TCRLA_Public/060523.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 23, 2006, Vol. 7, Issue 101

                            Headlines

A R G E N T I N A

AGROCEREALES JOSE: Proofs of Claim Filing Ends on June 12
AGUAS ARGENTINAS: Concession Passed to New State Water Firm
ALUNAMAR SA: Concludes Reorganization Proceeding
CALCERGAS SA: Claims Verification Deadline Is on June 23
CARAN SA: Court Closes Reorganization Proceeding

CASASOLA MAYORISTA: Proofs of Claim Verification Ends on June 16
CERAMICA LACER: Verification of Proofs of Claim Ends on July 12
FEROANCO S.A.: Seeks Reorganization Approval from Court
PROSCUITTO S.A.: Individual Reports Due in Court on July 5
RESIN POL: Validation of Proofs of Claim Ends on June 30

VICTORIA SQUARE: Enters Bankruptcy on Court Orders

B A H A M A S

WINN-DIXIE: Amended DIP Credit Deal Allows Stores Sale
WINN-DIXIE: Posts US$29.9 Mil. Net Loss in Third Fiscal Quarter

B E R M U D A

ADVENTURE TRAVEL: Creditors Must File Proofs of Claim by June 7
ANNUITY & LIFE: Incurs US$355,552 Net Loss in First Quarter
CANE MASTER: Filing of Proofs of Claim Ends on June 23
MAN CONVERTIBLE: Proofs of Claim Filing Ends by May 31

B O L I V I A

* BOLIVIA: Oil Firm President Says Foreign Cos. Still Investing
* BOLIVIA: Forms Farming Corporation with Venezuela & Cuba
* BOLIVIA: State Oil Firm Gets Stakes in Andina & Chaco

B R A Z I L

BANCO BONSUCESSO: Moody's Assigns D- Financial Strength Rating
BANCO BRADESCO: S&P Assigns BB+/B Counterparty Credit Rating
COMPANHIA VALE: Settles 2006 Iron Ore Prices with Mittal Steel
GLOBO COMUNICACAO: Prepaying Over US$150M of Outstanding Bonds
PETROLEO BRASILEIRO: Proposes Plan to Increase Domestic Output

VARIG: Brazilian Appeals Court Allows BRL3-Bil. Compensation

C A Y M A N   I S L A N D S

AERCAP CORVO: Sets Final Shareholders Meeting on June 5
AFFINITY FUND: Schedules Final Shareholders Meeting on June 1
ANNA INVESTMENT: Final Shareholders Meeting Is Set for June 1
ASSET FINANCE: Holds Final Shareholders Meeting on June 5
BANK DANAMON (CAYMAN): Moody's Upgrades Credit Rating to B1

BANK MANDIRI (CAYMAN): Moody's Ups Credit & LT Deposit Ratings
BANK INTERNASIONAL (CAYMAN): Moody's Ups Credit Rating to B1
CRESECENT MEDIA: Creditors Must File Proofs of Claim by June 1
EUROPEAN VENTURES: Claims Verification Deadline Is on June 1
HAMMERMAN COUNTERPOINT: Filing of Proofs of Claim Ends on May 31

ORICO HERMES: Creditors Must File Proofs of Claim by June 1
PRECEPT FOREIGN: Liquidator Won't Accept Claims After June 2
PRECEPT MASTER: Sets Claims Verification Deadline on June 2

C O L O M B I A

* COLOMBIA: Buenaventura City's Electricity Cut

C O S T A   R I C A

* COSTA RICA: Government Eyes Free Trade Accord with US

C U B A

* CUBA: Forms Farming Corporation in Bolivia with Venezuela

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Earns US$238 Mil. for the Month of April 2006
FALCONBRIDGE LTD: Brunswick Employees Approve Collective Pact

* DOMINICAN REPUBLIC: Market Interests Korean Investors
* DOMINICAN REPUBLIC: Textile Trade with US Successful

E C U A D O R

PETROECUADOR: Occidental Lends Oil Field Software Until May End

* ECUADOR: Will Refine Gas in Venezuela to Reduce Costs

E L   S A L V A D O R

* EL SALVADOR: Economist Discourages Free Trade Pact with US

G U A T E M A L A

* GUATEMALA: Denies Honduras' Accusations of Coffee Smuggling

H O N D U R A S

* HONDURAS: Alarmed at Increasing Operations of Smuggled Coffee
* HONDURAS: Denies Delay of Negotiations on Mining Law Reform

J A M A I C A

AIR JAMAICA: Wage Reform for Attendants Ends Conflict with Union

M E X I C O

COMISION FEDERAL: Launches Tender for La Yesca Construction
EL POLLO: S&P Will Raise Credit Rating to B+ Upon IPO Completion
J.L. FRENCH: Can Lend Up to US$1.2 Mil. to Ansola Foreign Unit

N I C A R A G U A

* NICARAGUA: Coffee Exports Upped 48% at 175,915 Bags in April
* NICARAGUA: State Water Utility Seeks Loan to Pay Off Debts

P A R A G U A Y

* PARAGUAY: Farmers Demand Promised Compensation

P U E R T O   R I C O

MUSICLAND HOLDING: Deluxe's Lien Payment Motion Draws Fire

T R I N I D A D   &   T O B A G O

BWIA WEST: Flights Skip Antigua Due to Ash from Volcano
DIGICEL: Claims TSTT Pays for Hunter Report
RBTT FINANCIAL: Sponsors Trade Congress in Trinidad

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Investing US$1.5 Billion in Bolivia

* VENEZUELA: Forms Farming Corporation with Bolivia & Cuba


                         - - - - -


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


AGROCEREALES JOSE: Proofs of Claim Filing Ends on June 12
---------------------------------------------------------
Creditors of bankrupt company Agrocereales Jose S.R.L. are
required to present proofs of their claims to Jorge Otilio
Meroni, the court-appointed trustee, by June 12, 2006, Infobae
reports.  Creditors who fail to submit the required documents
will not qualify for any post-liquidation distributions.

Agrocereales Jose enters bankruptcy protection after a court in
Rio Cuarto, Cordoba, ordered the company's liquidation.  The
order effectively transfers control of the company's assets to
the 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 individual reports will be submitted
on Aug. 7, 2006, followed by the general report, which is due on
Sept. 5, 2006.

The debtor can be reached at:

          Agrocereales Jose S.R.L.
          Velez Sarsfield 364 Coronel Baigorria
          Cordoba, Argentina          

The trustee can be reached at:

          Jorge Otilio Meroni
          San Martin 176 Rio Cuarto
          Cordoba, Argentina


AGUAS ARGENTINAS: Concession Passed to New State Water Firm
-----------------------------------------------------------
Agua y Saneamiento Argentina SA aka AySA has officially replaced
Aguas Argentinas SA as water and sewerate provider of Buenos
Aires, Dow Jones Newswires reports.

Aguas Argentinas had stopped being Buenos Aires' water and
sewerage utility when its contract with Buenos Aires was revoked
on March 21, 2006, due to allegations on non-compliance with
investment goals and water safety regulations.  

According to reports by the local media, AySA took over Aguas
Argentina's services in Buenos Aires and 14 districts of the
city.  After almost two months, an emergency bill on the
creation of AySA as the new state-run water company was
ratified.

Dow Jones recalls that the Chamber of Deputies -- Argentina's
lower house -- approved the bill on April 5, followed by the
Senate's approval in a session held last week.  

According to Dow Jones, employees will take a 10% stake in the
firm through a government-run trust fund.  The remainder of the
shares will be distributed to the national government, the
provinces of Buenos Aires and the Federal Capital District.   

The federal planning ministry will control AySA and will decide
on its budget and design program of investments and works
without the approval of the parliament, BNamericas reports.

As reported in the Trouble Company Reporter on May 12, 2006,
Aguas Argentinas sought for reorganization before Buenos Aires'
Court No. 17 as a result of the revocation of its concession.


ALUNAMAR SA: Concludes Reorganization Proceeding
------------------------------------------------
Buenos Aires-based company Alunamar S.A. concluded its
reorganization process, according to data released by Infobae on
its Web site.  The conclusion came after the city's Court No.
24, with assistance from Clerk No. 47, accepted the debt plan
signed between the company and its creditors.

Alunamar's creditors approved the company's settlement plan
during an informative assembly on Feb. 10, 2006.

As reported in the Troubled Company Reporter on April 5, 2005,
Court No. 24 approved the reorganization petition filed by
Alunamar, a fishing company, and appointed Estudio Mendez-
Scolnik y Asociados as trustee for the proceeding.

Creditors' proofs of claim were verified until June 15, 2005.  

The validated claims were used as basis for the individual
reports that were submitted on Aug.3, 2005.  A general report
was also presented in court on Sept. 9, 2005.

The debtor can be reached at:

         Alunamar S.A.
         Hipolito Yrigoyen 1116
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio Mendez -Scolnik y Asociados
         Avenida Segurola 1791
         Buenos Aires, Argentina


CALCERGAS SA: Claims Verification Deadline Is on June 23
--------------------------------------------------------
The verification of creditors' claims for the Calcergas S.A.
insolvency case is set to end on June 23, 2006, states Infobae.  
Creditors with unverified claims cannot participate in the
company's settlement plan.

Jorge Lopez Domaica, the court-appointed trustee, will prepare
individual reports out of the validated claims.  Infobae did not
state in its Web site the date for the presentation of the
reports in court.

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.

The debtor can be reached at:

            Calcergas S.A.
            Avenida Colon 5529, Mar del Plata
            Buenos Aires, Argentina

The trustee can be reached at:

            Jorge Lopez Domaica
            Colon 2817, Mar del Plata
            Buenos Aires, Argentina


CARAN SA: Court Closes Reorganization Proceeding
------------------------------------------------
The reorganization of Caran S.A. has been concluded.  Data
revealed by Infobae on its Web site indicated that the process
was concluded after a Buenos Aires court approved the debt
agreement signed between the company and its creditors.


CASASOLA MAYORISTA: Proofs of Claim Verification Ends on June 16
----------------------------------------------------------------
The verification of the proofs of claim of Casasola Mayorista
S.A.'s creditors will end on June 16, 2006.

The company began reorganization following the approval of its
petition by Cordoba's civil and commercial tribunal.  Under
reorganization, the company is allowed to negotiate a settlement
with its creditors to avoid a straight liquidation.

The debtor can be reached at:

           Casasola Mayorista S.A.
           La Rioja 1142 Ciudad de Cordoba
           Cordoba, Argentina


CERAMICA LACER: Verification of Proofs of Claim Ends on July 12
---------------------------------------------------------------
Creditors of bankrupt company Ceramica Lacer S.A. are required
to present proofs of their claim to Mariana Nadales, the court-
appointed trustee, by July 12, 2006, La Nacion reports.  
Creditors who fail to submit the required documents will not
qualify for any post-liquidation distributions.

Buenos Aires' Court No. 3 declared the company bankrupt, at the
behest of Personal de la Industria Ladrillera a Maquina, which
the company owes US$42,870.80.

Clerk No. 6 assists the court on the case.

The debtor can be reached at:

         Ceramica lacer S.A.
         Ciudad de La Paz 1614
         Buenos Aires, Argentina

The trustee can be reached at:

         Mariana Nadales
         H. Yrigoyen 1349
         Buenos Aires, Argentina


FEROANCO S.A.: Seeks Reorganization Approval from Court
-------------------------------------------------------
Buenos Aires' Court No. 24 is currently reviewing the merits of
the reorganization petition filed by Feroanco S.A.  Argentine
daily La Nacion reports that the company filed the request after
defaulting on its debt payments since May 5, 2006.

The reorganization petition, if granted by the court, will allow
Feroanco to negotiate a settlement with its creditors in order
to avoid a straight liquidation.  

Clerk No. 47 assists the court on this case.

The debtor can be reached at:

       Feroanco S.A.
       Reconquista 1034
       Buenos Aires, Argentina


PROSCUITTO S.A.: Individual Reports Due in Court on July 5
----------------------------------------------------------
Verified individual claims against bankrupt company, Proscuitto
S.A., will be presented in Court on July 5, 2006, Infobae
reports.

Court-appointed trustee Mauricio Leon Zafran stopped verifying
Creditors' claims on May 22, 2006.  The verified claims will be
used as basis in creating the individual reports to be presented
in Court.

A general report is expected in court on Aug. 31, 2006.  

The debtor can be reached at:

         Prosciutto S.A.
         Cerrito 520
         Buenos Aires, Argentina

The trustee can be reached at:

         Mauricio Leon Zafran
         Avenida Callao 420
         Buenos Aires, Argentina


RESIN POL: Validation of Proofs of Claim Ends on June 30
--------------------------------------------------------
Graciela Lissarrague, court-appointed trustee for the bankruptcy
case of Resin Pol S.A.I.C., has started verifying creditors'
claims.  The verification phase will end on June 30, 2006.

La Nacion relates that Buenos Aires' Court No. 12 declared the
company bankrupt at the request of Esther Duran, whom the
company owes US$26,910.68.

Clerk No. 23 assists the court in this case.

The debtor can be reached at:

         Resin Pol S.A.I.C.
         Avenida San Isidro 4132
         Buenos Aires, Argentina

The trustee can be reached at:

         Graciela Lissarrague
         Teniente General Juan Domingo Peron 1504
         Buenos Aires, Argentina    


VICTORIA SQUARE: Enters Bankruptcy on Court Orders
--------------------------------------------------
Victoria Square enters bankruptcy protection after a court in
Rosario, Santa Fe, ordered the company's liquidation.  The order
effectively transfers control of the company's assets to a
court-appointed trustee, whose name is yet to be disclosed.  The
trustee will supervise the liquidation proceedings.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the claims forwarded by the
company's creditors.  The truste will also present in court a
general report containing an audit of the company's accounting
and business records.

The verification deadline for the proofs of claim and the dates
of submission of the reports are yet to be disclosed.

The debtor can be reached at:

         Victoria Square S.R.L.
         Laprida 5223, Rosario
         Santa Fe, Argentina




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


WINN-DIXIE: Amended DIP Credit Deal Allows Stores Sale
------------------------------------------------------
Bennett L. Nussbaum, senior vice president and chief financial
officer of Winn-Dixie Stores, Inc., discloses, in a regulatory
filing with the Securities and Exchange Commission, that the
Company entered into an amendment of their DIP Credit Agreement
on March 17, 2006.

According to Mr. Nussbaum, the DIP Credit Facility was amended
to allow the Company to sell or liquidate certain locations.

Mr. Nussbaum relates that as of April 5, 2006, the Company
completed its plan to exit 326 stores and three distribution
centers in order to focus on its strongest stores and markets.
During the 12 weeks ended April 5, 2006, the Company:

    (a) announced an expansion of its plan to include 35
        additional stores and one distribution center;

    (b) announced the pending sale of its interest in Bahamas
        Supermarkets Limited, which owns 12 stores and a
        distribution center located in The Bahamas; and

    (c) closed all manufacturing operations except for two
        dairies and the Chek beverage operation.

The Amendment replaces in its entirety Schedule VI --
Restructuring Plan -- to the Credit Agreement.  The Amended
Restructuring Plan now provides:

    FIRST PHASE -- The sale and closure of 329 retail stores
                   leased by Borrowers and Guarantors which are
                   located in non-core areas or are
                   unprofitable, including:

                      * the sale of 79 retail stores as going
                        concerns;

                      * the closure of the remaining retail
                        stores not sold as going concerns; and

                      * the sale and closure of manufacturing
                        facilities and distribution centers; and

                      * the liquidation of the Inventory,
                        Pharmacy Scripts, furniture, fixtures,
                        equipment, Leasehold Properties and
                        other assets of the Borrowers and
                        Guarantors from the closed retail stores
                        and manufacturing facilities not sold as
                        going concerns.

    SECOND PHASE -- The disposition of 35 retail stores leased
                    by Borrowers and Guarantors, which are
                    located in core areas and are unprofitable
                    -- Bubble Stores -- including;

                      * the liquidation of the Inventory,
                        Pharmacy Scripts, furniture, fixtures,
                        equipment and other assets of the
                        Borrowers and Guarantors from each of
                        the Bubble Stores; and

                      * the sale, assumption and assignment of
                        the Leasehold Properties with respect to
                        certain Bubble Stores and the rejection
                        of the Leasehold Properties with respect
                        to the remaining Bubble Stores.

A full-text copy of the March 17, 2006, Amendment to the Credit
Agreement is available for free at:

               http://ResearchArchives.com/t/s?957

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


WINN-DIXIE: Posts US$29.9 Mil. Net Loss in Third Fiscal Quarter
---------------------------------------------------------------
Winn-Dixie Stores, Inc., filed its quarterly report on Form 10-Q
with the Securities and Exchange Commission in which it reported
financial results for the third quarter and first 40 weeks of
its 2006 fiscal year, which ended on April 5, 2006.

                  Winn-Dixie Stores, Inc., et al.
               Unaudited Consolidated Balance Sheet
                         At April 5, 2006
                          (In thousands)

                              Assets

Current assets:
    Cash and cash equivalents                         US$131,714
    Marketable securities                                 14,191
    Trade and other receivables, net                     159,604
    Insurance claims receivable                           52,356
    Income tax receivable                                 30,382
    Merchandise inventories, net                         493,889
    Prepaid expenses and other current assets             46,646
                                                    
Total current assets                                     928,782

Property, plant and equipment, net                       530,625
Other assets, net                                        116,606
                                                    
Total assets                                        US$1,576,013
                                                    ============

               Liabilities and Shareholders' Deficit

Current liabilities:
    Current borrowings under DIP Credit Facility       US$40,552
    Current portion of long-term debt                        228
    Current obligations under capital leases               3,834
    Accounts payable                                     225,492
    Reserve for self-insurance liabilities                88,642
    Accrued wages and salaries                            77,871
    Accrued rent                                          27,608
    Accrued expenses                                     111,978
                                                    
Total current liabilities                                576,205

Reserve for self-insurance liabilities                   143,744
Long-term debt                                               204
Long-term borrowings under DIP Credit Facility                 -
Obligations under capital leases                           4,788
Other liabilities                                         16,496

Total liabilities not subject to compromise              741,437

Liabilities subject to compromise                      1,119,138

Total liabilities                                      1,860,575

Shareholders' deficit:
   Common stock                                         141,872
   Additional paid-in-capital                            33,565
   Accumulated deficit                                 (425,367)
   Accumulated other comprehensive loss                 (34,632)

Total shareholders' deficit                            (284,562)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY          US$1,576,013
                                                    ============

             Winn-Dixie Stores, Inc., and Subsidiaries
               Consolidated Statement of Operations
                 For 12-weeks Ended April 5, 2006
                          (In thousands)


Net sales                                          US$1,766,591
Cost of sales                                         1,298,996

Gross profit on sales                                   467,595
Other operating and administrative expenses             487,564
Impairment charges                                        2,126
Restructuring charges                                       365

Operating loss                                          (22,460)
Interest expense, net                                     1,587

Loss before reorganization items and income taxes       (24,047)
Reorganization items, net                                11,362
Income tax expense                                            -

Net (loss) earnings from continuing operations          (35,409)

Discontinued operations:
   Loss from discontinued operations                     (4,265)
   Gain on disposal of discontinued operations            9,695
   Income tax expense                                         -

Net earnings (loss) from discontinued operations          5,430

NET LOSS                                             (US$29,979)
                                                    ============

             Winn-Dixie Stores, Inc., and Subsidiaries
               Consolidated Statement of Cash Flows
                 For 40-Weeks Ended April 5, 2006
                          (In thousands)

Cash flows from operating activities:
   Net loss                                         (US$348,653)
   Adjustments to reconcile net loss
    to net cash provided by operating activities:
      Gain on sales of assets, net                      (62,473)
      Reorganization items, net                        (238,752)
      Depreciation and amortization                      87,654
      Impairment charges                                 16,452
      Deferred income taxes                                   -
      Stock compensation plans                            1,096
      Change in operating assets and liabilities:
         Trade and other receivables                      9,642
         Merchandise inventories                        304,525
         Prepaid expenses and other current assets       32,939
         Accounts payable                                48,277
         Lease liability on closed facilities           114,893
         Income taxes payable/receivable                    614
         Defined benefit plan                            (1,277)
         Reserve for self-insurance liabilities           5,897
         Other accrued expenses                         263,026

      Net cash provided by operating activities
      before reorganization items                      233,860
      Cash effect of reorganization items               (46,610)

Net cash provided by operating activities               187,250

Cash flows from investing activities:
   Purchases of property, plant and equipment           (19,486)
   Decrease (increase) in investments and other assets    1,008
   Proceeds from sales of assets                        100,449
   Purchases of marketable securities                    (7,219)
   Sales of marketable securities                        12,043
   Other                                                  1,099

Net cash provided by (used in) investing activities      87,894

Cash flows from financing activities:
   Gross borrowings on DIP Credit Facility              696,874
   Gross payments on DIP Credit Facility               (901,325)
   Principal payments on long-term debt                    (158)
   Debt issuance costs                                     (721)
   Principal payments on capital lease obligations       (1,254)
   Other                                                  1,013

Net cash used in financing activities                  (205,571)

(Decrease) increase in cash and cash equivalents         69,573
Cash and cash equivalents at beginning of year           62,141

Cash and cash equivalents at end of period           US$131,714
                                                    ============

A full-text copy of Winn-Dixie's third fiscal quarter 2006
report is available for free at:

             http://ResearchArchives.com/t/s?958

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




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


ADVENTURE TRAVEL: Creditors Must File Proofs of Claim by June 7
---------------------------------------------------------------
Creditors of Adventure Travel Ltd. are given until June 7, 2006,
to prove their claims to Robin J. Mayor, the company's
Liquidator, or be excluded from receiving any distribution or
payment that the company will make.

Creditors are required to send by June 7 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the office of the
liquidator on June 21, 2006, at 9:30 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 5, 2006.

The liquidator can be reached at:

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


ANNUITY & LIFE: Incurs US$355,552 Net Loss in First Quarter
-----------------------------------------------------------
Annuity and Life Re (Holdings), Ltd., reported financial results
for the three months ended March 31, 2006.  The Company reported
a net loss of US$(355,552) or US$(0.01) per fully diluted share
as compared to a net loss of US$(768,665) or US$(.03) per fully
diluted share for the three months ended March 31, 2005.  Total
Stockholder's Equity at March 31, 2006 was US$45,136,586.

Net realized investment losses for the three months ended
March 31, 2006, were US$(360,863), as compared with net realized
investment gains of US$(401,150) for the three months ended
March 31, 2005.

Gross unrealized losses on the Company's investments were
US$(558,826) as of March 31, 2006, as compared to gross
unrealized losses of US$(113,947) at March 31, 2005.  The
Company's investment portfolio currently maintains an average
credit quality of AA.  Cash used by operations for the three
months ended March 31, 2006 was US$3,917,214 as compared to cash
used by operations of US$37,057,460 for the three months ended
March 31, 2005.

Annuity and Life Re (Holdings), Ltd. has historically provided
annuity and life reinsurance to insurers through its wholly
owned subsidiaries, Annuity and Life Reassurance, Ltd. and
Annuity and Life Reassurance America, Inc.

Annuity and Life Re (Holdings), Ltd. -- http://www.alre.bm/or
http://www.annuityandlifere.com/-- provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd., and Annuity and Life
Reassurance America, Inc.

                      Going Concern Doubt

Chartered Accountants of Hamilton, Bermuda, raised substantial
doubt about the company's ability to continue as a going concern
after it audited the company's annual report for 2004.  The
auditor pointed to the company's significant losses from
operations and experience of liquidity demands.


CANE MASTER: Filing of Proofs of Claim Ends on June 23
------------------------------------------------------
Creditors of The Cane Master Fund Limited are given until
June 23, 2006, to prove their claims to Peter C.B. Mitchell and
Nigel J.S. Chatterjee, the company's liquidators, or be excluded
from receiving any distribution or payment that the company will
make.

Creditors are required to send their full names, addresses, 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 May 12, 2006.

The liquidators can be reached at:

         Peter C.B. Mitchell
         Nigel J.S. Chatterjee
         PwC Advisory Limited
         P.O. Box HM 1171
         Hamilton, HM EX, Bermuda


MAN CONVERTIBLE: Proofs of Claim Filing Ends by May 31
------------------------------------------------------
Creditors of Man Convertible Bond Investments Limited are given
until May 31, 2006, to prove their claims to Beverly Mathias,
the company's liquidator, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send by May 31 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Ms. Mathias.

A final general meeting will be held at the office of the
liquidator on June 26, 2006, at 9:30 a.m., or as soon as
possible thereafter, for the purposes of:

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

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

   -- by resolution dissolving the company.

The company began liquidating assets on May 11, 2006.

The liquidator can be reached at:

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




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


* BOLIVIA: Oil Firm President Says Foreign Cos. Still Investing
---------------------------------------------------------------
Jorge Alvarado, Yacimientos Petroliferos Fiscales Bolivianos'
president, told the El Universal that its hydrocarbons sector is
still attracting investors despite the nationalization declared
on May 1.

According to Mr. Alvarado, Petroleos de Venezuela SA's will be
investing US$1.5 billion in the nation's hydrocarbons sector,
the El Universal reports.

"Pdvsa wants to make investments in exploration of around US$800
million, and then invest US$700 million in production. We are
talking about an investment in exploration and drilling of some
US$1.5 billion in the first stage of field exploitation," Mr.
Alvarado explained to El Universal.

Mr. Alvarado assured the El Universal that PDVSA won't get
preferential treatment in Bolivia as a result of President Hugo
Chavez's close ties with President Evo Morales.

"Pdvsa will not have a special treatment. On the contrary, Pdvsa
is giving us a special treatment, because no other corporation
coming to Bolivia has told us 'we are going to make the whole
investment, and you are going to own a 51 percent stake, and
then you are going to pay with the product,'" Mr. Alvarado was
quoted by El Universal as saying.

The official also told El Universal that there are other foreign
players interested in its oil and gas sector.  Among these are:

     -- Shaw Group;
     -- Gazprom; and
     -- two unnamed Chinese firms.

                        *    *    *

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


* BOLIVIA: Forms Farming Corporation with Venezuela & Cuba
----------------------------------------------------------
Bolivia will work with Cuba and Venezuela to form a three-
national farming corporation in the country, El Universal
reports.

El Universal states that the corporation will be responsible in
installing food-processing facilities in the rural area in three
months.

According to El Universal, Venezuela will grant a fund of US$100
million for the organization, which will be in the context of
Bolivian President Evo Morales' agricultural policy.

Hugo Salvatierra, Bolivia's minister of rural and agricultural
development, was quoted by El Universal as saying, "We will
organize a corporation in Bolivia based on this and other
credits by means of a common fund with loans from the
international cooperation and abandonment.  This process will
exceed US$100 million."

Minister Salvatierra told El Universal that the fund from
Venezuela is necessary and will be used in productive
reactivation, lending for farmers as well as for the small and
medium-sized business.

                        *    *    *

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

                        *    *    *

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

                        *    *    *

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


* BOLIVIA: State Oil Firm Gets Stakes in Andina & Chaco
-------------------------------------------------------
Bolivia's state-run oil firm, Yacimientos Petroliferos Fiscales
Bolivianos aka YPFB, has received stakes in oil companies
Andina, Chaco and Transredes, Business News Americas reports.

Manuel Morales -- the advisor of Bolivia's state-owned oil firm
-- told BNamericas that Bolivian pension fund managers Futuro de
Bolivia and Prevision Banco Bilbao Vizcaya aka BBV transferred
their stakes in the oil companies over to YPFB on Friday
afternoon.

According to BNamericas, Futuro and BBV held a total of 49%
share in Andina and Chaco.  Their combined stake in Transredes
was 34%.

BNamericas recalls that the government of Bolivia, as part of
its hydrocarbons nationalization, issued earlier last week the
Supreme decree 28711, which obligated the pension funds to
transfer their stakes to YPFB.

As previously reported, YPFB and the Bolivian government will
try to purchase additional shares on the market to obtain a 51%
controlling interest in the companies.  

BNamericas states that because the private firms hold 50% of the
companies in Bolivia, the government will negotiate with these
firms.

The government could issue another decree to obligate the sale
of the shares if the result is not favorable, BNamericas
reports.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO BONSUCESSO: Moody's Assigns D- Financial Strength Rating
--------------------------------------------------------------
Moody's Investors Service assigned first-time ratings to Banco
Bonsucesso S.A.  These are:

   -- a bank financial strength rating of D-,
   -- a long-term global local-currency deposit rating of Ba3,
      and
   -- a short-term global local-currency deposit rating of
      Not Prime,

all with stable outlooks.  Moody's also assigned a national
scale deposit rating of Baa1.br for the long term and BR-2 in
the short term, both with stable outlooks.  The long- and short-
term foreign--currency deposit ratings of B1 and Not Prime,
respectively, are at Brazil's country ceiling, both with
positive outlooks.

Moody's said that ratings for Banco Bonsucesso are supported by
its adequate financial metrics, and by its profitability and
asset quality, in particular, which reflect the bank's defined
market position in its niche personal loans business.  The fast
growth of this market in 2005 resulted in expansion
opportunities for Bonsucesso's franchise as a lender to retirees
and public service employees.  As a result, management reported
profitability indicators that compare well with those of rivals,
despite the small size of the bank's assets and equity.

Bonsucesso is among the early entrants in payroll-linked lending
activities in Brazil. Moody's said that this is a position that
has allowed the bank to:

   -- develop operational expertise,
   -- create, and implement its own systems and controls, and
   -- establish a reliable loan-origination network of bank
      correspondents.

The rating agency noted, however, that Bonsucesso's dynamic
franchise may imply earnings volatility because its niche market
faces increasing competition, and the growth rate of personal
loans is decelerating. Moreover, ratings for Bonsucesso are
constrained by its modest capital base and by its relatively
concentrated funding structure, which are characteristic of
medium and small banks; both of which may limit business growth.  
The bank's loan-origination ability is far superior to its fund-
raising capability, thus prompting Bonsucesso to rely on
securitizations and loan sales to maintain its fast growth pace.

Banco Bonsucesso's Ba3 global local- currency deposit rating
does not incorporate any element of government support, given
the bank's immaterial share of the deposits' market in Brazil.  
The bank is the principal business of its shareholders, and as
such, any liquidity and capital support would be limited to
their ability to provide assistance.

Moody's views Bonsucesso's ability to diversify funding sources
at adequate cost as a ratings positive, together with the
management of assets and liabilities, as its loan portfolio
lengthens.  Although the performance of the bank's financial
metrics may have peaked, management will need to sustain loan
origination and asset quality at levels that do not pressure its
profit margins.

Banco Bonsucesso S.A. is headquartered in Belo Horizonte,
Brazil.  As of December 2005, the bank had total assets of
approximately BRL381 million (US$163 million) and equity of
BRL81 million (US$35 million).

These ratings were assigned to Banco Bonsucesso S.A.:

   -- Bank Financial Strength Rating: D-, stable outlook;

   -- Global Local Currency Rating: Ba3 long-term local-currency
      deposit rating and Not-Prime short-term local-currency
      deposit rating, stable outlook;

   -- Foreign Currency Deposit Rating: B1 long-term
      foreign-currency deposit rating and Not Prime short-term
      foreign-currency deposit rating, positive outlook; and

   -- National Scale Deposit Ratings: Baa1.br long-term deposit
      rating and BR-2 short-term deposit rating, stable outlook.


BANCO BRADESCO: S&P Assigns BB+/B Counterparty Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+/B'
counterparty credit rating to Banco Bradesco S.A.  The outlook
is stable.
     
As Standard & Poor's started the surveillance of Bradesco's full
ratings, it will no longer publish the 'BBpi' rating based on
public information.
      
"The rating on Bradesco incorporates its exposure to Brazil's
economic risk; its direct exposure to the Brazilian sovereign
through its marketable securities and open-market operations;
and the relatively higher operating costs and weaker
capitalization when compared to some of its Latin American
peers," said Standard & Poor's credit analyst Tamara Berenholc.  
These negatives are partially mitigated by Bradesco's:

   -- significant market share in Brazil and its strong
      franchise as one of the most diversified retail banks in
      Latin America;

   -- improving earnings power with increasing cross selling;
      and

   -- strong liquidity.
     
The counterparty credit rating assigned to Bradesco is one notch
above the sovereign foreign currency rating on Brazil (FC:
BB/Stable/--; LC: BB+/Stable/--).  Standard & Poor's views the
greatest risk of potential government intervention detrimental
to Bradesco's creditors to be a deposit freeze, as opposed to
currency controls.  The rating agency estimates the potential
probability of a deposit freeze to be at the 'BB+' level, the
same as the local currency rating on Brazil, and consequently
encompass this risk in the 'BB+' counterparty credit rating on
Bradesco.  While Bradesco is exposed to Brazilian country risk,
Standard & Poor's believes that it could survive the likely
economic chaos of a sovereign default due to Bradesco's:

   -- strong retail funding base, which the rating agency
      expects remain stable even during a sovereign crisis;

   -- low exposure to foreign currency in asset and liabilities;

   -- relatively conservative credit underwriting;

   -- diversified operations; and

   -- overall strong franchise and financial performance.
     
Standard & Poor's sees the economic and industry environment for
Brazilian banks more favorably, given

   -- improvements in the structure of the banking industry,
   -- banks' better profitability levels,
   -- the Brazilian Central Bank commitment to improve the
      quality and transparency of banking supervision, and
   -- signs of greater banking penetration.

Besides, overall country risks affecting the industrial sector
are also improving.
     
Bradesco's strong intrinsic creditworthiness is explained by its
above-average franchise and relevant market position in several
banking segments in Brazil, which allowed for a strong
diversification of its assets and deposits, and a track record
of deposit stability and strong liquidity.   These
characteristics, added to Bradesco's importance and relevant
size in the local market, should allow the bank to withstand the
impact of a foreign currency crisis.
     
The bank's dense retail branch network and its larger clientele
have traditionally facilitated the collection and increase of
cheap domestic deposits, even during crises.  Liquidity as a
consequence has been kept at strong levels (liquid assets
excluding repos reached around 30% in 2005).
     
The rating on Bradesco considers the bank's exposure to Brazil's
local sovereign risk through its securities and open market
portfolios of approximately 2.6x its equity.  As the local
currency has been the reference currency in Brazil, and because
of the strong volatility of the foreign currency, Bradesco
carries low exposure to foreign currency (total foreign currency
assets/liabilities of 12% of total assets).
     
The stable outlook reflects our expectation that the bank will
maintain its strong credit standings, including:

   -- the above-average diversification,
   -- strong liquidity,
   -- good profitability, and
   -- a comfortable amortization schedule of obligations.

In the case of an upgrade of the sovereign local currency
rating, the ratings on the bank would be reviewed based on its
own merits.  The rating would be raised if there were further
improvement in Brazil's economic environment, and as long as
Bradesco presents comfortable asset and liability management and
asset quality indicators under less-favorable economic
conditions and after a strong credit expansion; the bank
sustains its profitability with improving efficiency; and
improves capitalization ratios in line with international peers.  
On the other hand, if there is a deterioration on the sovereign
local currency rating, the rating on Bradesco would follow in
tandem.  The ratings would trend downward if the bank's
liquidity profile deteriorates significantly or if it presents a
more concentrated debt amortization schedule; Bradesco increases
significantly its dollar exposure or currency mismatch; or its
asset quality indicators deteriorate (nonperforming loans ratio
higher than 9%).


COMPANHIA VALE: Settles 2006 Iron Ore Prices with Mittal Steel
--------------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD concluded the iron ore price
negotiations for 2006 with Mittal Steel Group, the world's
largest steel maker.

As agreed, iron ore prices for Carajas aka SFCJ and Southern
System aka SSF fines were increased by 19.0% relatively to 2005.

CVRD reinforces its long-term commitment with clients, investing
a significant amount of resources, despite of rising investment
costs, in the production and logistics of iron ore.

For 2006, CVRD capex budget allocated US$2.1 billion for
investments in ferrous minerals.  

Currently, CVRD is developing seven projects for iron ore and
pellet production capacity expansion, which will come on stream
between 2006 and 2008.

                     About Mittal Steel

Mittal Steel -- http://www.mittalsteel.com/-- is the world's  
largest and most global steel company, with shipments of 49.2
million tons and revenues of over US$28.1 billion in 2005.  The
company owns steelmaking facilities in 16 countries, spanning
four continents.  It 224,000 people spanning 49 different
nationalities.  Its shares are listed on the New York and
Amsterdam stock exchanges.

                    About Companhia Vale

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'.


GLOBO COMUNICACAO: Prepaying Over US$150M of Outstanding Bonds
--------------------------------------------------------------
Globo Comunicacao e Participacoes S.A. will voluntarily prepay
more than US$150 million of certain of its outstanding bonds on
June 20, 2006.

The funds used for this voluntary prepayment will be obtained
from operating cash flow, as well as approximately BRL69 million
from the transaction related to the sale of the right to convert
into new shares of Net Servicos de Comunicacao S.A. certain tax
credits assessable by Net Servicos.  The proceeds of the
Transaction had been deposited in the Brazilian cash collateral
account in accordance with the terms of the Consolidated Trust
Deed dated as of July 20, 2005 and related documents underlying
such bonds.

The Debt Service Reserve Account that is in place for these
bonds will not be drawn down and will remain at its maximum
amount of approximately US$110 million.

The prepayment will be made across certain of Globo's
outstanding bonds as:
   
   Series A1

     -- Principal amount of approximately US$10,015 thousand;
        and
     -- Interest amount of approximately US$135 thousand;

   Series A2

     -- Principal amount of approximately BRL9,447 thousand; and
     -- Interest amount of approximately BRL237 thousand;

   Series B

     -- Principal amount of approximately US$131,315 thousand;
        and
     -- Interest amount of approximately US$4,035 thousand;

Holders in each of the above bond series will receive a pro-rata
prepayment in accordance with Section 6(i) of the Consolidated
Trust Deed that governs these bonds.

Globo Comunicacao e Participacoes S.A. was established from the
merger of TV Globo Ltda. and Globo Comunicacoes e Participacoes
S.A. -- Globopar.

                        *    *    *

As reported by Troubled Company Reporter on Feb. 9, 2006,
Moody's Investors Service withdrew the B1 foreign currency
corporate family rating of Globo Comunicacao e Participacoes
S.A.  The ratings have been withdrawn as Moody's no longer
maintains foreign currency corporate family ratings and for
business reasons.

                        *    *    *

As reported by Troubled Company Reporter on March 28, 2006,
Standard & Poor's Rating Services raised its foreign and local
currency corporate credit ratings on Brazilian media group Globo
Comunicacoes e Participacoes fka Globopar SA to 'BB-' from
'B+'.  S&P said the outlook on the ratings is stable.

On Oct. 19, 2005, Standard & Poor's Rating Services raised its
corporate credit ratings on Brazilian media company TV Globo
Ltda. to 'B+' from 'CCC-'.  The rating was removed from
CreditWatch Positive, where it was placed on July 21, 2005.  S&P
said the outlook is stable.

Globopar and TV Globo are part of Globo Organizations, Brazil's
largest media group.


PETROLEO BRASILEIRO: Proposes Plan to Increase Domestic Output
--------------------------------------------------------------
Petroleo Brasileiro SA or Petrobras said it presented a plan to
Brazil's National Energy Council to speed up exploration and
production of natural gas, Bloomberg News reports.

The company's proposal came as a result of Bolivia's
nationalization of its hydrocarbons sector on May 1.

Bolivia's decision prompted Brazil to seek alternative suppliers
and for Petrobras to revise its investment plans, Bloomberg
relates.

Petrobras aims to double its daily gas output to 40 million
cubic meters by 2008, eliminating the need to buy natural gas
from Bolivia.  It currently produces 15.8 million cubic meters
of gas, Bloomberg says.  

Brazilian President Luiz Inacion Lula da Silva said at a rally
in Rio Grande do Norte that his government seeks independence
from foreign oil and gas producers.  Part of the government's
strategy is to adapt gas-fired power to run on ethanol or oil,
Bloomberg states.

Early this month, Petrobras started operations of the P-50 oil
rig in the southern region of the country.  The rig is expected
to produce an average of 1.9 million barrels of oil per day this
year, more than the country's average consumption of 1.85
million barrels a day.

Meanwhile, Petrobras' director of refining technology, Paulo
Roberto Costa, was quoted by Bloomberg as saying, that the
company is testing technology to produce diesel fuel by refining
vegetable oils.  

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+


VARIG: Brazilian Appeals Court Allows BRL3-Bil. Compensation
------------------------------------------------------------
Brazil's Supreme Appeals Court upheld a ruling that the
Brazilian Federal Government must pay Viacao Aerea Riograndense
or Varig, S.A., around BRL3,000,000,000 -- US$1.4 billion -- in
compensation, a court press release said.

Varig sought compensation for losses incurred as a result of the
Federal Government's policy controlling air fares between 1985
and 1992.  The policy was among the Government's attempt to
control inflation during the period.

Varig asserted US$675,000,000 in losses resulting in a price
freeze on fares, according to an Airfinance Journal report.

The appellate court's decision will potentially offer VARIG
major relief from huge debts.

                       About Varig

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

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

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

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




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


AERCAP CORVO: Sets Final Shareholders Meeting on June 5
-------------------------------------------------------
Shareholders of Aercap Corvo Limited, fka Debis Airfinance Corvo
Limited, will gather on June 5, 2006, for a final general
meeting at the offices of:

          HSBC Financial Services (Cayman) Limited,
          2nd Floor Strathvale House 90 North Church Street
          Grand Cayman, Cayman Islands

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

As reported in the Troubled Company Reporter on May 16, 2006,
Aercap Corvo started liquidating assets on March 31, 2006.  
Verification of creditors' claims against the company will end
on May 25, 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


AFFINITY FUND: Schedules Final Shareholders Meeting on June 1
-------------------------------------------------------------
Shareholders of Affinity Fund will gather on June 1, 2006, for a
final general meeting at 10:00 a.m. at the offices of:

           Deloitte
           Fourth Floor, Citrus Grove
           P.O. Box 1787, George Town
           Grand Cayman, Cayman Islands

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

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

As reported in the Troubled Company Reporter on Dec. 1, 2005,
Affinity Fund started liquidating assets on Oct. 31, 2005.  
Creditors were required to submit proofs of claim by Dec. 28,
2005 to Stuart Sybersma, the company's appointed liquidator, for
verification.

The company's liquidators can be reached at:

           Stuart Sybersma
           Attention: Joshua Taylor
           Deloitte
           P.O. Box 1787, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-7500
           Fax: (345) 949-8258


ANNA INVESTMENT: Final Shareholders Meeting Is Set for June 1
-------------------------------------------------------------
Shareholders of Anna Investment Limited will gather on
June 1, 2006, for a final general meeting at 10:30 a.m. at the
offices of:

           Deloitte
           Fourth Floor, Citrus Grove
           P.O. Box 1787, George Town
           Grand Cayman, Cayman Islands

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

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

As reported in the Troubled Company Reporter on Jan. 2, 2006,
Anna Investment Limited started liquidating assets on Dec. 5,
2005.  Stuart Sybersma, the company's appointed liquidator,
verified the creditors' proofs of claims until Jan. 27, 2006.

The company's liquidators can be reached at:

           Stuart Sybersma
           Attention: Joshua Taylor
           Deloitte
           P.O. Box 1787, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-7500
           Fax: (345) 949-8258


ASSET FINANCE: Holds Final Shareholders Meeting on June 5
---------------------------------------------------------
Shareholders of Asset Finance Cayman Limited will gather for a
final meeting on June 5, 2006, at the offices of:

            HSBC Financial Services (Cayman) Limited
            2nd Floor Strathvale House 90 North Church Street
            Grand Cayman, Cayman Islands
            
Accounts on the company's liquidation process will be presented
during the meeting.

As reported in the Troubled Company Reporter on May 16, 2006,
the company started liquidating assets on March 31, 2006.  
Creditors of the company were required to submit particulars of
their debts or claims on or before May 25, 2006, to Sean
Brennan, the company's appointed liquidator.

Parties-in-interest may contact the liquidator 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


BANK DANAMON (CAYMAN): Moody's Upgrades Credit Rating to B1
-----------------------------------------------------------
Moody's Investors Service has raised all the constrained foreign
currency debt and deposit ratings of nine Indonesian banks,
concluding the review initiated on February 27, 2006.  The nine
banks are:

   -- Bank Danamon Indonesia (P.T.) (Cayman Islands),
   -- Bank Internasional Indonesia (P.T.) (Cayman Islands),
   -- Bank Mandiri Persero (P.T.) (Cayman Islands),
   -- Bank Negara Indonesia,
   -- Bank Niaga,
   -- Bank Permata,
   -- Bank Rakyat Indonesia,
   -- Bank Tabungan Negara and
   -- Pan Indonesia Bank.

The revised ratings carry a stable outlook.  The Not-Prime
short-term deposit and bank financial strength ratings of all
nine banks are unaffected.  

This action follows the raising on May 19, 2006 of Indonesia's
sovereign ratings - foreign currency country ceiling for debt to
B1 from B2, foreign currency bonds of the government to B1 from
B2, domestic currency issuer rating of the government to B1 from
B2 and foreign currency bank deposit ceiling to B2 from B3.

Finally, the foreign currency debt and deposit ratings of the
Indonesian banks remain constrained by the foreign currency
ceiling.

These ratings of Bank Danamon Indonesia (P.T.)(Cayman Islands)
were raised:

   -- Subordinated debt to B1 from B2, and
   -- Long-term deposit to B2 from B3.

These ratings were unaffected:

   -- Short-term deposit of Not-Prime, and
   -- Bank financial strength of D- with stable outlook.


BANK MANDIRI (CAYMAN): Moody's Ups Credit & LT Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service has raised all the constrained foreign
currency debt and deposit ratings of nine Indonesian banks,
concluding the review initiated on February 27, 2006.  The nine
banks are:

   -- Bank Danamon Indonesia (P.T.) (Cayman Islands),
   -- Bank Internasional Indonesia (P.T.) (Cayman Islands),
   -- Bank Mandiri Persero (P.T.) (Cayman Islands),
   -- Bank Negara Indonesia,
   -- Bank Niaga,
   -- Bank Permata,
   -- Bank Rakyat Indonesia,
   -- Bank Tabungan Negara and
   -- Pan Indonesia Bank.

The revised ratings carry a stable outlook.  The Not-Prime
short-term deposit and bank financial strength ratings of all
nine banks are unaffected.  

This action follows the raising on May 19, 2006 of Indonesia's
sovereign ratings - foreign currency country ceiling for debt to
B1 from B2, foreign currency bonds of the government to B1 from
B2, domestic currency issuer rating of the government to B1 from
B2 and foreign currency bank deposit ceiling to B2 from B3.

As part of this action, the subordinated debt ratings for state-
owned banks - Bank Mandiri, Bank Negara Indonesia and Bank
Rakyat Indonesia - were raised.  The changes were to reflect the
government's enhanced ability to support the banking system
given its increased resources.  In particular, these banks are
deemed important franchises given their size, government
ownership and policy roles.

Finally, the foreign currency debt and deposit ratings of the
Indonesian banks remain constrained by the foreign currency
ceiling.

These ratings of Bank Mandiri Persero (P.T.) (Cayman Islands)
were raised:

   -- Senior/subordinated debt to B1/B1 from B2/B3, and
   -- Long-term deposit to B2 from B3.

These ratings were unaffected:

   -- Short-term deposit of Not-Prime, and
   -- Bank financial strength of E+ with stable outlook.


BANK INTERNASIONAL (CAYMAN): Moody's Ups Credit Rating to B1
------------------------------------------------------------
Moody's Investors Service has raised all the constrained foreign
currency debt and deposit ratings of nine Indonesian banks,
concluding the review initiated on February 27, 2006.  The nine
banks are:

   -- Bank Danamon Indonesia (P.T.) (Cayman Islands),
   -- Bank Internasional Indonesia (P.T.) (Cayman Islands),
   -- Bank Mandiri Persero (P.T.) (Cayman Islands),
   -- Bank Negara Indonesia,
   -- Bank Niaga,
   -- Bank Permata,
   -- Bank Rakyat Indonesia,
   -- Bank Tabungan Negara and
   -- Pan Indonesia Bank.

The revised ratings carry a stable outlook.  The Not-Prime
short-term deposit and bank financial strength ratings of all
nine banks are unaffected.  

This action follows the raising on May 19, 2006 of Indonesia's
sovereign ratings - foreign currency country ceiling for debt to
B1 from B2, foreign currency bonds of the government to B1 from
B2, domestic currency issuer rating of the government to B1 from
B2 and foreign currency bank deposit ceiling to B2 from B3.

Finally, the foreign currency debt and deposit ratings of the
Indonesian banks remain constrained by the foreign currency
ceiling.

These ratings of Bank Internasional Indonesia (P.T.) (Cayman
Islands) were raised:

   -- Issuer rating to B1 from B2,
   -- Subordinated debt to B1 from B2, and
   -- Long-term deposit to B2 from B3.


These ratings were unaffected:

   -- Short-term deposit of Not-Prime, and
   -- Bank financial strength of E+ with stable outlook.


CRESECENT MEDIA: Creditors Must File Proofs of Claim by June 1
--------------------------------------------------------------
Creditors of Crescent Media Tech Global, which is being
voluntarily wound up, are required to present proofs of claim on
or before June 1, 2006, to Linburgh Martin and John Sutlic, the
company's liquidators.

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

The company started liquidating assets on April 12, 2006.

The liquidators can be reached at:

            Linburgh Martin
            John Sutlic
            Attention: Neil Gray
            Close Brothers (Cayman) Limited
            Fourth Floor, Harbour Place
            P.O. Box 1034, George Town
            Grand Cayman, Cayman Islands
            Tel: (345) 949-8455
            Fax: (345) 949-8499


EUROPEAN VENTURES: Claims Verification Deadline Is on June 1
------------------------------------------------------------
Creditors of European Ventures are required to prove  
their claims to Alain Andrey, the company's liquidator, on or
before June 1, 2006, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send their full names, addresses,
descriptions and 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 29, 2006.

The liquidator can be reached at:

         Alain Andrey
         Maples and Calder, Attorneys-at-law
         P.O. Box 309, George Town
         Grand Cayman, Cayman Islands


HAMMERMAN COUNTERPOINT: Filing of Proofs of Claim Ends on May 31
----------------------------------------------------------------
Creditors of Hammerman Counterpoint Fund, Ltd., are required to
prove their claims to Kenneth M. Krys and Joanna Chong, the
company's liquidators, by May 31, 2006, or be excluded from
receiving any distribution or payment that the company will
make.

Creditors are required to send by May 31 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 April 4, 2006.

The liquidator can be reached at:

         Kenneth M. Krys
         Joanna Chong
         P.O. Box 1370, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7100
         Fax: (345) 949-7120


ORICO HERMES: Creditors Must File Proofs of Claim by June 1
-----------------------------------------------------------
Creditors of Orico Hermes Holdings, which is being voluntarily
wound up, are required to submit proofs of claim by June 1,
2006, to Regina Forman and Darren Riley of Piccadilly Cayman
Limited, the company's liquidators.

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.

Orico Hermes began liquidating assets on April 21, 2006.

The liquidators can be reached at:

           Regina Forman
           Darren Riley
           Piccadilly Cayman Limited
           3rd Floor Royal Bank House
           George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 945-9208
           Fax: (345) 945-9210


PRECEPT FOREIGN: Liquidator Won't Accept Claims After June 2
------------------------------------------------------------
Creditors of The Precept Foreign Fund II, Ltd., are required to
submit proofs of their claims to David Sukoff, the company's
liquidator, by June 2, 2006, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send by June 2 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 April 10, 2006.

The liquidator can be reached at:

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


PRECEPT MASTER: Sets Claims Verification Deadline on June 2
-----------------------------------------------------------
David Sukoff, liquidator of The Precept Master Fund II, Ltd., a
company that is being wound up, will verify creditors' proofs of
claims until June 2, 2006.   

Creditors are required to send by June 2 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 Precept Master Fund II started liquidating assets on April
10, 2006.

The liquidator can be reached at:

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




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


* COLOMBIA: Buenaventura City's Electricity Cut
-----------------------------------------------
Electricity at Buenaventura, the main port city of Colombia, was
cut after the Revolutionary Armed Forces of Colombia aka Farc,
the leftist rebels, attacked its power installation on Friday,
the police told BBC News.

BBC News reports that the city has had two days of grenade
attacks, of which 24 people were injured.

The police informed BBC News that they had arrested children who
were used in the grenade attacks.

According to BBC News, the Farc is against President Alvaro
Uribe, who is seeking a second term.  President Uribe had vowed
to eradicate them with military force as the group has been
fighting with the government for more than four decades.

                        *    *    *

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

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

Fitch said the Rating Outlook is Stable.




===================
C O S T A   R I C A
===================


* COSTA RICA: Government Eyes Free Trade Accord with US
-------------------------------------------------------
Marco Ruiz, Costa Rica's minister of foreign trade, told Inside
Costa Rica that he is willing to approve a free trade agreement
with the United States.

The pact should be ratified before beginning similar ones with
the European union, the minister was quoted by Inside Costa Rica
as saying.

It will be necessary to pass additional laws to be sent to
Congress in June, Minister Ruiz informed Inside Costa Rica.  

Inside Costa Rica states that new laws are also needed to
strengthen the national market in the face of competition.

Inside Costa Rica reports that numerous national organizations
have opposed the trade, claiming that the Central American Free
Trade Agreement aka CAFTA will

   -- destroy national sovereignty,

   -- privatize:

         * health,
         * communications,
         * electricity,
         * water, and
         * internet services, and

   -- further impoverish farmers and small and medium producers.

According to Inside Costa Rica, Costa Rica is the only signatory
country that has not yet ratified the trade accord.

                        *    *    *

Costa Rica is rated by Moody's:

   -- CC LT Foreign Bank Depst Ba2
   -- CC LT Foreign Curr Debt  Ba1
   -- CC ST Foreign Bank Depst NP
   -- CC ST Foreign Curr Debt  NP
   -- Foreign Currency LT Debt Ba1
   -- Local Currency LT Debt   Ba1

Fitch assigned these ratings to Costa Rica:

   -- Foreign currency long-term debt, BB
   -- Local currency long-term debt, BB
   -- Foreign currency short-term debt, B

Costa Rica carries these ratings from Standard & Poor's:

   -- Foreign Currency LT Debt BB
   -- Local Currency LT Debt   BB+
   -- Foreign Currency ST Debt B
   -- Local Currency ST Debt   B




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


* CUBA: Forms Farming Corporation in Bolivia with Venezuela
-----------------------------------------------------------
Cuba will work with Venezuela and Bolivia to form a three-
national farming corporation in Bolivia, El Universal reports.

El Universal states that the corporation will be responsible in
installing food-processing facilities in the rural area in three
months.

According to El Universal, Venezuela will grant a fund of US$100
million for the organization, which will be in the context of
Bolivian President Evo Morales' agricultural policy.

Hugo Salvatierra, Bolivia's minister of rural and agricultural
development, was quoted by El Universal as saying, "We will
organize a corporation in Bolivia based on this and other
credits by means of a common fund with loans from the
international cooperation and abandonment.  This process will
exceed US$100 million."

Minister Salvatierra told El Universal that the fund from
Venezuela is necessary and will be used in productive
reactivation, lending for farmers as well as for the small and
medium-sized business.

                        *    *    *

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

                        *    *    *

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

                        *    *    *

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




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


FALCONBRIDGE LTD: Earns US$238 Mil. for the Month of April 2006
---------------------------------------------------------------
Falconbridge Limited reported April 2006 net income of US$238
million with earnings per share of US$0.64 basic and US$0.63
diluted.  This compares with April 2005 net income of US$81
million with earnings per share of US$0.27 basic and US$0.27
diluted.

                    April 2006 HIGHLIGHTS

                Financial Results (unaudited)

                                             Apr   Apr   Q1   Q1
US$ millions, except per share information  2006  2005 2006 2005

Revenues                                  1,288  663 2,858 1,894

Income generated by operating assets(i)    422   165   739  459

Net income                                 238    81   462  176

Basic earnings per common share           0.64  0.27  1.23  0.58

Diluted earnings per common share         0.63  0.27  1.21  0.57

   -- Revenues almost doubled to US$1.3 billion from the month
      ended April 30, 2005;

   -- Achieved income from operating assets of US$422 million,
      a 156% increase from April 2005;

   -- Realized net income of US$238 million, a 194% increase
      from April 2005;

   -- April 2006 realized prices were significantly higher
     (vs. April 2005): copper was up 87%, nickel up 6%,
      zinc up 118%, aluminum up 22%; and

   -- In light of the strong cash generation, will redeem the
      remaining outstanding Junior Preference Shares for
      approximately US$253 million.

"Falconbridge's performance for the month of April further
demonstrates our leverage to strong metals prices," said Derek
Pannell, Chief Executive Officer of Falconbridge.  "Our
operations again capitalized on the higher prices with their
strong performance.  Our earnings leverage to current metals
prices is creating the backdrop for impressive earnings and free
cash flow generation.  While we realize that the release of
monthly results is unusual, and we will not make a habit of it,
we felt it was important that shareholders understand the
magnitude of the earnings that we are generating at this crucial
time."

                   Corporate Developments

Xstrata Offer

On May 18, 2006, Xstrata PLC made its unsolicited offer to
purchase for cash all of the outstanding common shares of
Falconbridge.  The Xstrata offer is conditional on the approval
by Xstrata shareholders and on the receipt of all required
regulatory clearances.  The Falconbridge Board of Directors will
evaluate the terms of the offer and provide Falconbridge
shareholders with a formal response.

Inco Offer

On May 13, 2006, Inco Limited announced an improved offer to
acquire all outstanding common shares of Falconbridge.  The
improved offer is comprised of part cash and part Inco common
shares, which when pro-rated subject to the maximum amounts
offered would provide CDN$12.50 and 0.524 of an Inco common
share for each Falconbridge common share.  Assuming the full
pro-ration, the amended Inco offer provides Falconbridge
shareholders with an additional CDN$5.00 per common share or a
total of CDN$1.9 billion more in value compared to the original
offer.  Both Boards of Directors unanimously endorsed the Inco
offer and the Falconbridge Board has recommended that the
Company's shareholders tender their shares to the offer, which
remains open for acceptance to June 30, 2006.

The combined organization, which would be known as Inco Limited,
would be one of the world's premier mining and metals companies.  
It would be the world's largest producer of nickel and eighth-
largest producer of copper, and would also operate integrated
zinc and aluminum businesses. The new company would have one of
the mining industry's most attractive portfolios of low-cost,
profitable growth projects and would benefit from estimated
annual synergies of approximately US$390 million - a revised
higher estimate than the original US$350 million synergies
estimate due to the impact of higher metals prices.

Inco and Falconbridge continue to work with the U.S. Department
of Justice and the European Commission in connection with their
respective reviews of the pending transaction.

Redemption of Junior Preference Shares

Falconbridge intends to redeem the remaining balance of its
9,999,701 outstanding Junior Preference Shares for a total of
approximately US$253 million.  The Junior Preference Shares will
be redeemed on June 28, 2006 under a notice of redemption to be
sent to shareholders of record on May 25, 2006.  Falconbridge
intends to utilize its internal cash resources to fund the
redemption and will have no Junior Preference Shares outstanding
upon redemption.

In accordance with the terms of the Junior Preference Shares,
Falconbridge will redeem the remaining balance of shares of each
series of the Junior Preference Shares as follows:

   -- 3,999,899 Junior Preference Shares, Series 1;
   -- 3,999,899 Junior Preference Shares, Series 2; and
   -- 1,999,903 Junior Preference Shares, Series 3.

Each Junior Preference Share will be redeemed at a price of
US$25.25 plus accrued and unpaid dividends for the period from
and including March 31, 2006 to and including June 27, 2006.

                     Financial Results

Revenues for the month of April of 2006 were US$1,288 million,
94% higher than revenues of US$663 million in the same month of
2005.  The increase was mainly due to higher realized metal
prices and product premiums and higher copper sales volumes and
increased revenue contribution from by-product credits.  
Business unit revenues were:

   -- 147% higher for copper,
   -- 11% higher for nickel,
   -- 278% higher for zinc and
   -- 27% higher for aluminum.

Operating expenses were higher at US$866 million in April 2006,
compared to US$498 million in the same month last year,
primarily due to the higher value of raw material feeds and
continual pressure on costs from energy and supply costs, as
well as the effects of the weakening U.S. dollar.  Mining,
processing and refining costs increased to US$275 million from
US$194 million in April of 2005 due to:

   -- higher levels of mined and refined copper production;
   -- higher energy and supplies/consumables costs; and
   -- the impact of a weaker U.S. dollar on operating costs at
      all Canadian and South American operations.

The average value of the Canadian dollar increased 7% to US$0.87
from US$0.81 in April of 2005.

The value of raw material feed purchases was US$537 million,
compared to US$260 million in April 2005, due to higher metal
prices and increased custom feed processing at copper
operations.  Higher purchased raw materials values are recovered
at the time of sale of the metals contained in the materials
treated and are generally hedged at the time of purchase.

Depreciation, amortization and accretion expense increased to
US$54 million from US$44 million in April 2005, with US$10
million of the increase being attributable to the amortization
of the fair value increment related to the purchase of the
former Falconbridge minority shareholders' interest and the
resulting increase in the book value of the assets acquired.  
Net interest expense increased to US$15 million from US$9
million in April of last year due mostly to the impact of the
junior preferred share liabilities issued pursuant to the issuer
bid completed in early May 2005.  Interest expense included a
one-time early redemption premium of US$5 million paid to the
holders at the time of the partial redemption of the junior
preference shares in April 2006.  Minority interest in earnings
of subsidiaries decreased to US$1 million from US$35 million
largely as a result of the elimination of the former
Falconbridge minority share ownership.  Tax expenses recorded
increased to US$155 million from US$24 million in April of 2005,
due to the overall increase in profitability.

Income generated by operating assets for April 2006 was US$422
million, 156% higher than US$165 million generated in April of
2005.  Income generated by operating assets:

   -- increased US$242 million to US$300 million in the copper
      business,

   -- decreased US$17 million to US$69 million in the nickel
      business,

   -- increased US$47 million to US$59 million in the zinc
      business and

   -- increased US$7 million to US$20 million in the aluminum
      business.

For April 2006, net income totaled US$238 million, or US$0.64
per basic common share and US$0.63 per diluted common share,
194% higher than net income of US$81 million or US$0.27 per
basic and US$0.27 per diluted common share in April 2005.  
Higher net income reflects higher realized metal prices, higher
treatment and refining charges received at copper smelters and
refineries and the impact of increased by-product revenue
credits.

             Supplemental Performance Measures

Income generated from operating assets is defined as:

   -- net income before interest expense;
   -- net corporate and general administration;
   -- research, development and exploration;
   -- minority interest in earnings of subsidiaries;
   -- gain, net of restructuring costs and other; and
   -- tax expense.

Since this measure captures the Company's key revenues and
operating expenses of assets currently in operation, income
generated from operating assets is a key performance measurement
that management uses to evaluate the performance of both
individual assets and business units.

              Liquidity and Capital Initiatives

Long-term debt was US$2.5 billion at the end of April excluding
preferred share liabilities.  Falconbridge's net-debt-to-
capitalization ratio stood at 32.8% at the end of April 2006, a
reduction of almost 400 basis points since the end of 2005.

Falconbridge disclosed its plan to redeem for cash of US$253
million, its remaining outstanding Junior Preference Shares on
June 28, 2006. Falconbridge has benefited from high earnings and
cashflow generation and will utilize existing cash balances to
fund the redemption.

For 2006, the Company's projected capital investments are
approximately US$315 million for sustaining capital expenditures
and other smaller projects and approximately US$435 million in
new copper and nickel investments.

Falconbridge maintains long-term credit arrangements and
relationships with a variety of financial institutions and
investors in order to facilitate its ongoing access to domestic
and international financial markets to meet its funding needs.  
Falconbridge's future financial requirements related to:

   -- debt maturities,
   -- operating costs,
   -- the projects currently under development and
   -- other capital investments

will be funded primarily from a combination of:

   -- existing cash balances,
   -- committed bank lines,
   -- operating cash flows,
   -- project financing and
   -- new long- and short-term borrowings.

The Company's committed bank facilities, which expire in 2010,
total US$780 million.  At April 30, 2006, these lines were
essentially undrawn.

                    Review of Operations

   Copper

      -- Production of mined copper in concentrate for the
         month was 42,800 tons versus 35,000 tons during
         April 2005, an increase of 22% due to increased output
         at Antamina, Collahuasi and Kidd Creek.  Refined copper  
         production for the month was 53,200 tons versus
         41,400 tons during April 2005, an increase of 29%
         from a year ago.

         Sales of copper in concentrate to third parties in
         April was 16,100 tons versus 18,000 tons during
         April 2005, a decrease of 11% from a year ago.
         Sales of refined copper for the month was 50,400 tons
         versus 37,900 tons during April 2005, an increase of
         33% from a year ago.  Realized copper premiums above
         LME prices were greater than US$0.07/lb.

   Nickel

      -- Production of mined nickel in concentrate for the
         month was 4,100 tons versus 4,000 tons during April
         2005, an increase of 3% from a year ago.  Refined  
         nickel production for the month was 7,200 tons versus
         7,100 tons during April 2005.  Ferronickel production
         for the month was 2,500 tons versus 2,400 tons during
         April 2005, an increase of 4% from a year ago.

         Total nickel sales for the month were 2% higher at
         10,000 tons.  Sales of refined nickel for the month was
         6,900 tons versus 7,600 tons during April 2005.  Sales
         of ferronickel for the month was 3,100 tons versus
         2,200 tons during April 2005.  Stainless steel
         production has been particularly robust in the U.S. and
         China, resulting in nickel cathode and melting grade
         premiums having risen to US$0.35/lb.

   Zinc

      -- Production of mined zinc in concentrate for the month
         was 33,200 tons versus 41,100 tons during April 2005, a
         decrease of 19% from a year ago. Mined zinc production
         and sales are lower year over year due to mostly to
         higher copper versus zinc grades at Antamina and the
         closure of the Louvicourt mine in the second half of
         2005.  Kidd Creek refined zinc production for the month
         was 12,400 tons versus 10,900 tons during April 2005,
         an increase of 14% from a year ago.  Refined lead
         production for the month was 7,500 tons versus 7,900
         tons during April 2005.

         Sales of zinc in concentrate for the month was
         56,100 tons versus 31,600 tons during April 2005, an
         increase of 78% from a year ago.  Sales of zinc
         concentrate were higher during the month due to the
         timing of vessel shipments.  Sales of refined zinc for
         the month was 12,300 tons versus 12,900 tons during
         April 2005, a decrease of 5% from a year ago.  Zinc
         sales in North America are experiencing strong demand
         after the closure of a U.S. zinc smelter earlier this
         year and the rise in spot market premiums to
         US$0.08/lb. have reflected this tightness.

   Aluminum

      -- Primary aluminum production for the month was 20,800
         tons versus 20,500 tons during April 2005, an increase
         of 1% from a year ago.

         Sales of primary aluminum for the month was 16,700 tons
         versus 17,700 tons during April 2005, a decrease of 6%
         from a year ago.  Fabricated aluminum shipments were
         15,800 tons versus 14,300 tons during the month of
         April 2005, an increase of 10% from a year ago.  
         Primary aluminum and fabricated aluminum sales continue
         to benefit from strong mid-West U.S. demand.


                      FALCONBRIDGE LIMITED
                CONSOLIDATED STATEMENT OF INCOME
                     (US$ millions, unaudited)


                                              Month ended
                                              April 30 (1)

                                             2006        2005

Revenues                                   $ 1,288       $ 663

Operating expenses
Mining, processing and
refining costs                                 275         194
Purchased raw materials                        537         260
Depreciation, amortization
and accretion                                   54          44

                                               866         498

Income generated by operating assets           422         165

Interest expense, net                           15           9
Corporate and general administration             8           7
Research, development and exploration            5           6
Minority interest in earnings
of subsidiaries                                  1          35
                                         
Income before undernoted                        393         108

Other expense                                     -           1
Tax expense                                     155          24

Net income from continuing operations         $ 238        $ 83

Discontinued operations, net of tax               -           2
             
Net income                                    $ 238        $ 81

Dividends on preferred shares                     -           2

Net income attributable to common shares      $ 238        $ 79

Net income per common share - Basic
Continuing operations                       $ 0.64      $ 0.27
Discontinued operations                          -           -

Net income                                  $ 0.64      $ 0.27


Net income per common share - Diluted
Continuing operations                       $ 0.63      $ 0.27
Discontinued operations                          -           -

Net income                                  $ 0.63      $ 0.27


Basic weighted average number of
shares - 000s                               372,361     297,557
Diluted weighted average number of
shares - 000s                               379,774     304,535



                     FALCONBRIDGE LIMITED
                 CONSOLIDATED BALANCE SHEETS
                       (US$ millions)


                                Apr. 30    Mar. 31  Dec. 31
                                  2006       2006     2005
                               (Unaudited)(Unaudited)(Audited)

Assets

Current assets
Cash and cash equivalents        $ 465    $ 1,000    $ 886
Accounts receivable              1,706      1,269    1,007
Metals and other inventories     2,087      1,788    1,708
        
                                  4,258      4,057    3,601


Operating capital assets          6,712      6,728    6,803
Development projects              1,848      1,794    1,707
Investments and other assets        292        297      307

                                $ 13,110   $ 12,876 $ 12,418


Liabilities and Shareholders' Equity

Current Liabilities
Accounts and taxes payable      $ 2,033    $ 1,668  $ 1,691
Debt and preferred share
Liabilities due within one
year (Note 1)                       603        853      353

                                   2,636      2,521    2,044

Long-term debt                     2,545      2,534    2,598
Preferred share liabilities          131        376      876
Future income taxes                1,361      1,264    1,156
Asset retirement obligation,
pension and other provisions         665        651      659

Stockholders' interests:
Interests of other shareholders      57         56       54
Shareholders' equity              5,715      5,474    5,031

                                $ 13,110   $ 12,876 $ 12,418


                                   2006      2005
REALIZED PRICES(2)                April     April

Copper (US$/lb)                   2.98      1.59
Nickel (US$/lb)                   8.02      7.54
Ferronickel (US$/lb)              6.96      7.44
Zinc (US$/lb)                     1.42      0.65
Lead (US$/lb)                     0.61      0.50
Aluminum (US$/lb)                 1.17      0.96
Molybdenum (US$/lb)              31.47     22.34
Cobalt (US$/lb)                  13.72     15.87
Silver (US$/oz)                  11.18      7.47
Gold (US$/oz)                   600.77    416.22

REALIZED EXCHANGE RATE

US$ equivalent of Cdn$1.00        0.87      0.81

  
                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL)  -- http://www.falconbridge.com/
-- produces nickel products.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi and Lomas Bayas mines.  Its other
products include cobalt, platinum group metals, and zinc.

                        *    *    *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carries Standard & Poor's BB+ rating.


FALCONBRIDGE LTD: Brunswick Employees Approve Collective Pact
-------------------------------------------------------------
Falconbridge Limited disclosed that employees at Brunswick Mine,
members of United Steelworkers of America, Local 5385, have
voted in favor of a new collective agreement.  The prior
agreement expired on Feb. 28, 2006.

The new agreement will be in effect up to and including closure
of the Brunswick mine scheduled for early 2010.  Highlights of
the agreement include:

   -- A downsizing provision at closure that defines how
      seniority will apply, how termination will be carried out
      and how pensions and severances will be provided to
      workers.

   -- Wage increases of CDN$0.25 per hour for each year of the
      agreement.

   -- An increase in the basic pension from CDN$47 per month per
      year of service to CDN$52 at closure.

The Brunswick mine, located 30 kilometres south of Bathurst, New
Brunswick, employs over 800 people, with approximately 670 being
members of the USWA-Local 5385.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL)  -- http://www.falconbridge.com/  
-- produces nickel products.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi and Lomas Bayas mines.  Its other
products include cobalt, platinum group metals, and zinc.

                        *    *    *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carries Standard & Poor's BB+ rating.


* DOMINICAN REPUBLIC: Market Interests Korean Investors
-------------------------------------------------------
Korean industrialists have expressed interest in participating
in the Dominican Republic's market, Dominican Today reports.

Dominican Today relates that Jung Hun Lee, the director of the
Korean commercial office in the Dominican Republic, met with the
government and commerce leaders on in the Ambassador Hotel on
May 19.

According to Dominican Today, the Korean companies visited the
country to associate with possible representatives in the local
market.  They showcased:

    -- products related to alternative energy systems,
    -- satellite antennas,
    -- hydraulic valves,
    -- fishing marine scanners,
    -- perfumed showers,
    -- water purifying, and
    -- laser beam equipment for skin treatments.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

   -- Short-term Issuer Default Rating: B.

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

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

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


* DOMINICAN REPUBLIC: Textile Trade with US Successful
------------------------------------------------------
The Dominican Republic's textile traded with the United States
was successful, amounting to US$9,673 million, the country's
International Commerce Commission -- USITC -- told Dominican
Today.

According to the paper, the Dominican Republic has had
successful trade with the US in the textile industry for the
last 10 years.  From 1996 to 2005, the country has exported
textile products for US$22,206 million to the US.  Its imports
from the US, on the other hand, amounted to US$12,533 million.

Dominican Today relates that among the textile products the
country ships to the US include:

     -- cotton articles (48% of the textile export),
     -- synthetic fiber articles (9%),
     -- brassieres (6%),
     -- socks (5%),
     -- wool articles (3%), and
     -- other articles (29%).

Dominican Today states that the products the country imports
from US are:

     -- sewing thread,
     -- visible linings, and
     -- narrow elastic.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

   -- Short-term Issuer Default Rating: B.

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

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

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




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


PETROECUADOR: Occidental Lends Oil Field Software Until May End
---------------------------------------------------------------
Petroecuador, the state oil firm of Ecuador, will be able to use
US firm Occidental Petroleum Company's oil field operating
software until the end of the month, Jaime Crow -- the vice
president of Petroecuador's operating unit, Petroproduccion
-- informed Dow Jones Newswires.

Petroecuador is afforded more time to negotiate new operating
licenses with the software manufacturers, Mr. Crow told Dow
Jones.

Dow Jones recalls that Petroecuador took over Occidental's
Ecuadorian operations last week after the government revoked
Occidental's operating contracts for three oil fields on grounds
that it had breached terms.   These fields are:

    -- Block 15,
    -- Limoncocha, and
    -- Eden-Yuturi.

Mr. Crow denied to Dow Jones that supplies and spare parts for
the three fields, which produce around 100,000 barrels a day,
are running low.

The economy ministry has not yet transferred US$30 million to
the Petroecuador to help pay for the operational transition, and
former workers of Occidental may pressure the state oil firm to
give them work contracts, Dow Jones relates.

                        *    *    *

The Troubled Company Reporter - Latin America reported on
May 8, 2006, that Petroecuador's employees are threatening to
launch a strike if the government won't provide funding
necessary for the company's operations.  Reports said that
Petroecuador has no funds for maintenance and no funds to repair
pumps in diesel, gasoline and natural gas refineries.

Ecuador's Economy Minister Diego Borja demanded more efficiency
from the state oil company as well as transparency in its
accounts.

Petroecuador has asked the government for US$279 million to pay
debts to suppliers, outsourcing firms and other creditors
threatening to halt services.


* ECUADOR: Will Refine Gas in Venezuela to Reduce Costs
-------------------------------------------------------
Ivan Rodriguez, the energy minister of Ecuador, informed Xinhua
News Agency that the country will refine its gas in Venezuela to
reduce refining costs by US$300 million.

Xinhua relates that Ecuador has a product deficit in energy of
US$1.5 billion.  According to Minister Rodriguez, it was not
just due to imports, but also because of smuggling.

Minister Rodriguez told a local television that he believed he
would soon strike a deal on refining Ecuador's petrol in
Venezuela.  

Ecuador is currently interested in cutting the costs of imported
crude oil derivatives, Minister Rodriguez informed Xinhua.

Xinhua relates that the minister expected the processing of
crude in the refineries of Petroleos de Venezuela aka PDVSA,
Venezuela's state-run oil firm, to start in 45 days.

                        *    *    *

Fitch Ratings assigns 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




=====================
E L   S A L V A D O R
=====================


* EL SALVADOR: Economist Discourages Free Trade Pact with US
------------------------------------------------------------
Free Trade Agreement aka FTA with the United States would beat
El Salvador's agricultural sector and encourage immigration in
the country, economist Cesar Villalona told Inside Costa Rica.

Inside Costa Rica relates that Mr. Villalona believes
millionaires will be the only survivors in the FTA.  According
to him, the country's farmers will be forced to leave their
lands due to competitive inequality.  They will be rented by the
tycoons, he said.

There is a legislation that does not allow the purchase of lands
but favors acquisition through leasing, Mr. Villalona was quoted
by Inside Costa Rica as saying.

El Salvador nationals will not be allowed to export products
like pork meat, iguana soup and fresh fruits, Inside Costa Rica
adds.

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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




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


* GUATEMALA: Denies Honduras' Accusations of Coffee Smuggling
-------------------------------------------------------------
Honduran officials claim that coffee beans are being smuggled
from the country into Guatemala to gain from higher prices,
Reuters reports.  

The officials added that the tax breaks in Guatemala has
worsened but the latter makes light of the claims, Reuters says.  

According to Reuters, the smugglers have moved their sights to
the less preferred coffee beans in Honduras due to higher
premiums that are being paid for Guatemala's famous coffee on
international markets and changes to tax regimes in both
countries.

Exporters in Guatemala confess that some Honduran coffee beans
are illegally traded into the country but disputes the claimed
amount of 767,000 sixty-kilogram bags made by Honduras, Reuters
says.

Most of the illegal imports were obtained from the mountainous
growing regions in western and northern Honduras, which is near
to the border of Guatemala.  The coffee beans from these areas
are those of the best hard or Hb and strictly hard bean or SHB
qualities, Reuters says.

"Our coffee continues to be smuggled to Guatemala. We estimate
that in this harvest 767,000 60-kg bags will go to that
country," Honduran Coffee Institute Technical Manager Omar Funez
told Reuters. "The Guatemalans then export this coffee as
specialty coffee since it is good quality."

Reuters relates that Honduran officials estimate that smuggled
coffee for 2006 will be twice as much as in the earlier
harvests.

In response to this claim, Guatemala's Gerardo de Leon of the
cooperative federation Fedecocagua told Reuters that the culprit
behind all this smuggling is tax fraud.  He added that the
number of smuggled goods is not likely to reach half of the
estimated claim by the Honduran officials.

"The smuggling goes on because in Guatemala there is a business
behind the coffee that is not the coffee itself," Mr. De Leon
related to Reuters.  "Smugglers use their resales of the coffee
to claim tax refunds from Guatemala's value added tax of 12
percent afforded to coffee intermediaries."

According to Reuters, Honduran producers eagerly sell to
smugglers because they earn more then selling legally to local
firms.  They are offered a price of US$0.05 and US$0.07 per
pound by the smugglers.

Reuters says that the New York Coffee, Sugar and Cocoa Exchange
sets US$0.02 to US$0.04 per pound floor price for Guatemala's HB
coffee and US0.03 per pound below the CSCE price for Honduras'
HB coffee.

As of the harvest in fiscal year 2003/2004, the Honduran
government charges a tax of US$0.04 per pound of exported coffee
in the event of the market pricing below US$0.90 per pound,
while US$0.09 per pound is taxed when it reaches above that
level, Reuters says.  The money acquired from the taxes is
funded to farm debts, Reuters adds.

Guatemala's officials continue to deny the claims by Honduras
even though in certain years the country's exports have exceeded
the total production, Reuters relates.

In response to the massive contraband accusation by their
neighboring country, Guatemalan officials claim that the amount
of smuggled imports in the country is the same as the amount of
Guatemalan-grown coffee slipped in the Mexico border, Reuters
says.

Reuters relates that smugglers use the previously known drug
smuggling route that are supposed blind spots along the border
to sneak in coffee from Honduras to Guatemala.

"We have reports from growers in the border areas with Guatemala
that caravans of 10 to 15 trucks loaded with coffee leave
daily," Mr. Funez told Reuters.  He added that the illegal
importation would not greatly affect IHCAFE's estimated 2.76
million 60-kg bags of coffee for fiscal year 2005/2006 since
they already include in their estimate the growing smuggling
into Guatemala.

However, according to a leading coffee grower in Copan Marion
Peraza, the police did not stop the smugglers' practice, Reuters
relates.  Copan is a tourist site near Guatemala and one of
Honduras' best coffee-growing spots.

Reuters says that Honduras and Guatemala with a combined total
production of 6.7 million bags that account for 6.1% of global
output, are two of the largest coffee exporters in Central
America.


                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

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


                        *    *    *

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




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


* HONDURAS: Alarmed at Increasing Operations of Smuggled Coffee
---------------------------------------------------------------
Honduran officials claim that coffee beans are being smuggled
from the country into Guatemala to gain from higher prices,
Reuters reports.  

The officials added that the tax breaks in Guatemala has
worsened but the latter makes light of the claims, Reuters says.  

According to Reuters, the smugglers have moved their sights to
the less preferred coffee beans in Honduras due to higher
premiums that are being paid for Guatemala's famous coffee on
international markets and changes to tax regimes in both
countries.

Exporters in Guatemala confess that some Honduran coffee beans
are illegally traded into the country but disputes the claimed
amount of 767,000 sixty-kilogram bags made by Honduras, Reuters
says.

Most of the illegal imports were obtained from the mountainous
growing regions in western and northern Honduras, which is near
to the border of Guatemala.  The coffee beans from these areas
are those of the best hard or Hb and strictly hard bean or SHB
qualities, Reuters says.

"Our coffee continues to be smuggled to Guatemala. We estimate
that in this harvest 767,000 60-kg bags will go to that
country," Honduran Coffee Institute Technical Manager Omar Funez
told Reuters. "The Guatemalans then export this coffee as
specialty coffee since it is good quality."

Reuters relates that Honduran officials estimate that smuggled
coffee for 2006 will be twice as much as in the earlier
harvests.

In response to this claim, Guatemala's Gerardo de Leon of the
cooperative federation Fedecocagua told Reuters that the culprit
behind all this smuggling is tax fraud.  He added that the
number of smuggled goods is not likely to reach half of the
estimated claim by the Honduran officials.

"The smuggling goes on because in Guatemala there is a business
behind the coffee that is not the coffee itself," Mr. De Leon
related to Reuters.  "Smugglers use their resales of the coffee
to claim tax refunds from Guatemala's value added tax of 12
percent afforded to coffee intermediaries."

According to Reuters, Honduran producers eagerly sell to
smugglers because they earn more then selling legally to local
firms.  They are offered a price of US$0.05 and US$0.07 per
pound by the smugglers.

Reuters says that the New York Coffee, Sugar and Cocoa Exchange
sets US$0.02 to US$0.04 per pound floor price for Guatemala's HB
coffee and US0.03 per pound below the CSCE price for Honduras'
HB coffee.

As of the harvest in fiscal year 2003/2004, the Honduran
government charges a tax of US$0.04 per pound of exported coffee
in the event of the market pricing below US$0.90 per pound,
while US$0.09 per pound is taxed when it reaches above that
level, Reuters says.  The money acquired from the taxes is
funded to farm debts, Reuters adds.

Guatemala's officials continue to deny the claims by Honduras
even though in certain years the country's exports have exceeded
the total production, Reuters relates.

In response to the massive contraband accusation by their
neighboring country, Guatemalan officials claim that the amount
of smuggled imports in the country is the same as the amount of
Guatemalan-grown coffee slipped in the Mexico border, Reuters
says.

Reuters relates that smugglers use the previously known drug
smuggling route that are supposed blind spots along the border
to sneak in coffee from Honduras to Guatemala.

"We have reports from growers in the border areas with Guatemala
that caravans of 10 to 15 trucks loaded with coffee leave
daily," Mr. Funez told Reuters.  He added that the illegal
importation would not greatly affect IHCAFE's estimated 2.76
million 60-kg bags of coffee for fiscal year 2005/2006 since
they already include in their estimate the growing smuggling
into Guatemala.

However, according to a leading coffee grower in Copan Marion
Peraza, the police did not stop the smugglers' practice, Reuters
relates.  Copan is a tourist site near Guatemala and one of
Honduras' best coffee-growing spots.

Reuters says that Honduras and Guatemala with a combined total
production of 6.7 million bags that account for 6.1% of global
output, are two of the largest coffee exporters in Central
America.

                       *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

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


                        *    *    *

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: Denies Delay of Negotiations on Mining Law Reform
-------------------------------------------------------------
Defomin, the mining promotion board of Honduras, denied reports
that talks in congress regarding the reform of the mining law
have been delayed, Business News Americas reports.

Peter Hughes, the head of Defomin's environmental department,
told BNamericas that the law will continue to be discussed and
that in two or three weeks it could be ready.

BNamericas states that these changes in the law are expected:

    -- increase of the municipal tax on export revenue for
       hosting a deposit from 1% to 2%,

    -- 0.5% additional charge on export revenue that would add
       to social development funds for use in communities around
       the mining project, and

    -- open consultation process between the operator and the
       community before moving on to the development phase.

Mr. Hughes informed BNamericas that these points have been
discussed in congress without changes.

According to reports by both local and international media, the
reform was postponed due protests held by the Catholic Church
and the communities in Francisco Morazan department.

Reports say that mining operations of foreign firms have
allegedly affected the communities.

Mr. Hughes informed BNamericas that the affected areas have been
investigated and it has been found out that there are
concentrations of toxic substances but not enough to speak in
terms of contamination.

There have also been reports saying that opposing opinions
between mining firms and environmentalists makes it difficult
for the congress to decide on mining terms.  To the firms, the
prohibition of open pit mining is a bid to outlaw mining.  This
would drive investment away from the country.  
Environmentalists, on the other hand, believe that the
government should prohibit open pit mining due to the use of
toxic substances that contaminate the environment.

                        *    *    *

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
=============


AIR JAMAICA: Wage Reform for Attendants Ends Conflict with Union
----------------------------------------------------------------
The conflict at Air Jamaica ended after the airline's management
and the Bustamante Industrial Trade Union aka BITU agreed on a
new wage for 341 flight attendants, the Jamaica Observer
reports.

According to the Observer, an agreement was reached in a meeting
that lasted for nine hours at the office of the Ministry of
Labor and Social Security.  Radio Jamaica relates that the
airline's flight attendants accepted the new wage offered by the
management.  

The labor ministry said in a statement, "Both parties, through
exhaustive discussions, arrived at an amicable agreement to
demonstrate their commitment to the continued growth of the
national airline.  The union will meet with its membership at
the end of the week to ratify the agreement."

Radio Jamaica recalls that the wage deal was created during an
emergency meeting at the ministry on Wednesday.  The meeting was
called after the attendants threatened to hold a strike if
salaries are not raised.

As reported in the Troubled Company Reporter on May 2, 2006, the
union had been waiting since 2005 to reach a new agreement on
the wages with Air Jamaica.

Details of the accord could not be revealed as the union was
scheduled to meet with the workers on May 19 to discuss the
offers and get their response, Ruddy Spencer, the head of BITU,
told the Observer.

The Observer reveals that Mr. Spencer seemed confident that the
attendants would accept the offers.

The wage contract will be implemented on June 1, Kavan Gayle,
BITU's assistant general secretary, told Radio Jamaica.

                        *    *    *

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.




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


COMISION FEDERAL: Launches Tender for La Yesca Construction
-----------------------------------------------------------
A tender for the construction of a 750MW La Yesca hydroelectric
generation project in the states of Jalisco and Nayarit has been
launched by the Comision Federal de Electricidad aka CFE, the
state power firm of Mexico, the official gazette reports.

Business News Americas reports that a site tour will be held on
May 25 and an informational meeting will follow on June 8.

BNamericas relates that the bidding rules will be available
through Sep. 22, 2006.  Offers will due on Sep. 28.  The winner
of the bidding process can access a development bank loan to
help cover costs in the construction.

The official gazette says that the project could cost up to US$1
billion.

Fernando Canales, Mexico's energy minister, had previously told
BNamericas that these firms have been deemed as possible
participants in the bidding:

     -- Empresas ICA,
     -- Consorcio Ideal,
     -- Construccese Comercio,
     -- Camargo Correa,
     -- Constructora Cota,
     -- Tradeco Infraestructura,
     -- Compania Contratista Nacional, and
     -- Consorcio Aristos.

According to BNamericas, construction will start in November and
is scheduled to be completed by the end of the first half of
2011.  La Yesca will be built under the financed public works
scheme of CFE.

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%).

CFE incurred MXN119 billion loss in 2004 after registering a
MXN6.2 billion loss in 2003.


EL POLLO: S&P Will Raise Credit Rating to B+ Upon IPO Completion
----------------------------------------------------------------
Standard & Poor's Ratings Services expects to raise its
corporate credit rating on Irvine, Calif.-based El Pollo Loco
Inc. to 'B+' from 'B' upon the successful completion of the
company's planned IPO.  The outlook will be stable.
     
Ratings on El Pollo remain on CreditWatch, where they were
placed with positive implications on May 9, 2006, after the
company announced plans for a US$135 million IPO.
     
Standard & Poor's also assigned a 'B+' rating, same as the
expected corporate credit rating, to the company's planned
US$200 million senior secured bank loan.  A recovery rating of
'2' is also assigned to the loan, indicating the expectation for
substantial (80%-100%) recovery of principal in the event of a
payment default.  Proceeds from the IPO and bank loan will be
used to repay debt, including the current bank loan, redeem
notes, and pay a fee to Trimaran Capital to terminate its
management agreement.
      
"The expected upgrade will be based on reduced leverage, as
total debt to EBITDA will decrease to about 5.5x from about
7.0x," said Standard & Poor's credit analyst Robert
Lichtenstein.
     
The ratings on El Pollo Loco reflect the company's small size in
the highly competitive quick-service sector of the restaurant
industry, regional concentration, reliance on a primary product,
and a still-highly leveraged capital structure.  El Pollo Loco
is a small player in the highly competitive quick-service
chicken sector of the restaurant industry.


J.L. FRENCH: Can Lend Up to US$1.2 Mil. to Ansola Foreign Unit
--------------------------------------------------------------
The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware gave J.L. French Automotive Castings,
Inc., and its debtor-affiliates permission to lend funds to
their non-debtor affiliate J.L. French Ansola, S.R.L.

Judge Walrath clarified that the loan should not exceed $1.2
million and the total loan extended to all of the Debtors'
foreign subsidiaries and J.L. French Automotive Castings China
Holdings LLC should not exceed $3 million.

As reported in the Troubled Company Reporter on April 13, 2006,
the Court allowed the Debtors to advance funds to J.L. French
Automotive Castings China Holdings LLC, a non-debtor affiliate.

The Debtors told the Court that the funds will be used to
capitalize China Holdings' foreign-equity joint venture with
Chonqing Yujiang Die Casting Co., Ltd., and Chongqing Liangjiang
Machine Manufacture Co., Ltd.  Yujiang is a die-casting company
and Lianjiang is a machining company, both currently do the bulk
of their business supplying China's motorcycle original
equipment manufacturers.

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.  Ricardo Palacio, Esq., and William
Pierce Bowden, Esq., at Ashby & Geddes, PA, represents the
Official Committee Of Unsecured Creditors.  When the Debtor
filed for chapter 11 protection, it estimated assets and debts
of more than US$100 million.




=================
N I C A R A G U A
=================


* NICARAGUA: Coffee Exports Upped 48% at 175,915 Bags in April
--------------------------------------------------------------
he Nicaraguan Export Center or Cetrex disclosed an increase of
48% in coffee exports in April for the crop cycle in fiscal year
2005-2006, which totaled to 175,915 60-kg bags, Dow Jones
Newswires reported.

According to a monthly report from Centrex, in April 2005, total
exported coffee totaled 118,828 bags.

In the period of Oct. to April in the current fiscal year, the
total export reached 739,121 bags, which accounted for a 26%
increase from the 587,495 bags in the same period in fiscal year
2004/2005, Dow Jones relates.

An official of the Ministry of Agriculture forecasted to Dow
Jones in 2005 that for the fiscal year 2005/2006, coffee produce
will grow to 52% at about 1.4 million 60-kg bags.

According to Centrex, in 2004/2005 harvest cycle, produce
decreased to 33% from 2003/2004 production of 1.38 million bags
to 920,000 bags and exports fell 23% from 1.24 million bags to
959,246 bags, Dow Jones relates.

The official told Dow Jones that the increase in output for the
current harvest cycle is due to almost perfect weather
conditions and higher international prices that have made room
for additional inputs such as fertilizer and good farming
supervision.

A total export of 1.15 million to 1.227 million bags is expected
for the 2005-2006 crop cycle, Dow Jones says.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003


* NICARAGUA: State Water Utility Seeks Loan to Pay Off Debts
------------------------------------------------------------
Enacal, the state water and sewerage utility of Nicaragua, will
request a US$2.5 million loan from a local private bank to pay
off its debts to Union Fenosa, a Spanish power supplier, Luis
Debayle, the company president, revealed to local press.

Mr. Debayle informed Business News Americas that Enacal's debt
amounted to US$3.5 million, and so the company also plans to
seek funding from the World Bank.

Arguing that Enacal allocates US$1 million each year to fund
services to its poorest customers, Mr. Debayle told BNamericas
that the company expects the World Bank financing from a fund
for fighting extreme poverty.

Enacal already assigns 40% of its budget to energy expenses, Mr.
Debayle was quoted by BNamericas as saying.  Water rates have
not been modified.  

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




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


* PARAGUAY: Farmers Demand Promised Compensation
------------------------------------------------
The National Farmers' Federation held demonstrations on roads on
Friday demanding that President Nicanor Duarto administration
fulfill its promise of compensation, Prensa Latina reports.

Prensa Latina relates that the government had promised cotton
growers compensation when their crops have been damaged by
drought.

According to Prensa Latina, the farmers also demanded for:

    -- an integral agricultural reform, and

    -- the release of those detained for occupying private     
       properties.

Members of the organization had occupied two weeks ago the
offices of the Ministry of Agriculture and Livestock in 11
departments and provinces, according to Prensa Latina.

                        *    *    *

Moody's assigned these ratings on Paraguay:

     -- CC LT Foreign Bank Deposit, Caa2
     -- CC LT Foreign Curr Debt, Caa1
     -- CC ST Foreign Bank Deposit, NP
     -- CC ST Foreign Currency Debt, NP
     -- LC Currency Issuer Rating, Caa1
     -- FC Curr Issuer Rating, Caa1
     -- Local Currency LT Debt, WR

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

     -- Foreign Currency LT Debt B-
     -- Local Currency LT Debt   B-
     -- Foreign Currency ST Debt C
     -- Local Currency ST Debt   C




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


MUSICLAND HOLDING: Deluxe's Lien Payment Motion Draws Fire
----------------------------------------------------------
As reported in the Troubled Company Reporter on Mar. 30, 2006,
Deluxe Media Services, Inc., asked the U.S. Bankruptcy Court for
the Southern District of New York to:

   (a) enforce the Final DIP Order and direct Musicland Holding
       Corp. and its debtor-affiliates to pay the Lien Amount to
       Deluxe in satisfaction of the Prepetition Lien; or

   (b) if the Debtors sell their assets prior to the resolution
       of Deluxe's Motion, rule that the Prepetition Lien attach
       to the proceeds of the that sale and that a portion of
       the sale proceeds equal to the Lien Amount be placed into
       escrow solely for the benefit if Deluxe, pending a final
       determination on the merits of the Motion.

Deluxe Media Services, Inc., contends that the Debtors, the
Informal Committee of Secured Trade Vendors, and Wachovia Bank,
National Association, selectively quote from the operative
documents and ignore the simple undisputed facts to draft an
argument devoid of substance.

Thomas R. Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP,
in New York City, argues that the Secured Lenders' Objection
contains no basis for denying the Lien Motion.  Wachovia relies
on an agreement where Deluxe agreed to subordinate the
Prepetition Lien to the liens of the Debtors' prepetition
secured lenders.

Wachovia also argues that the payment of the Prepetition Lien is
limited "as and to the extent permitted by the Budget."
Wachovia's argument is incomplete and designed to mislead the
Court, Mr. Califano asserts.  The Final DIP Order provides that:

   "Upon entry of the [Warehousemen Order], Deluxe shall be paid
   the undisputed amounts of the [Prepetition Lien], up to an
   aggregate amount not to exceed US$4,142,931.31, within one
   business day of the entry of such order, as and to the extent
   permitted by the Budget or other applicable order of this
   Court."

Deluxe has shown that its equity cushion for the Prepetition
Lien is rapidly diminishing, Mr. Califano points out.  
"Accordingly, Deluxe should be paid at this point."

The Debtors cite an agreement by and among Deluxe, MPC, and
Congress Financial Corp., as predecessor-in-interest to
Wachovia, dated March 4, 2004.  Mr. Califano notes that the
March 4 Agreement was entered into separately from the Logistics
Services Agreement and contains a waiver of certain of Deluxe's
rights as against Wachovia, not the Debtors.  The March 4
Agreement was executed along with the LSA to resolve the issue
of potentially competing liens in the relevant assets.  "It is
impossible to construe this as a waiver of Deluxe's rights as
against the Debtors."

Mr. Califano further asserts that no waiver of the lien rights
exists in the LSA.

The Debtors' argument that the LSA constitutes an
acknowledgement that Deluxe has no warehouseman lien is absurd,
Mr. Califano says.  Deluxe has never asserted ownership of the
Inventory at any time.  The purpose behind the warehousemen's
lien is to protect warehousemen who are holding goods owned by
another party.  The acknowledgement of who owns the goods in
question in no way vitiates the existence of the warehouseman's
lien, Mr. Califano points out.

The LSA clearly indicates the location of the Warehouse, Mr.
Califano states.  The Debtors' attempt to assert that the LSA is
insufficient notice of the location of their goods is further
undermined by the Batch Reports, which clearly indicate that the
goods were received at the Warehouse in Pleasant Prairie.  The
Batch Reports are submitted as EDI Files to the Debtors'
computer system.  In the process of uploading the EDI Files to
the Debtors' computer system, the EDI Files are marked by Deluxe
for the purpose of authenticating the files and identifying the
source of the files in the computer system.  Moreover, the LSA
was physically signed by representatives of Deluxe and the
Debtors.

Mr. Califano contends that the Debtors fundamentally
misunderstand the concept of the lien arising under common law.   
The Debtors appear to argue that Deluxe's compliance with the
LSA necessarily destroys Deluxe's common law lien.

Any release of postpetition liens has been protected by the
adequate protection language in the Final DIP Order.  Any
Inventory shipped prepetition was not included in the
calculation of the amount of the Prepetition Lien.  Mr. Califano
notes that the Debtors are inadvertently acknowledging the
precise reason Deluxe requires immediate payment of the
Prepetition Lien -- if the Prepetition Lien is not paid, it will
be completely eliminated by the Debtors' contemplated sale.

Deluxe asks the Court to grant its request and direct the
Debtors to pay it US$4,142,931, together with interest and fees.

              Debtors Seek Summary Judgment

In a letter to Judge Bernstein, the Debtors seek the Court's
permission to file a motion for partial summary judgment against
Deluxe, limiting its maximum statutory warehouse lien to
US$618,360.

Andrew R. Running, Esq., at Kirkland & Ellis LLP, in Chicago,
Illinois, asserts that allowing the partial summary judgment
motion and staying discovery pending its resolution is in the
best interests of the parties and of judicial economy because:

   -- it would resolve a threshold legal issue based on
      undisputed facts, thus streamlining discovery and trial
      preparation;

   -- if granted, the motion would reduce a US$4,200,000 dispute
      to slightly more than US$600,000, therefore increasing
      likelihood of settlement; and

   -- even if the motion were ultimately denied, it would not
      prejudice Deluxe since the cost of the motion would be
      modest and Deluxe's claim has been fully reserved.

Mr. Running states that the parties agree that Deluxe never gave
the Debtors the required notice for the assertion of a general
warehouse lien.  Thus, Deluxe cannot assert a lien for storage
charges incurred in the goods that have left its possession.  In
addition, Deluxe failed to state on its warehouse receipt that
"a lien is claimed for charges and expenses in relation to other
goods."

To calculate Deluxe's maximum statutory warehouse lien, the
Debtors need only to determine the percentage of their goods
delivered from September 2005 through January 22, 2006.

Mr. Running maintains that the Debtors' inventory records
provide the only evidence needed to prove the summary judgment
motion.  Based on the inventory figures, the maximum specific
liens that Deluxe could potentially assert are:

                     Claimed    % held by Deluxe
Month             General Lien     on 1/22/06     Specific Lien

September 2005     US$983,656           7.7%           $75,741
October 2005        1,066,908           5.7             60,813
November 2005       1,144,477          16.8            192,272
December 2005         774,537          24.8            192,085
January 2006          234,248          41.6             97,447
(prepetition)

TOTAL            US$4,203,829             -         US$618,360
                  ===========   ================  =============

The Debtors ask the Court to schedule a pre-motion conference.

                About Musicland Holding

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




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


BWIA WEST: Flights Skip Antigua Due to Ash from Volcano
-------------------------------------------------------
BWIA West Indies has diverted its flights to Antigua when the
ash from the volcano in Soufriere Hills, Montserrat, decreased
the visibility over the weekend, the Trinidad & Tobago Express
reports.

The Daily Express relates that a dome that had been growing on
top of the volcano since August 2005 had collapsed on Saturday,
sending debris down and shooting ash 10 miles into the sky.   
The dome was the highest part of the volcano, about 3,000 feet
high.

The airline's flights 414 and 415 scheduled to stop in Antigua
on Saturday skipped the island and headed to Jamaica, Dion
Ligore, the communications officer of BWIA, told the Daily
Express.

Ms. Ligore informed the Daily Express that the ash from surface
to sky was 60,000 feet so the aircraft could not land there.

However, Ms. Ligore said the flights are now back on track and
the situation is being closely monitored, the Daily Express
states.

No injuries were reported, the Trinidad Express reports.

BWIA was founded in 1940, and for more than 60 years has been
serving the Caribbean islands from Trinidad and Tobago, the hub
of the Americas, linking the twin island republic and many other
Caribbean islands with North America, South America, the United
Kingdom and Europe.

The airline has reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.  


DIGICEL: Claims TSTT Pays for Hunter Report
-------------------------------------------
Digicel Ltd. said in a statement that a report from Hunter
Associates has been paid for by the Telecommunication Services
of Trinidad and Tobago, the Trinidad and Tobago Express reports.

An excerpt of the report as quoted by the Express:

"In comparisons of post-paid charges, Digicel's service is
typically 49 per cent more expensive than bmobile and in some
cases as much as 100 per cent more expensive."

"For prepaid customers, the trend is the same-Digicel is
typically 40 per cent more expensive than bmobile for customers
spending $100 per month."

"For customers spending $100 per month, Digicel is typically 26
per cent more expensive than bmobile."

To which, Digicel answered in a statement saying:

"It is an extensive report which Digicel and its lawyers are
currently studying. We have already seen several dubious
comments in it and we will respond formally as soon as this
process has been completed.

"While TSTT is claiming the report was done by the independent
firm of Hunter Associates based in the UK, Digicel would like to
make it clear that the report in question can in no way be
considered independent since it was paid for and commissioned by
TSTT and is possibly a deliberate attempt at distorting the
facts in TSTT's favour."

Digicel Limited is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien.  The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in 13 countries of the Caribbean
including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada,
Barbados, Cayman, and Curacao among others.  Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.

                        *    *    *

On Mar. 10, 2006, Fitch affirmed the 'B' rating of Digicel
Limited, senior unsecured debt, including the US$300 million
senior notes due 2012, following the announcement that it is in
the process of acquiring Bouygues Telecom Caraibe.  Fitch said
the Outlook for the Ratings is Stable.


RBTT FINANCIAL: Sponsors Trade Congress in Trinidad
---------------------------------------------------
For the seventh consecutive year, RBTT Financial Holdings
Limited has been the lead sponsor of the Trade & Investment
Convention.  Hosted by the Trinidad & Tobago Manufacturers'
Association, TIC 2006 run from May 17-21 at the Centre of
Excellence.

"RBTT is a major player in the Caribbean financial sector, and
many of our regional corporate customers visit Trinidad & Tobago
to conduct business at TIC, so TIC is an opportunity for us to
provide additional assistance to our customers," said Hadyn
Gittens, General Manager -- Corporate Banking, RBTT Bank
Limited.  "RBTT is on the spot at the Convention to facilitate
networking between our Caribbean customers, which results in the
expansion of intra-regional trade. RBTT's involvement in TIC
reflects our vision of developing trade and investment in
Trinidad & Tobago and the region."

Mr. Gittens continued, "RBTT's regional presence carries with it
a responsibility. We can and must play a significant role in
strengthening Caribbean economies. To achieve this, we assist
manufacturers in building their businesses, and we facilitate
their expansion into new regional and international export
markets. TIC is an excellent means of fulfilling these
objectives."

According to Anthony Aboud, TIC Chairman, "TIC 2006 is our
largest convention to date, with twice as many exhibitors and
several international trade missions of buyers and exhibitors.
RBTT has played a key role in the development and success of TIC
over the years, and we thank them for their involvement."

RBTT Financial Holdings Limited is a financial services
conglomerate consisting of 35 subsidiaries and associated
companies located in 12 legal jurisdictions in the Caribbean
region, including 10 licensed commercial banks with 84 branches.
The group's major subsidiaries include RBTT Bank Limited and
RBTT Merchant Bank Limited, a leading regional merchant bank.

                        *    *    *

Fitch assigned its BB+ rating on RBTT Financial Holdings
Limited's foreign currency long-term debt.  Fitch also placed a
B rating on the company's foreign currency short-term debt.




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


PETROLEOS DE VENEZUELA: Investing US$1.5 Billion in Bolivia
-----------------------------------------------------------
Jorge Alvarado, Yacimientos Petroliferos Fiscales Bolivianos'
president, said that Petroleos de Venezuela SA will be investing
US$1.5 billion in the nation's hydrocarbons sector, the El
Universal reports.

"Pdvsa wants to make investments in exploration of around US$800
million, and then invest US$700 million in production.  We are
talking about an investment in exploration and drilling of some
US$1.5 billion in the first stage of field exploitation," Mr.
Alvarado explained to El Universal.

Mr. Alvarado assured the El Universal that PDVSA won't get
preferential treatment in Bolivia as a result of President Hugo
Chavez's close ties with President Evo Morales.

"Pdvsa will not have a special treatment.  On the contrary,
Pdvsa is giving us a special treatment, because no other
corporation coming to Bolivia has told us 'we are going to make
the whole investment, and you are going to own a 51 percent
stake, and then you are going to pay with the product,'" Mr.
Alvarado was quoted by El Universal as saying.

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

                       *    *    *

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


* VENEZUELA: Forms Farming Corporation with Bolivia & Cuba
----------------------------------------------------------
Venezuela will work with Cuba and Bolivia to form a three-
national farming corporation in Bolivia, El Universal reports.

El Universal states that the corporation will be responsible in
installing food-processing facilities in the rural area in three
months.

According to El Universal, Venezuela will grant a fund of US$100
million for the organization, which will be in the context of
Bolivian President Evo Morales' agricultural policy.

Hugo Salvatierra, Bolivia's minister of rural and agricultural
development, was quoted by El Universal as saying, "We will
organize a corporation in Bolivia based on this and other
credits by means of a common fund with loans from the
international cooperation and abandonment.  This process will
exceed US$100 million."

Minister Salvatierra told El Universal that the fund from
Venezuela is necessary and will be used in productive
reactivation, lending for farmers as well as for the small and
medium-sized business.

                        *    *    *

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

                        *    *    *

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

                        *    *    *

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
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