TCRLA_Public/060512.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

          Friday, May 12, 2006, Vol. 7, Issue 94

                            Headlines

A R G E N T I N A

AEROLINEAS ARGENTINAS: Promises Wage Increase to Five Unions
AGUAS ARGENTINAS: Asks Court's Permission to Restructure Debts
BANCO HIPOTECARIO: Repurchases US$156 Million in Bonds
BANCO RIO: Aims to Increase Consumer Loan Portfolio by 136%
FEDERACION OBRERA: Individual Reports Due in Court on June 9

GRUPO CLAVE: Sets June 14 as Deadline for Claims Verification
INDELFIN S.A.: Files Reorganization Petition in Buenos Aires
O. ARIAS: Court Concludes Reorganization Proceeding
PLANTA REVESA: Court Closes Reorganization Process
PRODUCTOS JAP: Reorganization Case Ends

SAFEWAY S.A.: Trustee Presents Individual Reports on May 18
TELEFONICA DE ARGENTINA: S&P Says Asset Buy Won't Affect Ratings
TESORO MARINO: Individual Reports Due in Court on June 14
WIRTZ & CIA: Court Concludes Reorganization Proceeding

B A H A M A S

WINN-DIXIE: Asks to Assume Modified JEA Electrical Service Pacts

B E R M U D A

CONOCO IRAN: Sets May 17 as Last Day for Proofs of Claim Filing
FOSTER WHEELER: Elects Ralph Alexander as New Board Member
FOSTER WHEELER: Discloses Strong First Quarter 2006 Results
MAN WYVREN: Last Day to File Proofs of Claim Is Today
MCEWANS LIMITED: Sets May 19 Deadline for Proofs of Claim Filing

OLD BROAD: Creditors Must File Proofs of Claim by May 17
OVERSEAS LEASING: Sets May 25 for Final Shareholders Meeting

B O L I V I A

* BOLIVIA: Will Make Changes on Telecoms Regulations

B R A Z I L

BANCO DAYCOVAL: S&P Assigns B+ Rating on Proposed US$50-Mil Debt
BANCO FERROVIAS: America Latina Buys Concessions for BRL1.4 Mil.
BANCO ITAU: Units Make BRL1.71 Bil. First Quarter Net Revenues
BANCO NACIONAL: Allocates BRL67.1M for Parana Transmission Line
BANCO PACTUAL: UBS Buy Deal Cues Fitch to Watch Credit Ratings

BANCO PACTUAL: Proposed Buy Cues Moody's to Affirm UBS' Ratings
COMPANHIA SIDERURGICA: Posts BRL340M First Quarter Net Income
PETROLEO BRASILEIRO: Starts Gas Price Negotiations with Bolivia
SADIA: S&P Says Poor First Quarter Results Won't Affect Ratings
TEXAS MARINE: Liquidator Presents Wind Up Accounts on May 25

VARIG: Creditors Approve Plan to Auction Routes & Assets

* BRAZIL: IDB Grants US$30 Mil. Loan for Highway Rehabilitation

C A Y M A N   I S L A N D S

AUTOPISTAS DEL NORDESTE: Fitch Affirms B Rating on Senior Notes
DOUBLE SUCCESS: Sets May 18 as Last Day to File Proofs of Claim
FINANCE HIGH: Liquidator Presents Liquidation Progress on May 19
GDANSK LEASING: Final Shareholders Meeting Set for May 19
GLORYLAND HOLDINGS: Proofs of Claim Filing Ends on May 18

LIBERTY CORNER (MASTER): Final General Meeting Set for May 19
LIBERTY CORNER (OFFSHORE): Holds Last General Meeting on May 19
MAINSTAY HOLDINGS: Proofs of Claim Must be Filed by May 18
MEGASHIELD HOLDINGS: Proofs of Claim Filing Ends on May 18
YANKEE CHARLIE: Filing of Proofs of Claim Ends on May 18

C O L O M B I A

* COLOMBIA: Wants to Work with Venezuela Despite US FTA Tension

C U B A

* CUBA: Foreign Firms Interested in Exploring Nation for Crude

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: IMF Completes Review on Stand-By Agreement

G U A T E M A L A

* GUATEMALA: IDB Approves US$50-Mil Loan for Investment Programs

J A M A I C A

KAISER ALUMINUM: Appoints Joseph Bellino as Executive VP and CFO

M E X I C O

GRUPO MEXICO: Denies Reports on Sale of Mines
GRUPO MEXICO: Shuts Down Operations at San Martin Zinc Mine
MERIDIAN AUTOMOTIVE: Milbank Appeals Judge Walrath's Decision

P A N A M A

BANCO LATINOAMERICANO: First Quarter Earnings Drop 44.7%

P E R U

SIDERPERU: Aceros Arequipa May Participate in July 14 Auction

P U E R T O   R I C O

ADELPHIA COMMS: Mulls Sale of 374,632 of Jones Media Shares
ADELPHIA COMMS: W.R. Huff Wants to Conduct Rule 2004 Probe
CLEARCOMM LP: Kevane Soto Raises Going Concern Doubt
GLOBAL HOME: Gets Final Court Order for Cash Collateral Use
KMART CORP: Rubloff Development Moves for Summary Judgment

KMART CORP: Files Revised Status Report on Avoidance Actions

T R I N I D A D & T O B A G O

MIRANT CORP: Creditors Committee Wants Fee Bonuses Denied
MIRANT CORP: Plan Trustees Ask Court for Compensation

U R U G U A Y

* URUGUAY: Lack of Rainfall May Cause Shortage in Electricity
* URUGUAY: IFC Proposes Action Plan to Study Pulp Mill Projects

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Buys 28 Drills from China Petro
SIDETUR FINANCE: Completes US$100-Mil Bond Issue in Int'l Market




                            - - - - -



=================
A R G E N T I N A
=================


AEROLINEAS ARGENTINAS: Promises Wage Increase to Five Unions
------------------------------------------------------------
Antonio Mata -- the Vice-Chairman of the Board of Directors of
the Aerolineas Argentinas Group -- and the Director Jose Maria
Llodra met on May 9, 2006, at the headquarters of the company
with representatives of five unions.

During the meeting Aerolineas' directors, the Aerolineas
Argentines disclosed the decision to grant a 19% salary raise
for the nearly 7,000 workers represented by these entities, once
social peace is attained with the mechanics and pilots unions
currently in conflict with the company.

The representatives include:

     * Edgardo Llanos and Pablo Dolagaratz of Asociacion del
       Personal Aeronautico aka APA -- the  Association of
       Aeronautical Staff,

     * Silvia Sackman and Liliana De La Riva Carrasco of
       Asociacion Argentina de Aeronavegantes aka AAA -- the
       Argentine Association or Air Navigators,

     * Oscar Perez and Ruben Fernandez of Union Personal
       Superior de Aerolineas aka UPSA -- the Superior Airline
       Staff Union,

     * Luis Capurro and Julio Lafuente of Asociacion de Tecnicos
       de Vuelo de Lineas Aereas aka ATVLA -- the Association of
       Airline Flight Technicians, and

     * Bruno Brunialti and Diego Serra of Union Aviadores de
       Lineas Aereas aka UALA -- the Airline Aviators Union.

The directors ratified the commitment taken on by the five
unions, even duly announced to Ministry of Labor authorities and
top national authorities.

During the meeting, it was made clear that the intention of the
company was to agree on the salary raise months ago, but the
decision was postponed as conversations with the pilots and
technicians unions were being put off, unions to which the
company proposed the same remunerations adjustment.

"We would have wanted that the workers represented by the unions
that are present here to have received the adjustment months
ago, but we have crashed against the permanent unyielding
attitude of two unions in conflict," said Mr. Mata.

During the meeting, the company also announced the appointment
of Dr. Esteban Maccari as General Manager of the Aerolineas
Argentinas Group.  Mr. Maccari will be in charge of the
management of the company, according to the guidelines set by
the majority stockholders.

Mr. Maccari's appointment was aimed at providing the company
with greater efficiency and agility in the daily management, in
addition to the business strategies issued by the Board of
Directors.

                        *    *    *

As reported in the Troubled Company Reporter on June 15, 2000,
Aerolineas Argentinas needed a US$650 million capital injection
and sweeping cost cuts to save it from bankruptcy.  Aerolineas'
biggest shareholder covered a bulk of its losses, which Spanish
sources put at US$300 million in 2000.

                        *    *    *

Aerolineas Argentinas defaulted on a US$50 million bonds due on
Dec. 23, 2003.


AGUAS ARGENTINAS: Asks Court's Permission to Restructure Debts
--------------------------------------------------------------
Court No. 17 of Buenos Aires is studying the request for
reorganization submitted by local company Aguas Argentinas S.A.,
La Nacion reports.

The report adds that that the company filed a reorganization
petition following cessation of debt payments.

The city's Clerk No. 34 assists the court on this case.

The debtor can be reached at:

            Aguas Argentinas S.A.
            Talcahuano 718
            Buenos Aires, Argentina


BANCO HIPOTECARIO: Repurchases US$156 Million in Bonds
------------------------------------------------------
Argentine mortgage bank Banco Hipotecario said in a press
release that it repurchased US$156 million worth of US dollar
and euro-denominated bonds in cash.

According to Business News Americas, Banco Hipotecario
repurchased:

     -- US$130 million in dollar-denominated bonds, and
     -- US$26.4 million in euro-denominated bonds.

BNamericas reports that analysts believe the repurchase, plus
the US$290 million bond issuance in April, will allow the bank
to replace up to 55% of the US$1 billion debt that was
restructured in January 2004.

BNamericas recalls that the bank launched in April an offer to
repurchase:

     -- US$82.5 million worth of US dollar-denominated bonds,
        and

     -- US$82.5 million in euro-denominated bonds maturing 2013.

The offer expired on May 3, 2006, BNamericas relates.

                        *    *    *

On Jan. 25, 2006, Standard & Poor's Ratings Services assigned
'B-' foreign currency senior unsecured debt rating to Banco
Hipotecario S.A.'s US$100 million issuance.  The issuance
constituted the second tranche of BH's Series IV notes due Nov.
16, 2010, issued under the US$1.2 billion senior unsecured
global MTN program.  With this issuance, the series (whose first
tranche was rated 'B-' on Nov. 16, 2005) will total US$250
million.  At the same time, Standard & Poor's affirmed its
ratings on the Argentine bank's outstanding debt and its
'B-/Stable/--' counterparty credit ratings.  S&P said the
outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter on March 28, 2006,
Standard & Poor's Ratings Services raised the foreign and local
currency counterparty credit ratings on Banco Hipotecario S.A.
At the same time, Standard & Poor's placed the ratings on
several Argentine entities on CreditWatch with positive
implications.  These rating actions follow the upgrade on the
Republic of Argentina.

S&P raised the bank's global foreign and local currency
ratings on Argentina to 'B' from 'B-' and the ratings on the
national scale to 'raAA-' from 'raA', reflecting Argentina's
improved external and fiscal flexibility.

S&P said the outlook on the sovereign rating is stable.

S&P's transfer and convertibility risk assessment for Argentina
was raised to 'BB-', two notches higher than Argentina's foreign
currency rating.

S&P raised the rating on Banco Hipotecario one notch to
'B/Stable/--', in tandem with the sovereign upgrade on
Argentina, reflecting the close linkage between the credit
quality of the sovereign and that of its financial system.


BANCO RIO: Aims to Increase Consumer Loan Portfolio by 136%
-----------------------------------------------------------
Argentina's Banco Rio de la Plata, a subsidiary of Spain's Grupo
Santander, said in a press release that it aims to increase its
consumer loan portfolio this year by 136% to ARS1 billion.

Business News Americas relates that the bank's consumer loans
increased 389% to ARS215 million in the first quarter due to the
growing demand for house repairs and car loans.

Banco Rio raised its market share in the segment 0.8 percentage
points to 6.8% at the end of March, BNamericas reports.

BNamericas recalls that Banco Rio said it expected to boost
overall lending 50% this year to about ARS9 billion.  The bank's
loan portfolio increased 26% to ARS6.83 billion in 2005.

                        *    *    *

Moody's Investor Service assigns Caa1 ratings to Banco Rio de la
Plata's Issuer Rating and Long-Term Bank Deposits.


FEDERACION OBRERA: Individual Reports Due in Court on June 9
------------------------------------------------------------
The verified claims of creditors of Federacion Obrera Tucumana
de la Industria Azucarera aka F.O.T.I.A. will be presented in
court on June 9, 2006, Infobae reports.

Oscar Alberto Figueroa verified the claims until April 26, 2006.

A general report on the case is expected in court on Feb. 9,
2007.

A court based in San Miguel de Tucuman approved Federacion
Obrera's reorganization after the company failed to pay its
debts.

The debtor can be reached at:

         Federacion Obrera Tucumana de la Industria Azucarera     
         F.O.T.I.A.
         Congreso 402
         San Miguel de Tucuman
         Tucuman, Argentina

The trustee can be reached at:

         Oscar Alberto Figueroa
         Entre Rios 327
         San Miguel de Tucuman
         Tucuman, Argentina


GRUPO CLAVE: Sets June 14 as Deadline for Claims Verification
-------------------------------------------------------------
Court-appointed trustee Israelson-Kohan will stop verifying
claims from Grupo Clave S.A.'s creditors on June 14, 2006.  

As reported in the Troubled Company Reporter on March 27, 2006,
Grupo Clave filed a reorganization petition in a Buenos Aires
court after it defaulted on its debt payments.

The debtor can be can be reached at:

         Grupo Clave S.A.
         Hipolito Irigoyen 1544
         Buenos Aires, Argentina

The trustee can be reached at:

         Israelson - Kohan
         Lavalle 1672
         Buenos Aires, Argentina


INDELFIN S.A.: Files Reorganization Petition in Buenos Aires
------------------------------------------------------------
Indelfin S.A. has requested for reorganization approval from a
Buenos Aires Court after failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.


O. ARIAS: Court Concludes Reorganization Proceeding
---------------------------------------------------
The reorganization of O. Arias y Cia. S.A. has been concluded.
Data revealed by Infobae on its Web site indicated that the
process was concluded after a Buenos Aires court homologated the
debt agreement signed between the company and its creditors.


PLANTA REVESA: Court Closes Reorganization Process
--------------------------------------------------
The reorganization of Planta Revesa S.R.L. has been concluded.
Data revealed by Infobae on its Web site indicated that the
process was concluded after a court in Salta, Distrito Judicial
Centro, homologated the debt agreement signed between the
company and its creditors.

As reported in the Troubled Company Reporter on Jan. 18, 2005,
Planta Revesa started reorganization after Salta's Court No. 1
appointed Eduardo Antonio Moron Aransay to supervise the
proceedings as trustee.

Mr. Aransay closed the claims verification period on
Nov. 12, 2004, and submitted a general report on the case on
March 11, 2005.

Clerk No. 1 assisted the court on the case.

The debtor can be reached at:

         Planta Revesa S.R.L.
         Avenida Independencia 1190
         Salta, Argentina
  
The trustee can be reached at:

         Eduardo Antonio Moron Aransay
         General Guemes 1328
         Salta, Argentina


PRODUCTOS JAP: Reorganization Case Ends
---------------------------------------
Productos Jap S.R.L., a company based in Rosario, Santa Fe,
concluded its reorganization process, according to data released
by Infobae on its Web site.  The conclusion came after the
city's court homologated the debt plan signed between the
company and its creditors.


SAFEWAY S.A.: Trustee Presents Individual Reports on May 18
-----------------------------------------------------------
Court-appointed trustee Jose Luis Abuchdid will present the
verified claims of bankrupt company Safeway S.A.'s creditors on
May 18, 2006, Infobae reports.  Mr. Abuchdid validated the
claims until April 3, 2006.

The trustee will also submit a general report on the case on
July 3, 2006.

As reported in the Troubled Company Reporter on Dec. 16, 2005,
Safeway S.A. filed for bankruptcy after failing to pay its
liabilities.  Buenos Aires' Court No. 9 declared the company
bankrupt with the assistance of Clerk No. 17.  

The debtor can be reached at:

         Safeway S.A.
         Juan B. Justo 9250
         Buenos Aires

The trustee can be reached at:

         Jose Luis Abuchdid
         Avenida de los Incas 3624
         Buenos Aires, Argentina


TELEFONICA DE ARGENTINA: S&P Says Asset Buy Won't Affect Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Telefonica de Argentina S.A.  or TASA (B/Stable/--) would not be
affected by the recent announcement of the approval to acquire
Telefonica Data Argentina S.A., a company that provides  
telecommunication and IT solutions to the corporate sector in
Argentina.

This transaction, which is subject to regulators' approval, is
part of an organizational restructuring at the Telefonica Group
level.  The acquisition cost would amount to up to US$54
million, which is considered relatively small compared to TASA's
asset base and cash holdings and therefore would not affect  
TASA's cash generation ability or financial flexibility.


TESORO MARINO: Individual Reports Due in Court on June 14
---------------------------------------------------------
Individual reports on the validated claims of Tesoro Marino
S.A.'s creditors are expected in court on June 14, 2006, Infobae
relates.  

Creditors who failed to submit claims to court-appointed trustee
Alicia Monica Gadara are disqualified from receiving any
distribution that the company will make.  Ms. Gadara stopped
verifying the claims on May 2, 2006.  

A general report will be presented in court on Aug. 10, 2006.  
An informative assembly will follow on Dec. 7, 2006.

Tesoro Marino started reorganization after Buenos Aires' Court
No. 22 approved its petition to reorganize.  The company has
been unable to pay its debts since August 2005.

Clerk No. 43 assists the court in this proceeding.

The debtor can be reached at:

          Tesoro Marino S.A.
          Conrado Villegas 5424
          Buenos Aires, Argentina

The trustee can be reached at:

          Alicia Monica Gadara
          Pte. Roque Saenz Pena 651
          Buenos Aires, Argentina


WIRTZ & CIA: Court Concludes Reorganization Proceeding
------------------------------------------------------
The reorganization of Buenos Aires-based Wirtz & Cia. S.R.L.  
has ended.  Data revealed by Infobae on its Web site indicated
that the process was concluded after a Buenos Aires court
homologated the debt agreement signed between the company and
its creditors.




=============
B A H A M A S
=============


WINN-DIXIE: Asks to Assume Modified JEA Electrical Service Pacts
----------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates seek
permission from the U.S. Bankruptcy Court for the Middle
District of Florida to assume certain Prepetition Agreements
with Jacksonville Electric Authority, as modified.

Jacksonville Electric Authority provides Winn-Dixie Stores,
Inc., and its debtor-affiliates with electrical and water
services for their operations in Northeast Florida.  

Because of the Debtors' use of a large volume of electrical
services, JEA provides them with price discounts on these
services under a General Service Large Demand Rider Electric
Service Agreement and a Multiple Accounts Load Improvement Rider
Service Agreement, both dated as of July 28, 1998.

The Debtors realize monthly savings of US$50,000 to US$60,000
under the Prepetition Agreements, D.J. Baker, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, in New York, tells the Court.

The Prepetition Agreements include services for a store that the
Debtors have closed and contain errors on the addresses of a
number of store locations.  To correct the errors and delete the
closed store, JEA has agreed to modify each of the Prepetition
Agreements.

Mr. Baker assures the Court that the Debtors will pay an
existing default of US$583,898, under the Prepetition
Agreements.

                       JEA Responds

JEA states that it does not object to the Debtors' assumption of
the Prepetition Agreements, provided that they pay US$606,538 --
not US$583,898 -- to cure their monetary defaults.

Richard R. Thames, Esq., at Stutsman Thames & Markey, P.A., in
Jacksonville, Florida, explains that the difference between the
two figures is attributable to JEA's provision of water and
other utility services to the Debtors prepetition.

Pursuant to JEA's Charter, which can be found in the
Jacksonville City Code, all customers of JEA must remain current
on all utility bills to avoid termination of services.

Mr. Thames adds that the Debtors must pay the additional
prepetition charges due to JEA as a condition to assumption of
the Prepetition Agreements, pursuant to Section 365(b)(1) of the
Bankruptcy Code.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts.  Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 37; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




=============
B E R M U D A
=============


CONOCO IRAN: Sets May 17 as Last Day for Proofs of Claim Filing
---------------------------------------------------------------
Creditors of Conoco Iran Limited are given until May 17, 2006,
to prove their claims to Robin J. Mayor, the company's
liquidator, or be excluded from receiving any distribution or
payment that the company will make.

Creditors are required to send by May 17 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the office of the
liquidator on June 8, 2006, at 9:30 a.m. for the purposes of:

   -- receiving an account laid before them showing the manner
      in which the winding-up of the company has been conducted
      and its property disposed of and of hearing any
      explanation that may be given by the Liquidator;

   -- by resolution determining the manner in which the books,
      accounts and documents of the company and of the
      Liquidator will be disposed of; and

   -- by resolution dissolving the company.

The company began liquidating assets on April 28, 2006.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


FOSTER WHEELER: Elects Ralph Alexander as New Board Member
----------------------------------------------------------
Foster Wheeler Ltd. disclosed that, effective May 9, 2006, the
Board of Directors has elected Ralph Alexander to fill an
existing vacancy on the board.

"We are delighted to welcome Ralph to our board at this exciting
time for Foster Wheeler," said Raymond J. Milchovich, chairman,
president and chief executive officer.  "Ralph has a highly
impressive curriculum vitae, with over 25 years' in-depth
experience and proven success in four of our key markets:
upstream oil and gas, LNG, petrochemicals and oil refining, and
in all of our target geographic markets.  We are already well-
positioned to deliver a strong performance in 2006, with our
Company's significantly improved capital structure, strong
backlog, and the majority of our markets either in, or entering
an investment phase, and I believe that Ralph will add
significant value as we implement our growth strategy."

Mr. Alexander was most recently chief executive officer of BP's
olefins and derivatives subsidiary, Innovene.  While in that
role, he led the establishment of Innovene as a stand-alone
company and its subsequent successful sale in 2005 to the INEOS
Group for US$9 billion.  Prior to leading Innovene, he was CEO
of BP's Gas, Power & Renewables segment.  Mr. Alexander joined
BP in 1982 and held various assignments in the upstream,
downstream, and finance groups at BP, including:

   -- vice president, Gulf of Mexico;
   -- head of upstream mergers and acquisitions,
   -- head of group strategy/group controller,
   -- CEO of Air BP,
   -- group vice president, downstream, responsible for new
      markets development; and   
   -- group vice president, upstream.

Mr. Alexander worked at Sohio and Exxon before joining BP.

Mr. Alexander holds a bachelor's and master's degree in nuclear
engineering and a master's degree in management.  He also spent
a year at Stanford University as a Sloan Fellow.

Headquaretered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- is a global company offering, through its    
subsidiaries, a broad range of engineering, procurement,
construction, manufacturing, project development and management,
research and plant operation services.  Foster Wheeler serves
the refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemical, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries.  

At Dec. 31, 2005, Foster Wheeler's balance sheet showed a
US$341,796,000 equity deficit compared to a US$525,565 equity
deficit on Dec. 31, 2004.

                        *    *    *

On Feb. 7, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to stable from negative.  At the
same time, Standard & Poor's affirmed its 'B-' corporate credit
rating and 'CCC+' senior secured debt rating on the Clinton, New
Jersey-based engineering and construction company.  


FOSTER WHEELER: Discloses Strong First Quarter 2006 Results
-----------------------------------------------------------
Foster Wheeler Ltd. disclosed its first-quarter 2006 results for
the period ended March 31, 2006.

   -- Net earnings increased to US$14.6 million for the first
      quarter of 2006, compared with US$1.2 million in the first
      quarter of 2005.  The first-quarter 2006 net earnings
      include pre- and after-tax expenses of US$1.8 million, or
      3 cents per basic share, as a result of the Company's
      adoption of SFAS No. 123R.  

   -- Operating revenues increased by 24 percent to
      US$645.8 million, up from US$523.1 million a year ago.

   -- First-quarter 2006 EBITDA increased by 47 percent to
      US$45.9 million, up from US$31.2 million in the first
      quarter of 2005.

   -- New orders increased this quarter by 232 percent to
      US$1.53 billion, up from US$460.0 million a year ago.

   -- The Company continued to build backlog, which increased to          
      US$4.55 billion at the end of the first quarter of 2006,
      up 23 percent from US$3.69 billion at the end of the
      fourth quarter of 2005, and up 138 percent from
      US$1.91 billion a year ago.

"I am very pleased with the progress we have made since the
year-ago period in terms of earnings, EBITDA, bookings and
backlog," said Raymond J. Milchovich, chairman, president and
chief executive officer. "With the successful completion of our
debt reduction program, as announced on April 25, 2006, our
capital structure fully supports our subsidiaries' ability to
compete with anyone in their space, and win.  I believe that we
have the skills, products and the people to capitalize on the
significant opportunities offered by an extremely active
engineering and construction market and a strengthening power
market."

                     Market Outlook

The E&C market is currently as active as it has been for many
years and the outlook remains very positive.  Many of these
projects will be large and technically complex, ideally suited
to the Company's skills and expertise.  Increasing demand for
oil and gas, declining output from existing fields, and
sustained high oil and gas prices all continue to drive very
strong investment in new or expanded upstream oil and gas
facilities.  Significant investment in large-scale chemicals
facilities is continuing, particularly in the Middle East and
Asia, two regions where Foster Wheeler has a strong track
record. Investment in oil refining, another sector in which
Foster Wheeler is strong, is gathering momentum, either to add
capacity in greenfield or expanded facilities, or to upgrade
refineries to enable owners to process cheaper feedstocks or to
produce higher value-added products.

For the Global Power Group, global economic growth continues to
stimulate the demand for power.  Interest in coal as a primary
fuel choice is increasing, particularly in the U.S., as a result
of escalating and volatile oil and gas prices, and global oil
and gas supply concerns.  In the U.S. and Europe, many owners
are running their ageing solid-fuel-fired generation fleet
harder because these plants currently tend to have lower
generating costs than oil-or gas-fired plants.  Owners of these
plants are increasingly investing in plant maintenance and
optimization services and environmental equipment retrofits to
keep their facilities running reliably and in compliance with
new or more stringent plant emissions standards.

                   Business Segments

Foster Wheeler's Global E&C Group reported the following results
for the first quarter of 2006, compared with the first quarter
of 2005:

   -- Operating revenues increased by 28 percent to
      US$423.2 million, up from US$330.7 million;

   -- EBITDA more than doubled to US$55.0 million, up from
      US$26.4 million;
    
   -- New orders increased nearly three-fold to US$1.1 billion,
      up from US$282 million; and
    
   -- Backlog increased by 161 percent to US$3.4 billion,
      compared with US$1.3 billion.

"Our Global E&C Group delivered excellent performance in 2005
and has continued to build upon that success in the first
quarter of 2006," said Mr. Raymond J. Milchovich.  "During the
first half of 2005 we put plans in place to increase our E&C
capacity in a controlled and intelligent way as we secured
significant new awards.  During the last twelve months we have
cost-effectively added over 30 percent capacity to our global
network of E&C project execution centers and we intend to make
further intelligent capacity additions.  Our markets remain
extremely strong and we are expecting a very strong performance
from our Global E&C group in 2006."

Foster Wheeler's Global Power Group reported the following
results for the first quarter of 2006, compared with the first
quarter of 2005:

   -- Operating revenues increased by 16 percent to
      US$222.7 million, up from US$192.4 million;

   -- EBITDA decreased by 53 percent to US$13.8 million from
      US$29.6 million;

   -- New orders increased by 132 percent to US$414.2 million,
      up from US$178.4 million; and

   -- Backlog nearly doubled, increasing to US$1.2 billion,
      up from US$613.6 million.

"I am pleased that the markets served by our Global Power Group
have strengthened and that we have been able to deliver a
material increase in backlog since the year-ago quarter," said
Mr. Raymond J. Milchovich. "In terms of EBITDA, two factors have
impacted our Global Power Group's EBITDA performance during the
first quarter of 2006, compared with the same period last year.  
First, the majority of the decrease was attributable to a shift
in the Group's contract portfolio, in terms of product mix and
project cycle.  We received significant new contract awards
during the second half of 2005.  Typically, these awards will
earn less contract profit in their early stages and will earn
more contract profit later in their project life cycle.  As a
result, we anticipate increased levels of contract profit
potential from these contracts as we progress through the year.  
Second, a portion of the decrease resulted from a level of
under-performance from project operations in our European Power
operating unit during the quarter.  We have already implemented
significant improvements in the performance of this operating
unit and one of our top priorities going forward is to drive
further material improvements in this unit's future
performance."

            Worldwide Cash and Domestic Liquidity

As of March 31, 2006, total cash and short-term investments were
US$425.6 million, compared with US$372.7 million at the end of
the fourth quarter of 2005, and US$333.2 million at the end of
the first quarter of 2005.  Of the US$425.6 million at quarter-
end 2006, US$303 million was held by non-U.S. subsidiaries.  
Adjusting for the US$75.3 million proceeds from the exercise of
warrants, which the Company is using to reduce debt, the cash
balance at the end of the first quarter of 2006 decreased by
US$22.4 million, compared with year-end 2005.  This decrease was
due primarily to a build-up in net working capital requirements
as a result of the increasing volume of reimbursable business
and the funding by the Company of US$16.4 million of its
asbestos liabilities while active settlement negotiations with
unsettled insurers continue.

                   Earnings Per Share

Although the Company reported net earnings of US$14.6 million
for the first quarter of 2006, it also reported a basic and
diluted loss per share attributable to common shareholders of 8
cents.  A loss per share occurred because net earnings equal to
the market value of the inducement common shares issued to
warrant holders who participated in the January 2006 warrant
offers were allocated to those warrant holders prior to
calculating earnings/(loss) per share for all common
shareholders.  The priority earnings allocated to warrant
holders equal 31 cents per basic share and apply only when
calculating earnings/(loss) per share.  Excluding this
allocation, the Company would have earned 23 cents per basic
share for the first quarter of 2006. This allocation has no
impact on net earnings or shareholders' rights.

                     SFAS No. 123R

Foster Wheeler adopted the provisions of SFAS No. 123R, "Share-
Based Payment," on the first day of fiscal year 2006, using the
modified prospective transition method and, therefore, results
for prior periods have not been restated.  The Company's first-
quarter 2006 results include pre- and after-tax expenses of
US$1.8 million, or 3 cents per basic share, as a result of the
adoption of this standard.

                     Tax Provision

The Company's first-quarter 2006 consolidated tax provision was
US$16.3 million on consolidated pre-tax income of US$30.9
million.  This tax provision includes a US$7.6 million reserve
against tax benefits generated primarily by the expenses of the
Company's domestic Corporate and Financial Services group.  The
tax reserve is required pursuant to SFAS No. 109, "Accounting
for Income Taxes."  The inability to recognize fully these tax
benefits for financial reporting purposes increases the
Company's consolidated book tax provision and its consolidated
effective tax rate.  Had the tax benefits been fully recognized,
the Company's consolidated effective tax rate would have been
approximately 28 percent.  This effective tax rate of 28 percent
is in line with the effective cash tax rate which would result
from the Company's estimate of total cash tax payment
requirement in 2006.

Headquaretered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- is a global company offering, through its    
subsidiaries, a broad range of engineering, procurement,
construction, manufacturing, project development and management,
research and plant operation services.  Foster Wheeler serves
the refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemical, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries.  

At Dec. 31, 2005, Foster Wheeler's balance sheet showed a
US$341,796,000 equity deficit compared to a US$525,565 equity
deficit on Dec. 31, 2004.

                        *    *    *

On Feb. 7, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to stable from negative.  At the
same time, Standard & Poor's affirmed its 'B-' corporate credit
rating and 'CCC+' senior secured debt rating on the Clinton, New
Jersey-based engineering and construction company.  


MAN WYVREN: Last Day to File Proofs of Claim Is Today
-----------------------------------------------------
Creditors of Man Wyvren Limited are given until today,
May 12, 2006, to prove their claims to Beverly Mathias,
the company's liquidator, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send today their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Ms. Mathias.

A final general meeting will be held at the office of the
liquidator on May 31, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

   -- receiving an account laid before them showing the manner
      in which the winding-up of the company has been conducted
      and its property disposed of and of hearing any
      explanation that may be given by the Liquidator;

   -- by resolution determining the manner in which the books,
      accounts and documents of the company and of the
      Liquidator will be disposed of; and

   -- by resolution dissolving the company.

The company began liquidating assets on April 24, 2006.

The liquidator can be reached at:

        Beverly Mathias
        Argonaut Limited,
        Argonaut House, 5 Park Road
        Hamilton HM O9, Bermuda


MCEWANS LIMITED: Sets May 19 Deadline for Proofs of Claim Filing
----------------------------------------------------------------
Creditors of McEwans Limited are given until May 19, 2006, to
prove their claims to Nigel Chatterjee, the company's
liquidator, or be excluded from receiving any distribution or
payment that the company will make.

Creditors are required to send by May 19 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Mr. Chatterjee.

The company began liquidating assets on April 27, 2006.

The liquidator can be reached at:

         Nigel Chatterjee
         PricewaterhouseCoopers
         P.O. Box HM 1171
         Hamilton, HM EX, Bermuda


OLD BROAD: Creditors Must File Proofs of Claim by May 17
--------------------------------------------------------
Creditors of Old Broad Street Reinsurance Company Limited are
given until May 17, 2006, to prove their claims to Robin J.
Mayor, the company's liquidator, or be excluded from receiving
any distribution or payment that the company will make.

Creditors are required to send by May 17 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers (if any) to
Mr. Mayor.

A final general meeting will be held at the office of the
liquidator on June 8, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

   -- receiving an account laid before them showing the manner
      in which the winding-up of the company has been conducted
      and its property disposed of and of hearing any
      explanation that may be given by the Liquidator;

   -- by resolution determining the manner in which the books,
      accounts and documents of the company and of the
      Liquidator will be disposed of; and

   -- by resolution dissolving the company.

The company began liquidating assets on April 28, 2006.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


OVERSEAS LEASING: Sets May 25 for Final Shareholders Meeting
------------------------------------------------------------
Robin J. Mayor -- the liquidator of Overseas Leasing One FSC
Limited, a company undergoing wind up process -- stopped
verifying creditors' proofs of claims on May 3, 2006.

A final general meeting will be held at the office of the
liquidator on May 25, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

   -- receiving an account laid before them showing the manner
      in which the winding-up of the company has been conducted
      and its property disposed of and of hearing any
      explanation that may be given by the Liquidator;

   -- by resolution determining the manner in which the books,
      accounts and documents of the company and of the
      Liquidator will be disposed of; and

   -- by resolution dissolving the company.

The company began liquidating assets on April 13, 2006.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda




=============
B O L I V I A
=============


* BOLIVIA: Will Make Changes on Telecoms Regulations
----------------------------------------------------
The government of Bolivia plans to make a reform on the
country's regulations governing the telecommunications sector,
local daily El Diario reports.

Salvador Ric, the minister of public works and services, told El
Diario that the reform will be designed to improve rural
coverage.

El Diario relates that the government does not intend to
nationalize any of the telecommunications firms.  The minister
assured that the government only wants solidarity.

Minister Ric was quoted by Business News Americas as saying,
"We're going to negotiate with the companies and try to change
the regulations so that they do more than make profit.  They
have to understand that this is a poor country and they need to
help us with rural telephony."

BNamericas recalls that President Evo Morales stated that
Bolivia's regulatory agencies must be reformed, threatening
possible elimination.

The reform on the telecommunications regulations would seem
aimed at avoiding elimination, BNamericas says.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    B-       Jun. 17, 2004
   Long Term IDR      B-       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     B-       Dec. 14, 2005




===========
B R A Z I L
===========


BANCO DAYCOVAL: S&P Assigns B+ Rating on Proposed US$50-Mil Debt
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+/B'
counterparty credit rating to Banco Daycoval S.A.  The outlook
is stable.  At the same time, Standard & Poor's assigned a 'B+'
foreign-currency senior unsecured debt rating to the proposed
issuance of US$50 million with a three-year tenor.
      
"The ratings on Banco Daycoval incorporate the risk of a midsize
bank operating in a highly competitive and volatile banking
industry in Brazil, and the challenge to maintain its strong
profitability in the medium to long term with a credit portfolio
that is mainly concentrated in the middle market, which includes
maintaining good credit quality under an increasingly
competitive scenario," said Standard & Poor's credit analyst
Tamara Berenholc.  Like other midsize banks, Banco Daycoval is
also challenged to grow and diversify its funding base given the
natural concentration risk of its deposit base.  These risk
factors are tempered by:

   -- the bank's long track record and expertise in the
      middle-market segment;

   -- its strong asset quality indicators derived from know-how
      of its niche market;

   -- its very strong liquidity to face economic downturns
      and cover unexpected losses; and

   -- historically good profitability.
     
Banco Daycoval S.A. is a commercial midsize bank, the 21st-
largest private bank in terms of assets in Brazil with total
assets of BRL2.1 billion as of December 2005.  Despite carrying
a small market share, Banco Daycoval is a traditional bank in
the middle-market segment, in which it has been operating since
it was transformed into a bank in 1989.  Its reputation as a
bank specialized in secured lending (mostly receivables) to the
middle market has placed Daycoval among the most active banks in
this niche market.

The bank is among the top five niche banks servicing this
segment, having grown its credit portfolio at an average annual
rate of 65% in the past three years.  Standard & Poor's believes
that Banco Daycoval has the necessary know-how and agility to
sustain its position in this market.  As the tenor of its credit
portfolio is quite short, The rating agency believes that the
bank will show agility to adjust its portfolio in times of
stress, maintaining credit quality despite the vulnerability of
the middle-market segment to economic swings.
     
To continue improving its returns, proving that it can
consistently operate profitably in a low interest-rate and more
stable environment, Banco Daycoval will have to keep the quality
of the loan book under control while delivering rapid growth.
     
The stable outlook reflects our expectation that the bank will
be able to implement its growth strategy successfully within the
middle-market segment and sustain its good asset quality
indicators and profitability.  The outlook could be revised to
negative or the ratings could be lowered

   -- if there is a significant deterioration in the bank's
      asset quality ratios (vis-a-vis its current levels);

   -- if the bank's liquidity and funding are pressured; or

   -- if profitability levels are strongly affected by the
      competitive market.

Conversely, the outlook could be revised to positive or there
could be an eventual elevation of the ratings in the longer
term, depending on the bank's capacity to gain a sustainable
scale in this niche market with no detriment of its strong asset
quality indicators and profitability levels.  Such a positive
rating action would also depend on the bank growing and
diversifying further its funding base while maintaining a strong
liquidity position.


BANCO FERROVIAS: America Latina Buys Concessions for BRL1.4 Mil.
----------------------------------------------------------------
Brasil Ferrovias has awarded the concessions for its two rail
lines -- Novoeste Brasil and Nova Brasil Ferrovias -- to America
Latina Logistica aka ALL for BRL1.41 billion, an ALL
spokesperson told Business News Americas.

The rail concessions went on the auction block in March.

As a result of the transaction, the primary shareholders of
Brasil Ferrovias -- national development bank Banco Nacional
Desenvolvimento Economico e Social and pension funds Previ and
Funcef -- transferred 100% of their holdings to ALL.  The
shareholders will be acquiring 23% of the capital voting shares
of ALL.

Under the purchase accord, ALL will receive Brasil Ferrovias'
9,400 wagons and 310 locomotives, BNamericas reports.

BNamericas relates that ANTT, the national land transport agency
of Brazil, is yet to approve the sale and ALL officials expect
the agency to sanction the purchase within 30 days.

According to ALL's spokesperson, the company will restructure
and upgrade Brasil Ferrovias' concessions before it will start
operations.

BNamericas says that ALL plans to invest about BRL1 billion in
the next five years to upgrade Brasil Ferrovias' infrastructure:

  -- reconditioning the company's 1,300 cargo wagons, and
  -- purchasing 3,300 additional cars and 35 locomotive engines.

BNamericas states that immediate investments this year include:

   -- buying 50 locomotives, and
   -- a BRL300 million project to restore railroad tracks.

"With the purchase of new equipment we expect to increase Brasil
Ferrovias' transport by 30%," Bernardo Hees, the president of
ALL, told local daily Gazeta Mercantil.

With the acquisition of Novoeste Brasil and Nova Brasil
Ferrovias, ALL will run the largest rail network -- about
21,000km -- in Latin America, BNamericas relates.

Brasil Ferrovias' concessions operate in Sao Paulo, Mato Grosso,
and Mato Grosso do Sul states.   

On March 15, 2006, Sao Paulo State Judge Caio Marcelo Mendes de
Oliveira declared Brasil Ferrovias bankrupt in the wake of a
complaint from Scala for non-payment of a 5.6 million real
(US$2.6 million) debt.  Brasil Ferrovias protested the
bankruptcy decree but has failed to pay its debt to Scala.


BANCO ITAU: Units Make BRL1.71 Bil. First Quarter Net Revenues
--------------------------------------------------------------
Banco Itau Holding Financeira S.A.'s units -- insurance, private
pension and savings bonds -- saw a 25.8% boost in net revenues
in the first quarter of 2006, reaching BRL1.71 billion, Business
News Americas reports.

BNamericas relates that compared to those in the same quarter in
2005, the bank incurred these increases:

   -- 51.3% to BRL997 million in revenues from private pension
      and life products rose, and

   -- 5.67% to BRL540 million in P&C revenues

However, revenues from savings bonds unit was BRL180 million,
7.2% lesser than that of last year, BNamericas states.

According to BNamericas, earned premiums and contributions
reached BRL630 million -- a 21.0% boost compared to the first
quarter of last year -- led by the insurance unit with BRL522
million in premiums.  

Banco Itau currently has 51 thousand employees serving more than
16 million clients, through its network of 2,391 branches and 22
thousand ATMs.

                        *    *    *

As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services assigned a 'BB' currency
credit rating on Banco Itau S.A.


BANCO NACIONAL: Allocates BRL67.1M for Parana Transmission Line
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
will finance the implementation, maintenance and operation of an
electric energy transmission line, in the State of Parana.  The
financing value is BRL67.1 million, equivalent to 69.92% of the
investments, which totalize BRL96.4 million, to be carried out
by the company Uirapuru Transmissora de Energia S/A, in the
construction of the Ivaipora-Londrina II Transmission Line, with
525 kV tension and 121,5 km length. The line, which will
traverse tem municipalities of the State of Paran , will
generate 5,500 jobs in the work's peak, which will be concluded
in September of this year.

According to the Brazilian Operator of Electric System [ONS],
the project is constituted in an important link of the
interconnection among the transmission systems of the Southeast
and South regions of the country. If there had implanted more
lines such as Ivaipora-Londrina II, a greater quantity of
electric energy produced in the South of Brazil could have been
exported to the Southeast region, diminishing the energy
rationing effects occurred in 2001.

Uirapuru Transmissora de Energia S/A is a specific purpose
company  whose shareholders are the companies Eletrosul Centrais
Eletricas S/A (49%), Control y Montajes Industriales Cymi S/A
(41%) and Santa Rita Com,rcio e Engenharia Ltda (10%).  The
BNDES support to the endeavor to be carried out in the indirect
modality, in which Banco Regional de Desenvolvimento do Extremo
Sul operates as credit transfer financial agent.

Cymi is a company that makes part of Grupo ACS, currently the
major group of Spain in the civil construction area.  The Group
has approximately 100 thousand employees, with international
presence and performance in Brazil in the energy transmission
sector.  Eletrosul is a subsidiary of the Eletrobras System,
created in 1968 to operate in the electricity generation and
transmission sectors in the States of:

   -- Rio Grande do Sul,
   -- Santa Catarina,
   -- Parana and
   -- Mato Grosso do Sul.

Santa Rita is a Brazilian company, with relevant history in the
implementation of electric installation projects since 1967.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook.  The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.


BANCO PACTUAL: UBS Buy Deal Cues Fitch to Watch Credit Ratings
--------------------------------------------------------------
Fitch Ratings placed the credit ratings of Banco Pactual S.A.'s
and subsidiary Pactual Overseas Corporation's on Rating Watch
Positive following the agreement between the shareholders of
Pactual to sell the bank and its subsidiaries to UBS A.G.  The
'C/D' individual rating of Pactual was affirmed.  These ratings
were placed on RWP:

   Banco Pactual S.A.:

      -- Foreign and local currency issuer default rating 'BB-';
-- Short-term foreign and local currency ratings 'B';
      -- National long-term rating 'A+(bra)';
-- National short-term rating 'F1(bra)'; and
      -- Support rating '5'.

   Pactual Overseas Corporation:

-- Foreign and local currency IDR 'BB-';
      -- Short-term foreign and local currency rating 'B'; and
      -- Support rating '4'.

The RWP reflects the high potential support for both Pactual and
POC from the new strong shareholder UBS in case of need.  The
integration of Pactual into UBS will enable the former to
leverage its excellent business generation capacity and take
advantage of the superior international distribution and
goodwill associated with the UBS name. With a successful closing
of the proposed transaction, estimated to take place in the
third quarter of this year, Pactual's and POC's ratings will
probably be upgraded to a level equal to that of the highest
ratings currently assigned to banks established in the Brazilian
market.

In Fitch's opinion, the agreement is consistent with UBS's
worldwide strategy to strengthen its presence in emerging
markets in fixed income and equities.  This acquisition will
enable UBS to assume leadership in providing financial and
investment bank services in Brazil.  Among the main challenges
of this acquisition will be the integration of Pactual's ongoing
operations into UBS's well-established global risk and
management models without sacrificing Pactual's ability to react
quickly and profitably to market developments in the often-
volatile markets in Brazil.

UBS, headquartered in Switzerland, is among the largest banking
conglomerates in the world, with an excellent franchise in its
activities of administering funds and managing third-party
resources.  At December 2005, UBS reported total assets of
US$1,566 billion, equity of US$39.5 billion and a net income of
US$11.2 million.  UBS entered the Brazilian market in 1998
through the purchase of Banco Omega S.A., changing the name at
the time to Banco Warburg Dillon Read S.A. It currently operates
under the name of Banco UBS (Brasil) S.A.

Pactual is the largest independent manager of third-party
resources in Brazil.  Founded as a stock brokerage firm in 1983,
it operates as an investment bank, ranking among the 10 largest
in operations on the Commodities and Futures Exchange and the
Sao Paulo Stock Exchange.

Fitch will continue to monitor the Pactual acquisition process
and the impact of its new shareholder and executive structure on
its credit profile.


BANCO PACTUAL: Proposed Buy Cues Moody's to Affirm UBS' Ratings
---------------------------------------------------------------
Moody's Investors Service affirmed the Aa2/P-1/B+ ratings of UBS
AG following the announcement by the company that it that it
will acquire the Brazilian financial services firm, Banco
Pactual S.A. for an upfront payment of USD1 billion and a
further payment of up to USD1.6 billion in five years, subject
to regulatory approvals and further subject to certain
performance conditions applicable for the consideration.

In affirming UBS A.G.'s Aa2/P-1 deposit ratings and B+ financial
strength rating, Moody's said that it took account of the bank's
good track record in managing a series of relatively modest
acquisitions in recent years. Moody's observed that while the
proposed acquisition is the largest to be undertaken by UBS
since the acquisition of PaineWebber in 2000, it is not of a
magnitude which could lead to strains on the consolidated
balance sheet of UBS A.G. or imply significant execution risks.
The rating agency added that even with a conservative
calculation for goodwill which incorporates the potential
performance related payments fully at the outset, the reduction
in UBS' capitalization would likely be modest, with the tier I
capital adequacy ratio indicated to be only slightly lower at
11.8%, from 12.9% most recently. Overall, UBS remains a very
well capitalized bank in Moody's opinion. Execution risks, in
Moody's view, appear to be limited with Pactual bringing a
relatively small number of persons in teams focused on client
groups and products that are largely complementary to those
found in UBS' existing franchise businesses.

UBS A.G. is headquartered in Zurich.  At March 31, 2006, it had
total assets of CHF2174 billion (USD1666 billion), shareholders'
equity of CHF47.9 billion (USD36.7 billion) and 70,210 full-time
equivalent employees in its financial businesses.

Banco Pactual S.A. is headquartered in Rio de Janiero, Brazil.
At December 31, 2005, it had total assets of BRL20.8 billion
(CHF11.7 billion, USD 8.9 billion), shareholders' equity of
BRL625 million (CHF353 million, USD268 million), 343 employees
and 28 partners. On 13 June 2005, Moody's had withdrawn its
ratings on Banco Pactual S.A. (at the time B2/NP foreign
currency deposits, D- bank financial strength rating) for
business reasons, citing that the bank had no rated foreign
currency debt outstanding


COMPANHIA SIDERURGICA: Posts BRL340M First Quarter Net Income
-------------------------------------------------------------
Companhia Siderurgica Nacional aka CSN reported its results for
the first quarter of 2006, disclosing that its net income
reached BRL340 million.  Despite the accident in Blast Furnace
No. 3, net income remained flat compared to the previous
quarter.

Accumulated net revenue was BRL2.0 billion, lower than the
revenue reported in the quarter before and in the first three
months of 2005, due to the drop in sales volume.

EBITDA was BRL948 million, already accounting for 30-days
deductible in insurance for profit loss, in line with the
previous quarter.  Discounting the provision for profit loss,
margin would be 40%, still one of the highest of the sector.

EBITDA margin for CSN has been over 40% since third quarter of
2002.

Average prices were 7% higher than the prior quarter, even with
7% appreciation of Real against dollar.  The 13% increase in
export prices during the quarter reflected the upward trend in
the international markets.
  
Lower sales volume as a consequence of loss in the output levels
due to the accident in Blast Furnace No. 3.
  
Coated products accounted for 58% of the total sales in the
quarter.
  
The company's increased its share of the distribution -- 23% to
28% -- and home appliance markets, from 30% to 33.
  
Gross debt remained flat over the previous quarter -- BRL8,790
million.
  
Net financial expenses dropped by 74%, due to gains from
treasury transactions.
  
Dividend payments totaled BRL937 million in February.

The pace of the upturn in international steel prices that began
in 2005 continued throughout the first quarter of 2006.  

In the North American and European markets, the increase in
apparent consumption due to the replenishing of inventories,
combined with the slowdown in supply growth, which dashed
expectations of higher imports, were the key drivers in the
price increases.  

In the Chinese market, the upward price trajectory had been in
place since the end of 2005, due to the reduction in output
rates by the local steel mills and increased exports of Chinese
steel products.

In Brazil, first-quarter demand for flat steel decreased by
13.3% year-on-year, mainly due to the respective 27.5% and 17.6%
drops in the construction and home appliance sectors.  The tin
plate and distribution sectors also fell by 21.9% and 15.6%,
respectively, when compared to the first quarter of the previous
year.

Running counter to the market as a whole, the auto sector
performed well in the first three months.  According to Anfavea
-- the automakers' association -- vehicle sales in the quarter
totaled 418,000, 12.4% up year-on-year.

As a result of the Jan. 22, accident occurred in Blast Furnace
No. 3, responsible for 70% of the company's pig iron production
capacity, the volume of crude steel and rolled products produced
in the first quarter fell by 41% and 64% quarter-over-quarter,
respectively.

The company purchased 1,021 thousand tonnes of slabs, only
108,000 tonnes of which were delivered in the quarter, due to
the time needed for negotiation, production and shipment to
Volta Redonda.

The steel production process was adjusted to permit higher scrap
input in order to maximize output while only Blast Furnace No. 2
is operational.

Although the company reduced its inventories of finished and
semi-finished products between December and March, sales volume
was jeopardized by the accident in Blast Furnace No. 3.
The Company ratified the commitment to supplying the domestic
market, which present better margins, keeping the delivery of
finished products through the use of existing inventory and
purchases in the market, aiming at reducing the effects of the
accident in Blast Furnance No. 3 on clients.

Domestic market sales remained flat compared to the previous
quarter, but exports were reduced.  Coated products accounted
for almost 70% of foreign shipments, versus 50% for domestic
sales.  Also, coated products accounted for 58% of the total
sales.

In comparison with the fourth quarter of 2005, the company
increased its share of the distribution from 23% to 28% and its
home appliance markets from 30% to 33%.   Its slice of the
construction and auto markets fell from 47% to 36% and 15% to
13%, respectively.

Despite the 7% appreciation of Real against dollar, average
prices rose by 7% over the previous quarter, led by hot and
cold-rolled exports.  The healthy international prices were due
to strong demand by final consumers, the buildup of
distributors' inventories, and a shortfall in supply, especially
in the American market where various blast furnace repairs led
to delays in the production schedule.  

In Brazil, prices are expected to go up in the second and third
quarters thanks to prospects of an improved economic climate,
with lower interest rates and incentives for the construction
and agricultural sectors, among other factors.  The company has
already announced a 5% average price hike as of June.

Although the average price was higher this quarter, this was not
enough to offset the slide in sales volume, which was
particularly sharp in the export market.

The decline in output caused by the stoppage of Blast Furnace
No. 3 led to an across-the-board cost reduction, generating
quarter-over-quarter and year-on-year savings of BRL294 million
(-60%) and BRL242 million (-54%), respectively.

On the other hand, unit production costs moved up 63% and 47% in
the same comparative basis.

In year-on-year terms, the biggest reductions came from:

   -- coke, BRL168 million,
   -- coal, BRL61 million,
   -- energy/fuel, BRL18 million, and
   -- general manufacturing costs BRL12 million.

The downturn was partially offset by the increase in costs from
slab purchases BRL78 million.

In comparison with the fourth quarter 2005, the corresponding
savings stood at BRL62 million, BRL83 million, BRL28 million and
BRL80 million.

As for the main raw materials, the coal acquisition cost
increased from US$134/t, in the final quarter of 2005, to
US$138/t, reflecting a more up-market coal mix.  

The coke price, on the other hand, plunged from US$327/t to
US$277/t as a result of the consumption of materials with lower
average costs, given the big reduction in coke inventories
purchased when price were exceptionally high.  The average March
2006 cost of the coal and coke inventories was US$120/t and
US$240/t, respectively.

The reduction in export volume led to BRL45 million (29%) in the
sales expenses.  General and administrative expenses and
depreciation and amortization remained in line.

The company provisioned BRL176.6 million under other operating
income for loss of profit in the first quarter.

This provision generates a PIS/Confins charge of BRL16.3
million, accounted in the net financial results line.

As a result, operating expenses fell by BRL230 million over the
quarter before.

The company reported an EBITDA of BRL948 million in the quarter,
reflecting impact of the accident in Blast Furnace No. 3 in the
sales volume.  It is worth to highlight that this result was
reached even with the 30-days deductible in insurance for profit
loss, like losses related to the accident in the 30-day period
after the initial insurance claim are not covered and thus
directly impact the EBITDA.

Additionally, if the company ignores these provisions for profit
loss, which value is BRL160.3 million, EBITDA records a 40%
margin, still one of the highest in the sector, reiterating once
more the competitiveness of the company.

The net financial result was negative by BRL107 million, a 74%
decrease when compared to the previous quarter, which recorded
an BRL404 million expense.  The considerable improvement was
mainly due to gains from treasury transactions.

Net debt increased by BRL310 million, due to the BRL937 million
dividend pay-out in February 2006, in turn raising the net debt/
EBITDA ratio from 1x to 1.2x.  However, gross debt remained
virtually flat.

The debt had an average cost of 8.6% p.a., in Brazilian Reais,
or 53% of the CDI, while the average tenor was 13 years.

Income taxes recorded a quarterly expense of BRL220 million,
versus BRL4 million revenue in the previous three months.

The variation was essentially due to a lower pre-tax result and
a positive exchange variation on foreign investments in the
fourth quarter 2005.

First-quarter net income dipped 3% quarter-over-quarter due to
the fall in gross profit, in turn caused by the accident in
Blast Furnace No. 3 and the provision for income tax and social
contribution expenses, neither of which occurred in the previous
quarter.

Quarterly investments totaled BRL248 million, including:

   -- BRL53 million in the Sepetiba Port expansion project, in
      turn part of the Casa de Pedra expansion project,

   -- BRL31 million in MRS,

   -- BRL12 million in CFN, and

   -- BRL69 million in industrial maintenance.

Working capital expenditure in the quarter fell by BRL146
million, chiefly due to the reduction in accounts receivable
from the export market, caused by lower export volume, and the
increase in the tax payable account.

However, both of these positive effects were largely offset by
the decrease in the suppliers line, due to reduced raw material
needs.

CSN's shares appreciated by 43% in the first three months of the
year, reflecting the positive international scenario and the
consolidation of the global steel sector.

The company's healthy results in the fourth quarter of 2005 and
expectations of healthy performance on the domestic and export
markets in 2006, combined with the on-schedule investment
projects, also played an important role in the share's
appreciation.

Following the slowdown in apparent domestic consumption in 2005
and the beginning of 2006, the market looks set to recover,
fueled by expectations of more robust economic growth in Brazil.  

The IISI -- International Iron & Steel Institute -- believes
apparent Brazilian consumption of finished steel products will
move up by 9.5% this year.  The company expects 7% growth in
domestic demand for flat steel, based on an economic scenario,
which includes falling interest rates and increased government
spending on public work, in addition to our own internal
studies.

On the international front, beginning-of-year forecasts
indicated that prices would only start coming down as of the
third quarter, when supply and demand would reach equilibrium
point.  However, some companies, especially in Europe, have
expressed the off-the-record view that prices could even go up
further in the third quarter, calling into question all the
estimates of a slight decrease in the inclination of the price
curve.

CSN is one of the lowest-cost steel producers in the world,
which is a result of its access to proprietary, high-quality
iron ore (at the Casa de Pedra mine); self-sufficiency in
energy; streamlined facilities; and logistics advantages.  This
is in addition to the group's strong market position in the
fairly concentrated steel industry in Brazil.

                        *    *    *

On Jan. 26, 2006, Standard and Poor's Rating Services assigned a
'BB' corporate credit rating on Brazilian flat carbon steelmaker
Companhia Siderurgica Nacional.

The 'BB' corporate credit rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position.  These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification.


PETROLEO BRASILEIRO: Starts Gas Price Negotiations with Bolivia
---------------------------------------------------------------
Petroleo Brasileiro SA or Petrobras has started natural gas
pricing talks with Bolivia.

Brazil's state-owned company has temporarily suspended further
investments in Bolivia after the nationalization of the
hydrocarbons sector on May 1.  A summit held last week among the
presidents of Argentina, Bolivia, Brazil and Venezuela failed to
successfully address the pricing issue.

As previously reported, Bolivia refused to deliver natural gas
to Petrobras if prices won't be raised.  Petrobras, on the other
hand, was also adamant about keeping the same prices.  Petrobras
asserted that being Bolivia's largest gas consumer, their
business relationship should continue like before.

Bolivia seeks a US$2 per million British Thermal Units increase,
which translates to US$300 million in income for every US$1
increase in price.

Brazil's delegation was led by Energy Minister Silas Rondeau and
Petrobras President Jose Sergio Gabrielli.  

Industry analysts said in reports that Bolivia's tough stance
could scare foreign investors away.  Companies like Petrobras,
Repsol YPF and Total SA may simply walk away, leaving Bolivia to
try to run fields they haven't managed for nearly 10 years.

Meanwhile, Petrobras called Bolivia's appointment of new
directors to foreign companies as illegal.

Petrobras argues that under Bolivian law, the government must
compensate foreign firms before taking control of their
operations.

"Petrobras will not operate in Bolivia with inefficient
personnel," according to a company official.  "We are not going
to be like a public company where every time a new government
comes in, it sticks unnecessary people in the company, inflating
payroll."

Petrobras has invested about US$1.5 billion in Bolivia since
1996.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB- by Fitch.

                        *    *    *

Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings

  April  1, 2008        $400,000,000    9%          BB-
  July   2, 2013        $750,000,000    9.125%      BB-
  Sept. 15, 2014        $650,000,000    7.75%       BB-
  Dec.  10, 2018        $750,000,000    8.375%      BB-


SADIA: S&P Says Poor First Quarter Results Won't Affect Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services said that the poor first-
quarter results announced by Sadia S.A. (BB/Stable/--) will not
immediately affect the ratings.  

Sadia's operating margins have been hit by several events,
including the spread of the avian flu in Asia and Europe and the
effect of the appreciation of the local currency on the
company's exports. In addition, Sadia's ability to export pork
products was affected by trade barriers imposed since the foot-
and-mouth outbreak in Brazil.  Despite the low EBITDA margin
(5.5%) reported during first-quarter 2006, Sadia's credit
metrics remain robust, with the company reporting a funds from
operations-to-net debt ratio of about 70%, and net debt-to-
EBITDA of 0.9x. The gradual reduction of sanitary barriers and
the expected recovery of poultry prices internationally should
support better operating results, especially from third-quarter
2006. On the other hand, the escalation of animal-disease cases
in Brazil or worldwide could affect Sadia's long-term credit
fundamentals and trigger a review of the rating.


TEXAS MARINE: Liquidator Presents Wind Up Accounts on May 25
------------------------------------------------------------
The sole shareholder of Texas Marine Limited will meet with the
company's liquidators, Christian de Berail and Carlos de
Vincenzi, for a final meeting on May 25, 2006, at:

           Avenida Portugal 818/201, Urca
           CEP 22291-050
           Rio de Janeiro, Brazil

Accounts on the company's liquidation process will be presented
during the meeting.  

As reported in the Troubled Company Reporter on May 8, 2006, the
company started liquidating assets on April 4, 2006.  The
creditors of the company were required to submit particulars of
their debts or claims for verification on May 18, 2006 to the
company's liquidators.

The liquidators can be reached at:

            Christian de Berail
            Avenida Portugal 818/201
            Urca, CEP 22291-050
            Rio de Janeiro, Brazil
            Tel: 55-21-32359327
            Fax: 55-21-32359381

               -- and --

            Carlos de Vincenzi
            Rua Itiquira No. 239
            Leblon, CEP 22450-110
            Rio de Janeiro, Brazil
            Tel: 55-21-32359318
            Fax: 55-21-32359381


VARIG: Creditors Approve Plan to Auction Routes & Assets
--------------------------------------------------------
As widely reported, creditors of Viacao Aerea Rio-Grandense or
Varig, approved on May 9, 2006, a bankruptcy reorganization plan
allowing the airline to auction its assets.  The plan offers
investors the right to buy all of the company's operations or
just the domestic part.  

The plan won acceptance after creditors, workers and court-
appointed management reached a consensus on the assets' sale,
and job and salary cuts needed to reduce the company's losses,
Bloomberg News reports.

According to Romina Nicaretta at Bloomberg, the plan grants
Varig two alternatives:

   1. Varig will be split into an operating and a service unit.  
      The operating unit, which will handle both domestic and
      international flights, will be sold for a minimum of
      $860,000,000.  Proceeds will be used to reduce the debt of
      the service unit.

   2. The airline will be split into a domestic carrier and an
      international airline.  The debt-free domestic unit would
      be put up for auction for at least $700,000,000.  The
      proceeds will be used to pay part of the international
      unit's debt.

The auction is expected to take place sometime in July.  The
overall Varig fleet to be offered includes 46 planes.  The
domestic operation would consist of 30 aircraft.   

Reuters says that financial investors can bid for the whole
operation but for the domestic part, they must bid together with
an airline.

Information about Varig and the upcoming sale will be available
to interested parties by June.

As previously reported, Banco Nacional de Desenvolvimento
Economico e Social, a national development bank run by the
Brazilian government, made known of its willingness to finance
investors who may want to buy Varig.  

Reuters says that the bank will loan nearly US$100 million to
Varig to keep its operations running until the auction.

Marcelo Gomes at Alvarez & Marsal says that more than 10 groups
of investors have shown interest in acquiring the airline's
assets.

Alvarez & Marsal, which specializes in turnarounds and
restructurings, was hired by Varig, as restructuring advisors to
work with the company's management and board as it moves forward
with the restructuring process.

Varig remains the dominant Brazilian carrier on the
international market, but it has fallen behind TAM and Gol on
the domestic market.

After the sale is completed, the Varig brand name will be
preserved for international flights.  

                        About Varig

Headquartered in Rio de Janeiro, Brazil, Varig SA is Brazil's
largest air carrier and the largest air carrier in Latin
America.

Varig's principal business is the transportation of passengers
and cargo by air on domestic routes within Brazil and on
international routes between Brazil and North and South America,
Europe and Asia.  Varig carries approximately 13 million
passengers annually and employs approximately 11,456 full-time
employees, of which approximately 133 are employed in the United
States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.  The Debtors may be the first case
under the new law, which took effect on June 9, 2005.  Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.


* BRAZIL: IDB Grants US$30 Mil. Loan for Highway Rehabilitation
---------------------------------------------------------------
The Inter-American Development Bank approved a US$30 million
loan for the second phase of a highway rehabilitation program in
the State of Sao Paulo, Brazil.

The Sao Paulo State Highway Department will be in charge of the
program which will improve freight and passenger transportation
on the state highway system, contributing to economic and social
development of the state.  Rehabilitation works in sections that
suffer from poor traffic and safety conditions will lower
operating costs, increase security for transportation of people
and products, and facilitate the population's access to social
services.

"Economic activity in the state of Sao Paulo is highly linked to
its road transport system," said IDB Team Leader Rosana Brandao.  
"It is the largest industrial center in South America and
generates one third of exports and about 34 per cent of Brazil's
gross domestic product."

"Sao Paulo has one fifth of Brazil's entire paved road network.
Its transportation system comprises ports, railways, airports
and roadways encompassing public infrastructure operated by the
three levels of government as well as private concessions,"
added Brandao.  "Other states also rely on Sao Paulo's
transportation system due to the state's importance in national
commerce and its geographical location. Freight traffic between
south, east and northeast Brazil passes through the state."

Since 2001 the IDB has been supporting improvements on 700
kilometers of highways with a rehabilitation program for a total
cost of US$240 million.  The Sao Paulo state strategy seeks to
further expand and improve the state's logistical infrastructure
by lowering transportation costs and enhancing its accessibility
and safety.  The second stage of this program will lend
continuity to works by financing the restoration of
approximately 156 kilometers of highways and treating critical
accident points.

The 20-year IDB loan has a four-year grace period and a variable
interest rate.  Local counterpart funds will total US$30
million.

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB-      Nov. 18, 2004
   Long Term IDR      BB-      Dec. 14, 2005
   Short Term IDR     B        Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB-      Dec. 14, 2005




===========================
C A Y M A N   I S L A N D S
===========================


AUTOPISTAS DEL NORDESTE: Fitch Affirms B Rating on Senior Notes
---------------------------------------------------------------
Fitch Ratings affirms the 'B' rating on the 9.39% senior secured
notes due 2026 of Autopistas del Nordeste (Cayman) Limited.  The
notes were issued to help fund the construction of the Santo
Domingo-Samana toll road in the Dominican Republic.  The rating
summarizes Fitch's opinions of the probability of default on
timely payment of interest and ultimate payment of principal by
the legal maturity date as well as the prospects for recovery in
the event of default.  Notably, Fitch's assessment of the
likelihood of default is 'B-'; however, the rating on the notes
also acknowledges the recovery prospects derived from the
partial credit guarantee of the Multilateral Investment
Guarantee Agency.  The guarantee covers 51% of the face value of
any loss attributable to transfer and convertibility, civil
disturbance, and breach of contract events.

To encourage construction of the Santo Domingo-Samana toll road,
the government of the Dominican Republic entered into a long-
term concession with AdN under which the GDR is obligated to
provide funds denominated in dollars to AdN if toll revenue
falls below a specified level - the minimum revenue guarantee.  
Given the greenfield nature of the project Fitch attributes a
high probability to the likelihood of AdN's reliance on the MRG
to make debt service payments.  On May 5, 2006, Fitch upgraded
the long-term foreign currency rating of the Dominican Republic
to 'B' from 'B-' and affirmed the 'B' rating on long-term local
currency obligations.  In Fitch's view, the obligation of the
GDR to provide funds under the MRG, while denominated in U.S.
dollars, is a contingent obligation and is on parity with
payments required to be made to local contractors for services
rather than on parity with long-term foreign currency
obligations to international creditors.  Given the MRG's
position in the hierarchy of the GDR's obligations, the credit
quality of the MRG is unaffected by the upgrade.

The project consists of a 106-kilometer toll road connecting the
Las Americas highway from Santo Domingo to the Rincon de
Molinillos junction in Samana.  The road is to be developed
under a 33-year concession awarded by the GDR to a consortium of
construction companies.


DOUBLE SUCCESS: Sets May 18 as Last Day to File Proofs of Claim
---------------------------------------------------------------
Creditors of Double Success Company Limited are required to
prove their claims to Buchanan Limited, the company's  
liquidator, by May 18, 2006, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send by May 18 their full names,  
addresses, descriptions, the full particulars of their debts or  
claims, and the names and addresses of their lawyers, if any, to  
the liquidators.

The company started liquidating assets on April 7, 2006.

The liquidator can be reached at:

        Buchanan Limited
        Attention: Francine Jennings
        P.O. Box 170, George Town,
        Grand Cayman , Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


FINANCE HIGH: Liquidator Presents Liquidation Progress on May 19
----------------------------------------------------------------
Alain Audrey, the liquidator of Finance High Yield Limited, will
present accounts on the company's liquidation process during a
shareholders' final meeting on May 19, 2006, at:

           UMS, 22 rue de Villereuse
           1207 Geneva, Switzerland

As reported in the Troubled Company reporter on May 10, 2006,
the company started liquidating assets on March 29, 2006.  
Creditors of the company were required to submit particulars of
their debts or claim on May 19, 2006, to Mr. Audrey.

The liquidator can be reached at:

         Alain Audrey
         P.O. Box 309, George Town
         Grand Cayman, Cayman Islands


GDANSK LEASING: Final Shareholders Meeting Set for May 19
---------------------------------------------------------
Shareholders of Gdansk Leasing, Inc., will gather for a final
meeting on May 19, 2006, at:

            Polskie Linie Lotnicze
            LOT S.A., ul. 17 Stycznia 39,
            00-906, Warsaw
            
Accounts on the company's liquidation process will be presented
during the meeting.

As reported in the Troubled Company Reporter on May 9, 2006,
Gdansk Leasing started liquidating assets on March 28, 2006.  
Creditors of the company were required to submit particulars of
their debts or claims on or before May 19, 2006, to Piotr
Ikanowicz, the company's liquidator.

The liquidator can be reached at:

            Piotr Ikanowicz
            c/o Maples and Calder, Attorneys-at-Law
            P.O. Box 309, Ugland House
            South Church Street, George Town
            Grand Cayman, Cayman Islands


GLORYLAND HOLDINGS: Proofs of Claim Filing Ends on May 18
---------------------------------------------------------
Creditors of Gloryland Holdings Limited, which is being
voluntarily wound up, are required to present proofs of  
claim on or before May 18, 2006, to Buchanan Limited, the  
company's liquidator.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The company started liquidating assets on April 7, 2006.

The liquidator can be reached at:

           Buchanan Limited
           Attention: Francine Jennings
           P.O. Box George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-0355
           Fax: (345) 949-0360


LIBERTY CORNER (MASTER): Final General Meeting Set for May 19
-------------------------------------------------------------
Shareholders of Liberty Corner Patriot Master Fund, Ltd., will
gather for a final meeting on May 18, 2006, at 10:00 a.m. at:

            3rd Floor, Queensgate House
            113 South Church Street
            Grand Cayman, Cayman Islands
            
Accounts on the company's liquidation process will be presented
during the meeting.

As reported in the Troubled Company Reporter on May 8, 2006,
creditors of Liberty Corner (Master) were required to submit
particulars of their debts or claims on or before May 19, 2006,
to Miriam Yoshida, the company's liquidator.

The liquidator can be reached at:

           Miriam Yoshida
           Liberty Corner Capital Strategies, LLC
           Attention: Glenn Kennedy
           P.O. Box 1234, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-9876
           Fax: (345) 949-1987


LIBERTY CORNER (OFFSHORE): Holds Last General Meeting on May 19
---------------------------------------------------------------
Shareholders of Liberty Corner Patriot Offshore Fund, Ltd., will
gather on May 19, 2006, for a final general meeting at 10:00
a.m. at the offices of:

           3rd Floor, Queensgate House
           113 South Church Street
           Grand Cayman, Cayman Islands

Accounts on the company's liquidation process will be presented
during the meeting.  The shareholders will also authorize the
liquidators to retain the records of the company for a period of
six years, starting from the dissolution of the company.
Destruction of the records may then be allowed after such
period.

Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead.  A proxy
need not be a member or a creditor.

As reported in the Troubled Company Reporter on May 9, 2006, the
creditors of Liberty Corner Patriot (Offshore) were required to
submit particulars of their debts or claims on May 19, 2006, for
verification to Miriam Yoshida, the company's appointed
liquidator.

The liquidator can be reached at:

             Miriam Yoshida
             Attention: Glenn Kennedy
             P.O. Box 1234, George Town
             Grand Cayman, Cayman Islands
             Tel: (345) 949-9876
             Fax: (345) 949-1987


MAINSTAY HOLDINGS: Proofs of Claim Must be Filed by May 18
----------------------------------------------------------
Creditors of Mainstay Holdings Limited, which is being
voluntarily wound up, are required to present proofs of  
claim on or before May 18, 2006, to Buchanan Limited, the  
company's liquidator.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The company started liquidating assets on April 7, 2006.

The liquidators can be reached at:

           Buchanan Limited
           Attention: Francine Jennings
           P.O. Box 1170, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-0355
           Fax: (345) 949-0360


MEGASHIELD HOLDINGS: Proofs of Claim Filing Ends on May 18
----------------------------------------------------------
Creditors of Megashield Holdings Limited are required to prove  
their claims to Buchanan Limited, the company's  
liquidators, on or before May 18, 2006, or be excluded from  
receiving any distribution or payment that the company will  
make.

Creditors are required to send by May 18 their full names,  
addresses, descriptions, the full particulars of their debts or  
claims, and the names and addresses of their lawyers, if any, to  
the liquidators.

The liquidator can be reached at:

        Buchanan Limited
        Attention: Francine Jennings
        P.O. Box 1170, George Town
        Grand Cayman, Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


YANKEE CHARLIE: Filing of Proofs of Claim Ends on May 18
--------------------------------------------------------
Creditors of Yankee Charlie Aviation Limited are required to
prove their claims to Terry W. Carson and Roy Welsby of Grant
Thornton, the company's liquidators, on or before May 18, 2006,
or be excluded from receiving any distribution or payment that
the company will make.

Creditors are required to send by May 18, their full names,  
addresses, descriptions, the full particulars of their debts or  
claims, and the names and addresses of their lawyers, if any, to  
the liquidators.

The company started liquidating assets on March 28, 2006.

The liquidator can be reached at:

        Terry W.Carson
        Roy Welsby
        P.O. Box 1044 George Town
        Grand Cayman, Cayman Islands       
        Telephone: (345) 949-8588
        Facsimile: (345) 949-7325




===============
C O L O M B I A
===============


* COLOMBIA: Wants to Work with Venezuela Despite US FTA Tension
---------------------------------------------------------------
Colombia's President Alvaro Uribe disclosed that his government
calls on Venezuela to work together to address the grievances of
the poor of the two countries, according to Inside Costa Rica.

Inside Costa Rica states that the two countries are experiencing
a diplomatic tension after Colombia entered a free trade pact
with the United States.  As a result, President Hugo Chavez
decided to withdraw Venezuela from regional trade bloc Andean
Community of Nations, claiming that the free trade pact has
killed the organization.

"We are working for the poor of both nations, to built projects
which benefit both of us.  Managing a common agenda for the good
of the frontier regions is Colombia's only interest with
Venezuela (on the issue)," President Uribe was quoted by Inside
Costa saying.

The Colombian president said that his government sold Monomeros
-- a fertilizer factory based in Barrangquilla, Atlantico -- to
Venezuela as a gesture of goodwill, Inside Costa Rica relates.

President Uribe also reminded Venezuela of a planned gas
pipeline that will be built starting July 1, which will link
Colombia's Guajira to Venezuela's Maracaibo, Inside Costa Rica
reports.

                        *    *    *

On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.




=======
C U B A
=======


* CUBA: Foreign Firms Interested in Exploring Nation for Crude
--------------------------------------------------------------
Diplomatic sources told the Press Trust of India on Wednesday
that India's ONGC Videsh and Norway's Norsk Hydro have joined
Spain's Repsol in a bid to find crude oil in Cuban waters.

According to the Press Trust, the deal between ONGC and Norsk
will be signed in Havana, Cuba, on May 23, 2006.  

A European diplomat was quoted by the British media saying,
"Those companies are joining the existing one with Repsol to
share risks."

The Press Trust states that the Cuban government has been
auctioning off 59 prospecting areas since 1999.  Repsol has
rights to six of those areas.  

The Press Trust recalls that Repsol conducted its first drilling
in 2004.  When oil was found, however, Repsol said the quality
of the crude was not commercial grade.

Other sources told the Press Trust that since then, Repsol has
been looking for partners to share the investment burden.

ONGC and Norsk each will be handling 30% of the expenses, the
sources informed the Press Trust.

According to US media, China was also interested in exploring
Cuba for oil.  Cuba, however, has not announced a Chinese deal.

China was Cuba's second-largest trading partner in 2005.

                        *    *    *

Moody's assigned these ratings on Cuba:

      -- CC LT Foreign Bank Depst, Caa2
      -- CC LT Foreign Curr Debt, Caa1
      -- CC ST Foreign Bank Depst, NP
      -- CC ST Foreign Curr Debt, NP
      -- Issuer Rating, Caa1




===================================
D O M I N I C A N   R E P U B L I C
===================================


* DOMINICAN REPUBLIC: IMF Completes Review on Stand-By Agreement
----------------------------------------------------------------
The Executive Board of the International Monetary Fund has
completed the third and fourth reviews of a 28-month SDR437.8
million (about US$648.2 million) Stand-By Arrangement with the
Dominican Republic, which had been initially approved on
Jan. 31, 2005.

As part of its reviews, the Board granted the Dominican
Republic's request for seven waivers related to incomplete
fulfillment of structural performance criteria.

The Executive Board also completed a review of the country's
financing assurances1.

Completion of the reviews enables up to the equivalent of
SDR96.3 million (about US$142.6 million) to be immediately
available to the Dominican Republic.

Following the Board's discussion of the Dominican Republic on
May 8,  2006, Mr.  Agustin Carstens, Deputy Managing Director
and Acting Chair, made the following statement:

"The Dominican Republic's economic program, supported by a
stand-by arrangement, has led to a remarkable improvement in
economic conditions.  The authorities continue to implement
appropriate macroeconomic policies, which have resulted in
strong growth, single-digit inflation, a lower public debt
ratio, and a rise in international reserves.  The consolidation
of the fiscal position during 2005 was notable, as the combined
public sector deficit was reduced sharply, and a prudent
monetary policy restored financial stability under a flexible
exchange rate regime.  Looking ahead, strengthening medium-term
growth prospects and reducing vulnerabilities will require
continued vigilance in program implementation.

"The 2006 budget provides a good basis for further reducing
public debt to more comfortable levels.  Adhering to the budget
target will be an important challenge, particularly in light of
the recent increase in oil prices and their effect on the
electricity sector, but the authorities are committed to adopt
adjustment measures if necessary.  To ensure the continued
adjustment effort in 2007, the authorities will need to give
early consideration to additional revenue measures that would
address the shortfall stemming from the recent tax reform and
the expected implementation of the Dominican Republic-Central
American Free Trade Agreement or DR-CAFTA with the United
States.

"Action is needed to contain the deficit of the electricity
sector, including by raising the cash recovery indices of
electricity distributors.  Allowing electricity prices to adjust
in response to changes in costs, while improving services, will
contribute to reducing government transfers, establish a sound
commercial basis for the operation of the sector, and spur
greatly needed capital investments.

"The central bank intends to continue to enhance monetary policy
management and the communication of policy to the public in
order to anchor inflationary expectations, consolidate market
confidence, and contribute to a reduction of real interest rates
over the medium term. Plans to strengthen the central bank, both
institutionally and financially, should further improve its
ability to conduct monetary policy. A comprehensive strategy to
recapitalize the central bank is being developed, aimed at a
gradual reduction in the bank's quasi-fiscal deficit.

"Timely implementation of structural reforms covering a wide
range of governance and transparency issues in the fiscal and
banking sectors will be critical in the period ahead.  Criminal
proceedings against former owners of those banks involved in the
2003 banking crisis should send a strong signal regarding the
consequences of misconduct, and it will be important to ensure
the proceedings are sufficiently comprehensive to include all
concerned officials.  The enactment of legislation to overhaul
financial management procedures and centralize fiscal functions
will be key to improving the planning and execution of fiscal
policy.  The new banking regulatory framework will require
enhancing bank supervision practices further, including through
effective consolidated supervision to ensure broad oversight of
the sector.  These steps to strengthen the legal and supervisory
framework need to be accompanied by a program of capacity-
building and human resource development," Mr. Carstens said.

                        *    *    *

The Troubled Company Reporter - Latin America reported on May 9,
2006, that Fitch Ratings upgraded these debt and issuer Default
Ratings of the Dominican Republic:

   -- Long-term foreign currency Issuer Default Rating
      to B from B-;

   -- Country ceiling upgraded to B+ from B-;

   -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;

   -- Foreign currency Brady bonds due 2009 to B/RR4
      from B-/RR4;

   -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;

   -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;

   -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and

   -- Foreign currency collateralized Brady bonds due 2024
      to B+/RR3 from B/RR3.

Fitch also affirmed these ratings:

   -- Long-term local currency Issuer Default Rating: B; and

   -- Short-term Issuer Default Rating: B.

Additionally, Fitch assigned a debt and Recovery Rating to this
issue:

   -- Foreign currency bonds due 2027: B/RR4.

Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.




=================
G U A T E M A L A
=================


* GUATEMALA: IDB Approves US$50-Mil Loan for Investment Programs
----------------------------------------------------------------
A US$50 million loan from the Inter-American Development Bank
will support a social investment program to expand poor people's
access to education and health services and improve basic
infrastructure in rural areas of Guatemala.

The program, which will be carried out by Guatemala's Social
Investment Fund, will promote the participation of municipal
governments in the investments as well as provide training to
rural communities in managing and executing social and
productive projects.

The program will finance projects prioritized by the communities
in a process of participatory planning designed based on the
experience of a program supported by Germany's KfW aid agency.  
Among the eligible activities are:

   -- health units,
   -- schools,
   -- drinking water systems,
   -- latrines and
   -- storm drains.

Support will be given to productive projects involving labor
training, rural roads rehabilitation, small-scale irrigation and
electricity systems as well as environmental protection
activities such as reforestation and eliminating garbage dumps.

Around 60 municipal governments and 350 rural communities will
receive training and technical assistance in participatory
planning, investment programming and project execution and
maintenance.  Communities will also have access to training on
project management and social audits.

The program will support the institutional strengthening of the
FIS to improve its investment targeting, project management,
information systems, decentralization and monitoring and
evaluation capabilities.

Part of the loan resources may be used to cover expenditures
related to the rehabilitation of infrastructure damaged by
tropical storm Stan in 2005.

The program will complement other Guatemalan efforts to fight
rural poverty, such as its Rural Economic Development Program.  
The IDB recently approved a US$30 million loan to boost the
productivity of rural supply chains in areas with high levels of
poverty and a predominantly indigenous population.

The new loan is for 25 years, with a four-year grace period and
a variable interest rate.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        $150,000,000     8.5%         BB+
Nov. 8, 2011        $325,000,000    10.25%        BB+
Aug. 1, 2013        $300,000,000     9.25%        BB+
Oct. 6, 2034        $330,000,000     8.125%       BB+




=============
J A M A I C A
=============


KAISER ALUMINUM: Appoints Joseph Bellino as Executive VP and CFO
----------------------------------------------------------------
Kaiser Aluminum & Chemical Corporation and its parent, Kaiser
Aluminum Corporation disclosed the appointment of Joseph P.
Bellino as Executive Vice President and Chief Financial Officer
effective May 15, 2006.

KACC and Mr. Bellino have entered into an employment agreement
dated May 8, 2006.  Under the terms of the Employment Agreement,
Mr. Bellino will receive an initial base salary of US$350,000,
and have an annual short term incentive target equal to 50% of
his base salary.  The short term incentive is:

(i) payable in cash,
(ii) subject to the Company meeting the applicable
         underlying performance thresholds and
   (iii) subject to an annual cap of three times the target.

For 2006, Mr. Bellino's short term incentive award will not be
prorated.  The Employment Agreement also provides that Mr.
Bellino will receive an initial long term incentive grant of
15,000 restricted shares of the Company's new common stock at
emergence and, starting in 2007, annual equity awards (such as
restricted stock, stock options and performance shares) with an
economic value of US$450,000.  The terms of all equity grants
will be similar to the terms of equity grants made to other
senior executives at the time they are made.

Mr. Bellino is also entitled to severance and change in control
benefits under the terms of the Employment Agreement.  In the
event Mr. Bellino's employment is terminated without cause or
terminated by him with good reason, he will be entitled to
receive a lump sum payment of two times his base salary plus the
continuation of benefits for two years.  In the event Mr.
Bellino's employment is terminated without cause or terminated
by him with good reason within two years following a change in
control, Mr. Bellino will be entitled to receive a lump sum
payment of three times the sum of his base salary and short term
incentive target, plus the continuation of benefits for three
years.  In addition, Mr. Bellino's equity awards outstanding at
that time will immediately vest.  He will also participate in
the various retirement and benefit plans for salaried employees
and be reimbursed for the cost of relocation and certain
temporary living expenses.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading  
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed
for chapter 11 protection on February 12, 2002 (Bankr. Del. Case
No. 02-10429), and has sold off a number of its commodity
businesses during course of its cases.  Corinne Ball, Esq., at
Jones Day, represents the Debtors in their restructuring
efforts.  On June 30, 2004, the Debtors listed US$1.619 billion
in assets and US$3.396 billion in debts.




===========
M E X I C O
===========


GRUPO MEXICO: Denies Reports on Sale of Mines
---------------------------------------------
Grupo Mexico SA de CV has denied press reports on the sale of
some of its mines, according to Business News Americas.

Rumors circulated that the company is negotiating the sale of
some of the mines it owns.

However, Juan Rebolledo, Grupo Mexico's Vice President of
international relations, told BNamericas that the company is not
interested in selling its mines nor in buying anything.

Reports also say that Grupo Mexico may be considering plans to
reduce its 75% stake in Southern Copper aka SCC to below 50% if
the price was right.   

Recent Press reports say that SCC had started negotiating with
four mining companies that included Phelps Dodge in search of a
merger.

BNamericas recalls that the plan was first discussed by SCC CFO
Eduardo Gonzalez during a conference call in April.  Mr.
Gonzalez had stressed that nothing was imminent.

Mr. Rebolledo explained to BNamericas that the company is
exploring things but does not have anything specific for
anything in particular.  According to him, the company is doing
very well, it's very solid, and it has enough grades to grow by
itself.

BNamericas states that Grupo Mexico is exploring various options
for the future.  Mr. Rebolledo said the company is participating
in the bidding for the Tintaya mine in Peru that belongs to
Anglo-Australian resource group BHP Billiton.  The resource
group hopes to conclude the sale before the end of June.

"When you see such great market situations, this is when
companies should revise projects and opportunities and that is
what has happened," Mr. Rebolledo was quoted by BNamericas
saying.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--   
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


GRUPO MEXICO: Shuts Down Operations at San Martin Zinc Mine
-----------------------------------------------------------
As a consequence of a strike since March, Grupo Mexico SA de CV
closed its San Martin zinc mine after production was halted.  

"It's impossible to even hope that this is going to be
resolved," company spokesman Juan Rebolledo said in a television
interview on TV Azteca.  "That's why we closed it."

According to Deutsche Bank analyst, Jorge Beristain, Grupo's
decision to shut down the San Martin mine signals its resistance
to labor pressure, Bloomberg News relates.

The San Martin mine processes 1.3 million tons of ore annually
and employs 700 workers.  The production represents about 5% of
Grupo Mexico's capacity in Mexico, Bloomberg says.

Asarco Inc., which is owned by Grupo Mexico, was forced to file
for Chapter 11 bankruptcy after management failed to resolve a
worker strike.

The company is also facing strikers from its La Caridad mine.

The miners commenced the strike after the Mexican government
didn't recognize Napoleon Gomez Urrutia as union leader of the
Miner and Steelworkers Union.

Mexico's Labor Ministry on Feb. 17 recognized Elias Morales as
the union's leader in place of Napoleon Gomez, citing
allegations of embezzling US$55 million.  But union members
asserted that deposing Mr. Gomez without a hearing is not legal.

Grupo Mexico backs the government's recognition of Mr. Morales
as union leader.

Grupo Mexico, which is losing daily production of about 1,100
metric tons of copper, is trying to meet customer demand by
purchasing raw concentrates, a raw material, and refining it at
plants with spare capacity.  

Price of copper increased as a result of lost production from
Grupo Mexico's San Martin and La Caridad mines.  

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--   
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


MERIDIAN AUTOMOTIVE: Milbank Appeals Judge Walrath's Decision
-------------------------------------------------------------
Milbank, Tweed, Hadley & McCloy LLP took an appeal to the United
States District Court for the District of Delaware from Judge
Walrath's order granting Stanfield Capital Partners, LLC's
motion to disqualify Milbank as counsel to the Committee of
First Lien Secured Lenders.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies   
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck
manufacturers.  Meridian operates 22 plants in the United
States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers.  The Company
and its debtor-affiliates filed for chapter 11 protection on
April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-
11176).  James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S.
Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown &
Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Debtors in their
restructuring efforts.  Eric E. Sagerman, Esq., at Winston &
Strawn LLP represents the Official Committee of Unsecured
Creditors.  The Committee also hired Ian Connor Bifferato, Esq.,
at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an
adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens.  When the Debtors
filed for protection from their creditors, they listed US$530
million in total assets and approximately US$815 million in
total liabilities.  (Meridian Bankruptcy News, Issue No. 26;
Bankruptcy Creditors' Service, Inc., 215/945-7000).




===========
P A N A M A
===========


BANCO LATINOAMERICANO: First Quarter Earnings Drop 44.7%
--------------------------------------------------------
The first quarter earning of Banco Latinoamericano de
Exportaciones, S. A., aka Bladex fell 44.7% compared to the
first quarter of 2005, the company said in a statement.

Net income grew was US$16.7 million -- US$0.44 per share.  As a
result of lower credit provision reversals on the impaired
portfolio, net income decreased US$13.6 million when compared to
the first quarter of 2005, which is US$30.2 million with
earnings per share of US$0.78.

Net interest margin was 1.62% compared to 1.66% in the first
quarter of 2005.

Operating income, which refers to net income excluding reversals
of provisions for credit losses and recovery of impairment loss
on securities, increased 4% to US$9.2 million compared to the
previous quarter.  Excluding revenues on the restructured
portfolio, Operating Income grew 7%, and 183% with respect to
the fourth quarter of 2005 and the first quarter of 2005,
respectively.
  
For the third consecutive quarter, disbursements exceeded US$2
billion, while the client base grew 8% in the quarter.
  
Operating expenses decreased 15% to US$6.3 million compared to
the previous quarter.

                    Key Financial Figures

(US$ million, except percentages     1Q05      4Q05      1Q06
and per share amounts

Net Income                         US$30.2   US$16.4   US$16.7
EPS                                US$0.78   US$0.43   US$0.44
Return on Average Equity             18.4%     10.6%     11.1%
Tier 1 Capital Ratio                 40.9%     33.7%     32.2%
Net Interest Margin                  1.66%     1.77%     1.62%
Book Value per common share        US$15.36  US$16.19 US$15.40

Earnings per share calculations are based on the average number
of shares outstanding during each period.

Jaime Rivera, Chief Executive Officer of Bladex, said, "In terms
of revenue, what drove our results was the expansion of our
client base and gains realized from our treasury function,
offset by unprecedentedly low credit spreads.  The new corporate
client activity has already allowed us to reverse the thinning
trend in spreads.  Notably, we were able to convert the lower
underlying risk perception in the market into our advantage
through gains in our securities portfolio.  In our opinion, this
supports our strategy of converting the treasury function into a
revenue center.

"In terms of expenses, the first quarter followed our pattern of
cost reductions when compared to the relatively heavy year-end
period.  The 15% seasonal reduction in expenses reported this
quarter, however, is nearly double the 8% realized in the first
quarter of 2005," Mr. Rivera said.

Headquartered in Panama City, Panama, Banco Latinoamericano de
Exportaciones, S.A. aka Bladex -- http://www.bladex.com-- is a
supranational bank originally established by the Central Banks
of Latin American and Caribbean countries to promote trade
finance in the Region. Based in Panama, its shareholders include
central banks and state- owned entities in 23 countries in the
Region, as well as Latin American and international commercial
banks, along with institutional and retail investors.  Through
December 31, 2005, Bladex had disbursed accumulated credits of
over US$135 billion.

                        *    *    *

As reported on April 7, 2006, Moody's affirmed the following
ratings for Bladex:

   -- Bank Financial Strength Rating: D-minus, change to
      positive outlook from stable;

   -- Long Term Foreign Currency Deposit Rating: Baa3, with
      stable outlook;

   -- Short Term Foreign Currency Deposit Rating: Prime-3;

   -- Foreign Currency Senior Unsecured Rating: Baa3, with
      stable outlook; and

   -- Foreign Currency Issuer Rating: Baa3, with stable outlook.




=======
P E R U
=======


SIDERPERU: Aceros Arequipa May Participate in July 14 Auction
-------------------------------------------------------------
Peru's Aceros Arequipa told the Lima stock exchange it is
considering joining Siderperu SA's auction on July 14.

"Our company is evaluating its interest in participating in the
public auction and waiting for the publication for the event's
bidding rules," Aceros said in a statement.

Business News Americas recalls that ProInversion, Peru's state
investment agency, disclosed to local newspapers on April 29
plans for the public auction of its participation in Siderperu
on July 14.  ProInversion acquired in an auction in March about
553 million ordinary shares of Siderperu, equivalent to 56.04%
of the company's capital stock, after SiderPeru defaulted on its
credit obligations.

Aceros told BNamericas that it had not yet associated with any
investment bank or financial institution for the possible
purchase of Siderperu.

Headquartered in Chimbote, Peru, Siderperu SA has steel
production capacity of 400,000 tons per year.  The company
reported a net loss of 5.99 million soles (US$1.82 million) in
2005, compared to a net profit of 28.8 million soles in 2004.

                        *    *    *

As reported on Oct. 6, 2005, Siderperu failed to meet
commitments to pay on September 30, 2005, three quarterly
payments already postponed from 2003, prompting Lima-based risk
agency Equilibrium to downgrade its rating on the steelmaker's
first corporate bond program to category D from C.

Siderperu, which has struggled to meet payments for its first
bond issues, secured creditors approval on a global refinancing
agreement in April 2002 to reprogram the payments from
2003-2012.

Since then, however, creditors have agreed to three addendums to
reprogram the commitments made in the AGR.  A payment of US$7.9
million was due on September 30, 2005.

On September 30, 2005, Siderperu made a US$1.75-million payment
that corresponded to the regular quarterly quota of the
principal amount.




=====================
P U E R T O   R I C O
=====================


ADELPHIA COMMS: Mulls Sale of 374,632 of Jones Media Shares
-----------------------------------------------------------
Adelphia Communications Corporation relates that it currently
owns 374,632 Class A shares of common stock of Jones Media
Networks, Ltd.  The Stock represents a minority interest equal
to approximately 2.7% of the outstanding capital stock of Jones,
calculated on a fully diluted basis assuming conversion of all
outstanding preferred stock that are restricted shares which are
not publicly traded.

Paul V. Shalhoub, Esq., at Willkie Farr & Gallagher, in New
York, tells the Court that ACOM has determined to sell the Stock
because:

    -- it will realize a greater financial recovery by selling
       the Stock than by retaining it;

    -- the price being offered for the Stock represents an
       attractive recovery;

    -- the Stock is not a core asset; and

    -- the Stock is not an asset being sold pursuant to the
       ACOM Debtors' asset purchase agreements with Time Warner
       NY Cable LLC and Comcast Corporation.

ACOM has determined to sell the Stock back to Jones or its
affiliates, because Jones has agreed to purchase the Stock for
US$5.155 per share.

Although no public market exists for the Stock, ACOM has
determined that the price of US$5.155 per share is a fair price.
Mr. Shalhoub notes that:

    -- Jones' other minority holders recently have sold or are
       contemplating selling their shares of the Stock at $5.155
       per share;

    -- the Stock is restricted stock and relatively illiquid,
       with no public market for the shares; and

    -- ACOM's analysis of Jones' EBITDA with respect to the
       price to be paid for the Stock reflects an attractive
       multiple.

The consideration to be paid for the stock is US$1,929,354, in
the aggregate, Mr. Shalhoub tells the Court.

ACOM assures the Court that if it receives any additional
expressions of interest or offers for the Stock that it
determines to be higher or better than Jones' offer, an auction
for the Stock may be conducted.  In the event an Auction is
held, ACOM will seek to establish bid procedures to govern the
Auction and set minimum bid increments of US$100,000.

Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable  
television company in the country.  Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.  The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.  
(Adelphia Bankruptcy News, Issue No. 131; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


ADELPHIA COMMS: W.R. Huff Wants to Conduct Rule 2004 Probe
----------------------------------------------------------
Pursuant to Rule 2004 of the Federal Rules of Bankruptcy
Procedure, W.R. Huff Asset Management Co., LLC, asks the U.S.
Bankruptcy Court for the Southern District of New York to direct
depositions of and the production of documents from:

    1. * Highfield Capital Management LP,
       * Tudor Investment Corporation,
       * Aurelius Capital Management, LP,
       * Chesapeake Partners L.P.,
       * Elliot Associates, L.P.,
       * Farallon Capital Management L.L.C.,
       * Fortress Investment Group LLC,
       * Noonday Asset Management, L.P.,
       * OZ Management L.L.C.,
       * Perry Capital, L.L.C., and
       * Satellite Asset Management, L.P.

    2. Hennigan Bennett & Dorman, including Bruce Bennett, the
       financial advisors to the Ad Hoc Committee of ACC
       Noteholders.

Eleven senior noteholders led by Highfield Capital Management
sent a letter to Adelphia Communications Corporation's Board of
Directors criticizing the Modified Fourth Amended Plan of
Reorganization:

       * Highfield Capital Management LP,
       * Tudor Investment Corporation,
       * Aurelius Capital Management, LP,
       * Chesapeake Partners L.P.,
       * Elliot Associates, L.P.,
       * Farallon Capital Management L.L.C.,
       * Fortress Investment Group LLC,
       * Noonday Asset Management, L.P.,
       * OZ Management L.L.C.,
       * Perry Capital, L.L.C., and
       * Satellite Asset Management, L.P.

Highfield, et al., collectively own US$1.64 billion face amount
of senior notes issued by Adelphia Communications Corporation,
and are members of the Ad Hoc Committee of ACC Senior Note
Holders.

The noteholders notified the Board that they will vote against
the intercreditor settlement included in the Modified Plan.
"Your idea of a settlement would have the ACC creditors gift
US$1.4 billion to Arahova and FrontierVision Holdco bondholders.  
This does not pass the straight-face test and runs afoul of the
neutrality which the Court has mandated and to which the debtors
pay lip service."

A full-text copy of the Letter obtained from the Wall Street
Journal Web site is available for free at:

           http://bankrupt.com/misc/acom_lettertoBOD.pdf

The ACC Noteholder Letter was forwarded to Peter Grant of The
Wall Street Journal and thus, certain of the statements in the
Letter were published by The Wall Street Journal in an April 19
article.

W.R. Huff believes that the dissemination of the ACC Noteholder
Letter to the Journal and any other party to the ACOM Debtors'
Chapter 11 Cases:

    -- is an attempt to manipulate the market and a clear
       violation of Section 1125(b) of the Bankruptcy Code
       prohibiting the solicitation of acceptances or rejections
       of a plan before a court-approved disclosure statement;
       and

    -- provides grounds to:

       * designate the votes of the responsible parties under
         Section 1126(e),

       * subordinate those parties' claims pursuant to Section
         510(c) of the Bankruptcy Code, and

       * impose sanctions.

Bonnie Steingart, Esq., at Fried, Frank, Harris, Shriver &
Jacobson LLP, in New York, contends that the limited information
sought by W.R. Huff is essential to its ability to:

    -- investigate the unlawful solicitation of votes before the
       Court could approve a supplemental disclosure statement,
       and

    -- determine whether the responsible parties had any other
       improper motivations.

W.R. Huff wants the 11 Senior Noteholders and Hennigan Bennett
to present the most knowledgeable person for deposition and
produce all documents relating to:

    a. the contents of the ACC Noteholder Letter;

    b. the purpose and intent underlying the creation and
       dissemination of the Letter;

    c. the identity of all recipients of the ACC Noteholder
       Letter and all its drafts, regardless of the manner or
       method in which it was received; and

    d. the parties responsible for distributing the ACC
       Noteholder Letter to The Wall Street Journal and any
       other party.

Based in Coudersport, Pa., Adelphia Communications Corporation -
- http://www.adelphia.com/-- is the fifth-largest cable  
television company in the country.  Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.  The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.  
(Adelphia Bankruptcy News, Issue No. 129; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


CLEARCOMM LP: Kevane Soto Raises Going Concern Doubt
----------------------------------------------------
Kevane Soto Pasarell Grant Thornton LLP in San Juan, Puerto
Rico, raised substantial doubt about ClearComm, L.P.'s ability
to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended
Dec. 31, 2005, 2004, and 2003.  The auditor pointed to the
Company's recurring operating losses, working capital and
partners' capital deficiciencies, and need for additional
financing.

ClearComm, L.P., filed its consolidated financial statements for
the year ended Dec. 31, 2005, with the Securities and Exchange
Commission on April 17, 2006.

The Company reported a US$23,740,056 net loss on US$88,924,261
of total revenues for the year ended Dec. 31, 2005.

At Dec. 31, 2005, the Company's balance sheet showed
US$138,481,653 in total assets and US$195,124,873 in total
liabilities, resulting in a US$56,643,220 partners' deficit.

The Company's Dec. 31 balance sheet also showed strained
liquidity with US$18,930,600 in total current assets available
to pay US$51,419,067 in total current liabilities coming due
within the next 12 months.

A full-text copy of the 2005 Annual Report is available for free
at http://ResearchArchives.com/t/s?8df

Its General Partner, SuperTel Communications Corp manages
ClearComm, L.P.  The Partnership was organized to acquire, own,
consult and operate broadband personal communication services
licenses in the Block C band and to take advantage of the
benefits that the Federal Communications Commission has set
aside for Entrepreneurs.  The Partnership is the controlling
entity of NewComm, which in turn owns and operates two 15 MHz
PCS licenses covering Puerto Rico.  On Nov. 30, 2005, the
Limited Partnership Agreement was amended to extend its
termination date to Dec. 31, 2010.


GLOBAL HOME: Gets Final Court Order for Cash Collateral Use
-----------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware gave his final order allowing Global Home
Products, LLC, and its debtor-affiliates to use cash collateral
securing repayment of their debts to Madeleine LLC.

When they filed for bankruptcy, the Debtors owed Madeleine
around US$200 million under an April 13, 2004, Financing
Agreement.  The loan was secured by a lien on substantially all
of the Debtors' assets exclusive of the 35% of the equity held
by any Debtor in any of its foreign subsidiaries.

The Debtors will use the cash collateral to meet payroll and
other operating expenses and to maintain vendor support.  

To provide Madeleine with adequate protection, the Debtors will
grant replacement liens and security interests to the extent of
any diminution in value of their collateral pursuant to Sections
361 and 363 of the Bankruptcy Code.

Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry.  The company also designs and markets photo frames,
photo albums and related home decor products.  The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on Apr.
10, 2006 (Bankr. D. Del. Case No. 06-10340).  Laura Davis Jones,
Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra
G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub LLP, represent the Debtors.  When the company filed
for protection from their creditors, they estimated assets
between US$50 million and US$100 million and debts of more than
US$100 million.


KMART CORP: Rubloff Development Moves for Summary Judgment
----------------------------------------------------------
As previously reported, Rubloff Development Group, Inc., filed
Claim Nos. 37506, 37507, 37508, 37509, 37733, 37734, 37735 and
37773 against Kmart Corporation.  Kmart asked the Court to issue
a summary judgment disallowing the Claims.

Pursuant to Rule 7056 of the Federal Rules of Bankruptcy
Procedure, Rubloff asks the Court to deny Kmart's request and
grant summary judgment in its favor instead.

Thomas J. Lester, Esq., at Hinshaw & Culbertson LLP, in
Rockford, Illinois, asserts that summary judgment allowing the
Claims in their entirety should be granted because:

    (1) the clear language of the Lease Assumption and
        Assignment Agreement executed between Kmart and Rubloff
        did not release Kmart from its obligations under eight
        subleases entered into by the parties between 1998 and
        2000; and

    (2) Rubloff was damaged in the amounts set forth in its
        Claims by Kmart's breach of contractual obligations
        under the Subleases.

Mr. Lester relates that nowhere in the Assumption and Assignment
Agreement did Rubloff waive its rights to assert claims against
Kmart as a result of its loss of the economic benefit of the
subleases' lower rent.

The terms of the Assumption and Assignment Agreement also
clearly identify:

    * "Subleases' to refer to the listed subleases; and
    * "Lease" to refer to the Master Leases.

Mr. Lester argues that by its express terms, the indemnification
language -- which allegedly bars Rubloff's Claims -- refers only
to claims that any party may assert against Kmart under the
Master Leases.  It has no effect on the Claims under the
Subleases.

Contrary to Kmart's assertion that Rubloff made a judicial
admission in the February 13, 2002 hearing, there were none
made, Mr. Lester explains.  Kmart only provided the Court in its
arguments with a portion of Rubloff's counsel's statements and
has taken the comments out of context.

Mr. Lester adds that the cases that Kmart relies on do not stand
for the proposition asserted.

By entering into the Assumption and Assignment Agreements,
Rubloff mitigated its Claims against Kmart, which would have
been significantly higher had it not assumed the Master Leases,
thereby limiting the damages Kmart would have incurred had the
Leases been rejected.

Mr. Lester stresses that, in some instances, the Bankruptcy Code
defines how the claims for the resulting breach are to be
treated and calculated.  However, it is state law that governs
when a contract breach has occurred.

For these reasons, Mr. Lester concludes that:

    * none of the language in the Assumption and Assignment
      Agreement or the Sublease Agreements bar Rubloff's Claims
      against Kmart for Kmart's breach of the Sublease
      Agreements; and

    * Kmart raises no argument that in the absence of Rubloff
      having effectively released its claim under the Assumption
      and Assignment Agreement or the Sublease Agreements,
      Rubloff's Claims should not be allowed.

Headquartered in Troy, Michigan, Kmart Corporation (n/k/a KMART
Holding Corporation) -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for $11 billion to create the third-largest U.S. retailer,
behind Wal-Mart and Target, and generate $55 billion in annual
revenues.  The waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act expired on Jan. 27, without complaint
by the Department of Justice.  (Kmart Bankruptcy News, Issue No.
109; Bankruptcy Creditors' Service, Inc., 215/945-7000)


KMART CORP: Files Revised Status Report on Avoidance Actions
------------------------------------------------------------
At the U.S. Bankruptcy Court for the Northern District of
Illinois' request, Kmart Corporation submitted a revised status
report on January 16, 2006, setting forth the remaining critical
vendor adversary proceeding defendants that joined in, or filed,
a motion to dismiss complaints that have general applicability
to all other defendants.

William J. Barrett, Esq., at Barack Ferrazzano Kirschbaum
Perlman & Nagelberg LLP, in Chicago, Illinois, relates that
based on the Court's comments at the April 11, 2006 status
hearing, discrepancies in the docket have been noted with
respect to the motions to dismiss, and updates have been made to
the report.

                   Docketing Discrepancies

Kmart indicated in the prior report that The Asian Source
Enterprise LLC and Mountaineer Publishing Co., Inc., filed
motions to dismiss, or joinders to motions to dismiss.  However,
the dockets of the adversary proceedings showed none of these
pleadings because the motions were filed in the wrong adversary
cases.

Kmart proposes that the Court direct the docketing clerk to file
a copy of each joinder in the corresponding adversary
proceeding.  Specifically:

    * The Asian Source Enterprise LLC, which intended to file a
      notice of joinder in the motion filed by Consumer
      Communications, Adv. No. 04-02055, but mistakenly filed it
      in the adversary proceeding against Action Performance,
      Adv. No. 04-00104, must be filed back in Adv. No. 04-
      02865; and

    * Mountaineer Publishing Co., Inc., which intended to file a
      notice of joinder in the motion filed by the Tribune
      Company, but mistakenly filed it in the adversary
      proceeding against Abbeville, et. al., Adv. No. 04-00085,
      must be filed back in Adv. No. 04-02379.

                          Updates

Mr. Barrett discloses that after a review of the docket of each
remaining critical vendor defendant, several updates have been
made to the report.

This includes:

    (1) the joinder filed by The Brown Publishing Company doing
        business as Hillsboro Times Gazette, Adv. No. 04-02595,
        on January 25, 2006;

    (2) the addition of  Tribune Company's previously dismissed
        motion since several remaining defendants joined in on
        that motion;

    (3) the dismissal of Great Lakes Media, Adv. No. 004-0018,
        and the deletion of NYP Holdings, Inc., doing business
        as New York Post, Adv. No. 04-02395, from the report,
        due to the settlement of both cases;

    (4) the amended joinder filed by International Ying Ming
        Ind. Co., Inc., Adv. No., 04-02758, in the motions to
        dismiss by the Chicago Sun-Times and Magic Power Co.,
        Ltd., and Magic Power Co., Ltd.;

    (5) the fourth joinder filed by El Dia, Adv. No., 04-02102,
        and Primera Hora, Adv. No. 04-02436, in the motion to
        dismiss filed by the Tribune Company.

According to Mr. Barrett, the motions to dismiss filed by eight
of the nine defendants remain pending:

    Defendant                                  Case No.
    ---------                                  --------
    Chicago Sun-Times                          04-02038
    Washington Post Company                    04-00121
    Great Lakes Media                          04-00118
    Consumer Communications Services, Inc.     04-02055
    Quad Graphics                              04-00086
    Ogden Newspaper Group                      04-00158
    Dean Foods Company                         04-00082
    Vertis, Inc.                               04-00099

A full text copy of Kmart's revised status report is available
for free at:
  
http://bankrupt.com/misc/kmart_statusreport_criticalvendors.pdf

Headquartered in Troy, Michigan, Kmart Corporation (n/k/a KMART
Holding Corporation) -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for $11 billion to create the third-largest U.S. retailer,
behind Wal-Mart and Target, and generate $55 billion in annual
revenues.  The waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act expired on Jan. 27, without complaint
by the Department of Justice.  (Kmart Bankruptcy News, Issue No.
109; Bankruptcy Creditors' Service, Inc., 215/945-7000)




=============================
T R I N I D A D & T O B A G O
=============================


MIRANT CORP: Creditors Committee Wants Fee Bonuses Denied
---------------------------------------------------------
Fredric Sosnick, Esq., at Shearman & Sterling LLP, in New York,
relates that the Official Committee of Unsecured Creditors for
Mirant Corporation, et al., received information that some
professionals may submit bonus requests.  In the case of
professionals representing certain committees other than the
Mirant Committee, those requests may have the support of their
Committees.

From the Mirant Committee's perspective, the fact that the
constituents of those Committees received a relatively modest
percentage of the new equity would render their support
unpersuasive.

Accordingly, the Mirant Committee asks the Court to deny those
requests for bonuses or fee enhancements.

Against this backdrop, Shearman & Sterling LLP, the Mirant
Committee's co-counsel, declined to submit a bonus request at
this time.

Shearman and the Mirant Committee believe that, if the Court is
inclined to grant the bonus, it should create a pool with those
bonuses and distribute them equitably among all of the similarly
situated hourly professionals in the Debtors' cases.  To do
otherwise would prejudice Shearman and other professionals, Mr.
Sosnick says.

Mirant Committee's co-counsel, Andrews Kurth LLP, and financial
advisors, Capstone Advisory Group, LLC, agree with Shearman &
Sterling.

The New Mirant Entities echo the Mirant Committee's concern.

On behalf of New Mirant, Michelle C. Campbell, Esq., at White &
Case LLP, in Miami, Florida, reminds Judge Lynn that any fee
enhancements will directly reduce Mirant's net income and would
therefore come at the expense of its shareholders.

New Mirant believes that professionals compensated on an hourly
rate in Mirant's Chapter 11 cases have been adequately
compensated by the lodestar method -- reasonable time multiplied
by the customary hourly rate.

If the Court decides to grant the bonus request of any other
hourly professional, New Mirant also asks the Court to create a
pool to distribute bonuses equitably among the professionals.  
In that event, New Mirant asks the Court for a fee enhancement
for its two professionals -- White & Case LLP and Haynes and
Boone LLP.

For these reasons, Mirant intends to oppose any requests for fee
enhancements that may be filed.

                         Responses

(a) Equity Committee and Counsel

Eric J. Taube, Esq., at Hohmann, Taube & Summers, L.L.P., in
Austin, Texas, contends that the positions of New Mirant and the
Mirant Committee are premised on the belief that their attorneys
have been adequately compensated.  Even if those premises were
valid, they do not apply to Hohmann Taube and Brown Rudnick, as
attorneys for the Official Committee of Equity Holders.

Mr. Taube points out that the Equity Committee's lawyers, in
connection with the valuation hearing, have fees lower than the
fees received by the Debtors' and the Mirant Committee's
lawyers.  The total fees of the Equity Committee's lawyers in
connection with the valuation hearing were US$6,337,813, whereas
the total fees of White & Case, Andrews Kurth and Shearman &
Sterling was US$8,187,684 -- a difference of almost
US$2,000,000.

Because of the remarkable nature of the results achieved in the
Debtors' Chapter 11 cases, and the overall benefit provided by
Hohmann Taube and the Brown Rudnick's work to all constituents,
the Court should grant their fee enhancements, Mr. Taube
asserts.

The Equity Committee believes that New Mirant's and the Mirant
Committee's "reservation[s] of rights" relating the creation of
a pool for bonuses are inappropriate.  Those reservations of
rights, according to Mr. Taube, are deemed to be applications
for a fee enhancement.

Furthermore, the Equity Committee asserts that the Debtors' and
the Mirant Committee's professionals should be precluded from
seeking a fee enhancement award because, among other reasons,
they have failed to timely submit their applications.

(b) MAGi Committee's counsel

Cadwalader, Wickersham & Taft LLP, and Cox Smith Matthews
Incorporated, lawyers for the Official Committee of Unsecured
Creditors of Mirant Americas Generation LLC, ask the Court to:

    (a) adjust the "lodestar" award that they requested in their
        final fee applications upward by US$3,000,000; and

    (b) dismiss New Mirant's and the Mirant Committee's
        Objections.

Deborah D. Williamson, Esq., at Cox Smith Matthews Incorporated,
in San Antonio, Texas, asserts that her firm and Cadwalader
should be awarded a fee enhancement because the results achieved
are exceptional and were unexpected.

Ms. Williamson contends that Cadwalader and Cox Smith provided
"rigorous," "uniquely efficient and economical" representation
that yielded extraordinary results for MAGi creditors to warrant
a fee enhancement.

                 Mirant Committee Talks Back

Mr. Sosnick argues that the Equity Committee:

     (i) provided misleading data regarding aggregate counsel
         fees incurred in connection with the valuation
         hearings; and

    (ii) mischaracterized the Mirant Committee's position on fee
         enhancement requests.

The grouping of the Debtors and the Mirant Committee is
misleading, Mr. Sosnick says.  Although the Debtors and the
Mirant Committee shared the view that Mirant is insolvent, they
presented entirely different cases to reach that conclusion.

If the general position of the parties were enough to justify
this type of grouping, it would only be appropriate for the
Equity Committee's fees to be aggregated with those of the
Phoenix Entities, which joined the Equity Committee in
advocating a much higher enterprise value, Mr. Sosnick points
out.

Moreover, although the Mirant Committee does not believe that
the "Wilson Shareholders" should be awarded any fees, they
nevertheless caused the Debtors and the Mirant Committee to
incur additional fees that are included in the Equity
Committee's calculation.

If the counsel fees of the Phoenix Entities are added to the
fees incurred by Equity Committee's lawyers, the aggregate fees
of the parties supporting the higher valuation is approximately
US$10,979,000, Mr. Sosnick calculates.  The total is
US$2,800,000 more than the counsel fees incurred by the Debtors
and the Mirant Committee, not US$2,000,000 less.

Mr. Sosnick clarifies that the Mirant Committee "generally"
opposes bonuses.  But if the Court concludes that fee
enhancements are appropriate, the Mirant Committee supports the
bonus pool concept.

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.  
(Mirant Bankruptcy News, Issue No. 94; Bankruptcy Creditors'
Service, Inc., 215/945-7000)

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant and said the outlook is stable.


MIRANT CORP: Plan Trustees Ask Court for Compensation
-----------------------------------------------------
Pursuant to Mirant Corporation and its debtor-affiliates' Plan
of Reorganization, a Plan Trust was created.  The Plan Trust has
three appointed trustees:

    -- Aurin Primack
    -- Phoenix Advisors, LLC
    -- Kurtzman Carson Consultants LLC

Joseph A. Pardo, Phoenix Advisors LLC's president, tells the
U.S. Bankruptcy Court for the Northern District of Texas that
he, and the other Plan Trustees, were vested with the duty and
authority to take all actions they deemed to be necessary or
appropriate in connection with the Plan Trust.

Mr. Pardo relates that various transactions have been, are being
or will be completed by the Plan Trustees, including:

    (a) the transfer of equity interests in the Trading Debtors
        to the Plan Trust after distribution of the assets of
        the Trading Debtors to Mirant Energy Trading, LLC; and

    (b) the issuance of equity interests in Mirant Corp. to the
        Plan Trust after the transfer of the assets of Mirant
        Corp. to MC 2005 and the cancellation of the original
        shares of Mirant Corp.

To effectuate the Plan, the Plan Trustees:

     1. created the Plan Trust as required by Article 9 of the
        Plan;

     2. reviewed and analyzed substantial documentation relating
        to the Debtors and the purpose of the Plan Trust,
        including the Plan, the Debtors' Disclosure Statement,
        the "Plan Trust Declaration" and the organizational
        documents for several of the entities which are owned,
        directly or indirectly, by the Trust;

     3. completed the transfer of certain assets by the Debtors
        to the Plan Trust pursuant to Articles 8 of the Plan,
        including the transfer to the Plan Trust of the Trust
        Subsidiaries, and administered the Plan Trust and its
        funding under the Plan pursuant to Article 9 of the
        Plan;

     4. established a bank account for the Plan Trust and
        coordinated the initial funding of the Plan Trust by MC
        2005 pursuant to Article 9.1(c) of the Plan;

     5. retained accountants for the Plan Trust;

     6. obtained a federal employer tax identification number
        for the Plan Trust from the Internal Revenue Service;

     7. analyzed the Plan Trust's assets and reviewed governing
        documents including certificates of organization,
        bylaws, partnership agreements, consents, resolutions,
        amendments, and other related documents for each of its
        approximately 41 Trust Subsidiaries;

     8. arranged for the filing of certain state franchise,
        excise and income tax returns for certain Trust
        Subsidiaries;

     9. caused certain Trust Subsidiaries to file final state
        tax returns with notification to their state taxing
        authorities that the Trust Subsidiaries will no longer
        be conducting business in that state;

    10. effectuated the conversion of Mirant Corp., into a
        Delaware limited liability company as required by the
        Plan, including the payment to the State of Delaware of
        all outstanding franchise tax, which amounted to
        approximately $33,000;

    11. arranged for certain Trust Subsidiaries organized in
        Germany, the British Virgin Islands and the U.S. Virgin
        Islands to change their names to eliminate the use of
        "Mirant" as required by the Plan, including executing
        resolutions and coordinating with local registered
        agents to effectuate the name changes;

    12. caused certain Trust Subsidiaries organized in the U.S.
        to change names, as required by the Plan, including
        executing resolutions and coordinating with local
        registered agents to effectuate the name changes and
        dissolutions;

    13. determined in which states and countries each of the
        Trust Subsidiaries is registered to do business,
        including determining the procedures applicable to each
        state and country to effectuate the canceling of those
        registrations to do business;

    14. arranged for certain Trust Subsidiaries to be dissolved
        in furtherance of maximizing the value of the Trust's
        assets;

    15. reviewed and executed a Termination of Payment
        Guarantee, dated February 6, 2006, by and among
        Consolidated Edison Inc., Mirant Energy Trading, LLC,
        and Mirant Americas Energy Marketing, L.P., relating to
        the guarantee of assets no longer held by Mirant
        Americas Energy Marketing, L.P.;

    16. established procedures to coordinate the efficient and
        effective manner of conducting business among three
        trustees in different cities, including the scheduling
        of regular meetings among the Trustees and the Trust's
        counsel to discuss Trust matters; and

    17. evaluated the background and issues involved in a
        criminal investigation the U.S. Department of Justice
        commenced shortly after the Debtors filed bankruptcy
        because the investigation involves certain Trust
        Subsidiaries, which relates to possible reporting of
        false trade data to industry publications and
        manipulation of market prices for natural gas prior to
        the filing of the Debtors' Chapter 11 cases and reviewed
        critical tolling agreements executed by certain Trust
        Subsidiaries before the creation of the Plan Trust in
        connection with the DOJ's request for an extension.

As of March 30, 2006, the Plan Trustees have not been paid for
their services, Mr. Pardo tells the Court.  The Plan Trustees
and the New Mirant Entities negotiated and agreed that the Plan
Trustees will be paid for their services covering the period
from the Effective Date and throughout 2006.

Specifically, the Plan Trustees ask the Court to direct MC 2005
to pay each of them:

    (a) US$17,000 for the period January 2006 through February
        2006; and

    (b) US$3,300 for each calendar month beginning March 1,
        2006, until the Plan Trust is terminated.

These fees will total US$150,000 for the calendar year 2006.

Mr. Pardo notes that the US$51,000 requested for the Plan
Trustees' services in January and February 2006 is similar to
the US$50,000 amount provided for in the Plan for "actual and
necessary out-of-pocket expenses incurred by [the Plan Trustees]
. . . in preparing to assume their responsibilities under the
Plan Trust Declaration."

According to Mr. Pardo, the structure and amount of the
compensation to the Plan Trustees recognizes that the
responsibilities of the Plan Trustees have been particularly
demanding in light of the all the work that was required to form
the Plan Trust and set up the administration of the Plan Trust.
The decrease in compensation after February 2006 reflects the
fact that the Plan Trustees anticipate that the work required of
them in the future will decrease.

Since the parties cannot predict with certainty what additional
services will be required from the Plan Trustees, the Plan
Trustees request the right to renegotiate the Compensation with
MC 2005 and seek Court approval in the event their work will
substantially increase in the future.

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.  
(Mirant Bankruptcy News, Issue No. 94; Bankruptcy Creditors'
Service, Inc., 215/945-7000)

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant and said the outlook is stable.




=============
U R U G U A Y
=============


* URUGUAY: Lack of Rainfall May Cause Shortage in Electricity
-------------------------------------------------------------
Uruguay is threatened by a possible shortage in electricity,
Merco Press reports.

The lack of rainfall as well as lesser regional solidarity has
forced Uruguay to save electricity and come up with an emergency
alternative, according to a report by the government-run energy
company UTE.  

The report states that the alternative could include blackouts.

Merco Press recalls that Argentina, who is in conflict with
Uruguay on the construction of pulp mills in the Uruguay River,
reduced the electricity provision to Uruguay from 360 MWh to 150
MWh due shortages in its own territory.

Brazil is also suffering the consequences of a prolonged
drought, says Merco Press.  As a result, the country has also
reduced the surplus to Uruguay to 70 MWh.

Merco Press reveals that Uruguay is forced to turn on a fossil
fueled plant that cost US$1 million daily.

Merco Press says that the first of two fossil fueled 100 MWh
plants is scheduled to start operating by the end of July.  
Another one will follow in August.

The country is hoping for more rainfall to help fill the several
dams that are out of service or working at a minimum due to
insufficient water supply, Merco Press states.  

According to Merco Press, Uruguay has three main dams that
jointly generate 500 MWh plus a dam shared with Argentina, which
has one out of fourteen turbines in production.  Without
rainfall, the three dams have 50 days production.

Jorge Lepra, the country's industry minister, told Merco Press
that the energy situation with no rainfall is quite delicate
until the end of August or early September.

Merco Press states that the country has a contingency plan with
an immediate goal to convince home users, who absorb 50% of
Uruguay's total electricity production, to lessen the
consumption of electricity by 5% plus 10% savings in government
offices and dependencies.

Merco Press reveals that the government hired a private firm to
organize a massive media savings campaign among home consumers.

The shortage of electricity would force Uruguay to impose
rotational blackouts from three to four hours in Montevideo and
the main cities, according to Merco Press.

Uruguay has not adopted the measure since 1989, Merco Press
recalls.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB-      Mar. 7, 2005
   Long Term IDR       B+      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB-      Mar. 7, 2005


* URUGUAY: IFC Proposes Action Plan to Study Pulp Mill Projects
---------------------------------------------------------------
The International Finance Corporation made public an Action Plan
indicating the remaining steps to complete the IFC's
environmental and social due diligence process for two pulp mill
projects in Uruguay.  

The plan addresses recommendations included in a report produced
by two independent experts, Wayne Dwernychuk and Neil McCubbin
of Canada.  Following their review of all stakeholder comments
on the draft Cumulative Impact Study, Mr. McCubbin and Mr.
Dwernychuk identified a need for additional information and
analysis to substantiate the environmental impacts of the CMB
and Orion pulp mill projects.  They also recommended some
technical improvements for consideration that could enhance the
environmental performance of both mills.

IFC, a member of the World Bank Group that promotes sustainable
development of the private sector in emerging markets, is
evaluating whether to provide financing to the proposed Orion
and CMB pulp mill plants.  In addition, MIGA, also an arm of the
World Bank Group, is evaluating whether to provide political
risk insurance to investors in the Orion plant.  

With the Action Plan, the IFC commences the final phase of its
environmental due diligence process for the pulp mill projects
to confirm compliance with its strict and internationally
recognized environmental standards.  Upon completion of the
environmental review, IFC and MIGA will decide whether they will
seek Board approval for the financing and the guarantee for the
projects.

                     The Action Plan

IFC has reached an agreement with the project sponsors, ENCE and
Botnia, to implement the Action Plan, which includes the
following components:

   -- The draft CIS will be revised and updated by independent
      consultants and will include additional information
      required by IFC, following the recommendations of the
      experts' report.

   -- Revision of the CIS is expected to take between
      60 and 90 days, and will begin following the appointment
      of the independent consultants.

   -- Once the consultants update the CIS, it will be
      reviewed by the panel of independent Canadian experts
      to verify consistency and responsiveness to the findings
      and recommendations in their report released
      April 11, 2006.  

   -- The final CIS will be an essential factor in the
      World Bank Group's decision making process of determining
      whether to submit the projects to the Board of Directors
      for approval.  Should IFC and MIGA decide to proceed,
      the final CIS will be publicly disclosed for a period
      of 30 days prior to consideration by IFC's and MIGA's
      Boards of Directors.

   -- The independent consultants retained for additional
      information gathering, study, and analysis will address
      the following key issues identified by the Canadian
      experts:

       1. Plant Process Technology:
  
          Evaluate possible technological and process
          improvements, and verify that plant operations will
          utilize Best Available Techniques and will, at
          minimum, meet IPPC/BREF environmental performance
          standards;

       2. Plan Site Selection:

          Provide additional information that substantiates
          the companies' decision to locate the plants near
          Fray Bentos;

       3. Rio Uruguay Water Quality and Aquatic Resources:

          Provide a more detailed review of data on baseline
          water quality and fisheries to assess the impact of
          effluent discharge;

       4. Air Quality:

          Revise emissions models;

       5. Tourism:

          Provide additional baseline information and analysis
          of the tourism industry within the area of influence
          of the two proposed pulp mills;

       6. Forest Plantations:

          Undertake additional review of mill-related
          plantation forestry operations and their impacts; and

       7. Emergency Response and Environmental
          Management/Monitoring Plans:

          Provide additional detail on each company's
          management plans.


                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB-      Mar. 7, 2005
   Long Term IDR       B+      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB-      Mar. 7, 2005




=================
V E N E Z U E L A
=================


PETROLEOS DE VENEZUELA: Buys 28 Drills from China Petro  
-------------------------------------------------------
Petroleos de Venezuela will buy 28 drilling machines from China
Petro Technology & Development, according to the company's vice
president for Prospecting and Production Jose Vielma, as quoted
by El Universal.

Under the purchase agreement, some of the drills will be
assembled in Venezuela.

The Chinese firm is a subsidiary of China National Petroleum
Corporation.

"By 2008, we will be assembling drills in Venezuela. In 2010-
2011, we will be able to assemble our own drills," Mr. Vielma
was quoted by El Universal as saying.

Almost 90 imported drills are used currently in Venezuela for
prospecting operations.

Petroleos de Venezuela SA aka PDVSA is Venezuela's state oil
company in charge of the development of the petroleum,
petrochemical and coal industry, as well as planning,
coordinating, supervising and controlling the operational
activities of its divisions, both in Venezuela and abroad.

                        *    *    *

On Jan. 23, 2006, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  The Rating Outlook is
Stable.  Both rating actions follow Fitch's November 2005
upgrade of Venezuela's sovereign rating.


SIDETUR FINANCE: Completes US$100-Mil Bond Issue in Int'l Market
----------------------------------------------------------------
Sidetur Finance B.V. has successfully finished issuing bonds
worth US$100 million in the international market, Business News
Americas reports.

The bonds mature in 2016 and have a 10% annual yield payable on
the 20th of the months of January, April, July and October each
year starting in July 2006, BNamericas says.

In 2008, quarterly repayment begins at a rate of US$5 million
each year (US$1.25 million quarterly) and the balance of US$60
million will be paid on the April 2016 expiration date.

Sidetur has also secured a US$32-million loan that together with
the bonds will let it refinance its debt in order to buy back
15% of its shares.  Banks have held Sidetur's shares since a
2002 restructuring deal, BNamericas relates.

"The company plans to go ahead with a program within the next
three years worth about US$80 million that looks at investing in
the plant, the equipment, environmental system improvements and
in an installed capacity expansion," according to a statement
from Sidetur.

The company is restricted from investing fixed assets under a
2002 restructuring plan.  By refinancing its debt, Sidetur can
now leave behind the restrictions.  The company's refinancing is
further helped by the improved performance of the international
steel industry and an operations optimization program.

Sidetur, a wholly owned subsidiary of Siderurgica del Turbio,
S.A., manufactures billets for the rolling industry and finished
steel products for construction and infrastructure.  The
company's ultimate parent is Siderurgica Venezolana S.A. --
Sivensa

Fitch Ratings has assigned a 'B+' foreign currency rating to
Sidetur's US$100 million 10-year unsecured notes.



                         ***********




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 - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, and
Stella Mae Hechanova, Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2746.

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 Latin America subscription rate is $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 $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


           * * * End of Transmission * * *