         Russia

The Debtor can be reached at:

         OJSC Ob'-Oil-Gas-Story
         Lenina Str. 31
         Noyabrsk
         Yamalo Nenetskiy Autonomous Region
         Russia


PETROVSKAYA FURNITURE: Names A. Gritsepanov to Manage Assets
------------------------------------------------------------
The Arbitration Court of Saratov Region appointed Mr. A.
Gritsepanov as Insolvency Manager for LLC Petrovskaya Furniture
Factory.  He can be reached at:

         A. Gritsepanov
         Beloglinskaya Str. 8a
         410028 Saratov Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-57-295B/05/31.

The Arbitration Court of Saratov Region is located at:

         Babushkin Vvoz 1
         Saratov Region
         Russia

The Debtor can be reached at:

         LLC Petrovskaya Furniture Factory
         Chapaeva Str. 56
         Petrovsk
         412540 Saratov Region
         Russia


PROGRESS-GARANT: Fitch Revises Outlook to Positive
--------------------------------------------------
Fitch Ratings revised Progress-Garant Insurance Company's
Outlook to Positive from Stable.  At the same time the agency
affirmed PG's International Insurer Financial Strength rating at
B- and its National IFS rating at BB+.

The Positive Outlook reflects Fitch's expectation that PG's
business mix will stabilize and the success of underwriting
controls will be demonstrated.  It also reflects the expectation
of ongoing capital strengthening resulting from retained
earnings and a partial revaluation of real-estate assets.

PG's ratings reflect the company's good operating performance,
increased portfolio diversification and committed management
team.  Offsetting factors include low, although improved,
capitalization by international standards, the challenges in
adhering to well-defined risk selection as the portfolio
develops, a limited franchise and high industry risks.

Fitch notes that the strong increase in business volumes and
ongoing diversification towards retail business and into the
regions outside Moscow will require a sound system of
underwriting controls.  

Although these have to some extent been evidenced already, PG's
focus on new distribution channels, particularly through banks
and car dealerships, will provide a further test for these
guidelines.  Premium growth has exceeded PG's own budgetary
expectations in 2005 and, particularly, in H106.

While a modest strengthening of the company's capital base might
be achieved through retained earnings and a partial revaluation
of real-estate assets, the company's shareholder structure, in
its current form, suggests further injections of capital are
unlikely should the need arise.  This is a factor that could
constrain the rating should business volumes continue to grow
significantly.

Alongside a 29% growth in gross written premiums, PG achieved an
excellent combined ratio of 95.1% in 2005, although the loss
ratio increased to 62.5% from 56.3%.  The business mix has been
changing significantly over 2005 and H106 with the motor hull
business accounting for 35% of GWP in H106.  The property
business has reduced its share of the portfolio to 11.6%.  Much
of this decline, however, relates to PG's reduction of business
to affiliates of Yukos Oil Company, a stated strategy of the
company.

PG was founded in 1994 by Yukos as the insurance company of the
Group.  Currently the company is one of the top 40 insurance
companies in the country with GWP in 2005 of RUR2.2 billion and
shareholders' funds of RUR748 million.  Its main lines of
business are personal insurance, fire and construction risks
insurance, cargo, and motor hull and liability, of which the
majority is written in the regions.  The company is owned 49% by
Lex-Casta Enterprises and 51% by Insurance Company Progress, a
fully owned subsidiary of PG.


ROS-RESOURCE: Court Names A. Kozhematov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. A.
Kozhematov as Insolvency Manager for CJSC Ros-Resource.  He can
be reached at:

         A. Kozhematov
         Post User Box 20647
         660017 Krasnoyarsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-15107/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Ros-Resource
         Pavlova Str. 11
         Krasnoyarsk Region
         Russia


RUSSIA CJSC: Novosibirsk Bankruptcy Hearing Slated for Feb. 12
--------------------------------------------------------------
The Arbitration Court of Novosibirsk Region will convene at 2:30
p.m. on Feb. 12, 2007, to hear the bankruptcy supervision
procedure on CJSC Russia.  The case is docketed under Case No.
A45-8564/06-48/93.

The Temporary Insolvency Manager is:

         I. Rak
         Room 62
         Kuybyshev
         Block 15, 20
         632382 Novosibirsk Region
         Russia

The Arbitration Court of Novosibirsk Region is located at:

         Kirova Str. 3
         630007 Novosibirsk Region
         Russia

The Debtor can be reached at:

         CJSC Russia
         Ostyatsk
         Severnyj Region
         632080 Novosibirsk Region
         Russia


RYZDVYANENSKIY COMBINE: Court Starts Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Stavropol Region commenced bankruptcy
supervision procedure on OJSC Ryzdvyanenskiy Combine of Grain
Products.  The case is docketed under Case No. A63-4925/06-S5.

The Temporary Insolvency Manager is:

         V. Shvayko
         Buynakskaya Str. 2/56
         Rostov-na-Donu
         Russia

The Arbitration Court of Stavropol Region is located at:

         Mira Str. 4586
         Stavropol Region
         Russia

The Debtor can be reached at:

         OJSC Ryzdvyanenskiy Combine of Grain Products
         Vostochnaya Str. 1A
         Ryzdvyanyj
         Izobilskiy Region
         Stavropol Region
         Russia


SEVERSTAL OAO: To Issue RUR2 Dividend for Third Quarter 2006
------------------------------------------------------------
The Board of Directors of OAO Severstal recommended a dividend
of RUR2, an equivalent of US$0.074 per share and per global
depositary receipt for the third quarter of 2006 with the record
date of Nov.16, 2006.  

Each GDR represents one share in the Company.  The GDRs are
admitted to trading on the London Stock Exchange.

The dividend, which is subject to shareholder approval, will be
voted on at the Company's EGM scheduled for Dec. 25, 2006.  If
approved, the dividend will result in an aggregate cash payment
to holders of ordinary shares and, through and subject to the
terms of the Company's depositary facility, holders of GDRs of
approximately US$70 million for the third quarter of 2006, which
should result in a total dividend payment of approximately
US$195 million for nine months of 2006, including approximately
US$125 million paid in the first half of this year.

The proposed dividend is in line with OAO Severstal's dividend
policy announced in 2003, under which it aims to pay as
dividends a minimum of 25% of net profits received by the end of
the reporting period, calculated according to IFRS.  The company
follows this policy according to the announced principles and
Russian corporate law regulations.

Following the expiration of shareholder pre-emptive rights, the
Board of Directors also set the price of the Company's 85
million newly issued ordinary shares at 332.74 rubles per share
for the open subscription, an equivalent of US$12.50 per share,
and at 322.81 rubles per share for shareholders exercising pre-
emption rights, an equivalent of US$12.10 per share.  The price
payable by shareholders exercising pre-emption rights is equal
to the price payable in the open subscription less the pro rata
per share amount of certain commissions, fees and other expenses
paid or incurred by shareholders in connection with the
Company's recent Global Offering of ordinary shares and GDRs.

According to Articles 40 and 41 of the Federal Law on Joint
Stock Companies, shareholders were granted pre-emptive rights to
purchase pro-rata to their existing shareholding in the Company
as at Sept. 14, 2006, -- the date of the meeting of the Board of
Directors of the Company where the decision to issue additional
shares was approved.

Frontdeal and other entities under the controlling shareholder's
control exercised in full their pre-emptive rights to subscribe
to newly issued shares.

                        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 around 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+.


SIBERIA FURS: Court Names S. Suvorov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Moscow appointed Mr. S. Suvorov as
Insolvency Manager for CJSC Siberia Furs.  He can be reached at:

         S. Suvorov
         Post User Box 183
         127018 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-35949/06-44-541B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Siberia Furs
         Krymskiy Val 8
         Moscow Region
         Russia


TAKUCHET-WOOD: Court Names I. Gorn as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. I.
Gorn as Insolvency Manager for CJSC Takuchet-Wood.  He can be
reached at:

         I. Gorn
         Post User Box 2513
         634045 Tomsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-9833/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Takuchet-Wood
         Gorkogo Str. 10
         Takuchet
         Boguchanskiy Region
         Krasnoyarsk Region
         Russia


TOTEMSKIY LLC: Vologda Bankruptcy Hearing Slated for Feb. 20
------------------------------------------------------------
The Arbitration Court of Vologda Region will convene at 11:00
a.m. on Feb. 20, 2007, to hear the bankruptcy supervision
procedure on LLC Flax Factory Totemskiy.  The case is docketed
under Case No. A13-7301/2006-22.

The Temporary Insolvency Manager is:

         A. Novitskiy
         Post User Box 34
         160009 Vologda Region
         Russia

The Arbitration Court of Vologda Region is located at:

         Hall 4
         Gertsena Str. 1a
         Vologda Region
         Russia

The Debtor can be reached at:

         LLC Flax Factory Totemskiy
         Tot'ma
         Vologda Region
         Russia


TUVA-GRAIN-PRODUCT: Court Names S. Cherkasova to Manage Assets
--------------------------------------------------------------
The Arbitration Court Tyva Republic appointed Ms. S. Cherkasova
as Insolvency Manager for OJSC Tuva-Grain-Product.  She can be
reached at:

         S. Cherkasova
         K. Marksa Str. 21
         660049 Krasnoyarsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-69-816/06-9.

The Debtor can be reached at:

         S. Cherkasova
         K. Marksa Str. 21
         660049 Krasnoyarsk Region
         Russia


TRANS-CONTAINER: Court Names E. Eliseeva as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Moscow appointed Ms. E. Eliseeva as
Insolvency Manager for CJSC Trans-Container.  She can be reached
at:

         E. Eliseeva
         Orlovskiy Per. 5
         129110 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-31484/06-71-577B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         E. Eliseeva
         Orlovskiy Per. 5
         129110 Moscow Region
         Russia


VOZROZHDENIYE OJSC: Kurgan Court Starts Bankruptcy Supervision
--------------------------------------------------------------
The Arbitration Court of Kurgan Region commenced bankruptcy
supervision procedure on OJSC Vozrozhdeniye.  The case is
docketed under Case No. A 34-4900/2006.

The Temporary Insolvency Manager is:

         N. Chuvakova
         Vikulova Str. 63/1-43
         620043 Ekaterinburg Region
         Russia

The Debtor can be reached at:

         OJSC Vozrozhdeniye
         Voskhod
         Mishkinskiy Region
         641072 Kurgan Region
         Russia


VORONTSOVSKOYE CJSC: Court Starts Reorganization Process
--------------------------------------------------------
The Arbitration Court of Krasnodar Region has commenced external
management bankruptcy procedure on CJSC Vorontsovskoye.  The
case is docketed under Case No. A-32-37-3723/2006-37/31-B.

The External Insolvency Manager is:

         O. Gurov
         Post User Box 47/47
         350012 Krasnodar-12
         Russia  

The Arbitration Court of Krasnodar Region is located at:

         Krasnaya Str. 6
         Krasnodar Region
         Russia

The Debtor can be reached at:

         CJSC Vorontsovskoye
         Pushkina Str. 20
         Vorontsovskaya St.
         Dinskoy region
         Krasnodar region
         Russia


VITAMIN CJSC: Court Names S. Suvorov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Moscow appointed Mr. S. Suvorov as
Insolvency Manager for CJSC Company Vitamin.  He can be reached
at:

         S. Suvorov
         Post User Box 183
         127018 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-37621/06-103-763B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Company Vitamin
         Krymskiy Val 8
         Moscow Region
         Russia


YUKOS OIL: Debt Claims Rise to US$23.6 Billion After Court Order
----------------------------------------------------------------
OAO Yukos Oil Co. is facing an increase in debt claims against
the company after the Moscow Arbitration Court upheld additional
back-tax and corporate claims last week, RIA Novosti reports.

Yukos is now ordered to pay US$23.6 billion, including the
US$1.6 billion (RUR42.04 billion) increase recently approved by
the arbitration court.

According to the Russian news and information service, the court
ordered what was once Russia's largest oil producer to include
the Federal Tax Service's claim of RUR42 billion (US$1.58
billion), along with claims from three oil companies:

   -- Ulyanovsknefteprodukt (RUR21.7 million/US$814,000),    
   -- Tomsknefteprodukt (RUR41.6 million/US$1.6 million), and
   -- Ecoproekt (RUR6.2 million/US$233,000).

Up to US$22 billion (RUR586.6 billion) in claims have been
asserted against Yukos Oil as of Nov. 2.  However, the list of
creditors, originally numbering at 54, has now expanded to more
than 60 registered creditors.

Yukos is facing another RUR42.8 million (US$1.6 billion) in debt
claims, including RUR38 billion (US$1.43 billion) from the
Federal Tax Service.  The court has postponed the hearings for
these claims until Dec. 25.

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


BANKA CELJE: Fitch Keeps Individual Rating at C
-----------------------------------------------
Fitch Ratings affirmed Banka Celje's ratings at Issuer Default
BBB, Short-term F3, Support 3, and Individual C.  The Outlooks
remains Stable.

The ratings of BC reflect its established regional franchise,
adequate capitalization and sound asset quality, supported by a
stable operating environment.  They also take into account BC's
small size, concentration risk and moderate profitability.  
Given BC's importance to the regional economy of Celje, Fitch
considers that there is a moderate probability that support
would be forthcoming from the authorities, if ever required.

"BC's stable but moderate profitability in a competitive
environment is a positive," Sabine Bauer, Associate Director in
Fitch's Financial Institutions team disclosed.

"However, upside potential to BC's ratings is currently limited
given the bank's small size and the uncertainty regarding Nova
Ljubljanska Banka's future involvement with BC in case they are
not allowed to gain control of the bank," she added.

Downside risk could occur if BC fails to respond to any
increasing competition eroding its franchise, putting its
profitability under pressure.

Nova Ljubljanska Banka, the largest bank in Slovenia, owned
49.4% of BC's voting rights at end-September 2006, which is
slightly under the 49.9% approved by Slovenia's central bank for
purchase.  BC sells some Nova Ljubljanska Banka's products,
partly shares its risk management procedures and its IT
framework.

BC was the seventh-largest Slovenian bank by total assets at
end-2005, with a 5.9% share of national banking sector assets.
It is a universal regional bank in the Celje region and its main
business is retail and corporate lending/deposit-taking.  At
end-June 2006, BC had 36 outlets and employed 637 staff.


* Moody's Reports Stable Outlook for Slovenian Banks
----------------------------------------------------
Slovenian banks' financial strength ratings reflect the
country's stable and resilient operating and banking
environment, its competent regulatory environment and the rated
banks' relatively strong and defensible franchises, says Moody's
Investors Service in a recently published Banking System Outlook
for Slovenia.

Over recent years, the country's leading banks have taken
advantage of the strong macroeconomic conditions (demonstrated
by high and steady GDP growth, EU entrance and the upcoming
adoption of the euro) and improved banking supervision that has
converged to western banking practices.  "This, combined with IT
and risk management system improvements and the rated banks'
efforts to diversify their revenue streams has so far seen them
managing to defend their franchises," says Constantinos Kypreos,
a Moody's Analyst and author of the new report.

