---

        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

           Friday, December 15, 2006, Vol. 7, No. 249

                            Headlines


A U S T R I A

BAWAG PSK: Cerberus Capital Tops Sale With EUR3.2 Billion Bid
CHRISTIAN HEISSENBERGER: Creditors' Meeting Slated for Dec. 19
EDUARD PESCHEK: Creditors' Meeting Slated for December 21
GAUSTER ELEKTROENERGIE: Creditors' Meeting Slated for Dec. 21
GESELLSCHAFT FUER: Creditors' Meeting Slated for December 19

POWER CONNECTION: Claims Registration Period Ends December 19


B U L G A R I A

VARNA SHIPYARD: Court to Rule on Bankruptcy After Today's Mtg.


C Z E C H   R E P U B L I C

ALCATEL-LUCENT: Upgrades Telecom New Zealand's Mobile Broadband
ON SEMICONDUCTOR: Proposes US$400-Mln Sr. Sub. Notes Offering


D E N M A R K

KALMAR STRUCTURED: Moody's Ba2 Rating on Class C Notes on Review


F I N L A N D

METSO OYJ: Draws EUR100-Mln Loan from European Investment Bank
METSO OYJ: Launches New Paper Machine Production Site in China


F R A N C E

ALCATEL-LUCENT: Upgrades Telecom New Zealand's Mobile Broadband
CONVERIUM AG: Completes Sale of North American Operations
COREL CORP: Acquires InterVideo Inc. for US$198.6 Million Cash
REMY COINTREAU: Chairman Dismisses Rumors on Likely Sale


G E R M A N Y

BK GASTRO: Claims Registration Ends December 20
CINEMED INTERNATIONAL: Claims Registration Ends December 18
DAIMLERCHRYSLER AG: Swap Trades Actively, Report Says
EUROTUNNEL GROUP: Bondholders Vote on Restructuring Plan
EUROTUNNEL GROUP: Oaktree Files Petition to Review Nov. 27 Vote

FLAPO-HOLZVERTRIEBS: Claims Registration Ends December 19
FVG FLEISCH: Claims Registration Ends December 20
HANS A E: Claims Registration Ends December 19
KARL-HEINZ: Claims Registration Ends December 18
LOBREYER GMBH: Claims Registration Ends December 18

NOWA SPECIAL: Claims Registration Ends December 20
PROMISE-COLOR: Fitch Affirms Low-B Ratings on EUR49.95-Mln Notes
ROAD RUNNER: Claims Registration Ends December 20
UPDATE MARKETING: Claims Registration Ends December 19
VOLKSWAGEN AG: Denies Concrete Merger Plans with MAN & Scania

WEBER VACUDRY: Claims Registration Ends December 20


I R E L A N D

EUROCREDIT CDO: Moody's Rates EUR20-Mln Class E Notes at (P)B2


I T A L Y

ALITALIA SPA: Italy to Unveil Stake Sale Terms by Yearend
ALITALIA SPA: Tod's S.p.A.'s Diego Della Valle to Enter Bid
METSO OYJ: Draws EUR100-Mln Loan from European Investment Bank
METSO OYJ: Launches New Paper Machine Production Site in China
PMI UNO: Fitch Affirms BB Rating on EUR4.9-Mln Class D Notes

PMI 2 FINANCE: Fitch Affirms BB Rating on EUR6.2-Million Notes
TISCALI SPA: Wind Chairman Naguib Sawiris Mulls Acquiring Firm
VENUS-1 FINANCE: Fitch Assigns BB Rating on EUR6.5-Million Notes
WIND TELECOMUNICAZIONI: Defers IPO Pending Consolidation Result


K A Z A K H S T A N

AKM & K: Creditors Must File Claims by Jan. 23, 2007
ALTAI SERVICE: Court Opens Bankruptcy Proceedings
BLAGOUSTROISTVO: Creditors' Claims Due Jan. 16, 2007
ELECTRIC SERVICES: Claims Filing Period Ends Jan. 24, 2007
HALYK SAVINGS: Prices Global Depositary Receipts at US$16 Each

KAZ AUTO BRIDGE: Proof of Claim Deadline Set for Jan. 26, 2007
OTRAR CJSC: Claims Registration Ends Jan. 24, 2007
PROGRESS LLP: Creditors Must File Claims by Jan. 23, 2007
UMIT CJSC: South Kazakhstan Court Starts Bankruptcy Procedure


K Y R G Y Z S T A N

UR & COMPANY: Creditors Must File Claims by Feb. 1, 2007


L I T H U A N I A

MAZEIKIU NAFTA: PKN Orlen Seeks Compensation for October Fire


N E T H E R L A N D S

YUKOS FINANCE: PKN Orlen Seeks Damages for Mazeikiu Nafta Fire


P O L A N D

LUKOIL OAO: Inks Cooperation Deal with Russia's Nentsk District
LUKOIL OAO Inks Deal Protocol with St. Petersburg Government


P O R T U G A L

FERRO CORP: Files First & Second Quarter Financial Reports
GENERAL MOTORS: S&P Affirms B Corporate Credit Rating


R U S S I A

ACCESSIBLE DWELLING: Moscow Court Starts Bankruptcy Supervision
BUILDER LLC: Court Names V. Yurin as Insolvency Manager
BUILDER OJSC: Court Names M. Shumakov as Insolvency Manager
BUILDING COMPANY-1: Court Names A. Kubasov as Insolvency Manager
IZOPLAST CJSC: Court Names R. Gaynetdinov as Insolvency Manager

KAMESHKOVSKIY BAKERY: Court Names M. Sevryukov to Manage Assets
KARGOM-DIAMOND CJSC: Bankruptcy Hearing Slated for April 3
KUBOVSKIY WOOD-PROM-KHOZ: Names A. Pirogov to Manage Assets
KURKINO-AGRO-SERVICE: Court Names G. Voropaev to Manage Assets
LUKOIL OAO: Inks Cooperation Deal with Russia's Nentsk District

LUKOIL OAO Inks Deal Protocol with St. Petersburg Government
MALYSHEVSKIYE EMERALDS: Names A. Shabarova to Manage Assets
NEVINNOMYSSKIY WOOL: External Court Starts Bankruptcy Procedure
SEVERNYJ LLC: Court Names A. Fazlyev as Insolvency Manager
TALITSKAYA BUILDING: Court Starts Bankruptcy Supervision

TARNOGSKIY WOOD-PROM-KHOZ: Court Hearing Slated for March 12
YUKOS OIL: PKN Orlen Seeks Compensation for Mazeikiu Nafta Fire


S L O V A K   R E P U B L I C

TUBE CITY: Proposed Buyout Cues Moody's B1 Corp. Family Rating


S L O V E N I A

STEKLARNA ROGASKA: Glassmaker Exits Bankruptcy Protection


S P A I N

DAIMLERCHRYSLER AG: Swap Trades Actively, Report Says


S W E D E N

KALMAR STRUCTURED: Moody's Reviews Ba2 Ratings & May Downgrade
STRATOS GLOBAL: S&P Cuts Rating to B on Weak Operating Results


S W I T Z E R L A N D

AUPESA TRADING: Binningen Court Starts Bankruptcy Proceedings
BSF GEBAUDE: Court Suspends Bankruptcy Proceedings
CARROSSERIE SPRITZWERK: Court Starts Bankruptcy Proceedings
CONVERIUM AG: Completes Sale of North American Operations
DREAMWORLD LLC: Binningen Court Suspends Bankruptcy Process

G + F MALERGESCHZFT: Liestal Court Starts Bankruptcy Proceedings
GASTRO INN: Arlesheim Court Starts Bankruptcy Proceedings
KARDEX AG: Board Eyes Restructuring at AFT Division
KOOILUST INFLATION: Zug Court Starts Bankruptcy Proceedings
MSK IMMO: Court Closes Bankruptcy Proceedings

RE ALLFINANZ-PARTNER: Court Suspends Bankruptcy Proceedings
SOUNDS GOOD: Basel-Stadt Court Suspends Bankruptcy Proceedings


T U R K E Y

PETKIM PETROKIMYA: Fitch Affirms BB Issuer Default Ratings


U K R A I N E

STIROL JSC: BSTDB Waives Covenant Breaches Under Loan Agreement
STIROL JSC: Earns UAH181.6 Million for First Six Months of 2006


U N I T E D   K I N G D O M

ANGLOMAR SHIPPING: Appoints Liquidator from Leonard Curtis
AVECIA GROUP: Incurs GBP17.4-Mln Net Loss for Six Months 2006
AVECIA GROUP: Moody's Confirms Junk Corporate Family Rating
CARWASH@WORK LTD: Hires UHY Hacker to Administer Assets
CARWASHATWORK (NORTHERN): Appoints Administrators from UHY

CELESTICA INC: Expects Lower 2006 4th Quarter Revenues & Profits
CELESTICA INC: Appoints Craig Muhlhauser President & CEO
COLLINS & AIKMAN: Taps Leading Bidder for Soft Trim Biz Purchase
CROWN HOLDINGS: Noteholders Agree to Incur US$200-Million Debt
D & R FINISHERS: Claims Filing Period Ends Jan. 11, 2007

EMI GROUP: Ends Takeover Talks with Permira Advisers
EUROTUNNEL GROUP: Bondholders Vote on Restructuring Plan
EUROTUNNEL GROUP: Oaktree Files Petition to Review Nov. 27 Vote
FORD MOTOR: In Talks With Wanxiang Over Sale of Certain Assets
FORD MOTOR: EVP Mark Schulz to Retire Early Next Year

GENERAL MOTORS: S&P Affirms B Corporate Credit Rating
HPJ UK: Creditors' Meeting Slated for December 22
GREAT HALL: Moody's Rates GBP5.6-million Class Ea Notes at Ba2
GREAT HALL: Fitch Assigns BB Rating on GBP5.6-Million Notes
HYDRA FOOD: Taps Baker Tilly to Administer Assets

INTROBOND LIMITED: Paul Appleton Leads Liquidation Procedure
JMR LIGHTING: Hires Administrators from DTE Leonard Curtis
LABEL LINK: Taps Ian S. Carr to Liquidate Assets
M.P. MANIPULATED: Names Administrators from Begbies Traynor
MARCMANOR LIMITED: Names Terry Christopher Evans Liquidator

NASDAQ STOCK: Makes Final GBP2.7-Billion Takeover Bid for LSE
OCA RESTAURANTS: Creditors' Meeting Slated for January 3
ONE WAY: Appoints Administrators from Rothman Pantall
PAPLAND LIMITED: Brings In Liquidator from Marks Bloom
PLYFORM PRODUCTS: Creditors' Meeting Slated for January 4

REFCO INC: Judge Drain Extends Removal Period to January 9
REFCO INC: Taps Sonnenschein Nath as Special Litigation Counsel
SANDHU MENSWEAR: Creditors' Meeting Slated for December 21
SAUNDERS AND SHEPHERD: Hires Liquidator from Benedict Mackenzie
STRATOS GLOBAL: S&P Cuts Rating to B on Weak Operating Results

T. J. RILEY: Brings In Joint Administrators from PwC
TATTON BUILD: Appoints Gary J. Corbett to Liquidate Assets
TERRY'S PRIVATE: Creditors Claims Due March 5, 2007
TISCALI SPA: Wind Chairman Naguib Sawiris Mulls Acquiring Firm
UPPER DECK: Joint Liquidators Take Over Operations

* BOOK REVIEW: Cardozo and Frontiers of Legal Thinking: With
               Selected Opinions

                            *********

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


BAWAG PSK: Cerberus Capital Tops Sale With EUR3.2 Billion Bid
-------------------------------------------------------------
Osterreichischer Gewerkschaftsbundhad has agreed to sell Bawag
P.S.K. to a consortium led by Cerberus Capital Management L.P.
for EUR3.2 billion, Bloomberg News reports citing a source privy
to the deal.

According to the source, Cerberus will pay around EUR2.6 billion
for the assets and inject EUR600 million into Bawag.

As reported in the TCR-Europe on Nov. 28, Cerberus Capital was
one of the remaining potential bidders for the Bawag assets,
along with Bayerische Landesbank and Lone Star Funds.

Reuters earlier noted that the fourth bidder was one of firms
that were able to perform due diligence on the company's
accounts.  According to sources, the fourth bidder might be
Apollo, Allianz AG, and J.C. Flowers & Co.

As previously disclosed, the final buyer was selected mainly
based on legal and job guarantees, as well as its capability to
undertake risks brought by possible accounting issues.  The
winning bidder has to inject fresh capital into Bawag to
partially cover a EUR900 million state-guarantee.  The sources,
however, said the figure would be up to the buyer.

Morgan Stanley began inviting bids after Bawag inked a US$675
million settlement deal with Refco Inc. investors.  Around 40
parties submitted their bids for the Austrian bank.

OeGB placed Bawag on the trading table following the bank's
alleged role in the collapse of Refco Inc.

The bank is currently the focus of an in-depth probe by Austrian
prosecutors over a US$2-billion loss scandal.

                         About BAWAG

Headquartered in Vienna, Austria, BAWAG P.S.K. (Bank fur Arbeit
und Wirtschaft AG) is an Austrian universal bank founded in 1922
by former Austrian Chancellor Karl Renner.  As of 2004, the
bank's majority shareholder was the OGB (Osterreichischer
Gewerkschaftsbund), the Austrian Trade Union Federation.  The
bank had total consolidated assets of EUR56 billion as of
Dec. 31, 2004.

                        *     *     *

As reported in the TCR-Europe on May 11, Moody's downgraded
BAWAG P.S.K's

   -- financial strength rating (BFSR) to D- from C-;
   -- Tier 1 debt rating to Baa3 from Baa2.

Both ratings remain under review for possible downgrade.  At the
same time, Moody's has also downgraded to Prime-2 with stable
outlook from Prime-1 the bank's short-term debt and deposit
rating.  The A3 long-term debt and deposit ratings and the Baa1
subordinated debt rating remain on review for possible
downgrade.

These ratings were downgraded as part the rating action:

   -- BAWAG P.S.K.: bank financial strength rating from C- to
      D-;

   -- BAWAG P.S.K.: short-term rating from P-1 to P-2;

   -- BAWAG P.S.K. CAPITAL Finance (Jersey) Ltd.: debt and
      deposit rating to Baa3 from Baa2;

   -- BAWAG P.S.K. Capital Finance (Jersey) II Ltd.: debt and
      deposit rating to Baa3 from Baa2; and

   -- BAWAG P.S.K. Capital Finance (Jersey) III Ltd.: debt and
      deposit rating to Baa3 from Baa2.

These ratings are under review for possible downgrade:

   -- BAWAG P.S.K.: bank financial strength rating of D-;
   -- BAWAG P.S.K.: long-term debt and deposit.


CHRISTIAN HEISSENBERGER: Creditors' Meeting Slated for Dec. 19
--------------------------------------------------------------
Creditors owed money by LLC Christian Heissenberger (FN 117916g)
are encouraged to attend the creditors' meeting at 9:15 a.m. on
Dec. 19 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 25 (Bankr. Case No. 4 S 153/06m).  Susi Pariasek serves
as the court-appointed property manager of the bankrupt estate.  
Beate Holper represents Dr. Pariasek in the bankruptcy
proceedings.

The property manager and his representative can be reached at:

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


EDUARD PESCHEK: Creditors' Meeting Slated for December 21
---------------------------------------------------------
Creditors owed money by LLC Dipl.Ing. Eduard Peschek (FN
116477s) are encouraged to attend the creditors' meeting at
12:15 p.m. on Dec. 21 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1701
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 25 (Bankr. Case No. 6 S 99/06k).  Michael Ludwig Lang
serves as the court-appointed property manager of the bankrupt
estate.  Martin Koroschetz represents Mag. Lang in the
bankruptcy proceedings.

The property manager and his representative can be reached at:

         Mag. Michael Ludwig Lang
         c/o Dr. Martin Koroschetz
         Maria-Theresien-Road 9/4
         1090 Vienna, Austria
         Tel: 319 32 60
         Fax: 319 32 60-9
         E-mail: lang@brandlang.com  
                 dr.koroschetz@aon.at  


GAUSTER ELEKTROENERGIE: Creditors' Meeting Slated for Dec. 21
-------------------------------------------------------------
Creditors owed money by LLC Gauster Elektroenergie- Technik (FN
101822p) are encouraged to attend the creditors' meeting at
10:40 a.m. on Dec. 21 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting will be held at:

         The Land Court of Wels
         Hall 101
         1st Floor
         Maria Theresia St. 12
         Wels, Austria

Headquartered in Gmunden, Austria, the Debtor declared
bankruptcy on Oct. 25 (Bankr. Case No. 20 S 127/06m).  Gerhard
Goetschhofer serves as the court-appointed property manager of
the bankrupt estate.  

The property manager can be reached at:

         Dr. Gerhard Goetschhofer
         Schlossplatz 15
         4655 Vorchdorf, Austria
         Tel: 07614/7575
         Fax: 07614/7575-14
         E-mail: rechtsanwalt@goetschhofer.at


GESELLSCHAFT FUER: Creditors' Meeting Slated for December 19
------------------------------------------------------------
Creditors owed money by LLC Gesellschaft fuer
Vertriebsunterstuetzung (FN 128503a) are encouraged to attend
the creditors' meeting at 9:30 a.m. on Dec. 19 to consider the
adoption of the rule by revision and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 25 (Bankr. Case No. 4 S 154/06h).  Eberhard Wallentin
serves as the court-appointed property manager of the bankrupt
estate.

The property manager can be reached at:

         Dr. Eberhard Wallentin
         Porzellangasse 4-6
         1090 Vienna, Austria
         Tel: 313 74-0
         Fax: 313 74-80
         E-mail: office@ksw.at


POWER CONNECTION: Claims Registration Period Ends December 19
-------------------------------------------------------------
Creditors owed money by LLC Power Connection EDV (FN 39129v)
have until Dec. 19 to file written proofs of claims to court-
appointed property manager Hans-Peter Pfluegl at:

         Mag. Hans-Peter Pfluegl
         Oberndorfer Ortsstrasse 56a
         3130 Herzogenburg, Austria
         Tel: 02782/83 553
         Fax: 02782/83 553-55
         Email: hanspeter.pfluegl@aon.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:50 a.m. on Jan. 9, 2007, to
consider the adoption of the rule by revision and
accountability.

The meeting of creditors will be held at:

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

Headquartered in St. Poelten, Austria, the Debtor declared
bankruptcy on Dec. 19 (Bankr. Case No. 14 S 177/06d).   


===============
B U L G A R I A
===============


VARNA SHIPYARD: Court to Rule on Bankruptcy After Today's Mtg.
--------------------------------------------------------------
The Varna Regional Court estimates Varna Shipyard's bankruptcy
declaration procedure to be completed by Christmas, The Sofia
Echo Weekly News reports.

The procedure, which commenced in 1999, saw the sale of shipyard
assets in the past several years.  According to Sofia Echo,
proceeds of the sale were distributed to the company's two major
creditors and the shipyard's around 5,000 workers.  The
shipyard, however, still owes BGN146.5 million to more than
5,000 creditors as only BGN6.8 million have been paid to the
employees, Sofia Echo relates.  It is currently unable to pay
BGN139.5 million to state and commercial creditors.

The court will rule on Varna's bankruptcy after a final meeting
of creditors scheduled today, Dec. 15.

Headquartered in Varna, Bulgaria, Varna Shipyard commenced
bankruptcy proceedings in 1999 leading to a loss of 5,000 jobs.  
The shipyard was declared insolvent in January 2002, after an
unsuccessful privatization attempt by British company Cammell
Laird.  On April 2, 2002, Varna Shipyard was acquired by
Navibulgar.  According to the Varna Chamber of Commerce and
Industry, the renewed privatization procedure for the shipyard
is continuing.


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


ALCATEL-LUCENT: Upgrades Telecom New Zealand's Mobile Broadband
---------------------------------------------------------------
New Zealanders now have access to world-leading mobile broadband
technology with the launch of Telecom's Mobile Broadband
CDMA2000 1xEV-DO Revision A upgrade, powered by Alcatel-Lucent
solutions.

"New Zealand is one of the first countries in the world to have
this technology, which makes possible a whole new world of real-
time mobile services," said Simon Moutter, Chief Operating
Officer - Business, Telecom New Zealand.  "It offers super-fast
mobile data speeds for both downloading and uploading data,
which means that wherever they are, customers will be able to
use their notebooks, laptops and other mobile devices to enjoy
services such as video conferencing, multi-player gaming, and
streaming video."

"Super-fast upload speeds means that Mobile Broadband powered by
Rev. A is ideal for remote workers wanting to send large files,
as well as receive them," Mr. Moutter added.  "For example,
photographers will be able to send large photo files directly
from location shoots much more quickly and easily. Mobile
Broadband Rev. A makes it feasible for many more New Zealanders
to work effectively away from their office, wherever they need
to be."

Mobile Broadband Rev. A offers average download speeds of
800Kilobits per second (Kbps) and average upload speeds of
around 300Kbps. It employs CDMA2000 1xEV-DO Revision A
technology, the next step up in the development path for the
CDMA 1xEV-DO network behind Telecom's current Mobile Broadband
offering. The upgrade was carried out by Alcatel-Lucent, which
built and now manages Telecom's mobile data network.

Mobile Broadband Rev. A is available initially in the Auckland
CBD area. It will be available in other metropolitan areas
starting from early 2007 and rolled out throughout New Zealand
during the course of the next year.

Hilary Mine, head of Alcatel-Lucent's Australasia Regional Unit,
said the launch of Mobile Broadband Rev. A is another example of
the strength of Telecom's mobile technology path.  

"Upgrading to Rev. A will ensure that New Zealand remains at the
forefront of global mobile innovation and enable Telecom to
continue delivering a truly world-class mobile broadband service
for customers," Ms. Mine said.  "This is one of the first
deployments in the world of EV-DO Revision A, and the rapid
growth of EV-DO subscribers beyond New Zealand means a ready
demand for new applications and services based on the
technology.  We can expect to see some very exciting
developments and it's fantastic that New Zealand and New
Zealanders will be at the forefront of them."

                    About the Telecom Group

The Telecom Group -- http://www.telecom.co.nz/-- provides  
telecommunications and ICT services in New Zealand and
Australia.  It is the principal supplier of telecommunications
services in New Zealand.

                      About the Company

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable  
service providers, enterprises and governments worldwide, to
deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.

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

                           *     *     *

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

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

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

The Rating Outlook for Alcatel-Lucent is Stable.

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

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

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

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

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

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

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


ON SEMICONDUCTOR: Proposes US$400-Mln Sr. Sub. Notes Offering
-------------------------------------------------------------
ON Semiconductor Corp. proposes to offer US$400 million of
convertible senior subordinated notes in an institutional
private placement.  

As part of the offering, the company expects to grant the
initial purchasers an option to purchase up to an additional
US$60 million aggregate principal amount of the notes to cover
overallotments.

Assuming the initial purchaser's right is exercised in full,
ON Semiconductor intends to use the net proceeds of the offering
to repay approximately US$199.1 million of amounts outstanding
under the term loan portion of its senior secured credit
facility.  In addition, the company intends to repurchase,
concurrently with the pricing of the notes, up to US$230 million
worth of its common stock in privately-negotiated transactions.  
All of the repurchases of shares of common stock by the company
are conditioned upon the closing of the offering of the notes.  
These transactions are expected to reduce the potential dilution
upon conversion of the notes.  Any net proceeds not used to
repay the senior secured credit facility or for share
repurchases will be used for general corporate purposes.

The announcement is neither an offer to sell nor a solicitation
of an offer to buy securities.  Any offers of the securities
will be made only by means of a private offering memorandum.  
The notes and the common stock issuable upon the conversion of
the notes will be offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities
Act of 1933, as amended.  The notes and the common stock
issuable upon conversion of the notes have not been registered
under the Securities Act and may not be offered or sold in the
United States without registration under the Securities Act and
may not be offered or sold in the United States without the
registration or an applicable exemption from registration
requirements.

                      About ON Semiconductor

ON Semiconductor -- http://www.onsemi.com/-- supplies power   
solutions to engineers, purchasing professionals, distributors
and contract manufacturers in the computer, cell phone, portable
devices, automotive and industrial markets.  The company has
operations in Japan and the Czech Republic.

