TCREUR_Public/061205.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Tuesday, December 5, 2006, Vol. 7, No. 241

                            Headlines


A U S T R I A

ING. A. VOELKL: Claims Registration Period Ends December 27
NESKOM INDUSTRIEANLAGEN: Creditors' Meeting Slated for Dec. 18
OTTO WERNIG: Creditors' Meeting Slated for December 18
PERO PULJA: Claims Registration Period Ends December 7
VINDOBAU LLC: Claims Registration Period Ends December 27


D E N M A R K

ANGIOTECH PHARMA: Moody's Rates US$325-Mln Senior Notes at Ba3
ANGIOTECH PHARMA: S&P Rates US$325 Million Senior Notes at B+
NOVOLIPETSK STEEL: Inks RUR200-Mln Rolls Deal with OMZ Group
NOVOLIPETSK STEEL: S&P Keeps Ratings Despite Duferco Deal


F I N L A N D

KALMAR STRUCTURED: Moody's Cuts Rating on Class C Notes to Ba3


G E R M A N Y

HECKLER & KOCH: Moody's Cuts Rating to B2 on Weak Performance
MITSUBISHI MOTORS: Secures US$485-Million Bank Loan
PRO CON: Claims Registration Ends December 11
PRODENSO DICHTSTOFFE: Claims Registration Ends December 15
RAUMAUSSTATTER LEPACK: Claims Registration Ends December 11

SCHERTGENS HANDELS: Claims Registration Ends December 14
SCHMITZ & RINGHAUSEN: Claims Registration Ends December 13


I R E L A N D

DALI CAPITAL: S&P Rates RUR864-Million Notes at Low-B
TOWER RECORDS: Files Schedules of Assets and Liabilities
TOWER RECORDS: Creditors Can File Proofs of Claim Until Jan. 21


I T A L Y

ALITALIA SPA: Italian Government to Sell 20-25% Stake
ALITALIA SPA: Lowers Net Debt by EUR51 Million at Oct.31, 2006


K A Z A K H S T A N

AKJOL JSC: South Kazakhstan Court Starts Bankruptcy Procedure
BATYSGAS OJSC: Creditors' Claims Due Jan. 12, 2007
BIRLES-1998: Jambyl Court Opens Bankruptcy Proceedings
ELIR LLP: Almaty Court Begins Bankruptcy Proceedings
HALYK SAVINGS: Launches Global Offering of Ordinary Shares

KRASNUK LLP: Claims Filing Period Ends Jan. 10, 2007
MECHANOMONTAGE OJSC: Claims Registration Ends Jan. 12, 2007
PRODUKTION TRANSE: Almaty Court Starts Bankruptcy Procedure
ROSTECHNIKA LLP: Court Commences Bankruptcy Proceedings
SHVAB U-KA: Creditors' Claims Due Jan. 10, 2007


K Y R G Y Z S T A N

DEVIS LLC: Creditors' Meeting Slated for Dec. 6
PANORAMA LLC: Creditors' Meeting Slated for Dec. 6


L U X E M B O U R G

CIRSA CAPITAL: Moody's Cuts EUR130-Mln Sr. Debt Rating to B3
CIRSA CAPITAL: S&P Assigns B- Rating on EUR100-Mln Bond Issue
CIRSA FINANCE: Moody's Lowers Senior Notes Rating to B2
CIRSA FINANCE: S&P Cuts Senior Unsecured Debt Rating to B
MOBILE TELESYSTEMS: Asks Review of Tarino Stake's Option Terms

SLAVINVESTBANK FINANCE: Fitch Assigns B- Rating on New Eurobond


N E T H E R L A N D S

KONINKLIJKE AHOLD: Earns EUR210 Million for Third Quarter 2006
WOOD STREET: S&P Assigns BB- Rating on EUR17.5-Mln Class E Notes


N O R W A Y

AKER KVAERNER: Unveils Dividend & Shareholders Policies


R U S S I A

ALAPAEVSKIY OJSC: Court Starts Bankruptcy Supervision Procedure
DISCOVERY-AGRO-STROY: Asset Sale Slated for December 20
GAZPROMBANK OAO: S&P Rates New RUR864-Million Notes at Low-B
GAZPROMBANK OAO: Parent Upgrade Cues S&P to Affirm BB+/B Ratings
KARELSKIY-5 CJSC: Court Names A. Pankov as Insolvency Manager

KOLOMNA OJSC: Moscow Court Names I. Gorn as Insolvency Manager
MOBILE TELESYSTEMS: Asks Review of Tarino Stake's Option Terms
NEW BUILDING: Court Names A. Trifonov as Insolvency Manager
NOVOLIPETSK STEEL: Inks RUR200-Mln Rolls Deal with OMZ Group
NOVOLIPETSK STEEL: S&P Keeps Ratings Despite Duferco Deal

OSTROGOZHSKIY ELEVATOR: Bankruptcy Hearing Slated for Feb. 1
OSTROGOZHSKIY OJSC: Court Names V. Dyachkov to Manage Assets
PARQUET CJSC: Vologda Court Names S. Bogay as Insolvency Manager
PAVLOVSKIY INSTRUMENTAL: Bankruptcy Hearing Slated for March 27
PRIMORSKIY EXPERIMENTAL: Court Starts Bankruptcy Supervision

PROMSVYAZBANK JSCB: Bank of Russia Registers Additional Shares
ROS-PRODUCT CJSC: Court Names D. Natalkin as Insolvency Manager
SARANSKIY WOODWORKING: Bankruptcy Hearing Slated for Feb. 12
SATELLITE CJSC: Court Names S. Slepov as Insolvency Manager
SLAVINVESTBANK LLC: Fitch Assigns B- Rating on Eurobond Debut

TNK-BP HOLDING: Confirms 1-Bln Tons of Oil in Southern Tyumen
TOT'MA-STROY-WOOD: Court Names I. Nadezhin as Insolvency Manager
VORONEZH-MEAT LLC: Court Names P. Gorshkov as Insolvency Manager


S P A I N

CIRSA BUSINESS: Moody's Lowers Corporate Family Rating to B1
CIRSA BUSINESS: S&P Lowers Corporate Credit Rating to B+
IM GRUPO: Moody's Junks EUR30-Million Series E Notes
MADRID RMBS: S&P Assigns BB Rating on EUR18.9-Mln Class E Notes
NORTEL NETWORKS: Provides R Cable with VoIP Multimedia Services


T U R K E Y

TURKCELL ILETISIM: S&P Lifts Rating to BB- on Solid Performance


U K R A I N E

UKRSIBBANK JSIB: Fitch Assigns BB- Rating on Upcoming Eurobond
UKRSIBBANK JSIB: Moody's Rates Loan Participation Notes at Ba2
TNK-BP HOLDING: Confirms 1-Bln Tons of Oil in Southern Tyumen

* S&P Rates Dnipropetrovsk City's US$10-Mln Bond Issue at B+


U N I T E D   K I N G D O M

A.R.C. GARAGES: Brings In Liquidators from BN Jackson Norton
AKER KVAERNER: Unveils Dividend & Shareholders Policies
AKSYS LTD: Sept. 30 Stockholders' Deficit Widens to US$34.8 Mln
ANGIOTECH PHARMA: S&P Rates US$325 Million Senior Notes at B+
ANGIOTECH PHARMA: Moody's Rates US$325 Million Sr. Notes at Ba3

BARTON BUILDING: G. W. Rhodes Leads Liquidation Procedure
BRITISH ENERGY: Performance Concerns Spur S&P to Revise Outlook
CAROUSEL NURSERY: Claims Filing Period Ends Dec. 22
DUTCH CROWN: Appoints Andrew McTear to Liquidate Assets
ESSEX MATCH: Creditors Confirm Liquidator's Appointment

EVERGREEN FLOORING: Names N. A. Bennett Liquidator
EXPRESSLINE DIST: Creditors Confirm Liquidator's Appointment
F & S FURNITURE: Hires Kiran Mistry to Liquidate Assets
FOUR SEASONS: Taps Joint Liquidators from O'Hara & Co.
GRAYS TYRES: Claims Registration Ends Dec. 28

JANE HEATH: Creditors Confirm Voluntary Liquidation
JDI FOOD: Nominates Laurence S. Burt as Liquidator
KAM INFORMATION: Creditors' Claims Due Jan. 5, 2007
MITSUBISHI MOTORS: Secures US$485-Million Bank Loan
KONINKLIJKE AHOLD: Earns EUR210 Million for Third Quarter 2006

PARTHENON CONSTRUCTION: Nominates Ninos Koumettou as Liquidator
PLATINUM INDEPENDENT: Creditors Confirm Liquidators' Appointment
PREMIER FOODS: Buying RHM PLC for GBP1.2 Billion
PREMIERSHIP SERVICES: Names Eric William Sheppard Liquidator
SEWGOOD COMPANY: Creditors Confirm Liquidator's Appointment

SOHAM BUILDING: Hires Liquidator from McTear Williams & Wood
STRATEGIC FOCUS: Brings In Liquidator from Unity Business

* Large Companies with Insolvent Balance Sheets

                            *********

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


ING. A. VOELKL: Claims Registration Period Ends December 27
-----------------------------------------------------------
Creditors owed money by LLC Ing. A. Voelkl (FN 105351d) have
until Dec. 27 to file written proofs of claims to court-
appointed property manager Norbert Abel at:

         Mag. Norbert Abel
         c/o Mag. Johanna Abel-Winkler
         Franz-Josefs-Kai 49/19
         1010 Vienna, Austria
         Tel: 533 52 72
         Fax: 533 52 72-15
         Email: office@abel-abel.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on Jan. 8, 2007, to consider
the adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 2102
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 16 (Bankr. Case No. 45 S 73/06y).  Johanna Abel-Winkler
represents Mag. Abel in the bankruptcy proceedings.


NESKOM INDUSTRIEANLAGEN: Creditors' Meeting Slated for Dec. 18
--------------------------------------------------------------
Creditors owed money by LLC NESKOM Industrieanlagen (FN 47046k)
are encouraged to attend the creditors' meeting at 10:00 a.m. on
Dec. 18 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1609
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 12 (Bankr. Case No. 38 S 55/06z).  Richard Proksch
serves as the court-appointed property manager of the bankrupt
estate.

The property manager can be reached at:

         Dr. Richard Proksch
         Heumarkt 9/I/11
         1030 Vienna, Austria
         Tel: 713 46 51
         Fax: 713 84 35
         E-mail: proksch@eurojuris.at


OTTO WERNIG: Creditors' Meeting Slated for December 18
------------------------------------------------------
Creditors owed money by LLC Otto Wernig (FN 39610a) are
encouraged to attend the creditors' meeting at 11:15 a.m. on
Dec. 18 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of Innsbruck
         Hall 212
         2nd Floor
         Maximilianstrasse 4
         6020 Innsbruck, Austria

Headquartered in Innsbruck, Austria, the Debtor declared
bankruptcy on Oct. 16 (Bankr. Case No. 19 S 102/06g).  Herbert
Matzunski serves as the court-appointed property manager of the
bankrupt estate.  Roland Kometer represents the Debtor in the
bankruptcy proceedings.

The property manager can be reached at:

         Dr. Herbert Matzunski
         Salurner Road 16/1
         6020 Innsbruck, Austria
         Tel: 0512/582716-0
         Fax: 0512/571467
         E-mail: law@hauska-matzunski.at

The Debtor's representative can be reached at:

         Dr. Roland Kometer
         Maria-Theresien-Road 5
         2nd Floor
         6020 Innsbruck, Austria


PERO PULJA: Claims Registration Period Ends December 7
------------------------------------------------------
Creditors owed money by KEG Pero Pulja (FN 160795p) have until
Dec. 7 to file written proofs of claims to court-appointed
property manager Wolfgang Winkler at:

         Mag. Wolfgang Winkler
         c/o Dr. Maximilian Schludermann
         Reisnerstrasse 32/12
         1030 Vienna, Austria
         Tel: 715 50 45
         Fax: 715 50 47 4
         Email: office@anwalt-vienna.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on Dec. 21 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1701
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 16 (Bankr. Case No. 6 S 95/06x).  Maximilian
Schludermann represents Mag. Winkler in the bankruptcy
proceedings.


VINDOBAU LLC: Claims Registration Period Ends December 27
---------------------------------------------------------
Creditors owed money by LLC VINDOBAU (FN 190956v) have until
Dec. 27 to file written proofs of claims to court-appointed
property manager Stefan Jahns at:

         Mag. Stefan Jahns
         c/o Dr. Christof Stapf
         Esslinggasse 9
         1010 Vienna, Austria
         Tel: 536 50 - 0
         Fax: 536 50-14
         Email: jahns@aaa-law.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Jan. 8, 2007, to consider
the adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 2102
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 16 (Bankr. Case No. 45 S 74/06w).  Christof Stapf
represents Mag. Jahns in the bankruptcy proceedings.


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


ANGIOTECH PHARMA: Moody's Rates US$325-Mln Senior Notes at Ba3
--------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Angiotech Pharmaceuticals Inc. to B1 from Ba3 and changed the
ratings outlook to negative from stable, reflecting weaker than
anticipated projected revenue and cash flow.

Moody's also lowered the speculative grade liquidity rating to
SGL-3 from SGL-2, due to the lack of external liquidity and
lower operating cash flow.

Moody's also assigned a rating of Ba3 to the company's proposed
US$325 million senior unsecured notes and affirmed the B2 rating
on the existing senior subordinated notes.  Moody's expects that
proceeds from the senior unsecured notes will be used to repay
the outstanding principal amount under its senior secured term
loan facility and the company will terminate its current
revolving credit facility.

The downgrade of Angiotech's Corporate Family Rating to B1
reflects the following factors:

   -- weaker than anticipated results than anticipated when
      Moody's initially rated the company in March 2006;

   -- a decline in EBITDA related to lower royalties from the
      Taxus drug-eluting stent, a high margin product that
      accounts for almost 50% of the company's revenues;

   -- higher than anticipated sales and marketing expenses;

   -- a slowdown in orders from original equipment
      manufacturers; and,

   -- a more pessimistic view of the drug-eluting stent market.

Moody's notes that Angiotech recently lowered guidance for 2006
revenues and earnings, based on lower than expected stent sales
by its partner, Boston Scientific, higher operating expenses and
lower sales of medical devices to original equipment
manufacturer.  Due to weaker operating trends, Moody's lowered
its cash flow estimates for fiscal 2006 through fiscal 2008.

As a result of these new cash flow projections, Moody's believes
that cash flow coverage of debt and other financial metrics are
no longer indicative of a Ba3 rating but are more indicative of
a weakly positioned B1 rated company.

The negative outlook reflects the potential for additional
downward revisions to Moody's current projections given weak
operating trends.  Moody's pessimistic view of the drug-eluting
stent market, the threat of additional competitors in the stent
market and potential disruptions to AMI business may all serve
as future catalysts to lower existing projections for revenues,
operating margins, and cash flow, causing negative pressure on
the ratings.

The downgrade in the speculative grade liquidity rating to SGL-3
from SGL-2 reflects the absence of access to external liquidity,
lower cash flow guidance and deteriorating operating trends.
The company has almost US$100 million of cash on hand which
serves as adequate cushion against unforeseen events.  However,
if the cash balance were to decline to below US$50 million, the
company's financial flexibility and liquidity would be
materially reduced, thus pressuring the rating.

New ratings assigned to Angiotech Pharmaceuticals, Inc.:

   -- US$325 million guaranteed senior unsecured notes, due
      2013, Ba3, LGD3, 46%

   -- Corporate Family Rating, downgraded to B1 from Ba3

   -- PDR Rating, affirmed Ba3

   -- US$250 million senior subordinated notes, due 2014,
      affirmed B2 rating LGD assessment changed to LGD-6, 91%
      from LGD-5, 82%

   -- Speculative Grade Liquidity Rating, downgraded to SGL-3
      from SGL-2

   -- Family LGD assessment now LGD-4, 65% versus LGD-4, 50%

The rating outlook is negative.

These ratings will be withdrawn:

   -- Senior Secured Revolver, due 2011, Ba1, LGD2, 27%
   -- Senior Secured Term Loan B, due 2013, Ba1, LGD2, 27%

Angiotech Pharmaceuticals, Inc., founded in 1992, based in
Vancouver, Canada, is a specialty pharmaceutical company that
focuses on drug-device combinations and drug-loaded surgical
biomaterial implants.  The company reported US$222 million in
total revenue for the nine months ended Sept. 30, 2006.  The
company's global locations include Denmark, Switzerland and the
United Kingdom.


ANGIOTECH PHARMA: S&P Rates US$325 Million Senior Notes at B+
-------------------------------------------------------------
Standard & Poor's lowered the corporate credit rating on
Angiotech Pharmaceuticals Inc. to 'B+' from 'BB-', and the
subordinated debt rating to 'B-' from 'B'.

Standard & Poor's also assigned a 'B+' senior unsecured debt
rating to Angiotech's proposed seven-year US$325 million senior
unsecured notes, proceeds from which, along with cash balances,
will be used to repay the company's existing US$320 million
secured Term Loan B.  Angiotech will also retire the US$75
million revolving credit facilities of its subsidiary, Angiotech
Pharmaceuticals Inc.  As a result, the 'BB-' secured bank loan
rating with a '2' recovery rating will be withdrawn.

The outlook is stable.

"The downgrade reflects Angiotech's weaker-than-anticipated
financial profile as evidenced by credit metrics that have
deteriorated since the American Medical Instruments Inc.
acquisition, and a capital structure with high debt that will
amortize more slowly than under the previous financial structure
implemented for the AMI acquisition," said Standard & Poor's
credit analyst Don Povilaitis.

Weaker-than-expected cash flow in fiscal 2006 is primarily due
to lower Taxus drug-eluting related royalties and, to a lesser
extent, from lower equipment manufacturer orders.

Vancouver, British Columbia-based Angiotech is a Canadian
specialty pharmaceutical company whose core strength is adding
pharmaceutical compounds to medical devices and targeting
interventions with high failure rates that can result in costly
corrective surgeries.  Angiotech receives royalty payments under
a licensing agreement with marketing partner Boston Scientific
Corp. for the drugs applied to coat the Taxus DES. This is
Angiotech's most important source of revenue.

These royalty payments, which accounted for about half of 2006
revenues, are the company's most important source of revenue.
Thus, product concentration remains a concern.

The success of Angiotech's Taxus DES has permitted for strong
free cash flow generation since 2004.  Still, Standard & Poor's
had expected Angiotech's 2006 pro forma lease-adjusted EBITDA to
reach about US$150 million, but several material issues have
surfaced thus far in 2006 that will preclude the company from
reaching this level.

Profitability metrics have also been affected as a result of the
lower-than-expected Taxus royalties, as well as the lower demand
for Angiotech's wound closure products.  While the company's
margins were expected to decline slightly in 2006 due to
clinical trials and increased its R&D expenses, the erosion in
cash flow is greater than anticipated.

Without meaningful improvement in Taxus revenues or from the
company's pipeline, operating margins are likely to be
relatively flat in the next few years.

The stable outlook reflects Standard & Poor's expectation that
credit metrics will gradually strengthen in the medium term.
Should, however, Taxus-related revenues become adversely
affected by competitive, legal, or safety factors, thereby
depressing cash flow, the outlook could be revised to negative.
If BSX is able to successfully deal with the onset of stent
competition in the U.S., expected by 2008, and Angiotech is able
concurrently to strengthen its capital structure, then the
outlook could be revised to positive.


NOVOLIPETSK STEEL: Inks RUR200-Mln Rolls Deal with OMZ Group
------------------------------------------------------------
UralmashSpecStal, a part of OMZ-SpecStal division of Uralmash-
Izhora Group concluded a contract with OJSC Novolipetsk Steel
for the production of working and back-up rolls for rolling
mills.  The contract provides for rolls valued at more than
RUR200 million in 2007.

UralmashSpecStal is a traditional supplier to NLMK.
UralmashSpecStal has supplied some 30-50% of all rolls for
various NLMK rolling mills.  In 2007 the company will supply
rolls made with high-chromium steel (3%-5% chromium content)
characterized by a high level of durability.  The operating
procedures for this type of rolls at a Model 2000 hot rolling
mill were developed jointly by NLMK and UralmashSpecStal experts
in order to raise the quality of the rolls.

                     About UralmashSpecStal

UralmashSpecStal produces four types of steel forged rolls: back
up and working rolls for hot and cold rolling.   Rolls produced
by OMZ companies were included into the list of best Russian
products, and were named Gold and Platinum Quality Mark at the
All-Russian Quality Mark Award.  In 2006, UralmashSpecStal
exported more than 50% of all rolls produced.

                       About Novolipetsk

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

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

                        *     *     *

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

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


NOVOLIPETSK STEEL: S&P Keeps Ratings Despite Duferco Deal
---------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Russian steelmaker OJSC Novolipetsk Steel (NLMK;
BB+/Stable/--; Russia national scale 'ruAA+') are unchanged by
the announcement of NLMK's acquisition of a 50% share in a joint
venture with Duferco Group for US$850 million.

This cash outflow will not deteriorate NLMK's strong financial
metrics, which have sufficient flexibility for M&A and
investments.  In the longer term, the business profile could
benefit from NLMK's sale to the joint venture of excess output
of semi-finished products for processing into higher-value-added
products.


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


KALMAR STRUCTURED: Moody's Cuts Rating on Class C Notes to Ba3
--------------------------------------------------------------
Moody's Investors Service downgrades to Ba3 from Ba2 the
EUR8-Mln Class C Secured Floating Rate Notes II due 2010 issued
by Kalmar Structured Finance A/S.

This downgrade is the result of a credit migration in the
underlying pool.


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


HECKLER & KOCH: Moody's Cuts Rating to B2 on Weak Performance
-------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Heckler & Koch GmbH and the rating on the company's senior
notes to B2 from B1.  The outlook remains negative.

The last rating action was on July 19, 2006, when the ratings
were confirmed following the earlier issuance of PIK notes
outside the restricted group at the ultimate parent Heckler &
Koch Beteiligungs GmbH, and the outlook was changed to negative.

"The downgrade reflects not only the continued weakening of HK's
operating performance in 2006 as a result of a decline in orders
and delays in order delivery but also Moody's view that the
company's credit metrics are increasingly unlikely to be
restored to a level commensurate with the B1 rating category
during 2007 as previously expected" said Christian Hendker,
Moody's lead analyst for Heckler & Koch.

More specifically, the downgrade of the company's ratings from
B1 to B2 reflects:

   (1) the continued weakening operating performance and
       cash generation in the first nine months of 2006 to a
       level below expectations, driven by a decline in
       revenues and delays in underlying orders delivered;

   (2) the increasing likelihood that historical revenue levels
       at around EUR150 million per year will not be restored
       over the next 12 to 18 months given the decrease in
       incoming orders, with limited expectation that the
       company will restore its credit metrics in the medium
       term to levels in line with the higher end of the single
       B rating category; and

   (3) the challenges facing the company in preserving a
       sufficient liquidity position, given the constant
       negative free cash flows in the first nine months of
       2006.

The outlook remains negative, reflecting Moody's concern that
over the next 12 to 18 months the company may:

   (1) be challenged to restore its revenue base to breakeven
       levels and to generate positive free cash flows;

   (2) likely be unable to restore credit metrics, namely Debt
       to EBITDA below 6.0x and RCF to Net debt towards mid to
       high single digits, to a level in line with the B2 rating
       category; as a consequence of such potential further weak
       operations, the concern that the company may find it
       difficult in such circumstances to maintain a sufficient
       cash cushion, which -- absent of any additional
       shareholder or third party support -- is its sole source
       of liquidity at present.

Moody's could change the outlook to stable if evidence emerges
that an increased capacity utilization and mix improvements are
resulting in a strengthening operating performance and cash
generation levels over the next 12 to 18 months, as reflected in
improving credit metrics (namely DEBT to EBITDA of below 6.0x
and RCF to Net Debt in the mid to high single digits).

The B2 ratings continue to reflect:

   (1) HK's historical protected revenue base as a leading small
       arms supplier to many NATO forces and other countries;

   (2) its well-respected brand positioning, with a high quality
       perception of its products and

   (3) Moody's expectation that HK's strong earnings strength
       track record, which recently suffered a degree of
       erosion, will be restored thanks to a turnaround in
       incoming orders and accelerated cost reduction measures.

However, the ratings remain constrained by:

   (1) HK's absolute scale and lack of segmental diversity,
       which limits its operating flexibility and makes it
       particularly vulnerable to swings in the order flow, as
       evidenced in 2006;

   (2) the company's limited cash flow stability given HK's
       exposure to working capital swings due to the high level
       of seasonality and the unpredictable order and payment
       behavior of government customers; and

   (3) its weakening credit metrics, as evidenced by significant
       leverage of Debt to EBITDA of 5.1x in 2005, which was
       further eroded in the first nine months of 2006.

Downgrades:

Issuer: Heckler & Koch GmbH

   -- Corporate Family Rating, downgraded to B2 from B1; and

   -- Senior Unsecured Regular Bond/Debenture, downgraded to
      B2 from B1.

Headquartered in Oberndorf, Germany, Heckler & Koch GmbH is a
leading defense contractor in the small arms sector of the
European NATO defence market.  In the 12 months to
September 2006, the company generated revenues of EUR123.7
million.


MITSUBISHI MOTORS: Secures US$485-Million Bank Loan
---------------------------------------------------
Mitsubishi Motors Corp. has secured a JPY56-billion (US$485
million; GBP250 million) loan as it continues its efforts to
improve its finances and turn itself around, BBC News reports.

According to Malaysia Star, Mitsubishi Motors had secured the
loan from a group of financial institutions led by the Bank of
Tokyo-Mitsubishi UFJ.

The loan is being co-managed by the Mitsubishi UFJ Trust and
Banking Corp., BBC relates.

Malaysia Star says that the syndicated loan is part of the
company's fund-raising plans, which it announced two years ago
in a revamped restructuring after DaimlerChrysler AG decided to
end financial assistance amid a massive recall scandal, and the
Mitsubishi group took the lead in providing help.

Moreover, the report notes that the loan will help fund the
development of cars.

The automaker said that through the loan, it had obtained some
10% more in funds than originally sought and added seven new
creditors, with 31 firms taking part in it.

In January 2005, Malaysia Star recounts, Mitsubishi Motors said
it had planned to obtain some JPY270 billion in funding in the
period until March 2008.

The company hopes to return to profit for the full financial
year ending March 2007, BBC news adds.

                    About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia.  Its
products are sold in over 170 countries.

                        *     *     *

As reported by the Trubled Company Reporter - Asia Pacific on
Sept. 29, Standard & Poor's Ratings Services raised its long-
term  corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile.  S&P said the outlook on
the long-term rating is stable.

As reported by the Trubled Company Reporter - Asia Pacific on
Aug. 4, 2006, Rating & Investment Information Inc. has
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.

As reported by the Trubled Company Reporter - Asia Pacific on
July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook.  The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.


PRO CON: Claims Registration Ends December 11
---------------------------------------------
Creditors of PRO CON Baugesellschaft mbH have until Dec. 11 to
register their claims with court-appointed provisional
administrator Bettina Balling.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Aschaffenburg
         Meeting Room 5.103
         1st Upper Floor
         Schlossplatz 5
         63739 Aschaffenburg, Germany

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

The District Court of Aschaffenburg opened bankruptcy
proceedings against PRO CON Baugesellschaft mbH on Oct. 9.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         PRO CON Baugesellschaft mbH
         Roentgenstr. 2-4
         63755 Alzenau, Germany

The administrator can be contacted at:

         Bettina Balling
         Alte Poststr. 59
         63801 Kleinostheim, Germany
         Tel: 06027/40690
         Fax: 06027/4069500


PRODENSO DICHTSTOFFE: Claims Registration Ends December 15
----------------------------------------------------------
Creditors of Prodenso Dichtstoffe GmbH have until Dec. 15 to
register their claims with court-appointed provisional
administrator Martin Heidrich.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 16, 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 Munich
         Meeting Room 101
         Infanteriestr. 5
         Munich, Germany

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

The District Court of Munich opened bankruptcy proceedings
against Prodenso Dichtstoffe GmbH on Oct. 11.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Prodenso Dichtstoffe GmbH
         Germeringweg 5
         81245 Munich, Germany

The administrator can be contacted at:

         Dr. Martin Heidrich
         c/o White & Case Insolvenz GbR
         Maximilianstr. 35C
         80539 Munich, Germany
         Tel: +4989/2060292-70
         Fax: +4989/2060292-81


RAUMAUSSTATTER LEPACK: Claims Registration Ends December 11
-----------------------------------------------------------
Creditors of Raumausstatter Lepack GmbH have until Dec. 11 to
register their claims with court-appointed provisional
administrator Volkhard Frenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 2:10 p.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 Dessau
         Hall 123
         Willy-Lohmann-Road 33
         Dessau, 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 Dessau opened bankruptcy proceedings
against Raumausstatter Lepack GmbH on Oct. 17.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Raumausstatter Lepack GmbH
         Breite Road 11
         06406 Bernburg, Germany

         Attn: Frank Lehmann, Manager
         Soleweg 12
         06231 Bad Duerrenberg, Germany

The administrator can be contacted at:

         Dr. Volkhard Frenzel
         Magdeburger Road 23
         06112 Halle, Germany
         Tel: 0345/2311111
         Fax: 0345/2311199


SCHERTGENS HANDELS: Claims Registration Ends December 14
--------------------------------------------------------
Creditors of Schertgens Handels- und Vertriebsgesellschaft mbH
have until Dec. 14 to register their claims with court-appointed
provisional administrator Michael Ploessner.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 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 Bonn
         Meeting Room W1.26
         1st Floor
         William Route 23
         53111 Bonn, Germany

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on March 13, 2007, at:

         The District Court of Bonn
         Meeting Room W1.24C
         1st Floor
         William Route 23
         53111 Bonn, Germany

The District Court of Bonn opened bankruptcy proceedings against
Schertgens Handels- und Vertriebsgesellschaft mbH on Oct. 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Schertgens Handels- und Vertriebsgesellschaft mbH
         Luelsdorfer Str. 34
         53842 Troisdorf, Germany

         Attn: Kurt Jeserich, Manager
         Fernblick 23
         53773 Hennef, Germany

The administrator can be contacted at:

         Michael Ploessner
         Hausdorffstrasse 11
         53129 Bonn, Germany


SCHMITZ & RINGHAUSEN: Claims Registration Ends December 13
----------------------------------------------------------
Creditors of Schmitz & Ringhausen Verwaltungs GmbH have until
Dec. 13 to register their claims with court-appointed
provisional administrator Thomas Steger.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Jan. 29, 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 Bonn
         Meeting Room W1.26
         1st Floor
         William Route 23
         53111 Bonn, Germany

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

The District Court of Bonn opened bankruptcy proceedings against
Schmitz & Ringhausen Verwaltungs GmbH on Nov. 8.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Schmitz & Ringhausen Verwaltungs GmbH
         Stifterstr. 14
         53844 Troisdorf, Germany

         Attn: Johannes Schmitz, Manager
         Thelengasse 37a
         53859 Niederkassel, Germany

The administrator can be contacted at:

         Thomas Steger
         Koelnstrasse 135
         53757 Sankt Augustin, Germany


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


DALI CAPITAL: S&P Rates RUR864-Million Notes at Low-B
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR143.2-million and RUR864-million
mortgage-backed fixed- and floating-rate notes
to be issued by Dali Capital PLC, a special purpose entity
incorporated as a limited liability company in Ireland.

The proceeds from the note issuance will be used to buy three
classes of loan notes issued by a special purpose entity
incorporated under Luxembourg law.  The Luxembourg SPE,
Gazprombank Mortgage Funding 1 S.A., will in turn use the
proceeds from the sale of the loan notes to purchase a pool of
performing mortgage certificates granted to Russian individuals.
The certificates are denominated in Russian rubles and are
secured over residential properties in Russia.

Dali will be the sole holder of the class A, B, and C loan notes
issued by GZB and the interest and principal payable under the
loan notes are the main source for the payments under the rated
notes issued by Dali.  The credit ratings assigned to Dali's
class A, B, and C notes therefore reflect the credit quality of
the portfolio of mortgage loans purchased by GZB from
Sovfintrade Ltd.

Securitization is a novel practice in Russia and securitization
concepts have not yet been tested in the courts.  This is the
first publicly placed mortgage loan securitization in Russia to
be rated by Standard & Poor's, and the first RMBS transaction
originated by SFT.

"The collateral consists of a static pool of first-lien mortgage
certificates denominated in rubles and originated by the
companies acting as regional operators in SFT's regional partner
network and the regional banks acting as initial lenders in
SFT's regional partner network," said credit analyst
Barbara Florian.

The class A notes will be denominated in euros and hedged
through a fully balance-guaranteed swap.  The class B and C
notes will be ruble-denominated but settled in U.S. dollars.
Standard & Poor's ratings on the class B and C notes address
only the timely payment of interest and principal in rubles.
The ratings do not address the exchange rate volatility between
the ruble and the U.S. dollar, or the risk that the foreign
exchange conversion might not be available.

                          Ratings List
                        Dali Capital PLC
                EUR143.2-Million and RUR864-Million
             Mortgage-Backed Fixed- and Floating-Rate
            Notes (Gazprombank Securities Series 2006-1)

                            Prelim.        Prelim.
             Class          rating         amount (Mil.)
             -----          ------         ------
             A (1)          BBB+           EUR143.2
             B              BB             RUR518
             C              B              RUR346

   (1) The class A amount is obtained by converting the ruble
       amount at an indicative exchange rate (EUR/RUR34.17).
       The euro amount of the class A notes will depend on the
       exchange rate used at closing.


TOWER RECORDS: Files Schedules of Assets and Liabilities
--------------------------------------------------------
MTS Incorporated, dba Tower Records and its debtor-affiliates,
delivered their schedules of assets and liabilities to the U.S.
Bankruptcy Court for the District of Delaware, disclosing:

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property                 US$13,532,000
  B. Personal Property            US$299,748,081
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                               US$151,706,635
  E. Creditors Holding
     Unsecured Priority Claims                         S$372,275
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                       US$132,925,351
                                  ------------     ------------
     Total                        US$313,280,081 US$285,004,261]

A full-text copy of the Debtors' 603-page list of their
schedules is available for a fee at:

  http://www.researcharchives.com/bin/download?id=061124034432

Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores run by licensees in nine different countries
including Hong Kong, Malaysia, Philippines, Republic of Ireland,
Israel, Colombia, Ecuador and Mexico.  The Company and its
affiliates previously filed for chapter 11 protection on Feb. 9,
2004 (Bankr. D. Del. Lead Case No. 04-10394).  The Court
confirmed the Debtors' plan on March 15, 2004.

The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893).  Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor.  When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million.  The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.


TOWER RECORDS: Creditors Can File Proofs of Claim Until Jan. 21
---------------------------------------------------------------
The Honorable Brendan L. Shannon of the U.S. Bankruptcy Court
for the District of Delaware fixed Jan. 21, 2007, as the last
day for persons owed money by MTS Inc. dba Tower Records and its
debtor-affiliates to file proofs of claim against the Debtors.

The Jan. 21 Bar Date applies to:

   -- entities other than governmental units holding claims that
      arose prior to Aug. 20, 2006; and

   -- entities asserting administrative expense claims against
      the Debtors arising or accruing on or before Nov. 1, 2006.

Governmental units have until Feb. 16, 2007, to file their
proofs of claim.

All entities who disagree with any amendment to the Debtors'
schedules must file their proofs of claim on or before the later
of:

   (i) Jan. 21, 2007; and

  (ii) 20 days after the date that notice of the applicable
       amendment to the schedules is served on the claimant.

Holders of claims arising from the Bankruptcy Court-approved
rejection of executory contracts or unexpired leases must
file their proofs of claim on or before the later of:

   (a) Jan. 21, 2007; and

   (b) 30 days after the date of the applicable rejection order.

Proofs of claims must be received on or before the applicable
bar date by the Debtor's claims agent at this address:

     Three A's Holdings LLC
     c/o Omni Management Group LLC
     Claims Agent
     16161 Ventura Boulevard
     PMB 617
     Encino, CA 91436

Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores run by licensees in nine different countries
including Hong Kong, Malaysia, Philippines, Republic of Ireland,
Israel, Colombia, Ecuador and Mexico.  The Company and its
affiliates previously filed for chapter 11 protection on Feb. 9,
2004 (Bankr. D. Del. Lead Case No. 04-10394).  The Court
confirmed the Debtors' plan on March 15, 2004.

The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893).  Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor.  When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million.  The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.


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


ALITALIA SPA: Italian Government to Sell 20-25% Stake
-----------------------------------------------------
The Italian government will sell around 25% stake in Alitalia
S.p.A. to help save the national carrier from financial
collapse.

"The strategic recovery of Alitalia cannot be done without the
entry in the company's capital of new industrial and financial
partners," Prime Minister Romano Prodi said in a statement
following a cabinet meeting.

Alfonso Pecoraro Scanio, Italy's Environment Minister, said
Italy plans to dispose of around 20%-25% stake in Alitalia as
part of its pledge to find a solution for the ailing airline.

The government, which has yet to name advisers on the sale, aims
to complete the process by January 2007.  Italy described the
sale as the "finalization of the company's privatization."

Antonio Di Pietro, Italy's Infrastructure Minister, said the
government's decision opened the "exit doors for those who
occupy positions of power at Alitalia because they have failed
in their mission."

As reported in the TCR-Europe on Dec. 1, Italian government is
making a three-prong approach to bail out the national carrier
through:

   -- a partnership with Air France-KLM;
   -- an alliance with an Asian carrier; or
   -- a consolidation of the domestic airline sector.

As previously reported, Alitalia confirmed that it is holding
talks with Air France over a possible alliance.  Alitalia,
however, said that the talks are "still at an early stage and
not exclusive."

Airline industry experts, however, expressed doubts that an Air
France takeover would occur given Alitalia's history of
unprofitability, poor management, labor unrest and political
interference.  Air France also stipulated that Alitalia must be
first privatized and financially restructured before it
increases its two-percent stake in the national carrier.

Giancarlo Cimoli, Alitalia's Chief Executive, told the
parliament that an alliance with other carriers is the most
viable solution for the company's woes.

"The only strategic direction for Alitalia is to integrate
itself in a big international group," Mr. Cimoli said.

Several administration ministers, however, prefer an Asian
partner for Alitalia rather than Air France.  Foreign Minister
Massimo D'Alema recently discussed with China on a reciprocal
deal that would let Chinese carrier use Italy as a base for
southern European and African markets.

Italy is also eyeing alliances or mergers for Alitalia and
smaller local airlines like Eurofly, Meridiana, Air One and
Volare, with the aim of forming a national carrier that commands
a large domestic market share and more profitable routes, thus
more attractive to a foreign partner.

As reported in the TCR-Europe on Oct. 13, Mr. Prodi said he
foresees a bankrupt national carrier in January 2007 unless
involved parties come up with an "agreed solution."

"Alitalia is going through the worst moment in its history," Mr.
Prodi told attendees of the Alitalia Summit.  "The situation is
totally out of control and I do not see any parachutes."

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

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

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

Mr. Cimoli particularly blamed:

   -- excessive market regulations;
   -- high labor costs;
   -- recurrent labor strikes;
   -- rising oil prices;
   -- airport and regulatory inefficiencies; and
   -- unfair competitive advantages' enjoyed by low-cost
      airlines.

Mr. Cimoli also chided Italy's civil aviation and antitrust
authorities for their failure to secure Alitalia from "unfair"
competition.  Mr. Cimoli said these conditions have made it
unviable for Alitalia to compete with low-cost and foreign
rivals.

Mr. Cimoli had vowed to have Alitalia make a profit by year-end,
but reaching the goal seems unlikely after the carrier posted
EUR221 million in first-half net losses.  Mr. Cimoli said the
carrier is headed for a EUR300-million loss this year.

                         About Alitalia

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

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


ALITALIA SPA: Lowers Net Debt by EUR51 Million at Oct.31, 2006
--------------------------------------------------------------
Alitalia S.p.A.'s net debt as of Oct. 31, 2006, amounted to
EUR972 million, showing a decrease in net indebtedness of
EUR51 million (-5.0%) compared to the situation on Sept. 30,
2006.

Alitalia's net debt including short-term net financial credits
for subsidiaries on Oct. 31, 2006, amounted to EUR948 million,
showing a decrease in net indebtedness of EUR56 million (-5.6%)
compared to net debt as of Sept. 30 2006.

The Group's cash-to-hand and short-term financial credits as of
Oct. 31, 2006, amounted to EUR769 million while the parent
company Alitalia as of the same date amounted to EUR801 million.

It should be noted that as of Oct. 31, 2006, there were several
leasing contracts at the Group level -- referring almost
entirely to fleet aircraft mostly held by the parent company
amounting to EUR138 million -- whose capital share, including
lease closure value, amounted to EUR154 million, of which
EUR21 million euros represent the current capital share falling
due within 12 months of the reference date, with EUR19 million
held by the parent company.

By comparison, the same figure as of Sept. 30 2006, amounted to
EUR155 million, of which EUR21 million falling due in the 12
months from the reference date.

It should also be noted that existing debts to banks are almost
entirely backed up by real guarantees (mortgages on aircraft) or
by personal guarantees (mainly guarantees issued by banks for
export credit).  The relative financing contracts contain
standard legal clauses relating to withdrawal.  None of the
contracts refer to specific requirements regarding assets or
economic/financial aspects, in order to maintain the credit line

During October 2006, repayments were made of medium/long-term
financing amounting to about EUR2 million.

Regarding debts of a financial, fiscal and social welfare
nature, there were no outstanding sums or payment irregularities
on Oct. 31, 2006, both for the parent company and for the other
companies in the Group.

As far as debts of a commercial nature are concerned, there were
no outstanding sums or payment irregularities on Oct. 31, 2006,
both for the parent company and for other Group companies,
except for those relating to disputed situations.


Regarding the latter, there were outstanding sums owed to some
airport management companies for disputed debts amounting to a
total of EUR82 million as of Oct. 31, 2006.

In addition, decisions are still pending for the petitions filed
by Alitalia regarding:

   -- injunctions issued by an airport management company for
      a total of about EUR14 million (5 decrees);

   -- a further injunction has been issued by an IT
      services supplier for about EUR812,000 (1 decree);

   -- another injunction has been issued by a professional
      studio for EUR534,000;

   -- a contractor for restructuring work has issued
      an injunction for about EUR635,000 (1 decree);

   -- an injunction issued by a supplier of on-board movies for
      around EUR909,000 (1 decree); and

   -- there are injunctions issued by suppliers for a total
      of around EUR110,000 (6 decrees).

Except for the above, there are no other injunction orders or
executive actions undertaken by creditors notified as of
Oct. 31, 2006, nor are there any threats by suppliers to suspend
operations.

                         About Alitalia

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

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


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


AKJOL JSC: South Kazakhstan Court Starts Bankruptcy Procedure
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan Region commenced bankruptcy proceedings against
JSC Akjol.


BATYSGAS OJSC: Creditors' Claims Due Jan. 12, 2007
--------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
Region declared OJSC Batysgas insolvent on Oct. 23.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Jan. 12, 2007, to submit written proofs of
claim to:

         OJSC Batysgas
         Sholohov Str. 2/4
         Uralsk
         West Kazakhstan Region
         Kazakhstan
         Tel: 8 (3112) 53-84-67


BIRLES-1998: Jambyl Court Opens Bankruptcy Proceedings
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl Region
commenced bankruptcy proceedings against LLP Birles-1998 on
Oct. 20.


ELIR LLP: Almaty Court Begins Bankruptcy Proceedings
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty
commenced bankruptcy proceedings against LLP Elir (RNN
600700027542) on Oct. 31.


HALYK SAVINGS: Launches Global Offering of Ordinary Shares
----------------------------------------------------------
JSC Halyk Savings Bank of Kazakhstan has launched a global
offering of existing shares in the form of global depositary
receipts, each GDR representing four ordinary shares.

The initial offer size is expected to be up to 42.5 million
GDRs, increasing to 46.75 million GDRs if the over-allotment
GDRs remain sold in full.

The GDR offer price is expected to be disclosed of on or around
Dec. 15, 2006.  An indicative price range for the GDRs will be
announced in due course.

After the pricing but prior to the closing of the Global Offer,
the Bank will launch a rights issue to holders of ordinary
shares registered prior to the Global Offer of approximately
55 million ordinary shares priced at the Kazakh Tenge price per
share equivalent of the final GDR offer price.

Holding Group Almex JSC, the Bank's majority shareholder, has
indicated that it will use a portion of the proceeds received
from the sale of the GDRs to subscribe for at least the full
number of shares it is entitled to purchase pursuant to its pre-
emptive rights in the rights issue.

The Bank is one of Kazakhstan's leading banks, with the largest
retail customer base and distribution network of any bank in
Kazakhstan.  The Bank is developing as a universal financial
services group offering a broad range of services (banking,
pensions, insurance, leasing, brokerage and asset management) to
its retail, SME and corporate customers.

Credit Suisse, Deutsche Bank and Halyk Finance are acting as
Joint Global Co-ordinators of the Global Offer.  Credit Suisse
and Deutsche Bank are acting as Joint Bookrunners of the Global
Offer.

Headquartered in Almaty, Kazakhstan, Halyk is Kazakhstan's
third-largest bank with a market share of 12% by assets, which
stood at KZT 656 billion at end-March 2006.  It is also the
largest retail banking franchise, with a 22% market share in
retail loans and deposits.

                         *     *     *

As reported in the TCR-Europe on Sept. 4, Moody's Investors
Service upgraded the Financial Strength Rating of Halyk Bank
(Kazakhstan) to D from D-.  Following the upgrade, the outlook
on the FSR has been changed to stable from positive.  The bank's
other ratings have been affirmed with a stable outlook,
including Ba1/NP long-term and short-term deposit as well as a
Baa1 long-term rating for senior unsecured debt issued under
foreign law by Halyk Bank either directly or through its
subsidiary special-purpose vehicle HSBC (Europe) B.V.

As reported in the TCR-Europe on July 20, Standard & Poor's
Ratings Services took these rating actions on Halyk Savings Bank
of Kazakhstan:

   -- long-term counterparty credit rating: raised to
      'BB+' from 'BB'; and

   -- 'B' short-term counterparty credit rating: affirmed,
      the outlook is stable.

In June 2006, Fitch Ratings assigned Kazakhstan-based
Halyk Bank's US$300 million 7.75% eurobond due May 2013 a final
Long-term BB+ rating.

Halyk is rated Long-term Foreign Currency IDR BB+ with a Stable
Outlook, Local Currency IDR BBB- with a Stable Outlook,
Short-term Foreign Currency B, Short-term Local Currency F3,
Individual C/D, and Support 3.


KRASNUK LLP: Claims Filing Period Ends Jan. 10, 2007
----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region entered on Oct. 20 an ordering placing LLP Krasnuk into
compulsory liquidation.

Creditors have until Jan. 10, 2007, to submit written proofs of
claim to:

         LLP Krasnuk
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-06-50
         Fax: 8 (3232) 24-57-72


MECHANOMONTAGE OJSC: Claims Registration Ends Jan. 12, 2007
-----------------------------------------------------------
The Temirtausky Plant-Branch of OJSC Mechanomontage has declared
insolvency.  Creditors have until Jan. 12, 2007, to submit
written proofs of claim to:

         OJSC Mechanomontage
         Michurin Str. 14
         Temirtau
         Karaganda Region
         Kazakhstan


PRODUKTION TRANSE: Almaty Court Starts Bankruptcy Procedure
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty
commenced bankruptcy proceedings against LLP Produktion Transe
(RNN 600700172984) on Nov. 3.


ROSTECHNIKA LLP: Court Commences Bankruptcy Proceedings
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region commenced bankruptcy proceedings against
LLP Rostechnika on Oct. 31.


SHVAB U-KA: Creditors' Claims Due Jan. 10, 2007
-----------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region entered on Oct. 20 an order placing LLP Shvab U-Ka into
compulsory liquidation.

Creditors have until Jan. 10, 2007, to submit written proofs of
claim to:

         LLP Shvab U-Ka
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-06-50
         Fax: 8 (3232) 24-57-72


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


DEVIS LLC: Creditors' Meeting Slated for Dec. 6
-----------------------------------------------
Creditors of LLC Devis will convene at 11:00 a.m. on Dec. 6 at:

         Ibraimov Str. 30-1
         Bishkek, Kyrgyzstan

Creditors must submit their proofs of claim and be registered
within seven days before the meeting with the temporary
insolvency manager.

The Temporary Insolvency Manager is:

         Mr. Salamatbek Asankojoev
         Tel: (+996 312) 68-12-12


PANORAMA LLC: Creditors' Meeting Slated for Dec. 6
--------------------------------------------------
Creditors of LLC Panorama will convene at 10:00 a.m. on Dec. 6
at:

         Ibraimov Str. 30-1
         Bishkek, Kyrgyzstan

Creditors must their proofs of claim and be registered within
seven days before the meeting with the temporary insolvency
manager.

The Temporary Insolvency Manager is:

         Mr. Salamatbek Asankojoev
         Tel: (+996 312) 68-12-12


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


CIRSA CAPITAL: Moody's Cuts EUR130-Mln Sr. Debt Rating to B3
------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Cirsa Business Corporation S.A. to B1 from Ba3, the rating of
Cirsa Finance Luxembourg S.A.'s EUR270-million senior notes
due 2014 to B2 from B1 and the rating of Cirsa Capital
Luxembourg S.A.'s EUR130-million senior notes due 2012 to B3
from B2.

Concurrently, Moody's assigned a provisional (P)B3 rating to the
additional EUR100-million senior notes due 2012 expected to be
issued by Cirsa Capital Luxembourg on similar terms and
conditions to the existing EUR130 million notes.  The outlook on
all ratings is stable.

The downgrades conclude the rating review initiated on
Oct. 2 and reflect Moody's view that, despite Cirsa's improved
operating performance in the first nine months of 2006, the
improvement in credit metrics has been slower than anticipated
resulting in the credit metrics today not being in line with
Moody's expectations for the rating category.

While Cirsa's business risk profile continues to reflect "Ba"
characteristics, supported by its clear leadership in the
fragmented Spanish gaming market and the relatively favorable
fundamentals of the Spanish and Latin American gaming markets,
the company currently displays credit metrics more commensurate
with a "B" rating.  Moody's expects Cirsa to post an Adjusted
Debt / Adjusted EBITDAR ratio of around 5.6x and a Retained Cash
Flow to Adjusted Debt ratio of 10% by year-end 2006.

Moody's adjusted debt includes a EUR343 million adjustment for
operating leases and does not include cash balances.  In Moody's
opinion, Cirsa's rating as a result of this action will now
become more adequately positioned at the B1 rating category.
The rating agency does expect the company to become more
strongly positioned within the rating category as the strategic
initiatives being implemented by the new management team are
successfully executed resulting in anticipated improvements in
credit metrics.

In Moody's opinion, the task of improving financial metrics will
prove challenging for Cirsa as a result of:

   (i) the company's publicly stated intention to continue to
       pursue external growth opportunities,

  (ii) the high concentration of profitability in the two
       riverboat casinos in Buenos Aires, which are exposed to
       high regulatory and litigation risk, and

(iii) the delays associated with achieving profitability in
       some of the divisions, particularly Manufacturing and
       Interactive.

However, Moody's recognizes these positive factors:

   (i) Cirsa's improved operating performance during 2006,

  (ii) the strategic initiatives launched by the new management
       team aimed at improving efficiency and streamlining
       operations (as reflected by the combination of the
       Manufacturing and Interactive divisions into a unified
       new B2B division), which should have a direct impact on
       EBITDA going forward;

(iii) the commitment to more rigorous investment criteria
       (as shown by the discipline displayed by the company in
       recent license bids where Cirsa was outbid in the
       bidding processes for some casino licenses in Chile and
       in Lloret de Mar);

  (iv) the improvement in profitability at the new casinos in
       Latin America, which will progressively reduce the
       contribution of the Buenos Aires casino to the overall
       EBITDA of the group;

   (v) the commitment to reach specific financial targets such
       as Net debt/EBITDA (as reported by the company)
       below 4x; and

  (vi) the improved debt maturity profile following
       the issuance of the additional EUR100 million
       notes, which will be used to refinance short-term debt.

Ratings affected:

Cirsa Business Corporation S.A

    * corporate family rating, downgraded to B1 from Ba3

Cirsa Finance Luxembourg S.A.

    * EUR270-million senior notes due 2014, downgraded from
      B1 to B2

Cirsa Capital Luxembourg S.A.

    * EUR130-million senior notes due 2012, downgraded from
      B2 to B3; and

    * EUR100-million senior notes due 2012: (P)B3.

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

Headquartered in Terrassa, Spain, Cirsa is a leading Spanish
gaming company, with substantial operations in Latin America.
For the twelve months ended September 2006, Cirsa had revenues
of EUR1.643 billion and EBITDA of EUR123.7 million.


CIRSA CAPITAL: S&P Assigns B- Rating on EUR100-Mln Bond Issue
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Spanish gaming company Cirsa Business
Corp. S.A. to 'B+' from 'BB-'.  The outlook is stable.

At the same time, the senior unsecured debt rating on related
entity Cirsa Finance Luxembourg S.A. was lowered to 'B' from
'B+' and the senior unsecured debt rating on Cirsa Capital
Luxembourg S.A. was lowered to 'B-' from 'B'.  Cirsa Capital
Luxembourg's proposed EUR100-million bond issue due 2012
has been assigned a preliminary rating of 'B-', subject to
receipt of final documentation.  All bonds are guaranteed by
Cirsa.

"The one-notch downgrade reflects Cirsa's aggressive financial
profile and a shortfall in achieving expected leverage ratios,"
said Standard & Poor's credit analyst Philip Temme.

Standard & Poor's warned in May 2006 that a substantial
improvement in operating cash flows would be required to avoid a
downgrade, and set 2006 target leverage ratios of lease-adjusted
debt to EBITDA below 4x and funds from operations (FFO) to
adjusted debt of 15%.  Given that Cirsa's lease-adjusted debt to
EBITDA was well in excess of this target in the 12 months to
Sept. 30, 2006, and FFO to debt was 14% at the same date, key
leverage measures remain outside levels commensurate with a
'BB-' rating.

Assuming the bond refinancing proceeds as planned, thereby
improving the group's liquidity position, Standard & Poor's
expects the outlook for Cirsa to remain stable.

"To maintain the ratings, we expect Cirsa to continue to
exercise capital expenditure restraint and to achieve lease-
adjusted debt to EBITDA of about 5x and FFO to net debt of about
15%," Mr. Temme added.

The outlook could be revised to positive in the medium term if
the new CEO's restructuring measures and commitment to
deleveraging feed through successfully to key credit measures--
specifically, a return to lease-adjusted debt to EBITDA of about
4x.


CIRSA FINANCE: Moody's Lowers Senior Notes Rating to B2
-------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Cirsa Business Corporation S.A. to B1 from Ba3, the rating of
Cirsa Finance Luxembourg S.A.'s EUR270-million senior notes
due 2014 to B2 from B1 and the rating of Cirsa Capital
Luxembourg S.A.'s EUR130-million senior notes due 2012 to B3
from B2.

Concurrently, Moody's assigned a provisional (P)B3 rating to the
additional EUR100-million senior notes due 2012 expected to be
issued by Cirsa Capital Luxembourg on similar terms and
conditions to the existing EUR130 million notes.  The outlook on
all ratings is stable.

The downgrades conclude the rating review initiated on
Oct. 2 and reflect Moody's view that, despite Cirsa's improved
operating performance in the first nine months of 2006, the
improvement in credit metrics has been slower than anticipated
resulting in the credit metrics today not being in line with
Moody's expectations for the rating category.

While Cirsa's business risk profile continues to reflect "Ba"
characteristics, supported by its clear leadership in the
fragmented Spanish gaming market and the relatively favorable
fundamentals of the Spanish and Latin American gaming markets,
the company currently displays credit metrics more commensurate
with a "B" rating.  Moody's expects Cirsa to post an Adjusted
Debt / Adjusted EBITDAR ratio of around 5.6x and a Retained Cash
Flow to Adjusted Debt ratio of 10% by year-end 2006.

Moody's adjusted debt includes a EUR343 million adjustment for
operating leases and does not include cash balances.  In Moody's
opinion, Cirsa's rating as a result of this action will now
become more adequately positioned at the B1 rating category.
The rating agency does expect the company to become more
strongly positioned within the rating category as the strategic
initiatives being implemented by the new management team are
successfully executed resulting in anticipated improvements in
credit metrics.

In Moody's opinion, the task of improving financial metrics will
prove challenging for Cirsa as a result of:

   (i) the company's publicly stated intention to continue to
       pursue external growth opportunities,

  (ii) the high concentration of profitability in the two
       riverboat casinos in Buenos Aires, which are exposed to
       high regulatory and litigation risk, and

(iii) the delays associated with achieving profitability in
       some of the divisions, particularly Manufacturing and
       Interactive.

However, Moody's recognizes these positive factors:

   (i) Cirsa's improved operating performance during 2006,

  (ii) the strategic initiatives launched by the new management
       team aimed at improving efficiency and streamlining
       operations (as reflected by the combination of the
       Manufacturing and Interactive divisions into a unified
       new B2B division), which should have a direct impact on
       EBITDA going forward;

(iii) the commitment to more rigorous investment criteria
       (as shown by the discipline displayed by the company in
       recent license bids where Cirsa was outbid in the
       bidding processes for some casino licenses in Chile and
       in Lloret de Mar);

  (iv) the improvement in profitability at the new casinos in
       Latin America, which will progressively reduce the
       contribution of the Buenos Aires casino to the overall
       EBITDA of the group;

   (v) the commitment to reach specific financial targets such
       as Net debt/EBITDA (as reported by the company)
       below 4x; and

  (vi) the improved debt maturity profile following
       the issuance of the additional EUR100 million
       notes, which will be used to refinance short-term debt.

Ratings affected:

Cirsa Business Corporation S.A

    * corporate family rating, downgraded to B1 from Ba3

Cirsa Finance Luxembourg S.A.

    * EUR270-million senior notes due 2014, downgraded from
      B1 to B2

Cirsa Capital Luxembourg S.A.

    * EUR130-million senior notes due 2012, downgraded from
      B2 to B3; and

    * EUR100-million senior notes due 2012: (P)B3.

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

Headquartered in Terrassa, Spain, Cirsa is a leading Spanish
gaming company, with substantial operations in Latin America.
For the twelve months ended September 2006, Cirsa had revenues
of EUR1.643 billion and EBITDA of EUR123.7 million.


CIRSA FINANCE: S&P Cuts Senior Unsecured Debt Rating to B
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Spanish gaming company Cirsa Business
Corp. S.A. to 'B+' from 'BB-'.  The outlook is stable.

At the same time, the senior unsecured debt rating on related
entity Cirsa Finance Luxembourg S.A. was lowered to 'B' from
'B+' and the senior unsecured debt rating on Cirsa Capital
Luxembourg S.A. was lowered to 'B-' from 'B'.  Cirsa Capital
Luxembourg's proposed EUR100-million bond issue due 2012
has been assigned a preliminary rating of 'B-', subject to
receipt of final documentation.  All bonds are guaranteed by
Cirsa.

"The one-notch downgrade reflects Cirsa's aggressive financial
profile and a shortfall in achieving expected leverage ratios,"
said Standard & Poor's credit analyst Philip Temme.

Standard & Poor's warned in May 2006 that a substantial
improvement in operating cash flows would be required to avoid a
downgrade, and set 2006 target leverage ratios of lease-adjusted
debt to EBITDA below 4x and funds from operations (FFO) to
adjusted debt of 15%.  Given that Cirsa's lease-adjusted debt to
EBITDA was well in excess of this target in the 12 months to
Sept. 30, 2006, and FFO to debt was 14% at the same date, key
leverage measures remain outside levels commensurate with a
'BB-' rating.

Assuming the bond refinancing proceeds as planned, thereby
improving the group's liquidity position, Standard & Poor's
expects the outlook for Cirsa to remain stable.

"To maintain the ratings, we expect Cirsa to continue to
exercise capital expenditure restraint and to achieve lease-
adjusted debt to EBITDA of about 5x and FFO to net debt of about
15%," Mr. Temme added.

The outlook could be revised to positive in the medium term if
the new CEO's restructuring measures and commitment to
deleveraging feed through successfully to key credit measures --
specifically, a return to lease-adjusted debt to EBITDA of about
4x.


MOBILE TELESYSTEMS: Asks Review of Tarino Stake's Option Terms
--------------------------------------------------------------
MTS Finance S.A., a 100%-owned subsidiary of Mobile TeleSystems
OJSC, advises that it has received from Nomihold Securities Inc.
a put notice pursuant to an option agreement for the 49% stake
of Tarino Ltd., the indirect owner of Bitel LLP, a Kyrgyz GSM
mobile phone operator, and states that it will be defending its
rights.

As announced earlier by the Company, MTS Finance, a 100%-owned
subsidiary of MTS registered in Luxembourg, acquired a 51% stake
in Tarino Limited from Nomihold at the end of 2005.  Tarino
Limited was at that time the indirect owner, through its 100%
owned subsidiaries, of Bitel.  Reservspetzmet in Bishkek seized
Bitel's offices three days after the official announcement of
the acquisition. From that moment on the owners of Tarino
Limited have no control over Bitel.

At the time of the transaction between MTS and Nomihold
regarding the acquisition of 51% stake in Tarino Limited and
signing of the put option for the remaining stake, MTS' actions
were dictated by the fact that Tarino Limited had complete
control over Bitel.

As announced in December 2005, MTS acquired a 51% stake in
Tarino Limited. Tarino Limited was at that time the indirect
owner, through its 100% owned subsidiaries, of Bitel.

At the end of last week MTS received a letter from Nomihold, the
owner of a 49% stake of Tarino Limited, stating its intent to
exercise the put option and sell its stake for US$170 million to
MTS.

Were Nomihold able to comply fully with its contractual and
legal duties, MTS would honor its obligations under its
agreement with Nomihold.  However, circumstances with respect to
certain Tarino subsidiaries including Bitel -- the transfer of
which was the basic objective of the agreement -- would appear
to make it impossible for Nomihold to comply with its
obligations during the option period.

In these circumstances, the Company believes that if Nomihold
insists on exercising the put option, Nomihold's notice will be
without legal basis and MTS will vigorously defend its rights.

MTS confirms that in case of a dispute regarding the exercise of
the put option, shareholders of Sistema will assist MTS in
defending its rights.  If the arbitrage decision does not favor
MTS, shareholders of Sistema made the decision to compensate MTS
for a loss in the amount of US$170 million.

In spite of the received guarantees that are aimed at defending
the interests of all MTS shareholders independent of the
proceedings with Nomihold, the Company as always intends to
employ all of its resources in defending its interests over its
ownership rights over Bitel and the option agreement.

                    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.


SLAVINVESTBANK FINANCE: Fitch Assigns B- Rating on New Eurobond
---------------------------------------------------------------
Fitch Ratings assigned Slavinvest Finance S.A.'s upcoming issue
of limited recourse loan participation notes an expected Long-
term 'B-' rating and an expected Recovery Rating 'RR4'.

The notes are to be used for the sole purpose of financing a
loan to Slavinvestbank LLC, which is rated Issuer Default 'B-',
Short-term 'B', Individual 'D/E', Support '5' and National Long-
term 'BB+(rus)'.  The bank's Issuer Default, Support and
National Long-term ratings are on Rating Watch Positive.  The
final rating on the bond is contingent upon receipt of final
documentation conforming materially to information already
received.

Slavinvest Finance S.A. is a Luxembourg-domiciled special
purpose vehicle and will only pay noteholders principal and
interest received from SIB.  The SPV will charge certain of its
rights and interests under the loan agreement to Deutsche
Corporate Trustee Company Ltd. for the benefit of noteholders
under a trust deed.

The claims under the loan agreement will rank at least equally
with the claims of other senior unsecured creditors of SIB, save
those whose claims are preferred by any bankruptcy, insolvency,
liquidation or similar laws of general application.  Under
Russian law, the claims of retail depositors and accountholders
rank above those of other senior unsecured creditors.  At end-
H106, retail deposits and accounts accounted for 6.7% of total
liabilities, according to the bank's reviewed IFRS accounts.
Furthermore, related-party liabilities constitute a significant
part of SIB's total liabilities (28% at end-H106).  In Fitch's
opinion, this could give rise to additional risks for
bondholders in a default scenario, albeit not to the extent that
these would justify a lower Recovery Rating than 'RR4' for the
current transaction.

The loan agreement contains covenants restricting mergers and
disposals by SIB and its material subsidiaries, transactions
between the bank and its affiliates and certain payments and
distributions by the bank and its subsidiaries.  It also
contains a cross default clause and a 'negative pledge' clause,
the latter of which allows for a degree of securitization by
SIB.

Were such transactions to be undertaken, Fitch comments that the
nature and extent of any over-collateralization would be
assessed by the agency for any potential impact on unsecured
creditors. SIB must ensure full compliance with Central Bank of
Russia regulations, including minimum mandatory capital adequacy
requirement currently set at 10%, and its minimum total capital
ratio as calculated in accordance with Basle I recommendations
should at any time not be less than 12% in case the bank is
rated below Issuer Default 'BB' or not less than 10% if the bank
is rated at or above 'BB'.


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


KONINKLIJKE AHOLD: Earns EUR210 Million for Third Quarter 2006
--------------------------------------------------------------
Koninklijke Ahold N.V. released it financial results for the
third quarter and nine months ended Sept. 30, 2006.

Koninklijke Ahold posted EUR210 million in net profit against
EUR10.32 billion in revenues for the third quarter of 2006,
compared with EUR236 million in net loss against EUR10.25
billion in revenues for the same period in 2005.

The company registered EUR675 million in net income against
EUR34.88 billion in revenues for the first nine months of 2006,
compared with EUR38 million in profit against EUR33.66 billion
in revenues for the same period in 2005.

                      Income by Operations

Stop & Shop/Giant-Landover Arena

Operating income in the first quarter of 2006 included a gain of
US$23 million (EUR19 million) on the sale of real estate,
primarily two distribution facilities.

This was partially offset by restructuring and severance charges
of US$20 million (EUR17 million) related primarily to the
closure of one of these facilities.  Furthermore, first quarter
2006 operating income was positively affected by a one-time
benefit of US$27 million (EUR23 million) due to a negotiated
plan amendment in other post-employment benefits.  Operating
income in the second quarter of 2005 was affected by
restructuring and related charges of US$20 million
(EUR16 million) related to supply chain streamlining and store
closures at Giant-Landover.

Giant-Carlisle/Tops Arena

Operating income in the third quarter of 2006 includes
impairment losses of US$9 million (EUR7 million), incurred in
the Northeast Ohio region.  Operating income in the third
quarter of 2005 included impairment losses on goodwill of
US$17 million (EUR14 million) and on property, plant and
equipment of US$57 million (EUR47 million).

These were mainly incurred in the Northeast Ohio and eastern New
York region and were partially offset by gains on the sale of
property, plant and equipment of US$13 million (EUR11 million)
resulting from the sale of stores located in eastern New York
and the Adirondacks region of New York.  In addition, gains on
the sale of property, plant and equipment in the first three
quarters of 2005 (EUR24 million) included the sale of 198
convenience stores operating under the banners of Wilson Farms
and Sugarcreek in the second quarter of 2005.

Central Europe Arena

As a result of the announcement on Nov. 6, 2006, to divest the
activities in Slovakia, an impairment loss of EUR19 was
recognized in the third quarter of 2006.  A gain of EUR41
million on the sale of three shopping centers in Poland and the
Czech Republic was recognized in the first quarter of 2006.

Gains on the sale of property, plant and equipment in the first
three quarters of 2005 (EUR21 million) included the sale of 13
hypermarkets in Poland in the first quarter of 2005.

Schuitema

Operating income in the third quarter of 2006 includes expenses
of EUR5 million related to an adjustment of the pension
liability resulting from an omission in the actuarial
calculation that originated prior to 2004.

USF Broadline

Operating income in the third quarter of 2006 includes the
reversal of an impairment loss of US$9 million (EUR7 million)
following the sale and partial leaseback of an office building.
First quarter 2006 operating income included US$20 million
(EUR17 million) of annual vendor allowances that were previously
principally recognized in the fourth quarter.

The improvements in U.S. Foodservice's vendor allowance tracking
processes allow for the recognition of these allowances based on
purchasing activity over the course of the year, rather than at
the end of the year.  Operating income in the third quarter of
2005 included a gain on the sale of the Sofco division,
partially offset by restructuring charges related to facility
consolidation and employee severance, resulting in a net gain of
US$15 million (EUR12 million).

Group Support Office

Operating income in the second quarter of 2006 included a
release from a legal provision of EUR7 million.  Operating
income in the third quarter of 2005 was negatively impacted by
the settlement in the securities class action and the
VEB proceedings for an amount of EUR896 million and positively
impacted by a release of a legal provision (EUR37 million) with
respect to a dispute on the appropriate conversion into
Argentine Pesos of an amount previously payable to a third party
in U.S. dollars pursuant to Argentine law.

Included in operating income are impairments and gains and
losses on the sale of assets and disposal groups held for sale.

As of Sept. 30, 2006, Ahold had EUR18.56 billion in total
assets, EUR13.52 billion in total liabilities, and EUR5.04
billion in shareholders' equity.

                         About Ahold

Headquartered in Amsterdam, the Netherlands, Koninklijke Ahold
N.V. -- http://www.ahold.com/-- retails food through
supermarkets, hypermarkets and discount stores in North and
South America, and Europe.  The company's chain stores include
Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco.  Ahold also
supplies food to restaurants, hotels, healthcare institutions,
government facilities, universities, stadiums, and caterers.

                        *     *     *

Moody's Investors Service and Standard and Poor's had assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.


WOOD STREET: S&P Assigns BB- Rating on EUR17.5-Mln Class E Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR447.5-million senior secured and
deferrable floating-rate notes to be issued by Wood
Street CLO IV B.V.  In addition, Wood Street CLO IV will issue
EUR52.5-million of unrated notes.

At closing, Wood Street CLO IV will issue floating-rate notes,
the proceeds of which, after paying transaction fees and
expenses, will be invested in a portfolio of senior and
mezzanine leveraged loans and high-yield bonds.  The
transaction has a six-year reinvestment period.  The collateral
manager will be Alcentra Ltd.

This will be the 13th European CDO transaction managed by
Alcentra.

The ratings reflect commensurate credit enhancement in the form
of over-collateralization and subordination, a diversified
collateral pool of loans and derivative financial instruments,
currency risk protections, strong collateral investment
guidelines, the expected insolvency-remoteness of the issuer,
and various amortization triggers.


                          Ratings List
                     Wood Street CLO IV B.V.
                  EUR500-Million Senior Secured
                and Deferrable Floating-Rate Notes

                             Prelim.        Prelim.
              Class          rating         amount (Mil. EUR)
              -----          ------         ------
              A-1            AAA            275
              A-2            AAA             50
              B              AA              42.5
              C              A-              40
              D              BBB-            22.5
              E              BB-             17.5
              Subordinated
              securities     NR              52.5

              NR-Not rated.


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


AKER KVAERNER: Unveils Dividend & Shareholders Policies
-------------------------------------------------------
Aker Kvaerner, at the Capital Markets Day, Dec. 1, 2006,
discloses of:

   -- Dividend Policy Going Forward:

      The intention is to give Aker Kvaerner shareholders a
      competitive yearly dividend by distributing 30-50 percent
      of net profit, either through cash dividend and /or share
      buy-back.

   -- External Guiding:

      Aker Kvaerner's target of an EBITDA margin of 6.5-7.0
      percent by the end of 2007 is confirmed.  Based on the
      quality of the order backlog and the positive market
      outlook, there is potential for further improvement in the
      profitability after 2007.

At the Ordinary General Assembly in Aker Kværner ASA, taking
place March 29, 2007, the Board of Directors will propose the
following:

   -- Share Split 1-5:

      To split the face value of NOK 10 per share to NOK 2 per
      share and thus increase outstanding number of shares to
      275,146,170.

   -- Share Buy-Back Program:

      A renewal of the "Share buy-back program" of up to 10
      percent of the outstanding shares for between NOK1 and
      NOK900 in the period 18 months following the day of the
      General Assembly Meeting, March 29, 2007.

   -- Extraordinary Dividend After Pulping & Power Disposal:

      Based on the expected closing of the transaction with
      Metso before yearend 2006, to pay an extraordinary
      dividend of NOK30 per share, in total NOK1.65 billion.

                      About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and
affiliates, provides engineering and construction services,
technology products and integrated solutions.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C.  The group operates in
Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany,
Netherlands, Poland, Russia, Spain, Sweden, United Kingdom,
Australia, China, India, Indonesia, Japan, Malaysia, Singapore,
South Korea, Thailand, Brazil, Chile, Canada and the United
States.

                        *     *     *

As reported in the TCR-Europe on April 26, Moody's Investors
Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker
Kvaerner AS, primarily to reflect the sustainable strong
recovery in profitability and cash flow generation of the ring-
fenced oil and gas group over the past two years, coupled with
the clear reduction in senior debt, repaid from internally
generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS

   -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

Moody's said the outlook on all ratings is stable.


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


ALAPAEVSKIY OJSC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Arbitration Court of Sverdlovsk Region commenced bankruptcy
supervision procedure on OJSC Meat Combine Alapaevskiy (TIN
6601001779).  The case is docketed under Case No. A60-31199/
06-S11.

The Temporary Insolvency Manager is:

         E. Zavodnikov
         Mamina-Sibiryaka Str. 36-401
         620027 Ekaterinburg Region
         Russia

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia

The Debtor can be reached at:

         OJSC Meat Combine Alapaevskiy
         Severovostochnaya Str. 1
         Alapaevsk
         624600 Sverdlovsk Region
         Russia


DISCOVERY-AGRO-STROY: Asset Sale Slated for December 20
-------------------------------------------------------
LLC Active Group, the bidding organizer for OJSC Discovery-Agro-
Story will open a public auction for the company's  properties
at 3:00 p.m. on Dec. 20 at:

         LLC Active Group
         Serebryakovskaya Pristan' 13
         Tver Region
         Russia
         Tel: 8(4822) 44-99-75

To participate, bidders have until noon on Dec. 15 to deposit an
amount equivalent to 10% of the starting price to:

         OJSC Discovery-Agro-Stroy
         Settlement Account 40702810300060000699 in
         OJSC CB Torzhokuniversalbank
         Torzhok
         BIK 042854751
         Correspondent Account 3010181000000000751

Bidding Documents must be submitted to:

         LLC Active Group
         Serebryakovskaya Pristan' 13
         Tver Region
         Russia
         Tel: 8(4822) 44-99-75

The Debtor can be reached at:

         OJSC Discovery-Agro-Story
         Serebryakovskaya Pristan' 13
         Tver Region
         Russia


GAZPROMBANK OAO: S&P Rates New RUR864-Million Notes at Low-B
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR143.2-million and RUR864-million
mortgage-backed fixed- and floating-rate notes to be issued by
Dali Capital PLC, a special purpose entity incorporated as a
limited liability company in Ireland.

The proceeds from the note issuance will be used to buy three
classes of loan notes issued by a special purpose entity
incorporated under Luxembourg law.  The Luxembourg SPE,
Gazprombank Mortgage Funding 1 S.A., will in turn use the
proceeds from the sale of the loan notes to purchase a pool of
performing mortgage certificates granted to Russian individuals.
The certificates are denominated in Russian rubles and are
secured over residential properties in Russia.

Dali will be the sole holder of the class A, B, and C loan notes
issued by GZB and the interest and principal payable under the
loan notes are the main source for the payments under the rated
notes issued by Dali.  The credit ratings assigned to Dali's
class A, B, and C notes therefore reflect the credit quality of
the portfolio of mortgage loans purchased by GZB from
Sovfintrade Ltd.

Securitization is a novel practice in Russia and securitization
concepts have not yet been tested in the courts.  This is the
first publicly placed mortgage loan securitization in Russia to
be rated by Standard & Poor's, and the first RMBS transaction
originated by SFT.

"The collateral consists of a static pool of first-lien mortgage
certificates denominated in rubles and originated by the
companies acting as regional operators in SFT's regional partner
network and the regional banks acting as initial lenders in
SFT's regional partner network," said credit analyst
Barbara Florian.

The class A notes will be denominated in euros and hedged
through a fully balance-guaranteed swap.  The class B and C
notes will be ruble-denominated but settled in U.S. dollars.
Standard & Poor's ratings on the class B and C notes address
only the timely payment of interest and principal in rubles.
The ratings do not address the exchange rate volatility between
the ruble and the U.S. dollar, or the risk that the foreign
exchange conversion might not be available.

                          Ratings List
                        Dali Capital PLC
EUR143.2-Million And RUR864-Million Mortgage-Backed Fixed- And
                          Floating-Rate
          Notes (Gazprombank Securities Series 2006-1)

                            Prelim.        Prelim.
             Class          rating         amount (Mil.)
             -----          ------         ------
             A (1)          BBB+           EUR143.2
             B              BB             RUR518
             C              B              RUR346

   (1) The class A amount is obtained by converting the ruble
       amount at an indicative exchange rate (EUR/RUR34.17).
       The euro amount of the class A notes will depend on the
       exchange rate used at closing.


GAZPROMBANK OAO: Parent Upgrade Cues S&P to Affirm BB+/B Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B' long-
and short-term counterparty credit ratings and 'ruAA+' Russia
national scale rating on Russia-based Gazprombank, following the
upgrade of its 100% owner, OAO Gazprom, to 'BBB' from 'BBB-.'

At the same time, the ratings on Gazprombank were removed from
CreditWatch, where they had been placed with positive
implications on Nov. 15, 2006, following a review of government
influence on Russian government-related entities (GREs),
including Gazprom.  The outlook is stable.

"The upgrade of Gazprom is based on our expectation of greater
extraordinary state support in case of distress; however, S&P
considers that this would not directly translate into increased
support to Gazprombank from Gazprom," said Standard & Poor's
credit analyst Eugene Tarzimanov.

By assigning ratings to Gazprombank, S&P is applying our parent-
subsidiary approach, and consider the bank as a strategically
important subsidiary of Gazprom; this gives Gazprombank an
important notching uplift from its stand-alone ratings.

The ratings on Gazprombank are supported by its strategic group
status within the Gazprom group, its adequate capitalization,
and good liquidity.  The ratings remain constrained by its high
concentrations in the Gazprom group, its weak earnings
structure, high exposure to market risk, and the risky operating
environment in Russia.

S&P expects Gazprom to retain control of the bank, and will
continue to support it if needed.

"Gazprombank's creditworthiness is constrained by its own
financial profile weaknesses, and the high economic and industry
risks in Russia," said Mr. Tarzimanov.

"Rating factors that could have a positive impact will stem from
improvements in the stand-alone credit profile of the bank;
these include the scope and profitability of Gazprombank's
recurrent commercial business, higher diversification of good
quality assets and revenues, higher transparency regarding
complex transactions, and improved recurrent profitability," he
added.


KARELSKIY-5 CJSC: Court Names A. Pankov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. A. Pankov as Insolvency Manager for CJSC
Karelskiy-5.  He can be reached at:

         A. Pankov
         Post User Box 7
         198334 St. Petersburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-14847/2006.

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

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

The Debtor can be reached at:

         CJSC Karelskiy-5
         Karelskiy Per. 5
         197183 St. Petersburg Region
         Russia


KOLOMNA OJSC: Moscow Court Names I. Gorn as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Moscow Region appointed Mr. I. Gorn as
Insolvency Manager for OJSC Financial and Industrial Company
Kolomna.  He can be reached at:

         I. Gorn
         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.
A41-K2-16704/06.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Financial and Industrial Company Kolomna
         Pionerskaya Str. 52 57
         Kolomna
         Moscow Region
         Russia


MOBILE TELESYSTEMS: Asks Review of Tarino Stake's Option Terms
--------------------------------------------------------------
MTS Finance S.A., a 100%-owned subsidiary of Mobile TeleSystems
OJSC, advises that it has received from Nomihold Securities Inc.
a put notice pursuant to an option agreement for the 49% stake
of Tarino Ltd., the indirect owner of Bitel LLP, a Kyrgyz GSM
mobile phone operator, and states that it will be defending its
rights.

As announced earlier by the Company, MTS Finance, a 100%-owned
subsidiary of MTS registered in Luxembourg, acquired a 51% stake
in Tarino Limited from Nomihold at the end of 2005.  Tarino
Limited was at that time the indirect owner, through its 100%
owned subsidiaries, of Bitel.  Reservspetzmet in Bishkek seized
Bitel's offices three days after the official announcement of
the acquisition. From that moment on the owners of Tarino
Limited have no control over Bitel.

At the time of the transaction between MTS and Nomihold
regarding the acquisition of 51% stake in Tarino Limited and
signing of the put option for the remaining stake, MTS' actions
were dictated by the fact that Tarino Limited had complete
control over Bitel.

As announced in December 2005, MTS acquired a 51% stake in
Tarino Limited. Tarino Limited was at that time the indirect
owner, through its 100% owned subsidiaries, of Bitel.

At the end of last week MTS received a letter from Nomihold, the
owner of a 49% stake of Tarino Limited, stating its intent to
exercise the put option and sell its stake for US$170 million to
MTS.

Were Nomihold able to comply fully with its contractual and
legal duties, MTS would honor its obligations under its
agreement with Nomihold.  However, circumstances with respect to
certain Tarino subsidiaries including Bitel -- the transfer of
which was the basic objective of the agreement -- would appear
to make it impossible for Nomihold to comply with its
obligations during the option period.

In these circumstances, the Company believes that if Nomihold
insists on exercising the put option, Nomihold's notice will be
without legal basis and MTS will vigorously defend its rights.

MTS confirms that in case of a dispute regarding the exercise of
the put option, shareholders of Sistema will assist MTS in
defending its rights.  If the arbitrage decision does not favor
MTS, shareholders of Sistema made the decision to compensate MTS
for a loss in the amount of US$170 million.

In spite of the received guarantees that are aimed at defending
the interests of all MTS shareholders independent of the
proceedings with Nomihold, the Company as always intends to
employ all of its resources in defending its interests over its
ownership rights over Bitel and the option agreement.

                    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.


NEW BUILDING: Court Names A. Trifonov as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. A. Trifonov as Insolvency Manager for CJSC New
Building Technologies.  He can be reached at:

         A. Trifonov
         Post User Box 383
         OPS-100
         170100 Tver Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-30031/2006.

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

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

The Debtor can be reached at:

         CJSC New Building Technologies
         Obukhovskoy Oborony Pr. 89
         St. Petersburg Region
         Russia


NOVOLIPETSK STEEL: Inks RUR200-Mln Rolls Deal with OMZ Group
------------------------------------------------------------
UralmashSpecStal, a part of OMZ-SpecStal division of Uralmash-
Izhora Group concluded a contract with OJSC Novolipetsk Steel
for the production of working and back-up rolls for rolling
mills.  The contract provides for rolls valued at more than
RUR200 million in 2007.

UralmashSpecStal is a traditional supplier to NLMK.
UralmashSpecStal has supplied some 30-50% of all rolls for
various NLMK rolling mills.  In 2007 the company will supply
rolls made with high-chromium steel (3%-5% chromium content)
characterized by a high level of durability.  The operating
procedures for this type of rolls at a Model 2000 hot rolling
mill were developed jointly by NLMK and UralmashSpecStal experts
in order to raise the quality of the rolls.

                     About UralmashSpecStal

UralmashSpecStal produces four types of steel forged rolls: back
up and working rolls for hot and cold rolling.   Rolls produced
by OMZ companies were included into the list of best Russian
products, and were named Gold and Platinum Quality Mark at the
All-Russian Quality Mark Award.  In 2006, UralmashSpecStal
exported more than 50% of all rolls produced.

                       About Novolipetsk

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

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

                        *     *     *

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

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


NOVOLIPETSK STEEL: S&P Keeps Ratings Despite Duferco Deal
---------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Russian steelmaker OJSC Novolipetsk Steel (NLMK;
BB+/Stable/--; Russia national scale 'ruAA+') are unchanged by
the announcement of NLMK's acquisition of a 50% share in a joint
venture with Duferco Group for US$850 million.

This cash outflow will not deteriorate NLMK's strong financial
metrics, which have sufficient flexibility for M&A and
investments.  In the longer term, the business profile could
benefit from NLMK's sale to the joint venture of excess output
of semi-finished products for processing into higher-value-added
products.


OSTROGOZHSKIY ELEVATOR: Bankruptcy Hearing Slated for Feb. 1
------------------------------------------------------------
The Arbitration Court of Voronezh Region will convene at
11:00 a.m. on Feb. 1, 2007, to hear the bankruptcy supervision
procedure on LLC Ostrogozhskiy Elevator.  The case is docketed
under Case No. A14-13057-2006/165/33b.

The Temporary Insolvency Manager is:

         A. Selishev
         Apartment 85
         F. Engelsa Str. 63
         394000 Voronezh Region
         Russia

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         LLC Ostrogozhskiy Elevator
         Elevatornyj St. 55
         Ostrogozhskiy Region
         Voronezh Region
         Russia


OSTROGOZHSKIY OJSC: Court Names V. Dyachkov to Manage Assets
------------------------------------------------------------
The Arbitration Court of Voronezh Region appointed Mr. V.
Dyachkov as Insolvency Manager for OJSC Meat Combine
Ostrogozhskiy.  He can be reached at:

         V. Dyachkov
         Post User Box 28
         394077 Voronezh Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A14-4771-2006/119/27b.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         OJSC Meat Combine Ostrogozhskiy
         50 Let Oktyabrya Str. 2
         Ostrogozhsk
         Voronezh Region
         Russia


PARQUET CJSC: Vologda Court Names S. Bogay as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Vologda Region appointed Mr. S. Bogay
as Insolvency Manager for CJSC Parquet.  He can be reached at:

         S. Bogay
         Post User Box 84
         Cherepovets
         162606 Vologda Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A13-7420/2005-22.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         CJSC Parquet
         Totemskiy Region
         Vologda Region
         Russia


PAVLOVSKIY INSTRUMENTAL: Bankruptcy Hearing Slated for March 27
---------------------------------------------------------------
The Arbitration Court of Vladimir Region will convene at 1:30
p.m. on March 27, 2007, to hear the bankruptcy supervision
procedure on LLC Pavlovskiy Instrumental Factory.  The case is
docketed under Case No. A11-12184/2006-K1-447B.

The Temporary Insolvency Manager is:

         N. Chertanovskiy
         Internatsionalnaya Str. 96
         603002 Nizhniy Novgorod Region
         Russia

The Arbitration Court of Vladimir Region is located at:

         Oktyabrskiy Pr. 14
         600025 Vladimir Region
         Russia

The Debtor can be reached at:

         LLC Pavlovskiy Instrumental Factory
         Gorokhovets
         Vladimir Region
         Russia


PRIMORSKIY EXPERIMENTAL: Court Starts Bankruptcy Supervision
------------------------------------------------------------
The Arbitration Court of Primorye Region commenced bankruptcy
supervision procedure on OJSC Primorskiy Experimental Mechanical
Factory.  The case is docketed under Case No. A51-13337/
2006 15/331 B.

The Temporary Insolvency Manager is:

         V. Kosolapov
         3rd Zagorodnaya Str. 19
         Spassk-Dalnij
         Primorye Region
         Russia

The Debtor can be reached at:

         OJSC Primorskiy Experimental Mechanical Factory
         3rd Zagorodnaya Str. 19
         Spassk-Dalnij
         Primorye Region
         Russia


PROMSVYAZBANK JSCB: Bank of Russia Registers Additional Shares
--------------------------------------------------------------
JSCB Promsvyazbank revealed that the Bank of Russia has
completed registration of the results of the additional issue of
26,320 common uncertified registered shares.

The nominal price of one share is RUR50,000.  All shares were
placed through a closed subscription.

As a result of placement of the additional share issue
Promsvyazbank has acquired new shareholders:

   -- Commerzbank Auslandsbanken Holding AG (Germany, a 100%
      subsidiary of Commerzbank AG) has purchased 15.32% of
      shares,

   -- Promsvyaz Capital B.V. (the Netherlands, a company owned
      by Promsvyazbank's current shareholders) acquiring 10.38%
      of shares.

Accordingly, Promsvyazbank's share capital has increased from
RUR3,804,750 to RUR 5,120,750.

The de facto commencement date of share placement is Nov. 1, and
the date of public registration of the issue is Nov. 30.

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

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

                        *     *     *

As reported in the TCR-Europe on Oct. 5, Fitch Ratings upgraded
Russia-based JSC Promsvyazbank's Issuer Default rating to B+
from B.  The other ratings are affirmed at Short-term B,
Individual D and Support 5; Stable Outlook.  Fitch has also
assigned an expected Long-term rating of B+ to PSB's upcoming
senior unsecured eurobond and an expected Long-term rating of B-
to its upcoming subordinated debt issue.

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

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

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



ROS-PRODUCT CJSC: Court Names D. Natalkin as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. D. Natalkin as Insolvency Manager for CJSC Ros-
Product.  He can be reached at:

         D. Natalkin
         Apartment 43
         Building 5
         Y. Gagarina Pr. 26
         169135 St. Petersburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-36271/2006.

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

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

The Debtor can be reached at:

         CJSC Ros-Product
         Serebristyj Avenue 26
         St. Petersburg Region
         Russia


SARANSKIY WOODWORKING: Bankruptcy Hearing Slated for Feb. 12
------------------------------------------------------------
The Arbitration Court of Mordoviya Republic will convene on
Feb. 12, 2007, to hear the bankruptcy supervision procedure on
OJSC Saranskiy Woodworking Factory.  The case is docketed under
Case No. A39-3171/06-116/12.

The Temporary Insolvency Manager is:

         S. Bolzin
         Room 311
         Stroitelnaya Str. 1
         Saransk
         Mordoviya republic
         Russia

The Arbitration Court of Mordoviya Republic is located at:

         Kommunisticheskaya Str. 33
         Saransk
         Mordoviya Republic
         Russia

The Debtor can be reached at:

         OJSC Saranskiy Woodworking Factory
         Aleksandrovskoye Shosse 16
         Saransk
         Mordoviya Republic
         Russia


SATELLITE CJSC: Court Names S. Slepov as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
S. Slepov as Insolvency Manager for CJSC Satellite (TIN
5260068017).  He can be reached at:

         S. Slepov
         Beketova Str. 38a
         603146 Nizhniy Novgorod Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A43-29934/2006, 33-270.

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         CJSC Satellite
         Rozhdestvenskaya Str. 31
         603001 Nizhniy Novgorod Region
         Russia


SLAVINVESTBANK LLC: Fitch Assigns B- Rating on Eurobond Debut
-------------------------------------------------------------
Fitch Ratings assigned Slavinvest Finance S.A.'s upcoming issue
of limited recourse loan participation notes an expected Long-
term 'B-' rating and an expected Recovery Rating 'RR4'.

The notes are to be used for the sole purpose of financing a
loan to Slavinvestbank LLC, which is rated Issuer Default 'B-',
Short-term 'B', Individual 'D/E', Support '5' and National Long-
term 'BB+(rus)'.  The bank's Issuer Default, Support and
National Long-term ratings are on Rating Watch Positive.  The
final rating on the bond is contingent upon receipt of final
documentation conforming materially to information already
received.

Slavinvest Finance S.A. is a Luxembourg-domiciled special
purpose vehicle and will only pay noteholders principal and
interest received from SIB.  The SPV will charge certain of its
rights and interests under the loan agreement to Deutsche
Corporate Trustee Company Ltd. for the benefit of noteholders
under a trust deed.

The claims under the loan agreement will rank at least equally
with the claims of other senior unsecured creditors of SIB, save
those whose claims are preferred by any bankruptcy, insolvency,
liquidation or similar laws of general application.  Under
Russian law, the claims of retail depositors and accountholders
rank above those of other senior unsecured creditors.  At end-
H106, retail deposits and accounts accounted for 6.7% of total
liabilities, according to the bank's reviewed IFRS accounts.
Furthermore, related-party liabilities constitute a significant
part of SIB's total liabilities (28% at end-H106).  In Fitch's
opinion, this could give rise to additional risks for
bondholders in a default scenario, albeit not to the extent that
these would justify a lower Recovery Rating than 'RR4' for the
current transaction.

The loan agreement contains covenants restricting mergers and
disposals by SIB and its material subsidiaries, transactions
between the bank and its affiliates and certain payments and
distributions by the bank and its subsidiaries.  It also
contains a cross default clause and a 'negative pledge' clause,
the latter of which allows for a degree of securitization by
SIB.

Were such transactions to be undertaken, Fitch comments that the
nature and extent of any over-collateralization would be
assessed by the agency for any potential impact on unsecured
creditors. SIB must ensure full compliance with Central Bank of
Russia regulations, including minimum mandatory capital adequacy
requirement currently set at 10%, and its minimum total capital
ratio as calculated in accordance with Basle I recommendations
should at any time not be less than 12% in case the bank is
rated below Issuer Default 'BB' or not less than 10% if the bank
is rated at or above 'BB'.


TNK-BP HOLDING: Confirms 1-Bln Tons of Oil in Southern Tyumen
-------------------------------------------------------------
The Government of the Tyumen Region disclosed that the West-
Siberian office of the State Committee for Reserves had
considered and confirmed reserves for seven new oil deposits
discovered in the Uvat region.  Aggregate oil resources in the
south of Tyumen now exceed 1 billion tons.

Five of these new deposits, totaling Around 32 million tons,
were discovered at the license sites of TNK-BP subsidiaries.
OOO TNK-Uvat discovered the 1 billionth ton of crude oil at the
Kosukhinskoye deposit, called after the first president of the
Tyumen Oil and Gas University.

"It is a landmark achievement of our Russian geologists and
international professional talent provided by TNK-BP -- a major
investor in Tyumen's oil and gas," Sergei Prokhorov, Director of
Department for Subsoil Use and Environment of the Tyumen
administration, said.  "This is a good example of interaction
between the state and a private company which delivered the pace
of geological prospecting and reserve growth unprecedented for
the south of Tyumen."

"It is pleasing to have tangible exploration success at Uvat and
we are delighted to have pushed the total reserves in southern
Tyumen beyond 1 billion tons," Robert Dudley, TNK-BP's President
and CEO, said.  "For our company these discoveries will help our
ongoing transition from being a predominantly brown field
producer.  The potential of West Siberia is still enormous, and
we are very committed to help explore and develop it using
leading technologies and human expertise."

The state committee also approved calculations of oil in place
for the Urnenskoye and Ust-Tegusskoye deposits in Uvat, which
enables TNK-BP to start their development.

The Government of the Tyumen region and TNK-BP, which holds
licenses for exploration and development for the bulk of Uvat
deposits, have a cooperation agreement whereby development of
Uvat should become a locomotive for economic advancement of
southern Tyumen.

                          About TNK-BP

Headquartered Moscow, Russia, TNK-BP Holding OAO --
http://www.tnk-bp.com/-- operates six refineries in Russia and
Ukraine, and markets products through 2,100 retail service
stations operating under TNK and BP brand.  TNK owns 56.5% of
TNK-BP Holding, and Onako and Sidanco hold 6.8% and 30.9%,
respectively.  The other 5.8% belongs to TNK-BP shareholders.

TNK-BP holds a strategic position as the second largest liquids
producer in the Russian intergraded operating environment,
accounting for around 18% of Russia's total crude oil
production.
                          *     *     *

Standard & Poor's assigned BB+/Stable foreign currency local
currency ratings to TNK-BP on June 30, 2006.

Moody's assigned Ba2/Positive foreign currency rating to the
company on Jan. 24, 2006.

Fitch assigned BB+/Positive foreign currency rating to TNK-BP on
Feb. 13, 2006, and BB+/Positive local currency rating on
Aug. 24, 2005.


TOT'MA-STROY-WOOD: Court Names I. Nadezhin as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Vologda Region appointed Mr. I.
Nadezhin as Insolvency Manager for CJSC Tot'ma-Stroy-Wood.  He
can be reached at:

         I. Nadezhin
         Volodarskogo Str. 1
         Tot'ma
         161300 Vologda Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A13-1543/2005-22.

The Arbitration Court of Vologda Region is located at:

         Hall 4
         Gertsena Str. 1a
         Vologda Region
         Russia

The Debtor can be reached at:

         CJSC Tot'ma-Stroy-Wood
         Volodarskogo Str. 1
         Tot'ma
         161300 Vologda Region
         Russia


VORONEZH-MEAT LLC: Court Names P. Gorshkov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Voronezh Region appointed Mr. P.
Gorshkov as Insolvency Manager for LLC Voronezh-Meat.  He can be
reached at:

         P. Gorshkov
         Post User Box 9
         Kosmonavtov Str. 10
         394038 Voronezh Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A14-11783-2006 169/33 b.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         LLC Voronezh-Meat
         F. Engelsa Str. 48
         Voronezh Region
         Russia


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


CIRSA BUSINESS: Moody's Lowers Corporate Family Rating to B1
------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Cirsa Business Corporation S.A. to B1 from Ba3, the rating of
Cirsa Finance Luxembourg S.A.'s EUR270-million senior notes
due 2014 to B2 from B1 and the rating of Cirsa Capital
Luxembourg S.A.'s EUR130-million senior notes due 2012 to B3
from B2.

Concurrently, Moody's assigned a provisional (P)B3 rating to the
additional EUR100-million senior notes due 2012 expected to be
issued by Cirsa Capital Luxembourg on similar terms and
conditions to the existing EUR130 million notes.  The outlook on
all ratings is stable.

The downgrades conclude the rating review initiated on
Oct. 2 and reflect Moody's view that, despite Cirsa's improved
operating performance in the first nine months of 2006, the
improvement in credit metrics has been slower than anticipated
resulting in the credit metrics not being in line with Moody's
expectations for the rating category.

While Cirsa's business risk profile continues to reflect "Ba"
characteristics, supported by its clear leadership in the
fragmented Spanish gaming market and the relatively favorable
fundamentals of the Spanish and Latin American gaming markets,
the company currently displays credit metrics more commensurate
with a "B" rating.  Moody's expects Cirsa to post an Adjusted
Debt / Adjusted EBITDAR ratio of around 5.6x and a Retained Cash
Flow to Adjusted Debt ratio of 10% by year-end 2006.

Moody's adjusted debt includes a EUR343 million adjustment for
operating leases and does not include cash balances.  In Moody's
opinion, Cirsa's rating as a result of this action will now
become more adequately positioned at the B1 rating category.
The rating agency does expect the company to become more
strongly positioned within the rating category as the strategic
initiatives being implemented by the new management team are
successfully executed resulting in anticipated improvements in
credit metrics.

In Moody's opinion, the task of improving financial metrics will
prove challenging for Cirsa as a result of:

   (i) the company's publicly stated intention to continue to
       pursue external growth opportunities,

  (ii) the high concentration of profitability in the two
       riverboat casinos in Buenos Aires, which are exposed to
       high regulatory and litigation risk, and

(iii) the delays associated with achieving profitability in
       some of the divisions, particularly Manufacturing and
       Interactive.

However, Moody's recognizes these positive factors:

   (i) Cirsa's improved operating performance during 2006,

  (ii) the strategic initiatives launched by the new management
       team aimed at improving efficiency and streamlining
       operations (as reflected by the combination of the
       Manufacturing and Interactive divisions into a unified
       new B2B division), which should have a direct impact on
       EBITDA going forward;

(iii) the commitment to more rigorous investment criteria
       (as shown by the discipline displayed by the company in
       recent license bids where Cirsa was outbid in the
       bidding processes for some casino licenses in Chile and
       in Lloret de Mar);

  (iv) the improvement in profitability at the new casinos in
       Latin America, which will progressively reduce the
       contribution of the Buenos Aires casino to the overall
       EBITDA of the group;

   (v) the commitment to reach specific financial targets such
       as Net debt/EBITDA (as reported by the company)
       below 4x; and

  (vi) the improved debt maturity profile following
       the issuance of the additional EUR100 million
       notes, which will be used to refinance short-term debt.

Ratings affected:

Cirsa Business Corporation S.A

    * corporate family rating, downgraded to B1 from Ba3

Cirsa Finance Luxembourg S.A.

    * EUR270-million senior notes due 2014, downgraded from
      B1 to B2

Cirsa Capital Luxembourg S.A.

    * EUR130-million senior notes due 2012, downgraded from
      B2 to B3; and

    * EUR100-million senior notes due 2012: (P)B3.

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

Headquartered in Terrassa, Spain, Cirsa is a leading Spanish
gaming company, with substantial operations in Latin America.
For the twelve months ended September 2006, Cirsa had revenues
of EUR1.643 billion and EBITDA of EUR123.7 million.


CIRSA BUSINESS: S&P Lowers Corporate Credit Rating to B+
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Spanish gaming company Cirsa Business
Corp. S.A. to 'B+' from 'BB-'.  The outlook is stable.

At the same time, the senior unsecured debt rating on related
entity Cirsa Finance Luxembourg S.A. was lowered to 'B' from
'B+' and the senior unsecured debt rating on Cirsa Capital
Luxembourg S.A. was lowered to 'B-' from 'B'.  Cirsa Capital
Luxembourg's proposed EUR100-million bond issue due 2012
has been assigned a preliminary rating of 'B-', subject to
receipt of final documentation.  All bonds are guaranteed by
Cirsa.

"The one-notch downgrade reflects Cirsa's aggressive financial
profile and a shortfall in achieving expected leverage ratios,"
said Standard & Poor's credit analyst Philip Temme.

Standard & Poor's warned in May 2006 that a substantial
improvement in operating cash flows would be required to avoid a
downgrade, and set 2006 target leverage ratios of lease-adjusted
debt to EBITDA below 4x and funds from operations (FFO) to
adjusted debt of 15%.  Given that Cirsa's lease-adjusted debt to
EBITDA was well in excess of this target in the 12 months to
Sept. 30, 2006, and FFO to debt was 14% at the same date, key
leverage measures remain outside levels commensurate with a
'BB-' rating.

Assuming the bond refinancing proceeds as planned, thereby
improving the group's liquidity position, Standard & Poor's
expects the outlook for Cirsa to remain stable.

"To maintain the ratings, we expect Cirsa to continue to
exercise capital expenditure restraint and to achieve lease-
adjusted debt to EBITDA of about 5x and FFO to net debt of about
15%," Mr. Temme added.

The outlook could be revised to positive in the medium term if
the new CEO's restructuring measures and commitment to
deleveraging feed through successfully to key credit measures--
specifically, a return to lease-adjusted debt to EBITDA of about
4x.


IM GRUPO: Moody's Junks EUR30-Million Series E Notes
----------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
nine series of "Bonos de Titulizacion de Activos"
(securitization bonds) to be issued by IM Grupo Banco Popular
FTPYME I Fondo de Titulizacion de Activos, a Spanish asset
securitization fund that has been created by Intermoney,
S.G.F.T, S.A.:

   -- EUR230-million Series A1 notes: Aaa;
   -- EUR250-million Series A2 notes: Aaa;
   -- EUR1096.6-million Series A3 notes: Aaa;
   -- EUR150-million Series A4 notes: Aaa;
   -- EUR155.4-million Series A5(G) notes: Aaa;
   -- EUR30-million Series B notes: Aa3;
   -- EUR28-million Series C notes: A3;
   -- EUR60-million Series D notes: Baa3; and
   -- EUR30-million Series E notes: C.

IM Grupo Banco Popular FTPYME I FTA, a securitization of loans
to small-and medium-sized enterprises carried out by Grupo Banco
Popular under the FTPYME program, follows the Spanish Ministry
of Economy's allocation of a new guarantee budget for such
transactions for the current year.

Moody's ratings address the expected loss posed to investors by
the legal final maturity.  The rating agency believes that the
structure of the IM Grupo Banco Popular FTPYME I notes allows
for timely payment of interest and ultimate payment of principal
at par, on or before the final legal maturity date and not at
any other expected maturity date with respect to the Series A1,
A2, A3, A4, A5(G), B, C and D notes, and for ultimate payment of
interest and principal at par with respect to the Series E
notes, on or before the final legal maturity date.  The ratings
do not address the full redemption of the notes on the expected
maturity date.  Moody's ratings address only the credit risks
associated with the transaction.  Other non-credit risks have
not been addressed, but may have a significant effect on yield
to investors.

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

   (1) excess spread-trapping mechanism through a 12-month
       "artificial write-off";

   (2) a reserve fund that is partially funded upfront to cover
       a potential shortfall in interest and principal;

   (3) the guarantee of the Kingdom of Spain (Aaa/P-1) as
       regards the Series A5(G) notes; and

   (4) the high proportion of loans secured by a first-lien
       mortgage guarantee.

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

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

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

   (3) 12.6% of the provisional pool corresponds to non-
       amortizing loans; and

   (4) the high servicing fee used, when compared with most
       Spanish securitization transactions,

The provisional pool of underlying assets comprised, as of
October 2006, a portfolio of 18,007 loans granted to 16,104
borrowers, all of which are Spanish SMEs (74% being enterprises
and 26% self-employed individuals).  The loans have been
originated between 1994 and July 2006, with a weighted average
seasoning of 1.80 years and a weighted average remaining term of
11.0 years.  The weighted average interest rate is 4.32%, with
all the loans linked to floating reference rates, and the
weighted average margin over the reference rate is 1.05%.  86%
of the outstanding of the portfolio is secured by a first-lien
mortgage guarantee over different types of properties (32% being
residential properties), with a weighted average loan to value
equal to 54%. Geographically the pool is concentrated in
Andalusia (24%), Madrid (19%) and Castilla y León (9%), a
natural consequence of the location of the originators, and is
around 36% concentrated in the "Buildings & Real Estate" sector
according to Moody's industry classification.  At closing, there
will be no loans more than 30 days in arrears.

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

Moody's bases its ratings on:

   (1) an evaluation of the underlying portfolio of loans
       securing the structure,

   (2) historical performance information from the Spanish SME
       loan market and

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


MADRID RMBS: S&P Assigns BB Rating on EUR18.9-Mln Class E Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR1.8-billion mortgage-backed floating-
rate notes to be issued by MADRID RMBS II, Fondo de Titulizacion
de Activos, a special purpose entity.

In this transaction, Caja de Ahorros y Monte de Piedad de Madrid
will securitize part of its expanding residential mortgage
ending book with an LTV ratio higher than 80%.  The loans,
originated mainly in Madrid, feature a first-ranking security
and are for property acquisition.

This is Caja Madrid's second securitization this year, following
the EUR2 billion issuance made in mid-November.

This transaction has the same capital structure per rating level
as the previous one except for a third 'AAA' series and an
improvement of seven bps in the reserve fund due to the quality
of the pool.

Caja Madrid will be the originator, servicer, paying agent, and
interest swap counterparty.

Caja Madrid is one of 46 savings banks belonging to the
Confederacion Espanola de Cajas de Ahorros, a national
association for the Spanish savings banks.  It is the second-
largest savings bank and the fourth-largest financial entity in
Spain.  One of its main business strengths is an outstanding
regional presence in its original home market of Madrid.  Its
primary business is directed mainly at retail.  Its rating was
upgraded on Nov. 29, 2006.  As with other Spanish transactions,
interest and principal are combined into a single priority of
payments with triggers in the payment of the interest on
the subordinated notes to protect the senior class.

                          Ratings List
        MADRID RMBS II, Fondo de Titulizacion de Activos
       EUR1.8-Billion Mortgage-Backed Floating-Rate Notes

                             Prelim.        Prelim.
              Class          rating         amount (Mil. EUR)
              -----          ------         -----
              A1             AAA            414
              A2             AAA            936
              A3             AAA            270
              B              AA              63
              C              A               67.5
              D              BBB             30.6
              E              BB              18.9


NORTEL NETWORKS: Provides R Cable with VoIP Multimedia Services
---------------------------------------------------------------
R Cable y Telecomunicaciones is delivering a suite of voice,
multimedia and advanced IP services, including telephony, video
and instant messaging, to business and residential customers
using a Carrier VoIP solution from Nortel Networks.

R's new services portfolio enables business customers to
outsource their communications, enhance productivity and prepare
for fixed mobile convergence, while residential customers can
select from a range of new voice and multimedia services.

"We're in the business of making it easier to talk, instant
message, watch videos, listen to music, get the news and play
games -- in fact whatever makes business and personal life more
simple, more pleasant, more effective and more productive," said
Arturo Dopico, managing director, R Cable.  "The growing demand
for interactive services, and the need to deliver them as simply
as possible, is as relevant for our business clients as it is
for the personal user."

R chose Nortel's Carrier VoIP, Multimedia and Global Services
solution because it helped deliver the broadest suite of VoIP
business and residential services with the highest levels of
service reliability and availability.  The solution includes
PacketCable(TM) voice and SIP multimedia services for
residential and business markets.  "When introducing new
services it is also reassuring to know that we're working with
the global leaders in Carrier VoIP with established expertise in
this field," Mr. Dopico added.

"R is a key customer for Nortel Spain and we've worked closely
with them for a number of years," said Michel Clement, president
Southern Europe and Africa, Nortel.  "This latest project
focuses on Nortel's key strength, which is building a highly
dependable and scalable network and acting as systems integrator
to enable R to deliver reliable and cost-effective new services
to its customers across Galicia."

A clear evolution path -- that provides IMS-ready elements for
secure services running across both Internet and mobile networks
and supports a full range of multimedia capabilities -- was also
a deciding factor in R's selection of its Nortel solution.
While R's immediate objective was to launch VoIP value added
services they also continually track customer wants and
satisfaction and chose a solution to help them handle changing
customer requirements in a timely and cost-efficient manner.

R's Cable VoIP solution is based on the Nortel Communication
Server 2000-Compact a carrier-grade softswitch that supports a
wide range of voice and multimedia business and residential
features and open industry-standard SIP PacketCable and
PacketCable Multimedia protocols.

Nortel ranked number one in the global markets for service
provider softswitches and gateways for the first half of 2006,
according to Synergy Research Group.  The solution for R also
includes turnkey services from Nortel's Global Services
portfolio consisting of change design, engineering,
installation, commissioning, network integration and marketing
support.

Nortel's Global Services include a full range of network
application, implementation and support services for end-to-end
multi-vendor networks.  Nortel has also deployed IMS-ready
solutions with over 100 customers and is currently engaged in
IMS trials with leading operators in cable, wireline, CDMA and
GSM/UMTS markets.

                      About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Limited
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband.
Nortel does business in more than 150 countries.

                         *     *     *

As reported in the Trubled Company Reporter on July 10,
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS said all trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd- 5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

As reported in the Trubled Company Reporter on June 20, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating of Nortel; assigned a B3 rating to the proposed US$2
billion senior note issue; downgraded the US$200 million 6.875%
Senior Notes due 2023 and revised the outlook to stable from
negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  S&P said the outlook is stable.


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


TURKCELL ILETISIM: S&P Lifts Rating to BB- on Solid Performance
---------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BB-' from 'B+' its
long-term foreign currency corporate credit rating on Turkcell
Iletisim Hizmetleri A.S., the leading Turkish mobile
telecommunications group.  The outlook is stable.

"The upgrade reflects Turkcell's maintenance of a moderate
financial profile, reductions in currency mismatches, and solid
operating performance," said Standard & Poor's credit analyst
Patrice Cochelin.

Rating constraints are the volatile Turkish macroeconomic
environment, namely:

   -- currency swings;
   -- international expansion in Ukraine;
   -- legal disputes among the company's major shareholders; and
   -- rapidly rising competition in the Turkish mobile market.

The ratings are underpinned by the expectation that the company
will continue to perform well operationally amid macroeconomic
uncertainties and increasing competition in the dynamic Turkish
mobile market.

Turkcell reported consolidated debt of US$645 million at
Sept. 30, 2006.  The group had 30.8 million subscribers in
Turkey at the same date, with pre-paid users representing 81% of
the customer base during third-quarter 2006.

"We expect that Turkcell will continue to post solid domestic
performances in spite of mounting competition," added Mr.
Cochelin.  "We also expect the group to maintain solid cash
balances to face unexpected liquidity calls from its Ukrainian
operation."

Turkcell should maintain a solid financial profile, although
debt-funded, moderate-size acquisitions of cash-generative
businesses are likely to be accommodated within the current
rating.  This may be the case, in particular, if Turkcell is
successful in its attempts to acquire Greek mobile operator
Hellas Group and competitor Q-Tel.

Further upward rating potential could arise from a resolution of
the group's shareholder disputes, along with clarification of
acquisition prospects and Astelit's financing needs.
Conversely, rating pressure could stem from negative strategic
or financial influence of the shareholder disagreements,
materially weakened operating performance, or incommensurate
financial leverage.


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


UKRSIBBANK JSIB: Fitch Assigns BB- Rating on Upcoming Eurobond
--------------------------------------------------------------
Fitch Ratings assigned HSBC Bank plc's upcoming issue of limited
recourse loan participation notes an expected rating of Long-
term 'BB-'.

The notes are to be used for the sole purpose of financing a
loan to Joint-Stock Commercial Innovation Bank UkrSibbank, which
is rated Issuer Default 'BB-', Short-term 'B', Individual 'D/E'
and Support '3'.  The Outlook on the Issuer Default rating is
Positive. The final rating is contingent upon receipt of final
documentation conforming materially to information already
received.

HSBC Bank plc, a U.K.-domiciled public limited company, will
only pay noteholders principal and interest received from
UkrSib.  Following an event of default by UkrSib, the issuer
may, and shall if instructed by the trustee, assign to the
trustee the benefit of relevant loan rights.  The claims under
the loan agreement will rank at least equally with the claims of
other senior unsecured creditors of UkrSib, save those whose
claims are preferred by any bankruptcy, insolvency, liquidation
or similar laws of general application. Under Ukrainian law, the
claims of retail depositors rank above those of other senior
unsecured creditors.  At end of first half 2006, retail deposits
and current accounts made up 23% of UkrSib's liabilities,
according to the bank's reviewed IFRS accounts.

The loan agreement contains covenants restricting mergers and
disposals by UkrSib and its material subsidiaries, transactions
between the bank and its affiliates and certain payments and
limitations on restrictions on distributions by the bank's
material subsidiaries.  It also contains a cross default clause
and a 'negative pledge' clause, the latter of which allows for a
degree of securitization by UkrSib.

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


UKRSIBBANK JSIB: Moody's Rates Loan Participation Notes at Ba2
--------------------------------------------------------------
Moody's Investors Service assigned a rating of Ba2 to foreign
currency Loan Participation Notes to be issued on a limited
recourse basis by HSBC Bank plc for the sole purpose of funding
a loan to Joint-Stock Commercial Innovation Bank.  The outlook
for the rating is positive.

Moody's remarked that, the holders of the notes will be relying
for repayment solely and exclusively on the ability of
UkrSibbank to make payments under the loan agreement.  Moody's
Ba2 rating is based on the fundamental credit quality of
UkrSibbank, a 51% subsidiary of BNP Paribas, the third-largest
European bank by total assets.  The rating of the notes has
pierced Ukraine's Ba3 (positive outlook) foreign currency
sovereign ceiling for bonds.

The obligations of UkrSibbank to make payments under the loan
agreement will rank at all times at least pari-passu in right of
payment with the claims of all its other unsecured creditors,
save those whose claims are preferred by any relevant law.
According to Ukrainian legislation, accounts of individuals (23%
of UkrSibbank's total liabilities at end-June 2006) are ranked
senior in right of payment to the claims under the loan
agreement.  The loan agreement contains a cross-acceleration
clause as well as covenants that limit mergers, disposals and
transactions with affiliates.

According to Moody's, the notes might be eligible for early
redemption by the noteholders if the bank's ratings were to be
downgraded in the event that BNP Paribas ceases to own more than
a 50% stake of UkrSibbank.  While the likelihood of the
occurrence of such an event in the near future is relatively
low, this clause might have adverse liquidity implications for
the bank and might exert additional downward pressure on its
ratings in such a situation.

UkrSibbank is headquartered in Kyiv, Ukraine, and as of
June 30, 2006, reported total assets of US$2.8 billion and
equity of US$291 million under IFRS.


TNK-BP HOLDING: Confirms 1-Bln Tons of Oil in Southern Tyumen
-------------------------------------------------------------
The Government of the Tyumen Region disclosed that the West-
Siberian office of the State Committee for Reserves had
considered and confirmed reserves for seven new oil deposits
discovered in the Uvat region.  Aggregate oil resources in the
south of Tyumen now exceed 1 billion tons.

Five of these new deposits, totaling Around 32 million tons,
were discovered at the license sites of TNK-BP subsidiaries.
OOO TNK-Uvat discovered the 1 billionth ton of crude oil at the
Kosukhinskoye deposit, called after the first president of the
Tyumen Oil and Gas University.

"It is a landmark achievement of our Russian geologists and
international professional talent provided by TNK-BP -- a major
investor in Tyumen's oil and gas," Sergei Prokhorov, Director of
Department for Subsoil Use and Environment of the Tyumen
administration, said.  "This is a good example of interaction
between the state and a private company which delivered the pace
of geological prospecting and reserve growth unprecedented for
the south of Tyumen."

"It is pleasing to have tangible exploration success at Uvat and
we are delighted to have pushed the total reserves in southern
Tyumen beyond 1 billion tons," Robert Dudley, TNK-BP's President
and CEO, said.  "For our company these discoveries will help our
ongoing transition from being a predominantly brown field
producer.  The potential of West Siberia is still enormous, and
we are very committed to help explore and develop it using
leading technologies and human expertise."

The state committee also approved calculations of oil in place
for the Urnenskoye and Ust-Tegusskoye deposits in Uvat, which
enables TNK-BP to start their development.

The Government of the Tyumen region and TNK-BP, which holds
licenses for exploration and development for the bulk of Uvat
deposits, have a cooperation agreement whereby development of
Uvat should become a locomotive for economic advancement of
southern Tyumen.

                          About TNK-BP

Headquartered Moscow, Russia, TNK-BP Holding OAO --
http://www.tnk-bp.com/-- operates six refineries in Russia and
Ukraine, and markets products through 2,100 retail service
stations operating under TNK and BP brand.  TNK owns 56.5% of
TNK-BP Holding, and Onako and Sidanco hold 6.8% and 30.9%,
respectively.  The other 5.8% belongs to TNK-BP shareholders.

TNK-BP holds a strategic position as the second largest liquids
producer in the Russian intergraded operating environment,
accounting for around 18% of Russia's total crude oil
production.
                          *     *     *

Standard & Poor's assigned BB+/Stable foreign currency local
currency ratings to TNK-BP on June 30, 2006.

Moody's assigned Ba2/Positive foreign currency rating to the
company on Jan. 24, 2006.

Fitch assigned BB+/Positive foreign currency rating to TNK-BP on
Feb. 13, 2006, and BB+/Positive local currency rating on
Aug. 24, 2005.


* S&P Rates Dnipropetrovsk City's US$10-Mln Bond Issue at B+
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
local currency 'B+' long-term debt rating and 'uaA+' Ukraine
national scale rating to the proposed Ukrainian hrivnya
UAH50-million (about US$10 million) debut senior unsecured bond
to be issued by the City of Dnipropetrovsk (B+/Stable/--;
Ukraine national scale 'uaA+').  The final rating will be
assigned upon receipt of bond documentation, including all
necessary approvals.

"The ratings on the bond are the same as those on the city,
which reflect Dnipropetrovsk's low financial flexibility, high
infrastructure needs, and contingent liabilities related to
municipal utilities," said Standard & Poor's credit analyst
Boris Kopeykin.

These weaknesses are mitigated by the city's low debt and its
position as the third-largest city in Ukraine (foreign currency
BB-/Stable/B; local currency BB/Stable/B, Ukraine national scale
'uaAA').  Further support for the ratings is provided by the
city's growing economy and strong financial performance.

The issue's placement is planned for March 2007, with quarterly
or biannual coupon payments below 12.5% per year and a three-
year maturity.

"With this bond issue, the city will start accumulating long-
term direct debt, which will not, however, exceed a low 6.5% of
2007 operating revenues," said Mr. Kopeykin.

By 2008, total tax-supported debt may rise to as much as 30% of
operating revenues if a local water supplier utilizes its loan
from the European Bank for Reconstruction and Development, but
debt service is likely remain below 10% of revenues over the
next two-to-three years.

Dnipropetrovsk's revenue predictability and flexibility are low,
owing to central government controls, an evolving interbudgetary
system, and changing tax rates, types, and shares.

High infrastructure needs in utilities, transport, and road
construction will pressure Dnipropetrovsk's budget over the
longer term.  Furthermore, the city will have to provide
financial support for these utilities as they accumulate payment
arrears and continue to make losses.

Dnipropetrovsk benefits, however, from its position as an
important industrial and commercial center.  Its economy will
continue to grow at or above the national average, although from
currently low wealth levels.

"As a result, budget revenues are likely to grow rapidly, and we
expect sound financial performance to continue, with double-
digit operating surpluses in the next couple of years," added
Mr. Kopeykin.


                          Ratings List
                          ------------
   Issuer credit rating                    B+/Stable/--

   Ukraine national scale rating           uaA+

   Proposed UAH50-million debut senior unsecured bond
   Local currency                          B+ (prelim)

   Ukraine national scale rating           uaA+ (prelim)

    * To reflect investors' increasing interest in local and
      regional governments in Ukraine, Standard & Poor's now
      assigns both foreign and local currency issuer credit
      ratings to these entities.


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


A.R.C. GARAGES: Brings In Liquidators from BN Jackson Norton
------------------------------------------------------------
Michael Colin John Sanders of BN Jackson Norton was appointed
Liquidator of A.R.C. Garages Limited on Nov. 22 for the
creditors' voluntary winding-up procedure.

The company can be reached at:

         A.R.C. Garages Limited
         106-110 Hill Road
         Mitcham
         Surrey CR4 2HS
         United Kingdom
         Tel: 020 8648 3786


AKER KVAERNER: Unveils Dividend & Shareholders Policies
-------------------------------------------------------
Aker Kvaerner, at the Capital Markets Day, Dec. 1, 2006,
discloses of:

   -- Dividend Policy Going Forward:

      The intention is to give Aker Kvaerner shareholders a
      competitive yearly dividend by distributing 30-50 percent
      of net profit, either through cash dividend and /or share
      buy-back.

   -- External Guiding:

      Aker Kvaerner's target of an EBITDA margin of 6.5-7.0
      percent by the end of 2007 is confirmed.  Based on the
      quality of the order backlog and the positive market
      outlook, there is potential for further improvement in the
      profitability after 2007.


At the Ordinary General Assembly in Aker Kværner ASA, taking
place March 29, 2007, the Board of Directors will propose the
following:

   -- Share Split 1-5:

      To split the face value of NOK 10 per share to NOK 2 per
      share and thus increase outstanding number of shares to
      275,146,170.

   -- Share Buy-Back Program:

      A renewal of the "Share buy-back program" of up to 10
      percent of the outstanding shares for between NOK1 and
      NOK900 in the period 18 months following the day of the
      General Assembly Meeting, March 29, 2007.

   -- Extraordinary Dividend After Pulping & Power Disposal:

      Based on the expected closing of the transaction with
      Metso before yearend 2006, to pay an extraordinary
      dividend of NOK30 per share, in total NOK1.65 billion.

                      About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and
affiliates, provides engineering and construction services,
technology products and integrated solutions.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C.  The group operates in
Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany,
Netherlands, Poland, Russia, Spain, Sweden, United Kingdom,
Australia, China, India, Indonesia, Japan, Malaysia, Singapore,
South Korea, Thailand, Brazil, Chile, Canada and the United
States.

                        *     *     *

As reported in the TCR-Europe on April 26, Moody's Investors
Service upgraded the of Aker Kvaerner Oil & Gas Group and Aker
Kvaerner AS, primarily to reflect the sustainable strong
recovery in profitability and cash flow generation of the ring-
fenced oil and gas group over the past two years, coupled with
the clear reduction in senior debt, repaid from internally
generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS

   -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

Moody's said the outlook on all ratings is stable.


AKSYS LTD: Sept. 30 Stockholders' Deficit Widens to US$34.8 Mln
---------------------------------------------------------------
Aksys, Ltd.'s total stockholders' deficit increased US$31.5
million to US$34.8 million as of Sept. 30, 2006, from
US$3,304,723 as of Dec. 31, 2005.

The company's balance sheet at Sept. 30, 2006, showed US$6.9
million in total assets and US$41.8 million in total
liabilities, compared to its Dec. 31, 2005 balance sheet, which
showed US$19.1 million in total assets and US$22.4 million in
total liabilities.

The company's Sept. 30 balance sheet further showed negative
working capital with US$5,008,044 in total current assets
available to pay US$24,136,487 in total current liabilities.

For the three months ended Sept. 30, 2006, the company incurred
a US$6,301,267 net loss on US$431,265 of total revenues versus a
US$7,018,225 net loss on US$822,309 of total revenues for the
same period in 2005.

The US$700,000 decrease in net loss was mainly attributable to
the increase in other income of US$4.0 million offset by the
impairment charge of US$3.1 million.

The US$391,000 or 47.6% decrease in revenue relates to the
company's termination of approximately seven rental contracts
representing a decrease of approximately 33 patients using the
personal hemodialysis system as a result of the company's
restructuring.  In addition, the company is not actively
marketing its PHD System. Accordingly, there were no product
sales in the quarter ended Sept. 30, 2006, and rental revenues
and service and supplies revenues decreased approximately
US$158,000, or 26.8%, in the three months ended Sept. 30, 2006,
as compared to the three months ended Sept. 30, 2005.

                           Refinancing

As a result of the refinancing transaction that occurred in June
2006, Durus has the option to invest additional funds in the
company in exchange for preferred stock and warrants.  The fair
value of this option on the date of the transaction was
approximately US$16.3 million and is classified as a current
liability.  Since it is a liability, the fair value is
remeasured and the liability is adjusted for changes in fair
value each period.  As of Sept. 30, 2006, the fair value of the
liability had decreased to approximately US$17.0 million from
the fair value at June 30, 2006, of US$21.4 million.  The
decrease in the fair value of the option is related to the
decrease in the price of the company's common stock from June
30, 2006, to Sept. 30, 2006.

Full-text copies of the company's financial statements for the
third quarter 2006 are available for free at:

               http://researcharchives.com/t/s?1631

Based in Lincolnshire, Ill., Aksys Ltd. -- http://www.aksys.com/
-- Aksys, Ltd. provides hemodialysis products and services for
patients suffering from end-stage renal disease, known as
chronic kidney failure.  The company offers an automated
personal hemodialysis system, known as the Aksys PHD, a Personal
Hemodialysis System (PHD System), which is designed to enable
patients to perform frequent hemodialysis at alternate sites,
such as their own homes.  In Europe, the company is
headquartered in England, United Kingdom.


ANGIOTECH PHARMA: S&P Rates US$325 Million Senior Notes at B+
-------------------------------------------------------------
Standard & Poor's lowered the corporate credit rating on
Angiotech Pharmaceuticals Inc. to 'B+' from 'BB-', and the
subordinated debt rating to 'B-' from 'B'.

Standard & Poor's also assigned a 'B+' senior unsecured debt
rating to Angiotech's proposed seven-year US$325 million senior
unsecured notes, proceeds from which, along with cash balances,
will be used to repay the company's existing US$320 million
secured Term Loan B.  Angiotech will also retire the US$75
million revolving credit facilities of its subsidiary, Angiotech
Pharmaceuticals Inc.  As a result, the 'BB-' secured bank loan
rating with a '2' recovery rating will be withdrawn.

The outlook is stable.

"The downgrade reflects Angiotech's weaker-than-anticipated
financial profile as evidenced by credit metrics that have
deteriorated since the American Medical Instruments Inc.
acquisition, and a capital structure with high debt that will
amortize more slowly than under the previous financial structure
implemented for the AMI acquisition," said Standard & Poor's
credit analyst Don Povilaitis.

Weaker-than-expected cash flow in fiscal 2006 is primarily due
to lower Taxus drug-eluting related royalties and, to a lesser
extent, from lower equipment manufacturer orders.

Vancouver, British Columbia-based Angiotech is a Canadian
specialty pharmaceutical company whose core strength is adding
pharmaceutical compounds to medical devices and targeting
interventions with high failure rates that can result in costly
corrective surgeries.  Angiotech receives royalty payments under
a licensing agreement with marketing partner Boston Scientific
Corp. for the drugs applied to coat the Taxus DES. This is
Angiotech's most important source of revenue.

These royalty payments, which accounted for about half of 2006
revenues, are the company's most important source of revenue.
Thus, product concentration remains a concern.

The success of Angiotech's Taxus DES has permitted for strong
free cash flow generation since 2004.  Still, Standard & Poor's
had expected Angiotech's 2006 pro forma lease-adjusted EBITDA to
reach about US$150 million, but several material issues have
surfaced thus far in 2006 that will preclude the company from
reaching this level.

Profitability metrics have also been affected as a result of the
lower-than-expected Taxus royalties, as well as the lower demand
for Angiotech's wound closure products.  While the company's
margins were expected to decline slightly in 2006 due to
clinical trials and increased its R&D expenses, the erosion in
cash flow is greater than anticipated.

Without meaningful improvement in Taxus revenues or from the
company's pipeline, operating margins are likely to be
relatively flat in the next few years.

The stable outlook reflects Standard & Poor's expectation that
credit metrics will gradually strengthen in the medium term.
Should, however, Taxus-related revenues become adversely
affected by competitive, legal, or safety factors, thereby
depressing cash flow, the outlook could be revised to negative.
If BSX is able to successfully deal with the onset of stent
competition in the U.S., expected by 2008, and Angiotech is able
concurrently to strengthen its capital structure, then the
outlook could be revised to positive.


ANGIOTECH PHARMA: Moody's Rates US$325 Million Sr. Notes at Ba3
---------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Angiotech Pharmaceuticals, Inc to B1 from Ba3 and changed the
ratings outlook to negative from stable, reflecting weaker than
anticipated projected revenue and cash flow.

Moody's also lowered the speculative grade liquidity rating to
SGL-3 from SGL-2, due to the lack of external liquidity and
lower operating cash flow.

Moody's also assigned a rating of Ba3 to the company's proposed
US$325 million senior unsecured notes and affirmed the B2 rating
on the existing senior subordinated notes.  Moody's expects that
proceeds from the senior unsecured notes will be used to repay
the outstanding principal amount under its senior secured term
loan facility and the company will terminate its current
revolving credit facility.

The downgrade of Angiotech's Corporate Family Rating to B1
reflects the following factors:

   -- weaker than anticipated results than anticipated when
      Moody's initially rated the company in March 2006;

   -- a decline in EBITDA related to lower royalties from the
      Taxus drug-eluting stent, a high margin product that
      accounts for almost 50% of the company's revenues;

   -- higher than anticipated sales and marketing expenses;

   -- a slowdown in orders from original equipment
      manufacturers; and,

   -- a more pessimistic view of the drug-eluting stent market.

Moody's notes that Angiotech recently lowered guidance for 2006
revenues and earnings, based on lower than expected stent sales
by its partner, Boston Scientific, higher operating expenses and
lower sales of medical devices to original equipment
manufacturer.  Due to weaker operating trends, Moody's lowered
its cash flow estimates for fiscal 2006 through fiscal 2008.

As a result of these new cash flow projections, Moody's believes
that cash flow coverage of debt and other financial metrics are
no longer indicative of a Ba3 rating but are more indicative of
a weakly positioned B1 rated company.

The negative outlook reflects the potential for additional
downward revisions to Moody's current projections given weak
operating trends.  Moody's pessimistic view of the drug-eluting
stent market, the threat of additional competitors in the stent
market and potential disruptions to AMI business may all serve
as future catalysts to lower existing projections for revenues,
operating margins, and cash flow, causing negative pressure on
the ratings.

The downgrade in the speculative grade liquidity rating to SGL-3
from SGL-2 reflects the absence of access to external liquidity,
lower cash flow guidance and deteriorating operating trends.
The company has almost US$100 million of cash on hand which
serves as adequate cushion against unforeseen events.  However,
if the cash balance were to decline to below US$50 million, the
company's financial flexibility and liquidity would be
materially reduced, thus pressuring the rating.

New ratings assigned to Angiotech Pharmaceuticals, Inc.:

   -- US$325 million guaranteed senior unsecured notes, due
      2013, Ba3, LGD3, 46%

   -- Corporate Family Rating, downgraded to B1 from Ba3

   -- PDR Rating, affirmed Ba3

   -- US$250 million senior subordinated notes, due 2014,
      affirmed B2 rating LGD assessment changed to LGD-6, 91%
      from LGD-5, 82%

   -- Speculative Grade Liquidity Rating, downgraded to SGL-3
      from SGL-2

   -- Family LGD assessment now LGD-4, 65% versus LGD-4, 50%

The rating outlook is negative.

These ratings will be withdrawn:

   -- Senior Secured Revolver, due 2011, Ba1, LGD2, 27%
   -- Senior Secured Term Loan B, due 2013, Ba1, LGD2, 27%

Angiotech Pharmaceuticals, Inc., founded in 1992, based in
Vancouver, Canada, is a specialty pharmaceutical company that
focuses on drug-device combinations and drug-loaded surgical
biomaterial implants.  The company reported US$222 million in
total revenue for the nine months ended Sept. 30, 2006.  The
company's global locations include Denmark, Switzerland and the
United Kingdom.


BARTON BUILDING: G. W. Rhodes Leads Liquidation Procedure
---------------------------------------------------------
G. W. Rhodes of Begbies Traynor was appointed Liquidator of
Barton Building Services Limited on Nov. 21 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Barton Building Services Limited
         62 Gladstone Pl
         Brighton
         East Sussex BN2 3QD
         United Kingdom
         Tel: 012 7368 4488


BRITISH ENERGY: Performance Concerns Spur S&P to Revise Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on U.K.-
based nuclear generator British Energy Group PLC, and its
subsidiary, British Energy Holdings PLC, to negative from
stable.  At the same time, the 'BB+' long-term corporate credit
ratings on both entities were affirmed.

"The outlook revision reflects Standard & Poor's concerns about
the long-term performance of BE's nuclear fleet on the back of
lower-than-expected output," said Standard & Poor's credit
analyst Beatrice de Taisne.  "Favorable market conditions,
however, have sheltered BE from the financial consequences
of its weaker-than-expected output."

The ratings on BE and BEH reflect:

   -- the exposure of cash flows to volatile
      wholesale electricity market prices;

   -- the risk of unplanned outages;

   -- weaker-than-expected nuclear output;

   -- higher-than-expected capital expenditure requirements;
      and

   -- increased collateral requirements, owing to high
      power prices.

The ratings are also constrained by the group's position as a
price taker in the wholesale power market, and the constraint on
cash flows imposed by the cash-sweep mechanism that sweeps 65%
of excess cash flows into the Nuclear Liabilities Fund, and
allows the rest to be distributed to shareholders.

These risks are partially offset by:

   -- BE's strong liquidity;

   -- considerably reduced outstanding debt service, with
      much stronger financial ratios following
      restructuring;

   -- supportive covenants; and

   -- fuel-supply agreements that provide a partial
      hedge against the risk of decreasing electricity prices.

The group has also benefited from:

   -- a significant improvement in base-load wholesale
      power prices, and

   -- its success in achieving more low collateral,
      longer-term trades.

Standard & Poor's remains concerned about the longer term
prospects for nuclear output and structural problems with BE's
nuclear fleet.  The negative effects of nuclear output below our
expectations have, however, been largely offset by favorable
market conditions which should enable BE to exceed our financial
target for the year.

"The ratings could be lowered if operating performance falls
below our revised expectations, particularly if the current high
wholesale-price environment is not sustained," said Ms. de
Taisne.  "The outlook could be revised to stable if operating
performance meets previous expectations, although the ratings
will not be raised unless operational issues are resolved."


CAROUSEL NURSERY: Claims Filing Period Ends Dec. 22
---------------------------------------------------
Creditors of Carousel Nursery (U.K.) Limited have until Dec. 22
to send in their full names, their addresses and descriptions,
full particulars of their debts or claims, and the names and
addresses of their Solicitors (if any), to appointed Liquidator
Edward Christopher Wetton at:

         Gibson Booth
         15 Victoria Road
         Barnsley S70 2BB
         United Kingdom

The company can be reached at:

         Carousel Nursery (U.K.) Limited
         166 Wath Road
         Mexborough
         South Yorkshire S64 9RB
         United Kingdom
         Tel: 01709 584 367
         Fax: 01709 591 242


DUTCH CROWN: Appoints Andrew McTear to Liquidate Assets
-------------------------------------------------------
Andrew McTear of McTear Williams & Wood was appointed Liquidator
of Dutch Crown Flowers (U.K.) Limited on Nov. 20 for the
creditors' voluntary winding-up procedure.

Headquartered in Ipswich, England, Dutch Crown Flowers (U.K.)
Limited -- http://www.dutchcrownflowers.co.uk/-- supplies a
full range of flowers, plants and associated products direct
from Holland for the professional florist.


ESSEX MATCH: Creditors Confirm Liquidator's Appointment
-------------------------------------------------------
Creditors of Essex Match Company Limited (formerly Essex Match
(London Sales) Limited) confirmed Nov. 20 the appointment of
Peter George Byatt as the company's Liquidator.

The company can be reached at:

         Essex Match Company Limited
         5 Woodford Trading Estate
         Southend Road
         Woodford Green
         Essex IG8 8HF
         United Kingdom
         Tel: 020 8550 2221
         Fax: 020 8550 1689


EVERGREEN FLOORING: Names N. A. Bennett Liquidator
--------------------------------------------------
N. A. Bennett of Leonard Curtis was appointed Liquidator of
Evergreen Flooring Limited on Nov. 21 for the creditors'
voluntary winding-up procedure.

Headquartered in Brackley, England, Evergreen Flooring Limited
-- http://www.evergreen-flooring.co.uk/-- imports hard wood
floors including oak, jatoba, American maple, American walnut,
American cherry and ash.  The company also distributes Mapei
adhesives and screens and Pallmann floor seals.


EXPRESSLINE DIST: Creditors Confirm Liquidator's Appointment
------------------------------------------------------------
Creditors of Expressline Distribution Limited confirmed
Nov. 21 the appointment of Roderick Graham Butcher of Butcher
Woods as the company's Liquidator.

Headquartered in Oldbury, England, Expressline Distribution
Limited -- http://www.expresslinegroup.co.uk/-- provides
storage, courier and haulage services.


F & S FURNITURE: Hires Kiran Mistry to Liquidate Assets
-------------------------------------------------------
Kiran Mistry of HKM LLP was appointed Liquidator of F & S
Furniture Wholesale Limited on Nov. 21 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         F & S Furniture Wholesale Limited
         Leamore House
         Leamore Lane
         Walsall
         West Midlands WS2 7DQ
         United Kingdom
         Tel: 01922 400 911


FOUR SEASONS: Taps Joint Liquidators from O'Hara & Co.
------------------------------------------------------
Peter O'Hara and Simon Weir of O'Hara & Co. were appointed Joint
Liquidators of Four Seasons Coatings Limited on Nov. 20 for the
creditors' voluntary winding-up proceeding.

Headquartered in Cleckheaton, England, Four Seasons Coatings
Limited -- http://www.4seasons-coatings.com/-- supplies wall
coatings for house exteriors.


GRAYS TYRES: Claims Registration Ends Dec. 28
---------------------------------------------
Creditors of Grays Tyres (Forest Gate) Limited have until
Dec. 28 to send in their full names, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their Solicitors (if any), to appointed
Liquidator Richard Howard Toone at:

         Chantrey Vellacott DFK LLP
         Russel l Square House
         10-12 Russell Square
         London WC1B 5LF
         United Kingdom

The company can be reached at:

         Grays Tyres (Forest Gate) Limited
         418 Romford Road
         Newham
         London E7 8DF
         United Kingdom
         Tel: 020 8472 1234
         Fax: 020 8548 1002


JANE HEATH: Creditors Confirm Voluntary Liquidation
---------------------------------------------------
Creditors of Jane Heath Home Limited confirmed Nov. 16 the
resolutions for voluntary liquidation and the appointment of
John Russell and Andrew Philip Wood of The P&A Partnership as
Liquidators.

Headquartered in Rotherham, England, Jane Heath Home Limited --
http://www.janeheath.com/-- supplies a wide variety of
home-ware products from gifts and soft furnishings to art and
far eastern furniture.


JDI FOOD: Nominates Laurence S. Burt as Liquidator
--------------------------------------------------
Laurence S. Burt of Ganley Burt was nominated Liquidator of
JDI Food Projects Limited on Nov. 22 for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         JDI Food Projects Limited
         Church Street
         Uttoxeter
         Staffordshire ST148AF
         United Kingdom
         Tel: 01889 560 842


KAM INFORMATION: Creditors' Claims Due Jan. 5, 2007
---------------------------------------------------
Creditors of Kam Information Systems Limited have until
Jan. 5, 2007, to send their names and addresses and the
particulars of their debts or claims, and the names and
addresses of their Solicitors, if any, to appointed Liquidator
Paul Michael McConnell at:

         Monahans
         38-42 Newport Street
         Swindon
         Wiltshire SN1 3DR
         United Kingdom

The company can be reached at:

         Kam Information Systems Limited
         Baches Street
         Hackney
         London N1 6DL
         United Kingdom
         Tel: 01380 728 500


MITSUBISHI MOTORS: Secures US$485-Million Bank Loan
---------------------------------------------------
Mitsubishi Motors Corp. has secured a JPY56-billion (US$485
million; GBP250 million) loan as it continues its efforts to
improve its finances and turn itself around, BBC News reports.

According to Malaysia Star, Mitsubishi Motors had secured the
loan from a group of financial institutions led by the Bank of
Tokyo-Mitsubishi UFJ.

The loan is being co-managed by the Mitsubishi UFJ Trust and
Banking Corp., BBC relates.

Malaysia Star says that the syndicated loan is part of the
company's fund-raising plans, which it announced two years ago
in a revamped restructuring after DaimlerChrysler AG decided to
end financial assistance amid a massive recall scandal, and the
Mitsubishi group took the lead in providing help.

Moreover, the report notes that the loan will help fund the
development of cars.

The automaker said that through the loan, it had obtained some
10% more in funds than originally sought and added seven new
creditors, with 31 firms taking part in it.

In January 2005, Malaysia Star recounts, Mitsubishi Motors said
it had planned to obtain some JPY270 billion in funding in the
period until March 2008.

The company hopes to return to profit for the full financial
year ending March 2007, BBC news adds.

                    About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia.  Its
products are sold in over 170 countries.

                        *     *     *

As reported by the Trubled Company Reporter - Asia Pacific on
Sept. 29, Standard & Poor's Ratings Services raised its long-
term  corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile.  S&P said the outlook on
the long-term rating is stable.

As reported by the Trubled Company Reporter - Asia Pacific on
Aug. 4, 2006, Rating & Investment Information Inc. has
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.

As reported by the Trubled Company Reporter - Asia Pacific on
July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook.  The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.


KONINKLIJKE AHOLD: Earns EUR210 Million for Third Quarter 2006
--------------------------------------------------------------
Koninklijke Ahold N.V. released it financial results for the
third quarter and nine months ended Sept. 30, 2006.

Koninklijke Ahold posted EUR210 million in net profit against
EUR10.32 billion in revenues for the third quarter of 2006,
compared with EUR236 million in net loss against EUR10.25
billion in revenues for the same period in 2005.

The company registered EUR675 million in net income against
EUR34.88 billion in revenues for the first nine months of 2006,
compared with EUR38 million in profit against EUR33.66 billion
in revenues for the same period in 2005.

                      Income by Operations

Stop & Shop/Giant-Landover Arena

Operating income in the first quarter of 2006 included a gain of
US$23 million (EUR19 million) on the sale of real estate,
primarily two distribution facilities.

This was partially offset by restructuring and severance charges
of US$20 million (EUR17 million) related primarily to the
closure of one of these facilities.  Furthermore, first quarter
2006 operating income was positively affected by a one-time
benefit of US$27 million (EUR23 million) due to a negotiated
plan amendment in other post-employment benefits.  Operating
income in the second quarter of 2005 was affected by
restructuring and related charges of US$20 million
(EUR16 million) related to supply chain streamlining and store
closures at Giant-Landover.

Giant-Carlisle/Tops Arena

Operating income in the third quarter of 2006 includes
impairment losses of US$9 million (EUR7 million), incurred in
the Northeast Ohio region.  Operating income in the third
quarter of 2005 included impairment losses on goodwill of
US$17 million (EUR14 million) and on property, plant and
equipment of US$57 million (EUR47 million).

These were mainly incurred in the Northeast Ohio and eastern New
York region and were partially offset by gains on the sale of
property, plant and equipment of US$13 million (EUR11 million)
resulting from the sale of stores located in eastern New York
and the Adirondacks region of New York.  In addition, gains on
the sale of property, plant and equipment in the first three
quarters of 2005 (EUR24 million) included the sale of 198
convenience stores operating under the banners of Wilson Farms
and Sugarcreek in the second quarter of 2005.

Central Europe Arena

As a result of the announcement on Nov. 6, 2006, to divest the
activities in Slovakia, an impairment loss of EUR19 was
recognized in the third quarter of 2006.  A gain of EUR41
million on the sale of three shopping centers in Poland and the
Czech Republic was recognized in the first quarter of 2006.

Gains on the sale of property, plant and equipment in the first
three quarters of 2005 (EUR21 million) included the sale of 13
hypermarkets in Poland in the first quarter of 2005.

Schuitema

Operating income in the third quarter of 2006 includes expenses
of EUR5 million related to an adjustment of the pension
liability resulting from an omission in the actuarial
calculation that originated prior to 2004.

USF Broadline

Operating income in the third quarter of 2006 includes the
reversal of an impairment loss of US$9 million (EUR7 million)
following the sale and partial leaseback of an office building.
First quarter 2006 operating income included US$20 million
(EUR17 million) of annual vendor allowances that were previously
principally recognized in the fourth quarter.

The improvements in U.S. Foodservice's vendor allowance tracking
processes allow for the recognition of these allowances based on
purchasing activity over the course of the year, rather than at
the end of the year.  Operating income in the third quarter of
2005 included a gain on the sale of the Sofco division,
partially offset by restructuring charges related to facility
consolidation and employee severance, resulting in a net gain of
US$15 million (EUR12 million).

Group Support Office

Operating income in the second quarter of 2006 included a
release from a legal provision of EUR7 million.  Operating
income in the third quarter of 2005 was negatively impacted by
the settlement in the securities class action and the
VEB proceedings for an amount of EUR896 million and positively
impacted by a release of a legal provision (EUR37 million) with
respect to a dispute on the appropriate conversion into
Argentine Pesos of an amount previously payable to a third party
in U.S. dollars pursuant to Argentine law.

Included in operating income are impairments and gains and
losses on the sale of assets and disposal groups held for sale.

As of Sept. 30, 2006, Ahold had EUR18.56 billion in total
assets, EUR13.52 billion in total liabilities, and EUR5.04
billion in shareholders' equity.

                         About Ahold

Headquartered in Amsterdam, the Netherlands, Koninklijke Ahold
N.V. -- http://www.ahold.com/-- retails food through
supermarkets, hypermarkets and discount stores in North and
South America, and Europe.  The company's chain stores include
Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco.  Ahold also
supplies food to restaurants, hotels, healthcare institutions,
government facilities, universities, stadiums, and caterers.

                        *     *     *

Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.


PARTHENON CONSTRUCTION: Nominates Ninos Koumettou as Liquidator
---------------------------------------------------------------
Ninos Koumettou of AlexanderLawsonJacobs was nominated
Liquidator of Parthenon Construction Limited on Nov. 17 for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Parthenon Construction Limited
         Unit 26
         Northumbland Park Industrial Estate
         Willoughby Lane
         Haringey
         London N17 0YL
         United Kingdom
         Tel: 0800 298 3178


PLATINUM INDEPENDENT: Creditors Confirm Liquidators' Appointment
----------------------------------------------------------------
Creditors of Platinum Independent Advisers Limited confirmed on
Nov. 15 the appointment of Nigel Price and Mark Elijah Thomas
Bowen as the company's Joint Liquidators.

The company can be reached at:

         Platinum Independent Advisers Limited
         67 Rugeley Road
         Burntwood
         Staffordshire WS7 9BJ
         United Kingdom
         Tel: 01543 677 550
         Fax: 01543 677 980


PREMIER FOODS: Buying RHM PLC for GBP1.2 Billion
------------------------------------------------
The boards of Premier Foods PLC and RHM PLC have reached
agreement on the terms of a recommended offer to be made by
Premier to acquire the entire issued and to be issued share
capital of RHM.  It is intended that the Offer be implemented by
way of a scheme of arrangement under section 425 of the
Companies Act 1985.

Following the acquisition, Premier will be the largest food
producer in the U.K. and believes it will be able to build on
the complementary strategies of Premier and RHM from a position
of significantly enhanced scale and efficiency.  Premier also
believes that the acquisition will enable it to take advantage
of top-line growth opportunities through strong innovation and
brand investment, while also delivering substantial cost savings
to enhance efficiency and competitiveness.  In particular:

    * Premier will have pro forma sales of GBP2.6 billion,
      with 93% of those sales from the U.K.

    * Premier will have an outstanding portfolio of
      iconic British brands, the top 10 of which will
      have retail sales of approximately GBP1.1 billion
      in aggregate;

    * As the largest food producer in the U.K., Premier
      will look to develop its strategic partnerships with
      the major U.K. food retailers; and

    * The acquisition meets Premier's acquisition criteria
      with GBP85 million of annual synergies identified
      from integrating the two businesses delivering
      significant value creation to the shareholders of
      both Premier and RHM.

                       Terms of the Offer

Under the terms of the Offer, RHM Shareholders will receive:
For each RHM Share: one New Premier Share, and GBP83.2 pence in
cash,

    * valuing each RHM Share at GBP352.45 pence, representing
      a premium of 29.7% to the Closing Price per RHM Share
      on  Dec. 1, 2006 of 271.75 pence, based on the
      Closing Price per Premier Share of 269.25 pence on
      Dec. 1, 2006,

    * valuing the entire issued and to be issued ordinary
      share capital of RHM at approximately GBP1.23 billion
      which represents an enterprise value for RHM of
      approximately GBP2 billion.

Existing RHM Shareholders will hold approximately 41% of the
issued share capital of the enlarged Premier and existing
Premier Shareholders approximately 59% of the enlarged Premier.

The share element of the consideration will allow RHM
Shareholders to benefit substantially from the synergies
expected to arise, as well as from the longer term strategic
benefits expected from the combination.

RHM will pay an interim dividend of 5.5 pence per RHM Share in
respect of the period ended Oct. 28, 2006.  RHM Shareholders on
the register at Dec. 22, 2006, will be entitled to the RHM
interim dividend, whether or not the Offer is completed, which
will be paid on Feb. 23, 2007.

In order to align dividend payments to Premier Shareholders and
RHM Shareholders for the year, the Board of Premier has declared
a second interim dividend of 5.5 pence per Premier Share.
Premier Shareholders on the register at Dec. 22, 2006 will be
entitled to receive this dividend, whether or not the Offer is
completed, to be paid on Feb. 23, 2007.

The 2006 final dividend of Premier, to which holders of New
Premier Shares will be entitled (assuming the acquisition
completes), will be set by the directors of Premier in
accordance with its current dividend policy, save that it will
take account of this second interim dividend of 5.5 pence which
will be paid to Premier Shareholders on 23 February 2007.  The
2006 final dividend and any 2007 interim dividend of Premier
will be paid in the calendar year 2007.

The directors of RHM, who have been so advised by Credit Suisse
and Citigroup, consider the terms of the Offer to be fair and
reasonable.  In providing their advice, Credit Suisse and
Citigroup have taken into account the commercial assessments of
the directors of RHM.   Accordingly, the directors of RHM
unanimously recommend RHM Shareholders to vote in favor of the
Scheme, as they have irrevocably undertaken to do in respect of
their own beneficial holdings of 2,619,300 RHM Shares
representing approximately 0.8% of the existing ordinary issued
share capital of RHM.

A Scheme circular containing notice of the RHM Extraordinary
General Meeting and Court Meeting will be sent to RHM
Shareholders in due course.  These meetings are expected to take
place in February with completion of the acquisition in March.

A circular containing notice of the Premier Extraordinary
General Meeting will be sent to Premier Shareholders in due
course.  The Premier Extraordinary General Meeting is expected
to take place in February with completion of the acquisition in
March.

"This acquisition provides a unique opportunity to combine two
of the U.K.'s leading food companies to create the U.K.'s
largest food producer.  There is excellent potential for Premier
to enhance its top-line growth in conjunction with improved
efficiency to deliver substantial value to shareholders,"
David Kappler, chairman of Premier, commented:

"RHM is a business with strong brands and talented people. This
acquisition brings Premier more great British brands with
leading category positions, which fit naturally in our
portfolio.  As we've done before, we intend to drive growth
through innovation and investment whilst maintaining a tight
control on costs.  This acquisition transforms our scale and we
believe it will enable us to be a better partner with our retail
customers," Robert Schofield, chief executive of
Premier, commented

"The Board of RHM has long appreciated the commercial and
financial logic of a combination with Premier to create the
leading UK-focused food manufacturer.  This transaction achieves
that objective and delivers substantial value to our
shareholders through both the immediate offer premium and
participation in the enhanced growth prospects of the enlarged
Premier under its proven management team," Jan du Plessis,
chairman of RHM, commented.

Rothschild is acting as financial adviser to Premier.  Merrill
Lynch International, who also provided certain financial advice,
and Hoare Govett are acting as joint corporate brokers to
Premier.

Credit Suisse and Citigroup are acting as joint financial
advisers to RHM.  Credit Suisse is acting as corporate broker to
RHM.

Headquartered in Birmingham, England, Premier Foods --
http://www.premierfoods.co.uk/-- manufactures Ambrosia custard
and rice pudding, Branston pickle, Hartley's jams and marmalade
and Sarsons vinegar.

At Dec. 31, 2005, Premier Foods PLC's balance sheet showed
GBP858.4 million in total assets and GBP876.4 in total
liabilities, resulting in an GBP18 million stockholders'
deficit.


PREMIERSHIP SERVICES: Names Eric William Sheppard Liquidator
------------------------------------------------------------
Eric William Sheppard was appointed Liquidator of Premiership
Services Limited (t/a Gizmotronics) on Nov. 22 for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Premiership Services Limited
         1A Kingsway
         Barnet
         London N12 0EW
         United Kingdom
         Tel: 020 8371 8700


SEWGOOD COMPANY: Creditors Confirm Liquidator's Appointment
-----------------------------------------------------------
Creditors of The Sewgood Company Limited confirmed Nov. 20 the
appointment of Situl Devji Raithatha as the company's
Liquidator.

The company can be reached at:

         The Sewgood Company Limited
         Unit 3 Temple Buildings
         Temple Road
         Leicester
         Leicestershire LE5 4JG
         United Kingdom
         Tel: 0116 273 5683
         Fax: 0116 273 5683


SOHAM BUILDING: Hires Liquidator from McTear Williams & Wood
------------------------------------------------------------
Andrew McTear of McTear Williams & Wood was appointed Liquidator
of Soham Building Supplies Limited on Nov. 16 for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         Soham Building Supplies Limited
         49d Fordham Road
         Soham
         Ely
         Cambridgeshire CB7 5AJ
         United Kingdom
         Tel: 01353 720 505
         Fax: 01353 722 552


STRATEGIC FOCUS: Brings In Liquidator from Unity Business
---------------------------------------------------------
Christopher Benjamin Barrett of Unity Business Services LLP was
appointed Liquidator of Strategic Focus Limited (formerly JAC
Business Consultancy Limited) on Nov. 22 for the creditors'
voluntary winding-up procedure.

Headquartered in Liverpool, England, Strategic Focus Limited --
http://www.strategicfocus.co.uk/-- provides a comprehensive
range of creative and business support services including
business planning, project management, feasibility studies,
policy development and implementation, marketing strategy,
branding, corporate identity, direct mail, websites,
exhibitions, copywriting, POS, advertising, events, signage, PR,
among others.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders   Total    Working
                                   Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                              (214)       1,756      293


BELGIUM
-------
City Hotels               CITY.BR     (7)         210      (15)
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)


DENMARK
-------
Elite Shipping                       (28)         101       19


FRANCE
------
Acces Industrie                       (8)         106      (35)
Arbel                     PA.ARB     (98)         222      (72)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Charbo De France                  (3,872)       4,738   (2,868)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256       21
Dollfus Mieg & Cie S.A.   DS         (16)         143      (45)
Euro Computer System                (110)         682      377
Genesys S.A.              GNS.PA     (10)         120       (5)
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (68)         233       29
Labo Dolisos              DOLI.PA    (28)         110      (33)
Matussiere et Forest S.A. MTF        (78)         294      (28)
Oeneo S.A.                SABT.PA    (12)         292       38
Pneumatiques Kleber S.A.             (34)         480      139
Rhodia S.A.               RHA       (788)       6,681      171
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Selcodis S.A.             SPVX       (18)         128       22
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
St Fiacre (FIN)                       (1)         111      (33)
Teamlog                   TLO        (19)         109       (3)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Cognis Deutschland
   GmbH & Co. KG                    (174)       3,003      606
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG        (8)         111      N.A.
Kaufring AG               KAUG       (19)         151      (51)
Maternus Kliniken AG      MAK.F       (3)         207      (30)
Nordsee AG                            (8)         195      (31)
Plambeck Neue
   Energien AG            PNE3        (4)         141       19
Primacom AG               PRIG      (268)       1,257   (1,048)
Rinol AG                  RLIG       (64)         104      (15)
Schaltbau Hold            SLTG       (23)         144       (7)
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
Vivanco Gruppe                       (55)         131      (31)


GREECE
------
Empedos S.A.              EMPED      (34)         175      (48)
Pouliadis Associates
   Corporation            POUL       (28)         124      (31)
Radio A.Korassidis        KORA      (101)         181     (139)
   Commercial

HUNGARY
-------
Exbus Asset Management
   Nyrt.                  EXBUS      (30)         118   (5,162)


ICELAND
-------
Decode Genetics Inc.      DCGN        (9)         229      141

ITALY
-----
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                      (152)         732     (322)
Gruppo Coin S.p.A.        GC        (150)       4,218      N.A.
I Viaggi del
   Ventaglio S.p.A.       VVE.MI     (61)         487      (58)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (18,419)       4,121  (12,481)
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)
Wind Telecomunicazioni
   S.p.A.                            (10)      12,698     (815)

NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Mostostal Zabrze          MECOF.PK    (6)         227     (366)
Vista Alegre Atlantis
   SGPS S.A.              VAAAE      (18)         193      (83)

ROMANIA
-------
Oltchim RM Valce          OLT        (45)         232     (321)


RUSSIA
------
OAO Samaraneftegas                  (332)         892  (16,942)
Zil Auto                            (185)         378  (11,107)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.                     (116)       1,283     (278)
Santana Motor S.A.                   (46)         223       41
Sniace S.A.                          (10)         134      (37)


SWITZERLAND
-----------
Wedins Skor
    Accessoarer AB                   (10)         139     (129)


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UKRAINE
-------
Dnepropetrovsk Metallurgical
   Plant Imeni Petrovsko              (2)         278     (509)
Dniprooblenergo                      (38)         478     (797)
Donetskoblenergo                    (166)         706   (1,320)


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
AEA Technology Plc        AAT.L      (24)         340      (50)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Anker Plc                 ANK.L      (22)         115       13
Atkins (WS) Plc           ATK        (63)       1,279       70
Bonded Coach
   Holiday Group Plc                  (6)         188      (44)
Blenheim Group                      (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Plc        BGY     (5,823)       4,921      434
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST       (39)         567       (5)
Danka Bus System          DNK.L     (108)         540       34
Dawson Holdings           DWN.L      (12)         158      (19)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music
   Industries Group       EMI     (1,264)       2,818     (253)
Euromoney Institutional
   Investor Plc           ERM.L      (88)         297      (56)
European Home Retail Plc  EHRL       (14)         111      (37)
Gartland Whalley                     (11)         145       (8)
Global Green Tech Group             (156)         408      (18)
Gondola Holdings Plc      GND.L     (239)         987     (396)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV         (4)         948     (175)
Homestyle Group Plc       HME        (29)         409     (124)
Imperial Chemical
   Industries Plc         ICI       (835)       8,881      (49)
Invensys PLC                      (1,031)       3,875      494
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L    (683)         492     (371)
Lambert Fenchurch Group               (1)       1,827        3

Lattice Group                     (1,290)      12,410   (1,228)
Leeds United              LDSUF.PK   (73)         144      (29)
M 2003 Plc                        (2,204)       7,205     (756)
Manchester City                      (17)         154      (21)
Micro Focus
   International Plc      MCRO.L     (14)         115      (11)
Mytravel Group            MT.L      (283)       1,159     (410)
Orange Plc                ORNGF     (594)       2,902        7
Park Group Plc            PKG.L       (5)         111      (13)
Partygaming Plc           PRTY       (46)         398     (110)
Premier Farner Plc        PFL        (33)         964      127
Premier Foods Plc         PFD.L      (31)       1,475       16
Probus Estates Plc        PBE.L      (28)         113      (49)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,134)       2,678      (45)
RHM Plc                   RHM       (586)       2,411       59
Saatchi & Saatchi         SSI       (119)         705      (41)
Seton Healthcare                     (11)         157        0
SFI Group                           (108)         178     (162)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,361)
UK Coal Plc               UKC        (25)         865      (62)
Virgin Mobile
   Holdings Plc           VMOB.L    (490)         155      (80)
Wincanton Plc             WIN        (66)       1,236      (71)



                           *********

Each Tuesday edition of the TCR contains a list of companies
with insolvent balance sheets whose shares trade higher than
US$3 per share in public markets.  At first glance, this list
may look like the definitive compilation of stocks that are
ideal to sell short.  Don't be fooled.  Assets, for example,
reported at historical cost net of depreciation may understate
the true value of a firm's assets.  A company may establish
reserves on its balance sheet for liabilities that may never
materialize.  The prices at which equity securities trade in
public market are determined by more than a balance sheet
solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

Each Friday's edition of the TCR includes a review about a book
of interest to trubled 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

Trubled 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.


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