Nonetheless, increased competition from foreign banks that seem
prepared to under-price products to win market share while
benefiting from cheap funding from their parent banks, poses a
major challenge.  Moody's notes that interest rate convergence,
ahead of EMU accession, has also exacerbated the downward
pressure on interest margins.

The banks' financial metrics remain moderate.  The 2005 pre-tax
profits increased by 13%, but profitability indicators remain
affected by declining interest margins and a relatively high
cost base.  "Going forward, we expect only moderate earnings
growth, as margin pressure will remain (albeit milder), while
January 2007 EMU accession will affect non-interest income, and
specifically foreign exchange-related income," Kypreos adds.

The banking system has an overall acceptable asset quality that
does not pose any significant credit threat, with non-performing
loans covered by provision reserves.  Moody's notes that
liquidity levels and funding remain comfortable, but not as
favorable as in previous years, given the slow growth in
customer deposits, increased dependence on interbank funding
sources and mismatches in the maturity profile of assets and
liabilities.  The banking system's capitalization is adequate
(with a capital adequacy ratio of 10.6%) and, although on a
declining trend, is likely to improve as the introduction of the
euro will reduce the capital requirements for foreign exchange
risk.

All four banks rated by Moody's have deposit ratings higher than
those inferred by their financial strength ratings, based on
their "too-important-to fail" characteristics (given that they
are the four largest banks in Slovenia) and strong shareholders,
with the Slovenian government directly and indirectly owning a
100% stake in NKBM, 45% in NLB, and 42% in Abanka Vipa, while
Societe Generale has a 99.6% stake in SKB Banka.  All ratings
carry a stable outlook.


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


VALENCIA HIPOTECARIO: Moody's Junks EUR10.4-Mln Series D Notes
--------------------------------------------------------------
Moody's Investors Service assigned definitive credit ratings to
five series of "Bonos de Titulizacion de Activos" issued by
VALENCIA HIPOTECARIO 3 Fondo de Titulizacion de Activos, a
Spanish Asset Securitisation Fund that has been created by
Europea de Titulizacion, S.G.F.T, S.A.

Ratings assigned:

   -- EUR90 million Series A1 notes: Aaa;
   -- EUR780.7 million Series A2 notes: Aaa;
   -- EUR20.8 million Series B notes: A2;
   -- EUR9.1 million Series C notes: Baa3; and
   -- EUR10.4 million Series D notes: Ca.

Moody's definitive ratings address the expected loss posed to
investors by the legal final maturity.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the rated final legal
maturity date on Series A1/A2/B/C, and for ultimate payment of
interest and principal at par on or before the rated final legal
maturity date on Class D.  The ratings do not address full
redemption of the notes on the expected maturity date.  Moody's
ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.

Valencia Hipotecario 3 Fondo de Titulizacion de Activos is the
third securitization by Banco de Valencia.

Strong features within this deal include among others:

   (1) a Basis swap agreement guaranteed by Banco de
       Valencia,

   (2) a fully funded Reserve Fund to cover potential
       shortfall in interest and principal,

   (3) an 18-month artificial write-off mechanism, and

   (4) the fact that 100% of loans are secured by
       first lien residential mortgages.

Weaker features include:

   (1) limited excess spread, and

   (2) strong concentration in the region of Valencia (63.70%).

As of October 2006, the portfolio comprised 10,432 loans,
representing a provisional portfolio of EUR984,552,228.  The
loans have been contracted to individuals located in Spain.  The
loans consist of first-lien mortgages on residential properties.
All the properties on which the mortgage security has been
granted are covered by property damage and fire insurance.  At
closing date there are no loans in arrears.  The loans were
originated between 1996 and 2006, with a weighted average
seasoning of 1.95 years and a weighted average remaining
maturity of 21.99 Years.  Almost all the loans paid via monthly
installments, which are debited to accounts held by the debtors
at Banco de Valencia.  Moody's views this feature as a positive
characteristic since delinquencies are likely to be tracked more
easily.

Moody's based its rating on:

   (1) a evaluation of the underlying portfolio of
       mortgage loans securing the structure, and on

   (2) the transaction's structural protections which
       include the subordinate position of the Series B and
       C Subordinate notes with respect to the Series A1
       and A2 notes, the strength of the cash flows,
       which include the reserve fund and any excess
       spread available to cover losses.


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


ALBARAKA TURK: Fitch Keeps Foreign Currency Default Rating at B
---------------------------------------------------------------
Fitch Ratings affirmed Albaraka Turk Katilim Bankasi A.S.'s
foreign currency Issuer Default rating at B.  

At the same time, the agency has affirmed Albaraka Turk's other
ratings at local currency IDR B, Short-term foreign and local
currency B, Individual D, Support 5, and National Long-term BBB.  
The Outlooks on the IDRs and National rating are Stable.

The ratings of Albaraka Turk reflect its improved asset quality,
stable funding and adequate profitability.  These factors are
balanced by the bank's weaker capital and liquidity as well as
the bank's small size within the Turkish financial system.

Operating profits improved during 2005 and H106 due to better
revenue generation and lower impairment provisions.  Earnings
were negatively affected by shrinking margins and cost pressures
but were ahead of plan.  Non-performing loans improved to 2.05%
of the portfolio at end-2005 from 4.02% at end-2004 with reserve
coverage growing to a comfortable 107%.

Because of robust balance sheet expansion, the bank's Tier 1
capital ratio diminished to 12.50% at end-2005 from 13.47% at
end-2004.  Albaraka Turk has plans to announce an initial public
offering in 2006 or 2007 should market conditions be favorable.

Albaraka Turk is the fourth-largest participation bank in Turkey
with a market share of approximately 20% among participation
banks.  The bank offers corporate and retail finance, leasing
and international banking services.  Albaraka Turk is 68%-owned
by Albaraka Banking Group, a financial holding company based in
Bahrain with affiliate banks throughout the Middle East.  As a
participation bank, it does not pay or accept interest.


GENERAL NUTRITION: Parent Prices US$425 Million Senior Notes
------------------------------------------------------------
GNC Parent Corporation disclosed of the pricing of its offering
of US$425 million in aggregate principal amount of floating rate
senior PIK notes due 2011.  

The Notes will bear interest, payable and reset semiannually, at
a rate per annum equal to six- month LIBOR plus 6.75%.  Interest
will be payable in the form of additional notes.

The Notes will be senior unsecured obligations of GNC.  The
proceeds from the sale of the Notes, together with cash on hand,
will be used to:

   -- redeem the outstanding Series A preferred stock of GNC
      Corporation, a wholly owned subsidiary of GNC;

   -- repay a portion of the indebtedness of General
      Nutrition Centers, Inc., a wholly owned subsidiary of GNC
      Corporation, under Centers' senior term loan facility;

   -- pay a dividend to the common stockholders of GNC; and
      to pay transaction-related fees and expenses.

The Notes offering will be made solely by means of a private
placement either to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended or to
persons outside the United States under Regulation S of the
Securities Act and to an entity that is an accredited investor.

The Notes have not been registered under the Securities Act and,
unless so registered, may not be offered or sold in the United
States absent registration or an applicable exemption from, or
in a transaction not subject to, the registration requirements
of the Securities Act and other applicable securities laws.

Headquartered in Pittsburgh, Pennsylvania, General Nutrition
Centers, Inc. -- http://www.gnc.com/-- a wholly owned
subsidiary of GNC Corp, is the largest global specialty retailer
of nutritional products; including vitamin, mineral, herbal and
other specialty supplements and sports nutrition, diet and
energy products.  GNC has more than 4,800 retail locations
throughout the United States and franchise operations in 46
international markets including Turkey, Ukraine, Australia,
Colombia, Singapore, among others.

                        *    *    *

As reported in the TCR-Europe on Nov. 10, Moody's Investors
service assigned a Caa1 (LGD 5, 87%) rating to GNC Parent
Corporation's proposed US$325 million note issue.  GNC Parent
Corp. ultimately owns General Nutrition Centers, Inc.

Moody's also affirmed the secured bank loan rating and corporate
family rating at Ba2 and the B2, respectively.  Per Moody's loss
given default methodology and the capital structure change, the
senior notes and senior subordinated notes were upgraded to Ba3
and B3, respectively.

As reported in the TCR-Europe on Nov. 8, Standard & Poor's
Ratings Services placed its ratings on General Nutrition Centers
Inc., including the 'B' corporate credit rating, on CreditWatch
with developing implications.

"The placement follows news that GNC is evaluating alternatives
that include a possible sale of the company or an IPO," said
Standard & Poor's credit analyst Jackie Oberoi.

Standard & Poor's also assigned its 'CCC+' rating on Pittsburgh,
Pa.-based GNC Parent Corporation's (a newly formed holding
company that controls GNC) US$325 million payment-in-kind (PIK)
notes, due 2011.  The rating was placed on CreditWatch
Developing.  Given the expected use of proceeds from the PIK
notes, the existing ratings on GNC's senior unsecured notes and
bank facility may be raised.


GENERAL NUTRITION: Moody's Junks US$425 Million Note Issue
----------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of GNC Parent Corp. to B3 and the US$425 million holding company
note issue to Caa2 (LGD5, 84%).  

GNC Parent Corp. ultimately owns General Nutrition Centers, Inc.  
Proceeds from the new debt principally will be used to retire
its PIK preferred stock for US$149 million and to pay a US$287
million dividend.  Relative to the prior capital structure that
was rated on November 8, the holding company note issue was
upsized to US$425 million from US$325 million and the dividend
was also increased.  

The downgrade of the corporate family rating was prompted by
Moody's opinion that the incremental debt will cause financial
flexibility to materially weaken.  In addition to issuance of
these holding company notes, the company also has announced that
it is exploring strategic alternatives such as a sale of the
company or an initial public offering.

Ratings lowered:

    * Corporate family rating to B3 from B2;

    * Probability of Default Rating to B3 from B2;

    * Senior secured bank loan to Ba3 (LGD1, 4%) from Ba2;

    * US$150 million of 8.625% senior notes (2011)
      to B1 (LGD2, 25%) from Ba3; and

    * US$425 million notes issued by GNC Parent Corp.
      to Caa2 (LGD5, 84%) from Caa1.

Rating affirmed:

    * US$215 million of 8.5% senior subordinated notes (2010)
      at B3 (LGD4, 56%).

Moody's has downgraded and reassigned the ratings from
General Nutrition Centers, Inc. to GNC Parent Corp. in order to
regularize Moody's ratings.

GNC's corporate family rating of B3 balances the company's
aggressive financial policy, weak credit metrics, and revenue
vulnerability to new product introductions against certain
qualitative aspects that have low investment grade or high non-
investment characteristics.  Weighing down the overall rating
with B characteristics are the company's shareholder enhancement
policy and credit metrics that have remained weak since the
November 2003 leveraged buyout.

The ongoing challenges in matching changes in consumer
preferences for VMS products also constrain the ratings.  The
company's geographic diversification and the relative lack of
cash flow seasonality have solidly investment grade scores,
while the company's scale and widespread consumer recognition of
the GNC name in the intensely competitive segment of vitamin,
mineral, and nutritional supplement retailing have Ba scores.

The stable rating outlook recognizes that the recent negative
trends in sales and operating profit have turned positive, and
that most proforma credit metrics are appropriate for a B rated
credit.  Moody's expects that, while future free cash flow will
be small relative to total debt, a large portion of future
discretionary cash flow will be applied to balance sheet
improvement.  

A permanent decline in cash balances or revolving credit
facility availability that would result if free cash flow fell
below break-even, a return to declining store-level operating
performance, or another sizable shareholder enhancement activity
would cause the ratings to be lowered.  Given the sizable
contribution to operating profit from franchise royalties,
difficulties or closure of many franchisees also would
negatively impact the ratings.  Specifically, debt to EBITDA
close to 7 times, EBIT to interest expense below 1 time, or
negative free cash flow to debt would cause ratings to be
lowered.

In the near term, a rating upgrade is unlikely.  Ratings could
eventually move upward if the company establishes a long-term
track record of sales stability and improved margins, the system
expands both from new store development (particularly in
international markets) and existing store performance, and if
financial flexibility were to sustainably strengthen such that
EBIT coverage of interest expense approaches 1.5 times, leverage
falls toward 5.5 times, and Free Cash to Debt consistently
exceeds 3%.

General Nutrition Centers, Inc., with headquarters in
Pittsburgh, Pennsylvania, retails and manufactures vitamins,
minerals, and nutritional supplements (VMS) domestically and
internationally through about 5850 company operated and
franchised stores (including about 1200 store-within-a-store
locations at Rite Aid drug stores).  Revenue for the 12 months
ending September 2006 approached US$1.5 billion.


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


ALERIS INTERNATIONAL: Posts US$24.2 Mln Net Loss in Third Qtr.
--------------------------------------------------------------
Aleris International Inc. reported a US$24.2 million net loss on
US$1.4 billion of revenues for the third quarter ended Sept. 30,
2006, compared with a US$31.5 million of net income earned on
US$554.9 million of revenues for the same period in 2005.

Consolidated revenues for the three months ended Sept. 30, 2006
increased US$840.1 million as compared to the three months ended
Sept. 30, 2005.  The acquired operations of Corus Aluminum,
ALSCO, Tomra Latasa, Alumitech and the acquired assets of Ormet
accounted for an estimated US$578.5 million of this increase.  
The impact of rising primary aluminum prices and higher shipment
levels were partially offset, however, by slightly lower rolling
margins.

At Sept. 30, 2006, the company's balance sheet showed US$3.3
billion in total assets, US$2.8 billion in total liabilities,
and US$452.8 million in total stockholders' equity.

Full-text copies of the company's third quarter financial
statements are available for free at:

                  http://researcharchives.com/t/s?14f3
                                  
Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures    
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.  

On Aug. 1, 2006, the company acquired the aluminum business of
Corus Group plc for a cash purchase price of approximately
US$885.7 million.  The acquisition included Corus Group plc's
aluminum rolling and extrusions business but did not include
Corus's primary aluminum smelters.

Along with company's aluminum recycling operations in Germany,
the United Kingdom, Mexico and Brazil and magnesium recycling
operations in Germany and the Netherlands, with the Corus
Aluminum acquisition, the company now has rolled products and
extrusions operations in Germany, Belgium, Canada and China. In
addition, the company is in the process of constructing a zinc
recycling facility in China.

                    *      *      *

As reported in the Troubled Company Reporter-Europe on Oct. 17,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for Aleris International, Inc. and its Ba3 rating on the
company's US$400 million issue of senior secured term loan, in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology.  Moody's
also assigned an LGD3 rating to those loans, suggesting
noteholders will experience a 32% loss in the event of a
default.  


ALFA BANK: Moody's Assigns B1 Rating to UAH200-Mln Bond Issue
-------------------------------------------------------------
Moody's Investors Service Inc. has updated its press release as
of Sept. 13 to reflect the increased volume of the upcoming
issue of local Hryvnia denominated bonds of Alfa Bank Ukraine.  

ABU has taken a decision to increase the volume of the issue to
UAH200 million (approximately US$40 million) from the UAH150
million initially planned.

On Sept. 13, Moody's assigned a B1 global local currency
long-term senior unsecured debt rating as well as an Aa2.ua
long-term National Scale Rating to the local currency- (hryvnia)
denominated bonds to be issued by Alfa Bank Ukraine, which will
represent a senior unsecured claim on the bank.  The outlook for
the global rating is stable, while the NSR carries no specific
outlook.

Headquartered in Kiev (Ukraine), ABU reported total IFRS assets
of US$422 million as at year-end 2005 and net loss of US$1.9 for
the year 2005.

                    National Scale Ratings

Moody's National Scale Ratings are intended as relative measures
of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks.  NSRs in Ukraine are designated by the ".ua"
suffix. NSRs differ from global scale ratings, as assigned by
Moody's Investors Service, Inc., in that they are not globally
comparable to the full universe of Moody's rated entities, but
only with other rated entities within the same country.


ASSOCIATION SHAMBALA: Court Names Volodimir Derbin as Liquidator
----------------------------------------------------------------
The Economic Court of AR Krym Region appointed Volodimir Derbin
as Liquidator/Insolvency Manager for Business Programs
Association Shambala (code EDRPOU 01274047).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 19.  The case is docketed
under Case No. 2-3/14186-2006.

The Economic Court of AR Krym Region is located at:

         Karl Marks Str. 18
         Simferopol
         95000 AR Krym Region
         Ukraine

The Debtor can be reached at:

         Business Programs Association Shambala
         Kiyivska Str. 125a
         Simferopol
         95000 AR Krym Region
         Ukraine


AQUAVITAS LLC: Court Names Podilskij Tax Agency as Liquidator
-------------------------------------------------------------
The Economic Court of Kyiv Region appointed the State Tax
Inspection of Podilskij District of Kyiv Region as Liquidator
for LLC Aquavitas (code EDRPOU 31813674).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 14.  The case is docketed
under Case No. 15/439-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         Turovska Str. 12
         04080 Kyiv Region
         Ukraine
         Tel: (044) 417-52-05


BOLDEKO ENGINEERING: Court Names S. Statetskij as Liquidator
------------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Statetskij as
Liquidator/Insolvency Manager for LLC Boldeko Engineering (code
EDRPOU 30215491).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
43/175.

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 Boldeko Engineering
         Office 204/4
         Strokach Str. 6
         03148 Kyiv Region
         Ukraine


INTERPROMEKO LLC: Court Names Viktor Savinov as Liquidator
----------------------------------------------------------
The Economic Court of Kyiv Region appointed Viktor Savinov as
Liquidator/Insolvency Manager for LLC Interpromeko (code EDRPOU
33783940).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 19.  The case is docketed
under Case No. 23/356-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Interpromeko
         Patris Lumumba Str. 15
         Kyiv Region
         Ukraine


KONTINENT LLC: Court Names S. Kitsul as Insolvency Manager
----------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Kitsul as
Liquidator/Insolvency Manager for LLC Kontinent (code EDRPOU
30855451).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 26.  The case is docketed
under Case No. 15/346-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Kontinent
         Vozzyednannya Avenue 15/812
         02160 Kyiv Region
         Ukraine


MOBILE TELESYSTEMS: Hikes Number of Subscribers to 68.53 Million
----------------------------------------------------------------
Mobile TeleSystems OJSC reveals that its consolidated subscriber
base reached 68.53 million users on October 31, 2006.

During October 2006, MTS' consolidated subscriber base increased
by 0.94 million subscribers, of which 0.23 million were added in
Russia.

   Subscribers          10/31/06     9/30/2006         Growth
   (Mln)                                            Subs     %
   -----------          --------     ---------      ----    ---       
   Total consolidated
      Subscribers       68.53        67.59          0.94    1.4%

   Russia               50.22        49.99          0.23    0.5%

   Moscow and the
      Moscow region     11.05        11.01          0.04    0.4%

   St. Petersburg and
      the Leningrad
      Region             2.70         2.69          0.01    0.4%

   Rest of Russia       36.46        36.29          0.17    0.5%

   Ukraine              16.92        16.36          0.56    3.4%

   Uzbekistan            1.24         1.09          0.15   13.2%

   Turkmenistan          0.15         0.14          0.01    6.3%

   MTS Belarus           2.98         2.89          0.09    3.0%

                    About Mobile TeleSystems

Headquartered in Moscow, Russia, Mobile TeleSystems OJSC --
http://www.mtsgsm.com/-- company provides global system for    
mobile communications technology-based mobile telecommunications
services in Russia, Belarus, Ukraine, Uzbekistan and
Turkmenistan.  Since June 2000, MTS' Level 3 ADRs have been
listed on the New York Stock Exchange (ticker symbol MBT).

As of Dec. 31, 2005, MTS had a working capital deficit of
US$631.6 million, compared with a US$189 million working capital
deficit at Dec. 31, 2004.

MTS is rated to BB-/outlook stable by S&P in and Ba3/outlook
stable by Moody's.


POLTAVA-NHS-AUTO: Poltava Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Economic Court of Poltava Region commenced bankruptcy
supervision procedure on Poltava-NHS-Auto (code EDRPOU
31967192).  The case is docketed under Case No. 18/285.

The Temporary Insolvency Manager is:

         Oleksandr Tereshenko
         Poltava Region Ukraine Nezalezhnosti Square 1 b/11
         
The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         Poltava-NHS-Auto
         Kovpak Str. 57-A
         36007 Poltava Region
         Ukraine


SBS PRODUCTION-COMMERCIAL: Olga Moroz to Liquidate Assets
---------------------------------------------------------
The Economic Court of Volinska Region appointed for Production-
Commercial Firm SBS (code EDRPOU 25091506).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 29.  The case is docketed
under Case No. 4/102-B.

The Economic Court of Volinska Region is located at:

         Voli Avenue 54-a
         43010 Lutsk
         Volinska Region
         Ukraine

The Debtor can be reached at:

         Production-Commercial Firm SBS
         Stara Vizhivka, Budivelnikiv Str. 22
         Volinska Region
         Ukraine


SOUTH-EAST TRADE-INDUSTRIAL: Sergij Chalapluk to Manage Assets
--------------------------------------------------------------
The Economic Court of Zaporizhya Region appointed Sergij
Chalapluk as Liquidator/Insolvency Manager for LLC South-East
Trade-Industrial Company (code EDRPOU 32551296).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Sept. 27.  The case is docketed
under Case No. 25/162/06.

The Economic Court of Zaporizhya Region is located at:

         Shaumyana Str. 4
         69001 Zaporizhya Region
         Ukraine

The Debtor can be reached at:

         LLC South-East Trade-Industrial Company
         Velikoluzka Str. 30
         69096 Zaporizhya Region
         Ukraine


GENERAL NUTRITION: Parent Prices US$425 Million Senior Notes
------------------------------------------------------------
GNC Parent Corporation disclosed of the pricing of its offering
of US$425 million in aggregate principal amount of floating rate
senior PIK notes due 2011.  

The Notes will bear interest, payable and reset semiannually, at
a rate per annum equal to six- month LIBOR plus 6.75%.  Interest
will be payable in the form of additional notes.

The Notes will be senior unsecured obligations of GNC.  The
proceeds from the sale of the Notes, together with cash on hand,
will be used to:

   -- redeem the outstanding Series A preferred stock of GNC
      Corporation, a wholly owned subsidiary of GNC;

   -- repay a portion of the indebtedness of General
      Nutrition Centers, Inc., a wholly owned subsidiary of GNC
      Corporation, under Centers' senior term loan facility;

   -- pay a dividend to the common stockholders of GNC; and
      to pay transaction-related fees and expenses.

The Notes offering will be made solely by means of a private
placement either to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended or to
persons outside the United States under Regulation S of the
Securities Act and to an entity that is an accredited investor.

The Notes have not been registered under the Securities Act and,
unless so registered, may not be offered or sold in the United
States absent registration or an applicable exemption from, or
in a transaction not subject to, the registration requirements
of the Securities Act and other applicable securities laws.

Headquartered in Pittsburgh, Pennsylvania, General Nutrition
Centers, Inc. -- http://www.gnc.com/-- a wholly owned
subsidiary of GNC Corp, is the largest global specialty retailer
of nutritional products; including vitamin, mineral, herbal and
other specialty supplements and sports nutrition, diet and
energy products.  GNC has more than 4,800 retail locations
throughout the United States and franchise operations in 46
international markets including Turkey, Ukraine, Australia,
Colombia, Singapore, among others.

                        *    *    *

As reported in the TCR-Europe on Nov. 10, Moody's Investors
service assigned a Caa1 (LGD 5, 87%) rating to GNC Parent
Corporation's proposed US$325 million note issue.  GNC Parent
Corp. ultimately owns General Nutrition Centers, Inc.

Moody's also affirmed the secured bank loan rating and corporate
family rating at Ba2 and the B2, respectively.  Per Moody's loss
given default methodology and the capital structure change, the
senior notes and senior subordinated notes were upgraded to Ba3
and B3, respectively.

As reported in the TCR-Europe on Nov. 8, Standard & Poor's
Ratings Services placed its ratings on General Nutrition Centers
Inc., including the 'B' corporate credit rating, on CreditWatch
with developing implications.

"The placement follows news that GNC is evaluating alternatives
that include a possible sale of the company or an IPO," said
Standard & Poor's credit analyst Jackie Oberoi.

Standard & Poor's also assigned its 'CCC+' rating on Pittsburgh,
Pa.-based GNC Parent Corporation's (a newly formed holding
company that controls GNC) US$325 million payment-in-kind (PIK)
notes, due 2011.  The rating was placed on CreditWatch
Developing.  Given the expected use of proceeds from the PIK
notes, the existing ratings on GNC's senior unsecured notes and
bank facility may be raised.


GENERAL NUTRITION: Moody's Junks US$425 Million Note Issue
----------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of GNC Parent Corp. to B3 and the US$425 million holding company
note issue to Caa2 (LGD5, 84%).  

GNC Parent Corp. ultimately owns General Nutrition Centers, Inc.  
Proceeds from the new debt principally will be used to retire
its PIK preferred stock for US$149 million and to pay a US$287
million dividend.  Relative to the prior capital structure that
was rated on November 8, the holding company note issue was
upsized to US$425 million from US$325 million and the dividend
was also increased.  

The downgrade of the corporate family rating was prompted by
Moody's opinion that the incremental debt will cause financial
flexibility to materially weaken.  In addition to issuance of
these holding company notes, the company also has announced that
it is exploring strategic alternatives such as a sale of the
company or an initial public offering.

Ratings lowered:

    * Corporate family rating to B3 from B2;

    * Probability of Default Rating to B3 from B2;

    * Senior secured bank loan to Ba3 (LGD1, 4%) from Ba2;

    * US$150 million of 8.625% senior notes (2011)
      to B1 (LGD2, 25%) from Ba3; and

    * US$425 million notes issued by GNC Parent Corp.
      to Caa2 (LGD5, 84%) from Caa1.

Rating affirmed:

    * US$215 million of 8.5% senior subordinated notes (2010)
      at B3 (LGD4, 56%).

Moody's has downgraded and reassigned the ratings from
General Nutrition Centers, Inc. to GNC Parent Corp. in order to
regularize Moody's ratings.

GNC's corporate family rating of B3 balances the company's
aggressive financial policy, weak credit metrics, and revenue
vulnerability to new product introductions against certain
qualitative aspects that have low investment grade or high non-
investment characteristics.  Weighing down the overall rating
with B characteristics are the company's shareholder enhancement
policy and credit metrics that have remained weak since the
November 2003 leveraged buyout.

The ongoing challenges in matching changes in consumer
preferences for VMS products also constrain the ratings.  The
company's geographic diversification and the relative lack of
cash flow seasonality have solidly investment grade scores,
while the company's scale and widespread consumer recognition of
the GNC name in the intensely competitive segment of vitamin,
mineral, and nutritional supplement retailing have Ba scores.

The stable rating outlook recognizes that the recent negative
trends in sales and operating profit have turned positive, and
that most proforma credit metrics are appropriate for a B rated
credit.  Moody's expects that, while future free cash flow will
be small relative to total debt, a large portion of future
discretionary cash flow will be applied to balance sheet
improvement.  

A permanent decline in cash balances or revolving credit
facility availability that would result if free cash flow fell
below break-even, a return to declining store-level operating
performance, or another sizable shareholder enhancement activity
would cause the ratings to be lowered.  Given the sizable
contribution to operating profit from franchise royalties,
difficulties or closure of many franchisees also would
negatively impact the ratings.  Specifically, debt to EBITDA
close to 7 times, EBIT to interest expense below 1 time, or
negative free cash flow to debt would cause ratings to be
lowered.

In the near term, a rating upgrade is unlikely.  Ratings could
eventually move upward if the company establishes a long-term
track record of sales stability and improved margins, the system
expands both from new store development (particularly in
international markets) and existing store performance, and if
financial flexibility were to sustainably strengthen such that
EBIT coverage of interest expense approaches 1.5 times, leverage
falls toward 5.5 times, and Free Cash to Debt consistently
exceeds 3%.

General Nutrition Centers, Inc., with headquarters in
Pittsburgh, Pennsylvania, retails and manufactures vitamins,
minerals, and nutritional supplements (VMS) domestically and
internationally through about 5850 company operated and
franchised stores (including about 1200 store-within-a-store
locations at Rite Aid drug stores).  Revenue for the 12 months
ending September 2006 approached US$1.5 billion.


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


ALERIS INTERNATIONAL: Posts US$24.2 Mln Net Loss in Third Qtr.
--------------------------------------------------------------
Aleris International Inc. reported a US$24.2 million net loss on
US$1.4 billion of revenues for the third quarter ended Sept. 30,
2006, compared with a US$31.5 million of net income earned on
US$554.9 million of revenues for the same period in 2005.

Consolidated revenues for the three months ended Sept. 30, 2006
increased US$840.1 million as compared to the three months ended
Sept. 30, 2005.  The acquired operations of Corus Aluminum,
ALSCO, Tomra Latasa, Alumitech and the acquired assets of Ormet
accounted for an estimated US$578.5 million of this increase.  
The impact of rising primary aluminum prices and higher shipment
levels were partially offset, however, by slightly lower rolling
margins.

At Sept. 30, 2006, the company's balance sheet showed US$3.3
billion in total assets, US$2.8 billion in total liabilities,
and US$452.8 million in total stockholders' equity.

Full-text copies of the company's third quarter financial
statements are available for free at:

                  http://researcharchives.com/t/s?14f3
                                  
Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures    
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.  

On Aug. 1, 2006, the company acquired the aluminum business of
Corus Group plc for a cash purchase price of approximately
US$885.7 million.  The acquisition included Corus Group plc's
aluminum rolling and extrusions business but did not include
Corus's primary aluminum smelters.

Along with company's aluminum recycling operations in Germany,
the United Kingdom, Mexico and Brazil and magnesium recycling
operations in Germany and the Netherlands, with the Corus
Aluminum acquisition, the company now has rolled products and
extrusions operations in Germany, Belgium, Canada and China. In
addition, the company is in the process of constructing a zinc
recycling facility in China.

                    *      *      *

As reported in the Troubled Company Reporter-Europe on Oct. 17,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for Aleris International, Inc. and its Ba3 rating on the
company's US$400 million issue of senior secured term loan, in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology.  Moody's
also assigned an LGD3 rating to those loans, suggesting
noteholders will experience a 32% loss in the event of a
default.  


BRITISH AIRWAYS: Inks Funding Plan Agreement With NAPS Trustees
---------------------------------------------------------------
British Airways and the trustees of the New Airways Pension
Scheme have agreed in principle a ten-year funding plan to
tackle its GBP2.1 billion deficit.

The airline will increase its one-off cash injection from
GBP500 to GBP800 million and offer to pay up to GBP50 million a
year for the next three years subject to the airline's year end
cash balances remaining above GBP1.8 billion and on staff
accepting future benefit changes.

The agreed funding plan between the company and trustees assumes
an increase in British Airways' annual contributions to over
GBP250 million and close to the value of the proposed members
benefit reductions.

The benefit reductions include raising the normal retirement age
to 65, a lower accrual rate, inflation capped pensionable pay
increases, capped pension increases on retirement and sharing
life expectancy.  NAPS will remain a final salary scheme.

British Airways' chief financial officer Keith Williams, said:
"I am pleased to announce an agreement in principle with the
Trustees on this important issue.  This funding plan will secure
our past and future pensions.  It is the right way forward for
NAPS, our staff and for the company.

"The GBP800 million cash payment into NAPS is a very significant
injection into the fund relative to the company's market
capitalization.  Together with the benefits changes, more than
half the deficit will be tackled immediately."

The airline has been consulting with its trade unions on the
proposed benefit changes.  The trustees are keen for the company
and its trade unions to reach a common understanding.

                       About the Company

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and  
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited.

                        *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


COLLINS & AIKMAN: Still Unable to File Fin'l. Reports with SEC
--------------------------------------------------------------
Stacy Fox, executive vice president, chief administrative
officer and general counsel for Collins & Aikman Corp., reports
in a regulatory filing with the U.S. Securities and Exchange
Commission.  

That the company is unable to file its Form 10-Q with financial
statements at this time and its former independent auditors,
KPMG LLP, are unable to complete their audits of the company's
2004 and 2005 financial statements and review of subsequent
interim financial statements because:

   -- of the ongoing independent investigation of controls over
      financial reporting and review of certain accounting
      issues that are expected to require a restatement of
      certain previously reported periods; and

   -- of the company's bankruptcy filing.

Collins & Aikman has not filed its Form 10-K for the fiscal
years ended Dec. 31, 2004, and Dec. 31, 2005, and Form 10-Q for
the fiscal quarters ended March 31, 2005, June 30, 2005,
September 30, 2005, March 31, 2006, and June 30, 2006.

Collins & Aikman, Ms. Fox relates, anticipates changes in its
results of operations based on the impact of the accounting
issues.  In addition, and in light of its Chapter 11 filing,
Collins & Aikman anticipates that there will be a significant
change in the results of operations from the corresponding
period for the prior year, but is unable to currently assess the
amount of the change as a result of the ongoing restructuring
process.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in  
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
US$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 45;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


CNET NETWORKS: Faces Nasdaq Delisting Due to 10-Q Filing Delay
--------------------------------------------------------------
CNET Networks Inc. received a Nasdaq Staff Determination notice
on Nov. 13, 2006 stating that the company was not in compliance
with Nasdaq Marketplace Rule 4310(c)(14).  

The letter, which was expected, was issued in accordance with
Nasdaq procedures due to the company's failure to timely file
its Form 10-Q with the U.S. Securities and Exchange Commission
for its fiscal quarter ended Sept. 30, 2006.

In response to a similar letter the company received in August
2006 following the company's failure to file its Form 10-Q for
the quarter ended June 30, 2006, the company requested and was
granted a hearing on September 26, 2006 with the Nasdaq Listing
Qualifications Panel.  The Nov. 13, 2006 Nasdaq notice states
that the September 30, 2006 10-Q filing delinquency will serve
as an additional basis for delisting the company's securities on
the Nasdaq Global Market and that the Nasdaq Listing
Qualifications Panel will consider this matter in rendering a
determination regarding the company's continued listing on the
Nasdaq Global Market.  Pending a decision by the hearing panel,
CNET Networks' common stock will continue to be listed on the
Nasdaq Global Market.  There can be no assurance that the
hearing panel will grant the company's request for continued
listing.

The company previously announced that a Special Committee
of the company's Board of Directors completed an independent
review of CNET Networks' past stock option practices and related
accounting.  Management expects that CNET Networks will restate
its historical financial statements to record non-cash charges
for compensation expense relating to past stock option grants.  
The company is in the process of preparing its restated
financial statements which the company expects to file with the
Securities and Exchange Commission along with its delinquent
Form 10-Qs as soon as practicable.

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

                        *     *     *

As reported in the TCR-Europe on Oct. 24, Standard & Poor's
Ratings Services lowered its ratings on CNET Networks Inc.,
including lowering the corporate credit rating to 'CCC+' from
'B', and placed the ratings on CreditWatch with developing
implications.

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

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


COLT TELECOM: Inks Contract to Provide Fidelity's Data Center
-------------------------------------------------------------
COLT Telecom Group S.A. has won a contract to provide Fidelity
International Limited with a dedicated managed data center
facility.  The contract, worth around EUR60 million over
10 years, will involve planning, developing and managing the
highly secure 1,400 square meter facility, based at COLT's
London data center.

COLT was selected for this project because of its proven track
record in supplying high quality managed data center services,
and its ability to provide a new facility for Fidelity that will
be tailored to its exacting requirements.

The project involves four phases:

   -- design consultancy to scope and plan the center;

   -- fitting out of the facility;

   -- installation of racks and servers; and finally

   -- the on-going management and maintenance of
      the infrasructure over a 10 year lifespan,
      including providing a helpdesk and onsite IT support.

The center is scheduled to be live by the end of 2007.

Lakh Jemmett, COLT's U.K. Managing Director, said, "Managed
services is the fastest growing part of COLT's portfolio.  Major
organisations, such as Fidelity International, are putting their
trust in the quality of COLT's infrastructure, services and
people.  This contract is a clear endorsement of our expertise
in designing, building and managing the infrastructure, which
supports customers' mission-critical processes."

To meet growing demand for managed services, COLT has brought
two data centers online in 2006, in Brussels and Hamburg,
bringing its total European footprint to 14.  All center are
integrated with COLT's 20,000km European network, enabling the
company to offer high speed and high quality managed services to
European businesses.

Headquartered in London, United Kingdom, Colt Telecom --
http://www.colt.net/-- offers business communication services  
across Europe.  Through its fiber optic network, the Company
offers voice, bandwidth, e-business and managed network services
to finance, industry and service sector customers and
governments.

                        *     *     *

As reported in the TCR-Europe on Aug. 8, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
European business telecommunications provider COLT Telecom Group
Ltd. to 'B' from 'B-' and removed the ratings from CreditWatch,
where they were placed on Feb. 24.  S&P said the outlook is
stable.

The issue ratings on COLT's existing senior unsecured notes were
also raised to 'B' from 'B-' and removed from CreditWatch.
     
At the same time, Standard & Poor's assigned its 'B' long-term
corporate credit rating to COLT Telecom Group S.A., the new
ultimate parent of COLT.  S&P said the outlook is stable.

As reported in the TCR-Europe on July 28, Moody's Investors
Service upgraded the rating of COLT Telecom Group Ltd.'s senior
notes to B2 from B3 following the successful completion of the
equity offering by COLT Telecom Group S.A.  Concurrently Moody's
assigned a B2 corporate family rating to COLT S.A. and removed
the B3 corporate family rating of COLT Telecom Group Ltd.
(formerly COLT Telecom Group plc).  This rating action concludes
the review initiated on May 16.  Moody's said the ratings
outlook is stable.

The B2 corporate family rating reflects both the strengthened
financial profile that has resulted from the successful
completion of the company's recent equity offering as well as
the improvements in operational performance demonstrated by the
group over the past eighteen months.


DIGITAL LIGHTWAVE: Posts US$2 Million Net Loss in Third Quarter
-------------------------------------------------------------
Digital Lightwave Inc. filed its third quarter financial
statements for the three months ended Sept. 30, 2006, with the
U.S. Securities and Exchange Commission on Nov. 7, 2006.

For the three months ended Sept. 30, 2006, the Company incurred
a US$2,095,000 net loss on US$2,587,000 of net revenues compared
to a US$2,083,000 net loss on US$4,898,000 of net revenues from
the same period in 2005.

At Sept. 30, 2006, the Company's balance sheet showed US$7.3
million in total assets and US$67.8 million in total
liabilities, resulting in a US$60.5 million stockholders'
deficit.  

The Company's Sept. 30 balance sheet also showed strained
liquidity with US$7 million in total current assets available to
pay US$67.5 million in total current liabilities.

As of Sept. 30, 2006, the Company's unrestricted cash and cash
equivalents totaled approximately US$50,000, a decrease of
approximately US$621,000 from Dec. 31, 2005.  As of Sept. 30,
2006, the Company's working capital deficit was US$60.5 million
as compared to a working capital deficit of US$48.8 million at
Dec. 31, 2005.  The Company had an accumulated deficit of
approximately US$148.1 million at Sept. 30, 2006.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1535

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


EUROMONEY INSTITUTIONAL: March 31 Equity Deficit is GBP56.4-Mln
---------------------------------------------------------------
Euromoney Institutional Investor PLC released its unaudited
interim financial results for the six months ended March 31,
2006.

The Company reported a GBP10.2 million net profit on
GBP103.1 million of net revenues for the six months ended
March 31, 2006, compared with a GBP10.2 million net profit on
GBP87.5 million of net revenues for the same period in 2005.

At March 31, 2006, the Company's balance sheet showed
GBP172.5 million in total assets and GBP228.9 million in total
liabilities, resulting in a GBP56.4 million shareholders'
deficit.

The Company's March 31 balance sheet also showed strained
liquidity with GBP72.9 million in total current assets available
to pay GBP137.1 million in total current liabilities.

Commenting on the results, Padraic Fallon, Chairman, said:
"It was another year of record performance, driven by strong
organic revenue growth across all divisions.  Our objectives
remain the same: to deliver continued top-line growth from new
and existing products; to diversify our revenues while improving
the operating margin; and to invest selectively in acquisitions
that strengthen the Company's market position.  The acquisition
of Metal Bulletin, which was completed after the year-end, is a
big step forward in implementing our strategy for creating one
of the world's leading international business media groups."

A full-text copy of the company's interim report for the six
months ended March 31, 2006 is available for free at:
http://ResearchArchives.com/t/s?154a

Headquartered in London, England, Euromoney Institutional
Investor PLC -- http://www.euromoneyplc.com/-- is an  
international publishing and events organizer offering business
information for the finance, law, energy and transport sectors.


FARRINGDON MORTGAGES: Fitch Puts GBP5.1-Mln BB Rating on RWN
------------------------------------------------------------
Fitch Ratings placed three tranches of Farringdon Mortgages
No. 2 Plc on Rating Watch Negative following increased losses in
the quarter that have culminated in a reserve fund draw.  
At the same time, Fitch has affirmed all tranches of Farringdon
Mortgages No. 1 Plc.  

Rooftop Mortgages Ltd. originated both transactions, a
subsidiary of Bear Stearns Companies Inc. and have been the
subject of a renewed loan-by-loan and cash flow analysis.

FM1

   -- GBP7.11 million Class A1a (ISIN XS0211289961) and
      A1a DAC (ISIN XS0211293138) affirmed at AAA;

   -- GBP50 million Class A2a (ISIN XS0211295778) and
      A2a DAC (ISIN XS0211296313) affirmed at AAA;

   -- GBP17.5 million Class M2a (ISIN XS0211300362) affirmed at    
      A-;

   -- GBP4.38 million Class B1a (ISIN XS0211301766) affirmed at
      BBB-;

   -- GBP3.13 million Class B2a (ISIN XS0211303382) affirmed at
      B; and

   -- MERCS (ISIN XS0211306641) affirmed at AAA.

FM2

   -- GBP50.53 million Class A1a (ISIN XS0228709043) and
      A1a DAC (ISIN XS0228709555) affirmed at AAA;

   -- GBP84 million Class A2a (ISIN XS0228709985) and
      A2a DAC (ISIN XS0228710561) affirmed at AAA;

   -- GBP23.5 million Class M2a (ISIN XS0228711882) A on RWN;

   -- GBP7.4 million Class B1a (ISIN XS0228712260) BBB on RWN;

   -- GBP5.1 million Class B2a (ISIN XS0228712930) BB on RWN;
      and

   -- MERCS (ISIN XS0228713235) affirmed at AAA.

Upon receipt of further information on the January 2007 interest
payment date, Fitch will conduct further analysis on FM2 and
resolve the RWN.

The reserve fund draw in FM2 that took place on the October IPD
amounted to GBP53,555, out of a total reserve at the previous
IPD of GBP2,134,385.  The reserve fund currently represents
1.04% of the initial note balance compared with 0.6% at closing.

Excess spread in the transaction is reduced substantially due to
the presence of the detachable coupons, which are linked to the
Class A notes and pay 2.13% of the principal amount outstanding
on these notes.  

The existence and extent of the DACs were incorporated in the
initial cash flow modeling; however, the increase in realized
losses during the latest quarter has further affected the level
of excess spread available to the deal.

Less seasoned than FM1, with a weighted average seasoning of
16.68 months, FM2 is experiencing higher losses than FM1.
Cumulative losses accounted for 0.15% of the initial portfolio
balance, 14 months after close, compared to 0.07% in FM1 at the
same stage after closing.

Fitch conducted a full loan-by-loan analysis on the sold
repossessions to assess individual loss severities, which were
significantly higher in the latest quarter than those seen in
the quarter before.  Additional data provided to Fitch by
Rooftop show the weighted average loss severity on sold
repossessions increasing to 16.8% in October 2006 from 12.31% in
July.  These averages are also significantly higher than those
seen in FM1.

In total, 13 properties have been sold via repossession, out of
which 11 have realized a loss.  The highest loss severities have
been experienced predominantly in London and its surrounding
areas, with eight of the 11 properties having realized a loss to
date, located in this region.

The largest single loss severity seen to date is 41.17%. Largest
loss severities are at the higher end of the loan-to-value
bracket, with all 11 properties having LTVs in excess of 85%.
Average loss severities currently remain below loss severity
assumptions for the lowest rated note of BB.

In FM2, there are currently a further 17 properties in
possession awaiting progression to sale.  These have a WA LTV of
87.61% and 44.91% and are located in and around London.  Fitch
expects the loss severities to remain high.  However, if house
prices in London continue to increase, this may potentially lead
to relatively higher recovery prospects for London properties
currently in possession.

The increase in repossessed cases and higher losses is partially
a consequence of Rooftop's change in litigation strategy.  The
legal process is started earlier, which has led to faster
realization of properties and crystallization of losses earlier
than would otherwise have been the case.

Consequently the increased number of sold repossessions that
have proceeded to realization of the property with a loss
crystallized has had a negative impact on the available revenue
funds earlier.

In addition, reversion to the full stabilized rate from the
discounted margins should theoretically benefit both
transactions, but stretched affordability at the higher loan
rate has caused an increase in arrears levels for those
borrowers that remain in the pool.  

This month's interest rate increase could also exacerbate the
position.  Further, given that discounted rate mortgages for FM2
are only fully cash collateralized for the first year - unlike
FM1 that collateralizes for the full discount period - the
weighted average mortgage margin for the portfolio can be
expected to reduce after October 2006.

With a third of loans having a three-year stepped discount,
Rooftop is continuing to manage collections aggressively to
compensate for the loss of margin.  Nevertheless, in Fitch's
view, with the mortgage discount ledger fully utilized, along
with the profile of the current loans in possession, there is an
increased likelihood of a large reserve draw on the January 2007
IPD.

FM1 has seen arrears of greater than three months, inclusive of
repossessions, stabilize in the last two quarters.  However,
this needs to be viewed in the context of loans exiting the
portfolio via repossession and sale.  The reserve was
replenished this quarter by GBP205,829, the first replenishment
since January 2006, which now brings the reserve fund level to
1.01% of the initial note balance versus the targeted 4.2%.

Sold repossessions are not increasing as quickly as they have in
the previous quarters and in October 2006 they accounted for
4.71% of the initial balance.  Current properties in possession
accounted for 2.19% of the initial balance, and in common with
FM2, they possess certain characteristics that are driving
losses, such as 63% being located in London and surrounding
areas and more than half of the loans being labeled as heavy
adverse according to Rooftop's product definition.

The FM1 and FM2 prepayment rates are increasing as more
borrowers see their teaser rates expire, leaving them free to
refinance.  This will have a positive impact on de-leveraging
the deal and building levels of credit enhancement, as well as
mitigating the impact of the high DAC rates.


FISHER SCIENTIFIC: Thermo Merger Cues Moody's to Lift Ba2 Rating
----------------------------------------------------------------
Moody's Investors Service concludes the rating review for
possible downgrade initiated on May 8, 2006 for Thermo Electron
Corporation, which is the surviving entity whose name has
changed to Thermo Fisher Scientific Inc., as a result of the
report that the merger between it and Fisher Scientific
International Inc. has been finalized.  

The ratings for Thermo have been downgraded and concurrently the
ratings for Fisher Scientific International Inc. were upgraded.  

The companies combined in a tax-free, stock-for-stock
transaction following its recently received anti-trust clearance
which completed the merger.

The Baa2 senior unsecured debt rating for the combined entity,
Thermo Fisher, reflects a capital structure, financial leverage
and cash flow coverage of debt indicative of an investment grade
issuer.  Moody's expects that Thermo Fisher will yield a range
in operating cash flow to adjusted debt of 27% to 31% with
adjusted free cash flow to adjusted debt of 19% to 23% in 2006.  
Moody's also expects that the company will pay down debt over
the same time period, from approximately US$3 billion pro-forma
as of Dec. 31, 2005, to US$2.6 billion and US$2.3 billion at the
end of 2006 and 2007, respectively.

Moody's believes that the merger between the two companies will
offer these benefits:

   -- greater scale and a broad portfolio of products and
      services;

   -- the ability to offer an end to end solution for laboratory
      customers, including equipment, software, reagents,
      consumables and services; and,

   -- a more diverse geographic, product and customer mix.

Moody's also expects that the combination could result in cost
synergies and revenue synergies of approximately US$150 million
and US$50 million, respectively, over the next few years.  
Moody's also views the two companies as highly complimentary.

Fisher has a strong supply chain management with distribution
capabilities, multiple sales channels, as well as significant
sales and marketing resources.  Thermo, on the other hand, has
strong production innovation, intellectual property, research
and development, as well as a solid global manufacturing
footprint and expertise.  Thermo has also been quite successful
in penetrating Asia and other emerging markets, offering
potentially greater access for Fisher.

Moody's believes that the unsecured senior debt of Thermo Fisher
will be structurally subordinated to the current debt at Fisher,
as well as the US$1 billion senior unsecured guaranteed credit
facility for the combined entity.  Moody's assessment reflects
the fact that the proposed credit facility should benefit from a
guarantee from Fisher while the existing Fisher debt benefits
from a co-obligation from the parent.

Moody's, however, did not view technical structural
subordination as a major constraint to Thermo Fisher's current
senior unsecured notes and bonds at the Baa2 senior unsecured
rating for the combined company.  Moody's notes that this
subordination issue could become more material if the combined
company's rating were at a lower level.

Moody's ratings do consider the major risks in combining both
companies, specifically the integration of the two company's
systems, operations and cultures.  While Moody's notes that both
companies have acquired other life science firms in the past few
years, Moody's expects the combined company to focus on internal
growth and cost synergies in the short-term prior to resuming to
acquiring additional companies.

These ratings of Thermo Fischer Scientific Inc. (formerly Thermo
Electron Corporation) were downgraded:

   -- US$150 million senior unsecured notes, due 2008,
      downgraded to Baa2 from Baa1

   -- US$250 million 5% Senior Global Notes, due 2015,
      downgraded to Baa2 from Baa1

   -- US$125 million convertible subordinated debentures due
      2007, downgraded to Ba1 from Baa3

These ratings were withdrawn for Thermo Fischer Scientific Inc.:

   -- Senior Unsecured Shelf Rating, rated (P) Baa1

   -- Subordinated Shelf Rating, rated (P) Baa2

These ratings of Fisher Scientific International, Inc. were
upgraded:

   -- US$300 million 2.50% senior unsecured convertible notes,
      due 2023, upgraded to Baa2 from Ba1

   -- US$330 million 3.25% senior subordinated convertible notes
      due 2024, upgraded to Baa3 from Ba2

   -- US$300 million 6.75% senior subordinated notes, due 2014,
      upgraded to Baa3 from Ba2

   -- US$500 million 6 1/8% senior subordinated notes, due 2015,
      upgraded to Baa3 from Ba2

These ratings of Fisher Scientific International, Inc. were
withdrawn:

   -- Corporate Family Rating

   -- US$500 million Senior Secured Guaranteed Revolver due 2009

   -- US$250 million Senior Secured Guaranteed U.S. Dollar Term
      Loan A due 2009

These ratings of Apogent Technologies, Inc. (a wholly owned
subsidiary of Fisher) were upgraded:

   -- US$345 million floating rate senior convertible contingent
      notes due 2033 upgraded to Baa2 from Ba1

The ratings outlook is stable.

Thermo Fisher Scientific Inc., based in Waltham, Massachusetts,
with annual sales of more than US$9 billion, serves over
350,000 customers within pharmaceutical and biotech companies,
hospitals and clinical diagnostic labs, universities, research
institutions and government agencies, as well as environmental
and industrial process control settings.  Thermo Scientific
offers customers a complete range of high-end analytical
instruments as well as laboratory equipment, software, services,
consumables and reagents to enable integrated laboratory
workflow solutions.


FISHER SCIENTIFIC: Thermo Merger Prompts S&P to Lift Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the
debt of Fisher Scientific International Inc. in light of the
completion of its merger with Thermo Electron Corp. to create
Thermo Fisher Scientific Inc. (BBB+/Positive/--).  

The ratings were also removed from CreditWatch, where they were
placed with positive implications May 8, 2006, in anticipation
of the merger's closing.

The rating on Fisher Scientific's senior unsecured debt was
raised to 'BBB+' from 'BBB-' and the rating on the company's
subordinated debt was raised to 'BBB' from 'BB+'.

The 'BBB-' corporate credit rating on Fisher Scientific was
withdrawn, as was the 'BBB' senior secured rating assigned to a
bank facility that has been repaid.

Fisher Scientific has locations in Singapore, the United
Kingdom, and Mexico.


GOODYEAR TIRE: Steelworkers Blast US$1 Billion Sr. Notes Offer
--------------------------------------------------------------
The United Steelworkers blasted Goodyear Tire and Rubber
Company's announcement to place about US$1 billion of three-year
and five-year senior unsecured notes, subject to market and
other customary conditions.  

The company has indicated that it will use about one-half of the
proceeds to repay existing notes due Dec. 1, 2006 and March 1,
2007.  The rest of the money will be used for general purposes,
including funding the strike with the USW.

"Goodyear is already carrying about US$6.4 billion dollars in
debt, and its credit is poor and getting worse," said USW
International president Leo W. Gerard.  "Now they plan to borrow
more money to flush down a rat hole of a fight they can never
win."

"Quite simply, this latest move by the company is the wrong
thing for the wrong reasons at the wrong time," said USW
International vice president Tom Conway. Mr. Conway heads the
USW's bargaining team in its negotiations with Goodyear. "When
you borrow money, you have to pay it back, and to pay it back
Goodyear needs to build tires that people want to buy," said
Conway.  "This company has no such plan in place."

"It is really time for the company's owners to step forward and
stop this madness," said Mr. Gerard. "Bob Keegan is looking
increasingly like Captain Queeg in the The Caine Mutiny."

Queeg is the fictional character in Herman Wouk's 1951 novel,
who was removed from command of a World War II minesweeper
because of eccentric behavior that lead to mistakes that
endangered his crew.

The USW represents more than 17,000 workers at Goodyear
facilities in the U.S. and Canada.  On Oct. 5, about 15,000 USW-
represented workers at 16 locations in North America went out on
strike in an effort to win a fair and equitable contract.

Overall, the USW presents more than 850,000 members in the U.S.
and Canada.  Some 70,000 are employed in the tire, rubber and
plastics industry.

                       About Goodyear Tire

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest   
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  It has marketing operations in almost every country
around the world.  Goodyear employs more than 80,000 people
worldwide.

It has marketing operations in almost every country around the
world.  Goodyear employs more than 80,000 people worldwide.  It
has marketing operations in almost every country around the
world, including Indonesia, Australia, China, India, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, and
Thailand.  The company's European headquarters is based in
Brussels, Belgium.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 27,
Moody's Investors Service confirmed its B1 Corporate Family
Rating for The Goodyear Tire & Rubber Company in connection with
the rating agency's implementation of its new Probability-of-
Default and Loss-Given-Default rating methodology for the U.S.
Automotive and Equipment sectors.

As reported in the TCR-Europe on Oct. 26, Standard & Poor's
Ratings Services placed its 'B+' corporate credit rating on
Goodyear Tire & Rubber Co. on CreditWatch with negative
implications because of the potential for business disruptions
and earnings pressures that could result from the ongoing labor
dispute at some of its North American operations.  Goodyear has
total debt of about US$7 billion.

In a TCR-Europe report on Oct. 20, Fitch Ratings placed The
Goodyear Tire & Rubber Company on Rating Watch Negative.  
Goodyear's current debt and recovery ratings are -- Issuer
Default Rating (IDR) 'B'; US$1.5 billion first lien credit
facility 'BB/RR1'; US$1.2 billion second lien term loan
'BB/RR1'; US$300 million third lien term loan 'B/RR4'; US$650
million third lien senior secured notes 'B/RR4'; Senior
Unsecured Debt 'CCC+/RR6'.


GOODYEAR TIRE: Moody's Rates US$1-Bln Unsecured Notes at B2
-----------------------------------------------------------
Moody's Investors Service assigned a B2, LGD4, 63% rating to
Goodyear Tire & Rubber Co.'s new US$1 billion offering of
unsecured notes.  

At the same time, the rating agency affirmed Goodyear's
Corporate Family Rating of B1 and negative outlook and revised
its Speculative Grade Liquidity rating to SGL-2.  All other
long-term ratings are unchanged.

The new unsecured notes will consist of a US$0.5 billion
floating rate issue with a three-year maturity, and a
US$0.5 billion fixed rate issue with a five-year maturity.  
Both issues will benefit from upstreamed guarantees from
Goodyear's material North American subsidiaries.  Goodyear will
use US$515 million of the proceeds to repay maturing obligations
in December (US$215 million) and March 2007 (US$300 million)
with the balance retained for general corporate purposes.  The
new financing will strengthen Goodyear's liquidity profile as it
works to resolve the strike affecting its U.S. production
capacity.

Goodyear's Corporate Family rating of B1 recognizes strong
scores for several factors in Moody's Automotive Supplier
Methodology.  These factors include:

   -- the company's substantial scale,
   -- global brands,
   -- leading market share,
   -- diversified geographic markets, and
   -- improved debt maturity and liquidity profiles.

Scores for those qualitative attributes would normally track to
a higher Corporate Family rating.  However, the B1 rating
considers Goodyear's relatively weak quantitative scores
including leverage, which has stepped-up further from recent
borrowings, low EBIT returns and weak FCF/debt ratios.
Contributions to pension plans will remain substantial for
another year before declining in 2008.  Scores from those
quantitative factors counter qualitative strengths.  The company
faces challenges in restoring its balance sheet, resolving its
U.S. organized labor contract and contending with various
contingent liabilities.  Nonetheless, debt levels have likely
peaked and leverage measurements could quickly retreat should a
satisfactory accord be reached with its North American union
with incremental debt retired in short order.

The negative outlook anticipates that the strike will be settled
within several months, but recognizes stepped-up leverage from
recent financing, and weak demand in North American replacement
tire markets.  Several pro forma metrics already suggest lower
rating categories.  However, leverage measurements could decline
if the strike was resolved quickly, recent incremental debt was
unwound, and lower underfunded pension liabilities anticipated
at year-end were recognized.  

In addition, the company is positioned with strong liquidity and
faces minimal debt maturities until 2009.  On balance, Moody's
believes the risks are weighted to the downside by these short-
term issues until the company's North American cost structure is
resolved. Developments on these concerns could either evolve
rapidly or emerge over several months depending upon the outcome
of its labor negotiations.

Ongoing challenges also include:

   -- maintaining and bolstering profitability in the face
      of elevated and volatile raw material prices,

   -- generating adequate cash flow from its operations, and

   -- strengthening its capital structure.

Recent replacement tire demand has been less than robust which
could intensify competition and pricing.  Growth in replacement
tire demand should also resume over the intermediate period.

Goodyear Tire & Rubber Co.

Ratings assigned:

    * US$500 million senior unsecured guaranteed notes
      due 2009, B2 LGD-4, 63%

    * US$500 million senior unsecured guaranteed notes
      due 2011, B2 LGD-4, 63%

Ratings affirmed:

    * Corporate Family Rating, B1
    * Outlook, Negative
    * Probability of Default, B1
    * first lien credit facility, Ba1, LGD2, 10%
    * second lien term loan, Ba3, LGD3, 35%
    * third lien secured term loan, B2, LGD4, 63%
    * 11% senior secured notes, B2, LGD4, 63%
    * floating rate senior secured notes, B2, LGD4, 63%
    * 9% senior notes, B2, LGD4, 63%
    * 6-5/8% senior notes, B3, LGD6, 94%
    * 8-1/2% senior notes, B3, LGD6, 94%
    * 6-3/8% senior notes, B3, LGD6, 94%
    * 7-6/7% senior notes, B3, LGD6, 94%
    * 7% senior notes, B3, LGD 6, 94%
    * senior unsecured convertible notes, B3, LGD6, 94%

Goodyear Dunlop Tyres Europe

    * Euro revolving credit facilities, Ba1, LGD2, 10%
    * Euro secured term loan, Ba1, LGD2, 10%

Ratings changed:

    * Speculative Grade Liquidity rating to SGL-2 from SGL-3

The last rating action was on Oct. 16 at which time the outlook
was changed to negative and the liquidity rating was lowered to
SGL-3.