                          *     *     *

ON Semiconductor Corp.'s bank loan debt and long-term corporate
family rating carry Moody's B2 ratings.  The ratings were placed
on Dec. 15, 2005, with a positive outlook.


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


KALMAR STRUCTURED: Moody's Ba2 Rating on Class C Notes on Review
----------------------------------------------------------------
Moody's Investors Service places under review for possible
downgrade these three classes of notes issued by Kalmar
Structured Finance A/S:

   -- Class A1 EUR4.25-million Secured Notes III due 2011,
      currently rated Aa3;

   -- Class B1 EUR6.01-million Secured Notes III due 2011,
      currently rated Baa1; and

   -- Class C EUR8.25-million Secured Notes III due 2011,
      currently rated Ba2.

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


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


METSO OYJ: Draws EUR100-Mln Loan from European Investment Bank
--------------------------------------------------------------
Metso Oyj drew a EUR100 million loan from the European
Investment Bank.  The purpose of the loan, which was agreed in
2004, is to finance R&D activities carried out within Metso.

The loan has a floating interest rate, its tenor is 10 years and
amortizing will begin in 2010.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology   
corporation with 2005 net sales of approximately EUR4.2 billion.  
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

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

                        *     *     *

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


METSO OYJ: Launches New Paper Machine Production Site in China
--------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, opened a new paper machine
production facility in Shanghai, China.

Metso Paper Technology (Shanghai) Co., Ltd. acquired by Metso in
August 2006, comprises a modern workshop, a foundry and a design
department.  In the first phase the unit will concentrate on
manufacturing paper and board machine sections mainly for Metso
Paper's delivery projects in China. The unit can also supply
components for deliveries outside China. The unit employs some
450 people.

China's paper industry is growing strongly.  Since the year
2000, about half of the world's orders for new, big paper
manufacturing lines have come from China.  The new Shanghai
production facility creates new possibilities for Metso Paper to
further strengthen their customer service, servicing,
manufacturing, and sourcing operations.

More than 30 % of the new paper and board production capacity
built in China since 2000 is based on Metso technology.

Currently Metso Paper has production and customer service
operations at six locations in China.  Total number of personnel
is close to 1,800, including the Valmet-Xian joint venture.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology   
corporation with 2005 net sales of approximately EUR4.2 billion.  
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

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

                        *     *     *

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


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


ALCATEL-LUCENT: Upgrades Telecom New Zealand's Mobile Broadband
---------------------------------------------------------------
New Zealanders now have access to world-leading mobile broadband
technology with the launch of Telecom's Mobile Broadband
CDMA2000 1xEV-DO Revision A upgrade, powered by Alcatel-Lucent
solutions.

"New Zealand is one of the first countries in the world to have
this technology, which makes possible a whole new world of real-
time mobile services," said Simon Moutter, Chief Operating
Officer - Business, Telecom New Zealand.  "It offers super-fast
mobile data speeds for both downloading and uploading data,
which means that wherever they are, customers will be able to
use their notebooks, laptops and other mobile devices to enjoy
services such as video conferencing, multi-player gaming, and
streaming video."

"Super-fast upload speeds means that Mobile Broadband powered by
Rev. A is ideal for remote workers wanting to send large files,
as well as receive them," Mr. Moutter added.  "For example,
photographers will be able to send large photo files directly
from location shoots much more quickly and easily. Mobile
Broadband Rev. A makes it feasible for many more New Zealanders
to work effectively away from their office, wherever they need
to be."

Mobile Broadband Rev. A offers average download speeds of
800Kilobits per second (Kbps) and average upload speeds of
around 300Kbps. It employs CDMA2000 1xEV-DO Revision A
technology, the next step up in the development path for the
CDMA 1xEV-DO network behind Telecom's current Mobile Broadband
offering. The upgrade was carried out by Alcatel-Lucent, which
built and now manages Telecom's mobile data network.

Mobile Broadband Rev. A is available initially in the Auckland
CBD area. It will be available in other metropolitan areas
starting from early 2007 and rolled out throughout New Zealand
during the course of the next year.

Hilary Mine, head of Alcatel-Lucent's Australasia Regional Unit,
said the launch of Mobile Broadband Rev. A is another example of
the strength of Telecom's mobile technology path.  

"Upgrading to Rev. A will ensure that New Zealand remains at the
forefront of global mobile innovation and enable Telecom to
continue delivering a truly world-class mobile broadband service
for customers," Ms. Mine said.  "This is one of the first
deployments in the world of EV-DO Revision A, and the rapid
growth of EV-DO subscribers beyond New Zealand means a ready
demand for new applications and services based on the
technology.  We can expect to see some very exciting
developments and it's fantastic that New Zealand and New
Zealanders will be at the forefront of them."

                    About the Telecom Group

The Telecom Group -- http://www.telecom.co.nz/-- provides  
telecommunications and ICT services in New Zealand and
Australia.  It is the principal supplier of telecommunications
services in New Zealand.

                      About the Company

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable  
service providers, enterprises and governments worldwide, to
deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.

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

                           *     *     *

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

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

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

The Rating Outlook for Alcatel-Lucent is Stable.

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

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

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

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

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

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

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


CONVERIUM AG: Completes Sale of North American Operations
---------------------------------------------------------
Converium AG disclosed of the closing of the sale of its North
American operations to National Indemnity Company, a Berkshire
Hathaway company, following the receipt of all necessary
regulatory approvals.

The transaction, which was announced on Oct. 17, 2006, will be
reflected in Converium's fourth quarter 2006 financial
statements.

"With the announcement we have achieved finality on our North
American operations," Inga Beale, CEO of Converium, said.  "The
closing of the transaction meets a major condition for a ratings
upgrade by Standard & Poor's."

                         About Converium

Headquartered in Zug, Switzerland, Converium Holding AG --
http://www.converium.com/-- provides treaty and individual
coverage for risks including accident and health, credit and
surety, e-commerce, third party and professional liability,
life, and special casualty.   The company also operates in
Germany, United Kingdom, France, Malaysia, Singapore, Australia,
Japan, Bermuda, Argentina, U.S.A., Brazil and Canada.

                          *     *     *

As reported in the TCR-Europe on Oct. 20, Fitch Ratings placed
Swiss-based Converium AG's Insurer Financial Strength BBB-
rating on Rating Watch Positive.  The agency has also placed
other ratings within the Converium group on RWP.

Converium group ratings are:

   -- Converium AG's IFS BBB- on RWP;

   -- Converium AG's Issuer Default rating BBB- on RWP;

   -- Converium Insurance (U.K.) Limited's IFS BBB- on RWP;

   -- Converium Ruckversicherungs (Deutschland) AG's IFS BBB- on
      RWP;

   -- Converium Holding AG's IDR BB on RWP; and

   -- Converium Finance S.A.'s US$200 million subordinated debt
      due 2032 BB+ on RWP.


COREL CORP: Acquires InterVideo Inc. for US$198.6 Million Cash
--------------------------------------------------------------
Corel Corp. has completed the acquisition of InterVideo Inc. for
US$13 per share of InterVideo common stock, resulting in an
aggregate acquisition price of US$198.6 million in an all-cash
transaction.

The acquisition substantially expands Corel's presence in the
digital media software market by creating the industry's
broadest portfolio of digital imaging and DVD video products.  
With the addition of InterVideo, Corel will deliver easier-to-
use, multi-purpose high-definition video, imaging, and DVD
creation products to consumers and enterprises worldwide while
extending its presence in fast-growing Asian markets, such as
China, Taiwan and Japan.

"This strategic combination further strengthens Corel's
leadership position in digital media software and will enable us
to deliver even greater value to our customers, partners and
shareholders worldwide," said Corel Chief Executive Officer
David Dobson.  "We welcome InterVideo's employees, customers and
partners to Corel and we look forward to working with them."

InterVideo's comprehensive suite of advanced digital video and
multimedia software products allow users to record, edit,
author, distribute and play digital multimedia content on PCs
and other devices.  In 2005, InterVideo acquired a majority
interest in Ulead, a leading developer of video imaging and DVD
authoring software for desktop, server, mobile and Internet
platforms, and the acquisition of the remaining interest in
Ulead is expected to be completed before the end of 2006.

The acquisition combines Corel's key strengths -- business
model innovation, understanding of end user requirements and
established distribution in the Americas and Europe -- with
InterVideo's core assets, which include video technology
innovation, established partnerships with the world's leading PC
OEM partners and strong market presence in the Asia Pacific
region.

"The addition of InterVideo and Ulead products to our existing
digital imaging portfolio puts Corel in a unique position to
meet the evolving needs of consumers demanding higher quality
and more accessible digital media content -- specifically high-
definition digital images and videos accompanied by more
creative and enjoyable ways to view and share them," said Blaine
Mathieu, general manager of Corel's Digital Imaging Business.  
"With the ongoing convergence of different media and devices,
consumers need easier-to-use tools that can handle all media
types on an equal basis.  Corel will fulfill this growing demand
by delivering new, easier-to-use, multi-purpose video and
imaging software products to consumers and enterprises
worldwide."

Corel will leverage its complementary geographic strengths
with InterVideo and Ulead to create an even more efficient
sales, marketing and product development engine.  With
significant development offices in California, China, Minnesota,
Ottawa and Taiwan, Corel will be better positioned to meet the
specific requirements of customers and partners in various
locations around the world.

"The excitement surrounding properties like YouTube clearly
showcases why the multimedia software and services segment is so
incredibly hot right now," said Rob Enderle, Principal Analyst
for the Enderle Group, a leading San Jose, CA-based research
firm covering emerging hardware and software markets.  "The
enormous mass market potential for products that provide
solutions for this rapidly growing segment simply has not yet
been realized. Corel is placing itself in the middle of this
huge opportunity so that they can capitalize on this incredible
opportunity and help drive market growth."

The acquisition was financed through a combination of Corel's
cash reserves, InterVideo's cash reserves and debt financing
which included Corel entering into an amendment to its existing
credit agreement to increase its available term borrowings by
US$70 million.

Corel will provide guidance on the combined company when it
reports its financial results for the year ended Nov. 30, 2006,
in January.

                        About Corel Corp.

Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX:
CRE) -- http://www.corel.com/-- is a packaged software company  
with an   estimated installed base of over 40 million users.  
The Company provides productivity, graphics and digital imaging
software.  Its products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers.  The Company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro,
and Corel Painter(TM).  In Europe, the company maintains
operations in France, Germany, Italy, the Netherlands, and the
United Kingdom.

                           *     *     *


As reported in the Troubled Company Reporter-Europe on Nov. 6,
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit and senior secured debt ratings on Canada-based
packaged software company, Corel Corp.

In a TCR-Europe report on Oct. 19, Moody's confirmed its Caa1
Corporate Family Rating for Corel Corp. in connection with the
rating agency's Investors Service's implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.


REMY COINTREAU: Chairman Dismisses Rumors on Likely Sale
--------------------------------------------------------
Dominique Heriard Dubreuil, chairperson for Remy Cointreau, has
quelled rumors that the distiller might be sold even as its
share price rose to almost 25% in the past five months on talks
of a possible approach for Remy, according to published reports.

Analysts have suggested a probable takeover bid for the family-
controlled distiller, hinting to The Wall Street Journal that
bidders could include Brown-Forman Corp., Bacardi & Co.,
Constellation Brands Inc. and Diageo plc.

Ms. Heriard Dubreuil, who is one of four family members holding
a controlling stake in the group, told Adam Jones of the
Financial Times that there was no desire to sell the business
"because of a belief that Remy Cointreau will increase in value
in the years to come."

The latest bidding speculation was fueled by the company's
decision to terminate the Maxxium Global Distribution Agreement
effective March 30, 2009, which would enable Remy Cointreau to
consider alternative distribution options in priority markets
such as Asia.

Remy CEO Jean-Marie Laborde said its decision to leave Maxxium
came after dissatisfaction with its performance in Asia, FT
reports.  Family members have backed Mr. Laborde's strategy,
which has led the company to focus more on the top end of the
drinks market.

Remy Cointreau's share price climbed 4 percent to EUR47.35
Tuesday after it published a 21.9% organic growth in profit from
operations for the first half of the 2006/2007 financial year.  
In the six months to Sept. 30, 2006, the company earned EUR75.7
million in net income, compared with a EUR42.9 million net
income for the same period in 2005.  The profit increase, FT
relates, reflected good growth in the high-margin U.S. market in
spite of the weakness of the dollar against the euro.

Headquartered in Cognac, France, Remy Cointreau --
http://www.remycointreau.com/-- offers a range of premium wine  
and spirit brands, known and recognized throughout the world.
These brands include, among others, Remy Martin, Cointreau,
Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper-
Heidsieck.

                          *     *     *

Remy Cointreau's senior unsecured debt carries a Ba2 rating from
Moody's Investors Service since 2003.  Standard & Poor's rated
the Company's issuer credit at BB- in 2004.


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


BK GASTRO: Claims Registration Ends December 20
-----------------------------------------------
Creditors of BK Gastro u. Catering Betriebs- u.
Beteiligungsgesellschaft mbH have until Dec. 20 to register
their claims with court-appointed provisional administrator Jan-
Michael Mueller.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Jan. 9, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Goettingen
         Hall B8
         Berliner Road 8
         37073 Goettingen, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Goettingen opened bankruptcy proceedings
against BK Gastro u. Catering Betriebs- u.
Beteiligungsgesellschaft mbH on Oct. 13.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         BK Gastro u. Catering Betriebs- u.
         Beteiligungsgesellschaft mbH
         Attn: Erhardt Buuck, Manager
         Brauweg 36A
         37073 Goettingen, Germany

The administrator can be contacted at:

         Jan-Michael Mueller
         Kasseler Highway 25b
         37081 Goettingen, Germany
         Tel: 0551/5217575
         Fax: 0551/5217775
         E-mail: kanzlei-goettingen@beratergruppe.de


CINEMED INTERNATIONAL: Claims Registration Ends December 18
-----------------------------------------------------------
Creditors of cinemed international GmbH have until Dec. 18 to
register their claims with court-appointed provisional
administrator Thomas Kloeckner.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 18, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wolfratshausen
         Meeting Room 3/I         
         Station Route 18
         Wolfratshausen, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Wolfratshausen opened bankruptcy
proceedings against cinemed international GmbH on Nov. 8.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         cinemed international GmbH
         Birkerfeld 11
         83627 Warngau, Germany

The administrator can be contacted at:

         Thomas Kloeckner
         Loisach Ufer 23
         82515 Wolfratshausen, Germany
         Tel: 08171/99880
         Fax: 08171/998877


DAIMLERCHRYSLER AG: Swap Trades Actively, Report Says
-----------------------------------------------------
DaimlerChrysler AG's credit-default swaps are the most actively
traded in Europe in 2006, Bloomberg News reports citing data
compiled by Deutsche Bank AG.

Bloomberg data revealed that the cost of a contract on Daimler's
EUR46 billion of bonds fell to EUR55,433 on Dec. 11 from
EUR72,071 at the start of the year.  A decline suggests an
improvement in the company's credit quality, Bloomberg says.

"They have lots of bonds outstanding," Marcus Schueler, head of
Deutsche Bank London's Integrated Credit Marketing, said.  
"They're in a sector where there's a lot going on."

Credit-default swaps are used as an alternative to investing in
bonds with around US$40 billion of contracts trading daily,
Bloomberg News cites Deutsche Bank's data.

The value of outstanding credit-default swaps doubled from
US$133 billion at the end of 2004 to US$294 billion, Bloomberg
News cites the Bank for International Settlements in Basel.

Banks and hedge funds, Bloomberg relays, prefers the contracts
rather than buying or selling underlying securities because they
are cheaper and easier to use.

The securities are financial instruments based on corporate
bonds and loans that are used to speculate on a company's
ability to repay debt.

                       About DaimlerChrysler

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.

It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler also operates in Belgium, Czech Republic,
Denmark, France, Italy, Netherlands, Poland, Russia, Spain,
Sweden, United Kingdom, Australia, China, Indonesia, Japan,
Korea, Malaysia, and Thailand.

                        *     *     *

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

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

                           Outlook

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

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


EUROTUNNEL GROUP: Bondholders Vote on Restructuring Plan
--------------------------------------------------------
Eurotunnel Group's bondholders voted in favor of the proposed
Safeguard plan put forward under the French Safeguard Procedure
to restructure the company's GBP6.2-billion debt.

Out of 149 individual bondholders who participated, 102
bondholders, representing 82.17% of the EUR1.5 billion bond
issued by France Manche SA, voted in favor of the proposals.

Some 88 out of 131 bondholders, representing 69.22% of the
GBP858-million bond value issued in sterling pounds by
Eurotunnel Finance Limited, voted in favor of the proposals that
were put to them.

Eurotunnel is grateful to the Mandataires Judiciaires and the
Administrateurs Judiciaires who had encouraged a vote in favor
of the plan and whose application of the legal process has been
invaluable in reaching this stage.

Eurotunnel notes with satisfaction that staff representatives in
both France and the U.K. gave their support to the plan prior to
the vote yesterday.

The Administrateurs Judiciaires will put forward the financial
restructuring proposals adopted by the creditors to the Paris
Commercial Court on Dec. 18.

"This vote concludes two years of intense negotiations and gives
us a realistic and balanced plan which preserves the interests
of all stakeholders," Jacques Gounon, chairman and chief
executive of Eurotunnel disclosed.  "If the Paris Commercial
Court approves this plan, the next step will be the creation of
Groupe Eurotunnel SA.  The shareholders will then, through a
majority participation in the exchange offer, enable the new
Eurotunnel to be born: based on solid foundations and with real
prospects for the future."

As reported in the TCR-Europe on Nov. 28, creditors representing
72% of the financial establishment committee voted in favor of
the proposed safeguard-restructuring plan.

The committee holds 70% of the company's GBP6.2 billion debt.

Eurotunnel Group sent out its Draft Safeguard Restructuring Plan
Proposals on Oct. 31, in accordance with the French Safeguard
Procedure.

                      Terms of the Plan

The principal elements of the proposals include:

   1) the creation of a new company, Groupe Eurotunnel, which
      will launch an Exchange Tender Offer (ETO) to Eurotunnel's
      current shareholders.  The shareholders will hold a
      minimum 13% of the equity in Groupe Eurotunnel;

   2) Groupe Eurotunnel will subscribe to a new long-term loan
      of GBP2.840 billion (less than half of the current debt)
      from an international banking consortium;

   3) Groupe Eurotunnel will issue GBP1.275 billion of
      convertible hybrid notes.  The hybrid notes will be
      convertible over a maximum of three years and one month.
      Approximately 61.7% of the hybrids are redeemable by the
      company.

   4) current Eurotunnel shareholders, who subscribe to the ETO,
      will hold a minimum of 13% of the equity in Groupe
      Eurotunnel.  They can subscribe directly to the hybrid, up
      to a value of GBP60 million (EUR87.7 million) and will
      benefit from free warrants.  The redemption of hybrid
      notes by the company would allow them to increase their
      share of the equity from 13% to 67%.

                         About Eurotunnel

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a   
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faced
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

Eurotunnel obtained Aug. 2 an order placing the channel operator
under the protection of the Court pursuant to the new safeguard
legislation (Procedure de sauvegarde).


EUROTUNNEL GROUP: Oaktree Files Petition to Review Nov. 27 Vote
---------------------------------------------------------------
Oaktree Capital Management LLC filed a petition with the Paris
Commercial Court to review the Nov. 27 vote by creditors of
Eurotunnel Group in favor of the company's proposed safeguard
restructuring plan for its GBP6.2 billion debt, AFX News Ltd.
reports.

According to AFX, Oaktree requested clarifications why certain
lenders seemed to have voted multiple times.  The company also
sought confirmation if the voting process was implemented on the
same basis among all creditors.

It is also seeking confirmation that the voting process was
implemented on the same basis among all creditors.

"Over two weeks ago, in light of apparent multiple voting, the
administrators were asked by creditors for an audit of this vote
but we have yet to receive a substantive answer," Ken Liang, a
managing director of Oaktree, was quoted by AFX as saying.

"It is simply incomprehensible that a voting process on a plan
which purportedly reduces over GBP3.4 billion of secured
creditors' claims can be conducted in such an unaccountable and
opaque manner," he said.

Oaktree and Franklin Mutual Advisors LLP, the two creditors who
opposed the debt plan, sent letters to bondholders and
Eurotunnel's bond trustee Law Debenture Trustees Ltd., saying
they will draw on a lenders' accord to demand the funds reserved
for bondholders be used to pay more to senior debt holders like
them, Bloomberg News disclosed.

"This will pose some interesting questions on the applicability
of certain contractual arrangements between creditors," Antoine-
Audoin Maggiar, a Paris-based partner with law firm Berwin
Leighton Paisner told Bloomberg.

"A multiplication of lawsuits may make it harder to actually put
Sauvegarde into practice for Eurotunnel," Mr. Paisner added.

As reported in the TCR-Europe on Nov. 28, creditors representing
72% of the financial establishment committee voted in favor of
the proposed safeguard-restructuring plan.

The committee holds 70% of the company's GBP6.2 billion debt.

Eurotunnel Group sent out its Draft Safeguard Restructuring Plan
Proposals on Oct. 31, in accordance with the French Safeguard
Procedure.

                      Terms of the Plan

The principal elements of the proposals include:

   1) the creation of a new company, Groupe Eurotunnel, which
      will launch an Exchange Tender Offer (ETO) to Eurotunnel's
      current shareholders.  The shareholders will hold a
      minimum 13% of the equity in Groupe Eurotunnel;

   2) Groupe Eurotunnel will subscribe to a new long-term loan
      of GBP2.840 billion (less than half of the current debt)
      from an international banking consortium;

   3) Groupe Eurotunnel will issue GBP1.275 billion of
      convertible hybrid notes.  The hybrid notes will be
      convertible over a maximum of three years and one month.
      Approximately 61.7% of the hybrids are redeemable by the
      company.

   4) current Eurotunnel shareholders, who subscribe to the ETO,
      will hold a minimum of 13% of the equity in Groupe
      Eurotunnel.  They can subscribe directly to the hybrid, up
      to a value of GBP60 million (EUR87.7 million) and will
      benefit from free warrants.  The redemption of hybrid
      notes by the company would allow them to increase their
      share of the equity from 13% to 67%.

                         About Eurotunnel

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a   
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faced
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

Eurotunnel obtained Aug. 2 an order placing the channel operator
under the protection of the Court pursuant to the new safeguard
legislation (Procedure de sauvegarde).


FLAPO-HOLZVERTRIEBS: Claims Registration Ends December 19
---------------------------------------------------------
Creditors of Flapo-Holzvertriebs GmbH have until Dec. 19 to
register their claims with court-appointed provisional
administrator Cornelia Moenert.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Jan. 12, 2007, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Paderborn
         Meeting Room 216
         2nd Floor
         Bogen 2-4
         33098 Paderborn, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Paderborn opened bankruptcy proceedings
against Flapo-Holzvertriebs GmbH on Nov. 2.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Flapo-Holzvertriebs GmbH
         Stettiner Str. 4-6
         33106 Paderborn, Germany

         Attn: Anja Flakowski, Manager
         Field 18
         33397 Rietberg, Germany

The administrator can be contacted at:

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


FVG FLEISCH: Claims Registration Ends December 20
-------------------------------------------------
Creditors of FVG Fleisch und Viehzentrale Gelsenkirchen GmbH
have until Dec. 20 to register their claims with court-appointed
provisional administrator Biner Bahr.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on Jan. 10, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Essen
         Hall 293
         2nd Floor
         Principal Establishment
         Gelber Bereich
         Zweigertstr. 52
         45130 Essen, Germany         
      
The Court will also verify the claims set out in the
administrator's report at 1:00 p.m. on Feb. 7, 2007, at the same
venue.

The District Court of Essen opened bankruptcy proceedings
against FVG Fleisch und Viehzentrale Gelsenkirchen GmbH on
Oct. 30.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         FVG Fleisch und Viehzentrale Gelsenkirchen GmbH
         Schlachthof 4a
         45883 Gelsenkirchen, Germany

         Attn: Reinhard Paul Hoffmann, Manager
         Waldstr. 10
         45699 Herten, Germany

         Bernhard Klapheck, Manager
         Pflugstr. 7
         40470 Duesseldorf, Germany

The administrator can be contacted at:

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


HANS A E: Claims Registration Ends December 19
----------------------------------------------
Creditors of Hans A. E. Frehse GmbH have until Dec. 19 to
register their claims with court-appointed provisional
administrator Gideon Boehm.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Jan. 30, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Reinbek
         Park Avenue 6
         21465 Reinbek, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Reinbek opened bankruptcy proceedings
against Hans A. E. Frehse GmbH on Nov. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Hans A. E. Frehse GmbH
         Attn: Stefan Seiler, Manager
         Borsigstrasse 12
         21465 Reinbek, Germany

The administrator can be contacted at:

         Dr. Gideon Boehm
         Bachstr. 85 a
         22083 Hamburg, Germany


KARL-HEINZ: Claims Registration Ends December 18
------------------------------------------------
Creditors of Karl-Heinz Rossmann GmbH have until Dec. 18 to
register their claims with court-appointed provisional
administrator Guenter Trutnau.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 8, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Essen
         Hall 293
         2nd Floor
         Principal Establishment
         Gelber Bereich
         Zweigertstr. 52
         45130 Essen, Germany         
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Essen opened bankruptcy proceedings
against Karl-Heinz Rossmann GmbH on Nov. 15.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Karl-Heinz Rossmann GmbH
         Sagewerk 16
         45964 Gladbeck, Germany

         Attn: Karl-Heinz Rossmann, Manager
         Steinstr. 89
         45968 Gladbeck, Germany

The administrator can be contacted at:

         Dr. Guenter Trutnau
         III. Hagen 30
         45127 Essen, Germany


LOBREYER GMBH: Claims Registration Ends December 18
---------------------------------------------------
Creditors of Lobreyer GmbH have until Dec. 18 to register their
claims with court-appointed provisional administrator Sebastian
Henneke.

Creditors and other interested parties are encouraged to attend
the meeting at 10:40 a.m. on Jan. 17, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Duisburg
         Area C315
         3rd Floor
         Cardinal Galen Road 124-132
         47058 Duisburg, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

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

The Debtor can be contacted at:

         Lobreyer GmbH
         Attn: Heinz-Juergen Lobreyer, Manager
         Inzerfeld 42
         47167 Duisburg, Germany

The administrator can be contacted at:

         Dr. Sebastian Henneke
         Muelheimer Str. 100
         47057 Duisburg, Germany


NOWA SPECIAL: Claims Registration Ends December 20
--------------------------------------------------
Creditors of Nowa Special Food GmbH have until Dec. 20 to
register their claims with court-appointed provisional
administrator Hubertus Bange.

Creditors and other interested parties are encouraged to attend
the meeting at 9:35 a.m. on Jan. 22, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

The District Court of Muenster opened bankruptcy proceedings
against Nowa Special Food GmbH on Nov. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Nowa Special Food GmbH
         Attn: John Wijdenes, Manager
         Zeppelinstrasse 17
         49479 Ibbenbueren, Germany

The administrator can be contacted at:

         Hubertus Bange
         Kardinal-von-Galen-Str. 5
         48268 Greven, Germany


PROMISE-COLOR: Fitch Affirms Low-B Ratings on EUR49.95-Mln Notes
----------------------------------------------------------------
Fitch Ratings upgraded two classes of PROMISE-Color 2003-1 Plc's
floating rate credit linked notes with a scheduled maturity in
February 2014 and affirmed the CDS and remaining classes:

   -- EUR849.4 million Super Senior Credit Default Swap affirmed
      at AAA;

   -- EUR250,000 Class A1+ (ISIN DE0008439217) affirmed at AAA;

   -- EUR45.05 million Mezzanine Senior Credit Default Swap
      affirmed at AAA;

   -- EUR250,000 Class A2+ (ISIN DE0008439225) affirmed at AAA;

   -- EUR 126.35 million Class A (ISIN DE0003939211) affirmed at
      AAA;

   -- EUR27.75 million Class B (ISIN DE0003939229) upgraded to
      AAA from AA;

   -- EUR13.6 million Class C (ISIN DE0003939237) upgraded to AA
      from A;

   -- EUR44.4 million Class D (ISIN DE0003939245) affirmed at
      BB; and

   -- EUR5.55 million Class E (ISIN DE0003939252) affirmed at B.

The super senior swap and the A1+ notes have amortized
proportionally with the current portfolio.  Their current
balances are EUR236,991,000 and EUR69,753 respectively.

The credit enhancement available to the notes has increased
significantly, in particular on the senior notes and the swaps,
due to the amortizing nature of the reference portfolio.  The
notional balance of the portfolio currently stands at EUR520
million compared to the initial balance of EUR1.13 billion.

The first loss threshold has remained at EUR20.3 million since
closing as there have been no realized losses in the reference
portfolio to date.

There have been 0.60% defaults as a percentage of the initial
portfolio balance compared to 0.16% in August 2005; outstanding
defaults are currently at 0.39% of the initial portfolio
balance.  All defaulted assets that have completed the worked-
out process have achieved a 100% recovery rate to date.  

The proportion of lower rated assets, measured by the banks'
internal rating, has decreased since the last review from 0.32%
to only 0.05% of the initial reference portfolio balance.

The notes are issued by the special purpose vehicle, PROMISE-
Color 2003-1 Plc in Dublin, Ireland, and are backed by credit-
linked certificates of indebtedness issued by Kreditanstalt fuer
Wiederaufbau.  

The notes assume the economic risk of a sequentially amortizing
reference portfolio, containing payment claims arising from
loans, guarantees and sub-participations in loans and guarantees
to German small- and medium-sized corporates originated by
Bayerische Hypo- und Vereinsbank AG. Replenishment is not
allowed.


ROAD RUNNER: Claims Registration Ends December 20
-------------------------------------------------
Creditors of Road Runner Transport GmbH have until Dec. 20 to
register their claims with court-appointed provisional
administrator Helmut Buerenkemper.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Jan. 24, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Dortmund opened bankruptcy proceedings
against Road Runner Transport GmbH on Nov. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Road Runner Transport GmbH
         Kottenpfad 24
         59174 Kamen, Germany

         Attn: Martin Schafer, Manager
         Erlensundern 23
         59174 Kamen, Germany

The administrator can be contacted at:

         Helmut Buerenkemper
         Lipperoder Road 9
         59555 Lippstadt, Germany


UPDATE MARKETING: Claims Registration Ends December 19
------------------------------------------------------
Creditors of Update Marketing- und Kommunikationsberatung GmbH
have until Dec. 19 to register their claims with court-appointed
provisional administrator Jan Markus Plathner.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 18, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Darmstadt
         Room 4.312
         4th Floor
         Building D
         Mathildenplatz 15
         64283 Darmstadt, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Darmstadt opened bankruptcy proceedings
against Update Marketing- und Kommunikationsberatung GmbH on
Nov. 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Update Marketing- und Kommunikationsberatung GmbH
         Opelstrasse 20-22
         64546 Moerfelden-Walldorf,
         Germany

         Attn: Horst Hans Siegfried Daller, Manager
         Siegfried Daller
         Hinter der Schule 11c
         64342 Seeheim-Jugenheim,
         Germany

The administrator can be contacted at:

         Dr. Jan Markus Plathner
         Lyoner Road 14
         60528 Frankfurt, Germany
         Tel: 069/962334-0
         Fax: 069/962332-22
         E-mail: m.plathner@brinkmann-partner.de


VOLKSWAGEN AG: Denies Concrete Merger Plans with MAN & Scania
-------------------------------------------------------------
Volkswagen AG denied that it has concrete plans of merging VW's
truck unit with MAN AG and Scania AB, AFX News Limited reports.

Swedish newspaper Dagens Industri earlier reported that outgoing
VW CEO Bernd Pischetsrieder had sent a letter dated Nov. 16 to
Scania CEO Leif Ostling, Investor AB CEO Borje Ekholm, and MAN
CEO Hakan Samuelsson outlining detailed merger plans the four
executives discussed following their meeting on Nov. 8.

Mr. Pischetsrieder attached "a possible managing structure of a
multibrand European truck company," according to a copy of the
letter reviewed by The Wall Street Journal.

"The basic principle is, there are group functions and group-
wide responsibilities, both wherever possible, performed by
managers in the brands," Mr. Pischetsrieder wrote.

A volkswagen spokeswoman told AFX that "such a plan was never
sent out."

However, according to AFX, the spokeswoman added that there were
"basic considerations" on how a new truck company carrying
several brands could be organized and that MAN and Scania's CEOs
discussed it.

As reported in the TCR-Europe on Nov. 20, Volkswagen's
Supervisory Board continues to support the merger of MAN and
Scania and confirmed its two resolutions adopted on Oct. 15.  
It continues to seek an amicable solution, but is open to other
strategies if necessary.

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

A combination of MAN and Scania would create Europe's biggest
maker of commercial vehicles by market share and the world's
third biggest behind Sweden's Volvo AB and Germany's
DaimlerChrysler AG.

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

                        *    *    *

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

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

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


WEBER VACUDRY: Claims Registration Ends December 20
---------------------------------------------------
Creditors of Weber Vacudry GmbH have until Dec. 20 to register
their claims with court-appointed provisional administrator
Gerhard Fichter.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Jan. 23, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court Heilbronn
         Hall 4
         Ground Floor
         Insolvency Court
         Rollwagstr. 10a
         74072 Heilbronn, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Heilbronn opened bankruptcy proceedings
against Weber Vacudry GmbH on Nov. 10.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Weber Vacudry GmbH
         Attn: Stefan Weber, Manager
         Meisenweg 30
         74363 Gueglingen, Germany

The administrator can be contacted at:

         Gerhard Fichter
         Uhlandstrasse 4
         74072 Heilbronn, Germany
         Tel: 07131/888666
         Fax: 07131/888667


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


EUROCREDIT CDO: Moody's Rates EUR20-Mln Class E Notes at (P)B2
--------------------------------------------------------------
Moody's assigned these provisional ratings to six classes of
notes issued by Eurocredit CDO VI PLC, a bankruptcy remote
special purpose vehicle incorporated in Ireland:

   -- EUR210-million Class A-T Senior Secured Floating
      Rate Notes: (P)Aaa;

   -- EUR125-million Class A-R Senior Floating Rate Dual
      Currency Notes: (P)Aaa;

   -- EUR33.5-million Class B Senior Secured Floating
      Rate Notes: (P)Aa2;

   -- EUR30-million Class C Secured Deferrable Floating
      Rate Notes: (P)A2;

   -- EUR24-million Class D Secured Deferrable Floating
      Rate Notes: (P)Baa2; and

   -- EUR20-million Class E Secured Deferrable Floating
      Rate Notes: (P)B2.

These ratings are based upon:

   1. an assessment of the credit quality and of the
      diversification of the assets in the initial portfolio;

   2. an assessment of the eligibility criteria applicable to
      the future additions to the portfolio;

   3. the overcollateralization of the notes;

   4. the protection against losses through the subordination of
      the Class B, C, D, E notes, the Euro 57,500,000
      subordinated notes and the excess spread available in the
      transaction;

   5. the analysis of the foreign currency risk involved in the
      transaction; and

   6. the legal and structural integrity of the issue.

The ratings of the Class A, B, C, D and E Notes address the
expected loss posed to investors by the legal maturity of each
class in January 2022.

This transaction is a high yield collateralized loan obligation
related to a portfolio of mainly senior and mezzanine loans.
This portfolio is dynamically managed by Intermediate Capital
Managers Limited.  This portfolio will be partially acquired at
closing date and partially during the twelve-month ramp-up
period at the end of which the portfolio shall comply with the
following tests (subject to Moody's matrices): a diversity score
greater than 41, a weighted average rating factor lower than
2,300, and weighted average spread greater than 2.65% and a
weighted average recovery rate greater than 51%.  Thereafter,
the portfolio of loans will be actively managed and the
portfolio manager will have the option to direct the issuer to
buy or sell loans.  Any addition or removal of loans will be
subject to a number of portfolio criteria.

This transaction features a multi-currency revolving class of
notes (class A-R notes) that can be drawn either in Euros or in
Sterlings.  Sterling advances will be initially used to purchase
loans denominated in Sterling.  Should such Sterling assets
default, Sterling advances would not be fully collateralized by
Sterling assets and therefore Euro proceeds may need to be
converted into Sterling in order to redeem Sterling advances,
thus creating a foreign exchange risk exposure.  This currency
risk has been considered in Moody's analysis.


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


ALITALIA SPA: Italy to Unveil Stake Sale Terms by Yearend
---------------------------------------------------------
The Italian government will publish the terms for the sale of
its 30.1% stake in national carrier Alitalia S.p.A. by the end
of the year, AFX News reports citing Finance Minister Tommaso
Padoa-Schioppa.

According to Mr. Padoa-Schioppa, the government's sale advisor
will draft the terms of the tender.

As reported in the TCR-Europe on Dec. 14, the Italian government
has started inviting banks to act as advisors for the sale of
its 30.1% stake in carrier Alitalia S.p.A.  Letters were sent
to:

   -- Sanpaolo Imi S.p.A.,
   -- Unicredit,
   -- Mediobanca,
   -- Morgan Stanley, and
   -- Merrill Lynch.

The letters, Avionews reports, were aimed at finding whether the
banks are interested in bidding for the government's stake.  The
sale process will formally start once the Italian Treasury
Ministry hired an advisor, which could happen next week.

In a TCR-Europe report on Dec. 13, Italy glued some conditions
on the sale.  The buyer must:

   -- launch a bid to acquire the whole carrier;

   -- keep Alitalia's logo, brand and national identity;

   -- have convincing and detailed business plans and
      commitments, which may include:

         -- a lock-up,
         -- adequate service offering;
         -- territorial coverage; and
         -- information on job levels

   -- continue to operate out of Milan's Malpensa Airport as
      well as Rome's Fiumicino.

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

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

The government aims to complete the process by January 2007.  
Possible advisers include:

   -- Merrill Lynch,
   -- Deutsche Bank,
   -- Lehman Brothers,
   -- Goldman Sachs,
   -- Morgan Stanley,
   -- Rothschild,
   -- JPMorgan, and
   -- Credit Suisse.

                         About Alitalia

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

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

                       Bankruptcy Threat

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

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

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

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


ALITALIA SPA: Tod's S.p.A.'s Diego Della Valle to Enter Bid
-----------------------------------------------------------
Diego Della Valle, founder of Tod's S.p.A., has expressed
interest in acquiring the Italian government's 30.1% stake in
Alitalia S.p.A., the Associated Press reports.

"If a group of Italian entrepreneurs is going to join forces to
make a bid for the company, I would consider playing a role,"
Mr. Della Valle was quoted by the MF-Dow Jones news agency as
saying.

Other local bets for the national carrier include:

   -- Carlo Toto, founder of Air One;
   -- Luca di Montezemolo, head of Fiat and Ferrari; and
   -- Banca Intesa and Sanpaolo IMI;

In a TCR-Europe report on Dec. 13, Italy glued some conditions
on the sale.  The buyer must:

   -- launch a bid to acquire the whole carrier;

   -- keep Alitalia's logo, brand and national identity;

   -- have convincing and detailed business plans and
      commitments, which may include:

         -- a lock-up,
         -- adequate service offering;
         -- territorial coverage; and
         -- information on job levels

   -- continue to operate out of Milan's Malpensa Airport as
      well as Rome's Fiumicino.

The government aims to complete the process by January 2007.  
Possible advisers include:

   -- Merrill Lynch,
   -- Deutsche Bank,
   -- Lehman Brothers,
   -- Goldman Sachs,
   -- Morgan Stanley,
   -- Rothschild,
   -- JPMorgan, and
   -- Credit Suisse.

                         About Alitalia

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

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

                       Bankruptcy Threat

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

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

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

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


METSO OYJ: Draws EUR100-Mln Loan from European Investment Bank
--------------------------------------------------------------
Metso Oyj drew a EUR100 million loan from the European
Investment Bank.  The purpose of the loan, which was agreed in
2004, is to finance R&D activities carried out within Metso.

The loan has a floating interest rate, its tenor is 10 years and
amortizing will begin in 2010.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology   
corporation with 2005 net sales of approximately EUR4.2 billion.  
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

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

                        *     *     *

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


METSO OYJ: Launches New Paper Machine Production Site in China
--------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, opened a new paper machine
production facility in Shanghai, China.

Metso Paper Technology (Shanghai) Co., Ltd. acquired by Metso in
August 2006, comprises a modern workshop, a foundry and a design
department.  In the first phase the unit will concentrate on
manufacturing paper and board machine sections mainly for Metso
Paper's delivery projects in China. The unit can also supply
components for deliveries outside China. The unit employs some
450 people.

China's paper industry is growing strongly.  Since the year
2000, about half of the world's orders for new, big paper
manufacturing lines have come from China.  The new Shanghai
production facility creates new possibilities for Metso Paper to
further strengthen their customer service, servicing,
manufacturing, and sourcing operations.

More than 30 % of the new paper and board production capacity
built in China since 2000 is based on Metso technology.

Currently Metso Paper has production and customer service
operations at six locations in China.  Total number of personnel
is close to 1,800, including the Valmet-Xian joint venture.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology   
corporation with 2005 net sales of approximately EUR4.2 billion.  
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

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

                        *     *     *

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


PMI UNO: Fitch Affirms BB Rating on EUR4.9-Mln Class D Notes
------------------------------------------------------------
Fitch Ratings upgraded PMI Uno Finance S.r.l's asset-backed
floating-rate Class B and C notes and affirmed the Class A and D
notes:

   -- EUR99.82 million Class A floating-rate notes due 2012
      affirmed at AAA;

   -- EUR10.7 million Class B FRNs due 2012 upgraded to AA+ from
      AA;

   -- EUR8.3 million Class C FRNs due 2014 upgraded to BBB+ from
      BBB; and

   -- EUR4.9 million Class D FRNs due 2014 affirmed at BB.

The rating actions reflect the transaction's stable performance,
increased credit enhancement, and the reduced risk horizon to
maturity.  The portfolio's weighted average credit quality has
remained relatively stable at BBB-/BB+ compared with BBB-/BB+ in
June 2005.

The gross cumulative defaults as of the October 2006 report have
increased to approximately EUR2.8 million from no defaults in
June 2005.  Nevertheless, the short weighted average life of
0.64 years and increase credit enhancement due to amortization
of the notes in line with the amortization of the collateral
have led to the upgrades of the Class B and Class C notes.

PMI Uno is a static cash flow CDO of loans to Italian SMEs.  The
initial EUR232 million portfolio of senior unsecured loans was
originated by UniCredit Banca d'Impresa S.p.A., the corporate
banking unit of Unicredito Italiano S.p.A.

In order to fund the portfolio transfer, PMI Uno, a limited
liability company incorporated in the Republic of Italy, issued
four rated and one unrated Classes of FRNs.  The issuer has also
entered in a swap agreement with UCI in order to hedge the
exposure due to the mismatch between the interest rate
settlement on the loans and that on the notes.  Credit
enhancement is provided by way of subordination and excess
spread.


PMI 2 FINANCE: Fitch Affirms BB Rating on EUR6.2-Million Notes
--------------------------------------------------------------
Fitch Ratings upgraded PMI 2 Finance S.r.l's asset-backed
floating-rate Class B notes and affirmed others:

   -- EUR190.04 million Class A floating rating notes due 2013
      affirmed at AAA;

   -- EUR7 million Class B FRNs due 2013 upgraded to AA+ from
      AA;

   -- EUR11.4 million Class C FRNs due 2015 affirmed at BBB; and

   -- EUR6.2 million Class D FRNs due 2015 affirmed at BB.

The rating actions reflect the transaction's performance to
date, increased credit enhancement, and a reduced risk horizon
to maturity.  The weighted average credit quality of the
portfolio has only slightly deteriorated to BB+/BB from BBB-/BB+
in the Oct. 2005 review.  

The gross cumulative defaults have increased to approximately
EUR1.6 million as opposed to EUR850,000 cumulative defaults in
October 2005.  However, the portfolio is quite granular, with
722 assets, and the weighted average life is only 1.10 years.

Furthermore, the credit enhancement has increased due to the
amortization of the notes in line with the amortization of the
collateral, hence leading to the upgrade of Class B.

PMI 2 Finance S.r.l. is a static cash flow CDO of loans to
Italian SMEs.  The initial EUR307,305,500 portfolio of senior
unsecured loans was originated by UniCredit Banca d'Impresa
S.p.A., the corporate banking unit of Unicredito Italiano S.p.A.
In order to fund the portfolio transfer, PMI 2, a limited
liability company incorporated in the Republic of Italy, issued
four rated classes of FRNs and one unrated class of variable
rate notes.

The issuer has also entered into a swap agreement with UCI in
order to hedge the exposure due to the mismatch between the
interest rate settlement on the loans and that on the notes.
Credit enhancement is provided by way of subordination and
excess spread.


TISCALI SPA: Wind Chairman Naguib Sawiris Mulls Acquiring Firm
--------------------------------------------------------------
Naguib Sawiris, chairman of Wind Telecomunicazioni S.p.A., is
considering the acquisition of Italian telecommunications rival
Tiscali S.p.A., Bloomberg News reports.

Mr. Sawiris revealed that Wind has suspended its initial public
offering indefinitely, pending the completion of the company's
consolidation.

"We're watching the consolidation process," Mr. Sawiris told
Bloomberg.  "If we need cash we'll hold the IPO."

Mr. Sawiris announced in May that he intends to sell his shares
in Weather Investments Srl, the investment vehicle that owns
Wind and a majority stake in Orascom Telecom Holding S.A., for
around EUR2.5 billion in the last quarter of 2006.

                         About Wind

Headquartered in Rome, Italy, Wind Telecomunicazioni S.p.A. --
http://www.wind.it/--  operates of integrated fixed-mobile-
Internet communications services.  The company, classified as
the fastest start-up among telecom companies in Europe, actually
is the third Italian mobile operator, with a market share of
over 19%.

                        About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the  
country.  The group also operates in other European countries,
serving more than seven million subscribers, of which over 1.5
million are broadband users.  It has sold non-core assets to
raise money to cover a EUR250 million bond that matured in July.  
Former chairman and founder Renato Soru owns almost 30% of the
company.

As reported in the TCR-Europe on Oct. 13, Tiscali is focusing on
its Italian and U.K. operations.

                          *     *     *

As reported in TCR-Europe on March 8, Fitch Ratings sustained
Italy-based Tiscali S.p.A.'s Long-term Issuer Default Rating at
CCC with Stable Outlook.  Tiscali's Short-term rating is
downgraded to C from B to be in line with the CCC IDR.  At the
same time, the agency affirmed Tiscali Finance S.A.'s EUR209
million guaranteed notes at B-/RR2.


VENUS-1 FINANCE: Fitch Assigns BB Rating on EUR6.5-Million Notes
----------------------------------------------------------------
Fitch Ratings assigned Venus-1 Finance S.r.l.'s non-performing
loans-backed floating-rate notes, with final maturity in 2019,
expected ratings:

   -- Class A EUR51.4 million: AAA;
   -- Class B EUR8.2 million: AA;
   -- Class C EUR6.3 million: A;
   -- Class D EUR9.1 million: BBB; and
   -- Class E EUR6.5 million: BB.

The final ratings are contingent on the receipt of final
documents conforming to information already received.

This transaction is a securitization of two portfolios of non-
performing loans, Monviso 1 and Monviso 2, both originated in
Italy by Sanpaolo IMI Group and acquired in 2005 by ABN AMRO
Bank N.V. and by FBS Luxembourg S.a.r.l.

The two portfolios are made of secured and unsecured non-
performing loans.  As at the cut-off date of June 30, 2006 the
portfolios comprised a total of 21,911 borrower positions for a
total gross legal claim value of EUR303.2 million.  The
aggregate portfolio consists mainly of unsecured NPLs, with the
remaining 14% made up of mortgage-secured NPLs.

At closing, Venus will purchase the Monviso 1 and Monviso 2
notes by using the proceeds from the issuance of the rated notes
and one Class of unrated notes.  The issuer of the Monviso 1 and
2 notes Monviso Finance S.r.l., is a limited liability company
incorporated in the Republic of Italy under the Securitisation
Law.

The source of payment of interest and repayment of principal on
the Monviso notes is represented by collections on the Monviso
portfolios.  The source of payment of interest and repayment of
principal on the Venus's rated notes will be the payment of
interest and principal received by the issuer as sole holder of
the Monviso 1 and 2 notes.

The expected ratings address the timely payment of interest and
ultimate repayment of principal for the Class A, B, C, D and E
notes by final maturity in 2019. Interest and principal on the
rated notes will be paid sequentially on a half-year basis.  A
EUR6.1-million liquidity facility will be available to Venus to
make up interest shortfalls on the investment-grade notes.


WIND TELECOMUNICAZIONI: Defers IPO Pending Consolidation Result
---------------------------------------------------------------
Naguib Sawiris, chairman of Wind Telecomunicazioni S.p.A.,
disclosed that the company has suspended its initial public
offering indefinitely, pending the completion of its
consolidation.

"We're watching the consolidation process," Mr. Sawiris told
Bloomberg News.  "If we need cash we'll hold the IPO."

Mr. Sawiris announced in May that he intends to sell his shares
in Weather Investments Srl, the investment vehicle that owns
Wind and a majority stake in Orascom Telecom Holding S.A., for
around EUR2.5 billion in the last quarter of 2006.

Mr. Sawiris also revealed plans to acquire Italian
telecommunication rival Tiscali S.p.A., Bloomberg reports.

                        About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the  
country.  The group also operates in other European countries,
serving more than seven million subscribers, of which over 1.5
million are broadband users.  It has sold non-core assets to
raise money to cover a EUR250 million bond that matured in July.  
Former chairman and founder Renato Soru owns almost 30% of the
company.

As reported in the TCR-Europe on Oct. 13, Tiscali is focusing on
its Italian and U.K. operations.

                           About Wind

Headquartered in Rome, Italy, Wind Telecomunicazioni S.p.A. --
http://www.wind.it/--  operates of integrated fixed-mobile-
Internet communications services.  The company, classified as
the fastest start-up among telecom companies in Europe, actually
is the third Italian mobile operator, with a market share of
over 19%.

                          *     *     *

As reported in the TCR-Europe on Dec. 14, Standard & Poor's
Ratings Services revised its outlook on Italian
telecommunications services provider Wind Telecomunicazioni
S.p.A. to stable from positive, and affirmed its 'B+' long-term
corporate credit rating on the company.

Standard & Poor's also affirmed the 'B+' long-term debt rating
on Wind's EUR6.85-billion senior secured credit facility, as
well as the facility's recovery rating of '2', indicating our
expectation of substantial (at least 80%) recovery of principal
for senior secured lenders in the event of a payment default.
At the same time, the 'B' long-term debt rating on Wind's
EUR700-million second-lien credit facility was affirmed.

As reported in the TCR-Europe on Sept. 5, Fitch Ratings changes
Wind Wind Telecomunicazioni S.p.A.'s Outlook to Positive from
Stable and affirmed its Issuer Default rating at B+.  Fitch also
affirmed Wind's first priority senior secured facilities:
BB/RR2, Wind Finance SL S.A.'s second lien notes: BB/RR2 and
Wind Acquisition Finance S.A.'s EUR1.5 billion senior notes at
B+/RR4.


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


AKM & K: Creditors Must File Claims by Jan. 23, 2007
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP AKM & K insolvent.

Creditors have until Jan. 23, 2007, to submit written proofs of
claim to:

         LLP AKM & K
         Floor 3
         Abai Str. 10a
         Atyrau
         Atyrau Region
         Kazakhstan


ALTAI SERVICE: Court Opens Bankruptcy Proceedings
-------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region commenced bankruptcy proceedings against LLP Altai
Service Centre on Nov. 16.


BLAGOUSTROISTVO: Creditors' Claims Due Jan. 16, 2007
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
State Utility Enterprise Blagoustroistvo declared insolvent.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Jan. 16, 2007, to submit written proofs of
claim to:

         State Utility Enterprise Blagoustroistvo
         Valihanov Str. 46-38
         Almaty, Kazakhstan
         Tel: 8 (3272) 73-45-80
              8 (7015) 16-69-72


ELECTRIC SERVICES: Claims Filing Period Ends Jan. 24, 2007
----------------------------------------------------------
LLP Electric Services & Production Ltd. has declared insolvency.
Creditors have until Jan. 24, 2007, to submit written proofs of
claim to:

         LLP Electric Services & Production Ltd.
         Micro District 15, 53-77
         Aktau
         Mangistau Region
         Kazakhstan
         Tel: 8 (3292) 41-17-63


HALYK SAVINGS: Prices Global Depositary Receipts at US$16 Each
--------------------------------------------------------------
JSC Halyk Savings Bank of Kazakhstan disclosed the successful
pricing of its global offering of global depositary receipts at
a price of US$16 per GDR.

                         Summary of Offer

Offer price of US$16 per GDR raising US$680 million.

The initial offer size is 42,500,000 GDRs, increasing to
46,750,000 GDRs if the over-allotment GDRs remain sold in full.
The Global Offer is being made by the Bank's majority
shareholder, Holding Group Almex JSC.

The GDRs will be listed on the London Stock Exchange under the
trading symbol HSBK.  Conditional dealings are expected to start
at 9:00 a.m. U.K. time on Dec. 14.  Admission to the Official
List and the start of unconditional trading will take place on
Dec. 20, 2006.

Prior to closing of the Global Offer on Dec. 20, 2006, the Bank
will launch a rights issue, to holders of ordinary shares
registered prior to the Global Offer.  The Rights Issue will
consist of 55,000,000 ordinary shares priced at KZT511.92 per
share, being the Kazakh Tenge price per share equivalent of the
Offer Price at the reference exchange rate of KZT127.98 per
U.S. dollar, raising approximately KZT28.2 billion.  Almex will
use a portion of the proceeds received from the sale of the GDRs    
to subscribe for at least the full number of shares it is
entitled to purchase pursuant to its pre-emptive rights in the
Rights Issue.

The Bank intends to use the proceeds from this domestic offering
to fund its growth strategy.

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

"We are very pleased with the reception Halyk Bank received on
the institutional roadshow and by the quality of international
investors who have become GDR holders.  This demonstrates the
belief, which our new investors have in the growth story of the
Bank.  We look forward to delivering strong results and
shareholder value to all of our shareholders and GDR holders,"
Mr. Grigoriy Marchenko, Chairman of the Management Board, said.

Headquartered in Almaty, Kazakhstan, Halyk is Kazakhstan's
third-largest bank with a market share of 12% by assets, which
stood at KZT656 billion at end-March 2006.  It is also the
largest retail banking franchise, with a 22% market share in
retail loans and deposits.

                         *     *     *

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

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

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

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

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

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


KAZ AUTO BRIDGE: Proof of Claim Deadline Set for Jan. 26, 2007
--------------------------------------------------------------
LLP Construction Company Kaz Auto Bridge has declared
insolvency.  Creditors have until Jan. 26, 2007, to submit
written proofs of claim to:

         LLP Kaz Auto Bridge
         Smagulov Str. 52a-40
         Atyrau
         Atyrau Region
         Kazakhstan


OTRAR CJSC: Claims Registration Ends Jan. 24, 2007
--------------------------------------------------
CJSC Otrar has declared insolvency.  Creditors have until
Jan. 24, 2007, to submit written proofs of claim to:

         CJSC Otrar
         Tsiolkovsky Str. 11
         Pavlodar
         Pavlodar Region
         Kazakhstan


PROGRESS LLP: Creditors Must File Claims by Jan. 23, 2007
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola Region
declared LLP Progress insolvent without the introduction of the
bankruptcy proceedings.

Creditors have until Jan. 23, 2007, to submit written proofs of
claim to:

         LLP Progress
         Room 308
         Abai Str. 89
         Kokshetau
         Akmola Region
         Kazakhstan


UMIT CJSC: South Kazakhstan Court Starts Bankruptcy Procedure
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan Region commenced bankruptcy proceedings against
CJSC Umit.


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


UR & COMPANY: Creditors Must File Claims by Feb. 1, 2007
--------------------------------------------------------
Kyrgyz-Chinese LLC Ur & Company has declared insolvency.  
Creditors have until Feb. 1, 2007, to submit written proofs of
claim to:

         LLC Ur & Company
         Fuchik Str. 18a-4
         Bishkek, Kyrgyzstan


=================
L I T H U A N I A
=================


MAZEIKIU NAFTA: PKN Orlen Seeks Compensation for October Fire
-------------------------------------------------------------
PKN Orlen SA will seek US$50 million (LTL131 million) in damages
for the fire that scorched AB Mazeikiu Nafta in October from a
claims fund held by Yukos International U.K. B.V., Bloomberg
News reports.

"The damage from the fire will be compensated partly by
insurance, and partly from a US$250 million escrow account that
Yukos will set up under the terms of our agreement announced in
May," Igor Chalupec, Orlen Chief Executive, told Bloomberg.

On May 26, Yukos and PKN Orlen signed a share sale and purchase
deal wherein Poland's PKN will acquire Yukos's 53.7% stake in
Mazeikiu Nafta for US$1.49 billion.  At the same time, PKN Orlen
will purchase the Lithuanian government's 30.66% stake in
Mazeikiu for US$852 million.  Under the agreement, PKN will have
the right to walk away from the transaction by the end of the
year if Mazeikiu's value falls significantly.

PKN has suspended the deal, which was to be completed by March
next year, after a fire broke out at the refinery on Oct. 12.  
Mazeikiu Nafta estimated damages caused by a fire at the
Lithuanian oil refinery to be between US$22.5 million and
US$47.5 million (LTL62 million and LTL131 million).  The
company's 2006 net profit is forecasted to be reduced due to the
incident by US$38 million (LTL105 million).

Some analysts like Bidzina Bejuashvili of JPMorgan Chase & Co.,
have criticized Orlen for not renegotiating the deal price after
the fire, which may have reduced Mazeikiu's value, Blommberg
relays.

Orlen, however, stressed that neither the fire nor a cutoff of
oil supplies by pipeline after a July accident has made the deal
unprofitable.

                       About PKN Orlen

Headquartered in Poland, PKN Orlen operates three refineries
located in Plock, Trzebinia and Jedlicze.  It processes mainly
URAL blend crude oil, shipped from Russia via the Friendship
pipeline.  Alternative supplies of crude oil to Plock may be
sourced via the Pomerania pipeline, which connects the fuel
reloading facility on the Baltic Sea with the Plock refinery.
PKN ORLEN's retail network in Poland is made of 1,326 company
owned stations, 504 affiliated stations and 87 franchised
stations.

                         About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
wned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On July 25, Yukos creditors voted to liquidate the oil firm
after rejecting a management rescue plan, which valued the
company's assets at about US$30 billion.  This would have
permitted Yukos to continue its operations and attempt to pay
off US$18 billion in debts through asset sales.

The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate Yukos Oil and declared what was
once Russia's biggest oil firm bankrupt on Aug. 1.  The expected
court ruling paves the way for the company's liquidation and
auction.

                        About Mazeikiu

Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta
-- http://nafta.it/en-- is an integrated downstream oil company
that comprises in one complex pipeline operations, oil refining,
marine terminal operations, and logistics of crude oil and
refined products.

                        *     *     *

As reported in the TCR-Europe on Oct. 17, Fitch Ratings is
keeping Mazeikiu Nafta's Issuer Default rating of 'B+' on Rating
Watch Positive despite Friday's fire at its Mazeikiai refinery.
MN's Short-term rating is affirmed at 'B'.

The RWP reflects MN's pending ownership change as a result of
Polish oil refining and marketing company Polski Koncern Naftowy
ORLEN S.A.'s (rated 'BBB', Rating Watch Negative) planned
acquisition of the Lithuanian company.


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


YUKOS FINANCE: PKN Orlen Seeks Damages for Mazeikiu Nafta Fire
--------------------------------------------------------------
PKN Orlen SA will seek US$50 million (LTL131 million) in damages
for the fire that scorched AB Mazeikiu Nafta in October from a
claims fund held by Yukos International U.K. B.V., Bloomberg
News reports.

"The damage from the fire will be compensated partly by
insurance, and partly from a US$250 million escrow account that
Yukos will set up under the terms of our agreement announced in
May," Igor Chalupec, Orlen Chief Executive, told Bloomberg.

On May 26, Yukos and PKN Orlen signed a share sale and purchase
deal wherein Poland's PKN will acquire Yukos's 53.7% stake in
Mazeikiu Nafta for US$1.49 billion.  At the same time, PKN Orlen
will purchase the Lithuanian government's 30.66% stake in
Mazeikiu for US$852 million.  Under the agreement, PKN will have
the right to walk away from the transaction by the end of the
year if Mazeikiu's value falls significantly.

PKN has suspended the deal, which was to be completed by March
next year, after a fire broke out at the refinery on Oct. 12.  
Mazeikiu Nafta estimated damages caused by a fire at the
Lithuanian oil refinery to be between US$22.5 million and
US$47.5 million (LTL62 million and LTL131 million).  The
company's 2006 net profit is forecasted to be reduced due to the
incident by US$38 million (LTL105 million).

Some analysts like Bidzina Bejuashvili of JPMorgan Chase & Co.,
have criticized Orlen for not renegotiating the deal price after
the fire, which may have reduced Mazeikiu's value, Blommberg
relays.

Orlen, however, stressed that neither the fire nor a cutoff of
oil supplies by pipeline after a July accident has made the deal
unprofitable.

                       About PKN Orlen

Headquartered in Poland, PKN Orlen operates three refineries
located in Plock, Trzebinia and Jedlicze.  It processes mainly
URAL blend crude oil, shipped from Russia via the Friendship
pipeline.  Alternative supplies of crude oil to Plock may be
sourced via the Pomerania pipeline, which connects the fuel
reloading facility on the Baltic Sea with the Plock refinery.
PKN ORLEN's retail network in Poland is made of 1,326 company
owned stations, 504 affiliated stations and 87 franchised
stations.

                        About Mazeikiu

Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta
-- http://nafta.it/en-- is an integrated downstream oil company
that comprises in one complex pipeline operations, oil refining,
marine terminal operations, and logistics of crude oil and
refined products.

                         About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
wned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On July 25, Yukos creditors voted to liquidate the oil firm
after rejecting a management rescue plan, which valued the
company's assets at about US$30 billion.  This would have
permitted Yukos to continue its operations and attempt to pay
off US$18 billion in debts through asset sales.

The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate Yukos Oil and declared what was
once Russia's biggest oil firm bankrupt on Aug. 1.  The expected
court ruling paves the way for the company's liquidation and
auction.


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


LUKOIL OAO: Inks Cooperation Deal with Russia's Nentsk District
---------------------------------------------------------------
Vagit Alekperov, President of OAO Lukoil, and Valery Potapenko,
Head of the Nentsk Autonomous District Administration, signed a
Cooperation Agreement between the Company and the Nentsk
Autonomous District Administration in Naryan-Mar.

In particular, the parties agreed to continue cooperation in the
field of geological survey, oil and gas production, development
of petroleum product supply system, production and social
infrastructure.  On its part, OAO Lukoil intends to pursue the
policy of hydrocarbon production growth and investment inflow
into development of oil and gas resources, transport
infrastructure as well as petroleum products storage and
downstream sites in the Nenetsk Autonomous District, including
construction of new gas stations and reconstruction of those
already in operation.

OOO Lukoil-Komi will act as operator in providing execution of
terms and conditions outlined in the License Agreements in the
framework of social and economic partnership with the Nenetsk
Autonomous District.

To provide execution of terms and conditions of the Cooperation
Agreement, the Parties will execute a Protocol once a year to
define specific projects for the calendar year period.

Inter alia, the 2007 Protocol states that this year OAO LUKOIL
will extract at least 5.8 million tons of oil in the Nenetsk
Autonomous District.  On its part, in order to improve the
environmental state in the region, the Nenetsk Autonomous
District Administration intends to propose an initiative to the
Government of the Russian Federation and the State Duma to ban
the use of diesel fuel with sulfur content exceeding 0.05% on
the territory of the Russian Federation.

"The Nenetsk Autonomous District is one of the key regions of
OAO LUKOIL operation.  It is one of the major reasons we are
interested in setting long-term mutually beneficial cooperation
with the Administration of the region.  I am sure that the
Agreement we have signed today will contribute to improvement of
social and economic state in the District and development of our
Company's business," stated Vagit Alekperov, President of OAO
Lukoil.

                          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, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
Lukoil OAO to 'BB+' from 'BB'.  S&P said the outlook is
positive.


LUKOIL OAO Inks Deal Protocol with St. Petersburg Government
----------------------------------------------------------------
Vagit Alekperov, President of OAO Lukoil, and Valentina
Matvienko, Governor of Saint-Petersburg, signed a Protocol to
Cooperation Agreement between the city and the company.

Inter alia, the parties have agreed to cooperate in the field of
development and implementation of programs aimed at improving
quality and environmental safety of petroleum products used in
the city.

On its part, OAO Lukoil will take efforts to boost development
of its subsidiaries registered in the city, with their operation
accounting for EUR3 billion in tax payments into the Saint-
Petersburg budget.

"Our long-term cooperation with the Saint-Petersburg Government
meets the interests of both the citizens of Saint-Petersburg and
OAO Lukoil," Mr. Alekperov said.  "I am confident that together
we will successfully implement many other new projects, which
will have a positive impact on the social and economic state of
the city and will contribute to development of our Company's
business."

                          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, 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.


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


FERRO CORP: Files First & Second Quarter Financial Reports
----------------------------------------------------------
Ferro Corp. filed its Quarterly Reports on Form 10-Q with the
U.S. Securities and Exchange Commission for the three-month
periods ended March 31 and June 30, 2006.

A full-text copy of the company's quarterly report for the
period ended March 31, 2006 is available for free at:

              http://researcharchives.com/t/s?16dd

A full-text copy of the company's quarterly report for the
period ended June 30, 2006 is available for free at:

              http://researcharchives.com/t/s?16dc

Sales for the first quarter ended March 31, 2006, were
US$505.2 million, an increase of 9.4% from the first quarter of
2005.  Net income from continuing operations was US$8.4 million,
compared with US$600,000 in the first quarter of 2005.

Sales for the second quarter, ended June 30, 2006, were
US$538.5 million, an increase of 8.4% from the prior year's
quarter. Net income from continuing operations was US$10.5
million, compared with US$8.1 million, or US$0.18 per share, in
the second quarter of 2005.

"Ferro turned in an excellent first half," said President and
CEO James Kirsch.  "We are looking forward to building on this
good start as we complete 2006 and move into 2007.  We will
continue to win from within as we build our foundation for high-
quality earnings growth."

Included in the first quarter net income from continuing
operations were certain items that had a combined negative pre-
tax effect of approximately US$4.8 million.  These charges were
primarily from expenses related to the accounting investigation
and restatement of 2003 and first quarter 2004 results.  These
items reduced first quarter net income from continuing
operations by US$0.07 per share.  In the first quarter of 2005,
these charges reduced net income by US$0.11 per share.  In
addition, the Company recognized a US$2.9 million non-cash, pre-
tax loss in the first quarter resulting from mark-to-market
supply contracts for natural gas.  The Company recognized a
US$2.4 million non-cash, pre-tax gain from natural gas supply
contracts in the 2005 first quarter.

Included in the second quarter net income were additional items
that had a combined net unfavorable pre-tax effect of
approximately US$3.7 million.  These items primarily included
charges for the write-off of previously unamortized fees and
discounts for certain of the Company's former borrowings, and
charges related to the accounting investigation and restatement.  
These items reduced second quarter net income by approximately
US$0.06 per share.  In the second quarter of 2005, charges
reduced net income by US$0.04 per share.  In addition, during
the 2006 second quarter, the Company recognized a US$300,000
non-cash, pre-tax, mark-to-market loss from natural gas
contracts, compared to an US$800,000 loss in the second quarter
of 2005.

              Changes in 2006 First Quarter Results

The results for the 2006 first quarter differ from the
preliminary earnings announced by the Company on July 12, 2006,
largely as a result of the final determination of the
appropriate timing for charges and benefits associated with a
benefit plan curtailment and changes in the Company's employee
pension plan and retiree benefits programs.  Charges and
benefits related to the benefit plan curtailment and pension
plan changes are recorded in the results for the second quarter
of 2006 rather than in the first quarter, as originally
anticipated.  As a result of the changes, net income for the
first quarter is US$1.3 million higher than originally
indicated.

                     Second Quarter Results

Sales for the second quarter set a record, surpassing the record
set in the first quarter of 2006.  Sales were particularly
strong in the Electronic Materials segment, where revenue
increased by 33%.  Sales also increased in Color and Glass
Performance Materials, Performance Coatings and Polymer
Additives.  Sales declined less than one percent in Specialty
Plastics and declined in the Other segment.  Sales benefited by
less than one percent from changes in foreign exchange rates.

Most of the revenue increase for the quarter was due to
increases in average selling prices, including changes in
product mix and price increases.  Total product volume was about
flat with the second quarter of 2005.

Gross margins for the second quarter were 20.6% of sales.  
Across the Company, improved pricing and product mix were able
to fully offset increases in the cost of raw materials during
the quarter.  However, an increase in precious metal prices,
which are generally passed through to customers without mark-up,
lowered the gross margin percentage.

Sales, general and administrative expenses for the second
quarter were US$78.7 million, or 14.6% of sales.  SG&A expense
was nearly flat with the prior-year and was lower as a percent
of sales than the 15.9% recorded in the second quarter of 2005.

Total segment income for the second quarter was US$42.7 million,
an increase of 19.3% from the second quarter of 2005.  For the
first half, total segment income increased to US$84.9 million,
an increase of US$21.4 million, or 34%, from the first half of
2005.

As of the end of June, total debt, including off balance sheet
arrangements, was US$660.4 million, an increase of US$105.7
million from the end of 2005.  As previously indicated, this
increase was the result of increased deposit requirements for
precious metal consignment arrangements and for working capital
to support increased sales.  The Company expects to reduce the
amount of material under consignment requiring cash deposits by
year end and anticipates that substantially all of the deposits
will be returned in the first quarter of 2007.

                Third Quarter Preliminary Results

Sales for the third quarter are expected to be approximately
US$500 million, up more than 7% from the third quarter of 2005.  
Current business conditions remain generally favorable in the
Company's markets, although there has been some weakening of
demand from specific regions and application markets.  In the
U.S., housing and automotive-related demand was weaker than
previously expected while demand in Europe continued to be
relatively strong.  In addition to these market issues, interest
expense for the third quarter was higher than originally
forecast, as the Company continued to fund a higher-than-
expected level of cash deposits for precious metal consignments.

The Company now expects to report net income for the third
quarter ended Sept. 30, 2006 of approximately US$0.12 per
diluted share. Included in the preliminary earnings per-share
results are charges, primarily related to previously announced
restructuring programs, which reduced earnings by approximately
2 cents per share.  Fourth quarter 2006 sales are expected to be
modestly higher than in the third quarter.

                        About Ferro Corp

Headquartered in Cleveland, Ohio, Ferro Corporation --
http://www.ferro.com/-- supplies technology-based performance  
materials for manufacturers.  Ferro materials enhance the
performance of products in a variety of end markets, including
electronics, telecommunications, pharmaceuticals, building and
renovation, appliances, automotive, household furnishings, and
industrial products.  The Company has approximately 6,800
employees globally including Belgium, France, Germany, Italy,
the Netherlands, Portugal, Spain, and the United Kingdom.

                         *     *     *

Standard & Poor's Ratings Services' 'B+' long-term corporate
credit and 'B' senior unsecured debt ratings on Ferro Corp.
remains on CreditWatch with negative implications, where they
were placed Nov. 18, 2005.


GENERAL MOTORS: S&P Affirms B Corporate Credit Rating
-----------------------------------------------------
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.  

The outlook is negative.  

At Sept. 30, 2006, GM's automotive balance sheet debt
outstanding totaled US$32.8 billion.

The affirmation reflects our view that the comprehensive costs
of a consensual, rather than court-imposed, resolution of GM's
operational and financial exposure to bankrupt former unit
Delphi Corp. is well within the scope of GM's liquidity,
particularly in light of its recent sale of a 51%
stake in GMAC LLC (formerly General Motors Acceptance Corp.).  
Still, progress toward a resolution concerning Delphi remains
lengthy and complex, involving negotiations among many disparate
parties, and no specific outcome is assured.  

The affirmation does not incorporate the consequences of an
outright collapse in talks or a Delphi strike because Standard &
Poor's currently think these scenarios are unlikely.  If GM were
to experience severe Delphi-related operational disruptions, or
if GM's payments to resolve Delphi's restructuring were much
greater than Standard & Poor's expects, it would likely review
the ratings on GM.

Because of the GMAC sale, Standard & Poor's expects GM to end
2006 with a cash and short-term VEBA balance in excess of the
level at Sept. 30, 2006, about US$20.4 billion, even after a
substantial fourth-quarter cash burn that resulted in part from
lower North American production.  For the first nine months of
2006,  GM's automotive operating cash flow was a negative
US$4.2 billion (before cash restructuring costs) versus a
negative US$7.1 billion in the comparable period in 2005.
Fourth-quarter 2006 automotive cash flow will be worse than last
year's slightly positive results in the same quarter because of
a 13% decline in production from 2005.

GM still faces daunting near-term and long-term competitive and
structural challenges in its North American automotive
operations.

"We are still concerned about GM's ability to generate adequate
profitability and cash flow in this key region for the
foreseeable future," said Standard & Poor's credit analyst
Robert Schulz, "even if cash use in North America is declining
from last year's levels."  Although the company has demonstrated
progress in reducing its cost base and remains in a solid part
of its product launch cycle, the rating agency still considers
prospects for a sustainable recovery to be fragile and
vulnerable to a host of challenges in 2007, including consumer
demand and preferences, raw material costs, and the outcome of
the fall 2007 labor negotiations.  It would not take a very
sharp downturn in the North American market or particularly
significant underperformance to reverse any progress the company
has made in reducing its cash burn.

GM's ratings reflect primarily the lack of intermediate-term
visibility for the company's North American automotive
operations, given the magnitude of recent losses, negative cash
flow generation, and the need to continue implementing its
massive cost-cutting program.  GM has been hampered by
persistent market share erosion and adverse product mix trends
in the U.S., most notably a precipitous weakening of sales of
midsize and large SUVs -- products that had been highly
disproportionate contributors to GM's earnings.  GM is
undertaking yet another significant round of cost reductions to
address these challenges, but sustainable improvements in North
America will also require success with product acceptance and
pricing, in addition to cost reductions.  Some, but not all, new
products launched in 2006 are selling well.  Consumer acceptance
of GM's new full-size pickup truck product line and
other launches will remain crucial determinants of results into
2007.

GM has significantly improved its pension funding position in
recent years, but the unfunded retiree medical liability remains
onerous, even after significant negotiated reductions.  The
liability totaled approximately US$64 billion at year-end 2005,
excluding from offsetting plan assets readily available assets
of the VEBA trust.  This deficit will decline after GM reduces
the liability by US$19.9 billion as a result of benefit
reductions for hourly and salaried employees, the effect of
employee buyouts, and a higher discount rate.  These factors
will be partly offset by US$4 billion in VEBA withdrawals made
during 2006.

The rating outlook on GM is negative.  Prospects for GM's
automotive operations remain clouded.  The ratings could be
lowered further if Standard & Poor's came to expect that GM's
substantial cash outflow would fail to continue to moderate due
to setbacks, whether GM-specific or stemming from market
conditions.  GM would need to reverse its current financial and
operational trends, and sustain such a reversal, before the
rating agency would revise its outlook to stable.


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


ACCESSIBLE DWELLING: Moscow Court Starts Bankruptcy Supervision
---------------------------------------------------------------
The Arbitration Court of Moscow commenced bankruptcy supervision
procedure on OJSC Trans-National Financial and Industrial Group
Accessible Dwelling.  The case is docketed under Case No.
A40-65985/06-78-1173 B.

The Temporary Insolvency Manager is:

         N. Adamov
         Post User Box 11
         Building 1
         Molodogvardeyskaya Str. 9
         121467 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 Trans-National Financial And Industrial Group
         Accessible Dwelling
         Building 2
         Zemlyanoy Val 50A/8
         109028 Moscow Region
         Russia


BUILDER LLC: Court Names V. Yurin as Insolvency Manager
-------------------------------------------------------
The Arbitration Court of Stavropol Region appointed Mr. V. Yurin
as Insolvency Manager for LLC Builder.  He can be reached at:

         V. Yurin
         Prikumskaya Str. 36
         Budenovsk
         356805 Stavropol Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A63-14401/06-s5.

The Arbitration Court of Stavropol Region is located at:

         Mira Str. 458 b
         Stavropol Region
         Russia

The Debtor can be reached at:

         LLC Builder
         Kayasula
         Neftekumskiy Region
         Stavropol Region
         Russia


BUILDER OJSC: Court Names M. Shumakov as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Kursk Region appointed Mr. M. Shumakov
as Insolvency Manager for OJSC Builder.  He can be reached at:

         M. Shumakov
         Apartment 178
         Dimitrova Str. 84
         305004 Kursk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A35-3758/06 g.

The Arbitration Court of Kursk Region is located at:

         K. Marksa Str. 25
         305004 Kursk Region
         Russia

The Debtor can be reached at:

         OJSC Builder
         Oktyabrskaya Str. 56
         Konyshevka
         Konyshevskiy Region
         307620 Kursk Region
         Russia


BUILDING COMPANY-1: Court Names A. Kubasov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Moscow appointed Mr. A. Kubasov as
Insolvency Manager for CJSC Building Company-1 (TIN 5035011098).  
He can be reached at:

         A. Kubasov
         Krasnokazarmennaya Str. 9
         111250 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A41-K2-14539/06.

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Building Company-1
         K. Marksa Str. 4
         Pavlovskiy Posad
         Moscow Region
         Russia


IZOPLAST CJSC: Court Names R. Gaynetdinov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Khanty-Mansiyskiy Autonomous Region
appointed Mr. R. Gaynetdinov as Insolvency Manager for CJSC
Izoplast.  He can be reached at:

         R. Gaynetdinov
         Post User Box 38
         Pyt'-Yakh
         628381 Tyumen Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A75-5520/2005.

The Arbitration Court of Khanty-Mansiyskiy Autonomous Region is
located at:

         Lenina Str. 54/1
         Khanty-Mansiysk Autonomous Region
         Russia

The Debtor can be reached at:

         CJSC Izoplast
         Room 54
         Krylova Str. 13
         Khanty-Mansiyskiy Autonomous Region-Yugra
         628400 Surgut
         Russia


KAMESHKOVSKIY BAKERY: Court Names M. Sevryukov to Manage Assets
---------------------------------------------------------------
The Arbitration Court of Vladimir Region appointed Mr. M.
Sevryukov as Insolvency Manager for OJSC Kameshkovskiy Bakery.  
He can be reached at:

         M. Sevryukov
         Seregina Str. 20
         305018 Kursk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A11-5898/2006-K1-414B.

The Arbitration Court of Vladimir Region is located at:

         Oktyabrskiy Pr. 14
         600025 Vladimir Region
         Russia

The Debtor can be reached at:

         OJSC Kameshkovskiy Bakery
         Dorozhnaya Str. 5
         Kameshhkovo
         140400 Vladimir Region
         Russia


KARGOM-DIAMOND CJSC: Bankruptcy Hearing Slated for April 3
----------------------------------------------------------
The Arbitration Court of Moscow will convene at 11:00 a.m. on
April 3, 2007, to hear the bankruptcy supervision procedure on
CJSC Kargom-Diamond.  The case is docketed under Case No.
A40-61032/06-101-838/B.

The Temporary Insolvency Manager is:

         N. Azev
         Post User Box 70.
         124482 Moscow Region
         Russia

The Arbitration Court of Moscow is located at:

         Novaya Basmannaya Str. 10
         Moscow Region
         Russia

The Debtor can be reached at:

         CJSC Kargom-Diamond
         2nd Mytishinskaya Str. 2
         129626 Moscow Region
         Russia


KUBOVSKIY WOOD-PROM-KHOZ: Names A. Pirogov to Manage Assets
-----------------------------------------------------------
The Arbitration Court of Kareliya Republic appointed Mr. A.
Pirogov as Insolvency Manager for OJSC Kubovskiy Wood-Prom-Khoz.  
He can be reached at:

         A. Pirogov
         Post User Box 285
         Petrozavodsk
         185035 Kareliya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
26-685/2006-18.

The Arbitration Court of Kareliya Republic is located at:

         Krasnoarmeyskaya Str. 24a
         Petrozavodsk
         185610 Kareliya Republic
         Russia

The Debtor can be reached at:

         OJSC Kubovskiy Wood-Prom-Khoz
         Tsentralnaya Str. 29
         Kubovo
         Pudozhskiy Region
         Kareliya Republic
         Russia


KURKINO-AGRO-SERVICE: Court Names G. Voropaev to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Tula Region appointed Mr. G. Voropaev
as Insolvency Manager for OJSC Kurkino-Agro-Service.  He can be
reached at:

         G. Voropaev
         Arsenalnaya Str. 1D
         300002 Tula Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A68-2392/06-256/B.

The Arbitration Court of Tula Region is located at:

         Hall 35
         Sovetskaya Str. 112
         Tula Region
         Russia

The Debtor can be reached at:

         OJSC Kurkino-Agro-Service
         Oktyabrskaya Str. 139
         Kurkino
         Tula Region
         Russia


LUKOIL OAO: Inks Cooperation Deal with Russia's Nentsk District
---------------------------------------------------------------
Vagit Alekperov, President of OAO Lukoil, and Valery Potapenko,
Head of the Nentsk Autonomous District Administration, signed a
Cooperation Agreement between the Company and the Nentsk
Autonomous District Administration in Naryan-Mar.

In particular, the parties agreed to continue cooperation in the
field of geological survey, oil and gas production, development
of petroleum product supply system, production and social
infrastructure.  On its part, OAO Lukoil intends to pursue the
policy of hydrocarbon production growth and investment inflow
into development of oil and gas resources, transport
infrastructure as well as petroleum products storage and
downstream sites in the Nenetsk Autonomous District, including
construction of new gas stations and reconstruction of those
already in operation.

OOO Lukoil-Komi will act as operator in providing execution of
terms and conditions outlined in the License Agreements in the
framework of social and economic partnership with the Nenetsk
Autonomous District.

To provide execution of terms and conditions of the Cooperation
Agreement, the Parties will execute a Protocol once a year to
define specific projects for the calendar year period.

Inter alia, the 2007 Protocol states that this year OAO LUKOIL
will extract at least 5.8 million tons of oil in the Nenetsk
Autonomous District.  On its part, in order to improve the
environmental state in the region, the Nenetsk Autonomous
District Administration intends to propose an initiative to the
Government of the Russian Federation and the State Duma to ban
the use of diesel fuel with sulfur content exceeding 0.05% on
the territory of the Russian Federation.

"The Nenetsk Autonomous District is one of the key regions of
OAO LUKOIL operation.  It is one of the major reasons we are
interested in setting long-term mutually beneficial cooperation
with the Administration of the region.  I am sure that the
Agreement we have signed today will contribute to improvement of
social and economic state in the District and development of our
Company's business," stated Vagit Alekperov, President of OAO
Lukoil.

                          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, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
Lukoil OAO to 'BB+' from 'BB'.  S&P said the outlook is
positive.


LUKOIL OAO Inks Deal Protocol with St. Petersburg Government
----------------------------------------------------------------
Vagit Alekperov, President of OAO Lukoil, and Valentina
Matvienko, Governor of Saint-Petersburg, signed a Protocol to
Cooperation Agreement between the city and the company.

Inter alia, the parties have agreed to cooperate in the field of
development and implementation of programs aimed at improving
quality and environmental safety of petroleum products used in
the city.

On its part, OAO Lukoil will take efforts to boost development
of its subsidiaries registered in the city, with their operation
accounting for EUR3 billion in tax payments into the Saint-
Petersburg budget.

"Our long-term cooperation with the Saint-Petersburg Government
meets the interests of both the citizens of Saint-Petersburg and
OAO Lukoil," Mr. Alekperov said.  "I am confident that together
we will successfully implement many other new projects, which
will have a positive impact on the social and economic state of
the city and will contribute to development of our Company's
business."

                          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, 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.


MALYSHEVSKIYE EMERALDS: Names A. Shabarova to Manage Assets
-----------------------------------------------------------
The Arbitration Court of Sverdlovsk Region appointed Ms. A.
Shabarova as Insolvency Manager for OJSC Malyshevskiye Emeralds.  
She can be reached at:

         A. Shabarova
         Post User Box 137
         Taganskaya Str. 51
         620051 Ekaterinburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A60-4389/06-S11.

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         OJSC Malyshevskiye Emeralds
         Azina Str. 1a   
         Malysheva
         Asbest
         Sverdlovsk Region
         Russia


NEVINNOMYSSKIY WOOL: External Court Starts Bankruptcy Procedure
---------------------------------------------------------------
The Arbitration Court of Stavropol Region commenced external
management bankruptcy procedure on CJSC Nevinnomysskiy Wool
Enterprise.  The case is docketed under Case No. A63-997/02-S5.

The External Insolvency Manager is:

         A. Zaytsev
         Mayakovskogo Str. 28
         Nevinnomysk
         357101 Stavropol Region
         Russia

The Arbitration Court of Stavropol Region is located at:

         Mira Str. 4586
         Stavropol Region
         Russia

The Debtor can be reached at:

         CJSC Nevinnomysskiy Wool Enterprise
         Mayakovskogo Str. 28
         Nevinnomysk
         357101 Stavropol Region
         Russia


SEVERNYJ LLC: Court Names A. Fazlyev as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Orenburg Region appointed Mr. A.
Fazlyev as Insolvency Manager for LLC Diary Severnyj.  He can be
reached at:

         A. Fazlyev
         Post User Box 220
         450080 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A47-10204/2006-14GK.

The Arbitration Court of Orenburg Region is located at:

         9th January Str. 64
         460046 Orenburg Region
         Russia

The Debtor can be reached at:

         LLC Diary Severnyj
         Severnoye
         Severnyj Region
         Orenburg Region
         Russia


TALITSKAYA BUILDING: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Sverdlovsk Region commenced bankruptcy
supervision procedure on LLC Talitskaya Building Company.
The case is docketed under Case No. A60-20805/06-S11.

The Temporary Insolvency Manager is:

         A. Shabrova
         Post User Box 137
         Taganskaya Str. 51
         620051 Ekaterinburg Region
         Russia

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         LLC Talitskaya Building Company
         Sverdlova Str. 33 A
         Talitsa
         Sverdlovsk Region
         Russia


TARNOGSKIY WOOD-PROM-KHOZ: Court Hearing Slated for March 12
------------------------------------------------------------
The Arbitration Court of Vologda Region will convene at
2:00 p.m. on March 12, 2007, to hear the bankruptcy supervision
procedure on LLC Tarnogskiy Wood-Prom-Khoz.  The case is
docketed under Case No. A13-7607/2006-25.

The Temporary Insolvency Manager is:

         N. Kazakov
         Sovetskiy Pr. 6-218
         160000 Vologda Region
         Russia

The Arbitration Court of Vologda Region is located at:

         Hall 4
         Gertsena Str. 1a
         Vologda Region
         Russia

The Debtor can be reached at:

         LLC Tarnogskiy Wood-Prom-Khoz
         Tarnogskiy Gorodok
         Vologda Region
         Russia


YUKOS OIL: PKN Orlen Seeks Compensation for Mazeikiu Nafta Fire
---------------------------------------------------------------
PKN Orlen SA will seek US$50 million (LTL131 million) in damages
for the fire that scorched AB Mazeikiu Nafta in October from a
claims fund held by Yukos International U.K. B.V., Bloomberg
News reports.

"The damage from the fire will be compensated partly by
insurance, and partly from a US$250 million escrow account that
Yukos will set up under the terms of our agreement announced in
May," Igor Chalupec, Orlen Chief Executive, told Bloomberg.

On May 26, Yukos and PKN Orlen signed a share sale and purchase
deal wherein Poland's PKN will acquire Yukos's 53.7% stake in
Mazeikiu Nafta for US$1.49 billion.  At the same time, PKN Orlen
will purchase the Lithuanian government's 30.66% stake in
Mazeikiu for US$852 million.  Under the agreement, PKN will have
the right to walk away from the transaction by the end of the
year if Mazeikiu's value falls significantly.

PKN has suspended the deal, which was to be completed by March
next year, after a fire broke out at the refinery on Oct. 12.  
Mazeikiu Nafta estimated damages caused by a fire at the
Lithuanian oil refinery to be between US$22.5 million and
US$47.5 million (LTL62 million and LTL131 million).  The
company's 2006 net profit is forecasted to be reduced due to the
incident by US$38 million (LTL105 million).

Some analysts like Bidzina Bejuashvili of JPMorgan Chase & Co.,
have criticized Orlen for not renegotiating the deal price after
the fire, which may have reduced Mazeikiu's value, Blommberg
relays.

Orlen, however, stressed that neither the fire nor a cutoff of
oil supplies by pipeline after a July accident has made the deal
unprofitable.

                       About PKN Orlen

Headquartered in Poland, PKN Orlen operates three refineries
located in Plock, Trzebinia and Jedlicze.  It processes mainly
URAL blend crude oil, shipped from Russia via the Friendship
pipeline.  Alternative supplies of crude oil to Plock may be
sourced via the Pomerania pipeline, which connects the fuel
reloading facility on the Baltic Sea with the Plock refinery.
PKN ORLEN's retail network in Poland is made of 1,326 company
owned stations, 504 affiliated stations and 87 franchised
stations.

                        About Mazeikiu

Headquartered in Mazeikiai District, Lithuania, Mazeikiu Nafta
-- http://nafta.it/en-- is an integrated downstream oil company
that comprises in one complex pipeline operations, oil refining,
marine terminal operations, and logistics of crude oil and
refined products.

                         About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
wned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On July 25, Yukos creditors voted to liquidate the oil firm
after rejecting a management rescue plan, which valued the
company's assets at about US$30 billion.  This would have
permitted Yukos to continue its operations and attempt to pay
off US$18 billion in debts through asset sales.

The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate Yukos Oil and declared what was
once Russia's biggest oil firm bankrupt on Aug. 1.  The expected
court ruling paves the way for the company's liquidation and
auction.


=============================
S L O V A K   R E P U B L I C
=============================


TUBE CITY: Proposed Buyout Cues Moody's B1 Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating,
Ba3 senior secured rating and a B3 senior subordinated rating to
Tube City IMS Corporation in connection with the proposed
financing for Onex Corporation's purchase of TCIMS from
Wellspring Capital for approximately US$653 million.

Acquisition consideration includes US$440 million of debt and
US$213 million of new and carryover management equity.  The B1
corporate family rating is unchanged from the CFR that TCIMS
held when owned by Wellspring.

The rating outlook is stable.

These ratings were assigned:

   -- Ba3, LGD3, 38% to the US$140 million of senior secured
      term loan due 2014;

   -- B3, LGD5, 81% to the US$250 million of senior subordinated
      notes due 2015;

   -- B1 corporate family rating;

   -- B1 Probability of Default Rating; and,

   -- SGL-2 speculative grade liquidity rating.

TCIMS's existing ratings will be withdrawn at the conclusion of
the proposed financing.

The ratings reflect TCIMS's dependence on sales to customers in
the cyclical steel industry, predominantly in the US, and its
relatively high customer concentration.  This makes the company
vulnerable to the loss of a large customer or a general downturn
in the steel industry, although its revenues are typically tied
to steel production rather than steel prices.

Moody's believes that TCIMS's strong market position in North
America, while a tribute to the quality and cost effectiveness
of its service, limits the upside for organic growth.

Furthermore, since the winning of new business often requires
upfront capital investment, free cash flow is restrained and
there is the risk that the competitively bid multi-year
contracts will lock it into unfavorably priced contracts.  

The ratings also reflect TCIMS's high leverage, pro forma 5.2x
LTM adjusted EBITDA, and the modest size of its tangible assets.

TCIMS's ratings are supported by the company's role as an
entrenched provider of mill services at over 65 North American
and European steel mills and its favorable track record of
retaining customers and cross-selling services at a broad cross-
section of integrated and minimill steel facilities.  

Over the last two years, since the combination of Tube City and
International Mill Services, the company's business has been
quite stable and it has added a number of new customers and
contacts, including several in Western Europe.  Stability has
been enhanced by TCIMS's long-standing customer relationships,
good reputation, long-term contracts, favorable steel industry
conditions, and the continuing industry trend for greater
outsourcing of non-core activities such as material handling,
scrap management, metal recovery and slag processing.

The senior secured term loan is rated Ba3, which reflects its
38% loss-given-default.  The term loan is secured by a first
lien on all the company's fixed assets, by a pledge of the stock
of Tube City, and a second lien on the accounts receivable and
inventory securing the unrated US$165 million asset-backed
revolver.  The book value of the collateral securing the term
loan is approximately US$130 million.

The B3 rating for the senior subordinated notes reflects their
81% loss-given-default and their contractual subordination to
all of TCIMS's other debt.

Moody's previous rating action on TCIMS was taken on
Nov. 13, 2006, when its ratings were placed under review for
possible downgrade upon the announcement of Onex Corporation's
agreement to purchase the company.

Tube City IMS Corporation, headquartered in Glassport,
Pennsylvania, is a leading provider of on-site steel mill
services such as material handling, scrap management, metal
recovery and slag processing.  Its sales for the 12 months ended
Sept. 30, 2006, were US$1.35 billion, although revenue net of
the cost of scrap shipments was US$365 million.


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


STEKLARNA ROGASKA: Glassmaker Exits Bankruptcy Protection
---------------------------------------------------------
Steklarna Rogaska D.D. has emerged from bankruptcy protection
last week, the Slovene Press Agency STA reports citing Robert
Licen, the company's general manager, as saying.

The glassmaker's bankruptcy exit came after Zvon-owned Julius
Fund acquired Steklarna for EUR10.43 million (SIT2.5 billion).  
Mr. Licen said the fund has further increased its capital to an
additional EUR4.17 million (SIT1 billion) to allow the company
to repay all of its outstanding bankruptcy claims, STA relates.

Mr. Licen expects the company, which employs 970 workers, to end
the year without a loss.

Leo Invanjko, general manager of the Julius fund, told the
Slovene press agency that the fund purchased the claims of
Steklarna's creditors for an undisclosed amount.

Steklarna's creditors include Slovenia's three largest banks:  
Nova Ljubljanska banka, Nova Kreditna banka Maribor and SKB.  
The banks had converted their outstanding claims into ownership
stakes in January, STA discloses.

Under the terms of Steklarna's restructuring plan, the separate
owners would recover 100% of their claims, while ordinary
creditors would recover 20%.

As reported in the Troubled Company Reporter-Europe on Nov. 24,
2005, the company's biggest creditors agreed to convert EUR8.3
billion (SIT2 billion) of their claims into equity shares, while
bank claims will be paid later.

Headquartered in Rogaska Slatina, Slovenia, Steklarna Rogaska
D.D. -- http://www.steklarna-rogaska.si/-- manufactures and  
exports glassware, which includes artware, ashtrays,
barware/restaurant, bowls, decanters, drinking glasses,
giftware, jugs, stemware, tableware, tumblers and vases.  The
glassmaker filed for bankruptcy protection at the beginning of
2005 in a last-ditch effort to handle its poor financial
condition.  It estimated debts at EUR52.6 million (SIT12.6
billion), including over EUR37.5 million (SIT9 billion) owed to
banks.


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


DAIMLERCHRYSLER AG: Swap Trades Actively, Report Says
-----------------------------------------------------
DaimlerChrysler AG's credit-default swaps are the most actively
traded in Europe in 2006, Bloomberg News reports citing data
compiled by Deutsche Bank AG.

Bloomberg data revealed that the cost of a contract on Daimler's
EUR46 billion of bonds fell to EUR55,433 on Dec. 11 from
EUR72,071 at the start of the year.  A decline suggests an
improvement in the company's credit quality, Bloomberg says.

"They have lots of bonds outstanding," Marcus Schueler, head of
Deutsche Bank London's Integrated Credit Marketing, said.  
"They're in a sector where there's a lot going on."

Credit-default swaps are used as an alternative to investing in
bonds with around US$40 billion of contracts trading daily,
Bloomberg News cites Deutsche Bank's data.

The value of outstanding credit-default swaps doubled from
US$133 billion at the end of 2004 to US$294 billion, Bloomberg
News cites the Bank for International Settlements in Basel.

Banks and hedge funds, Bloomberg relays, prefers the contracts
rather than buying or selling underlying securities because they
are cheaper and easier to use.

The securities are financial instruments based on corporate
bonds and loans that are used to speculate on a company's
ability to repay debt.

                       About DaimlerChrysler

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.

It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler also operates in Belgium, Czech Republic,
Denmark, France, Italy, Netherlands, Poland, Russia, Spain,
Sweden, United Kingdom, Australia, China, Indonesia, Japan,
Korea, Malaysia, and Thailand.

                        *     *     *

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

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

                           Outlook

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

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


===========
S W E D E N
===========


KALMAR STRUCTURED: Moody's Reviews Ba2 Ratings & May Downgrade
--------------------------------------------------------------
Moody's Investors Service places under review for possible
downgrade these three classes of notes issued by Kalmar
Structured Finance A/S:

   -- Class A1 EUR4.25-million Secured Notes III due 2011,
      currently rated Aa3;

   -- Class B1 EUR6.01-million Secured Notes III due 2011,
      currently rated Baa1; and

   -- Class C EUR8.25-million Secured Notes III due 2011,
      currently rated Ba2.

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


STRATOS GLOBAL: S&P Cuts Rating to B on Weak Operating Results
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Canada-based remote telecommunications service provider Stratos
Global Corp., including the long-term corporate credit and the
senior secured bank loan ratings to 'B' from 'B+', and placed
the ratings on CreditWatch with negative implications.  At the
same time, the bank loan recovery ratings of '3' were affirmed.

"The one-notch downgrade reflects weaker-than-expected operating
results for the nine months ended Sept. 30, 2006, and concerns
that Stratos' profitability, credit measures, and financial
flexibility will remain weak in the near term," said Standard &
Poor's credit analyst Madhav Hari.  "The CreditWatch placement
reflects additional near-term concerns with respect to Stratos'
ability to meet its financial covenants under its senior secured
credit facility," Mr. Hari added.

Specifically, in the first quarter of 2007, several financial
covenants under the company's senior secured bank debt agreement
are expected to become more restrictive.  In particular, the
minimum EBITDA-to-cash interest ratio and the minimum fixed-
charge ratio covenant are expected to step up; based on Standard
& Poor's calculations, Stratos will at best have minimum
flexibility in meeting these covenants.  Should operating
performance deteriorate further, or the 2007 covenants not be
modified, the ratings could be lowered further; therefore,
liquidity could be severely constrained under such a scenario.

In resolving its CreditWatch listing, Standard & Poor's will
focus its review primarily on:

   -- Stratos' operating performance; its ability to deliver
      on the Xantic BV integration and other cost savings
      as planned; and

   -- the company's ability to demonstrate that it will
      remain compliant with its financial covenants on
      a sustained basis.


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


AUPESA TRADING: Binningen Court Starts Bankruptcy Proceedings
-------------------------------------------------------------
The Bankruptcy Court of Binningen commenced bankruptcy
proceedings against JSC Aupesa Trading on Oct. 3.

The Debtor can be reached at:

         JSC Aupesa Trading
         Erlenstrasse 27a
         4106 Therwil
         Basel-Landschaft
         Switzerland

The Bankruptcy Service of Binningen can be reached at:

         Bankruptcy Service of Binningen
         4102 Binningen
         Basel-Landschaft
         Switzerland


BSF GEBAUDE: Court Suspends Bankruptcy Proceedings
--------------------------------------------------
The Bankruptcy Court of Berner Jura-Seeland suspended the
bankruptcy proceedings of LLC BSK Gebaude on Nov. 11, pursuant
to Article 230 of the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF10,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Aug. 21, can be reached at:

         LLC BSK Gebaude
         Erlenweg 10
         2543 Lengnau
         Aargau
         Switzerland

The Bankruptcy Service of Berner Jura-Seeland can be reached at:

         Bankruptcy Service of Berner Jura-Seeland;
         Adminsitrative Department Seeland
         2501 Biel/Bienne
         Berne
         Switzerland


CARROSSERIE SPRITZWERK: Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Court of Liestal commenced bankruptcy proceedings
against LLC Carrosserie Spritzwerk Schafer on Oct. 25.

The Debtor can be reached at:

         LLC Carrosserie Spritzwerk Schafer
         4153 Reinach BL
         Aargau
         Switzerland

The Bankruptcy Service of Liestal can be reached at:

         Bankruptcy Service of Liestal
         4410 Liestal
         Switzerland


CONVERIUM AG: Completes Sale of North American Operations
---------------------------------------------------------
Converium AG disclosed of the closing of the sale of its North
American operations to National Indemnity Company, a Berkshire
Hathaway company, following the receipt of all necessary
regulatory approvals.

The transaction, which was announced on Oct. 17, 2006, will be
reflected in Converium's fourth quarter 2006 financial
statements.

"With the announcement we have achieved finality on our North
American operations," Inga Beale, CEO of Converium, said.  "The
closing of the transaction meets a major condition for a ratings
upgrade by Standard & Poor's."

                         About Converium

Headquartered in Zug, Switzerland, Converium Holding AG --
http://www.converium.com/-- provides treaty and individual
coverage for risks including accident and health, credit and
surety, e-commerce, third party and professional liability,
life, and special casualty.   The company also operates in
Germany, United Kingdom, France, Malaysia, Singapore, Australia,
Japan, Bermuda, Argentina, U.S.A., Brazil and Canada.

                          *     *     *

As reported in the TCR-Europe on Oct. 20, Fitch Ratings placed
Swiss-based Converium AG's Insurer Financial Strength BBB-
rating on Rating Watch Positive.  The agency has also placed
other ratings within the Converium group on RWP.

Converium group ratings are:

   -- Converium AG's IFS BBB- on RWP;

   -- Converium AG's Issuer Default rating BBB- on RWP;

   -- Converium Insurance (U.K.) Limited's IFS BBB- on RWP;

   -- Converium Ruckversicherungs (Deutschland) AG's IFS BBB- on
      RWP;

   -- Converium Holding AG's IDR BB on RWP; and

   -- Converium Finance S.A.'s US$200 million subordinated debt
      due 2032 BB+ on RWP.


DREAMWORLD LLC: Binningen Court Suspends Bankruptcy Process
-----------------------------------------------------------
The Bankruptcy Court of Binningen suspended the bankruptcy
proceedings of LLC Dreamworld on Nov. 20, pursuant to Article
230 of the Swiss Bankruptcy Code.

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

The Debtor, declared bankrupt on March 28, can be reached at:

         LLC Dreamworld
         Pumpmattenweg 2
         4105 Biel-Benken BL
         Switzerland

The Bankruptcy Service of Binningen can be reached at:

         Bankruptcy Service of Binningen
         4102 Binningen
         Basel-Landschaft
         Switzerland


G + F MALERGESCHZFT: Liestal Court Starts Bankruptcy Proceedings
----------------------------------------------------------------
The Bankruptcy Court of Liestal commenced bankruptcy proceedings
against LLC G + F Malergeschaft on Oct. 11.

The Debtor can be reached at:

         G + F Malergeschaft
         Industriestrasse 25
         4410 Liestal
         Switzerland

The Bankruptcy Service of Liestal can be reached at:

         Bankruptcy Service of Liestal
         4410 Liestal
         Switzerland


GASTRO INN: Arlesheim Court Starts Bankruptcy Proceedings
---------------------------------------------------------
The Bankruptcy Court of Arlesheim commenced bankruptcy
proceedings against LLC Gastro Inn on Sept. 26.

The Debtor can be reached at:

         LLC Gastro Inn
         Hauptstr 30
         4148 Pfeffingen
         Basel-Landschaft
         Switzerland

The Bankruptcy Service of Arlesheim can be reached at:

         Bankruptcy Service of Arlesheim
         4144 Arlesheim
         Switzerland


KARDEX AG: Board Eyes Restructuring at AFT Division
---------------------------------------------------
The Board of Directors of Kardex AG has decided to implement a
comprehensive restructuring in an effort to ensure the continued
existence of the company's AFT (Industrial Automation and
Conveyor Technology) division.  All AFT locations will be
affected and a reduction of workforce is inevitable.  Kardex is
in discussions with representatives of staff organizations.

Furthermore, and independent of the restructuring process, the
board decided to separate from the AFT division in the coming
months.  Kardex wants to concentrate on its core business,
logistics products, and has initiated sales negotiations for
AFT.

Restructuring costs and the separation from AFT are expected to
reduce Kardex's equity by approximately EUR30 million, the
amount is to be included in the 2006 financial statement.

The board and management of Kardex are confident that the
decisions will put the Group back on track.  The KRM and Stow
divisions are continuing to perform well in '06.

As previously disclosed, the AFT division of Kardex have
sustained further, unexpected losses of approximately
EUR5 million in the third quarter of 2006 due to technical
problems encountered in the course of making major projects
operational.  Contrary to the expected profit at group level,
the development at the AFT division will lead to a negative
Kardex Group result for 2006.

KRM and Stow, the other Kardex divisions, are performing well
and according to expectations.  The AFT division's additional
loss is in no way related to the accounting problems encountered
in the spring of 2006.

Headquartered in Zurich, Switzerland, Kardex Remstar
International Group -- http://www.kri-group.com/-- is one of  
the is one of the world's leading suppliers of products and
services in the logistics of dynamic storage and retrieval
systems, automation and conveyor technology and static storage
systems.  The Group comprises three divisions, KRM, AFT and
Stow, which operate subsidiaries and manufacturing facilities in
Europe, America and Asia.  Kardex has a staff of 2100 employees
worldwide.


KOOILUST INFLATION: Zug Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Court of Zug commenced bankruptcy proceedings
against LLC Kooilust Inflation Consultants on July 7.

The Debtor can be reached at:

         LLC Kooilust Inflation Consultants
         St. Adrianstrasse 4
         6318 Walchwil
         Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


MSK IMMO: Court Closes Bankruptcy Proceedings
---------------------------------------------
The Bankruptcy Court of Berner Jura-Seeland entered Oct. 19 an
order closing the bankruptcy proceedings of LLC MSK Immo.

The Debtor can be reached at:

         LLC MSK Immo
         Bahnhofstrasse 16      
         3270 Aarberg
         Berne
         Switzerland

The Bankruptcy Service of Berner Jura-Seeland can be reached at:

         Bankruptcy Service of Berner Jura-Seeland
         Administrative Department Seeland
         2501 Biel/Bienne
         Berne
         Switzerland


RE ALLFINANZ-PARTNER: Court Suspends Bankruptcy Proceedings
-----------------------------------------------------------
The Emmental-Oberaargau Bankruptcy Court and Control of Debt
Payment suspended the bankruptcy proceedings of JSC Re
Allfinanz-Partner on Nov. 12, pursuant to Article 230 of the
Swiss Bankruptcy Code.

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

The Debtor, declared bankrupt on Aug. 29, can be reached at:

         JSC Re Allfinanz-Partner
         Bahnhofstrasse 19
         4914 Roggwil
         Berne
         Switzerland

The Emmental-Oberaargau Bankruptcy Service and Control of Debt
Payment can be reached at:

         Emmental-Oberaargau Bankruptcy Service and
         Control of Debt Payment
         Admistrative Department Aarwangen
         4912 Aarwangen
         Berne
         Switzerland


SOUNDS GOOD: Basel-Stadt Court Suspends Bankruptcy Proceedings
--------------------------------------------------------------
The Bankruptcy Court of Basel-Stadt suspended the bankruptcy
proceedings of LLC Sounds Good on Nov. 18, pursuant to Article
230 of the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF4,500
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Sept. 14, can be reached at:

         LLC Sounds Good
         Steinentorstrasse 35
         4051 Basel
         Switzerland

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

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


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


PETKIM PETROKIMYA: Fitch Affirms BB Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings affirmed Turkey-based Petkim Petrokimya Holding
A.S.'s local and foreign currency Issuer Default ratings at BB
and National rating at AA-.  The Outlooks on the ratings are
Stable.

The affirmation follows Fitch's review of Petkim's Financial
Year 2005 and nine-months 2006 interim results, which showed
marked improvements in capacity utilization rates and operating
profitability as well as sustained low leverage.  Fitch's
assessment of Petkim's forecast performance in the medium term
is underlined in the Stable Outlook.

Petkim's nine-months 2006 EBITDA totaled TRY145 million with
8.5% EBITDA margin, up from the TRY37 million EBITDA reported
for the same period a year ago.  The company reported TRY40
million net profit for nine-months 2006 compared to the TRY73
million net loss in nine-months 2005 incurred primarily due to
capacity expansion work, resultant low utilization rates and
adverse price developments in both raw materials and finished
products in the first half of 2005.  

Petkim remains a net cash company, with TRY34 million gross debt
and TRY76 million cash at end-nine-months 2006.

Petkim is Turkey's dominant petrochemicals player with an
approximate 30% share in the domestic market that shows high
growth potential.  The low financial risk is a credit strength.

However, the business profile is relatively weak, with limited
scale and integration scope compared to its larger peers.
Earnings are subject to volatility and operating margins are
below-world-average.

Petkim was founded in 1965 as a state-owned entity in Turkey and
remains the country's largest petrochemicals company and
producer of thermoplastics.  In Financial Year 2005, the group
generated sales of TRY1.34 billion and reported TRY15 million
EBITDA loss.  In Financial Year 2005, Petkim increased its
production capacity by 19% to 1.9 million tons.


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


STIROL JSC: BSTDB Waives Covenant Breaches Under Loan Agreement
---------------------------------------------------------------
UkrChem Capital B.V. at the request of JSC Concern Stirol
disclosed information to holders of the US$125,000,000
7.875% Loan Participation Notes due 2008 issued by Ukrchem on a
limited recourse basis for the sole purpose of funding a loan by
Moscow Narodny Bank Limited (now known as VTB Bank Europe plc)
to Stirol pursuant to a Loan Agreement dated July 28, 2005
between VTB and Stirol.

On Dec. 5, 2006, Stirol's condensed consolidated interim
financial statements as at and for the six months ended
June 30, 2006, were approved by its Board of Directors.  

Stirol did not comply with the requirement under the
Loan Agreement to deliver the interim financial statements to
the noteholders' trustee within the time period specified in the
agreement.

As previously reported in the TCR-Europe on Sept. 25, Stirol
did not fulfill on Aug. 3 the requirement under the Loan
Agreement to deliver its audited financial statements for the
year ended Dec. 31, 2005, to The Bank of New York as Trustee for
the noteholders and MNB (now known as VTB Bank Europe plc)
within 180 days after the end of the financial year.

The delay resulted from Stirol's ongoing investigation and
explanation of certain actions taken during the year, which were
identified by its auditors, KPMG Ukraine Ltd., as breaching
certain restrictions set out in the Loan Agreement referred to
the 2005 Accounts.  

Stirol also breached certain covenants under its loan facility
from Black Sea Trade and Development Bank.  On Dec. 4, 2006,
BSTDB irrevocably and unconditionally waived any events of
default or other rights under the BSTDB Loan Facility in respect
of such events, except for Stirol's non-compliance with certain
covenants under the Loan Agreement.

                        About the Company

Headquartered in Ukraine, JSC Concern Stirol --
http://www.stirol.net/-- manufactures chemical and   
pharmaceutical products.

                         *     *     *

As previously reported in TCR-Europe on Aug. 15, Moody's
Investors Service placed the B3 corporate family rating of OJSC
Concern Stirol and the B3 rating on the loan participation notes
issued by UkrChem Capital BV under review for possible
downgrade.

Fitch Ratings downgraded Ukraine-based OJSC Stirol's Issuer
Default rating to B- from B.  The US$125 million limited
recourse notes issued by UkrChem Capital B.V. have also been
downgraded to senior unsecured B- from B.  Fitch said the B
rating remains on Rating Watch Negative.                  


STIROL JSC: Earns UAH181.6 Million for First Six Months of 2006
---------------------------------------------------------------
JSC Concern Stirol released its unaudited interim financial
results for the six months ended June 30, 2006.

The Company posted UAH181.6 million in net profit against
UAH1.3 billion in revenues for the six months ended
June 30, 2006, compared with UAH224.4 million net profit against
UAH1.1 billion in revenues for the same period in 2005.

At June 30, 2006, the Company's condensed consolidated balance
sheet showed UAH2.9 billion in total assets, UAH1.4 billion in
total liabilities and UAH1.4 billion in shareholders' equity.

                        About the Company

Headquartered in Ukraine, JSC Concern Stirol --
http://www.stirol.net/-- manufactures chemical and   
pharmaceutical products.

                          *     *     *

As previously reported in TCR-Europe on Aug. 15, Moody's
Investors Service placed the B3 corporate family rating of OJSC
Concern Stirol and the B3 rating on the loan participation notes
issued by UkrChem Capital BV under review for possible
downgrade.

Fitch Ratings downgraded Ukraine-based OJSC Stirol's Issuer
Default rating to B- from B.  The US$125 million limited
recourse notes issued by UkrChem Capital B.V. have also been
downgraded to senior unsecured B- from B.  Fitch said the B
rating remains on Rating Watch Negative.                  


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


ANGLOMAR SHIPPING: Appoints Liquidator from Leonard Curtis
----------------------------------------------------------
N. A. Bennett of Leonard Curtis was appointed Liquidator of
Anglomar Shipping Limited on Dec. 5 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Anglomar Shipping Limited
         140 Wales
         Farm Road
         London W3 6UG
         United Kingdom
         Tel: 020 8992 0004
         Fax: 020 8992 9294


AVECIA GROUP: Incurs GBP17.4-Mln Net Loss for Six Months 2006
-------------------------------------------------------------
Avecia Group plc released its unaudited financial results for
the six months ended June 30, 2006.

The Group reported a GBP17.4 million net loss on GBP33.1 million
turnover for the six months ended June 30, 2006, compared with a
GBP66.2 million net loss on GBP30.9 million turnover for the
same period in 2005.

At June 30, 2006, the Group's consolidated balance sheet showed
GBP224 million in total assets, GBP80.9 million in total
liabilities and GBP143.1 million in shareholders' equity.

Headquartered in Manchester, England, Avecia --
http://www.avecia.com/-- develops and manufactures  
biotechnology-based medicines.  The company has two main
operating business units: biologics and DNA medicines.

                         *     *     *

As reported in the TCR-Europe on March 29, Standard & Poor's
Ratings Services withdrew its 'CCC' long-term corporate credit
rating on U.K.-based Avecia Group PLC, at the company's request.  
Standard & Poor's also withdrew its 'CC' senior unsecured debt
and 'C' preference stock ratings on the group.


AVECIA GROUP: Moody's Confirms Junk Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service confirmed the Caa1 corporate family
rating of Avecia Group plc and upgraded rating on its preference
redeemable shares from Ca to Caa3.  The outlook is negative.  
This concludes the review initiated on April 10, 2006.

The rating action acknowledges continuous management efforts to
bring to a close Avecia's legacy financial and operating issues
following a number of disposals and full repayment of the senior
bank debt and notes by the company in 2006, as well as
substantial restructuring and downsizing of the business.
Moody's notes, however, that the remaining biochemical
businesses (and current headquarters activities) generate
negative operating cash flow at this stage.

The upgrade of the preference redeemable shares to the Caa3
level reflects the company's current capital structure with no
priority facilities outstanding.

The negative outlook on the ratings reflects a degree of
uncertainty with respect to projected improvements in the
Avecia's performance, characteristic for the early development
stage of the company's biochemical businesses.  In the absence
of committed bank lines, Moody's notes management's preference
for maintaining a liquidity cushion to finance operations while
the company continues to generate negative cash flow.  At the
end of September 2006, Avecia reported GBP26.5 million in cash
balances while it had GBP15.9 million in preference shares
outstanding.  The cash, however, is not legally dedicated to
repaying the instrument.

Ratings affected:

   -- Caa1 Corporate Family Rating at Avecia group plc; and

   -- Caa3 rating on preference redeemable shares of Avecia
      group plc.

At the end of third quarter 2006, Avecia Group plc reported
turnover of GBP45.8 million and EBIT of negative GBP14.8
million.


CARWASH@WORK LTD: Hires UHY Hacker to Administer Assets
-------------------------------------------------------
Peter Alan Kubik and Andrew Andronikou of UHY Hacker Young were
appointed joint administrators of Carwash@Work Ltd. (Company
Number 04107319) on Nov. 28.

The administrators can be reached at:

         Peter Alan Kubik and Andrew Andronikou
         UHY Hacker Young
         St. Alphage House
         2 Fore Street
         London EC2Y 5DH
         United Kingdom
         Tel: 020 7216 4600
         Fax: 020 7638 2159

Carwash@Work Ltd. can be reached at:

         Unit F6
         Bersham Enterprise Centre
         Colliery Road
         Rhostyllen
         Wrexham
         Clwyd LL14 4EG
         United Kingdom
         Tel: 01978 366 633


CARWASHATWORK (NORTHERN): Appoints Administrators from UHY
----------------------------------------------------------
Peter Alan Kubik and Andrew Andronikou of UHY Hacker Young were
appointed joint administrators of Carwashatwork (Northern) Ltd.
(Company Number 04780066) on Nov. 28.

The administrators can be reached at:

         Peter Alan Kubik and Andrew Andronikou
         UHY Hacker Young
         St. Alphage House
         2 Fore Street
         London EC2Y 5DH
         United Kingdom
         Tel: 020 7216 4600
         Fax: 020 7638 2159

Carwashatwork (Northern) Ltd. can be reached at:

         Castle Street
         Llangollen
         Clwyd LL20 8NU
         United Kingdom
         Tel: 01978 809 940


CELESTICA INC: Expects Lower 2006 4th Quarter Revenues & Profits
----------------------------------------------------------------
Celestica Inc. has disclosed lower than expected forecasts on
its profits and sales for the fourth quarter of 2006 due to
fewer orders by its customers, reported John Stebbins of
Bloomberg News.

The global electronics company told Bloomberg that it predicted
around US$2.2 billion to US$2.25 billion of revenue instead of
the October forecast of US$2.25 billion to US$2.45 billion,
clearly less than the US$2.27 billion average anticipated by
Bloomberg analysts.

The company disclosed that the revision in revenue is due to
recent demand reductions from several customers.  Included in
the revised adjusted net earnings per share is an expected net
charge of between US$0.08 to US$0.12 resulting predominantly
from an increase in inventory provisions at its Monterrey,
Mexico facility.

The company also expects cost increases in its Monterrey plant
in Mexico, from 8 cents to 12 cents a share due to increased
inventory.  The company bought more supplies and material than
what was ordered, Craig H. Muhlhauser, Celestica's chief
executive officer, told Bloomberg.  "Problems should be fixed by
the second quarter," says Mr. Muhlhauser.

The company's fourth quarter results will be released on
Jan. 30, 2007.

Headquartered in Toronto, Ontario, Celestica, Inc. (NYSE: CLS,
TSX: CLS/SV) -- http://www.celestica.com/-- is a world leader  
in the delivery of innovative electronics manufacturing
services.  Celestica operates a highly sophisticated global
manufacturing network with operations in Malaysia, Brazil,
China, Ireland, Italy, Japan, Philippines, Puerto Rico, and the
United Kingdom, among others, providing a broad range of
integrated services and solutions to original equipment
manufacturers.  Celestica's expertise in quality, technology and
supply chain management, enables the company to provide
competitive advantage to its customers by improving time-to-
market, scalability and manufacturing efficiency.  In Europe,
the company maintains operations in the Czech Republic, Ireland,
Italy, Romania, Spain, Switzerland and the United Kingdom.

                         *     *     *

As reported in the TCR-Europe on Oct. 6, Moody's has affirmed
its Ba3 Corporate Family Rating for Celestica International.

Celestica carries Fitch's 'BB-' issuer default and unsecured
credit facility ratings.  Fitch also assigned a 'B+' rating to
the Company's senior subordinated debt.  Fitch said the Rating
Outlook is Stable.

In February 2005, Moody's Investors Service lowered Celestica's
senior implied rating to Ba3 from Ba2, senior unsecured issuer
rating to B1 from Ba3 and the subordinated notes rating to B2
from Ba3.


CELESTICA INC: Appoints Craig Muhlhauser President & CEO
--------------------------------------------------------
Celestica Inc. appointed Craig H. Muhlhauser to the position of
President and Chief Executive Officer, effective immediately.
Mr. Muhlhauser succeeds Stephen W. Delaney, who is resigning
from Celestica to pursue other business interests.

Mr. Muhlhauser was previously Celestica's President, with
specific responsibility for Worldwide Sales and Business
Development. Prior to joining Celestica in May 2005, Mr.
Muhlhauser was President and Chief Executive Officer of Exide
Technologies, one of the world's largest producers and recyclers
of lead acid batteries.  Before joining Exide Technologies, he
was Vice President, Ford Motor Company and President, Visteon
Automotive Systems.  During his career, Mr. Muhlhauser has
worked in a number of diverse industries and has held senior
management positions at various companies including United
Technologies, Asea Brown-Boveri, Lucas Industries and General
Electric.

Commenting on the change, Robert Crandall, Chairman of the
company's Board of Directors, said, "Steve Delaney has served as
Celestica's CEO since January 2004 and he has made important
contributions to the company's development.  We wish him the
best in his new endeavors."

"The Board is delighted to have an executive with Craig
Muhlhauser's broad and proven leadership credentials available
to assume the role of President and CEO," added Mr. Crandall.
"Since joining Celestica and becoming a member of the senior
executive team, Craig has been instrumental in focusing our
business development activities on new, high-growth markets and
we are confident that his high energy, broad executive
experience and innovative leadership will ensure continued
progress in the years ahead."

"I am very pleased to assume this new leadership role as
Celestica's President and CEO," said Mr. Muhlhauser. "This is a
tremendous opportunity to build on the aggressive global
restructuring actions of the last few years, to establish
stronger, long-term partnerships with our customers and to
accelerate the improvement in Celestica's operational and
financial performance."

Headquartered in Toronto, Ontario, Celestica, Inc. (NYSE: CLS,
TSX: CLS/SV) -- http://www.celestica.com/-- is a world leader  
in the delivery of innovative electronics manufacturing
services.  Celestica operates a highly sophisticated global
manufacturing network with operations in Malaysia, Brazil,
China, Ireland, Italy, Japan, Philippines, Puerto Rico, and the
United Kingdom, among others, providing a broad range of
integrated services and solutions to original equipment
manufacturers.  Celestica's expertise in quality, technology and
supply chain management, enables the company to provide
competitive advantage to its customers by improving time-to-
market, scalability and manufacturing efficiency.  In Europe,
the company maintains operations in the Czech Republic, Ireland,
Italy, Romania, Spain, Switzerland and the United Kingdom.

                         *     *     *

As reported in the TCR-Europe on Oct. 6, Moody's has affirmed
its Ba3 Corporate Family Rating for Celestica International.

Celestica carries Fitch's 'BB-' issuer default and unsecured
credit facility ratings.  Fitch also assigned a 'B+' rating to
the Company's senior subordinated debt.  Fitch said the Rating
Outlook is Stable.

In February 2005, Moody's Investors Service lowered Celestica's
senior implied rating to Ba3 from Ba2, senior unsecured issuer
rating to B1 from Ba3 and the subordinated notes rating to B2
from Ba3.


COLLINS & AIKMAN: Taps Leading Bidder for Soft Trim Biz Purchase
----------------------------------------------------------------
Collins & Aikman Corp. has selected a lead bidder in its
proposed sale of the company's North American automotive
flooring and acoustic components business.  The selection was
made following the Company's receipt of a number of competitive
offers from a variety of qualified bidders.  

The company has also entered an exclusivity agreement with the
lead bidder while they complete due diligence and negotiate a
definitive agreement in the coming weeks.  The offer will be
subject to overbid through a bankruptcy court monitored auction
process.  Details of the bid, including the identification of
the lead bidder, will be made available when the company files
its sale motion with the bankruptcy court for an expected
January 2007 hearing.

"We are extremely pleased with the level of interest shown in
purchasing our businesses," said John Boken, Collins & Aikman's
Chief Restructuring Officer.  "The potential sale of the Soft
Trim business unit as a going concern would generate important
recoveries for our lenders, result in a valuable addition to our
buyer's portfolio and, most importantly for our employees,
preserve a large number of jobs."

The Soft-Trim business operates 14 facilities in the United
States, Canada and Mexico, employs approximately 4,100 people
and produces products for all major automakers.

Collins & Aikman continues to pursue efforts to sell the
majority of its remaining businesses that produce injection
molded interior components and convertible roof systems.  The
Company is in the process of working with its customers and
lenders while soliciting and reviewing qualified bids for the
purchase of all or portions of these businesses.

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


CROWN HOLDINGS: Noteholders Agree to Incur US$200-Million Debt
--------------------------------------------------------------
Crown Holdings Inc. completed its consent solicitation and had
executed a supplemental indenture with respect to certain
amendments to the indenture dated Sept. 1, 2004, relating to the
6-1/4% first priority senior secured notes due 2011 of its
subsidiary, Crown European Holdings SA.

The amendments generally conform certain provisions of the
indenture to comparable provisions of the company's senior
secured credit facility.

As reported in the Troubled Company Reporter-Europe on Nov. 27,
the company commenced a solicitation of consents from holders of
6-1/4% First Priority Senior Secured Notes due 2011 to incur an
additional US$200 million of pari passu first priority
indebtedness.

The solicitation also seek consents to proposed amendments that
will allow the company, among others, to make a US$100,000,000
of additional restricted payments of any type.

Philadelphia, Pa.-based Crown Holdings Inc. (NYSE: CCK)
-- http://www.crowncork.com/-- through its affiliated  
companies, supplies packaging products to consumer marketing
companies around the world.  The company has operations in
Argentina, China and Eastern Europe.

At Sept. 30, 2006, Crown Holdings Inc.'s balance sheet showed
US$7.236 billion in total assets, US$7.072 billion in total
liabilities, and US$271 million in minority interests, resulting
in a US$107 million shareholders' deficit.  The Company had a
US$236 million deficit at Dec. 31, 2005.

                           *     *     *

Standard & Poor's Ratings Services affirmed its 'BB-' rating and
its '2' recovery rating on Crown Holdings Inc.'s existing US$1.5
billion credit facilities including its US$200 million add-on
senior secured term loan B due 2012.


D & R FINISHERS: Claims Filing Period Ends Jan. 11, 2007
--------------------------------------------------------
Creditors of D & R Finishers PLC (formerly D & R Finishers
Limited and Dexterclass Limited) have until Jan. 11, 2007, to
send in their full names, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their Solicitors (if any), to appointed Liquidator
Lloyd Biscoe at:

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

The company can be reached at:

         D & R Finishers PLC
         Nevendon Trading Estate
         Harvey Road
         Basildon
         Essex SS131DA
         United Kingdom
         Tel: 01268 727 770
         Fax: 01268 590 223


EMI GROUP: Ends Takeover Talks with Permira Advisers
----------------------------------------------------
EMI Group PLC has ended takeover talks with Permira Advisers LLP
after the two parties could not agree on a price, Aisha Phoenix
and Edward Evans write for Bloomberg News.

According to Bloomberg, shares of EMI fell to their lowest
levels in two years after the company disclosed that it has not
received a bid that fully reflects the prospects for and value
of the group.

"The shares are worth 240 pence to 250 pence without a takeover
bid," Alex Degroote, an analyst at London's Panmure Gordon, told
Bloomberg.

As previously reported in the TCR-Europe on Nov. 30, Permira has
approached EMI with a possible bid valued at GBP2 billion.

EMI revealed that it received a preliminary approach on Nov. 28
by an unidentified buyer, which may or may not lead to an offer
being made for the company.

                         About Permira

Permira Advisers Ltd. -- http://www.permira.com/-- is a
European-based private equity firm.  Permira acts as adviser to
the 19 Permira Funds, totaling approximately EUR22 billion, that
have been raised since 1985.  These funds have invested in over
280 transactions in over 15 different countries, in companies
across a variety of sectors and geographies, at all stages of
the business lifecycle.

                            About EMI

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent  
music company, operating directly in 50 countries, including
Brazil, and with licensees in a further 20.  The group employs
over 6,600 people.  Revenues in 2005 were near EUR2 billion and
operating profit generated was over EUR225 million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.

                         *     *     *

As reported in the TCR-Europe on Nov. 1, Standard & Poor's
Rating Services lowered to 'BB' from 'BB+' its long-term
corporate and senior unsecured ratings on U.K.-based music
producer and distributor EMI Group PLC, following an annual
review.  S&P said the outlook is negative.

Moody's Investors Service also downgraded EMI Group plc's senior
debt and guaranteed debt ratings to Ba2 from Ba1.  At the same
time Moody's assigned a Ba2 Corporate Family Rating to EMI.  The
downgrade is based on Moody's expectation that EMI's debt
protection measurements will not improve near-term to a level
commensurate with the Ba1 rating category.  Moody's said the
rating outlook is now stable.


EUROTUNNEL GROUP: Bondholders Vote on Restructuring Plan
--------------------------------------------------------
Eurotunnel Group's bondholders voted in favor of the proposed
Safeguard plan put forward under the French Safeguard Procedure
to restructure the company's GBP6.2-billion debt.

Out of 149 individual bondholders who participated, 102
bondholders, representing 82.17% of the EUR1.5 billion bond
issued by France Manche SA, voted in favor of the proposals.

Some 88 out of 131 bondholders, representing 69.22% of the
GBP858-million bond value issued in sterling pounds by
Eurotunnel Finance Limited, voted in favor of the proposals that
were put to them.

Eurotunnel is grateful to the Mandataires Judiciaires and the
Administrateurs Judiciaires who had encouraged a vote in favor
of the plan and whose application of the legal process has been
invaluable in reaching this stage.

Eurotunnel notes with satisfaction that staff representatives in
both France and the U.K. gave their support to the plan prior to
the vote yesterday.

The Administrateurs Judiciaires will put forward the financial
restructuring proposals adopted by the creditors to the Paris
Commercial Court on Dec. 18.

"This vote concludes two years of intense negotiations and gives
us a realistic and balanced plan which preserves the interests
of all stakeholders," Jacques Gounon, chairman and chief
executive of Eurotunnel disclosed.  "If the Paris Commercial
Court approves this plan, the next step will be the creation of
Groupe Eurotunnel SA.  The shareholders will then, through a
majority participation in the exchange offer, enable the new
Eurotunnel to be born: based on solid foundations and with real
prospects for the future."

As reported in the TCR-Europe on Nov. 28, creditors representing
72% of the financial establishment committee voted in favor of
the proposed safeguard-restructuring plan.

The committee holds 70% of the company's GBP6.2 billion debt.

Eurotunnel Group sent out its Draft Safeguard Restructuring Plan
Proposals on Oct. 31, in accordance with the French Safeguard
Procedure.

                      Terms of the Plan

The principal elements of the proposals include:

   1) the creation of a new company, Groupe Eurotunnel, which
      will launch an Exchange Tender Offer (ETO) to Eurotunnel's
      current shareholders.  The shareholders will hold a
      minimum 13% of the equity in Groupe Eurotunnel;

   2) Groupe Eurotunnel will subscribe to a new long-term loan
      of GBP2.840 billion (less than half of the current debt)
      from an international banking consortium;

   3) Groupe Eurotunnel will issue GBP1.275 billion of
      convertible hybrid notes.  The hybrid notes will be
      convertible over a maximum of three years and one month.
      Approximately 61.7% of the hybrids are redeemable by the
      company.

   4) current Eurotunnel shareholders, who subscribe to the ETO,
      will hold a minimum of 13% of the equity in Groupe
      Eurotunnel.  They can subscribe directly to the hybrid, up
      to a value of GBP60 million (EUR87.7 million) and will
      benefit from free warrants.  The redemption of hybrid
      notes by the company would allow them to increase their
      share of the equity from 13% to 67%.

                         About Eurotunnel

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a   
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faced
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

Eurotunnel obtained Aug. 2 an order placing the channel operator
under the protection of the Court pursuant to the new safeguard
legislation (Procedure de sauvegarde).


EUROTUNNEL GROUP: Oaktree Files Petition to Review Nov. 27 Vote
---------------------------------------------------------------
Oaktree Capital Management LLC filed a petition with the Paris
Commercial Court to review the Nov. 27 vote by creditors of
Eurotunnel Group in favor of the company's proposed safeguard
restructuring plan for its GBP6.2 billion debt, AFX News Ltd.
reports.

According to AFX, Oaktree requested clarifications why certain
lenders seemed to have voted multiple times.  The company also
sought confirmation if the voting process was implemented on the
same basis among all creditors.

It is also seeking confirmation that the voting process was
implemented on the same basis among all creditors.

"Over two weeks ago, in light of apparent multiple voting, the
administrators were asked by creditors for an audit of this vote
but we have yet to receive a substantive answer," Ken Liang, a
managing director of Oaktree, was quoted by AFX as saying.

"It is simply incomprehensible that a voting process on a plan
which purportedly reduces over GBP3.4 billion of secured
creditors' claims can be conducted in such an unaccountable and
opaque manner," he said.

Oaktree and Franklin Mutual Advisors LLP, the two creditors who
opposed the debt plan, sent letters to bondholders and
Eurotunnel's bond trustee Law Debenture Trustees Ltd., saying
they will draw on a lenders' accord to demand the funds reserved
for bondholders be used to pay more to senior debt holders like
them, Bloomberg News disclosed.

"This will pose some interesting questions on the applicability
of certain contractual arrangements between creditors," Antoine-
Audoin Maggiar, a Paris-based partner with law firm Berwin
Leighton Paisner told Bloomberg.

"A multiplication of lawsuits may make it harder to actually put
Sauvegarde into practice for Eurotunnel," Mr. Paisner added.

As reported in the TCR-Europe on Nov. 28, creditors representing
72% of the financial establishment committee voted in favor of
the proposed safeguard-restructuring plan.

The committee holds 70% of the company's GBP6.2 billion debt.

Eurotunnel Group sent out its Draft Safeguard Restructuring Plan
Proposals on Oct. 31, in accordance with the French Safeguard
Procedure.

                      Terms of the Plan

The principal elements of the proposals include:

   1) the creation of a new company, Groupe Eurotunnel, which
      will launch an Exchange Tender Offer (ETO) to Eurotunnel's
      current shareholders.  The shareholders will hold a
      minimum 13% of the equity in Groupe Eurotunnel;

   2) Groupe Eurotunnel will subscribe to a new long-term loan
      of GBP2.840 billion (less than half of the current debt)
      from an international banking consortium;

   3) Groupe Eurotunnel will issue GBP1.275 billion of
      convertible hybrid notes.  The hybrid notes will be
      convertible over a maximum of three years and one month.
      Approximately 61.7% of the hybrids are redeemable by the
      company.

   4) current Eurotunnel shareholders, who subscribe to the ETO,
      will hold a minimum of 13% of the equity in Groupe
      Eurotunnel.  They can subscribe directly to the hybrid, up
      to a value of GBP60 million (EUR87.7 million) and will
      benefit from free warrants.  The redemption of hybrid
      notes by the company would allow them to increase their
      share of the equity from 13% to 67%.

                         About Eurotunnel

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a   
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faced
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

Eurotunnel obtained Aug. 2 an order placing the channel operator
under the protection of the Court pursuant to the new safeguard
legislation (Procedure de sauvegarde).


FORD MOTOR: In Talks With Wanxiang Over Sale of Certain Assets
--------------------------------------------------------------
Wanxiang Group, China's largest auto parts supplier, is in talks
with Ford Motor Company to purchase certain of Ford's assets,
the Financial Times reports.

Wanxiang founder and chairman Lu Guanqiu said the talks are part
of a plan to expand the company's global presence.

The FT said the two companies discussed the possible sale of
some assets of Automotive Components Holdings -- a group of 17
plants and six other facilities that Ford took control of last
year as part of the bail-out of Visteon Corp., a company spun-
off by Ford.

Mr. Lu told the FT that his company is interested in acquiring
Ford's design-and-production technology.

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and  
distributes automobiles in 200 markets across six continents
including Brazil and Mexico in Latin America.  With more than
324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corp.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 13,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.


FORD MOTOR: EVP Mark Schulz to Retire Early Next Year
-----------------------------------------------------
Ford Motor Company said that Mark Schulz, executive vice
president and president, International Operations, has disclosed
his plans to retire from the company early next year.

As president of International Operations, Mr. Schulz, 54, is
responsible for the company's business in Europe, Africa and the
Asia Pacific region.  He oversees the global activities of Aston
Martin, Jaguar, Land Rover, and Volvo, as well as the company's
partnership with Mazda Motor Corporation.

"I have had the pleasure of working closely with Mark over the
years and am personally grateful to him for his vision, his
leadership and his dedication to the Ford Motor Company," Ford
Motor company executive chairman Bill Ford said.

"Most recently he has overseen significant growth of Ford's
business in some of our most important regions around the world
and he has built an organization that is poised to deliver
further growth in the future.  I wish him and his family all the
best in his retirement."

Before his current position, Mr. Schulz served as executive vice
president, Ford Motor Company and president, Asia Pacific and
Africa.  And, he led Asia Pacific and Ford South America
Operations as a corporate vice president.  Before his election
as a corporate officer, Mr. Schulz was head of Ford's operations
in Turkey for five years.

Earlier in his Ford career, Mr. Schulz held several product
engineering and manufacturing positions, including director,
Product Development, Ford Japan; director of the Corporate
Strategy Office; Plant Manager of Ford's Sheldon Road facility;
and vehicle line director of Compact Trucks in North America.  
He began his career with Ford as an assembly line worker in
1970.

"Mark has been indispensable in helping me become familiar with
Ford's operations in the fastest-growing and most competitive
markets in the world," Ford's president and chief executive
officer Alan Mulally said.

"Because of his leadership and because of the relationships he
has built on our behalf, Mark leaves us with a strong foundation
on which to grow our business in Europe, Asia-Pacific and the
rest of the world."

Mr. Schulz serves as a member of several boards, including the
National Committee of United States-China Relations, the United
States-China Business Council and the National Bureau of Asian
Research.  He is also a member of the International Advisory
Board for the President of the Republic of the Philippines.

He holds a bachelor's degree in Mechanical Engineering from
Valparaiso University and master's degrees from the University
of Detroit (Economics) and the University of Michigan
(Engineering), and the Massachusetts Institute of Technology,
where he was a Sloan Fellow.

Any changes in structure and organization that result from
Schulz's retirement will be the topic of a future announcement.


Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and  
distributes automobiles in 200 markets across six continents
including Brazil and Mexico in Latin America.  With more than
324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corp.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 13,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.


GENERAL MOTORS: S&P Affirms B Corporate Credit Rating
-----------------------------------------------------
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.  The outlook is negative.  GM's
automotive balance sheet debt outstanding totaled  
US$32.8 billion at Sept. 30, 2006.

The affirmation reflects our view that the comprehensive costs
of a consensual, rather than court-imposed, resolution of GM's
operational and financial exposure to bankrupt former unit
Delphi Corp. is well within the scope of GM's liquidity,
particularly in light of its recent sale of a 51%
stake in GMAC LLC (formerly General Motors Acceptance Corp.).  
Still, progress toward a resolution concerning Delphi remains
lengthy and complex, involving negotiations among many disparate
parties, and no specific outcome is assured.  

The affirmation does not incorporate the consequences of an
outright collapse in talks or a Delphi strike because Standard &
Poor's currently think these scenarios are unlikely.  If GM were
to experience severe Delphi-related operational disruptions, or
if GM's payments to resolve Delphi's restructuring were much
greater than Standard & Poor's expects, it would likely review
the ratings on GM.

Because of the GMAC sale, Standard & Poor's expects GM to end
2006 with a cash and short-term VEBA balance in excess of the
level at Sept. 30, 2006, about US$20.4 billion, even after a
substantial fourth-quarter cash burn that resulted in part from
lower North American production.  For the first nine months of
2006,  GM's automotive operating cash flow was a negative
US$4.2 billion (before cash restructuring costs) versus a
negative US$7.1 billion in the comparable period in 2005.
Fourth-quarter 2006 automotive cash flow will be worse than last
year's slightly positive results in the same quarter because of
a 13% decline in production from 2005.

GM still faces daunting near-term and long-term competitive and
structural challenges in its North American automotive
operations.

"We are still concerned about GM's ability to generate adequate
profitability and cash flow in this key region for the
foreseeable future," said Standard & Poor's credit analyst
Robert Schulz, "even if cash use in North America is declining
from last year's levels."  Although the company has demonstrated
progress in reducing its cost base and remains in a solid part
of its product launch cycle, the rating agency still considers
prospects for a sustainable recovery to be fragile and
vulnerable to a host of challenges in 2007, including consumer
demand and preferences, raw material costs, and the outcome of
the fall 2007 labor negotiations.  It would not take a very
sharp downturn in the North American market or particularly
significant underperformance to reverse any progress the company
has made in reducing its cash burn.

GM's ratings reflect primarily the lack of intermediate-term
visibility for the company's North American automotive
operations, given the magnitude of recent losses, negative cash
flow generation, and the need to continue implementing its
massive cost-cutting program.  GM has been hampered by
persistent market share erosion and adverse product mix trends
in the U.S., most notably a precipitous weakening of sales of
midsize and large SUVs -- products that had been highly
disproportionate contributors to GM's earnings.  GM is
undertaking yet another significant round of cost reductions to
address these challenges, but sustainable improvements in North
America will also require success with product acceptance and
pricing, in addition to cost reductions.  Some, but not all, new
products launched in 2006 are selling well.  Consumer acceptance
of GM's new full-size pickup truck product line and
other launches will remain crucial determinants of results into
2007.

GM has significantly improved its pension funding position in
recent years, but the unfunded retiree medical liability remains
onerous, even after significant negotiated reductions.  The
liability totaled approximately US$64 billion at year-end 2005,
excluding from offsetting plan assets readily available assets
of the VEBA trust.  This deficit will decline after GM reduces
the liability by US$19.9 billion as a result of benefit
reductions for hourly and salaried employees, the effect of
employee buyouts, and a higher discount rate.  These factors
will be partly offset by US$4 billion in VEBA withdrawals made
during 2006.

The rating outlook on GM is negative.  Prospects for GM's
automotive operations remain clouded.  The ratings could be
lowered further if Standard & Poor's came to expect that GM's
substantial cash outflow would fail to continue to moderate due
to setbacks, whether GM-specific or stemming from market
conditions.  GM would need to reverse its current financial and
operational trends, and sustain such a reversal, before the
rating agency would revise its outlook to stable.


HPJ UK: Creditors' Meeting Slated for December 22
-------------------------------------------------
Creditors of HPJ UK Limited (Company Number 02913342) will meet
at 10:00 a.m. on Dec. 22 at:

         BDO Stoy Hayward LLP
         4th Floor
         Edmund House
         12-24 Newhall Street
         Birmingham B3 3EW
         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 Dec. 21 at:

         C. K. Rayment
         Joint Administrator
         BDO Stoy Hayward LLP
         4th Floor
         Edmund House
         12-24 Newhall Street
         Birmingham B3 3EW
         United Kingdom

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.


GREAT HALL: Moody's Rates GBP5.6-million Class Ea Notes at Ba2
--------------------------------------------------------------
Moody's Investors Service assigned definitive credit ratings to
these classes of Notes issued by Great Hall Mortgages No. 1 plc
Series 2006-01:

   -- GBP10-million Class A1a Notes due June 2038: Aaa;
   -- EUR78-million Class A1b Notes due June 2038: Aaa;
   -- GBP216.3-million Class A2a Notes due June 2038: Aaa;
   -- EUR175-millionClass A2b Notes due June 2038: Aaa;
   -- GBP25.8-million Class Ba Notes due June 2038: Aa3;
   -- GBP7.5-million Class Bb Notes due June 2038: Aa3
   -- GBP11.5-million Class Ca Notes due June 2038: A3;
   -- EUR8-million Class Cb Notes due June 2038: A3;
   -- GBP6-million Class Da Notes due June 2038: Baa3;
   -- EUR11.5-million Class Db Notes due June 2038: Baa3; and
   -- GBP5.6-million Class Ea Notes due June 2038: Ba2.

Moody's previously assigned provisional ratings on the notes on
Nov. 15, 2006.  This transaction represents the first
securitization transaction sponsored by JPMorgan Chase Bank,
N.A. through its Great Hall Mortgages No. 1 program.  The
collateral was originated by Platform Funding Limited, a wholly
owned subsidiary of Britannia Building Society, a party that has
a good track record in the securitization market.  

The ratings of the Notes are based upon an analysis of the
characteristics of the mortgage pool backing the Notes, the
protection the Notes receive from credit enhancement against
defaults and arrears in the mortgage pool, and the legal and
structural integrity of the issue.  

The credit enhancement available in the deal is provided in the
form of excess spread, reserve fund (1.15% of original note
balance at closing), and subordination of the Class B, C, D, and
E Notes.  Subject to certain conditions being met, the reserve
fund may amortize up to a floor of 0.575% of the original note
balance.

The ratings address the expected loss posed to investors by the
legal final maturity.  In Moody's opinion, the structure allows
for timely payment of interest and ultimate payment of principal
at par on or before the final legal maturity date.  Moody's
ratings address only the credit risks associated with the
transaction.  Other non-credit risks have not been addressed,
but may have a significant effect on yield to investors.


GREAT HALL: Fitch Assigns BB Rating on GBP5.6-Million Notes
-----------------------------------------------------------
Fitch Ratings assigned final ratings to Great Hall Mortgages No.
1 Plc Series 2006-1's multi-currency mortgage-backed floating-
rate notes due 2038:

   -- GBP10 million Class A1a: AAA;
   -- EUR78 million Class A1b: AAA;
   -- GBP216.3 million Class A2a: AAA;
   -- EUR175 million Class A2b: AAA;
   -- GBP25.8 million Class Ba: AA;
   -- EUR7.5 million Class Bb: AA;
   -- GBP11.5 million Class Ca: A;
   -- EUR8 million Class Cb: A;
   -- GBP6 million Class Da: BBB;
   -- EUR11.5 million Class Db: BBB; and
   -- GBP5.6 million Class Ea: BB.

The ratings are based on the collateral quality, available
credit enhancement, and the underwriting of Platform Funding
Limited.  They also consider the servicing capabilities of
Western Mortgage Services Limited as instructed by JP Morgan
Chase Bank, and the sound legal structure of the transaction.

Credit enhancement for the Class A notes totaling 15.6% is
provided by the subordination of the Class B notes, the Class C
notes, the Class D and the Class E notes as well as an initial
reserve fund.

To determine appropriate credit enhancement levels, Fitch
analyzed the collateral using its U.K. Residential Mortgage
Default Model III.  The agency also modeled cash flows using the
results of the default model with structural stresses including
various prepayment and interest rate scenarios.

The cash flow tests showed that each Class of notes could
withstand loan losses at a level corresponding to the related
stress scenario without incurring any principal loss or interest
shortfall, and that it can retire the principal by legal final
maturity.


HYDRA FOOD: Taps Baker Tilly to Administer Assets
-------------------------------------------------
Michael David Rollings and Geoffrey Lambert Carton-Kelly of
Baker Tilly were appointed joint administrators of Hydra Food
Group Ltd. (Company Number 05373030) on Nov. 29.

Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing  
and other services for mid-cap and smaller publicly listed
companies and private companies, particularly those expanding
into new foreign markets.  Services include business and
financial planning, tax-related services, corporate finance,
litigation support, turnaround services, and technology
consulting.

Hydra Food Group Ltd. can be reached at:

         Unit 3
         Barratt Industrial Park
         Gillender Street
         Tower Hamlets
         London E3 3JX
         United Kingdom
         Tel: 020 7405 2088


INTROBOND LIMITED: Paul Appleton Leads Liquidation Procedure
------------------------------------------------------------
Paul Appleton of David Rubin & Partners was appointed Liquidator
of Introbond Limited on Dec. 4 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Introbond Limited
         44 Commercial Street
         Tower Hamlets
         London E1 6LT
         United Kingdom
         Tel: 020 7426 0800
         Fax: 020 7426 0989


JMR LIGHTING: Hires Administrators from DTE Leonard Curtis
----------------------------------------------------------
A. Poxon and J. M. Titley of DTE Leonard Curtis were appointed
joint administrators of JMR Lighting Technology Ltd. (Company
Number 04136057) on Nov. 30.

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

JMR Lighting Technology Ltd. can be reached at:

         Rotherham Close
         Killamarsh
         Sheffield
         South Yorkshire S21 2JU
         United Kingdom
         Tel: 01782 576 860


LABEL LINK: Taps Ian S. Carr to Liquidate Assets
------------------------------------------------
Ian S. Carr of Grant Thornton UK LLP was appointed Liquidator of
Label Link Limited on Nov. 29 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Label Link Limited
         Wisbech
         Cambridgeshire PE132SZ
         United Kingdom
         Tel: 01945 468 014
         Fax: 01945 582 119
   

M.P. MANIPULATED: Names Administrators from Begbies Traynor
-----------------------------------------------------------
James P. N. Martin and W. John Kelly of Begbies Traynor were
appointed joint administrators of M.P. Manipulated Tubes Ltd.
(Company Number 01051781) on Dec. 4.

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

M.P. Manipulated Tubes Ltd. can be reached at:

         40 Bracebridge Street
         Birmingham
         West Midlands B6 4PJ
         United Kingdom
         Tel: 0121 359 0478
         Fax: 0121 333 3082


MARCMANOR LIMITED: Names Terry Christopher Evans Liquidator
-----------------------------------------------------------
Terry Christopher Evans was appointed Liquidator of Marcmanor
Limited on Nov. 9 for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         Marcmanor Limited
         2 Lorne Park Road
         Bournemouth
         Dorset BH1 1JN
         United Kingdom
         Tel: 01202 291 232


NASDAQ STOCK: Makes Final GBP2.7-Billion Takeover Bid for LSE
-------------------------------------------------------------
Nasdaq Stock Market Inc. launched a fresh takeover bid for
London Stock Exchange Plc, valuing the LSE at GBP2.7 billion
(US$5.3 billion), Reuters reports.

Nasdaq is appealing directly to shareholders after having two
other takeover approaches turned down.

Nasdaq Chief Executive Officer Robert Greifeld, said the bid
"represents full and fair value for LSE shareholders, taking
into account both the successes of the business, but also the
new competitive threat which LSE faces in 2007 and beyond."

LSE shareholders have until Jan. 11 to either accept or reject
Nasdaq's offer of 1,243 pence a share.  The U.S. exchange
already owns 28.75% of the LSE, Bloomberg relates.

According to the Wall Street Journal, Nasdaq is aiming to get a
little over 50% of share acceptances to secure the deal after
initially demanding a more typical 90% level.

The decision by Nasdaq to lower the level of shareholder
approval may signify that it is not getting much support from
hedge fund investors, which are estimated to own about a third
of the London exchange, Laurie Kulikowski writes for
TheStreet.com

If the deal expires without a resolution, Nasdaq will be
prohibited from making another offer for a year under British
takeover rules, the Financial Times states.

Nasdaq intends to borrow up to US$5.1 billion to finance the
acquisition, Reuters says.

On Nov. 20, the LSE rejected Nasdaq's offer as it substantially
undervalues the exchange and fails to reflect its unique
strategic position.

Nasdaq has reportedly said that it would not improve its bid
unless the LSE drops its rejection or a rival bid surfaces.

As reported in the TCR-Europe on Dec. 8, London Mayor Ken
Livingstone has called on the U.K.'s Office of Fair Trading to
initiate an in-depth inquiry into Nasdaq's proposed takeover of
LSE.

Nasdaq reported third quarter 2006 net income of US$30.2
million, an increase of 69.7% from US$17.8 million in the third
quarter of 2005, and 81.9% from US$16.6 million in the second
quarter of 2006.

Alan Paul, Esq., and Ian Lopez, Esq., at Allen & Overy; and
Michael Hatchard, Esq., and Eric Friedman, Esq., at Skadden Arps
Slate Meagher & Flom give legal advice to Nasdaq.

Freshfields Bruckhaus Deringer is the legal counsel of LSE.

The Nasdaq Stock Market Inc. -- http://www.nasdaq.com/-- is the  
largest electronic equity securities market in the United States
with approximately 3,200 companies.

                         *     *     *

In December 2006, Standard & Poor's Rating Services lowered its
long-term counterparty credit rating on The Nasdaq Stock Market
Inc. to 'BB' from 'BB+'.  The 'BB+' rating on Nasdaq's existing
bank loan facility, which financed the initial 29% stake in the
London Stock Exchange (LSE), is affirmed, while the Recovery
Rating is revised to '1' from '2'.  The ratings were removed
from CreditWatch Negative where they were placed on Nov. 20,
2006.  S&P said the outlook is stable.

At the same time, Standard & Poor's has assigned our 'BB+' bank
loan rating to the proposed USUS$750 million senior secured Term
Loan B, USUS$2.0 billion senior secured Term Loan C, and USUS$75
million revolver to be issued by Nasdaq, as well as the
USUS$500 million senior secured Term Loan C to be issued by
Nightingale Acquisition Ltd., a U.K.-based subsidiary of Nasdaq.
The rating agency has assigned a Recovery Rating of '1', which
indicates full recovery of principal in the event of default.

In addition, Standard & Poor's has assigned its 'B+' rating to
the proposed USUS$1.75 billion senior unsecured bridge loan to
be issued by Nasdaq and NAL.

Moody's Investors Service assigned in April 2006 ratings to
three new bank facilities of The Nasdaq Stock Market Inc.: a
USUS$750 million Senior Secured Term Loan B, a USUS$1,100
million Secured Term Loan C, and a USUS$75 million Senior
Secured Revolving Credit Facility.  Moody's said each facility
is rated Ba3 with a negative outlook.


OCA RESTAURANTS: Creditors' Meeting Slated for January 3
--------------------------------------------------------
Creditors of OCA Restaurants Ltd. (Company Number 05126320) will
meet at 10:00 a.m. on Jan. 3, 2007, at:

         The Freemasons Hall
         36 Bridge Street
         Manchester M3 3BT
         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. 2 at:

         A. H. Tomlinson
         Administrator
         Tomlinsons
         St John's Court
         72 Gartside Street
         Manchester M3 3EL
         United Kingdom
         Tel: 0870 60 70 170
         Fax: 0870 60 70 180
         E-mail: advice@tomlinsons.co.uk

Tomlinsons -- http://www.tomlinsons.co.uk/-- is an independent  
firm of Licensed Insolvency Practitioners with offices in
Manchester, Blackburn and London.  It specializes in all types
of business recovery and insolvency procedures, as well as
offering advice to companies and individuals who believe they
may be heading towards, or are already in, financial difficulty.


ONE WAY: Appoints Administrators from Rothman Pantall
-----------------------------------------------------
R.D. Smailes and S.B. Ryman of Rothman Pantall & Co. were
appointed joint administrators of One Way Transport Ltd.
(Company Number 05241602) on Dec. 1.

Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was  
established in 1955 as a general accountancy practice, and has
grown to its present 18 offices across the South of England. It
is one of the largest independent firms of Chartered Accountants
in the region, and rank in the top 40 in the United Kingdom.

One Way Transport Ltd. can be reached at:

         22 Garth Lwyd
         Caerphilly
         Mid Glamorgan CF83 3QB
         United Kingdom
         Tel: +44 (0) 20 7930 7272


PAPLAND LIMITED: Brings In Liquidator from Marks Bloom
------------------------------------------------------
Andrew John Whelan of Marks Bloom was appointed Liquidator of
Papland Limited on Dec. 6 for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Papland Limited
         Waterhouse Lane
         Kingswood
         Tadworth
         Surrey KT206EQ
         United Kingdom
         Tel: 01737 351 157


PLYFORM PRODUCTS: Creditors' Meeting Slated for January 4
---------------------------------------------------------
Creditors of Plyform Products Company Ltd. will meet at 10:00
a.m. on Jan. 4, 2007, at:

         Baker Tilly
         1 Georges Square
         Bristol BS1 6BP
         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. 3 at:

         A. M. Sheridan
         Joint Administrative Receiver
         Baker Tilly
         1 Georges Square
         Bristol BS1 6BP
         United Kingdom
         Tel: 0117 945 2000
         Fax: 0117 945 2001

Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing  
and other services for mid-cap and smaller publicly listed
companies and private companies, particularly those expanding
into new foreign markets.  Services include business and
financial planning, tax-related services, corporate finance,
litigation support, turnaround services, and technology
consulting.


REFCO INC: Judge Drain Extends Removal Period to January 9
----------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York, in a bridge order issued Dec. 6,
2006, extended Refco Inc. and its debtor-affiliates' Removal
Period through and including Jan. 9, 2007, without prejudice to
their right to seek further extensions.

The Debtors had asked the Court to further extend the period
within which they may file notices of removal with respect to
pending actions through and including March 12, 2007.

J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher
& Flom LLP, in New York, relates that as of the Petition Date,
the Debtors were plaintiffs in 37 actions and proceedings in a
variety of state and federal courts throughout the country.

Mr. St. Clair states that since the Debtors have continued to
focus primarily on winding down their businesses, formulating
and negotiating a global resolution of their cases, and
soliciting acceptances of their existing Plan of Reorganization,
neither the Debtors nor Refco Capital Markets, Ltd., has
reviewed all the Actions to determine whether any of those
should be removed under Rule 9027(a)(2) of the Federal Rules of
the Bankruptcy Procedure.

Furthermore, the results of the Plan solicitation and
confirmation process may well impact the Debtors' decisions
regarding the removal of Actions, Mr. St. Clair notes.

The Debtors believe that an extension of the Removal Period will
afford them sufficient opportunity to assess whether the Actions
can and should be removed, hence, protecting their valuable
right to adjudicate lawsuits under 28 U.S.C. Section 1452.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a     
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement.  On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.

The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006.  Objections to
the plan, if any, must be in by Dec. 1, 2006.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.

(Refco Bankruptcy News, Issue No. 50; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or     
215/945-7000)


REFCO INC: Taps Sonnenschein Nath as Special Litigation Counsel
---------------------------------------------------------------
Refco Inc. and its debtor-affiliates seek the U.S. Bankruptcy
Court for the Southern District of New York's authority to
employ Sonnenschein Nath & Rosenthal LLP as their special
litigation counsel, effective as of November 20, 2006.

Sonnenschein will represent Refco Group Ltd., LLC, in connection
with matters involving Cantor Fitzgerald Securities.

Sonnenschein has been representing non-debtor Refco Securities
LLC in connection with Cantor's arbitration in New York City
with the National Association of Securities Dealers, Inc., on
June 19, 2006.

The Arbitration was based on a breach of a 2004 transaction fee
agreement among Cantor, Cantor Fitzgerald, L.P., eSpeed, Inc.,
RSL, and RGL.  Cantor seeks more than $11,000,000 in the
Arbitration from RSL.

In July 2006, Cantor filed a claim against RGL, which claim was
later amended in October 2006 to assert $11,193,466.

The Debtors believe that Sonnenschein's representation of RGL is
necessary to:

   (i) resolve the Claim against the Debtors' estates; and

  (ii) handle other Cantor-related matters, including the sale
       or other disposition of RGL's 10% interest in Cantor
       Index Holdings, L.P., which RGL acquired in 2002 by
       investing $8,000,000 in Cantor Index.

Furthermore, the Debtors assert that Sonnenschein's familiarity
with the Transaction Agreement and its continued representation
of RSL in the Arbitration supports the firm's employment in the
Debtors' cases for RGL.

Specifically, Sonnenschein will represent RGL in connection
with:

   (a) the Claim and Arbitration, including drafting,
       negotiating and filing any and all papers to resolve the
       Claim and Arbitration;

   (b) the Sale Transaction, including drafting, negotiating and
       filing any and all papers to effectuate the Sale
       Transaction; and

   (c) any other matter involving RGL and Cantor, Cantor
       Fitzgerald, L. P., or any Cantor affiliate or related
       entity.

Sonnenschein's current hourly rates, subject to periodic
adjustments, are:

              Partners               $450 to $880
              Associates             $230 to $480
              Legal assistants       $130 to $250

Sonnenschein will apply for allowance of compensation for
services rendered and reimbursement of expenses incurred in the
Debtors' cases.  Sonnenschein will also follow the allocation
procedures for fees and expenses that will require the firm to
(i) report compensation received from RSL including its report
of compensation from RSL and (ii) abide by Court-established
procedures.

Peter D. Wolfson, a partner at Sonnenschein, attests that the
firm does not hold or represent any interest adverse to the
estates, and is a "disinterested person," as that term is
defined in Section 101(14) of the Bankruptcy Code.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a     
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement.  On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.

The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006.  Objections to
the plan, if any, must be in by Dec. 1, 2006.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.

(Refco Bankruptcy News, Issue No. 50; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or     
215/945-7000)


SANDHU MENSWEAR: Creditors' Meeting Slated for December 21
----------------------------------------------------------
Creditors of Sandhu Menswear Company Ltd. (Company Number
03023986) will meet at noon on Dec. 21 at:

         Smith Cooper
         Wilmot House
         St. James Court
         Friar Gate
         Derby DE1 1BT
         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 Dec. 20 at:

         Simon Gwinnutt
         Administrator
         Smith Cooper
         Wilmot House
         St James Court
         Friar Gate
         Derby
         Derbyshire DE1 1BT
         United Kingdom
         Tel: 01332 332021
         Fax: 01332 290439
         E-mail: smg@smithcooper.co.uk


SAUNDERS AND SHEPHERD: Hires Liquidator from Benedict Mackenzie
---------------------------------------------------------------
Anthony Peter McQueen Benedict of Benedict Mackenzie LLP was
appointed Liquidator of Saunders and Shepherd Limited on Nov. 30
for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Saunders and Shepherd Limited
         Albion Street
         Birmingham
         West Midlands B1 3EA
         United Kingdom
         Tel: 0121 236 1729
         Fax: 020 7405 2914


STRATOS GLOBAL: S&P Cuts Rating to B on Weak Operating Results
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Canada-based remote telecommunications service provider Stratos
Global Corp., including the long-term corporate credit and the
senior secured bank loan ratings to 'B' from 'B+', and placed
the ratings on CreditWatch with negative implications.  At the
same time, the bank loan recovery ratings of '3' were affirmed.

"The one-notch downgrade reflects weaker-than-expected operating
results for the nine months ended Sept. 30, 2006, and concerns
that Stratos' profitability, credit measures, and financial
flexibility will remain weak in the near term," said Standard &
Poor's credit analyst Madhav Hari.  "The CreditWatch placement
reflects additional near-term concerns with respect to Stratos'
ability to meet its financial covenants under its senior secured
credit facility," Mr. Hari added.

Specifically, in the first quarter of 2007, several financial
covenants under the company's senior secured bank debt agreement
are expected to become more restrictive.  In particular, the
minimum EBITDA-to-cash interest ratio and the minimum fixed-
charge ratio covenant are expected to step up; based on Standard
& Poor's calculations, Stratos will at best have minimum
flexibility in meeting these covenants.  Should operating
performance deteriorate further, or the 2007 covenants not be
modified, the ratings could be lowered further; therefore,
liquidity could be severely constrained under such a scenario.

In resolving its CreditWatch listing, Standard & Poor's will
focus its review primarily on:

   -- Stratos' operating performance; its ability to deliver
      on the Xantic BV integration and other cost savings
      as planned; and

   -- the company's ability to demonstrate that it will
      remain compliant with its financial covenants on
      a sustained basis.


T. J. RILEY: Brings In Joint Administrators from PwC
----------------------------------------------------
Mark David Charles Hopkins and Stuart David Maddison of
PricewaterhouseCoopers LLP were appointed joint administrators
of T. J. Riley (Plant & Transport) Ltd. (Company Number
01369326) on Nov. 30.

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

T.J. Riley (Plant & Transport) Ltd. can be reached at:

         Beveridge Lane
         Ellistown
         Coalville
         Leicestershire LE67 1FB
         United Kingdom
         Tel: 01530 264 050
         Fax: 01530 264 060


TATTON BUILD: Appoints Gary J. Corbett to Liquidate Assets
----------------------------------------------------------
Gary J. Corbett of Milner Boardman & Partners was appointed
Liquidator of Tatton Build Limited on Dec. 6 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Tatton Build Limited
         18 Blackhill Lane
         Knutsford
         Cheshire WA169DR
         United Kingdom
         Tel: 01565 653 040
         Fax: 01565 653 040


TERRY'S PRIVATE: Creditors Claims Due March 5, 2007
---------------------------------------------------
Creditors of Terry's Private Hire (CAMBS) Limited have until
March 5, 2007, to send in their names and addresses and
particulars of their debts or claims and of any security held by
them, and the names and addresses of their Solicitors (if any),
to appointed Liquidator Alan Keith Thornton at:

         Bulley Davey
         69-75 Lincoln Road
         Peterborough PE1 2SQ
         United Kingdom

The company can be reached at:

         Terry's Private Hire (CAMBS) Limited
         Unit 3-4
         Upland Industrial Estate
         Mere Way
         Wyton
         Huntingdon
         Cambridgeshire PE282JZ
         United Kingdom
         Tel: 01480 413 131


TISCALI SPA: Wind Chairman Naguib Sawiris Mulls Acquiring Firm
--------------------------------------------------------------
Naguib Sawiris, chairman of Wind Telecomunicazioni S.p.A., is
considering the acquisition of Italian telecommunications rival
Tiscali S.p.A., Bloomberg News reports.

Mr. Sawiris revealed that Wind has suspended its initial public
offering indefinitely, pending the completion of the company's
consolidation.

"We're watching the consolidation process," Mr. Sawiris told
Bloomberg.  "If we need cash we'll hold the IPO."

Mr. Sawiris announced in May that he intends to sell his shares
in Weather Investments Srl, the investment vehicle that owns
Wind and a majority stake in Orascom Telecom Holding S.A., for
around EUR2.5 billion in the last quarter of 2006.

                         About Wind

Headquartered in Rome, Italy, Wind Telecomunicazioni S.p.A. --
http://www.wind.it/--  operates of integrated fixed-mobile-
Internet communications services.  The company, classified as
the fastest start-up among telecom companies in Europe, actually
is the third Italian mobile operator, with a market share of
over 19%.

                        About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the  
country.  The group also operates in other European countries,
serving more than seven million subscribers, of which over 1.5
million are broadband users.  It has sold non-core assets to
raise money to cover a EUR250 million bond that matured in July.  
Former chairman and founder Renato Soru owns almost 30% of the
company.

As reported in the TCR-Europe on Oct. 13, Tiscali is focusing on
its Italian and U.K. operations.

                          *     *     *

As reported in TCR-Europe on March 8, Fitch Ratings sustained
Italy-based Tiscali S.p.A.'s Long-term Issuer Default Rating at
CCC with Stable Outlook.  Tiscali's Short-term rating is
downgraded to C from B to be in line with the CCC IDR.  At the
same time, the agency affirmed Tiscali Finance S.A.'s EUR209
million guaranteed notes at B-/RR2.


UPPER DECK: Joint Liquidators Take Over Operations
--------------------------------------------------
Tim Alan Askham and Paul Charlton of Mazars LLP were appointed
Joint Liquidators of Upper Deck Conversions Limited (formerly
Truss Roof Loft Conversion Limited) on Nov. 30 for the
creditors' voluntary winding-up procedure.

The company can be reached at:

         Upper Deck Conversions Limited
         81j Clotherholme Road
         Ripon
         North Yorkshire HG4 2DN
         United Kingdom
         Tel: 017 6560 4596


* BOOK REVIEW: Cardozo and Frontiers of Legal Thinking: With
               Selected Opinions
------------------------------------------------------------
Author:     Beryl H. Levy
Publisher:  Beard Books
Paperback:  336 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1893122689/internetbankru
pt

Cardozo and Frontiers of Legal Thinking, by Beryl H. Levy
portrays Justice Cardozo, a lawyer and philosopher, as concerned
with harmonizing legal rules with social values and the demands
of stability with changes in the law.

In this scholarly but eminently readable tome, Beryl H. Levy
focuses on the law that is made by judges in the higher courts
when an appeal is taken from the trial court.

He specifically addresses closely contested cases where
convincing briefs have been presented by both sides and where
the judges on the appellate court are likely to be divided.

The point of departure is the thinking of Justice Benjamin
Cardozo, who recognized emerging trends and forces in the
country and made public law more responsive to them.

                           *********

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

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

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

                           *********


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

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

Copyright 2006.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *