TCRLA_Public/060516.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

          Tuesday, May 16, 2006, Vol. 7, Issue 96

                            Headlines

A R G E N T I N A

ARYANE SRL: Verification of Creditors' Claims Ends on June 22
BANCO HIPOTECARIO SA: Fitch Assigns B- LT Issuer Default Rating
BANCO MACRO: Posts ARS73 Million First Quarter 2006 Profits
BRILBE S.A.: Last Day for Proofs of Claim Filing Set for Aug. 15
ELECTRICIDAD ARGENTINA: Inks Restructuring Accord with Creditors

ERICMAS S.A.: Filing of Proofs of Claim Ends on June 14
GENERAL SEGURITY: Sets May 30 Proofs of Claim Filing Deadline
OSCAR Y REINALDO: Court Concludes Reorganization Proceeding
PROLAT S.A.: Asks Court's Permission to Reorganize Business
REPSOL YPF: Argentine Gov't Denies Acquisition of 51% Stake

REPSOL YPF: Inks Time Charter Contract with Knutsen
SARACCO Y TEJEDO: Reorganization Proceeds to Bankruptcy
SELAMAR SA: Trustee Stops Accepting Proofs of Claim by July 31
TELEFONIA PUBLICA: Court Converts Bankruptcy to Reorganization
WESSON S.R.L.: Enters Bankruptcy on Court Orders

* ARGENTINA: Int'l Court to Start Pulp Dispute Hearing on June 8

B A H A M A S

WINN-DIXIE: Can Ink Commercial Surety Pact With RLI Insurance

B E R M U D A

FOSTER WHEELER: Shareholders Approve Omnibus Incentive Plan
GLOBAL CROSSING: Proposes Public Offerings of US$125M Sr. Notes
SCANDINAVIAN FINANCE: Filing of Proofs of Claim Ends on May 19

B O L I V I A

PETROLEO BRASILEIRO: Considers Filing of Diplomatic Protest
REPSOL YPF: President Morales Discusses Trade Impact with Spain

* BOLIVIA: Won't Compensation Foreign Oil Companies

B R A Z I L

COMPANHIA VALE: Posts US$3.490 Bil. First Quarter Gross Revenue
ENERGISA SA: Fitch Puts BB- Rating on Entities' US$250M Notes
GERDAU SA: Group Posts 13.2% Growth in First Quarter Sales
GERDAU SA: Withdraws Authorization for Payment of Royalties
NOSSA CAIXA: Posts BRL175 Million First Quarter 2006 Earnings

* BRAZIL: Steel Exporters See China as Threat to Industry

C A Y M A N   I S L A N D S

AERCAP A BORDEAUX: Creditors Must File Proofs of Claim by May 25
AERCAP CORVO: Sets May 25 Deadline for Proofs of Claim Filing
ASSET FINANCE: Last Day for Proofs of Claim Filing Is on May 25
PANTEL HOLDINGS: Proofs of Claim Must be Filed by May 18
YANKEE BRAVO: Proofs of Claim Filing Ends on May 18

C H I L E

AES CORP: Exercises Option to Extend Credit Facility to US$600M

C O L O M B I A

BANCOLOMBIA: Reports Unconsolidated Net Income of Ps280 Billion

C U B A

* CUBA: Inks Oil Collaboration Accord with Venezuela

E C U A D O R

* ECUADOR: Will Not Have Free Trade Agreement with US

G R E N A D A

AIR JAMAICA: Adds More Flights to Grenada Starting June 25

H O N D U R A S

* HONDURAS: IMF Worries for State Companies ENEE & Hondutel
* HONDURAS: 40 Firms Interested in Accord to Supply Fuel

J A M A I C A

KAISER ALUMINUM: Releases First Quarter 2006 Financial Results
NCB JAMAICA: Earns J$2.4 Billion for Quarter Ended Mar. 31

M E X I C O

COMISION FEDERAL: Inks Accord with Sonora for Thermo Plant Site
GRUPO MEXICO: Posts 22.4% Increased in EBITDA for First Quarter
J.L. FRENCH: Panel Hires Giuliani Capital as Financial Advisors
MERIDIAN AUTOMOTIVE: Has Until May 29 to File Disclosure Papers

P A N A M A

KANSAS CITY SOUTHERN: Appoints Two New Officers in Finance Dep't

* PANAMA: Waterway Authority Recommends Construction of New Lane

P U E R T O   R I C O

G+G RETAIL: U.S. Trustee Amends Creditors' Panel Membership
MUSICLAND HOLDING: Files Joint Plan of Liquidation in New York
OCA INC: Court Sets June 2 General Claims Bar Date
OCA INC: Files Schedules of Assets & Liabilities
OCA INC: Files Plan of Reorganization and Disclosure Statement

U R U G U A Y

* URUGUAY: International Court to Start Hearing on Pulp Dispute

V E N E Z U E L A

ELECTRICIDAD DE CARACAS: Posts VEB44.3 Bil. First Quarter Profit

* VENEZUELA: Inks Oil Collaboration Accord with Cuba


                          - - - - -



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


ARYANE SRL: Verification of Creditors' Claims Ends on June 22
-------------------------------------------------------------
The verification of creditors' claims for the Aryane S.R.L.
insolvency case will end on June 22, 2006, states Infobae.  
Jorge Roberts is the court-appointed trustee who will examine
the claims.  

An informative assembly is scheduled for April 5, 2007.

As reported in the troubled Company Reporter on March 8, 2006,
Aryane S.R.L. filed a petition to reorganize its business after
defaulting on its debt.  Buenos Aires' Court No. 21 approved the
petition.

Clerk No. 42 assists the court in this case.

The debtor can be reached at:

         Aryane S.R.L.
         Parana 123
         Buenos Aires, Argentina

The trustee can be reached at:

         Jorge Roberts
         Hernandarias 953
         Buenos Aires, Argentina


BANCO HIPOTECARIO SA: Fitch Assigns B- LT Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has assigned these ratings to Banco Hipotecario
S.A.:

-- long term Issuer Default Ratings 'B-';

-- foreign and local currency short term IDRs 'B';

-- individual rating 'D'; and

-- support rating '5'.

The Rating Outlook is Stable.

At the same time, Fitch has changed the outlook on Banco
Hipotecario's long term national rating of 'A' to Stable from
Negative.  In addition, Fitch has assigned a long-term foreign
and local currency rating of 'B-' to Banco Hipotecario's US$1.2
billion Global Medium Term Notes Programme and assigned a long-
term foreign currency rating of 'B-' and Recovery Ratings of
'RR4'* to Banco Hipotecario's US$250 million series 5, 9.75%
unsubordinated notes due 2016.

Banco Hipotecario's ratings reflect its dominant niche market
share, its large capital base and its improving performance
since the Argentine crisis in 2001.  They also take into account
the operating environment remaining relatively weak and its
exposure to the public sector.

The bank's long-term IDRs have a Stable Outlook.  As its local
currency Long-term IDR is at the same level as that of the
sovereign, upside potential in Banco Hipotecario's debt ratings
could arise from an upgrade in Argentina's ratings.

The Argentine economy has significantly improved since the 2002
crisis (GDP growth of around 9% per annum in the past three
years) and this has resulted in a better operating environment
for banks, with growing deposits and lending.  Banco
Hipotecario's performance has picked up considerably after the
crisis and should remain sound if the economic recovery
consolidates, new lending opportunities arise, and its strategy
of business diversification, particularly towards consumer and
SME lending, succeeds.

Banco Hipotecario's asset quality has improved significantly
since 2002.  Non-performing loans fell to 7.3% of total loans at
the end of 2005 from 11.3% at the end of 2004, exposure to the
public sector fell to 37% of assets from 53% and loan loss
reserve coverage grew to 106% from 92%.

Banco Hipotecario's funding depends on access to the capital
markets and mainly consists of the issuance of bonds, loan
securitizations, repo agreements, bank loans and its own equity.  
The bank has recently regained access to the international
capital markets.  Its liquidity is strong and the bank has been
repaying ahead of time its restructured debt and its liabilities
with the Argentine Central Bank.  Its capital base is ample.  
Even when deducting from equity the retained junior tranches of
loan securitizations and the difference between the market and
book values of its government bonds, the equity-to-assets ratio
would still be sound at roughly 22.2%.

The Argentine government created Banco Hipotecario Nacional in
1886 and privatized it in 1996, changing its name to BH. At the
end of 2005, BH was the seventh-largest bank in Argentina by
total assets and the second largest by equity.  It is the
largest mortgage lender with a 30% share and since 2003 has
sought to diversify its businesses.  The Argentine state owns
54% and IRSA Inversiones y Representaciones S.A., a domestic
real estate company, 28%; the balance is widely held.


BANCO MACRO: Posts ARS73 Million First Quarter 2006 Profits
-----------------------------------------------------------
Banco Macro, fka Banco Macro Bansud, disclosed that its first
quarter profits rose 20% to ARS73 million due to stronger loan
volume.

According to Business News Americas, the bank's net financial
income grew 24.1% to ARS134 million.  Net service income was
ARS71 million -- 34% higher than last year.  Administrative
expenses, on the other hand, increased 30.6% to ARS128 million.

BNamericas reports that the net loan portfolio of Banco Macro
had a 55% boost, reaching ARS 2.01 billion.  Private sector
loans rose 69% to ARS2.48 billion and the non-performing loans
as a percentage of total loans dropped to 3% from 4% compared
with the first quarter 2005.

BNamericas recalls the Jorge Brito -- the chief executive
officer of Banco Macro -- said last month that he expected the
bank to increase private sector lending by 70% in 2006.

Andrea Manavella, Moody's Latin America vice president and
senior analyst, told BNamericas, "Macro's intermediation volume
is growing strongly due to its solid retail customer base, which
allows the bank to post one of the best core earnings indicators
in the local system."

Banco Macro's assets dropped 2.1% to ARS7.32 billion and its
liabilities fell 14.2% to ARS5.29 billion.  Equity increased 54%
to ARS2.03 billion, BNamericas reports.

                        *    *    *

On Dec. 13, 2005, Moody's Investors Service affirmed the credit
ratings of Banco Macro:

    -- Bank Financial Strength Rating: E -- Positive Outlook
    -- Long- Term Global Local Currency Deposits: Ba3
    -- Short -Term Global Local Currency Deposits: Not Prime
    -- National Scale Rating for Local Currency Deposits: Aa2.ar
    -- Long -Term Foreign Currency Deposits: Caa1
    -- Short -Term Foreign Currency Deposits: Not Prime
    -- National Scale Rating for Foreign Currency Deposits:
       Ba1.ar.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 13, 2005,
Moody's Investors Service placed the B1 global local-currency
deposit rating and the Aa3.ar national scale local-currency
deposit rating of Banco del Tucuman S.A. (Tucuman) under review
for possible upgrade.

The ratings agency also affirmed Tucuman's bank financial
strength rating of E.


BRILBE S.A.: Last Day for Proofs of Claim Filing Set for Aug. 15
----------------------------------------------------------------
Fernando Marziale, the court-appointed trustee for the
bankruptcy case of Brilbe S.A., has started verifying creditors'
claims.  The verification phase will end on Aug. 15, 2006.

La Nacion relates that Buenos Aires' Court No. 3 declared the
company bankrupt in favor of Agro Invest S.A., whom the company
owes US$29,944.79.

Clerk No. 5 assists the court in this case.

The debtor can be reached at:

         Brilbe S.A.
         Esmeralda 819
         Buenos Aires, Argentina

The trustee can be reached at:

         Fernando Marziale
         Callao 930
         Buenos Aires, Argentina    


ELECTRICIDAD ARGENTINA: Inks Restructuring Accord with Creditors
----------------------------------------------------------------
Electricidad Argentina aka Easa -- a holding company controlled
by French power firm EDF -- informed CNV, the securities
regulator of Argentina, that it signed a debt restructuring
agreement with its creditors.

Business News Americas relates that under the out-of-court deal,
the Argentine holding company will issue new bonds to the tune
of US$85.3 million to the benefit of creditors.

The government and regulatory agencies of Argentina are yet to
approve the operation, BNamericas reports.

                        *    *    *

As reported in the Troubled Company Reporter on March 15, 2005,
Easa falls into red in 2004 with net losses in the period
totaling ARP75.5 million.  Easa had ARP462 million pesos of net
equity as of Dec. 31, 2004.

BNAmericas recalls that the company did not provide comparative
figures when it submitted its financial statements to the Buenos
Aires stock exchange.

Local power distributor Edenor, of which Easa has a 51% stake,
also reported losses amounting to ARP89.9 million pesos in 2004.  
Edenor had posted a net profit of ARP211 million a year earlier.  
Edenor operates in the northern part of Buenos Aires.


ERICMAS S.A.: Filing of Proofs of Claim Ends on June 14
-------------------------------------------------------
The filing of proofs of claim against Ericmas S.A. will end on
June 14, 2006, La Nacion reports.

Hector Juan Kaiser, court-appointed trustee for the bankruptcy
case of Ericmas S.A., has started verifying creditors' claims.  

La Nacion relates that Buenos Aires' Court No. 13 declared the
company bankrupt in favor of Hernan Larrosa, whom the company
owes US$15,548.06.

Clerk No. 26 assists the court in this case.

The debtor can be reached at:

         Ericmas S.A.
         Avenida Quinatana 437
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Kaiser
         Azcuenga 1930
         Buenos Aires, Argentina    


GENERAL SEGURITY: Sets May 30 Proofs of Claim Filing Deadline
-------------------------------------------------------------
Court-appointed trustee Estudio Juan Ulnik y Asociacion will
stop validating claims against bankrupt company General Segurity
S.A. after May 30, 2006, Infobae reports.

A Buenos Aires court handles the company's bankruptcy case.

The trustee can be reached at:

         Estudio Juan Ulnik y Asociacion
         Maipu 509
         Buenos Aires, Argentina


OSCAR Y REINALDO: Court Concludes Reorganization Proceeding
-----------------------------------------------------------
The reorganization of Oscar y Reinaldo Testa S.H. has ended.  
Data revealed by Infobae on its Web site indicated that the
process was concluded after a court in Villa Maria, Cordoba
homologated the debt agreement signed between the company and
its creditors.


PROLAT S.A.: Asks Court's Permission to Reorganize Business
-----------------------------------------------------------
Prolat S.A., a company operating in Buenos Aires, has requested
for reorganization after failing to pay its liabilities since
Feb. 1, 2006.

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

Buenos Aires Court No. 6, with the assistance of Clerk No. 11,
handles the proceeding.

The debtor can be reached at:

         Prolat S.A.
         Florida 159
         Buenos Aires, Argentina


REPSOL YPF: Argentine Gov't Denies Acquisition of 51% Stake
-----------------------------------------------------------
Repsol YPF denies having received any indication from the
Argentine government, with which it has a solid relationship,
that it is supposedly acquiring 51% of YPF's capital.

The Argentine Planning Minister, Julio De Vido, who strongly
stated that there does not exist any such plan on the part of
the Administration of Nestor Kirchner, has also denied this
news.

Repsol YPF Chairman Antonio Brufau recently ratified in Buenos
Aires that Repsol YPF will maintain a clear majority stake in
YPF, and announced in the web cast with international analysts
that the company could sell between 15% to 20% of its capital in
YPF under optimal market conditions, and which would be aimed at
private investors.

Repsol YPF laments that such information can be published, and
which not being factually true could intentionally or not
negatively affect the correct functioning of the stock market,
and the positive performance of companies.

Given that this published information has affected the
performance of Repsol YPF's share price in the session on
May 12, the company reserves the right to take possible legal
actions against those who are responsible for this negative
performance, and to defend the interests of its shareholders.

                        *    *    *

On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.

YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.


REPSOL YPF: Inks Time Charter Contract with Knutsen
---------------------------------------------------
Repsol YPF and Gas Natural have signed a Time Charter Contract
with the shipbuilding company Knutsen for a liquefied natural
gas tanker.  The tanker will have a capacity of 138,000 cubic
meters, and will enter service in 2009 for Repsol YPF and Gas
Natural.

The contracting of this new tanker will allow Repsol YPF and Gas
Natural to cover their LNG transport needs in the coming years
in the Atlantic Basin.

This contract is in addition to that made between Repsol YPF and
Gas Natural in January 2005 for the acquisition of a tanker with
the same capacity, and which is being built in the Izar
shipyards and will be delivered in December 2007.

The contracted tanker will enter operations in 2006 for Knutsen,
but according to the signed agreement, it will not begin
operating for Repsol YPF and Gas Natural until 2009.  As
stipulated in the Time Charter Contract signed with Knutsen, the
agreement is for an initial period of 20 years, and may be
extended for two five-year periods.

A Time Charter Contract is a type of contract entered into by
ship users and owners, where the user charters the ship for a
set period, and the user pays the owner a usage fee.

A Joint Fleet With More Than 1.5 Million Cubic Meters Of
Capacity

Repsol YPF and Gas Natural currently have a fleet of 11 tankers,
which represents a total capacity of over 1 million cubic
meters, in addition to the 138,000 cubic meters for the tanker
being built by Izar, as well as the 138,000 in this latest
agreement with Knutsen.

For Repsol YPF the signing of this contract is a further step in
the company reinforcing its excellent position in the integrated
LNG business, and which will constitute one of the principle
lines of growth in the coming years.

For Gas Natural the contracting of this new tanker is an
essential element to achieve greater flexibility and
diversification in the supplying of natural gas, as well as
building upon the company's Strategic Plan to participate in the
development of the worldwide LNG market.

The Stream joint venture between Repsol YPF and Gas Natural is
ranked third in the global LNG market in terms of signed LNG
contracts, and the companies are leaders in the Atlantic Basin.

                        *    *    *

On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.

YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.


SARACCO Y TEJEDO: Reorganization Proceeds to Bankruptcy
-------------------------------------------------------
The reorganization of Saracco y Tejedo S.R.L. has progressed
into bankruptcy.  Argentine news source Infobae relates that a
court in Rosario, Sane Fe ruled that the company is bankrupt.

The debtor can be reached at:

               Saracco y Tejedo S.R.L
               San Juan 1031, Rosario
               Santa Fe, Argentina


SELAMAR SA: Trustee Stops Accepting Proofs of Claim by July 31
--------------------------------------------------------------
The verification phase for the claims submitted by Selamar
S.A.'s creditors has started, Argentine daily La Nacion reports.   
The verification will end on July 31, 2006.  Creditors who are
unable to submit claims after the said date will be excluded
from receiving any distribution or payment that the company will
make.

Buenos Aires' Court No. 9 approved the company's petition to
reorganize.  Clerk No. 18 assists the court in this case.

The court appointed Estudio Waisberg-Knoll as trustee.

An informative assembly is set for April 4, 2007.

The debtor can be reached at:

         Selamar S.A.
         Lavalle 2024
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio Waisberg-Knoll
         Avenida Cordoba 1237
         Buenos Aires, Argentina


TELEFONIA PUBLICA: Court Converts Bankruptcy to Reorganization
--------------------------------------------------------------
Telefonia Publica Latinoamericana S.R.L. will proceed with
reorganization after a Buenos Aires Court converted the
Company's ongoing bankruptcy case.

As reported in the Troubled Company Reporter on Jan. 12, 2006,
the court initially declared the company bankrupt.

Under insolvency protection, the company will be able to draft a
proposal designed to settle its debts with creditors.  The
reorganization also prevents an outright liquidation.

Mr. Osvaldo Jose Raimundo, the court-appointed trustee, will
verify creditors' proofs of claims.   The deadline for
verification of claims is yet to be disclosed.

The debtor can be reached at:

          Telefonia Publica Latinoamericana S.R.L.
          Avenida Eva Peron 1145
          Buenos Aires, Argentina

The trustee can be reached at:

          Osvaldo Jose Raimundo
          Rodriguez Pena 797
          Buenos Aires, Argentina


WESSON S.R.L.: Enters Bankruptcy on Court Orders
------------------------------------------------
A court based in Buenos Aires approved a bankruptcy petition
filed by Wesson S.R.L. (continuadora de Bennati S.R.L.),
Argentine daily Infobae reports.  The order transfers control of
the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records.

The name of the trustee and the dates for submission of the
reports as well as the date for the end of the verification
period are yet to be disclosed.

The debtor can be reached at:

             Wesson S.R.L. (continuadora de Bennati S.R.L.)
             Rosario 472
             Buenos Aires, Argentina

The trustee can be reached at:

             Estudio Guaita-Suez Asociados
             Carlos Calvo 839
             Buenos Aires, Argentina


* ARGENTINA: Int'l Court to Start Pulp Dispute Hearing on June 8
----------------------------------------------------------------
The dispute proceedings on the Uruguay-Argentina pulp mill
dispute will start on June 8, 2006, at the International Court
of Justice in The Hague, Dow Jones Newswires states, citing
reports by Argentine media.

As reported in the Troubled Company Reporter on May 8, 2006,
Argentine Foreign Minister Jorge Taiana told reporters that
Argentina filed a demand against Uruguay at The Hague protesting
the construction of two pulp mills on the Uruguay River that
that nation authorized in violation of a statute that regulates
this shared resource.

Cabinet chief Alberto Fernandez told Dow Jones that Argentina
wants the court to order Uruguay to stop the pulp mill
construction to allow for more environmental study.

The Argentine government and some environmental groups believe
Uruguay did not provide sufficient time for a thorough
environmental impact study on the pulp mill plants.

Uruguayan officials, on the other hand, said that studies have
been conducted and that the mills will use modern pollution
controls, Dow Jones reports.  

Credit Suisse had said in a report earlier that the arguments
are not likely to begin before the middle of May due to the
court's caseload.  According to Credit Suisse, the court
normally takes six to nine months before it could reach a
decision, although that process can be sped up to end within
four weeks.

                        *    *    *

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

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     RD      Dec. 14, 2005
   Long Term IDR       B       Dec. 14, 2005
   Short Term IDR      B-      Jun.  3, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B       Jun.  3, 2005



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B A H A M A S
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WINN-DIXIE: Can Ink Commercial Surety Pact With RLI Insurance
-------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Middle District
of Florida to enter into a commercial surety agreement with RLI
Insurance Company.

As reported in the Troubled Company Reporter on April 24, 2006,
the Debtors and RLI have agreed that:

    1. RLI, in its sole discretion, will issue bonds on the
       Debtors' behalf of up to US$10,000,000 and pay any claims
       made against the bonds;

    2. the Debtors will indemnify RLI for any losses incurred as
       a result of the issuance;

    3. the Debtors will pay RLI a percentage of each bond issued
       and a minimum annual payment -- the Premium Commitment;

    4. the Debtors will post letters of credit, obtained from
       the DIP Lender, as collateral under the bonds; and

    5. the Debtors will pay RLI reasonable attorneys' fees
       incurred in negotiating, documenting and obtaining
       approval of the Surety Agreement.

Cynthia C. Jackson, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, asserts that the Surety Agreement is
beneficial to the Debtors and their estates because:

    1. RLI has agreed to a financial fee of 2% of the principal
       amount of any bond issued, with a minimum fee of US$100
       for each bond, which is competitive with other surety's
       rates;

    2. RLI will only require a collateral of 100% of any bond
       issued unlike other sureties that require posting of
       collateral of 125% of the face amount of the bond;

    3. RLI has agreed to a US$120,000 Premium Commitment
       compared to other sureties, which require the Debtors to
       make a Premium Commitment of US$250,000 or more; and

    4. establishing a relationship with a surety willing to help
       the Debtors meet the demands of the marketplace will
       assist the Debtors greatly as they prepare to exit from
       bankruptcy.

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).



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


FOSTER WHEELER: Shareholders Approve Omnibus Incentive Plan
-----------------------------------------------------------
The shareholders of Foster Wheeler Ltd. approved the Foster
Wheeler Ltd. Omnibus Incentive Plan in the form included as
Annex B to the Company's proxy statement for the annual general
meeting of shareholders held on May 9, 2006.  The Board of
Directors of the Company approved the Plan on February 28, 2006,
subject to shareholder approval at the annual meeting.

The Plan provides for the granting of:

   -- stock options,
   -- stock appreciation rights,
   -- restricted stock,
   -- restricted stock units,
   -- performance-contingent shares,
   -- performance-contingent units,
   -- cash-based awards and
   -- other equity-based awards to their employees,
      non-employee directors and third-party service
      providers.

The maximum number of shares as to which stock options and stock
awards may be granted under the Plan is 4,080,000 shares, plus:

   -- the number of shares that remained available for grant
      under the Company's existing equity-based incentive
      plans on the date of the annual meeting (but not to
      exceed 700,000 shares), and

   -- shares that would have again become available for
      issuance pursuant to the terms of awards previously
      granted under such existing plans and outstanding on the
      date of the annual meeting if those awards expire,
      terminate or are otherwise forfeited before being
      exercised or settled in full (but not to exceed
      5,000,000 shares).

A more detailed description of the terms of the Plan is
contained in the Company's proxy statement on Schedule 14A for
the annual meeting, which was filed with the U.S. Securities
Exchange Commission on March 30, 2006.

In addition, the Company's Board of Directors establishes
director compensation.  The Compensation Committee, with the
assistance of outside consultants, periodically reviews the
amount and composition of director compensation and makes
recommendations to the Board as needed. On May 8, 2006, the
Compensation Committee, after consultation with an outside
consultant, approved a recommendation to the Board of Directors
to increase directors' annual cash retainer from US$60,000 to
US$65,000, and to increase the annual equity grants to directors
from an equivalent value of approximately US$50,000 to an
equivalent value of approximately US$65,000.  These grants
consist of restricted share units and stock options.  The Board
of Directors approved the Compensation Committee's
recommendation at its meeting on May 9, 2006. These increases
will be reflected in compensation received by the directors in
2006.

At the meeting of the Company's Board of Directors on May 9, the
Board elected Mr. Ralph Alexander to become a director, to fill
an existing vacancy on the board.  Mr. Alexander is 51 years old
and is a member of the Compensation Committee.

At the annual meeting of shareholders on May 9, the Company's
shareholders approved a technical amendment to the by-laws of
the Company.  The amendment removed references to specific
numbers of shares from by-law 44(1), which states, in general,
that the authorized capital of the Company consists of common
shares and preference shares.

At the annual meeting, the shareholders also approved a
shareholder resolution providing for an increase in the
authorized share capital of the Company by 73,610,000 additional
Common Shares, increasing the number of authorized common shares
from approximately 74 million to approximately 148 million.  The
text of the shareholder resolution that was adopted is as
follows: "RESOLVED: That the authorized share capital of the
Company be increased by 73,610,000 additional Common Shares of
par value US$0.01 each."

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.  


GLOBAL CROSSING: Proposes Public Offerings of US$125M Sr. Notes
---------------------------------------------------------------
Global Crossing disclosed that it plans to make concurrent
public offerings of US$125 million in aggregate principal amount
of senior convertible notes and 6.75 million shares of its
common stock.  Proceeds from the proposed offerings will be used
for general corporate purposes, which may include the
acquisition of assets or businesses that are complementary to
Global Crossing's existing business, as well as to purchase a
portfolio of U.S. treasury securities to fund the first six
interest payments on the notes offered and to pay fees and
expenses related to the offerings.  Neither of these offerings
is contingent upon the consummation of the other offering.

The proposed offerings will be made under Global Crossing
Limited's shelf registration statement filed with the Securities
and Exchange Commission on April 21, 2006.  Goldman, Sachs & Co.
will serve as sole bookrunner and Morgan Stanley will be joint
lead manager for the offerings.

This press release is neither an offer to sell nor a
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any
jurisdiction in which such an offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.  The offering of these
securities will be made only by means of a prospectus and
related prospectus supplement.  When available, copies of the
prospectus and related prospectus supplement may be obtained
from:

         Goldman, Sachs & Co.
         Attention: Prospectus Department
         85 Broad St., New York,
         New York 10004,
         Fax: +1 212 902 9316
         E-mail: prospectus-ny@ny.email.gs.com

                  -- or  --

         Morgan Stanley & Co. Incorporated
         Attention: Prospectus Department
         1585 Broadway, New York
         New York 10036
         Fax: +1 866 718 1649
         E-mail: Prospectus@Morganstanley.com.

Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication solutions over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services.  The company filed for chapter 11 protection on Jan.
28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188).  When the Debtors
filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts.  Global Crossing emerged from chapter 11 on Dec. 9, 2003.

As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.


SCANDINAVIAN FINANCE: Filing of Proofs of Claim Ends on May 19
--------------------------------------------------------------
Creditors of Scandinavian Finance Limited are given until
May 19, 2006, to prove their claims to Ernest A. Morrison, 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. Morrison.

A final general meeting will be held at the office of the
liquidator on June 6, 2006, at 10:00 a.m., or as soon as
possible, 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 May 1, 2006.

The liquidator can be reached at:

         Ernest A. Morrison
         Milner House, 18 Parliament Street
         Hamilton, Bermuda




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



PETROLEO BRASILEIRO: Considers Filing of Diplomatic Protest
-----------------------------------------------------------
In response to President Evo Morales' non-compensation stand,
the Brazilian government said in reports that it does not
discount the pull out of its ambassador in Bolivia in the event
that the Andean nation will seize Brazil's state-owned company
Petroleo de Brasileiro SA's assets without compensating the
firm.

"We will act firmly, but not hastily.  Don't wait for Brazil to
do it precipitously, but this does not exclude a strong
reaction," Brazil's foreign minister Celso Amorim was quoted by
the Associated Press as saying during the European Union-Latin
America summit held in Vienna, Austria, last week.

Petroleo Brasileiro is the largest consumer of Bolivia's natural
gas.

Bolivia is South America's second-largest natural gas producing
nation after Venezuela, exporting some 35 million cubic meters
daily. More than two-thirds of that goes to Brazil, and
Petrobras in recent years has been the largest investor and
taxpayer in Bolivia.

Under the nationalization of the oil and gas industry, companies
are given 180 days to negotiate new contracts or face expulsion
from Bolivia.

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-


REPSOL YPF: President Morales Discusses Trade Impact with Spain
---------------------------------------------------------------
After the European Union-Latin America summit held in Vienna,
Austria, last week, President Evo Morales met with Spanish Prime
Minister Jose Luis Rodriguez Zapatero and EU foreign policy
chief Javier Solana, the Associated Press reports.

The Spanish and Bolivian leaders agreed to appoint experts from
both governments to discuss Bolivia's nationalization and its
impact on Spain's investments in the country, particularly the
future of Repsol YPF's oil investments.

Meanwhile, Mr. Solana pressed Pres. Morales to ensure his moves
won't cause uncertainly to European investors, the AP says.

Repsol, Bolivia's biggest gas producer, has been at odds with
the government since the election of President Morales.  Early
this year, Repsol suspended its investments in Bolivia after
taxes were raised.  The company's local subsidiary, Andina SA,
has been accused and faces investigation for alleged oil
smuggling.

Repsol has invested more than US$1 billion in Bolivia since 1995
and employs 3,000 workers in the country.

                        *    *    *

On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.

YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.


* BOLIVIA: Won't Compensation Foreign Oil Companies
---------------------------------------------------
Bolivian President Evo Morales ruled out paying foreign oil
companies that are asked to renegotiate their operating
contracts as a result of the nationalization of the country's
hydrocarbons sector on May 1, the Financial Times reports.

"If they have recovered their investment, then there is no
reason to compensate them whatsoever," Pres. Morales told
reporters in Vienna, Austria.

Under the nationalization of the oil and gas industry, companies
are given 180 days to negotiate new contracts or face expulsion
from Bolivia.

The foreign oil majors operating in Bolivia include:

  -- Brazil's state-run company Petroleo Brasileiro SA;
  -- Spanish-Argentine company Repsol YPF;
  -- British company BP PLC;
  -- British company British Gas Group; and
  -- France's Total SA; Exxon Mobil holds a stake in Total's oil
     field.

Bolivia's natural gas and oil sales abroad totaled US$1.3
billion in 2005, accounting for half of the country's total
exports.  Bolivia has South America's second-largest natural gas
reserves after Venezuela.  The country has about 31 trillion
cubic feet of proven gas reserves.

                        *    *    *

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
===========


COMPANHIA VALE: Posts US$3.490 Bil. First Quarter Gross Revenue
---------------------------------------------------------------
fCompanhia Vale do Rio Doce aka CVRD returned a very solid
performance in the first quarter of 2006, with gross revenue of
US$3.490 billion -- about 49.9% more than that of the first
quarter 2005.  

Appropriate execution of the long-term strategy has enabled the
company to take advantage of the opportunities offered by the
economic cycle, making possible sustained growth with both
operational and financial performance able to generate value for
its shareholders.

Gross revenue was US$3.490 billion, 49.9% more than in first
quarter 2005.

Operational profit as measured by adjusted EBIT aka earnings
before interest and taxes consisted of US$1.336 billion, 68.1%
more than in first quarter 2005.

Adjusted EBIT margin was 40.0%, against 35.9% in first quarter
2005.

Cash flow as measured by adjusted EBITDA aka earnings before
interest, taxes, depreciation and amortization was US$1.629
billion, 64.0% growth year on year.

Net earnings was US$1.171 billion, US$1.02 per share, 67.8% more
than in first quarter 2005.

Annualized return on equity aka ROE of 32.3%, compared to 35.4%
in first quarter 2005.

Capital expenditure was US$1.126 billion, of which US$843
million was spent on organic growth, US$236 million on
maintaining existing operations, and US$47 million on
acquisitions.

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                        *    *    *

On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's proposed
US$300 million issuance due 2016.  Vale Overseas is a wholly
owned subsidiary of Companhia Vale do Rio Doce, a large
diversified mining company located in Brazil.  The notes are
unsecured obligations of Vale Overseas and are unconditionally
guaranteed by CVRD.  The obligation to guarantee the notes
rank pari passu with all of CVRD's other unsecured and
unsubordinated debt obligations.  Fitch expects the proceeds of
this issuance to be used for general corporate purposes and
primarily to pay down US$300 million of Vale Overseas' 9.0%
guaranteed notes due 2013.

Fitch also maintained these ratings for CVRD and CVRD Finance
Ltd., a wholly owned subsidiary of CVRD:

  -- CVRD foreign currency rating: 'BB', Outlook Positive;
  -- CVRD local currency rating: 'BBB' Outlook Stable;
  -- CVRD national scale rating: 'AAA(bra)', Outlook Stable;
  -- CVRD Finance Ltd.: series 2000-1 and series 2000-3:
     'BBB';
  -- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'.


ENERGISA SA: Fitch Puts BB- Rating on Entities' US$250M Notes
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to the proposed US$250
million notes units offering of:

   -- Empresa Energetica de Sergipe S.A. or ENERGIPE,

   -- Sociedade Anonima de Eletrificacao da Paraiba or SAELPA,
      and

   -- Companhia Energetica de Borborema or CELB.

Each US$2,000 note unit will consist of:

   -- US$1,300 in principal amount of perpetual senior notes
      to ENERGIPE,

   -- US$600 in principal amount of perpetual senior notes to
      SAELPA, and

   -- US$100 in principal amount of perpetual senior notes to
      CELB.  

The note units and underlying perpetual senior notes of the
three entities will be guaranteed by their holding company,
Energisa S.A.  While the notes units' underlying securities are
separate, standalone indebtedness of each entity, the perpetual
senior notes are nondetachable and contain cross-default
provisions.  The notes are callable beginning 2011.

Fitch's rating reflects the combined credit quality of all three
issuers and their guarantor given the notes' cross-default
provision and nondetachable characteristics.  The rating is
supported by improving credit-protection measures at ENERGIPE,
SAELPA, and CELB, and on a consolidated basis, at ENERGISA,
which should continue to strengthen over the next year,
supported by projected growth in operating income and cash flow
and the reduction in annual debt service following the proposed
issuance.  The companies should also benefit from the improved
outlook for the Brazilian regulatory environment and sufficient
tariff adjustments.  Energisa operates in the regulated
distribution market with long-term contracts with generators.  
While regulatory risk remains an ongoing credit concern, the
current electric energy industry model is generally positive and
should support growth and stability in the sector.

The company is in the process of reorganizing its corporate
structure as required by the Brazilian New Industry Model Law,
which Fitch has incorporated into the rating.  Following the
reorganization expected to be completed by October 2006,
ENERGISA will have additional operating assets, including
Companhia Forca e Luz Cataguazes Leopoldina, as well as a small
portfolio of generation assets.  The inclusion of these
additional assets should not materially change the consolidated
credit protection measures or overall credit quality of the
guarantor, ENERGISA.

The credit profiles of ENERGISA, ENERGIPE, SAELPA, and CELB are
further supported on a combined basis by their large,
diversified and stable customer base.  Average consumption
growth in the service territories of the three operating
companies has exceeded the national average over the past three
years.  Future improvement in operating cash flow should also
benefit from improving operating efficiencies and a more
favorable economic environment.

Consolidated leverage at ENERGISA, as measured by debt-to-
EBITDA, is moderate at 2.8x and acceptable for the assigned
rating of the notes.  On a pro-forma basis, Energisa reported on
a consolidated basis total debt of US$712 million, including the
debt at the three issuing subsidiaries.  The proposed perpetual
bond issuance will materially reduce refinancing risk at the
companies, lower interest costs, and allow the group to delever
through near-term amortization of outstanding structured debt
and through further growth in EBITDA and equity.

ENERGISA is a holding company for the three electricity
distribution companies issuing the notes units, ENERGIPE,
SAELPA, and CELB.  The distribution companies serve
approximately 1.5 million customers distributing 4,351 GWh in
2005 in the Northeast Brazilian States of Sergipe and Paraiba.


GERDAU SA: Group Posts 13.2% Growth in First Quarter Sales
----------------------------------------------------------
The Gerdau Group reported a 13.2% increase in sales in the first
quarter of 2006 due to the recovery of the civil construction
sector in Brazil.

In the internal market, about 980 thousand metric tons of steel
products were sold compared to the 866 thousand in the same
period last year.  

Gerdau Group also increased its production of rolled products to
13.3%, reaching 1.1 million metric tons.

"Since February, Gerdau Group has made a commitment to lowering
the prices of its civil construction products that received
benefits from the reduction of the excise tax (IPI) in Brazil.  
The sector responded well and sales increased," said Frederico
Gerdau Johannpeter, the company's Senior Vice President.

Part of exports was redirected to respond to the increased
demand in the internal market.  About 627 thousand metric tons
were exported, which is 13.1% less than in the same period in
2005.

The economic growth of Argentina, Chile, Uruguay and Colombia,
where the Gerdau Group has operations, also had positive
repercussions on quarter sales.

A total of 335 thousand metric tons were sold -- a 116.7% boost
over the first quarter of 2005.  This performance also reflects
the consolidation of the units in Colombia aka Diaco and in
Argentina aka Sipar Gerdau, which was conducted in the end of
last year.

As a result, the production of rolled steel grew 127.6%, and
reached 287 thousand metric tons, while steel production
increased 110.2% up to 242 thousand metric tons.

In North America, sales increased 2.4%, reaching 1.7 million
metric tons, in response to the demands of the accelerated
activities in the regional market.  Steel production increased
from 1.6 million to 1.7 million metric tons -- a positive
variation of 4.1%.  

In the same period, the production of rolled products grew 1.0%,
and maintained the 1.6 million metric ton threshold.

In the first quarter of 2006, Gerdau Group also consolidated 40%
of the operations of the Spanish steel mill Corporacion Sidenor.  
Santander holds the other 40% and Spanish executives from
Sidenor controlled the remaining shares.  The company
contributed to the performance of Gerdau Group with the
production of 71 thousand metric tons of steel and 69 thousand
metric tons of rolled products.

Gerdau Group total sales volume increased 9.4%, totaling 3.7
million metric tons.  The production of rolled products
increased 14.1% and reached 3.0 million metric tons, while the
production of steel increased 5.8% and totaled 3.7 million
metric tons.

Global sales revenue reached US$3.0 billion -- a 17.2% increase.  
Exchange rate variation affected the results of Group Gerdau due
to the conversion of sales revenues obtained from exports and
operations outside Brazil, which account for 59.7% of sales
revenues.

Sales revenues in the Brazilian market accounted for 40.3% --
US$1.2 billion -- of total sales revenues, and exports from
Brazil represented 8.9%, about US$271 million.

In the same period, operations in the other South American
countries represented 8.1%, US$246.8 million, while the units in
North American contributed with 39.6% of sales revenues --
US$1.2 billion.  Sidenor's participation was 3.1% of the total,
about US$ 94.3 million.

Consolidated net profit in the first quarter was US$383.2
million, a 26.1% increase over the same period in 2005.

In this quarter, Gerdau Group invested US$424.4 million in
expansions of units and technological upgrades (52.6%) and in
the purchase of new assets (47.4%) in the Americas.

Investments in the technological upgrade and unit expansion
program totaled US$223.1 million.  

In Brazil, investments reached 163.6 million and included the
installation of a rolling mill at Gerdau Sao Paulo and the
expansion of the production capacity of Gerdau Acominas.  In
March, a melt shop, planned to respond to the demands of the
civil construction sector, started operations at Gerdau Sao
Paulo.

In the United States of America, the main investments were made
in the expansion of the production capacity of Gerdau Ameristeel
Jacksonville (Florida) and the upgrade of the units purchased in
2004.  Total investment in North American operations was US$44.4
million.

Some US$15.1 million were invested in the units in Argentina,
Chile, Colombia and Uruguay.

The amount invested in the purchase of assets was US$201.3
million and corresponded to the 40% participation in the capital
stock of Sidenor.

This year, Gerdau Group has taken a step further in the
improvement of its corporative governance.  On April 27, Gerdau
SA minority shareholders elected a representative for the Board
of Directors.  One of the seven elected members is now a
representative of the minority shareholders.

On May 25, the shareholders of the publicly listed companies in
Brazil will receive interest on own capital for the first
quarter of 2006 based on the position on May 15.  Metalurgica
Gerdau SA will pay US$44.3 million or US$0.24 per share, and
Gerdau SA about US$91.8 million or US$0.14 per share.

Metalurgica Gerdau SA had a net profit of US$155.2 million in
the period, which corresponds to US$1.25 per share.  Gerdau SA
had a net profit of US$313.0 million, US$0.70 per share.

