  The eta-deuteron scattering amplitude is calculated with a recent K-matrix
model of eta-N interactions. The existence of a narrow virtual state in the
eta-deuteron system is inferred. This state couples strongly to the eta-d
channel but its effect on final state interactions in the pn --> eta-d reaction
is shown to be rather weak. Fairly large eta-N scattering lengths are allowed
by the experimental data.
