TCREUR_Public/070129.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Monday, January 29, 2007, Vol. 8, No. 20      

                            Headlines


A U S T R I A

AB ELEKTROINSTALLATIONEN: Creditors' Meeting Slated for Feb. 7
ADI MAYERS: Claims Registration Period Ends February 5
AGOLIT LLC: Claims Registration Period Ends February 8
ASDFG TELEFON: Claims Registration Period Ends February 1
BEJIC BAU: Claims Registration Period Ends January 30

CHARLYS BADERPARADIES: Claims Registration Period Ends Jan. 31
GLOBE PERSONALSERVICE: Claims Registration Period Ends Feb. 20
HIWEB IT: Creditors' Meeting Slated for January 31
KESMAN & FRANCAN: Court Dismisses Estate Administrator


B E L G I U M

REDPRAIRIE CORP: Narrow Product Focus Cues S&P to Affirm Ratings
TEKNI-PLEX: Operating Improvements Cue Moody's Stable Outlook


F I N L A N D

BENEFON OYJ: Extends Financing Deal with Octagon Solutions Ltd.
BENEFON OYJ: Shareholders' Meeting Slated for February 1


G E R M A N Y

ACRYTEC INDUSTRIEFUSSBODENSERVICE: Claims Filing Ends Feb. 13
ACTUANT CORP: Acquires Injectaseal Deutschland for US$13 Million
BENQ MOBILE: Claims Registration Ends February 23
FINESSE DENTALTECHNIK: Claims Registration Ends February 15
MASCHINE IM: Claims Registration Ends February 16

MIS INDUSTRIE: Claims Registration Period Ends February 19
MOMMEYER TOURISTIK: Claims Registration Ends February 14
POP-TEL GMBH: Claims Registration Ends February 8
PROPEX INC: Asking Waiver for Possible Covenant Non-Compliance
R. HAUBOLD: Claims Registration Ends February 14

RAAB'NSTEIN GMBH: Claims Registration Ends February 12
RENASELECT GMBH: Claims Registration Ends February 14
RSB RHEIN: Claims Registration Ends February 19
SONNENSCHEIN-MARKT: Claims Registration Ends February 8
TECOGRAPHICS COMPUTER: Claims Registration Ends February 16


H U N G A R Y

PROPEX INC: Asking Waiver for Possible Covenant Non-Compliance


I T A L Y

ALITALIA SPA: Offers for Italy's 30.1% Stake Due Today
FIAT SPA: Earns EUR1.07 Bln in 2006; To Pay EUR276-Mln Dividend
FIAT SPA: Auto Unit Renames to Fiat Group Automobiles S.p.A.
PARMALAT SPA: Court Extends Temporary Protection to February 27
SBARRO INC: S&P Affirms B- Rating on US$33-Million Loan Add-On

SBARRO INC: S&P Puts Negative Outlook on Increased Leverage


K A Z A K H S T A N

ASTANA FINANCE: Likely Support Cues Fitch to Affirm IDR at BB+
JAROV LLP: Creditors Must File Claims by March 3
KAMKOR-I LLP: Proof of Claim Deadline Slated for March 3
KAZINTERTECH LLP: Claims Filing Period Ends March 3
METSUR LLP: Claims Registration Ends March 3

PRODIZ LLP: Creditors Must File Claims by March 3
PROIZVODSTVENNO COMMERCHESKAYA: Creditors' Claims Due March 3
TECHENERCOM LLP: Proof of Claim Deadline Slated for March 3
TSESNA BANK: Moody's Assigns B1 Rating on Senior Unsecured Notes
TVK LLP: Claims Filing Period Ends March 3


K Y R G Y Z S T A N

ALLOYS AND MATERIALS: Claims Registration Ends March 9
BAAK-S LLP: Proof of Claim Deadline Slated for March 9


L U X E M B O U R G

NORTEL NETWORKS: Declares Preferred Share Dividends


N E T H E R L A N D S

ECHOSTAR COMMUNICATIONS: Solid Liquidity Prompts Fitch's BB- IDR
TSESNA BANK: Moody's Assigns B1 Rating on Senior Unsecured Notes


P O R T U G A L

BANCO ESPIRITO SANTO: Sues BDO Seidman for US$170 Million


R O M A N I A

LUKOIL ROMANIA: Parent to Hike Capital by US$40 Million


R U S S I A

BALTIYSKAYA BUILDING: Court Names M. Brylyev to Manage Assets
BRYANSK-GLASS LLC: Bryansk Bankruptcy Hearing Slated for May 21
DIAMOND CJSC: Court Names V. Pyatykh as Insolvency Manager
ELBRUS OJSC: Court Starts Bankruptcy Supervision Procedure
FORWARDING COMPANY: Creditors Must File Claims by March 2

GLAV-STROY-MONOLITH OJSC: Moscow Court Starts Bankruptcy Process
GOLDEN TELECOM: Continues Consolidation of Regional Assets
KUYBYSHEVSKOYE LLC: Bankruptcy Hearing Slated for March 13
LUKOIL OAO: Eyes US$40 Million Investment in Lukoil Romania
METAL-WORKING COMPANY: Court Names V. Dubovoy to Manage Assets

ORENBURSKIY FACTORY: Court Names K. Garkanov to Manage Assets
PINE OJSC: St. Petersburg Bankruptcy Hearing Slated for March 20
PURE WATER: Court Names L. Sorokina as Insolvency Manager
ROS-MARKET LLC: Rostov Bankruptcy Hearing Slated for April 16
ROSNEFT OIL: To Share Russian Offshore Fields with OAO Gazprom

TMK OAO: Hikes Pipe Shipment to 3,018,000 Tons
TOSNENSKIY WOOD: Court Names A. Zhadnov as Insolvency Manager
ZAVITINSKIY BUTTER: Creditors Must File Claims by March 2
ZIMINKA OJSC: Court Names G. Kuptsov as Insolvency Manager


S W I T Z E R L A N D

AUGENLASER-ZENTRUM: Creditors' Liquidation Claims Due February 8
AUTO RUDEL: Creditors' Liquidation Claims Due February 5
BF COMPANY: Creditors' Liquidation Claims Due February 28
BLATEC BLADE: Creditors' Liquidation Claims Due February 5
BLITEMA VERLAG: Creditors' Liquidation Claims Due February 15

CIMTEC ENGINEERING: Creditors' Liquidation Claims Due February 5
DROGERIE ZIEGLER: Creditors' Liquidation Claims Due February 16
ESKA-NORM LLC: Liestal Court Closes Bankruptcy Proceedings
GERBER P. KUCHEN: Bern Court Closes Bankruptcy Proceedings
MIRKOS SA: Surselva Court Closes Bankruptcy Proceedings


T U R K E Y

SEKERBANK T.A.S.: Weak Management Controls Cue Fitch's B- IDR
VAKIFLAR BANKASI: Fitch Affirms Issuer Default Rating at BB-


U K R A I N E

DALPORT-K: Claims Submission Deadline Set February 11
FARMVEST LLC: Claims Submission Deadline Set February 11
FRUNZE LLC: Creditors Must Submit Claims by February 11
MAGNESIUM CJSC: Creditors Must Submit Claims by February 11
UKRGAZTORG LLC: Claims Submission Deadline Set February 11

VINADA TRANSSERVICE: Claims Submission Deadline Set February 8


U N I T E D   K I N G D O M

24 SEVEN: Creditors' Meeting Slated for January 30
A & M: Creditors' Meeting Slated for February 6
AB MOTORSPORT: Creditors' Meeting Slated for January 31
ABBASI TRADERS: Creditors' Meeting Scheduled for February 8
ADVANCED MARKETING: Asks Court to Set Reclamation Claims Process

BALDOR ELECTRIC: Moody's Puts Low-B Rating on High Debt Leverage
BATH BLIND: Creditors' Meeting Slated for January 12
BRITISH AIRWAYS: Resumes Talks Over Strike Action Today
C J ENTERTAINMENTS: Creditors' Meeting Slated for February 6
CABLE & WIRELESS: Philip Green Sells 250,000 Ordinary Shares

CAMPBELL COMMUNICATIONS: Creditors' Meeting Slated for Feb. 9
CHAPS BARBERS: Creditors' Meeting Scheduled for February 8
CHESTNUT RESTAURANT: Creditors' Meeting Scheduled for January 31
CIRCATEX GROUP: Joint Liquidators Take Over Operations
COMPASS GROUP: Buys 1 Million Ordinary Shares for Cancellation

CORUS GROUP: CSN Says Iron Ore Legal Dispute Won't Harm Bid
CORUS GROUP: Takeover Panel Begins Auction Tomorrow
DURA AUTOMOTIVE: Brunswick Hired as Communications Consultants
DURA AUTOMOTIVE: Court Okays AlixPartners as Financial Advisors
DURA AUTOMOTIVE: Judge Carey Okays Ernst & Young as Tax Advisors

GENERAL MOTORS: Delays Filing of 2006 4th Qtr. & Annual Reports
GENERAL MOTORS: May Shift Responsibility of Retiree Benefits
HUNTSMAN CORP: UK Unit Completes US$685-Mln Equity Sale to SABIC
INDEPENDENT NEWS: Fitch Puts BB- IDR on Revised Leveraged Buyout
SOLUTIA INC: Completes Upsizing of US$1.225-Bln DIP Financing

TI AUTOMOTIVE: Moody's Downgrades Corporate Family Rating to B3
VISKASE COS: S&P Affirms Junk Rating After Equity Offering

                            *********

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


AB ELEKTROINSTALLATIONEN: Creditors' Meeting Slated for Feb. 7
--------------------------------------------------------------
Creditors owed money by LLC AB Elektroinstallationen (FN
157081b) are encouraged to attend the creditors' meeting at 9:45
a.m. on Feb. 7 for examination of claims.

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 Dec. 14, 2006 (Case No. 2 S 128/06w).  Peter Pullez serves as
the court-appointed property manager of the bankrupt estate.  
Robert Gschwandtner represents Dr. Pullez in the bankruptcy
proceedings.

The property manager can be reached at:

         Dr. Peter Pullez
         Dr. Robert Gschwandtner
         Tuchlauben 8
         1010 Vienna, Austria
         Tel: 513 29 79
         E-mail: pullezgschwandtner@aon.at  


ADI MAYERS: Claims Registration Period Ends February 5
------------------------------------------------------
Creditors owed money by LLC Adi Mayers Filmbuero (FN 194381f)
have until Feb. 5 to file written proofs of claim to court-
appointed property manager Katharina Widhalm-Budak at:

         Dr. Katharina Widhalm-Budak
         c/o Dr. Andrea Simma
         Schulerstrasse 18
         1010 Vienna,Austria
         Tel: 513 10 37
         Fax: 513 10 37-22
         E-mail: katharina.widlhalm@aon.at   

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Feb. 19 for the
examination of claims.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1705
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 18, 2006 (Bankr. Case No. 3 S 171/06a).  Andrea Simma
represents Dr. Windhalm-Budak in the bankruptcy proceedings.


AGOLIT LLC: Claims Registration Period Ends February 8
------------------------------------------------------
Creditors owed money by LLC Agolit (FN 249351v) have until Feb.8
to file written proofs of claim to court-appointed property
manager Peter Schulyok at:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Feb. 22 for the
examination of claims.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1703
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 18, 2006 (Bankr. Case No. 5 S 164/06m).  Arno Maschke
represents Dr. Schulyok in the bankruptcy proceedings.


ASDFG TELEFON: Claims Registration Period Ends February 1
---------------------------------------------------------
Creditors owed money by LLC ASDFG Telefon Dienstleistungen (FN
184826d) have until Feb. 1 to file written proofs of claim to
court-appointed estate administrator Karl Schirl at:

         Dr. Karl Schirl
         Krugerstrasse 17/3
         1010 Vienna, Austria
         Tel: 513 22 31
         E-mail: dr.karl.schirl@der-rechtsanwalt.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Feb. 15 for the
examination of claims.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1707
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 14, 2006 (Bankr. Case No. 2 S 169/06z).  


BEJIC BAU: Claims Registration Period Ends January 30
-----------------------------------------------------
Creditors owed money by LLC Bejic Bau (FN 230666s) have until
Jan. 30 to file written proofs of claim to court-appointed
estate administrator Andrea Eisner at:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Feb. 13 for the
examination of claims.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room1607
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Dec. 14, 2006 (Bankr. Case No. 28 S 72/06a).  


CHARLYS BADERPARADIES: Claims Registration Period Ends Jan. 31
--------------------------------------------------------------
Creditors owed money by LLC Charlys Baderparadies (FN 33288d)
have until Jan. 31 to file written proofs of claim to court-
appointed property manager Edmund Kitzler at:

         Dr. Edmund Kitzler
         Stadtplatz 43
         3950 Gmuend, Austria
         Tel: 02852/51935
         Fax: 02852/51937
         E-mail: dr.kitzler@wvnet.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Feb. 14 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Krems an der Donau
         Hall A
         2nd Floor
         Krems an der Donau, Austria

Headquartered in Grossgerungs, Austria, the Debtor declared
bankruptcy on Dec. 14, 2006 (Bankr. Case No. 9 S 64/06v).  


GLOBE PERSONALSERVICE: Claims Registration Period Ends Feb. 20
--------------------------------------------------------------
Creditors owed money by LLC Globe Personalservice (FN 166987w)
have until Feb. 20 to file written proofs of claim to court-
appointed estate administrator Heinz Kassmannhuber at:

         Dr. Heinz Kassmannhuber
         c/o Dr. Gerwald Schmidberger
         Stelzhamerstrasse 11
         4400 Steyr, Austria
         Tel: 07252/50 300
         E-mail: office@sks-law.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 1:45 p.m. on March 6 for the
examination of claims.

The meeting of creditors will be held at:

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

Headquartered in Ried im Traunkreis, Austria, the Debtor
declared bankruptcy on Dec. 13, 2006 (Bankr. Case No. 14 S
64/06v).  Gerwald Schmidberger represents Dr. Kasmannhuber in
the bankruptcy proceedings.


HIWEB IT: Creditors' Meeting Slated for January 31
--------------------------------------------------
Creditors owed money by LLC HIWEB IT-Solutions (FN 184205s) are
encouraged to attend the creditors' meeting at 11:00 a.m. on
Jan. 31 to consider the adoption of the rule by final decision
and distribution.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 23, 2005 (Case No. 4 S 123/05y).  Thomas Engelhart
serves as the court-appointed estate administrator of the
bankrupt estate.  Clemens Richter represents Dr. Engelhart in
the bankruptcy proceedings.

The estate administrator can be reached at:

         Dr. Thomas Engelhart
         c/o Mag. Clemens Richter
         Esteplatz 4
         1030 Vienna, Austria
         Tel: 712 33 30
         Fax: 712 33 30 30
         E-mail: Engelhart@csg.at


KESMAN & FRANCAN: Court Dismisses Estate Administrator
------------------------------------------------------
The Land Court of St. Poelten dismissed Dr. Ulla Reisch as
estate administrator of LLC Kesman & Francan (FN 194963k) on
Dec. 14, 2006, by his own request.

The court appointed Dr. Walter Anzboeck as estate administrator
replacing Dr. Reisch.  

Dr. Anzboeck can be reached at:

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

Headquartered in Tulbing, Austria, the Debtor declared
bankruptcy on Dec. 14, 2006 (Bankr. Case No. 14 S 204/06z).  


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


REDPRAIRIE CORP: Narrow Product Focus Cues S&P to Affirm Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Waukesha, Wisconsin-based RedPrairie Corp.

The outlook is stable.

Standard & Poor's also affirmed the existing ratings on the
senior secured first-lien and second-lien bank loans, including
the proposed US$25 million add-on to the existing second-lien
facility, to provide a dividend to the equity sponsors.  While
there is capacity within the rating for the dividend, it limits
the company's ability to pursue further growth from acquisitions
without impacting credit quality.

"The ratings on RedPrairie reflect its narrow product focus
within a highly competitive and consolidating marketplace,
moderately acquisitive growth strategy, and high debt leverage,"
said Standard & Poor's credit analyst Stephanie Crane
Mergenthaler.

These are only partly offset by a largely recurring revenue
base, supported by a broad customer base and relatively stable
operating margins.

RedPrairie is a global provider of supply chain execution
software and services for warehouse, labor, and transportation
management activities, coordinating interaction between
manufacturers, distributors, wholesalers and retailers.  Pro
forma for the proposed add-on to the second lien term loan,
RedPrairie will have around US$240 million of operating lease-
adjusted total debt.

The market for supply chain execution software is highly
fragmented, with no clear market leader.  In addition to
competing with other supply chain specialist vendors such as
Manhattan Associates, RedPrairie also competes with tier one
players such as Oracle and SAP, each of whom possesses greater
scale and broader product breadth, in addition to being much
better capitalized.  A relatively broad and diverse customer
base, along with retention rates in the high 90% area, support
revenue visibility over the intermediate term; however, a
continued focus on improving product functionality and servicing
capabilities will be a key to RedPrairie maintaining, or
improving, its competitive position over the longer term.


TEKNI-PLEX: Operating Improvements Cue Moody's Stable Outlook
-------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Tekni-Plex,
Inc. and changed the outlook to stable reflecting operating
improvements and favorable developments in what remains a
challenging business environment.  The company's ratings remain
constrained by substantial financial leverage, insufficient
interest coverage, and negative free cash flow.

Moody's affirmed these ratings:

   -- US$275 million 8.75% sr. secured notes due 2013, rated
      Caa1, LGD3, 45%;

   -- US$150 million 10.87% sr. secured notes due 2012, rated
      B1, LGD2, 15%;

   -- US$275 million 12-3/4% sr. subordinated notes due 2010,
      rated Caa3, LGD5, 85%;

   -- US$40 million 12-3/4% sr. subordinated notes due 2010,
      rated Caa3, LGD5, 85%;

   -- Caa1 Corporate Family Rating; and

   -- Caa1 Probability of Default Rating.

The change in outlook to stable reflects the operating
improvements over the last few quarters and the likelihood that
Tekni-Plex will be able to meet its near-term interest payments.  
Gross margin, EBITDA margin, and EBIT margin have all improved
several hundred basis points since the fiscal year ended
June 30, 2005.  

In addition, while the company's financial profile remains
strained, leverage and interest coverage metrics have begun to
improve.  Tekni-Plex's cash balances and availability under its
revolving credit facility provide comfort that the company will
meet its upcoming interest payments due in February, May, and
June of 2007.

Headquartered in Somerville, New Jersey, Tekni-Plex, Inc. is a
diversified manufacturer of packaging products and materials for
the consumer products, healthcare, and food industries.  The
company maintains its European headquarters in Belgium.


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


BENEFON OYJ: Extends Financing Deal with Octagon Solutions Ltd.
---------------------------------------------------------------
Benefon Oyj and Octagon Solutions Ltd. have agreed to extend the
Financing Agreement concluded on Sept. 28, 2006, to cover also
such additional financing as separately agreed to between the
parties.

The Board of Directors has accordingly decided to call the sixth
tranche of financing according to amendment to Financing
Agreement.  For enabling continuance of the financing plan, if
required, the company shall also call an extraordinary general
meeting as to be separately announced.

The Board decided to issue shares and convertible bond loan for
a total amount of EUR400,000 to Ashland Partners LP.  The
maximum number of new investment series shares offered for
subscription is 1,666,667 and subscription price is EUR0.21 per
share.  The principal amount of convertible bond loan, which
includes a specific right to use the loan to set off
subscription price of shares, is EUR50 and each EUR0.09 of the
loan principal entitles its holder to subscribe for one new
investment series share.  The maximum number of shares that can
be subscribed for by virtue of the loan is 555,556.

All of the 1,666,667 shares are offered for subscription by
Ashland Partners LP as well as the entire convertible bond loan
of EUR50,000.  Of the share subscription price EUR0.01 is booked
to share capital and the remainder in invested unrestricted
equity fund.  As a result of share issue company's share capital
may increase by a maximum of EUR16,666.67 and as a result of
convertible bond loan by a maximum of EUR5,555.56.

Listing of the shares subscribed for in the directed offering of
shares is estimated to take place on Feb. 8, 2007.

                         About Benefon

Headquartered in Salo, Finland, Benefon Oyj --
http://www.benefon.com/-- provides mobile telematics solutions  
saving lives, securing assets and improving field management.
The company also operates in the Czech Republic, Russia and the
U.K.

At Dec. 31, 2005, Benefon Oyj's had EUR4.97 million in total
assets and EUR7.30 million in total liabilities, resulting in a
EUR2.33 million stockholders' deficit.


BENEFON OYJ: Shareholders' Meeting Slated for February 1
--------------------------------------------------------
The Board of Directors of Benefon Oyj will convene an
Extraordinary General Meeting of the Shareholders at 11 a.m. on
Feb. 1, 2007 at:

         Benefon Oyj
         Meriniitynkatu 11
         24100 Salo
         Finland

Agenda:

   -- granting Board of Directors new authorization to issue
      shares and decide on share capital increase.