The performance of shares of the companies of the Gerdau Group
in Brazil in the Sao Paulo Stock Exchange aka Bovespa remains
very positive.  The number of tradings of Metalurgica Gerdau SA
shares increased 24.2% in the first quarter of 2006 in
comparison with the same period in 2005, and reached 32,816.  
These tradings totaled US$506.4 million, a 38.6% increase.  
Average daily trading volume of preferred shares increased 83.0%
and reached US$7.5 million, against US$4.1 million in the first
quarter of 2005.

From January to March, Gerdau SA shares moved a total of US$1.2
billion, the same volume recorded in the first quarter of 2005.  
The number of trading reached 79,032.  Average daily trading
volume of preferred shares was US$18.3 million, the same amount
as in the first quarter of 2005.

Gerdau SA's ADRs moved US$1.5 billion in the New York Stock
Exchange aka NYSE, an increase of 105.1%.  This represented an
average daily trading volume of US$23.7 million in comparison
with US$ 11.8 million in the same period in 2005.  In the Madrid
Stock Exchange aka Latibex, EURO384.1 thousand were traded, an
increase of 110.1%.

The shares of Gerdau Ameristeel, the company responsible for
operations in North America, moved CAD297.5 million in the
Toronto Stock Exchange, an increase of 23.0%.  As a result,
average daily trading increased to CAD4.6 million.  In the NYSE,
the company shares moved US$214.1 million in the quarter, with
an average daily trading of US$3.5 million.

Gerdau Ameristeel net earnings totaled US$1.1 billion in the
quarter, an increase of 5.6%.  From January to March, net profit
reached US$87.3 million, and increase of 11.2%.

Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br-- produces and distributes crude steel
and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau SA's $600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.


GERDAU SA: Withdraws Authorization for Payment of Royalties
-----------------------------------------------------------
Gerdau S.A., in compliance with Regulation CVM no. 358 of
January 3, 2002, discloses that its Board of Directors in an
extraordinary meeting held on May 8, 2006, has decided to revoke
and render ineffective the authorization for the payment of
royalties for the use of the brand name Gerdau, granted on April
11, 2006, to the subsidiaries:

   -- Gerdau Acos Longos S.A.,
   -- Gerdau Acominas S.A.,
   -- Gerdau Acos Especiais S.A. and
   -- Gerdau Comercial de Acos S.A.,

through an agreement related to the usage of the aforementioned
brand name, held by Grupo Gerdau Empreendimentos LTDA., and
establishing a fee of 0.6% of the net revenue of the companies
listed above.

The decision of the Board of Directors of Gerdau S.A. confirmed
the procedure that approved the decision revoked as it is a
matter of competence of the Board of Directors.

The fee being revoked refers to the family name of the
controlling group that was licensed in 1996 to the then
Companhia Siderurgica da Guanabara - COSIGUA, which later
adopted the name and became Gerdau S.A.

There is no doubt as to the contribution of the Gerdau name and
the full dedication of the family to the strengthening of the
corporate image and the Gerdau brand.  The detailed valuation of
the Brand's value as presented by a world-renowned consulting
firm, has confirmed the importance of the name to the business
of the company.

The extraordinary meeting of the Board of Directors and the
deliberation mentioned above was called due to:

   a) The market's interpretation of the decision to pay
      royalties; and,

   b) The Company's growth strategy and participation in the
      consolidation of the steel business, nationally and
      internationally, in which the market capitalization is
      essential.

The Board of Directors in response to the recommendations of
market agents strongly reaffirms its belief that the Company
depends on the capital markets as one of its main sources for
growth.  It also confirms its policy to add value to its shares
and that of its subsidiaries with the present decision.

Gerdau S.A. also announces the decision by the controlling
family that the Company Grupo Gerdau Empreendimentos LTDA. will
transfer, free of charge, the property of the brand name to
Gerdau S.A.

Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br-- produces and distributes crude steel
and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau SA's $600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.


NOSSA CAIXA: Posts BRL175 Million First Quarter 2006 Earnings
-------------------------------------------------------------
Rubens Sardenberg -- chief financial officer of Banco Nossa
Caixa, Sao Paulo's state-run bank -- told reporters that the
bank's earnings reached BRL175 million in the first quarter of
2006 compared to BRL88.9 million in the first quarter 2005.

Business News Americas quoted Mr. Sardenberg saying that the net
profits had risen 96.6% in this year's quarter due to higher
lending and increased revenues from service fees.

BNamericas relates that Nossa Caixa's loan portfolio increased
23.1% to BRL6.5 billion from the first quarter 2005, and 5.7%
since the fourth quarter 2005.

Mr. Sardenberg told BNamericas, "We made no acquisitions,
neither other loan portfolios nor other banks.  It's the result
of the bank's own efforts."

BNamericas states that compared to 50.9% efficiency index in the
first quarter 2005, this year's quarter improved to 45.5%.

According to BNamericas, loans to individuals -- accounted for
74.1% of all lending -- was BRL4.8 billion, about 27% higher
year-on-year and 5.7% higher on quarter-on-quarter.  

BNamericas states that payroll loans reached BRL1.9 billion.  
Loans to businesses -- primarily SMEs -- was BRL1.7 billion, a
13.1% climb from that of the first quarter 2005 and 2.8% from
the fourth quarter 2005.

Service fees revenues had a 31% boost, arriving at BRL187
million.  A 20% growth in revenues from services fees had been
projected this year.  Mr. Sardenberg, however, said that maybe
it would reach 30%.

BNamericas reports that ROAE for the first quarter 2006 was
32.1%.  Nossa Caixa expects ROAE to be at least 20% for 2006.

Mr. Sardenberg informed BNamericas that sales of Nossa Caixa's
pension plans increased 121% to 125,500 subscribers compared to
56,900 in last year's first quarter.  

Nossa Caixa said in a statement that about 27% of all private
pension plan have been sold since October 2005, when the local
unit of Spanish insurer Mapfre assumed control of Nossa Caixa's
life insurance and private pension unit.  

BNamericas recalls that Mapfre acquired a 51% stake in Nossa
Caixa Seguros e Previdencia in May 2005 for BRL226 million.

Mr. Sarden revealed to BNamericas that the best-selling VGBL
plan -- the preferred pension plan for taxpayers who file the
simplified returns -- represented 75% of the entire unit's
private pension plan sales while the PGBL plan sales made up
25%.  PGBL is targeted at taxpayers who file itemized returns.

Net assets reached BRL34.8 billion in this year's quarter, a
12.1% boost from that of 2005, according to BNamericas.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposit rating to B1
from B2 with a positive outlook.

At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable outlook.

The action followed Moody's upgrade of Brazil's foreign currency
ceiling for deposits to B1, from B2, and the foreign currency
country ceiling for bonds and notes to Ba3, from B1. Moody's
said the country ceilings have a positive outlook.


* BRAZIL: Steel Exporters See China as Threat to Industry
---------------------------------------------------------
Brazil's steel exporters are threatened by China's rising steel
production and the possibility of it becoming a net exporter,
Pres. Luiz Andre Rico Vicente of the Brazilian Steel Institute
told Reuters.

Reuters reports that China is the world's largest steel
producer, accounting for 31% of world crude steel production in
2005.  While, Brazil is number 9 worldwide accounting for 2.8%
percent.  In the period 2000 to 2005, China's production rose
30% to about 350 million tons.

Brazil greatly depends on its exports due to its stagnated
domestic demand.  The country has shipped 43% percent of its
31.6 million ton steel production in 2005, Reuters says.

According to McKinsey, an international consultant, Mr. Vicente
said that China's net deficit of 10 million tons in 2004 is
forecasted to be converted to 35 million tons of surplus of
steel products by 2010, Reuters relates.

According to Reuters, with these findings, China has a high
probability of becoming an important indirect exporter of steel
in:

   -- construction materials,
   -- machinery and
   -- automotive parts.

However, Ruy Lopes Filho, Gerdau's vice-president for strategic
projects, told Reuters that as China's economy grows strong, so
will its demand to import crude steel.

"It's a massive consumer and will keep world demand growing by
about 5 percent a year," Mr. Filho told Reuters after addressing
the Latin American Steel Conference in Rio de Janeiro.  "I see
China as an opportunity but as its production capacity grows it
could become an export threat," he was quoted as saying.

Mr. Filho also told Reuters that demand for steel slabs is
rising and a possible price increase of 10 to 20 percent is
possible in 2006.

In another event, Pres. Roger Agnelli of Companhia Vale do Rio
Doce or CVRD told reporters that "China consumed a record amount
of iron ore in March."

Mr. Agnelli observed thatChina's demand for raw material of
steel rose 28% in 2006 compared to demand of last year.  "We are
producing a record amount and selling it all which shows strong
demand," he told Reuters.

With growing concern over China's rising power in the world
steel market, Mr. Vicente appealed to the Brazilian government
to reduce taxes for domestic steel producers, asking for similar
levels with its competitors, Reuters relates.

In the conference, Mr. Vicente addressed the government that it
should:

   -- weaken the country's real currency that has strengthened
      due to Pres. Lula's ascendancy in October 2002;

   -- further cut interest rates; and

   -- increase public and private investments;

so as to establish a more competitive Brazil, Reuters reports.

                        *    *    *

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  




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


AERCAP A BORDEAUX: Creditors Must File Proofs of Claim by May 25
----------------------------------------------------------------
Creditors of Aercap A Bordeaux limited -- fka Debis Airfinance A
Bordeaux Limited, a company undergoing voluntarily wind up --
are required to present proofs of claim on or before May 25,
2006, to Sean Brennan, 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 began liquidating assets on March 31, 2006.

The liquidators can be reached at:

            Sean Brennan
            c/o Maples and Calder, Attorneys-at-law
            P.O. Box 309GT, Ugland House
            South Church Street, George Town
            Grand Cayman, Cayman Islands


AERCAP CORVO: Sets May 25 Deadline for Proofs of Claim Filing
-------------------------------------------------------------
Creditors of Aercap Corvo Limited -- fka Debis Airfinance Corvo
Limited -- are required to prove their claims to Sean Brennan,
the company's liquidator, on or before May 25, 2006, or be
excluded from receiving any distribution or payment that the
company will make.

Creditors are required to send by May 25 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 31, 2006.

The liquidator can be reached at:

         Sean Brennan
         c/o Maples and Calder, Attorneys-at-law
         P.O. Box 309GT, Ugland House
         South Church Street, George Town
         Grand Cayman, Cayman Islands


ASSET FINANCE: Last Day for Proofs of Claim Filing Is on May 25
---------------------------------------------------------------
Creditors of Asset Finance Cayman Limited are required to prove
their claims to Sean Brennan, the company's liquidators, on or
before May 25, 2006, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send by May 25 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 began liquidating assets on March 31, 2006.

The liquidator can be reached at:

         Sean Brennan
         c/o Maples and Calder, Attorneys-at-law
         P.O. Box 309GT, Ugland House
         South Church Street, George Town
         Grand Cayman, Cayman Islands


PANTEL HOLDINGS: Proofs of Claim Must be Filed by May 18
--------------------------------------------------------
Creditors of Pantel 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 began 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


YANKEE BRAVO: Proofs of Claim Filing Ends on May 18
---------------------------------------------------
Creditors of Yankee Bravo Aviation Limited are required to prove
their claims to Terry W. Carson and Roy Welsby, 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 April 6, 2006.

The liquidators can be reached at:

         Terry W. Carson
         Roy Welsby
         PO Box 1044, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-8588
         Fax: (345) 949-7325




=========
C H I L E
=========


AES CORP: Exercises Option to Extend Credit Facility to US$600M
---------------------------------------------------------------
AES Corp. used its option to increase its senior unsecured
credit facility by US$100 million to US$600 million, Dow Jones
Newswires reports.

AES said in a filing with the U.S. Securities and Exchange
Commission that the credit facility is to be used for:

   -- general corporate purposes;

   -- the provision of letters of credit to support its
      investment; and

   -- the funding for equity portion of its investment in AES
      Maritza East 1, which is a coal-fired generation project
      that is expected  to start construction this year.

The credit pact, approved on March 31, was initially US$500
million.

The company also stated in its filing that it has redeemed every
outstanding 8.875% senior subordinated debentures due 2027 with
an aggregate principal amount of US$115 million, Dow Jones says.

AES also disclosed having redeemed the debentures under the
optional redemption provisions of the indenture and at a price
equal to:

   -- 100% of the principal amount;

   -- plus a make-whole premium of US$35 million that was
      determined in agreement with the indenture terms;

   -- plus accrued and unpaid interest up to the redemption
      date.

AES Corporation -- http://www.aes.com/-- is a global power
company.  The Company operates in South America, Europe, Africa,
Asia and the Caribbean countries.  Generating 44,000 megawatts
of electricity through 124 power facilities, the Company
delivers electricity through 15 distribution companies.

AES's Latin America business group is comprised of generation
plants and electric utilities in Argentina, Brazil, Chile,
Colombia, Dominican Republic, El Salvador, Panama and Venezuela.
Fuels include biomass, diesel, coal, gas and hydro.  The group
also pursues business development activities in the region.  AES
has been in the region since May 1993, when it acquired the CTSN
power plant in Argentina.

                         *     *     *

As reported in the Troubled Company Reporter on March 31,
Standard & Poor's Ratings Services raised its corporate credit
rating on diversified energy company The AES Corp. to 'BB-' from
'B+'.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, Moody's
affirmed the ratings of The AES Corporation, including its Ba3
Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.




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


BANCOLOMBIA: Reports Unconsolidated Net Income of Ps280 Billion
---------------------------------------------------------------
Bancolombia reported accumulated unconsolidated net income of Ps
280 billion as of April 30, 2006.  For the first four months of
2006, the total net interest income, including investment
securities, amounted to Ps 398 billion.  Additionally, total net
fees and income from services amounted to Ps179 billion.
    
Total assets amounted to Ps24.12 trillion in April 2006, total
deposits totaled Ps13.87 trillion, and Bancolombia's total
shareholders' equity amounted to Ps3.03 trillion.
    
Bancolombia's (unconsolidated) level of past due loans as a
percentage of total loans was 2.75% as of April 30, 2006, and
the level of allowance for past due loans was 138.82%.
    
                        Market Share
    
According to ASOBANCARIA, Colombia's national banking
association, Bancolombia's market share of the Colombian
Financial System in April 2006, was:

   -- 17.0% of total deposits,
   -- 20.4% of total net loans,
   -- 16.3% of total savings accounts,
   -- 20.7% of total checking accounts and
   -- 15.0% of total time deposits.

                        *    *    *

The Troubled Company Reporter - Latin America reported on April
28, 2006, that Moody's Investors Service upgraded Bancolombia's
bank financial strength ratings to D+ from D with a stable
outlook.

Moody's added that the action concludes the review for possible
upgrade that was announced on October 13, 2005.  Moreover,
Bancolombia's Ba3/Not Prime long- and short-term foreign
currency deposit ratings were affirmed.  Moody's said the
outlook on all ratings is stable.

                        *    *    *

On Dec. 22, 2005, Fitch Ratings affirmed the ratings assigned to
Bancolombia, as:


  -- Long-term/short-term foreign currency at 'BB/B';
  -- Long-term/short-term local currency at 'BBB-/F3';
  -- Individual at 'C';
  -- Support at '3'.

The ratings assigned to Bancolombia and subsidiaries reflected
its dominant Colombian franchise, sound asset quality, and solid
performance, which should be further strengthened by the recent
merger with Conavi and Corfinsura and, in turn, boost capital,
which weakened with the merger.  The ratings also factor in the
challenges posed by operational integration, its high exposure
to the Colombian government, and the risks inherent in its
operating environment.




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


* CUBA: Inks Oil Collaboration Accord with Venezuela
----------------------------------------------------
Cuba signed a collaboration agreement with Venezuela for oil
exploration and production, official sources told Prensa Latina.

Prensa Latina relates that the agreement was signed after a two-
day intensive technical exchange between professionals and
executives of Cuba-Petroleo aka CUPET and Venezuela's Petroleos
de Venezuela aka PDVSA in Havana on May 11 and on May 12, 2006.

According to Granma Daily, the deal includes:

     -- main guidelines,
     -- short-term projects, and
     -- mid-term projects.

Granma states that the projects would be jointly carried out by
Cuba and Venezuela.

The agreement also ratifies that common interest in
strengthening and promoting future actions to broaden bilateral
oil cooperation, Granma relates.

Prensa Latina reports that the agreement is part of the
Bolivarian Alternative for the Americas aka ALBA of Cuba,
Venezuela and Bolivia.

As reported in the Troubled Company Reporter on May 2, 2006,
Cuba's President Fidel Castro formed the Bolivarian Alternative
for the Americas trade bloc with Bolivia's President Evo Morales
and Venezuela's Hugo Chavez on Saturday.

The Associated Press relates that the Bolivarian Alternative for
the Americas is a trade bloc that rejects the US Free Trade
Agreement, promising a socialist version of regional commerce
and cooperation.

Under the trade bloc, Cuba will send doctors to Bolivia to
provide medical care to poor people, and teachers to conduct
literacy campaigns, while Venezuela will supply gasoline to
Bolivia and provide US$100 million for development programs and
US$30 million for other social projects, AP states.

                        *    *    *

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




=============
E C U A D O R
=============


* ECUADOR: Will Not Have Free Trade Agreement with US
-----------------------------------------------------
The government of Ecuador did not reach an agreement with the
United States regarding a free trade, Prensa Latina reports.

"There is no willingness from Washington or Ecuador to renew the
FTA talks suspended since the end of March," Manuel Chiriboga,
the national negotiator chief, told Prensa Latina.

According to Prensa Latina, Mr. Chiriboga claimed that the US
committed frauds.  He recalled changes that appeared in the FTA
text reached between Bogota and Washington.

Prensa Latina states that there are some differences and changes
between the FTA text written in Spanish and the FTA text in
Spanish, frustrating Mr. Chiriboga.

The negotiator told Prensa Latina that he would decide on Monday
whether he would continue presiding the negotiating team.

As reported in the Troubled Company Reporter on April 24, 2006,
Ecuador was trying to come up with a way to advance the free
trade deal with US that was stalled due to the new oil tax law
designed to cut into foreign windfall crude profits.  The US
firms in Ecuador rejected the new law, which authorizes the
redistribution of oil profits due to the high oil prices.  The
US government, siding with the firms, stopped FTA negotiations
on services and environment.

                        *    *    *

Fitch Ratings assigned these ratings on Ecuador:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-      Aug. 29, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005




=============
G R E N A D A
=============


AIR JAMAICA: Adds More Flights to Grenada Starting June 25
----------------------------------------------------------
Air Jamaica will increase its flights to Grenada starting
June 25, 2006, the Granada Broadcasting Network reports.

George de Mercado, the senior executive of Air Jamaica, informed
GBN that the additional flight will use a leased Boeing 757
aircraft and will operate seasonally starting June 25 until
Sept. 10, 2006.

GBN adds that JM 94 -- currently operating on Tuesdays,
Wednesdays, Fridays and Saturdays -- will have an additional
Thursday departure.

According to GBN, Air Jamaica already has a non-stop schedule
from four to five flights a week to and from New York's JFK
International Airport.

As reported in the Troubled Company Reporter on Jan 3, 2006, Air
Jamaica had planned to increase weekly flights to Grenada from
New York beginning Feb. 23, as part of an effort to boost
tourism.

The Associated Press recalls that Air Jamaica suspended service
in March to Grenada, Barbados and St. Lucia, in an attempt to
recover from losses due to higher fuel costs and a drop in
passengers after the Sep. 11 attacks.  The flights to the
islands were however resumed.

Mr. Mercado was quoted by GBN saying that the New York-Grenada
route continues to perform well, mainly due to the loyalty of
Grenadians to a Caribbean carrier and an award-winning in-flight
experience.

"The partnership between Grenada and Air Jamaica has been
mutually beneficial and we look forward to strengthening our
relationship during what we expect will be an exceptionally busy
summer period," Mr. Mercado told GBN.

GBN reveals this current schedule:

    -- 10:30 a.m., all flights departure from New York's JFK
        airport,

    -- 3:10 p.m., arrival in Grenada,

    -- 4:00 p.m., JM 95's departure from Grenada, and

    -- 8:50 p.m., JM 95's arrival in New York.

                        *    *    *

Air Jamaica's US$200 million 9-3/8% notes due July 18, 2015,
carries Moody's B1 rating and Standard & Poor's B rating.




===============
H O N D U R A S
===============


* HONDURAS: IMF Worries for State Companies ENEE & Hondutel
-----------------------------------------------------------
The International Monetary Fund is worried about the financial
situations of state telephone company Hondutel and state
electricity firm ENEE aka Empresa Nacional de Energia Electrica,
El Heraldo reports.

El Heraldo recalls that measures have been adopted to solve the
crisis of ENEE, but results have not been satisfactory.  IMF
questioned why the price rates remained the same since 2000.

As of Hondutel, losing its monopoly on the international long
distance market on Dec. 25 as stipulated in the 1995
telecommunications law would mean greater competition and a
foreseeable loss of almost HNL750 million this year, El Heraldo
relates.

IMF proposed to raise the local phone call rates and reduce
salary expenditures, according to El Heraldo.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date
                     ------     -----------
   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998


* HONDURAS: 40 Firms Interested in Accord to Supply Fuel
--------------------------------------------------------
Between 25 and 40 firms have expressed interest in participating
in an international bidding process to supply Honduras with
fuel, Robert Meyeringh, an American consultant, told La Tribuna.

La Tribuna relates that Mr. Meyeringh was hired by the
government of Honduras to facilitate the international bidding.

According to La Tribuna, companies from these countries have
shown interest to bid:

     -- United States,
     -- Venezuela,
     -- Chile,
     -- Colombia,
     -- Ecuador,
     -- Africa, and
     -- Europe.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date
                     ------     -----------
   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998




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


KAISER ALUMINUM: Releases First Quarter 2006 Financial Results
--------------------------------------------------------------
Kaiser Aluminum Corporation reported net income of US $38.4
million for the quarter ended March 31, 2006, compared to US$8.3
million for the same period in 2005, driven by strong broad
based demand for fabricated aluminum products, particularly in
the aerospace and high strength products.

Net sales for the first quarter reached US$336.3 million, up 20%
from the same period in 2005 when the company reported net sales
of US$281.4 million.  The improvement is attributed to an 11%
increase in average realized prices, primarily reflecting higher
underlying aluminum prices, and a 7% increase in shipments.

Operating income in the fabricated products division reached
US$45.0 million for the first quarter of 2006, compared to
US$25.4 million for the first quarter of 2005.  Approximately
US$7 million of the improvement was driven by the higher sales
volume led by the aerospace sector, where shipments improved by
28% as compared to the first quarter of 2005.  The increase also
reflects improved cost performance as a result of ongoing
efficiency efforts.  The strong cost performance offset
approximately US$4 million of higher natural gas and energy
prices in the first quarter of 2006 as compared to 2005.  First
quarter 2006 results also benefited from lower than normal major
maintenance spending, improved scrap metal utilization and scrap
spreads, and approximately US$9 million of "metal profits"
related to the rising price of primary aluminum.

Third-party net sales of primary aluminum in the first quarter
of 2006 increased 31 percent over the first quarter of 2005
primarily as a result of a 26 percent increase in third-party
realized prices and a 2 percent increase in shipments.  However,
earnings from the primary aluminum segment in 2006 only
increased to US$8.7 million, as compared to US$2.8 million for
the same period in 2005 as previously installed price risk-
management activities had the effect of capping the benefit of
the primary aluminum price increase.  First quarter 2006 results
also include unrealized mark-to-market gains of approximately
US$4 million on hedging instruments while first quarter 2005
results included mark-to-market losses of approximately US$2
million.

"Favorable market conditions are broad based and look to be
sustainable in the near term.  At the same time our first
quarter operating income reflects more than US$15 million of
reported income from non-run-rate benefits such as metal
profits, mark-to-market gains, and lower major maintenance
costs," said Jack A. Hockema, president and CEO of Kaiser
Aluminum.

"Even discounting the non-run-rate benefits, the results for the
first quarter were very strong.  While our markets are cyclical,
we look forward to cushioning any negative impact of future
downturns with new plate capacity projects and underlying new
business such as the previously announced Airbus and Boeing
sales agreements," added Hockema.

The company's second amended plan of reorganization (POR) was
accepted by all classes of creditors entitled to vote on it and,
on February 8, 2006, the POR was confirmed by the U.S.
Bankruptcy Court for the District of Delaware.  The confirmation
order remains subject to motions for review and appeals filed by
certain insurers and must still be adopted or affirmed by the
United States District Court.  Other significant conditions to
emergence include completion of the company's exit financing,
listing of the new common stock on the NASDAQ stock market and
formation of certain trusts for the benefit of different groups
of tort claimants.  As provided in the POR, once the Bankruptcy
Court's confirmation order is adopted or affirmed by the
District Court, even if the affirmation order is appealed, the
company can proceed to emerge if the District Court does not
stay its order adopting or affirming the confirmation order and
the key constituents in the Chapter 11 proceedings agree.  
Assuming the court adopts or affirms the confirmation order, the
company believes that it is possible that it will emerge during
the second quarter of 2006 or early in the third quarter of
2006.  No assurances can be given that the Bankruptcy Court's
confirmation order will ultimately be adopted or affirmed by the
District Court.

A full-text copy of Kaiser's First Quarter 2006 Report is
available for free at:

            http://researcharchives.com/t/s?919

                 About Kaiser Aluminum

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.  (Kaiser Bankruptcy
News, Issue No. 94; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


NCB JAMAICA: Earns J$2.4 Billion for Quarter Ended Mar. 31
----------------------------------------------------------
The National Commercial Bank of Jamaica recorded a net profit of
J$2.4 billion for the six months ended March 31, 2006, which
represented an increase of J$807 million or 52% compared to the
corresponding period of the previous year.

Net interest income for the six months, was higher than the
similar period last year by J$927 million or 19% mainly due to a
J$636 million or 21% increase in loan income and a J$296 million
or 4% increase in securities income.

Net trading income decreased by J$610 million or 38% compared to
March 2005, which was largely due to the stock market decline,
as the foreign exchange and fixed income securities activity
remained stable.

The bank, however, continues to grow fee and commission income,
which increased by J$346 million or 30%.

                     Operating Expenses

Operating expenses for the six months totaled J$5.4 billion, a
decrease of J$411 million or 7% compared to the six months ended
March 31, 2005.  The operating expenses for the comparative
prior year included the impairment loss on the investment in
Dyoll Group Limited of J$535.8 million.  There is no similar
provision in the expenses for the current period under review.  
Staff costs for the six months increased by J$226 million or 8%,
while other operating expenses were below the corresponding
prior period by J$158 million or 8%.

                        Asset Base

The total asset base of the Group increased by J$12.9 billion or
7%, moving from J$193.8 billion at September 30, 2005, to
J$206.8 billion at March 31, 2006.  The major increases in the
bank's asset base were investment securities which grew by
J$11.2 billion or 12% and loans and advances by J$2.7 billion or
8%.

                       Loan Portfolio

Loans and advances totaled J$38.4 billion at March 31, 2006,
compared to J$35.7 billion at September 30, 2005.  The aggregate
amount of non-performing loans amounted to J$1.62 billion and
represented 4% of the gross loans compared to 4.3% at September
30, 2005, and 3.9% at March 31, 2005.

At March 31, 2006, the accumulated provision for credit losses
of J$2.2 billion represented an overall coverage of 138% of non-
performing loans.  Provisions for credit losses that exceed the
amounts required by International Financial Reporting Standards
are credited to a non-distributable Loan Loss Reserve.  At March
31, 2006, the balance in the Loan Loss Reserve was J$246.1
million.  The Bank's provisioning policy is in compliance with
the Bank of Jamaica regulations.

                          Funding

On March 22, 2006, the bank raised US$100 million in structured
financing backed by the securitisation of Diversified Payment
Rights arising under its existing and future U.S dollar Payment
Advice and Payment Order (MT 100 Series) and U.S dollar
Remittances.  Interest is due and payable on a quarterly basis
calculated at three month US dollar LIBOR plus 180 basis points
beginning June 15, 2006.  Principal repayments will commence
June 15, 2008, on a quarterly basis until maturity March 15,
2013.

                           Capital

The Group's total stockholder's equity at March 31, 2006, was
J$22.6 billion, an increase of J$1.4 billion or 7% when compared
to September 30, 2005 mainly due to the continued increase in
the bank's retained earnings.  At March 31, 2006, the Risk-based
Capital Ratio was 16.96% which exceeds the minimum requirement
of 10% by the Bank of Jamaica.

                        *    *    *

As reported on Feb. 13, 2006, Fitch initiated rating coverage on
the National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency.  Other ratings
assigned by Fitch are:

   -- Long-term local currency 'B+';
   -- Short-term foreign currency 'B';
   -- Short-term local currency 'B';
   -- Individual 'D';
   -- Support '4'.

Fitch said the ratings have a stable outlook.

These ratings reflect NCBJ's dominant domestic franchise,
adequate profitability and capital levels, which are tempered by
the bank's high exposure to the sovereign -- 65% of assets at
end-Sept 2005 -- and lack of revenue diversification, as well as
a constraining operating environment.

The long- and short-term ratings, along with the Stable Rating
Outlook, are in line with Fitch's view of the creditworthiness
of the Jamaican government.  Future rating movements will be
highly contingent upon a change in this view given NCBJ's
sizeable sovereign exposure and the low level of current
ratings.  Improvements in the Individual rating will be
contingent upon further diversification of NCBJ's balance sheet
while sustaining current profitability, asset quality and
capital levels.

Established in 1837, NCBJ is the second largest bank in the
system with market shares of loans and deposits of 29.1% and
35.1%, respectively, at the end of Sep. 2005.  NCBJ boasts the
largest network in Jamaica with 47 branches and 130 ATMs at end-
Sept. 2005 and offers banking services to all market segments,
as well as an array of specialized financial services through
subsidiaries.

During the last banking crisis, NCBJ was intervened on by the
government, which injected JMD19.5 billion in bonds to clean the
balance sheet and restore capital.  In 2002, a majority stake in
the bank was sold to Advantage Investment Corporation -- one of
Canada's largest privately held mutual fund management company.




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COMISION FEDERAL: Inks Accord with Sonora for Thermo Plant Site
---------------------------------------------------------------
A spokesperson of CFE aka Comision Federal de Electricidad, the
state electric power firm of Mexico, told Business News Americas
that the company reached an agreement with the state government
of Sonora regarding the venue of the 535MW Agua Prieta II
combined cycle and solar hybrid power generation project.

The spokesperson informed BNamericas that the project will be
located on the 100 hectare of municipal airport lands at Agua
Prieta as Sonora will build a new airport.

About 60 hectares will be used for the solar part of the
project.  The other 40 hectares will be used for the combined
cycle plant and a substation, the spokesperson revealed to
BNamericas.

CFE plans to tender the project construction in the second half
of 2006.  The start of construction will be in the first quarter
of 2007 while operations in the northern hemisphere will be in
summer 2009, BNamericas reports.

                        *    *    *

CFE is a state-owned integrated power company that dominates
generation, transmission and distribution in Mexico.  It has
20.6 million clients, 39,182km of transmission infrastructure,
156,647MVA transformation capacity and 163 generation plants
that at end-March 2003 had 40,350MW combined capacity.  Seventy-
five per cent of sales are direct to the client, 24.5% are to
Mexico City distributor Luz y Fuerza del Centro and the
remaining 0.5% are exports.  The industrial sector accounts for
61% of direct sales, followed by residential (23%), commercial
(7%), agriculture (5%) and services (4%).

The company incurred increasing losses for 2003 and 2004.  CFE
incurred MXN6.2 billion loss in 2003, and MXN119 billion loss in
2004.


GRUPO MEXICO: Posts 22.4% Increased in EBITDA for First Quarter
---------------------------------------------------------------
Grupo Mexico, S.A. de C.V., reported its results corresponding
to the first quarter and the three months ended March 31, 2006,
and 2005.

Consolidated sales in the first quarter 2006 were US$1,328.6
million, 6.6% higher than sales in the first quarter 2005,
notwithstanding that Asarco contributed with US$160 million
during the first quarter 2005, providing 22% if the company
harmonizes both quarters.

EBITDA in the first quarter 2006 increased 22.4% compared with
that of the first quarter 2005, reaching US$759.2 million.  
EBITDA's margin for 1Q06 was 57.1% compared with 49.8% the
previous year which included US$16 million corresponding to
Asarco.

Consolidated operating profit in the first quarter of 2006
increased US$139.7 million -- 26.1% higher than the one
registered in the first quarter 2005.  The previous increment
can be partly explained due to higher metals' prices and a
continuous cost control process -- essential in the commodities
sector.

A 32.1% increase in consolidated net profit in the first quarter
2006 compared with the same period of the previous year,
reaching US$331.0 million.

In the first quarter of 20006, capital investments were US$154.9
million -- 12.8% higher than investments in the first quarter
2005.  These resources were mainly used to modernize the copper
smelter in Ilo, Peru, and the mining and metallurgical units as
well as for the Railroad Division's new infrastructure and
provision of equipment, which will enable larger production and
movement of freight volumes.

On Jan. 1, 2006, Southern Copper aka SCC adopted the EITF
consensus 04-06 "Accounting for Stripping Costs Incurred during
Production in the Mining Industry", which states that stripping
costs incurred during the production phase of a mine are
production costs that should be included in the costs of the
production extraction during the period that the stripping costs
are incurred.  In connection with the adoption of this
accounting principle, effective Jan. 1, 2006, SCC reversed
US$499.5 million on net cumulative capitalized stripping costs
and capitalized leaching and recorded a net charge of US$317.0
million to retained earnings and tax benefit of US$182.5
million.

During the first quarter 2006, US$24 million additional were
recorded as cost production than the one registered in the first
quarter 2005, due to the new accounting principles, that no
longer allow capitalized stripping and capitalized leaching
costs to be differed in the years of the corresponding
production.

In the first quarter 2006, in the railroad transportation
sector, volumes transported increased 39.6% compared with the
same period in 2005, achieving a 71% increment in sales when the
same periods are compared.  The reason for this is the increase
in volumes transported, the acquisition of Ferrosur, better
exchange rate peso-dollar, and the fact that Grupo Mexico was
able to transfer part of the big hike in diesel prices to the
clients.

In the first quarter 2006, ITM's EBITDA reached US$88.2 million
compared to US$53.2 million in the first quarter 2005 -- about
65.8% higher.

Ferrosur was acquired by ITF, a subsidiary of ITM, in order to
offer users a seamless service that covers a larger part of the
national territory.  On the other hand, given the economy of
scale characterizing the railroad service, important synergies
will be obtained to provide a more competitive service to
clients.  The Federal Antitrust Commission was notified in time
and in the correct manner, to comply with the regulations in
force.  The company is currently waiting for the authorities'
response.

In the first quarter of 2006, Grupo Mexico paid a dividend to
its shareholders equal to MXN0.60 per outstanding stock shares.

On April 28, 2006, the board of directors authorized a dividend
of MXN0.60 per share to be paid on May 17, 2006.

Grupo Mexico's total debt on Dec. 31, 2005, is US$1,705.3
million with a cash and bank balance of US$1,349.5 million,
which equals a net debt of US$355.8 million.

The financial cost of the first quarter of 2006 was US$39.2
million -- 23.9% lower than the same quarter in 2005, due to an
important reduction in the group's liabilities as well as better
interest rate terms.

On Jan. 31, 2006, Ferrosur signed a bridge loan with BBVA
Bancomer and Banamex in Mexican pesos equivalent to US$183
million with maturity Jan. 15, 2007, at an interest rate of TIIE
28 days plus a variable margin of 0.15% to 1.0% payable monthly.  
ITM constituted as guarantor of the loan agreement.  The funds
were used to prepay a US$150 million syndicated loan, the
remaining US$33 million was used for the acquisition of 21
locomotives and 583 cars of railroad with a value of US$40.2
million -- including value added tax -- the differential was
paid with own resources generated by the operation.

Ferrosur's debt on March 31, 2006, was US$184.0 million with a
cash and bank balance of US$17.8 million, which equals a net
debt of US$166.2 million.  It does not consolidate in the Group
because it is under the method of participation.

                       Metals' market

The acute demand of commodities continues, particularly among
the world's leading economies -- China, US, Japan and Europe.  
Los global inventories, bottlenecks in the refining stage,
distortions due to strikes, lower mineral grades, and a strong
demand by investment funds, are the reasons for the recent rise
in metal prices.

The average copper price rose 53.5%, compared to the first
quarter 2005.  Zinc rose 70.3%, silver 38.8% and gold 29.7%.  On
the other hand, the price of molybdenum, the main product of
Grupo Mexico, dropped 26.9% compared to the first quarter last
year.

                       Metal Production

Total sales in the first quarter 2006 were US$1,121.3 million,
reaching an 18.5% increment with respect to the same period in
2005.

Copper production diminished slightly by 0.7% to 160,564 copper
tons in the first quarter of 2006, compared to the same period
in 2005.  This drop is due to a reduction 4,892 tons in Mexican
mines that were affected by the illegal work stoppages at La
Caridad mine, in Sonora, and the San Martin mine in Zacatecas,
as well as to an increase in milled ore and an improvement in
the percentages of copper recuperation in the Peru mines, which
produced 3,707 more tons than in the first quarter of 2005.

In the first quarter of 2006, molybdenum production dropped by
551 tons, that is, 13.7% compared to the same period of 2005.  
This was due to a 362 tons reduction in the Peruvian mines, the
reason being a lower ore grade and the recovery of the
molybdenum plant in Cuajone, as well as 189 tons at La Caridad
mine in Mexico, because of a lower ore grade.

Zinc production represented 34,592 tons in the first quarter
2006, compared with 34,707 tons in the same period of 2005.  In
January 2006 a fire broke out in the power system of the
rectifier transformers located at the center of the zinc
refinery in San Luis Potosi.  The plant was shut down.  Grupo
Mexico hopes to restore 50% of the plant's production in the
second quarter and the other 50% in this year's third quarter.  
Currently, zinc concentrates are being sold.  Because of an over
demand of zinc concentrates in the market, the company has
obtained highly favorable terms in zinc concentrate sales.  The
result of the accident is expected to be positive for SCC.

Consolidated operating profit was US$632.7 million in the first
quarter 2006, 34.2% higher than that reached in the same period
of the previous year.

Net profit in the first quarter this year was US$421.6 million,
an increment of US$123.2 million over that of 2005.  This
improvement in the firm's profits is due in part to better
prices of metal.  The company has focused on cost control and it
expects 2006 will provide the company with another year of
excellent earnings.  However, Grupo Mexico has suffered some
losses due to work stoppages in some of its Mexican mines and
plants in the year's first quarter.  In fact the stoppages
continue to date at La Caridad mine in Sonora, and in the San
Martin mine in Zacatecas.  Even though these stoppages are
illegal, Grupo Mexico has been forced to declare Force Majeure
in some of its commercial contracts.  The company is currently
working with the Mexican authorities in order to resolve these
illegal work stoppages.

The modernization program at the Ilo smelter proceeds according
to the original timelines.  The company estimates that the
project will be finished in December 2006.  The anode plant was
finished in the first quarter of this year, and the blister
copper production has been replaced by copper anodes.  In March
31, 2006, work at the smelter project has progressed by 76%.  In
addition, the project to dump, crush and haul by conveyor belts
is already operating at the Toquepala mine.  The main crusher
and the conveyor belt system is functioning according to the
project's design.  Construction of the ramp for leachable
material will continue, until it is finished in the third
quarter of 2006.  This project is 95.7% finished.  Grupo Mexico
is going to expand production of leached copper cathodes aka SX-
EW in Cananea, with a new plant that will have a capacity of
32,800 metric copper tons a year.  As a result of the company's
evaluations, it was concluded that this plant would provide a
better return on investment than the two-stage expansion
previously considered.  The bidding for basic engineering is
currently in process.  Moreover, a crushing, haulage and
dispersion system is also at the basic engineering state.

The transport division is represented by the subsidiary
Infraestructura y Transportes Mexico aka ITM, being the main
subsidiary Ferrocarril Mexicano aka Ferromex, in addition
Intermodal Mexico and Texas Pacific.  On Nov. 24, 2005, ITM
acquired the railway subsidiary Ferrosur, S.A. de C.V.

The average exchange rate in the first quarter of 2006 was
US$10.5871, compared with US$11.1833 in the same period of 2005.  
This shows a 5.3% improvement.

Revenues earned for services provided rose 71.0% from US$159.3
million in the first quarter 2005 to US$272.5 million in the
first quarter 2006.  This was due to the 39.6% increment in net
tons-km transported, going from 7,755 million in the first
quarter 2005 to 10,828 million in the first quarter 2006,
together with better rates and at a better exchange rate, and
the acquisition of Ferrosur.

Sales' costs in the first quarter 2006 rose 76.0% with respect
to the first quarter 2005, from US$96.8 million to US$170.4
million.  The main reasons for the increment are hikes in labor,
due to a larger number of travel values, the wage increase to
offset inflation and the peso's revaluation against the dollar,
as well as a rise in diesel prices, which went up 15.4% from
36.7 to 42.4 USD cents in the first quarter 2006.

EBITDA of the first quarter this year increased 65.8% from
US$53.2 million in the first quarter last year to US$88.2
million.  EBITDA's margin for the first quarter of 2006 was
32.4%.

Operating profit in the first quarter 2006 reached US$60.6
million and was 68.4% higher than that of the first quarter 2005
despite a significant hike in diesel cost, the main product
consumed in railroad operations.  Net profit in the first
quarter of 2006 was U$29.6 million, 81.5% higher than that of
the same period in 2005.

In March 31, 2006, ITM's total debt was US$616.1 million with a
cash and bank balance of US$207.1 million, which equals a net
debt of US$409.0 million.

In accordance with SFASB 141 Accounting Principle, it is
necessary to have the Federal Antitrust Commission's final
authorization before Grupo Mexico can carry out this business
integration.  As long as authorization remains pending,
investments in Ferrosur will be presented valued under the
method of participation in Grupo Mexico's consolidated financial
statements.

Grupo Mexico hopes to obtain the Federal Antitrust Commissions'
authorization in the coming months, considering that this
operation does not exceed the pre-established indexes in freight
transport, and allows broader competition among railroad lines
by preventing unnecessary movements in storage, interconnection
and double classification of trains, etc., which will allow
better prices and terms for the company's clients.  This
transaction will produce important synergies that will improve
the firm's operating and financial margins even more.

There is now access and interconnection with the Manzanillo and
Veracruz ports.  Grupo Mexico now has the railroad network to
connect southern Mexico with the country's northern states and
the various border points with the US.  It will provide
competitive access to the company's clients from the central-
Pacific part of the country to the Gulf of Mexico and the port
of Veracruz.

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.


J.L. FRENCH: Panel Hires Giuliani Capital as Financial Advisors
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave the
Official Committee of Unsecured Creditors of J.L. French
Automotive Castings, Inc., and its debtor-affiliates permission
to employ Giuliani Capital Advisors LLC as its financial
advisors, nunc pro tunc to Feb. 22, 2006.

Giuliani Capital will:

   a) advise the Committee regarding the Debtors' business
      plans, cash flow forecasts, financial projections and cash
      flow reporting;

   b) advise the Committee with respect to available capital
      restructuring, sale and financing alternatives, including
      the plan currently being proposed by the Debtors,
      recommending specific courses of action and assisting with
      the design, structuring and negotiation of an alternative
      restructuring or transaction;

   c) advise the Committee regarding financial information
      prepared by the Debtor, and in its coordination of
      communications with interested parties and their
      respective advisors;

   d) advise the Committee in preparing for, meeting with, and
      presenting information to interested parties and their
      respective advisors;

   e) advise the Committee as to the Debtors' proposals from
      third parties for new sources of capital or the sale of
      the company;

   f) assist and advise the Committee and its counsel in the
      development, evaluation and documentation of any plan of
      reorganization or strategic transaction, including
      developing, structuring and negotiating the terms and
      conditions of potential plans, financings or strategic
      transactions and the consideration that is to be provided
      to unsecured creditors;

   g) provide testimony in the Court; and

   h) provide other services as may be reasonably requested in
      writing from time to time.

Andrew Scruton, a Giuliani Capital managing director, discloses
the Firm's professionals charge:

     i) a US$100,000 monthly advisory fee with a three-month
        minimum;

    ii) the Debtor will pay upon the consummation of:

        a) a sale of all or substantially all of the Debtors'
           assets or

        b) a restructuring, refinancing or recapitalization of
           the Debtors' indebtedness, obligations, debt
           securities, preferred stock or other liabilities
           (including, without limitation, lease obligations,
           partnership interests, trade credit facilities,
           contract obligations or tort liabilities), a fee
           based on the aggregate amount of value distributable
           to general unsecured creditors.

In addition, the completion fee will be payable only if there is
a distribution of any kind (including stock, warrants, cash, or
property of any kind or nature) to unsecured creditors in an
amount equal to the greater of:

   a) 250,000; or

   b) Recovery to general                   GCA Completion Fee
      unsecured creditors                   based on Recovery
      -------------------                   ------------------
      Above or equal to US$3 million,          US$300,000
        but less than US$4 million
      Above or equal to US$4 million,          US$400,000
        but less than US$5 million
      Above or equal to US$5 million           US$500,000

Mr. Scruton assures the Court that the Firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is one of the  
world's leading global suppliers of die cast aluminum components
and assemblies.   There are currently nine manufacturing
locations around the world including plants in the United
States, United Kingdom, Spain, and Mexico.  The company has
fourteen engineering/customer service offices to globally
support its customers near their regional engineering and
manufacturing locations.  The Company and its debtor-affiliates
filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del.
Case No. 06-10119 to 06-06-10127).  James E. O'Neill, Esq.,
Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at
Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C.,
at Kirkland & Ellis LLP, represent the Debtors in their
restructuring efforts.  When the Debtor filed for chapter 11
protection, it estimated assets and debts of more than US$100
million.


MERIDIAN AUTOMOTIVE: Has Until May 29 to File Disclosure Papers
---------------------------------------------------------------
Judge Walrath of the U.S. Bankruptcy Court for the District of
Delaware permits Meridian Automotive Systems, Inc., and its
debtor-affiliates to file their Chapter 11 Plan without a
disclosure statement.

The Court set May 29, 2006, as the Debtors' deadline to file a
disclosure statement with respect to their Plan of
Reorganization.

As reported in the Troubled Company Reporter on May 5, 2006,
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington Delaware, relates that since the Debtors filed
their Plan of Reorganization, they have continued their efforts
to gain additional creditor support to confirm the Plan to
achieve a fully consensual plan.  Although they continue to
press forward, the Debtors need more time to complete a
disclosure statement to accompany the Plan, Mr. Brady tells
Judge Walrath.

Mr. Brady tells Judge Walrath that extending the deadline will
facilitate the Debtors' ongoing discussions with parties-in-
interest in connection with the Plan as they move towards
confirmation and emergence from Chapter 11.

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. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000).




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KANSAS CITY SOUTHERN: Appoints Two New Officers in Finance Dep't
----------------------------------------------------------------
Kansas City Southern disclosed the appointment of two new
officers and the promotion of two officers.

Patrick J. Ottensmeyer has been named executive vice president
and chief financial officer.  Mr. Ottensmeyer brings over 25
years of financial experience to KCS.  Most recently, he served
as chief financial officer of Intranasal Therapeutics, Inc. He
has also served as vice president finance and treasurer for BNSF
Railway and senior vice president for Bank of America.  He holds
a bachelor of science in finance from Indiana University and is
an executive in residence on the finance advisory board at
DePaul University.  Mr. Ottensmeyer will lead KCS' international
finance department.

"Pat understands the rail industry and brings a broad set of
financial and leadership skills to our company," said KCS
chairman, president and chief executive officer Michael R.
Haverty.  "We look forward to his contributions as we continue
to drive costs out of our newly integrated rail network."

Susan B. Wollenberg has been promoted to vice president
financial planning and administration.  Ms. Wollenberg joined
KCS in early April 2006 and will serve as interim chief
accounting officer.  She is a former chief financial officer for
E.W. Blanch Holdings, Inc. and has ten years experience with GE
Capital Services, where she held various financial roles,
including manager strategic investments and second vice
president.  She is a certified public accountant and holds a
bachelor of science in business from the University of Kansas.  
She is a member of the American Institute of Certified Public
Accountants and Financial Executives International.  She also
serves on the board of directors of Windhaven Insurance Company.

Julio Quintero has been named controller for Kansas City
Southern de Mexico and will be based in Monterrey, N.L. While
leading the accounting department in Monterrey, he will spend
his first six months with the holding company in Kansas City to
ensure standardized accounting procedures in both countries.  
Mr. Quintero joins KCSM from Wyeth Pharmaceuticals, where he
served as controller for Mexico and Central America with
responsibilities for cost accounting, treasury and Sarbanes-
Oxley compliance.  He has also served as controller for Baxter
International and treasurer for Daimler-Chrysler in Mexico City.  
Mr. Quintero holds a bachelor's degree in accounting from
Instituto Politecnico Nacional and has completed a diploma
course in finance from Instituto Tecnologico y de Estudios
Superiores de Monterrey.

T. Nicholas Nocita has been promoted from general director
financial compliance to assistant vice president international
internal audit and financial compliance and retains
responsibility for Sarbanes-Oxley compliance in both the U.S and
Mexico.  Mr. Nocita joined the company in 1998. Prior to joining
KCS, he spent nine years as a certified public accountant in
Kansas City.  He holds a bachelor of science in business
administration accounting from the University of Kansas.

KCS thanks former executive vice president and chief financial
officer Ronald G. Russ and former vice president and comptroller
James S. Brook for their service to the company.

Headquartered in Kansas City, Mo., Kansas City Southern --
http://www.kcsi.com/-- is a transportation holding company that
has railroad investments in the U.S., Mexico and Panama.  Its
primary U.S. holdings include The Kansas City Southern Railway
Company, founded in 1887, and The Texas Mexican Railway Company,
founded in 1885, serving the central and south central U.S.  Its
international holdings include a controlling interest in TFM,
S.A. de C.V., serving northeastern and central Mexico and the
port cities of Lazaro Cardenas, Tampico and Veracruz, and a 50%
interest in The Panama Canal Railway Company, providing ocean-
to-ocean freight and passenger service along the Panama Canal.
KCS' North American rail holdings and strategic alliances are
primary components of a NAFTA Railway system, linking the
commercial and industrial centers of the U.S., Canada and
Mexico.

                        *     *     *

On April 28, 2006, Moody's ratings services downgraded these
ratings on Kansas City Southern and its subsidiaries:

   Kansas City Southern

     -- corporate family to B2 from B1;
     -- Preferred Stock to Caa2 from Caa1; and
     -- shelf registration (P) Caa1 from (P)B3, and (P)B3 from
        (P)B2.

   The Kansas City Southern Railway Company

     -- senior unsecured to B3 from B2;
     -- senior secured to B1 from Ba3;
     -- B1 secured assigned to the bank credit facilities; and
     -- shelf registration to (P)B3 from (P)B2, and (P)Caa1 from
        (P)B3.


   Kansas City Southern de Mexico, S.A. de C.V.

     -- senior unsecured to B3.and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on May 5, 2006,
Standard & Poor's Ratings Services lowered its preferred stock
ratings on Kansas City Southern to 'C' from 'CCC'.  The ratings
remain on CreditWatch with negative implications, where they
were initially placed on March 23, 2006; ratings were lowered on
April 4 and maintained on CreditWatch.


* PANAMA: Waterway Authority Recommends Construction of New Lane
----------------------------------------------------------------
A construction of a new lane along the Panama Canal is being
recommended by the Panama Canal Authority aka ACP, Business
Times reports.

According to Business Times, the new lane will double the
waterway's capacity at an estimated cost of US$5.25 billion.  

ACP told Business Times that the expansion will be paid by users
of the canal through a graduated toll system.

ACP was quoted by Business Times saying that it is recommending
the expansion of the Panama Canal after years of analyzing and
reviewing hundreds of studies and projections.  The
recommendation was formally made to the government of Panama in
a ceremony held on May 14.

As reported in the Troubled Company Reporter on April 24, 2006,
Manuel Benitez -- the waterway's No.2 administrator -- said that
the expansion could create possibly more than 240,000 additional
jobs, direct and indirect positions included.

EFE states that about 150,000 Panamanians are currently
unemployed.  
                        *    *    *

Fitch Ratings assigned these ratings on Panama:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BBB      Apr.  8, 2005
   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




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


G+G RETAIL: U.S. Trustee Amends Creditors' Panel Membership
-----------------------------------------------------------
The United States Trustee for Region 2 amended the list of
creditors to serve on an Official Committee of Unsecured
Creditors in G+G Retail Inc.'s chapter 11 case.  These creditors
are:

   1. Capital Factors LLC
      Attn: Philip J. Pergolizzi
      1700 Broadway, 19th Floor
      New York, NY 10019
      Tel: (212) 887-7900
      Fax: (212) 887-7940

   2. Intertex Apparel, Ltd.
      Attn: Warren Fisk
      1400 Broadway
      New York, NY 10018
      Fax: (212) 764-1080

   3. The CIT Group, Inc.
      Attn: Patrick K. Rohan
      1211 Avenue of the Americas
      New York, NY 10036
      Tel: (212) 382-6896
      Fax: (212) 382-7120

   4. General Growth Management, Inc.
      c/o Samuel B. Garber, Esq.
      Assistant General Counsel
      100 North Wacker Drive
      Chicago, IL 60606
      Tel: (312) 960-5079
      Fax: (312) 442-6373

   5. Simon Property Group
      Ronald M. Tucker
      Vice President/Bankruptcy Counsel
      Simon Property Group, L.P.
      115 W. Washington Street
      Indianapolis, IN 46204
      Tel: (317) 263-8171
      Fax: (317) 263-7901

Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtors' expense.  They may investigate the Debtors' business
and financial affairs.  Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest.  If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee.  If the
Committee concludes reorganization of the Debtors is impossible,
the Committee will urge the Bankruptcy Court to convert the
chapter 11 cases to a liquidation proceeding.

Headquartered in New York, New York, G+G Retail Inc. retails
ladies wear and operates 566 stores in the United States and
Puerto Rico under the names Rave, Rave Girl and G+G.  The Debtor
filed for Chapter 11 protection on Jan. 25, 2006 (Bankr.
S.D.N.Y. Case No. 06-10152).  William P. Weintraub, Esq., Laura
Davis Jones, Esq., David M. Bertenthal, Esq., and Curtis A.
Hehn, Esq., at Pachulski, Stang, Ziehl, Young & Jones P.C.
represent the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it estimated
assets of more than US$100 million and debts between US$10
million to US$50 million.


MUSICLAND HOLDING: Files Joint Plan of Liquidation in New York
--------------------------------------------------------------
Musicland Holding Corp., Media Play, Inc., MG Financial
Services, Inc., MLG Internet, Inc., Musicland Purchasing Corp.,
Musicland Retail, Inc., Request Media, Inc., Sam Goody Holding
Corp., Suncoast Group, Inc., Suncoast Holding Corp., Suncoast
Motion Picture Company, Inc., Suncoast Retail, Inc., TMG
Caribbean, Inc., TMG-Virgin Islands, Inc., and The Musicland
Group, Inc., delivered to the U.S. Bankruptcy Court for the
Southern District of New York a Joint Plan of Liquidation on May
12, 2006.

The Plan provides that the Debtors will continue to wind down
their businesses subject to all applicable requirements of the
Bankruptcy Code and Bankruptcy Rules.

According to Craig G. Wassenaar, chief financial officer of
Musicland Holding Corp., on and after the Effective date:

   (a) the Debtors' estates will be liquidated in accordance
       with the Plan, an Administrative Budget to be filed
       before the confirmation hearing, and applicable law; and

   (b) the Debtors' operations will become the responsibility of
       a "Responsible Person" who, in consultation with the
       Informal Committee of Secured Trade Vendors, will
       thereafter have responsibility for the management,
       control and operation of the Debtors, and who may use,
       acquire and dispose of property free of any restrictions
       of the Bankruptcy Code or the Bankruptcy Rules.

The Plan contemplates and is predicted upon the substantive
consolidation of the Debtors into a single entity solely for
purposes of all actions under the Plan.

The Plan contemplates that the Effective Date will occur no
later than Dec. 31, 2006.

                   The Responsible Person

Subject to further Court order and in consultation with the
Secured Trade Committee, the Responsible Person will act as
liquidating agent of, and for, the Debtors' estates from and
after the Effective Date.

Subject to consultation with the Secured Trade Committee, the
Responsible Person will be authorized and obligated, as agent on
behalf of the Debtors' estates, to take any and all actions
necessary or appropriate to implement the Plan; or wind up the
Debtors' estates in accordance with applicable law, including
any and all actions necessary to:

   -- liquidate the Assets of the Debtors and their Estates;

   -- except to any extent authority is granted to the Secured
      Trade Committee or with the consent of the Secured
      Committee or by Court order to the Official Committee of
      Unsecured Creditors, investigate, prosecute and, if
      necessary, litigate, any Right of Action on behalf of the
      Debtors and their estates;

   -- defend, protect and enforce any and all rights and
      interests of the Debtors and their estates;

   -- make any and all distributions required or permitted to be
      made under the Plan;

   -- file any and all reports, requests for relief or
      opposition;

   -- dissolve the Debtors, terminate joint ventures, or
      otherwise wind up any corporate entity owned by the
      Debtors and their estates; and

   -- pay any and all claims, liabilities, losses, damages,
      costs and expenses incurred, including all fees and
      expenses of his, her or its professionals accruing from
      and after the Confirmation Date, to the extent the payment
      of those amounts are included in the Administrative Budget
      or may otherwise be approved by the Secured Trade
      Committee, without any further application to the Court.
   
The Responsible Person, in consultation with the Secured Trade
Committee, will also be authorized to retain professionals and
may incur any reasonable and necessary expenses in the
performance of his duties as liquidating agent of and for the
Debtors' estates.

On the Effective Date, the Responsible Person will be deemed
elected and appointed by all requisite action under law the sole
board-appointed officer and shareholder-appointed director for
each of the Debtors and for all subsidiaries of the Debtors for
all purposes and in all respect.

With respect to all conduct taken while acting as the sole
officer and director for the Debtors, the Responsible Person
will benefit from each and every insurance policy obtained by or
for the benefit of the Debtors' officers or employees.

                         Liability

Neither the Responsible Person nor any of his designees,
employees or representatives will be liable for the act or
omission of any other member, designee, agent or representative
of the Responsible Person, other than acts or omissions
resulting from the Responsible Person's willful misconduct,
gross negligence or fraud.

                  Continued Corporate Existence,
                   Dissolution of the Debtors

From and after the Effective Date, the Debtors will remain in
existence for the purpose of liquidating and winding up their
Estates.  As soon as practicable after the liquidation and the
winding up of the Estates and the completion of distributions
under the Plan, the Responsible Person will file a certificate
of dissolution in the applicable state of incorporation for each
Debtor and the Debtors will dissolve and cease to exist.

              Preservation of All Rights of Action

Except as otherwise provided in the Plan and in accordance with
Section 1123(b) of the Bankruptcy Code, all claims, causes or
Rights of Action that the Debtors or their estates may have
against any person or entity will be preserved.

Except as to any Rights of Action for which authority has been
granted to the Secured Trade Committee or Creditors' Committee,
the Responsible Person, in consultation with the Secured Trade
Committee, will determine whether to bring, settle, release,
compromise or enforce the claims, causes or Rights of Action.

A full-text copy of Musicland's Joint Plan of Liquidation is
available for free at:

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

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000)


OCA INC: Court Sets June 2 General Claims Bar Date
--------------------------------------------------
The United States Bankruptcy Court for the Eastern District of
Louisiana, set June 2, 2006, as the deadline for all creditors
owed money by Oca, Inc., on account of claims arising prior to
March 14, 2006, to file their proofs of claim.

Creditors must file written proofs of claim on or before the
June 2 Claims Bar Date and those forms must be delivered to:

              Clerk of the Bankruptcy Court
              Hale Boggs Federal Building
              500 Poydas Street, Suite B-601
              New Orleans, LA 70130
    
For governmental units, the Claims Bar date is set for Sept. 13,
2006, at 4:30 p.m.

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Company's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.

The Company and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  William H. Patrick, III, Esq., at Heller Draper
Hayden Patrick & Horn, LLC, represents the Debtors.  Patrick S.
Garrity, Esq., and William E. Steffes, Esq., at Steffes
Vingiello & McKenzie LLC represent the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed US$545,220,000 in total assets and
US$196,337,000 in total debts.       


OCA INC: Files Schedules of Assets & Liabilities
------------------------------------------------
Oca Inc. delivered to the U.S. Bankruptcy Court for the Eastern
District of Louisiana its schedules of assets and liabilities,
disclosing:

Name of Schedule            Assets          Liabilities
----------------            ------          -----------
A. Real Property         US$86,902,729
B. Personal Property
C. Property Claimed
    as Exempt
D. Creditors Holding                      US$92,225,022
    Secured Claims
E. Creditors Holding                          7,308,180
    Unsecured Claims
F. Creditors Holding                         12,495,052
    Nonpriority Claims
                          -------------    --------------
    Total                 US$86,902,729    US$112,028,256

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Company's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.

The Company and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  William H. Patrick, III, Esq., at Heller Draper
Hayden Patrick & Horn, LLC, represents the Debtors.  Patrick S.
Garrity, Esq., and William E. Steffes, Esq., at Steffes
Vingiello & McKenzie LLC represent the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed US$545,220,000 in total assets and
US$196,337,000 in total debts.


OCA INC: Files Plan of Reorganization and Disclosure Statement
--------------------------------------------------------------
OCA, Inc. (Pink Sheets: OCAI) filed a Plan of Reorganization and
Disclosure Statement with the U.S. Bankruptcy Court for the
Eastern District of Louisiana on May 15, 2006.

The company also reported that the Court also approved a Plan
Support Agreement pursuant to which the Company's Senior Lenders
(Bank of America, as agent, and affiliates of Silver Point
Capital), the Company and the Official Committee of Unsecured
Creditors agreed to support the approval and confirmation of the
Plan.

                    Terms of the Plan

Under the terms of the Plan, the amount of senior secured
indebtedness held by the Senior Lenders will be reduced from
approximately US$92 million to US$50 million.  The Senior
Lenders will receive under the Plan all of the equity of the
reorganized Company upon exit from chapter 11.

The Company's unsecured creditors will receive, under the Plan,
a cash payment equal to US$2,700,000 and will be eligible to
receive additional deferred cash payments up to the full amount
of their allowed claims after certain distributions and
permanent cash paydowns to senior lenders exceed US$100 million.

All of the outstanding stock of the Company will be cancelled;
however, the existing shareholders of the Company will be
eligible to receive deferred cash payments equal to US$1,500,000
after certain distributions and permanent cash paydowns to the
Senior Lenders exceed US$115 million, an additional US$3,500,000
if such distributions and paydowns exceed US$150 million and
certain additional amounts if such distributions and paydowns
are larger than these amounts.

                   DIP Financing Approval

The Company also received a final order from the Court approving
its debtor-in-possession revolving credit financing with Bank of
America as agent, and Silver Point Capital pursuant to which the
Company will be able to obtain debtor -in-possession financing
of up toUS$15,000,000.  Upon exit from bankruptcy, the Senior
Lenders have committed (subject to the terms of the Plan Support
Agreement) to a new working capital facility to be used to pay
off amounts borrowed under the DIP loan and for general
corporate purposes.

                     CEO Termination

In addition, the Company reported that, consistent with the
terms of the Plan Support Agreement, Bart Palmisano, Sr. was
terminated as CEO.  Michael Gries, the Company's Chief
Restructuring Officer, will, effective immediately, assume the
additional position of Interim Chief Executive Officer.

"We are encouraged by the significant support demonstrated by
the Company's senior lenders and the Official Committee of
Unsecured Creditors, as well as the Company's vendors and
employees," Mr. Gries said.  "We also appreciate the continuing
loyalty and support of our affiliated orthodontists and
dentists.  We have met and discussed the Company's restructuring
plan with many of our affiliated doctors and look forward to
continuing that dialogue throughout the remaining pendency of
the case.  The Company's restructuring is progressing at a very
rapid pace, and we hope to emerge from chapter 11 by the end of
the summer."

A full-text copy of the Company's Joint Plan of Reorganization
is available for a fee at:

  http://www.researcharchives.com/bin/download?id=060515213155

A full-text copy of the Company's Disclosure Statement is
available for a fee at:

  http://www.researcharchives.com/bin/download?id=060515213437

                      About OCA Inc.

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Company and its debtor-affiliates filed
for Chapter 11 protection on March 14, 2006 (Bankr. E.D. La.
Case No. 06-10179).  William H. Patrick, III, Esq., at Heller
Draper Hayden Patrick & Horn, LLC, represents the Debtors.  
Patrick S. Garrity, Esq., and William E. Steffes, Esq., at
Steffes Vingiello & McKenzie LLC represent the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they listed US$545,220,000 in
total assets and US$196,337,000 in total debts.




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


* URUGUAY: International Court to Start Hearing on Pulp Dispute
---------------------------------------------------------------
The dispute proceedings on the Uruguay-Argentina pulp mill
dispute will start on June 8, 2006, at the International Court
of Justice in The Hague, Dow Jones Newswires states, citing
reports by Argentine media.

As reported in the Troubled Company Reporter on May 8, 2006,
Argentine Foreign Minister Jorge Taiana told reporters that
Argentina filed a demand against Uruguay at The Hague protesting
the construction of two pulp mills on the Uruguay River that
that nation authorized in violation of a statute that regulates
this shared resource.

Cabinet chief Alberto Fernandez told Dow Jones that Argentina
wants the court to order Uruguay to stop the pulp mill
construction to allow for more environmental study.

Dow Jones relates that the Argentine government believes Uruguay
did not provide sufficient time for a thorough environmental
impact study on the pulp mill plants.

Uruguayan officials, on the other hand, said that studies have
been conducted and that the mills will use modern pollution
controls, Dow Jones reports.  

Credit Suisse had said in a report earlier that the arguments
are not likely to begin before the middle of May due to the
court's caseload.  According to Credit Suisse, the court
normally takes six to nine months before it could reach a
decision, although that process can be sped up to end within
four weeks.

                        *    *    *

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

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     RD      Dec. 14, 2005
   Long Term IDR       B       Dec. 14, 2005
   Short Term IDR      B-      Jun.  3, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B       Jun.  3, 2005




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


ELECTRICIDAD DE CARACAS: Posts VEB44.3 Bil. First Quarter Profit
----------------------------------------------------------------
Electricidad de Caracas aka EDC, which is majority-owned by US
power firm AES Corp., posted VEB44.3 billion profit in the first
quarter 2006, Dow Jones Newswires reports.

Business News Americas relates that the company was able to make
up for the VEB68.4 billion loss incurred in the first quarter of
2005.  According to Dow Jones, this is due to lower costs and
more stable macroeconomic indicators including inflation.

BNamericas states that EBITDA for the first quarter dropped 7.4%
to VEB135 billion and EBITDA margin decreased 6.5% to 41.9%.

The full first quarter financial results will be released at a
later date, EDC told BNamericas.

EDC is a vertically integrated utility in Venezuela, operating
in electricity distribution, transmission, and generation in the
capital city of Caracas and its metropolitan area.  It is the
largest private electric utility in the country and is owned by
US-based AES Corp. (B+/Positive/--).  S&P does not expect the
support from the parent company to be a meaningful credit factor
for EDC.

                        *    *    *

On Feb 9, 2006, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on C.A. La Electricidad de
Caracas aka EDC and its 'B' rating on Electricidad de Caracas
Finance B.V.'s $260 million senior unsecured notes.  S&P said
the outlook is stable.

On Feb. 3, 2006, S&P raised the long-term local and foreign
currency sovereign credit ratings on the Bolivarian Republic of
Venezuela to 'BB-' from 'B+'.  The decision to raise the ratings
on Venezuela was supported by the continued sharp improvements
in Venezuela's external indicators, which are attributable to a
large current account surplus, a high level of international
reserves, and lower external debt in addition to buoyant
economic growth and the potential buyback of external debt.


* VENEZUELA: Inks Oil Collaboration Accord with Cuba
----------------------------------------------------
Venezuela signed a collaboration agreement for oil exploration
and production with Cuba, Prensa Latina quoted official sources
as saying.

Prensa Latina relates that the agreement was signed after a two-
day intensive technical exchange between professionals and
executives of Cuba-Petroleo aka CUPET and Venezuela's Petroleos
de Venezuela aka PDVSA in Havana on May 11 and on May 12, 2006.

According to Granma Daily, the deal includes:

     -- main guidelines,
     -- short-term projects, and
     -- mid-term projects.

Granma states that the projects would be jointly carried out by
Cuba and Venezuela.

The agreement also ratifies that common interest in
strengthening and promoting future actions to broaden bilateral
oil cooperation, Granma relates.

Prensa Latina reports that the agreement is part of the
Bolivarian Alternative for the Americas aka ALBA of Cuba,
Venezuela and Bolivia.

As reported in the Troubled Company Reporter on May 2, 2006,
Cuba's President Fidel Castro formed the Bolivarian Alternative
for the Americas trade bloc with Bolivia's President Evo Morales
and Venezuela's Hugo Chavez on Saturday.

The Associated Press relates that the Bolivarian Alternative for
the Americas is a trade bloc that rejects the US Free Trade
Agreement, promising a socialist version of regional commerce
and cooperation.

Under the trade bloc, Cuba will send doctors to Bolivia to
provide medical care to poor people, and teachers to conduct
literacy campaigns, while Venezuela will supply gasoline to
Bolivia and provide US$100 million for development programs and
US$30 million for other social projects, AP states.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B2 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.



                         ***********


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.

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Information contained herein is obtained from sources believed
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