The B2, LGD4, 63% rating assigned to the new notes recognizes
their junior position relative to the company's first, second
and third lien credit facilities as well as the benefits of
upstreamed guarantees from material North American subsidiaries,
an enhancement that is not in place on certain other unsecured
notes.

The SGL-2 liquidity rating, representing good liquidity over the
next 12 months, emphasizes substantial balance sheet cash
sourced through the recent revolving credit borrowings and note
issuance.  However, external liquidity is very limited as the
company's domestic revolving credit is nearly fully utilized.
The company should have adequate room under its financial
covenants, but the cushion could diminish should North American
results be adversely affected by the strike.  While substantial
assets have been pledged, the company does have flexibility on
the use of proceeds from prospective asset sales.

Goodyear Tire & Rubber Co., based in Akron, OH, is one of the
world's largest tire companies with more than 100 facilities in
29 countries around the world.  Products include tires,
engineered rubber products, and chemicals.  Revenues in 2005
were approximately US$20 billion.


HERTZ CORP: S&P Affirms BB Rating After Parent's US$1.3-Bln IPO
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Hertz Corp., including the 'BB-' corporate credit rating, and
removed them from CreditWatch, where they were placed with
negative implications June 26.  The outlook is negative.
     
"The rating affirmation is based on the successful completion
[Wednes]day of a US$1.3 billion IPO by Hertz Global Holdings
Inc., Hertz Corp.'s parent, of which US$1 billion proceeds will
be used to repay a US$1 billion loan that financed a US$1
billion dividend to Hertz's owners in June 2006," said Standard
& Poor's credit analyst Betsy Snyder.  "However, the negative
outlook reflects the company's more aggressive financial policy,
with all of the proceeds from the IPO paid to the company's
owners in the form of a dividend, rather than retaining some
proceeds at Hertz."
     
The ratings on Park, Ridge, N.J.-based Hertz reflect a weakened
financial profile following its US$14 billion leveraged
acquisition in December 2005, its owners' very aggressive
financial policy, and the price-competitive nature of on-airport
car rentals and equipment rentals.  Ratings also incorporate the
company's position as the largest global car rental company and
the strong cash flow its businesses generate.  

Hertz was acquired from Ford Motor Co. by Clayton, Dubilier &
Rice Inc., The Carlyle Group, and Merrill Lynch Global Private
Equity, who combined now own a 72% stake after the
US$1.3 billion IPO.  The acquisition, which added over
US$2 billion of debt to Hertz's balance sheet, has resulted in
an increase in its borrowing costs, and credit ratios have
weakened from their previous relatively healthy levels.  Hertz's
financial policy has become significantly more aggressive since
its acquisition.  Its owners completed a US$1 billion
debt-financed dividend just six months after acquiring the
company and proceeds of the IPO, after US$1 billion is used to
repay debt incurred for the dividend, will be paid to the owners
as a dividend.  In addition, around two-thirds of the company's
tangible assets are now secured, versus around 10% prior to its
acquisition.
    
Hertz, the largest global car rental company, participates
primarily in the on-airport segment of the car rental industry.
This segment, which generates approximately 56% of Hertz's
consolidated revenues, is heavily reliant on airline traffic.
Demand tends to be cyclical, and can also be affected by global
events such as wars, terrorism, and disease outbreaks.
     
Hertz's financial policy has become considerably more
aggressive.  Its owners have taken US$1.3 billion of dividends
from the company in less than a year, partially funded through
debt that was subsequently repaid with proceeds from an IPO.
Additional significant dividends would result in a downgrade.  
If the company were to delever without further significant
dividends, the outlook could be revised to stable.


KRISPY KREME: Posts US$135.8MM Net Loss in Year Ended Jan. 2006
---------------------------------------------------------------
Krispy Kreme Doughnut, Inc. reported a US$135.8 million net loss
on US$543.4 million of revenues for the fiscal year ended
Jan. 31, 2006, compared with a US$198.3 million net loss on
US$707.8 million of revenues for the same period in 2005.

Both revenues from company owned stores and franchisee stores
declined in fiscal 2006 compared with fiscal 2005, as did
company sales to franchise stores.  This was offset mainly by
lower recorded direct operating expenses of US$474.6 million in
fiscal 2006, compared with US$598.3 million in fiscal 2005.  In
addition, the company recognized lower impairment charges and
lease termination costs of US$55.1 million in 2006 compared to
US$161.8 million in 2005.

At June 30, 2006, the company's balance sheet showed
US$410.8 million in total assets, US$302.2 million in total
liabilities, and US$108.7 million in total stockholders' equity.

The company's balance sheet at Jan. 29, 2006 also showed
US$147 million in total current assets available to pay
US$153.9 million in total current liabilities.

A full-text copy of the company's annual report is available for
free at http://researcharchives.com/t/s?1485

                     About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded    
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.  The
Debtor operates six out of the approximately 360 Krispy Kreme
stores and 50 satellites located worldwide.  The Company filed
for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case
No. 05-14268).  M. Blake Cleary, Esq., Margaret B. Whiteman,
Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt &
Taylor, LLP, represent the Debtor in its restructuring efforts.  
When the Debtor filed for protection from its creditors, it
estimated US$10 million to US$50 million in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-
00932).  The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana.  Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts.  When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


MONEY PARTNERS: Fitch Puts Final BB Rating to GBP14.75-Mln Notes
----------------------------------------------------------------
Fitch Ratings assigned final ratings to Money Partners
Securities 4 Plc's GBP600 million-equivalent mortgage-backed
floating-rate notes due 2040:

   -- GBP-equivalent 292.5 million Class A1a: AAA;
   -- A1a detachable coupons: AAA;
   -- GBP-equivalent 203.97 million Class A1b: AAA;
   -- A1b detachable coupons: AAA;
   -- GBP-equivalent 19.2 million Class M1a notes: AA;
   -- GBP-equivalent 26.98 million Class M1b notes: AA;
   -- GBP-equivalent 6.2 million Class M2a notes: A;
   -- GBP-equivalent 20.83 million Class M2b notes: A;
   -- GBP-equivalent 6 million Class B1a notes: BBB;
   -- GBP-equivalent 9.61 million Class B1b notes: BBB; and
   -- GBP-equivalent 14.75 million Class B2 notes: BB.

The collateral underlying the notes in this transaction consists
of Money Partners Holdings and Kensington Mortgages Limited
originations.

The ratings are based on the quality of the collateral,
available credit enhancement and the underwriting criteria of
MPH and KML. The ratings also take into account the primary
servicing capabilities of Homeloan Management Ltd (rated 'RPS2+
(subprime) UK') and the special servicing capabilities
Kensington Mortgages Ltd (a subsidiary of KG, rated 'RSS2+
(subprime)UK') and the sound legal structure of the transaction.

Credit enhancement for the Class A1 notes totals 18.6% and is
provided by the subordination of the Class M1, Class M2, Class
B1, Class B2 and an initial reserve fund representing 1.35% of
the initial issue size.  The reserve fund is expected to
increase to a target amount of GBP12.6 million, funded from
available excess spread.

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

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


NBS TECHNOLOGIES: Inks US$3.6-Million Deal with Brookfield
----------------------------------------------------------
NBS Technologies Inc. entered into an agreement with Brookfield
Asset Management Inc. to effect a going private transaction
whereby Brookfield will acquire all of the outstanding common
shares of NBS not already owned by Brookfield or its affiliates
at a price of US$1 per Common Share in cash, representing a
total cash consideration of approximately US$3.6 million.

In addition, holders of Common Shares will receive a non-
transferable contingent entitlement to share in the net proceeds
received by NBS from any final adjudication or final settlement
of all matters related to the claims and counterclaims of the
Card Technology v. DataCard litigation involving NBS and the
related proceedings in the United States Department of Justice.

The price of US$1.00 per Common Share offered by Brookfield
represents a premium of approximately 42.9% over the closing
price of the Common Shares on the Toronto Stock Exchange on
Nov. 6, 2006, the last day on which the Common Shares traded
prior to the announcement of the proposed transaction, and a
premium of approximately 57.7% over the 20-day average closing
price of the Common Shares on the TSX.

The board of directors of NBS established a special committee of
independent directors to supervise the preparation of a formal
valuation of the Common Shares by BDO Dunwoody LLP, a qualified
independent valuator, and to consider the proposed transaction.  
Subject to the assumptions contained in the valuation, BDO
Dunwoody reached the opinion that the fair market value of the
Common Shares was in the range of US$0.00 to US$0.51 per Common
Share.  BDO Dunwoody also delivered a fairness opinion that the
consideration offered under the proposed transaction is fair,
from a financial point of view, to the minority shareholders of
NBS.

Based on BDO Dunwoody's conclusions, among other matters
considered, the Special Committee unanimously determined that
the proposed transaction is in the best interests of NBS and is
fair, from a financial point of view, to the minority
shareholders of NBS.  In light of the Special Committee's
conclusions, the board of directors of NBS has unanimously
approved the proposed transaction and recommends that
shareholders vote in favor of the proposed transaction.

The transaction will be effected through an amalgamation of NBS
and a newly incorporated company wholly owned by Brookfield.  
Pursuant to the amalgamation, each shareholder of NBS, other
than Brookfield and its affiliates, will receive one redeemable
preference share of the amalgamated company for each Common
Share held immediately prior to the amalgamation.  Each
redeemable preference share will then be redeemed for US$1.00 in
cash.

On Nov. 6, 2006, an affiliate of Brookfield purchased an
additional 1,297,693 Common Shares from Drazen Ivanovic, an
officer of NBS.  These Common Shares were acquired pursuant to a
private agreement transaction.  After giving effect to this
acquisition, Brookfield and its affiliates own 39,526,226 Common
Shares, representing 91.6% of the outstanding Common Shares.  
Brookfield has advised NBS that these additional Common Shares
were acquired by an affiliate of Brookfield in order to increase
the percentage ownership interest in NBS of Brookfield and its
affiliates above 90%.

A special meeting of shareholders of NBS will be held on or
about Dec. 18, 2006 to consider the proposed transaction.  The
proposed transaction is subject to the approval of not less than
two-thirds of the shareholders of NBS voting at the meeting.  As
of Nov. 6, 2006, NBS had outstanding 43,151,922 Common Shares.  
As Brookfield and its affiliates own more than 90% of the
outstanding Common Shares and an appraisal remedy will be
available to shareholders under applicable corporate law, no
minority approval will be required to approve the proposed
transaction.  The votes attached to the Common Shares owned by
Brookfield and its affiliates will therefore be sufficient to
approve the proposed transaction.

The terms and conditions of the proposed transaction, including
copies of the formal valuation and fairness opinion prepared by
BDO Dunwoody, will be detailed in a management information
circular to be mailed to shareholders of NBS as soon as
practicable.

                About Brookfield Asset Management

With corporate offices in New York City, Toronto, Ontario, and
London, UK, Brookfield Asset Management Inc. (NYSE/TSX:BAM) --
http://www.brookfield.com/-- is an asset manager.  Focused on  
property, power and infrastructure assets, the Company has over
US$50 billion of assets under management.

                    About NBS Technologies

Based in Toronto, Ontario, NBS Technologies Inc. (TSX: NBS) --
http://www.nbstech.com/-- provides smart card manufacturing and  
personalization equipment, secure identity solutions and point
of sale transaction services for financial institutions,
governments and corporations worldwide.  NBS Technologies is a
global company with locations in Canada, China, France, the U.S.
and the United Kingdom, along with a worldwide dealer network.

At June 30, 2006, NBS Technologies' balance sheet showed a
stockholders' deficit of CDN$13,743,000, compared to a deficit
of CDN$4,646,000 at Sept. 30, 2005.


READER'S DIGEST: Inks US$2.4-Bln Merger Deal with Ripplewood
------------------------------------------------------------
An investor group led by Ripplewood Holdings LLC has entered
into a definitive merger agreement to acquire The Reader's
Digest Association, Inc. in a transaction with an aggregate
value of US$2.4 billion.  

The investor group also includes:

   -- the J. Rothschild Group,

   -- GoldenTree Asset Management,

   -- GSO Capital Partners, Merrill Lynch Capital Corp.,
      and    

   -- Magnetar Capital.

Under the terms of the merger agreement, Reader's Digest's
shareholders will receive US$17 per share in cash for each
common share of Reader's Digest they hold, representing a
premium of approximately 23% over Reader's Digest's average
closing share price during the 45 trading days ended
Nov. 15, 2006.  The Board of Directors of Reader's Digest has
approved the merger agreement and recommended that Reader's
Digest's stockholders adopt the agreement.

Reader's Digest is a publisher and direct marketing company that
creates and delivers products and content for magazines, books,
recorded music collections, home videos and online websites.  
Its flagship magazine, Reader's Digest magazine, is published in
50 editions and 21 languages with a monthly circulation of
approximately 18 million and a global readership of
approximately 80 million.  The company reaches millions of
consumers through more than 20 other magazines and online
portals, including Every Day with Rachael Ray, Allrecipes.com,
and Taste of Home, America's best-selling food and cooking
magazine.  Reader's Digest's products are organized around four
key affinities: food, home and garden, health, and English as a
second language.  For the fiscal year ending June 30, 2006, the
company generated revenue of approximately US$2.4 billion.

Ripplewood Holdings has considerable investment expertise in the
publishing and direct marketing industries.  Portfolio
investments include Direct Holdings Worldwide, a leading global
direct marketer of entertainment products under the Time Life
brand, and WRC Media, a leading publisher of supplementary
educational materials for the school, library, and home markets.
WRC's stable of distinguished brands includes Weekly Reader,
World Almanac, and CompassLearning.

Timothy C. Collins, CEO of Ripplewood Holdings, remarked, "We
are very excited to reach this agreement to acquire Reader's
Digest, a truly wonderful company with a broad array of global
assets and growth businesses that are extending a rich heritage.
Together with our portfolio companies, Direct Holdings and WRC
Media, Reader's Digest will enjoy the benefits of a diversified,
multi-channel publishing platform."

Robert L. Berner III, Managing Director at Ripplewood Holdings,
added, "We look forward to working with the Reader's Digest team
to further develop and strengthen the company's robust
collection of assets, including brands, content, affinity
groups, and distribution channels."

Eric Schrier, CEO of Reader's Digest, remarked, "This
partnership represents a great opportunity for RDA and its
shareholders and employees.  I look forward to working with
Ripplewood in continuing to drive the growth of this great
company."

Affiliates of JPMorgan, Citigroup, Merrill Lynch and Royal Bank
of Scotland provided the buyer with committed debt financing,
which is subject to customary conditions.  Morgan Stanley,
JPMorgan, Citigroup, and Merrill Lynch served as financial
advisors to the investor group.  Cravath, Swaine & Moore LLP
served as legal advisor to Ripplewood Holdings.

The transaction is subject to the approval of the holders of a
majority of the outstanding shares of Reader's Digest common
stock and receipt of financing by the investor group, as well as
other customary closing conditions, including antitrust
clearance.  The transaction is expected to close in the first
quarter of calendar 2007.

                   About Ripplewood Holdings LLC

Based in New York, Ripplewood Holdings LLC is a private equity
firm established in 1995 by Timothy C. Collins.  Through five
institutional private equity funds managed by Ripplewood, the
firm has invested over US$3 billion in transactions in the U.S.,
Asia, Europe, and the Middle East.

                       About Reader's Digest

Headquartered in Pleasantville, New York, The Reader's Digest
Association Inc. (NYSE: RDA) -- http://www.rda.com/-- is a  
global publisher and direct marketer of products including
magazines, books, recorded music collections, and home videos.  
Products include Readers Digest magazine, which is published in
50 editions and 21 languages.  In the United Kingdom, the
company publishes Moneywise, a leading consumer investment /
personal finance magazine.  The company also publishes Receptar,
a lifestyle magazine in the Czech Republic, and a local edition
of The Family Handyman in Australia.

The company reported net losses for the 2007 first fiscal
quarter ended Sept. 30, 2006, were US$26.7 million compared with
US$8.2 million net loss in the comparable quarter of 2006.

At Sept. 30, 2006, Reader's Digest's balance sheet showed
US$2.249 billion in total assets, US$2.111 billion in total
liabilities, and US$138 million in total stockholders' equity.
At June 30, 2006, the Company had US$175 million in total
equity.

The Company's September 30 balance sheet showed strained
liquidity with US$824.1 million in total current assets
available to pay US$899 million in total current liabilities.


READER'S DIGEST: Moody's Reviewing Ratings and May Downgrade
------------------------------------------------------------
Moody's Investors Service is expanding the scope of its review
for downgrade of The Reader's Digest Association, Inc.'s
following the company's announcement that Ripplewood Holdings
LLC will take the company private for approximately US$2.4
billion.  

Moody's originally placed Reader's Digest's Ba1 Corporate Family
Rating and Ba2 senior unsecured note rating on review for
downgrade on Sept. 6.

Ratings remaining on review for possible downgrade:

Issuer: Reader's Digest Association, Inc. (The)

    * Corporate Family Rating, currently Ba1

    * Probability of Default Rating, currently Ba1

    * Senior Unsecured Regular Bond/Debenture,
      currently Ba2, LGD5, 82%

Moody's will evaluate Ripplewood's proposed financing structure
including the amount of any equity contribution, strategies to
grow revenues and enhance operating margins, and plans for asset
sales, but believe the cash purchase price will likely result in
a significant increase in leverage and a multi-notch downgrade
of the CFR.  Reader's Digest's existing US$300 million notes
indenture has a change of control provision that allows
bondholders to put the notes back to the company at 101% of par.
Moody's expects the notes and the existing US$500 million credit
agreement (not rated by Moody's) will be retired if the
acquisition closes at which point the rating on the notes would
be withdrawn.

As part of the review, Moody's will continue to evaluate the
company's plans to stabilize and reverse the significant
operating performance decline in the consumer business segments,
and improve working capital management in support of new product
introductions and the international expansion strategy.  Moody's
believes negative pressure remains on the rating if a leveraged
acquisition of the company does not close.

The Reader's Digest Association, Inc., headquartered in
Pleasantville, New York, is a global publisher and direct
marketer of products including magazines, books, recorded music
collections and home videos.  Products include Readers Digest
magazine, which is published in 50 editions and 21 languages.
Annual revenues approximate US$2.4 billion.


READER'S DIGEST: Pending Acquisition Cues S&P's Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Reader's Digest Association Inc. (BB/Watch Neg/--) remain on
CreditWatch with negative implications, where they were placed
on Aug. 15.  

The company has entered into a definitive agreement to be
acquired by an investor group led by Ripplewood Holdings LLC for
US$2.4 billion, including the assumption of debt.

"The transaction is expected to significantly increase debt
leverage, which is likely to result in a ratings downgrade,"
said Standard & Poor's credit analyst Hal F. Diamond.
     
Pleasantville, N.Y.-based Reader's Digest is a leading direct
marketer of books. Total debt outstanding at Sept. 30, 2006, was
US$776 million.


REFCO INC: Court Sets Protocol on Plan Confirmation Discovery
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approves procedures governing discovery with respect to the
confirmation of the Chapter 11 Plan filed by:

   -- Refco, Inc., and its debtor-affiliates;

   -- Marc S. Kirschner, the Chapter 11 Trustee for Refco
      Capital Markets, Ltd.; and

   -- the Joint Sub-Committee of the Official and Additional
      Committees of Unsecured Creditors.

Judge Drain authorizes the Plan Proponents to file on or before
November 17, 2006, a list of:

   (a) names of witnesses that the Plan Proponents anticipate
       presenting at the December 15, 2006 Plan confirmation
       hearing; and

   (b) specific area for which the testimony of any witness will
       be offered including any opinions that the witnesses will
       offer, provided that, in the event that the Plan
       Proponents determine the need to supplement their Witness
       List based on a need that was not anticipated at the time
       the list was filed, the Debtors will file a supplement to
       that list on or before December 4, 2006, providing
       additional witnesses and the general areas of testimony
       to be offered.

Notwithstanding a person's designation on the Witness List, the
Plan Proponents will not be required to present any person
during the Confirmation Hearing or precluded from offering
witnesses that do not appear on the Witness List for the limited
purpose of rebutting testimony offered or adduced at the
Confirmation Hearing in opposition to Plan confirmation.

Judge Drain overrules the objections raised by the Ad Hoc
Committee of Equity Security Holders and New York Financial LLC
on the discovery procedures.

The Ad Hoc Equity Committee has argued that the procedures (i)
permit the Plan Proponents to surprise objecting parties with
witnesses and evidence, and (ii) do not allow sufficient time
for objecting parties to conduct discovery.

On the Ad Hoc Equity Committee's behalf, Paul N. Silverstein,
Esq., at Andrews Kurth LLP, in New York, pointed out that since
objections to Plan confirmation are due by December 1, 2006,
objecting parties must have a full opportunity to discover the
Plan Proponents' positions and knowledge regarding well-known
confirmation issues, including the allowability of disputed
claims against Refco and the value of parent causes of action.

As it stands, Mr. Silverstein said, objectors are required to
file their confirmation objections before depositions have even
commenced, and well before receiving information necessary to
prepare an objection.  On the other hand, Mr. Silverstein noted,
the Plan Proponents have no deadline to file a response to the
Plan confirmation objections and to state their position on key
issues.  He said their response could be filed the day before
confirmation, raising allegations, claims or defenses that
objectors would not have had an opportunity to properly test
during discovery.

In support of the Ad Hoc Equity Committee's contentions, NY
Financial argued that the protocol "contravenes due process and
constitutes a specious attempt to modify, if not extinguish,
procedural and substantive rights afforded litigants in federal
courts and under prior [Court orders]."

Judge Drain rules that the Plan Proponents may present the
testimony of any designated person by:

   -- direct examination;

   -- use of deposition testimony in accordance with Rule 7032
      of the Federal Rules of Bankruptcy Procedure;

   -- submission of a person's declaration, or the proffer of
      testimony as contained in a previously submitted
      declaration, subject to:

         * the rights of any party that has filed a Plan
           confirmation objection on or before December 1, 2006,
           to object to the presentation; and

         * other rights afforded by the Federal Rules of
           Evidence and applicable law.

Notwithstanding the Objection Deadline, any party-in-interest
who, on or before November 10, 2006, serves a statement of
issues to be raised in opposition to the Plan confirmation, will
be entitled to seek discovery of the Plan Proponents in
connection with the Plan confirmation and the global compromise
and settlement underlying the Plan.  However, nothing will:

   (i) excuse an Eligible Objectant from, on or before the
       Objection Deadline, filing a Confirmation Objection,
       which may include additional issues not raised in the
       Issue Statement;

  (ii) preclude any party-in-interest from seeking discovery of
       any party, other than the Plan Proponents, in connection
       with a timely filed Confirmation Objection; or

(iii) preclude an Eligible Objectant from seeking discovery
       with respect to an issue not on the Eligible Objectant's
       Issue Statement that is identified during the course of
       discovery and could not have been known by the Eligible
       Objectant at the time of the Issue Statement.

Any party-in-interest who does not serve an Issue Statement on
or before the Contested Matter Commencement Date will not be
permitted to seek discovery of the Plan Proponents by any method
in connection with the Plan confirmation.

Judge Drain directs the Plan Proponents to establish an
electronic document depository by November 17, 2006, which will
include all non-privileged documents constituting relevant
information concerning the negotiation of the global compromise
and settlement underlying the Plan.

The Plan Proponents will also prepare a privilege log of all
documents relevant to the negotiation of the global compromise
and settlement underlying the Plan to which any of the Plan
Proponents assert an available privilege, which identifies by
category only the types of documents and communications as to
which privilege is asserted and the nature of the privileged
asserted.  The Privilege Log will be posted in the Document
Depository on or as soon as practicable after November 17, 2006.

Aside from access to the Document Depository, any of the
Eligible Objectants may serve upon the Plan Proponents no later
than November 10, 2006, these types of discovery requests:

   (a) requests for production pursuant to Rule 34 of the
       Federal Rules of Civil Procedure, provided that the Plan
       Proponents will not be required to produce pleadings of
       record in the Debtors' cases or related adversary
       proceedings in response to any Production Request;

   (b) notices for depositions upon oral examination of the
       persons on the Witness List pursuant to Civil Rule 30, to
       be served by Eligible Objectants not later than
       November 27, 2006, and which depositions will commence on
       December 4, 2006; and

   (c) requests for admissions pursuant to Civil Rule 36, solely
       with respect to authentication of documents to be offered
       as exhibits at the Confirmation Hearing.

In the event that a dispute arises concerning any request for
discovery, the party alleging non-compliance with any request
will inform the non-responsive party of that dispute.

The Court will conduct a pre-Confirmation Hearing conference on
December 13, 2006, at 10:00 a.m., in Room 610 of the United
States Customs House, One Bowling Green, in New York, to
discuss, among others, motions in limine and the presentation of
testimony.

In anticipation of the pre-Confirmation Conference, the Plan
Proponents and the objecting parties will each file with the
Court a list of proposed Confirmation Hearing exhibits on or
before December 11, 2006.

A full-text copy of the Court's Plan Confirmation Discovery
Order is available at no charge at
http://ResearchArchives.com/t/s?1537

                        About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a     
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement.  On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.

The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006.  Objections to
the plan, if any, must be in by Dec. 1, 2006.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.

(Refco Bankruptcy News, Issue No. 48; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000).


REFCO INC: GAIN Capital Buys Refco FX's Customer & Mktg. List
-------------------------------------------------------------
Gain Capital Group, LLC entered into a definitive Purchase
Agreement with Refco F/X Associates LLC to purchase the RFXA
retail customer account information and marketing list.  

The Purchase Agreement was approved as submitted by the
Honorable Robert D. Drain, U.S. Bankruptcy Court for the
Southern District of New York, at a hearing on Nov. 14, 2006.

Under the terms of the Agreement, privately held GAIN will pay
RFXA an upfront fee of US$750,000 for the entire customer list
of approximately 15,000 customer accounts and over 150,000
marketing contacts.  In addition, GAIN has agreed to further
remuneration in the form of an activation fee of US$100 per
account, payable on every account over 4,000 opened before the
2nd anniversary of the closing date.

In addition, GAIN will pay RFXA an Annual Maintenance Fee of 1%
of the average account balance of each Customer, payable on both
the 1st and 2nd anniversaries of the Closing Date.  The Closing
Date was Nov. 16, 2006.

"Under the terms of the proposed bankruptcy plan for Refco Inc,
and its subsidiaries, the proceeds of the sale of the RFXA
Customer List will enhance distributions to be made to creditors
of RFXA," said Refco's Chief Restructuring Officer David Pauker.  
"We are pleased to have finalized the sale to GAIN Capital,"
continued Mr. Pauker.

"In addition to operating within a solid regulatory framework,
GAIN offers RFXA clients a reliable, full service trading
solution and a commitment to the highest professional
standards," said GAIN's Chief Executive Officer Mark Galant.  
GAIN Capital Group and FOREX.com are registered with the
National Futures Association (NFA) as a Futures Commission
Merchant (NFA ID #0339826).

RFXA clients will be given the option to open an account at
either GAIN Capital or at GAIN's retail division, FOREX.com.

As reported in the Troubled Company Reporter on July 3, 2006,
RFXA and GAIN reached a preliminary agreement whereby GAIN would
acquire the RFXA retail customer account information and related
assets, subject to Court approval.  On July 26, 2006, the two
parties disclosed that the proposed Agreement had been jointly
terminated because the parties were unable to reach terms on a
final asset purchase agreement.  On Oct. 30, 2006, RFXA entered
into an Agreement with Saxobank to purchase the customer list
for US$500,000, subject to higher and better offers.  GAIN and
Saxobank participated in an auction on Nov. 9, 2006 with GAIN
ultimately submitting the highest and best offer for the RFXA
customer list.

                        About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a     
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement.  On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.

The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006.  Objections to
the plan, if any, must be in by Dec. 1, 2006.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.

(Refco Bankruptcy News, Issue No. 48; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000).


SCOTTISH RE: Moody's Reviews Ratings With Direction Uncertain
-------------------------------------------------------------
Moody's Investors Service commented that following the recent
earnings release issued by Scottish Re Group Ltd., Moody's
continues to review the company's ratings with direction
uncertain.  The rating agency added that it anticipates that it
will take rating action on Scottish Re over the very near term,
likely by mid next week, by which time it expects to have more
information on the key driver of the outcome of the review
process, which is the probability that Scottish Re will secure
an equity infusion or sign a definitive agreement related to the
sale of the company.

According to the rating agency, the direction of the review
indicates the possibility that Scottish Re's ratings could be
downgraded, upgraded or confirmed depending on future
developments at Scottish Re.  The direction of the ratings
review impacts the company's debt ratings and the Baa3 insurance
financial strength ratings of the company's core insurance
subsidiaries, Scottish Annuity & Life Insurance Company (Cayman)
Ltd. (SALIC) and Scottish Re (U.S.), Inc.

If an equity investment in or sale of the company were
completed, the ultimate ratings of the company would depend upon
the structure of the deal, including an analysis of implicit and
explicit support provided.  Moody's added that a limited equity
investment in Scottish Re would have less upward ratings
pressure than an outright purchase of the company, with ongoing
explicit or implicit support.

According to Scott Robinson, Vice President & Senior Credit
Officer at Moody's, "While the sales process has taken longer
than anticipated, we expect there to be more definitive
information -- either positive or negative -- on the likely
outcome of that process by next week, at which point we would
intend to address the status of our rating review." He added
that "given the extremely tight liquidity situation at the
company, positive momentum in the sales process is necessary for
a favorable resolution of the rating review.  Any further delay
in the process would likely result in further ratings
downgrades."

The rating agency highlighted the risk that certain items may
need to be resolved prior to a sale.  Moody's also noted that a
potential investor could help expedite the resolution of these
items.  For example, if necessary, an investor could help
Scottish Re eliminate its credit facility by helping to secure
alternate letters of credit.  Eliminating the credit facility is
important since the agreement limits the movement of funds from
SALIC to the ultimate holding company.

Convertible note holders have the right to put US$115 million of
notes to Scottish Re at par on December 6th, and as a
consequence, the company needs to move funds to the holding
company prior to that time to cover the potential call on
liquidity.  Notwithstanding the issues with the credit facility,
Moody's emphasized that the sales process is the key rating
issue as it is likely that in conjunction with any significant
investment in Scottish Re, an investor would provide some form
of short-term collateral and/or liquidity support to the
company.

Robinson added that "failure to raise outside capital would have
an immediate and adverse impact on the ratings of Scottish Re.
While Scottish could potentially eliminate the bank facility on
its own, we believe that the company would be significantly
challenged in a runoff scenario."

On Sept. 5, Moody's changed the direction of the review on the
ratings of Scottish Re (Ba3 senior unsecured) and the Baa3 IFS
ratings of SALIC and Scottish Re (U.S.), Inc. to direction
uncertain from review for possible downgrade.

Scottish Re Group Ltd. is a Cayman Islands company with
principal executive offices located in Bermuda; it also has
significant operations in Charlotte NC, Denver CO and Windsor
England.  On September 30, 2006, Scottish Re reported assets of
US$13.8 billion and shareholders' equity of US$1.3 billion.


SEA CONTAINERS: Taps Kirkland as Special Conflicts Counsel
----------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask permission
from the U.S. Bankruptcy Court for the District of Delaware to
employ Kirkland & Ellis LLP as their special conflicts
litigation counsel for litigation relating to GE SeaCO SRL, nunc
pro tunc to Oct. 15, 2006.

Edwin S. Hetherington, vice president, general counsel and
secretary of Sea Containers Ltd., states that the Debtors want
Kirkland to prosecute or defend litigation or contested matters
involving GE Capital Corporation and some of its subsidiaries
concerning GE SeaCo and other matters adverse to GE.

Mr. Hetherington notes that the Debtors' general reorganization
and bankruptcy counsel, Sidley Austin LLP, represents GE in
matters wholly unrelated to the Debtors and their Chapter 11
cases.

Because Sidley also represents the Debtors in connection with  
all operational and substantive aspects of the Chapter 11
proceedings, including with respect to issues raised by GE, the
Debtors want Kirkland to serve as their special conflicts
litigation counsel to the limited extent that underlying
litigation or certain contested matters are commenced by GE or
the Debtors during the pendency of the Chapter 11 proceedings.

Mr. Hetherington assures the Court that Sidley and Kirkland have
discussed Kirkland's role to avoid duplication of work and
expenses.  The two firms will confer on certain matters to
minimize duplicative efforts and billing.

Kirkland's current hourly rates are:

         Designation                 Hourly Rate
         -----------                 -----------
         Attorneys                   US$295 - US$825
         Paraprofessionals           US$115 - US$255

The firm will also charge the Debtors for all costs and expenses
incurred, including charges on mails, travels, overtime   
expenses, "working meals," and other overhead expenses.

Kirkland received a US$100,000 retainer for its prepetition
services.

David L. Eaton, Esq., a partner at Kirkland & Ellis, assures the
Court that his firm does not hold or represent any interests
adverse to the Debtors and their estates.

                      About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight  
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000)


SEA CONTAINERS: Wants to Employ PwC as Investment Banker
--------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the District of Delaware to
employ PricewaterhouseCoopers LLP as their restructuring
advisor, investment banker, and accounting and tax advisor, nunc
pro tunc to Oct. 15, 2006.

Edwin S. Hetherington, vice president, general counsel and
secretary of Sea Containers Ltd., says the Debtors need the
services of seasoned and experienced restructuring advisors,
investment bankers and accounting and tax financial advisors
that are familiar with the Debtors' businesses and operations,
the Chapter 11 process, and the various issues related to cross-
border insolvency proceedings.

Since January 2006, PwC has provided a wide range of services to
the Debtors, including reviewing the Company's business plan and
banking agreements, advising the Debtors with respect to certain
accounting matters, assisting the Company in refinancing certain
of its indebtedness, and assisting the Company to sell certain  
of its businesses.

Under its Restructuring Services, PwC will:

   (a) marshal information to develop an effective draft
       restructuring plan;

   (b) analyze and outline the Debtors' major potential
       financial restructuring options, including analysis of
       the advantages and disadvantages and summary of major
       issues associated with each option;

   (c) consider the restructuring options with the Debtors and
       their other advisors;

   (d) assist the Debtors to consult and negotiate with key
       financial stakeholders, regulators, rating agencies, and
       other parties, including preparing information and
       accompanying the Debtors to meetings and attending
       meetings on the Debtors' behalf;

   (e) refine the proposed restructuring plan and prepare a
       contingency plan;

   (f) assist the Debtors implement the restructuring plan and
       achieve a Restructuring Transaction;

   (g) negotiate interim amendments to existing debt facilities
       and note indentures, pending the negotiation and
       implementation of a final restructuring, assist the
       Debtors to define and negotiate with relevant parties the
       appropriate amendments while they continue to work on
       definitive restructuring agreements; and

   (h) provide other financial advisory services in relation to
       the restructuring, including seeking any regulatory
       approvals.

Under its Accounting and Tax Advisory Services, PwC will:

   (a) assist in the preparation of the Debtors' financial
       information for distribution to creditors and other
       parties-in-interest, including:

          * 13-week rolling cash flow projections;

          * cash receipts and disbursement analysis for
            inclusion in the monthly operating reports;

          * commentary and variance analysis against budgets of
            company-prepared management accounts;

          * revised short-term and medium-term forecasts and
            business plans identifying any key variances from
            earlier submissions as appropriate;

          * analysis of material asset and liability accounts
            and financial analysis of proposed asset sales for
            which Court approval is sought;

   (b) assist with the identification and implementation of
       short-term cash management procedures;

   (c) assist with the identification and cost/benefit
       evaluation of material contracts and leases to enable
       management to assess, whether to renew or discontinue
       them;

   (d) assist in compiling the Schedules of Assets and
       Liabilities and Statements of Financial Affairs, and in
       the analysis of creditor claims by type, entity and
       individual claim;

   (e) assist in the preparation of information and financial
       analysis necessary for a plan of reorganization,
       including but not limited to assistance in the
       preparation of a pro-forma balance sheet, financial
       projections and a liquidation analysis;

   (f) assist in the preparation of financial information to be
       tabled at meetings with potential investors, banks and
       other secured lenders, the Official Committee of
       Unsecured Creditors, the United States Trustee, other
       parties-in-interest, including but not limited to
       financial projections, sensitivity analysis, recovery
       analysis, and other financial information;

   (g) assist in the preparation and maintenance of the Debtors'
       project plan to coordinate the financial restructuring
       with the operational restructuring program;

   (h) provide advice in the development of an appropriate tax
       structure in conjunction with the development of the
       Debtors' proposed restructuring plan:

          * advice on the tax impact of simplifying the
            inter-company loan position;

          * tax impact of the decision to either fund or not
            fund individual group companies;

          * whether a conversion of debt for equity could result
            in change of ownership issues.  This requires
            understanding of both whether there would be a
            change of ownership for tax purposes and the
            potential downside to any change of ownership;

          * whether there are any tax costs associated with the
            disposals any of the container businesses and
            whether any tax planning could enhance the value of
            the disposals;

          * whether there are any tax costs associated with any
            non-core disposals and whether any tax planning
            could enhance the value of the disposals;

          * withholding tax implications of the proposed
            disposals and refinancing options;

          * the tax impact of transferring assets out of the
            Debtors as part of the restructuring process, should
            this be considered appropriate as a way forward;

          * advice on the tax impact of reorganizing and funding
            the pension deficit;

          * any other points that require tax consideration as
            the more detailed restructuring steps are
            formulated; and

          * general advice to the Debtors on the current tax
            status of the Debtors and Non-Debtor subsidiaries;
            and

   (i) provide advice or testimony on matters arising from PwC's
       work and provide regular updates to the Debtors.

PricewaterhouseCoopers is a multi-national corporate advisory
firm that provides a broad range of corporate advisory services
to its clients including, services pertaining to:

   -- general financial advice;
   -- mergers, acquisitions, and divestitures;
   -- special committee assignments;
   -- capital raising; and
   -- corporate restructurings.

Mr. Hetherington notes PwC has resources and restructuring
expertise in the United Kingdom and other countries throughout
the world.  He adds the firm and its senior professionals have
extensive experience in the reorganization and restructuring of
troubled companies.

PwC will charge a GBP50,000 Restructuring Services monthly fee,
a Degearing Event fee, and a Restructuring Transaction Fee equal
to 1.5% of the total par amount of Restructured Debt.

PwC employees providing restructuring services will keep time
records describing their general daily activities, the identity
of persons performing those activities, and the estimated amount
of time expended on those activities on a daily basis.

The firm will charge the Debtors per hour for Accounting and Tax
Advisory Services:

                 Designation       Hourly Rate
                 -----------       -----------
                 Partner              GBP536
                 Director             GBP442
                 Senior Manager       GBP338
                 Manager              GBP270
                 Executive            GBP212
                 Analyst              GBP130

PwC's accounting and tax professionals will provide a
description of the services rendered and the amount of time
spent on each date, in half-hour increments.

PwC will seek reimbursement for all out-of-pocket expenses,
including reasonable fees and expenses of its counsel, travel
and lodging expenses, word processing charges, messenger and
duplication services, facsimile expenses, and other customary
expenditures incurred.

Before the Petition Date, PwC received approximately
GBP4,400,000 for services rendered and expenses incurred.  PwC
will apply any excess amounts towards fees and expenses that
accrue postpetition.

Steven Pearson, a partner at PricewaterhouseCoopers LLP, assures
the Court that PwC is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code, and does not hold or
represent an interest adverse to the Debtors' estates.

                      About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight  
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000)


SEVERSTAL OAO: To Issue RUR2 Dividend for Third Quarter 2006
------------------------------------------------------------
The Board of Directors of OAO Severstal recommended a dividend
of RUR2, an equivalent of US$0.074 per share and per global
depositary receipt for the third quarter of 2006 with the record
date of Nov.16, 2006.  

Each GDR represents one share in the Company.  The GDRs are
admitted to trading on the London Stock Exchange.

The dividend, which is subject to shareholder approval, will be
voted on at the Company's EGM scheduled for Dec. 25, 2006.  If
approved, the dividend will result in an aggregate cash payment
to holders of ordinary shares and, through and subject to the
terms of the Company's depositary facility, holders of GDRs of
approximately US$70 million for the third quarter of 2006, which
should result in a total dividend payment of approximately
US$195 million for nine months of 2006, including approximately
US$125 million paid in the first half of this year.

The proposed dividend is in line with OAO Severstal's dividend
policy announced in 2003, under which it aims to pay as
dividends a minimum of 25% of net profits received by the end of
the reporting period, calculated according to IFRS.  The company
follows this policy according to the announced principles and
Russian corporate law regulations.

Following the expiration of shareholder pre-emptive rights, the
Board of Directors also set the price of the Company's 85
million newly issued ordinary shares at 332.74 rubles per share
for the open subscription, an equivalent of US$12.50 per share,
and at 322.81 rubles per share for shareholders exercising pre-
emption rights, an equivalent of US$12.10 per share.  The price
payable by shareholders exercising pre-emption rights is equal
to the price payable in the open subscription less the pro rata
per share amount of certain commissions, fees and other expenses
paid or incurred by shareholders in connection with the
Company's recent Global Offering of ordinary shares and GDRs.

According to Articles 40 and 41 of the Federal Law on Joint
Stock Companies, shareholders were granted pre-emptive rights to
purchase pro-rata to their existing shareholding in the Company
as at Sept. 14, 2006, -- the date of the meeting of the Board of
Directors of the Company where the decision to issue additional
shares was approved.

Frontdeal and other entities under the controlling shareholder's
control exercised in full their pre-emptive rights to subscribe
to newly issued shares.

                        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 around 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+.


* Moody's Mulls Changes to European Utility Rating Methodology
--------------------------------------------------------------
Moody's Investors Service has issued a Request for Comment to
solicit feedback from market participants on proposed changes to
its rating methodology for complex regulated utility groups in
Europe.

Moody's defines complex utility groups as utilities that have

   (i) more than one rated entity in the group, commonly
       within a holding and operating company structure;

   (ii) at least one group entity regulated by
        ring-fence limitations, with the result that
        cash flow circulation within the group may be
        limited by regulatory intervention; and

   (iii) a material contribution to total earnings from
         such subsidiaries (i.e. greater than 40% in total).

Although similar group structures are found in other corporate
sectors, having several group entities that access the public
financial markets independently is a characteristic feature of
utility groups, particularly in the U.K.

Moody's usually rates corporate groups on the basis of their
consolidated credit fundamentals, given the assumption that cash
can be transferred freely throughout the group.  However, a
different approach is required for structures comprising a
holding company and one or more operating companies, where the
latter are regulated businesses and are thus required to adhere
to a certain financial profile or credit rating, thereby
limiting:

   (i) the absolute leverage the company can carry, and

   (ii) in certain circumstances, the cash that can be
        taken out of the subsidiary by the wider group.

The proposed changes aim to refine and clarify Moody's current
methodology in order to ensure a consistent approach to the
assignment of ratings for groups with multiple issuers of debt.

The principal recommendations outlined in the Request for
Comment include:

   -- in normal circumstances, the ratings of   
      wholly owned regulated issuers will no longer
      be allowed to exceed the consolidated rating of
      the group.  The consolidated rating is determined
      by examining the financial profile of the
      consolidated group in the context of the combined
      business risk profile of the group.

   -- ratings of subsidiaries will be principally based on
      an assessment of their stand-alone financial strength.
      According to Moody's standard methodology, a
      rating committee may decide that, due to implied
      parental support, the subsidiary rating will benefit
      from a degree of uplift, which would typically be one
      or two notches (but could be more, if warranted).  
      However, the rating differential of regulated
      subsidiaries within the same regulatory jurisdiction
      would typically be limited to two or three notches
      from the consolidated rating.

   -- the holding company's ratings will continue to be
      notched down from the consolidated rating to
      reflect structural subordination.

   -- regulated subsidiaries may nonetheless be rated
      higher than the consolidated group rating if that
      rating has reached a level at which the regulators
      could choose to trigger an existing ring-fence
      that effectively prevents the upstreaming of funds
      from the operating subsidiary.

                           *********

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

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

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

                           *********

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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *