TCR_Public/081129.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

           Saturday, November 29, 2008, Vol. 12, No. 285

                             Headlines



KIMBALL HILL: Files Operating Report for Month Ended October 31
PAPER INTERNATIONAL: Posts $481,806 Net Loss in October 2008
QUEBECOR WORLD: Files Operating Report for September 2008
TWEETER OPCO: Files Initial Monthly Operating Report



                             *********

KIMBALL HILL: Files Operating Report for Month Ended October 31
---------------------------------------------------------------

                    Kimball Hill, Inc.
      Summary of Cash Receipts and Disbursements
      For the Period From October 1 to 31, 2008

Beginning Cash Balance                               $92,264,907

Receipts from operations
Accounts receivable receipts                         21,425,282
Notes receivable receipts                                     0
Accts. Receivable collection for non-debtors            548,668

Other receipts
Interest income                                          40,639
Proceeds from sale of fixed assets                            0
Proceeds from sale of mineral rights                  4,500,295
Proceeds from MUD reimbursables                               0
Customer deposits                                       286,733
Customer deposits for non-debtors                        43,233
Miscellaneous receipts                                  668,787
                                                   -------------
Total Receipts                                        27,513,637
                                                   -------------
Disbursements
Payroll
  Officers                                               931,686
  Others                                               2,521,775
   Total Payroll                                   -------------
                                                       3,453,460
Taxes
  Federal income tax                                     869,982
  FICA withholdings                                      256,379
  Employee's withholdings                                      0
  Employer's FICA                                        256,379
  Federal unemployment taxes                                 554
  State income tax                                        78,019
  State employee withholdings                                  0
  All other state taxes                                    2,243
  State unemployment taxes                                 2,701
                                                   -------------
   Total Taxes                                         1,466,256

Necessary expenses
Homebuilding costs                                   19,533,284
Debt and interest payments                            1,352,884
General and administrative costs                      3,689,224
Permits                                               1,652,212
Land and land Development                             2,198,751
Medical health claims                                   794,247
Customer deposit refunds                                 56,819
401K funding                                            225,299
  Texas sales taxes                                      131,520
  Professional fees                                    2,419,589
  Warranty costs                                         268,009
  Flex spending reimbursements                            10,419
                                                   -------------
  Total Necessary Expenses                            32,332,257
                                                   -------------

Total Disbursements                                   37,251,974
                                                   -------------
Net receipts (disbursements)
for the period                                        (9,738,336)
                                                   -------------
Ending Cash Balance                                  $82,526,571
                                                   =============

Headquartered in Rolling Meadow, Illinois, Kimball Hill Inc. --
<http://www.kimballhillhomes.com/>http://www.kimballhillhomes.com/-- is one of the
largest privately-owned homebuilders and one of the 30 largest
homebuilders in the United States, as measured by home deliveries
and revenues.  The company designs, builds and markets single-
family detached, single-family attached and multi-family homes.
The company currently operate within 12 markets, including, among
others, Chicago, Dallas, Fort Worth, Houston, Las Vegas,
Sacramento and Tampa, in five regions: Florida, the Midwest,
Nevada, the Pacific Coast and Texas.

Kimball Hill, Inc. and 29 of its affiliates filed for Chapter 11
protection on April 23, 2008 (Bankr. N.D. Ill. Lead Case No. 08-
10095).  Ray C. Schrock, Esq., at Kirkland & Ellis LLP, represents
the Debtors in their restructuring efforts.  The Debtors'
consolidated financial condition as of Dec. 31, 2007, reflected
total assets of $795,473,000 and total debts $631,867,000.

The Debtors have until Jan. 16, 2009, to exclusively file a
bankruptcy plan.  

(Kimball Hill Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service, Inc., <http://bankrupt.com/newsstand/>http://bankrupt.com/newsstand/or 215/945-7000).


PAPER INTERNATIONAL: Posts $481,806 Net Loss in October 2008
------------------------------------------------------------
Paper International, Inc., and Fiber Management of Texas, Inc.,
filed their monthly operating report for the period from Oct. 6,
2008, to Oct. 31, 2008.

At Oct. 31, 2008, the Debtors had total assets of $125,376,442,
total debts of $552,748,545, and a stockholders' deficit of
$427,372,103.

For the period from Oct. 6, 2008, to Oct. 31, 2008, the Debtors
reported a net loss of $481,806, on zero revenues.

Full-text copies of the Debtors' monthly operating report for
October 2008, is available for free at:

               <http://ResearchArchives.com/t/s?3566>http://ResearchArchives.com/t/s?3566

                    About Paper International

Headquartered in Prewitt, New Mexico, Paper International, Inc.
--  <http://www.internationalpaper.com/>http://www.internationalpaper.com/-- is the wholly-owned  
direct subsidiary of Corporacion Durango, S.A.B. de C.V., a
corporation organized under the laws of Mexico, which maintains
its principal place of business in Durango, Mexico.  The Debtor
currently owns 100% of the equity shares in Fiber Management of
Texas, Inc. a corporation organized under the laws of Texas, as
well as 100% of the equity shares in non-debtor Durango McKinley
Paper Company, a New Mexico company.  Paper International is a
holding company which has no employees, no operations, and whose
primary assets are its ownership interests in Durango McKinley and
Fiber Management.  

Before August 2008, Fiber Management's primary business was the
procurement of paper materials to manufacture recycled paper
products for use by Durango McKinley and other paper manufacturing
affiliates of Corporacion Durango located in Mexico.  In
August 2008, Fiber Management ceased procuring fiber and began
winding up all of its business operations.

The company and Fiber Management filed for Chapter 11 protection
on Oct. 6, 2008 (Bankr. S.D. N.Y. Lead Case No.08-13917).  Larren
M. Nashelsky, Esq., and Lorenzo Marinuzzi, Esq., at Morrison &
Foerster LLP, represent the Debtors as counsel.  APS Services, LLC
serves as the Debtors' crisis managers.  The Debtors designated  
Meade Monger, a managing director of AlixPartners, LLP, an
affiliate of AP Services, as its chief restructuring officer.  The
Court appointed Kurtzman Carson Consultants, LLC as claims agent
in the Debtors' bankruptcy case.  In its schedules, the Debtors
reported total assets of $112,781,426, and total debts of     
$549,581,794.

Corporacion Durango filed a voluntary petition for Chapter 15 on
Oct. 6, 2008 (Bankr. S.D. N.Y. case no. 08-13911) in connection
with its reorganization case in Mexico under Mexico's Ley de
Concurson Mercantiles in the District Court for Civil Matters for
the District of Durango.  


QUEBECOR WORLD: Files Operating Report for September 2008
---------------------------------------------------------

               Quebecor World (USA), Inc., et al.
                     Combined Balance Sheet
                   As of September 27, 2008

ASSETS

Current Assets:
  Cash and Cash equivalents                        $163,200,000
  Accounts receivables                              538,800,000
  Trade and receivables                              45,400,000
  Inventories                                       161,900,000
  Future income taxes and tax receivable             17,000,000
  Prepaid Expenses                                   29,500,000
                                                  -------------
Total current expenses                              955,800,000
                                                  -------------
Property, plant and equipment                     1,153,200,000
Goodwill                                            336,400,000
Restricted cash                                      32,300,000
Future income taxes                                   2,600,000
Other assets                                        342,400,000
                                                 --------------
TOTAL ASSETS                                     $2,822,700,000
                                                 ==============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities not subject to compromise:
  Bank indebtedness                                 $14,400,000
  Trade payables and accrued liabilities            269,000,000
  Payables to related parties                         3,100,000
  Income and other taxes payable                     21,700,000
  Current portion long-term debt                    491,800,000
  Combined Statement of Operations                2,889,800,000
                                                  -------------
Total current liabilities                         3,689,800,000
                                                  -------------
Other liabilities not subject to compromise:
  Long-term debt                                      7,400,000
  Other liabilities                                 167,500,000
  Future income taxes                                93,800,000

Shareholders' equity:
Capital stock                                     1,031,300,000
Contributed surplus                                 470,000,000
Retained earnings                                (2,636,800,000)
Accumulated other comprehensive loss                   (300,000)
                                                 --------------
Total Equity                                     (1,135,800,000)
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $2,822,700,000
                                                 ==============

               Quebecor World (USA), Inc., et al.
                Combined Statement of Operations
              For the month ended September 27, 2008

OPERATING REVENUES                                 $225,900,000
Operating expenses:
Cost of sales                                       182,300,000
Selling, general and administrative                  20,700,000
Depreciation and amortization                        16,300,000
Restructuring and other charges                       5,500,000
                                                    -----------
Total operating expenses                            224,800,000
                                                    -----------
Operating income                                      1,100,000

Financial expenses                                   13,600,000
Reorganization items                                  3,900,000
Income taxes                                            600,000
                                                     ----------
                                                     18,100,000
                                                    -----------
Net loss and comprehensive loss                    ($17,000,000)
                                                    ===========

               Quebecor World (USA), Inc., et al.
                Combined Statement of Cash Flows
               For Month Ended September 27, 2008

Cash flows from operating activities:
Net loss                                           ($17,000,000)
Adjustments for:
Depreciation of property, plant and equipment        16,200,000
Future income taxes                                 (18,400,000)
Amortization of other assets                            700,000
Other                                                 1,000,000
                                                   ------------
                                                    (17,500,000)
                                                   ------------
Net changes in non-cash balances to operations:
Accounts receivable                                  (6,800,000)
Inventories                                         (10,200,000)
Trade payables and accrued liabilities               42,500,000
Other current assets and liabilities                 22,100,000
Other non-current assets and liabilities            (11,400,000)
                                                   ------------
                                                     36,200,000
                                                   ------------
Cash flows provided by (used in) operating
activities                                           18,700,000
                                                   ------------
Cash flows from financing activities:
Net change in bank indebtedness                       1,600,000
Repayment of long-term debt obligations under
capital lease                                         3,000,000
                                                   ------------
Cash flows provided by (used in) operating
activities                                            4,600,000
                                                   ------------
Cash flows from investing activities:
Additions to property, plant and equipment           (3,300,000)
Restricted cash related to insolvency proceedings             0
                                                   ------------
Cash flows provided by (used in) operating
activities                                           (3,300,000)
                                                   ------------
Net changes in cash and cash equivalents             10,800,000
Cash and cash equivalents, beginning of period      152,400,000
                                                   ------------
Cash and cash equivalents, end of period           $163,200,000
                                                   ============

                       About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW) -- <http://www.quebecorworldinc.com/>http://www.quebecorworldinc.com/-- provides market          
solutions, including marketing and advertising activities, as well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media.  It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia.  In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail.

The company has operations in Mexico, Brazil, Colombia, Chile,
Peru, Argentina and the British Virgin Islands.

Ernst & Young, Inc., the monitor of Quebecor World Inc., and its
affiliates' reorganization proceedings under the Canadian
Companies' Creditors Arrangement Act, filed a petition under
Chapter 15 of the Bankruptcy Code before the U.S. Bankruptcy Court
for the Southern District of New York on September 30, 2008, on
behalf of QWI (Bankr. S.D.N.Y. Case No. 08-13814).  The Chapter 15
case is before Judge James M. Peck.  Kenneth P. Coleman, Esq., at
Allen & Overy LLP, in New York, serves as counsel to the Chapter
15 petitioner.

QWI and certain of its subsidiaries commenced the CCAA proceedings
before the Quebec Superior Court (Commercial Division) on Jan. 20,
2008.  The following day, 53 of QWI's U.S. subsidiaries, including
Quebecor World (USA), Inc., filed petitions under Chapter 11 of
the U.S. Bankruptcy Code.

The Honorable Justice Robert Mongeon oversees the CCAA case.  
Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the
company in the CCAA case.  Ernst & Young Inc. was appointed as
Monitor.

Quebecor World (USA) Inc., its U.S. subsidiary, along with other
U.S. affiliates, filed for chapter 11 bankruptcy before the U.S.
Bankruptcy Court for the Southern District of New York (Lead Case
No. 08-10152).  Anthony D. Boccanfuso, Esq., at Arnold & Porter
LLP, represents the Debtors in their restructuring efforts.  The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.

Based in Corby, Northamptonshire, Quebecor World PLC --
<http://www.quebecorworldplc.com/>http://www.quebecorworldplc.com/-- is the U.K. subsidiary of          
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns.  The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.

QWI is the only entity involved in the CCAA proceedings that is
not a Debtor in the Chapter 11 Cases.

As of June 30, 2008, Quebecor World's unaudited consolidated
balance sheet showed total assets of $3,412,100,000 total
liabilities of $4,326,500,000 preferred shares of $62,000,000
and total shareholders' deficit of $976,400,000.

The Hon. Robert Mongeon of the Quebec Superior Court has extended
until Dec. 14, 2008, the stay under the Canadian Companies'
Creditors Arrangement Act.

(Quebecor World Bankruptcy News, Issue No. 31; Bankruptcy
Creditors' Service Inc., <http://bankrupt.com/newsstand/>http://bankrupt.com/newsstand/or    
215/945-7000)  


TWEETER OPCO: Files Initial Monthly Operating Report
----------------------------------------------------
Tweeter Opco LLC and its debtors affiliates filed with the U.S.
Bankruptcy Court for the District of Delaware on Nov. 20, 2008, an
initial monthly operating report.

The Initial Report incorporates an eight week cash flow forecast
commencing on the week ended Nov. 7, 2008, through the week
ended Dec. 26, 2008.

For the eight week period ending Dec. 26, 2008, the Opco Debtors
estimate:

-- receipts to total $45.4 million;

-- disbursements to aggregate $31.7 million;

-- a net cash flow of $17.4 million; and

-- an ending cash balance totaling $2.3 million.

A full-text copy of the Tweeter Opco 8-Week Consolidated Cash
Flow is available for free at <http://ResearchArchives.com/t/s?283>http://ResearchArchives.com/t/s?283

The Initial Report also included certain documents like insurance
certificates, a list of Tweeter Opco's bank accounts and a
schedule of retainers paid by Tweeter Opco to certain
professionals.

                       About Tweeter Opco

Tweeter Opco, LLC, was formed in July 2007 to acquire the business
operations and assets of Tweeter Home Entertainment Group, Inc.
The company filed for Chapter 11 protection on Nov. 5, 2008
(Bankr. D. Delaware Case No. 08-12646).  Chun I. Jang, Esq., and
Cory D. Kandestin, Esq., at Richards, Layton & Finger, P.A.,
assists the company in its restructuring effort.  The company
listed assets of $50 million to $100 million and debts of
$50 million to $100 million.

(Tweeter Bankruptcy News, Bankruptcy Creditors' Service, Inc.,
<http://bankrupt.com/newsstand/>http://bankrupt.com/newsstand/or 215/945-7000).
                              
                             *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $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
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
<http://conferences@bankrupt.com/>conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

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/>http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                             *********

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 is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Luke Caballos, Sheryl Joy P. Olano, Ronald C. Sy, Joel
Anthony G. Lopez, Cecil R. Villacampa, Carlo Fernandez,
Christopher G. Patalinghug, and Peter A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9474.

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 subscription rate is $775 for 6 months 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 $25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.  
                   
                    *** End of Transmission ***