TCREUR_Public/070117.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

            Wednesday, January 17, 2007, Vol. 8, No. 12   

                            Headlines


A U S T R I A

ADVANCED ROBOT: Creditors' Meeting Slated for January 30
BS-DATENSYSTEME: Creditors' Meeting Slated for February 9
EUROSNAP HANDEL: Claims Registration Period Ends January 30
NOEBAUER TRANSPORT: Claims Registration Period Ends January 22
PESA LLC: Creditors' Meeting Slated for January 30

ST-ONE NATURSTEIN: Claims Registration Period Ends January 22
TERA LLC: Creditors' Meeting Slated for January 30


C Z E C H   R E P U B L I C

ARAMARK CORP: Moody's Holds Ba3 Rating on Proposed US$4-Bil Loan
ARAMARK CORP: S&P Affirms US$500-Mln Term Loan Rating at B+


F I N L A N D

METSO OYJ: Inks EUR14-Mln Supply Deal with Pirites Alentejanas


F R A N C E

ALCATEL-LUCENT: Dresdner Kleinwort Keep "Sell" Rating
ALCATEL-LUCENT: Names Johan Vanderplaetse to Head CIS Unit
MALDEN MILLS: Board Okays US$44-Million Sale to Gordon Bros
SCO GROUP: Denies Looming Bankruptcy Rumors from Novell


G E R M A N Y

BIO-GROUP GMBH: Claims Registration Ends February 7
DAIMLERCHRYSLER AG: Chrysler Will Present Restructuring Plan
E-EYECARE GMBH: Claims Registration Ends February 2
ELEKTRO SALADIN: Claims Registration Ends February 1
ELEKTRO-WERNER: Claims Registration Ends February 8

GASTRO-SERVICE: Creditors' Meeting Slated for February 8
HSH NORDBANK: Fitch Affirms Individual C Rating; Outlook Stable
K. & H. ELEKTRONIK: Claims Registration Ends February 8
KFZ-TEILE: Claims Registration Ends February 2
NRG ENERGY: Repays US$400 Million of Term Loan B Facility

PHOTRONICS INC: Posts US$29.3 Million Net Income in Fiscal 2006
PRO/OPT GMBH: Claims Registration Ends February 9
VISTEON CORP: Inks Exclusive Retail Distribution Accord with AGT
VISTEON CORP: Sees Challenging 2007 But Improved 2008 Production
WAGLER GMBH: Claims Registration Ends February 2

WEBER AKUSTIK: Claims Registration Ends February 2
WERNER MUCKLE: Claims Registration Ends February 2


G R E E C E

TIM HELLAS: Fitch Junks Subordinated Notes & Sr. Credit Facility


H U N G A R Y

AES CORP: Trial on Dominican Republic's Lawsuit Set for March 5


I T A L Y

ALITALIA SPA: Italy to Welcome Air France Bid, Says Romano Prodi
CASSA DI RISPARMIO: Fitch Affirms Individual C Rating
TK ALUMINUM: Breaks Financial Covenant; Misses Interest Payment
TK ALUMINUM: S&P Puts Default Rating on Missed Interest Payment


K A Z A K H S T A N

AP-2 LLP: Creditors Must File Claims by February 23
JANALYK LLP: Proof of Claim Deadline Slated for February 27
KAZANKA-99 LLP: Claims Filing Period Ends February 27
LOCKSTEN INVESTMENTS: Creditors' Claims Due February 22
MEDIA-PRESS LTD: Proof of Claim Deadline Slated for February 23

MONTAGESERVICE-EKIBASTUZ LLP: Creditors' Claims Due February 27
NURIAN INTERNATIONAL: Claims Registration Ends February 27
SOLTKAZJOL LLP: Creditors Must File Claims by February 27
UGINTRADE LTD: Creditors' Claims Due February 27
ZARYA LLP: Claims Filing Period Ends February 27


K Y R G Y Z S T A N

DOSTUK-SEVER LLC: Creditors' Claims Due February 23
TASY PHARM: Claims Registration Ends February 27


L U X E M B O U R G

DANA CORP: Court OKs Trailer Axles Amended APA with Hendrickson
DANA CORP: Wants Warehouse Services Agreement with AMI Approved
SISTEMA CAPITAL: Fitch Rates Debt Issuance Program at B+
TEKSID ALUMINUM: Parent Misses Senior Notes Interest Payment
TEKSID ALUMINUM: S&P Puts Default Rating to EUR240-Mln Notes


N E T H E R L A N D S

KONINKLIJKE AHOLD: ICA Eiendom Unit Sells Assets to ERIV
STORM B.V.: Fitch Affirms BB+ Rating on Class E Tranche


N O R W A Y

AKER KVAERNER: Inks US$250-Million Subsea Contract in India


P O L A N D

MALMA: Alpina Savoie Wants Court to Declare Firm Bankrupt
POLSKA GRUPA: Fitch Affirms National Short-Term Rating at B


R U S S I A

BUILDER LLC: Tambov Court Names A. Semenov as Insolvency Manager
DANKOVSKIY ELEVATOR: Bankruptcy Hearing Slated for April 13
DUBYNSKOYE OJSC: Tyumen Bankruptcy Hearing Slated for March 13
EVRAZ GROUP: Hikes Steel Output to 16.12 Million Tons in 2006
HARVEST CJSC: Court Names A. Semenov as Insolvency Manager

IRBIS OJSC: Court Names Y. Mishenko as Insolvency Manager
KRASNOARMEYSKIY OJSC: Asset Sale Slated for January 25
KUBAN OJSC: Creditors Must File Claims by February 23
LUKOIL OAO: Hikes Third Quarter 2006 Profit to US$2.43 Billion
LUKOIL OAO: To Sell More Gas at Free Prices This Year

MILK CJSC: Creditors Must File Claims by February 23
NIKA CJSC: Court Names L. Merkulova as Insolvency Manager
NITROGEN-INVEST LLC: Bankruptcy Hearing Slated for February 20
NORTH-SOUTH-WOOD LLC: Court Names E. Safronova to Manage Assets
NOVOLIPETSK STEEL: Fitch Assigns BB+ IDR with Stable Outlook

OIL-MASH OJSC: Kemerovo Bankruptcy Hearing Slated for April 11
PESCHANOYE CJSC: Creditors Must File Claims by February 23
PRIOBSKOUE OIL: Asset Sale Slated for January 24
SISTEMA JSFC: Fitch Assigns Debt Issuance Program B+ Rating
SPIRITS OJSC: Court Starts External Bankruptcy Procedure


S P A I N

FONCAIXA FTGENCAT: Fitch Junks EUR6 Million Series E Notes


S W I T Z E R L A N D

AKTIVMANN SOLI: Zurich Court Suspends Bankruptcy Proceedings
AQUATHERMA LLC: Basel Court Suspends Bankruptcy Proceedings
I1 CAFFE EMME 4: Arlesheim Court Closes Bankruptcy Proceedings
LASCO INTERNATIONAL: Basel Court Closes Bankruptcy Proceedings
MOCANO LLC: Basel Court Suspends Bankruptcy Proceedings

NIKLAUS KOCHER: Basel Court Closes Bankruptcy Proceedings
NONSTOP-CHARTER: Basel Court Suspends Bankruptcy Proceedings
STAR BODENBELAG: Aargau Court Starts Bankruptcy Proceedings
SWIBRAS JSC: Liestal Court Suspends Bankruptcy Proceedings
WSC JSC: Binningen Court Suspends Bankruptcy Proceedings


U N I T E D   K I N G D O M

A R P FABRICATORS: Appoints Richard Rones as Liquidator
ADJUSTBETTER LTD: Calls In Deloitte & Touche Liquidators
ADVANCED MARKETING: Creditors' Meeting Slated for February 7
AMS NEVE: Creditors' Meeting Slated for February 6
ASCOT CONSTRUCTION: Creditors' Meeting Slated for January 23

AUTOMATIC TECHNOLOGIES: Creditors' Meeting Slated for January 30
AWAX SECURITY: Creditors' Meeting Slated for January 26
BAGGAGE BP: Creditors' Meeting Slated for January 19
BERNHARD METALS: Hires Liquidators from DTE Leonard Curtis
BLACKPOOL AUTOMOTIVE: Taps PKF to Administer Assets

BLUE VISION: Taps T. Papanicola to Liquidate Assets
BOOMERANG LONDON: Nominates David Norman Kaye as Liquidator
BOOTHAM WELDING: Names Liquidator to Wind Up Business
BOWMIC LTD: Creditors' Meeting Slated for January 23
BRITISH AIRWAYS: T&G Cabin Crew Members Favor Strike Action

CHEMICALS & PROCESS: Liquidator Sets February 28 Claims Bar Date
CHILTERN INVADEX: Appoints KPMG as Joint Administrators
COLLINS & AIKMAN: Court OKs Second Pact to Settle Lear Dispute
COUDERT BROTHERS: Court Okays McGrigors LLP as English Counsel
COUDERT BROTHERS: Court Sets Jan. 31 as General Claims Bar Date

CURRENT ELECTRICAL: Creditors' Meeting Scheduled for January 24
EMI GROUP: Moody's Downgrades Rating to Ba3 on Weak Performance
EUROPEAN DOMAIN: Brings In Liquidator from Stones & Co.
F I PACKAGING: Taps Liquidators from Moore Stephens LLP
FASTRACK FLOORING: Creditors' Meeting Scheduled for February 1

FIN LTD: Creditors' Meeting Slated for January 23
FRUDD CONSTRUCTION: Brings In Administrators from Ernst & Young
GENERAL MOTORS: Eyes Purchase of Stake in Malaysia's Proton
GUILDCREW LTD: Peter Sargent Leads Liquidation Procedure
HANOVER COMPRESSOR: Partially Redeems US$20-Mln Jr. Sub. Notes

HIGHMOUNT GARAGE: Appoints J. M. Titley as Liquidator
IDLECARE LTD: Creditors' Meeting Slated for January 19
INTELSAT LTD: Bermuda Unit Prices US$600 Million Senior Notes
INTELSAT LTD: Moody's Rates US$600 Million Senior Loan at B2
KEITH WOOD: Creditors' Meeting Slated for January 19

LENVAL ESSEX: Taps Liquidators from Moore Stephens LLP
LERNA LTD: Creditors' Meeting Slated for January 26
LIZBAN PRESS: Appoints Liquidators from Moore Stephens LLP
MAGNA REAL: Calls In Liquidator from Marshman & Co.
MAYFLOWER VEHICLE: Appoints Liquidators from Deloitte & Touche

MUSIC ZONE: Appoints Deloitte and Touche as Joint Administrators
NEAL PRECISION: Creditors' Meeting Slated for January 19
NECHO SYSTEMS: Creditors Ratify Voluntary Liquidation
NIGHTCLUB COMPANY: Joint Liquidators Take Over Operations
OFF SHOOT: Creditors' Claims Due February 9

ORIGINAL GIFT: Creditors' Meeting Slated for January 25
PHOENIX STONE: Claims Filing Period Ends February 28
PRESENTATION PLASTICS: Names Ian William Kings Liquidator
PROPEX INC: Moody's Holds Junk Rating on US$150 Million Sr. Debt
PSP WHOLESALE: Creditors' Meeting Slated for January 25

ROLLADECK LTD: Nominates Paul John Webb as Liquidator
SCOTT'S MIRACLE: Moody's Lowers Corporate Family Rating to Ba2
SILKCROSS DEVELOPMENTS: Nominates Liquidator from Mayfields
SOLUTIA INC: Seeks Fifth Amendment of DIP Loan with CitiCorp USA
SONORA U.K.: Brings In Liquidator from Findlay James

SPF CORBY: Creditors' Meeting Slated for January 31
STEPHEN CLARK: Appoints Pwc as Joint Administrators
SWAIN SADDLERS: Creditors' Meeting Slated for January 22
SWALLOW HOTELS: Shuts Down Greens Hotel & Cuts 34 Jobs
TGT FINANCE: Nominates Liquidators from PricewaterhouseCoopers

VITAL DESIGN: Creditors' Meeting Slated for February 7
WINDOW WORLD: Hires J. M. Titley to Liquidate Assets

                            *********

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


ADVANCED ROBOT: Creditors' Meeting Slated for January 30
--------------------------------------------------------
Creditors owed money by LLC advanced robot systems (FN 273335p)
are encouraged to attend the creditors' meeting at 10:50 a.m. on
Jan. 30 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 Koenigsbrunn am Wagram, Austria, the Debtor
declared bankruptcy on Dec. 1, 2006 (Bankr. Case No. 14 S
194/06d).  Walter Anzboeck serves as the court-appointed
property manager of the bankrupt estate.  

The property manager can be reached at:

         Dr. Walter Anzboeck
         Stiegengasse 8
         3430 Tulln, Austria
         Tel: 02272/61 600
         Fax: 02272/61 600-20
         E-mail: anwalt@anzboeck.at  


BS-DATENSYSTEME: Creditors' Meeting Slated for February 9
---------------------------------------------------------
Creditors owed money by LLC BS-Datensysteme (FN 200661s) are
encouraged to attend the creditors' meeting at 11:00 a.m. on
Feb. 9 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1707
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 2, 2006 (Bankr. Case No. 2 S 116/06f).  Maximilian
Schludermann serves as the court-appointed property manager of
the bankrupt estate.

The property manager can be reached at:

         Dr. Maximilian Schludermann
         Reisnerstrasse 32/12
         1030 Vienna, Austria
         Tel: 715 50 45
         Fax: 715 50 474
         E-mail: office@anwalt-vienna.at


EUROSNAP HANDEL: Claims Registration Period Ends January 30
-----------------------------------------------------------
Creditors owed money by LLC Eurosnap Handel (FN 207519a) have
until Jan. 30 to file written proofs of claims to court-
appointed property manager Gerwald Schmidberger at:

         Dr. Gerwald Schmidberger
         c/o Dr. Heinz Kassmannhuber
         Stelzhamerstrasse 11
         4400 Steyr, Austria
         Tel: 07252/52408
         Email: ra.schmidberger@utanet.at  
                office@sks-law.at   

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 1:30 a.m. on Feb. 13 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Steyr
         Hall 7
         2nd Floor
         Steyr, Austria

Headquartered in Steyr, Austria, the Debtor declared bankruptcy
on Dec. 1, 2006 (Bankr. Case No. 14 S 61/06b).  
Heinz Kassmannhuber represents Dr. Schmidberger in the
bankruptcy proceedings.


NOEBAUER TRANSPORT: Claims Registration Period Ends January 22
--------------------------------------------------------------
Creditors owed money by LLC Noebauer Transport-Logistik (FN
238627y) have until Jan. 22 to file written proofs of claims to
court-appointed property manager Gerhard Rothner at:

         Gerhard Rothner
         c/o Elisabeth Buerger-Huber
         Hopfengasse 23
         4020 Linz, Austria
         Tel: 66 73 26-0
         Fax: 66 73 20 29
         Email: g.rothner@wildmoser-koch.com  
                e.buerger-huber@wildmoser-koch.com  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Feb. 5 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

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

Headquartered in St. Georgen an der Gusen, Austria, the Debtor
declared bankruptcy on Dec. 1, 2006 (Bankr. Case No.
12 S 106/06k).  Elisabeth Buerger-Huber represents Mr. Rothner
in the bankruptcy proceedings.


PESA LLC: Creditors' Meeting Slated for January 30
--------------------------------------------------
Creditors owed money by LLC Pesa (FN 44961w) are encouraged to
attend the creditors' meeting at 12:15 p.m. on Jan. 30 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1701
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 1, 2006 (Bankr. Case No. 6 S 120/06y).  Stefan Jahns
serves as the court-appointed property manager of the bankrupt
estate.  Michael Neuhauser represents Mag. Jahns in the
bankruptcy proceedings.

The property manager and his representative can be reached at:

         Mag. Stefan Jahns
         c/o Mag. Michael Neuhauser
         Esslinggasse 9
         1010 Vienna, Austria
         Tel: 536 50-0
         Fax: 536 50-14
         E-mail: officewien@aaa-law.at


ST-ONE NATURSTEIN: Claims Registration Period Ends January 22
-------------------------------------------------------------
Creditors owed money by LLC st-one naturstein (FN 255258f) have
until Jan. 22 to file written proofs of claims to court-
appointed property manager Thomas Zeitler at:

         Dr. Thomas Zeitler
         Eisenhandstrasse 15
         4020 Linz, Austria
         Tel: 77 55 44-11
         Fax: 77 55 44-10
         Email: insolvenz@bzp.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Feb. 5 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

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

Headquartered in Pasching, Austria, the Debtor declared
bankruptcy on Dec. 1, 2006 (Bankr. Case No. 12 S 107/06g).  


TERA LLC: Creditors' Meeting Slated for January 30
--------------------------------------------------
Creditors owed money by LLC Tera (FN 202377p) are encouraged to
attend the creditors' meeting at 9:45 a.m. on Jan. 30 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1607
         16th Floor
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 1, 2006 (Bankr. Case No. 28 S 69/06k).  
Eva-Maria Bachmann-Lang serves as the court-appointed property
manager of the bankrupt estate.  

The property manager can be reached at:

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


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


ARAMARK CORP: Moody's Holds Ba3 Rating on Proposed US$4-Bil Loan
----------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 rating on Aramark
Corp.'s proposed US$4.15 billion secured term loan and the B3
rating on US$1.78 billion of proposed senior notes.  

The upsized term loan and senior note offerings are intended to
replace a US$570 million senior subordinated note offering that
was cancelled.

Concurrently, Moody's withdrew the B3 rating on the US$570
million of proposed senior subordinated notes.  Pro-forma for
the aforementioned capital mix changes, Moody's affirmed the B1
Corporate Family Rating.

The ratings outlook is stable.

The leveraged buyout of Aramark will be financed with a US$4.15
billion secured term loan, US$1.78 billion of senior unsecured
notes and an equity contribution of US$2.1 billion.

Rating actions:

   * Aramark

      -- affirmed US$600 million secured revolving credit
         facility due 2013, Ba3 to LGD3, 36% from LGD3, 32%;

      -- affirmed US$4.15 billion secured term loan due 2014,
         Ba3 to LGD3, 36% from LGD3, 32%;

      -- affirmed US$250 million secured synthetic letter of
         credit facility due 2013, Ba3 to LGD3, 36% from LGD3,
         32%;

      -- affirmed US$1.78 billion senior unsecured notes due
         2015, B3 to LGD5, 86% from LGD5, 80%;

      -- affirmed Corporate Family Rating at B1;

      -- affirmed Probability of Default Rating at B1; and

      -- withdrew US$570 million senior subordinated notes due
         2016 rated at B3 LGD6, 93%.

These ratings are subject to Moody's review of final
documentation.

Rating actions:

   * Aramark

      -- affirmed Corporate Family Rating, B1;

      -- affirmed Probability of default rating, B1;

      -- affirmed senior unsecured shelf registration rated
         B3, LGD6, 96%; and

      -- affirmed senior subordinated shelf registration rated
         B3, LGD6, 97%.

Ratings actions:

   * Aramark Services

      -- affirmed US$250 million senior unsecured notes due
         2012, B3, LGD6, 96%;

      -- affirmed senior unsecured shelf registration B3, LGD6,
         96%;

      -- affirmed senior subordinated shelf registration rated
         B3, LGD6, 97%;

      -- affirmed US$300 million senior unsecured notes due
         2007, Baa3;

      -- affirmed US$31 million senior unsecured notes due 2007,
         Baa3; and

      -- affirmed US$300 million senior unsecured notes due
         2008, Baa3.

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 around US$11.6 billion.


ARAMARK CORP: S&P Affirms US$500-Mln Term Loan Rating at B+
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its loan and
recovery ratings on the proposed senior secured credit
facilities of Aramark Corp., after the report that the company
will increase the term loan by almost US$500 million.  

With the add-on, the total amount of the term loan is now
US$4.15 billion.  The loan rating was affirmed at 'B+' and the
recovery rating was affirmed at '2', indicating the expectation
for substantial recovery of principal in the event of a
payment default.  The company will also increase its senior debt
offering by about US$80 million in lieu of the prior expectation
of issuing US$570 million of subordinated debt.

Net proceeds from the company's proposed enlarged term loan and
senior unsecured debt offering, together with about US$2.1
billion of equity, will be used to finance the acquisition of
Aramark by a group of investors led by its chairman and CEO,
Joseph Neubauer, which includes the repayment of about US$1.7
billion of Aramark's outstanding debt.
  
Ratings Affirmed:

   * Aramark Corp.

      -- Corporate Credit Rating rated B+/Negative;
      -- Senior Secured at B+, Recovery Rtg: 2; and
      -- Senior Unsecured rated B-.

Rating Withdrawn:

   * Aramark Corp.

      -- Subordinated; NR and previously rated B-.


=============
F I N L A N D
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METSO OYJ: Inks EUR14-Mln Supply Deal with Pirites Alentejanas
--------------------------------------------------------------
Metso Minerals, a unit of Metso Oyj, will supply a crushing
plant and mining equipment to Pirites Alentejanas, S.A.'s
Aljustrel zinc mine in southern Portugal.  The delivery will be
completed by January 2008.   

The value of the order is around EUR14 million.  The order has
been booked in the order book for the fourth quarter of 2006.

The order comprises a stationary crushing plant, which consists
of a primary jaw crusher, a secondary cone crusher, two tertiary
cone crushers with two screens.  The order also includes a
2.2-km conveyor, a VPA pressure filter, six units of stirred
media detritors and mill lining to the existing mills, as well
as engineering, erection and commissioning services.

Metso's solution is for the modifications of the Aljustrel mine.
During the first year of operation, around 1.4 million tons zinc
ore will be processed from the Moinho deposit, and in the
subsequent years ore will be processed primarily from the
Feitais deposit with production of 1.8 million tons annually.

Pirites Alentejanas is a subsidiary of a Canadian based Eurozinc
Mining Corp.  EuroZinc Mining Corp. is a metal producer with
significant reserves in copper, lead, zinc and silver.

                           About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- serves customers in the pulp and paper   
industry, rock and minerals processing, the energy industry and
selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.

                          *     *     *

As reported in the TCR-Europe on April 11, 2006, Standard &
Poor's Ratings Services revised its outlook on Finland-based
machinery and engineering group Metso Corp. to positive from
stable, reflecting improvements in the group's operating
performance and capital structure that offer it the potential to
return to a low investment-grade rating. The 'BB+' long-term and
'B' short-term corporate credit ratings, as well as the 'BB'
senior unsecured debt rating on the group were affirmed.


===========
F R A N C E
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ALCATEL-LUCENT: Dresdner Kleinwort Keep "Sell" Rating
-----------------------------------------------------
Analysts at Dresdner Kleinwort maintain their "sell" rating on
Alcatel-Lucent, News Ratings reports.

According to the report, the target price is set to EUR8 per
share.

In a research note published on Jan. 9, 2007, the analysts
mentioned that Tellabs' sales and earnings warning for the
December quarter is a cause for concern regarding Alcatel-
Lucent's first combined earnings results, scheduled to be
reported on Feb. 9, the report says.

The report points out that the company's near-term performance
is likely to be negatively impacted by the overspending in North
America and Bell South's capex freeze prior to its merger AT&T,
the analysts say.

                     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.  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.  The company has operations in
Brazil and Indonesia.

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-
U.S. 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.


ALCATEL-LUCENT: Names Johan Vanderplaetse to Head CIS Unit
----------------------------------------------------------
Alcatel-Lucent has appointed Johan Vanderplaetse to lead the
company's Communal Independent States (CIS) Regional Unit.  

Mr. Vanderplaetse will be based in Moscow.  Regional Units are
staffed with dedicated sales and technical sales support
resources that have overall responsibility to conduct the
business in their area.

Prior to this appointment, Mr. Vanderplaetse was vice-president
of Alcatel's activities in the CIS, with regional responsibility
for all marketing, sales and business development operations
with Alcatel's customers in the region.

Mr. Vanderplaetse has 12 years of managerial experience in the
CIS countries, including 12 years within Alcatel and has been
residing in Moscow for 10 years.  He joint Alcatel in 1994 and
is a graduate of the University of Ghent, Law Faculty,College of
Europe of Bruges (Belgium) and the State Institute of Russian
language named after A.S.Pushkin (Moscow).

In addition, Alcatel-Lucent disclosed two appointments to its
CIS organization:

   -- Frank Mueller is appointed Head of Alcatel-Lucent in
      Ukraine, Georgia, Armenia, Azerbaijan, Uzbekistan and
      Mongolia.  

      Mr. Mueller will be based in Kiev, Ukraine.

   -- Askar Nasiev is appointed Head of Alcatel-Lucent in
      Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

      Mr. Nasiev will be based in Almaty, Kazakhstan.  Prior to
      this appointment Askar was head of Lucent's activities in
      Kazakhstan.

Mr. Muller and Mr. Nasiev will report to Johan Vanderplaetse,
head of Alcatel-Lucent CIS Regional Unit.

Alcatel-Lucent CIS Regional Unit operates in Armenia, Georgia,
Azerbaijan, Belarus, Kazakhstan, Mongolia, Russia, Tajikistan,
Turkmenistan, Uzbekistan, and Ukraine.

                     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.  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.  The company has operations in
Brazil and Indonesia.

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-
U.S. 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.


MALDEN MILLS: Board Okays US$44-Million Sale to Gordon Bros
-----------------------------------------------------------
Malden Mills Industries Inc.'s Board of Directors unanimously
approved sale of the company to Gordon Brothers Group of Boston,
Massachusetts for US$44 million.

The company will continue normal manufacturing operations at
both its facilities in Lawrence, Massachusetts and Hudson, New
Hampshire.

In order to implement the sale, the company filed voluntary
petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code.  The Chapter 11 process will provide an
efficient environment for completion of the sale.  The sale is
subject to higher and better offers, and completion of the sale
is expected by the end of Feb. 2007, subject to court approval.

GE Commercial Finance will be providing a Debtor in Possession
(DIP) financing facility, which ensures that the company has the
working capital required for a seamless transition in operations
to new ownership.

Michael Spillane, chief executive officer, said, "Over the past
three years we have worked diligently to improve every aspect of
the operational side of the business.  Our on-time delivery,
manufacturing quality, and product innovation have never been
better.  The sale of Malden Mills to Gordon Brothers Group
transitions the company into a state of permanent ownership and
financial stability.  This financial transaction will
significantly improve the Company's balance sheet enabling
Malden Mills to continue to serve our customers in both the
commercial and military markets."

Headquartered in Lawrence, Massachusetts, Malden Mills
Industries, Inc. -- http://www.polartec.com/-- develops,  
manufactures, and markets Polartec(R) performance fabrics.  
Polartec(R) products range from lightweight wicking base layers
to insulation to extreme weather protection and are utilized by
the best clothing brands in the world.  In addition, Polartec(R)
fabrics are used extensively by all branches of the United
States military, including the Army, Navy, Marine Corps, Air
Force, and Special Operations Forces.  The company also has
operations in Germany, Spain, France and the U.K.

The company and four of its affiliates filed for chapter 11
protection on Jan. 10, 2007 (Bankr. D. Del. Case Nos. 07-10048
through 07-10052).  Laura Davis Jones, Esq., and Michael Seidl,
Esq., at Pachulski, Stang, Ziehl Young, Jones & Weintraub, PC,
represent the Debtors.  When the Debtors filed for protection
from their creditors, they listed estimated assets between US$1
million to US$100 million and estimated debts of more than
US$100 million.   The Debtors' exclusive period to file a
chapter 11 plan expires on May 10, 2007.


SCO GROUP: Denies Looming Bankruptcy Rumors from Novell
-------------------------------------------------------
Contrary to court documents filed by Novell Inc. in the U.S.
District of Utah, SCO Group Inc. spokesman Blake Stowell denies
the company is in financial disaster, Jennifer Mears of
LinuxWorld reports.

"We will report our fourth quarter financials on Jan. 17, 2007
and give an update at that time," LinuxWorld quotes Mr. Stowell
as saying.  "We consider it irresponsible of Novell's lawyers to
mischaracterize our financial well-being with these false
statements."

In a document filed with the District Court of Utah, Novell
claims that The SCO Group Inc., a UNIX vendor that is suing IBM
for alleged illegal incorporation of its proprietary Unix code
into Linux, is on the verge of bankruptcy, Ms. Mears relates.

"Contrary to SCO's assertion that a preliminary injunction
should be denied because it may accelerate SCO's bankruptcy,
SCO's imminent bankruptcy is a compelling reason to grant
Novell's motion," Novell's attorneys write in the filing.  "When
SCO goes into bankruptcy, it will not be because of Novell's
motion, but because of its own financial missteps.  For SCO,
bankruptcy is inevitable; it characterizes its assets as merely
those 'remaining' and does not rebut Novell's arguments that its
bankruptcy is imminent."

In September 2006, Novell demanded to recover a percentage of
the revenue SCO earned from its UNIX licensing deals with
Microsoft Corp. and Sun Microsystems Inc.

Novell claims that it is entitled to 95% of all revenue derived
from SCO's SVRX license agreements pursuant to a 1995 agreement
governing SCO's purchase of UNIX from Novell.  SCO, however, has
refused to give up any money, claiming that the Microsoft and
Sun licensing deals don't relate with any agreement signed in
1995.  SCO also claims that such a move would harm its chances
of winning its case against IBM, Ms. Mears reports.  

Utah District Court magistrate judge Brooke Wells in June
dismissed 182 of SCO's claims against IBM and U.S. District
Judge Dale Kimball upheld Judge Wells's ruling in a decision
handed down Nov. 29, 2006, InformationWeek reports.  The company
has filed a new motion claiming the November decision was
procedurally and substantially flawed.

                        About Novell Inc.

Headquartered in Waltham, Massachusetts, Novell, Inc. --
http://www.novell.com/-- delivers Software for the Open   
Enterprise.  With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.

Novell has sales offices in Argentina, Brazil and Colombia.

                        About SCO Group

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
-- http://www.sco.com/-- provides software technology for   
distributed, embedded and network-based systems, offering SCO
OpenServer for small to medium business and UnixWare for
enterprise applications and digital network services.  The
company has subsidiaries in Canada, France, Germany, India,
Japan, and the United Kingdom.


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


BIO-GROUP GMBH: Claims Registration Ends February 7
---------------------------------------------------
Creditors of Bio-Group GmbH have until Feb. 7 to register their
claims with court-appointed insolvency manager Norbert Westhoff.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 a.m. on Feb. 28, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

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

The District Court of Bielefeld opened bankruptcy proceedings
against Bio-Group GmbH on Dec. 27, 2006.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Bio-Group GmbH
         Gadderbaumer Str. 19
         33602 Bielefeld, Germany

         Attn: Marc Rothenpieler, Manager
         Homburger Str. 19
         51588 Nuembrecht, Germany

The insolvency manager can be contacted at:

         Dr. Norbert Westhoff
         Adenauerplatz 4
         33602 Bielefeld, Germany


DAIMLERCHRYSLER AG: Chrysler Will Present Restructuring Plan
------------------------------------------------------------
DaimlerChrysler AG's Chrysler Corp. will present a restructuring
plan because of a possible US$1.3 billion net loss for the year
ended Dec. 31, 2006, the American Bankruptcy Institute reports.

According to ABI, analysts expect that Chrysler will close
factories and lay off employees.

Between 2000 and 2001, Chrysler closed 13 car and components
plants.

                       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.


E-EYECARE GMBH: Claims Registration Ends February 2
---------------------------------------------------
Creditors of e-EyeCare GmbH have until Feb. 2 to register their
claims with court-appointed insolvency manager Joachim Exner.

Creditors and other interested parties are encouraged to attend
the meeting at 1:15 p.m. on March 19, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Fuerth
         Room 216
         II Office Building
         Baumenstrasse 32
         Fuerth, Germany      
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Fuerth opened bankruptcy proceedings
against e-EyeCare GmbH on Jan. 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         e-EyeCare GmbH
         Henkestr. 91
         91052 Erlangen, Germany

The insolvency manager can be contacted at:

         Joachim Exner
         Stahlstrasse 17
         90411 Nuernberg, Germany
         Tel: 0911-9512850
         Fax: 0911-95128510


ELEKTRO SALADIN: Claims Registration Ends February 1
----------------------------------------------------
Creditors of Elektro Saladin GmbH have until Feb. 1 to register
their claims with court-appointed insolvency manager Ulrich
Bert.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on March 15, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Darmstadt
         Hall 14
         1st Floor
         Building D
         Mathildenplatz 15
         64283 Darmstadt, Germany
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Darmstadt opened bankruptcy proceedings
against Elektro Saladin GmbH on Jan. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Elektro Saladin GmbH
         Attn: Thorsten Gerstung, Manager
         Landgraf-Georg-Road 3
         64283 Darmstadt, Germany

The insolvency manager can be contacted at:

         Ulrich Bert
         Birkenweg 24
         64295 Darmstadt, Germany
         Tel: 06151/66 72 9-0
         Fax: 06151/66 72 9-20
         E-mail: darmstadt@ltb-anwaelte.de


ELEKTRO-WERNER: Claims Registration Ends February 8
---------------------------------------------------
Creditors of Elektro-Werner GmbH have until Feb. 8 to register
their claims with court-appointed insolvency manager Martin
Wiedemann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on March 19, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Mannheim
         Area 232
         2nd Floor
         West Wing
         Schloss
         68149 Mannheim, Germany
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Mannheim opened bankruptcy proceedings
against Elektro-Werner GmbH on Dec. 29, 2006.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Elektro-Werner GmbH
         Attn: Gerhard Werner, Manager
         C 7-12
         68159 Mannheim, Germany

The insolvency manager can be contacted at:

         Martin Wiedemann
         O 3, 9-12
         68161 Mannheim, Germany
         Tel: 0621/16680


GASTRO-SERVICE: Creditors' Meeting Slated for February 8
--------------------------------------------------------
The court-appointed insolvency manager for Gastro-Service am
Schloss Charlottenburg GmbH, Hartwig Albers, will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 9:10 a.m. on Feb. 8.

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 insolvency
manager's report at 9:10 a.m. on April 19 at the same venue.

Creditors have until Feb. 25 to register their claims with the
court-appointed insolvency manager.

The District Court of Charlottenburg opened bankruptcy
proceedings against Gastro-Service am Schloss Charlottenburg
GmbH on Dec. 19, 2006.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Gastro-Service am Schloss Charlottenburg GmbH
         Luisenplatz 1
         10585 Berlin, Germany

The insolvency manager can be reached at:

         Hartwig Albers
         Luetzowstr. 100
         10785 Berlin, Germany


HSH NORDBANK: Fitch Affirms Individual C Rating; Outlook Stable
---------------------------------------------------------------
Fitch Ratings affirmed Germany's HSH Nordbank AG's ratings at
Issuer Default A with Stable Outlook and Short-term F1.  Fitch
also affirmed the bank's Individual rating at C and its Support
rating at 1.  At the same time, the agency affirmed the Long-
and Short-term ratings on HSH's guaranteed obligations at AAA
and F1+ respectively.

The Issuer Default, Short-term, and Support ratings of HSH
Nordbank AG are based on the extremely high potential for
support from its owners, in particular the State of Hamburg and
the State of Schleswig-Holstein.  They have agreed to hold,
together with the Savings Banks Association SH, at least 50.1%
of voting rights until the end of 2013.  The Long- and Short-
term ratings on HSH's guaranteed obligations are based on the
grandfathering of the guarantee provided by current and previous
public sector owners.

The Individual rating reflects HSH's adequate operating
profitability, good efficiency, diversification of business
lines, and an established global franchise in ship financing.  
It also reflects tight capitalization, concentration risks,
moderate loan coverage, material equity exposure, and a
dependence on wholesale markets for funding.

"HSH's credit fundamentals show a positive trend and its
operating profitability compares well with that of domestic
peers," says Sabine Bauer, associate director in Fitch's
Financial Institutions group.  "Further improvements in asset
quality, stronger capitalization, a stronger focus on its
franchises, and a stabilized management would strengthen the
bank's credit profile."  

The bank should benefit from its new minority-owner, seven
trusts advised by J.C. Flowers & CO, but Fitch will monitor any
changes in strategy and HSH's appetite for risk.  Downward
pressure could result from HSH's significant global exposures to
cyclical industries such as shipping, real estate, and
transport, and its considerable exposures to equities and
participations.

HSH achieves some risk and earnings diversification through low-
risk, low-margin assets, which, however, also increase the
bank's reliance on interest revenue and somewhat dilute its
interest margin.  Revenue growth in the first nine months of
2006 was largely volume-driven.  At the end of Fiscal-Year 2005,
loans for which specific loan loss provisions have been booked
stood at a relatively high 4.4% of gross loans.  Of this, around
49% was covered by loan impairment funds.  Overall, Fitch
considers HSH's coverage on impaired lending adequate but not
comfortably so.

HSH's eligible capital/weighted risks ratio, which includes
qualifying perpetual hybrid securities up to 30% of total
eligible capital, remains weak.  It stood at 4.5% at the end of
September 2006 compared with 4.4% at the end of Fiscal-Year
2005.  To finance future growth, the bank may continue to use
securitization to achieve regulatory but also economic capital
relief.

HSH is the main banker to the government of its home states and
the central bank for the savings banks in SH.  It was formed in
2003 following the merger between Landesbank Schleswig-Holstein
and Hamburgische Landesbank.  HSH's wholesale activities focus
on ship financing, corporate, and real estate lending.  It
operates foreign offices in northern Europe, London, Paris, New
York, San Francisco, and in some major Asian cities.  At the end
of the first nine months of 2006, HSH employed 4,433 staff.


K. & H. ELEKTRONIK: Claims Registration Ends February 8
-------------------------------------------------------
Creditors of K. & H. Elektronik GmbH have until Feb. 8 to
register their claims with court-appointed insolvency manager
Wolfgang Weidemann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on March 22, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Neumuenster
         Area B 031
         Law Courts
         Boostedter Road 26
         Neumuenster, Germany      
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Neumuenster opened bankruptcy proceedings
against K. & H. Elektronik GmbH on Dec. 14, 2006.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         K. & H. Elektronik GmbH
         Eidersteder Road 24
         24582 Bordesholm, Germany

         Attn: Norbert Krueger, Manager
         Eiderkamp 42
         24582 Bordesholm, Germany

The insolvency manager can be contacted at:

         Wolfgang Weidemann
         Wendenstrasse 4
         20097 Hamburg, Germany


KFZ-TEILE: Claims Registration Ends February 2
----------------------------------------------
Creditors of KFZ-Teile und Zubehoer Grammel & Naumann GmbH have
until Feb. 2 to register their claims with court-appointed
insolvency manager Christian Heintze.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on March 14, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden, Germany
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Dresden opened bankruptcy proceedings
against KFZ-Teile und Zubehoer Grammel & Naumann GmbH on
Dec. 22, 2006.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be contacted at:

         KFZ-Teile und Zubehoer Grammel & Naumann GmbH
         Attn: Franz Grammel, Manager
         Wessnitzer Road 15
         01558 Grossenhain, Germany

The insolvency manager can be contacted at:

         Christian Heintze
         Nieritzstrasse 14
         01097 Dresden, Germany
         Web site: http://www.kuebler-gbr.de/


NRG ENERGY: Repays US$400 Million of Term Loan B Facility
---------------------------------------------------------
NRG Energy Inc. repaid US$400 million of its term loan B
facility and completed the debt reduction portion of its capital
allocation program.  The company used cash on hand to fund the
repayment.

As reported in the Troubled Company Reporter on Aug. 4, 2006,
the company disclosed of a US$750 million share repurchase
program, which will be implemented in two phases.

Phase One was a US$500 million common share repurchase program
to be completed over the course of 2006.  In addition, the sale
of the Australian business is expected to provide around
US$400 million in net cash proceeds that NRG intends to use to
pay down its Term B loan in the first quarter of 2007.  
Consolidated project level debt associated with Australia is
US$177 million, bringing total expected debt reduction to US$577
million.

Phase Two of the share repurchase plan, which will be initiated
after the expected step up in the company's restricted payment
capacity at the end of the first quarter 2007, is an additional
US$250 million common share buyback.

NRG Energy, Inc. (NYSE: NRG) -- http://www.nrgenergy.com/--  
presently owns and operates a diverse portfolio of power-
generating facilities, primarily in Texas and the Northeast,
South Central and Western regions of the United States.  Its
operations include baseload, intermediate, peaking, and
cogeneration facilities, thermal energy production and energy
resource recovery facilities.  NRG also has ownership interests
in generating facilities in Australia, Brazil, and Germany.

                         *     *     *

As reported in the Troubled Company Reporter - Europe on
Nov. 14, 2006, Fitch Ratings affirmed the issuer default and
instrument ratings of NRG Energy following the company's
announced hedge reset and capital allocation program.  Fitch
said the Rating Outlook is Stable.

In addition, Moody's Investors Service changed the rating
outlook to negative from stable for NRG Energy, Inc. following
the announcement that the company had entered into a series of
transactions with counterparties to reset and extend existing
power and gas hedges at market prices, requiring a payment to
counterparties of around US$1.35 billion.  Moody's also affirmed
all existing ratings of NRG and assigned a B1 rating to the
planned issuance of US$1.1 billion of senior unsecured notes
which will be used by NRG to partially fund the counterparty
payment.

In a TCR-Europe report on Nov. 9, 2006, Standard & Poor's Rating
Services affirmed its 'B+' corporate credit on NRG Energy Inc.  
S&P said the outlook is stable.

The rating affirmation follows the company's announced plan to
issue US$1.1 billion of additional unsecured debt, a 30%
addition to the outstanding US$3.6 billion of unsecured debt.


PHOTRONICS INC: Posts US$29.3 Million Net Income in Fiscal 2006
---------------------------------------------------------------
Photronics Inc. filed its financial statements for the fiscal
year ended Oct. 29, 2006, with the U.S. Securities and Exchange
Commission on Jan. 11, 2007.

Net income for fiscal 2006 amounted to US$29.3 million compared
to the prior fiscal year's net income of US$38.7 million.  Net
income for the 2006 fiscal year included a restructuring charge
of US$15.6 million after tax in connection with the company's
operations in North America.

Sales for the 2006 fiscal year were US$454.9 million, up 3.2%
from the US$440.8 million reported in fiscal 2005.  
Semiconductor photomasks accounted for US$355.1 million or 78.1%
of revenues during fiscal 2006, while sales for FPD photomasks
accounted for US$99.8 million or 21.9%.  Year-over-year,
semiconductor photomask revenues decreased 1.8%, while FPD
photomask revenues increased 25.9%.

                Fourth Quarter Results of Operations

Net income for the fourth quarter of fiscal 2006 amounted to
US$9.8 million compared to the prior year's fourth quarter net
income of US$8.7 million.  Net income for the fourth quarter of
2006 included a restructuring charge of US$2.4 million after tax
in connection with the company's operations in North America.

Sales for the fourth quarter ended Oct. 29, 2006, were
US$115.3 million, up 3.1%, compared to US$111.8 million for the
fourth quarter of 2005.  Semiconductor photomasks accounted for
US$90.5 million or 78.5% of revenues during the fourth quarter
of fiscal 2006, while sales for flat panel display (FPD)
photomasks accounted for US$24.8 million or 21.5% of revenues.  

Michael J. Luttati, Chief Executive Officer shared his views of
the company's reported results.  "We are very pleased to have
finished our fiscal year on a high note with solid performance
in our fourth quarter.  The entire Photronics team executed with
clarity and purpose throughout fiscal 2006 to deliver positive
results while undertaking a significant transformation of the
company."

At Oct. 29, 2006, the company's balance sheet showed
US$1 billion in total assets, US$385.4 million in total
liabilities, US$46 million in minority interest, and
US$614.3 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Oct. 29, 2006, are available for
free at http://researcharchives.com/t/s?1873

                        About Photronics Inc.

Photronics Inc. -- http://www.photronics.com/ -- is a worldwide   
manufacturer of photomasks.  Photomasks are high precision
quartz plates that contain microscopic images of electronic
circuits.  A key element in the manufacture of semiconductors
and flat panel displays, photomasks are used to transfer circuit
patterns onto semiconductor wafers and flat panel substrates
during the fabrication of integrated circuits, a variety of flat
panel displays and, to a lesser extent, other types of
electrical and optical components.  They are produced in
accordance with product designs provided by customers at
strategically located manufacturing facilities in Asia, Europe,
and North America.  In Europe, the company maintains operations
in Dresden, Germany and Manchester, U.K.

                           *     *     *                     

As reported in the TCR-Europe on Nov. 3, 2006, Moody's Investors
Service affirmed its B1 corporate family rating on Photronics,
Inc.  Additionally, Moody's revised its probability-of-default
rating on the company's US$190 million 4.75% convertible
subordinated notes due 2006 to B2 from B3 and assigned a LGD5
rating on the loan.

Moody's also upgraded to B2 from B3 its probability-of-default
rating on the company's US$150 million 2.25% convertible
subordinated notes due 2008 and assigned a LGD5 loss-given-
default rating on the loan.


PRO/OPT GMBH: Claims Registration Ends February 9
-------------------------------------------------
Creditors of Pro/Opt GmbH Beratungshaus fuer Prozessoptimierung
have until Feb. 9 to register their claims with court-appointed
insolvency manager Karl-Dieter Sommerfeld.

Creditors and other interested parties are encouraged to attend
the meeting at 11:15 a.m. on March 13, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Room 142
         1st Floor
         Luxemburger Road 101
         50939 Cologne, Germany
      
The Court will also verify the claims set out in the insolvency
manager'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 Pro/Opt GmbH Beratungshaus fuer Prozessoptimierung on
Dec. 21, 2006.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be contacted at:

         Pro/Opt GmbH Beratungshaus fuer Prozessoptimierung
         Attn: Claudia Erasmus, Manager
         Duckmaus 8
         51429 Bergisch Gladbach, Germany

The insolvency manager can be contacted at:

         Karl-Dieter Sommerfeld
         Hammerweg 3
         51766 Engelskirchen, Germany


VISTEON CORP: Inks Exclusive Retail Distribution Accord with AGT
----------------------------------------------------------------
Visteon Corp. and Advanced Global Technology have entered into
an exclusive retail distribution agreement to market, sell, and
distribute electronics products.  

AGT will be distributing three new HD Radio(TM) receivers:
Visteon HD Radio receivers, the Visteon HD Jump(TM); the HD EZ
Connect, and the HD Table Top Radio along with a full line of
accessory products designed to enhance the installation and
reception of HD Radio(TM).

HD Jump(TM) is the first true HD Radio(TM) plug and play
receiver of its kind.  The unit delivers premium new HD2
multicast channels and crystal-clear sound quality and can be
used in a car, truck, RV or home.

Visteon's HD Jump(TM) docks into a cradle in the vehicle and an
optional home kit allows the receiver to also be used with a
home stereo.

HD Jump offers the full spectrum of HD Radio(TM) features,
including program associated data, such as real-time song title,
artist and album information, as well as multicasting, where
available.

The clarity of HD Radio technology allows FM stations to be
enjoyed with CD quality sound and boosts AM quality up to that
of FM sound.

More than 1,000 radio stations now broadcast HD Radio(TM)
signals in the U.S., with more than 400 offering new formats on
HD2 channels.

The cradle's built-in auxiliary input jack also enables users to
plug in an MP3 player and hear its contents through the
vehicle's sound system.

HD EZ Connect is a new HD Radio(TM) receiver that is designed to
easily connect to either an aftermarket or factory-installed car
audio systems to receive digital HD Radio(TM) programming.

HD Table Top Radio is a new HD Radio(TM) receiver delivering
high performance audio with a sleek design and intuitive
controls.  The unit features a large backlit six-line display,
alarm clock feature and is available in a variety of colors to
match any decor.

"This agreement allows Visteon to expand its automotive product
expertise and advanced technology," Greg Gyllstrom, vice
president, Visteon North American aftermarket, said.

"The relationship between Visteon and Advanced Global Technology
is an ideal match," Advanced Global Technology president Ben
Lowinger said.

"When you pair Visteon's advanced technology leadership in the
automotive electronics space with Advanced Global Technology's
proven capabilities in the retailer sector, we expect these new
products to deliver explosive growth for HD Radio(TM) in both
awareness and sales."

The Visteon HD Jump(TM), HD EZ Connect, and HD Table Top Radio
will be available at retailers this spring.

The products can be seen at these CES 2007 locations:

         Visteon Central Plaza (CP7)
         North Hall Booth 6427

         Advanced Global Technology
         Central Hall Booth 9817

         -- and --

         HD Radio(TM)
         North Hall Booth 4616

                          About HD Radio

More than 1,100 AM and FM radio stations, available to
approximately 80% of the U.S. population, are using HD Radio --
http://www.hdradio.comand http://www.ibiquity.com-- technology  
to transmit digital audio and data to their listeners.  Beyond
delivering dramatically improved sound quality over analog,
digital HD Radio technology allows stations to expand their
programming via HD2 multicast channels.  Over 500 stations today
are using HD2 channels to broadcast fresh new music and news
formats, showcase young artists and local bands, air non-English
language programming, and more.  Other HD Radio applications
include scrolling text and graphics content on receiver display
screens and delivery of real-time traffic updates.

                About Advanced Global Technology

Advanced Global Technology LLC -- http://www.advancedgt.com--  
is a cutting-edge product designer.  AGT globally distributes
and markets high quality and high performance XM Satellite Radio
plug-and-play receivers combined with all-encompassing
technologically advanced satellite radio accessories.  In
addition to its XM Satellite Radio products, AGT provides an
extended and original line of consumer electronics that blends
technology with the lifestyles of today's consumers.  AGT
produces inventive and imaginative products that integrate with
automobiles, home-stereos, home-theaters, boats, motorcycles and
recreational vehicles, and personal-wearable portables.

                  About Visteon Corporation

Headquartered in Van Buren Township, Mich., Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries and employs
approximately 50,000 people.

At Sept. 30, 2006, the Company's balance sheet showed total
assets of US$6.721 billion and total liabilities of US$6.823
billion resulting in a total shareholders' deficit of US$102
miilion.  Total shareholders' deficit at Dec. 31, 2005, stood at
US$48 million.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on auto supplier Visteon Corp.'s senior secured
bank facility, following the announcement that the company will
increase its term loan to US$1 billion from US$800 million.

The secured loan rating is 'B' and the recovery rating is '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.

As reported in the Troubled Company Reporter on Nov. 24, 2006,
Moody's Investors Service has downgraded Visteon Corporation's
Corporate Family Rating to B3 from B2, changed the ratings
outlook to stable from under review for possible downgrade and
affirmed the company's liquidity rating of SGL-3.


VISTEON CORP: Sees Challenging 2007 But Improved 2008 Production
----------------------------------------------------------------
Visteon Corp. revealed last week that it expects a challenging
2007 but forecast an improvement in 2008.  The company said it
will focus on its restructuring efforts and cash flow
management.

The company said it expects to have lower production on
platforms it supplies to Ford Motor Corp., Renault SA, Peugeot
S.A., and Nissan Motor Co. Ltd. in North America.  It expects
production increases for Ford in Europe, Hyundai Motor Co. Ltd.,
and Kia Motors Corp.

Visteon also disclosed that it won US$1 billion in new contracts
for products from:

   -- North America:

      a. General Motors Corp. for electronics, interiors, and
         climate,

      b. Ford Motor for electronics and climate,

      c. DaimlerChrysler AG for electronics, interiors, climate,
         and lighting, and

      d. other Asian original equipment manufacturers for
         interiors,

   -- Europe:

      a. Volkswagen for electronics,
      b. Peugeot for interiors and electronics,
      c. General Motors for interiors, and
      d. Ford Motor for climate, electronics, and interiors,

   -- Asia Pacific:

      a. Mazda for climate,
      b. Hyundai and Kia for climate and interiors,
      c. General Motors for climate and interiors, and
      d. Ford Motor for climate.

                             Liquidity

The company expects to use free cash flow in 2007 and 2008, with
positive figures in 2009.  The company further says that it does
not have significant debt maturities until 2010.

At the end of 2006, it expects to have a cash balance of US$1
billion, 70% of which comes from U.S. and Europe sales.

                  About Visteon Corporation

Headquartered in Van Buren Township, Mich., Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries and employs
approximately 50,000 people.

At Sept. 30, 2006, the Company's balance sheet showed total
assets of US$6.721 billion and total liabilities of US$6.823
billion resulting in a total shareholders' deficit of US$102
miilion.  Total shareholders' deficit at Dec. 31, 2005, stood at
US$48 million.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on auto supplier Visteon Corp.'s senior secured
bank facility, following the announcement that the company will
increase its term loan to US$1 billion from US$800 million.

The secured loan rating is 'B' and the recovery rating is '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.

As reported in the Troubled Company Reporter on Nov. 24, 2006,
Moody's Investors Service has downgraded Visteon Corporation's
Corporate Family Rating to B3 from B2, changed the ratings
outlook to stable from under review for possible downgrade and
affirmed the company's liquidity rating of SGL-3.


WAGLER GMBH: Claims Registration Ends February 2
------------------------------------------------
Creditors of Wagler GmbH Die Autoprofis have until Feb. 2 to
register their claims with court-appointed insolvency manager
Christoph Mathern.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on March 20, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Hall 24
         Law Courts Prince Road 21-23
         09130 Chemnitz, Germany
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Chemnitz opened bankruptcy proceedings
against Wagler GmbH Die Autoprofis on Dec. 22, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Wagler GmbH Die Autoprofis
         Attn: Joerg and Steffi Wagler, Managers
         Hausdorfer Road 16
         09669 Frankenberg OT Muehlbach
         Germany

The insolvency manager can be contacted at:

         Christoph Mathern
         Kanzlerstr. 32-34
         09112 Chemnitz, Germany
         Tel: (0371) 490 91 67
         Fax: (0371) 490 94 44
         Web site: http://www.poessl.com/


WEBER AKUSTIK: Claims Registration Ends February 2
--------------------------------------------------
Creditors of Weber Akustik- und Trockenbau GmbH have until
Feb. 2 to register their claims with court-appointed insolvency
manager Rainer M. Bahr.

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

The meeting of creditors will be held at:

         The District Court of Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden, Germany
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Dresden opened bankruptcy proceedings
against Weber Akustik- und Trockenbau GmbH on Dec. 22, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Weber Akustik- und Trockenbau GmbH
         Alexander-Puschkin-Place 2 f
         01587 Riesa, Germany

         Attn: Guenther Weber, Manager
         Lessingstrasse 6
         01587 Riesa, Germany

The insolvency manager can be contacted at:

         Rainer M. Bahr
         Obergraben 10
         01097 Dresden, Germany


WERNER MUCKLE: Claims Registration Ends February 2
--------------------------------------------------
Creditors of Werner Muckle GmbH have until Feb. 2 to register
their claims with court-appointed insolvency manager Thomas
Joswig.

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

The meeting of creditors will be held at:

         The District Court of Mannheim
         Area 232
         2nd Floor
         West Wing
         Schloss
         68149 Mannheim, Germany
      
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Mannheim opened bankruptcy proceedings
against Werner Muckle GmbH on Dec. 22, 2006.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Werner Muckle GmbH
         Attn: Werner Muckle, Manager
         Meckenheimer Str. 18
         68199 Mannheim, Germany

The insolvency manager can be contacted at:

         Thomas Joswig
         Besselstr. 2-4
         68219 Mannheim, Germany
         Tel: 0621/8455780
         Web site: http://www.kuebler-gbr.de/


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


TIM HELLAS: Fitch Junks Subordinated Notes & Sr. Credit Facility
----------------------------------------------------------------
Fitch Ratings assigned Hellas Telecommunications II's
subordinated floating-rate notes due 2015 final ratings of
CCC+/RR6 following the receipt of final documents.  Other debt
issue ratings of TIM Hellas affiliates are affirmed:

    -- Hellas Telecommunications V senior credit facility:
       B+/RR3;

    -- Hellas Telecommunications V senior secured floating-rate
       notes due 2012: B+/RR3;

    -- Hellas Telecommunications III senior unsecured notes due
       2013: B/RR4.

Further details of the recovery ratings analysis can be found in
the Credit Update for TIM Hellas Telecommunications S.A.

TIM Hellas/Q Telecom is the third largest mobile operator in
Greece with 3.7 million customers at the third quarter of 2006,
and pro-forma revenues and adjusted EBITDA of EUR1.1 billion and
EUR369 million for the 12 months ended and third quarter 2006.


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


AES CORP: Trial on Dominican Republic's Lawsuit Set for March 5
---------------------------------------------------------------
Judge Gerald Bruce Lee of the Commonwealth of Virginia Federal
Court will start hearing the lawsuit filed against AES Corp. by
the Dominican Republic on March 5, Dominican Today reports.

As reported in the Troubled Company Reporter-Latin America on
Jan. 10, 2007, the Dominican government sought for US$80 million
in damages from AES Corp. for 82,000 tons of coal ash dumped on
its beaches.  The government said that the tons of ash were left
on the beaches in Manzanillo and the Samana Bay port town of
Arroyo Barril between October 2003 and March 2004 without proper
government permits.  These tons of ash were transported from an
AES Plant in Guayama, Puerto Rico.  The Dominican nation also
sued Roger Charles Fina, the owner of the firm hired by AES
Corp. to transport the ash.  Max Puig, the Dominican Republic's
environment and natural resources secretary, said that
representatives from the Dominican nation and AES Corp. would
meet with mediators in Virginia, U.S.A., to discuss settling the
lawsuit.  If no settlement would be reached this week, the
dispute would go before a federal jury in the U.S. on March 5.

Dominican Today underscores that the judge could weigh if
evidence exists to reach at an agreement.

Mr. Puig believes that justice will prevail and said that the
Dominican government is willing to discuss a possible agreement,
as long as AES Corp. assumes its responsibility and removes the
rock ash, Dominican Today states.

AES Corporation -- 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 10 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.

                        *     *     *

As reported in the TCR-Europe on Oct. 23, 2006, Moody's
Investors Service affirmed its B1 Corporate Family Rating for
AES Corp. in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on the company's loans
and bond debt obligations including the B1 rating on its senior
unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will
experience a 55% loss in the event of a default.


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


ALITALIA SPA: Italy to Welcome Air France Bid, Says Romano Prodi
----------------------------------------------------------------
The Italian government is not blocking a possible bid by Air
France-KLM for its 30.1% stake in Alitalia S.p.A. provided that
the French airline keeps most of the national carrier's routes,
Bloomberg News reports citing Prime Minister Romano Prodi.

"We have decided to put Alitalia on the market, and if Air
France makes the best offer, it will be Air France," Mr. Prodi
told TV news channel France24.  

Mr. Prodi said a tie-up with Air France would be a good
solution, but added that the Italian government would attach
some conditions on a possible deal.  

"If all the routes are concentrated in Paris, we will suffer,"
Mr. Prodi noted.  "If we consider that Italy is a big market,
the second air transport market in Europe, then I think a
marriage would be very positive for France and Italy."

                  Formal Bidding Process

In a TCR-Europe report on Jan. 3, the Italian government
formally launched the bidding process for its 30.1% stake in
troubled national carrier Alitalia S.p.A. on Dec. 29, 2006.

Italy's Ministry of Economy and Finance is inviting interested
parties to submit a non-binding offer for around 30.1% to 49.9%
of Alitalia's capital and 1,207,147,404 convertible bonds of the
carrier's 7.5% 2002-2010 debenture loan.  The sale will take
place through a competitive procedure involving direct
negotiations with potential buyers.

Interested parties, which should have at least EUR100 million in
capital, have until 6:00 p.m. on Jan. 29, 2007, to submit their
written expression of interest to Merrill Lynch International,
the sale advisor.

According to the Ministry, potential buyers will be selected
based on the economic terms of the offers received and an
analysis of the business plans.  The Ministry will also examine
the compatibility of the offers and business plans with the
Alitalia's restructuring, development and relaunch objectives.

The Ministry also outlined mandatory commitments for the buyer
to:

   -- keep at least a 30.1% stake in Alitalia until the business
      plan is successfully carried out:

   -- safeguard Alitalia's national identity; and

   -- guarantee the quality and quantity of services offered and
      coverage of the territory.

Several Italian entrepreneurs are reportedly interested in
Alitalia, The Times reports.  Local bets include:

   -- Carlo Toto, founder of Air One,
   -- Luca di Montezemolo, head of Fiat and Ferrari;
   -- Diego Della Valle, chief of the Tod's shoe empire; and
   -- Banca Intesa and Sanpaolo IMI;

As reported in the TCR-Europe on Jan. 5, Paolo Alazraki, owner
of Real Dreams Italy Srl, heads a group of 16 investors that
indicated their interest in acquiring the national carrier.

The government aims to complete the process this month.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  In Europe, the company reaches 45
airports, with 1,238 flights per week.  In the rest of the
world, the Alitalia Group's aircrafts operate out of 32 airports
with 255 flights per week.  The Alitalia Group network is
centered on two main airports, Rome Fiumicino and Milan
Malpensa, and includes, as of Sept. 30, 2006, an operating fleet
of 182 aircrafts.  The Italian government owns 49.9% of
Alitalia.

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


CASSA DI RISPARMIO: Fitch Affirms Individual C Rating
-----------------------------------------------------
Fitch Ratings affirmed Italy-based Cassa di Risparmio di
Firenze's ratings at Issuer Default A-, Short-term F2,
Individual C, and Support 3.  The Outlook on the Issuer Default
rating is Stable.

The IDR, Short-term, and Individual ratings reflect CRF's good
regional franchise, satisfactory revenue generation, and
continuing improvement in risk management.  They also reflect
its just adequate capital base and an acceptable asset quality
despite low loan impairment allowance.

CRF's business plan, unveiled in March 2006, aims to increase
its profitability through higher volumes and a stronger focus on
consumer credit, bancassurance, leasing, and factoring.  
Significant loan growth, better pricing, and more efficient
capital allocation should underpin profitability.  A
streamlining of its distribution network and closer cross
selling should help the bank's revenue generation, while costs
should benefit from closer group integration.

Through the acquisition of small savings banks, CRF has built a
strong regional franchise, strengthening its local competitive
position and preserving its independence in an increasingly
competitive market.  It has diversified its revenue generation
through a 50% stake in the highly profitable Findomestic Banca,
Italy's leading provider of consumer finance.  Cost cutting
resulted in a satisfactory 59% cost/income ratio for the nine
months ended 2006.

CRF has become more aware of credit risk, reducing its appetite
and tightening its internal controls.  The bank's stock of gross
impaired loans has decreased slightly since 2005, to represent
an adequate 3.67% of its total loans at the end of June 2006.  
Although at 50% of its impaired loans CRF's loan impairment
allowance is lower than the average of its domestic peers, it
has proved adequate so far.

CRF's capital adequacy ratios are just adequate.  At the end of
the first half of 2006, its eligible capital represented a 6.07%
of its regulatory risk-weighted assets.  Market risk controls
are adequate.  Although CRF takes some interest-rate risk, its
exposure is manageable.

CRF, based in the central region of Tuscany, provides a full
range of banking services, while associate companies provide
asset management, life, and non-life insurance.  At the end of
the third quarter of 2006, CRF had 547 branches and 5,769 staff.


TK ALUMINUM: Breaks Financial Covenant; Misses Interest Payment
---------------------------------------------------------------
TK Aluminum Ltd., the indirect parent of Teksid Aluminum
Luxembourg S.a.r.l., S.C.A., disclosed an update on the
liquidity situation, failure to comply with certain financial
covenants, continued discussions regarding additional liquidity
resources and non-payment of Senior Note interest.

The Company's efforts to secure a bridge loan as previously
announced are continuing and it has executed a commitment
letter, subject to certain conditions, with one source.  In
addition to the Nemak transaction, negotiations for the sale of
the assets located in France, Germany and Italy are progressing.

               Liquidity and Covenants Compliance

The Company announced that both its senior and second lien
lenders have expressed their support for a waiver of the
previously announced defaults of certain non-financial covenants
under the Senior Credit Facility and Second Lien Credit
Facility.  However, the Company will not be in compliance with
certain financial covenants under its Senior Credit Facility and
its Second Lien Credit Facility for the period ended
Dec. 31, 2006.  

As a result, any available borrowings under the Senior Credit
Facility will not be permitted without agreement from its
lenders.  In addition, the Senior and, subject to certain
limitations, Second Lien lenders have the ability to exercise
all of their rights, including requiring the amounts outstanding
under the Senior Credit Facility and Second Lien Credit Facility
to become due and payable.  The Company is in discussions with
the lenders' agents to obtain waivers of such defaults with a
view to allowing it to complete the divestiture process.

To improve its near term liquidity the Company is exploring a
variety of options.  Management has obtained favorable terms
from key customers that include, among others, accelerated
payment terms and letters of credit to secure its aluminum
requirements.  In addition, the Company has made progress in
securing a bridge loan and has executed a commitment letter for
bridge financing, subject to certain conditions, with one
source.  The Company has also approached the agent for its
existing lenders to discuss the possibility of a bridge loan.  
The Company has and continues to pay suppliers, factors and
vendors in the ordinary course of business, consistent with past
practices.

There can be no assurance that the Company will ultimately be
successful in obtaining additional capital resources or that the
Nemak transaction will be consummated within the time period
necessary to provide the Company with sufficient liquidity to
fund operations, or at all.

                Interest Payment on Senior Notes

In balancing its operating cash requirements, the Company will
not make the EUR14.9 million payment of interest due on Jan. 15
on its outstanding EUR240 million of 11-3/8% Senior Notes due
2011.

Under the indenture, bondholders will be unable to declare an
event of default and accelerate the maturity of the Senior Notes
unless the non-payment of interest continues following the
expiration of a 30-day grace period or, during such period, the
lenders under the Senior Credit Facility or the Second Lien
Facility accelerate the maturity of their loans.  However, other
remedies may be available.

                      Divestiture Process

As previously announced on Nov. 2, 2006, the Company had entered
into a definitive agreement to sell certain assets to Tenedora
Nemak, S.A. de C.V., a subsidiary of ALFA, S.A.B. de C.V.  Under
the terms of the agreement, the Company is to sell its
operations in North America -- except for its lost-foam
operations in Alabama, which will be retained by the Company --
and its operations and interests in South America, China and
Poland.  

As consideration for the operations being purchased, the Company
will receive US$495.9 million in cash, along with a synthetic
equity interest in the Nemak business post-closing.  The
transaction, which would close during the first quarter of 2007,
has been approved by both the board of directors of TK Aluminum
Ltd. and by Nemak.  Closing of the deal is subject to various
conditions, including the receipt by seller of certain consents
and waivers from the Company's bondholders and other customary
conditions, including regulatory approvals.  On Nov. 30, 2006,
the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act was terminated in respect of the sale of the
assets in the United States.

As reported on Dec. 13, 2006, the Company executed a non-binding
letter of intent to sell to one or more affiliates of BAVARIA
Industriekapital AG all of the Company's equity interests in its
subsidiaries located in France, Italy and Germany.  The
consummation of the transaction is subject to a number of
conditions, including execution of a definitive agreement,
regulatory approvals, completion of satisfactory due diligence,
and approval by the board of directors of the Company of the
definitive agreement and all transactions contemplated thereby.

                          Tender Offer

The Company is currently examining its options with respect to
the terms of the tender offer for the Senior Notes and related
consent solicitation and intends to recommence the offer on
terms and conditions to be determined.  A variety of factors,
including the deterioration of the automotive market,
unfavorable foreign exchange movements, longer lead time to
closure of the Nemak transaction and working capital and other
funding requirements for remaining European operations, have
adversely affected the amount of funds available for the
repurchase of our Senior Notes which was contemplated at the
time of the announcement of the Nemak transaction.  Accordingly,
the Company expects that the amount available for any such
repurchase will represent a significant discount from par.

                       About TK Aluminum

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal   
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semipermanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.

                        *     *     *

As reported in the TCR-Europe on Nov. 7, 2006, Moody's Investors
Service placed the Caa1 Corporate Family Rating of Teksid
Aluminum Ltd. and the Caa3 senior unsecured rating of Teksid
Aluminum Luxembourg Sarl SCA on review with an uncertain
direction, following the company's announcement that it has
entered into a definitive agreement to sell certain core assets
to Tenedora Nemak, S.A. de C.V and the intention of a redemption
of outstanding debt with the proceeds of the asset disposal.

On Review Direction Uncertain:

Issuer: TK Aluminum Ltd.

    * Corporate Family Rating, currently Caa1

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Senior Unsecured Regular Bond/Debenture, currently Caa3

Outlook Actions:

Issuer: TK Aluminum Ltd.

    * Outlook, Changed To Rating Under Review From Negative

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Outlook, Changed To Rating Under Review From Negative


TK ALUMINUM: S&P Puts Default Rating on Missed Interest Payment
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Bermuda-incorporated TK Aluminum
Ltd., a manufacturer of aluminum auto parts, to 'SD' from
'CCC-'.  

It also lowered its long-term debt rating on the EUR240 million
senior unsecured notes issued by Teksid Aluminum Luxembourg
S.a.r.l., S.C.A. and guaranteed by TKA to 'D' from 'C'.

At the same time, the ratings were removed from CreditWatch,
where they had been placed with developing implications on
Nov. 6, 2006, following TKA's announcement that it had entered
into a definitive agreement to sell some of its assets to
Tenedora Nemak S.A., de C.V.

"The downgrade follows TKA's default on the Jan. 15 interest
payment on its outstanding EUR240-million notes maturing in
2011," said Standard & Poor's credit analyst Barbara Castellano.

TKA has stated that it will not have been in compliance with the
financial covenants on its senior and second-lien credit
facilities at Dec. 31, 2006, -- the likelihood of which it had
warned about in December.  The company is now negotiating to
obtain waivers on its lenders' right to limit the usage
of the lines and to require the immediate repayment of the
amount outstanding.

TKA is working on closing the sale of its operations in North
America, South America, China, and Poland to Tenedora Nemak,
S.A. de C.V., which should occur in the first quarter of 2007.

"Notwithstanding the definitive agreement with Nemak, we see
some risks in the possible further delays in closing the
transaction," said Ms. Castellano.  "A number of agreements and
waivers are needed to complete the deal, and any further delay
in negotiations would complicate TKA's already extremely tight
liquidity situation."


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


AP-2 LLP: Creditors Must File Claims by February 23
---------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP AP-2 insolvent on Nov. 30, 2006.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Feb. 23 to submit written proofs of claim
to:

         LLP AP-2
         Kojedub Str. 46
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 28-01-36


JANALYK LLP: Proof of Claim Deadline Slated for February 27
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP Janalyk insolvent on Nov. 28, 2006.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Feb. 27 to submit written proofs of claim
to:

         LLP Janalyk
         Micro District 27, 39-35
         Aktau
         Mangistau Region
         Kazakhstan
         Tel: 8 (3292) 41-32-87


KAZANKA-99 LLP: Claims Filing Period Ends February 27
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Kazanka-99 insolvent on
Dec. 7, 2006.

Creditors have until Feb. 27 to submit written proofs of claim
to:

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


LOCKSTEN INVESTMENTS: Creditors' Claims Due February 22
-------------------------------------------------------
LLP Locksten Investments has declared insolvency.  Creditors
have until Feb. 22 to submit written proofs of claim to:

         LLP Locksten Investments
         Kurmangazy Str. 36
         Almaty, Kazakhstan
         Tel: 8 (3272) 61-15-28
              8 (3272) 67-44-54


MEDIA-PRESS LTD: Proof of Claim Deadline Slated for February 23
---------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Media-Press Ltd. insolvent on Dec. 7, 2006.

Creditors have until Feb. 23 to submit written proofs of claim
to:

         LLP Media-Press Ltd.
         Micro District 11, 23-3
         Almaty, Kazakhstan
         Tel: 8 (3272) 21-33-90
              8 (7017) 56-42-06


MONTAGESERVICE-EKIBASTUZ LLP: Creditors' Claims Due February 27
---------------------------------------------------------------
LLP Montageservice-Ekibastuz has declared insolvency.  Creditors
have until Feb. 27 to submit written proofs of claim to:

         LLP Montageservice-Ekibastuz
         Energetikov Str. 81-18
         Ekibastuz
         Pavlodar Region
         Kazakhstan


NURIAN INTERNATIONAL: Claims Registration Ends February 27
----------------------------------------------------------
LLP Nurian International Company has declared insolvency.  
Creditors have until Feb. 27 to submit written proofs of claim
to:

         LLP Nurian International Company
         Micro District 3a, 26-4
         Aktau
         Mangistau Region
         Kazakhstan


SOLTKAZJOL LLP: Creditors Must File Claims by February 27
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Soltkazjol insolvent on
Nov. 29, 2006.  Subsequently, bankruptcy proceedings were
introduced at the company.

Creditors have until Feb. 27 to submit written proofs of claim
to:

         LLP Soltkazjol
         Jumabaev Str. 102-25
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan


UGINTRADE LTD: Creditors' Claims Due February 27
------------------------------------------------
LLP Ugintrade Ltd. has declared insolvency.  Creditors have
until Feb. 27 to submit written proofs of claim to:

         LLP Ugintrade Ltd.
         Balykshy
         Tulkulbassky District
         South Kazakhstan Region
         Kazakhstan


ZARYA LLP: Claims Filing Period Ends February 27
------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Zarya insolvent on Dec. 7, 2006.

Creditors have until Feb. 27 to submit written proofs of claim
to:

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


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


DOSTUK-SEVER LLC: Creditors' Claims Due February 23
---------------------------------------------------
LLC Dostuk-Sever has declared insolvency.  Creditors have until
Feb. 23 to submit written proofs of claim.

Inquiries can be addressed to (+996 312) 68-07-22.


TASY PHARM: Claims Registration Ends February 27
------------------------------------------------
LLC Tasy Pharm has declared insolvency.  Creditors have until
Feb. 27 to submit written proofs of claim.

Inquiries can be addressed to (+996 312) 61-20-47.


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


DANA CORP: Court OKs Trailer Axles Amended APA with Hendrickson
---------------------------------------------------------------
The Hon. Burton R. Lifland of the U.S. Bankruptcy Court for the
Southern District of New York approves Dana Corp. and its
debtor-affiliates' amended asset purchase agreement with
Hendrickson USA LLC for the sale of the Trailer Axles Business.

Hendrickson will pay around US$32,500,000 for the Business.

The Debtors and Hendrickson amended their APA to reflect that:

    * Hendrickson will pay US$20,740,000, plus or minus
      adjustments for the domestic assets of Trailer Axles;

    * Hendrickson will purchase the Canadian assets for
      US$9,760,000 and the China assets for US$2,000,000;

    * the Debtors will pay an US$812,500 Termination Fee to
      Hendrickson if an Alternative Transaction is contemplated;
      and

    * the Debtors will reimburse Hendrickson up to US$162,500
      for out-of-pocket expenses.

The Debtors also filed a revised proposed order, which provides
that they and Dana Canada Corp. are not authorized to sell or
assign any interests in any of the equipment that GE Canada
Asset Financing Holding Company leases to Dana Canada pursuant
to a Master Lease Agreement, dated June 27, 2003, and Schedules
001 and 002.

Dana Canada's obligations to GE Canada under the Lease or Dana
Corp.'s guaranty will not be affected by the proposed sale.

              Enterprise Welding Sought Clarification

The Debtors and Enterprise Welding and Fabricating Inc. are
parties to a Trade Agreement under which Enterprise manufactures
components pursuant to exacting standards and specifications and
in accordance with a timetable to comply with the Debtors' "just
in time" production model.

According to Steven B. Beranek, Esq., at Corsaro & Associates
Co., LPA, in Westlake, Ohio, Enterprise had not been granted any
assurance that it will continue to be a supplier to the
successful bidder or that it will not be forced to pay for the
sub-components it ordered in anticipation of the Debtors'
demands.

Mr. Beranek noted that Hendrickson USA LLC is a competitor of
the Debtors, thus, it is possible that instead of continuing the
Debtors' line of trailer axles, Hendrickson will retire the line
to increase demand for its own brand of trailer axles.  Should
Hendrickson do this, it will not need the components
manufactured by Enterprise since Hendrickson's trailer axles are
significantly different than the Debtors' axles.  Mr. Beranek
said there is a great uncertainty as to when any demand for
Enterprise's components will cease.

Mr. Beranek asserted that if Enterprise is not given sufficient
advance notice of the cessation of demand for the component
parts, Enterprise will experience financial distress because it
will need to pay the sub-component parts and raw materials that
it ordered in advance to meet the Debtors' needs.

Before their bankruptcy filing, the Debtors have indicated that
their demand for component parts from Enterprise will increase.  
The increased orders, however, have not materialized, leaving
Enterprise with excess inventory.

Mr. Beranek added that if Enterprise fails to perform its
obligations under the Trade Agreement, it maybe required to
refund the payments previously made by the Debtors.  The   
payments were necessary for Enterprise's business, and if it is
compelled to return them, it would cause great financial
distress.

Thus, Enterprise asked the Court to direct the Debtors to
clarify its responsibilities under the Trade Agreement whether
it must still provide the same level of service as it did
prepetition.

Enterprise also asked the Court to direct the Debtors to assure
that:

    (a) it will be reimbursed for the financial commitments it
        was required to make to fulfill the Debtors' production
        requirement; or

    (b) Hendrickson or another successful bidder will purchase
        the components that Enterprise has already committed or
        will provide Enterprise with at least six months'
        advance notice prior to the cessation of purchasing its
        products.

                       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.   
Dana has facilities in China, Argentina and Italy.

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: Wants Warehouse Services Agreement with AMI Approved
---------------------------------------------------------------
Dana Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to approve a
settlement agreement and to assume an amended and modified
services agreement with American Materials Inc.

Pursuant to a Warehouse Services Agreement, the Debtors lease
warehouse space at a facility owned by American Materials Inc.
located in Henderson, Kentucky.  AMI also provides the Debtors
with basic services relating to the transfer, inventory and
storage of the Debtors' goods.

In exchange for the AMI Services, the Debtors pay US$34,650
every month.  The Debtors make additional payments as additional
services are provided.  The Services Agreement will expire on
Oct. 19, 2009, and is not terminable by the Debtors except
upon a default by AMI.

In September 2006, AMI filed a proof of claim asserting
US$217,685.  In November and December 2006, the Debtors paid an
aggregate of US$57,274 on account of certain postpetition
charges under the Services Agreement.

In October 2006, AMI asked the Court to compel the Debtors to
surrender the Henderson Facility and pay AMI's administrative
claims.  The Debtors asserted that the Services Agreement is not
an unexpired nonresidential real property lease, but rather is
an executory contract that had not yet been assumed nor
rejected.

The Debtors have reviewed the Services Agreement and determined
that the AMI Services are not necessary for the entire remaining
term of the Services Agreement; the Debtors, however, require
uninterrupted access to the AMI Services at the AMI Facility in
the short term.  

Corinne Ball, Esq., at Jones Day, in New York, says the Debtors
are in the process of implementing their strategic plan to
streamline their supply chain, including reducing their reliance
on outside warehousing services, like those provided by AMI, and
utilizing excess space in other Dana-owned facilities.  

Based on their projections for the implementation of the
streamlining plan, the Debtors believe that the AMI Services
will be needed only until the end of 2007.

Ms. Ball says that if AMI's Motion to Compel is granted and the
Services Agreement deemed rejected, the Debtors would experience
disruption in their business operations due to a lack of a
suitable substitute for the AMI Services or the ability to
complete a smooth transition to another warehouse services
provider.

Although the Debtors believe that the Services Agreement
properly is considered an executory contract that need not be
assumed or rejected until the confirmation of any plan of
reorganization, Ms. Ball adds that there is no guarantee that
the Debtors would prevail in a litigation.

Thus, to mitigate the risk and provide other benefits to their
estates, the Debtors worked with AMI to explore possible
resolutions to the parties' disputes relating to the Services
Agreement.

The parties entered into a Settlement Agreement, which provides
that:

    (a) the parties will shorten the remaining term of the
        Services Agreement until Dec. 31, 2007;

    (b) payment terms are extended from 30 days to net 35 days.
        The late fees for all invoices issued under the Services
        Agreement will be increased from 1% to 2% of the invoice
        amount and payments for any past due amounts will be
        made immediately after the Debtors receive written
        notice of payment default from AMI.

    (c) the Debtors will assume the Services Agreement, as
        amended and modified.

    (d) the Debtors will pay US$67,010 to AMI as cure, in full
        satisfaction of their obligations under the Services
        Agreement.

    (e) AMI will be granted an allowed general unsecured
        non-priority claim against the Debtors for US$325,000.

    (f) the parties mutually release all claims they may have
        against each other arising from the Services Agreement.

    (g) AMI will withdraw its Motion to Compel.

                       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.   
Dana has facilities in China, Argentina and Italy.

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).


SISTEMA CAPITAL: Fitch Rates Debt Issuance Program at B+
--------------------------------------------------------
Fitch Ratings assigned Sistema Capital S.A.'s guaranteed debt
issuance program a final B+ rating.  

The program, guaranteed by JSFC Sistema, has a maturity of 30
years and may issue up to US$3 billion.  This rating action
follows a review of the final terms and conditions, confirming
information already received when Fitch assigned an expected
rating of B+ on Dec. 12, 2006.

The program is structured on par with Sistema's senior unsecured
obligations.  The documentation contains a number of covenants
including negative pledge, limitation on leverage of up to 4x
total debt to operating income before depreciation and
amortization, limitation on shareholder distributions, and
certain limitations on assets sale.  Sistema has to ensure that
its subsidiaries are not restricted in paying dividends and
providing loans to the parent.  Certain caveats apply to the
covenants above.

Sistema is a diversified Russian holding company with interests
in mobile and fixed-line telecoms, real estate, insurance,
technology, banking, and other industries.  Sistema's ratings
reflect the credit quality of its operating subsidiaries, its
ability to move cash around the group, and the structural
subordination to creditors at the operating company level.  In
2006, Sistema's key operating subsidiaries moved towards the
cash generative stage of their business cycles, leading to a
Positive Outlook.

Telecoms are expected to dominate Sistema's operating and
financial profiles although the holding company has gradually
diversified into other segments, e.g. real estate.  The holding
company's strategic ambitions are narrowed to seven key
industries; however, Sistema is contemplating diversification
into other industries where it may lack experience.  Sistema has
expressed interest to participate in a number of large
mergers/acquisitions, which may change its credit profile.  
Fitch sees this as an event risk.  The holding company has
valuable non-consolidated assets on its balance sheet, providing
considerable financial flexibility.

Group total leverage, while consistent with Sistema's ratings,
has been rising in 2006.  This has been mitigated by a number of
IPOs in its operating subsidiaries, which helped to ease the
leverage metrics on a net debt basis.  More IPOs may follow in
2007.


TEKSID ALUMINUM: Parent Misses Senior Notes Interest Payment
------------------------------------------------------------
TK Aluminum Ltd., the indirect parent of Teksid Aluminum
Luxembourg S.a.r.l., S.C.A., disclosed an update on the
liquidity situation, failure to comply with certain financial
covenants, continued discussions regarding additional liquidity
resources and non-payment of Senior Note interest.

The Company's efforts to secure a bridge loan as previously
announced are continuing and it has executed a commitment
letter, subject to certain conditions, with one source.  In
addition to the Nemak transaction, negotiations for the sale of
the assets located in France, Germany and Italy are progressing.

               Liquidity and Covenants Compliance

The Company announced that both its senior and second lien
lenders have expressed their support for a waiver of the
previously announced defaults of certain non-financial covenants
under the Senior Credit Facility and Second Lien Credit
Facility.  However, the Company will not be in compliance with
certain financial covenants under its Senior Credit Facility and
its Second Lien Credit Facility for the period ended
Dec. 31, 2006.  

As a result, any available borrowings under the Senior Credit
Facility will not be permitted without agreement from its
lenders.  In addition, the Senior and, subject to certain
limitations, Second Lien lenders have the ability to exercise
all of their rights, including requiring the amounts outstanding
under the Senior Credit Facility and Second Lien Credit Facility
to become due and payable.  The Company is in discussions with
the lenders' agents to obtain waivers of such defaults with a
view to allowing it to complete the divestiture process.

To improve its near term liquidity the Company is exploring a
variety of options.  Management has obtained favorable terms
from key customers that include, among others, accelerated
payment terms and letters of credit to secure its aluminum
requirements.  In addition, the Company has made progress in
securing a bridge loan and has executed a commitment letter for
bridge financing, subject to certain conditions, with one
source.  The Company has also approached the agent for its
existing lenders to discuss the possibility of a bridge loan.  
The Company has and continues to pay suppliers, factors and
vendors in the ordinary course of business, consistent with past
practices.

There can be no assurance that the Company will ultimately be
successful in obtaining additional capital resources or that the
Nemak transaction will be consummated within the time period
necessary to provide the Company with sufficient liquidity to
fund operations, or at all.

                Interest Payment on Senior Notes

In balancing its operating cash requirements, the Company will
not make the EUR14.9 million payment of interest due on Jan. 15
on its outstanding EUR240 million of 11-3/8% Senior Notes due
2011.

Under the indenture, bondholders will be unable to declare an
event of default and accelerate the maturity of the Senior Notes
unless the non-payment of interest continues following the
expiration of a 30-day grace period or, during such period, the
lenders under the Senior Credit Facility or the Second Lien
Facility accelerate the maturity of their loans.  However, other
remedies may be available.

                      Divestiture Process

As previously announced on Nov. 2, 2006, the Company had entered
into a definitive agreement to sell certain assets to Tenedora
Nemak, S.A. de C.V., a subsidiary of ALFA, S.A.B. de C.V.  Under
the terms of the agreement, the Company is to sell its
operations in North America -- except for its lost-foam
operations in Alabama, which will be retained by the Company --
and its operations and interests in South America, China and
Poland.  

As consideration for the operations being purchased, the Company
will receive US$495.9 million in cash, along with a synthetic
equity interest in the Nemak business post-closing.  The
transaction, which would close during the first quarter of 2007,
has been approved by both the board of directors of TK Aluminum
Ltd. and by Nemak.  Closing of the deal is subject to various
conditions, including the receipt by seller of certain consents
and waivers from the Company's bondholders and other customary
conditions, including regulatory approvals.  On Nov. 30, 2006,
the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act was terminated in respect of the sale of the
assets in the United States.

As reported on Dec. 13, 2006, the Company executed a non-binding
letter of intent to sell to one or more affiliates of BAVARIA
Industriekapital AG all of the Company's equity interests in its
subsidiaries located in France, Italy and Germany.  The
consummation of the transaction is subject to a number of
conditions, including execution of a definitive agreement,
regulatory approvals, completion of satisfactory due diligence,
and approval by the board of directors of the Company of the
definitive agreement and all transactions contemplated thereby.

                          Tender Offer

The Company is currently examining its options with respect to
the terms of the tender offer for the Senior Notes and related
consent solicitation and intends to recommence the offer on
terms and conditions to be determined.  A variety of factors,
including the deterioration of the automotive market,
unfavorable foreign exchange movements, longer lead time to
closure of the Nemak transaction and working capital and other
funding requirements for remaining European operations, have
adversely affected the amount of funds available for the
repurchase of our Senior Notes which was contemplated at the
time of the announcement of the Nemak transaction.  Accordingly,
the Company expects that the amount available for any such
repurchase will represent a significant discount from par.

                       About TK Aluminum

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal   
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semi-permanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.

                        *     *     *

As reported in the TCR-Europe on Nov. 7, 2006, Moody's Investors
Service placed the Caa1 Corporate Family Rating of Teksid
Aluminum Ltd. and the Caa3 senior unsecured rating of Teksid
Aluminum Luxembourg Sarl SCA on review with an uncertain
direction, following the company's announcement that it has
entered into a definitive agreement to sell certain core assets
to Tenedora Nemak, S.A. de C.V and the intention of a redemption
of outstanding debt with the proceeds of the asset disposal.

On Review Direction Uncertain:

Issuer: TK Aluminum Ltd.

    * Corporate Family Rating, currently Caa1

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Senior Unsecured Regular Bond/Debenture, currently Caa3

Outlook Actions:

Issuer: TK Aluminum Ltd.

    * Outlook, Changed To Rating Under Review From Negative

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Outlook, Changed To Rating Under Review From Negative


TEKSID ALUMINUM: S&P Puts Default Rating to EUR240-Mln Notes
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Bermuda-incorporated TK Aluminum
Ltd., a manufacturer of aluminum auto parts, to 'SD' from
'CCC-'.  

It also lowered its long-term debt rating on the EUR240 million
senior unsecured notes issued by Teksid Aluminum Luxembourg
S.a.r.l., S.C.A. and guaranteed by TKA to 'D' from 'C'.

At the same time, the ratings were removed from CreditWatch,
where they had been placed with developing implications on
Nov. 6, 2006, following TKA's announcement that it had entered
into a definitive agreement to sell some of its assets to
Tenedora Nemak S.A., de C.V.

"The downgrade follows TKA's default on the Jan. 15 interest
payment on its outstanding EUR240-million notes maturing in
2011," said Standard & Poor's credit analyst Barbara Castellano.

TKA has stated that it will not have been in compliance with the
financial covenants on its senior and second-lien credit
facilities at Dec. 31, 2006, -- the likelihood of which it had
warned about in December.  The company is now negotiating to
obtain waivers on its lenders' right to limit the usage
of the lines and to require the immediate repayment of the
amount outstanding.

TKA is working on closing the sale of its operations in North
America, South America, China, and Poland to Tenedora Nemak,
S.A. de C.V., which should occur in the first quarter of 2007.

"Notwithstanding the definitive agreement with Nemak, we see
some risks in the possible further delays in closing the
transaction," said Ms. Castellano.  "A number of agreements and
waivers are needed to complete the deal, and any further delay
in negotiations would complicate TKA's already extremely tight
liquidity situation."


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


KONINKLIJKE AHOLD: ICA Eiendom Unit Sells Assets to ERIV
--------------------------------------------------------
ICA Eiendom AS, a unit of Koninklijke Ahold N.V., has sold a
portfolio of properties, primarily consisting of store
properties, to ERIV.  The total transaction amount is set at
NOK516 million.

The agreement encompasses a portfolio of 24 properties
throughout Norway.  The take over will be on March 1, 2007.

ERIV, European Income Venture, is a property company based in
Luxembourg gathering institutional international investors and
is advised by AXA REIM.

The agreement will affect ICA's operating results by around
NOK100 million in the first quarter.

"This sale is in accordance with our strategy of selling fully
developed properties in order to free up capital, which we then
invest in the development of new stores and shopping malls,"
Rolf Hansteen, Managing Director of ICA Eiendom AS, said.

"We are delighted to make an entry in the Norwegian market with
a reliable partner such as ICA, and look forward to work on the
portfolio," said Etienne Dupuy, ERIV Fund Manager at AXA REIM.

                         About Ahold

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

                        *     *     *

As reported in the TCR-Europe on Dec. 22, 2006, Standard &
Poor's Ratings Services revised its outlook on Netherlands-based
food retailer and food service distributor Koninklijke Ahold
N.V. to positive from stable.  At the same time, the 'BB+/B'
long- and short-term corporate credit ratings were affirmed.
     
Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.


STORM B.V.: Fitch Affirms BB+ Rating on Class E Tranche
-------------------------------------------------------
Fitch Ratings upgraded six and affirmed a further 20 tranches of
the Storm B.V. series of Dutch residential mortgage-backed
securities transactions issued by Obvion N.V.

Upon receipt of the latest available pool cuts for the more
seasoned portfolios of Storm 2003 and Storm 2004, Fitch has
conducted a full remodeling exercise using its default and cash
flow models.  The outcome of the remodeling exercise shows that
credit enhancement is sufficient to support the mezzanine and
subordinated notes of these deals at higher rating levels.  The
review of the more recent issuances incorporated Fitch's credit
cover multiple methodology.

The upgrades come as a result of the seasoning of the
transactions, the build-up of credit enhancement due to the
sequential pay-down of the notes, and the low arrears and loss
levels.  Furthermore, throughout 2006, prepayments rates have
been increasing, which have also had a positive impact on de-
leveraging the deals.  These deals are predominantly fixed-rate,
so as borrowers reach their reset date, they may wish to
refinance to a better rate as the Dutch market becomes more
competitive.

Storm 2003 and Storm 2004 are very similar in structure.  At
closing, uncollateralized Class E notes were issued to fund the
reserve account.  The Class E notes have since paid in full
through available excess spread.  Both reserves were fully
funded at close, at 0.8% and 0.87% of the initial note balance,
respectively, and have remained at this level throughout the
life of the deal.  However, should arrears levels, defined as
loans in arrears of more than three months, exceed 2% of the
original mortgage balance, then the reserve funds are targeted
to reach 1.1% of the initial note balance.  This trigger
provides additional protection to the note holders, and is still
far from being breached.

At November 2006, 0.19% of the outstanding Storm 2003 portfolio
is in arrears by more than three months, compared to 0.29% of
the Storm 2004 portfolio.  The higher arrears in the second deal
reflect the fact that the weighted average current loan-to-value
is higher at 76.15%, compared to 74.34% in Storm 2003.  Also,
Storm 2004 contains a higher proportion of interest-only loans
and investment properties.  Nevertheless, arrears remain low and
stable and Fitch expects this trend to continue given the
improvement of the Dutch economy.

The later vintages of the Storm series have a slightly different
structure whereby the reserves were not fully funded at close
but were targeted to reach a certain level through available
excess spread.  With the exception of Storm 2006-II, which has
not had a full year of reporting yet, Storm 2005 and Storm 2006-
I reached the target level on the third interest payment date.  
Fitch expects Storm 2006-II to reach its target level in
February 2007, which will also be the third IPD.  Arrears levels
in these deals are still increasing due to the low seasoning in
the deals; however, Fitch expects to see a leveling off in the
coming months.

The rating actions are:

Storm 2003 B.V.

    -- Class A1 affirmed at AAA;
    -- Class A2 affirmed at AAA;
    -- Class B upgraded to AAA from AA;
    -- Class C upgraded to AA- from A; and
    -- Class D upgraded to A- from BBB.

Storm 2004 B.V.

    -- Class A affirmed at AAA;
    -- Class B upgraded to AA+ from AA;
    -- Class C upgraded to AA- from A; and
    -- Class D upgraded to A- from BBB.

Storm 2005 B.V.

    -- Class A affirmed at AAA;
    -- Class B affirmed at AA;
    -- Class C affirmed at A+;
    -- Class D affirmed at BBB+; and
    -- Class E affirmed at BB+.

Storm 2006-I B.V.

    -- Class A1 affirmed at AAA;
    -- Class A2 affirmed at AAA;
    -- Class B affirmed at AA;
    -- Class C affirmed at A+;
    -- Class D affirmed at A-; and
    -- Class E affirmed at BBB-.

Storm 2006-II B.V.

    -- Class A1 affirmed at AAA;
    -- Class A2 affirmed at AAA;
    -- Class B affirmed at AA;
    -- Class C affirmed at A+;
    -- Class D affirmed at A-; and
    -- Class E affirmed at BBB-.


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


AKER KVAERNER: Inks US$250-Million Subsea Contract in India
-----------------------------------------------------------
Aker Kvaerner ASA has signed a letter of intent with Aker
Floating Production to deliver a complete subsea production
system for a customer in India.

Aker Kvaerner will also deliver the marine installation of the
floating production storage and offloading (FPSO) vessel to be
leased out by Aker Floating Production ASA.  The total value of
Aker Kvaerner's contracts is around US$250 million.

Aker Kvaerner is scheduled to install the FPSO and mooring
system and deliver the subsea production system by February
2008.  The subsea production system will be installed at 1100-
1400 meters water depth and includes trees, manifolds, controls
and umbilicals.

"It is the unique combination of capabilities within the Aker
Group that has secured the very important letter of intent,"
Martinus Brandal, CEO & President of Aker Kvaerner, said.  "We
are very excited about the future market potential that the
Indian continental shelf represents for Aker Kvaerner and the
rest of the Aker Group."

Aker Kvaerner Subsea will supply the subsea equipment and Aker
Marine Contractors will be responsible for the installation of
the FPSO and subsea equipment. Aker Kvaerner Pusnes will deliver
equipment for the mooring and offloading system to the FPSO.

                       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.


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


MALMA: Alpina Savoie Wants Court to Declare Firm Bankrupt
---------------------------------------------------------
Alpina Savoie, a French pasta maker, requested a Gdan'sk
district court to declare Malma, a Polish pasta manufacturer,
bankrupt, the Warsaw Business Journal reports.

Alpina disclosed its intention to acquire Malma, despite the
rejection of its three takeover bids.  In 2005, Malma held 19%
of the Polish pasta market; however, due to its PLN150 million
debt, it was forced to shut down production in 2006, the Warsaw
Business Journal states.

                           About Malma

Malma -- http://www.malma.com/-- operates from factories in  
Wroclaw and Malbork in Poland.


POLSKA GRUPA: Fitch Affirms National Short-Term Rating at B
-----------------------------------------------------------
Fitch Ratings changed the Outlook of Polska Grupa Farmaceutyczna
S.A.'s National Long-term rating to Stable from Negative.  The
National ratings are affirmed at Long-term BB+ and Short-term B.

The Outlook change reflects PGF's improved profitability and
cash flow generation as well as interest coverage ratio.  PGF's
EBITDA margin strengthened to 2.4% in the first nine months of
2006, from 2.1% in the same period of 2005, while EBITDA-to-
interest ratio improved to 5.4x from 3.4x.  The rating takes
into account PGF's aggressive financial policy as evidenced by
its high financial leverage and considerable dividend payments.  
This is mitigated by the company's leading position in the
growing Polish pharmaceuticals distribution market, modern
nationwide distribution network, and expanding retail
operations.  Fitch notes that PGF reports one of the highest
EBITDA margins among Polish drug distributors, mostly because of
its scale.

The ratings reflect PGF's strategy, which is based on organic
growth and further development of its chain of pharmacies,
including those owned by PGF and private pharmacies cooperating
with PGF under the loyalty program.  Fitch understands that PGF
is interested in selected acquisitions in Poland, but is not
willing to increase leverage.

The government is discussing amendments to the Pharmaceutical
Law, which may affect PGF's business.  It plans to reduce
wholesale margins on refunded drugs by one percentage point.  
This is in line with the existing Pharmaceutical Law, which
calls for a reduction in distributors' margins if the Monetary
Policy Council reduces the base interest rate by 30%.  While the
decline in regulated margin would be negative for PGF, most of
the wholesale margins charged by the company are below the
regulated level, chiefly due to its economies of scale.  Smaller
distributors are likely to be much more affected.  In addition,
the draft law aims to take stricter measures to prevent
wholesalers from expanding into the retail business.

In December 2006, PGF completed a sale-and-lease-back
transaction of its eight warehouses.  The properties are leased
back to the company for 20 years.  Fitch factors this
transaction into PGF's credit ratios by calculating lease-
adjusted leverage ratios.

PGF is Poland's largest distributor of pharmaceuticals and
healthcare products to pharmacies and hospitals.  PGF commands
about 20% of the Polish wholesale pharmaceuticals market, and
its distribution network covers the entire country.  It is also
the largest player in the retail segment, representing about 3%
of the market.


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


BUILDER LLC: Tambov Court Names A. Semenov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Tambov Region appointed Mr. A. Semenov
as Insolvency Manager for LLC Company Builder (TIN 6833009545).  
He can be reached at:

         A. Semenov
         Ruchejnyj Proezd 5
         392023 Tambov Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A64-5714/06-10.

The Debtor can be reached at:

         LLC Company Builder
         Volzhskaya Str. 73A
         Tambov Region
         Russia


DANKOVSKIY ELEVATOR: Bankruptcy Hearing Slated for April 13
-----------------------------------------------------------
The Arbitration Court of Lipetsk Region will convene at 4:00
p.m. on April 13 to hear the bankruptcy supervision procedure on
OJSC Dankovskiy Elevator.  The case is docketed under Case No.
A36-2901/2006.

The Temporary Insolvency Manager is:

         V. Pivovarov
         Khoroshavina Str. 13-84
         398036 Lipetsk Region
         Russia

The Arbitration Court of Lipetsk Region is located at:

         Skorokhodova Str. 2
         398019 Lipetsk Region
         Russia

The Debtor can be reached at:

         OJSC Dankovskiy Elevator
         Chapaeva Str. 13
         Dankov
         399851 Lipetsk Region
         Russia


DUBYNSKOYE OJSC: Tyumen Bankruptcy Hearing Slated for March 13
--------------------------------------------------------------
The Arbitration Court of Tyumen Region will convene at 9:10 a.m.
on March 13 to hear the bankruptcy supervision procedure on OJSC
Dubynskoye (TIN 7218000611).  The case is docketed under Case
No. A70-9055/3-06.

The Temporary Insolvency Manager is:

         F. Bekshenev
         Respubliki Str. 144
         625026 Tyumen Region
         Russia

The Arbitration Court of Tyumen Region is located at:

         Khokhryakova Str. 77
         627000 Tyumen Region
         Russia

The Debtor can be reached at:

         OJSC Dubynskoye
         Lenina Str. 20
         Dubynka
         Kazanskiy Region
         627431 Tyumen Region
         Russia


EVRAZ GROUP: Hikes Steel Output to 16.12 Million Tons in 2006
-------------------------------------------------------------
Evraz Group increased year-on-year steel production in 2006 by
16.3% to 16.12 million metric tons, RIA Novosti reports.

The company's cast iron production hiked 11.4% to 12.75 million
tons while rolled products production soared 19.6% to
14.46 million tons, RIA Novosti relates.

                         About Evraz

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

                          *     *     *

As reported in the TCR-Europe on Nov. 23, 2006, Fitch Ratings
affirmed Luxembourg-based Evraz Group SA's Issuer Default and
senior unsecured ratings at BB and its Short-term rating at B.  

At the same time, Fitch has affirmed the ratings of Mastercroft
Ltd.- Evraz's core subsidiary with most of its assets
concentrated in Russia- at Issuer Default BB and Short-term B.  
Evraz Securities SA's senior unsecured rating is affirmed at BB.  
Fitch said the Outlooks on the Issuer Default ratings are
Stable.

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


HARVEST CJSC: Court Names A. Semenov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Tambov Region appointed Mr. A. Semenov
as Insolvency Manager for CJSC Harvest.  He can be reached at:

         A. Semenov
         Ruchejnyj Proezd 5
         392023 Tambov Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A64-5749/06-18.

The Debtor can be reached at:

         CJSC Harvest
         Aleksandrovka
         Znamenskiy Region
         Tambov Region
         Russia


IRBIS OJSC: Court Names Y. Mishenko as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Krasnodar Region appointed Mr. Y.
Mishenko as Insolvency Manager for OJSC Agricultural Company
Irbis.  He can be reached at:

         Y. Mishenko
         Post User Box 38
         Gulkevichi
         352192 Krasnodar Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-32-5557/2006-27/92-B.

The Arbitration Court of Krasnodar Region is located at:

         Krasnaya Str. 6
         Krasnodar Region
         Russia

The Debtor can be reached at:

         OJSC Agricultural Company Irbis
         Tikhoretsk
         Krasnodar Region
         Russia


KRASNOARMEYSKIY OJSC: Asset Sale Slated for January 25
------------------------------------------------------
LLC I-C-M, the bidding organizer for OJSC Butter-Cheese Factory
Krasnoarmeyskiy, will open a public auction for the company's
properties at 11:00 a.m. on Jan. 25 at:

         LLC I-C-M
         Room 203
         Shevchenko Str. 1A
         Anapa
         Krasnodar Region
         Russia

The company has set a RUR3,505,451 starting price for the
auctioned assets.

Interested participants have until Jan. 22 to deposit an amount
equivalent to 10% of the starting price to:

         OJSC Butter-Cheese Factory Krasnoarmeyskiy
         Poltavskaya St.
         Krasnodar Region
         Russia

Bidding documents must be submitted to:

         LLC I-C-M
         Room 203
         Shevchenko Str. 1A
         Anapa
         Krasnodar Region
         Russia
         Tel: 8-86133-4-08-17

The Debtor can be reached at:

         OJSC Butter-Cheese Factory Krasnoarmeyskiy
         Poltavskaya St.
         Krasnodar Region
         Russia


KUBAN OJSC: Creditors Must File Claims by February 23
-----------------------------------------------------
Creditors OJSC Kuban have until Feb. 23 to submit written proofs
of claim to:

         A. Kolesnik, Insolvency Manager
         Lenina Str. 100
         Novoplatnirovskaya St.
         Leningradskiy Region
         353766 Krasnodar Region
         Russia

The Arbitration Court of Krasnodar Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A-32-9436/2006-27/285-B.

The Arbitration Court of Krasnodar Region is located at:

         Krasnaya Str. 6
         Krasnodar Region
         Russia

The Debtor can be reached at:

         OJSC Kuban
         Lenina Str. 100
         Novoplatnirovskaya St.
         Leningradskiy Region
         353766 Krasnodar Region
         Russia


LUKOIL OAO: Hikes Third Quarter 2006 Profit to US$2.43 Billion
--------------------------------------------------------------
OAO Lukoil released its financial results for the third quarter
of 2006, prepared according to International Financial Reporting
Standards.

Lukoil posted US$2.43 billion in net profit against US$18.25
billion in revenues in the third quarter of 2006, compared with
US$2.21 billion in net profit against US$16.19 billion in
revenues for the same period in 2005.

The company attributed the improved results to high oil prices,
rising production volumes and cost cuts, the Associated Press
reports.

                         High Oil Price

The average price for Lukoil's Urals blend of crude during July-
September 2006 was 15% higher than the same period in 2005, WSJ
relates.  Higher taxes, the company noted, counteracted an
upshot of the high oil price.  In 2006, Lukoil paid US$22.3
billion in taxes, 28% more than in 2005.

Leonid Fedun, Lukoil Vice President, said the company had
learned to cope with heavy taxes, adding that it would not
hamper the oil producer's growth, AP says.

"We have already learned to work with this... despite the
gigantic rise we have been able to ensure record profits," Mr.
Fedun told AP.

                          Higher Output

The company produced 92.5 million metric tons of crude oil in
2006 -- or 1.912 million barrels a day, -- compared with 87.5
million tons in 2005.

                           Lower Cost

Lukoil, according to analyst Elena Savchik of Renaissance
Capital, was able to limit its operating expenses despite a 17%
gain of the Russian Rubles in the fiscal year ending in
September 2006.  The company's operating costs increased 27% to
US$1.12 billion in July-September 2006.  The group spends an
average US$3.21 to produce a barrel of oil equivalent during the
quarter, the Wall Street Journal relates.

                             Plans

Vagit Alekperov, Lukoil Chief Executive, said the company plans
to invest over EUR100 million to double its production and hike
its value to around US$200 billion by 2016.

Mr. Fedun, however, denied holding talks with Royal Dutch Shell
Plc regarding a possible acquisition of the Anglo-Dutch group's
French refinery assets.  Shell has said it mulls selling its
French refining assets as part of an "ongoing strategic review"
to streamline and concentrate its downstream assets.
                            
"The results confirm Lukoil's leading position," said Artem
Konchin, an analyst at Aton.  "Lukoil's foreign expansion
suggests it is a prime candidate to become a global major along
the lines of Exxon and Shell."

                          About Lukoil

Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX,
RTS: LKOH) -- http://www.lukoil.com/-- explores and produces   
oil & gas, petroleum products and petrochemicals, and markets
the outputs.  Most of the Company's exploration and production
activity is located in Russia, and its main resource base is in
Western Siberia.

                          *     *     *

As reported in the TCR-Europe on July 12, 2006, Standard &
Poor's Ratings Services raised its long-term corporate credit
rating on Lukoil OAO to 'BB+' from 'BB'.  S&P said the outlook
is positive.


LUKOIL OAO: To Sell More Gas at Free Prices This Year
-----------------------------------------------------
Lukoil OAO will sell around four billion cubic meters of gas at
free prices in 2007, Itar-Tass reports citing company vice
president Leonid Fedun.

Mr. Fedun revealed that the company might sell around one
billion cu. m. of gas online trading floor Mezhregiongaz JSC, a
unit of OAO Gazprom, Prime Tass relates.  Mr. Fedun added that
Lukoil only sold a small amount of gas at Mezhregiongaz in 2006.  
He, however, noted that the trading results were not indicative
for Lukoil.

Lukoil forecasts a hike in gas production from 15.8 billion cu.
m. in 2006 to around 16 billion cu. m. this year.

Mr. Fedun said the company is reviewing an increase in
investments this year, particularly in Ukraine.  He noted that
last year's investments in the development of new fields topped
those in the old ones and amounted to over 80% of the total
investments.  

"Most presumably, we will increase investments in Odessa-based
oil refinery versus originally planned monies," Mr. Fedun told
Itar-Tass, adding that Lukoil's investment will depend on
economic benefit and political support of the Ukrainian
government.

                          About Lukoil

Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX,
RTS: LKOH) -- http://www.lukoil.com/-- explores and produces   
oil & gas, petroleum products and petrochemicals, and markets
the outputs.  Most of the Company's exploration and production
activity is located in Russia, and its main resource base is in
Western Siberia.

                          *     *     *

As reported in the TCR-Europe on July 12, 2006, Standard &
Poor's Ratings Services raised its long-term corporate credit
rating on Lukoil OAO to 'BB+' from 'BB'.  S&P said the outlook
is positive.


MILK CJSC: Creditors Must File Claims by February 23
----------------------------------------------------
Creditors CJSC Company Milk have until Feb. 23 to submit written
proofs of claim to:

         O. Barysh, Insolvency Manager
         Office 617
         Svobody Str. 75
         394006 Voronezh Region
         Russia

The Arbitration Court of Voronezh Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A14-8196-2006-186/20b.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         CJSC Company Milk
         45 Str. Divizii Str. 259
         Voronezh Region
         Russia


NIKA CJSC: Court Names L. Merkulova as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Yamalo-Nenetskiy Autonomous Region
appointed Ms. L. Merkulova as Insolvency Manager for CJSC
Building Company Nika (TIN 7202021856).  She can be reached at:

         L. Merkulova
         Apartment 20
         4 Location 5
         Gubkinskiy
         629830 Yamalo-Nenetskiy Autonomous Region
         Russia

The Arbitration Court of Voronezh Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A81-3297/2005.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         CJSC Building Company Nika
         Yugo-Vostochnyj Promuzel 118
         Noyabrsk
         Yamalo-Nenetskiy Autonomous Region
         Russia


NITROGEN-INVEST LLC: Bankruptcy Hearing Slated for February 20
--------------------------------------------------------------
The Arbitration Court of Moscow Region will convene at 2:30 p.m.
on Feb. 20 to hear the bankruptcy supervision procedure on LLC
Nitrogen-Invest.  The case is docketed under Case No. A40-50970/
06-73-1099 B.

The Temporary Insolvency Manager is:
         
         D. Ryndenko
         Post User Box 13
         152930 Rybinsk Region
         Russia

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         LLC Nitrogen-Invest
         Frunzenskaya Quay 32
         119146 Moscow Region
         Russia


NORTH-SOUTH-WOOD LLC: Court Names E. Safronova to Manage Assets
---------------------------------------------------------------
The Arbitration Court of Krasnodar Region appointed Ms. E.
Safronova as Insolvency Manager for LLC North-South-Wood.  She
can be reached at:

         E. Safronova
         Office 2
         Kubano-Naberezhnaya Str. 100
         350063 Krasnodar Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A32-165132006-2/1044-B.

The Arbitration Court of Krasnodar Region is located at:

         Krasnaya Str. 6
         Krasnodar Region
         Russia

The Debtor can be reached at:

         LLC North-South-Wood
         Novorossiyskaya Str. 55
         350059 Krasnodar Region
         Russia


NOVOLIPETSK STEEL: Fitch Assigns BB+ IDR with Stable Outlook
------------------------------------------------------------
Fitch Ratings assigned OJSC Novolipetsk Steel an Issuer Default
BB+ rating, a Short-term B rating and a National Long-term AA
rating.  The Outlooks on the Issuer Default and National Long-
term ratings are Stable.

The ratings reflect NLMK's strong financial profile and sound
credit metrics, while the Stable Outlook indicates Fitch's
expectations that the company will maintain this positive
performance through the industry cycle.  This is based on its
scale, low-cost production base and high self-sufficiency in raw
materials.

NLMK's profitability is among the highest in the steel industry,
both in Russia and worldwide.  NLMK pursues a conservative
financial strategy with strong creditor protection coverage and
low leverage.  It had zero debt on its balance sheet in 2005,
while cash stood at US$1.9 billion and cash flow from operations
at US$1.5 billion.  This ensures additional financial
flexibility for the company in case of an industry downturn,
thus mitigating the risks inherent in the cyclical steel
industry.  In addition, it provides the company with large
headroom for the implementation of its expansion strategy both
through acquisitions and upgrade of existing facilities.

Furthermore, Fitch considers NLMK's high degree of self-
sufficiency in raw materials as a positive factor.  In this
respect, NLMK is favorably positioned compared with its global
peers, many of which meet most of their raw materials
requirements through purchases from third parties.  A high
degree of self-sufficiency in raw materials limits the company's
exposure to volatile raw materials prices.  This is especially
important in light of the recent rise in iron ore prices.

Fitch notes that the recent acquisitions undertaken by NLMK will
enable the company to shift to more value-added products, gain a
footprint in the European markets, and access foreign
technologies.  Fitch also notes that NLMK's prudent approach to
acquisitions further supports the agency's expectations of the
company's continued sound financial standing.

However, Fitch notes the limited diversification of NLMK's
product mix, as well as a relatively low share of value-added
products in its current portfolio.  In addition, although the
company has a diversified customer base for domestic sales, its
export sales are concentrated in three trading partners only.  
The agency is also concerned about the company's complex legal
structure and concentrated ownership, limiting transparency of
the business.


OIL-MASH OJSC: Kemerovo Bankruptcy Hearing Slated for April 11
--------------------------------------------------------------
The Arbitration Court of Kemerovo Region will convene on
April 11 to hear the bankruptcy supervision procedure on OJSC
OIL-Mash.  The case is docketed under Case No. A27-16778/2006-4.

The Temporary Insolvency Manager is:

         V. Babich
         Nogradskaya Str. 3-52
         650099 Kemerovo Region
         Russia

The Arbitration Court of Kemerovo Region is located at:

         Krasnaya Str. 8
         Kemerovo
         Russia

The Debtor can be reached at:

         OJSC Oil-Mash
         Tereshkovoj Str. 45
         Kemerovo Region
         Russia


PESCHANOYE CJSC: Creditors Must File Claims by February 23
----------------------------------------------------------
Creditors CJSC Peschanoye have until Feb. 23 to submit written
proofs of claim to:

         O. Ryabich, Insolvency Manager
         Post User Box 1884
         350080 Krasnodar Region
         Russia

The Arbitration Court of Krasnodar Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A-32-11666/2005-37/149-B.

The Arbitration Court of Krasnodar Region is located at:

         Krasnaya Str. 6
         Krasnodar Region
         Russia

The Debtor can be reached at:

         CJSC Peschanoye
         Krasnaya Str. 4
         Peschanyj
         Tbilisskiy Region
         352355 Krasnodar Region
         Russia


PRIOBSKOUE OIL: Asset Sale Slated for January 24
------------------------------------------------
LLC Auction Centre Paritet +, the bidding organizer for CJSC
Priobskoue Oil and Gas Exploring Enterprise, will open a public
auction for the company's properties at 10:00 a.m. on Jan. 24
at:

         LLC Auction Centre Paritet +
         Kharkovskaya Str. 59A
         Tyumen Region
         Russia

The company has set a RUR15,996,000 starting price for the
auctioned assets.

Interested participants have until Jan. 19 to deposit an amount
equivalent to 10% of the starting price to:

         LLC Auction Centre Paritet +
         Settlement Account 40702810205020000593 in branch ACB          
         Yugra Tyumen
         Correspondent Account 30101810300000000928
         BIK 047102928

Bidding documents must be submitted to:

         LLC Auction Centre Paritet +
         Kharkovskaya Str. 59A
         Tyumen Region
         Russia
         Tel: 8(3452) 41-99-73

The Debtor can be reached at:

         LLC Auction Centre Paritet +
         Kharkovskaya Str. 59A
         Tyumen Region
         Russia
         Tel: 8(3452) 41-99-73


SISTEMA JSFC: Fitch Assigns Debt Issuance Program B+ Rating
-----------------------------------------------------------
Fitch Ratings assigned Sistema Capital S.A.'s guaranteed debt
issuance program a final B+ rating.  The program, guaranteed by
JSFC Sistema, has a maturity of 30 years and may issue up to
US$3 billion.  This rating action follows a review of the final
terms and conditions, confirming information already received
when Fitch assigned an expected rating of B+ on Dec. 12, 2006.

The program is structured on par with Sistema's senior unsecured
obligations.  The documentation contains a number of covenants
including negative pledge, limitation on leverage of up to 4x
total debt to operating income before depreciation and
amortization, limitation on shareholder distributions, and
certain limitations on assets sale.  Sistema has to ensure that
its subsidiaries are not restricted in paying dividends and
providing loans to the parent.  Certain caveats apply to the
covenants above.

Sistema is a diversified Russian holding company with interests
in mobile and fixed-line telecoms, real estate, insurance,
technology, banking, and other industries.  Sistema's ratings
reflect the credit quality of its operating subsidiaries, its
ability to move cash around the group, and the structural
subordination to creditors at the operating company level.  In
2006, Sistema's key operating subsidiaries moved towards the
cash generative stage of their business cycles, leading to a
Positive Outlook.

Telecoms are expected to dominate Sistema's operating and
financial profiles although the holding company has gradually
diversified into other segments, e.g. real estate.  The holding
company's strategic ambitions are narrowed to seven key
industries; however, Sistema is contemplating diversification
into other industries where it may lack experience.  Sistema has
expressed interest to participate in a number of large
mergers/acquisitions, which may change its credit profile.  
Fitch sees this as an event risk.  The holding company has
valuable non-consolidated assets on its balance sheet, providing
considerable financial flexibility.

Group total leverage, while consistent with Sistema's ratings,
has been rising in 2006.  This has been mitigated by a number of
IPOs in its operating subsidiaries, which helped to ease the
leverage metrics on a net debt basis.  More IPOs may follow in
2007.


SPIRITS OJSC: Court Starts External Bankruptcy Procedure
--------------------------------------------------------
The Arbitration Court of Novosibirsk Region commenced external
management bankruptcy procedure on OJSC Spirits.  The case is
docketed under Case No. A45-10075/06-29/158.

The External Insolvency Manager is:

         S. Lebedev
         Office 7
         Kamenskaya Str. 64a
         630091 Novosibirsk Region
         Russia

The Arbitration Court of Novosibirsk Region is located at:

         Kirova Str. 3
         630007 Novosibirsk Region
         Russia

The Debtor can be reached at:

         OJSC Spirits
         Omskaya Str. 1
         Kuybyshev
         Novosibirsk Region
         Russia


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


FONCAIXA FTGENCAT: Fitch Junks EUR6 Million Series E Notes
----------------------------------------------------------
Fitch affirmed FONCAIXA FTGENCAT 4, Fondo de Titulizacion de
Activos notes due in March 2049.

    -- EUR326 million Series A: affirmed at AAA;
    -- EUR251.2 million Series A: affirmed at AA+;
    -- EUR9.6 million Series B: affirmed at AA-;
    -- EUR7.2 million Series C: affirmed at BBB+;
    -- EUR6 million Series D: affirmed at BB+; and
    -- EUR6 million Series E: affirmed at CCC-.

This transaction is a cash-flow securitization of a EUR600
million pool of loans granted by Caja de Ahorros y Pensiones de
Barcelona, rated AA- to small and medium-sized Spanish
enterprises.

The affirmations reflect the transaction's stable performance to
date.  Credit enhancement levels have remained the same since
the deal closed in July 2006, as no de-leveraging has taken
place.  As of the December 2006 trustee report, the levels of
delinquencies were low and there have been no defaults to date.  
Delinquencies greater than three months comprise only 0.01% of
the outstanding collateral balance.  The largest regional
concentration remains in Barcelona at approximately 61%.

The Autonomous Community of Catalonia guarantees ultimate
payment of interest and principal on Class A notes.  The bonds
are credit-linked to the rating of the Generalitat de Catalunya.  
In December 2006, Generalitat de Catalunya was downgraded to
A+/Outlook Stable/F1 from AA-/F1+.  Fitch has affirmed Class A
at AAA, based on the deal's stable performance and the low
probability of the guarantor defaulting simultaneously with a
large proportion of the underlying collateral.

The issuer is legally represented and managed by GestiCaixa
S.G.F.T., S.A., a limited liability company incorporated under
Spanish law, whose activities are limited to the management of
securitization funds.


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


AKTIVMANN SOLI: Zurich Court Suspends Bankruptcy Proceedings
------------------------------------------------------------
The Bankruptcy Court of Hongg-Zurich suspended the bankruptcy
proceedings of LLC Aktivmann Soli on Jan. 10 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 CHF7,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on May 9, 2006, can be reached at:

         LLC Aktivmann Soli
         Hohlstrasse 500
         8048 Zurich
         Switzerland

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

         Bankruptcy Service of Hongg-Zurich
         8049 Zurich
         Switzerland


AQUATHERMA LLC: Basel Court Suspends Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Court of Basel suspended the bankruptcy
proceedings of LLC aquatherma on Dec. 16, 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 CHF6,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Aug. 24, 2006, can be reached
at:

         LLC aquatherma
         Grienstrasse 91
         4055 Basel
         Basel-City
         Switzerland

The Bankruptcy Service of Basel-Stadt can be reached at:

         Bankruptcy Service of Basel-Stadt
         4051 Basel
         Basel-City
         Switzerland


I1 CAFFE EMME 4: Arlesheim Court Closes Bankruptcy Proceedings
--------------------------------------------------------------
The Bankruptcy Court of Arlesheim entered Nov. 28, 2006, an
order closing the bankruptcy proceedings of LLC Il Caffe Emme 4.

The Debtor can be reached at:

         LLC Il Caffe Emme 4
         Kagenstr 12
         4153 Reinach BL
         Switzerland

The Bankruptcy Service of Solothurn can be reached at:

         Bankruptcy Service of Arlesheim
         4144 Arlesheim
         Basel-Country
         Switzerland


LASCO INTERNATIONAL: Basel Court Closes Bankruptcy Proceedings
--------------------------------------------------------------
The Bankruptcy Court of Basel entered Nov. 10, 2006, an order
closing the bankruptcy proceedings of JSC Lasco International
Medical Marketing.

The Debtor can be reached at:

         JSC Lasco International Medical Marketing
         Steinengraben 22
         4051 Basel
         Basel-City
         Switzerland

The Bankruptcy Service of Basel-Stadt can be reached at:

         Bankruptcy Service of Basel-Stadt
         4051 Basel
         Basel-City
         Switzerland


MOCANO LLC: Basel Court Suspends Bankruptcy Proceedings
-------------------------------------------------------
The Bankruptcy Court of Basel suspended the bankruptcy
proceedings of LLC Mocano on Dec. 16, 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 Aug. 14, 2006, can be reached
at:

         LLC Mocano
         Webergasse 21
         4058 Basel
         Basel-City
         Switzerland

The Bankruptcy Service of Basel-Stadt can be reached at:

         Bankruptcy Service of Basel-Stadt
         4051 Basel
         Basel-City
         Switzerland


NIKLAUS KOCHER: Basel Court Closes Bankruptcy Proceedings
---------------------------------------------------------
The Bankruptcy Court of Basel entered Nov. 28, 2006, an order
closing the bankruptcy proceedings of JSC Niklaus Kocher.

The Debtor can be reached at:

         JSC Niklaus Kocher
         Vogesenstrasse 374
         4056 Basel
         Basel-City
         Switzerland

The Bankruptcy Service of Basel-Stadt can be reached at:

         Bankruptcy Service of Basel-Stadt
         4051 Basel
         Basel-City
         Switzerland


NONSTOP-CHARTER: Basel Court Suspends Bankruptcy Proceedings
------------------------------------------------------------
The Bankruptcy Court of Basel suspended the bankruptcy
proceedings of LLC Nonstop-Charter on Dec. 16, 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 June 19, 2006, can be reached
at:

         LLC Nonstop-Charter
         Petersgasse 26
         4051 Basel
         Basel-City
         Switzerland

The Bankruptcy Service of Basel-Stadt can be reached at:

         Bankruptcy Service of Basel-Stadt
         4051 Basel
         Basel-City
         Switzerland


STAR BODENBELAG: Aargau Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Court of Aargau commenced bankruptcy proceedings
against LLC Star Bodenbelag on Nov. 7, 2006.

The Debtor can be reached at:

         LLC Star Bodenbelag
         Wettingerstrasse 7
         5400 Baden
         Aargau
         Switzerland

The Bankruptcy Service of Aargau can be reached at:

         Bankruptcy Service of Aargau
         Office Baden
         5402 Baden
         Aargau
         Switzerland


SWIBRAS JSC: Liestal Court Suspends Bankruptcy Proceedings
----------------------------------------------------------
The Bankruptcy Court of Liestal suspended the bankruptcy
proceedings of JSC Swibras on Dec. 4, 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 Oct. 18, 2006, can be reached
at:

         JSC Swibras
         Grussenholzliweg 3
         4133 Pratteln
         Basel-Country
         Switzerland

The Bankruptcy Service of Binningen can be reached at:

         Bankruptcy Service of Liestal
         4410 Liestal
         Basel-Country
         Switzerland


WSC JSC: Binningen Court Suspends Bankruptcy Proceedings
--------------------------------------------------------
The Bankruptcy Court of Binningen suspended the bankruptcy
proceedings of JSC WSC on Dec. 4, 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 CHF6,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Oct. 17, 2006, can be reached
at:

         JSC WSC
         4123 Allschwil
         Basel-Country
         Switzerland

The Bankruptcy Service of Binningen can be reached at:

         Bankruptcy Service of Binningen
         4102 Binningen
         Basel-Country
         Switzerland


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


A R P FABRICATORS: Appoints Richard Rones as Liquidator
-------------------------------------------------------
Richard Rones of ThorntonRones was appointed Liquidator of  
A R P Fabricators Ltd. on Dec. 19, 2006, for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         A R P Fabricators Ltd.
         Ramsey Street
         Chadderton
         Oldham
         Lancashire OL9 8NA
         England
         Tel: 0161 665 2227
         Fax: 0161 626 2374


ADJUSTBETTER LTD: Calls In Deloitte & Touche Liquidators
--------------------------------------------------------
Lee Anthony Manning, Neville Barry Khan and Nicholas James
Dargan of Deloitte & Touche LLP were appointed Liquidators of
Adjustbetter Ltd. on Dec. 28, 2006, for the creditors' voluntary
winding-up proceeding.

Deloitte & Touche LLP -- http://www.deloitte.com/-- provides  
audit, tax, consulting and corporate finance services through
more than 9,000 people in 21 locations.  The group is the United
Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein
whose member firms are separate and independent legal entities.   

Adjustbetter Ltd. can be reached at:

         123d Kensington High Street
         Kensington and Chelsea
         London W8 5SF
         England
         Tel: 020 7937 4411
         Fax: 020 7937 1198  


ADVANCED MARKETING: Creditors' Meeting Slated for February 7
------------------------------------------------------------
The United States Trustee for Region 3, Kelly Beaudin Stapleton,
will convene a meeting of the Advanced Marketing Services Inc.
and its debtor-affiliates' creditors on Feb. 7, at 10:00 a.m. at
Room 2112, 2nd Floor, J. Caleb Boggs Federal Building, in
Wilmington, Delaware.  This is the first meeting of creditors
required under 11 U.S.C. Section 341(a) in all bankruptcy cases.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible officer of
the Debtors under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

                    About Advanced Marketing

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 US$100 million.  The Debtors' exclusive
period to file a Chapter 11 plan expires on Apr. 28.  (Advanced
Marketing Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


AMS NEVE: Creditors' Meeting Slated for February 6
--------------------------------------------------
Creditors AMS Neve Deutschland Ltd. will meet at 11:00 a.m. on
Feb. 6 at:
  
         Tony Freeman & Company
         New Maxdov House
         130 Bury New Road
         Prestwich
         Manchester M25 0AA
         England
          
Creditors who want to vote at the meeting must submit
particulars of their claims or of any security, together with
their proxy forms, at noon on Feb. 5 at the said address.  
  
A list of names and addresses of the Company's Creditors will be
available for inspection free of charge between 10:00 a.m. and  
4:00 p.m. on Feb. 2.


ASCOT CONSTRUCTION: Creditors' Meeting Slated for January 23
------------------------------------------------------------
Creditors of Ascot Construction Services Ltd. (Company Number
03493475) will meet at 2:00 p.m. on Jan. 23 at:

         BDO Stoy Hayward LLP
         1 City Square
         Leeds LS1 2DP
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at noon on Jan. 22 at:

         T. S. Underwood
         Joint Administrative Receiver
         BDO Stoy Hayward LLP  
         1 City Square  
         Leeds
         West Yorkshire LS1 2DP  
         United Kingdom
         Tel: 0113 244 3839  
         Fax: 0113 204 1200     

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business  
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality.  The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.


AUTOMATIC TECHNOLOGIES: Creditors' Meeting Slated for January 30
----------------------------------------------------------------
Creditors of Automatic Technologies International Ltd. will meet
at 10:30 a.m. on Jan. 30 at:

         DSi Services
         1 Brassey Road
         Old Potts Way
         Shrewsbury
         Shropshire SY3 7FA
         England
  
Creditors who want to vote at the meeting must submit
particulars of their claims or of any security, together with
their proxy forms, at noon on Jan. 29 at the said address.  
  
A list of names and addresses of the Company's Creditors will be
available for inspection free of charge between 10:00 a.m. and  
4:00 p.m. on Jan. 26.


AWAX SECURITY: Creditors' Meeting Slated for January 26
-------------------------------------------------------
Creditors of Awax Security (Eastleigh Fus) Ltd. will meet at  
2:15 p.m. on Jan. 26 at:
   
         Fryen House
         125 Winchester Road
         Chandler's Ford
         Eastleigh
         Hampshire SO53 2DR
         England
  
Creditors who want to vote at the meeting must submit
particulars of their claims or of any security, together with
their proxy forms, at noon on Jan. 25 at:

         Rothman Pantall & Co.
         Clareville House
         26-27 Oxendon Street
         London SW1Y 4EP
         England
  
A list of names and addresses of the Company's Creditors will be
available for inspection free of charge on Jan. 24 at:

         Rothman Pantall & Co.
         Clareville House
         26-27 Oxendon Street
         London SW1Y 4EP
         England

Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/--  
provides financial accounting and corporate services.


BAGGAGE BP: Creditors' Meeting Slated for January 19
----------------------------------------------------
Creditors of Baggage (BP) Ltd. will meet at 3:00 p.m. on  
Jan. 19 at:
  
         Chamberlain & Co.
         Aireside House
         24-26 Aire Street
         Leeds LS1 4HT       
         England

Michael Chamberlain of Chamberlain & Co. will furnish creditors
with information concerning the company's affairs free of charge
on Jan. 17 at the said address.


BERNHARD METALS: Hires Liquidators from DTE Leonard Curtis
----------------------------------------------------------
J. Titley, A. Poxon and N. Bennett of DTE Leonard Curtis were
appointed Liquidators of Bernhard Metals (U.K.) Ltd. on  
Dec. 6, 2006, for the creditors' voluntary winding-up procedure.

DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax  
consultancy, company secretarial services, corporate finance,
corporate recovery, turnaround, forensic accounting, financial
services and insurance & risk management.

Bernhard Metals (U.K.) Ltd. can be reached at:

         Litchurch Lane
         Derby
         Derbyshire DE248AA
         England
         Tel: 01332 297 788
         Fax: 01332 294 302& nbsp;


BLACKPOOL AUTOMOTIVE: Taps PKF to Administer Assets
---------------------------------------------------
Kerry Bailey and Matthew Gibson and Philip Long of PKF (U.K.)
LLP were appointed joint administrators of Blackpool Automotive
Ltd. (Company Number 00730711) on Dec. 22, 2006.

Headquartered in Manchester, England, PKF (U.K.) LLP --
http://www.pkf.co.uk/-- specializes in advising the management  
of developing private and public businesses.  Its principal
services include assurance & advisory; corporate finance;
corporate recovery & insolvency; forensic; management
consultancy and taxation.  It also offers financial services
through its FSA authorized company, PKF Financial Planning Ltd.

Blackpool Automotive Ltd. can be reached at:

         Bristol Avenue
         Blackpool
         Lancashire FY2 OJF
         United Kingdom
         Tel: 01253 509 000
         Fax: 01253 357 105


BLUE VISION: Taps T. Papanicola to Liquidate Assets
---------------------------------------------------
T. Papanicola was appointed Liquidator of Blue Vision
Recruitment Ltd. on Dec. 20, 2006, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Blue Vision Recruitment Ltd.
         Studio 5 D B H House
         105 Boundary Street
         Liverpool
         Merseyside L5 9YJ
         England
         Tel: 01512802365
         Fax: 01512801634  


BOOMERANG LONDON: Nominates David Norman Kaye as Liquidator
-----------------------------------------------------------
David Norman Kaye of Crawfords was nominated Liquidator of
Boomerang London Ltd. on Jan. 2 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Boomerang London Ltd.
         6 Darblay Street
         City of Westminster
         London W1F 8DN
         England
         Tel: 020 7734 8335


BOOTHAM WELDING: Names Liquidator to Wind Up Business
-----------------------------------------------------
David Anthony Horner of David Horner & Co. was appointed
Liquidator of Bootham Welding Supplies Ltd. on Dec. 28, 2006,
for the creditors' voluntary winding-up procedure.

David Horner & Co. -- http://www.davidhornerandco.co.uk/--  
offers practical advice and solutions to all types of
businesses, individuals and creditors, often enabling formal
insolvency to be avoided.

Bootham Welding Supplies Ltd. can be reached at:

         Outgang La
         Osbaldwick Ind Est
         Osbaldwick
         York
         North Yorkshire YO195UX
         England
         Tel: 019 0443 0910
         Fax: 01904 430176  


BOWMIC LTD: Creditors' Meeting Slated for January 23
----------------------------------------------------
Creditors of Bowmic Ltd. will meet at 10:30 a.m. on Jan. 23 at:
  
         Smith Cooper
         Wilmot House
         St. James Court  
         Friar Gate
         Derby DE1 1BT
         England
  
Proxies to be used at the meeting must be submitted at noon on
Jan. 22 at the said address.  
  
A list of names and addresses of the Company's Creditors will be
available for inspection free of charge on Jan. 19.


BRITISH AIRWAYS: T&G Cabin Crew Members Favor Strike Action
-----------------------------------------------------------
British Airways Plc could face serious disruptions to its
services after 96% of the Transport & General Workers Union's
cabin crew members, who are employed at BA, voted in favor of a
strike action over the airline's proposed deal that would narrow
a GBP2.1-billion pension deficit, The Wall Street Journal
reports.

However, a strike is not expected to happen just yet as BA
management intends to meet with union leaders for further
negotiations.

The T&G union revealed that there had been a "serious breakdown"
in relations with the airline.

According to WSJ, the airline failed to address the grievances
of the cabin crews with regards to the implementation of
sickness-absence policies, staffing levels in aircraft cabins,
and issues of pay and responsibility levels.

T&G Deputy General Secretary Jack Dromey told DailyRecord.co.uk
that a staff strike would force BA to cancel most of its
flights.

"We are very disappointed by the T&G's threat of what would be
completely unnecessary industrial action," British Airways said
in a statement.

                     Terms of the Scheme

As reported in the TCR-Europe on Jan. 10, under the proposals
there will be a normal retirement age of 65 with a contribution
rate of 5.25% and the ability for employees to pay a higher
pension contribution rate of 8.5% to retire at 60.  Staff can
still choose to retire earlier than the normal retirement age
but with a reduced pension.

There will also be a normal retirement age of 55 with a
contribution rate of 9% on top of the cost of retiring at
60.  This option is available to all staff.

Future pensionable pay rises will be capped to inflation and
pension growth in retirement remains at 5%.

The company will make a one-off contribution of GBP800 million
and up to GBP150 million more in contributions over the next
three years subject to financial targets.

Together with the one-off employee saving of GBP400 million and
changes to future benefits, the GBP2.1 billion deficit will be
more than halved to GBP0.9 billion.

The airline's annual contributions for the next ten years of
GBP280 million, up from GBP272 million in November last year,
will clear the remaining deficit.  The GBP8-million increase
represents the cost of improved contributions and keeping LPI at
5%.

The NAPS trustees approved the funding plan to clear the deficit
last year.

                      About British Airways

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

                        *     *     *

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


CHEMICALS & PROCESS: Liquidator Sets February 28 Claims Bar Date
----------------------------------------------------------------
Creditors of Chemicals & Process Equipment (U.K.) Ltd. have
until Feb. 28 to send their full names and addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their Solicitor (if any), to appointed
Liquidator Rupert Graham Mullins at:

         Benedict Mackenzie LLP
         CityPoint
         Temple Gate
         Bristol BS1 6PL
         England


CHILTERN INVADEX: Appoints KPMG as Joint Administrators
-------------------------------------------------------
Allan Watson Graham and Mark Jeremy Orton of KPMG Restructuring
were appointed joint administrators of Chiltern Invadex Group
Ltd. (Company Number 04891982) on Jan. 4.

Headquartered in Birmingham, England, KPMG LLP --
http://www.kpmg.co.uk/-- offers accounting, audit, and tax-
related services to customers in such target industries as
banking, media and entertainment, consumer products, health care
providers, insurance, and pharmaceuticals.   

Chiltern Invadex Group Ltd. can be reached at:

         Evans Business Center  
         Queen Elizabeth Avenue
         Hillington Industrial Estate
         Glaslow
         Lanarkshire G52 4NQ
         United Kingdom
         Tel: 0141 880 9986
         Fax: 0141 880 9990


COLLINS & AIKMAN: Court OKs Second Pact to Settle Lear Dispute
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan
approved the Second Stipulation between Collins and Aikman Corp.
and its debtor-affiliates and Lear Corp. regarding certain
amounts owed to the Debtors.

As previously reported in the TCR-Europe on Jan. 10, the parties
have agreed on a second stipulation to resolve the remaining
disputed prepetition debt, which will mark the end of the
parties' dispute, Marc J. Carmel, Esq., at Kirkland & Ellis
LLP, in New York, New York, informs the court.

Before the Petition Date, the Debtors and Lear provided each
other with certain automotive component parts.  It was agreed on
the first stipulation that the prepetition Lear receivable owed
to the Debtors was US$4,441,028.  The Debtors also believed that
they were owed an additional US$866,622 from Lear on account of
prepetition shipments to Lear.

It was also agreed in the First Stipulation that Lear was owed
US$331,899.  At the time of the First Stipulation, Lear asserted
that it continued to be owed on account of prepetition shipments
to the Debtors an additional US$88,209 from the Debtors.  Both
parties have reconciled and agreed that the additional
receivable is due to Lear.

On Nov. 3, 2006, Lear filed a motion seeking a declaration that
the automatic stay did not prohibit it from recouping the
prepetition amounts owed to Lear against prepetition amounts
that Lear owed the Debtors.

Mr. Carmel relates that under certain agreements, the Debtors
transferred certain accounts to Carcorp Inc., who in turn
assigned substantially all accounts receivable to General
Electric Capital Corp.

GECC alleged that under the terms of the Agreements, around
US$1,776,305 of the Lear Receivable was assigned to GECC.  It
was agreed in the First Stipulation that US$1,323,907 was owed
in respect to the assigned accounts.

On Dec. 22, 2005, GECC filed a complaint for declaratory
judgment and related relief against the Debtors and Lear seeking
payment of the portion of the Lear Receivable assigned to GECC.

In accordance with the First Stipulation, Lear paid the Debtors
US$2,697,683 and paid GECC US$1,323,907.

On Oct. 13, 2006, the Court approved a stipulation regarding a
Receivables Transfer Agreement between the Debtors and GECC.

The Debtors and Lear now agree that US$513,168 of the disputed
prepetition debt is actually owed by various other customers of
the Debtors or is otherwise not payable by Lear; and US$273,272
is based on invoices that were paid by Lear, and therefore, were
not properly categorized as part of the Lear Receivable, Mr.
Carmel states.  The remaining Disputed Prepetition Debt is
US$79,512.

Pursuant to the Second Stipulation, the Debtors and Lear have
agreed that:

     * Lear will pay US$39,756 to the Debtors within
       five business days from the entry of Court order, and
       the payment will absolve Lear of any and all
       liability for any debt on account of the Lear
       Receivable or the Disputed Prepetition Debt; and

     * Lear may recoup the Reserve and apply it in full
       settlement of the Additional Receivable.

                    About Collins & Aikman

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in  
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
US$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 49;  
Bankruptcy Creditors' Service, Inc.,  
http://bankrupt.com/newsstand/or 215/945-7000)
The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for
the Eastern District of Michigan


COUDERT BROTHERS: Court Okays McGrigors LLP as English Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New
York gave Coudert Brothers LLP permission to employ McGrigors
LLP as its English special counsel, nunc pro tunc to Sept. 22,
2006.

McGrigors will represent the Debtor with respect to potential
malpractice claims in England and general issues related to the
wind-down of Debtor's London office.  The firm's
responsibilities will include serving as counsel of record in
Norman's Bay Ltd. v. Coudert Brothers, in the High Court of
England and Wales -- an action arising out of allegations of
malpractice.  

The hourly rates of the McGrigors attorneys who are expected to
perform services for the Debtor are:

    Level of Employment                        Hourly Rate
    -------------------                        -----------
    Partners                                     US$680
    Associates                                   US$555
    Assistant Solicitors                      US$270-US$485
    Trainee Solicitors                           US$195

The Debtor owed McGrigors around US$46,731 for services the firm
rendered prepetition.

Allan David Reason, a partner at McGrigors, assured the Court
that his firm does not hold any interest materially adverse to
the Debtor's estate.

Mr. Reason can be reached at:

         McGrigors LLP
         5 Old Bailey
         London EC4M 7BA
         England

Coudert Brothers LLP was an international law firm specializing
in complex cross border transactions and dispute resolution.  
The firm had operations in Australia, China, and the United
Kingdom.

The Debtor filed for Chapter 11 protection on Sept. 22, 2006
(Bankr. S.D.N.Y. Case No. 06-12226).  John E. Jureller, Jr.,
Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP,
represents the Debtor in its restructuring efforts.  Brian F.
Moore, Esq., and David J. Adler, Esq., at McCarter & English,
LLP, represent the Official Committee Of Unsecured Creditors.  
In its schedules of assets and debts, Coudert listed total
assets of US$29,968,033 and total debts of US$18,261,380.  The
Debtor's exclusive period to file a chapter 11 plan expires on
Jan. 20, 2007.


COUDERT BROTHERS: Court Sets Jan. 31 as General Claims Bar Date
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
set 5:00 p.m., Eastern Time, on Jan. 31, 2007, as the last day
for persons owed money by Coudert Brothers LLP to file their
proofs of claim against the Debtor.  The January 31 bar date
applies only to claims that arose prior to Sept. 22, 2006.

Governmental units have until March 21, 2007, to file their
claims.

Proofs of claim must be received on or before their respective
bar dates by:

   a) if by mail:

      United States Bankruptcy Court
      Southern District of New York
      Coudert Brothers LLP
      Claims Processing Center
      Bowling Green Station
      P.O. Box 5045
      New York, NY 10274-5045

   b) if by messenger or overnight courier:

      United States Bankruptcy Court
      Southern District of New York
      Coudert Brothers LLP
      Claims Processing Center
      Room 534, One Bowling Green
      New York, NY 10004-1408

Coudert Brothers LLP was an international law firm specializing
in complex cross border transactions and dispute resolution.  
The firm had operations in Australia, China, and the United
Kingdom.  

Coudert Brothers LLP filed for Chapter 11 protection on
Sept. 22, 2006 (Bankr. S.D.N.Y. Case No.06-12226).  John E.
Jureller, Jr., Esq. and Tracy L. Klestadt, Esq. at Klestadt &
Winters, LLP, represent the Debtor in its restructuring efforts.  
Brian F. Moore, Esq. and David J. Adler, Esq. at McCarter &
English LLP represent the Official Committee Of Unsecured
Creditors.  In its schedules of assets and debts, Coudert listed
total assets of US$29,968,033 and total debts of US$18,261,380.  
The Debtor's exclusive period to file a chapter 11 plan expires
on Jan. 20, 2007.


CURRENT ELECTRICAL: Creditors' Meeting Scheduled for January 24
---------------------------------------------------------------
Creditors of Current Electrical Installations Ltd. will meet at
10:30 a.m. on Jan. 24 at:
  
         DSi Services
         29 King Street
         Newcastle under Lyme
         Staffordshire ST5 1ER
         England
  
Creditors who want to vote at the meeting must submit their
proxy forms at noon on Jan. 23 at the said address.  
  
A list of names and addresses of the Company's Creditors will be
available for inspection free of charge between 10:00 a.m. and  
4:00 p.m. on Jan. 19.


EMI GROUP: Moody's Downgrades Rating to Ba3 on Weak Performance
---------------------------------------------------------------
Moody's Investors Service downgraded EMI Group plc's Corporate
Family and senior debt ratings to Ba3 from Ba2.  All ratings
remain under review for possible further downgrade.  Downgrade
and review follow the announcement that EMI:

   (i) will incur up to GBP150 million in incremental
       restructuring costs,

  (ii) has performed below its expectations during its financial
       year-to-date,

(iii) has installed Eric Nicoli, hitherto chairman of the group
       as CEO of EMI Group and of EMI Recorded Music and

  (iv) is reviewing its balance sheet.

In the light of the announcement, Moody's believes that EMI's
risk profile and debt protection measurements will no longer be
in line with the Ba2 rating category, for which Moody's had
amongst other things stipulated a ratio of Adj.RCF/ Adj. Net
Debt moving towards 10%.  The ongoing review reflects
uncertainties about the strategic direction and performance
potential of the company's recorded music business against the
backdrop of still struggling global markets and about possible
changes in the medium term balance sheet structure.

Moody's acknowledges that EMI has arranged bank financing to
fund the additional cash outflows from the new restructuring
programme and the recently announced purchase of the minority
interest in its Japanese subsidiary Toshiba EMI.  Against this
backdrop, Moody's review will focus on :

   (i) the details of year-to-date trading and the outlook for
       the remainder of the 2006/7 financial year,

  (ii) details of the restructuring programme, including its
       sustainability and its funding,

(iii) the company's operational and financing plans beyond the
       current financial year, including the potential for a
       comprehensive debt restructuring and

  (iv) the potential for renewed Private Equity interest in the
       company.

Ratings downgraded to Ba3 (from Ba2) and under review for
possible downgrade are:

   * EMI Group plc

   -- CFR and the ratings of the 8.25% GBP bonds due 2008 and
      the 8.625% Euro notes due 2013

   * Capitol Records Inc. (gtd. by EMI Group plc)

   -- the rating of the 8.375% guaranteed notes due 2009.

EMI Group plc, one of the world's leading music recording and
publishing companies is headquartered in London, England.


EUROPEAN DOMAIN: Brings In Liquidator from Stones & Co.
-------------------------------------------------------
Gary Stones of Stones & Co. was appointed Liquidator of European
Domain Solutions Ltd. on Dec. 29, 2006, for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         European Domain Solutions Ltd.  
         Tudor House
         Greenclose Lane
         Loughborough
         Leicestershire LE11 5AS
         England
         Tel: 0870 600 0841


F I PACKAGING: Taps Liquidators from Moore Stephens LLP
-------------------------------------------------------
David Elliott and Simon Paterson of Moore Stephens LLP were
appointed Liquidators of F I Packaging Ltd. on Oct. 4, 2006, for
the creditors' voluntary winding-up proceeding.

The Liquidators can be reached at:

         Moore Stephens LLP
         Victory House
         Admiralty Place
         Chatham Maritime
         Kent ME4 4QU
         England


FASTRACK FLOORING: Creditors' Meeting Scheduled for February 1
--------------------------------------------------------------
Cre ditors of Fastrack Flooring (Southern) Ltd. will meet at  
11:15 a.m. on Feb. 1 at:

         Redman Nichols
         Maclaren House  
         Skerne Road
         Driffield
         East Yorkshire YO25 6PN
         England

A. J. Nichols of Redman Nichols will furnish creditors with
information concerning the company's affairs free of charge as
they may reasonably require.


FIN LTD: Creditors' Meeting Slated for January 23
-------------------------------------------------
Creditors of Fin Ltd. will meet at 11:00 a.m. on Jan. 23 at:
  
         Panos Eliades, Franklin & Co.  
         Albany House
         18 Theydon Road
         London E5 9NZ
         England

Stephen Franklin of Panos Eliades, Franklin & Co. will furnish
creditors with information concerning the company's affairs free
of charge as they may reasonably require on Jan. 22.


FRUDD CONSTRUCTION: Brings In Administrators from Ernst & Young
---------------------------------------------------------------
Robert Hunter Kelly and Charles Graham John King of Ernst &
Young LLP were appointed joint administrators of Frudd
Construction Ltd. (Company Number 01673323) on Jan. 3.

Headquartered in Leeds, England, Ernst & Young --  
http://www.ey.com/-- provides broad array of services relating  
to audit and risk-related service s, tax, and transactions
across all industries-from emerging growth companies to global
powerhouses-deal with a broad range of business issues.   

Frudd Construction Ltd. can be reached at:

         Byidon House  
         92 Rolleston Drive Arnold
         Nottingham
         Nottinghamshire NG5 7JP
         United Kingdom
         Tel: 0115 955 5888
         Fax: 0115 955 5900


GENERAL MOTORS: Eyes Purchase of Stake in Malaysia's Proton
-----------------------------------------------------------
General Motors Corp. has expressed interest in buying a stake in
Malaysian carmaker Proton Holdings Bhd., Soraya Permatasari and
Angus Whitley write for Bloomberg News.  Reports say GM could
offer more than MYR10 for each Proton share.

Nik Azhar Abdullah, who oversees about US$684 million at Avenue
Asset Management Sdn. in Kuala Lumpur, told Bloomberg that GM
can use Malaysia as an Asian platform in connection with its
expansion to China, India and other Asian emerging markets.  
According to Malaysian Automotive Association, Proton held 24%
of Malaysia's car market as of Sept. 30, 2006.

GM's Shanghai-based spokesman Rob Leggat has disclosed that GM
held talks with Proton.  However, Faridah Idris, a spokeswoman
at Proton, declined to comment.  In November 2000, GM held talks
with Proton about a deal in Malaysia but the discussions did not
result in any partnership.

According to Bloomberg, Proton, which has suffered low profits
in the past seven years, is seeking a new partner to stem losses
following the end of its 21-year partnership with Mitsubishi
Motors Corp. in March 2004.

Proton disclosed of a MYR250.3 million loss in the quarter ended
Sept. 30, 2006, compared to a MYR154.3 million loss for the same
period in 2005.

Malaysia's Second Finance Minister Nor Mohamed Yakcop told
reporters that separate discussion are also ongoing between
Volkswagen AG and PSA Peugeot Citroen, which could lead to the
sale of a stake in Proton.

                     About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the  
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 327,000
people around the world.  It has manufacturing operations in
33 countries and its vehicles are sold in 200 countries.  GM  
sells cars and trucks under these brands: Buick, Cadillac,  
Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab,  
Saturn and Vauxhall.

                           *     *     *

As reported in the TCR-Europe on Nov. 16, 2006, Standard &  
Poor's Ratings Services assigned its 'B+' bank loan rating to  
General Motors Corp.'s proposed US$1.5 billion senior term  
loan facility, expiring 2013, with a recovery rating of  
'1'.  The 'B+' rating was placed on Creditwatch with negative  
implications, consistent with the other issue ratings of GM,  
excluding recovery ratings.  
  
At the same time, Moody's Investors Service assigned a Ba3,  
LGD1, 9% rating to the proposed US$1.5 Billion secured term  
loan of General Motors Corp.  The term loan will be secured by a  
first priority perfected security interest in all of the U.S.  
machinery and equipment, and special tools of GM and Saturn  
Corporation.


GUILDCREW LTD: Peter Sargent Leads Liquidation Procedure
--------------------------------------------------------
Peter Sargent of Begbies Traynor was appointed Liquidator of
Guildcrew Ltd. (t/a Huddersfield Indoor Karting) on  
Dec. 28, 2006, for the creditors' voluntary winding-up
procedure.

Begbies Traynor -- http://www.begbies.com/-- assists companies,  
creditors, financial institutions and individuals on all aspects
of financial restructuring and corporate recovery.   

Guildcrew Ltd. can be reached at:

         Unit 3 Gate 4
         Meltham Mills Industrial Estate
         Meltham
         Holmfirth
         West Yorkshire HD9 4DS
         England
         Tel: 01484 850 081


HANOVER COMPRESSOR: Partially Redeems US$20-Mln Jr. Sub. Notes
--------------------------------------------------------------
Hanover Compressor Co. completed the partial redemption of
US$20,871,000 aggregate principal amount of Convertible Junior
Subordinated Debentures Due 2029.

All of the Debentures are owned by Hanover Compressor Capital
Trust and the Trust was required to use the proceeds received
from such redemption to redeem US$20,245,000 aggregate
liquidation amount of its 7-1/4% Convertible Preferred
Securities and US$626,000 aggregate liquidation amount of its
7-1/4% Convertible Common Securities.

The company owns all of the Common Securities of the Trust.  
The Debentures were called on Dec. 15, 2006, for redemption on
Thursday, Jan. 4, 2007.

Of the US$20,245,000 of TIDES Preferred Securities called,
US$20,052,700 was converted into 1,121,800 shares of Hanover
Common Stock.  Hanover expects its related annual interest
expense to be reduced by around US$1.5 million.

Headquartered in Houston, Texas, Hanover Compressor Company --
http://www.hanover-co.com-- rents and repairs compressors and  
performs natural gas compression services for oil and gas
companies.  It has a fleet of more than 6,520 mobile compressors
ranging from 8 to 4,735 horsepower.  The company's subsidiaries
also provide service, fabrication, and equipment for oil and
natural gas processing and transportation applications.  Hanover
Compressor is disposing of its non-oilfield power generation
facilities and used equipment businesses to focus on core
operations.  In 2006 the company sold the U.S. amine treating
rental assets of Hanover Compression Ltd. Partnership to oil and
gas firm Crosstex Energy for about US$52 million.

The company has locations in Argentina, Bolivia, China,
Indonesia, Japan, Korea, Peru, Taiwan, Trinidad, the United
Kingdom, Venezuela and Vietnam, among others.

                        *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its B1 Corporate
Family Rating for Hanover Compressor Company.

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

Issuer: Hanover Compressor Company

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   4.75% Sr. Unsec.
   Conv Notes Due 2008    B3       B3      LGD5       89%

   8.625% Sr. Unsec.
   Gtd. Notes Due 2010    B3       B2      LGD4       59%

   4.75% Sr. Unsec.
   Conv Notes Due 2014    B3       B3      LGD5       89%

   9% Sr. Unsec. Gtd.
   Notes Due 2014         B3       B2      LGD4       59%

   7.5% Sr. Unsec. Gtd.
   Notes Due 2013         B3       B2      LGD4       59%

   7.25% Conv.
   Preferred
   Securities Due 2029   Caa1      B3      LGD6       96%

Issuer: Hanover Equipment Trust 2001A

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   2001 A Equipment
   Lease Notes
   Due 2008               B2      Ba3      LGD3       30%

Issuer: Hanover Equipment Trust 2001B

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   2001 B Equipment
   Lease Notes
   Due 2011               B2      Ba3      LGD3       30%


HIGHMOUNT GARAGE: Appoints J. M. Titley as Liquidator
-----------------------------------------------------
J. M. Titley of DTE Leonard Curtis was appointed Liquidator of
Highmount Garage Ltd. on Jan. 4 for the creditors' voluntary
winding-up proceeding.

DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax  
consultancy, company secretarial services, corporate finance,
corporate recovery, turnaround, forensic accounting, financial
services and insurance & risk management.

Highmount Garage Ltd. can be reached at:

         Nairne Street
         Burnley
         Lancashire BB114PD
         Tel: 01282 426 018
         Fax: 01282411603  


IDLECARE LTD: Creditors' Meeting Slated for January 19
------------------------------------------------------
Creditors of Idlecare Ltd. will meet at 11:30 a.m. on Jan. 19
at:

         32 Cornhill
         London EC3V 3BT
         England

Creditors who want to vote at the meeting must submit
particulars of their claims or of any security, together with
their proxy forms, at noon on Jan. 18 at:

         Begbies Traynor
         The Old Exchange
         234 Southchurch Road
         Southend-on-Sea  
         Essex SS1 2EG
         England


INTELSAT LTD: Bermuda Unit Prices US$600 Million Senior Notes
-------------------------------------------------------------
Intelsat (Bermuda), Ltd., priced US$600 million aggregate
principal amount of floating rate senior notes due 2015.  The
notes will bear interest at LIBOR plus 350 basis points.  The
net proceeds from the notes offering will be used, together with
cash on hand, to repay Intelsat (Bermuda)'s outstanding US$600
million senior unsecured bridge loan.  The notes offering is
expected to close on Jan. 12, 2007.

The notes will be offered to qualified institutional buyers
under Rule 144A and to persons outside the United States under
Regulation S.

The notes will not be registered under the Securities Act of
1933, as amended, and, unless so registered, may not be offered
or sold in the U.S. except pursuant to an exemption from, or in
a transaction not subject to, the registration requirements of
the Securities Act and applicable state securities laws.

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.


INTELSAT LTD: Moody's Rates US$600 Million Senior Loan at B2
------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to Intelsat
Ltd.'s proposed US$1 billion of Senior Unsecured Term Loan and a
Caa1 rating to Intelsat Bermuda's proposed US$600 million Senior
Unsecured Notes.  

The proceeds from the new notes and the term loan will be used
to fund the repurchase of Intelsat Subsidiary Holding Company,
Ltd.'s US$1 billion of floating rate notes due 2012 and Intelsat
Bermuda's US$600 million senior unsecured term loan.

Moody's has affirmed Intelsat's existing ratings, as the ratings
agency believes that the company's total debt will not change as
a result of the proposed transaction, which will have minimal
cash flow impact on the company.  Intelsat's B2 corporate family
rating broadly reflects the company's high leverage and the
execution risk of combining Intelsat and PanAmSat.  

Moody's analyst, Gerald Granovsky, also notes that given the
ownership composition of the company, future financial policies
may continue to be shareholder friendly.  The ratings benefit
somewhat from the combined company's leading position in the
global fixed satellite service business, good free cash flow,
and the substantial US$8 billion backlog of contracted future
revenues.

Although Intelsat Bermuda's new senior unsecured term loan will
replace SubHoldco's floating rate notes, the obligations of
SubHoldco will remain unchanged as Bermuda's new term loan will
be guaranteed by SubHoldco.

In addition, Moody's has withdrawn the prospective B2 rating on
Intelsat Corp.'s senior unsecured term loan, which was assigned
on Sept. 7, 2006.  The term loan financing is not required as
the holders of Intelsat Corp.'s senior notes due 2014 did not
tender sufficient amount of notes to complete the tender.

The outlook remains stable.

Moody's has also upgraded Intelsat's short-term liquidity
ratings to SGL-1 from SGL-2, reflecting the company's very good
liquidity comprising its large cash balances, stable cash flow
from operations and availability under the two revolving credit
facilities.

Moody's has taken these ratings actions:


   * Intelsat Ltd:

      -- Corporate family rating Affirmed at B2
      -- SGL Rating Upgraded to SGL-1
      -- 5.25% Global notes, due 2008 Affirmed Caa1, LGD6, 93%
      -- 7.625% Sr. Notes, due 2012 Affirmed Caa1, LGD6, 93%
      -- 6.5% Global Notes, due 2013 Affirmed Caa1, LGD6, 93%

   * Intelsat Bermuda Ltd.

      -- New US$600 million Floating Rate Sr. Notes Due 2015
         Assigned Caa1, LGD5, 82%

      -- New US$1 billion Unsecured Term Loan Due 2014 Assigned
         B2, LGD3, 45%

      -- 9.25% Guaranteed Sr. Notes Affirmed B2, LGD3, 45%

      -- Floating Rate Sr. Notes Due 2013 Affirmed Caa1, LGD5,
         82%

      -- 11.25% Sr. Notes Affirmed Caa1, LGD5, 82%

   * Intelsat Intermediate Holding Company Ltd.

      -- Sr. Discount Notes, due 2015 Affirmed B3, LGD5, 72%

   * Intelsat Subsidiary Holding Company Ltd.

      -- Guaranteed Sr. Secured Revolver, due 2012 Affirmed Ba2,
         LGD1, 8%

      -- Guaranteed Sr. Secured T/L B, due 2013 Affirmed Ba2,
         LGD1, 8%

      -- Sr. Floating Rate Notes, due 2012 Affirmed B2, LGD3,
         45% and to be withdrawn upon redemption

      -- 8.25% Sr. Notes, due 2013 Affirmed B2, LGD3, 45%

      -- 8.625% Sr. Notes, due 2015 Affirmed B2, LGD3, 45%

   * Intelsat Corp.

      -- Guaranteed Sr. Secured Revolver, due 2012 Affirmed Ba2,
         LGD1, 8%

      -- Guaranteed Sr. Secured Loan A, due 2012 Affirmed Ba2,
         LGD1, 8%

      -- Guaranteed Sr. Secured Loan B, due 2014 Affirmed Ba2,
         LGD1, 8%

      -- 6.375% senior secured notes, due 2008 Affirmed Ba2,
         LGD1, 8%

      -- 6.875% senior secured debentures, due 2028 Affirmed
         Ba2, LGD1, 8%

      -- 9% senior notes, due 2014 Affirmed B2, LGD3, 45%

      -- 9% senior notes, due 2016 Affirmed B2, LGD3, 45%

      -- US$667 million Senior Unsecured Term Loan Due 2014
         Rating Withdrawn

The outlook is stable.

Intelsat, headquartered in Bermuda, is a fixed satellite service
operator and is owned by Apollo Management, Apax Partners,
Madison Dearborn, and Permira.

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.


KEITH WOOD: Creditors' Meeting Slated for January 19
----------------------------------------------------
Creditors of Keith Wood Narrowboats Ltd. will meet at 10:15 a.m.
on Jan. 19 at:

         The Gonville Hotel
         Gonville Place
         Cambridge CB1 2NU
         England

A list of names and addresses of the Company's Creditors will be
available for inspection free of charge between 10:00 a.m. and  
4:00 p.m. on Jan. 17 at the office of Philip A. Beck at:

         41 Kingston Street
         Cambridge CB1 2NU
         England


LENVAL ESSEX: Taps Liquidators from Moore Stephens LLP
------------------------------------------------------
David Elliott and Simon Paterson of Moore Stephens LLP were
appointed Liquidators of Lenval Essex Ltd. on Oct. 2, 2006, for
the creditors' voluntary winding-up procedure.

Moore Stephens -- http://www.moorestephens.co.uk/-- offers  
audit, business support, corporate finance, corporate recovery,
dispute analysis, financial services, insurance broking, IT
consultancy, pensions audit, risk advisory services, tax and
trusts & estates services.  Its U.K. network comprises over
1,400 partners and staff

Lenval Essex Ltd. can be reached at:

         Stanford Industrial Estate
         Wharf Road
         Stanford Le Hope
         Essex SS170EH
         Tel: 01375 640 344
         Fax: 01375 640 331  


LERNA LTD: Creditors' Meeting Slated for January 26
---------------------------------------------------
Creditors of Lerna Ltd. will meet at 11:00 a.m. on Jan. 26 at:
  
         Kallis & Co.
         1148 High Road
         Whetstone
         London N20 0RA
         United Kingdom
  
Creditors who want to vote at the meeting must submit
particulars of their claims or of any security, together with
their proxy forms, at noon on Jan. 25 to Elizabeth Arakapiotis
at the said address.  

Ms. Arakapiotis will furnish creditors with information
concerning the company's affairs free of charge as they may
reasonably require.


LIZBAN PRESS: Appoints Liquidators from Moore Stephens LLP
----------------------------------------------------------
David Elliott and Simon Paterson of Moore Stephens LLP were
appointed Liquidators of Lizban Press Ltd. on Dec. 12, 2006, for
the creditors' voluntary winding-up procedure.

Moore Stephens -- http://www.moorestephens.co.uk/-- offers  
audit, business support, corporate finance, corporate recovery,
dispute analysis, financial services, insurance broking, IT
consultancy, pensions audit, risk advisory services, tax and
trusts & estates services.  Its U.K. network comprises over
1,400 partners and staff.

Lizban Press Ltd. can be reached at:

         Unit 5 Block 2
         Dockyard Industrial Estate
         Woolwich Church Street
         Greenwich
         London SE185PQ
         England
         Tel: 020 8316 1230
         Fax: 020 8316 4004  


MAGNA REAL: Calls In Liquidator from Marshman & Co.
---------------------------------------------------
Roger Neil Marshman of Marshman & Co. was appointed Liquidator
of Magna Real Estate Ltd. on Jan. 4 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Magna Real Estate Ltd.
         1 Kingly Street
         City of Westminster
         London W1B 5PA
         England  
         Tel: 020 7439 9944


MAYFLOWER VEHICLE: Appoints Liquidators from Deloitte & Touche
--------------------------------------------------------------
Nicholas James Dargan and William Kenneth Dawson of Deloitte &
Touche LLP were appointed Liquidators of Mayflower Vehicle
Systems PLC on Dec. 28, 2006, for the creditors' voluntary
winding-up procedure.

Deloitte & Touche LLP -- http://www.deloitte.com/-- provides  
audit, tax, consulting and corporate finance services through
more than 9,000 people in 21 locations.  The group is the United
Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein
whose member firms are separate and independent legal entities.   

Mayflower Vehicle Systems PLC can be reached at:

         Holbrook Lane
         Coventry
         West Midlands CV6 4AW
         England  
         Tel: 02476584100
         Fax: 024 7668 8209  


MUSIC ZONE: Appoints Deloitte and Touche as Joint Administrators
----------------------------------------------------------------
Music Zone Services Ltd. (Company Number 02939264) and its
parent company Music Zone Holdings Ltd. (Company Number
05340564) appointed William Kenneth Dawson and Nicholas James
Dargan of Deloitte and Touche LLP as its joint administrators on
Jan. 3.

According to The Times, the problems at the 100-store chain came
a year after it almost doubled its sized when it bought rival
music chain MVC from insolvency.

"There is a growing number of high street retailers like Music
Zone experiencing challenging trading conditions.  Pre-Christmas
spending was also poorer than expected," a spokesperson for the
company was quoted by The Times as saying.

"The decision by our bankers to recover debts and withdraw
credit facilities without notice and with immediate effect left
us and our private equity backers with no real alternative other
than to appoint administrators," the spokesman added.

"We're currently trading the business while seeking interested
parties to acquire Music Zone as a going concern," Bill Dawson
partner at Deloitte told The Times.

"Despite the best efforts of a very capable management team,
Music Zone has struggled in the face of aggressive pricing and
deteriorating sales across the music and DVD sector," a
spokesperson for Lloyds TSB Development Capital, Music Zone's
private equity backers told The Times.  

"We're now working closely with management and the
administrators to identify the most favorable outcome for
employees, creditors and shareholders," he added.

According to the report, Music Zone's accounts filed with the
Companies House for the year ended May 31, 2005, showed a pre-
tax loss of GBP4,000 compared with GBP397,000 profit in 2004.  

Sales for the year ended May 31, 2005, were from GBP58.4 million
to GBP70 million.

Headquartered in London, England Deloitte & Touche LLP --
http://www.deloitte.com/-- provides audit, tax, consulting and  
corporate finance services through more than 9,000 people in 21
locations.  The group is the United Kingdom member firm of
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  

Headquartered in Stockport, England, Music Zone Services Ltd. --
http://www.musiczone.co.uk/-- is a private equity-backed music  
retailer operating 104 stores across the U.K.  It employs 1,100
staff.


NEAL PRECISION: Creditors' Meeting Slated for January 19
--------------------------------------------------------
Creditors of Neal Precision Ltd. will meet at 10:30 a.m. on
Jan. 19 at:

         Burton Wallis Ltd.
         63 Fosse Way
         Syston
         Leicester
         England

Creditors who want to vote at the meeting must submit
particulars of their claims or of any security, together with
their proxy forms, at noon on Jan. 18 at the said address.  

A list of names and addresses of the Company's Creditors will be
available for inspection free of charge between 10:00 a.m. and  
4:00 p.m. on Jan. 17 and Jan. 18.


NECHO SYSTEMS: Creditors Ratify Voluntary Liquidation
-----------------------------------------------------
Creditors of Necho Systems Europe Ltd. ratified the company's
resolutions for voluntary liquidation on Dec. 19, 2006.

The appointment of Alan H. Tomlinson of Tomlinsons as Liquidator
was also ratified on the same date.

Tomlinsons -- http://www.tomlinsons.co.uk/-- specializes in all  
types of business recovery and insolvency procedures, as well as
offering advice to companies and individuals who believe they
may be heading towards, or are already in, financial difficulty.

Necho Systems Europe Ltd. can be reached at:

         Chan cery Court
         Lincolns Inn
         Lincoln Road
         Cressex Business Park
         High Wycombe
         Buckinghamshire HP123RE
         England
         Tel: 01494 429 305


NIGHTCLUB COMPANY: Joint Liquidators Take Over Operations
---------------------------------------------------------
David Gerald Lancelot Hargrave and Michael John Andrew Jervis of
PricewaterhouseCoopers LLP were appointed Liquidators of The
Nightclub Company (U.K.) Ltd. (formerly Homeflight Ltd.) on  
Dec. 21, 2006, for the creditors' voluntary winding-up
proceeding.

The Liquidators can be reached at:

         PricewaterhouseCoopers LLP
         12 Plumtree Court
         London EC4A 4HT
         England

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--  
provides auditing services, accounting advice, tax compliance
and consulting, financial consulting and advisory services to
clients in a variety of industries.  


OFF SHOOT: Creditors' Claims Due February 9
-------------------------------------------
Creditors of Off Shoot Clothing Ltd. have until Feb. 9 to submit
their proof of debt to appointed Joint Liquidator  
S. J. Parke r at:

         Tenon Recovery  
         Sherlock House
         73 Baker Street
         London W1U 6RD
         England

The Liquidator intends to pay a first and final dividend to the
unsecured creditors within four months of the last date for
proving.


ORIGINAL GIFT: Creditors' Meeting Slated for January 25
-------------------------------------------------------
Creditors of The Original Gift Basket Company Ltd. will meet at
10:30 a.m. on Jan. 25 at:

         The P&A Partnership
         93 Queen Street
         Sheffield S1 1WF
         England

A list of names and addresses of the Company's Creditors will be
available for inspection, between 10:00 a.m. and 4:00 p.m. on
Jan. 23 at The P&A Partnership.


PHOENIX STONE: Claims Filing Period Ends February 28
----------------------------------------------------
Creditors of Phoenix Stone (Hornchurch) Ltd. have until  
Feb. 28 to send in their full names and addresses, full
particulars of their debts or claims, and the names and
addresses of their Solicitors (if any), to appointed Liquidator
William Antony Batty at:

         Antony Batty & Co.  
         Third Floor
         3 Field Court
         Gray's Inn
         London WC1R 5EF
         England

The company can be reached at:

         Phoenix Stone (Hornchurch) Ltd.
         High Street
         Hornchurch
         Essex RM111TP
         England
         Tel: 01708 475 757
         Fax: 01708 443 300  


PRESENTATION PLASTICS: Names Ian William Kings Liquidator
---------------------------------------------------------
Ian William Kings of Tenon Recovery was appointed Liquidator of
Presentation Plastics & Promotions Ltd. on Dec. 20, 2006, for
the creditors' voluntary winding-up procedure.

Tenon Recovery -- http://www.tenongroup.com/-- provides  
accounting and business advice to owner-managed and private
business.

Plastics & Promotions Ltd. can be reached at:

         38 Dukesway
         Teesside Industrial Estate
         Stockton on Tees
         Cleveland TS179LT
         United Kingdom  
         Tel: 01642 765 566
         Fax: 01642 760 692  


PROPEX INC: Moody's Holds Junk Rating on US$150 Million Sr. Debt
----------------------------------------------------------------
Moody's Investors Service changed the outlook on Propex Inc.'s
long-term debt ratings to negative from stable.  

The action was prompted by operating weakness, including
declining sales and profitability resulting from a cyclical
slowdown in residential construction and overall economic
activity.  The company is currently in the process of
renegotiating its bank covenants.

The operating weakness was exacerbated by the greater than
expected impact of the backward integration of the large
residential carpet manufacturers, namely Shaw Industries, Inc.
and Mohawk Industries, Inc. into the carpet backing business.
Volumes in geotextiles as well as other industrial and concrete
applications were also below expectations, as was the case with
other polypropylene converters in recent months.  Moody's
expects that weak performance is likely to continue through 2007
or until residential construction begins to recover.

Although Moody's believes that current ratings appropriately
balance the company's leadership position in its principal
markets with the mature and cyclical nature of many of these
markets, companies are at a point in the business cycle, which,
if prolonged, presents increased risk for the lenders.
Notwithstanding the probable covenant breach as of
Dec. 31, 2006, Moody's believes that the lender group provides
covenant relief at levels, which recognize current weakness in
the company's principal end markets.

The B2 Corporate Family Rating and instrument ratings continue
to reflect the company's high leverage, weak interest coverage
and low free cash flow generation relative to debt.  The ratings
also reflect the highly competitive, mature industry that Propex
operates in and the cyclical nature of many of the end markets.
Residential renovation and construction are particularly
vulnerable to economic downturns, increases in interest rates
and housing-specific market disruptions or corrections.  The
ratings benefit from scale and diversification opportunities
offered by the integration of SI's industrial fabrics,
geotextiles and concrete systems businesses and a shift away
from carpet backing as the source of the majority of the
revenues along with a reduction in customer concentration.

The ratings recognize the completion of key initiatives to
achieve cost reductions and eliminate duplication.  The ratings
also acknowledge Propex's leadership position in its principal
market segments and historical ability in managing price
fluctuations relating to raw materials.

Moody's affirmed these ratings:

   -- The Ba3 LGD3, 30% rating on the senior secured credit
      facilities consisting of a US$50 million revolver due
      2011, and the original US$260 million term loan due 2012;

   -- The Caa1, LGD5, 82% rating on the US$150 million senior
      unsecured due 2012;

   -- The B2 Corporate Family Rating;

   -- The B2 Probability of Default Rating;

The ratings outlook was changed to negative from positive.

The Speculative Grade Liquidity Rating is SGL-3.  Adequate
liquidity is subject to covenant relief.


PSP WHOLESALE: Creditors' Meeting Slated for January 25
-------------------------------------------------------
Creditors of PSP (Wholesale) Ltd. will meet at 11:45 a.m. on
Jan. 25 at:
  
         The Blue Room
         Virgin 1st Class Passenger Lounge
         Euston Station
         London, England

A list of the names and addresses of the Company's Creditors may
be inspected, free of charge, between 10:00 a.m. and 4:00 p.m.
on Jan 23 at:

         Ideal Corporate Solutions Ltd.
         10 Eagley House
         Deakins Business Park
         Bolton BL7 9RP
         England


ROLLADECK LTD: Nominates Paul John Webb as Liquidator
-----------------------------------------------------
Paul John Webb of Mayfields Insolvency Practitioners was
nominated Liquidator of Rolladeck Ltd. on Dec. 13, 2006, for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Rolladeck Ltd.
         Leona Trading Estate
         Nimmings Road
         Halesowen
         West Midlands B62 9JQ  
         Tel: 0121 561 3113
         Fax: 0121 561 3113  


SCOTT'S MIRACLE: Moody's Lowers Corporate Family Rating to Ba2
--------------------------------------------------------------
Moody's Investors Service downgraded the long-term debt ratings
of Scott's Miracle Gro Company, including the company's
corporate family rating to Ba2 from Ba1.  

This rating action reflects the negative impact on the company's
financial profile after the company's recently launched
leveraged recapitalization expected to close by the end of
February 2007.  This recapitalization includes returning US$750
million to its shareholders through share repurchases of up to
US$250 million via a Dutch auction tender offer and a special
one-time cash dividend for the balance, not to be less than
US$500 million.

Scott's plans to finance these shareholder initiatives with a
new US$2.1 - US$2.3 billion secured revolving credit and term
loan facility.  In addition to refinancing the current bank
facilities, Scott's will use the remaining proceeds to launch a
tender offer for its US$200 million 6-5/8% senior subordinated
notes.  Upon the successful completion of the tender, Moody's
will withdraw its ratings on the senior subordinated notes.
Moody's also affirmed the company's SGL-2 speculative grade
liquidity assessment.  The rating outlook is stable.  This
concludes a review for possible downgrade initiated on
Dec. 14, 2006.

Scott's Ba2 corporate family rating and stable outlook continue
to benefit from the company's dominant market position,
efficient operational platform, strong customer relationships
and commitment to brand support and product development.  
However, the ratings are constrained by the company's weak free
cash flow due to its increased working capital and ongoing
capital expenditure requirements, the potential for earnings and
cash flow volatility due to the company's high seasonality, its
exposure to volatile raw materials prices, and its highly
concentrated customer base.

In addition, Scott's more aggressive financial policies
including paying out its financial cushion via its recently
announced leveraged dividend and share repurchase have resulted
in substantially increased leverage and weakened credit metrics.
Accordingly, Average Debt to EBITDA is expected to be 4.3x.

"This reduction in financial flexibility comes at a time when
the company is actively growing its core operations while
working to restore growth to its difficult European operation
and Smith & Hawken business," says Moody's Vice President Janice
Hofferber.

Nevertheless, Moody's recognizes the long-term favorable growth
trends for lawn and garden products driven by favorable
demographic and economic trends, and anticipates the company
will achieve debt reduction by applying free cash flow to debt
reduction.

Ratings affirmed:

   -- Specualtive Grade Liquidity, SGL-2

Ratings downgraded:

   -- Corporate family rating to Ba2 from Ba1;

   -- Probability of default rating to Ba2 from Ba1; and,

   -- US$200 million senior subordinated notes to B1, LGD6, 93%
      from Ba2, LGD6, 93%.

Outlook is stable.

The Scotts Miracle-Gro Company, with headquarters in Marysville,
Ohio, is a leading manufacturer and marketer of consumer lawn
care and garden products, primarily in North America and in
Europe.  The company also operates the Scotts Lawn Service
business which provides lawn and tree and shrub fertilization,
insect control and other related services in the United States.
Scotts sells professional products to commercial nurseries,
greenhouses, landscape service providers and specialty crop
growers in North America and internationally.  Sales for the
fiscal year ended September 2006 were US$2.7 billion.


SILKCROSS DEVELOPMENTS: Nominates Liquidator from Mayfields
-----------------------------------------------------------
Paul John Webb of Mayfields Insolvency Practitioners was
nominated Liquidator of Silkcross Developments Ltd. on
Dec. 14, 2006, for the creditors' voluntary win ding-up
proceeding.

The company can be reached at:

         Silkcross Developments Ltd.
         47 Wood Street
         Wednesbury
         West Midlands WS109RS  
         England
         Tel: 0121 505 6778
         Fax: 0121 605 7519  


SOLUTIA INC: Seeks Fifth Amendment of DIP Loan with CitiCorp USA
----------------------------------------------------------------
Solutia Inc. and its debtor-affiliates seek the authority of the
U.S. Bankruptcy Court for the Southern District of New York to
enter into a fifth amendment to their Financing Agreement, dated
as of Jan. 16, 2004, with Citicorp U.S.A. Inc. as DIP Agent, and
the DIP Lenders.

The Fifth Amendment will extend the term of the DIP Financing
Facility to March 31, 2008, and increase the size of the
Facility by US$400,000,000.

Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York,
notes that the current DIP Agreement will mature on
March 31, 2007.

Mr. Henes also tells the Court that Solutia is actively
negotiating with all of its major constituents for a consensual
plan of reorganization that would call for distributions to
holders of the 2027 and 2037 notes representing a significant
premium to other unsecured creditors.

Solutia is also in the process of selling substantially all of
the equity of reorganized Solutia.  The proceeds of a successful
sale of the new Common Stock will be used to make cash
distributions to Solutia's creditors.  The sale would allow
Solutia to emerge from Chapter 11 before a final non-appealable
judgment is entered in the adversary proceeding of JPMorgan
Chase Bank.

Additionally, a disputed claims reserve would be established on
the effective date to satisfy the asserted secured portion of
the noteholders' claims in the event the noteholders ultimately
prevail in the JPMorgan Adversary.  However, it is unlikely that
Solutia can emerge from Chapter 11 before the DIP Agreement
matures on March 31, 2007, Mr. Henes notes.

Solutia tells the Court that additional DIP financing is needed
to meet its substantial financial obligations during 2007,
including minimum pension funding obligations, legacy liability
costs, and reorganization expenses.  Additional financing is
also needed for the strategic transaction with respect to
Flexsys, a 50/50 joint venture between Solutia and Akzo Nobel,
N.V. for the production of chemicals used in the rubber
industry.

To address those concerns, Solutia has negotiated the Fifth
Amendment to the DIP Agreement, and has received a fully
underwritten commitment from Citigroup Global Markets Inc., for
an extension of the DIP Agreement's maturity date and for
additional DIP financing, Mr. Henes informs the Court.

Todd R. Snyder, managing director of Rothschild Inc., Solutia's
financial advisor, attests that the Fifth DIP Amendment is a key
component to Solutia's efforts to emerge from Chapter 11 in that
it will ensure financing issues will not disrupt Solutia's
remarkable turnaround in its businesses, which has created
significant enterprise value for the benefit of all of Solutia's
stakeholders.

Mr. Henes asserts that Solutia should be authorized to enter
into the fifth DIP amendment because the:

     * The DIP financing is not available on less onerous terms;

       None of Solutia's potential lenders would provide it DIP
       financing on an unsecured or non-priority basis.
       Accordingly, DIP Lenders and a competing prospective
       lender both required collateral and superiority claims
       before providing financing under the Fifth DIP Amendment.

     * Fifth DIP Amendment is necessary for Solutia to continue
       its business operations and preserve estate value; and

     * Fifth DIP Amendment's terms and conditions are fair,
       reasonable and consistent with the market.

       Solutia obtained a competing bid from Goldman Sachs & Co.
       that confirmed the competitiveness of the DIP Lenders'
       terms and conditions.  Rothschild examined the revolver
       and term loan interest rates proposed by the DIP Lenders
       and concluded that the rates are reasonable
       and consistent with the market.

Mr. Henes informs the Court that the Fifth DIP Amendment
generally provides for:

     * an extension of the DIP Agreement term to March 31, 2008;

     * an increase in the Revolving Credit Facility by
       US$75,000,000;

     * an increase in the Term Loan B by US$325,000,000,
       including US$150,000,000 that can only be used to finance
       a strategic transaction with Flexsys;

     * an increase of certain thresholds that will allow Solutia
       to retain more of the proceeds from certain asset
       dispositions; and

     * other miscellaneous provisions.

The Amended Facility will consist of a US$250,000,000 revolving
credit facility with a US$150,000,000 letter of credit sub
limit, and a US$975,000,000 Term Loan B.

There will be a mandatory prepayment of Term Loan B equal to the
amount of the Amended Facility in excess of US$1,075,000,000 in
the event that the Flexsys acquisition does not occur within 90
days of the closing date or earlier optional prepayment.

Solutia will be required to secure the additional financing
under the Fifth DIP Amendment with liens and superiority claims
substantially similar to the provisions of the current DIP
Agreement.  Solutia will also pay DIP financing fees, including
an underwriting fee, Mr. Henes says.

The Debtors agree to limit their Capital Expenditures to
US$130,000,000 in the fiscal year 2006, and US$45,000,000 from
Jan. 1, 2007 through the Final Maturity Date.

The Debtors covenant with the Lenders that Consolidated EBITDA
will be no less than:

      Twelve-Month Period Ended     Minimum Consolidated EBITDA
      -------------------------     ---------------------------
       Jan. 31, 2007                  US$160,000,000
       Feb. 28, 2007                     160,000,000
       March 31, 2007                    163,900,000
       April 30, 2007                    172,700,000
       May 31, 2007                      175,200,000
       June 30, 2007                     176,000,000
       July 31, 2007                     175,400,000
       Aug. 31, 2007                     174,500,000
       Sept. 30, 2007                    179,200,000
       Oct. 31, 2007                     186,200,000
       Nov. 30, 2007                     194,100,000
       Dec. 31, 2007                     206,000,000
       Jan. 31, 2008                     209,500,000
       Feb. 28, 2008                     215,900,000
       March 31, 2008                    219,100,000

In the event that acquisition of the Flexsys business is
consummated, the Minimum Consolidated EBITDA for the periods
ending upon or after the consummation will be:

      Twelve-Month Period Ended     Minimum Consolidated EBITDA
      -------------------------     ---------------------------
       Jan. 31, 2007                  US$244,100,000
       Feb. 28, 2007                     247,300,000
       March 31, 2007                    253,600,000
       April 30, 2007                    259,900,000
       May 31, 2007                      260,000,000
       June 30, 2007                     258,300,000
       July 31, 2007                     255,300,000
       August 31, 2007                   252,000,000
       Sept. 30, 2007                    254,200,000
       Oct. 31, 2007                     258,800,000
       Nov. 30, 2007                     264,200,000
       Dec. 31, 2007                     273,600,000
       Jan. 31, 2008                     276,400,000
       Feb. 28, 2008                     282,100,000
       March 31, 2008                    284,600,000

Citigroup's commitment will terminate on the earlier of the date
the operative documents become effective, and Feb. 15, 2007, if
the Court has not approved the execution, delivery and
performance of the commitment letter, the fee letter, and the
Amended Facility by then.

A copy of the Fifth Amendment is available free of charge at:

http://bankrupt.com/misc/SolutiaAmendedFacility&LoanDocuments.pd
f

The Court will convene a hearing to consider approval of the
Fifth Amendment on Jan. 24, 2007 at 11:00 a.m.  Objections to
the Debtors' request are due on Jan. 19, 2007 at 4:00 p.m.

                       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. 76; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SONORA U.K.: Brings In Liquidator from Findlay James
----------------------------------------------------
Alisdair J. Findlay of Findlay James was appointed Liquidator of
Sonora U.K. Ltd. on Dec. 12, 2006, for the creditors' voluntary
winding-up proceeding.

The Liquidator can be reached at:

         Findlay James
         Saxon House
         Saxon Way
         Cheltenham GL52 6QX
         England


SPF CORBY: Creditors' Meeting Slated for January 31
---------------------------------------------------
Creditors of SPF (Corby) Ltd. will meet at 11:15 a.m. on  
Jan. 31 at the offices of:

         Price & Co.
         65 Broad Green
         Wellingborough
         Northamptonshire NN8 4LQ
         England

Creditors must submit particulars of their claims or of any
security, together with their proxy forms, at noon on April 12
at the said address.

Alan R. Price of Price & Co. will furnish creditors with
information in relation to the company's affairs free of charge
on Jan. 30.


STEPHEN CLARK: Appoints Pwc as Joint Administrators
---------------------------------------------------
Graham Martin and Laurie Manson of PricewaterhouseCoopers LLP
were appointed Joint Administrators of Scottish sheet metal
fabricator Stephen Clark Fabrications Limited, Creditman.co.uk
reports.

According to PricewaterhouseCoopers, the sheet metal fabricator
went into administration after its largest client switched to
in-house production and its second largest put its new product
line out to tender.

The administrators plan to sell the entire business and assets
as a going concern.

"The business and assets would be of interest to companies in
the same industry who require additional capacity and/or orders
to add to their existing operations," Mr. Martin said.

Stephen Clark was formed in early 2005 when the business and
assets were acquired from the administrators of the predecessor
company.

Headquartered in Alloa, Scotland, Stephen Clark Fabrications
Limited -- http://www.scfabs.com/-- specialized in laser  
cutting, punching, folding, welding, dressing and powder coat
painting for the U.K. industrial, petrochemical and electronics
sectors.  It has the capacity to turn over around
GBP2.5 million-GBP3 million a year and employs some 25 staff.


SWAIN SADDLERS: Creditors' Meeting Slated for January 22
--------------------------------------------------------
Creditors of Swain Saddlers Ltd. will meet at 11:30 a.m. on
Jan. 22 at:

         Bottomley & Co.
         Glenwood House
         5 Arundel Way
         Cawston
         Rugby
         Warwickshire CV22 7TU
         England

A list of the names and addresses of the Company's Creditors
will be available for inspection, free of charge, on Jan. 18 at
Bottomley & Co.


SWALLOW HOTELS: Shuts Down Greens Hotel & Cuts 34 Jobs
------------------------------------------------------
Greens Hotel, one of 13 hotels and pubs across the U.K. that was
still being run by Swallow Group administrators Ernst & Young,
shut down and eliminated 34 jobs on Jan. 5, in the wake of the
Swallow Hotels collapse in September 2006, the Scotsman reports.

The three-star Eglinton Crescent establishment, located in
Edinburgh's West End, had been operating since it was converted
from four Georgian town houses in 1919.  Swallow acquired the
hotel from the North British Trust Group in 2005, part of a
package of 20 hotels in a deal considered to be worth about
GBP75 million, the Scotsman states.

According to the report, a spokeswoman for Ernst & Young said
the Greens Hotel's closure resulted from aborted negotiations
with a potential buyer.  Administrators are operating seven
hotels and pubs in Scotland and were in talks with buyers for
all seven locations, including in Edinburgh, Gretna, St Andrews,
and Nairn.

In October 2006, the Scotsman exposed company accounts that
revealed, through a system of selling the freehold on the
properties in return for inflated leases, the company had lost
GBP36.7 million in the ten months to June 30, 2006, more than
GBP120,000 a day.

Concurrently, Glen Wright, owner of the Dryfesdale Country House
Hotel, has bought the Moffat House Hotel for an undisclosed sum,
the Scotsman relates.

                      About Swallow Hotels

Swallow Hotels Limited -- http://www.swallow-hotels.com/-- is  
one of the largest privately owned hotel and pub groups in the
U.K.  On Sept. 14, 2006, the company went into receivership and
appointed A. Swarbrick, R. Bailey, and A.R. Bloom as joint
administrators of the company.  The affairs, business, and
property of the company are being managed by the joint
administrators, who act as agents of the company only and
without personal liability.  The company owned 671 sites across
the U.K., employing 7,300 staff.  The portfolio included around
70 hotels and 120 tenanted and managed pubs across Scotland,
many of them acquired in the past two years.  Around 600 have
been sold since.


TGT FINANCE: Nominates Liquidators from PricewaterhouseCoopers
--------------------------------------------------------------
Ian Christopher Oakley Smith and David John Blenkarn of
PricewaterhouseCoopers LLP were nominated Joint Liquidators of
TGT Finance on Dec. 28, 2006, for the creditors' voluntary
winding-up proceeding.

The Joint Liquidators can be reached at:

         PricewaterhouseCoopers LLP
         12 Plumtree Court
         London EC4A 4HT
         England


VITAL DESIGN: Creditors' Meeting Slated for February 7
------------------------------------------------------
Creditors of Vital Design & Advertising Ltd. will meet at 11:00
a.m. on Feb. 7 at:

         Towlers Court
         30A Elm Hill
         Norwich
         Norfolk NR3 1HG
         England

Creditors who want to vote must submit particulars of their
claims or of any security before the meeting at the said
address.  

A list of the names and addresses of the Company's Creditors
will be available for inspection, free of charge on Feb. 5.


WINDOW WORLD: Hires J. M. Titley to Liquidate Assets
----------------------------------------------------
J. M. Titley of DTE Leonard Curtis was appointed Liquidator of
Window World (North West) Ltd. on Dec. 15, 2006, for the
creditors' voluntary winding-up proceeding.

DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax  
consultancy, company secretarial services, corporate finance,
corporate recovery, turnaround, forensic accounting, financial
services and insurance & risk management.

Window World (North West) Ltd. can be reached at:

         Whitebirk Road
         Blackburn
         Lancashire BB1 3HY
         England
         Tel: 01254 668 708


                           *********

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