      The Board proposes that the general meeting would decide
      to grant an authorization to the Board within one year
      from the date of the meeting to decide on the increase of
      share capital by at maximum EUR 526,832.71 and on issue of
      new investment series shares, option rights or specific
      rights in one or more installments such that the maximum
      number of new investment series shares issued is
      52,683,271.  

      The authorization would entitle the Board of Directors to
      deviate from the pre-emptive right of shareholders and
      also accept set-off or other consideration in kind as a
      payment for the shares, option rights or specific rights.
      The Board of Directors would have the right to decide the
      terms of any issue by virtue of the authorization for all
      other parts.

      The Board also proposes that the current authorization
      granted by the annual general meeting of May 24, 2006, is
      at the same cancelled for the then unused part.

   -- amending articles 4 and 5 of the Articles of Association

      To enable increasing the number of outstanding shares the
      Board proposes that the articles 4 and 5 of the Articles
      of Association are amended such that the maximum number of
      all shares (article 4) in increased from current
      500,000,000 to 1,000,000,000 and maximum number of
      investment series shares (article 5) from current
      500,000,000 to 1,000,000,000.

   -- amending the terms of option rights 2005A-C issued on
      Sept. 5, 2005, Relating to Tomi Raita's appointment to the
      CEO of the company from Dec. 15, 2006, onwards the Board
      has decided to propose certain amendments to the terms of
      option rights 2005A-C issued and directed by the decision
      of extraordinary general meeting of Sept. 5, 2005.

      The Board proposes the said option terms to be amended
      that all conditions restricting the right to use the
      option rights shall be removed allowing exercise of option
      rights during the share subscription period.  At the same
      the Board proposes the share subscription period to be
      amended such that for the option rights 2005A and 2005C it
      begins on Dec. 15, 2008, and ends on Dec. 31, 2012, and
      for the option rights 2005B it begins on Aug. 15, 2007,
      and ends on Dec. 31, 2012.

      For the sake of clarity it is noted that the original
      preconditions for the use of option rights 2005B have
      already been fulfilled.  The terms of option rights shall
      remain for all other parts unchanged.

Shareholder, who has been registered in the company's
shareholder register, maintained by the Finnish Central
Securities Depository Ltd. on Jan. 23, has the right to
participate in the General Meeting.

In addition, a shareholder, whose shares have not been
transferred to the book-entry system, has the right to
participate in the General Meeting provided that the shareholder
had been registered in the company share register before
Oct. 7, 1994.  In such event the shareholder must present at the
General Meeting his/her share certificate or other documentation
indicating that title to the shares has not been transferred to
the book-entry securities account.

Shareholder that wishes to participate in the General Meeting
must notify his participation by noon at Jan. 30 to:

         Minna Suokas
         Benefon Oyj
         PL 84
         24101 Salo
         Finland
         Tel: +358-2-77400
         Fax: at +358-2-7332633
         E-mail: minna.suokas@benefon.fi

                         About Benefon

Headquartered in Salo, Finland, Benefon Oyj --
http://www.benefon.com/-- provides mobile telematics solutions  
saving lives, securing assets and improving field management.
The company also operates in the Czech Republic, Russia and the
U.K.

At Dec. 31, 2005, Benefon Oyj's had EUR4.97 million in total
assets and EUR7.30 million in total liabilities, resulting in a
EUR2.33 million stockholders' deficit.


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


ACRYTEC INDUSTRIEFUSSBODENSERVICE: Claims Filing Ends Feb. 13
-------------------------------------------------------------
Creditors of ACRYTEC Industriefussbodenservice GmbH have until
Feb. 13 to register their claims with court-appointed insolvency
manager Gerd Stapp.

Creditors and other interested parties are encouraged to attend
the meeting at 10:45 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 Aschaffenburg
         Meeting Room 5.103
         1st Upper Floor
         Schlossplatz 5
         63739 Aschaffenburg, 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 Aschaffenburg opened bankruptcy
proceedings against ACRYTEC Industriefussbodenservice GmbH on
Jan. 5.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         ACRYTEC Industriefussbodenservice GmbH
         Elisenstr. 5
         63834 Sulzbach, Germany

The insolvency manager can be contacted at:

         Gerd Stapp
         Auweg 10 a
         63920 Grossheubach, Germany
         Tel: 09371/66672
         Fax: 09371/66772


ACTUANT CORP: Acquires Injectaseal Deutschland for US$13 Million
----------------------------------------------------------------
Actuant Corp. has purchased the outstanding stock of Injectaseal
Deutschland GmbH for approximately US$13 million in cash.  
Funding for the transaction came from the company's revolving
credit facility.

Injectaseal will operate within Hydratight, which is included in
Actuant's Industrial Segment.

"Injectaseal is a logical extension of Hydratight's joint
integrity platform" Mark Goldstein, Executive Vice President of
Actuant, stated.  "The addition of Injectaseal's leak management
and testing services will enable Hydratight to broaden its
product and service offering to existing customers worldwide.  
Injectaseal also provides Hydratight with service personnel and
long standing relationships with utilities and companies in
Germany and The Netherlands that can benefit from Hydratight's
other joint integrity products and services."

                    About Actuant Corporation

Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial   
company with operations in more than 30 countries, including
Austria, Hungary, Poland, Italy, Spain, the Netherlands, France,
Russia, Turkey, Germany, and the United Kingdom.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from US$482 million to over
US$1 billion and its market capitalization from US$113
million to over US$1.5 billion.  The company employs a
workforce of approximately 6,000 worldwide.  Actuant Corporation
trades on the NYSE under the symbol ATU.

                           *     *     *

As reported in the TCR-Europe on Oct. 24, Moody's Investors
Service's affirmed its Ba2 Corporate Family Rating for Actuant
Corp. in connection with the rating agency's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector.

Additionally, Moody's held its Ba2 ratings on the company's
US$250 million Senior Unsecured Revolver Due 2009, and US$250
million Senior Term Loan Due 2009.  Moody's assigned those
debentures an LGD3 rating suggesting lenders will experience a
43% loss in the event of a default.


BENQ MOBILE: Claims Registration Ends February 23
-------------------------------------------------
Creditors of BenQ Mobile Management GmbH have until Feb. 23 to
register their claims with court-appointed insolvency manager
Martin Prager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on March 23, 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 Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich, 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 Munich opened bankruptcy proceedings
against BenQ Mobile Management GmbH on Jan. 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         BenQ Mobile Management GmbH
         Haidenauplatz 1
         81667 Munich, Germany

         Attn: Wei-Yui Liou, Manager
         Taoyuan City
         Taiwan

The insolvency manager can be contacted at:

         Dr. Martin Prager
         Barthstr. 16
         80339 Munich, Germany
         Tel: 089-8589633
         Fax: 089-85896350

                        About BenQ

Headquartered in Taiwan, Republic of China, BenQ Corporation,
Inc. -- http://www.benq.com/-- is principally engaged in   
manufacturing, developing and selling of computer peripherals
and telecommunication products.  It is also a major provider of
3G handset, 3G handset, Camera phones, and other products.

BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany.  BenQ Mobile filed for insolvency
in Germany on Sept. 29.  The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.

A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after court-appointed insolvency
administrator Martin Prager failed to meet the deadline in
finding a buyer for the company on Dec. 31, 2006.

                        *     *     *

As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp.
affirmed its twBB+/twB corporate credit ratings and twBB+
unsecured corporate bond issue rating on BenQ Corp.  The outlook
on the long-term rating is negative.  At the same time, Taiwan
Ratings removed all ratings from Credit Watch with negative
implications, where they were placed on March 14, 2006, and
withdrew all the ratings upon the company's request.


FINESSE DENTALTECHNIK: Claims Registration Ends February 15
-----------------------------------------------------------
Creditors of Finesse Dentaltechnik GmbH have until Feb. 15 to
register their claims with court-appointed insolvency manager
Hans-Peter Valentiner.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 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 Gifhorn
         Hall 118
         Palace Garden 4
         38518 Gifhorn, 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 Gifhorn opened bankruptcy proceedings
against Finesse Dentaltechnik GmbH on Jan. 4.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Finesse Dentaltechnik GmbH
         Goethestr. 8-10
         31275 Lehrte, Germany

         Attn: Hannelore Henning, Manager
         Blumenstr. 23D
         31275 Lehrte, Germany

The insolvency manager can be contacted at:

         Hans-Peter Valentiner
         Bahnhofstrasse 30 A
         29221 Celle, Germany
         Tel: 05141/28011
         Fax: 05141/24722


MASCHINE IM: Claims Registration Ends February 16
-------------------------------------------------
Creditors of maschine im raum computer aided strategy GmbH have
until Feb. 16 to register their claims with court-appointed
insolvency manager Ulrich Bastian.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on March 29, 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 Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich, 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 Munich opened bankruptcy proceedings
against maschine im raum computer aided strategy GmbH on Jan. 3.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         maschine im raum computer aided strategy GmbH
         Attn: Michael Kirchgassner, Manager
         Eduard-Schmid Str. 35
         81541 Munich, Germany

The insolvency manager can be contacted at:

         Ulrich Bastian
         Sendlinger Str. 46
         80331 Munich, Germany
         Tel: 089/2603966
         Fax: 089/2609204


MIS INDUSTRIE: Claims Registration Period Ends February 19
----------------------------------------------------------
Creditors of MIS Industrie-Service Poitz GmbH have until Feb. 19
to register their claims with court-appointed insolvency manager
Florian Stapper.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 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 Leipzig
         Hall 056
         Ground Floor
         Enforcement Court
         Bernhard Goering Road 64
         04275 Leipzig, 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 Leipzig opened bankruptcy proceedings
against MIS Industrie-Service Poitz GmbH on Dec. 28, 2006.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         MIS Industrie-Service Poitz GmbH
         Attn: Ines-Christine Poitz, Manager
         Gretschelstrasse 5
         04103 Leipzig, Germany

The insolvency manager can be contacted at:

         Dr. Florian Stapper
         Karl-Heine-Road 16
         04229 Leipzig, Germany
         Tel: 0341/984110
         Fax: 0341/9841111
         E-mail: leipzig@stapper-korn.de


MOMMEYER TOURISTIK: Claims Registration Ends February 14
--------------------------------------------------------
Creditors of Mommeyer Touristik International GmbH have until
Feb. 14 to register their claims with court-appointed insolvency
manager Johannes Franke.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on March 7, 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 Hameln
         Hall 106
         Zehnthof 1
         31785 Hameln, 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 Hameln opened bankruptcy proceedings
against Mommeyer Touristik International GmbH on Jan. 9.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Mommeyer Touristik International GmbH                  
         Karl-Serbent-Road 7
         30952 Ronnenberg, Germany

         Attn: Oliver Prehn, Manager
         Kirchkamp 8
         30952 Ronnenberg, Germany

The insolvency manager can be contacted at:

         Johannes Franke
         Ger.-Fach Nr. 97
         Verdener Place 1
         30419 Hanover, Germany
         Tel: 0511/794573
         Fax: 0511/794576
         E-mail: kanzlei@frankeundfranke.com
         Website: http://www.frankeundfranke.com/


POP-TEL GMBH: Claims Registration Ends February 8
-------------------------------------------------
Creditors of Pop-Tel GmbH i.L. have until Feb. 8 to register
their claims with court-appointed insolvency manager Rolf
Wesseloh.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Luebeck
         Hall E3
         Castle Field 7
         23568 Luebeck, 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 Luebeck opened bankruptcy proceedings
against Pop-Tel GmbH i.L. on Jan. 3.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Pop-Tel GmbH i.L.
         Aegidienstr. 25
         23552 Luebeck, Germany

The insolvency manager can be contacted at:

         Rolf Wesseloh
         Otto-Passarge-Road 4
         23564 Luebeck, Germany


PROPEX INC: Asking Waiver for Possible Covenant Non-Compliance
--------------------------------------------------------------
Propex Inc. has determined that it is likely that, for the
quarter ended Dec. 31, 2006, it was not in compliance with one
or more of the financial covenants contained in the Credit
Agreement, dated as of Jan. 31, 2006, as amended, among the
company, the lenders, and BNP Paribas, as Administrative Agent.

These covenants require the company to maintain certain minimum
coverage, earnings and leverage ratios.  Final calculations
demonstrating compliance or non-compliance with these financial
covenants are expected to be completed in February 2007.  The
company has notified the Administrative Agent under the Credit
Agreement of the probable non-compliance and has requested that
the Administrative Agent approach the lenders with a proposed
waiver of this possible event of default and a proposed
amendment to the financial covenants in the Credit Agreement for
future periods, which the Administrative Agent has agreed to do.

Although non-compliance with one or more of these covenants
gives the lenders under the Credit Agreement the right to
declare the outstanding principal and accrued interest on any
outstanding loans under the Credit Agreement to be immediately
due and payable, the Administrative Agent has agreed to approach
the lenders with a proposed waiver with regard to non-compliance
of these financial covenants.  While no assurance of a
successful resolution of these matters can be given at this
time, the company expects to resolve the matter before it
develops into an event of default under the indenture governing
the Company's 10% senior notes due 2012.

As of Dec. 31, 2006, the company had US$239.2 million of
borrowings outstanding under the Credit Agreement.

Based in Gronau, Germany and Gyor, Hungary, Propex International
-- http://www.geotextile.com/europe/-- is recognized as an  
internationally leading manufacturer of carpet backings,
geotextiles and composite sheets.  Strict manufacturing
specifications, quality control monitoring and laboratory
testing ensure our products consistently meet or exceed European
standards.  

Propex Inc. -- http://www.propexinc.com/-- manufactures primary  
and secondary carpet backing.  The company also manufactures and
markets woven and nonwoven polypropylene fabrics and fibers used
in geosynthetic and a variety of other industrial applications.  

                        *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 17,
Moody's Investors Service changed the outlook on Propex Inc.'s
long term debt ratings to negative from stable.  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; and the B2
Probability of Default Rating.
         

R. HAUBOLD: Claims Registration Ends February 14
------------------------------------------------
Creditors of R. Haubold Motorsport GmbH have until Feb. 14 to
register their claims with court-appointed insolvency manager
Volkhard Frenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 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 Dessau
         Hall 123
         Willy-Lohmann-Road 33
         Dessau, 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 Dessau opened bankruptcy proceedings
against R. Haubold Motorsport GmbH on Jan. 5.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         R. Haubold Motorsport GmbH
         Feldstrasse 1 A
         06888 Pratau, Germany

         Attn: Matthias Baron, Manager
         Fliethstrasse 2
         06888 Seegrehna, Germany

The insolvency manager can be contacted at:

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


RAAB'NSTEIN GMBH: Claims Registration Ends February 12
------------------------------------------------------
Creditors of Raab'nstein GmbH have until Feb. 12 to register
their claims with court-appointed insolvency manager Wolfgang
Petereit.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on March 12, 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 Mainz
         Hall 75
         Building B
         Ernst Ludwig Road 7
         55116 Mainz, 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 Mainz opened bankruptcy proceedings
against Raab'nstein GmbH on Jan. 8.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Raab'nstein GmbH
         Ludwigstr. 3
         67585 Dorn-Duerkheim, Germany

         Attn: Walter Raab, Manager
         Holunderweg 17
         54296 Trier, Germany

The insolvency manager can be contacted at:

         Dr. Wolfgang Petereit
         Kaiserstrasse 24a
         D 55116 Mainz, Germany
         Tel: 06131/626080
         Fax: 06131/6260813


RENASELECT GMBH: Claims Registration Ends February 14
-----------------------------------------------------
Creditors of RenaSelect GmbH & Co. KG have until Feb. 14 to
register their claims with court-appointed insolvency manager
Dirk Wittkowski.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on March 29, 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 RenaSelect GmbH & Co. KG on Jan. 3.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         RenaSelect GmbH & Co. KG
         Attn: Dr. Dirk Theis, Manager
         Kunstseidenstrasse 4
         01796 Pirna, Germany

The insolvency manager can be contacted at:

         Dr. Dirk Wittkowski
         Brauhaus 5
         01099 Dresden, Germany
         Website: http://www.henningsmeier.de/


RSB RHEIN: Claims Registration Ends February 19
-----------------------------------------------
Creditors of RSB Rhein-Sieg-Bau GmbH have until Feb. 19 to
register their claims with court-appointed insolvency manager
Andreas Schulte-Beckhausen.

Creditors and other interested parties are encouraged to attend
the meeting at 8:50 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 Bonn
         Hall S2.18
         2nd Floor
         William Route 23
         53111 Bonn, 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 Bonn opened bankruptcy proceedings against
RSB Rhein-Sieg-Bau GmbH on Jan. 4.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         RSB Rhein-Sieg-Bau GmbH
         Siegdamm 38
         53721 Siegburg, Germany

         Attn: Ewald Puscher, Manager
         Waldstrasse 62
         53721 Siegburg, Germany

The insolvency manager can be contacted at:

         Dr. Andreas Schulte-Beckhausen
         Oxfordstr. 2
         53111 Bonn, Germany
         Tel: 0228/98 52 10
         Fax: 0228/98 52 122


SONNENSCHEIN-MARKT: Claims Registration Ends February 8
-------------------------------------------------------
Creditors of Sonnenschein-Markt Obst- und Gemuesegrosshandel
GmbH have until Feb. 8 to register their claims with court-
appointed insolvency manager Florian Stapper.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on March 8, 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 Leipzig
         Hall 145
         1st Floor
         Enforcement Court
         Bernhard Goering Road 64
         04275 Leipzig, 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 Leipzig opened bankruptcy proceedings
against Sonnenschein-Markt Obst- und Gemuesegrosshandel GmbH on
Jan. 9.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Sonnenschein-Markt Obst- und Gemuesegrosshandel GmbH
         Attn: Brigitte Arlt, Manager
         Stauchaer Road 1
         04758 Naundorf OT Hof, Germany

The insolvency manager can be contacted at:

         Dr. Florian Stapper
         Karl-Heine-Road 16
         04229 Leipzig, Germany
         Tel: 0341/984110
         Fax: 0341/9841111
         E-mail: leipzig@stapper-korn.de


TECOGRAPHICS COMPUTER: Claims Registration Ends February 16
-----------------------------------------------------------
Creditors of TECOGRAPHICS Computer- Telekommunikation Vertriebs
GmbH have until Feb. 16 to register their claims with court-
appointed insolvency manager Markus Lehmkuehler.

Creditors and other interested parties are encouraged to attend
the meeting at 11:10 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 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 TECOGRAPHICS Computer- Telekommunikation Vertriebs GmbH
on Dec. 27, 2006.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be contacted at:

         TECOGRAPHICS Computer- Telekommunikation Vertriebs GmbH
         Attn: Ingrid Hoffstadt, Manager
         Hauptstr. 40
         51491 Overath, Germany

The insolvency manager can be contacted at:

         Markus Lehmkuehler
         Wilhelmstr. 40
         53111 Bonn, Germany
         Tel: 0228/629878-0
         Fax: +49228629878 19


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


PROPEX INC: Asking Waiver for Possible Covenant Non-Compliance
--------------------------------------------------------------
Propex Inc. has determined that it is likely that, for the
quarter ended Dec. 31, 2006, it was not in compliance with one
or more of the financial covenants contained in the Credit
Agreement, dated as of Jan. 31, 2006, as amended, among the
company, the lenders, and BNP Paribas, as Administrative Agent.

These covenants require the company to maintain certain minimum
coverage, earnings and leverage ratios.  Final calculations
demonstrating compliance or non-compliance with these financial
covenants are expected to be completed in February 2007.  The
company has notified the Administrative Agent under the Credit
Agreement of the probable non-compliance and has requested that
the Administrative Agent approach the lenders with a proposed
waiver of this possible event of default and a proposed
amendment to the financial covenants in the Credit Agreement for
future periods, which the Administrative Agent has agreed to do.

Although non-compliance with one or more of these covenants
gives the lenders under the Credit Agreement the right to
declare the outstanding principal and accrued interest on any
outstanding loans under the Credit Agreement to be immediately
due and payable, the Administrative Agent has agreed to approach
the lenders with a proposed waiver with regard to non-compliance
of these financial covenants.  While no assurance of a
successful resolution of these matters can be given at this
time, the company expects to resolve the matter before it
develops into an event of default under the indenture governing
the Company's 10% senior notes due 2012.

As of Dec. 31, 2006, the company had US$239.2 million of
borrowings outstanding under the Credit Agreement.

Based in Gronau, Germany and Gyor, Hungary, Propex International
-- http://www.geotextile.com/europe/-- is recognized as an  
internationally leading manufacturer of carpet backings,
geotextiles and composite sheets.  Strict manufacturing
specifications, quality control monitoring and laboratory
testing ensure our products consistently meet or exceed European
standards.  

Propex Inc. -- http://www.propexinc.com/-- manufactures primary  
and secondary carpet backing.  The company also manufactures and
markets woven and nonwoven polypropylene fabrics and fibers used
in geosynthetic and a variety of other industrial applications.  

                        *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 17,
Moody's Investors Service changed the outlook on Propex Inc.'s
long term debt ratings to negative from stable.  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; and the B2
Probability of Default Rating.


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


ALITALIA SPA: Offers for Italy's 30.1% Stake Due Today
------------------------------------------------------
The deadline for submission of non-binding offers for the
Italian government's 30.1% stake in national carrier Alitalia
S.p.A. ends at 6:00 p.m. today, Jan. 29.

In a TCR-Europe report on Jan. 3, the government launched the
bidding process for its stake in Alitalia 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, must 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.

According to previous reports, potential bidders include:

   -- Air France-KLM,
   -- Air One,
   -- Management & Capitali,
   -- Texas Pacific Group, and
   -- a consortium led by Paolo Alarzaki

                         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.


FIAT SPA: Earns EUR1.07 Bln in 2006; To Pay EUR276-Mln Dividend
---------------------------------------------------------------
Fiat Group released its unaudited financial results for the
year- and quarter-ended Dec. 31, 2006.

Fiat Group posted EUR1.07 billion in net profit against EUR51.83
billion in revenues for the full year 2006, compared with EUR376
million in net losses against EUR46.54 billion in revenues for
2005.

Fiat posted EUR470 million in profit against EUR13.86 billion in
revenues for the fourth quarter of 2006, compared with EUR84
million in net profit against EUR13.14 billion in revenues for
the same period in 2005.

                            Dividends

Fiat Board of Directors intends to propose to the Annual
Shareholders' Meeting the payment of EUR276 million dividend.
The amount of such distribution is in line with the announced
dividend policy whereby in 2007-2010 the Group intends to
distribute to its shareholders around 25% of the Group
consolidated net income.  

The proposed dividend distribution will be:

   -- EUR0.155 per ordinary share, representing a total
      distribution of around EUR169 million;    

   -- EUR0.31 per preferred share, representing a total
      distribution of around EUR32 million;    

   -- EUR0.93 per saving share, representing a total
      distribution of around EUR74 million, which includes the
      dividend pertaining to 2006, equal to EUR0.31; and

   -- cumulative dividends for the two preceding years, 2005 and
      2004, as required by the Company's By-laws.

This proposal is subject to the approval of the Fiat S.p.A. 2006
statutory unconsolidated financial statements, which will be
finalized by the Board on Feb. 20, 2007.

                        Outlook for 2007

The Group's Automobile Sector plans to leverage the introduction
of its new models -- mainly Fiat Bravo, Fiat Linea and Fiat 500
-- to continue to boost volume and improve mix in the European
markets.

Meanwhile, Brazilian operations are expected to deliver a
trading performance in line with 2006.  Aggressive cost cutting
will continue in all non-essential areas of the company.  

While streamlining governance costs the company will continue to
invest in marketing and advertising, in order to support our
growth ambitions.  

CNH expects to improve sales volumes thanks to new products,
improved pricing and market share gains.  Higher volumes,
manufacturing efficiencies and other cost reductions will be
partially offset by continuing higher R&D investments.  

Iveco aims at increasing both profitability and market share by
a substantial commercial repositioning, with price improvements
coming from the introduction of new Euro 4 and Euro 5 compliant
vehicles.  For heavy trucks, Iveco will be leveraging the
performances of the new Stralis, especially in terms of fuel
efficiency and the improvement in the resale value of our
vehicles.  

To reach the targets, the company will continue to push group-
wide purchasing synergies, increasing and accelerating
development of best-cost-country spending, strengthening
strategic partnerships with suppliers through long-term
contracts, and focusing on the implementation of world-class
manufacturing initiative.  

As a result, the Group confirms its targets for 2007:

   -- trading profit between EUR2.5 and EUR2.7 billion; and
   -- net income between EUR1.6 and EUR1.8 billion.

By sector, full-year 2007 trading margin targets (trading profit
as a percentage of revenues) will range:    

   -- Autos, 2.6% to 3.4%;    
   -- CNH, 8.9% to 9.7%;    
   -- Iveco, 7.1% to 7.9%.

While working on the achievement of these objectives, the Fiat
Group will continue to implement its strategy of targeted
alliances, in order to reduce capital commitments, and reduce
the related risks.  

                     First Full Year Profit

Sergio Marchionne, Fiat's chief executive, noted that the
company's core auto operations remained profitable in the fourth
quarter even without a contribution from Brazil, the carmaker's
largest non-European market, the Associated Press reports.

"We are now generating earnings outside of Brazil, which is an
improvement," Mr. Marchionne said in a conference call.

"2006 was an important year for the future of the Fiat Group,
marking the completion of an intense restructuring phase on the
basis of which the Group is now poised to drive for growth and
margin expansion over the period 2007-2010," Fiat said adding
that its turnaround was achieved through "a clean break with the
past."

The company posted its first quarterly profit in 2005 under Mr.
Marchionne, following 17 consecutive quarters of losses.

"The improvements have continued in 2006, with Fiat Auto posting
the first full year of profits since 2000," Fiat added.  "The
restructuring efforts were accompanied by a major renewal of its
product line.  This resulted in the introduction of 22 new
models and facelifts in two years and enabled Fiat Auto to
achieve significant market share improvements both on the
domestic market and on the main European markets."

"With year 2007 starts the launch of an ambitious growth and
profitability plan, which by its completion in 2010 will have
seen the rebuilding of Fiat into a significant international
industrial enterprise," the company concluded.  

"I don't think the historic numbers are what matters.  There was
nothing of controversy in the numbers," Max Warburton, an
analyst at UBS, said.  "What matters are the promises for 2007
and 2008.  The key thing is, can Fiat Auto continue to progress
in Europe and in Brazil in 2007?"

                        About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,  
commercial vehicles, and agricultural and construction
equipment.  It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems.  Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.

                          *     *     *

As reported in the TCR-Europe on Nov. 6, 2006, Moody's Investors
Service changed the outlook on Fiat S.p.A.'s Ba3 Corporate
Family Rating to positive from stable and affirmed the long-term
senior unsecured ratings as well as the short-term non-Prime
rating.

Issuers: Fiat Finance & Trade Ltd.
         Fiat Finance Canada Ltd.
         Fiat Finance Luxembourg S.A.
         Fiat Finance North America Inc.
         Fiat France S.A.
         Fiat S.p.A.

    * Outlook, Changed To Positive From Stable

On Oct. 4, 2006, Fitch Ratings affirmed Fiat S.p.A.'s Issuer
Default and senior unsecured ratings at BB- and Short-term
rating at B.  This follows Fiat's exercise of its call option to
buy back 29% of Ferrari's capital from a consortium led by
Mediobanca.  Fitch said the Outlook is Positive.

On Aug. 8, 2006, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Fiat S.p.A. to 'BB' from
'BB-'.  At the same time, Standard & Poor's affirmed its 'B'
short-term rating on Fiat.  S&P said the outlook is stable.


FIAT SPA: Auto Unit Renames to Fiat Group Automobiles S.p.A.
------------------------------------------------------------
Fiat Auto S.p.A. will change name to "Fiat Group Automobiles
S.p.A." on Feb. 1.

Four new companies will be formed at the same time, 100% owned
by Fiat Group Automobiles S.p.A.:

   -- Fiat Automobiles S.p.A.,
   -- Alfa Romeo Automobiles S.p.A.,
   -- Lancia Automobiles S.p.A., and
   -- Fiat Light Commercial Vehicles S.p.A.."  

The current heads of the four brands will be designated as chief
executive officers of the respective companies.  The operations
and the personnel will remain at Fiat Group Automobiles S.p.A.

These changes are consistent with the new corporate culture at
the Fiat Group.  In particular, they reflect two strategic
decisions as to how to approach the business.  On the one hand,
the Group will exist as a unified whole, and on the other hand,
each company will be characterized by the specific nature of the
respective operating sectors and individual brands.  

Over the next few months, all Group activities will highlight
this aspect by pairing the "Fiat Group" mark with the sector or
brand trademark.

The birth of Fiat Group Automobiles S.p.A. represents the next,
natural step since the Group mark was changed at the end of
2005.  Inclusion of the word "Group" in the name reflects its
prominent role as a constituent part of the Fiat Group,
considering the contribution that Fiat Auto makes to Group
results and the realization of major synergies with other Group
sectors.  

The new name also identifies a key area of activity that has
recently undergone profound transformation, featuring a newly
streamlined structure that is more solid and compact than
before.  

At the same time, it also indicates the synergies linking the
automotive business, which has already generated major benefits
in terms of operating efficiency, resource management, and cost
cuts.        

Finally, the name "Fiat Group Automobiles S.p.A." highlights the
international vocation of this large industrial organization.   

The creation of four companies reflects the attention devoted by
the Group to positioning the brands on the market.   

The Fiat, Alfa Romeo, Lancia, and Fiat Light Commercial Vehicles
brands each have a specific identity with defined, recognized
characteristics, and apply distinct commercial and market
policies.  Formation of these four new companies must be
interpreted in view of the growing distinctiveness of the
brands, enhanced value, and reinforcement of their competitive
capacities.

The new configuration will not alter relationships with
employees, dealers, and suppliers in any way.  On the contrary,
improved brand name recognition will promote better relations
with the sales network, customers, and partners.  

To sum up, the objective of the changes is to reinforce the
individual brands within the scope of a single and stronger
automobiles sector.

                        About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,  
commercial vehicles, and agricultural and construction
equipment.  It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems.  Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.

                          *     *     *

As reported in the TCR-Europe on Nov. 6, 2006, Moody's Investors
Service changed the outlook on Fiat S.p.A.'s Ba3 Corporate
Family Rating to positive from stable and affirmed the long-term
senior unsecured ratings as well as the short-term non-Prime
rating.

Issuers: Fiat Finance & Trade Ltd.
         Fiat Finance Canada Ltd.
         Fiat Finance Luxembourg S.A.
         Fiat Finance North America Inc.
         Fiat France S.A.
         Fiat S.p.A.

    * Outlook, Changed To Positive From Stable

On Oct. 4, 2006, Fitch Ratings affirmed Fiat S.p.A.'s Issuer
Default and senior unsecured ratings at BB- and Short-term
rating at B.  This follows Fiat's exercise of its call option to
buy back 29% of Ferrari's capital from a consortium led by
Mediobanca.  Fitch said the Outlook is Positive.

On Aug. 8, 2006, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Fiat S.p.A. to 'BB' from
'BB-'.  At the same time, Standard & Poor's affirmed its 'B'
short-term rating on Fiat.  S&P said the outlook is stable.


PARMALAT SPA: Court Extends Temporary Protection to February 27
---------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York adjourned the hearing to
consider entry of a permanent injunction in the Foreign Debtors'
Section 304 cases until Feb. 27, 2007.

In the interim, the preliminary injunction is extended until
March 2, 2007.  All persons subject to the jurisdiction of the
U.S. court are enjoined and restrained from engaging in any
action against the Foreign Debtors without obtaining permission
from the Bankruptcy Court.

The Civil and Criminal Court of Parma, in Italy, will continue
to have exclusive jurisdiction to hear and determine any suit,
action, claim or proceeding, other than an enforcement action
initiated by the U.S. Securities and Exchange Commission, and to
settle all disputes, which may arise out of

   -- the construction or interpretations of the Foreign
      Debtors' restructuring plan approved by the Italian Court;
      or

   -- any action taken or omitted to be taken by any person or
      entity in connection with the administration of the
      Italian Plan.

In a TCR-Europe report on Sept. 8, 2006, five creditors and
parties-in-interest filed with the U.S. Court their objections
to Dr. Enrico Bondi's request for a permanent injunction order
in Parmalat's ancillary proceedings.

Dr. Bondi is the authorized foreign representative of Parmalat
Finanziaria S.p.A. and certain of its affiliates.

In his request, Dr. Bondi filed with the Court a proposed
permanent injunction order pursuant to Section 304 of the
Bankruptcy Code.  Dr. Bondi also submitted with the Court a
memorandum of law supporting his permanent injunction request.

A full-text copy of the proposed Permanent Injunction Order is
available for free at http://researcharchives.com/t/s?e22  

Creditors BankBoston, N.A., FleetBoston Financial, Bank of
America Corp., Bank of America National Trust & Savings
Association, Banc of America Securities, LLC, and Bank of
America, N.A., told the Court that the proposed Permanent
Injunction Order cannot be approved because it would constitute
an inappropriate anti-foreign suit injunction.

BofA, et al. also argued that the Foreign Debtors' request for
extra-territorial application of the Permanent Injunction would
unduly limit the ability of domestic and foreign creditors to
pursue all appropriate remedies outside of the United States in
accordance with applicable foreign law.

The Pension Benefit Guaranty Corp., which provides termination
insurance for all of the Debtors' Pension Plans, said the
proposed Permanent Injunction Order contains illegal discharges,
releases, exculpations and injunctions.

The PBGC said it was willing to withdraw its objections if the
proposed Permanent Injunction Order clarifies that:

   -- no provisions of or proceeding within the Foreign Debtors'
      reorganization cases in Italy and the Section 304 cases
      before the U.S. Bankruptcy Court will in any way be
      construed as discharging, releasing, limiting or relieving
      the Foreign Debtors, or any other party from any liability
      with respect to the Pension Plans or any other defined
      benefit pension plan; and

   -- the PBGC and the Pension Plans will not be enjoined or
      precluded from enforcing liability resulting from any of
      the provisions of the Foreign Debtors' restructuring plan
      approved by the Italian court, or the entry of a Permanent
      Injunction Order.

Grant Thornton International does not want the Permanent
Injunction to apply to it in any manner in the conduct of:

   -- a securities fraud class action pending before the U.S.
      District Court for the Southern District of New York;

   -- three actions initiated by Dr. Bondi against banks and
      accounting firms; and

   -- actions commenced by the trustees of the U.S. Debtors and
      two liquidators of Parmalat SpA's Cayman Islands
      affiliates.

Grant Thornton is a defendant in those actions.

On behalf of Israel Discount Bank of New York, Bruce S. Nathan,
Esq., at Lowenstein Sandler PC, in New York, argued that in
seeking entry of a permanent injunction order, the Foreign
Debtors must demonstrate that claimholders in the Italian
proceedings are receiving "just treatment" and not experiencing
"prejudice and inconvenience" in the claims administration
process.  The Foreign Debtors cannot meet this burden as to IDB,
Mr. Nathan says.

IDB's claims arise from promissory notes totaling US$6,000,000
in principal plus interest, guaranteed by Parmalat S.p.A.

Hermes Focus Asset Management Europe, Ltd.; Cattolica
Partecipazioni, S.p.A.; Capital & Finance Asset Management S.A.;
Societe Monderne des Terrassements Parisiens; and Solarat -- the
lead plaintiffs in a securities class action -- want the
proposed Permanent Injunction Order modified to clarify that it
does not impact their rights to pursue claims against
Reorganized Parmalat.

                       About Parmalat

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

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

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

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

Parmalat has three financing arms: Parmalat Capital Finance
Ltd., Dairy Holdings, Ltd., and Food Holdings, Ltd.  Dairy
Holdings and Food Holdings are Cayman Island special-purpose
vehicles established by Parmalat S.p.A.

The Finance Companies are under separate winding up petitions
before the Grand Court of the Cayman Islands.  Gordon I. MacRae
and James Cleaver of Kroll (Cayman) Ltd. serve as Joint
Provisional Liquidators in the cases.

On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey,
Gordon, Herlands Randolph, represent the Finance Companies in
the Sec. 304 case.

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

(Parmalat Bankruptcy News, Issue No. 84; Bankruptcy Creditors'
Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/)


SBARRO INC: S&P Affirms B- Rating on US$33-Million Loan Add-On
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on Sbarro Inc.'s bank facility, following the
announcement that the company will increase the size of the loan
to US$208 million.  

Pro forma for the add-on, the facility will consist of a US$25
million revolving facility due 2013 and a US$183 million first-
lien term loan due 2014.  Both facilities are rated 'B', one
notch above the corporate credit rating. This and the recovery
rating of '1', indicate our expectation of full recovery of
principal in the event of payment default.

The proceeds from the US$33 million add-on to the term loan will
be used to redeem all of the preferred equity retained by the
Sbarro family, in connection to the acquisition of the company
by MidOcean Partners.  

Ratings List:

* Sbarro Inc.

      -- Corporate credit rating affirmed B-
      -- US$25 million revolver due 2013 affirmed at B
      -- US$183 million term loan due 2014 affirmed B


SBARRO INC: S&P Puts Negative Outlook on Increased Leverage
-----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Melville, NY-based Sbarro Inc. to negative from stable.  At the
same time, Standard & Poor's affirmed the company's 'B-'
corporate credit rating and other ratings.

"The outlook revision is based on Sbarro's increased leverage
due to the US$33 million add-on to the term loan, and
management's more aggressive financial policy," said Standard &
Poor's credit analyst Diane Shand.  MidOcean Partners will use
the proceeds from the add-on in connection to the acquisition of
the company.

The ratings on Sbarro reflect the risks associated with its
participation in the highly competitive restaurant industry, the
company's vulnerability to mall traffic and seasonality, its
highly leveraged capital structure, and its thin cash flow
protection measures.

Operating performance has improved over the past three years.
Same-store sales rose 4.8% in the first three quarters of 2006.
The operating margin expanded to 35.7% for the trailing 12
months ended September 2006, from 32.6% for the same time period
year ago.  "We expect this operating momentum to continue as the
company should continue to benefit from the reengineering of its
operations," added Ms. Shand.


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


ASTANA FINANCE: Likely Support Cues Fitch to Affirm IDR at BB+
--------------------------------------------------------------
Fitch Ratings affirmed Kazakhstan-based Astana Finance's ratings
at foreign and local currency Issuer Default 'BB+', Short-term
foreign currency 'B', senior unsecured 'BB+', National Long-term
'A+', Individual 'D/E' and Support '3'.  The Outlooks on the
Issuer Default and National Long-term ratings are Stable.

AF's Issuer Default, National and Support ratings reflect
Fitch's opinion that there is a moderate likelihood that support
would be made available to it from the municipality of Astana
(not rated) or potentially the Kazakhstani sovereign, in case of
need.

The municipality of Astana has been supportive of AF to date in
terms of equity injections, subsidized funding, and first
refusal on investments, among others. A letter of comfort from
the municipality of Astana has been included in each eurobond
prospectus of AF.  However, the municipality of Astana itself
has relatively limited funds specifically set aside that might
be used to support AF.  Consequently, sovereign support could be
necessary, should more significant support be needed by AF than
can be diverted at short notice from other municipal resources.  
Given, among other factors, the moral obligation the comfort
letter creates on the country's flagship capital city to support
AF, Fitch views there also to be a moderate probability that
support might flow through from the Kazakhstani sovereign.

Any movement in AF's Issuer Default rating would likely reflect
a change in Fitch's opinion regarding the propensity of the
municipality of Astana and/or the Kazakhstani sovereign to
provide timely support to AF. AF took a substantial position in
a Russian fund in 2006 and has periodically opened large FX
positions.  The propensity for either authority to provide
support may be weakened should AF incur losses in such 'non-
core' activities.  AF has assured Fitch that it does not intend
to take material speculative positions again.  However, should
'non-core' positions arise more frequently or there be material
speculative trading in local securities over and above moderate
positions required to support brokerage activities, the risk of
losses on 'non-core' activities may increase.  In turn, Fitch's
views on the likelihood of support being forthcoming may change,
which could negatively affect AF's ratings.

AF's Individual rating of 'D/E' reflects its small size,
potentially volatile profitability, substantial concentrations
and high leverage.  Its loan book is very concentrated, both by
name and on the agriculture and construction/real estate
sectors.  While asset quality has been adequate to date, the
loan book has been growing fast, so impaired loans could rise as
loans season.

AF was created in 1997 by the municipality of Astana to
facilitate development finance for Astana, the rapidly growing
new capital of Kazakhstan and for the surrounding Akmola region.
It has since diversified geographically and into certain aspects
of investment banking.  AF is 25.5% owned by the municipality of
Astana.


JAROV LLP: Creditors Must File Claims by March 3
------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Jarov insolvent on Dec. 11, 2006.

Creditors have until March 3 to submit written proofs of claim
to:

         LLP Jarov
         Maiskaya Str. 7
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan


KAMKOR-I LLP: Proof of Claim Deadline Slated for March 3
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Kamkor-I insolvent on Dec. 28, 2006.

Creditors have until March 3 to submit written proofs of claim
to:

         LLP Kamkor-I
         Ushanov Str. 78-27
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel/Fax: 8 (3232) 26-24-41


KAZINTERTECH LLP: Claims Filing Period Ends March 3
---------------------------------------------------
LLP Kazintertech has declared insolvency.  Creditors have until
March 3 to submit written proofs of claim to:

         LLP Kazintertech
         Dostyk Ave. 114-2
         Almaty, Kazakhstan


METSUR LLP: Claims Registration Ends March 3
--------------------------------------------
LLP Company Metsur has declared insolvency.  Creditors have
until March 3 to submit written proofs of claim to:

         LLP Metsur
         Micro District Ainabulak-4, 172-91
         Almaty, Kazakhstan
         Tel: 8 (3272) 94-60-11
              8 (7017) 12-51-13


PRODIZ LLP: Creditors Must File Claims by March 3
-------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Prodiz insolvent on
Dec. 11, 2006.

Creditors have until March 3 to submit written proofs of claim
to:

         LLP Prodiz
         Maiskaya Str. 7
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan


PROIZVODSTVENNO COMMERCHESKAYA: Creditors' Claims Due March 3
-------------------------------------------------------------
LLP Manufacturing Commercial Firm on Production of School
Equipment Proizvodstvenno Commercheskaya Firma Po Vypusky
Shkolnogo Oborudovaniya has declared insolvency.  

Creditors have until March 3 to submit written proofs of claim
to:

         LLP Proizvodstvenno Commercheskaya Firma Po
         Vypusky Shkolnogo Oborudovaniya
         Dombrovsky Str. 3
         Almaty, Kazakhstan


TECHENERCOM LLP: Proof of Claim Deadline Slated for March 3
-----------------------------------------------------------
LLP Techenercom has declared insolvency.  Creditors have until
March 3 to submit written proofs of claim to:

         LLP Techenercom
         Mailin Str. 85
         Almaty, Kazakhstan


TSESNA BANK: Moody's Assigns B1 Rating on Senior Unsecured Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B1 long-term foreign
currency rating to the senior unsecured notes expected to be
issued by Tsesna International B.V. (Netherlands), a direct
wholly owned subsidiary of Kazakhstan's Tsesna Bank (rated
B1/NP/E+ with stable outlook).  The outlook for the rating is
stable.  

The issue will be unconditionally and irrevocably guaranteed by
TSB, which is a first-time issuer in the international bond
markets.  The notes will be denominated in US dollars, with the
amount, tenor and price of the issue yet to be determined.

TSB's obligations under the guarantee will rank at least pari
passu in right of payment with all its other senior unsecured
obligations.  According to the terms and conditions of the
notes, TSB must comply with a number of covenants such as
negative pledge, restrictions on distribution of dividends and
maintenance of a total capital adequacy ratio of at least 12%.
With regard to the latter, Moody's notes that the bank has
continuously exceeded this level in recent years, but that it
may be more difficult to achieve this under the current
conditions of rapid asset growth, which accelerated to 104% in
the first nine months of 2006, compared with 66% for the full
year of 2005.

In addition, an embedded rating trigger grants the noteholders a
put option in the event that a merger or asset sale by TSB
results in a rating downgrade.  Moody's notes that, while the
likelihood of any of the above-mentioned covenants being
breached is relatively low at the present time, any such
occurrence could potentially have adverse liquidity implications
for the bank and might exert additional downward pressure on its
ratings.

Headquartered in Astana, Kazakhstan, TSB reported under IFRS
unaudited total consolidated assets of KZT68.781 billion
(US$541.1 million) and total shareholders' equity of KZT5.165
billion (US$40.6 million) as at Sept. 30, 2006.  The bank ranks
as the 12th-largest in Kazakhstan in terms of total assets.


TVK LLP: Claims Filing Period Ends March 3
------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP TVK insolvent on Dec. 6, 2006.

Creditors have until March 3 to submit written proofs of claim
to:

         LLP TVK
         Gorky Str. 74-410
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan


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


ALLOYS AND MATERIALS: Claims Registration Ends March 9
------------------------------------------------------
LLC Alloys And Materials Trading Company has declared
insolvency.  Creditors have until March 9 to submit written
proofs of claim to:

         LLC Alloys And Materials Trading Company
         Manas Ave. 303
         Free and Economic Zone Bishkek
         Akchyi
         Bishkek, Kyrgyzstan


BAAK-S LLP: Proof of Claim Deadline Slated for March 9
------------------------------------------------------
Joint Kyrgyz-Kazakh LLP Baak-S has declared insolvency.  
Creditors have until March 9 to submit written proofs of claim
to:

         LLP Baak-S
         Internatsionalnaya Str. 35
         Sukuluksky District
         Chui Region
         Kyrgyzstan


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


NORTEL NETWORKS: Declares Preferred Share Dividends
---------------------------------------------------
The Board of Directors of Nortel Networks Ltd. declared a
dividend in respect of each of the months of January and
February 2007 on each of the outstanding Cumulative Redeemable
Class A Preferred Shares Series 5 and the outstanding Non-
cumulative Redeemable Class A Preferred Shares Series 7.

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.  The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime.  The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.

The dividend on each series in respect of the month of January
is payable on Feb. 12, 2007 to shareholders of record of such
series at the close of business on Jan. 31, 2007.  The dividend
on each series in respect of the month of February is payable on
March 12, 2007 to shareholders of record of such series at the
close of business on Feb. 28, 2007.

                     About Nortel Networks

Based in Ontario, Canada, Nortel Networks Corp. (NYSE/TSX: NT) -
- http://www.nortel.com/-- is a recognized leader in delivering  
communications capabilities that enhance the human experience,
ignite and power global commerce, and secure and protect the
world's most critical information.  Serving both service
provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice
over IP, multimedia services and applications, and wireless
broadband designed to help people solve the world's greatest
challenges.  Nortel does business in more than 150 countries,
including Mexico in Latin America.

                        *    *    *

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

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corp., Nortel Networks Corp., and Nortel
Networks Ltd. at B (low) along with the preferred share ratings
of Nortel Networks Ltd. at Pfd-5 (low).  DBRS says all trends
are stable.

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


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


ECHOSTAR COMMUNICATIONS: Solid Liquidity Prompts Fitch's BB- IDR
----------------------------------------------------------------
Fitch affirms the 'BB-' Issuer Default Rating assigned to
Echostar Communications Corp. and its wholly owned subsidiary
Echostar DBS Corp.  

Fitch has also affirmed the 'BB-' rating assigned to the senior
unsecured notes issued by EDBS Corp.  Finally, Fitch has
affirmed the 'B' rating assigned to the convertible subordinated
notes issued by Echostar.  Around US$7 billion of debt as of the
end of the third quarter of 2006 is affected by Fitch's action.  
The Rating Outlook is Stable.

Fitch's affirmation reflects the operating leverage derived from
Echostar's size and scale as the fourth largest multi-channel
video-programming distributor in the United States; the
company's solid liquidity position, and expectation for
continued free cash flow generation.

Fitch's ratings also incorporate Echostar's weak competitive
position and limited ability to respond to the changing and more
competitive operating environment.  From Fitch's perspective
competitive pressures within the multi-channel video
distribution market have increased due to the wide spread
availability of the triple play service offering and the
introduction of video services by the regional bell operating
companies, namely Verizon and AT&T.  Fitch believes that demand
for Echostar's video service will remain strong within certain
segments of the multi channel video distribution market.
However, the evolving competitive landscape will materially
increase the business risks related to Echostar's credit
profile.  Outside Echostar's core market segments the company
will find it increasingly difficult to protect and grow its
market share in the face of the bundled service offerings by the
cable MSOs and telephone companies in residential markets.

A key to Echostar's continued EBITDA growth and free cash flow
generation will be how the company balances subscriber growth,
ARPU, subscriber churn and subscriber acquisition costs. Fitch
believes that a more competitive multi-channel video
distribution market can lead to higher subscriber churn rates
subscriber acquisition costs, and pressure on the company's
ARPU. These factors can limit EBITDA growth and constrain
operating margins. During the third quarter of 2006 Echostar's
subscriber acquisition cost was US$688 per gross addition. Fitch
believes that competitive pressures can push Echostar's SAC in
excess of US$700 during 2007.

Echostar's competitive position is hurt by its lack of a
broadband solution. Currently, the company's broadband strategy
is centered on its ability to bundle DSL service through AT&T
and other incumbent local exchange providers.  Fitch believes
that for competitive purposes an investment in a broadband
network is appropriate.  However, the capital costs associated
with a high speed data network will be significant and would
certainly pressure Echostar's credit profile if the company
elects to deploy the network without using partners to mitigate
financial and technical risks.  Over the near term Fitch
believes Echostar will compete for video subscribers by
aggressively deploying high definition programming.  Echostar
does have a leading position among multi-channel video
distributors with 30 national HD channels. However Echostar is
lagging behind most cable MSOs by only providing local channel
HD programming in only 26 cities.  Moreover, Echostar's HD
lineup does not include any of the regional sports networks.

The company's leverage metric, calculated on a latest 12 month
basis, as of Sept. 30, 2006, was 3.04 times on a consolidated
basis and 2.4x at EDBS.  Absent a material investment in a
broadband network, Fitch expects that Echostar's credit
protection metrics will continue to improve during 2007 with
leverage improving a half turn from the Sept. 30, 2006, level
and free cash flow as a percentage of total debt in excess of
8%. Since the end of the third quarter the company has made
substantial progress in addressing its 2008 scheduled
maturities, which as of the end of the third quarter totaled
US$2.5 billion.  During October, the company issued US$500
million of senior notes due 2013 and used the proceeds thereof
to redeem its floating rate senior notes due 2008.  Additionally
on Jan. 17, 2007, the company announced that it will redeem all
of its outstanding 5.75% convertible subordinated notes due 2008
on Feb. 15, 2007.  The redemption will initially be funded with
cash on hand.  Echostar's liquidity position is strong and is
primarily supported by around US$2.8 billion of restricted and
unrestricted cash, and marketable investment securities on its
balance sheet as of Sept. 30, 2006, and free cash flow
expectations.

Fitch's Stable Rating Outlook reflects the consistent subscriber
economic trends as well as the positive EBITDA and free cash
flow prospects expected over the near term balanced with the
very competitive operating environment.  Outside of the
announced share repurchase authorization Fitch views the use of
cash for shareholder friendly actions as an erosion of financial
flexibility that could result in pressure on the ratings or an
outlook revision.  Additionally, Fitch has concerns related to
the uncertainty surrounding the company's broadband strategy and
the potential cash requirements to launch a wireless broadband
service.  Lastly, incorporated into the current ratings and
Stable Rating Outlook is the expectation that the ongoing
litigation related to Tivo, Inc. is resolved in a credit neutral
manner and without significant operational disruption.


TSESNA BANK: Moody's Assigns B1 Rating on Senior Unsecured Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B1 long-term foreign
currency rating to the senior unsecured notes expected to be
issued by Tsesna International B.V. (Netherlands), a direct
wholly owned subsidiary of Kazakhstan's Tsesna Bank (rated
B1/NP/E+ with stable outlook).  The outlook for the rating is
stable.  

The issue will be unconditionally and irrevocably guaranteed by
TSB, which is a first-time issuer in the international bond
markets.  The notes will be denominated in US dollars, with the
amount, tenor and price of the issue yet to be determined.

TSB's obligations under the guarantee will rank at least pari
passu in right of payment with all its other senior unsecured
obligations.  According to the terms and conditions of the
notes, TSB must comply with a number of covenants such as
negative pledge, restrictions on distribution of dividends and
maintenance of a total capital adequacy ratio of at least 12%.
With regard to the latter, Moody's notes that the bank has
continuously exceeded this level in recent years, but that it
may be more difficult to achieve this under the current
conditions of rapid asset growth, which accelerated to 104% in
the first nine months of 2006, compared with 66% for the full
year of 2005.

In addition, an embedded rating trigger grants the noteholders a
put option in the event that a merger or asset sale by TSB
results in a rating downgrade.  Moody's notes that, while the
likelihood of any of the above-mentioned covenants being
breached is relatively low at the present time, any such
occurrence could potentially have adverse liquidity implications
for the bank and might exert additional downward pressure on its
ratings.

Headquartered in Astana, Kazakhstan, TSB reported under IFRS
unaudited total consolidated assets of KZT68.781 billion
(US$541.1 million) and total shareholders' equity of KZT5.165
billion (US$40.6 million) as at Sept. 30, 2006.  The bank ranks
as the 12th-largest in Kazakhstan in terms of total assets.


===============
P O R T U G A L
===============


BANCO ESPIRITO SANTO: Sues BDO Seidman for US$170 Million
---------------------------------------------------------
Banco Espirito Santo International has filed a US$170 million
civil lawsuit against BDO Seidman LLP in Miami-Dade Circuit
Court for negligence and dishonesty for failing to detect fraud
in the defunct E.S. Bankest LLC that ultimately led to Bankest's
collapse, reports said.

BDO Seidman has maintained that it was not negligent in its
audits of E.S. Bankest and has counter sued Banco Espirito.  

Bankest was created in 1998 by the partnership of Banco Espirito
and Bankest Capital Corp. as a factoring firm that buys at a
discount accounts receivable of other companies.

Banco Espirito said that it entered into partnership with
Bankest Capital because BDO Seidman's audits from 1995 to 1996
showed high income, Steven Thomas, Esq., representing Banco
Espirito told jurors this month in an opening statement, Curt
Anderson of the Associated Press reported.

Mr. Thomas added that BDO Seidman missed a red flag when it
mailed 145 letters in one year to companies listed as owners of
Bankest money, and it received no replies, Mr. Anderson further
said.

According to reports, Bankest management and Banco Espirito
executives were the ones who provided false financial documents
and fictitious invoices to accountants of BDO Seidman, Adam
Cole, Esq., representing BDO Seidman, countered.

Mr. Cole told jurors that Banco Espirito was having financial
problems in the 90s that led them to the Bankest partnership
expecting an increase in income, Mr. Anderson added.

Banco Espirito's lawsuit compared BDO Seidman's role in Bankest
as that of defunct accounting firm Arthur Anderson's role in
Enron's case.  The Honorable Jose Rodriguez, however, prohibited
any mention of Enron in the trial proper calling it prejudicial,
Patrick Danner of Miami Herald reported.

BDO Seidman said that a verdict against it could threaten its
standing as the world's fifth-largest accounting firm and could
mean loss of jobs to thousands of its accountants, auditors, and
staff, Mr. Danner added.

                       About BDO Seidman LLP

BDO Seidman LLP is a national professional services firm
providing assurance, tax, financial advisory and consulting
services to a wide range of publicly traded and privately held
companies. Guided by core values of integrity, trust,
professionalism, independence and service for almost 100 years,
we have provided quality service and leadership through the
active involvement of our most experienced and committed
professionals.

BDO Seidman serves clients through 34 offices and more than 300
independent alliance firm locations nationwide.  As a Member
Firm of BDO International, BDO Seidman LLP serves multi-national
clients by leveraging a global network of resources comprised of
601 Member Firm offices in 105 countries.  BDO International is
a worldwide network of public accounting firms, called BDO
Member Firms, serving international clients.  Each BDO Member
Firm is an independent legal entity in its own country.

                    About Banco Espirito Santo

Banco Espirito Santo was founded in Lisbon, Portugal in 1920.  
It is listed on the Euronext 100 index.  Along with its Azorean,
Brazilian and Angolan subsidiaries, the BES is part of the
Espirito Santo Financial Group, or ESFG.


=============
R O M A N I A
=============


LUKOIL ROMANIA: Parent to Hike Capital by US$40 Million
-------------------------------------------------------
OAO Lukoil will inject around US$40 million in fresh capital
into Lukoil Romania to boost its local fuel distribution
business, Ziarul Financiar reports.

Lukoil channeled the capital increase through its Dutch holding
unit Lukoil Europe Holdings, which owns 99.99% of Lukoil
Romania.  Lukoil Europe transferred the amount into Lukoil
Romania's account at ING Bank.

"The funds we obtained through the capital increase will be used
to sustain the investment program," Constantin Tampiza, general
manager of Lukoil Romania, said.

In 2006, Lukoil announced around US$100 million in investments
over the next five years to increase its fuel network from 300
to around 400 filling stations.  The company expects the
investment to hike its fuel market share from 25% to 30%.

Lukoil Romania expects to post EUR9.6 million in profit against
EUR1.08 billion in revenues.  The firm forecasts a five-percent
hike in turnover for 2007.

                         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.


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


BALTIYSKAYA BUILDING: Court Names M. Brylyev to Manage Assets
-------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. M. Brylyev as Insolvency Manager for CJSC
Baltiyskaya Building Company-2-St-Petersburg.  He can be reached
at:

         M. Brylyev
         Post User Box 119
         191123 St. Petersburg
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-12101/2006.

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

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

The Debtor can be reached at:

         CJSC Baltiyskaya Building Company-2-St-Petersburg
         Letter A
         Premise 22-N
         16th Liniya V.O. 37
         199178 St. Petersburg Region
         Russia


BRYANSK-GLASS LLC: Bryansk Bankruptcy Hearing Slated for May 21
---------------------------------------------------------------
The Arbitration Court of Bryansk Region will convene at
11:00 a.m. on May 21 to hear the bankruptcy supervision
procedure on LLC Bryansk-Glass.  The case is docketed under Case
No. A09-7767/06-26.

The Temporary Insolvency Manager is:

         G.Zinakov
         Post User Box 200
         241050 Bryansk Region
         Russia

The Arbitration Court of Bryansk Region is located at:

         Room 602
         Trudovoy Per. 5
         Bryansk Region
         Russia

The Debtor can be reached at:

         LLC Bryansk-Glass
         Moskovskiy Pr. 106
         241004 Bryansk Region
         Russia


DIAMOND CJSC: Court Names V. Pyatykh as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Moscow Region appointed Mr. V. Pyatykh
as Insolvency Manager for CJSC Diamond (TIN 77090033760).  He
can be reached at:

         V. Pyatykh
         Apartment 19
         Kultury 7/1
         603003 N. Novgorod
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-45725/06-71-974 B.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Diamond
         Apartment 14
         Ulyanovskaya 34
         Moscow Region
         Russia


ELBRUS OJSC: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------
The Arbitration Court of Adygeya Republic commenced bankruptcy
supervision procedure on OJSC Agroindustrial Financial Company
Elbrus.  The case is docketed under Case No. A01-B2329/2006.

The Temporary Insolvency Manager is:
         
         Sh. Zhemadukov
         Yakuba Autleva Str
         Khakurinokhab
         Shovgenovskiy Region
         385440 Adygeya Republic
         Russia

The Debtor can be reached at:

         Sh. Zhemadukov
         Yakuba Autleva Str
         Khakurinokhab
         Shovgenovskiy region
         385440 Adygeya republic
         Russia


FORWARDING COMPANY: Creditors Must File Claims by March 2
---------------------------------------------------------
Creditors of CJSC Forwarding Company have until March 2 to
submit written proofs of claim to:

         S. Oganezova, Insolvency Manager
         Post User Box 48
         693007 Yuzhno-Sakhalinsk 7
         Russia

The Arbitration Court of Sakhalin Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A59-4695/06-S9.

The Arbitration Court of Sakhalin Region is located at:

         Kommunisticheskiy Pr. 24
         693020 Yuzhno-Sakhalinsk Region
         Russia

The Debtor can be reached at:

         CJSC Forwarding Company
         Kholmsk
         Sakhalin Region
         Russia


GLAV-STROY-MONOLITH OJSC: Moscow Court Starts Bankruptcy Process
----------------------------------------------------------------
The Arbitration Court of Moscow Region commenced bankruptcy
supervision procedure on OJSC Glav-Stroy-Monolith (TIN
7710293820).  The case is docketed under Case No. A40-74286/
06-73-1169 B.

The Temporary Insolvency Manager is:

         M. Vasilega
         Post User Box 100
         105318 Moscow Region
         Russia

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Glav-Stroy-Monolith
         Tverskaya Str. 6/2
         125009 Moscow Region
         Russia


GOLDEN TELECOM: Continues Consolidation of Regional Assets
----------------------------------------------------------
Golden Telecom Inc. reveals that following its regional
expansion strategy it has purchased the telecommunications
assets and acquired two alternative operators in Yekaterinburg,
Nizhny Novgorod, the fourth and the fifth largest cities in
Russia, and Cheboksary, with a combined population of 3.0
million.  The total purchase price consideration amounted to
around US$1.2 million.

In Yekaterinburg, Golden Telecom purchased the
telecommunications assets of OAO Uralkhimmash and OOO Les-
Transit.

The telecommunications assets of Uralkhimmash are used to
provide local fixed-line services on the Uralkhimmash plant
premises and in the surrounding residential area.

Les-Transit is a residential Internet services provider.  The
company's network, which is about 5.5 kilometers long, covers
two residential districts in Yekaterinburg.

Golden Telecom acquired a 100% interest in OOO Vitus, a local
fixed-line operator providing telecommunication services to
Termal Plant and surrounding district in Nizhny Novgorod.  Vitus
operates its own cable distribution network.

Golden Telecom also acquired a 100% interest in OOO
Informtechnology, a telecommunications operator in Cheboksary,
Chuvashiya Republic of Russia, with a cable distribution network
of around 40 kilometers.

"These purchases and acquisitions support our regional expansion
strategy and further emphasize Golden Telecom's proactive
approach to market consolidation," Jean-Pierre Vandromme, Golden
Telecom's Chief Executive Officer, noted.  "The resources of the
acquired companies and the purchased assets enable us to enlarge
our client base and to strengthen Golden Telecom's position in
the regions."

                      About Golden Telecom

Golden Telecom, Inc. -- http://www.goldentelecom.com/--  
provides integrated telecommunications and Internet services in
major population centers throughout Russia and other countries
of the Commonwealth of Independent States.  The Company offers
voice, data and Internet services to corporations, operators and
consumers using its overlay network in major cities including
Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara,
Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via
intercity fiber optic and satellite-based networks, including
around 287 combined access points in Russia and other countries
of the CIS.  The Company offers cellular communication services
in Kiev and Odessa, Ukraine.

                          *     *     *

As reported in the TCR-Europe on Oct. 16, 2006, Standard &
Poor's Ratings Services raised its long-term corporate credit
rating on Golden Telecom Inc., to 'BB' from 'BB-', reflecting
the company's strengthened business profile and prudent
financial risk management.  S&P said the outlook is stable.

"The upgrade reflects the company's strengthened business
profile, with strong market shares and a leading consolidator
position in Russia's corporate fixed-line market," said Standard
& Poor's credit analyst Lorenzo Sliusarev.


KUYBYSHEVSKOYE LLC: Bankruptcy Hearing Slated for March 13
----------------------------------------------------------
The Arbitration Court of Orenburg Region will convene at
11:00 a.m. on March 13 to hear the bankruptcy supervision
procedure on LLC Kuybyshevskoye.  The case is docketed under
Case No. A47-10646/06-14 GK.

The Temporary Insolvency Manager is:

         Y. Ustimova
         Turkestanskaya Str., 10a
         460024 Orenburg Region
         Russia

The Arbitration Court of Orenburg Region is located at:

         9th January Str. 64
         460046 Orenburg Region
         Russia

The Debtor can be reached at:

         LLC Kuybyshevskoye
         Maryevka
         Oktyabrskiy Region
         Orenburg Reigon
         Russia


LUKOIL OAO: Eyes US$40 Million Investment in Lukoil Romania
-----------------------------------------------------------
OAO Lukoil will inject around US$40 million in fresh capital
into Lukoil Romania to boost its local fuel distribution
business, Ziarul Financiar reports.

Lukoil channeled the capital increase through its Dutch holding
unit Lukoil Europe Holdings, which owns 99.99% of Lukoil
Romania.  Lukoil Europe transferred the amount into Lukoil
Romania's account at ING Bank.

"The funds we obtained through the capital increase will be used
to sustain the investment program," Constantin Tampiza, general
manager of Lukoil Romania, said.

In 2006, Lukoil announced around US$100 million in investments
over the next five years to increase its fuel network from 300
to around 400 filling stations.  The company expects the
investment to hike its fuel market share from 25% to 30%.

Lukoil Romania expects to post EUR9.6 million in profit against
EUR1.08 billion in revenues.  The firm forecasts a five-percent
hike in turnover for 2007.

                         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.


METAL-WORKING COMPANY: Court Names V. Dubovoy to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Chelyabinsk Region appointed Mr. V.
Dubovoy as Insolvency Manager for OJSC Cjsc Metal-Working
Company.  He can be reached at:

         V. Dubovoy
         Bolshevistskaya Str. 4
         454038 Chelyabinsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A76-6115/2006-32-56.

The Arbitration Court of Chelyabinsk Region is located at:

         Vorovskogo Str. 2
         454091 Chelyabinsk Region
         Russia

The Debtor can be reached at:

         CJSC Metal-Working Company
         Mashinostroiteley Str. 27
         Chelyabinsk
         Russia


ORENBURSKIY FACTORY: Court Names K. Garkanov to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Orenburg Region appointed Mr. K.
Garkanov as Insolvency Manager for CJSC Orenburskiy Factory of
Reinforced Concrete Factory.  He can be reached at:

         K. Garkanov
         Post User Box 4166
         443110 Samara-110
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A47-1454/06-14GK.

The Arbitration Court of Orenburg Region is located at:

         9th January Str. 64
         460046 Orenburg Region
         Russia

The Debtor can be reached at:

         CJSC Orenburskiy Factory of Reinforced Concrete Factory
         Orenburg Region
         Russia


PINE OJSC: St. Petersburg Bankruptcy Hearing Slated for March 20
----------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
will convene at 10:00 a.m. on March 20 to hear the bankruptcy
supervision procedure on OJSC Pine.  The case is docketed under
Case No. A56-44958/2006.

The Temporary Insolvency Manager is:

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

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

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

The Debtor can be reached at:

         OJSC Pine
         Krasavskoye Shosse 1
         Tikhvin
         187500 Leningrad Region
         Russia


PURE WATER: Court Names L. Sorokina as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Sakhalin Region appointed Ms. L.
Sorokina as Insolvency Manager for CJSC Pure Water (TIN
6501108380).  She can be reached at:

         L. Sorokina
         Komsomolskaya Str. 310-53
         Yuzhno-Sakhalinsk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A59-4333/06-S4.

The Arbitration Court of Sakhalin Region is located at:

         Kommunisticheskiy Pr. 24
         693020 Yuzhno-Sakhalinsk Region
         Russia

The Debtor can be reached at:

         L. Sorokina
         Komsomolskaya Str. 310-53
         Yuzhno-Sakhalinsk
         Russia


ROS-MARKET LLC: Rostov Bankruptcy Hearing Slated for April 16
-------------------------------------------------------------
The Arbitration Court of Rostov Region will convene at 10:30
a.m. on April 16 to hear the bankruptcy supervision procedure on
LLC Ros-Market (TIN 6164072397).  The case is docketed under
Case No. A53-15398/06-S2-36.

The Temporary Insolvency Manager is:

         I. Prokopenko
         Yufimtseva Str. 14
         Rostov-na-Donu
         Russia

The Arbitration Court of Rostov Region is located at:

         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         LLC Ros-Market
         Sotsialisticheskaya Str. 76
         Rostov-na-Donu
         Russia


ROSNEFT OIL: To Share Russian Offshore Fields with OAO Gazprom
--------------------------------------------------------------
OAO Rosneft Oil Co. and Gazprom OAO will equally share new
offshore oil and gas fields, Vedomosti business daily reports
citing government sources.

The Russian government decided that other offshore fields
unallocated to either Rosneft or Gazprom would only be offered
at closed auction, Vedemosti relates.  The process, while
limiting foreign and private access to Russian energy sources
and reduces chances of gaining maximum offers, guarantees no
surprise winner, Vedemosti suggests.

Analysts told Vedomosti the decision was expected as part of
government's efforts to hike control over natural resources,
which started with the collapse of OAO Yukos Oil Co. and a re-
nationalization of a third of Russian oil production.

                        About Rosneft

Headquartered in Moscow, Russia, OAO Rosneft Oil Co. --
http://ns.roilcom.ru/english/-- produces and markets petroleum  
products.  The Company explores for, extracts, refines and
markets oil and natural gas.  Rosneft produces oil in Western
Siberia, Sakhalin, the North Caucasus and the Arctic regions of
Russia.

                        *     *     *

In a TCR-Europe report on Jan. 16, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Russian
OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from
CreditWatch, where it had been placed with positive implications
on Nov. 15, 2006.  S&P said the outlook is developing.

As reported in the TCR-Europe on Jan. 2, Fitch Ratings placed
OJSC Rosneft Oil's foreign and local currency Issuer Default
ratings of BB+ on Rating Watch Positive following the company's
announcement of strong financial results for the first nine
months of 2006.


TMK OAO: Hikes Pipe Shipment to 3,018,000 Tons
----------------------------------------------
OAO TMK disclosed of its production results for 2006.

The total volume of pipes shipped reached an all-time high of
3,018,000 tons.  Shipments of billets were 320,000 tons.

Pipe shipments increased by 94,000 tons or by 3.2% over 2005
with high-tech, seamless pipes experiencing the highest levels
of growth.  OCTG shipment increased by 16.7% on the previous 12
months and the total share of OCTG shipments in 2006 increased
by 3.6% to 31.6%.  Shipments of seamless pipes in 2006 accounted
for 64.4% of the Company total, compared with 64.2% in 2005.

Despite lower shipment volumes of large-diameter welded pipes,
as a result of the ongoing modernization program, total sales of
welded pipes increased in 2006.  TMK shipments of industrial
welded pipes were 18.1% higher than in 2005.

Amidst a favorable environment for the world pipe industry, TMK
increased its share of the total number of pipes exported from
Russia from 48.8% to 56.1%.  The total volume of pipes supplied
by the Russian subsidiaries of the company in 2006 to non-
Russian customers was 806,000 tons, which exceeded the volume in
2005 by 56,000 tons.

Within the framework of TMK's program to achieve self-
sufficiency in billets, TMK produced 2,150,000 tons of steel in
2006.  The Company is continuing to successfully implement its
strategic investment program. In 2006 two continuous casters of
one million tons capacity each were put into operation at
Seversky Pipe Plant and Taganrog Metallurgical Works.  As a
result of these measures, self-sufficiency in billets will reach
90% in 2007.

In 2007 TMK will also continue upgrading its high value-added,
seamless pipe production capacities.  The share of Premium
tubular goods of the total shipment volume in 2006 accounted for
around 23%.

Measures taken to upgrade production capacities during 2006 were
performed on time and in accordance with the approved budgets.
Currently, around 30% of the strategic investment program, which
runs until 2010, has been financed.

"In 2006, TMK undertook large-scale works aimed at upgrading
production and mastering new technologies, and simultaneously
increased shipment volumes, particularly in the high value-added
segment," Mr. Konstantin Semerikov, TMK's CEO, said.  "We are
confident that we have the capabilities and infrastructure in
place for further successful development."

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmkgroup.ru/eng/-- manufactures the entire product  
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                        *     *     *

In a TCR-Europe report on Oct. 31, 2006, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russia-based steel pipe producer OAO TMK on CreditWatch with
negative implications.  The ratings were originally placed on
CreditWatch on Sept. 4, 2006, pending clarification of the
company's eventual balance sheet structure.

On Sept. 11, 2006, Moody's Investors Service assigned a B1
corporate family rating to TMK and a (P)B2 senior unsecured
rating to the loan participation notes issued by TMK Capital
S.A., guaranteed by the operating subsidiaries of TMK.  Moody's
said the outlook on both ratings is positive.

On Sept. 9, 2006, the TCR-Europe reported that Standard & Poor's
Ratings Services assigned a 'B+' long-term corporate credit
rating to OAO TMK.  Standard & Poor's also assigned its 'B+'
preliminary senior unsecured debt rating to TMK's proposed
Eurobond, which will be issued by special-purpose vehicle TMK
Capital S.A.


TOSNENSKIY WOOD: Court Names A. Zhadnov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. A. Zhadnov as Insolvency Manager for LLC
Tosnenskiy Wood.  He can be reached at:

         A. Zhadnov
         Post User Box 795
         199106 St. Petersburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-3785/2006.

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

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

The Debtor can be reached at:

         LLC Tosnenskiy Wood
         Production Base Pioner
         Tosnenskiy Reigon
         Leningrad Region
         Russia


ZAVITINSKIY BUTTER: Creditors Must File Claims by March 2
---------------------------------------------------------
Creditors of LLC Zavitinskiy Butter Factory (TIN 2814003269)
have until March 2 to submit written proofs of claim to:

         M. Miroshnichenko, Insolvency Manager
         Lenina Str. 191
         Blagoveshensk
         Amur Region
         Russia

The Arbitration Court of Amur Region commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A04-6811/06-12-213 B.

The Debtor can be reached at:

         LLC Zavitinskiy Butter Factory
         Kursakovskaya Str. 56
         Zavitinsk
         Amur Region
         Russia


ZIMINKA OJSC: Court Names G. Kuptsov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Kemerovo Region appointed Mr. G.
Kuptsov as Insolvency Manager for OJSC Central Concentrating
Mill Ziminka.  He can be reached at:

         G. Kuptsov
         Office 1
         Entrance 1
         Ermakova Str. 1
         Novokuznetsk
         Kemerovo Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A27-13690/2006-4.

The Arbitration Court of Kemerovo Region is located at:

         Krasnaya Str. 8
         Kemerovo
         Russia

The Debtor can be reached at:

         OJSC Central Concentrating Mill Ziminka
         Kutuzova Str. 1
         Prokopyevsk
         653016 Kemerovo Region
         Russia


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


AUGENLASER-ZENTRUM: Creditors' Liquidation Claims Due February 8
----------------------------------------------------------------
Creditors of JSC Augenlaser-Zentrum Winterthur have until Feb. 8
to submit their claims to:

         JSC Gubler
         Liquidator
         8401 Winterthur
         Zurich
         Switzerland

The Debtor can be reached at:

         JSC Augenlaser-Zentrum Winterthur
         Winterthur
         Zurich
         Switzerland


AUTO RUDEL: Creditors' Liquidation Claims Due February 5
--------------------------------------------------------
Creditors of JSC Auto Rudel have until Feb. 5 to submit their
claims to:

         Herbert Rudel
         Liquidator
         Meienriedweg 47
         2556 Scheuren
         Nidau
         Bern
         Switzerland

The Debtor can be reached at:

         JSC Auto Rudel
         Scheuren
         Nidau
         Bern
         Switzerland


BF COMPANY: Creditors' Liquidation Claims Due February 28
---------------------------------------------------------
Creditors of JSC BF Company have until Feb. 28 to submit their
claims to:

         Franzestg Decurtins
         Liquidator
         Clius 6
         7166 Trun
         Graubunden
         Switzerland

The Debtor can be reached at:

         JSC BF Company
         Freienbach
         Hofe
         Schwyz
         Switzerland


BLATEC BLADE: Creditors' Liquidation Claims Due February 5
----------------------------------------------------------
Creditors of JSC BLATEC Blade Technologies have until Feb. 5 to
submit their claims to:

         ettlin&partner
         Liquidator
         Terrassenstrasse 8
         6060 Sarnen
         Obwalden
         Switzerland

The Debtor can be reached at:

         JSC BLATEC Blade Technologies
         Sarnen
         Obwalden
         Switzerland


BLITEMA VERLAG: Creditors' Liquidation Claims Due February 15
-------------------------------------------------------------
Creditors of JSC Blitema Verlag have until Feb. 15 to submit
their claims to:

         Markus Rezzonico
         Liquidator
         Durrenbergstrasse 61
         4632 Trimbach
         Gosgen
         Solothurn
         Switzerland

The Debtor can be reached at:

         JSC Blitema Verlag
         Baar
         Zug
         Switzerland


CIMTEC ENGINEERING: Creditors' Liquidation Claims Due February 5
----------------------------------------------------------------
Creditors of JSC Cimtec Engineering have until Feb. 5 to submit
their claims to:

         Stephan Hess
         Liquidator
         Hauptstrasse 4
         4417 Ziefen
         Liestal
         Basel
         Switzerland

The Debtor can be reached at:

         JSC Cimtec Engineering
         Ziefen
         Liestal
         Basel
         Switzerland


DROGERIE ZIEGLER: Creditors' Liquidation Claims Due February 16
---------------------------------------------------------------
Creditors of JSC Drogerie Ziegler have until Feb. 16 to submit
their claims to:

         Urs Ziegler
         Liquidator
         Hofstettenstrasse 5
         8212 Neuhausen am Rheinfall
         Schaffhausen
         Switzerland

The Debtor can be reached at:

         JSC Drogerie Ziegler
         Schaffhausen
         Switzerland


ESKA-NORM LLC: Liestal Court Closes Bankruptcy Proceedings
----------------------------------------------------------
The Bankruptcy Court of Liestal in Basel entered Dec. 12, 2006,
an order closing the bankruptcy proceedings of LLC ESKA-Norm.

The Debtor can be reached at:

         LLC ESKA-Norm
         Hammerstrasse 24
         4410 Liestal
         Basel
         Switzerland

The Bankruptcy Service of Liestal can be reached at:

         Bankruptcy Service of Liestal
         4410 Liestal
         Basel
         Switzerland


GERBER P. KUCHEN: Bern Court Closes Bankruptcy Proceedings
----------------------------------------------------------
The Bankruptcy Court of Bern entered Dec. 12, 2006, an order
closing the bankruptcy proceedings of LLC Gerber P. Kuchen.

The Debtor can be reached at:

         LLC Gerber P. Kuchen
         Stadtbachstrasse 40
         3012 Bern
         Switzerland

The Bankruptcy Service of Bern-Mittelland can be reached at:

         Bankruptcy Service of Bern-Mittelland
         Office Bern
         3011 Bern
         Switzerland


MIRKOS SA: Surselva Court Closes Bankruptcy Proceedings
-------------------------------------------------------
The Bankruptcy Court of Surselva in Graubunden entered
Dec. 18, 2006, an order closing the bankruptcy proceedings of
Mirkos SA.

The Debtor can be reached at:

         Mirkos SA
         Oberalpstrasse
         7172 Rabius
         Sumvitg
         Graubunden
         Switzerland

The Bankruptcy Service of Surselva can be reached at:

         Bankruptcy Service of Surselva
         7130 Ilanz
         Surselva
         Graubunden
         Switzerland


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


SEKERBANK T.A.S.: Weak Management Controls Cue Fitch's B- IDR
-------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Sekerbank T.A.S.'s ratings
at foreign and local currency Issuer Default 'B-', Short-term
foreign and local currency 'B', Individual 'D/E', Support '5'
and National Long-term 'BBB'.  The Outlooks on the Issuer
Default and National ratings are Stable.

The ratings reflect Sekerbank's substantial problem assets
caused by weak management controls and credit concentrations,
sizeable, albeit reduced, reliance on government securities
income and weak profitability.  These negative factors are
counter-balanced by its improved capital and reserve levels and
stable funding base.  Profitability deteriorated sharply in
2005, mainly as a result of large loan impairment charges and
slowing loan growth, before recovering in third quarter 2006.

The bank's cost base remained higher than that of peers due to
its large branch network and relatively low assets per branch
compared with the sector.  Sekerbank's asset quality remains
poor relative to the Turkish banking sector due to inadequate
credit approval systems and weak problem loan identification.
While the bank's non-performing loan ratio has improved due to
loan growth, problem credits equaled an excessive 14.7% at end-
Q306, with specific reserve coverage of 92%.  The bank's Tier 1
capital ratio was barely adequate at 15.34% at end-Q306, given
its weak track record in asset quality and a potentially
volatile operating environment.  The bank's stable, well-
diversified core deposit base is one of its strengths, which
also serves to partly mitigate the heightened liquidity risk
from the maturity mismatch between assets and liabilities.

Sekerbank is 67.76%-owned by the bank's two pension funds, while
its remaining shares are publicly traded.  In December 2006, the
Banking Regulation and Supervision Agency approved the sale of
half of the Sekerbank shares held by the bank's two pension
funds to TuranAlem Securities of Kazakhstan, a fully owned
subsidiary of Bank TuranAlem.  Sekerbank is a medium-sized bank
with 204 branches and has traditionally lent to corporates,
although it has increasingly shifted its focus towards small and
medium-sized enterprises and retail lending since 2005.


VAKIFLAR BANKASI: Fitch Affirms Issuer Default Rating at BB-
------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Turkiye Vakiflar Bankasi's
ratings at foreign and local currency Issuer Default 'BB-' with
Positive Outlook, Short-term foreign and local currency 'B',
Individual 'C/D', Support '4' and National Long-term 'A+' with
Stable Outlook.

The ratings reflect Vakifbank's established franchise in Turkey,
stable core deposit base and improved capitalization.  These are
balanced by potential asset quality problems from rapid loan
growth in a potentially volatile operating environment.  
Although Vakifbank's profitability declined slightly in third
quarter 2006, compared with 2005, it remained good as higher net
interest income from lending offset increased costs from network
expansion.

Its asset quality continued to improve on loan growth, with non-
performing loans diminishing to 6.22% of its portfolio at Q306.  
Credit expansion is considered rapid by Fitch and could create
asset quality problems.  Capitalization significantly improved
following Vakifbank's IPO in November 2005 and continued to be
supported by retained earnings; the bank's Tier 1 ratio equalled
21.17% at end-Q306.  Fitch considers the bank's capitalization
to be good, given improvements in asset quality, fully covered
problem loans and management's plans to further reduce non
interest-earning assets.

Vakifbank is the fifth-largest bank in Turkey by total assets
with a 7.6% share of the system assets and 312 branches.  Its
main shareholder, with a 58.45% stake, is the General
Directorate of Foundations, which manages Turkey's charitable
foundations.  Following Vakifbank's IPO, 25.18% of the shares
are publicly traded.  Vakifbank provides corporate, commercial,
retail and investment banking services with an increasing focus
on SMEs, foreign trade-oriented companies and retail banking.


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


DALPORT-K: Claims Submission Deadline Set February 11
-----------------------------------------------------
Creditors of LLC Dalport-K (code EDRPOU 30855781) have until
Feb. 11 to submit written proofs of claim to:

         I. Gusar, Liquidator
         P.O. Box 29
         01030 Kiev Region
         Ukraine

The Economic Court of Kiev Region commenced bankruptcy
proceedings against the company on Dec. 7, 2006, after finding
it insolvent. The case is docketed under Case No. 43/423.

The Economic Court of Kiev Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kiev Region
         Ukraine

The Debtor can be reached at:

         LLC Dalport-K
         Eksplanadnaya Str. 2-A
         Kiev Region
         Ukraine


FARMVEST LLC: Claims Submission Deadline Set February 11
--------------------------------------------------------
Creditors of LLC Production-Commercial Enterprise Farmvest (code
EDRPOU 23932640) have until Feb. 11 to submit written proofs of
claim to:

         D. Kushnarev, Liquidator
         Melnikov Str. 2/10
         Kiev Region
         Ukraine

The Economic Court of Kiev Region commenced bankruptcy
proceedings against the company on Dec. 27, 2006, after finding
it insolvent.  The case is docketed under Case No. 43/890.

The Economic Court of Kiev Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kiev Region
         Ukraine

The Debtor can be reached at:

         LLC Production-Commercial Enterprise Farmvest
         Tatarskaya Str. 3/7
         Podgornaya
         04107 Kiev Region
         Ukraine


FRUNZE LLC: Creditors Must Submit Claims by February 11
-------------------------------------------------------
Creditors of Frunze LLC (code EDRPOU 0378780) have until Feb. 11
to submit written proofs of claim to:

         Vasiliy Melanchuk, Temporary Insolvency Manager
         K.Venger Str. 16
         Yarmolincy
         Hmelnitskiy Region
         Ukraine

The Economic Court of Hmelnitskiy Region commenced bankruptcy
supervision procedure on the company.  The case is docketed
under Case No. 3/317-B.

The Economic Court of Hmelnitskij Region is located at:

         Nezalezhnosti Square 1
         29000 Hmelnitskij Region
         Ukraine

The Debtor can be reached at:

         Frunze LLC
         Noviy sviet
         Gorodok District
         32025 Hmelnitskij Region
         Ukraine


MAGNESIUM CJSC: Creditors Must Submit Claims by February 11
-----------------------------------------------------------
Creditors of CJSC Magnesium (code EDRPOU 31587185) have until
Feb. 11 to submit written proofs of claim to:

         Elena Goshovskaya, Temporary Insolvency Manager
         Sechevie Strelcy Str. 10
         Striy
         Lviv Region Ukraine

The Economic Court of Ivano-Frankovsk Region commenced
bankruptcy supervision procedure on the company on
Nov. 16, 2006.  The case is docketed under Case No. B-7/235.

The Economic Court of Ivano-Frankivsk Region is located at:

         Shevchenko Str. 16a
         76000 Ivano-Frankivsk Region
         Ukraine

The Debtor can be reached at:

         CJSC Magnesium
         Kalush
         77300 Ivano-Frankovsk Region
         Ukraine


UKRGAZTORG LLC: Claims Submission Deadline Set February 11
----------------------------------------------------------
Creditors of LLC Company Ukrgaztorg (code EDRPOU 33883628) have
until Feb. 11 to submit written proofs of claim to:

         Andrei Fedorchenko, Liquidator
         R. Rolan Str. 12
         61058 Kharkov Region
         Ukraine

The Economic Court of Kiev Region commenced bankruptcy
proceedings against the company on Jan. 10 after finding it
insolvent.  The case is docketed under Case No. 23/615-B.

The Economic Court of Kiev Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kiev Region
         Ukraine

The Debtor can be reached at:

         LLC Company Ukrgaztorg
         Krasnogvardeyskaya Str. 5
         02094 Kiev Region
         Ukraine


VINADA TRANSSERVICE: Claims Submission Deadline Set February 8
--------------------------------------------------------------
Creditors of LLC Vinada Transservice (code EDRPOU 00727274) have
until Feb. 8 to submit written proofs of claim to:

         O. Chayka, Liquidator
         Boryslav Highway 10-A
         73000 Herson Region
         Ukraine
         Tel: (0552) 51-03-69

The Economic Court of Herson Region commenced bankruptcy
proceedings against the company on Jan. 10 after finding it
insolvent.  The case is docketed under Case No. 5/1-B-07.

The Economic Court of Herson Region is located at:

         Gorkiy Str. 18
         73000 Herson Region
         Ukraine

The Debtor can be reached at:

         LLC Vinada Transservice
         Suvorov Str. 51
         73025 Herson Region
         Ukraine


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


24 SEVEN: Creditors' Meeting Slated for January 30
--------------------------------------------------
Creditors of 24 Seven Security & Bodyguards (U.K.) Ltd. (Company
Number 05329244) will meet at 11:30 a.m. on Jan. 30 at:

         Gerald Edelman Business Recovery
         25 Harley Street  
         London W1N 2BR  
         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. 29 at:

         Bernard Hoffman  
         Joint Administrator
         Gerald Edelman Business Recovery
         Suite 2
         Kent House
         Station Road
         Ashford
         Kent TN23 1PP
         United Kingdom
         Tel: 01233 666 280
         Fax: 01233 666 281

Gerald Edelman -- http://www.geraldedelman.com/-- offers  
services that include auditing, business development, business
recovery, company registration, corporate finance, independent
financial planning, litigation support services, IT solutions,
taxation, and trusts.


A & M: Creditors' Meeting Slated for February 6
-----------------------------------------------
Creditors of A & M Trade Frames Ltd. will meet at 11:30 a.m. on
Feb. 6 at:

         The Lincoln Hotel
         Eastgate
         Lincoln LN2 1PN
         England

Neil Henry and Michael Simister of Lines Henry will furnish
creditors with such information concerning the company's affairs
free of charge between 10:00 a.m. and 4:00 p.m. on Feb. 2 as
they may reasonably require.


AB MOTORSPORT: Creditors' Meeting Slated for January 31
-------------------------------------------------------
Creditors AB Motorsport Ltd. will meet at 11:00 a.m. on Jan. 31
at:
  
         St. Matthew's House
         Brick Row
         Darley Abbey
         Derby DE22 1DQ
         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. 30 at:

         Harrisons
         35 Waters Edge Business Park
         Modwen Road
         Manchester M5 3EZ
         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. 29 at Harrisons.

Harrisons -- http://www.harrisons.uk.com/-- provides advice and  
solutions to profes sional advisors who found their clients
experiencing financial difficulties.  Originally trading from
offices in Reading and has added London, Manchester, Bristol and
Derby and has associate offices in Grantham and Stockton on
Tees.   


ABBASI TRADERS: Creditors' Meeting Scheduled for February 8
-----------------------------------------------------------
Creditors of Abbasi Traders Ltd. will meet at 12:30 p.m. on  
Feb. 8 at:
  
         Rifsons House
         63-64 Charles Lane
         London NW8 7SB
          
A list of names and addresses of the company's creditors will be
available for inspection free of charge on Feb. 6 at the said
address.


ADVANCED MARKETING: Asks Court to Set Reclamation Claims Process
----------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to enter
a ruling establishing procedures for reconciliation of
reclamation claims.

Section 546(c)(1) of the Bankruptcy Code authorizes vendors who
have delivered goods to a debtor in the ordinary course of
business to reclaim those goods, subject to certain limitations,
if:

    (a) the debtor was insolvent when the goods were received;

    (b) the goods were received by the debtor within 45 days
        before the Petition Date;

    (c) the seller demanded reclamation in writing; and

    (d) the demand was made within 45 days after the debtor
        received possession of the goods or within 20 days if
        the 45-day period would expire after the Petition Date.

The Debtors estimate that as of the Petition Date, as many as
US$24,457,822 in goods may be subject to reclamation claims.  As
a distribution company, these goods are essential to the
Debtors, Mark D. Collins, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, notes.  The Debtors' business
will be severely disrupted if vendors are allowed to exercise
their rights to reclaim goods without a uniform procedure that
is fair and applicable to all parties, Mr. Collins explains.

Mr. Collins says that given the high volume of merchandise they
received daily, the Debtors anticipate that a number of vendors
will attempt, pursuant to Section 546(c), to assert their right
to reclaim goods delivered to the Debtors shortly after the
Petition Date.  In the week since the Petition Date, the Debtors
have already received numerous demands for reclamation, many of
which have threatened suit or requested that the Debtors take
drastic and disruptive steps as physically segregating
inventory, freezing sales and permitting physical investigation
by the publishers.  Any of these remedies threaten to seriously
disrupt the Debtors' operations at this crucial time.

Mr. Collins asserts that absent the establishment of an orderly
process for the determination of reclamation claims, the
Debtors' business operations will suffer and management's
attention will be diverted from important issues to deal with
reclamation claims.

The inventory subject to reclamation is also subject to a
floating lien asserted by the Senior Lenders, which takes
priority over any reclamation claims, Mr. Collins relates.  
Similarly, premature payment of reclamation claims could
constitute an event of default under the Debtors' debtor-in-
possession credit agreement.  Hence, if and to the extent that
publishers' reclamation claims are valid, the value of claims
can be more than adequately protected by the granting of an
administrative claim.  Like the reclamation claims, replacement
administrative claims are and will be subject and subordinate to
the liens of the Senior Lenders.

Furthermore, Mr. Collins continues, the Debtors are more than
capable of preserving the reclamation claims of their inventory
suppliers without the need to disrupt the Debtors' operations.

In the ordinary course of their business, in addition to general
purchasing and sales information, the Debtors track and record
in their centralized computer database the locations of pallets
and cartons of books not only geographically but also by shelf
location within each distribution center.  By gathering this and
other data concerning the number of books purchased, moved, or
sold, the Debtors can determine -- without requiring any
physical segregation of goods or manual inventory count or
examination -- which units of inventory were purchased and
received within the 45-day period before the Petition Date that
remain unsold as of any date, Mr. Collins tells the Court.  From
this, the Debtors are and will remain in possession of the
information needed to describe the validity and extent of any
reclamation claim.

Hence, the Debtors propose these procedures for processing and
treatment of reclamation claims:

    (a) any vendor asserting a claim for reclamation under
        Section 546(c) must satisfy all requirements entitling
        It to have a right of reclamation under Section 546(c)
        and will send a written reclamation claim demand to:

          -- Advanced Marketing Services, Inc.
             5880 Oberlin Drive
             San Diego, California 92121
             Attention: Gary Lloyd,

          or directly to the Debtors' counsel:

          -- Richards, Layton & Finger, P.A.
             One Rodney Square, 920 King Street
             Wilmington, Delaware 19899
             Attn: Mark Collins, Esq.

          -- O'Melveny & Myers, LLP
             275 Battery Street
             San Francisco, California 94111
             Attn: Suzzanne S. Uhland, Esq.,
                   Austin K. Barron, Esq., and
                   Alexandra B. Feldman, Esq.

    (b) after receipt of all demands and an opportunity to
        review the demands, the Debtors will file a report, on
        notice to parties-in-interest, listing those claims, if
        any, that the Debtors deem to be valid pursuant to the
        Court approval of the request;

    (c) absent further Court ruling, the Reclamation Claims
        Report will be filed by the Debtors within 180 days
        after a final Court ruling for the request;

    (d) if the Debtors fail to file the Reclamation Claims
        Report within the required period of time, any holder of
        a reclamation claim may commence an adversary proceeding
        on its own behalf but no action may be commenced or
        filed earlier than 180 days after the Court's final
        ruling for the request;

    (e) all parties-in-interest will have the right and
        opportunity to object to the inclusion or omission of
        any asserted reclamation claim in the Reclamation Claims
        Report; and

    (f) all reclamation claims allowed by the Court pursuant to
        the Reclamation Claims Report will receive either an
        administrative expense claim or a replacement lien, to
        the extent allowed by law, or will receive treatment
        otherwise agreed upon.  Provided, however, nothing will
        be deemed to be a finding or determination that a
        reclamation claim is valid or entitled to the treatment.

To allay concerns of reclamation claimants, to avoid unnecessary
disruption of the Debtors' business, and to minimize or
eliminate needless litigation, the Debtors will not take the
position that an otherwise valid reclamation demand is rendered
invalid by:

    (1) a reclamation claimant's failure to take any or all
        possible "self-help" measures with respect to the goods
        subject to reclamation demand; or

    (2) the failure of a reclamation claimant to institute a
        adversary proceeding against the Debtors seeking to
        enjoin them from using or selling the goods subject to
        the reclamation demand or any other similar request.

Mr. Collins further notes that reclamation claims that are
determined in accordance with the procedures to be valid
reclamation claims will be paid pursuant to the Debtors'
Reorganization Plan.

                             Responses

(A) Hachette Book

Hachette Book Group USA, Inc., formerly known as Time Warner
Book Group, has been a supplier of books to AMS over the past 20
years.  The Debtors have listed Hachette Book as their fourth
largest unsecured creditor, holding an unsecured claim for
US$22,569,624.

Jeffrey A. Marks, Esq., at Squire, Sanders & Dempsey L.L.P, in
Cincinnati, Ohio, says that during the 45 days before the
Petition Date, Hachette Book sold books to AMS for which it has
not yet been paid.  Accordingly, Hachette Book has the right to
reclaim the books sold to AMS during that period under Section
546(c), and to an administrative expense claim for those books
sold to AMS during the 20-day period before the Petition Date
under Section 503(b)(9).

Hachette Book objects to the Debtors' request because:

    (1) the proposed procedures requires the Debtors to file a
        report listing those reclamation claims that they deem
        to be valid, but does not require the Debtors to provide
        any explanation or detail supporting their conclusions.
        Hachette Book asserts that the Debtors should be
        required to provide sufficient explanation and support
        to enable reclamation and administrative claimants to be
        reasonably informed as to the basis for the Debtors'
        conclusions;

    (2) it is premature at this point to establish a 180-day
        deadline without knowing the extent and nature of the
        reclamation and administrative claims in question.
        Hachette Book asserts that the appropriate amount of
        time within which the Debtors must analyze the
        reclamation and administrative claims depends on the
        amount and complexity of the reclamation and
        administrative claims actually received;

    (3) the proposed procedures provides that all parties-in-
        interest will have the right and opportunity to object
        to the inclusion or omission of any asserted reclamation
        claim in the Reclamation Claims Report but does not set
        a deadline for doing so.  A reasonable deadline should
        be established in order to enhance the efficiency of the
        process;

    (4) at this nascent stage of the Debtors' bankruptcy cases,
        there is no legitimate basis to conclude that payment of
        reclamation claims should be delayed until Plan
        confirmation.  Hachette Book asserts that the Debtors'
        first-day filings indicate that there is value and
        working capital substantially in excess of the
        prepetition and projected postpetition secured debt.
        Hence, payment of reclamation claims may be justifiable
        and appropriate well before Plan confirmation; and

    (5) the Debtors assert in the request that they will not
        take the position that an otherwise valid reclamation
        demand is rendered invalid by a reclamation creditor's
        failure to (a) exercise self-help remedies, or
        (b)institute an adversary proceeding to enjoin the use
        or sale of goods subject to reclamation by the creditor.

Accordingly, Hachette Book asks the Court to enter a ruling
sustaining its objection.

Furthermore, Hachette Book asks the Court that any ruling on the
Debtors' request contain a provision that any creditor's rights
to reclaim goods under Section 546(c) will not be prejudiced or
limited in any way by the creditor's failure to (a) take any and
all possible "self-help" measures with respect to the goods
subject to the creditor's reclamation demand, or (b) to
institute an adversary proceeding or contested matter against
the Debtors seeking to enjoin them from using or selling the
goods subject to the creditor's reclamation demand or any other
similar relief.

Seven other creditors essentially join Hachette Book's
objection:

    (1) Random House, Inc.;

    (2) Trinity University Press;

    (3) Meredith Corp.;

    (4) Barron's Educational Series, Inc.;

    (5) Global Book Publishing and Design Eye, Ltd., both
        divisions of Quarto Publishing PLC;

    (6) Mascot Books, Inc.; and

    (7) Penguin Group (USA) Inc.

Random House, the Debtors' largest creditor, also asserts that
the holders of the reclamation claims should be entitled to
notice of the sale of their goods, which sale should not be
allowed without Court approval.

Trinity University further asks the Court to:

    (a) reduce the amount of time sought to reconcile the
        reclamation claims; and

    (b) provide some form of adequate assurance that if the
        goods subject to its reclamation demand are or have been
        sold, Trinity will be paid in full for the goods within
        30 days of the reconciliation.

Quarto Publishing contends that the Debtors' request has no
basis for being granted under applicable law.

(B) Wells Fargo

The Debtors and Wells Fargo Foothill, Inc., along with other
lender parties, are parties to a Loan and Security Agreement
dated April 27, 2004.

On the Petition Date, the Court issued an interim ruling
authorizing the Debtors' DIP financing agreement with Foothill.

In connection with the Prepetition and DIP Loan Agreements, the
Debtors granted the Lenders security interests in substantially
all of the Debtors' pre- and postpetition assets.

To the extent, if any, that the reclamation procedures seek to
affect any of the Lender Liens in the Debtors' inventory, the
Lenders object to the reclamation procedures and will argue at
the hearing, among other things, that there should be no
reclamation procedures if the evidence establishes that the
reclamation claims are "valueless" under the applicable case
law.

(C) Simon & Schuster

Simon & Schuster, Inc., objects to the Debtors' request because,
if granted, the request will eliminate its statutory right to
specific performance under Section 546(c) to reclaim its goods.

Since the Petition Date, Simon & Schuster has worked diligently
to enforce its statutory right to specific performance under
Section 546(c), including:

    (a) sending a written demand for reclamation of its goods on
        the Petition Date;

    (b) filing a complaint for reclamation of the Goods on
        Jan. 5, 2007; and

    (c) seeking a temporary restraining order to protect its
        reclamation rights on January 11.

Accordingly, Simon & Schuster asks the Court to deny the
Debtors' request and maintain status quo until it has an
opportunity to rule on the merits of Simon & Schuster's
complaint to reclaim goods.  Alternatively, Simon & Schuster
asks the Court that the approved request will not apply to it.

                    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
about 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).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.  
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. 3;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


BALDOR ELECTRIC: Moody's Puts Low-B Rating on High Debt Leverage
----------------------------------------------------------------
Moody's Investors Service affirmed the B1 corporate family
rating of Baldor Electric Company along with the Ba3 ratings
for:

   -- the proposed senior secured credit facilities:

      * US$1.05-billion term loan, and
      * US$200-million revolving credit facility; and

   -- B3 ratings for the proposed US$550-million senior
      unsecured notes

following the company's disclosure that the company intends to
eliminate a preferred stock issuance from its previously
announced financing plans.  

The rating outlook is stable.  These first-time ratings are
subject to final documentation.

Proceeds from the proposed debt offerings, together with
proceeds from the issuances of common stock will be used to fund
the US$1.8 billion acquisition of the Power System businesses of
Rockwell Automation, Inc., refinance existing debt and pay
transaction fees.  Initial financing plans included the use of
US$150 million preferred stock, which the rating agency treated
as 100% equity.  The revised plans eliminate the preferred stock
offering and increase the term loan to US$1.050 billion from
US$1 billion, use US$25 million of borrowings under the
revolving credit facility instead of remaining undrawn at close
and the use of an additional US$75 million of equity to fund the
acquisition of the power system businesses.  Depending on market
conditions, the equity offering could be increased as much as
US$75 million.  Any additional net proceeds would be first
applied to borrowings under the revolver, then the term loan.
The transaction will be completed in the first quarter of 2007.

Ratings affirmed with a stable outlook:

   -- B1 corporate family rating,

   -- B1 probability of default rating, LGD4, 50% loss given
      default assessment,

   -- Ba3 (LGD3, 35%) for the US$1.05-billion senior secured
      term loan maturing in 2014,

   -- Ba3 (LGD3, 35%) for the US$200-million senior secured
      revolving credit facility maturing in 2012,

   -- B3 (LGD5, 87%) for the US$550 million senior unsecured
      notes,

   -- SGL-1 speculative grade liquidity rating

Ratings withdrawn as a result of this action:

   -- B3 (LGD6, 98%) for the US$150 million mandatorily
      convertible preferred stock

The initial B1 corporate family rating reflects the high levels
of debt required to consummate the acquisition of the Power
Systems businesses, modest free cash flow expected in 2007 and
significant reliance on and susceptibility to downturns in the
North American industrial sector.  The ratings acknowledge
Baldor's enhanced competitive position, particularly in the
North American industrial electric motors market, strong brand
recognition, reputation for quality products and strong
operating margins.  Further, the rating agency believes the
Power System businesses fit nicely with the existing Baldor
business resulting in a company capable of providing end to end
solutions through the power conversion cycle.  Despite the
relative size of the transaction, Moody's believes integration
risk will be low and that cost synergies will be modest in the
next two years.  Upward rating momentum will be dependent on the
company's ability to generate strong cash flows and reduce the
acquisition related debt.

The stable outlook reflects Moody's view that the combined
company will grow organically throughout the assimilation
process over the 12 to 18 month period following the acquisition
and that modest free cash flow generation will be used to de-
leverage.  The outlook incorporates an expectation that the
global motor market will continue to expand and that the company
will expand internationally as a result.

The previous rating action for Baldor was the Jan. 9, 2007
assignment of its B1 corporate family ratings, Ba3 senior
secured rating, B3 senior unsecured rating and the B3 preferred
stock rating.

Baldor Electric Company is a leading manufacturer of industrial
electric motors, drives and generators.  Baldor is headquartered
in Fort Smith, Arkansas.  Power Systems is a leading provider of
Dodge power transmission products, including mounted bearings
and enclosed gearing, and Reliance Electric industrial motors,
including large AC and custom, variable speed and specialty, and
small and medium AC motors.  Following this transaction, the
motor business will represent 64% of sales, Dodge 28%, motion
control and drives 7% and generators 2%.  Pro forma revenue for
2006 will likely exceed US$1.8 billion.


BATH BLIND: Creditors' Meeting Slated for January 12
----------------------------------------------------
Creditors of Bath Blind Company Ltd. (Company Number 05139049)
will meet at 11:00 a.m. on Jan. 12 at:

         BDO Stoy Hayward  
         Fourth Floor  
         One Victoria Street  
         Bristol BS1 6AA  
         United Kingdom
         Tel: 0117 934 2800  
         Fax: 0117 922 5191

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. 11 at:

         S E J Gi rling
         Joint Administrator
         BDO Stoy Hayward
         Fourth Floor  
         One Victoria Street  
         Bristol BS1 6AA  
         United Kingdom
         Tel: 0117 934 2800  
         Fax: 0117 922 5191

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.


BRITISH AIRWAYS: Resumes Talks Over Strike Action Today
-------------------------------------------------------
British Airways Plc revealed that talks aimed at averting a
strike action by the Transport & General Workers Union,
representing 11,000 of its cabin crew employees, will resume
today, Jan. 29, James Lumley writes for Bloomberg News.

As previously disclosed, the T&G will carry out a strike
tomorrow and Wednesday until a dispute over sick leave, pay and
staffing is resolved.

According to the Associated Press, BA Chief Executive Willie
Walsh met with union officials last Sunday.

Both parties declined to comment on the said weekend
discussions.

As previously reported in the TCR-Europe on Jan. 26, the T&G
agreed to postpone the first 24 hours of a planned three-day
strike to allow more time for further labor negotiations.

Tony Woodley, general secretary of TGWU, told Bloomberg that the
decision was made after a personal intervention of Mr. Walsh
with union representatives and "as a goodwill gesture."

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 Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                        *     *     *

British Airways carry these ratings:

   * Moody's Investors Service:

      -- Long-Term Corporate Family Rating: Ba1
      -- Senior Unsecured Debt: Ba2
      -- Outlook: Negative

   * Standard & Poor's:

      -- Long-Term Foreign Issuer Credit Rating: BB+
      -- Long-Term Local Issuer Credit Rating: BB+


C J ENTERTAINMENTS: Creditors' Meeting Slated for February 6
------------------------------------------------------------
Creditors of C J Entertainments Ltd. will meet at 11:00 a.m. on
Feb. 6 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.


CABLE & WIRELESS: Philip Green Sells 250,000 Ordinary Shares
------------------------------------------------------------
Philip Green, a person discharging managerial responsibility in
Cable & Wireless PLC, exercised an option over 250,000 Ordinary
Shares in the company and subsequently disposed of his interest
in these shares at a price of 164 pence per Ordinary Share.

Following this disposal, Mr. Green holds a total of 40,882
Ordinary Shares of the Company.

                   About Cable & Wireless

Headquartered in London, Cable & Wireless PLC --
http://www.cw.com/new/-- provides voice, data and IP (Internet  
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
Its principal operations are in the United Kingdom, continental
Europe, Asia, the Caribbean, Panama and the Middle East.

                        *    *    *

Cable & Wireless Plc carry these ratings:

    * Moody's Investors Service
    
      -- Long-Term Corporate Family Rating: Ba3
      -- Senior Unsecured Debt: B1
      -- Short-Term: NP
      -- Outlook: Negative

    * Standard & Poor's

      -- Long-Term Foreign Issuer Credit Rating: BB-
      -- Long-Term Local Issuer Credit Rating: BB-
      -- Short-Term Foreign Issuer Credit Rating: B
      -- Short-Term Local Issuer Credit Rating: B
      -- Outlook: Negative


CAMPBELL COMMUNICATIONS: Creditors' Meeting Slated for Feb. 9
-------------------------------------------------------------
Creditors of Campbell Communications U.K. Ltd. will meet at  
2:30 p.m. on Feb. 9 at:
  
         1 Kings Avenue
         Winchmore Hill
         London N21 3NA
         England
  
A list of names and addresses of the company's creditors will be
available for inspection free of charge on Feb. 7.


CHAPS BARBERS: Creditors' Meeting Scheduled for February 8
----------------------------------------------------------
Creditors of Chaps Barbers (Franchise) Ltd. will meet at  
2:30 p.m. on Feb. 8 at:
  
         1 Kings Avenue
         Winchmore Hill
         London N21 3NA
         England
  
A list of names and addresses of the company's creditors will be
available for inspection free of charge on Feb. 6.


CHESTNUT RESTAURANT: Creditors' Meeting Scheduled for January 31
----------------------------------------------------------------
Creditors of The Chestnut Restaurant Ltd. will meet at 2:00 p.m.
on Jan. 31 at:
  
         Arkin & Co.
         Maple House
         High Street
         Potters Bar
         Hertfordshire EN6 5BS
         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. 30 at the said address.  
  
Mehmet Arkin of Arkin & Co. will furnish creditors with such
information concerning the company's affairs as they may
reasonably require.


CIRCATEX GROUP: Joint Liquidators Take Over Operations
------------------------------------------------------
R. H. Kelly of Ernst & Young and R. D. Fleming of KPMG LLP were
appointed joint liquidators of Circatex Group Ltd. on Jan. 12
for the creditors' voluntary winding-up procedure.

R. H. Kelly can be reached at:

         Ernst & Young LLP
         PO Box 61
         Cloth Hall Court
         14 King Street
         Leeds LS1 2JN
         England

R. D. Fleming can be reached at:

         KPMG LLP
         1 The Embankment
         Neville Street
         Leeds LS1 4DW
         England


COMPASS GROUP: Buys 1 Million Ordinary Shares for Cancellation
--------------------------------------------------------------
Compass Group PLC purchased on Jan. 25, some 1,000,000 ordinary
shares for cancellation at a price of 308.46 pence per share
through Merrill Lynch International.

Following the purchase and upon cancellation of these shares,
the number of ordinary shares of the company in issue with
voting rights will be 2,041,943,783.

                    About the Company

Headquartered in the U.K., Compass Group PLC --
http://www.compass-group.com/-- is the world's leading  
foodservice company, with 400,000 employees specializing in
providing food, vending and related services in over 90
countries, and annual revenues of GBP12 billion.

                           *   *   *

At Sept. 30, 2006, the company's balance sheet showed strained
liquidity with GBP2.503 billion in total assets available to pay
GBP2.533 billion in total liabilities coming due within the next
12 months.


CORUS GROUP: CSN Says Iron Ore Legal Dispute Won't Harm Bid
-----------------------------------------------------------
Brazilian steelmaker Companhia Siderurgica Nacional dismissed
reports that a domestic legal dispute over iron ore supply might
harm its bid for Corus Group plc, Reuters reports.

According to a report in the Financial Times on Thursday,
Companhia Vale do Rio Doce, a Brazilian mining group, would
challenge CSN's ability to supply iron to Corus should its bid
succeed.

Jose Martins, CVRD's director for ferrous operations, told FT
that CVRD would question CSN's ability to ship iron ore under
the terms of a contract signed between the companies in 2001.

"If CSN buys Corus, we will look closely at how the deal is done
to see if our right (to the ore) remains in force," Mr. Martins
said.

CSN, however, reiterated that there was no risk to the iron ore
supplies.  

A spokesman for CSN said, "Should CSN acquire Corus, it will
exercise its rights to supply iron ore from its Casa de Pedra
mine to all its operations, including those in Europe.  There is
no change to our position or our commitment to acquire Corus,"
he added.

FT emphasized that CSN's rights to the iron ore supply is
crucial to its merger plans with Corus.

As previously reported in the TCR-Europe on Jan. 25, the British
Takeover Panel is set to lay down the rules on the auction
process for the acquisition of Corus this week.

The panel said that it requires an auction procedure to
determine Corus' buyer if the "competitive situation" between
Tata Steel U.K. Ltd. and CSN Acquisitions Ltd. remains
unresolved.

The bidders have until tomorrow, Jan. 30 to come up with revised
offers for Corus.

                            CSN Bid

As reported in the TCR-Europe on Dec. 13, 2006, CSN increased
its purchase offer for Corus to US$9.6 billion or 515 pence a
share, topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.  
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says.  Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009.  The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.

                           Tata Offer

As reported in the TCR-Europe on Dec. 11, 2006, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and   
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                       About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported in the TCR-Europe on Nov. 22, 2006, Standard &
Poor's Ratings Services kept its 'BB' long-term corporate rating
on U.K.-based steelmaker Corus Group PLC on CreditWatch with
developing implications, following the announcement by Brazil-
based steel maker Companhia Siderurgica Nacional (BB/Watch Neg/-
-) of a proposed takeover offer worth 475 pence per share.

At the same time, the 'BB+' senior secured bank loan ratings and
'BB-' unsecured debt ratings on Corus remain on CreditWatch with
developing implications.  The 'B' short-term corporate credit
rating remains on CreditWatch with positive implications.  All
ratings were placed on CreditWatch on Oct. 18  following the
announcement of an initial bid for the company from India-based
steel manufacturer Tata Steel Ltd.

In a TCR-Europe report on Oct. 25, 2006, Moody's Investors
Service placed all ratings of Corus Group plc under review with
direction uncertain following the recommendation of the board of
Corus Group in favor of the proposed acquisition of the entire
capital of Corus Group by Tata Steel Ltd.

Ratings affected:

Corus Group plc

    * Ba2 Corporate Family Rating;

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

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

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

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

As reported in the TCR-Europe on Oct. 24, 2006, Fitch Ratings
changed the Rating Watch on Corus Group PLC's Issuer Default and
senior unsecured BB- and Short-term B ratings to Negative from
Positive.  This follows the recommendation by the CS Board of an
offer from India-based Tata Steel Ltd. valued at GBP4.3 billion.

The RWN also applies to these debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

Fitch will resolve the Rating Watch following publication of
CS's 2006 results, further details on the level of synergies and
operational benefits that could accrue under the transaction,
and the closure of the deal.


CORUS GROUP: Takeover Panel Begins Auction Tomorrow
---------------------------------------------------
The British Takeover Panel disclosed that Tata Steel and
Companhia Siderurgica Nacional is set to participate in an
eight-round bidding process tomorrow for the acquisition of
Corus Group Plc, The Economic Times reports.

According to the report, the auction process requires a
difference of at least five pence for each round of the bid.

If a competitive situation continues to exist, a final round
would be held to give a chance to the offerors to outbid the
other within a ceiling approved by the panel, The Economic Times
relates.

The auction is expected to conclude by Feb. 1.

As previously reported in the TCR-Europe on Dec. 20, 2006, the
panel said that it requires an auction procedure to determine
Corus' buyer if the "competitive situation" between Tata Steel
and CSN remains unresolved.

The panel had given the bidders until tomorrow, Jan. 30, to come
up with revised offers for Corus.

                          CSN Bid

As reported in the TCR-Europe on Dec. 13, 2006, CSN increased
its purchase offer for Corus to US$9.6 billion or 515 pence a
share, topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.  
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says.  Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009.  The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.

                           Tata Offer

As reported in the TCR-Europe on Dec. 11, 2006, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and   
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                       About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported in the TCR-Europe on Nov. 22, 2006, Standard &
Poor's Ratings Services kept its 'BB' long-term corporate rating
on U.K.-based steelmaker Corus Group PLC on CreditWatch with
developing implications, following the announcement by Brazil-
based steel maker Companhia Siderurgica Nacional (BB/Watch Neg/-
-) of a proposed takeover offer worth 475 pence per share.

At the same time, the 'BB+' senior secured bank loan ratings and
'BB-' unsecured debt ratings on Corus remain on CreditWatch with
developing implications.  The 'B' short-term corporate credit
rating remains on CreditWatch with positive implications.  All
ratings were placed on CreditWatch on Oct. 18  following the
announcement of an initial bid for the company from India-based
steel manufacturer Tata Steel Ltd.

In a TCR-Europe report on Oct. 25, 2006, Moody's Investors
Service placed all ratings of Corus Group plc under review with
direction uncertain following the recommendation of the board of
Corus Group in favor of the proposed acquisition of the entire
capital of Corus Group by Tata Steel Ltd.

Ratings affected:

Corus Group plc

    * Ba2 Corporate Family Rating;

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

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

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

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

As reported in the TCR-Europe on Oct. 24, 2006, Fitch Ratings
changed the Rating Watch on Corus Group PLC's Issuer Default and
senior unsecured BB- and Short-term B ratings to Negative from
Positive.  This follows the recommendation by the CS Board of an
offer from India-based Tata Steel Ltd. valued at GBP4.3 billion.

The RWN also applies to these debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

Fitch will resolve the Rating Watch following publication of
CS's 2006 results, further details on the level of synergies and
operational benefits that could accrue under the transaction,
and the closure of the deal.


DURA AUTOMOTIVE: Brunswick Hired as Communications Consultants
--------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Dura Automotive Systems Inc.
and its debtor-affiliates to employ Brunswick Group LLC as their
corporate communications consultants, effective as of
Oct. 30, 2006.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Brunswick is expected to:

    (a) prepare materials to be distributed to the Debtors'
        employees explaining the impact of the Reorganization
        Cases,

    (b) draft correspondence to creditors, vendors, employees
        and other interested parties regarding the
        Reorganization Cases,

    (c) prepare written guidelines for head office and location
        managers to assist them in addressing employee and
        customer concerns,

    (d) prepare news releases for dissemination to the media for
        distribution,

    (e) interface and coordinate media reports to contain the
        correct facts and the Debtors' perspective as an ongoing
        business,

    (f) assist the Debtors in maintaining their public image as
        a viable business and going concern during the
        Chapter 11 reorganization process,

    (g) assist the Debtors, and develop internal systems, in
        handling inquiries,

    (h) coordinate public relations services with a third party
        making an investment in the Debtors,

    (i) perform other strategic communications consulting
        services as may be required by the Debtors in the
        Reorganization Cases, and

    (j) provide additional public relations services appropriate
        and necessary to the benefit of the Debtors' estates.

The Debtors will pay Brunswick based on the firm's hourly rates:

             Partner             US$700
             Director            US$550
             Associate           US$450
             AD                  US$325
             Exec                US$225

The Debtors will also reimburse Brunswick for its actual and
necessary out-of-pocket expenses.  Production-related
expenditures -- e.g., photography, printing, etc. -- will be
charged to the Debtors at cost.

The Debtors have made prepetition payments totaling US$227,917
to Brunswick in the year preceding the Petition Date.

The payments have been applied to outstanding invoices and on
account of fees and expenses incurred in providing services to
the Debtors in connection with the restructuring activities.

The payments received include:

    (a) US$91,495 for fees and expenses incurred for periods
        before Oct. 13, 2006, and

    (b) US$136,422 on Oct. 24, 2006.

The Debtors do not owe Brunswick any amount for services
performed or expenses incurred prior to the Petition Date and
thus Brunswick is not a prepetition creditor of the Debtors.

Robert Mead, a partner at Brunswick, assured the Court that his
firm is a "disinterested person" within the meaning of Section
101(14) of the Bankruptcy Code, and it does not hold nor
represent any interest adverse to the Debtors or their estates.

                 About DURA Automotive Systems Inc.

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

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Court Okays AlixPartners as Financial Advisors
---------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Dura Automotive Systems Inc.
and its debtor-affiliates to employ AlixPartners LLP as their
financial advisors, nunc pro tunc to Nov. 7, 2006.

Keith Marchiando, chief financial officer of Dura Automotive
Systems, Inc., related that AlixPartners has a wealth of
experience in providing financial advisory services in
restructurings and reorganizations.

Since its inception in 1981, AlixPartners, its predecessor
entities, and its affiliate, AP Services, have provided
restructuring services in numerous large cases, including most
recently, the Chapter 11 cases of Dana Corp., Calpine Corp.,
Anchor Glass, Atkins Nutritionals, Refco Inc., among others.

Pursuant to an Engagement Letter dated as of Nov. 6, 2006,
AlixPartners agreed to:

   (a) assist in developing one or more financial models that
       will enable Dura Automotive to better predict its future
       cash flows as well as to model the impact of a number of
       restructuring alternatives under consideration, including
       operational changes that will alter the company's
       operating model;

   (b) assist management with the development of Dura
       Automotive's revised 2007 business plan and forecast, and
       other forecasts as may be required;

   (c) assist management in evaluating profitability on a
       part/product line basis;

   (d) assist management in complying with and administering the
       relief granted by certain "first day" orders relating to
       the payment of prepetition obligations, including, but
       not limited to, those of certain "critical trade,"
       "shipping," and "tooling" claimants;

   (e) assist management in negotiations with Dura Automotive's
       various constituents, including customers, vendors and
       debt holders;

   (f) assist Dura Automotive in managing its bankruptcy process
       including working with and coordinating the efforts of
       other professionals representing various stakeholders of
       the Dura;

   (g) assist Dura Automotive, counsel and other advisors in
       fulfilling financial reporting requirements, including
       but not limited to, development of schedules and
       statements and monthly operating reports in any potential
       Chapter 11 restructuring;

   (h) assist and provide other support to counsel in the
       preparation of any Chapter 11 plan of reorganization,
       related disclosure statement or other offering
       memorandum;

   (i) assist in obtaining and presenting information required
       by parties-in-interest in Dura Automotive's bankruptcy
       case including official committees appointed by the by
       the Court and the Court itself;

   (j) assist management in reviewing and enhancing current cost
       reduction initiatives;

   (k) assist as requested in tasks like reconciling, managing
       and negotiating claims, determining preferences and
       collection of same and the like;

   (l) assist Dura Automotive's investment banker in obtaining
       and compiling information that is needed to present the
       Dura or one or more business units to prospective
       purchasers or investors and to further, support those
       efforts assisting with matters such as due diligence and
       obtaining or preparing supplemental information that may
       be needed to obtain maximum value for its stakeholders;

   (m) assist Dura Automotive in developing a liquidation
       analysis;

   (n) assist the Debtors and their investment banker, Miller
       Buckfire & Co., LLC, in the determination of Dura
       Automotive's valuation;

   (o) assist and provide other support to counsel in the
       preparation of any Chapter 11 plan of reorganization,
       related disclosure statement or other offering
       memorandum;

   (p) assist Dura Automotive in maintaining a 13-week cash
       receipts and disbursements forecasting tool designed to
       provide on-time information related to its liquidity;

   (q) assist Dura Automotive in developing an actual to
       forecast variance reporting mechanism including written
       explanations of key differences;

   (r) work with Dura Automotive's treasury group and management
       of the its foreign operations in facilitating cash
       management and repatriation of cash; and

   (s) assist with other matters as may be requested that fall
       within AlixPartners' expertise and that are mutually
       agreeable.

The standard hourly rates, subject to periodic adjustments,
charged by AlixPartners' professionals are:

         Managing Directors                     US$590 to US$750
         Directors                              US$440 to US$550
         Vice Presidents                        US$330 to US$430
         Associates                             US$260 to US$300
         Analysts                               US$190 to US$220

In addition to hourly compensation, the Debtors will pay a
success fee to AlixPartners upon entry of an order by the
Court confirming a Chapter 11 plan of reorganization.  The
Success Fee will be US$3,000,000 if the Confirmation Order is
entered on or before Sept. 30, 2007, provided, however, that, if
the Confirmation Order is not entered prior to Oct. 31, 2007,
the Success Fee will decrease by US$300,000, and will likewise
decrease by US$300,000 on the last day of each succeeding month
through and including Dec. 31, 2007, if the Confirmation Order
is not entered during that month; provided, further, that the
Success Fee will not be less than US$2,100,000.

Any payments on account of the Success Fee will be subject to a
separate application to the Court.  The parties request that the
Court set a future hearing date for approval of the terms of the
Success Fee.

Moreover, AlixPartners will seek reimbursement for reasonable
and necessary expenses incurred in connection with the Debtors'
Reorganization Cases, including transportation costs, lodging,
food, telephone, copying, and messenger services.

The indemnification provisions contained in the Engagement
Letter are waived pursuant to AlixPartners' Protocol with the
U.S. Trustee.

Anthony C. Flanagan, managing director at AlixPartners, assured
the Court that, except as disclosed, the firm:

   (a) has no connection with the Debtors, their creditors, or
       other parties-in-interest in the Debtors' Chapter 11
       cases,

   (b) does not hold any interest adverse to the Debtors'
       estates, and

   (c) is a "disinterested person" as defined by section 101(14)
       of the Bankruptcy Code.

                 About DURA Automotive Systems Inc.

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

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Judge Carey Okays Ernst & Young as Tax Advisors
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Dura Automotive Systems Inc.
and its debtor-affiliates to employ Ernst & Young as tax
advisory and risk advisory services providers, nunc pro tunc to
Oct. 30, 2006.

As reported in the Troubled Company Reporter on Jan. 2, 2007,
the Debtors engaged on May 6, 2005, Ernst & Young to provide
internal audit services, services with respect to compliance
with Section 404 of the Sarbanes-Oxley Act of 2002, and loaned
staff services.

The services of Ernst & Young are necessary to enable the
Debtors to maximize the value of their estates and to reorganize
successfully.

The firm is expected to provide tax advisory services to the
Debtors:

   (1) FIN 48 implementation services, which include assisting
       the Debtors in assessing their current controls and
       processes employed in the financial reporting of
       uncertain tax positions, and in making appropriate
       revisions to meet the requirements under Sarbanes-Oxley
       Section 404 and other financial reports;

   (2) international compliance review services, including a
       review of information to be filed with the U.S. Internal
       Revenue Service and all related calculations the Debtors
       have identified as material, or that may need managerial  
       review; and

   (3) routine on-call tax advisory services.

The risk advisory services the firm will provide are:

   (a) internal audit reaming services, including risk
       assessment, audit plan and execution;

   (b) business risk services ongoing assistance related to
       Section 404 of the Sarbanes-Oxley Act of 2002, including
       the preparation of the Debtors' documentation, testing
       and evaluation of internal controls over financial
       reporting for their significant accounts and processes;

   (c) tax risk advisory services ongoing assistance related to
       Section 404 of the Sarbanes-Oxley Act of 2002, including
       assistance to management in the preparation of its
       documentation, testing, and evaluation of internal
       controls over financial reporting for the Company's state
       and federal tax income tax provision;

   (d) loan staff discrete projects in conjunction with share
       service center projects including designing a centralized
       check disbursement process and the creation of a cash
       disbursements journal on a "loaned staff" basis; and

   (e) technology and security risk services and information
       technology services, including assisting Dura Internal
       Audit with testing IT general and application controls in
       both the North American and European regions.

Ernst & Young will coordinate any services performed at the
Debtors' request with the Debtors' other professionals to avoid
duplication of effort.

The Debtors will pay Ernst & Young based on its standard hourly
rates:
                                                   Loaned Staff
   Level             BRS     TSRS/IT       Tax       Services
   -----             ---     -------       ---       --------
   Partner        US$340     US$359     US$595          N/A
   Senior Manager    242        328        464          N/A
   Manager           196        291        323       US$196
   Senior            132        223        226          132
   Staff             113        162        226          113

The Debtors requested a single "global" retention, whereby the
vast international resources of Ernst & Young could be brought
to meet the Debtors' needs, including non-Debtor foreign
affiliates, while maintaining clarity that all duties are owed
to the Debtors.  

The Engagement Letter provides that in rendering services to the
Debtors, the firm may subcontract a portion of the services to
certain other Ernst & Young affiliates, including other member
firms of Ernst & Young Global Ltd. or its affiliates.

Ernst & Young intends to pay EYGL member firms directly for
their services and apply for reimbursement by the Debtors of any
payments made any Ernst & Young to the EYGL Member Firms.  

The Debtors will indemnify Ernst & Young for any claim arising
from, related to or in connection with its performance of
services to the Debtors.  The Debtors will have no obligation to
indemnify any person, or provide contribution or reimbursement
for any claim or expense arising from gross negligence or
willful misconduct.

Randall J. Miller, the coordinating principal for Ernst & Young,
assured the Court that the firm is a disinterested person, as
defined in Section 101(14) of the Bankruptcy Code.

                 About DURA Automotive Systems Inc.

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

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


GENERAL MOTORS: Delays Filing of 2006 4th Qtr. & Annual Reports
---------------------------------------------------------------
General Motors will be delaying the announcement of its 2006
year-end and fourth quarter financial results but expects to
report improved performance in its automotive business,
including record fourth quarter revenue in 2006.  The company
also said that it will restate its financial statements,
primarily due to pre-2002 tax accounting adjustments.

GM indicated that its deferred tax liabilities, as previously
disclosed in its results for the third quarter of 2006 and prior
periods, were overstated due to errors that originally occurred
primarily before 2002.  While these errors do not impact cash
flow or previously reported cash balances, retained earnings as
of Dec. 31, 2001, and subsequent periods were understated by a
range of US$450 million to US$600 million as a result.

In light of recent focus on accounting under Statement of
Financial Accounting Standard 133, Accounting for Derivative
Instruments and Hedging Activities, GM is reviewing its
accounting in this area.  While this review is still ongoing, GM
currently anticipates that it will make accounting restatements
in this area, and the completed review may result in additional
restatements that could be material.  GM also is assessing
various other miscellaneous adjustments for 2002 through 2006,
and believes these adjustments, individually and collectively,
will not be material on a consolidated basis.

As a result of these anticipated adjustments related to the
deferred tax liabilities, hedging activities and other
miscellaneous items, GM will be restating its financial
statements for 2002 through the third quarter of 2006.  GM does
not expect any material impact on cash flow.

In addition, GMAC has informed GM that it continues to finalize
its financial statements for 2006 and its balance sheet as of
Nov. 30, the date of the sale of 51% of the equity of GMAC.  As
a result, GMAC advised GM that it is not yet able to provide the
financial information needed to complete GM's fourth quarter
financial results.

Based on these factors, GM will delay the announcement of its
2006 year-end and fourth quarter financial results, previously
planned for Jan. 30, 2007, pending resolution of outstanding
accounting issues and final GMAC financial results.

GM intends to provide further information on the progress of its
financial reporting during the week of Feb. 5.  The Corporation
currently anticipates that it will file its annual report on
Form 10-K by its due date of March 1, 2007.

Separately, in terms of operations, GM continued to demonstrate
improved performance in its automotive business, with record
fourth quarter revenue in 2006.  The company expects to be
profitable on a reported consolidated basis in the 2006 fourth
quarter, and net income is expected to improve significantly
over the fourth quarter of 2005.  GM also further improved its
liquidity position, ending the year with around US$26.4 billion
in cash and equivalents (including US$2.5 billion of readily
available VEBA assets), an increase of about US$5.9 billion over
year-end 2005.

GM reportedly implemented Statement of Financial Accounting
Standards 158, a new accounting standard for pension and other
post-retirement benefits effective Dec. 31, 2006.  Adoption of
this standard will result in negative stockholders' equity on a
book value basis.  For the third straight year, the company's
U.S. pension funds performed strongly, with asset returns of 15%
for 2006.  As a result, including the impact of significant
employee attrition in 2006, GM's U.S. hourly and salary plans
(as measured by Statement of Financial Accounting Standards 87)
ended the 2006 calendar year over-funded by US$17 billion.

                     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 284,000
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 Troubled Company Reporter-Europe on
Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating and other ratings on General Motors
Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006.  S&P said
the outlook is negative.

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
Corp.


GENERAL MOTORS: May Shift Responsibility of Retiree Benefits
------------------------------------------------------------
General Motors Corp., Ford Motor Corp., and the United Auto
Workers union are discussing a plan to transfer billions of
dollars of retiree healthcare obligations to the union, The Wall
Street Journal reports, citing people familiar with the matter.

The parties are determined to restructure the automotive
industry without the need for the automakers to file for
bankruptcy protection, WSJ says.

According to Reuters, GM hired the advisers who worked on a deal
between Goodyear Tire & Rubber Co. and the United Steelworkers
union.

                     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 284,000
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 Troubled Company Reporter-Europe on
Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating and other ratings on General Motors
Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006.  S&P said
the outlook is negative.

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
Corp.


HUNTSMAN CORP: UK Unit Completes US$685-Mln Equity Sale to SABIC
----------------------------------------------------------------
Huntsman Petrochemicals (U.K.) Holdings, a subsidiary of
Huntsman Corp., completed a sale of all its outstanding equity
interests to SABIC (U.K.) Petrochemicals Holdings Ltd., for
US$685 million in cash plus the assumption by SABIC (U.K.) of
around US$126 million in unfunded pension liabilities.

The sale was completed on Dec. 29, 2006, with Huntsman
International LLC serving as guarantor for Huntsman
Petrochemicals, and SABIC Europe B.V., as guarantor for SABIC
(U.K.).

The final purchase price is subject to adjustments relating to
working capital, investment in Huntsman's LDPE plant currently
under construction in Wilton and unfunded pension liabilities.

Each of Huntsman Petrochemicals (U.K.) Ltd., Huntsman
Petrochemicals (U.K.) Holdings and Huntsman International LLC is
a wholly owned subsidiary of Huntsman Corp.  As a result of this
transaction, SABIC has acquired Huntsman's European base
chemicals and polymers business.  The transaction did not
include Huntsman's Teesside-based Pigments division or the
Wilton-based aniline and nitrobenzene operations of its
Polyurethanes division.

                        About Huntsman

Huntsman Corp. -- http://www.huntsman.com/-- manufactures and  
markets differentiated and commodity chemicals.  Its operating
companies manufacture products for a variety of global
industries including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care, detergent, personal care,
furniture, appliances and packaging.  The company maintains
operations in Argentina, Australia, Brazil, China, Germany, and
the United Kingdom, among others.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 16,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating and other ratings on Salt Lake City, Utah-based
chemicals producer Huntsman Corp. and its subsidiary Huntsman
International LLC.

As reported in the TCR-Europe on Nov. 2, 2006, Moody's Investors
Service assigned a B3 rating to Huntsman International's
proposed US$400 million senior subordinated notes.  Moody's also
assigned Loss Given Default Assessment of LGD6 to these notes in
accordance with its Loss-Given-Default rating methodology that
was initially implemented at the end of September 2006.


INDEPENDENT NEWS: Fitch Puts BB- IDR on Revised Leveraged Buyout
----------------------------------------------------------------
Fitch Ratings placed Independent News & Media Plc's Issuer
Default rating of 'BB-' on Rating Watch Evolving following the
announcement of a leveraged buyout of its 41% subsidiary APN
News & Media Ltd.

Under the announced plan, which follows a similar structure to
that announced in October 2006 and subsequently aborted, a
private equity group comprising Providence Equity Partners and
The Carlyle Group will buy out all the share capital of APN for
AUD3.8 billion using a leveraged acquisition vehicle.  IN&M will
then reinvest some of the proceeds of the share sale to give it
a 40% stake in the vehicle.  The transaction is expected to
release significant cash, around AUD600 million or EUR350
million to IN&M, which could be used for international
acquisitions, maximization of shareholder returns, or general
corporate purposes.  It remains unclear whether the company has
any plans to apply some of this cash to de-leveraging, though
this remains a possibility.  Following the deal, Fitch
understands IN&M will manage and run the entity, but will not
retain control, leading to APN being accounted for as an
associate, rather than consolidated.

The previous plan was terminated following a failure by the
parties to reach agreement on the final terms of the deal.  
Fitch highlighted at the time that there was every possibility
that the deal would be revisited.

"There remain sound strategic reasons for the move, and the new
deal price is not substantially higher than the original offer,"
says Alex Griffiths, Director in Fitch's European TMT team.  
"The rating impact will depend very much on the deal's
structure, the nature of debt issued by the acquisition vehicle
and the use to which the proceeds are put.  Operationally, the
growth benefits of allowing the group to pursue its
international expansion strategy are diluted by some loss of
control of APN, which will become a higher-risk asset, and an
increased risk profile for the group as a whole as its exposure
to emerging markets rises.  Using part of the cash to de-
leverage would offset some of this risk."

The Evolving Watch reflects Fitch's view that, were this deal to
conclude, the rating could remain at its current level, or move
up or down.  Based on the current details of the deal, and
Fitch's expectations, there remains a strong possibility that
the rating will be affirmed at its current level.  This
anticipates some of the deal proceeds being used to pay down
debt at IN&M level to keep the group within its stated leverage
targets, offset by increased business risk in the group as a
whole.  The increase in business risk is a result of the less
liquid nature and lower value of IN&M's investment in APN
following the transaction, and an expectation of lower dividend
income.

By its measure, IN&M's leverage is below its target for
consolidated net debt/EBITDA of 2.5-3.5x. To the extent that the
deconsolidation of APN aligns management's target to Fitch's
methodology, which adjusts leverage metrics for IN&M's minority
ownership in APN by stripping out APN's earnings and debt from
the group's metrics and including only dividend streams, this
could lead to lower leverage expectations, which would be rating
positive. A more aggressive leverage policy in the face of
increased business risk would be rating negative.

The Evolving Watch will be resolved when the deal closes or is
abandoned.  APN accounted for 61% of IN&M's consolidated
operating profit in FY05, and contributed EUR24 million in
dividends to the group.


SOLUTIA INC: Completes Upsizing of US$1.225-Bln DIP Financing
-------------------------------------------------------------
Solutia Inc. has completed the extension and upsizing of its
debtor-in-possession credit facility at a reduced interest rate.
Solutia's US$1.225 billion amended DIP credit facility matures
March 31, 2008.  This represents a US$400 million increase and a
one-year extension over Solutia's prior DIP financing.

The interest rate for the US$975 million term loan portion of
the DIP credit facility is LIBOR plus 300 basis points, a 50
basis point reduction from the rate on the previous US$650
million of term loans.  The interest rate for the US$250 million
revolver portion of the DIP credit facility is unchanged from
the rate of LIBOR plus 225 basis points that applied to the
previous US$175 million revolver.

The increased availability under the DIP financing provides
Solutia with further liquidity for operations and the ability to
fund mandatory pension payments that comes due in 2007.  Up to
US$150 million of the increased availability will be used to
facilitate the purchase of Akzo Nobel's stake in its 50%/50%
rubber chemicals joint venture with Solutia, known as Flexsys.
Solutia can repay the DIP credit facility at any time without
prepayment penalties.  Citigroup acted as lead arranger in the
successful syndication of the financing.

                       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. 77; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


TI AUTOMOTIVE: Moody's Downgrades Corporate Family Rating to B3
---------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of TI Automotive Ltd to B3 from B1; the rating for the senior
secured bank facility was downgraded from B1 to B2.  Both
ratings remain under review for possible downgrade.  The last
rating action was on Oct. 6, 2006.

The downgrade of the company's corporate family rating to B3
from B1 reflects:

   (i) the accelerated erosion in the company's operating
       performance in the second half of 2006 as a result of
       lower automotive production volumes in the North American
       market, continuous price reduction requests and rising
       raw material prices;

  (ii) the high financing cost exerting pressure on operating
       cash flow;

(iii) limited prospects in 2007 for reversing the negative free
       cash flows expected for fiscal year 2006; and

  (iv) the company's reliance on continued support by its core
       banks in addressing tightening headroom under financial
       covenants and a refinancing of GBP207 million December
       2007 debt maturities.

The ratings for the company's senior secured bank facility have
been downgraded by one notch only from B1 to B2, reflecting
their senior position in the capital structure and Moody's
expectation of a relatively high recovery rate in a possible
scenario of a financial restructuring.

In Moody's view TI's solid operating performance in Europe and
Asia may not have been sufficient to offset its eroding
operating performance levels in the North American market in
recent months.  As a result, the rating agency expects
substantial pressure on EBITDA in the fiscal year 2006.
Specifically, production volumes have been significantly
affected by the recent accelerated market share erosion of TI
Auto's key customers Ford (rated B3), GM (rated Caa1) and
DaimlerChrysler (rated Baa1) in the North American market as a
result of changing consumer preferences towards more fuel-
efficient vehicles which are particularly offered by Asian OEMs
and which are under-represented in TI Auto's customer structure.
In addition, TI was not able to fully pass on rising raw
material costs in light of additional price reduction requests
by the OEMs.

Despite weakening operating performance levels, Moody's views TI
Auto's business model as solid, evidenced by:

   (1) its strong market position as an automotive supplier of
       fluid-carrying systems, fuel storage and delivery
       systems;

   (2) its diversification by region;

   (3) its presence on a wide array of platforms, a solid
       contracted order book as well as its proven track record
       of new product introduction; and

   (4) the substantial barriers to entry within the industry.

However, these qualitative strengths are offset by TI Auto's
highly leveraged capital structure, resulting in constant
pressure on operating cash flow due to high financing cost.  TI
Auto's highly leveraged capital structure, as evidenced by its
RCF to Net Debt ratio of 8.4% at the end of 2005 is likely to
have weakened further in 2006.  In addition, TI Auto is faced
with continuous financing needs to fund ongoing capex and
technology investments to pre-finance orders as well as to
finance additional operational restructuring measures to
accelerate cost reductions and capacity adjustments, considering
that the developments in the North American market could reflect
a more structural shift over the medium term.  These additional
measures are inevitable to reduce negative free cash flows,
which would be important to strengthen the company's liquidity
position.

Moody's rating review will focus:

   (1) on the company's plans to secure reliable funding for its
       negative free cash flows and to refinance debt maturing
       in December 2007; and

   (2) the company's measures to remedy operating performance
       shortfalls and reverse cash consumption.

Downgrades:

   * TI Automotive Ltd.

     -- Corporate Family Rating, Downgraded to B3 from B1

     -- Senior Secured Bank Credit Facility, Downgraded to B2
        from B1

Headquartered in Oxford, England and Warren, Michigan, TI Auto
is a leading global designer, manufacturer and vertically
integrated supplier of automotive fuel storage and delivery
systems, brake and fuel-carrying systems and air conditioning
systems.  In 2005, TI Auto reported consolidated sales of
GBP1.5 billion.


VISKASE COS: S&P Affirms Junk Rating After Equity Offering
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC' corporate
credit rating on Viskase Cos. Inc. and removed the rating from
CreditWatch with negative implications where it was placed on
Feb. 1, 2006.  All other ratings were also affirmed and removed
from CreditWatch.  The outlook is negative.  

Darien, Illinois-based Viskase had around US$124 million of
total debt outstanding at Sept. 30, 2006.

"The ratings affirmation follows the recent completion of the
company's US$24 million preferred equity offering.  Viskase used
proceeds to repay US$14 million of revolving credit facility
borrowings outstanding, alleviating liquidity pressures in the
immediate term," said Standard & Poor's credit analyst Robyn
Shapiro.  "However, the company's ability to improve weak
earnings to a level sufficient to meet its heavy interest burden
in the next 12 months is critical at the current ratings.  In
addition, seasonal working capital needs and capital spending
could pressure liquidity in the near term if business results
fail to improve."

The ratings on Viskase reflect its vulnerable business risk
profile as a global producer in the highly competitive casings
niche within the packaging industry, and narrow scope of
operations.  The ratings also take into account the company's
highly leveraged financial risk profile after emerging from
Chapter 11 bankruptcy protection in April 2003.  Partially
offsetting factors include steady end markets and diversified
customer relationships.

With annual sales of about US$200 million, Viskase is a global
producer of nonedible cellulosic, fibrous, and plastic casings
used to prepare and package processed meat products.

The company's weak financial condition increases vulnerability
to lower ratings and default if business conditions remain
unchanged or worsen.  Viskase's weak earnings and negative cash
flow over the past year call into question its ability to meet
its heavy interest burden in the next 12 months.  The ratings
could be lowered in the near term if Viskase does not generate
positive cash flow, diminishing liquidity further.  However, if
the company maintains sufficient liquidity and credit measures
and operating results begin to strengthen, the outlook could be
revised to stable.

                           *********

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

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

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel P. Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A.
Godinez, and Pius Xerxes Tovilla, Editors.

Copyright 2007.  All rights reserved.  ISSN 1529-2754.

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                 * * * End of Transmission * * *