Hello Jones,
Chances are there is thread stuck in the bottom assuming it is not an overlocker(serger) I do not recognise this model, however, force the balance wheel backwards very slowly, and it will free off the raceway, the worst you can do is break the needle, try this first and get back to me if you are having a problem, let me know if it is a serger, contact me on drivewithken@blueyonder.co.uk I do not go back to questions to answer them again on this site.
Ken
drivewithken@blueyonder.co.uk, October 2007