TCREUR_Public/070109.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, January 9, 2007, Vol. 8, No. 6     

                            Headlines


A U S T R I A

A. BIEBER: Property Manager Declares Insufficient Assets
AINEDTER DORIS: Creditors' Meeting Slated for January 16
ASA VERSICHERUNGSMAKLER: Linz Court Orders Business Shutdown
BACKEREITECHNIK PREGESBAUER: Court Orders Business Shutdown
CHRISTIAN HEISSENBERGER: Vienna Court Orders Business Shutdown

HALLER KRANKENTRANSPORTE: Creditors' Meeting Slated for Jan. 17
KURT UNTERBERGER: Creditors' Meeting Slated for January 17
MK PROMOTION: Creditors' Meeting Slated for January 16
SUCCESS 2005: Fitch Affirms BB Rating on EUR8.5-Million Notes
TSI-TISCHLEREI: Creditors' Meeting Slated for January 16

W.M.P. LLC: Wiener Neustadt Court Orders Business Shutdown


B E L G I U M

ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing
GOODYEAR TIRE: To Discontinue Tire Production at Quebec Facility
GOODYEAR TIRE: Fitch Removes Low-B Ratings from Watch Negative


C Z E C H   R E P U B L I C

ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing


F R A N C E

ALCATEL-LUCENT: Sells Transport Unit to Thales SA for EUR1.7 Bln
ARROW ELECTRONICS: Highlights Business Achievements in 2006
PHILLIPS-VAN HEUSEN: Completes US$110-Mln Acquisition of Superba
POLYMER GROUP: Consolidating U.S. Manufacturing to Lower Costs


G E R M A N Y

AUTOTEILE ZINK: Claims Registration Ends January 16
DAIMLERCHRYSLER AG: Chrysler Arm to Double International Sales
DAIMLERCHRYSLER AG: Plans to Build Assembly Site in India
DIALOG2 GMBH: Claims Registration Ends January 17
DISC-SPEZIAL: Claims Registration Ends January 15

FOERSTER GMBH: Claims Registration Ends January 16
FREIE ALTEN: Claims Registration Ends January 16
GG EXKLUSIVHAUS: Creditors' Meeting Slated for January 17
HAUS & MEHR: Creditors' Meeting Slated for January 19
HI-FI-WERKSTATT: Claims Registration Ends January 15

HOGA GMBH: Claims Registration Ends January 16
KRIETER SPORT: Claims Registration Ends January 15
VOLKSWAGEN AG: Wolfgang Bernhard May Leave Post, Report Says
VOLKSWAGEN AG: Records 3.4 Million Vehicle Deliveries in 2006
WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1

WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating


H U N G A R Y

AES CORP: Increases Revolving Credit Facility to US$750 Million


I T A L Y

PARMALAT SPA: Supreme Court Confirms Marzano Law's Legitimacy
PARMALAT SPA: Shares Allocation Prompts EUR374,185 Capital Hike
SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8
SBARRO INC: MidOcean Partners Deal Cues S&P's Developing Watch


K A Z A K H S T A N

ARMAN LLP: Creditors Must File Claims by Feb. 13
DANKAMTU OJSC: Proof of Claim Deadline Slated for Feb. 13
ELENA LLP: Claims Filing Period Ends Feb. 13
ENERGOSERVICE CO: Claims Bar Date Slated for Feb. 13
ENERGOTECHSERVICE-2030 LLP: Court Begins Bankruptcy Proceedings

EURO SPEN: Claims Filing Period Ends Feb. 9
GLOBAL TRADING: Claims Registration Ends Feb. 9
IVANOV & K: Proof of Claim Deadline Slated for Feb. 13
KAMKOR LLP: Creditors Must File Claims by Feb. 13
SP ROSKAZHLEB: Claims Registration Ends Feb. 13


K Y R G Y Z S T A N

ALCAPS LLC: Creditors Meeting Scheduled for Jan. 12
CLEARING CENTRE: Creditors' Meeting Scheduled for Jan. 11
ORIOLE IVOLGA: Creditors' Meeting Slated for Jan. 12
VOSTOK LLC: Public Auction Slated for Jan. 12


L U X E M B O U R G

DANA CORP: Wants to Increase DIP Loan & Restructure Europe Biz
DANA CORP: Has Until Sept. 3 to File Restructuring Plan
DANA CORP: Seeks Court Approval to Amend DIP Credit Agreement
NORTEL NETWORKS: Closes US$320MM Unit Sale to Alcatel-Lucent


N E T H E R L A N D S

HERBALIFE LTD: Expects Higher Sales for 2006 Fourth Quarter
TEEKAY SHIPPING: Declares US$0.2375 Per Share Cash Dividend


N O R W A Y

AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio


R U S S I A

CHRYSOLITE CJSC: Creditors Must File Claims by Jan. 16
CHUVASH-ALCO OJSC: Creditors Must File Claims by Jan. 16
COMPANY-WEST OJSC: Creditors Must File Claims by Jan. 16
COMPUTER LAND: Creditors Must File Claims by Jan. 16
DAL-TRANS-STORY OJSC: Creditors Must File Claims by Jan. 16

ENEGRO-OIL CJSC: Creditors Must File Claims by Jan. 16
EURO-ASIATIC METALLURGIC: Creditors Must File Claims by Jan. 16
ISTOK CJSC: Court Starts Bankruptcy Supervision Procedure
MOSCOW-KUBAN-CHELYABINSK: Creditors Must File Claims by Jan. 16
NAMED AFTER: Kurgan Bankruptcy Hearing Slated for Feb. 28

PEAT-SERVICE CJSC: Creditors Must File Claims by Jan. 16
PRIONEZHSKIY WOOD: Creditors Must File Claims by Feb. 16
TRANSPORT ENTERPRISE: Bankruptcy Hearing Slated for March 29
VYSHNEVOLOTSKIY TEXTILE: Bankruptcy Hearing Slated for April 25


S W I T Z E R L A N D

BH OEKO-BAU: Zug Court Starts Bankruptcy Proceedings
CLIENT-SERVER EDV: Eglisau Court Starts Bankruptcy Proceedings
FIDELIUS JSC: Zug Court Suspends Bankruptcy Proceedings
GROUPE MOBILITE: Zug Court Suspends Bankruptcy Proceedings
MORTEZAWI BUILDING: Zug Court Starts Bankruptcy Proceedings

NOVELIS INC: Noteholders Swap US$1.4 Billion Notes for New Debt
OBERDORF-APOTHEKE BAAR: Zug Court Starts Bankruptcy Proceedings
RAUL RICARDO: Schlieren Court Starts Bankruptcy Proceedings
RIET-GARAGE JSC: Court Starts Bankruptcy Proceedings
VARIA HOLDING: Zug Court Starts Bankruptcy Proceedings

VXG VERMOGENSVERWALTUNG: Court Starts Bankruptcy Proceedings


U K R A I N E

KERCHLIFT: Claims Submission Deadline Set January 18
KOZACHOK OJSC: Creditors Must File Claims by January 18
KRASNOGORSKOE CJSC: Creditors Must File Claims by January 18
LAN CJSC: Creditors Must File Claims by January 18
NVP SOLAR: Creditors Must File Claims by January 18

TECO-BUD LLC: Creditors Must File Claims by January 18
TH DISKONTI: Creditors Must File Claims by January 18
YABLUNEVE CJSC: Creditors Must File Claims by January 18


U N I T E D   K I N G D O M

ADVANCED MARKETING: Organizational Meeting Scheduled for Friday
AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio
ARROW ELECTRONICS: Highlights Business Achievements in 2006
AVISTAR COMMS: Inks New US$10-Million Revolving Credit Facility
BALDOR ELECTRIC: S&P Assigns BB- Corporate Credit Rating

COLLINS & AIKMAN: Has Until March 14 to Decide on Becker Leases
COLLINS & AIKMAN: Can File ASC Inc. License Pact Under Seal
DURA AUTOMOTIVE: Taps Miller Buckfire as Investment Banker
DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent
DURA AUTOMOTIVE: Wants to Pay US$1.1-Mln Prepetition Tax Claims

FORD MOTOR: Strong Brazilian Ops Spurs Group to Invest US$1 Bln
INCO LTD: Completes Merger with Itabira Canada
INTELSAT LTD: Subsidiary to Redeem US$1 Billion Senior Notes
LAMBDA FINANCE: S&P Puts Low-B Ratings on Six Note Classes
LITTLE CHEF: Brings In PricewaterhouseCoopers as Administrator

REFCO INC: Court Allows Ch. 11 Trustee to Modify Claims vs. RCM
SEA CONTAINERS: Wants Until June 12 to File Reorganization Plan
SEA CONTAINERS: Wants Until May 13 to Decide on Leases
SEA CONTAINERS: Taps Towers Perrin as Compensation Consultants
SMARTIRE SYSTEMS: Oct. 31 Equity Deficit is US$34.8 Million

SOLUTIA INC: Can Sell Property to Shintech for US$7.1 Million
WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1
WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating

* Huron Consulting Group Agrees to Acquire Glass & Associates

* Large Companies with Insolvent Balance Sheets

                            *********

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


A. BIEBER: Property Manager Declares Insufficient Assets
--------------------------------------------------------
Dr. Andreas Alzinger, the court-appointed property manager for
LLC A. Bieber (FN 84492d), declared Nov. 16, 2006, that the
Debtor's property is insufficient to cover creditors' claim.

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

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 11, 2006 (Bankr. Case No. 5 S 5/06d).  

The property manager can be reached at:

         Dr. Andreas Alzinger
         Karntner Ring 12
         1010 Vienna, Austria
         Tel: 516 20
         Fax: 512 46 55
         E-mail: a.alzinger@baierlambert.com  


AINEDTER DORIS: Creditors' Meeting Slated for January 16
--------------------------------------------------------
Creditors owed money by LLC Ainedter Doris (FN 248858v) are
encouraged to attend the creditors' meeting at 9:15 a.m. on
Jan. 16 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 16, 2006 (Bankr. Case No. 4 S 162/06k).  Andrea Simma
serves as the court-appointed property manager of the bankrupt
estate.  Katharina Widhalm Budak represents Dr. Simma in the
bankruptcy proceedings.

The property manager can be reached at:

         Dr. Andrea Simma
         c/o Dr. Katharina Widhalm Budak
         Schulerstrasse 18
         1010 Vienna, Austria
         Tel: 513 67 03
         Fax: 513 67 03 33
         E-mail: ra_simma@aon.at  


ASA VERSICHERUNGSMAKLER: Linz Court Orders Business Shutdown
------------------------------------------------------------
The Land Court of Linz entered Nov. 14, 2006, an order shutting
down the business of LLC ASA Versicherungsmakler (FN 208475g).  

Court-appointed property manager Thomas Zeitler recommended the
business shutdown after determining that the continuing
operations would reduce the value of the estate.

The property manager can be reached at:

         Dr. Thomas Zeitler
         Eisenhandstrasse 15
         4020 Linz, Austria
         Tel: 77 55 44-0
         Fax: 77 55 44-10
         E-mail: insolvenz@bzp.at  

Headquartered in Traun, Austria, the Debtor declared bankruptcy
on Sept. 18, 2006 (Bankr. Case No. 38 S 42/06i).  


BACKEREITECHNIK PREGESBAUER: Court Orders Business Shutdown
-----------------------------------------------------------
The Land Court of Krems an der Donau entered Nov. 15, 2006, an
order shutting down the business of LLC Backereitechnik
Pregesbauer (FN 32727d).  

Court-appointed property manager Alois Autherith recommended the
business shutdown after determining that the continuing
operations would reduce the value of the estate.

The property manager can be reached at:

         Dr. Alois Autherith
         Utzstrasse 13
         3500 Krems, Austria
         Tel: 02732/83485
         Fax: 02732/83485-10
         E-mail: advoc.autham@netway.at  

Headquartered in Hadersdorf am Kamp, Austria, the Debtor
declared bankruptcy on Nov. 8, 2006 (Bankr. Case No. 9 S
58/06m).  


CHRISTIAN HEISSENBERGER: Vienna Court Orders Business Shutdown
--------------------------------------------------------------
The Trade Court of Vienna entered Nov. 15, 2006, an order
shutting down the business of LLC Christian Heissenberger (FN
117916g).  

Court-appointed property manager Susi Pariasek recommended the
business shutdown after determining that the continuing
operations would reduce the value of the estate.

The property manager can be reached at:

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

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 25, 2006 (Bankr. Case No. 4 S 153/06m).  Beate Holper
represents Dr. Pariasek in the bankruptcy proceedings.


HALLER KRANKENTRANSPORTE: Creditors' Meeting Slated for Jan. 17
---------------------------------------------------------------
Creditors owed money by LLC Haller Krankentransporte (FN
196130b) are encouraged to attend the creditors' meeting at
11:00 a.m. on Jan. 17 to consider the adoption of the rule by
revision.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 7, 2006 (Bankr. Case No. 4 S 99/06w).  Christian
Bachmann serves as the court-appointed property manager of the
bankrupt estate.  Eva-Maria Bachmann-Lang represents Dr.
Bachmann in the bankruptcy proceedings.

The property manager can be reached at:

         Dr. Christian Bachmann
         c/o Dr. Eva-Maria Bachmann-Lang
         Opernring 8
         1010 Vienna, Austria
         Tel: 512 87 01
         Fax: 513 82 50
         E-mail: bachmann.rae@aon.at  


KURT UNTERBERGER: Creditors' Meeting Slated for January 17
----------------------------------------------------------
Creditors owed money by LLC Kurt Unterberger Transport (FN
74090g) are encouraged to attend the creditors' meeting at 10:40
a.m. on Jan. 17 to consider the adoption of the rule by revision
and accountability.

The creditors' meeting will be held at:

         The Land Court of Leoben
         Hall 4
         1st Floor
         Leoben, Austria

Headquartered in Bruck an der Mur, Austria, the Debtor declared
bankruptcy on Nov. 6, 2006 (Bankr. Case No. 17 S 83/06h).  
Michael Zsizsik serves as the court-appointed property manager
of the bankrupt estate.  

The property manager can be reached at:

         Dr. Michael Zsizsik
         Hauptplatz 23
         8600 Bruck an der Mur, Austria
         Tel: 03862-51317
         Fax: 03862-53797
         E-mail: info@zsisik.at


MK PROMOTION: Creditors' Meeting Slated for January 16
------------------------------------------------------
Creditors owed money by LLC MK Promotion Handels (FN 257422m)
are encouraged to attend the creditors' meeting at 11:25 a.m. on
Jan. 16 to consider the adoption of the rule by revision and
final decision.

Martin Brandstetter, the court-appointed property manager
offered 3.1% recovery on creditors' proofs of claim.

The creditors' meeting will be held at:

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

Headquartered in Amstetten, Austria, the Debtor declared
bankruptcy on Nov. 14, 2005 (Bankr. Case No. 14 S 204/05y).  

The property manager can be reached at:

         Dr. Martin Brandstetter
         Hoffmann Center Bahnhofstrasse 2
         3300 Amstetten, Austria
         Tel: 07472/61122
         Fax: 07472/61122-4
         E-mail: office@ra-brandstetter.at


SUCCESS 2005: Fitch Affirms BB Rating on EUR8.5-Million Notes
-------------------------------------------------------------
Fitch Ratings affirmed Success 2005 B.V. notes:

   -- Class A EUR390.6 million (ISIN XS0230700493) at AAA;
   -- Class B EUR8.5 million (ISIN XS0230700816) at A;
   -- Class C EUR8.5 million (ISIN XS0230701202) at BBB; and
   -- Class D EUR8.5 million (ISIN XS0230701467) at BB.

The rating action follows a satisfactory review of the deal's
performance.  The overall performance of Success 2005 to date
compares favorably with Fitch's base case expectations set at
closing.  No triggers have been breached since issuance and
Fitch expects the stable performance to continue.

In addition to the above-mentioned considerations, Fitch
confirmed the rating levels for the respective classes of notes
in view of the proposed merger between Hypovereinsbank AG and
the UniCredit Group.


TSI-TISCHLEREI: Creditors' Meeting Slated for January 16
--------------------------------------------------------
Creditors owed money by LLC TSI-Tischlerei-Sanierung-Innenausbau
(FN 205022d) are encouraged to attend the creditors' meeting at
9:00 a.m. on Jan. 16 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting will be held at:

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

Headquartered in St. Poelten-Wagram, Austria, the Debtor
declared bankruptcy on Nov. 16, 2006 (Bankr. Case No. 14 S
187/06z).  Georg Thum serves as the court-appointed property
manager of the bankrupt estate.  

The property manager can be reached at:

         Dr. Georg Thum
         Josefstrasse 13
         3100 St. Poelten, Austria
         Tel: 02742/72 222
         Fax: 02742/72 222-10
         E-mail: kanzlei@tws-rae.at


W.M.P. LLC: Wiener Neustadt Court Orders Business Shutdown
----------------------------------------------------------
The Land Court of Wiener Neustadt entered Nov. 15, 2006, an
order shutting down the business of LLC W.M.P. (FN 261468m).  

Court-appointed property manager Viktor Igali-Igalffy
recommended the business shutdown after determining that the
continuing operations would reduce the value of the estate.

The property manager can be reached at:

         Dr. Viktor Igali-Igalffy
         Bruehlerstrasse 63
         2340 Moedling, Austria
         Tel: 02236/45240
         Fax: 02236/45240-22
         E-mail: vii@aon.at  

Headquartered in Laxenburg, Austria, the Debtor declared
bankruptcy on July 28, 2006 (Bankr. Case No. 10 S 66/06v).  


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


ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing
--------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the
proposed financing of the leveraged buyout of ARAMARK Corp.  
Moody's concurrently downgraded to B3 from B2 the rating on the
existing 5% senior notes due 2012 of ARAMARK Services, Inc., a
wholly owned subsidiary of ARAMARK Corp. (Old).  This concludes
a review for possible downgrade initiated on May 1, 2006.  The
rating outlook is stable.

Rating actions:

Ratings/(Assessments) assigned:

* ARAMARK (Newco):

   -- U$600-million secured revolving credit facility due 2013,
      (P)Ba3 (LGD3, 32%);

   -- US$3.660-billion secured term loan due 2014, (P)Ba3
      (LGD3, 32%);

   -- US$250-million secured synthetic letter of credit facility
      due 2013, (P)Ba3 (LGD3, 32%);

   -- US$1.7-billion senior unsecured notes due 2015, (P)B3  
      (LGD5, 80%);

   -- US$570-million senior subordinated notes due 2016, (P)B3
      (LGD6, 93%);

   -- Corporate family rating, (P)B1; and

   -- Probability of Default rating, B1.

These ratings/(assessments) are subject to Moody's review of
final documentation.

Ratings/(Assessments) downgraded:

* ARAMARK (Old):

   -- Corporate Family Rating, to B1 from Ba3;

   -- Probability of Default rating, to B1 from Ba3;

   -- Senior unsecured shelf registration, to (P)B3 (LGD6, 96%)
      from (P)B2 (LGD6, 96%); and

   -- Senior subordinated shelf registration, to (P)B3 (LGD 6,
      97%) from (P)B2 (LGD6, 97%).

Ratings/(Assessments) downgraded:

* ARAMARK Services:

   -- US$250-million senior unsecured notes due 2012, to B3 (LGD
      6, 96%) from B2 (LGD6, 96%);

   -- Senior unsecured shelf registration, to (P)B3 (LGD 6, 96%)
      from (P)B2 (LGD6, 96%); and

   -- Senior subordinated shelf registration, to (P)B3 (LGD 6,
      97%) from (P)B2 (LGD6, 97%).

Ratings affirmed:

* ARAMARK Services:

   -- US$300 million senior unsecured notes due 2007, Baa3;
   -- US$31 million senior unsecured notes due 2007, Baa3; and
   -- US$300 million senior unsecured notes due 2008, Baa3.

The review of the ratings was initiated on May 1, 2006,
following the announcement that the company had received a
proposal to be acquired in a leveraged buyout led by its
chairman and private equity investors GS Capital Partners, J.P.
Morgan Capital Partners, CCMP Capital Partners, Thomas H. Lee
Partners and Warburg Pincus LLC.  On Aug. 8, 2006, the board of
directors of ARAMARK approved a definitive merger agreement.  
The merger is valued at approximately US$8.6 billion, including
the assumption or repayment of approximately US$2.1 billion of
existing debt, and is expected to close in the first quarter of
2007.

The merger is expected to be financed with a US$3.66-billion
secured term loan, US$1.7-billion of senior unsecured notes,
US$570 million of senior subordinated notes and an equity
contribution of US$2.1 billion.  The company has received
commitments to increase the size of its receivable
securitization facility from US$225 million to US$250 million
and expects to have US$225 million outstanding at closing.

Moody's will withdraw the ratings on the senior notes due
2007-2008 upon the closing of the buyout since these notes are
expected to be redeemed by the company.  The existing corporate
family rating of ARAMARK (Old) will also be withdrawn upon the
closing of the buyout.  The senior notes due 2012 will remain
outstanding after the consummation of the buyout.  The downgrade
of the senior notes due 2012 reflects the structural
subordination of these notes to high levels of secured and
guaranteed debt in the post-acquisition capital structure.  The
provisional ratings of ARAMARK (Newco) will be converted into
definitive ratings upon the closing of the buyout.

The (P)B1 Corporate Family Rating is supported by the large size
of the company, significant geographic, customer and service
line diversification and good growth fundamentals.  Financial
strength will weaken significantly post-merger because of the
approximately US$4.5 billion in incremental debt needed to fund
the buyout.  The ratings are constrained by cash flow, leverage
and interest coverage metrics that are weak for the B1 rating
category.

The stable outlook reflects Moody's expectation of 2%-4% organic
revenue growth and modest EBIT margin improvement over the next
12-24 months.  Cash flow, leverage and interest coverage metrics
are expected to remain weak for the rating category during this
period.

ARAMARK Corp., headquartered in Philadelphia, Pennsylvania, is
one of the largest U.S. providers of food and support services
to a variety of end markets across the country, including
businesses, the educational and healthcare sectors, sports and
entertainment venues and correctional institutions. The company
also operates the second largest uniform and career apparel
rental services and sales business in the U.S., catering to a
diversified client portfolio through an extensive national
service network.  For the 12-month period ending Sept. 30, 2006,
revenues were approximately US$11.6 billion.


GOODYEAR TIRE: To Discontinue Tire Production at Quebec Facility
----------------------------------------------------------------
The Goodyear Tire & Rubber Co. plans to discontinue tire
production at its facility in Valleyfield, Quebec.  The company
expects to be substantially complete with a transition of the
Valleyfield facility to a materials mixing center by the end of
the second quarter of 2007.

There are around 1,000 hourly and salaried associates at the
facility.  The mixing center is expected to employ around 200
associates.

The reduction in both capacity and labor in Valleyfield is
related to the company's ongoing global strategy to reduce
excess high cost manufacturing capacity.

"In today's intensely competitive and increasingly global
business environment, we face some very difficult choices," said
Jon Rich, president of Goodyear's North American Tire business.  
"The decision to discontinue tire production at Valleyfield is
one of those necessary steps to make Goodyear more competitive.  
This decision does not reflect on the commitment or performance
of our Valleyfield associates."

The elimination of tire production in Valleyfield will reduce
Goodyear's excess high cost tire manufacturing capacity by an
additional 7 million units.  This brings total reductions under
Goodyear's four-point cost savings plan to 21 million units
compared with original targets of 15 to 20 million units by
2008.

This action will result in total charges estimated to be between
US$115 million and US$120 million (between US$165 and US$170
million after tax) for restructuring and accelerated
depreciation, of which an expected US$40 million to US$45
million is cash.  The charges associated with the intended
action are expected to be between US$70 million to US$75 million
(US$120 million to US$125 million after-tax) in the fourth
quarter of 2006 with the balance of the charges impacting 2007.  
When complete, the action is expected to generate annual cost
savings of approximately US$40 million.

This initiative also supports Goodyear's four-point cost savings
plan goal of reducing costs by between US$100 million and US$150
million. With the already announced closures of tire plants in:

   -- Washington, United Kingdom;
   -- Upper Hutt, New Zealand; and
   -- Tyler, Texas,

the Valleyfield announcement yields a total of US$125 million in
projected annual savings.

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

                        *    *    *

As reported in the Troubled Company Reporter-Europe on Jan. 4,
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit and other ratings on Goodyear Tire & Rubber Co. and
removed them from CreditWatch where they were placed with
negative implications on Oct. 16, 2006, as a result of the labor
dispute at several of the company's North American plants.


GOODYEAR TIRE: Fitch Removes Low-B Ratings from Watch Negative
--------------------------------------------------------------
Fitch Ratings affirmed ratings for The Goodyear Tire & Rubber
Company and removed the ratings from Rating Watch Negative.  The
ratings were placed on Rating Watch Negative on Oct. 18, 2006,
when the company announced a US$975 million drawdown of its bank
revolver.

Goodyear's debt and recovery ratings are:

   -- Issuer Default Rating B;

   -- US$1.5 billion first lien credit facility BB/RR1;

   -- US$1.2 billion second lien term loan BB/RR1;

   -- US$300 million third lien term loan B/RR4;

   -- US$650 million third lien senior secured notes
      B/RR4; and

   -- Senior unsecured debt CCC+/RR6.

Goodyear Dunlop Tires Europe B.V.

   -- EUR505 million European secured credit facilities      
      BB/RR1.

The Rating Outlook is Negative.

The removal of Goodyear's ratings from Rating Watch Negative
follows the ratification of a new union contract by the United
Steelworkers on Dec. 29, 2006.  The new contract runs for three
years and covers approximately 12,600 employees at 12 tire and
engineered products plants in the United States who had been on
strike since Oct. 5, 2006.  A separate contract covering workers
in Canada has also been approved.

The Negative Rating Outlook reflects concerns about weak
operating results and higher levels of debt associated with
costs of the strike and the new contract.  Prior to October when
Fitch placed the ratings on Negative Watch, the Rating Outlook
had been Stable.  During the strike, Goodyear borrowed US$975
million under its bank revolver and issued US$1 billion of
senior unsecured notes to support its liquidity and to replace
US$515 million of debt scheduled to mature by March.  On a pro
forma basis, proceeds from the new debt increased Goodyear's
cash balances from US$1.3 billion at Sept. 30, 2006, to
approximately US$2.7 billion.  This amount is adjusted to
exclude cash designated for the US$515 million of near-term debt
maturities and does not reflect the impact of strike-related
costs that Goodyear previously estimated at up to US$35 million
per week.

Goodyear's cash balances would be available to fund a US$1
billion Voluntary Employees' Beneficiary Association trust to be
implemented under the new master contract.  The VEBA trust will
be funded with US$700 million in cash and US$300 million in cash
or common stock at the company's option.  Goodyear will transfer
to the trust all USW retiree medical obligations, thereby
reducing its projected benefit obligation for post-retirement
benefits by more than half.  It expects the VEBA trust
arrangement to improve cash flows related to these benefits by
US$145 million annually.

Goodyear's operating results and cash flow have been pressured
by high raw material costs and by declining tire volumes in
North America.  The company is addressing these trends through
better pricing and by transitioning toward a more favorable
product mix.  Volume declines in original equipment tires
reflect lower vehicle production, while lower volumes for
consumer replacement tire volumes include the impact of weaker
demand as well as Goodyear's decision to exit certain segments
of the low-margin private label tire business.  The planned
closure of the Tyler Texas plant after 2007, along with three
other announced closures, should allow Goodyear to reach its
targeted capacity reduction for private label tires and support
its focus on higher-margin premium tires.

The Rating Outlook could eventually be changed to Stable once
Goodyear returns to normal operations and begins to realize
expected cost reductions.  Any upward revisions in the ratings
and Outlook over the longer term would also depend on the
company's ability to generate sufficient cash flow to reduce
debt and leverage and its ability to maintain its competitive
position.  Cash flow should benefit from Goodyear's expected
cost savings that were announced concurrently with the new labor
union agreement.  

However, ongoing cash requirements for capital expenditures and
pension contributions are substantial, and Goodyear's capacity
to reduce debt may be limited until market conditions improve
and Goodyear makes further progress in realizing projected cost
savings.  The company estimates that contributions to funded
pension plans will total US$550 million to US$575 million in
2006, US$550 million to US$600 million in 2007 and US$200
million to US$250 million in 2008.  These cash requirements will
be partly offset by a reduction in OPEB cash outflows estimated
by Goodyear at US$145 million annually.

Goodyear's ongoing cost reduction efforts will be facilitated by
its new agreement with the USW.  The company has scheduled a
conference call on Jan. 9 in which it will address specifics of
the new contract.  Under Goodyear's cost reduction plan
initiated in 2005, the company targeted cost savings in excess
of US$1 billion by 2008.  By comparison, the company estimates
the new labor contract will support savings, relative to costs
in 2006, of US$610 million through 2009.  The contract provides
for a lower wage structure for new hires and more flexibility in
making productivity improvements.  

These benefits should support stronger operating results, but
Goodyear still faces a highly competitive environment in which
its North American cost structure may leave it at a disadvantage
relative to its peers despite expected cost reductions.  The new
contract provides more job security for union workers and
provides for the closure of the Tyler, Texas plant at the end of
2007.  Goodyear will be required to make capital investments in
USW plants of at least US$550 million during the life of the
labor contract.


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


ARAMARK CORP: Moody's Puts Low-B Ratings on Proposed Financing
--------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the
proposed financing of the leveraged buyout of ARAMARK Corp.  
Moody's concurrently downgraded to B3 from B2 the rating on the
existing 5% senior notes due 2012 of ARAMARK Services, Inc., a
wholly owned subsidiary of ARAMARK Corp. (Old).  This concludes
a review for possible downgrade initiated on May 1, 2006.  The
rating outlook is stable.

Rating actions:

Ratings/(Assessments) assigned:

* ARAMARK (Newco):

   -- U$600-million secured revolving credit facility due 2013,
      (P)Ba3 (LGD3, 32%);

   -- US$3.660-billion secured term loan due 2014, (P)Ba3
      (LGD3, 32%);

   -- US$250-million secured synthetic letter of credit facility
      due 2013, (P)Ba3 (LGD3, 32%);

   -- US$1.7-billion senior unsecured notes due 2015, (P)B3  
      (LGD5, 80%);

   -- US$570-million senior subordinated notes due 2016, (P)B3
      (LGD6, 93%);

   -- Corporate family rating, (P)B1; and

   -- Probability of Default rating, B1.

These ratings/(assessments) are subject to Moody's review of
final documentation.

Ratings/(Assessments) downgraded:

* ARAMARK (Old):

   -- Corporate Family Rating, to B1 from Ba3;

   -- Probability of Default rating, to B1 from Ba3;

   -- Senior unsecured shelf registration, to (P)B3 (LGD6, 96%)
      from (P)B2 (LGD6, 96%); and

   -- Senior subordinated shelf registration, to (P)B3 (LGD 6,
      97%) from (P)B2 (LGD6, 97%).

Ratings/(Assessments) downgraded:

* ARAMARK Services:

   -- US$250-million senior unsecured notes due 2012, to B3 (LGD
      6, 96%) from B2 (LGD6, 96%);

   -- Senior unsecured shelf registration, to (P)B3 (LGD 6, 96%)
      from (P)B2 (LGD6, 96%); and

   -- Senior subordinated shelf registration, to (P)B3 (LGD 6,
      97%) from (P)B2 (LGD6, 97%).

Ratings affirmed:

* ARAMARK Services:

   -- US$300 million senior unsecured notes due 2007, Baa3;
   -- US$31 million senior unsecured notes due 2007, Baa3; and
   -- US$300 million senior unsecured notes due 2008, Baa3.

The review of the ratings was initiated on May 1, 2006,
following the announcement that the company had received a
proposal to be acquired in a leveraged buyout led by its
chairman and private equity investors GS Capital Partners, J.P.
Morgan Capital Partners, CCMP Capital Partners, Thomas H. Lee
Partners and Warburg Pincus LLC.  On Aug. 8, 2006, the board of
directors of ARAMARK approved a definitive merger agreement.  
The merger is valued at approximately US$8.6 billion, including
the assumption or repayment of approximately US$2.1 billion of
existing debt, and is expected to close in the first quarter of
2007.

The merger is expected to be financed with a US$3.66-billion
secured term loan, US$1.7-billion of senior unsecured notes,
US$570 million of senior subordinated notes and an equity
contribution of US$2.1 billion.  The company has received
commitments to increase the size of its receivable
securitization facility from US$225 million to US$250 million
and expects to have US$225 million outstanding at closing.

Moody's will withdraw the ratings on the senior notes due
2007-2008 upon the closing of the buyout since the company will
redeem these notes.  The existing corporate family rating of
ARAMARK (Old) will also be withdrawn upon the closing of the
buyout.  The senior notes due 2012 will remain outstanding after
the consummation of the buyout.  The downgrade of the senior
notes due 2012 reflects the structural subordination of these
notes to high levels of secured and guaranteed debt in the post-
acquisition capital structure.  The provisional ratings of
ARAMARK (Newco) will be converted into definitive ratings upon
the closing of the buyout.

The (P)B1 Corporate Family Rating is supported by the large size
of the company, significant geographic, customer and service
line diversification and good growth fundamentals.  Financial
strength will weaken significantly post-merger because of the
approximately US$4.5 billion in incremental debt needed to fund
the buyout.  The ratings are constrained by cash flow, leverage
and interest coverage metrics that are weak for the B1 rating
category.

The stable outlook reflects Moody's expectation of 2%-4% organic
revenue growth and modest EBIT margin improvement over the next
12-24 months.  Cash flow, leverage and interest coverage metrics
are expected to remain weak for the rating category during this
period.

ARAMARK Corp., headquartered in Philadelphia, Pennsylvania, is
one of the largest U.S. providers of food and support services
to a variety of end markets across the country, including
businesses, the educational and healthcare sectors, sports and
entertainment venues and correctional institutions. The company
also operates the second largest uniform and career apparel
rental services and sales business in the U.S., catering to a
diversified client portfolio through an extensive national
service network.  For the 12-month period ending Sept. 30, 2006,
revenues were approximately US$11.6 billion.


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


ALCATEL-LUCENT: Sells Transport Unit to Thales SA for EUR1.7 Bln
----------------------------------------------------------------
Shareholders of Thales S.A. approved its EUR1.7-billion
acquisition of Alcatel-Lucent's transport-and-security
operations, the Wall Street Journal reports.

Around 98% of the voting shares approved the acquisition, which
Denis Ranque, Thales Chief Executive, described as the biggest
the firm made in seven years.  Mr. Ranque added that transaction
would "stabilize" Thales's shareholding structure.

According to WSJ, the deal would see Alcatel-Lucent raise its
9.5% stake in Thales to 21%, while the French government's 31%
holding will be diluted to 27.3%, and Dassault's 6% stake
diluted to 5%.  The transaction would also see Dassault drop out
of the shareholder pact; Thales' two biggest shareholders --
French state and Alcatel-Lucent -- will create a new pact, which
outlines the conditions under which the two main shareholders
can sell their shares.

Meanwhile, European Commission commenced an in-depth probe into
Thales' plans to acquire Alcatel-Lucent and Finmeccanica
S.p.A.'s satellite and space operations, WSJ reports.  The
regulator would look into whether a possible deal would severely
hamper competition in the European market for telecommunications
satellites.  The Commission will decide in mid-April whether to
give approve the deal.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that  
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  With 79,000 employees and operations in more than 130
countries, including Brazil, Alcatel-Lucent is a local partner
with global reach.  Through its operations in fixed, mobile and
converged broadband networking, Internet protocol (IP)
technologies, applications, and services, Alcatel-Lucent offers
the end-to-end solutions that enable communications services for
people at home, at work and on the move.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                        *    *    *

As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


ARROW ELECTRONICS: Highlights Business Achievements in 2006
-----------------------------------------------------------
Arrow Electronics marks 2006 a year of significant progress for
the company.  This is evident through the achievements and
milestones in all aspects of the business worldwide.  Arrow
expanded geographically and in key vertical markets.

The 2006 timeline highlights some of those achievements:

* January

   -- named "Distributor of the Year" in Denmark by the Elisa
      Group, a consortium of leading Danish electronics
      Manufacturers.

* February

   -- elected Richard S. Hill to the board of directors;

   -- named one of Fortune's Most Admired Companies for the
      sixth consecutive year;

   -- reported strong fourth quarter results and annual sales at
      highest levels in five years;

   -- acquired SKYDATA, a value-added distributor of data
      storage solutions in Canada; and

   -- created a new industry lighting group to support the
      growing end-user market for lighting technology solutions.

* March

   -- dedicated the new lobby at corporate headquarters to the
      victims of the 1980 fire; and

   -- named Peter T. Kong as president, Arrow Asia/Pacific.

* April

   -- reported year-over-year net income growth of 43 percent
      and the 13th consecutive quarter of year-over-year sales
      growth;

   -- created a software group in enterprise computing to
      support new market opportunities.

* May

   -- elected William E. Mitchell as chairman of the board and
      Daniel W. Duval became lead director;

   -- formed a new industrial group dedicated to serving the
      needs of manufacturers in the industrial market.

* June

   -- named one of the "Most Preferred International
      Distributors" in China in Electronics Supply &
      Manufacturing - China (ESMC) customer survey.

* July

   -- reported net income advanced 59 percent over prior year;
      record second quarter sales and earnings in excess of
      expectations;

   -- opened new office in Pune, India, one of the fastest
      growing markets in Asia Pacific.

* August

   -- launched Voice of the Supplier workshop in North America

   -- Received top ranking in annual ESMC Distributor Customer
      Preference Study in China;

* September

   -- ranked as "Top Specialty Distributor" in Computer Reseller
      News (CRN) sourcing study in North America;

   -- named Michael J. Long as president, Arrow Global
      Components;

   -- named Philippe Combes as president, Arrow EMEASA and
      Germano Fanelli as chairman, Arrow EMEASA;

   -- named Vincent Melvin as chief information officer.

* October

   -- recognized by InformationWeek as one of the most
      innovative companies of information technology;

   -- reported net income soared 35 percent.

* November

   -- acquired Alternative Technology, a U.S. distributor of
      enterprise computing solutions

   -- named number one "Most Sourced Specialty Distributor" by
      CRN;

   -- ranked first by customers in both Asia and China in EDN's
      Worldwide Semiconductor and IC Brand Study;

* December

   -- acquired the storage and security distribution business of
      InTechnology plc. in the United Kingdom;

   -- appointed M. Catherine Morris and Kevin Gilroy to the
      Arrow Enterprise Computing Solutions (ECS) Office of the
      President

   -- contributed US$125,000 to 11 nonprofit organizations to
      help bring holiday cheer to local communities

                     About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- provides products, services and  
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.   

In Europe, the company operates in France, Spain, Portugal,
Denmark, Estonia, Finland, Great Britain, Ireland, Latvia,
Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland,
Belgium, the Netherlands and the U.K.

                          *     *     *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The Company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.   The rating
outlook is positive.


PHILLIPS-VAN HEUSEN: Completes US$110-Mln Acquisition of Superba
----------------------------------------------------------------
Phillips-Van Heusen Corp. has completed the acquisition of
substantially all of the assets of privately held Superba, Inc.

As reported in the Troubled Company Reporter on Oct. 16, 2006,
the company entered into a definitive agreement to acquire
substantially all of the assets of Superba for US$110 million,
subject to adjustment, plus an earn-out over a three-year period
based on the earnings of the acquired business for each of the
first three years after the closing, with a maximum value of
US$70 million.

Superba, Inc., manufactures and distributes neckwear in the
United States and Canada.

The acquired business, which includes neckwear licenses for
designer and brand names, such as Arrow, DKNY, Tommy Hilfiger,
Nautica, Perry Ellis, Ted Baker, Ike Behar, Michael Kors, JOE
Joseph Abboud, Original Penguin, Jones New York and Hart
Schaffner Marx, will be operated through the newly formed PVH
Neckwear Group.  

The company disclosed that it has also entered into an agreement
with Mallory & Church LLC pursuant to which PVH and Mallory have
agreed to the early termination of the neckwear licenses that
Mallory holds for the company's IZOD and Calvin Klein brands.

The PVH Neckwear Group will assume control of the Calvin Klein
and IZOD neckwear businesses and the neckwear offerings will
continue to be distributed through better department stores and
specialty stores.  The arrangement is expected to become
effective in early February.  

Commenting on the transactions, Emanuel Chirico, chief executive
officer, stated "We are excited with the opportunity the Superba
acquisition presents.  Neckwear is, obviously, complementary to
our heritage business in dress shirts and Superba has followed
the same multiple brand, multiple channel, and multiple price
point strategy that we have followed.  We believe that the
synergy created by coupling the leading neckwear and dress shirt
businesses will provide us with additional opportunity to grow
both businesses."

Mr. Chirico added, "We are also pleased that we have been able
to provide for the early return of the Calvin Klein and IZOD
neckwear businesses.  This will provide us with an immediate
opportunity to expand our newly acquired neckwear business and
enhance the growth we expect to see from it."

Phillips-Van Heusen Corporation (NYSE:PVH) --
http://www.pvh.com/-- owns and markets the Calvin Klein brand  
worldwide.  It is a shirt company that markets a variety of
goods under its own brands: Van Heusen, Calvin Klein, IZOD,
Arrow, Bass and G.H. Bass & Co., Geoffrey Beene, Kenneth Cole
New York, Reaction Kenneth Cole, BCBG Max Azria, BCBG Attitude,
Sean John, MICHAEL by Michael Kors, Chaps, and Donald J. Trump
Signature.

                           *     *     *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Moody's Investors Service upgraded Phillips Van Heusen
Corporation's corporate family rating to Ba2 from Ba3.  

The company's senior secured notes were upgraded to Baa3 from
Ba1 and the company's senior unsecured notes were upgraded to
Ba3 from B1.  The company's probability of default rating was
also upgraded to Ba2 from Ba3.


POLYMER GROUP: Consolidating U.S. Manufacturing to Lower Costs
--------------------------------------------------------------
Polymer Group Inc. will consolidate manufacturing in the U.S. to
lower its operating costs and improve overall performance.

The company will close its Rogers, Arkansas and Gainesville,
Georgia plants, and transfer portions of the business to other
locations in North America and Asia.  Operations at the two
plants are expected to be phased out by mid-2007 and the company
will provide the affected workers with severance and
displacement assistance.

"This consolidation plan is necessary for Polymer Group to
maintain its competitiveness in the U.S. markets. It is
consistent with our strategy to continuously streamline
operations and represents our ongoing commitment to improving
our cost position," said William B. Hewitt, Polymer Group's
interim chief executive officer.  "The steps we are taking will
result in an improved cost structure and make Polymer Group a
stronger company going forward.  We deeply regret the impact
these difficult actions will have on our employees but they are
necessary to achieve our profit targets in an increasingly
competitive global market."

                   Rogers, Arkansas Plant

Polymer Group will relocate thermal and adhesive bonding
business from Rogers to Landisville, New Jersey, to achieve
synergies and reduce overhead costs.  The company will move
manufacturing of spunlace fabrics used in wipes from Rogers to
its plants in North Little Rock, Arkansas, and Benson, North
Carolina.  The materials produced on these lines are used in
hygiene, industrial and wiping applications.

"The Rogers and Landisville plants have similar manufacturing
operations and equipment," Hewitt said. "By consolidating them,
we will be able to more efficiently utilize these assets at one
location and improve overall profitability."

Originally started up by Scott Paper Co. in 1974, Polymer Group
purchased the plant in 1992.  The Rogers plant has approximately
120 workers.

                 Gainesville, Georgia Plant

Consistent with the previously announced installation of a
finishing line in Suzhou, China, Polymer Group will relocate the
finishing of medical fabrics from Gainesville to the new plant
in China that is strategically located near its customers'
converting operations.  These fabrics are used in surgical gowns
and drapes, and wound care.

Manufacturing of Polymer Group's proprietary Reticulon apertured
film products used in feminine sanitary napkins will be
transferred from Gainesville to Polymer Group's Bonlam plant in
San Luis Potosi, Mexico.  This move also will enable Polymer
Group to expand capabilities in Mexico to produce laminated
cloth-like back sheet for diapers.

The Gainesville plant was originally part of Chicopee
Manufacturing Co. and was constructed in 1956.  Polymer Group
purchased the plant in 1995 when it acquired the Chicopee non-
woven business from Johnson & Johnson.  Currently, approximately
50 workers are employed at the plant.

After the consolidations are complete, Polymer Group will
continue to operate five non-woven plants in the U.S. Other non-
woven locations include:

   -- Benson and Mooresville, North Carolina;
   -- Landisville, New Jersey;
   -- North Little Rock, Arkansas; and
   -- Waynesboro, Virginia.

As a result of the decision to consolidate the operations, the
company estimates that it will recognize cash restructuring
charges of approximately US$5.5 million to US$6.0 million and
the non-cash write-off of certain assets of approximately US$1.4
million.  The consolidation efforts, which are expected to be
complete by the end of the third quarter of fiscal 2007, are
expected to result in improved profitability and a more
efficient manufacturing cost structure, with cash fixed costs
expected to be reduced by approximately US$4.0 million to US$6.0
million on an annualized basis.  Additionally, the Company
anticipates proceeds of approximately US$4.5 million to US$6.0
million from the sale of idled facilities and equipment.

Polymer Group, Inc., -- http://www.polymergroupinc.com/--  
(OTC Bulletin Board: POLGA/POLGB) develops, manufactures and
markets engineered materials.  The company operates 22
manufacturing facilities in 10 countries throughout the world.
The company has manufacturing offices in Argentina, China and
France, among others.

                          *     *     *

As reported in the TCR-Europe on Nov. 24, 2006, Standard &
Poor's Ratings Services revised its outlook on Polymer Group
Inc. to negative from stable.  All ratings, including the 'BB-'
corporate credit rating, were affirmed.

The outlook revision follows several quarters of weaker-than-
expected performance and somewhat higher-than-expected debt
primarily due to raw material cost escalation and some product
mix shifts.  Also contributing to the disappointing results were
several one-time items such as costs related to technical
problems associated with new equipment, an acquisition that was
not consummated, the closing of manufacturing capacity, and
moving the company's headquarters.


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


AUTOTEILE ZINK: Claims Registration Ends January 16
---------------------------------------------------
Creditors of Autoteile Zink GmbH have until Jan. 16 to register
their claims with court-appointed provisional administrator
Thorsten Snyders.

Creditors and other interested parties are encouraged to attend
the meeting at 2:20 p.m. on Jan. 31, 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 Lingen (Ems)
         Hall Z 17
         New Building
         Burgstrasse 28
         49808 Lingen (Ems),
         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 Lingen (Ems) opened bankruptcy proceedings
against Autoteile Zink GmbH on Nov. 9, 2006.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Autoteile Zink GmbH
         Hundesand 3
         49809 Lingen, Germany

         Attn: Hubert Hemme, Manager
         Schwedenschanze 78
         49808 Lingen (Ems)
         Germany

The administrator can be contacted at:

         Thorsten Snyders
         Heideweg 72
         48529 Nordhorn, Germany
         Tel: 05921/7139145
         Fax: 05921/7139146
         E-mail: Snyders@raehp.de


DAIMLERCHRYSLER AG: Chrysler Arm to Double International Sales
--------------------------------------------------------------
Chrysler Group, DaimlerChrysler A.G.'s U.S. unit, aims to double
its international sales in the next five years, following a
decline in its U.S. results in 2006, Bloomberg News reports.

Chrysler CEO Tom LaSorda said the unit wants to be less
dependent on its U.S. sales, which fell seven percent in 2006.  
The U.S. accounts for around 80% of Chrysler sales.

Mr. LaSorda said the company would focus on increasing sales
outside North America adding vehicle features like right-hand
drive and diesel engines.  The company sold 200,000 vehicles
outside North America in 2006.

Chrysler's plans also include:

   -- adding a Taiwan-built cargo van in Mexico; and
   -- manufacturing Sebring sedans in China for domestic sale.

In a TCR-Europe report on Jan. 5, Chrysler has signed a deal
with Chery Automobile Co. under which the Chinese automaker will
produce small cars known in the industry as "B-cars" to be
distributed worldwide bearing the Chrysler brand.

DaimlerChrysler has decided to partner with Chery Auto because
higher costs such as labor and healthcare make it difficult for
the company to build small cars profitably in the U.S.,
Bloomberg News reports.

"Their plan is realistic," John Novak, an analyst at Morningstar
Inc. in Chicago, told Bloomberg.  "I think they are a little
late to the game, but they can catch up."

                      About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

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

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

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

                           Outlook

As reported in the TCR-Europe on Oct. 30, 2006, DaimlerChrysler
said it expects a slight decrease in worldwide demand for
automobiles in the fourth quarter and thus slower market growth
than in Q4 2005.  For full-year 2006, the company anticipates
market growth of around 3%.  It expects unit sales in 2006 to be
lower than in the previous year (4.8 million units).

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


DAIMLERCHRYSLER AG: Plans to Build Assembly Site in India
---------------------------------------------------------
DaimlerChrysler AG will construct a new assembly site in Chakan,
India to cater to the increasing demand for cars, Bloomberg News
reports.

The company will shift the production of its Mercedes-Benz
C-Class, E-Class and S-Class brand to its Indian site.  The site
will have annual production capacity of 5,000 cars, double
DaimlerChrysler's sales figure in 2006, Bloomberg News relays.

"There is room for more cars from our range, but we will decide
on that in due course," Thomas Weber, DaimlerChrysler's Research
and Development chief, said.  "We are confident of the potential
that the Indian market can generate."

DaimlerChrysler joins Volkswagen AG, General Motors Corp. and
other automakers in building production sites in India, where
expanding economy and rising incomes spurred growing demand for
vehicles, Bloomberg News adds.

Carmakers announced in 2006 a combined US$5 billion of
investments in new factories in India by 2012.

                      About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

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

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

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

                           Outlook

As reported in the TCR-Europe on Oct. 30, 2006, DaimlerChrysler
said it expects a slight decrease in worldwide demand for
automobiles in the fourth quarter and thus slower market growth
than in Q4 2005.  For full-year 2006, the company anticipates
market growth of around 3%.  It expects unit sales in 2006 to be
lower than in the previous year (4.8 million units).

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


DIALOG2 GMBH: Claims Registration Ends January 17
-------------------------------------------------
Creditors of Dialog2 GmbH have until Jan. 17 to register their
claims with court-appointed provisional administrator Ulrike
Hoge-Peters.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Feb. 7, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Offenbach am Main
         Hall 166N
         1st Floor
         Emperor Route 16-18 (Building K18)
         63065 Offenbach am Main, 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 Offenbach am Main opened bankruptcy
proceedings against Dialog2 GmbH on Nov. 13, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Dialog2 GmbH
         Attn: Harald Behr, Manager
         Waldstr. 23 A1
         63128 Dietzenbach, Germany

The administrator can be contacted at:

         Ulrike Hoge-Peters
         Cronstettenstr. 30
         60322 Frankfurt/Main
         Germany
         Tel: 069/9591100
         Fax: 069/95911012


DISC-SPEZIAL: Claims Registration Ends January 15
-------------------------------------------------
Creditors of Disc-Spezial Digitale Datentrager GmbH have until
Jan. 15 to register their claims with court-appointed
provisional administrator Bernd Reuss.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 a.m. on Jan. 30, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hanau
         Area 204
         Branch Office Insolvency Court
         Engelhardstrasse 21
         63450 Hanau, 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 Hanau opened bankruptcy proceedings
against Disc-Spezial Digitale Datentrager GmbH on Nov. 10, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Disc-Spezial Digitale Datentrager GmbH
         Robert-Bosch-Str. 5
         61130 Nidderau, Germany

         Attn: Jutta Born, Manager
         Gartenstr. 22
         61197 Florstadt, Germany

The administrator can be contacted at:

         Bernd Reuss
         Mainzer-Tor-Anlage 33
         61169 Friedberg/H., Germany
         Tel: 06031/797-0
         Fax: 06031/797100


FOERSTER GMBH: Claims Registration Ends January 16
--------------------------------------------------
Creditors of Foerster GmbH have until Jan. 16 to register their
claims with court-appointed provisional administrator Andreas
Kienast.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Jan. 16, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Magdeburg
         Hall D
         Insolvency Department
         Liebknechtstrasse 65-91
         39110 Magdeburg, 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 Magdeburg opened bankruptcy proceedings
against Foerster GmbH on Nov. 10, 2006.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Foerster GmbH
         Attn: Dirk Foerster, Manager
         Hauptstr. 92c
         06507 Friedrichsbrunn, Germany

The administrator can be contacted at:

         Andreas Kienast
         Lennestr. 10
         39112 Magdeburg, Germany
         Tel: 0391/5973322
         Fax: 0391/5973333


FREIE ALTEN: Claims Registration Ends January 16
------------------------------------------------
Creditors of Freie Alten- und Krankenpflege e.V. have until
Jan. 16 to register their claims with court-appointed
provisional administrator Jana Dettmer.

Creditors and other interested parties are encouraged to attend
the meeting at 11:10 a.m. on Feb. 6, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

The District Court of Cologne opened bankruptcy proceedings
against Freie Alten- und Krankenpflege e.V. on Nov. 9, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Freie Alten- und Krankenpflege e.V.
         Pingsdorfer Road 52-54
         50321 Bruehl, Germany

         Attn: Edda-Heidrun Gatzweiler, Manager
         Heideweg 8
         53332 Bornheim, Germany

         Paul Kaluza, Manager
         Wilhelmstrasse 3
         50321 Bruehl, Germany

The administrator can be contacted at:

         Jana Dettmer
         Weyerstrasse 54
         50676 Cologne, Germany
         

GG EXKLUSIVHAUS: Creditors' Meeting Slated for January 17
---------------------------------------------------------
The court-appointed provisional administrator for GG
Exklusivhaus GmbH & Co. KG, Joerg Nerlich, will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 10:00 a.m. on Jan. 17.

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

         The District Court of Betzdorf
         Hall 109
         1st Floor
         Friedrichstrasse 17
         57518 Betzdorf, Germany

The Court will also verify the claims set out in the
administrator's report at 10:00 a.m. on Feb. 28, at the same
venue.

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

The District Court of Betzdorf opened bankruptcy proceedings
against GG Exklusivhaus GmbH & Co. KG on Oct. 30, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         GG Exklusivhaus GmbH & Co. KG
         Attn: Gerd Goldmann, Manager
         Knappenstrasse 24
         57581 Katzwinkel, Germany

The administrator can be reached at:

         Dr. Joerg Nerlich
         Hauptmarkt 23
         57076 Siegen, Germany
         Tel: 0271/2319010
         Fax: 0271/2319014


HAUS & MEHR: Creditors' Meeting Slated for January 19
-----------------------------------------------------
The court-appointed provisional administrator for haus & mehr
GmbH, Knut Rebholz, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at
10:30 a.m. on Jan. 19.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:10 a.m. on April 20 at the same
venue.

Creditors have until Feb. 19 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against haus & mehr GmbH on Nov. 3, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         haus & mehr GmbH
         Herzbergstr. 55
         10365 Berlin, Germany

The administrator can be reached at:

         Knut Rebholz
         Cicerostr. 22
         10709 Berlin, Germany


HI-FI-WERKSTATT: Claims Registration Ends January 15
----------------------------------------------------
Creditors of Hi-fi-Werkstatt Armin Kahn & Partner GmbH have
until Jan. 15, to register their claims with court-appointed
provisional administrator Juergen Spliedt.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on March 16, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Charlottenburg
         II. Stock Hall 218
         District Court Place 1
         14057 Berlin, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Charlottenburg opened bankruptcy
proceedings against Hi-fi-Werkstatt Armin Kahn & Partner GmbH on
Sept. 28, 2006.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be contacted at:

         Hi-fi-Werkstatt Armin Kahn & Partner GmbH
         Colditzstr. 34
         12099 Berlin, Germany

The administrator can be contacted at:

         Dr. Juergen Spliedt
         Uhlandstr. 165/166
         10719 Berlin, Germany
         

HOGA GMBH: Claims Registration Ends January 16
----------------------------------------------
Creditors of HOGA GmbH have until Jan. 16 to register their
claims with court-appointed provisional administrator Ralph
Schmid.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Feb. 7, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Room 106 C
         Gerichtsstr. 2-6
         48149 Muenster, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Muenster opened bankruptcy proceedings
against HOGA GmbH on Nov. 16, 2006.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         HOGA GmbH
         Neutorstr. 5
         48653 Coesfeld, Germany

         Attn: Klaus Doennebrink, Manager
         Brinkstr. 23
         48249 Duelmen, Germany

The administrator can be contacted at:

         Ralph Schmid
         Duelmener Str. 92
         48653 Coesfeld, Germany


KRIETER SPORT: Claims Registration Ends January 15
--------------------------------------------------
Creditors of Krieter Sport & Business GmbH have until Jan. 15 to
register their claims with court-appointed provisional
administrator Jens-Soeren Schroeder.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 29, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Kiel
         Hall 17
         Kiel, 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 Kiel opened bankruptcy proceedings against
Krieter Sport & Business GmbH on Nov. 10, 2006.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Krieter Sport & Business GmbH
         Attn: Michael Krieter, Manager
         Dorfstrasse 12a
         24113 Molfsee, Germany

The administrator can be contacted at:

         Jens-Soeren Schroeder
         Raboisen 38
         20095 Hamburg, Germany
         Tel: 040/334460


VOLKSWAGEN AG: Wolfgang Bernhard May Leave Post, Report Says
------------------------------------------------------------
Volkswagen AG brand head Wolfgang Bernhard is set to leave the
company over a planned management restructuring backed by the
automaker's largest shareholder, chairman Ferdinand Piech,
Stephen Power writes for The Wall Street Journal.

According to Andrew McCathie of Playfuls.com, the company's new
CEO Martin Winterkorn, who previously headed VW's Audi unit,
will unveil details of the major reorganization on Jan. 10.  A
full board meeting on Jan. 11 will follow the committee meeting.

WSJ reports that Mr. Bernhard's move is the latest sign of high-
level friction at Volkswagen following last month's resignation
of CEO Bernd Pischetsrieder.  

A new position for Mr. Bernhard was proposed by the company's
board of directors and limits the executive's work to overseeing
the company's production and not the crucial development of new
models and sales, according to published reports.

However, according to people familiar with the matter, Mr.
Bernhard turned down the offer, stressing that it violates the
terms of his contract, which runs until 2010.

"It's fairly clear he won't stay," a person familiar with Mr.
Bernhard's thinking told WSJ.  "He's said 'if my job is changed,
I've got to leave.'"

Mr. Bernhard played an important role in pushing forward the
company's tight cost cutting measures, including the campaign to
slash its German workforce by 20,000 in the face of rough
competition.

He was also behind the company's decision last year to pull out
from the U.S. market the US$68,00 VW Phaeton sedan following
disappointing sales, a move that bothered Mr. Piech, who
defended the Phaeton's development when he was CEO between 1993
and 2002.

Mr. Piech, whose grandfather Ferdinand Porsche founded Porsche
AG, became VW's largest shareholder when the sports-car maker
decided last year to purchase more than EUR3 billion Volkswagen
shares.

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

                        *    *    *

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

In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


VOLKSWAGEN AG: Records 3.4 Million Vehicle Deliveries in 2006
-------------------------------------------------------------
Volkswagen passenger cars brand recorded a total of 3.395
million vehicle deliveries in 2006, representing a 10% increase
over 2006.

"Growth was noticeably stronger for the Volkswagen brand than
for the world market in 2006.  Key markets recorded quite
significant growth in some cases.  With these record figures,
Volkswagen has strengthened its position as one of world's
largest automakers," Dr. Wolfgang Bernhard, chairman of the
Volkswagen brand board of management, commented.

Dr. Bernhard added that growth had been particularly strong for
Volkswagen in Germany and Europe.  "Although Germany remains a
hard-fought market characterized by high discounts from
competitors, we have nevertheless seen a noticeable rise in
sales and have increased our market share from 18.6 to 19.9
percent."  

He emphasized that Volkswagen had not bought its way to growth.
"We have combined our attractive models with product offerings
from Volkswagen Bank and Volkswagen Service which bring genuine
added value.  These packages have convinced our customers."  He
said Volkswagen would be continuing with this approach this
year.  "We focus on customer benefit, not on discounts."

"We have not only defended our market leadership in Europe, but
have further extended our lead," Dr. Bernhard commented.

In 2006, Volkswagen delivered 1.525 million vehicles in Western
Europe, including Germany, 5.6 percent more than in 2005.  The
market share rose from 10.3 to 11.0 percent.

Developments in Eastern Europe were also positive for
Volkswagen.  In Russia, 19,200 Volkswagen brand vehicles were
sold, 59.6% up on the figure for 2005.

In China, including Hong Kong, Volkswagen sold 625,000 vehicles,
a year-on-year increase of 22.3 percent. "We made the turnaround
in China in 2006," Dr. Bernhard expressed.

In the Asia/Pacific region, excluding China, deliveries rose by
11.5 percent to 88,000 units.

On the U.S. market, Volkswagen increased deliveries to customers
by 4.9 percent to 235,000 vehicles.  2006 sales in South America
and South Africa, 571,000 vehicles were delivered, representing
a year-on-year increase of 15.0 percent.  

In Brazil in particular, Volkswagen recorded a 15.2 percent
increase, with sales rising to 373,000 units.

For 2007, Dr. Michael Kern, the Volkswagen brand board member
for sales and marketing, does not expect any noticeable easing
of the competitive situation on the major automobile markets:

"Stagnation or only slight growth can be expected for both
Germany and Western Europe.  It also looks as if the discount
battles in the U.S.A. are set to continue," Dr. Kern disclosed.

Dr. Kern added that Volkswagen was, however, assuming continued
strong growth on the Chinese market. "We will be doing our
utmost to benefit as extensively as possible from this trend."

Dynamic development in Russia would also continue.  He added
that Volkswagen expected additional positive momentum when
production at the new plant in Kaluga starts in the second half
of the year.

Volkswagen would also begin selling locally built vehicles in
India as early as mid-2007 and anticipated proactive involvement
in dynamic market development there, too.

Dr. Bernhard emphasized that Volkswagen would be further
enhancing quality, customer satisfaction and service orientation
in 2007.  "We already made significant progress in customer
satisfaction last year with improved vehicle quality and
innovative service concepts, and will be continuing along this
path with uncompromising determination."

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

                        *    *    *

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

In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1
--------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the proposed
US$1.2 billion senior secured term loan facility of Weight
Watchers International, Inc. and affirmed existing credit
ratings.

The rating outlook remains stable.

The proceeds from the $1.2 billion credit facility are expected
to be used to fund share purchases, refinance the indebtedness
of its subsidiary, WeightWatchers.com, and pay related fees and
expenses.  The existing $850 million credit facility is expected
to remain outstanding at closing.

On Dec. 18, 2006, Weight Watchers reported that it commenced a
self-tender offer for up to 8.3 million shares of its common
stock and also entered into an agreement with Artal Holdings Sp.
z o.o., its majority shareholder.  The agreement with Artal
provides that Weight Watchers will purchase from Artal shares of
its common stock so that Artal's percentage ownership in Weight
Watchers after the tender offer will be substantially equal to
its current level of approximately 55.2%.

Prior to its recent report, Weight Watchers' credit metrics were
strong for the Ba1 rating category, but reflected uncertainty
related to the firm's target capital structure and expected
financial policies.

Although the reported transaction will result in pro forma
leverage and cash flow metrics that are weak for the rating
category, these metrics are expected to improve in 2007.

Moody's expects profitability in 2007 to benefit from new
business initiatives and expects the company to utilize internal
cash generation to repay a portion of the transaction
indebtedness.  The Ba1 corporate family rating continues to
reflect high levels of pretax income, impressive profit margins
and solid geographic diversification.  The ratings are
constrained by reliance on a single brand and potential threats
from new competitors and products.

Moody's took these rating actions for Weight Watchers:

   -- Assigned $700 million add-on senior secured term loan A
      facility due 2013, Ba1, LGD3, 34%;

   -- Assigned $500 million add-on senior secured term loan B
      facility due 2014, Ba1, LGD3, 34%;

   -- Affirmed $500 million senior secured revolving credit
      facility due 2011, Ba1, LGD3, 34%;

   -- Affirmed $350 million senior secured term loan A facility
      due 2011, rated Ba1, to LGD3, 34%;

   -- Affirmed Corporate Family Rating, Ba1; and,

   -- Affirmed Probability of Default Rating, Ba2.

Moody's affirmed the credit ratings of WeightWatchers.com and
will withdraw such ratings upon the repayment of its rated debt
with the proceeds from the add-on term loan facilities.

The stable ratings outlook anticipates solid revenue and
profitability growth in 2007 driven by recent franchise
acquisitions, implementation of price increases in portions of
North America and Europe, new marketing campaigns and wider
roll-out of new monthly and seasonal membership plans.  Free
cash flow generation is expected to be primarily utilized for
debt repayment.

The company's willingness to substantially increase leverage in
connection with its pending share purchase is inconsistent with
an investment grade rating profile.  Consequently, the ratings
are unlikely to be upgraded in the intermediate term.  

However, over the long term, an upgrade is possible if the
company:

   -- grows profitability or repays indebtedness such that EBIT
      coverage of interest and free cash flow to debt are
      sustained for a few years at over 4.5x and 12%,
      respectively; and,

   -- demonstrates a commitment to conservative financial
      policies.

The ratings could be pressured by another large share repurchase
in the near term or a failure to achieve anticipated
improvements in credit metrics during the next year.  Credit
metrics could remain weak within the rating category if
attendance levels or operating margins decline and term loan
repayments are materially below Moody's expectations.  A
downgrade is possible if EBIT coverage of interest and free cash
flow to debt are expected to be sustained at less than 2.5x and
8%, respectively.

Headquartered in New York, New York, Weight Watchers is a
leading global provider of weight management services, operating
globally through a network of company owned and franchised
operations. Revenues for the twelve months ended Sept. 30, 2006,
were $1.2 billion.


WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating for New York, N.Y.-based commercial weight-loss
service provider Weight Watchers International Inc.  

At the same time, all WWI ratings were removed from CreditWatch,
where they were placed with negative implications on Dec. 20,
2006, reflecting WWI's increasingly aggressive financial policy
following the company's announcement that it plans to launch a
"modified Dutch auction" self-tender offer for up to 8.3 million
shares of its common stock at a price range between US$47 and
US$54 per share.

At the same time, Standard & Poor's assigned its 'BB' rating to
the company's proposed US$700-million term loan A-1 and
US$500-million term loan B, with a recovery rating of '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.  S&P also
lowered the existing bank loan ratings on WWI's US$350-million
term loan A and US$500-million revolving credit facility to 'BB'
from 'BB+' and the recovery rating on these facilities to '2'
from '1'.  The rating outlook is negative.

Proceeds from the new US$1.2 billion of term loans will be used
to finance the tender offer and to repay outstanding debt at
wholly owned subsidiary WeightWatchers.com (WW.com,
B+/Positive/--).  Artal Luxembourg S.A., WWI's majority
shareholder, plans to retain its 55.2% pro rata share of common
stock outstanding following the completion of the Dutch auction
repurchase.  WWI intends to repay the outstanding balance of
WW.com's senior secured credit facilities, which consist of a
US$170-million first-lien term loan and a US$45-million
second-lien term loan.  S&P expect all ratings on WW.com to be
withdrawn upon the completion of the planned refinancing of its
existing senior secured debt.


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


AES CORP: Increases Revolving Credit Facility to US$750 Million
---------------------------------------------------------------
(Jason/SEC)
In a regulatory filing with the U.S. Securities and Exchange
Commission, AES Corp. disclosed that on Dec. 6 and Dec. 26,
2006, it entered into amendments for its senior secured
facility.

The amendments are part of a single plan and increase the size
of the revolving credit facility from US$650 million to US$750
million.

The amendment was entered into by:

    * AES Corp., as borrower;

    * AES Hawaii Management Company, Inc., AES New York Funding,
      L.L.C., AES Oklahoma Holdings, L.L.C., and AES Warrior Run
      Funding, L.L.C., as Subsidiary Guarantors;

    * Citicorp Usa, Inc., as Agent and as a Revolving Fronting
      Bank;

    *  Citibank N.A., as Collateral Agent;

    * Bank of America, N.A., Deutsche Bank Trust Company
      Americas, Lehman Commercial Paper, Inc., UBS AG, Stamford
      Branch, Union Bank California, N.A., CALYON - New York
      Branch, and Societe Generale - New York Branch, as
      Revolving Fronting Banks; and

    * Barclays Bank PLC, as a Committing Bank.

A full-text copy of Amendment No. 9 to the Third Amended and
Restated Credit and Reimbursement Agreement, dated as of
Dec. 29, 2006, is available for free at:

           http://ResearchArchives.com/t/s?182c

A full-text copy of Amendment No. 8 to the Third Amended and
Restated Credit and Reimbursement Agreement, dated as of Dec. 6,
2006, is available for free at:

           http://ResearchArchives.com/t/s?182d

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

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

                       *     *     *

AES Corp.'s senior secured term loan due 2011 and senior secured
revolving credit facility due 2010 carry Moody's Ba1 rating.


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


PARMALAT SPA: Supreme Court Confirms Marzano Law's Legitimacy
-------------------------------------------------------------
The Italian Constitutional Court -- Corte Costituzionale della
Repubblica Italiana -- has confirmed as manifestly unfounded the
questions of constitutional legitimacy raised by the Parma Court
in the context of a series of proceedings in which San Paolo IMI
S.p.A., Banca Popolare dell'Etruria e del Lazio soc. Coop, Banca
Popolare di Cremona S.p.A., Banco di Brescia San Paolo CAB
S.p.A., Banca Carige S.p.A.- Cassa di Risparmio di Genova e
Imperia, Banco Popolare di Verona e Novara soc. coop. a. r.l.,
Credit Suisse International (formerly known as Credit Suisse
First Boston International), Unipol Banca S.p.A., and Cassa di
Risparmio di Pisa S.p.A. are defendants.

In particular, the Constitutional Court confirmed the
constitutional legitimacy of art. 6, para.1, of law 39/2004,
which establishes that bankruptcy revocatory claims can be filed
also while a restructuring program is pending.

With the same ordinance, the Constitutional Court also declared
the constitutional legitimacy of art. 6, para. 1-ter, of law
39/2004 and the constitutional legitimacy of the joint provision
of art. 6, para. 1 and 4 bis, para. 10, of the same law.

As reported in the TCR-Europe on Dec. 12, 2006, the Corte
Costituzionale della Repubblica Italiana has upheld a law that
allows Parmalat S.p.A. to pursue clawback claims against GE
Capital Finance and UBS AG, The Associated Press reports.

The banks questioned the legitimacy of the Marzano Bankruptcy
Law in Parmalat's case because it came into effect after the
company's bankruptcy.  The law, passed in December 2003 to
manage the food group's collapse, permits Parmalat to recover
payments made in the year before its insolvency, AP relates.

Four similar cases are still pending before the Constitutional
Court.

Enrico Bondi, Parmalat Chief Executive, has filed damage claims
and clawback actions in the U.S. and Italy to recover around
EUR13.2 billion from banks, auditors and advisers who allegedly
abetted the company's collapse in December 2003.

                         About Parmalat

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

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

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

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Parmalat Capital Finance
Limited, Dairy Holdings, Ltd., and Food Holdings, Ltd.  Dairy
Holdings and Food Holdings are Cayman Island special-purpose
vehicles established by Parmalat SpA.  The Finance Companies are
under separate winding up petitions before the Grand Court of
the Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Limited serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  

(Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors'
Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/)


PARMALAT SPA: Shares Allocation Prompts EUR374,185 Capital Hike
---------------------------------------------------------------
Parmalat S.p.A. communicates that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by EUR374,185
to EUR1,641,527,456 from EUR1,641,153,271.  The share capital
increase is due to the assignation of 180,328 shares and the
conversion of warrants for 193,857 shares.

Approximately 49,520,150 shares representing approximately
3.0% of the share capital are still in a deposit account c/o
Parmalat S.p.A., of which:

   -- 16,852,397 or 1.0% of the share capital, registered in the
      name of individually identified commercial creditors, are
      still deposited in the intermediary account of Parmalat
      S.p.A. centrally managed by Monte Titoli (compared with
      16,930,986 shares as at Nov. 23, 2006);

   -- 32,667,753 or 2,0% of the share capital registered in the
      name of the Foundation, called Fondazione Creditori
      Parmalat, of which:

         -- 120,000 shares representing the initial share
            capital of Parmalat S.p.A. (unchanged);

         -- 32,547,753 or 2.0% of the share capital that pertain
            to currently undisclosed creditors (compared with
            33,187,109 shares as at Nov. 23, 2006).

                         About Parmalat

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

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

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

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Parmalat Capital Finance
Limited, Dairy Holdings, Ltd., and Food Holdings, Ltd.  Dairy
Holdings and Food Holdings are Cayman Island special-purpose
vehicles established by Parmalat SpA.  The Finance Companies are
under separate winding up petitions before the Grand Court of
the Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Limited serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  

(Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors'
Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/)


SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8
---------------------------------------------------------
Sbarro Inc. reported a US$2.1-million net income on US$80
million of total revenues for the 12 weeks ended Oct. 8, 2006,
compared with a US$323,000 net loss on US$79.3 million of total
revenues for the same period ended Oct. 9, 2005.

Sales by quick service restaurants and consolidated other
concept restaurants increased 1.3% to US$75.5 million for the
twelve weeks ended Oct. 8, 2006, from US$74.5 million for the
twelve weeks ended Oct. 9, 2005.  The increase in sales for the
third quarter of 2006 is the result of US$1.5 million or 2.1% of
higher sales in the company's quick service restaurants, with
comparable restaurant sales increasing by 4.8% offset, in part
by fewer company owned quick service restaurants in operation
during 2006 and slightly lower restaurant sales of the company's
consolidated other concepts as a result of the sale of a joint
venture and two company owned restaurants.

Franchise related revenues increased to US$3.3 million for the
third quarter of 2006 from US$2.9 million in the third quarter
of 2005, attributable to additional locations opened during the
last twelve months (net of closed locations).

Real estate and other revenues decreased by US$700,000 in the
third quarter of 2006 from US$1.9 million in the third quarter
of 2005, primarily attributable to a reduction in rental income
in one of the subsidiaries resulting from a tenant bankruptcy
and a decrease in certain food rebates the company receives
based on franchisee's level of purchase.

Cost of food and paper products as a percentage of restaurant
sales improved by 1.2 percentage points to 19.3% for the 12
weeks ended Oct. 8, 2006, from 20.5% for the 12 weeks ended
Oct. 9, 2005.  The cost of cheese in the third quarter of 2006
averaged approximately US$1.40 per pound compared to an average
of approximately US$1.68 per pound for the third quarter of
2005.  This US$0.28 per pound improvement in cheese cost
accounted for US$600,000 of the improvement.  Improved
operational controls, combined with selective price increases
implemented in 2005, were the primary reasons for the remainder
of the improvement in cost of sales as a percentage of
restaurant sales.

Payroll and other employee benefits as a percentage of
restaurant sales was 26.5% in the third quarter of 2006 compared
to 28.3% in the third quarter of 2005.  Payroll costs decreased
US$1.1 million as compared to the third quarter of 2005 as a
result of improved efficiencies and improved sales.

Other operating costs increased by US$200,000 for the twelve
weeks ended Oct. 8, 2006, from the third quarter of 2005 and, as
a percentage of restaurant sales, decreased to 35.1% from 35.4%,
primarily attributable to an increase in bonus expense partially
offset by lower repairs and maintenance.

General and administrative expenses were US$6.7 million for the
third quarter of 2006 compared to US$5.6 million the third
quarter of 2005, primarily due to upgrades and additions to
corporate and franchise personnel and an increase in a long-term
executive bonus plan accrual.

Interest expense of US$7 million for the third quarters of both
2006 and 2005 relates primarily to the 11%, US$255 million
senior notes the company issued to finance its going private
transaction in 1999 and the 8.4%, US$16 million mortgage loan on
its corporate headquarters building.

Equity in the net income of unconsolidated affiliates in other
concept restaurants in which the company has a 50% or less
ownership interest increased by US$200,000 in the third quarter
of 2006 from the third quarter of 2005 as a result of improved
performance.

In the third quarter of 2006 the company had an income tax
credit of US$100,000 for changes in taxable income projections
in states that do not recognize Subchapter S corporation status
of the Internal Revenue Code, pursuant to which substantially
all taxes on income are paid by shareholders.  Tax expense of
US$500,000 for the third quarter of 2005 was for taxes owed to
jurisdictions that do not recognize S corporation status or that
tax entities based on factors other than income and for taxes
withheld at the source of payment on foreign franchise income
related payments.

At Oct. 8, 2006, the company's balance sheet showed
US$378.4 million in total assets, US$312.2 million in total
liabilities, and US$66.2 million in total stockholders' equity.

                  Sources and Uses of Cash

The company has not historically required significant working
capital to fund existing operations and has financed capital
expenditures and investments in joint ventures through cash
generated from operations.

Net cash used in operating activities was US$4.0 million for the
forty weeks ended Oct. 8, 2006, compared to US$11.2 million used
during the forty weeks ended Oct. 9, 2005.  The decrease in net
cash used in operating activities was primarily attributable to
a lower net loss combined with a lower increase in prepaid
expenses partially offset by an accounts payable decrease.

Net cash used in investing activities was US$900,000 higher in
the forty weeks ended Oct. 8, 2006, increasing to US$9.0 million
from US$8.1 million for the forty weeks ended Oct. 9, 2005.  The
increase was primarily due to increased restaurant remodeling
partially offset by proceeds from the sale of restaurant
property and equipment and capital contributions from partners
to consolidated joint ventures.

Full-text copies of the company's consolidated balance sheet for
the 12-week period ended Oct. 8, 2006, are available for free
at http://researcharchives.com/t/s?16a4

                           Merger

Sbarro has disclosed the terms of its merger agreement with
MidOcean SBR Holdings, LLC, and MidOcean SBR Acquisition Corp.
Under the merger agreement MidOcean Acquisition will be merged
with and into Sbarro Inc., with Sbarro Inc. continuing as the
surviving corporation.

Under the Merger Agreement, the stockholders of Sbarro will
receive, in the aggregate:

    (i) cash consideration of US$417 million less adjusted debt;

   (ii) a distribution of certain cash of Sbarro in
        consideration for the delivery to Sbarro of certain
        shares of common stock of Sbarro Inc.; and

  (iii) a preferred interest in Holdings comprised of 33,000
        Class A Units, each with an initial stated value of
        US$1,000.

                         About Sbarro Inc.

Melville, New York-based Sbarro Inc. -- http://www.sbarro.com/  
-- is a quick service restaurant chain that serves Italian  
specialty foods.  The Company has around 1,000 locations across  
34 countries and 11,000 employees under brand names such as  
"Sbarro," "Umberto's," and "Carmela's Pizzeria."  The company
maintains operations in Australia, Italy, and Japan, among
others.


SBARRO INC: MidOcean Partners Deal Cues S&P's Developing Watch
--------------------------------------------------------------
Standard & Poor's Rating Services revised the CreditWatch
listing on Sbarro Inc. to developing from negative.

"The revision comes as the potential for a downgrade has
decreased because the acquisition of the company by MidOcean
Partners will not significantly change the capital structure,"
said Standard & Poor's credit analyst Diane Shand.

"In addition, because the company has had positive operating
performance for the past three years an upgrade is a
possibility."

The corporate credit rating is 'CCC+'.

The Nov. 29, 2006, CreditWatch listing comes after the company's
report that it had agreed to be acquired by private equity
investors, MidOcean Partners, for an undisclosed sum.


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


ARMAN LLP: Creditors Must File Claims by Feb. 13
------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Arman insolvent on Nov. 16, 2006,
without the introduction of bankruptcy proceedings.

Creditors have until Feb. 13 to submit written proofs of claim
to:

         LLP Arman
         Sutushev Str. 58
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan
         Tel: 8 (3152) 46-35-83


DANKAMTU OJSC: Proof of Claim Deadline Slated for Feb. 13
---------------------------------------------------------
OJSC Dankamtu has declared insolvency.  Creditors have until
Feb. 13 to submit written proofs of claim to:

         OJSC Dankamtu
         Muhita Str. 78
         Uralsk
         West Kazakhstan Region
         Kazakhstan


ELENA LLP: Claims Filing Period Ends Feb. 13
--------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Elena insolvent.  Subsequently, bankruptcy
proceedings were introduced at the company.

Creditors have until Feb. 13 to submit written proofs of claim
to:

         LLP Elena
         Olimpiskaya Str. 8a
         Karaganda
         Karaganda Region
         Kazakhstan
         Tel: 8 701 533 50-63


ENERGOSERVICE CO: Claims Bar Date Slated for Feb. 13
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Energoservice Company insolvent on
Nov. 17, 2006.  Subsequently, bankruptcy proceedings were
introduced at the company.

Creditors have until Feb. 13 to submit written proofs of claim
to:

         LLP Energoservice Company
         Olimpiskaya Str. 8a
         Karaganda
         Karaganda Region
         Kazakhstan
         Tel: 8 701 533 50-63


ENERGOTECHSERVICE-2030 LLP: Court Begins Bankruptcy Proceedings
---------------------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan Region commenced bankruptcy proceedings against
LLP Energotechservice-2030.


EURO SPEN: Claims Filing Period Ends Feb. 9
-------------------------------------------
LLP Euro Spen Astana has declared insolvency.  Creditors have
until Feb. 9 to submit written proofs of claim to:

         LLP Euro Spen Astana
         Micro District Al-Farabi, 74-33
         Almaty District
         Astana, Kazakhstan


GLOBAL TRADING: Claims Registration Ends Feb. 9
-----------------------------------------------
LLP Global Trading has declared insolvency.  Creditors have
until Feb. 9 to submit written proofs of claim to:

         LLP Global Trading
         Timirazev Str. 12-13
         Almaty, Kazakhstan


IVANOV & K: Proof of Claim Deadline Slated for Feb. 13
------------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Ivanov & K on Nov. 20, 2006,
insolvent without the introduction of bankruptcy proceedings.

Creditors have until Feb. 13 to submit written proofs of claim
to:

         LLP Ivanov & K
         Sutushev Str. 58
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan
         Tel: 8 (3152) 46-35-83


KAMKOR LLP: Creditors Must File Claims by Feb. 13
-------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Kamkor insolvent on
Nov. 20, 2006, without the introduction of bankruptcy
proceedings.

Creditors have until Feb. 13 to submit written proofs of claim
to:

         LLP Kamkor
         Sutushev Str. 58
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan
         Tel: 8 (3152) 46-35-83


SP ROSKAZHLEB: Claims Registration Ends Feb. 13
-----------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP SP Roskazhleb insolvent on
Nov. 21, 2006.  Subsequently, bankruptcy proceedings were
introduced at the company.

Creditors have until Feb. 13 to submit written proofs of claim
to:

         LLP SP Roskazhleb
         Medvedev Str. 41
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan
         Tel: 8 (3152) 33-08-72


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


ALCAPS LLC: Creditors Meeting Scheduled for Jan. 12
---------------------------------------------------
Creditors of LLC Alcaps Free Economic Zone Bishkek will convene
at 10:00 a.m. on Jan. 12 at:

         Room 24
         Erkindik Ave. 39a
         Bishkek, Kyrgyzstan

The Inter-District Court of Bishkek for Economic Issues declared
LLC Alcaps Free Economic Zone Bishkek (Case No.ED-897/06 mbs8)
insolvent on Oct. 31, 2006.  Subsequently, bankruptcy
proceedings were introduced at the company.

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

Proxies must have authorization to vote.

The Temporary Insolvency Manager is:

         Ms. Bubusara Nogoibaeva
         Tel: (0-517) 73-67-29


CLEARING CENTRE: Creditors' Meeting Scheduled for Jan. 11
---------------------------------------------------------
The temporary insolvency manager of the Clearing Centre will
conduct a creditors' meeting at 10:00 a.m. on Jan. 11 at Chui
Ave. 106, Bishkek, Kyrgyzstan.

Agenda:

   -- report of temporary insolvency manager;

   -- specification of account payable and
      account receivable;      

   -- prolongation of the term of bankruptcy
      proceedings holding; and

   -- others.

Proxies must have authorization to vote.  

Inquiries can be addressed to (+996 312) 62-52-31.


ORIOLE IVOLGA: Creditors' Meeting Slated for Jan. 12
----------------------------------------------------
Creditors of LLC Sport Club Oriole Ivolga will convene at 10:00
a.m. on Jan. 12 at:

         Room 108
         Moskovskaya Str. 151
         Bishkek, Kyrgyzstan

The Inter-District Court of Bishkek for Economic Issues declared
LLC Sport Club Oriole Ivolga (Case No.ED-245/06 mbs8) insolvent
on March 31, 2006.  Subsequently, bankruptcy proceedings were
introduced at the company.

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

Proxies must have authorization to vote.

The Temporary Insolvency Manager is:

         Mr. Toktogul Boronchiev
         Tel: (+996 312) 21-67-25
              (+996 3138) 5-72-78


VOSTOK LLC: Public Auction Slated for Jan. 12
---------------------------------------------
The bidding organizer and insolvency manager of the LLC Joint
Kyrgyz-American Enterprise Vostok will auction the company's
bankruptcy enterprise properties at 1:00 p.m. on Jan. 12 at:

         Den-Saopin Ave. 18
         Bishkek, Kyrgyzstan

The assets for sale are:

   -- Lot 1: petroleum storage depot with area of
             500 square meters;

      Location: Western Zone
                Balykchy
                Issyk-Kul Region
                Kyrgyzstan

      Starting price: KGS1,106,750

   -- Lot 2: transport facilities.  Starting prices: from
      KGS25,000 to KGS185,670

   -- Lot 3: office furniture and equipment. Starting price:
      KGS4,125,114; and

   -- Lot 4: inventory holdings.

Participants have until Jan. 11 to deposit an amount equivalent
to 10% of the starting price to the cashier of the enterprise
and submit their bids at:

         Den-Saopin Ave. 18
         Bishkek, Kyrgyzstan
         Tel:(+996 312) 65-02-33
             (0-502) 55-22-50
             (0-502) 53-62-55


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


DANA CORP: Wants to Increase DIP Loan & Restructure Europe Biz
--------------------------------------------------------------
In March 2006, the Honorable Burton R. Lifland of the United
States Bankruptcy Court for the Southern District of New York
authorized Dana Corp. and its debtor-affiliates to borrow under
a US$1,450,000,000 senior secured credit facility agreement with
Citicorp North America Inc., as administrative agent, Citigroup
Global Markets Inc., J.P. Morgan Securities Inc., and Banc of
America Securities LLC, as joint lead arrangers and bookrunners,
and a syndicate of lenders and other financial institutions.

The DIP Loan Agreement comprised of:

   -- a US$700,000,000 term loan facility, and
   -- a US$750,000,000 revolving credit facility.

Under the DIP Loan Agreement, Dana Corporation, as borrower, and
each of the other Debtors, as guarantors, are jointly and
severally liable for all obligations and, as collateral, have
granted security interests in substantially all of their assets,
including a pledge of 66% of the equity interests of each of
their material direct or indirect foreign subsidiary.

The DIP Loan Agreement also contains covenants that are
customarily found in similar DIP credit facilities, as well as
two financial covenants specific to the Debtors' operations that
require maintenance at all times of:

   -- availability under the revolving credit facility of at
      least US$100,000,000; and

   -- certain minimum amounts of consolidated earnings before
      interest, taxes, depreciation, amortization, restructuring
      and reorganization costs for various periods from the
      Petition Date through February 2008.

As of Nov. 30, 2006, the Debtors' unrestricted cash totaled
about US$164,500,000 and the amount available for revolving
credit advances was approximately US$332,000,000, Richard H.
Engman, Esq., at Jones Day, in New York, relates.  

The Debtors, however, expect their overall liquidity to continue
to decline in the next months and ultimately become insufficient
to sustain their ongoing operations unless the Court permits
them to amend their DIP Loan Agreement and they are successful
in realizing significant amounts of cash from both the proceeds
of asset sales and from the repatriation of cash held by their
non-Debtor foreign affiliates.

To avoid potential liquidity issues, the Debtors seek the
Court's authority to amend their DIP Loan Agreement to provide
for:

   (1) an increase of the term loan commitments by
       US$200,000,000 to enhance their near-term liquidity and
       to mitigate timing and execution risks associated with
       asset sales and other cash repatriation activities that
       are in process and that they have previously disclosed;

   (2) an increase of 0.25% to the rate at which interest
       accrues on amounts borrowed under the term facility;

   (3) a reduction of certain minimum global EBITDAR covenant
       levels and a US$25,000,000 increase to the annual amount
       of cash restructuring charges that are includable in the
       calculation of EBITDAR:

          Month            Period Ended         Covenant EBITDAR
          -----            ------------         ----------------
          January 2007       11 months            US$200,000,000
          February 2007      12 months            US$200,000,000
          March 2007         12 months            US$175,000,000
          April 2007         12 months            US$175,000,000
          May 2007           12 months            US$170,000,000
          June 2007          12 months            US$170,000,000
          July 2007          12 months            US$185,000,000
          August 2007        12 months            US$200,000,000
          September 2007     12 months            US$200,000,000
          October 2007       12 months            US$230,000,000
          November 2007      12 months            US$250,000,000
          December 2007      12 months            US$250,000,000
          January 2008       12 months            US$250,000,000
          February 2008      12 months            US$250,000,000
          March 2008         12 months            US$250,000,000

   (4) An implementation of corporate restructuring of their
       European non-Debtor subsidiaries that will facilitate the
       establishment of a European credit facility, improve
       treasury and cash management operations and facilitate
       the tax efficient repatriation of cash from Europe; and

   (5) Modification to allow the Debtors to receive and retain
       proceeds from the sale of their Trailer Axle Business
       without triggering a mandatory prepayment to the Lenders
       of the amount of proceeds received.

A full-text copy of the proposed DIP Loan Amendment is available
for free at http://ResearchArchives.com/t/s?1817

                     European Restructuring

The Debtors also seek the Court's authority to restructure their
European business operations.

The European Restructuring contemplates non-debtor Dana
Automotive Aftermarket, Inc., a United States subsidiary of Dana
Corp., to form Dana European Holdings Luxembourg SARL, a
Luxembourg company.

Under the European Restructuring, three sets of transactions
will be undertaken:

    1. Luxco will purchase all of the assets of non-debtor Dana
       International Holdings Inc., with voting fixed rate
       preferred stock of DAA.  Subsequently, Dana International
       would convert to a limited liability company under
       Delaware law and would transfer DAA shares to Dana Corp.

    2. Luxco will acquire the shares of subsidiaries in Dana SAS
       (France), Spicer Nordiska Kardan AB (Sweden) and Dana
       Belgium NV from Dana Corp. in exchange for Luxco shares
       and notes.  Luxco will acquire 99% interest of
       subsidiaries in Dana SAS.

    3. Dana Corp. will contribute the shares of subsidiaries in
       Dana Italia SpA, Dana Europe SA (Switzerland) and Dana
       Europe Holdings BV (Netherlands) to DAA.  DAA will
       contribute these shares to Luxco.

After the initial transfers, Luxco will transfer the European
subsidiaries to newly formed holding companies in Luxembourg and
Switzerland.

                        About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies.  Dana employs 46,000
people in 28 countries including Switzerland and Luxembourg.  
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and  US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.  

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.  (Dana Corporation Bankruptcy News, Issue No. 29;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DANA CORP: Has Until Sept. 3 to File Restructuring Plan
-------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York extended Dana Corp. and its
debtor-affiliates' exclusive periods to:

    -- propose a plan of reorganization through and including
       Sept. 3, 2007; and

    -- solicit acceptances of that plan through and including
       Nov. 2, 2007.

The Official Committee of Unsecured Creditors did not object to
the Debtors' request to extend their exclusive periods although
it noted that the extension is unusually long.

The Creditors Committee said it has taken comfort in the fact
that the Debtors have prepared and submitted to the Committee a
list of numerous milestones they intend to meet to timely emerge
from Chapter 11 in the third quarter of 2007.

The Creditors Committee noted, however, that the Debtors'
ability to meet certain internally generated deadlines is not
necessarily dispositive of their ability to confirm a Chapter 11
plan that maximizes creditor recoveries.  The Creditors
Committee said that if it determines, for any reason, that cause
exists to terminate exclusivity, it reserves its right to bring
a motion to terminate exclusivity.

                        About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies.  Dana employs 46,000
people in 28 countries including Switzerland and Luxembourg.  
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and  US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.  

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.  (Dana Corporation Bankruptcy News, Issue No. 29;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DANA CORP: Seeks Court Approval to Amend DIP Credit Agreement
-------------------------------------------------------------
Dana Corp. disclosed that in support of its ongoing
reorganization and anticipated emergence from Chapter 11
bankruptcy protection later this year, the company has filed a
motion in the U.S. Bankruptcy Court for the Southern District of
New York, which has jurisdiction over its Chapter 11 bankruptcy
proceedings under the caption In re Dana Corporation, et al.,
Case No. 06-10354 (BRL), seeking to amend its US$1.45 billion
debtor-in- possession (DIP) credit agreement.  The motion is
scheduled to be heard by the court on Jan. 24, 2007.

Among other things, Dana intends to reduce the amount of its
unused revolving credit facility under the DIP credit agreement
to correspond with changes in its borrowing base.  As it
continues to sell its non-core assets, these changes will adjust
the structure of Dana's debt facilities to more closely align
with the needs of the business.  In order to ensure that Dana
continues to have adequate liquidity notwithstanding such
reduction, Dana is seeking court approval for an increase in the
amount available under its term loan facility from US$700
million to US$900 million, as well as for certain financial
covenant modifications and technical changes to its DIP credit
agreement.  Citigroup Corporate and Investment Banking, the
administrative agent for the lenders under the DIP credit
agreement, has agreed to underwrite the proposed increase in the
term loan facility.

"While we are pleased with the restructuring progress that Dana
has achieved over the past nine months, especially under
challenging market conditions, the additional funding and
financing flexibility that will result from the proposed
amendment position us to complete our restructuring and emerge
from Chapter 11," said Dana Chairman and CEO Mike Burns.  "We
are also pleased with the confidence that our DIP agent,
Citigroup, has demonstrated in our reorganization efforts by
underwriting the proposed increase to our DIP facility."

                          About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies.  Dana employs 46,000
people in 28 countries including Switzerland and Luxembourg.  
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and  US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.  

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.  (Dana Corporation Bankruptcy News, Issue No. 29;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


NORTEL NETWORKS: Closes US$320MM Unit Sale to Alcatel-Lucent
------------------------------------------------------------
Nortel Networks Corp. closed the sale of assets and liabilities
related to its UMTS access business to Alcatel-Lucent.  The sale
closed on Dec. 31, 2006.  The transaction is for US$320 million
in cash less significant deductions and transaction related
costs.

The closing of the sale follows the signing of the definitive
agreement on Dec. 4, 2006, and the signing of the non-binding
Memorandum of Understanding between the companies on Sept. 1,
2006.  As part of the agreement, approximately 1,700 of Nortel's
UMTS access employees have transferred to Alcatel-Lucent.  
Regulatory approvals have been met.  With the completion of this
sale, Alcatel-Lucent acquired the UMTS access product portfolio,
associated patents and tangible assets as well as customer
contracts from Nortel.

                         About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation
(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
designed to help people solve the world's greatest challenges.
Nortel does business in more than 150 countries.

                           *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.


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


HERBALIFE LTD: Expects Higher Sales for 2006 Fourth Quarter
-----------------------------------------------------------
Herbalife Ltd. anticipates reporting record net sales between
US$482.7 million and US$484.7 million for its fourth quarter
ended Dec. 31, 2006, when it files its annual report on Form 10-
K in late February 2007, reflecting a year-over-year increase
between 18.0% and 18.5%.  

The expected net sales results reflect strong double-digit
growth in the U.S., Mexico and several South American and
Southeast Asian markets.

"Our distributors had a tremendously successful year expanding
their businesses into new markets and more deeply penetrating
existing markets," said Michael O. Johnson, the company's chief
executive officer.  "As a result, we believe the 2006 goal of
exceeding US$3.0 billion in retail sales has been achieved," he
continued.

Based on its expected net sales growth, the company anticipates
that fourth quarter 2006 diluted earnings per share will be
within its previously announced range of US$0.52 to US$0.55,
excluding expenses associated with its realignment for growth
initiative.

                       2007 Guidance

Based upon its preliminary fourth quarter 2006 financial
results, the company is updating its full year 2007 guidance to
reflect current business trends and is also providing first
quarter 2007 guidance.

For the full year 2007, the company is reaffirming its
previously announced diluted earnings per share guidance of
US$2.40 to US$2.47, excluding expenses associated with its
realignment for growth initiative.  This guidance reflects net
sales growth of between 6.0% and 10.0% (compared with 10.0% to
15.0% initially issued on Nov. 6, 2006), coupled with improved
operating margins and a lower effective tax rate.

The company's outlook for net sales growth in 2007 reflects
current business trends, primarily slower than expected net
sales growth in Mexico.  The company expects the adverse impact
on overall 2007 net sales growth from this recent trend in
Mexico will be partially offset by net sales growth in several
other countries, primarily the U.S.

The company is also providing first quarter 2007 guidance with
expected net sales growth in the range of between 6.0% and
10.0%, an effective tax rate between 35.0% and 36.0% and diluted
earnings per share guidance in the range of US$0.50 to US$0.55,
excluding expenses associated with its realignment for growth
initiative.

                      About Herbalife Ltd.

Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--  
Herbalife, now in its 26th year, conducts business in 62
countries.  The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., and
Guadalajara, Mexico.

                        *    *    *

Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.


TEEKAY SHIPPING: Declares US$0.2375 Per Share Cash Dividend
-----------------------------------------------------------
Teekay Shipping Corp.'s Board of Directors has voted to declare
a cash dividend on its common stock of US$0.2375 per share,
payable on Jan. 26, 2007, to all shareholders of record as at
Jan. 12, 2007.

                       About Teekay

Teekay Shipping Corp., a Marshall Islands corporation
headquartered in Nassau, Bahamas, transports more than 10% of
the world's seaborne oil and has expanded into the liquefied
natural gas shipping sector through its publicly listed
subsidiary, Teekay LNG Partners L.P., and into the offshore
production, storage and transportation sector through its
publicly listed subsidiary, Teekay Offshore Partners L.P.  With
a fleet of over 140 tankers, offices in 17 countries and 5,100
seagoing and shore-based employees, Teekay provides a
comprehensive set of marine services to the world's leading oil
and gas companies, helping them seamlessly link their upstream
energy production to their downstream processing operations.  In
Europe, the country maintains offices in Germany, Luxembourg,
the Netherlands, Spain, and the United Kingdom, among others.

                        *    *    *

As reported in the TCR-Europe on Dec. 22, 2006, Moody's
Investors Service has downgraded the ratings of Teekay Shipping
Corporation -- Corporate Family to Ba2 from Ba1, and senior
unsecured to Ba3 from Ba2.  Moody's also affirmed the
SGL-2 Speculative Grade Liquidity rating.  Moody's said the
rating outlook was changed to negative.


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


AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio
---------------------------------------------------------------
Aker Kvaerner signed a US$105-million contract to upgrade the
Kyger Creek power plant in Ohio, Aftenposten English reports.

Aker Kvaerner will build a sulfur dioxide removal facility at
the power plant.  The contract is Aker Kvaerner's third of its
type in the U.S. power market in the last five years,
Aftenposten relates.  The company expects to complete the
project in 2009.

"The market for power stations with different energy sources is
growing quickly in the U.S.A., Torbjorn Andersen, Aker Kvaerner
Information Director, said.  "The focus on environmentally
friendly technology is growing, and the possibilities for
further activity are good."

                       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, 2006, 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
===========


CHRYSOLITE CJSC: Creditors Must File Claims by Jan. 16
------------------------------------------------------
Creditors CJSC Chrysolite have until Jan. 16 to submit written
proofs of claim to:

         S. Suvorov, Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-38581/06-123-682B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Chrysolite
         Vorontsovskaya Str. 23
         Moscow Region
         Russia


CHUVASH-ALCO OJSC: Creditors Must File Claims by Jan. 16
--------------------------------------------------------
Creditors OJSC Chuvash-Alco have until Jan. 16 to submit written
proofs of claim to:

         I. Gorn, the Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-42099/06-123-878B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Chuvash-Alco
         Room 1
         Nezhinskaya Str. 17
         Moscow Region
         Russia


COMPANY-WEST OJSC: Creditors Must File Claims by Jan. 16
--------------------------------------------------------
Creditors OJSC Building Company-West have until Jan. 16 to
submit written proofs of claim to:

         I. Gorn, the Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-49819/06-71-1090B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Building Company-West
         Rublevskoye Shosse 38
         Moscow Region
         Russia


COMPUTER LAND: Creditors Must File Claims by Jan. 16
----------------------------------------------------
Creditors CJSC Computer Land have until Jan. 16 to submit
written proofs of claim to:

         I. Gorn, the Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-48369/06-71-1050B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Computer Land
         Milashenkova Str. 20
         Moscow Region
         Russia


DAL-TRANS-STORY OJSC: Creditors Must File Claims by Jan. 16
-----------------------------------------------------------
Creditors OJSC Dalnevostochnyj Specialized Trust Dal-Trans-Stroy
have until Jan. 16 to submit written proofs of claim to:

         G. Chmutina, Temporary Insolvency Manager
         Office 806
         Sheronova Str. 56 A
         680000 Khabarovsk Region
         Russia

The Arbitration Court of Khabarovsk Region commenced bankruptcy
supervision procedure on OJSC Dalnevostochnyj Specialized Trust
Dal-Trans-Stroy.  The case is docketed under Case No.
A73-5215/2006-39.

The Debtor can be reached at:

         OJSC Dalnevostochnyj Specialized Trust Dal-Trans-Story
         Sheronova Str. 56
         Khabarovsk Region
         Russia


ENEGRO-OIL CJSC: Creditors Must File Claims by Jan. 16
------------------------------------------------------
Creditors CJSC Enegro-Oil have until Jan. 16 to submit written
proofs of claim to:

         I. Gorn, the Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-48989/06-71-1075B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Enegro-Oil
         3rd Setunskiy Pr. 10
         Moscow Region
         Russia


EURO-ASIATIC METALLURGIC: Creditors Must File Claims by Jan. 16
---------------------------------------------------------------
Creditors CJSC Euro-Asiatic Metallurgic Company have until
Jan. 16 to submit written proofs of claim to:

         S. Suvorov, Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-38594/06-123-695B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Euro-Asiatic Metallurgic Company
         Building 2
         Serebryanicheskiy Per. 5
         Moscow Region
         Russia


ISTOK CJSC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------
The Arbitration Court of Novgorod Region commenced bankruptcy
supervision procedure on CJSC Istok.  The case is docketed under
Case No. A 44-2554/2006-15k.

The Temporary Insolvency Manager is:

         A. Kulikov
         3rd floor
         Novinskiy Avenue 11
         121099 Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Istok
         B. Sankt-Peterburgskaya Str. 107
         173008 Velikiy Novgorod Region
         Russia


MOSCOW-KUBAN-CHELYABINSK: Creditors Must File Claims by Jan. 16
---------------------------------------------------------------
Creditors CJSC Moscow-Kuban-Chelyabinsk have until Jan. 16 to
submit written proofs of claim to:

         I. Gorn, the Insolvency Manager
         Post User Box 183
         127018 Moscow Region
         Russia

The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A40-40681/06-73-825B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Moscow-Kuban-Chelyabinsk
         Rooms 127, 128
         Building 2
         Slavyanskaya Square 4
         Moscow Region
         Russia


NAMED AFTER: Kurgan Bankruptcy Hearing Slated for Feb. 28
---------------------------------------------------------
The Arbitration Court of Kurgan Region will convene at 1:30 p.m.
on Feb. 28 to hear the bankruptcy supervision procedure on CJSC
Named After Kirov.  The case is docketed under Case No.
A34-6767/2006.

The Temporary Insolvency Manager is:

         S. Domas
         Post User Box 137
         Taganskaya Str., 51
         620051 Ekaterinburg Region
         Russia

The Debtor can be reached at:

         CJSC Named After Kirov
         Malysheva
         Kargopolskiy Region
         641917 Kurgan Region
         Russia


PEAT-SERVICE CJSC: Creditors Must File Claims by Jan. 16
--------------------------------------------------------
Creditors CJSC Peat-Service have until Jan. 16 to submit written
proofs of claim to:

         P. Kapkin, Insolvency Manager
         Apartment 18
         Yubileynaya Str. 87A
         180016 Pskov Region
         Russia

The Arbitration Court of Pskov Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A52-3723/2006/4.

The Arbitration Court of Pskov Region is located at:

         Nekrasova Str. 23
         Pskov
         Russia

The Debtor can be reached at:

         CJSC Peat-Service
         Frunze Str. 30-A
         Pskov Region
         Russia


PRIONEZHSKIY WOOD: Creditors Must File Claims by Feb. 16
--------------------------------------------------------
Creditors LLC Prionezhskiy Wood have until Feb. 16 to submit
written proofs of claim to:

         V. Podolyanchik, Insolvency Manager
         Post User Box 114
         Petrozavodsk
         185030 Kareliya Republic
         Russia

The Arbitration Court of Kareliya Republic commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A26-3934/2006-184.

The Arbitration Court of Kareliya Republic is located at:

         Krasnoarmeyskaya Str. 24a
         Petrozavodsk
         185610 Kareliya Republic
         Russia

The Debtor can be reached at:

         LLC Prionezhskiy Wood
         Dzerzhinskogo Str. 20
         Petrozavodsk
         185035 Kareliya Republic
         Russia


TRANSPORT ENTERPRISE: Bankruptcy Hearing Slated for March 29
------------------------------------------------------------
The Arbitration Court of Chelyabinsk Region will convene on
March 29 to hear the bankruptcy supervision procedure on LLC
Transport Enterprise (TIN 7445025323).  The case is docketed
under Case No. A76-18813/2006-60-186.

The Temporary Insolvency Manager is:

         A. Kuzmin, Temporary Insolvency Manager
         Apartment 39
         Pervomayskaya Str. 8
         Magnitogorsk
         455000 Chelyabinsk Region
         Russia

The Arbitration Court of Chelyabinsk Region is located at:

         Vorovskogo Str. 2
         454091 Chelyabinsk Region
         Russia

The Debtor can be reached at:

         LLC Transport Enterprise
         Profsoyuznaya Str. 8
         Magnitogorsk
         455000 Chelyabinsk Region
         Russia


VYSHNEVOLOTSKIY TEXTILE: Bankruptcy Hearing Slated for April 25
---------------------------------------------------------------
The Arbitration Court of Tver Region will convene on April 25 to
hear the bankruptcy supervision procedure on CJSC
Vyshnevolotskiy Textile.  The case is docketed under Case No.
A66-9288/2006.

The Temporary Insolvency Manager is:

         A. Popova
         Office 9
         Rumyantseva Str. 9
         Tver Region
         Russia

The Arbitration Court of Tver Region is located at:

         Room 7
         Sovetskaya Str. 23b
         Tver Region
         Russia

The Debtor can be reached at:

         CJSC Vyshnevolotskiy Textile
         Krasnaya Str. 1
         V. Volochek
         Tver Region
         Russia


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


BH OEKO-BAU: Zug Court Starts Bankruptcy Proceedings
----------------------------------------------------
The Bankruptcy Court of Zug commenced bankruptcy proceedings
against LLC BH Oeko-bau on Oct. 2, 2006.

The Debtor can be reached at:

         LLC BH Oeko-bau
         Altgasse 82
         6340 Baar
         Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


CLIENT-SERVER EDV: Eglisau Court Starts Bankruptcy Proceedings
--------------------------------------------------------------
The Bankruptcy Court of Eglisau commenced bankruptcy proceedings
against LLC Client-Server EDV Schweiz on Oct. 5, 2006.

The Debtor can be reached at:

         LLC Client-Server EDV Schweiz
         Mattenweg 1
         8192 Glattfelden
         Zurich
         Switzerland

The Bankruptcy Service of Eglisau can be reached at:

         Bankruptcy Service of Eglisau
         8193 Eglisau
         Zurich
         Switzerland


FIDELIUS JSC: Zug Court Suspends Bankruptcy Proceedings
-------------------------------------------------------
The Bankruptcy Court of Zug suspended the bankruptcy proceedings
of JSC Fidelius on Nov. 27, 2006, pursuant to Article 230 of the
Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF5,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on May 30, 2006, can be reached
at:

         JSC Fidelius
         Untermuli 6
         6300 Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


GROUPE MOBILITE: Zug Court Suspends Bankruptcy Proceedings
----------------------------------------------------------
The Bankruptcy Court of Zug suspended the bankruptcy proceedings
of JSC Groupe Mobilite on Nov. 27, 2006, pursuant to Article 230
of the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF9,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Oct. 4, 2006, can be reached
at:

         JSC Groupe Mobilite
         Metallstrasse 6
         6300 Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


MORTEZAWI BUILDING: Zug Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Court of Zug commenced bankruptcy proceedings
against Mortezawi Building Systems Ltd Holding on Oct. 17, 2006.

The Debtor can be reached at:

         Mortezawi Building Systems Ltd
         Baarerstrasse 75
         6300 Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


NOVELIS INC: Noteholders Swap US$1.4 Billion Notes for New Debt
---------------------------------------------------------------
Novelis Inc. disclosed that its offer to exchange its
US$1,400,000,000 7-1/4% Senior Notes due 2015, Series B, which
have been registered under the Securities Act of 1933, as
amended, for an equal principal amount of its outstanding 7-1/4%
Senior Notes due 2015 which were initially issued and sold in a
private placement on Feb. 3, 2005, expired at 5:00 pm Eastern
Time on Jan. 4, 2007.

According to information provided by the exchange agent for the
exchange offer, an aggregate principal amount of
US$1,379,057,000 of old notes was validly tendered and not
validly withdrawn on or before the expiration date.  The
remaining old notes will remain outstanding and the two-year
Rule 144(k) holding period with respect to the old notes will
expire on Feb. 3, 2007.  The company will cease paying special
interest on the notes effective immediately.

On Jan. 5, 2007, Novelis expected to deliver an aggregate
principal amount of approximately US$1,379,057,000 of new notes
for the old notes accepted for exchange.  In addition, Novelis
may deliver additional new notes subsequent to Jan. 5, 2007, in
exchange for old notes tendered pursuant to guaranteed delivery
procedures which may be delivered after the original expiration
of the exchange offer.

Any holder of the old notes who would like to obtain copies of
the prospectus and related documents or who has questions
regarding the exchange offer may contact Novelis Inc.'s exchange
agent at:

          The Bank of New York Trust Company, N.A.
          Tel: (212) 815-5098

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

                        *    *    *

Standard & Poor's Ratings Services it affirmed all of its
ratings on Novelis Inc., including the 'BB-' long-term corporate
credit rating, and removed the ratings from CreditWatch with
negative implications, where they were placed April 7, 2006.
S&P said the outlook is negative.

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

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

Issuer: Novelis Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$500 Million
   Guaranteed
   Senior Secured
   Revolving Credit
   Facility               Ba3      Ba2     LGD2       24%

   US$312 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%

   US$1.4 Billion
   7.25% Guaranteed
   Senior Unsecured
   Notes                  B2       B3      LGD5       76%

Issuer: Novelis Corporation

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$543 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%


OBERDORF-APOTHEKE BAAR: Zug Court Starts Bankruptcy Proceedings
---------------------------------------------------------------
The Bankruptcy Court of Zug commenced bankruptcy proceedings
against JSC Oberdorf-Apotheke, Baar on Oct. 17, 2006.

The Debtor can be reached at:

         JSC Oberdorf-Apotheke, Baar
         Oberdorfstrasse 6a
         6340 Baar
         Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


RAUL RICARDO: Schlieren Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Court of Schlieren commenced bankruptcy
proceedings against LLC Raul Ricardo Alarcon on Oct. 17, 2006.

The Debtor can be reached at:

         LLC Raul Ricardo Alarcon
         Eichacherstrasse 5
         8904 Aesch
         Zurich
         Switzerland

The Bankruptcy Service of Schlieren can be reached at:

         Bankruptcy Service of Schlieren
         8952 Schlieren
         Zurich
         Switzerland


RIET-GARAGE JSC: Court Starts Bankruptcy Proceedings
----------------------------------------------------
The Bankruptcy Court of Niederglatt ZH commenced bankruptcy
proceedings against JSC Riet-Garage on Nov. 2, 2006.

The Debtor can be reached at:

         JSC Riet-Garage
         Niederglatt
         Kaiserstuhlstr 64
         8172 Niederglatt
         Zurich
         Swizerland

The Bankruptcy Service of Niederglatt ZH can be reached at

         Bankruptcy Service of Niederglatt ZH
         8172 Niederglatt
         Zurich
         Swizerland


VARIA HOLDING: Zug Court Starts Bankruptcy Proceedings
------------------------------------------------------
The Bankruptcy Court of Zug commenced bankruptcy proceedings
against JSC Varia Holding on Oct. 9, 2006.

The Debtor can be reached at:

         JSC Varia Holding
         Industriestrasse 16
         6300 Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


VXG VERMOGENSVERWALTUNG: Court Starts Bankruptcy Proceedings
------------------------------------------------------------
The Bankruptcy Court of Zurich-Altstadt commenced bankruptcy
proceedings against JSC VXG Vermogensverwaltung, on Oct. 16,
2006.

The Debtor can be reached at:

         JSC VXG Vermogensverwaltung
         Bahnhofstrasse 48
         8001 Zurich
         Switzerland

The Bankruptcy Service of Zurich-Altstadt can be reached at:

         Bankruptcy Service of Zurich-Altstadt
         8022 Zurich
         Switzerland


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


KERCHLIFT: Claims Submission Deadline Set January 18
----------------------------------------------------
Creditors of State Enterprise Kerchlift (code EDRPOU 24040062)
have until Jan. 18 to submit written proofs of claim to:

         Alexander Borisenko, Temporary Insolvency Manager
         Kuibysheva 15
         Simferopol
         98300 AR Krym Region
         Ukraine
         
The Economic Court of AR Krym Region commenced bankruptcy
supervision procedure on the company.  The case is docketed
under Case No. 2-31/14291-2006.

The Economic Court of AR Krym Region is located at:

         Karl Marks Str. 18
         Simferopol
         95000 AR Krym Region
         Ukraine

The Debtor can be reached at:

         State Enterprise Kerchlift
         Aivazovskiy Str. 26
         Kerch
         98300 AR Krym Region
         Ukraine


KOZACHOK OJSC: Creditors Must File Claims by January 18
-------------------------------------------------------
Creditors of OJSC Kozachok (code EDRPOU 25003726) have until
Jan. 18 to submit written proofs of claim to:

         Vladimir Shmal, Liquidator
         Shevchenko Str. 231
         Nikopol
         53200 Dniepropetrovsk Region
         Ukraine

The Economic Court of Dnipropetrovsk Region commenced bankruptcy
proceeding against the company on Dec. 12, 2006, after finding
it insolvent.  The case is docketed under Case No. B 15/229-06.

The Economic Court of Dniepropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dniepropetrovsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Kozachok
         Shevchenko Str. 231
         Nikopol
         53200 Dniepropetrovsk Region
         Ukraine


KRASNOGORSKOE CJSC: Creditors Must File Claims by January 18
------------------------------------------------------------
Creditors of CJSC Krasnogorskoe have until Jan. 18 to submit
written proofs of claim to:

         Sergey Zozulya, Liquidator
         Shevchenko Boulevard 250
         Cherkassy Region
         Ukraine

The Economic Court of Cherkassy Region commenced bankruptcy
proceeding against the company on Nov. 17, 2006, after finding
it insolvent.  The case is docketed under Case No. 01/5250.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         CJSC Krasnogorskoe
         Antipovka
         Zolotonosha District
         19733 Cherkassy Region
         Ukraine


LAN CJSC: Creditors Must File Claims by January 18
--------------------------------------------------
Creditors of CJSC Lan (code EDRPOU 31214593) have until Jan. 18
to submit written proofs of claim to:

         Sergey Zozulya, Liquidator
         Shevchenko Boulevard 250
         Cherkassy Region
         Ukraine

The Economic Court of Cherkassy Region commenced bankruptcy
proceeding against the company on Nov. 20, 2006, after finding
it insolvent.  The case is docketed under Case No. 10/5498.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         CJSC Lan
         Voznesenskoe
         Zolotonosha District
         19743 Cherkassy Region
         Ukraine


NVP SOLAR: Creditors Must File Claims by January 18
---------------------------------------------------
Creditors of LLC NVP Solar (code EDRPOU 33194239) have until
Jan. 18 to submit written proofs of claim to:

         V. Tyschenko
         Bliuhera Str. 11
         Kyiv Region
         Ukraine

The Economic Court of Kyiv commenced bankruptcy proceeding
against the company on Dec. 15, 2006, after finding it
insolvent.  The case is docketed under Case No. 24/874-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC NVP Solar
         Bliuhera Str. 11
         Kyiv Region
         Ukraine


TECO-BUD LLC: Creditors Must File Claims by January 18
------------------------------------------------------
Creditors of LLC Teco-Bud (code EDRPOU 33194354) have until
Jan. 18 to submit written proofs of claim to:

         O. Ilyin
         LLC Teco-Bud
         Degtiarevskaya 31
         Kyiv Region
         Ukraine
         
The Economic Court of Kyiv commenced bankruptcy proceeding
against the company on Dec. 15, 2006, after finding it
insolvent.  The case is docketed under Case No. 24/876-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Teco-Bud
         Degtiarevskaya 31
         Kyiv Region
         Ukraine


TH DISKONTI: Creditors Must File Claims by January 18
-----------------------------------------------------
Creditors of LLC TH Diskonti (code EDRPOU 33194202) have until
Jan. 18 to submit written proofs of claim to:

         P. Gavriliuka, Liquidator
         Bliuhera Str. 11
         Kyiv Region
         Ukraine
         
The Economic Court of Kyiv commenced bankruptcy proceeding
against the company on Dec. 15, 2006, after finding it
insolvent.  The case is docketed under Case No. 24/875-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC TH Diskonti
         Bliuhera Str. 11
         Kyiv Region
         Ukraine


YABLUNEVE CJSC: Creditors Must File Claims by January 18
--------------------------------------------------------
Creditors of CJSC Yabluneve (code EDRPOU 31214588) have until
Jan. 18 to submit written proofs of claim to:

         Sergey Zozulya, Liquidator
         Shevchenko Boulevard 250
         Cherkassy Region
         Ukraine

The Economic Court of Cherkassy Region commenced bankruptcy
proceeding against the company on Nov. 20, 2006, after finding
it insolvent.  The case is docketed under Case No. 10/5499.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         CJSC Yabluneve
         Gladkovschina  
         Zolotonosha District
         19720 Cherkassy Region
         Ukraine


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


ADVANCED MARKETING: Organizational Meeting Scheduled for Friday
---------------------------------------------------------------
The U.S. Trustee for Region 3 will hold an organizational
meeting to appoint an official committee of unsecured creditors
in Advanced Marketing Services, Inc. and its debtor-affiliates'
chapter 11 cases at 10:00 a.m., on Friday, Jan. 12, 2006, at the
Double Tree Hotel, 700 King Street, Salon L in Wilmington,
Delaware.

The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.  The
meeting is not the meeting of creditors pursuant to Section 341
of the Bankruptcy Code.  However, a representative of the
Debtors will attend and provide background information regarding
the cases.

Creditors interested in serving on a Committee should complete
and return to the U.S. Trustee a statement indicating their
willingness to serve on an official committee.

Official creditors' committees, constituted under Section 1102
of the Bankruptcy Code, ordinarily consist of the seven largest
creditors who are willing to serve on a committee.  In some
Chapter 11 cases, the U.S. Trustee is persuaded to appoint
multiple creditors' committees.

Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtors' expense.  They may investigate the Debtors' business
and financial affairs.  Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest.  If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee.  If the
Committee concludes that the reorganization of the Debtors is
impossible, the Committee will urge the Bankruptcy Court to
convert the Chapter 11 cases to a liquidation proceeding.

Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized  
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry.  The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors.  When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than $100 million.  The Debtors' exclusive
period to file a chapter 11 plan expires on Apr. 28, 2007.


AKER KVAERNER: Inks US$105-Mln Power Plant Upgrade Deal in Ohio
---------------------------------------------------------------
Aker Kvaerner signed a US$105-million contract to upgrade the
Kyger Creek power plant in Ohio, Aftenposten English reports.

Aker Kvaerner will build a sulfur dioxide removal facility at
the power plant.  The contract is Aker Kvaerner's third of its
type in the U.S. power market in the last five years,
Aftenposten relates.  The company expects to complete the
project in 2009.

"The market for power stations with different energy sources is
growing quickly in the U.S.A., Torbjorn Andersen, Aker Kvaerner
Information Director, said.  "The focus on environmentally
friendly technology is growing, and the possibilities for
further activity are good."

                       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, 2006, 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.


ARROW ELECTRONICS: Highlights Business Achievements in 2006
-----------------------------------------------------------
Arrow Electronics marks 2006 a year of significant progress for
the company.  This is evident through the achievements and
milestones in all aspects of the business worldwide.  Arrow
expanded geographically and in key vertical markets.

The 2006 timeline highlights some of those achievements:

* January

   -- named "Distributor of the Year" in Denmark by the Elisa
      Group, a consortium of leading Danish electronics
      Manufacturers.

* February

   -- elected Richard S. Hill to the board of directors;

   -- named one of Fortune's Most Admired Companies for the
      sixth consecutive year;

   -- reported strong fourth quarter results and annual sales at
      highest levels in five years;

   -- acquired SKYDATA, a value-added distributor of data
      storage solutions in Canada; and

   -- created a new industry lighting group to support the
      growing end-user market for lighting technology solutions.

* March

   -- dedicated the new lobby at corporate headquarters to the
      victims of the 1980 fire; and

   -- named Peter T. Kong as president, Arrow Asia/Pacific.

* April

   -- reported year-over-year net income growth of 43 percent
      and the 13th consecutive quarter of year-over-year sales
      growth;

   -- created a software group in enterprise computing to
      support new market opportunities.

* May

   -- elected William E. Mitchell as chairman of the board and
      Daniel W. Duval became lead director;

   -- formed a new industrial group dedicated to serving the
      needs of manufacturers in the industrial market.

* June

   -- named one of the "Most Preferred International
      Distributors" in China in Electronics Supply &
      Manufacturing - China (ESMC) customer survey.

* July

   -- reported net income advanced 59 percent over prior year;
      record second quarter sales and earnings in excess of
      expectations;

   -- opened new office in Pune, India, one of the fastest
      growing markets in Asia Pacific.

* August

   -- launched Voice of the Supplier workshop in North America

   -- Received top ranking in annual ESMC Distributor Customer
      Preference Study in China;

* September

   -- ranked as "Top Specialty Distributor" in Computer Reseller
      News (CRN) sourcing study in North America;

   -- named Michael J. Long as president, Arrow Global
      Components;

   -- named Philippe Combes as president, Arrow EMEASA and
      Germano Fanelli as chairman, Arrow EMEASA;

   -- named Vincent Melvin as chief information officer.

* October

   -- recognized by InformationWeek as one of the most
      innovative companies of information technology;

   -- reported net income soared 35 percent.

* November

   -- acquired Alternative Technology, a U.S. distributor of
      enterprise computing solutions

   -- named number one "Most Sourced Specialty Distributor" by
      CRN;

   -- ranked first by customers in both Asia and China in EDN's
      Worldwide Semiconductor and IC Brand Study;

* December

   -- acquired the storage and security distribution business of
      InTechnology plc. in the United Kingdom;

   -- appointed M. Catherine Morris and Kevin Gilroy to the
      Arrow Enterprise Computing Solutions (ECS) Office of the
      President

   -- contributed US$125,000 to 11 nonprofit organizations to
      help bring holiday cheer to local communities

                     About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- provides products, services and  
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.   

In Europe, the company operates in France, Spain, Portugal,
Denmark, Estonia, Finland, Great Britain, Ireland, Latvia,
Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland,
Belgium, the Netherlands and the U.K.

                          *     *     *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The Company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.   The rating
outlook is positive.


AVISTAR COMMS: Inks New US$10-Million Revolving Credit Facility
---------------------------------------------------------------
Avistar Communications Corp. signed a US$10 million dollar
revolving credit facility with a major financial institution.

This new facility provides for up to US$10 million in debt
financing to be used to fund business operations, and has an
initial term through December 2007.  The credit facility is
subject to customary terms and conditions, including several
reporting and non-financial covenants.

"With this revolving credit facility in place, Avistar
Communications Corporation has additional financial flexibility
to take advantage of opportunities in the video collaboration
marketplace in 2007," stated Robert J. Habig, Chief Financial
Officer of Avistar.

The credit facility is secured by the grant of a security
interest in all of Avistar's assets, tangible and intangible.  
The facility is also supported by a personal collateralized
guaranty from Gerald J. Burnett, Chairman and Chief Executive
Officer of Avistar, increasing the accessibility of the line.

Avistar Communications Corporation (NASDAQ: AVSR)
-- http://www.avistar.com/-- develops, markets, and supports a  
video collaboration platform for the enterprise, all powered by
the AvistarVOS(TM) software.  Founded in 1993, Avistar is
headquartered in Redwood Shores, California, with sales offices
in New York and London.

Collaboration Properties, Inc. (CPI), a wholly owned subsidiary
of Avistar, holds a current portfolio of 71 patents for
inventions in the primary areas of video and network technology.  
CPI pursues patents for presence-based interactions, desktop
video, recorded and live media at the desktop, multimedia
documents, data sharing, and a rich-service network video
architecture that supports Avistar's product suite and
customers.  CPI offers licenses to its patent portfolio and
Avistar's video-enabling technologies to companies in the video
conferencing, rich-media services, public networking, and
related industries.

At Sept. 30, 2006, Avistar Communications' balance sheet showed
a total stockholders' deficit of US$7,303,000, compared to a
deficit of US$4,158,000 at Dec. 31, 2005.


BALDOR ELECTRIC: S&P Assigns BB- Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Rating Services assigned its 'BB-' corporate
credit rating to Fort Smith, Ark.-based Baldor Electric Co.

At the same time, Standard & Poor's assigned its 'BB' bank loan
ratings and recovery ratings of '1' to the company's proposed
US$1-billion seven-year, senior secured term loan and US$200-
million five-year revolving credit facility, indicating the
expectation of full recovery of principal (100%) in the event of
a payment default.  Also, the company's proposed US$550 million
10-year senior unsecured notes were rated 'B' and the proposed
US$150-million three-year mandatory redeemable preferred stock
was rated 'B-'.  

The rating on the preferred stock applies to the company's
obligation to service the preferred stock until conversion, as
well as its obligation to issue common shares under the
conversion terms.  The rating does not pertain to the safety of
principal.  The preferred stock value depends on the market
value of the company's common shares, and is not addressed by
the credit rating.

Proceeds from the financing will be used to acquire the Power
Systems business from Rockwell Automation (A/Stable/A-1) and to
refinance existing debt.  Total balance sheet debt following the
transaction will be approximately US$1.55 billion.  

"The ratings reflect Baldor's aggressive financial profile
following the proposed acquisition of Rockwell Automation's
Power Systems business and the highly competitive and cyclical
industry in which the company operates.  This is somewhat offset
by the company's leading share in the domestic industrial
electric motors market and good operating margins," said
Standard & Poor's credit analyst Dan Picciotto.

Following the acquisition, Baldor Electric will design and
manufacture motors (around 63% of sales), power transmission
systems (28%), drives (6%), and generators (3%).  The company
will have leading domestic share in the industrial electric
motor market offered under the Baldor and Reliance brands.


COLLINS & AIKMAN: Has Until March 14 to Decide on Becker Leases
----------------------------------------------------------------
The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for
the Eastern District of Michigan extends the time within which
Collins & Aikman Corp. and its debtor-affiliates must assume,
assume and assign or reject unexpired leases of non-residential
real property with Becker Properties LLC and Anchor Court LLC
through and including March 14, 2007.

As reported in the Troubled Company Reporter on Dec. 5, 2006,
the Leases are:

   -- 6600 East Fifteen Mile Road, Sterling Heights, Michigan;
   -- 1601 Clark Road, Havre de Grace, Maryland; and
   -- 47785 West Anchor Court, Plymouth, Michigan.

The Debtors will be unable to determine whether to assume or
reject the Leases until they have selected the highest and best
offer for the contemplated sale of all or part of their
businesses.

Without the extension, the Debtors will be at risk of assuming
the Leases that the selected purchaser might deem unnecessary or
impractical, or rejecting the Leases that the purchaser might
deem essential to the operations of the Debtors' businesses.  
Thus, it would make no economic or practical sense to compel the
Debtors to assume or reject the Leases at this time.

In addition, Becker and Anchor Court are not damaged by the
Debtors' continued occupation of the properties covered by the
Leases.  As of Nov. 29, 2006, the Debtors are complying with
their postpetition obligations related to the Leases on a timely
basis.

Moreover, maintenance of the Leases is essential to the Debtors'
continued operations without further complicating the Debtors'
ability to confirm a plan in their Chapter 11 cases.

The Debtors reserve their right to seek further extensions of
the Lease Decision Period.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in  
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 48;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


COLLINS & AIKMAN: Can File ASC Inc. License Pact Under Seal
-----------------------------------------------------------
The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for
the Eastern District of Michigan authorized Collins & Aikman
Corp. and its debtor-affiliates to file under seal a settlement
and license agreement between Dura Convertible Systems Inc. and
ASC Incorporated resolving litigation between them.

Dura Convertible is Collins & Aikman's debtor-affiliate.

As reported in the Troubled Company Reporter on Dec. 20, 2006,
ASC commenced on March 30, 2006, Adversary Proceeding No.
06-04507 in the Bankruptcy Court against Dura.  The ASC
Complaint alleged four counts of patent infringement relating to
convertible tops produced by Dura for the Dodge Viper and Ford
Mustang.  Specifically, the ASC Complaint alleged infringement
of:

   (a) U.S. Reissue Patent No. RE38,546;
   (b) U.S. Design Patent No. D442,541;
   (c) U.S. Design Patent No. D464,605 and
   (d) U.S. Patent No. 5,785,375.

Dura filed its answer to the ASC Complaint on June 21, 2006, and
asserted counterclaims seeking declaratory judgments of non-
infringement and invalidity of the ASC Patents.

The Bankruptcy Court held an initial scheduling conference on
Aug. 14, 2006.  The triable issues of (a) liability and (b)
damages were bifurcated and the Court entered an order setting a
trial date of Jan. 9, 2007, on the issue of liability.

The parties have each served discovery requests on the issues of
liability and damages.  To alleviate the potential costs to the
Debtors' estates, Dura requested that the discovery process be
bifurcated as well, however, this request was denied.  Dura
produced hundreds of thousands of documents and responded to
ASC's written discovery.  On the verge of spending exorbitant
sums to conduct discovery, the Parties agreed to a stay of
discovery as they pursue a settlement.

Dura and ASC have engaged in significant negotiations to resolve
the ASC Lawsuit.  Dura and ASC have agreed to resolve the ASC
Lawsuit pursuant to the terms and conditions in the Settlement.

The Settlement provided, among other things, that Dura will have
a license to the ASC Patents for the Ford Mustang and Dodge
Viper convertible roof assemblies.  The Settlement also allows
for the assignment of the license for the ASC Patents to a
potential purchaser.

The Debtors also agree to pay for a royalty fee, which is far
less than the royalty fee that would likely be determined in the
event that ASC were to prevail in the ASC Lawsuit.

The Ford Mustang and Dodge Viper convertible roof systems can
continue to be manufactured and sold at a profit by Dura after
paying the royalty fee to ASC.

Outside of the bankruptcy process, the information contained in  
the Settlement generally is held to be confidential because,  
otherwise, Dura and ASC believe would be competitively  
disadvantaged in the operation of their businesses by the  
disclosure of the information.

The ASC licenses the ASC Patents for use by Dura in the
production and sale of convertible roof systems for the Ford
Mustang and Dodge Viper.  If the competitors of Dura or ASC knew
the terms of the Settlement, it could provide them with a
competitive advantage in their dealings with ASC or Dura, as the
case may be.  Further, if Dura's customers were aware of the
terms of the Settlement, it could provide them with a
competitive advantage in negotiating agreements with Dura.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in  
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 48;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


DURA AUTOMOTIVE: Taps Miller Buckfire as Investment Banker
----------------------------------------------------------
DURA Automotive Systems Inc. and its debtor affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ Miller Buckfire & Co., LLC, as their
investment banker.

Miller Buckfire is an independent firm that provides strategic
and financial advisory services in large-scale corporate
restructuring transactions.  The firm is owned and controlled by
Henry S. Miller and Kenneth A. Buckfire and by the employees of
Miller Buckfire.  Miller Buckfire currently has approximately 45
employees, many of whom were employees of the Financial
Restructuring Group of Dresdner Kleinwort Wasserstein, Inc.,
before July 16, 2002.  The firm's professionals are providing or
have provided financial advisory, investment banking, and other
services in connection with the restructuring of, among others:

    -- Acterna Corporation,
    -- Allied Holdings, Inc.,
    -- Aurora Foods, Inc.,
    -- Burlington Industries,
    -- Calpine Corporation,
    -- Dana Corporation,
    -- Delta Air Lines, Inc.,
    -- Dow Corning Corporation,
    -- EaglePicher Holdings, Inc.,
    -- Exide Technologies,
    -- FLYi, Inc.,
    -- Foamex International,
    -- Interstate Bakeries Corporation,
    -- Kmart Corporation,
    -- Loewen Group,
    -- McLeodUSA,
    -- Mirant Corp.,
    -- Pegasus Satellite Communications,
    -- PSINet,
    -- Polaroid Corporation,
    -- The Spiegel Group, and
    -- TECO Energy

Keith Marchiando, chief financial officer, relates that the
Debtors employed Miller Buckfire in early August 2006.  Since
that time, the firm, among others, has:

   (a) analyzed the Debtors' current liquidity and projected
       cash flow;

   (b) assisted the Debtors in evaluating their restructuring
       alternatives; and

   (c) conducted a comprehensive process to secure debtor-in-
       possession financing for the Debtors on the most
       competitive terms and conditions available on the
       Debtors' behalf.

As a result, Miller Buckfire acquired significant knowledge of
the Debtors and their businesses and is now intimately familiar
with the Debtors' financial affairs, debt structure, operations
and related matters, Mr. Marchiando says.

Pursuant to an engagement letter dated Aug. 2, 2006, at the
request and direction of the Debtors, Miller Buckfire will:

   (a) advise and assist the Debtors in structuring and
       effectuating the financial aspects of any restructuring
       or sale transactions proposed to be undertaken by the
       Debtors;

   (b) if applicable, identify, solicit, and negotiate with
       potential lenders or investors in connection with any
       financing or potential acquirers in connection with any
       sale;

   (c) provide financial advice and assistance to the Debtors in
       developing and seeking approval of a restructuring plan,
       including participating in negotiations with entities or
       groups affected by the plan; and

   (d) participate in hearings before the Court with respect to
       the matters upon which Miller Buckfire has provided
       advice, including, as relevant, coordinating with the
       Debtors' counsel with respect to testimony in connection
       with its work.

In a separate application, the Debtors also wish to employ Glass
& Associates, Inc., as their financial advisors.  The Debtors
believe the two firms will not duplicate the services of each
other because they will be performing unique functions.

According to the Debtors, Miller Buckfire will focus on
structuring, evaluating, and assisting the consummation of a
financial restructuring and any related financings and sale
transactions, while Glass will focus on evaluating, overseeing,
and assisting the Debtors in the financial aspects of its
operational restructuring.  "In short, Miller Buckfire will
carry out distinct functions and will use reasonable efforts to
coordinate with the Debtors' other retained professionals to
avoid the unnecessary duplication of services," Mr. Marchiando
says.

The Debtors will pay Miller Buckfire:

   -- a US$200,000 monthly advisory fee; provided that 50% of
      the amount of any Monthly Advisory Fee in excess of
      US$800,000 (four months of Monthly Advisory Fees) paid to
      Miller Buckfire will be credited to the extent actually
      paid against any Restructuring Transaction Fee payable to
      Miller Buckfire;

   -- a US$6,700,000 Restructuring Transaction Fee, after taking
      account for a credit for 50% of the DIP Financing Fee paid
      to Miller Buckfire before the Petition Date, if the
      Debtors consummate a Restructuring Transaction;

   -- a Sale Transaction Fee of 1% of the Aggregate
      Consideration, if the Debtors consummate a Sale
      Transaction; and

   -- a Financing Fee of 3% of the gross proceeds of any
      indebtedness issued that is unsecured or subordinated, and
      5% of the gross proceeds of any equity or equity-linked
      securities or obligations issued, if the Debtors
      consummate any Financing Transaction.

The Debtors will reimburse the firm for all reasonable out-of-
pocket expenses.

Mr. Marchiando says the Fee Structure is consistent with Miller
Buckfire's normal and customary billing practices for comparably
sized and complex cases.  The Debtors compared Miller Buckfire's
proposed fees with other proposals received and the range of
investment banking fees in other large and complex Chapter 11
cases.  In both cases, the Debtors found Miller Buckfire's
proposed fees to be reasonable and within the range of other
comparable transactions.

The firm will file interim and final fee applications with the
Court.  Although Miller Buckfire does not charge for its
services on an hourly basis, Miller Buckfire will maintain time
records in half-hour increments.

Before their bankruptcy filing, the Debtors paid Miller Buckfire
$2,600,000 for fees and an expense reimbursement of US$25,061.  
The firm holds a US$500,000 retainer for fees and expenses.  As
of the date of filing for chapter 11 protection, Miller Buckfire
did not hold a prepetition claim against the Debtors for
services rendered.

Marc D. Puntus, a managing director at Miller Buckfire & Co.,
LLC, relates the Court that neither he nor Miller Buckfire nor
any of its professional employees have any connection with the
Debtors, their creditors, the U.S. Trustee or any other
potential parties-in-interest in the Debtors' cases, or their
attorneys and accountants, except in some circumstances
including:

   (a) prior to the Petition Date, Miller Buckfire's
       professionals performed services for the Debtors;

   (b) Miller Buckfire may have performed services to certain
       of the Debtors' creditors in matters unrelated to the
       Chapter 11 cases, including but not limited to affiliates
       of JPMorgan Chase Bank, N.A., Citibank, N.A., Bank of
       America, N.A., Wells Fargo Foothill, LLC, Credit Suisse
       Group, among others;

   (c) from time to time, Miller Buckfire also may have had
       dealings on other unrelated matters with some of the
       other professionals who are providing, or are expected to
       provide, services in the Debtors' cases, including,
       without limitation:

       * Kirkland & Ellis LLP -- the Debtors' proposed counsel,

       * Glass & Associates, Inc. -- the Debtors' proposed
         turnaround consulting firm,

       * Bingham McCutchen LLP -- counsel to certain prepetition
         second lien lenders,

       * Lazard Ltd. -- advisors to counsel to certain
         prepetition second lien lenders,

       * The Blackstone Group -- advisors to the senior
         noteholders, and

       * Fried Frank Harris Shriver & Jacobson LLP -- counsel to
         the senior noteholders

"Miller Buckfire and the employees of Miller Buckfire who will
work on [the] engagement do not hold or represent any interest
adverse to the Debtors or their estates, and Miller Buckfire is
a 'disinterested person' as that term is defined in Section
101(14) of the Bankruptcy Code, as modified by Section 1107(b)
of the Bankruptcy Code," Mr. Puntus assures the Court.

                      About the Company

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent   
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed
DURA Automotive Systems, Inc. and its debtor affiliates to
employ Kurtzman Carson Consultants, LLC, as their notice, claims
and balloting agent.

The Debtors have approximately 84,000 potential creditors.  The
office of the Clerk of the Bankruptcy Court for the District of
Delaware is not equipped to efficiently and effectively serve
notice on the large number of creditors and parties-in-interest
and administer claims during the Debtors' Chapter 11 cases.  
"The sheer size and magnitude of the Debtors' creditor body
makes it impracticable for the Clerk's Office to undertake
that task," Keith Marchiando, chief financial officer, says.

Kurtzman Carson is expected to:

   (a) prepare and serve required notices in the Debtors'
       Chapter 11 cases:

          * a notice of the commencement of the Reorganization
            Cases and the initial meeting of creditors under
            Section 341(a) of the Bankruptcy Code;

          * a notice of the claims bar date;

          * notices of objections to claims;

          * notices of any hearings on a disclosure statement
            and confirmation of a plan or plans of
            reorganization; and

          * other miscellaneous notices as the Debtors or the
            Court may deem necessary or appropriate for an
            orderly administration of the Debtors' Chapter 11
            cases;

   (b) within three business days after the service of a
       particular notice, prepare for filing with the Clerk's
       Office a certificate or affidavit of service that
       includes an alphabetical list of persons on whom the
       notice was served, along with their addresses, and the
       date and manner of service;

   (c) maintain copies of all proofs of claim and proofs of
       interest filed;

   (d) maintain official claims registers by docketing all
       proofs of claim and proofs of interest in a claims
       database that includes this information for each claim or
       interest asserted:

          * the name and address of the claimant or interest
            holder and any agent thereof, if the proof of claim
            or proof of interest was filed by an agent;

          * the date the proof of claim or proof of interest was
            received by Kurtzman and the Court;

          * the claim number assigned to the proof of claim or
            proof of interest; and

          * the asserted amount and classification of the claim;

   (e) implement necessary security measures to ensure the
       completeness and integrity of the claims registers;

   (f) transmit to the Clerk's Office a copy of the claims
       registers on a weekly basis unless requested more or less
       frequently by the Clerk's Office;

   (g) maintain an up-to-date mailing list for all entities that
       have filed proofs of claim or proofs of interest and make
       that list available upon request to the Clerk's Office or
       any party-in-interest;

   (h) provide access to the public for examination of copies of
       the proofs of claim or proofs of interest filed without
       charge during regular business hours;

   (i) record all transfers of claims pursuant to Rule 3001(e)
       of the Federal Rules of Bankruptcy Procedure and, if
       directed by the Court, provide notice of those transfers
       as required by Bankruptcy Rule 3001(e);

   (j) comply with applicable federal, state, municipal, and
       local statutes, ordinances, rules, regulations, orders,
       and other requirements;

   (k) provide temporary employees to process claims as
       necessary;

   (l) promptly comply with further conditions and requirements
       as the Clerk's Office or the Court may at any time
       prescribe;

   (m) provide other claims processing, noticing, balloting, and
       related administrative services as may be requested from
       time to time by the Debtors; and

   (n) act as balloting agent, which may include some or all of
       these services:

          * printing of ballots, including the printing of
            creditor and shareholder specific ballots;

          * preparing voting reports by plan class, creditor, or
            shareholder and amount for review and approval by
            the client and its counsel;

          * coordinating the mailing of ballots, disclosure
            statement, and plan of reorganization to all voting
            and non-voting parties, and provide affidavit of
            service;

          * establishing a toll-free "800" number to receive
            questions regarding voting on the plan; and

          * receiving ballots at a post office box, inspecting
            ballots for conformity to voting procedures, date
            stamping and numbering ballots consecutively, and
            tabulating and certifying the results.

In addition, at the Debtors' request, Kurtzman will assist the
Debtors with, among other things:

   (1) preparing and mailing customized proofs of claim to the
       creditors listed on the Debtors' Schedules of
       Liabilities,

   (2) preparing, mailing, and tabulating ballots of certain
       creditors for the purpose of voting to accept or reject
       the plan or plans of reorganization; and

   (3) any other additional services requested by the Debtors.

Kurtzman will bill:

   Professional                                    Hourly Rate
   ------------                                    -----------
   Clerical -- data input                         US$40 - US$65

   Project Specialist -- document management
   and case administration                        US$75 - US$115

   Consultant -- general consulting;
   document and data review                      US$125 - US$210

   Senior Consultant -- general consulting;
   document and data review                      US$225 - US$250

   Technology and Programming Consultant
   -- KCC Case View maintenance and support      US$115 - US$195

The firm will send copies of its monthly invoices to the United
States Trustee.

With its appointment as notice, claims and balloting agent,
Kurtzman:

    -- is not and will not be employed by any federal or state
       agency and will not seek any compensation from the
       Government;

    -- by accepting employment in the Debtors' cases, waives any
       right to receive compensation from the Government;

    -- is not an agent of the Government and is not acting on
       behalf of the Government;

    -- will not misrepresent any fact to the public; and

    -- will not employ any past or present employees of the
       Debtors for work involving the Chapter 11 cases.

Eric Kurtzman, chief executive officer of Kurtzman Carson
Consultants LLC, assures the Court that to the best of his
knowledge, the officers and employees of his firm:

   (a) do not have any adverse connection with the Debtors, the
       Debtors' creditors or any other party-in-interest or
       their attorneys and accountants, the United States
       Trustee, or any person employed by the office of the U.S.
       Trustee; and

   (b) do not hold or represent an interest adverse to the
       Debtors' estates.

Mr. Kurtzman attests that his firm is a "disinterested person"
as that term is defined in Section 101(14) of the Bankruptcy
Code, as modified by Section 1107(b).

Prior to the Debtors' bankruptcy filing, Kurtzman performed
certain professional services for the Debtors.  The Debtors
provided the firm with a US$100,000 advance payment retainer.  
Mr. Marchiando states the Debtors do not owe Kurtzman any amount
for services performed or expenses incurred prior to the
Petition Date.

Kurtzman's original Retention Agreement provided for limitations
of liability and indemnification.  The Court, however, modified
the Retention Agreement to remove that provision.

A full-text copy of Kurtzman's Fee Structure is available for
free at http://ResearchArchives.com/t/s?17d6

                      About the Company

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent   
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Wants to Pay US$1.1-Mln Prepetition Tax Claims
---------------------------------------------------------------
DURA Automotive Systems, Inc. and its debtor affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to pay, in their sole discretion, the undisputed
prepetition claims of certain governmental units in respect to
real and personal property taxes in an aggregate amount not to
exceed US$1,100,000.

The Debtors further request that all their banks and other
financial institutions be authorized and directed, upon their
request, to receive, process, honor and pay any and all checks
drawn on their accounts to pay the Prepetition Property Tax
Claims.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that the Debtors own real
and personal property in at least 12 U.S. states and Canadian
provinces.  Under applicable law, state, provincial, and local
governments in the jurisdictions where the properties are
located are granted the authority to levy taxes against the real
and personal property.

The Debtors typically pay taxes on their Owned Properties in the
ordinary course as the taxes are invoiced, which typically
covers taxes for the prior year, or quarter, depending on how
the applicable tax is assessed.  Thus, as of the bankruptcy
filing date, the Debtors owed taxes that accrued with respect to
the Owned Properties for some portions of the 2006 calendar
year.

Mr. DeFranceschi tells the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware, that while the
Bankruptcy Code does not require the Debtors to pay the Property
Taxes at this time, nonpayment or late payment of certain
prepetition Property Taxes will, among others:

   (i) likely subject the Debtors to above-market interest rates
       and penalties in certain circumstances;

  (ii) cause Taxing Authorities' county or municipal to suffer a
       significant gross revenue cutback, in turn leading to
       reduced funding of public schools, fire and police
       departments, and other municipal services from which the
       Debtors and their employees enjoy the benefits;

(iii) unnecessarily divert the Debtors' attention away from the
       operations of their businesses and the reorganization
       process in the event the Taxing Authorities would cause
       the Debtors to be audited; and

  (iv) result in the creation of statutory liens on the Owned
       Properties, which creation and perfection does not
       violate the automatic stay under Section 362 of the
       Bankruptcy Code.

                      About the Company

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent   
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


FORD MOTOR: Strong Brazilian Ops Spurs Group to Invest US$1 Bln
---------------------------------------------------------------
Ford Motor Co. will invest around US$1 billion into its
Brazilian operations until 2011, BBC News reports.

The investment will cover:

   -- product development plans,
   -- Sao Paulo site expansion, and
   -- acquisition of off-road vehicle firm Troller.

The company, which commenced takeover talks with Troller in
November, did not disclose the final acquisition price, BBC
relays.

Dominic Di Marco, Ford's top honcho in Canada and South America,
said the company is confident in Brazil, BBC says.  The company
increased its market share in Brazil despite a sluggish sales
performance in the U.S.

                      About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and  
distributes automobiles in 200 markets across six continents.  
With more than 324,000 employees worldwide, the company's core
and affiliated automotive brands include Aston Martin, Ford,
Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo.  Its
automotive-related services include Ford Motor Credit Company
and The Hertz Corporation.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 13,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.


INCO LTD: Completes Merger with Itabira Canada
----------------------------------------------
CVRD Inco Limited fka Inco Limited completed the amalgamation of
Inco Limited and Itabira Canada Inc., a wholly owned subsidiary
of Companhia Vale do Rio Doce, to continue as "CVRD Inco
Limited".  As a result of the amalgamation, CVRD now owns 100%
of the common shares of CVRD Inco.

Under the amalgamation, which was effective on Jan. 4, 2007,
holders of Inco Limited common shares (other than dissenting
shareholders and affiliates of CVRD) received, for each such
share held by them, one Class A redeemable preferred share of
CVRD Inco.  The Class A redeemable preferred shares were then
redeemed for CDN$86 per share in cash, the same price paid under
CVRD's successful take-over bid for Inco Limited in October
2006.  

                          Delisting

Inco Limited's common shares were delisted from the Toronto
Stock Exchange at the close of trading Friday, Jan. 5, and will
no longer be traded on any stock exchange.  CVRD Inco has
applied to cease to be a reporting issuer under Canadian
securities laws and has suspended its reporting obligations
under United States securities laws.  

Former holders of Inco Limited common shares can obtain more
information regarding how to obtain the cash payable to them in
connection with the redemption of their shares in the meeting
materials relating to the special meeting of shareholders held
on Jan. 3, 2007.  These meeting materials are available on the
Inco Limited Web site at http://www.inco.com/

Former Inco Limited registered shareholders with any questions
or requests for assistance in surrendering their certificates
may contact Computershare Investor Services Inc. by telephone
toll free in North America at 1-866-612-8058 or overseas at 1-
514-982-7555.

                    Stockholders' Approval

As previously reported in the Troubled Company Reporter, Inco
Limited's shareholders overwhelmingly approved the amalgamation
of Inco with Itabira Canada.

                      About the Company

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

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


INTELSAT LTD: Subsidiary to Redeem US$1 Billion Senior Notes
------------------------------------------------------------
Intelsat Subsidiary Holding Co. Ltd., an Intelsat Ltd.
subsidiary, intends to redeem all of its outstanding US$1
billion Floating Rate Senior Notes due 2012.

Intelsat Subsidiary has issued a notice of redemption pursuant
to the indenture for the Notes stating that it intends to redeem
all of the Notes on Feb. 2, 2007 at a redemption price equal to
101% of the principal amount of the Notes plus accrued and
unpaid interest thereon to the Redemption Date.

The redemption of the Notes is conditioned upon Intelsat
Subsidiary Holding Company, Ltd. receiving sufficient funds on
the Redemption Date from a term loan borrowing by its parent
Intelsat (Bermuda), Ltd.

The term loan borrowing is expected to be made pursuant to a new
unsecured credit agreement that Intelsat (Bermuda), Ltd. intends
to enter into to fund the Redemption Payment, which borrowing
will be guaranteed by Intelsat Subsidiary Holding Company, Ltd.
and the same subsidiaries of Intelsat Subsidiary Holding
Company, Ltd. that guarantee the Notes.

Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony,    
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.

                           *     *     *

Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat.
The ratings were also removed from Rating Watch Negative, where
they had originally been placed on Aug. 30, 2005.  Fitch said
the Rating Outlook is Stable.

Moody's Investors Service affirmed the B2 corporate family
rating of Intelsat, Ltd., and downgraded the corporate family
rating of PanAmSat Corporation to B2, given the greater clarity
regarding the final capital structure and the near-term
completion of the PanAmSat acquisition by Intelsat.


LAMBDA FINANCE: S&P Puts Low-B Ratings on Six Note Classes
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the GBP3.43-billion (Equivalent) secured
floating-rate notes (Gracechurch Corporate Loans Series 2007-1)
to be issued by Lambda Finance B.V., a special purpose entity.  
At the same time, Lambda Finance will issue GBP70 million of
unrated class G notes.

The transaction is a fully funded synthetic balance sheet CLO,
referencing a GBP3.5-billion portfolio of bank loans granted by
Barclays Bank PLC to U.K. SMEs, to which Barclays Bank will
retain an exposure of more than GBP1.7 billion.  The transaction
aims to provide regulatory and economic capital relief to
Barclays Bank.

At closing, Barclays Bank will enter into a portfolio CDS with
the issuer, under which the issuer will sell credit protection
to Barclays Bank on the portfolio of bank loans to borrowers in
the U.K.

In turn, Lambda Finance will issue secured floating-rate notes
in various currencies and invest the proceeds in a British pound
sterling cash deposit account with Barclays Bank.  The issuer
will enter into several cross-currency swaps with Barclays Bank
to exchange the non-sterling issuance proceeds into
sterling.  The proceeds will be exchanged back before redemption
at an identical exchange rate.

This is Barclays Bank's third CLO of SME loans.  The structure
resembles that of the previous transaction, Gracechurch
Corporate Loans Series 2005-1, which was also issued out of
Lambda Finance.

                          Ratings List
                       Lambda Finance B.V.
     GBP3.5-Billion (Equivalent) Secured Floating-Rate Notes          
           (Gracechurch Corporate Loans Series 2007-1)

                         Prelim.        Prelim.
          Class          rating         amount (Mil.)(1)
          -----          ------         ------
          A1             AAA            GBP2,905
          A2             AAA            EURTBD
          A3             AAA            US$TBD
          AB1            AAA            GBP175
          AB2            AAA            EURTBD
          AB3            AAA            US$TBD
          B1             AA+            GBP80.5
          B2             AA+            EURTBD
          B3             AA+            US$TBD
          C1             A+             GBP94.5
          C2             A+             EURTBD
          C3             A+             US$TBD
          D1             BBB+           GBP59.5
          D2             BBB+           EURTBD
          D3             BBB+           US$TBD
          E1             BB+            GBP70
          E2             BB+            EURTBD   
          E3             BB+            US$TBD
          F1             B              GBP45.5
          F2             B              EURTBD
          F3             B              US$TBD
          G              NR             GBP70

   (1) The exact splits between each class of notes into pounds
       sterling, euros, and U.S. dollars will be determined at
       closing.  
    
       TBD-To be determined.  
       
       NR-Not rated.


LITTLE CHEF: Brings In PricewaterhouseCoopers as Administrator
--------------------------------------------------------------
Little Chef enters administration last week after attempts to
secure a buyer or refinance the business failed, BBC News
reports.

The roadside restaurant chain, which employs 4,000 workers,
appointed PricewaterhouseCoopers to wind up the business.

British private equity firm Rcapital and Israeli property firm
Arazim Investments bought 196 of Little Chef's 235 restaurants
for less than GBP10 million, BBC relays.

According to PwC joint administrator Ian Green, while it was
disappointing that efforts to save the group failed, he was
nonetheless "delighted" recent negotiations would see almost 200
Little Chef restaurants continue trading, BBC adds.

                      About Little Chef

Headquartered in Sheffield, England, Little Chef is a chain of
roadside restaurants in the United Kingdom, founded in 1958 and
owned since Oct. 20, 2005 by The People's Restaurant Group Ltd.,
a company belonging to British catering entrepreneurs Simon
Heath and Lawrence Wosskow.  


REFCO INC: Court Allows Ch. 11 Trustee to Modify Claims vs. RCM
---------------------------------------------------------------
U.S. Southern District of New York Judge Robert D. Drain
authorizes Marc S. Kirschner, the Chapter 11 Trustee for Refco
Capital Markets, Ltd., to establish and modify, from time to
time, the RCM claims reserve in an amount sufficient to reserve
adequate assets to satisfy the Allowed Claims against RCM.

In addition, Judge Drain:

   (a) allows, disallows and expunges, and classifies certain
       claims, as requested;

   (b) directs the RCM Trustee to effectuate netting and cross-
       margining arrangements on the proposed terms and
       conditions;

   (c) estimates at zero certain claims that are inconsistent,
       filed late, duplicative, and are subject to prior books
       and records objections;

   (d) directs the RCM Trustee to establish and fund the
       Disputed Claims Reserve; and

   (e) authorizes the RCM Trustee to make distributions to
       claims on certain terms and conditions as provided in the
       Distribution Motion.

            RCM Pre-Hearing Claims Resolution Process

At the Dec. 21, 2006, hearing on the RCM Trustee's request,
Timothy B. DeSieno, Esq., at Bingham McCutchen LLP, in New York,
informed the Court that the RCM Trustee and his advisors at
AlixPartners LLP and Bingham have worked round the clock for the
past three months to return to RCM creditors the maximum amount
of money in the shortest possible time.  Hundreds of claims have
been discussed and reviewed with creditors individually, and
many of those discussions have led to agreed claims resolutions.

In response to the Distribution Motion, 73 objections covering
187 claims were filed.  The objecting parties include:

   * Commonwealth Bank of Australia,
   * Russia Growth Fund, Ltd.,
   * Acies Asset Management,
   * North Hills LP,
   * Inversiones Financieras Del Sur S.A.,
   * Aracamba Israel Ltd.,
   * Invercapital International Ltd.,
   * Hain Capital Holdings, LLC,
   * Bradley C. Reifler,
   * Contrarian Capital Management, LLC,
   * Geshoa Structured Finance, Ltd.,
   * Corporex Investments, LLC,
   * Rovida Holdings Limited,
   * RR Investment Company,
   * Tone N. Grant,
   * James B. Rogers, Jr.,
   * Living Water Fund, L.P.,
   * Bear Stearns Investment Products Inc., and
   * PricewaterhouseCoopers, E.C., Inc.

Mr. DeSieno said the Objections have been sufficiently narrowed
and resolved to enable the proposed initial distribution.  
According to him:

   (a) creditors have agreed with the RCM Trustee's views of
       their claims;

   (b) creditors and the RCM Trustee have agreed on a portion of
       asserted claims, so distribution may be made, with the
       difference between the agreed portion and the asserted
       claim benefiting from a reserve;

   (c) creditors have agreed that the Distribution Motion may
       proceed without the need for any reserve for their claim
       at this time;

   (d) creditors did not object to the RCM Trustee's proposed
       treatment of their claims, and they have, thereby,
       effectively agreed to it; or

   (e) a creditor's claim is asserted not against RCM, but
       against another Debtor entity.

The RCM Trustee filed on Dec. 20, 2006, a revised exhibit of the
Claims subject to the Distribution Motion.  The revised exhibit
reflects agreements reached with some of the Claimants.

In many cases, the RCM Trustee has settled with a claimant as to
the classification and treatment of its claim.  Mr. DeSieno also
noted that the RCM Trustee received no objection to the proposed
treatment of a Partially Allowed RCM Securities Customer Claim
or Partially Allowed RCM FX/Unsecured Claim.

                 RCM Trustee Addresses Objections

According to Mr. DeSieno, the Objections raised identical
issues.

At the hearing, the RCM Trustee presented a consolidated reply
to the objecting parties' concerns:

   A. Creditors want to pursue claims in amounts higher than the
      RCM Trustee has agreed.

      Mr. DeSieno told the Court that it has always been the
      RCM Trustee's intention to preserve a creditor's right,
      even if the Court grants the Distribution Motion, to
      assert a higher claim amount than the RCM Trustee has
      agreed to.  The reserve provided for partially allowed RCM
      Securities Customer Claims and RCM FX/Unsecured Claims is
      in the amount of the claim, including the disputed
      portion.

   B. Objections challenging the 75% allowance and distribution
      scheme applicable to the Partially Allowed RCM Securities
      Customer Claims and Partially Allowed RCM FX/Unsecured
      Claims.

      Mr. DeSieno asserted the proposed treatment is far better
      than the normal treatment of disputed claims, which
      generally receive no distribution until the entire claim
      is finally resolved.  He explained that it is the RCM
      Trustee's business judgment as to those claims that
      material valuation differences may exist which could lead
      to a downward adjustment of the Resulting Securities
      Customer Claim, considering that most cases involved
      illiquid securities.

   C. Objections challenging the allowance and distribution
      scheme applicable to certain claims that contain
      insufficient documentation or are inconsistent with the
      Debtors' books and records.

      Mr. DeSieno informed the Court that only the dispute
      concerning claims filed by Mr. Rogers and Living Water
      Fund remain unresolved.

      Mr. Rogers asserted contingent and unliquidated
      contribution or indemnity claims against RCM and the other
      Debtors' estates.  Mr. Rogers' Claims arose out of
      transactions between Rogers Raw Materials Fund, L.P., and
      Rogers International Raw Materials, Fund, L.P., on one
      hand, and Refco, LLC, and RCM, on the other.

      In October 2005, the Rogers Funds commenced an adversary
      proceeding against RCM.  The Rogers Funds also filed a
      claim against Refco LLC, which was not named in the
      action.

      The Action was later resolved in accordance with the RCM
      Settlement Agreement.  Moreover, following a four-day
      trial of the Rogers Funds' claims against the Refco, LLC
      estate, Rogers Funds and Beeland Capital Management,
      L.L.C., settled and withdrew their claims against Refco
      LLC.  Beeland and its two officers also withdrew their
      Claims against RCM.

      As a result of the settlement, Mr. DeSieno pointed out
      that the Rogers Funds already possess the allowed
      US$30,000,000 claim against Refco LLC and allowed claims
      aggregating US$373,000,000 against RCM.  Mr. DeSieno noted
      that the Rogers Funds stand to receive a recovery in
      excess of 90%, plus a beneficial interest in the
      Litigation Trusts, which could substantially augment that
      recovery.

      Mr. DeSieno argued that the Rogers Claim should be
      disallowed in its entirety because permitting a recovery
      on the Rogers Claim would effect an impermissible double
      recovery.

      Additionally, Living Water Fund filed a proof a claim
      asserting that it had:

         (i) a US$227,670 unsecured non-priority claim based on
             its account balance at RCM as of the Petition Date;
             and

        (ii) a US$1,226,000 postpetition administrative claim
             based on RCM's alleged unlawful postpetition
             termination of Living Water Fund's Euro option
             contracts.

      The RCM Trustee acknowledges that Living Water Fund has a
      valid US$200,000 prepetition claim, and has offered to
      reserve a portion of the remainder of that claim.  As of
      Dec. 20, 2006, Living Water has declined to accept the
      RCM Trustee's reserve offer, Mr. DeSieno said.

      The RCM Trustee maintained that the Court should expunge
      and disallow Living Water Fund's claim.

           Establishment & Modification of RCM Reserve

"The RCM Trustee is authorized to, from time to time, modify the
RCM Reserve in an amount sufficient, in his reasonable business
judgment, in consultation with Alix Partners and his other
advisors, to reserve adequate assets to satisfy Allowed Claims
against RCM.  The RCM Trustee shall file a notice with the
Court notifying the Court of any such modification to the RCM
Reserve," Judge Drain says.

With respect to Related Claims aggregating US$2,679,458,644,
Judge Drain rules that each of the Claims constitutes, and will
be reclassified as, a Class 8 Related Claim under the Plan.  
However, allowance of each claim will be deferred at this time,
and no cash contribution will be made to the RCM Disputed Claims
Reserve on account of the claim.

With respect to the FXA Claims aggregating US$4,342,439 asserted
against RCM, Judge Drain rules that allowance of each claim will
be deferred at this time, and no cash contribution will be made
to the RCM Disputed Claims Reserve on account of that claim.

Judge Drain estimates Claim Nos. 10479 and 10491 filed by Mr.
Grant against RCM at US$0 for allowance, reserve and
distribution purposes.  The RCM Trustee will not be required to
reserve for any distributions on account of the Grant Claims.

Judge Drain also estimates the Rogers Claim at US$0.  The RCM
Trustee will not be required to reserve for any distributions on
account of the Rogers Claim.

Claim Nos. 10891 and 10892 filed by Leuthold Funds, Inc., and
Leuthold Industrial Metal Funds, L.P., against RCM will be
treated in accordance with a stipulation and agreed order
between the RCM Trustee and Leuthold.

To effect the Stipulation, Judge Drain authorizes HSBC Bank,
U.S.A. London Branch, and its affiliates to follow the joint
written instructions of the RCM Trustee, Leuthold and Leuthold
Industrial, and to turn over to Leuthold the 1,074,060 ounces of
silver and 16,493 ounces of palladium held by HSBC in respect of
certain Leuthold accounts.

In the event that RCM's Chapter 11 case is at any time converted
to a liquidating case under Chapter 7, all the terms, conditions
and other provisions approved by the Order will, in all events,
be final, valid, binding and enforceable upon any trustee
appointed in a Chapter 7 case, the holders of claims against
RCM, and all other parties-in-interest regardless of a
conversion.

The RCM Trustee will not be required to make any Distribution in
respect of a Claim unless and until he is reasonably satisfied
that he possesses all appropriate payee information in respect
of that Claim.

             Avoidance Actions & Cross-Margin Claims

The RCM Trustee, and any of his successor-in-interest, will
retain all rights with respect to potential preference and
avoidance actions under Chapter 5 of the Bankruptcy Code against
any claimant.

Moreover, the RCM Trustee will retain all rights with respect to
any other claims that RCM may have related to cross-margin
relationships discovered at a later date.

The Order will not constitute a waiver of the RCM Trustee's
rights to pursue Avoidance Actions and Additional Cross Margin
Claims, or to withhold amounts owed in respect of those claims
from any distributions in respect of allowed claim amounts.

Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services      
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.  (Refco Bankruptcy News, Issue No. 53; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


SEA CONTAINERS: Wants Until June 12 to File Reorganization Plan
---------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusive period to:

   (a) propose and file a plan of reorganization to and
       including June 12, 2007; and

   (b) solicit acceptances of that plan to and including
       Aug. 11, 2007.

Based on Section 1121(b) of the Bankruptcy Code provides a
debtor the exclusive right to file a plan of reorganization for
an initial period of 120 days after the commencement of its
Chapter 11 case.  Section 1121(c)(3) of the Bankruptcy Code
provides that if a debtor files a plan of reorganization within
the 120-day initial period, a debtor has 180 days after the
commencement of the Chapter 11 case within which to solicit and
obtain acceptances of its plan, during which time competing
plans may not be filed by any party-in-interest.

Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that since the Petition Date,
the Debtors have concentrated on stabilizing their business
operations, managing a smooth transition to operating under
Chapter 11 protection, and continuing to develop and implement
their restructuring plan which will form the basis of a
confirmable plan of reorganization.  Specifically, the Debtors
have:

   (1) filed several "first day" motions, which have been
       approved by the Court on an interim or final basis;

   (2) sought and obtained interim Court approval to make
       statutory payments to dismissed employees, which relief
       has minimized the disruption to their business operations
       associated with the commencement of the Chapter 11 cases;

   (3) filed a petition with the Bermuda Supreme Court to wind
       up Sea Containers Ltd., and sought the appointment of
       point provisional liquidators with limited powers, which
       appointment provides SCL with the additional protection
       statutory moratorium that ensures that no creditor or
       other party with standing could take action against SCL
       or its assets in Bermuda;

   (4) prepared and filed retention applications for various
       professionals to assist in their reorganization efforts.
       Among other professionals, the Court has approved the
       retention of Sidley Austin LLP, PricewaterhouseCoopers
       LLP, Collinson Grant Ltd., Towers Perrin, and Carter
       Ledyard & Milburn LLP;

   (5) filed an application to employ ordinary course
       professionals and a request to establish compensation
       procedures for professionals, which request was Court-
       approved on Nov. 8, 2006;

   (6) devoted considerable time and resources addressing
       various business issues related to GE SeaCo SRL, as well
       as responding to the request of GE Capital Container SRL
       and GE Capital Container Two SRL for relief from the
       automatic stay to proceed with arbitration; and

   (7) continue to identify and implement significant business
       measures, including valuing and marketing various
       businesses and other assets for sale to maximize the
       value of the businesses and assets located across the
       group and the potential return to the Debtors' creditor
       constituencies.

Mr. Brady tells the Court that the Debtors' sufficiently large
and complex cases warrant an extension of their Exclusive
Periods.  As of June 30, 2006, SCL, on a consolidated basis with
all its subsidiaries, had total assets having a net book value
of US$1,673,000,000, including assets of its former subsidiary
Silja Oy Ab which has since been sold.  

According to Mr. Brady, the Company's capital structure adds
additional complexity because many of the Non-Debtor
Subsidiaries have historically relied on SCL to provide
financing for their various operational needs, including funding
for the payment of Non-Debtor Subsidiaries' creditors, funding
required to preserve the value of assets held by Non-Debtor
Subsidiaries, and funding to maintain the business operations of
the Non-Debtor Subsidiaries.  

The Debtors' Chapter 11 Cases have the additional complexity of
dealing with foreign creditors, vendors and legal issues in a
multitude of foreign jurisdictions, including the coordination
with the JPLs and the proceedings in Bermuda, Mr. Brady adds.  

Mr. Brady assures the Court that the extension will not harm the
Debtors' creditors or other parties-in-interest and will be used
for a proper purpose that is to develop a feasible plan of
reorganization, which is in the best interests of all of the
Debtors' constituencies.  

                      About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight  
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


SEA CONTAINERS: Wants Until May 13 to Decide on Leases
------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend the
original 120-day period to assume or reject real property leases
through and including May 13, 2007, in pursuant to Section 365
(d)(4) of the Bankruptcy Code.

According to Robert S. Brady, Esq., at Young Conaway Stargatt &
Taylor, LLP, in Wilmington, Delaware, the Real Property Leases
include:

   (1) lease of the 5th, 11th, 12th, 13th and 14th floors of Sea
       Containers House, 20 Upper Ground, in London SEl, United
       Kingdom, between Archlane Limited and Sea Containers
       Services Ltd., dated March 25, 1988, and expiring
       Dec. 24, 2011;

   (2) lease of the second basement, first basement, ground
       12th and 13th floors of Sea Containers House, 20
       Upper Ground London SEl between Archlane Limited and Sea
       Containers Services dated March 25, 1988, and expiring
       Dec. 24, 2011; and

   (3) lease of Arches 1-12 and 15 and 16 beneath Southwark
       Bridge, Southern Approach, Park Street, London SE 1,
       between The Mayor and Commonalty and Citizens of the City  
       of London as Trustees of the Bridge House Estates and Sea
       Containers Services commencing Aug. 20, 2003, and
       expiring Dec. 25, 2011.

The office spaces at Sea Containers House serve as Sea
Containers Services' headquarters and of the direct and indirect
U.K. subsidiaries of Sea Containers Ltd.

Mr. Brady discloses that Sea Containers Services conducts
substantially all of its business activities from the Premises.  
For the benefit of SCL, itself, and certain of the Non-Debtor
Subsidiaries, Sea Containers Services' employees at the
Premises, among other things:

     * manage financial and accounting services;
     * operate information technology systems;
     * provide administrative services; and
     * manage payroll and other human resource services.  

In addition, certain of the U.K. Subsidiaries and affiliated
entities of the Debtors sublease office space at the Premises
from Sea Containers Services.  

Mr. Brady informs Judge Carey that Sea Containers Services is
not prepared to:

   (i) assume the Premises Leases and obligate the estate for
       the remaining five year terms under the Premises Leases;
       or

  (ii) reject the Leases before the expiration of the 120 days
       set forth in Section 365(d)(4) because Sea Containers
       Services' and the U.K. Subsidiaries' operations would be
       required to immediately relocate.

Mr. Brady says an extension is warranted because:

   (a) Sea Containers Services is current on its obligations
       under the Premises Leases and intends to continue to
       fulfill their obligations under the Leases on a timely
       basis, unless the Leases are rejected;

   (b) as the headquarters of Sea Containers Services and the
       U.K. Subsidiaries, the Premises serve an important role
       in preserving the continuity of the Debtors' ongoing
       operations;

   (c) the Debtors' Chapter 11 Cases are large and complex, and
       it is important that they be afforded a reasonable
       opportunity to address the myriad of issues implicated by
       the ongoing restructuring efforts before they are forced
       to make a long term decision concerning the Premises; and

   (d) the Debtors and its creditor constituencies have not had
       sufficient time to formulate a plan of reorganization,
       which formulation will require the participation of
       multiple constituencies including several with rights
       which may emanate from foreign law.

                      About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight  
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


SEA CONTAINERS: Taps Towers Perrin as Compensation Consultants
--------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates ask permission
from the U.S. Bankruptcy Court for the District of Delaware to
employ Towers, Perrin, & Crosby, Inc., as their compensation
consultants, nunc pro tunc to Oct. 15, 2006.

According to Robert D. MacKenzie, president and chief executive
officer of Sea Containers, Ltd., the Debtors selected Towers
Perrin based on its experience in providing advice and analysis
with respect to a wide range of employment and compensation
related issues.  Towers Perrin is familiar with the Debtors'
compensation and incentive program.

Mr. MacKenzie adds, since the Petition Date, Towers Perrin's
professional have worked closely with the Debtors' senior
management, financial staff, and other professionals and have
become well-acquainted with their compensation and incentive
programs.

Specifically, Towers Perrin will:

   (a) work with management to gather and review information,
       including, current job descriptions, organizational
       charts, compensation program information, and incumbent
       data for these positions:

         -- President;
         -- Chief Financial Officer and Senior Vice President;
         -- Chief Restructuring Officer;
         -- Group Operations Controller;
         -- Financial Controller;
         -- Head of Taxation;
         -- VP Funding;
         -- Commercial Director Ferries;
         -- U.S. Reporting Manager;
         -- Group Financial Planning and Analytical Manager;
         -- Manager, Financial Services;
         -- Group Chief Accountant;
         -- Group Consolidation Manager and AP Manager;
         -- Management Accountant - Ferries;
         -- Payroll Manager;
         -- Treasury Manager;
         -- Human Resources Manager;
         -- Business Analyst;
         -- Container Division;

   (b) work with management to identify a reasonable group of
       peer companies for pay purposes, bearing in mind the type
       of company from which and to which the key executives may
       be hired from or lost to, in recognition of their
       transferable skills;

   (c) perform an independent market analysis of compensation
       levels at peer companies.  To gather market pay levels,
       Towers Perrin will utilize:

       * the Debtors' U.K. Top Executive General Industry Survey
         2006 for senior executives; and

       * Towers Perrin's U.K. General Industry Compensation
         Database 2006 for other key executives;

   (d) independently recommend reasonable incentive payout
       amounts for the specified executives and employee
       groupings, subject to performance outcomes set by
       reference to expected performance ranges delivered to us
       by the Debtors, which arrangements will be discussed with
       and approved by the Official Committee of Unsecured
       Creditors;

   (e) create a summary report combining all of the work and
       setting forth the Debtors' findings, conclusions and
       recommendations; and

   (f) provide, at the Debtors' behest, truthful and independent
       expert witness testimony regarding the Debtors' market
       analysis and assessment of any resulting incentive plan
       payouts in light of the competitive analysis.

Towers Perrin will be paid for its services based on the firm's
current hourly rates:

       Principals                              GBP500
       Senior Consultants                      GBP350
       Consultants                             GBP250
       Associates/Senior Associates            GBP200

The firm will also be reimbursed for necessary and reasonable
out-of-pocket expenses incurred in providing professional
services.

Damian Carnell, a consultant at Towers Perrin, assures the Court
that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.  Towers
Perrin has no connection with, and holds no interest adverse to,
the Debtors or their estates in the matters on which it is to be
engaged, Mr. Carnell says.

                      About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight  
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


SMARTIRE SYSTEMS: Oct. 31 Equity Deficit is US$34.8 Million
-----------------------------------------------------------
SmarTire Systems Inc. reported a US$5.3 million net loss on
US$851,779 of revenues for the first quarter ended Oct. 31,
2006, compared with an US$18.2 million net loss on US$592,866 of
revenues for the same period in 2005.

The decrease in net loss is mainly due to the US$15.7 million
decrease in interest and financing expense. Interest and finance
charges for the three months ended Oct. 31, 2006, includes non-
cash interest of US$1.9 million compared to non-cash interest
charges of US$16.7 million for the three months ended Oct. 31,
2005.  Of the US$16.7 million non-cash interest charges, US$16.3
million were for amortization of deferred financing fees.     
                
The company's balance sheet at Oct. 31, 2006, showed US$6.1
million in total assets, US$38.7 million in total liabilities,
and 2.2 million in preferred shares subject to mandatory
redemption, resulting in a stockholders' deficit of US$34.8
million.

At Oct. 31, 2006, the company's balance sheet also showed
strained liquidity with US$3.6 million in total current assets
available to pay US$4.7 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended Oct. 31, 2006, are available
for free at http://researcharchives.com/t/s?1810   

                         About SmarTire

Headquartered in Richmond, British Columbia, Canada, SmarTire
Systems Inc. (OTC BB: SMTR.OB) -- http://smartire.com/--
develops and markets technically advanced tire pressure
monitoring systems for the transportation and automotive
industries that monitor tire pressure and tire temperature.  Its
TPMSs are designed for improved vehicle safety, performance,
reliability and fuel efficiency.  The company has three wholly
owned subsidiaries: SmarTire Technologies Inc., SmarTire USA
Inc. and SmarTire Europe Limited.


SOLUTIA INC: Can Sell Property to Shintech for US$7.1 Million
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
Court has authorized Solutia Inc. to sell its approximately 482
acres of undeveloped flat land in the Chocolate Bayou Property
to Shintech Incorporated for US$7,109,500.

Judge Beatty approves the CB Land Purchase Agreement and all
other ancillary documents.

J.V. Industrial Companies Ltd. asserted a secured Claim No. 319
predicated on a perfected statutory mechanic's and materialmen's
lien against Solutia.  J.V. informally objected to the motion
arguing that the J.V. Claim would not be adequately protected
following the closing of the proposed sale.

Solutia and J.V. entered into a court-approved stipulation to
resolve the objection and to allow the J.V. Claim as a secured
claim in the Debtors' Chapter 11 cases.

Fluor Corporation has also asserted Claim No. 4593 against
Solutia, secured by a valid perfected mechanic's and
materialmen's lien on the Chocolate Bayou property, including
the sale property.  The Fluor Claim was subsequently transferred
to Longacre Master Fund, Ltd. on June 5, 2006.

The Court approves the stipulation entered into by Solutia and
Longacre and authorizes Solutia to pay to Longacre all amounts
due on account of the Fluor Claim from the proceeds of the sale.

Longacre will retain the Fluor Lien on the remainder of the
Chocolate Bayou property.  The Sale proceeds will be deposited
into a segregated interest-bearing account maintained by
Solutia, and will only be released pursuant to the terms of the
Longacre stipulation.  Solutia will not deposit any additional
funds into the Segregated Account, or use the funds in the
Account for any other unauthorized purpose.

                      Stipulation with J.V.

The J.V. Claim asserts a secured claim against Solutia and arose
from labor and materials furnished, and improvements and repairs
to Solutia's Chocolate Bayou Facility in Alvin, Texas.

J.V. informally objected to the motion as it did not adequately
protect the interest of J.V., as required by Section 363 of the
Bankruptcy Code.  Upon review of its books and records, Solutia
has determined that the amounts asserted by J.V. in its Claim
are accurate for the goods and services provided.  The J.V. Lien
has also been determined to be valid and perfected, and fully
secures payment of the Claim.

The stipulation between Solutia and J.V. states that:

     * J.V. consents to the relief sought in the Motion and
       agrees to refrain from taking further action with regard
       to the sale of the Property;

     * the J.V. Claim is allowed as a fully secured
       claim against Solutia in the amount of US$467,693,
       plus applicable interest; and

     * if an alternate plan of reorganization is proposed by
       Solutia or any other party is confirmed, the Claim will
       receive the same treatment as all other fully secured
       claims or allowed fully secured mechanic's lien
       claims, if classified separately.

       The Claim will be paid in full on the earlier of the
       effective date of the confirmed Chapter 11 plan; other
       date that unpaid allowed fully secured claims in the case
       are paid; a date agreed on by the parties; or as directed
       by the Bankruptcy Court.

                    Stipulation with Longacre

Before the Petition Date, Solutia entered into a contract with
Fluor for the construction of an accylonitrile plant located at
Solutia's Chocolate Bayou plant in Alvin, Brazoria County,
Texas.

Certain disputes arose; Fluor sued Solutia before the U.S.
District Court for the Southern District of Texas regarding the
Fluor Contract and the work on the AN-7 plant.  Solutia and
Fluor subsequently decided on a consensual resolution and
Solutia agreed to pay US$20,000,000 to Fluor.

Solutia paid the first US$10,000,000 of the settlement amount.  
The remainder was to be paid in semi-annual installments of
US$1,666,667.  The obligation to pay was secured by a mechanic's
and materialmen's lien on the AN-7 Plant and the Chocolate Bayou
Property.  The Lien is deemed to be perfected as of Nov. 8,
2000.

Solutia made the first two installment payments.  Fluor filed a
secured Claim No. 4593 for the aggregate amount of the remaining
Installment Payments in the amount of US$6,731,277, plus
accruing interests and other costs and expenses against Solutia
in its Chapter 11 cases.

The Claim was transferred to Longacre on June 5, 2006.  To
obtain Longacre's consent to the Property Sale, Solutia and
Longacre stipulate and agree that:

     * Longacre will not object to the approval of the motion or
       the Sale, however, Longacre will retain its Lien on the
       AN-7 Plant and the Chocolate Bayou Property other
       than the Sale Property;

     * the Fluor Claim will be deemed to be an allowed secured
       claim and will not be subject to any objection, offset,
       defense, or counterclaims, and no party may contest
       Longacre's right to the allowed Fluor Claim and the
       payment;

     * Longacre's Lien will attach to the Sale Proceeds held in
       the Segregated Account;

     * Solutia will obtain the consent of the debtors-in-
       possession lenders to pay the Allowed Fluor Claim in full
       in conjunction with the anticipated amendment of the DIP
       agreement in January 2007;

     * the Sale Proceeds will remain in the Segregated Account
       until released solely in accordance with the stipulation;
       pursuant to a written agreement between Solutia and
       Longacre; or pursuant to Court order;

     * upon full satisfaction of the Allowed Fluor Claim, the
       balance of the Segregated Account will be released to
       Solutia;

     * if payment is not made during the pendency of Solutia's
       Chapter 11 cases, Solutia will, on the effective date
       of a plan, assign, transfer, deliver, and pay over
       to Longacre, by wire transfer of immediately
       available funds to an account specified by Longacre,
       the balance of the Segregated Account; and

     * to the extent the effective date account transfer
       does not satisfy the Allowed Fluor Claim in
       full, Longacre will be paid in full in cash on account
       of the remaining amount due on the Allowed Fluor Claim
       on effective date, or soon as practicable of any plan  
       of reorganization in the Solutia's Chapter 11 cases.

                       About Solutia Inc.

Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its  
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications.  The Company filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed US$2,854,000,000 in assets and US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., at Kirkland &
Ellis.  Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and
Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP
represent the Official Committee of Unsecured Creditors, and
Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital
provides the Creditors' Committee with financial advice.
(Solutia Bankruptcy News, Issue No. 75; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


WEIGHT WATCHERS: Moody's Rates Proposed US$1.2-Bln Loan at Ba1
--------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the proposed
US$1.2 billion senior secured term loan facility of Weight
Watchers International, Inc. and affirmed existing credit
ratings.

The rating outlook remains stable.

The proceeds from the $1.2 billion credit facility are expected
to be used to fund share purchases, refinance the indebtedness
of its subsidiary, WeightWatchers.com, and pay related fees and
expenses.  The existing $850 million credit facility is expected
to remain outstanding at closing.

On Dec. 18, 2006, Weight Watchers reported that it commenced a
self-tender offer for up to 8.3 million shares of its common
stock and also entered into an agreement with Artal Holdings Sp.
z o.o., its majority shareholder.  The agreement with Artal
provides that Weight Watchers will purchase from Artal shares of
its common stock so that Artal's percentage ownership in Weight
Watchers after the tender offer will be substantially equal to
its current level of approximately 55.2%.

Prior to its recent report, Weight Watchers' credit metrics were
strong for the Ba1 rating category, but reflected uncertainty
related to the firm's target capital structure and expected
financial policies.

Although the reported transaction will result in pro forma
leverage and cash flow metrics that are weak for the rating
category, these metrics are expected to improve in 2007.

Moody's expects profitability in 2007 to benefit from new
business initiatives and expects the company to utilize internal
cash generation to repay a portion of the transaction
indebtedness.  The Ba1 corporate family rating continues to
reflect high levels of pretax income, impressive profit margins
and solid geographic diversification.  The ratings are
constrained by reliance on a single brand and potential threats
from new competitors and products.

Moody's took these rating actions for Weight Watchers:

   -- Assigned $700 million add-on senior secured term loan A
      facility due 2013, Ba1, LGD3, 34%;

   -- Assigned $500 million add-on senior secured term loan B
      facility due 2014, Ba1, LGD3, 34%;

   -- Affirmed $500 million senior secured revolving credit
      facility due 2011, Ba1, LGD3, 34%;

   -- Affirmed $350 million senior secured term loan A facility
      due 2011, rated Ba1, to LGD3, 34%;

   -- Affirmed Corporate Family Rating, Ba1; and,

   -- Affirmed Probability of Default Rating, Ba2.

Moody's affirmed the credit ratings of WeightWatchers.com and
will withdraw such ratings upon the repayment of its rated debt
with the proceeds from the add-on term loan facilities.

The stable ratings outlook anticipates solid revenue and
profitability growth in 2007 driven by recent franchise
acquisitions, implementation of price increases in portions of
North America and Europe, new marketing campaigns and wider
roll-out of new monthly and seasonal membership plans.  Free
cash flow generation is expected to be primarily utilized for
debt repayment.

The company's willingness to substantially increase leverage in
connection with its pending share purchase is inconsistent with
an investment grade rating profile.  Consequently, the ratings
are unlikely to be upgraded in the intermediate term.  

However, over the long term, an upgrade is possible if the
company:

   -- grows profitability or repays indebtedness such that EBIT
      coverage of interest and free cash flow to debt are
      sustained for a few years at over 4.5x and 12%,
      respectively; and,

   -- demonstrates a commitment to conservative financial
      policies.

The ratings could be pressured by another large share repurchase
in the near term or a failure to achieve anticipated
improvements in credit metrics during the next year.  Credit
metrics could remain weak within the rating category if
attendance levels or operating margins decline and term loan
repayments are materially below Moody's expectations.  A
downgrade is possible if EBIT coverage of interest and free cash
flow to debt are expected to be sustained at less than 2.5x and
8%, respectively.

Headquartered in New York, New York, Weight Watchers is a
leading global provider of weight management services, operating
globally through a network of company owned and franchised
operations. Revenues for the twelve months ended Sept. 30, 2006,
were $1.2 billion.


WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating for New York, N.Y.-based commercial weight-loss
service provider Weight Watchers International Inc.  

At the same time, all WWI ratings were removed from CreditWatch,
where they were placed with negative implications on Dec. 20,
2006, reflecting WWI's increasingly aggressive financial policy
following the company's announcement that it plans to launch a
"modified Dutch auction" self-tender offer for up to 8.3 million
shares of its common stock at a price range between US$47 and
US$54 per share.

At the same time, Standard & Poor's assigned its 'BB' rating to
the company's proposed US$700-million term loan A-1 and
US$500-million term loan B, with a recovery rating of '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.  S&P also
lowered the existing bank loan ratings on WWI's US$350-million
term loan A and US$500-million revolving credit facility to 'BB'
from 'BB+' and the recovery rating on these facilities to '2'
from '1'.  The rating outlook is negative.

Proceeds from the new US$1.2 billion of term loans will be used
to finance the tender offer and to repay outstanding debt at
wholly owned subsidiary WeightWatchers.com (WW.com,
B+/Positive/--).  Artal Luxembourg S.A., WWI's majority
shareholder, plans to retain its 55.2% pro rata share of common
stock outstanding following the completion of the Dutch auction
repurchase.  WWI intends to repay the outstanding balance of
WW.com's senior secured credit facilities, which consist of a
US$170-million first-lien term loan and a US$45-million
second-lien term loan.  S&P expect all ratings on WW.com to be
withdrawn upon the completion of the planned refinancing of its
existing senior secured debt.


* Huron Consulting Group Agrees to Acquire Glass & Associates
-------------------------------------------------------------
Huron Consulting Group Inc. entered into a definitive agreement
to acquire Glass & Associates Inc.

Under the terms of the purchase agreement, Huron will acquire
Glass & Associates for a purchase price at closing of
approximately US$30 million in cash.  Additional purchase
consideration will be payable in cash to shareholders of Glass
if specific performance targets are met.  The acquisition is
subject to various closing conditions and closing is expected to
occur next week.  Glass had unaudited 2006 calendar year
revenues of approximately US$24 million.  Huron expects that the
acquisition will be accretive to 2007 earnings and will provide
guidance updates when it releases results for the fourth quarter
and full year 2006.

"Since Huron opened its doors in 2002, turnaround and
restructuring services have been part of our balanced portfolio
of service offerings and our financial success.  The addition of
the world class executives and their team at Glass provides
additional avenues for growth for our Corporate Advisory
Services practice," said Gary E. Holdren, chairman and chief
executive officer of Huron Consulting Group.

"By joining forces with Huron, we will be able to provide our
clients with services that extend far beyond our current core
competencies in restructuring and turnarounds," said John
DiDonato, president, Glass & Associates, Inc.

With the acquisition of Glass, Huron continues to expand its
position in the consulting and restructuring marketplace.  Huron
expects the auto, healthcare, industrial manufacturing, and
retail industries to continue to face credit challenges which
will drive demand for services in the upcoming years.  In
joining Huron, DiDonato will lead Huron's Corporate Advisory
Services practice and will be based in New York.  In addition,
Dalton T. Edgecomb, Sanford R. Edlein, and Shaun Martin will
join the Company as managing directors.

                      Credit Amendment

In connection with this acquisition and the acquisition of
Wellspring Partners LTD, Huron has amended its credit agreement
so that the maximum amount of principal that may be borrowed
under the unsecured revolving credit facility is increased from
US$75 million to US$130 million.  No other key terms of the
credit agreement, which was originally entered into on June 7,
2006, and expires on May 31, 2011, were modified under the
amendment, and the balance of the credit facility will remain
available for future working capital requirements and other
corporate purposes.

                  About Glass & Associates

Headquartered in New York -- http://www.glass-consulting.com--  
Glass & Associates Inc. provides advice and leadership to
troubled businesses in the United States and Europe.  The firm's
executives work closely with management to create and implement
strategies that secure the future of the distressed company.  
Glass identifies underlying operational issues -- not just
financial problems -- to maximize the organization's value to
shareholders, creditors and employees.  Glass will bring a team
of approximately 35 revenue-generating professionals and a
complement of independent contractors.

                  About Huron Consulting Group

Headquartered in Chicago, Illinois --
http://www.huronconsultinggroup.com/-- helps clients  
effectively address complex challenges that arise in litigation,
disputes, investigations, regulatory compliance, procurement,
financial distress, and other sources of significant conflict or
change.  The Company also helps clients deliver superior
customer and capital market performance through integrated
strategic, operational, and organizational change.  Huron
provides services to a wide variety of both financially sound
and distressed organizations, including Fortune 500 companies,
medium-sized businesses, leading academic institutions,
healthcare organizations, and the law firms that represent these
various organizations.


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

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

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


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


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


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


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


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


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

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


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

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

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


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


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

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


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


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


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


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


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


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

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


                           *********

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

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

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel P. Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, and Kristina A.
Godinez, Editors.

Copyright 2007.  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$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *